www.balticbiogasbus.eu1 oÜ mõnus minek „commercial possibilities of aardlapalu landfill...
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OÜ Mõnus Minek
„COMMERCIAL POSSIBILITIES OF AARDLAPALU LANDFILL GASSES”
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Table of contents
• Terms• Introduction• Purpose of the study• Methods• Results• Summary and recommendations
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Terms
• Biogas – gaseous fuel, derived from anaerobic fermentation, consists 50-70 per cent of methane (CH4), 30-40 per cent of carbon dioxide (CO2) and other components (N2, O2, NH4, H2S).
• Biomethane – technically purified biogas, comprises more than 97 per cent of methane (CH4)
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Introduction
• The current report “Commercial possibilities of Aardlapalu landfill gasses” has been created within the Baltic Sea Region Programme 2007-2013 project Baltic Biogas Bus. The report includes different alternative scenarios for the commercial usage possibilities of Aardlapalu landfill gasses.
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Purposes of the study
1) To obtain information about the possibilities of using Aardlapalu landfill gasses for motor fuel.2) To determine the production cost of motor-fuel-fit biogas (cost price of 1m3 and 1 kg of product)3) To seek alternative commercial usage possibilities of biogas4) To evaluate the economical feasibility of different commercial usage possibilities of landfill gasses.5) To study the technological solutions and costs for commercial usage of landfill gas (including transport of biogas to the city of Tartu).
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1. Biomethane input to (and construction of) the gas pipeline from Aardlapalu landfill to the nearest natural gas grid conjunction point of Eesti Gaas AS (5 km away). 2. The construction and installation of biomethane pipeline from Aardlapalu landfill up to Tartu Veevärk AS (Tähe 118) region, including the building of CNG station and the addition of compressors.3. The transport of biomethane with CNG cylinders from Aardlapalu landfill to Tartu Veevärk AS (Tähe 118), and the transport of biomethane with CNG cylinders to the nearest exit point of Eesti Gaas AS natural gas grid (5 km).4. The cost of equipment, needed to purify the landfill gas to consist of 97-98 per cent of methane (prerequisite of the grid manager)5. The construction cost of the CNG fuelling station and compressors near the region of Tartu Veevärk AS (Tähe 118).6. What is the estimated buying-in price for biomethane (appropriate by the natural gas standards) to be channelled into the EG natural gas grid within the next 10 years, and on which input conditions?
Price inquiries sent to enterprises
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Methods of the study• Table 1. List of incorporated enterprises of the Estonian
Gas Association, to whom the price inquiries were sent
1..6 – list of inquiries created by the authors of the studyx – forwarded inquiry
Jrk nr Ettevõte 1 2 3 4 5 61 Fortum Termest AS x x x2 Tarbegaas OÜ x x x3 Tehnovõrkude Ehituse OÜ x x x4 Termox AS x x x x5 Varmata AS x x x x6 ICT Projekt OÜ x x x x7 Palspluss OÜ x x x x8 GS Temo OÜ x x x x9 Anrebell OÜ x x x x
10 Tartal Grupp OÜ x x x x11 Elme Messer Gaas AS x x x12 Filter AS x x x13 EG Võrguteenus AS x x x x x x
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More inquiries were sent to:
1. Gaasienergia AS (all the same 6 inquiries)2. AS Magma:
• The construction of biomethane pipeline from Aardlapalu landfill up to the nearest exit point of Eesti Gaas AS natural gas grid
• The construction of landfill gas pipeline into the area of Tähe Street 135, Tartu.
3. AS Filter ja CHP Solutions Sales (heat & power production plant)4. Metener Oy (this company also had an offer for the transport of
purified landfill gas by CNG cylinders and an offer for the equipment of CNG station) and Xebec Adsorption Inc (purification of landfill gas regarding both companies)
5. Kompressorikeskus OÜ, Swagelok/Helsinki Valve & Fitting Oy, Kaeser Kompressorid and Alas-Kuul AS (the provision of working pressure of landfill gas)
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The offers were received from the following enterprises:
Regarding the inquiries, sent to 15 (13+2) companies, related to the costs of the construction of the gas pipeline, transport and additional equipment, only AS EG Võrguteenus replied in time which had been agreed on, beforehand. The offers comprising the cost of landfill gas purification technology equipment were received by Metener Oy and Xebec Adsorption Inc. Metener Oy also made an offer about the cost of the purified landfill gas transport with CNG cylinders and the equipment of CNG fuelling station. The offers for the cost of the heat and power production plant, made by AS Filter and CHP Solutions Sales, arrived also on time.
