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MWMA Annual MeetingMWMA Annual Meeting

March 5, 2001March 5, 2001

Shelley CohenShelley Cohen

Landfill Methane Outreach ProgramLandfill Methane Outreach Program

Discover the Power Potential Discover the Power Potential of Landfill Gasof Landfill Gas

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Presentation SummaryPresentation Summary

What is the LMOP What is the LMOP What is Landfill Gas?What is Landfill Gas? How can Landfill Gas (LFG) be Used? How can Landfill Gas (LFG) be Used? Why is the EPA is promoting LFG utilizationWhy is the EPA is promoting LFG utilization State of the Industry State of the Industry What Does the Future Hold: Issues and What Does the Future Hold: Issues and

incentives driving the Landfill Gas Industryincentives driving the Landfill Gas Industry How Can the LMOP HelpHow Can the LMOP Help

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What is the LMOP?What is the LMOP?

Voluntary public/private outreach Voluntary public/private outreach programprogram

Mission: Create alliances between Mission: Create alliances between States, energy users, communities, and States, energy users, communities, and the LFG industry to help them overcome the LFG industry to help them overcome barriers to project development. barriers to project development.

Works hand-in-hand with regulations to Works hand-in-hand with regulations to ensure low-cost complianceensure low-cost compliance

Provides a range of products and Provides a range of products and services to facilitate project developmentservices to facilitate project development

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Why is EPA Promoting Landfill Gas Utilization?Why is EPA Promoting Landfill Gas Utilization?

Methane is a potent greenhouse gas Methane is a potent greenhouse gas There are many cost effective options for There are many cost effective options for

reducing and controlling emissionsreducing and controlling emissions Helps offset cost of compliance with NSPS/EGHelps offset cost of compliance with NSPS/EG Other benefits Other benefits

— Improves landfill managementImproves landfill management— Reduces local air pollutionReduces local air pollution— Reduces odorsReduces odors— Creates jobsCreates jobs— Improves economic Improves economic

development near landfillsdevelopment near landfills

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Tangible community Tangible community environmental initiativeenvironmental initiative

Helps meet Utility Climate Helps meet Utility Climate Challenge goalsChallenge goals

Reductions may be reported Reductions may be reported under 1605(b)under 1605(b)

Enhances public relations Enhances public relations internally and externallyinternally and externally

Lowest cost renewable resourceLowest cost renewable resource

on a levelized kWh basison a levelized kWh basis

Why is EPA Promoting Landfill Gas Utilization?Why is EPA Promoting Landfill Gas Utilization?

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What is Landfill Gas?What is Landfill Gas?

Landfill Gas (LFG) is created when waste in a Landfill Gas (LFG) is created when waste in a landfill decomposes under anaerobic -- or oxygen landfill decomposes under anaerobic -- or oxygen free -- conditionsfree -- conditions

LFG is approximately:LFG is approximately:— 50% methane50% methane— 47% carbon dioxide47% carbon dioxide— 3% air toxins3% air toxins

LFG has the heat value of medium BTU fuelLFG has the heat value of medium BTU fuel Landfills are the largest human made methane Landfills are the largest human made methane

sourcesource

Carbon Dioxide

45%

Air toxins5%

Methane50%

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How Can Landfill Gas (LFG) be used?

How Can Landfill Gas (LFG) be used?

Landfill gas can be used a variety of Landfill gas can be used a variety of ways:ways:— boiler fuelboiler fuel— electricityelectricity— leachate evaporationleachate evaporation— niche applications: to heat niche applications: to heat a greenhouse, vehicle fuel, a greenhouse, vehicle fuel, upgrade to pipeline qualityupgrade to pipeline quality

LFG is the only energy source that, when LFG is the only energy source that, when used, actually removes pollution from the airused, actually removes pollution from the air

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Direct Gas SalesDirect Gas Sales

Gas pumped to nearby Gas pumped to nearby customer for use in boilercustomer for use in boiler

100+ operational projects100+ operational projects Pipelines 1 - 5 milesPipelines 1 - 5 miles Easy, proven technologyEasy, proven technology minimal processing minimal processing

requirementsrequirements cost effectivecost effective

— $1.50 to 3.50 per MMBtu $1.50 to 3.50 per MMBtu Pipeline lengthPipeline length Collection system in-Collection system in-

placeplaceCleaver Brooks 20,000 lb/hr Boiler

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Electrical GenerationElectrical Generation

