Technologies Waste to Energy JP Hoffman Siemens. Proprietary Information Of Energy 2013 – Why WtE? – Before Putting Into Service – Challenges – Opportunities

Technologies

Waste to Energy

JP HoffmanSiemens

Proprietary Information Of Energy 2013

– Why WtE?– Before Putting Into Service– Challenges– Opportunities– Risks– Rewards– Lessons Learned

Agenda

Waste Material Utilization: Reuse, Recycle, Energy Recovery

http://www.seas.columbia.edu/earth/RRC/waste_material_utilization.html


Why Waste-to-Energy?

Benefits• Reduce U.S. dependence on

fossil fuels• Increase energy security• Reduce GHG emissions • Meet future policy emissions

controls


Reduction of GHG• Avoided methane emissions from landfills• Avoided CO2 emissions from fossil fuel combustion• Avoided CO2 emissions from metals production

Water • Use• Discharges

Environmental Aspects1

1 – http://www.epa.gov/cleanenergy/energy-and-you/affect/municipal-sw.html

http://www.epa.gov/cleanenergy/energy-and-you/affect/municipal-sw.html


Solid Waste Generation• MSW Waste-to-Energy generation creates a solid waste called ASH• Depending on state and local restrictions, non-hazardous ash may be

disposed of in a MSW landfill or recycled for use in roads, parking lots, or daily covering for sanitary landfills

Environmental Aspects


Before Putting into Service

Applicable Concept and Design• Feedstock management• Design/Build/Operate/Maintain Agreement

Environmental Considerations• Air Emissions Permit • Water Use/Discharge Permit• Environmental Impact Requirement• Regulatory Conformance

Preliminary Requirements1

1 – http://www.seas.columbia.edu/earth/wtert/faq.html

http://www.seas.columbia.edu/earth/wtert/faq.html


Before Putting into Service

Siting• Permits• Waste Availability/Supply Commitments• Ash Disposal (landfill) Capacity

Financing Options• Contract Vehicles / PPA / EUL• Incentives & Guarantees• Exploration Expense• Tax Credits

Preliminary Requirements1

1 – http://www.seas.columbia.edu/earth/wtert/faq.html

http://www.seas.columbia.edu/earth/wtert/faq.html


Public Opposition• Environmental groups often form opposition against new WtE plants

regardless of technology used• Need to understand the impact this may have on permitting process, utility

process and financing options• Understand timeline for public notification

Technical and Performance Issues• System must meet performance criteria to remain economically viable• Newer, more experimental systems are risky because they have no

demonstrated performance records

Facing Challenges


Cost Challenges• Exploration• New Infrastructure• New Generation Plant

Waste Stream Supply Issues• Lack of supply could void any third party guarantee

Funding and Financial Issues• Changes in government contract vehicles and/or restrictions• Lack of seed money for start-up projects

Facing Challenges


Scale Issues• Long term growth must be considered when determining applicable size

of plant• Smaller scale projects have higher levelized costs of production

Lack of Support for Decision Making• Lack of defined, documented economic, environmental, and technology

performance metrics to inform the decision-making process and states’ varying definitions of municipal solid waste, biomass, and WTE

Facing Challenges


ACHIEVE ENERGY MANDATESEnergy security and availability• Promotes long-term affordable

energy prices

Reduces waste stream direct and indirect costs• Tipping fees of disposal• New landfill cell opening fees• Transportation costs• Labor costs

New Opportunities

Provides base-load power • Augment on-site intermittent

renewable energy generation technologies• Solar and Wind

• Unconsumed/overproduced electricity could be sold to the utility

Valuable by-products for use in other areas• Bottom ash • Biogas • Bio-char• Bio-oil


Under-trained staff performing incorrect operation and maintenance procedures• Improper O&M can cause low production or failure of systems

Energy price escalation• Evolving energy landscape leads to difficulty forecasting energy prices• Utility energy pricing fluctuation based on market conditions

Waste Stream Supply• Intended use of buildings may change over time • Conservation methods may change volume or type of waste stream produced

Understanding Risks


Changing Emissions Standards/Environmental Legislation• Increasingly stringent emission standards may create future costs to comply if

goals are not aggressive enough in design

Plant Equity• Useful life is considered to be 20+ years

– Current market estimate at 20+ years

Understanding Risks


Contract Clarification• Risk Responsibility Matrix• Understanding of scope of supply, limits of liability, liquidated damages,

defects liability, periods, intellectual property, interface agreements and financial projections/guarantees prior to signing contracts

Funding• High capital costs for Waste-to-Energy plant• Construction costs based on specific time period, if completion is delayed,

damages may accumulate

Understanding Risks


Increased energy security and energy savings • May allow installation to increase and change mission objectives, diverting

energy spend for other uses

Prestige associated with achievement of energy goals• Plants are eligible for REC credits that may be sold to other energy users to

offset carbon footprint and provide additional funding for the installation

As technologies are used and refined, the next generation becomes less expensive and more efficient

Earning Rewards


Market• Look for projects with financial incentives, skilled workforces, adequate

transmission and abundant input source

Project Team• Create a team with decision makers, compliance officers, financial

experts and appropriate engineering staff• Find common goals and determine generation misconceptions early to

prevent unnecessary roadblocks during negotiations

Lessons Learned


Project Schedule• Projects that are shovel ready can better adapt to changing conditions • Understand the environmental regulations required prior to committing to a

schedule, certain studies can only be performed during specific intervals within the year

Site Considerations• Clearly defining the level of priority for project development and creating

master site and energy plans can help resolve any land-use conflicts existing at potential sites

Lessons Learned


Utility Regulations as Barriers• Interconnection, net-metering

O&M is Key for Success• Improper maintenance reduces system efficiency and threatens the useful life

of equipment.

Training• Required interval training and proper documentation

Feedstock management

Lessons Learned


Questions?

Documents

Technologies Waste to Energy JP Hoffman Siemens. Proprietary Information Of Energy 2013 – Why WtE? – Before Putting Into Service – Challenges – Opportunities