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1 Informational Workshop On Renewable Energy Presentation Before the Florida Public Services Commission Presented by Joseph R Treshler Covanta Energy,

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Presentation on theme: "1 Informational Workshop On Renewable Energy Presentation Before the Florida Public Services Commission Presented by Joseph R Treshler Covanta Energy,"— Presentation transcript:

1 1 Informational Workshop On Renewable Energy Presentation Before the Florida Public Services Commission Presented by Joseph R Treshler Covanta Energy, Inc. Undocketed Safe Waste Disposal and Clean Energy Solutions … For Generations To Come. January 19, 2007

2 2 Introduction Purpose Highlight the current contribution Waste to Energy makes to the States Renewable Energy Production Quantify the additional contribution Waste to Energy can make going forward Recommend actions that should be taken to assist further development of new Florida Based Renewable Energy Sources including Waste to Energy Presentation outline Background on Covanta Energy The role of Waste-to-Energy (WTE) as renewable resource in FL Comments and Recommendations

3 3 Total U.S. Electricity Generation U.S. Non-Hydro Renewable Generation 3,970,000 GWh The Role of Renewable Electricity Generation in the United States Source: US Department of Energy, Energy Information Administration 2004 Report Non-Hydro Renewable 2% 88,000 GWh 9% of electrical generation is renewable

4 4 Waste-to-Energy Generates 34% of the Nations Biomass Renewable Electricity is a leader in renewable generation 7,800 GWh produced from Covanta owned and operated facilities 31 Waste to Energy Facilities 3 Wood Waste Facilities 5 Biogas Facilities Source: US Department of Energy, Energy Information Administration 2004 Report Biomass 67% = Total U.S Biomass Renewable Generation Note: Waste to Energy energy value derived from biomass and non-biomass sources. Wood 62% Waste to Energy 34% Other BioMass 4% 60,000 GWh

5 5 Covanta Energy Corporation The 31 WTE facilities Covanta operates: Dispose of nearly 7% of nations waste Process about 15 million tons Produce about 1,200 megawatts of clean, renewable energy. In FL, Covanta operates: 4 WTE facilities: Pasco County, FL Hillsborough County, FL Lee County, FL Lake County, FL these facilities: Process over 1.25 million tons per year of MSW Generate about megawatts

6 6 The Power of WTE in Florida One ton of MSW (energy equivalent) One barrel of fossil fuel oil or 10 MCF of natural gas! Saves 630 lbs of CO2! WTE is a proven large source of FL renewable energy The MSW Floridians generate every year is the energy equivalent of 31.2 million barrels of oil. Currently 6.5 million tons (17,900 tons per day) of MSW can be processed annually by Floridas 12 WTE Facilities. This eliminates the need for 6.5 million barrels of oil or 65 million MCF of natural gas & the generation of over 2 million tons of CO MW of renewable electrical energy is generated on a daily basis by Floridas WTE Facilities This also saves annually over 8,125 acre feet of precious landfill space through volume reduction.

7 7 More Is Being Done… By 2010, Renewable Energy from FL WTE is planned to increase by 85 MW: Lee County20 MW Hillsborough County17 MW Palm Beach County 28 MW Pasco County20 MW Bringing to 591 MW the WTE Renewable Energy made available while processing less than 25% of the FL MSW being generated.

8 8 More Can Still Be Done… Over 18 million tons of raw MSW is still be landfilled every year in Florida. A significant number of highly developed areas of the State still heavily dependent on land filling raw MSW as their primary method of solid waste management. Orange County 1,820,638 TPY Duval County1,483,456 TPY Brevard County 704,476 TPY Volusia County 499,242 TPY Collier County 477,095 TPY Manatee County 343,095 TPY Seminole County 303,015 TPY Sarasota County 297,421 TPY Developing new WTE capacity to manage only half of the nearly 6 million tons of MSW available from these areas would increase the States Renewable Energy generation by approximately 186 MW while eliminating the need to import approximately 3 million barrels of oil each year. This will only be possible with the right incentives

9 9 Encouraging FL Renewables Current Situation 63% of Floridas generation capacity is fueled by oil and gas Yet the low rates and contracting structures that have been offered since the early 1990s for new WTE capacity have inhibited further development FL has no functional wholesale electricity markets to support WTE or other renewable energy development The Future 81% of FL capacity additions will be fueled by oil and gas Must encourage renewables including WTE New (and renewed) WTE contracted energy generation should be valued based on avoiding the most expensive fossil fuels Encourage the development of functional and liquid wholesale electricity and renewable credit trading markets Offer Long-Term contracts to secure financing Encourage/require IOU portfolio with FL generated renewable energy