Over 200 projects Over 200 projects Electricity sold to utility, Electricity sold to utility,

nearby customer, or on-sitenearby customer, or on-site 869 MW on-line869 MW on-line Size - 500 kW - 50 MWSize - 500 kW - 50 MW Tend to have high avoided Tend to have high avoided

costscosts Utilities can be difficult to Utilities can be difficult to

deal withdeal with $1,000-$1,500 per KW $1,000-$1,500 per KW

(capital costs)(capital costs)Caterpillar 3516 800 kW genset

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Combustion Gas Turbine

Combustion Gas Turbine

Solar 3 MW Gas Turbine

Milwaukee, WI

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Steam TurbineSteam Turbine

50 MW Steam Turbine

Whittier, CA

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Pipeline Quality Gas Upgrades

Pipeline Quality Gas Upgrades

Inject into natural gas pipelineInject into natural gas pipeline

14 projects on-line14 projects on-line

Cost effective at larger landfills (>4 Cost effective at larger landfills (>4 mill cf/day landfill gas)mill cf/day landfill gas)

Beneficial in areas where natural Beneficial in areas where natural gas prices are highgas prices are high

High capital costs due to High capital costs due to processing requirements to remove processing requirements to remove nitrogen, other constituentsnitrogen, other constituents

Strict quality specificationsStrict quality specifications

$3.60 to $4.15 per MMBtu$3.60 to $4.15 per MMBtu10 MMcfd Selexol Plant, Fresh Kills, NY

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Fuel CellsFuel Cells

Chemically convert gas Chemically convert gas to electricityto electricity

Demonstration phase Demonstration phase High efficiencyHigh efficiency Minimal emissionsMinimal emissions High costHigh cost Limited track record of Limited track record of

performanceperformance Approximately $3,000 Approximately $3,000

per kWper kWNortheast Utilities 200 kW Fuel Cell

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MicroturbinesMicroturbines

A high speed turbo-charged generator that A high speed turbo-charged generator that produces stationary power produces stationary power

Available in sizes ranging between 25kW to 75 Available in sizes ranging between 25kW to 75 kW.kW.

Low emissionsLow emissions Multiple fuel capacityMultiple fuel capacity Light weight/small sizeLight weight/small size Does not require pretreatment of the fuelDoes not require pretreatment of the fuel Lower maintenance costs ($.01 per KWhr)Lower maintenance costs ($.01 per KWhr) Limited track record of performanceLimited track record of performance $700 to $1200 per kW$700 to $1200 per kW Cost is expected to reduce to half in the next Cost is expected to reduce to half in the next

five yearsfive years

Allied Signal Parallon 75

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Vehicle FuelVehicle Fuel

Compressed landfill gas (CNG)Compressed landfill gas (CNG)

Liquified landfill gas (LNG) - CryoFuels®Liquified landfill gas (LNG) - CryoFuels®

Early stages of developmentEarly stages of development LNG/CNG price lower than diesel fuel costLNG/CNG price lower than diesel fuel cost Reduce use of fossil fuelsReduce use of fossil fuels Reduce local ozone pollutionReduce local ozone pollution Small percentage of alternative-fuel vehicles Small percentage of alternative-fuel vehicles Limited track record of performanceLimited track record of performance Retrofit = $3,500 to $4,000 per vehicleRetrofit = $3,500 to $4,000 per vehicle Fueling station = $1,000,000Fueling station = $1,000,000 Fuel price = $.48 to $1.26 per gallonFuel price = $.48 to $1.26 per gallon

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Niche AlternativesNiche Alternatives

Great application for smaller Great application for smaller landfillslandfills

OTHERSOTHERS Leachate TreatmentLeachate Treatment Produce high purity carbon Produce high purity carbon

dioxide dioxide

Greenhouse

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Summary of Technology Applications

Summary of Technology Applications

Selection of technology is site specificSelection of technology is site specific Technologies exist for low and high volumes of Technologies exist for low and high volumes of

LFG productionLFG production Many proven/cost effective ways to utilize LFGMany proven/cost effective ways to utilize LFG

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State of the IndustryState of the Industry

Landfill gas to energy project development has Landfill gas to energy project development has been around in the US since the 1970s.been around in the US since the 1970s.

There are over 318 successful landfill gas to There are over 318 successful landfill gas to energy projects in the US.energy projects in the US.— 318 Operational Projects 318 Operational Projects — 56 Projects Under Construction56 Projects Under Construction— 118 Planned Projects (approximately) 118 Planned Projects (approximately)

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State of the IndustryState of the Industry

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Federal Legislation Driving the LFG Industry

Federal Legislation Driving the LFG Industry

New Source Performance Standards and Emission New Source Performance Standards and Emission Guidelines (NSPS/EG)Guidelines (NSPS/EG)

— LFs over 2.50 Million Tons of WIP LFs over 2.50 Million Tons of WIP — LFs emitting over 50 megagrams of Non-Methane Organic LFs emitting over 50 megagrams of Non-Methane Organic

Compounds (NMOCs) Compounds (NMOCs)

