Power From Municipal Waste

8/6/2019 Power From Municipal Waste

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6/17/2004 DRAFT WORKING DOCUMENT 1

AP&T Generation Project

Investigation into Municipal Solid Waste

Gasification for Power GenerationDraft Report to the Public Utilities Board


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une 16, 2004 2Advanced

Energy Strategies, Inc.

Process of this Study

May 2002 AES presented a report to the PUB

Objectives of a power project

Gasification of MSW identified as an approach

that met all objectives

Major Recommendation: conduct an RFQ for

MSW Gasification

This report presents the results of the RFQ


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Objectives of a Generation Project

Provide Local Reliability

Maintain an Economic Resource Portfolio Ensure Stable Electric Cost and Power

Supply

Facilitate Economic Development in the Cityof Alameda

Maintain Power Content Label in the SupplyPortfolio

Meet Future Need in a Timely Manner


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Key Information Sought Through RFQ

Technical Feasibility?

Economic at Scale useful to Alameda P&T?

Business Models for a Project?

Interest among Vendors?

Is MSW gasification and power production

competitive with other alternatives?


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The RFQ Team

Advanced Energy Strategies, Inc.

Overall project management

Economic analysis

Final Report

URS Corporation Engineering assessment

Technical Report Alameda P&T Staff

Project guidance


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What is MSW Gasification?

Chemical conversion of MSW into synthetic gas in a controlledprocess

Four technologies:

Pyrolysis: No oxygen,Temperatures 750 - 1650 F

Gasification: Limited oxygen (< stoiciometric),

Temperatures 1400 - 2500 Plasma Gasification: Limited oxygen,

Temperatures of thousands of F

Bio-gasification: Anaerobic digestion

Less than 200 F

Bio-Gasification is not efficient enough to generate the amountssought in the RFQ, so it was not evaluated.


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Gasification is Not Incineration

Incineration (burning): Oxidizing Environment oxygen rich

Combines simple compounds into more complex compounds

Creates complex oxides, including dioxins and furans

Rejected by Alameda P&T in the 1980s

Gasification:

Reducing Environment very little or no oxygen used

Breaks complex compounds down into simpler compounds

Destroys toxics including dioxins and furans


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Gasification Process: 3 Stages


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Approach of the RFQ

Issued Round 1 - April 2003

Round 2 - June 2003

Responses & Evaluation

13 vendors responded with 15 proposals 13 proposals were worthy of technical evaluation

In-person vendor interviews - November 2003 6 leading proposals were evaluated more

thoroughly through vendor interviews

Short list includes 4 vendors


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June 16, 2004 10Advanced


Three Areas of Findings from the RFQ

Technology

MSW Gasification technology is viable Will produce electricity reliably

Can be permitted in California

MSW Gasification technology is commercialized(just barely)

Technology will improve as it is deployed

Mitigation of construction and operating risks will need to

be addressed


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Economics Capital costs higher than most generation

technologies Includes the cost of fuel preparation Project receives revenue for accepting the fuel

Highly dependent on alternative costs Gas fired generation

Landfilling MSW

Current alternative costs make MSW gasificationeconomic Alternative costs have been rising

Confirmation requires a defined project


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Institutional

Law & Regulation are lagging technology development

California legislation began addressing this in 2002

Gasification recognized as different from incineration

Definition of gasification does not fit the technology Significant issue for thermal conversion technologies

May not be a large problem for bio conversion

Did not define a role for gasification in MSW processing

Gasification is a renewable technology

Technology and life-cycle reports mandated

Additional legislation will be needed


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Development Path Alternatives

PowerPurchases

CombinedCycle

ThermalConversion

Bio-Conversion

MonitorDevelopments

TechnologyViability Well

Established

Well

Established

Confirmed Needs

Confirmation

-

Maturity Very Mature Very Mature Not Mature Not Mature -Risk Mitigation Contract Terms Turnkey

Construction

Needs

Attention

Need May be

Limited

-

Applicability to

Alameda P&T

Not Meet Local

Reliaability

Goal

Too Large;

Gas Pressures

Low; Not meet

RenewableGoal

Good Fit

Except for

Siting

DifficultiesWithin Alameda

Not

Determined

Viable for up to 2

years

InstitutionalNew MSW Regulations n/a n/a Required May

Accommodate

Moderate

Participation

Legislative Definiation n/a n/a ModificationRequired

ProbablyAdequate

ModerateParticipation

Local MSW Plan n/a n/a Modification

Required

Modification

Required

Moderate

Participation

Project RequirementsMSW Supply n/a n/a Untested Untested Defer

Site for Project n/a Some Difficulty Difficult Difficult Defer


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Gasification of MSW is a Good Fit for

Alameda P&T

Meets all Six Objectives Local

Renewable

Timing fits Alameda P&Ts needs

Scale is appropriate


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Recommendations

Assess the Status of Bio-Gasification

Participate in Developing MSW Conversion

Laws & Regulations Promote Development of a Reduced Scope

MSW Gasification Project

Documents

Power From Municipal Waste