Biomethane for Energy and Fuel

Tags: WMI, WPRT, Fuel Cell Energy, FCEL, Air Products, Waste Management fleet, APD, Westport Innovations, LNAGF.PK, Linde, WPRT, RPS, FCEL, LCFS, WMI, GGE, LNG, USDA, HMC, APD
25 Jun 9:32am
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OK. I admit it. I am writing this article from a Summit about cow poop. No, this isn’t a joke to get 8-year olds rolling on the floor with laughter. This is serious.

I am reporting from the inaugural National Biomethane Summit, in Sacramento, California, where over 300 attendees including elected officials, government agencies, farmers, ranchers, landfill owners, facility owners and operators, technology leaders, researchers, regional planners, and carbon trading experts.

Biomethane is renewable natural gas because it is from biological sources. In some areas, biomethane is called renewable gas. Biomethane is a low carbon fuel – CH4. John Boesel, President of CALSTART, calls biomethane “Our lowest carbon fuel.” Just like the fossil fuel version of natural gas, biomethane can be converted into electricity or fuel.

Making money from meadow muffins is helping dairy farmers stay in business. Among the Western United Dairymen, 18 projects that capture biomethane from manure are generating 4.425 MW of electricity. Hilarides Dairy also converts enough biomethane into fuel to power two of its heavy-duty and five pick-up trucks. Michael Marsh, CEO of the Western United Dairymen quipped, “This smells like an opportunity.”

Dallas Tonsager, Undersecretary, U.S. Department of Agriculture (USDA), is a former dairyman who sees big economic opportunity in methane from manure. Since 2003, USDA has helped 121 projects with co-funding and/or loan guarantees. These projects have generated 449 GW hours/year of electricity, reducing emissions 384,664 metric tons of CO2e and displacing 8 million gallons of oil.

The 121 projects include WI 24, PA 18, CA 14, NY 14, and VT 7. There are opportunities in every state. USDA is encouraging the growth of biomethane for energy and fuel. This is definitely a “shovel ready” opportunity to create green jobs.

Across the nation, ranchers, farmers, landfill operators, and all that generate agricultural waste, forest residue, and municipal waste can increasingly become energy independent. Through anaerobic digestion much of their biological waste can be converted into biogas which can run electrical generators, turbines, or fuel cells to generate electricity. Biogas can also be converted to cleaner biomethane for cleaner electricity and renewable fuel. These operations can generate their own electricity and fuel their own vehicles. Increasingly, excess electricity and fuel can be sold as added revenue streams.

A growing number of our nation’s buses, refuse trucks, delivery vans, airport and port equipment has been converted from diesel to natural gas. Michael Gallagher, CEO of Westport Innovations (WPRT), has already sold 20,000 engines for such applications. He estimates that 20 percent of our nation’s diesel vehicles could be running on biomethane produced in the United States.

Nations like Russia and Iran that control the largest reserves of natural gas may not like this trend of making our own natural gas, but if we want energy independence then we need to follow W.C. Field’s advice, “Take the bull by the tail and face the situation.”

Before our growing population with its output of waste puts us hip deep in this slop, we want to do something useful like make money converting all this waste into energy and fuel. Currently, as the waste decomposes, a greenhouse gas twenty times more destructive than carbon dioxide – methane – goes into the stratosphere, putting our future in a pressure cooker. The whole thing stinks.

There is a climate payoff as well as help with energy independence. California with its Low Carbon Fuel Standard (LCFS) has put teams of scientists to work calculating well-to-wheels, or in this case waste-to-wheels, lifecycle emissions using the newly developed GREET 1.8 model. Biomethane has 4 times less lifecycle emissions than gasoline in the LCFS analysis. Because biomethane avoids release of the destructive greenhouse gas, biomethane into an internal combustion engine vehicle shows fewer emissions than electricity into a far more efficient electric vehicle.

