51
CSWEA - Wisconsin Section Operations & Resource Recovery Committee Digester Gas End-Use Opportunities for Today’s Resource Recovery Facilities Resource Recovery Seminar November 14, 2018
CSWEA - Wisconsin Section Operations amp
Resource Recovery Committee
Digester Gas End-Use Opportunities for
Todayrsquos Resource Recovery Facilities
Resource Recovery Seminar
November 14 2018
Presentation Content
1 Options for Digester Gas End-Use
2 Renewable Fuel Standard (RINs) and Other Renewable Natural Gas (RNG) Markets
3 Financial Evaluations
4 Example Projects and Analyses
Options for Digester Gas End-Use
1 Do nothing - flare
2 Use for processbuilding heat
3 Combined heat and power (cogeneration)
4 Produce pipeline quality natural gas
5 Produce vehicle fuel (bioCNG rCNG)
Status of Cogeneration
Very common use has grown in last 10-15 years
Energy recovery efficiency has improved considerably Electrical conversion 35-43
Heat conversion 45-50
Total efficiency gt 85
But
Status of Cogeneration
High efficiency requires better gas quality amp higher cleaning costs
Overall maintenance costs are significant
Few ldquogreen electricityrdquo incentives and grant opportunities
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Presentation Content
1 Options for Digester Gas End-Use
2 Renewable Fuel Standard (RINs) and Other Renewable Natural Gas (RNG) Markets
3 Financial Evaluations
4 Example Projects and Analyses
Options for Digester Gas End-Use
1 Do nothing - flare
2 Use for processbuilding heat
3 Combined heat and power (cogeneration)
4 Produce pipeline quality natural gas
5 Produce vehicle fuel (bioCNG rCNG)
Status of Cogeneration
Very common use has grown in last 10-15 years
Energy recovery efficiency has improved considerably Electrical conversion 35-43
Heat conversion 45-50
Total efficiency gt 85
But
Status of Cogeneration
High efficiency requires better gas quality amp higher cleaning costs
Overall maintenance costs are significant
Few ldquogreen electricityrdquo incentives and grant opportunities
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Options for Digester Gas End-Use
1 Do nothing - flare
2 Use for processbuilding heat
3 Combined heat and power (cogeneration)
4 Produce pipeline quality natural gas
5 Produce vehicle fuel (bioCNG rCNG)
Status of Cogeneration
Very common use has grown in last 10-15 years
Energy recovery efficiency has improved considerably Electrical conversion 35-43
Heat conversion 45-50
Total efficiency gt 85
But
Status of Cogeneration
High efficiency requires better gas quality amp higher cleaning costs
Overall maintenance costs are significant
Few ldquogreen electricityrdquo incentives and grant opportunities
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Status of Cogeneration
Very common use has grown in last 10-15 years
Energy recovery efficiency has improved considerably Electrical conversion 35-43
Heat conversion 45-50
Total efficiency gt 85
But
Status of Cogeneration
High efficiency requires better gas quality amp higher cleaning costs
Overall maintenance costs are significant
Few ldquogreen electricityrdquo incentives and grant opportunities
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Status of Cogeneration
High efficiency requires better gas quality amp higher cleaning costs
Overall maintenance costs are significant
Few ldquogreen electricityrdquo incentives and grant opportunities
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Cogeneration OampM Costs
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
Gas Cleaning Bio-H2SGAC-Silox
Chem-H2SGAC-Silox
Chem-H2SGAC-Silox
None None
Engine Size 450 kW IC 180 kW IC 600 kW MT 2750 kW IC 3150-300 kW IC
Cost Per kWH Produced ($kWH)
Gas Cleaning $0005 $0008 $0008 --- ---
Engine Maint
$0012 $0017 $0017 $0030 $0090
Total $0017 $0025 $0025 $0030 $0090
+
Labor
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
When Does COGEN Make Sense
Cogen
Electrical Cost gt $006kWH
You Can Use All the Elec On-Site
Relatively Clean Gas
Year Round Need for Heat
You Love Maintaining Things
You Have No Better Options and Want to Be ldquoGreenrdquo
