Biogas from-food-waste

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anaerobic digestion for cost reduction and sustainable food manufacturing …

anaerobic digestion for cost reduction and sustainable food manufacturing

Food manufacturers are turning to biogas installations to reduce waste, energy and operating costs, CO2 emissions, and to produce green energy that can be sold. Biogas from food waste and sustainable manufacturing in the Food industry was the focus of a lecture at Warwick University by PM Group’s Barry McDermott and Campbell Stevens.

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  • 1. Sustainability & Manufacturing –A focus on Renewable Energy Supply through Anaerobic Digestion Dr Barry McDermott Campbell Stevens PM Group 17.05.2012 Midlands Manufacturing Group
  • 2. Content PM Group What is Sustainability Sustainable Manufacturing – Why ? Sustainable Energy Bioenergy & Anaerobic Digestion Project Example Finance & Business Case Development Questions
  • 3. Sustainability “Global Warming” “Resource Use” “Climate Change” “Energy Efficiency” “Embodied Energy” “Carbon Footprint” “Sustainability” “Low Carbon “Whole Life“Ecological Systems” Costing” Footprint” “Zero Carbon” “Green Design”“Life Cycle Analysis” “Corporate Social Responsibility”
  • 4. History of Sustainability 1972 – UN Conference on 1992 – UN Conference – Human Environment Earth Summit 1800’sTranscendentalism Rachel Carson 1987 Brundtland – Silent Spring Report - Our Common Future 1800’s 1900’s 1960 1970 1980 1990 1995 2000 2005 Love Canal & Industrial Superfund Act Revolution 1983 – UN World 2002 – World Summit Commission on on Sustainable Environment & Development Development Social Revolution Environmental Revolution Sustainability
  • 5. Sustainability Defined“Humanity has the ability to makedevelopment sustainable – to ensure it SUSTAINABILITYmeets the needs of the present withoutcompromising the ability of future Social Equitygenerations to meet their needs”1987 World Commission on Environment andDevelopment Concept of sustainability is much more than environmental protection in another guise Sustainabilitys Goal: To achieve human and ecosystem well-being together
  • 6. Sustainability Ecology Materials Waste ENVIRONMENTAL Energy Water SUSTAINABLE Health & Well Insurance Pollution Environmental BeingDESIGN Construction SOCIAL Time and Cost Management Land ECONOMIC Whole Life Sustainable Productivity Amenity Cost Development Growth Economic Social Diversity Economic Function & Profitability Security Life Performance Health & Investment Quality Safety Employment Access
  • 7. One Living Planet  12bn hectares – 6.5bn people  Per capita global quota – 1.8 hectares  European footprint - 6 hectares; North American footprint – 10 hectares
  • 8. Overpopulation
  • 9. Global Consumption Rates are rising… Humanity’s Ecological Footprint, 1961-2005 1.8 1.6 Number of planet Earths 1.4 1.2 World Biocapacity 1 0.8 0.6 0.4 0.2 0 1960 1970 1980 1990 2000 Number of planet EarthsSource: WWF Living Planet Report 2008
  • 10. The Global Demand for Energy is Rising… World Marketed Energy Consumption 250 Projections 200 million GWh 150 100 50 0 1980 1985 1990 1995 2000 2006 2010 2015 2020 2025 2030 Industrialisation Population Enhanced Growth LifestylesSource Data: Energy Information Administration (EIA), International Energy Annual 2006 (June-December 2008), website http://www.eia.doe.gov/iea/wecbtu.html
  • 11. Rising CO2 Emissions World Energy-Related Carbon Dioxide Emissions by Fuel Type, 1990-2030 50 History Projections 40 Total Billion Metric Tons 30 20 Coal Liquids 10 Natural Gas 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 Liquids Natural Gas Coal TotalSource: Energy Information Administration (EIA)
  • 12. Need for Change… ENERGY EFFICIENCY CONSERVATION CLEANELECTRONS
  • 13. Visual Evidence !
  • 14. Other Drivers for Sustainable development……...
