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An Overview ofLandfill Gas Energy
Amy AlexanderERG, Contractor for U.S. Environmental Protection Agency
Landfill Methane Outreach Program (LMOP)
EPA’s Landfill Methane Outreach Program
Established in 1994Voluntary program that creates alliances among states, energy users/providers, the landfill gas industry, and communities
Mission: To reduce methane emissions by lowering barriers and promoting the
development of cost-effective and environmentally beneficial landfill gas
(LFG) energy projects.
Landfill Gas 101LFG is a by-product of the decomposition of municipal solid waste (MSW):
~50% methane (CH4)~50% carbon dioxide (CO2)<1% non-methane organic compounds (NMOCs)
For every 1 million tons of MSW:~0.78 megawatts (MW) of electricity~432,000 cubic feet per day of LFG
If uncontrolled, LFG contributes to smog and global warming, and may cause health and safety concerns
LFG Has Helped Produce…
AluminumAlternative fuels (biodiesel, CNG, ethanol, and LNG)Aquaculture (e.g., tilapia)Arts & crafts (blacksmithing, ceramics, glass)BeerBiosolids (drying)Bricks, cement, concreteCamera filmCarpetCars and trucksChemicalsChocolateConsumer goods and containersDenimElectronics
Fiberglass, nylon, and paperFurthering space explorationGarden plantsGreen powerIce cream, milk, and teaInfrared heatJuice (apple, cranberry, orange)Pet foodPharmaceuticalsPierogies and snack foodSoy-based productsSteelTomatoes (hydroponic)Taxpayer savings and increased sustainability!
Landfill Gas and Green PowerA Winning Combination
Dual benefit destroys methane and other organic compounds in LFGOffsets use of non-renewable resources (coal, oil, gas), reducing emissions of SO2, NOX, PM, CO2
LFG is a recognized renewable energy resource (Green-e, EPA Green Power Partnership, 36 states, NRDC)LFG is generated 24/7 and projects have online reliability over 90%LFG can act as a long-term price and volatility hedge against fossil fuels
LFG Energy Projects and Candidate Landfills
Nationwide Summary
526 OPERATIONAL Projects(1,628 MW and 311 mmscfd)
~515 CANDIDATE Landfills(1,130 MW or 580 mmscfd, 13 MMTCE Potential)
These data are from LMOP’s database as of October 1, 2010.
* Landfill is accepting waste or has been closed for 5 years or less and hasat least 1 mmtons of waste and does not have an operational/underconstruction LFGE project or is designated based on actual interest/planning.
** LMOP does not have any information on candidate landfills in this state.
OPERATIONAL PROJECTS
CANDIDATE LANDFILLS*
State of the National LFG Industry (April 2010)
At least 519 operational projects in 46 states annually supplying:
13 billion kilowatt-hours of electricity and 100 billion cubic feet of LFG to direct-use applications
Estimated ‘10 Annual Environmental BenefitsCarbon sequestered annually by ~19,800,000 acres of pine or fir forests, orCO2 emissions from ~216,000,000 barrels of oil consumed, orAnnual greenhouse gas emissions from ~17,700,000 passenger vehicles
Estimated Annual Energy BenefitsPowering more than 940,000 homes and heating more than 722,000 homes
Operational Projects in Mississippi
Pecan Grove Landfill, Pass Christian –Direct use (2005)
5-mile pipeline sends 2,700 cfm to EI DuPont de Nemours & Co. to fuel boilersSaves DuPont facility >$1 million annually
Prairie Bluff Sanitary Landfill, Houston – Leachate evaporation (2009)
Uses 200 cfm to offset high leachate disposal costs
Candidate Landfills in MississippiBig River, LelandCentral, McNeillCity of Canton Clearview Environmental Control Facility, LakeGolden Triangle, StarkvilleLeflore County, GreenwoodLittle Dixie, RidgelandNortheast Mississippi, WalnutPine Belt, OvettPine Ridge, MeridianPlantation Oaks, SibleyThree Rivers, PontotocTunica County, Robinsonville
Many Untapped LFG Resources in Mississippi
Currently 13 candidate landfills in MS with a total gas generation potential of 6.5 billion cubic feet per year (~375 MMBtu/hr) OR total electric potential of 40 MW (~322 million kWh/yr)If projects were developed at all these landfills, the estimated
Annual Environmental Benefit = Carbon sequestered annually by ~335,000 acresof pine or fir forests OR annual greenhouse gas emissions from ~300,000 passenger vehicles,
ANDAnnual Energy Benefit = Powering 23,600 homes OR heating 42,000 homes per year
Many Untapped LFG Resources in Mississippi
(cont.)
