Should You be “IN”

on RINs?

Presented by: Adam Klaas, Unison SolutionsBrian Hannon, P.E., Moore+Bruggink

Outline

Overview

RIN Details

Drivers for RNG

Getting Started on Upgrading

Upgrading Technology

Delivery Methods

Case Studies

Questions

Definitions

CNG - Compressed Natural Gas

LNG - Liquified Natural Gas

RNG - Renewable Natural Gas (BioCNG)

GGE - Gasoline Gallon Equivalent, 114,000 BTU/Gal

DGE - Diesel Gallon Equivalent, 129,500 BTU/Gal

RIN - Renewable Identification Numbers, biogas that has been upgraded to renewable fuel

LCFS - Low Carbon Fuel Standard, transportation fuels that reduce CO2 emissions ($/MT, million tons CO2)

RIN Details

https://www.biocycle.net/2017/11/13/101-for-rins/

RIN Type DescriptionGHG Reduction

RequirementPrice

9/18/18

Cellulosic Biofuel (D3)

Municipal wastewater plants and landfill biogas qualify

(Cellulose, hemicellulose, or lignin)

60%$2.20/RIN$3.30/GGE

Advanced Biofuel (D5)

Produced from non-corn starch, renewable biomass

50%$0.365/RIN$0.55/GGE

Driving Factors for RNG

Current operations

Renewable fuel with a low carbon content

Why RNG as Vehicle Fuel?

Source: US Dept of Energy

Getting Started:

RIN Basic Information

A RIN credit is a serial number assigned to each gallon of renewable fuel as it is introduced into U.S. commerce

Federally mandated volumes are in place until 2022

Only biogas used as renewable transportation fuel can generate RINs

RIN Agents - similar to Carbon Credit Exchange Brokers

Federally Mandated RIN Volumes

https://www.epa.gov/renewable-fuel-standard-program/overview-renewable-fuel-standard

Why RNG as Vehicle Fuel?

Current Natural Gas Price: $2.90/MMBTU

Average CNG Price (US): $2.11/GGE

8.8GGE = 1MMBTU

Equals $18.57/MMBTU

RINS are above and beyond the sale price of the fuel

Current D3 RIN Price is $2.20/RIN ($3.30/GGE)

Each RIN is 77,000 Btu

This equates to approximately 1.5 RINS/GGE

This equals an additional $29.04 per MMBTU

Getting Started:

Biogas Upgrading Project

Cost Revenue

Getting Started:

Biogas Quality and testing

bi·o·gas, ˈbīōˌɡas/, noun, gaseous fuel, especially methane, produced by the fermentation of organic matter.

Methane, CH4

Carbon Dioxide, CO2

Nitrogen, N2

Oxygen, O2

Hydrogen Sulfide, H2S Moisture Particulates Siloxanes Volatile Organic Compounds

Biogas to Vehicle Fuel

bi·o·gas, ˈbīōˌɡas/, noun, gaseous fuel, especially methane, produced by the fermentation of organic matter.

Methane, CH4

Carbon Dioxide, CO2

Nitrogen, N2

Oxygen, O2

Hydrogen Sulfide, H2S Moisture Particulates Siloxanes Volatile Organic Compounds

CH4 CO2 N2 O2 H2O H2SO2 H2O H2S

Methane, CH4

88 - 98%

Fuel Quality Specification

Biogas Constituents Raw BiogasSAE J1616 CNG Fuel Quality Specification

Natural Gas Pipeline Fuel Quality*

Methane 50-80% 88% or greater

Wobbe Index 1,250 – 1,420 BTU/ft3 1,400 BTU/ft3 max

Higher Heating Value (HHV) 950-990 BTU/ft3

Carbon Dioxide (CO2) and Nitrogen (N2)

20-50% <2%

Oxygen (O2) 0-1% 6 ppm to 0.2%

Hydrogen Sulfide (H2S) <1,000 ppm ≤4 ppm ≤4 ppm

Water ContentPWDP 10°F below lowest

recorded temp3-7#/MMcf

Siloxanes and Volatile OrganicCompounds

<2,000 ppm ND (Silicon) ND to 1 ppm

Pressure 0-2 psig 3,000-3,600 psig 50 to 900+ psig

*Varies depending on the utility

Natural Gas Utilities Ex ample

PUBLIC SERVICE COMMISSION of WISCONSIN - AUGUST 2018

T ypical Technologies to upgrade biogas

to cng

Membrane

Pressure Swing Adsorbtion (PSA)

Water Scrubber

Amine Scrubber

Cyrogenic Separation

Membrane technology

Membrane separation: membrane allows CO2 pass while retaining CH4. For small to medium installations. Advantages:

Compact, Low Maintenance, Low Energy Demand, Easy Process Disadvantages:

H2S removal step needed, Membranes need replaced, lower CH4 yield than some technologies

Membrane technology

www.researchgate.net/figure/Flow-diagram-of-biogas-upgradation-using-membranes-

Small Scale

Systems_Membrane

Technology

Biogas Inlet Flow (scfm)

Fuel Production (GGE/day)

Fuel Production (DGE/day)

50 185 - 300 160 - 260

100 370 - 600 320 - 520

200 740 - 1,200 640 - 1,040

400 1,480 - 2,400 1,280 - 2,080

Pressure Swing Adsorbtion

Pressure Swing Adsorption or PSA: CO2 is separated using physical properties. Biogas is upgraded using adsorbing material such as activated carbon or zeolites, which absorb carbon dioxide.