In transportation, we will see the growing use of renewable electricity powering everything from city light-rail to city cars. We will also see the growing use of biomethane powering buses and the vehicles used by the biomethane producers. In Orange Country, California, where thousands of electric vehicles are used, there are also several hundred refuse trucks and public transit buses using biomethane from the nearby Bowerman Landfill where biogas is converted into liquid natural gas (LNG).

The Orange County Sanitation District is bringing online a combined heat and power plant developed by Air Products (APD) and Fuel Cell Energy (FCEL) that converts municipal waste into electricity, heat, and hydrogen fuel. In the county, hydrogen vehicles are in use by city fleets such as Santa Ana, the University of California, Irvine, the South Coast Air Quality Management District, and even individuals that drive Honda (HMC) Clarities and GM Fuel Cell Equinoxes. This breakthrough innovation results in record toilet-to-tank efficiency. Orange County Register Article

Texas, of course, thinks bigger than California. In Dallas, the McCommas Bluff Landfill will achieve 95 percent methane recovery from 30 million tons of waste. Output will scale from 35,000 gasoline gallon equivalents (GGE) per day to 122,500 GGE. Using a novel leachate recirculation process for early capture of biomethane would shrink the landfill growth by 3 feet per day, adding years of life to the landfill.

Summit attendees had mixed reactions about the idea of using biomethane as a vehicle fuel instead of the more common approach of making electricity by running biogas in large ICE gensets. Renewable electricity is in big demand as utilities across the nation struggle to meet renewable portfolio standards (RPS). Natural gas prices, however, are down 70 percent from their peak, making biomethane for fuel a losing proposition unless there is government funding or carbon credits to sell at a significant price.

But new ICE gensets increasingly cannot be permitted. Regulators have greatly tightened standards on emission of health damaging criteria pollutants and greenhouse gases. In California, air quality regulations are forcing farmers, landfill, and waste operators to spend more on clean-up of biogas. Turbines, fuel cells, and conversion to fuel are becoming more promising options. Regulators are also helping with selective co-funding of some projects.

Biofuels have gathered significant opposition in much of the world. Biomethane has avoided the food for fuels controversy associated with ethanol from corn and biodiesel from soy and palm oil. Biomethane is normally processed from waste. Biomethane has over four times the energy production than corn ethanol from an acre of land. Clean Fleet Biofuels Reports

These challenges are also opportunities for Waste Management Inc (WMI). Of their 370 landfills, 33 percent already produce methane for energy, the rest flare the gas due to economics or regulatory difficulty in using ICE gensets to produce electricity. About 1,000 of Waste Management’s fleet of trucks run on either LNG or CNG creating the opportunity to produce their own fuel. 2,500 trucks run on diesel with WMI plans to hybridize.

Waste Management landfills contain significant organic waste which is suited for anaerobic digestion. WMI also captures significant waste that is lignin which is appropriate for its waste-to-energy plants. In the long-term it may be economical to convert the lignin to biofuel in a gasification process.

Can biomethane scale to a size that will impact United States needs for energy and fuel? Yes. Sweden has been an early leader in using biomethane. Over half of their natural gas for transportation vehicles such as buses and cars comes from biomethane sources such as municipal waste and agricultural waste. Biomethane is part of Sweden’s strategy to be petroleum free.

In 1970, 77 percent of Sweden’s energy came from oil, but by 2003 that figure had fallen to 32 percent. In 2006, about 40 million cubic meters of renewable biomethane, “enough to support 1,000 buses and refuse trucks and 9,000 light duty vehicles.” In Sweden, light-duty vehicles cost an average of 70 percent of the cost of a petrol fueled vehicle. The opposite occurs in the United States, with the Honda Civic CNG being the only available CNG passenger car.

Biomethane is also important to Sweden being energy independent. Russia has famously flexed its political muscle by temporarily cutting-off the natural gas pipeline supply that is critical to Europe’s energy and heating. Sweden already has 230 biomethane plants build including 138 from sewage waste water and 60 from landfills. Some Swedish dairy farmers are making more money from manure than from milk.