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Results according to scenarios
Scenarios:
I – The usage of Aardlapalu landfill gas as motor fuel
II – Directing the purified landfill gas into the natural gas grid
III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility
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I - The usage of Aardlapalu landfill gas as motor fuel
1.1. The landfill gas is purified in Aardlapalu, transported through pipeline to Tartu city along with fuelling equipment and sold as motor fuel at the gas station for 6,10 (without value added tax) EEK/m3
EXPENSES*Purification up to 95-98 per cent consistency of methane gas (washing with water): 4 075 939 EEK*Construction of gas utility line (3-6 bar) to the region of Tähe Street 135: 9 000 000 EEK*Fuelling device: 1 126 555 EEK*Compression station: 1 500 000 EEK*30 litres of water cost per 1 m3 purified landfill gas 0,75 EEK/m3*the cost of electricity per m3 of purified landfill gas 0,47 EEK/m3
*Labour costs 450 000 EEK/year, divided by 39 years 0,86 EEK/m3 The cost of 1 Nm3 (normal cubic metre) of purified landfill gas (i.e. Biomethane) divided by 39 years is 2,83 EEK/m3 or 4,10 EEK/kg
PROFITABILITYStarting from 7th year
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I - The usage of Aardlapalu landfill gas as motor fuel
1.2. The landfill gas is purified in Aardlapalu, transported through pipeline to Tartu city along with fuelling equipment and sold as motor fuel at the gas station for 6,10 (without value added tax) EEK/m3 with two-fold replacement of the devices
EXPENSES*Purification up to 95-98 per cent consistency of methane gas (washing with water): 4 075 939 EEK*Construction of gas utility line (3-6 bar) to the region of Tähe Street 135: 9 000 000 EEK*Fuelling device: 1 126 555 EEK*Compression station: 1 500 000 EEK The cost of 1 Nm3 (normal cubic metre) of purified landfill gas (i.e. Biomethane) divided by 39 years is 3,33 EEK/m3 or 4,83 EEK/kg
PROFITABILITYStarting from 7th year
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I - The usage of Aardlapalu landfill gas as motor fuel
1.3. Landfill gas is purified at Aardlapalu, transported via CNG cylinders to Tartu city and sold as motor fuel at the gas station for 6,10 EEK/m3 (without value added tax).
EXPENSES*Purification of landfill gas up to 95-98 per cent methane content (washing with water): 4 075 939 EEK*Transport trailers of CNG cylinders: 5 163 378 EEK*Fuelling device: 1 126 555 EEK*the cost of 30 liters of water per 1 Nm3 purified landfill gas, considering that 1 Nm3 of landfill gas is purified to meet the needs of natural gas: 0,75 EEK/m3*the cost of 0,5 kWh electricity per 1 Nm3 purified landfill gas: 0,47 EEK/m3
*Labour expenses 450 000 per year, which makes 0,86 EEK/m3 (when divided by 39 years)*Transport costs per 39 years is 0,13 EEK/m3 for biomethane and the semi-trailer is leased.*The cost of 1 Nm3 purified landfill gas per 39 years when transported with CNG cylinders is 2,71 EEK/m3 and 3,92 EEK/kg
PROFITABILITY*Since the 4th year
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I - The usage of Aardlapalu landfill gas as motor fuel
1.4. Landfill gas is purified at Aardlapalu, transported via CNG cylinders to Tartu city and sold as motor fuel at the gas station for 6,10 EEK/m3 (without value added tax). The equipment is replaced 2 times
EXPENSES
*Purification of landfill gas up to 95-98 per cent methane content (washing with water): 4 075 939 EEK*Transport trailers of CNG cylinders: 5 163 378 EEK*Fuelling device: 1 126 555 EEK•*The cost of 1 Nm3 purified landfill gas per 39 years when transported with CNG cylinders and with the replacement of equipment two times is 3,20 EEK/m3 and 4,64 EEK/kg
PROFITABILITY
Starting from the 4th year.
