Aes 10sldk De Edits 12 5 10


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Bringing BioGas to market. Applied Energy Solutions, Inc. outlines the model for bringing Renewable Natural Gas to High Value Markets.

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  • AFT – world leader in biogas analysis and cleaning, proprietary technology and experience = pure pipeline grade, cost-effective biomethane ( “renewable natural gas” [RNG], with unmatched 10-year guarantee; 300 projects worldwide). AES project development arm: U.S. and international energy project development and marketing expertise.
  • Biogas opportunity: billions of gallon equivalents/y.r; > 20 percent of current motor fuel market Sweden producing 20 percent of vehicle fuel right now In 2007, biomass-produced electricity in California totaled 6,236 gigawatt-hours (GWh) or 2.1 percent of the state's total system power . A total of 132 operating biomass power plants, with an installed capacity about 1,000 megawatts, are in California. ( California Natural Gas Data and Statistics ) Biorem reports a potential biogas market of $3.68 billion in North America. Biogas sources: WWTP, landfill, agricultural and industrial treatments (breweries, etc.)—seeing more digesters every year Tipping point – from petroleum to natural gas motor fuel — bridge fuel to renewable resources. Based on recent discoveries, first time in U.S. history we have > 100 years of gas, with proven reserves and price stability thru 2035 (US EIA – below $8.50/MMBtu) Natural gas with proven availability and cost stability means increased investment in RNG is CNG from renewable sources, so it uses the same infrastructure as CNG from conventional fossil gas sources
  • We can produce RNG -- the greenest fuel available – in every region of the U.S. for a buck less a gallon (< $2/GGE) than gasoline or diesel without government subsidies. According to the Picken ’s Plan, the U.S. spent $475 billion on foreign oil in 2008 33 percent of that went to power our heavy truck and bus fleet.
  • car/truck/bus fuel, LEEDs/green building, home – displace propane, heating oil, electric If the U.S. were to achieve its full potential (8,000 anaerobic digesters), then the total generating capacity would be around 2 percent of all electricity production ( Industrial Fuels and Power ). The methane in renewable biogas could displace as much as 10-15 percent of current fossil natural gas use by 2025-2035 ( American Biogas Council ).
  • Biogas is GHG-negative : when burned in place of a fossil fuel, carbon-neutral biogas reduces our GHG footprint Positive byproducts: compost, fertilizer, CO2 and nutrients for greenhouses, algae-energy production Clean water: prevents manure run-off into streams, shellfish beds Local economic stimulus: makes dairy and cattle operations more viable, provides local energy and construction and manufacturing jobs For PNW audience : AFT is a PNW (or WA) based company, with deep local ties and growing employee base
  • Conversion incentives: NATGAS Act before Congress will provide additional incentives to convert vehicles, etc. Air and water quality: grants, markets for emissions and effluent trading Ag grants: for digesters, rural development thru USDA Natural Resources Conservation Service, USDA Rural Development
  • Sustainable mission: cleaner water, more profitable dairy, renewable waste-to-energy model Dairy operations generating significant manure waste, stored in lagoons until able to spread on fields. Releasing methane gas, 23 times more destructive than biogas Currently generates 450kw electricity with 1/3 of gas, flares the rest Conventional stranded biogas model: just getting by financially (expensive, high-maintenance biogas engine; modest power income); operating under ag air quality exemption Other interesting stats: Biogas recovery systems are technically feasible at more than 8,000 U.S. dairy and swine operations. Systems at these facilities have the potential to collectively generate more than 13 million megawatt-hours (MWh) per year and displace about 1,670 megawatts (MW) of fossil fuel-fired generation. In 2004, Agstar reported that at the time, swine and dairy operations had the capacity to produce $500 million worth of electricity annually .
  • Conclusion: AES pays more for biogas than Qualco nets from electric gen Timeline: <six months from contract to production of RNG Partnering: compression, RNG storage, fueling system, conversion assistance, maintenance, gas quality guarantee
  • Aes 10sldk De Edits 12 5 10

