A Look at the Economics of Biosolids

A Look at the Economics of Biosolids
A Look at the Economics of
Biosolids
Dave Parry, PhD, PEng, BCEE
January 2012
Impacts on Economics
Biomass Tipping
Fees
Biosolids Facility
Footprint
Value of Fertilizer
and Soil
Amendment
Value of Energy
(electricity, heat,
natural gas, vehicle
fuel)
Economics
of
Biosolids
Cost of Biosolids
Processing
Cost of
Sidestream
Treatment
The Economics of Biosolids Involves
Multiple Bottom-Line Objectives

Achieve High Economic Value –
provide revenue from resources with
low life cycle costs

Be Operator Friendly – provide
healthy and safe environment for
workers, support wastewater
treatment, be reliable and easy to
operate and maintain

Be Environmentally Sustainable –
produce green power, reduce
emissions, beneficially use
resources

Be Socially Acceptable – be a good
neighbor with acceptable aesthetics,
acoustics, and air quality
Economic
Operational
Environmental
Social
Biosolids Economics is Part of
Resource Recovery Center for Water,
Biosolids, Nutrients, and Energy
Solar and Wind
Fuel
Energy (Heat, Power)
Organic
Waste
Resource Supply
(fuel line)
Fertilizer &
Nutrients
Alias
Wastewater Treatment Plant
Reclaimed Water & Hydrothermal
Biosolids as a Resource
Sludge +
Organic Waste
Biogas
Land
Application
Amendment
Thickening
Dewatering
Anaerobic
Digestion
Soil
Amendment
Fertilizer
Drying
Char
Syngas
Char
Pyrolysis
Gasification
Ash
Dewatering
Incineration with
Energy Recovery
Biosolids Value
$500
Highest
biosolids
value
$400
$/Dry Ton of Biosolids
$300
Cost of Production
Biosolids Value
Net Cost
$200
$100
$0
‐$100
‐$200
Lowest
net cost
‐$300
‐$400
‐$500
Soil Amendment Fertilizer
Combustion
Gasification
Compost
Biosolids and Energy Plan
City of Bellingham, WA
Post Point Wastewater Treatment Plant
Solids Handling Process
Biosolids Alternatives
Digestion
Thickening
Thermo
Digestion
Dewatering
Drying
Gasification
Incineration
Lime
CHP
Drying
Thickening
Thermo
Digestion
Dewatering
Drying
Gasification
Incineration
Lime
CHP
Gasification
Thickening
Thermo
Digestion
Dewatering
Drying
Gasification
Incineration
Lime
CHP
Incineration
Thickening
Thermo
Digestion
Dewatering
Drying
Gasification
Incineration
Lime
CHP
Trucking
Gas
Heat
Electricity
Life Cycle Costs, Carbon Footprint and
Space Footprint Analysis
Projected Capital
Cost
Projected Total
O&M Cost
Carbon Dioxide
Footprint (tons
CO2e/yr)
Space Footprint
(ft2)
Incineration with
Power/Heat Recovery
$32,000,000
$920,000
-700
3,500
Digestion/CHP
$32,000,000
$1,120,000
-1800
22,200
Digestion/Drying/CHP
$38,000,000
$1,300,000
265
23,700
Gasification
$36,000,000
$1,308,000
2,100
5,000
Alternative
VitAG Plant 3-D Interior
Finished Product
Bioenergy Center with Multiple Waste
Feedstocks and Products Tipping fees for waste
receiving is key to
economic viability
Organic Waste (Food
Waste, FOG, Manure)
Biogas
Syngas
Digestion
Biomass
(Wood Waste)
Biochar
Biosolids
Pyrolysis
Dewatering
Syngas
Char
Drying
Gasification
Numerous Biochar Benefits