For small to medium installations, although can be upsized to large

Advantages: More than 97% enrichment, low power demand, low emissions, can adsorb

both N2 and O2 (to certain extent)

Disadvantages: H2S removal step needed, tail gas needs treatment, relatively expensive

Pressure Swing Adsorbtion

www.researchgate.net/figure/Schematic-flow-sheet-for-upgrading-of-biogas-to-vehicle-fuel-standards-with-pressure_fig5_313812488

Water Scrubber

Water scrubbing: process based on physical absorption employing water as a solvent for dissolving CO2. The reason why absorption in water is employed is that solubility of CO2 in water is many times higher than solubility of CH4 in water.

For Medium to Large Applications

Advantages:

Easy to put in place, Removes both gases and particulates, high purity, good yield, simple technique, no special chemicals or equipment required, neutralization of corrosive gasses

Disadvantages:

Limitation of H2S adsorption, H2S can damage equipment, large water requirement – even with a regenerative process

Water Scrubber

www.researchgate.net/figure/Schematic-flow-sheet-for-water-absorption-with-recirculation-for-removal-of-carbon_fig2_313812488

Amine (Chemical) Scrubber

Chemical absorption is characterised by a physical absorption of the gaseous components in a scrubbing liquid followed by a chemical reaction between scrubbing liquid components and absorbed gas components within the liquid phase.

For medium to large installations.

Advantages: High recovery rate, high efficiency compared to water scrubbers

Disadvantages: Chemicals can be expensive, only removes one component per column, heat

needed for regeneration step

Amine (Chemical) Scrubber

www.researchgate.net/figure/Simplified-process-flow-diagram-of-a-chemical-amine-scrubber-for-biogas-upgrading-27_fig4_313812488

Cryogenic Separation

Cryogenic separation: successive refrigeration to produce liquid CO2 and liquified biomethane (GST technique) or anti-sublimation of CO2 to produce liquid CO2 and biomethane

For Large Applications

Advantages:

Can produce large quantities with high purity, easy scaling up, no chemicals used in process

Disadvantages:

High Energy consumption, quite a bit of equipment relative to other alternatives

Cryogenic Separation

ohioline.osu.edu/factsheet/AEX-653.2

Physcial absorption (organic solvents)

https://www.researchgate.net/figure/Flow-diagram-of-physical-absorption-using-organic-solvents_fig3_313812488

Methods to Deliver RNG

Digester or Landfill

CNG for Vehicles

Dedicated Pipeline

Virtual Pipeline

On Site Fueling Natural Gas Pipeline

Biogas Upgrading System

Michigan Illustrations of Biogas

Upgrading to CNG Quality

Many Landfills around state

Several WRRF’s in process of implementation

Present 2 studies and review high level economics

Case 1: WRRF w/ Anaerobic Digester

6.5 MGD Avg Daily Flow, 10 MGD Design flow

Currently running CHP unit with Biogas

Flaring approximately 60% of biogas

Study to look at optimized use of biogas Reviewed upgrading CHP Reviewed on-site bio-CNG use Reviewed bulk transfer

partnership with local bus fleet Reviewed Pipeline injection

Case 1: WRRF w/ Anaerobic Digester

Approximately 120,000-150,000 cuft/day biogas production Equipment

PSA and Membranes most viable at this size Capital

$1,100,000 stage 2 upgrading equipment $1,300,000 for injection station $500,000 for O2 removal skid $350,000 site prep and misc $360,000 larger gas bag +35% (GC, Mech, Elect., Earthwork, Controls) contractor construction costs +25% engineering, bonding, contingency

If bulk transfer instead of injection No injection station, no O2 removal (saves huge capital) $750,000 in bulk trailers and transfer station

Case 1: WRRF w/ Anaerobic Digester

O&M CHP maintenance (should be reduced since not on biogas) Upgrading skid O2 removal skid Compressors Injection station (maint and meter fees)

O&M (Bulk Transfer) Would reduce O2 skid and Injection Station but have trucking costs

Nat Gas Value: $55,000 RIN Value: $550,000

Don’t forget brokerage fee for RINS (15-25%)!! Increased cogen output on Natural Gas: +$120,000 from today

Case 1: WRRF w/ Anaerobic Digester

Summary and Paybacks

Summary Pipeline Bulk

Capital Cost $ 5,277,010$ 3,385,000$

Revenue $ / Year 801,000$ 781,000$

O&M Costs $ / Year (236,000)$ (353,660)$

Cash Flow $ / Year 565,000$ 427,340$

Simple Payback yrs 9.3 7.9

Advice: Find out pipeline requirements for O2 from utility Find out injection station costs from utility

Case 2: Municipal Owned Landfill

Accepts municipal waste

Currently sending offgas to a cogen unit

High Maintenance Costs and reduced uptime due to extreme H2S levels

Case 2: Municipal Owned Landfill

Approximately 1,000,000 cuft/day biogas production Equipment

More options, but reviewing PSA and Membranes Summary and Paybacks (very preliminary for feasibility)

Summary Current Upgrading

Capital Cost $ 18,871,000$

Revenue $ / Year 710,000$ 5,892,000$

O&M Costs $ / Year -$ (500,000)$

Cash Flow $ / Year 710,000$ 5,392,000$

Loan Payment $ / Year (400,000)$ (1,372,255)$

Cash Flow $ / Year 4,019,745$

Simple Payback Period years 4.7

Q & A

Biogas

Electricity, Heat, Fuel for Vehicles, Grid Injection

Thank you!

Contacts: Adam Klaas, Unison Solutions(563)585-0967Adam.klaas@unisonsolutions.com

Brian Hannon, P.E.. Moore+Bruggink(616)363-9801bhannon@mbce.com