Weisberg DeRuyter Feasibility Brownbag

DeRuyter Digester Feasibility Study:

Transportation Fuel and

Nutrient Recovery

Peter Weisberg

The Climate Trust BrownbagPortland, OR

June 11, 2012

DeRuyter Digester:GHD/DVO/ Andgar modified plug-flow

1.2 mW CHP engine

Avoided Cost Power Price from PacifiCorp

• 2012: $0.065/kWh• 2013: $0.035/kWh

• Generator operations and maintenance: $0.027/kWh

Current Net Cash Flow(Revenue - Operating Cost – Debt

Service)

Power price2012: $0.065/kwh, 2013: $0.035/kwh

Fra

cti

on

of

Net

Reven

ue

Key RevenueFiber (Peat Moss) and Nutrients (Phosphorus)

Biogas to Transportation Fuel

Renewable Identification

Number

Projects that clean and compress biogas into transportation fuel can earn

Renewable Identification Numbers.

Barrier 1: Getting enough gas

• Need 500 cubic feet per minute of biogas

• Have 269 cubic feet per minute of biogas

• Need up to 70,000 gallons of substrate

Barrier 2: Capital cost

• Gas cleaning: $2.5 million• Transportation: $1.2-$1.7

million• Injection: $1.2 million• Station: $0.3 million

• Total: $4.9 – $5.7 million

Barrier 3: Environmental Market UncertaintyRenewable Fuel Standard 2

Biogas RIN Prices

• 77,000 BTUs = 1 Advanced Biofuel RIN

• Advanced Biofuel RIN prices:Worst Case Projection Current Price

$0.02/RIN$0.26/MMBTU

$0.25/RIN$3.25/MMBTU

$0.74/RIN$9.61/MMBTU

Gas Price ($/MMBTU)

RIN Price Total($/MMBTU)

Commodity$3.87/MMBTU

Worst Case$0/RIN=$0/MBBTU

$3.87

Projection$0.25/RIN=$3.25/MMBTU

$7.12

Current$0.74/RIN=$9.61/MMBTU

$13.48

Retail$16.23/MMBTU

Worst Case$0/RIN=$0/MBBTU

$16.23

Projection$0.25/RIN=$3.25/MMBTU

$19.48

Current$0.74/RIN=$9.61/MMBTU

$25.84

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

$-

$500,000.0

$1,000,000.0

$1,500,000.0

$2,000,000.0

$2,500,000.0

$3,000,000.0

$3,500,000.0

$4,000,000.0

$4,500,000.0

$5,000,000.0

Net Cash Flow(Revenue - Operating Cost – Debt Service)

Retail Gas Price- $0.74/RIN

Retail Gas Price ($16.23/MMBTU)- $0.25/RIN

Commodity Gas Price- $0.74/RIN

Commodity Gas Price- $0.25/RIN

Electricity

Commodity Gas Price ($3.87/MMBTU)- No RIN

Biogas to Transportation Fuel Take Away

1) Potentially more profitable

2) Barriers• Substrates• Debt• Environmental market uncertainty

$

Nutrient Management

• Anaerobic digestion ≠ nutrient management– Before digestion: 1/2 organic N, 1/2

ammonia– After digestion: 1/3 organic N, 2/3

ammonia– Total N stays the same!

Nitrogen flows

• Ammonia striping system can recover 50% of the nitrogen – Before: 419 tons

of nitrogen applied to nearby fields

– After: 209 tons of nitrogen applied to nearby fields

Not financially viable

Low Price Medium Price

High Price

-$303,611 -$9,282 $38,316

Net cash flow of WSU nutrient recovery system in 2016 at different fertilizer price assumptions

N to N2O Emissions Factors:

Insufficient carbon

• Reduction in 209 tons of N (tier 1)

=1,224 mt CO2e reduced

Further research

• Tier 2?• Tier 3-

Biogeochemical modeling of timing, place, type?

Nutrient Management Take Away

1. Livestock operations want a nutrient management solution.

2. Current nutrient recovery technologies are struggling to be financially viable.

3. Further research is needed to monetize N2O reductions and push these projects towards profitability.

Thank you!

Peter WeisbergSenior Project Analystpweisberg@climatetrust.org(503)238-1915 x207