6 landfills in MS with a gas collection system but no energy project
Potential of 5,100 MMBtu/day or 18 MW
16 landfills in MS without a gas collection system
Potential of 5,900 MMBtu/day or 21 MW
Diversity of Project TypesElectricity Generation
Internal Combustion Engine (range from 100 kW
to 3 MW)Gas Turbine
(range from 800 kW to 10.5 MW)
Microturbine (range from 30 kW
to 250 kW)
Diversity of Project TypesDirect Use of LFG
Direct-use projects are growing!Boiler applications – replace natural gas, coal, fuel oilDirect thermal (dryers, kilns)Natural gas pipeline injection (medium- & high-Btu)Ethanol productionGreenhouseInfrared heatersLeachate evaporationVehicle fuel (LNG, CNG)Glassblowing & potteryBlacksmithingHydroponicsAquaculture (fish farming)
Greenhouse Jackson County, NC
GlassblowingJackson County, NC
Infrared heater - Lorton, VA
Direct Use Case StudyJenkins Brick
Moody, ALStar Ridge Landfill supplies 600 scfm of LFG
Equivalent to 435 MMBtu per day Fuels brick kilns45 percent of Jenkins Brick’s energy needs
LMOP 2006 Project of the Year
Sited and built 6.5 miles from the landfill specifically to use the LFG as fuel
Enoree Landfill, Greer, SCSelling: electricity (to Duke Energy), RECs (to Duke Energy), and carbon credits (through Sterling Planet)Carbon credits played a defining role in project -verified by Voluntary Carbon StandardUsing Section 45 tax creditsCounty benefit: $300K/yr
Generated & sold 90,000 tonnes of Verified Emission Reductions in first 5 monthsExpect to generate 120,000+ tonnes in 2009
Enoree Landfill, Greer, SC (cont.)
(2) Caterpillar G3520 engines generate 3.2 MW -95% + on line time at full capacityBuilt power line to the utility, could not sell to local coop
Connected to 25 leachate cleanouts in addition to drilling 51 gas wellsAdvanced gas treatment system for siloxanes, water, and many non-methane hydrocarbons
LMOP 2008 Project of the Year
CHP Case Study
Jefferson City Landfill, Jefferson City, MO
Hot water & steam meet entire thermal demand of 2 prisonsSaves state 20-50% of annual $1.4 million electric/thermal bill
Local RPS in 2004 required Columbia Water & Light to generate or purchase electricity from renewable resourcesLFG piped 3.5 miles to new CHP plant at state correctional facility
LMOP 2009 Project of the Year
Typical Electric Project Components & Costs
3 MW, engine, 15-yr project:Total capital cost = ~$5.15 million
Gas compression & treatment, engine, & generator = ~$4.89 millionInterconnect equipment = ~$255,000*
Annual operation & maintenance cost = ~$526,000/year
*interconnect costs can vary widely
Typical Direct-Use Project Components & Costs
800 scfm, 5-mi pipeline, 15-yr project:Total capital cost = ~$2.5 million
Gas compression & treatment = ~$768,000Pipeline = ~$330,000/mile(Plus end-of-pipe combustion equipment retrofits, if needed)
Annual operation & maintenance cost = ~$129,000/year
Potential LFG Revenue
Potential Revenue Source Electric Direct-Use
Sale of electricity (2.5 – 7 cents/kWh) X
Sale of Renewable Energy Certificates (RECs) X
Premium pricing for renewables through RPS/RPG or voluntary green power markets X
Tax credits or incentives X
Clean Renewable Energy Bonds (CREBs) X
Sale of LFG ($4.00 – $6.00 per MMBtu) X
Greenhouse gas reduction credits X X
Energy cost savings X X
Jobs and Revenue Creation in MS
A typical 1 MW LFG electricity project is estimated to have the following economic & job creation benefits during the construction year:
Add more than $565,000 in new state and local project expenditures on local labor and the purchase of generators, installation materials, and auxiliary equipmentDirectly create ~2 jobs for the construction and installation of the equipmentRipple effect: increase the state-wide economic output by $1.47 million & employ ~9 people throughout the state & local economies
Jobs and Revenue Creation in MS (cont.)