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I - The usage of Aardlapalu landfill gas as motor fuel
1.5. The landfill gas is purified at Aardlapalu, transported to Tartu City with CNG cylinders and sold at the gas station as motor fuel for 6,10 EEK/m3 (without value added tax), at the maximum expense of 4,69 EEK/m3 per 1Nm3 of landfill gas
EXPENSES
*Purification of landfill gas up to 95-98 per cent methane content (washing with water): 4 075 939 EEK*Transport trailers of CNG cylinders: 5 163 378 EEK*Fuelling device: 1 126 555 EEK
•The cost of 1 Nm3 of purified landfill gas per 39 years (at the maximum expense of 1 Nm3 landfill gas purification 4,69 EEK) is 5,19 EEK/m3 and 7,52 EEK/kg
PROFITABILITY
No profitability, except for the case, when the maximum expence for 1 Nm3 of biomethane is considered (on which case, the venture is profitable starting from the year 14)
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II – Directing the purified landfill gas into the natural gas grid2.1. Landfill gas is purified at Aardlapalu, transported to the Roiu c-category natural gas grid, with the selling price 6,10 EEK/m3
EXPENSES
*Purification of landfill gas up to the methane content 98 per cent (washing with water): 4 075 939 EEK *The construction of gas utility line and connecting with the natural gas grid: 4 300 000 EEK*Compression station: 1 100 000 EEK•the cost of 30 liters of water per 1 Nm3 purified landfill gas, considering that 1 Nm3 of landfill gas is purified to meet the needs of natural gas: 0,75 EEK/m3•the cost of 0,5 kWh electricity per 1 Nm3 purified landfill gas: 0,47 EEK/m3
*Labour expenses 450 000 per year, which makes 0,86 EEK/m3 (when divided by 39 years)* The cost of 1 Nm3 purified landfill gas with introduction to the natural gas grid divided by 39 years, is 2,53 EEK/m3 and 3,67 EEK/kg
PROFITABILITY
Starting from the 3rd year
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II - Directing the purified landfill gas into the natural gas grid2.1.1 The landfill gas is purified at Aardlapalu, transported to Roiu c-category natural gas grid (with the network fee 0,8 EEK/m3, established by the natural gas utility line manager ), selling price 6,10 EEK/m3
EXPENSES
•Purification of the landfill gas up to methane content 98 per cent (water washing): 4 075 939 EEK•Construction of the gas utility line and connecting with the natural gas grid: 4 300 000 EEK *Compression station: 1 100 000 EEK*the cost of 30 liters of water per 1 Nm3 purified landfill gas, considering that 1 Nm3 of landfill gas is purified to meet the needs of natural gas: 0,75 EEK/m3*the cost of 0,5 kWh electricity per 1 Nm3 purified landfill gas: 0,47 EEK/m3* Labour expenses 450 000 per year, which makes 0,86 EEK/m3 (when divided by 39 years)*Network fee of the natural gas utility line – 0,8 EEK/m3 The cost of 1 Nm3 purified landfill gas with introduction to the natural gas grid divided by 39 years, is 3,33 EEK/m3 and 4,83 EEK/kg
PROFITABILITY
Starting from the 5th year
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II - Directing the purified landfill gas into the natural gas grid2.2. The landfill gas is purified at Aardlapalu, transported via pipeline to the Roiu c-category natural gas grid, with the selling price 3,4 EEK/m3
EXPENSES
*Purification of the landfill gas up to methane content 98 per cent (water washing): 4 075 939 EEK•Construction of the gas utility line and connecting with the natural gas grid: 4 300 000 EEK *Compression station: 1 100 000 EEK*the cost of 30 liters of water per 1 Nm3 purified landfill gas, considering that 1 Nm3 of *landfill gas is purified to meet the needs of natural gas: 0,75 EEK/m3*the cost of 0,5 kWh electricity per 1 Nm3 purified landfill gas: 0,47 EEK/m3* Labour expenses 450 000 per year, which makes 0,86 EEK/m3 (when divided by 39 years) The cost of 1 Nm3 purified landfill gas with introduction to the natural gas grid divided by 39 years, is 2,53 EEK/m3 and 3,67 EEK/kg
FEASIBILITY
No profitability, because the costs are bigger than income throughout the whole period.
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III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility3.1. Heat and power produced in Tartu from Aardlapalu landfill gas, which heat and power are sold to the power and heat networks (according to the AS Filter offer)
EXPENSES
*Heat and power production plant AS GE JENBACHER gas engine JMS 208: 5 976 000 EEK
*PE gas utility line to the region of Tähe Street 135: 9 000 000 EEK*Kompressorjaam: 1 500 000 EEK*Labour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant 5 976 000 every 8 years), which comes down to 2,0 EEK per m3, when divided by 39 years.
The cost of 1 Nm3 unpurified landfill gas divided by 39 years 2,79 EEK/m3 ja 2,13 EEK/kg
FEASIBILITY
Starting from the 5th year
REVENUE:
*during the period of 39 years, income from electricity sale 39 195 621 EEK, heat sale 20 904 331 EEK
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III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility3.2 Electricity and heat is produced from Aardlapalu landfill gas (on the site), but only electricity can be sold to the network (according to the offer of AS Filter)
EXPENSES
*Heat and power production plant AS GE JENBACHER gas engine JMS 208: 5 976 000 EEK*Compression station: 300 000 EEK*Labour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant 5 976 000 every 8 years), which comes down to 2,0 EEK per m3, when divided by 39 years.