  • 15. Why Should a Manufacturing Facility Change ? Risk Management Future Proofing Professional Ethics Reduce Environmental Impact Best Engineering Practice Cost Savings – lower product unit cost Energy Security Customer Driven Legislative Driven Corporate Sustainability goals inc footprint Branding & Marketing
  • 16. Energy Security Energy Costs - Average domestic gas bill has doubled since 2000 Guarantee of Energy Supply - Blackout concerns - Unavailable importsReference: DECC & OFWAT
  • 17. Sustainability – Some Focus Areas in Design &ManufacturingSustainable Energy & Water Materials & Indoor Innovation Sites Atmosphere Efficiency Resources Environmental Quality
  • 18. Opportunities…. Technology Fuels & Alternative / Emission Energy Feedstocks Renewables Reduction Efficiency SOLUTIONS Supply-side End-of-pipe Demand Side  Biofuels  Wind Power  Air pollution  Green buildings control  Hydrogen  Solar  Low energy  Coal to gas appliances  Biomass  Biomass  Carbon capture  Building control  Waste to Energy  Fuel Cells and storage  Smart meters and Energy  Energy Storage  Waste grids Efficiency &  Hydro Management  Smart homes Renewables  Wave, tidal, deep-  W&WWT  Energy lake management  Geothermal  T&D infrastructure
  • 19. Anaerobic Digestion Technology
  • 20. Anaerobic Digestion  Natural process which occurs in river and lake sediments, soils and the gastrointestinal tract of animals  Degradation of organic material by bacteria in the absence of oxygen.  One of the oldest forms of biological wastewater treatment - 1850’s  Traditionally part of sludge stabilisation process
  • 21. Anaerobic Digestion Process Generator / CHP Scrubbing Grid Transport Biofuel Biogas Digestate Feed Composting Storage/ Digestion Dewatering Soil Conditioner Handling Process Fertiliser*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007
  • 22. How it works….. Methane CO2 H2S NH3 Heat & BiomassSource: IEA Bioenergy Task 24
  • 23. Digestion Technology  Process Temperature – Mesophilic 38 – 42 °C – Thermophilic 55 – 65 °C  Feedstock – Mono-digestion or Co-digestion  Plant Design/System – Batch or Continuous; Tank or Lagoon  Digestion – Dry (>30% DM) or Wet (6 – 30%DM)
  • 24. Digestion Technology CSTR Tanks, Germany CSTR, Biogas Farm, Germany CSTR, Hungry Horizontal Plug Flow System, USA
  • 25. … Digestion Technology Completed 200,000m3 lagoon, Lagoon system – HDPE roof system 10m depth, Asia with gas collection, Asia 70,000 m3 lagoon system, Scotland
  • 26. … Digestion Technology High rate UASB/IC type – Domestic digester, Indonesia Low solids reactor No high-end engineering required!
  • 27. Feedstocks & Operations
  • 28. Feedstock  Organic waste – Biodegradable Municipal Waste – Sewage Sludge – Agricultural slurries – Silage Crops – Industrial effluents  Feedstock characteristics determines gas yield
  • 29. Biogas Yields Biogas Yield Feedstock %Dry Matter (m3/t) Cattle Slurry 10 25 Pig Slurry 7 26 Sour Whey 6 37 Food Waste 15 46 Veg waste 15 57 Broiler Manure 60 80 Laying Hen Litter 30 90 Grass Silage 25 150 Sugar Pulp 28 200 Maize 30 200 Cheese Whey 79 670
  • 30. Biogas as a Biofuel potential Composition – Methane 50 – 75% – Carbon Dioxide 45 – 25% – Water Vapour 2 – 5% Trace Amounts: <1% – Ammonia – Hydrogen Sulphide 1m3 of biogas (70% CH4) calorific value 20MJ/m3: – 0.6 L of Petrol; 2.5kWh of heat; 1.7kWh of electricity – Electricity; Heat or Biofuel Beware! ATEX Regulations
  • 31. Digestate Comprises feedstock not fully converted to biogas & biomass May be dewatered to fibre and liquor fractions Fibre: – May be aerobically composted to provide a stable, marketable peat moss substitute – Alternatively, landspreading as a soil conditioner or low grade fertiliser
  • 32. Digestate  Liquor: – Separated liquid fraction contains large proportion of nutrients – Ideal for use as a liquid fertiliser as part of a Nutrient Management Plan  Disposal of Digestate can be a limiting factor Beware! Biosolids Code of Practice & Animal By-Products Regulations
  • 33. Anaerobic Digestion Process – Potential Industry Options Electricity Electricity Boiler for Gas Engine Pasteurisation Exhaust Steam Cooling/Chillers Exhaust Biogas Green House Digestate Feed CompostingStorage/ Digestion Dewatering Soil ConditionerHandling Process Fertiliser*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007
  • 34. Project Study Example
  • 35. Project Bioenergy Primary Objective – To reduce the Client’s exposure to the volatility and overall cost of energy. – Driving fuel independence Secondary Objectives – Develop a working biogas business model for replication across other facilities Additional Benefits – Reduction in Carbon footprint – Demonstrable move towards a This project will deliver a robust, ‘fit for purpose’ facility for the client to produce biogas from sustainable business processing co-products.