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Cogeneration ndash Potential For Electrical RINsRenewable Fuel Standard (RFS) Program
2007 ndash Congress indicated renewably generated electricity should be pathway under the RFS
2014 - EPA approved an electricity pathway for the RFS program
2018 - EPA still has not acted on this approval by processing formal applications from renewable electricity producers
EPA has indicated the agency needs to resolve policy issues regarding how the RFS lsquoelectric pathwayrsquo program will function nothing will be done until that is resolved
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Why Pipeline RNG
Cogen Pipeline RNG
Capital Cost
Overall OampM Cost
Value of Gas
PaybackROI
Market ConcernsUnknowns
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
RNG Production Carbon Dioxide Removal Replaces Engine
Generator
1 Membrane Separation
2 Pressure Swing Adsorption
3 Water Scrubbing
4 Amine Scrubbing - New to US
market more common
technology in Europe
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Renewable Fuel Standard (RFS)
Congress created the RFS program to reduce greenhouse gas emissions and expand the nationrsquos renewable fuels sector
Authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
D3 fuels - 60 lifecycle GHG emission reductionsbull POTW biogasbull Landfills
D5 fuels - 50 lifecycle GHG emission reductionsbull RNG from High-
Strength Waste
GHG Emission Reduction is the Key to Renewable Fuel Designation and Value Under the RFS
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Congress Sets Renewable Volume Targets Based on EPA Recommendations
~16 bgalyr (D3)
~4 bgalyr (D5)
~16 bgalyr (D6D4)
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
D3 Quantities Have Not Met Targets
Shortage of D3 production has created higher demand even though EPA has lowered targets
~02 bgalyr (D3)
~42 bgalyr (D5)
~15 bgalyr (D6D4)
2018 Est
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Renewable Identification Numbers (RINs)
RINs are ldquocreditsrdquo used for compliance and are the ldquocurrencyrdquo of the RFS program
Renewable fuel producers generate RINs (eg WWTPs)
Obligated parties obtain and then ultimately retire RINsfor compliance with the RFS program
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
RIN Life Cycle
Fuel production and fuel use ldquolocationsrdquo are not necessarily connected
Source USEPA
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
2014 Changes to the RFS
In 2014 RFS rule amendments designated CNGand LNG from landfill gas and certain types of digesters as cellulosic biofuel that qualifies for D3 RIN generation
This changed everything for WWTPs and Landfills
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Status of Renewable Natural Gas (RNG)
Significant interest only a handful of actual WWTP installationsbull City of San Antonio TX
bull City of Grand Junction CO
bull City of San Mateo CA
bull King County WWTP Seattle WA
bull City of Dubuque IA
bull Des Moines WRA IA
bull City of Sioux City IA
bull Dane County WI ndash Landfill and Ag Digesters
bull KewauneeBrown County ndash Ag Digester (WE Energies)
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Markets for RNG
Renewable Fuel Standard (RFS) Markets Non-renewable fuel developers are required to produce renewable fuels
or purchase RINs
POTW digester gas converted to RNG - D3 RINs andor D5 RINs
California market (LCFS) adds significant value but may be difficult to qualify
Other Markets RE100 ndash Large companies committed to 100 renewable energy working
to increase demand for renewable energy
Provide long-term guaranteed contracts (15-25 years)
Lower value than RFS D3 but lower risk as well
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Historical RFS RIN Values
Max D3 ~ $310RIN
Max D5 ~ $110RIN
Current D3 ~ $195 (down 37)
Current D5 ~ $032 (down 70)
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
1173 RINs per MMBTU of CNG or LNG
600 BTUft3 biogas = 0007 RINsft3 biogas
~ 700 RINs per 100000 ft3 biogas
D3 RIN $200RIN