A typical 370 scfm LFG direct-use project is estimated to have the following economic & job creation benefits during the construction year:
5-mile pipeline 10-mile pipelineNew state & local project expenditures $1.1 million + $2.0 million +
Direct installation jobs At least 7 At least 14
Ripple effect –economic output & employed people
$2.6 million & 21 people
$4.8 million & 40 people
LFG and RECsRenewable Energy Certificates (RECs)
Equivalent to 1 MWh of renewable energy generationFrom $5 to $50 per MWh (0.5 to 5 cents per kWh)
Companies looking to reduce their environmental footprint purchase RECs from utilities using LFG (2002-03)
Alcoa – 100% of electricity at 4 corporate locations from LFGDelphi Corporation – 100% of electricity at largest corporate office from LFGDuPont – 170 million kWh/yr from biomass & LFGPitney Bowes – 10% of electricity from wind & LFGStaples – 46 million kWh/yr of RECs, 90% from biomass & LFG
Federal Financial Incentives
State Energy Program$3.1 billion allocated under the American Recovery and Reinvestment Act to U.S. DOE to distribute to states Talk to your State Energy Office
Section 45 Production Tax Credit (PTC)Electricity generation – 1.1 cents/kWhPlaced in service by 12/31/1310-year window for creditsShort-term option to select a one time 30% investment tax credit (Section 48) or convert into a 30% cash grant
Other Financial IncentivesClean Renewable Energy Bonds (CREBs)
In lieu of interest, bond holders receive federal tax credits
Federal Renewable Energy Production Incentive (REPI)
Local/state government or non-profit electric co-op facilitiesOnline by 10/1/16Payment for first 10 years of operation
Many State grants, tax exemptions, and other funding mechanisms
www.epa.gov/lmop/publications-tools/funding-guide/index.html updated quarterly
Economic Development Incentives
Provide significant savings by utilizing LFG in place of potentially more expensive fossil fuels whose price is subject to market volatilityDevelop vacant properties on or adjacent to landfillsMississippi Energy Investment Loan Program
Mississippi IncentivesMS Energy Investment Loan Program (MS Development Authority)
Offers $15,000 to $300,000 loans at 3% below prime interest rate for designing, developing, or installing LFG recovery projectsEligible industries include manufacturers, warehouses, research and development facilities, retail, telecommunications, national or regional headquarters
LMOP Tools and ServicesRedesigned website in 2010 (epa.gov/lmop)Direct project assistanceTechnical and outreach publicationsProject and candidate landfill databaseNetwork of 900+ PartnersNewsletter and listservSupport for ribbon cuttings/ other PRPresentations at conferencesState training workshopsLMOP 14th Annual Conference, Project Expo & Partner Awards – January 18-20, 2011
Former EPA Administrator Stephen L. Johnson
Keynote Speaker 11th Annual LMOP Conference
Washington, DC
January 9, 2008
How Can We Work Together? Direct Project AssistanceAnalyze landfill resource – gas modelingIdentify potential matches – LMOP LocatorAssess landfill and end user facilities Look at project possibilities
Direct-use (boiler, heating, cooling, direct thermal)Combined Heat & Power (engine, turbine, microturbine)Electric (engine, turbine, microturbine)Alternative Fuels (medium- or high-Btu, LNG, CNG)
Initial feasibility analyses – LFGcost
For More Informationwww.epa.gov/lmop
Amy AlexanderERG
(contractor for EPA LMOP) 770.517.4448
e-mail: [email protected]
Victoria LudwigEPA LMOP Program Manager
202.343.9291e-mail: [email protected]