  • 36. Overview Replacing 25% of factory natural gas requirements – equivalent to 66% of the household consumption in local region Feedstock ANAEROBIC Biogas Biogas Feedstock Handling DIGESTION Cleaning To CHP Feedstock Digestate Fertiliser Ensiling Separation For saleAD Technology – 2 Options:1.Continuous Stirred Tank Reactor Water Effluent to river2. Lagoon Treatment*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007
  • 37. Key Figures Inputs  Outputs – Feedstocks – Biogas • Agriculture industry • 12.5M therms per annum • Organic By-product of • 50MWth/12.8MWe installed process capacity – 2450tpd by-product ex process • 50:50 CH4:CO2 • ca. 1000tpd direct to AD • Up to 10,000Nm3/h • 1450tpd to ensiling – Lagoon configuration reactor – Digestate • Ca 200,000m3 volume • Dewatering Plant required • Fertiliser product for market sale £60m investment – Effluent 5 Year Payback (IRR >20%) • 800k-900k m3 p.a. • 8000-12000mg/l COD Construction due Q3 2012 • 3000mg/l NH3 • Full scale effluent treatment plant required
  • 38. Financing & Business Case Considerations
  • 39. Global Total New Investment In Clean Energy
  • 40. What technology is this money being spent on ? Energy Storage & Smart Grid (R&D) Wind (Mature) Solar Biofuel Biomass & Waste (Mature) Geothermal Tidal (Developing) Efficiency Follow the money………………?
  • 41. Business Case Considerations Drivers for Development – Business cost avoidance/Financial Returns – Planning – Replacement of end-of-life assets Feedstock Availability – Guarantee of supply – Cost security By Products – Cost of disposal Gas Utilisation – Use on site or Export? Fuel Security Process/Project risks – Pass the ticking parcel? Grants & Tariffs – moving sands or easy money? Feasibility Study & Business Case Development
  • 42. General Overview of Funding Support Generation Funding Tariffs – Renewable Electrical Generation – FIT if < 5MWe (Feed-in Tariff + £30/MWhe, if exported), or – RO (Renewable Obligation, 20-year Grandfathering) RHI (Renewable Heat Incentive, 20-year Grandfathering) – £10/MWhth for dedicated biomass – £68/MWhth for Biogas upgraded to Biomethane (grid export quality) Several Other Sources, eg – ECA (Enhanced Capital Allowance) • for verified “Good Quality” CHP • 100% Year 1 Tax incentive against validated capital value
  • 43. Cost Avoidance Examples Carbon Floor Price Climate Change Levy Gas purchase offset Electricity offset (CHP) Gas/Elec conveyance (eg, capacity reserve, ToP, MDQ reduction) Waste disposal – eg, stock food transportation – effluent treatment, PPC $
  • 44. EXAMPLE PROJECT: Possible configurations; which one? 1 2 3 4 OPTIONSBiogas to Biogas to Biomethane BiomethaneBoiler or Gas Engine to Boiler or to GridCHP CHP CHP• Contamination • HW to site • ECA • RHI £68 MWhth +issues? • ECA £MWh base gas price •FIT for MWhe (for• ECA • FIT for MWhe CHP) • Reduces any operational issues, eg• £ Offsets; • £ Offsets; • £ Offsets; matching demand • CCL • CCL • CCL profiles, etc, as operates discretely from site • ETS/Carbon • ETS/Carbon • ETS/Carbon Floor Price Floor Price Floor Price • option to switch to total site consumption in • Gas • Gas • Gas future purchase purchase purchase
  • 45. Most Feasible AD Configuration? BOILER/CHP or AD GAS ENGINE? ? UPGRADE? ? ? GAS GRID SITE
  • 46. FEASIBLE / VIABLE? Sustainable?......in the classic context? – Feedstocks – Offtakes – CapEx / OpEx Funding & Risk – Internal/off balance-sheet? – Ability to take direct process/technology risk? – BOO/ESCo? Evolve the Financial Model from outset – Build simple but sound case – communicate the value (or otherwise) – Measure it how you need to…. • Simple payback, NPV, IRR, etc
  • 47. Summary Sustainability is a balance of environmental, economic and social concerns. Energy will be a prime focus of environmental sustainability in the manufacturing industry. Renewable energy supply can provide environmental & economic sustainability benefits in the manufacturing industry. Bioenergy Options such as Anaerobic Digestion offer significant potential benefits for producers of organic waste. Business Case Development to ensure viability of the project should be established early in the project and evolve with the project development to ensure success.
  • 48. THANK YOU & QUESTIONSwww.pmgroup-global.comBarry.McFarlane@pmgroup-global.comCampbell.Stevens@pmgroup-global.comBarry.McDermott@pmgroup-global.com