~ $1400 per 100000 ft3 biogas
~ $24MMBTU (vs $36MMBTU 12 mos ago)
D5 RIN $035RIN
~ $250 per 100000 ft3 biogas
~$4MMBTU (vs $12MMBTU 12 mos ago)
D3 and D5 RIN Values for Digester Gas
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
CA-GREET Model
Californiarsquos Low Carbon Fuel Standard (LCFS) Can Add Significant Value to RNG Sold in California
bull Value is based on holistic life cycle GHG emission reductionbull Ag digester gas has extremely high valuebull D3 RNG from POTWs likely has limited long-term value
unless program continues to expandbull D5 RNG has little chance to be sold for LCSF credits
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
California LCFS Program Drivers
bull Ag digester constructionbull Significant grant funding availablebull Extremely low Carbon Intensity (CI) scores = $$$$bull Displacing other RNG that has less value (higher CI scores)
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Historical California LCFS Values
LCFS revenue is additive to RIN revenue if the RNG is sold to qualified California end-users
$Metric Ton
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
RFS Markets - RNG Values from POTWs
~$19MMBTU
~$39MMBTU
Gas ~ $300
LCFS ~ $12
RINs ~$24 vs $4
California LCFS Program
is Very Competitive
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
WWTP Gas Current vs Potential Value
$300
$800 $700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 +LCFS
D3 TransFuel
D3 +LCFS
Gas Value Per Million BTUs
7525
$8-$15+
OtherRenewable
Markets
Pipeline Quality Gas
RFS Program
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
City of Dubuque
11 mgd DAF WWTP
New temperature phased
anaerobic digestion (2013)
2014 cogeneration startup
(microturbines)
Significant co-digestion of
high-strength wastes
H2S and siloxane removal
already installed
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Gas Conditioning
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Cogeneration with Microturbines
Microturbines
3 200 kW = 600 kWHeat Recovery
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Pipeline Quality Gas Project
Third party RNG developer is at risk rights to all digester gas
15-year term + option for 5 years
Use existing gas conditioning systemfacilities (moisture H2S and siloxane removal)
PSA to remove carbon dioxide inject into utility pipeline
Developer believed all RINs are D3 [caution]
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Pipeline Quality Gas Project
Third party provider will provide to the City
Percentage of gross revenue ndash RINs and Gas Sales
Pipeline natural gas for cogen and facility use
Lease payment
Operational costs above current (electricity gas cleaning media labor etc)
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Pipeline Quality Gas Project
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
PSA System for CO2 Removal (Dubuque)
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Estimated Gross Revenue to 3rd Party
Digester Gas Production 250000 ft3day
Energy Value 150 MMBTUday
Gas Sales ($3MMBTU) $450day
D3 RINs 1800 RINsday
RIN Value ($3RIN) $5400day
LCFS Credits $1000day
Gross Sales $25 millionyr
Actual Values
D5 RINs ($035RIN)
$630day
$0day
$04 millionyr
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Anticipated Benefits to Dubuque
Total Value $180000yr
No upfront capital and no additional OampM costs to City
Improved microturbine life
Ability to add 4th and 5th microturbine if successful
Bondagreement to make the City whole if system is discontinued
Actual Value
$20000year
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Dubuque Project Status
Start-up late March 2018
Long delay getting system installed and approved
Third party was not accustomed to working in the municipal WWTP realm
Working with City to reconfigure digester feeding
D3 from sludge biogas
D5 (or other) from HSW biogas
Blended
Sludge
Storage
Thermo
Digesters
Meso
Digesters
HSW
D3 Biogas D5 Biogas
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Midwest WWTP ndash 25 mgd DAFPipeline Quality Gas Evaluation
Gas production ~ 280000 ft3day