    1. 1. Applied Energy Solutions : Turning waste streams into renewable natural gas December 2010
    2. 2. Applied Energy Solutions <ul><li>AES’ mission: use AFT’s biogas cleaning technology to produce pipeline quality biomethane (Renewable Natural Gas) for high-value markets. </li></ul><ul><li>Build on the conventional biogas paradigm – on-site heat & electricity generation – with a model for taking RNG to high-value markets: </li></ul><ul><ul><li>Motor fuels </li></ul></ul><ul><ul><li>Propane </li></ul></ul><ul><ul><li>LEEDs buildings, other renewable/carbon-sensitive applications </li></ul></ul><ul><li>Industry leader AFT provides core technology, track record (300 projects worldwide), gas quality guarantee needed to take RNG off-site. </li></ul>Turning waste streams into Renewable Natural Gas… with AFT technology
    3. 3. What is Renewable Natural Gas? <ul><ul><li>Waste based: Biogas (methane, CO2, other gases) is produced by anaerobic digestion of organic wastes at wastewater plants, landfills, ag digesters, etc. </li></ul></ul><ul><ul><li>Same infrastructure: Biogas cleaned with AFT’s technology to pipeline quality methane can use same infrastructure as conventional natural gas. </li></ul></ul><ul><ul><li>Super green: RNG can be carbon negative (by preventing natural off-gassing of methane), locally produced, prevent water pollution. </li></ul></ul><ul><li>Big, viable resource: Sweden is powering 20% of its public transportation with RNG; EU seeking 25-35% displacement of oil with RNG by 2030. </li></ul>A sustainable fuel for the future
    4. 4. A shift to natural gas and RNG <ul><ul><li>Huge new natural gas reserves make possible a shift from oil-based fuels to cleaner, cheaper, US-produced natural gas. </li></ul></ul><ul><ul><li>AES can deliver RNG for about $2 per GGE (gasoline gallon equivalent). </li></ul></ul><ul><ul><li>Environmental regs, government incentives, carbon pricing, economies of scale, new technology will accelerate adoption of RNG. </li></ul></ul><ul><li>Conclusion: RNG can out-compete and displace gasoline, diesel, heating oil, propane, electric heat – even without incentives. </li></ul>Tipping from petroleum to gas-based motor fuel market
    5. 5. Renewable natural gas production and delivery
    6. 6. RNG ’s many end uses FPO Vehicle fuel, heating, electricity
    7. 7. Additional benefits of biogas <ul><ul><li>Secure, domestically sourced fuel </li></ul></ul><ul><ul><li>Converts wastes and pollutants to renewable energy </li></ul></ul><ul><ul><li>Reduced carbon and greenhouse gas emissions </li></ul></ul><ul><ul><li>Clean water </li></ul></ul><ul><ul><li>Positive byproducts </li></ul></ul><ul><ul><li>Jobs & local economic stimulus </li></ul></ul>Improves economic, environmental, community health
    8. 8. Incentives for shift to CNG <ul><ul><li>Incentives for converting vehicles </li></ul></ul><ul><ul><li>Renewable energy credit (green tags) </li></ul></ul><ul><ul><li>Carbon and greenhouse gas market </li></ul></ul><ul><ul><li>Air and water quality regulatory drivers and grants </li></ul></ul><ul><ul><li>Agricultural grants for digester construction, rural development </li></ul></ul>State and federal support for natural gas/RNG and renewables
    9. 9. Applied Energy Solutions Demonstration Project <ul><ul><li>Current Status: </li></ul></ul><ul><ul><li>Digester launched in 2004 by tribal leaders, dairy farmers, fish habitat protectors to reduce impacts of agricultural wastes. </li></ul></ul><ul><ul><li>1200 head dairy plus mixed organic wastes produce 500 scfm of biogas; modified plug flow digester designed for 2000 head. </li></ul></ul><ul><ul><li>One-third of biogas fuels 450 KW generator set, remainder flared. </li></ul></ul><ul><ul><li>Raw biogas clogs genset, creates maintenance headache (>$150k/yr) </li></ul></ul><ul><ul><li>Reducing impacts: cleaner water, restored fisheries/shellfish, reduced GHG emissions, more efficient farming operation. </li></ul></ul>A partnership to demonstrate the viability and benefits of RNG
    10. 10. Applied Energy Solutions case study, cont. <ul><ul><li>AES purchases gas directly from digester, upgrades for high-value mkts </li></ul></ul><ul><ul><li>AES/AFT provide biogas cleaning, compression, transportation, fueling, conversion, maintenance, gas quality guarantee. </li></ul></ul><ul><ul><li>Economic benefits: </li></ul></ul><ul><ul><ul><li>Digester operator gets more revenue (vs. elect generation), less work </li></ul></ul></ul><ul><ul><ul><li>RNG customers receive lower-cost fuel, credits, greenest fuel available </li></ul></ul></ul><ul><ul><ul><li>Local jobs, economic ripple effect, taxes revenues </li></ul></ul></ul><ul><ul><ul><li>AES/AFT profits and demonstrates broadly applicable model </li></ul></ul></ul><ul><ul><li>Bottom line: AES model offers economic, environmental, community benefits. </li></ul></ul>AES model: doing good, doing well
    11. 11. Thank you INSERT AES URL here