Soil amendment like Terra
preta (dark earth)
Attracts and holds
moisture, nutrients
(nitrogen and
phosphorous)
Immense surface area
provides secure habitat for
microorganisms
Enhances crop yield
Enriches soil & protects
water
Microscopic view
of biochar surface
Integrated Solutions Has a Significant
Impact on Economics
Food Waste
Disposer
Wastewater Treatment
Food
Waste
Biogas
Biosolids
Anaerobic Digestion
Final Solids
Separation
Materials Recycling
Facility Preliminary Solids
Separation
Amendment
Options for Organic
Waste Management
Compost
Composting Facility
Landfill
Biogas
Cost Comparison of Alternatives
3000
Landfill
Compost
WWTP/Sewers
WWTP/Hauled
Mixed MRF
2720
2500
Normalized Value
2000
1860
1650
1500
1000
1030
698
500
426
860 936
900
593
585
674
723
517
214
0
Capital Cost
(1,000s of dollars)
O&M Cost
(1,000s of dollars/yr)
Present Worth
(10,000s of dollars)
Digestion is a Key Component of
Biosolids Economics
60
40
20
Size
Energy
0
Mesophilic
Anaerobic
-20
-40
Thermophilic
Anaerobic or
Thermal Hydrolysis
Aerobic
-60
AT Aerobic
-80
Aerobic = Energy Consumer
Anaerobic = Energy Producer
Biogas from Anaerobic Digestion
impacts Biosolids Economics
Natural Gas
Pipeline
CO2
Removal
Compressor
CNG Fueled
Vehicles
CHP
Biogas
Treatment
Sludge +
Organic Waste
Heat
Biogas
Digestion
Gas Turbine
Drying
Fuel Cell
Electricity
Biogas Value is Dependent on End Use
40
$ 34/GJ
Gasoline
Gasoline
Assumptions:
20
Gasoline @ $4/gallon
CNG @ $1.85/GGE
Electricity @ $0.10/kWh
CHP @ 35% electric efficiency
CHP @ 40% heat efficiency
Boiler @ 85% efficiency
$/GJ
30
CNG
CNG (Vehicle
(Vehicle Fuel)
Fuel)
CHP
CHP
10
Engine
Engine (Power)
(Power)
Boiler
Boiler (Heat)
(Heat)
Biomethane
Biomethane
$16/GJ
$13/GJ
$10/GJ
$7/GJ
$5/GJ
Flare
Flare
Biomethane Production
South Treatment Plant,
King County, WA
Biomethane is sold to Puget Sound Energy
and fed into natural gas pipeline
Encina WPCF
Biosolids Drying and Biogas Fueled Cogeneration
Four 750 kW Engine-Driven Generators,
Rotary Drum Dryer
Encina Water Pollution Control Facility
Encina Wastewater Authority, Carlsbad, CA
Consider Economics of Entire System
Related to Biosolids
Comprehensive Biogas Treatment and
Cogeneration System
Replaced 200 KW Phosphoric Acid Fuel
Cell with two 800 kW Internal Combustion
Engine-Driven Generators
Columbia Blvd Wastewater
Treatment Plant, Portland, Oregon
Cogeneration Reduced the Purchased
Electricity at the Columbia Blvd WWTP
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Ju
n05
Oc
t-0
5
Fe
b06
Ju
n06
Oc
t-0
Fe 6
b07
Ju
n07
Oc
t-0
Fe 7
b08
Ju
n08
Oc
t-0
Fe 8
b09
Ju
n09
Purchased Electricity, kWh
3,000,000
Adding Grease to Anaerobic Digesters
Increased Biogas and Decreased Biosolids
Production
The City of Riverside, CA saved $1.3 million in one year in
reduced natural gas requirements by feeding their digesters about
33,000 gallons per day of grease. A reduction in biosolids
production of about 25 percent was an additional benefit.
Integrated Wastewater and Solid Waste
Treatment
Des Moines Wastewater
Treatment Plant, Des Moines, IA
Hauled organic wastes account for 40% of the feed
to the anaerobic digesters. Revenue from tipping
fees, selling biogas. Savings on electricity.
Co-Digestion Revenues and Costs
Des Moines Example: Revenue of $2.6 million from processing 190
cubic meters of hauled waste and selling 950,000 cubic meters of
biogas to a neighboring industry
Energy Self-Sufficiency through Organic
Waste Management
East Bay Municipal District,
East San Francisco Bay Area
Organic waste recycling,
anaerobic digestion. FOG,
high strength waste deliveries,
both liquid and solids.
EBMUD Power Produced as a
Percent of Power Demand
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
Food to Fuel Demonstration
Natural Gas
Pipeline
CO2
Removal
Compressor
Biogas
Treatment
Biogas
Food Waste
Digestion
CNG Fueled
Vehicles
Economic Sensitivity to Tipping Fee
Profitable Waste Receiving, Digestion,
Composting, and Biogas Fueled CHP
Roppen Westtirol by thoni
Dry Thermophilic
Anaerobic Digestion
Biogas fueled CHP
Thermophilic Anaerobic Digestion Pilot
Plant for Grocery Store Food Waste
From Solid Waste to Renewable CNG
CR&R Anaerobic Digestion Facility, Perris, CA
Summary




Some of the cost of biosolids processing can be
recovered from the revenue of selling the
recovered resources of biosolids, energy, and
nutrients.
A combination of high tipping fees, recovered
energy value, and biosolids end product value
are necessary to cover the costs of biosolids
processing.
An integrated approach is key to achieving
solutions that meet multiple objectives
Technological advances are driving down the
cost of anaerobic digestion and increasing its
performance
Questions and Answers
Dave Parry
425.519.8322
ParryDL@cdmsmith.com
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