All D3 RINs by definition
Currently no digester gas use except for process heat
Low electrical costs ~ $005kWH (cogen not considered)
Requires H2S moisture siloxane and CO2 removal
Utilize membrane CO2 removal system
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
WWTP Gas Current vs Potential Value
$300$500
$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
HeatingFuel
COGEN D5 TransFuel
D5 + LCFS D3 TransFuel
D3 + LCFS
Gas Value Per Million BTUs
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Project Costs and Revenue
Continue with Boilers
Produce RNG
Capital Costs $0 $6100000
Gas Conditioning OampM $0 $340000yr
Relative Power $0 $120000yr
D3 RIN (80 of total) $0 ($1300000yr)
Boiler Maintenance $20000yr $20000yr
Annual Cost (Revenue) $20000 ($820000)
Opinion of 20-Yr Present Worth $300000 ($8430000)
Direct Payback NA ~7-8 years
Payback was lt 5 years only 8 months ago
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Anaerobic Lagoon Application
bull City owned lagoon treating meat processing wastewater
bull gt800000 ft3day biogas (all D5 RINs)
bull Low electrical costs ($004-$005kWH)
bull Third party currently has gas rights (similar to Dubuque)
bull Value of gas has continued to decrease
bull Evaluate options
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Lagoon Biogas Conditioning Upgrades
bull Requires H2S siloxane and moisture removal
bull Add CO2 removal
-Concerns with O2 and N2 from lagoon gas collection-Membranes and amine systems not able to remove O2N2
-Two-stage PSA (O2 gt 1)-Single-stage PSA with de-oxygenation system (O2 lt 08)
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Pipeline Gas Specs
Component Concentration
BTU Content gt 950 BTUs per ft3
Carbon dioxide lt 3 by volume
Nitrogen lt 4 by volume
Total Inerts (N2 + CO2) lt 5 by volume
Oxygen lt 03 by volume
Water lt 5 lbmmscf
Hydrogen Sulfide lt 8 ppm
Total Sulfur lt 16 ppm
VOCs lt current pipeline levels
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Lagoon Gas Current vs Potential Value
$010$300
$500$700
$1900
$2700
$3900
$000
$500
$1000
$1500
$2000
$2500
$3000
$3500
$4000
$4500
3rdPartySale
HeatingFuel
COGEN D5TransFuel
D5 +LCFS
D3TransFuel
D3 +LCFS
Gas Value Per Million BTUs
$8-$15
OtherRenewable
Markets
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Preliminary Lagoon Biogas Valuation (2017)
$0 LCFS
$035RIN
$600000
$0
$450000
$1050000
Current RIN Market
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Lagoon Project Costs and Revenue
2017 RFS (D5) 2018 RFS (D5) 2018 RE100
Capital Costs $9000000 $9000000 $9000000
Gas Conditioning OampM $500000yr $500000yr $500000yr
Relative Power $200000yr $200000yr $200000yr
RNG Revenue (80 of total) ($2900000yr) ($840000yr) ($1600000yr)
Annual Cost (Revenue) ($2200000) ($140000) ($900000)
Direct Payback ~4 years gt60 years ~10 years
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Impact of RNG Values
RNG Value ($MMBTU)
$6 $29 $35 $41$12 $17 $23$0
Current
D3 RIN
Current
D5 RIN
RE100
Range
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Closing Thoughts
Digester gas end-use should consider RNG production in addition to cogeneration
Cogeneration is maintenance intensive
There are low-risk (and lower value) RNG opportunities available through turn-key providers and longer term guaranteed markets
RFS markets have and will fluctuate ndash itrsquos a market that will have itrsquos ups and downs
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Closing Thoughts
Year 2022 is not a ldquosunsetrdquo year for the RFS program the program will continue untilunless Congress decides to discontinue the program
eRINs could help drive renewed interest in cogeneration systems utilizing digester gas
Californiarsquos Low Carbon Fuel Standard program has recently expanded and has been authorized through 2030 may be difficult to access for POTWs
Other states are likely to follow Californiarsquos lead though perhaps not as aggressively
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
Questions amp Discussion
Randall A Wirtz PhD PE ENV SP
randywirtzstrandcom
