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Lisa Lee Morgan, AIA, LEED-AP President + CEO Calor Energy.

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Presentation on theme: "Lisa Lee Morgan, AIA, LEED-AP President + CEO Calor Energy."— Presentation transcript:

1 Lisa Lee Morgan, AIA, LEED-AP President + CEO Calor Energy

2 The AD Process – “Basic”  Feedstocks  Digestion  Outputs CO2 CH4 LiquidsSolids Gas o o o o o o o Digestate

3 Key Revenues + Costs  Feedstocks  Digestion  Outputs CO2 CH4 LiquidsSolids Gas o o o o o o o Digestate $ Land $ $ Technology $ $ Land $ $ Technology $

4 First Cut Rule of Thumb Rule of $140 Revenue of $ / Ton of Waste Revenue of $ / Ton of Waste Revenue of $ / Megawatt-hr Revenue of $ / Megawatt-hr Revenue of $ / Ton Fertilizer Revenue of $ / Ton Fertilizer $140

5 Feedstock $$$ Feedstocks L T Contract with Organic Waste Producer Payment from Waste Producer Savings by Waste Producer

6 Community Viability Charlotte San Francisco

7 Feedstocks BTU Spectrum  Food Waste  Ag Waste  Animal Waste  WW Waste BTU ContentLOWHIGH Raw, unprocessed, undigestedProcessed, digested, excreted

8 Feedstocks Disposal Fees Entity TypeFeedstockDisposal Costs/T Energy Needs Dairy/Hay FarmDairy Waste, Crop Waste, Manure $30-40On site power; Truck fuel MunicipalHousehold food waste; household garbage $26-50Utility PPA Animal ProcessingAnimal FOG, parts, fluids$60-75On site power; Hot water Waste Water Treatment Biosolids 2%$30-50Bio-Dryer; On site power Food ProcessingPre-consumer food waste $45-60On site power; Hot water

9 Feedstocks Project Models PURISTS : Harvest Power – Investor-owned AD Facilities MIXED BAGGERS : Columbia Biogas – Community-owned AD Facilities  Designed to maximize gas quality and financial yield  Pre-consumer food waste only  No contaminants, paper, body wastes  Formula: 2/3 hi-cal food waste + 1/3 green waste  Vancouver: $65/Ton + $150/MWh + $20/Ton = $235  Designed to maximize community participation  Pre- and Post-consumer food waste  Formula: 1/3 food + 1/3 FOG, beer, milk + 1/3 green, grocery  Expensive pre- and post-treatment  Portland: $55/WTon + $70/MWh + $20/Fton = $145

10 Heat Exchanger Digestion Process - “Basic” Fluids Mixing Rods Digestion Reactor Biogas Solids Feedstock In Pretreat to Pulp Heated Pulp Gas Storage Digestate

11 Digestion $$$ Digestion Land Purchase or Option to Purchase Reliable Technology + EPC Selection Preliminary Engineering + Financial Analysis Tax Incentive CPA Opinion Regulatory Approvals + Permits

12 Model Example Tax Equity Investor 50% Cash 100% Tax Incentives 90% / 5% Owner Bal Sheet = Insurance Developer 5% Owner Project Manager Team Lead Municipal WWTF 5% / 95% Owner Electricity user Operations “NC Digester Group, LLC” Lender 50% Cash 15 5% secured EPC Engineering/Procurement/Contractor Utility: MWhHeat: MMbtuFertilizer: TonWaste: Fees

13 Production Example Feedstock In: FOG in per hour5.72tons/hr Wet Biosolids in per hour4.71tons/hr Residue for disposal7.63tons/hr Thermal Energy: AD-DRANCOs (2) Waste Heat0.0MMBtu/hr Gensets (2) Waste Heat25.0MMBtu/hr Total Waste Heat25.0MMBtu/hr Dryer operation17.7MMBtu/hr Heat losses1.0MMBtu/hr Excess thermal energy6.3MMBtu/hr Electric Energy: Energy input to each Genset42.1MMBtu/hr Heat Rate of Gensets8,530Btu/kWh Number of Gensets1Gens kWh operation - gross4,932kWh kWh Belt dryer575KWh kWh operation - net4,357kWh MWh produced - net4.357MWh WWTF Baseload1.357MWh Excess power to grid2.0MWh Alternative Energy: Compressed NG Potential9000GGE/day

14 Tax Incentives Project Cost Basis12,350,000 Federal Tax Credit1,235,000 NC Tax Credit Yr. 1864,500 MACRS Dep'n Yr 1 After Tax Value 821,275 (a)2,920,775 Year 1 Capital Outlay to 2015 Tax Incentives Return 24% Year 2-6 Tax Incentives NC Tax Credit Yrs 2-53,458,000 Tax Dep'n Yrs 2-6 After Tax Value 3,285,100 6,743,100 Total Return Years 1-6Σ(a)9,663,875 Capitay Outlay to 2015 Tax Incentives Return 78%

15 Output $$$ Outputs Gas>Electricity: Utility or On Site PPA Gas>CNG: Utility or Local Transport PPA RECs or RINs Contract Fertilizer/Compost Contract

16 Outputs 101 Biogas -> Electricity/CHP Gas Clean Up Biogas Storage Digester Electric Generator Power Grid Gas Fueled BTU/FT3 Boiler Gas Fueled Industrial Steam Users

17 Outputs 201 Biogas -> Transportation Fuels Gas Clean Up Biogas Storage Digester Natural Gas Pipeline BTU/FT3 Bottled Compressed NG (RNG) Compressor CNG Vehicles

18 Outputs 301 Digestate -> Fertilizers Nutrient-Rich Liquid Fertilizer Liquids Compost Rows Highly Enriched Organic Fertilizer Solid Dewater Digester Digestate Storage

19 Annual Cash Flow INCOME Disposal Fees for FOG50,000Tons/yr $ $ 3,000,000 Disposal Fees for Biosolids41,245Tons/yr $ $ 412,450 Heat to Dryer 155,052MMBtu/yr $ 3.50 $ 542,682 Electricity to WWT User MWh/yr $ $ 832,112 Electricity to Utility - avoided cost26280MWh/yr $ $ 1,445,400 Fertilizer/Compost Tons/yr15 $ 100,258 Annual Income $ 6,332,903 EXPENSE 15-year 5%155% loan $ 6,175,000 $ 586,000 Operation - Maint contract12mon $ 150,000 $ 1,800,000 Waste collection, transport12mon $ 150,000 $ 1,800,000 InsuranceLS $ 500,000 Taxes0.006rate $ 6,175,00037,050 $ 4,723,050 PROFIT $ 1,609,853 RETURN - ANNUAL13%

20 Investor/Lender Expectations FeedstocksDigestionOutputs L T Contract with Organic Waste Producer Land Purchase or Option to Purchase Gas>Electricity: Utility or On Site PPA Payment from Waste Producer Reliable Technology + EPC Selection Gas>CNG: Utility or Local Transport PPA Savings by Waste Producer Preliminary Engineering + Financial Analysis RECs or RINs Contract Tax Incentive CPA Opinion Fertilizer/Compost Contract Regulatory Approvals + Permits

21 Community Analysis Rule of $140 ? Maximize what ? Feedstocks? Technology ? Outputs ?

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