Utility Deregulation Legislation (under debate)Utility Deregulation Legislation (under debate)— Consumers choose power provider, and power typeConsumers choose power provider, and power type— Consumers willing to pay more for renewablesConsumers willing to pay more for renewables— LFG acknowledged by the Federal Government as renewable LFG acknowledged by the Federal Government as renewable — Legislation may require power providers include renewable energy Legislation may require power providers include renewable energy

as part of their power offerings as part of their power offerings

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Federal Incentives Driving the LFG Industry

Federal Incentives Driving the LFG Industry

Tax CreditTax Credit— Section 29: 1.0 -1.5 cents per kilowatt hour. Expired ‘98Section 29: 1.0 -1.5 cents per kilowatt hour. Expired ‘98— Section 45: proposed legislation to provide a tax credit for certain Section 45: proposed legislation to provide a tax credit for certain

renewables, including landfill gas.renewables, including landfill gas. SubsidySubsidy

— Renewable Energy Production Incentive (REPI): 1.5 cents per kilowatt Renewable Energy Production Incentive (REPI): 1.5 cents per kilowatt hourhour

Federal GrantsFederal Grants— LFG qualifies for many Federal grants.LFG qualifies for many Federal grants.

Other incentives such as grants and loans are available Other incentives such as grants and loans are available at the state and local levels.at the state and local levels.— Many states want to address local air quality concerns while Many states want to address local air quality concerns while

promoting sustainable community development.promoting sustainable community development.

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Incentives ContinuedIncentives Continued

— Executive Order: requires Fed. facilities to examine ways to Executive Order: requires Fed. facilities to examine ways to increase energy efficiency and use renewable energyincrease energy efficiency and use renewable energy

— Emission Reductions Reporting for Credits: Potential Emission Reductions Reporting for Credits: Potential legislation to provide credits for voluntarily efforts to legislation to provide credits for voluntarily efforts to reduced ghg emissions. Credits may have $ value.reduced ghg emissions. Credits may have $ value.

— Communities are interested in ways to clean the Communities are interested in ways to clean the environment, using LFG can help communities reach environment, using LFG can help communities reach pollution reduction goals.pollution reduction goals.

Case Study: EPA research facility in CA just signed an agreement with SMUD to purchase 100% renewable energy -- 40% is landfill gas

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EPA Project Assistance -Technical & Networking Support

EPA Project Assistance -Technical & Networking Support

Technical information and supportTechnical information and support— E-PLUS evaluation softwareE-PLUS evaluation software— Project Development HandbookProject Development Handbook— Template of landfill profilesTemplate of landfill profiles— Economic incentives informationEconomic incentives information

LFGE networking and information LFGE networking and information exchangeexchange— WorkshopsWorkshops— Industry Ally expert listIndustry Ally expert list— Ally Update fax-outAlly Update fax-out— LMOP ReportLMOP Report

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EPA Project Assistance - Community Relations Support

EPA Project Assistance - Community Relations Support

Public recognition and communications Public recognition and communications supportsupport— Promotional toolkitPromotional toolkit— Trade press PSA’sTrade press PSA’s— Event supportEvent support— Communications supportCommunications support

Marketing informationMarketing information— Green power informationGreen power information— Community education materialsCommunity education materials

Pilot green pricing program supportPilot green pricing program support

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Interested? What Next?

Interested? What Next?

Contact LMOP Territory ManagerContact LMOP Territory Manager Investigate candidate landfills in area ~ EPA can Investigate candidate landfills in area ~ EPA can

help!help! Create partnerships and gather support Create partnerships and gather support Think about project options and opportunitiesThink about project options and opportunities

— Think about projects ‘of scale’Think about projects ‘of scale’— Think out of the boxThink out of the box— Think sustainably: consider the economic, Think sustainably: consider the economic,

environmental, and community benefitsenvironmental, and community benefits JOIN THE LMOP AS AN ALLY OR PARTNER!JOIN THE LMOP AS AN ALLY OR PARTNER!

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Becoming an LMOP Ally or Partner

Becoming an LMOP Ally or Partner

Four Ally/Partner ProgramsFour Ally/Partner Programs— Energy AllyEnergy Ally— Industry AllyIndustry Ally— State AllyState Ally— LMOP PartnerLMOP Partner

Voluntary/non-bindingVoluntary/non-binding

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Contact InformationContact Information

Shelley CohenShelley Cohen

Program ManagerProgram Manager— 202.564.9797202.564.9797— www.epa.gov/lmopwww.epa.gov/lmop

5ht Annual LMOP Conference & Project Expo5ht Annual LMOP Conference & Project Expo

-- December 2001-- December 2001

-- Washington, DC-- Washington, DC

Watch the web site for more informationWatch the web site for more information