The cost of 1Nm3 of unpurified landfill gas, divided by 39 years is 2,30 EEK/m3 and 1,76 EEK/kg
FEASIBILITY
Starting from the 3rd year
REVENUE:
*39 195 621 EEK resulting from 39 years of electricity sale
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3.3. Electricity and heat is produced in Tartu from Aardlapalu landfill gas and only electricity is sold to the network (according to the offer made by AS Filter)
EXPENSES
*Heat and power production plant AS GE JENBACHER gas engine JMS 208: 5 976 000 EEK
•The construction of PE gas utility line near the Tähe Street 135 region: 9 000 000 EEK•Compression station: 1 500 000 EEKLabour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant every 8 years 5 976 000), which comes down to 2,0 EEK per m3, when divided by 39 years.
The cost of 1Nm3 unpurified landfill gas divided by 39 years is 2,79 EEK/m3 and 2,13 EEK/kg
PROFITABILITY
No profitability, because the costs surpass the income during all period.
REVENUE:
*39 195 621 EEK income from 39 years of electricity sale.
III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility
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III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility3.4. Heat and electricity is produced from Aardlapalu landfill gas in Tartu, which is sold to power and heat networks (according to the AS Baltic Marine Group offer)
EXPENSES
•Heat and power production plant GC 192 G5: 5 714 138, 32 EEK•PE gas utility line construction near the Tähe Street 135 area: 9 000 000 EEK•Compression station: 1 500 000 EEK
Labour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant every 8 years 5 714 138,32 EEK), which comes down to 1,95 EEK per m3, when divided by 39 years.
The cost of 1 Nm3 unpurified landfill gas divided by 39 years is 2,73 EEK/m3 and 2,08 EEK/kg
PROFITABILITY
Starting from the 5th year.
REVENUE
*during 39 years, income from electricity sale 39 195 621 EEK and from heat sale 20 904 331 EEK
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3.5. Electricity and heat is produced from Aardlapalu landfill gas (at Aardlapalu), but only electricity can be sold to the network (according to the offer of AS Baltic Marine Group)
EXPENSES
*Heat and power production plant GC 192 G5: 5 714 138, 32 EEK•Compression station: 300 000 EEK
•Labour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant every 8 years 5 714 138,32 EEK), which comes down to 1,95 EEK per m3, when divided by 39 years.
*The cost of unpurified 1Nm3 landfill gas divided by 39 years is 2,24 EEK/m3 and 1,71 EEK/kg
REVENUE
Starting from the 3rd year
INCOME:
* During the 39 years of selling electricity 39 195 621 EEK.
III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility
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III – Different possibilities for the commercial usage of Aardlapalu landfill gas and economic feasibility3.6. Heat and electricity is produced from the landfill gas of Aardlapalu in Tartu, and only the electricity is managed to be sold to the network (according to the offer of AS Baltic Marine Group)
EXPENSES*Heat and power production plant GC 192 G5: 5 714 138, 32 EEK•The construction of PE gas utility line near the area of Tähe Street 135: 9 000 000 EEK•Compression station: 1 500 000 EEK*Labour and running costs 450 000 EEK per year (additionally, the cost of a new heat and power plant every 8 years 5 714 138,32 EEK), which comes down to 1,95 EEK per m3, when divided by 39 years.
*The cost of unpurified 1Nm3 landfill gas divided by 39 years is 2,73 EEK/m3 and 2,08 EEK/kg
PROFITABILITY
No profitability, because costs surpass the income throughout the period of concern.
INCOME:
*39 years of electricity sale – 39 195 621 EEK
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Summary and recommendations
1) There is a need for clarification of the landfill gas amount to be produced in Aardlapalu landfill and/or for the harmonisation of the different estimation methods.
2) To obtain the calculated amounts of landfill gas, requires the construction of a modern purification system.
3) All costs are without possible reparations to the private land owners.
4) In the future, it should be considered, whether it would be useful to attach the biogas production system to the Tartu Veevärk sewage mud fermentation system.
5) Commercially, the most feasible venture would be the heat and power production plant scenario, where the electricity would be sold to the network and heat would be lost. The least profitable enterprise is to use biogas as motor fuel.
6) As an alternative, the construction of a gas station near Aardlapalu landfill should be considered.
7) Using biogas as motor fuel should be considered because of social (public health), environmental and of imagological benefits for the city.