10 10 FL Renewable SOC – Choice of Avoided Unit/Avoided Cost Avoided Unit/Avoided Cost Choice – Encourages Renewable Development Will encourage the development and commercialization of renewable technologies. Will provide incentives for development of capital intensive renewable energy generation projects Best matches the capital outlay/O&M profile to the various renewable technologies. Provide greater certainty of revenue streams for these capital intensive projects Allows low-cost financing Provides flexible choices that match the financial requirement of various types of renewable technologies Provides WTE-served communities fair energy pricing to efficiently address waste disposal issue. Will reduce reliance on fossil fuels including natural gas

11 11 FL SOC – Additional Concerns Threshold question: Do all operative provisions of proposed SOCs fully and fairly support utilization of existing FL renewable energy sources as intended by FS , and fully and fairly promote development and utilization of new in-state renewable energy sources as intended by FS and by the proposed FL DEP Energy Plan?

12 12 FL Renewable SOC – More Issues to be addressed Current SOC come with many issues Based on current QF standard offers that failed to attract new development in the past five years (at the least) Not clearly understood and do not meet the intent of FL Onerous terms and conditions, examples: Unreasonable availability and performance requirements Some appear to require QF status Projects undergo subjective evaluation criteria that might result in the rejection Payment terms and performance penalties that may totally eliminate capacity payments.

13 13 FL Renewable SOC - Our Recommendations The Key Issues Develop and make available now a State-wide Coal Avoided Cost Unit Provide for SOC Terms of at least 20 years Thorough SOC review to conform to Section Establish Renewable Generation Goals (25%) Encouraging Renewables requires paradigm Shift The old QF regime did not encourage new FL renewables in the past 5 years (at least) Repackaging the old regime will not encourage substantial FL renewable development

14 14 Additional Information

15 15 WTE Energy IS Renewable Energy MSW is sustainable resource for local power MSW is biomass. WTE efficiently converts energy value of MSW to electricity and/or steam WTE contributes to fuel diversity WTE facilities are located near power users, increasing cost efficiency. WTE avoids vehicle fuel consumption/emissions associated with increasingly distant transportation to landfills. WTE avoids landfill greenhouse gases and toxic emissions

16 16 Typical WTE Facility Process Inputs and Outputs MSW 2000 lb CO2: biogenic, nonbiogenic Fe/non-Fe Metals: 55 lbs Ash: 500 lb 20% Thermal Efficiency Power 550 kWh Flue Gases Water Air Lime Carbon Process Wastewater: Typically zero

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19 19 WTE: A Success Story Upgrading of the emissions control systems of large combustors to exceed the requirements of the Clean Air Act Section 129 standards is an impressive accomplishment. The completion of retrofits of the large combustion units enables us to continue to rely on municipal solid waste as a clean, reliable, renewable source of energy. With the capacity to handle approximately 15 percent of the waste generated in the US, these plants produce 2,800 megawatts of electricity with less environmental impact than almost any other source of electricity. -- letter to IWSA from Assistant Administrators Jeff Holmstead and Marianne Horinko, US EPA February 2003

20 20 Industry Overview of Waste-to-Energy US EPA -- WTE disposes of 13% of the nations waste 89 facilities 29 million tons per year 36 million people served 27 states generation capacity in excess of 2,700 MW 16 million MWhrs of renewable power generated annually

21 21 WTE: A Renewable Energy Component of Comprehensive Waste Management FL (+ 11 other states and Washington DC) define WTE and/or municipal solid waste as eligible for Renewable Portfolio Standards Efficiently recovers/exports over 500 KWhrs/per ton of MSW processed WTE is clean - Exceeds requirements of the Clean Air Act – US EPA Most advanced pollution controls of any energy generation source Reduces landfill requirements in excess of 90% Offsets landfill release of toxic emissions and greenhouse gases WTE and recycling are compatible: Recycling rate of WTE communities exceeds the national average by over 5%

22 22 Proven, Utility Grade Technology Exclusive North American licensee for Martin GmbH Reverse Acting Stoker Grate technology – successfully processed more refuse worldwide than any other system available,

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