A decade from now, cost effective large-scale plants have the potential to produce multiple outputs include electricity, heat, natural gas transportation fuel, algal fuel utilizing CO2, biofuels from lignin, biomaterials, and fertilizer. Production could be accelerated if cap-and-trade carbon credits are produced.

This potential is part of the reason that Summit attendance is double what was expected and that this became an international summit with delegates from Sweden, UK, Spain, Canada and other countries. We do not need to dispose ever increasing quantities of waste. We do not need bigger landfills. The vision is a zero-waste society where anything no longer used is converted into something valuable, be it recycled paper, building materials, electricity, heat, fuel, etc.

We can achieve energy independence and avoid a climate crisis with a portfolio of solutions leading us to a near zero-emission future. Yes, the Prius, solar power, and eating tofu make a difference. Energy efficient buildings, transportation, and sustainable living make bigger differences. Now, we must put on our boots and roll-up our sleeves and give a whole new meaning to the mantra “reduce, reuse, and recycle.”

By John Addison. John Addison publishes the Clean Fleet Report and speaks at conferences. He is the author of the new book - Save Gas, Save the Planet - now selling at Amazon and other booksellers.

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Cleantech Blog was founded by Neal Dikeman, and all our columnists are experts in their fields. Some of them are available for media interviews and quotes, speaking engagements and consulting. You can find biographies, areas of expertise and contact information for the columnists who have agreed to be available for comments below. Contributing Columnists: * Neal Dikeman, Founder Cleantech Blog, Partner at Jane Capital Partners * Richard Stuebi, BP Fellow for Energy and Environmental Advancement, Cleveland Foundation * Heather Rae, President, Brae Consulting – Sustainability marketing expert * John Addison, Author of Clean Fleet Report, Director, California Hydrogen Business Council * Dr. Peter Beadle, CEO GreenJobs.com, former BP Solar exec Guest Contributors: * Joel Makower, World Leading Sustainability Advocate, Founder Clean Edge * Felix Kramer, Founder, CalCars.org * Nick Bruse, General Manager Clean Technology AustralAsia * Anne-Marie Fleming, President, Investor Ideas, and publisher of leading renewable energy stock web site * Mark Bitterman, Editor, Superconductor Week * Gerry Woolf, Editor, BEST Magazine We also welcome contact from PR firms looking to connect with green, sustainable, and cleantech bloggers. Neal Dikeman: I founded Cleantech Blog in 2005. I am a merchant banker and co-founder of Jane Capital Partners LLC, where I head the energy and environmental practice, and prior to that worked in venture capital, private equity and investment banking in the tech and energy sectors. We have co-founded four emrging startups in cleantech and IT (in superconductors, fuel cells, RF, and carbon credits) since the tech wreck, and advise the technology and venture investment arms of three multi-nationals. In all of it, I have been lucky enough to work with some amazing colleagues, bosses, and partners. Besides Cleantech Blog, I am a contributing editor of AltEnergyStocks.com, and contributing author to Inside Greentech. Along with our own, the blogs I regularly read include Jim Fraser's The Energy Blog, Rob Day's CleantechVC, Tyler Hamilton's Clean Break, Joel Makower's Two Steps Forward, and Inside Greentech. My areas of expertise are always a work in process, but I have been quoted, cited, or interviewed on energy, alternative energy, and cleantech issues by numerous online and print publications including Red Herring, Energy Intelligence, Time.com, Bloomberg, San Francisco Chronicle, Forbes.com, Ethical Investor, Wall Street Reporter, and FT.com among others, on topics ranging from: cleantech, solar, ethanol, blogging, technology commercialization, corporate venture investment, energy prices and policy, technology transfer, carbon trading, and renewable and alternative energy. Feel free to contact me at dikeman@janecapital.com. Mr. Richard T. Stuebi Richard Stuebi has nearly 20 years of experience as an executive, entrepreneur and consultant in the energy industry, with most of the past decade focused on advanced energy technologies. He is currently serving as the BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation, one of the largest community foundations in the US with over $1.6 Billion in assets. He works with various public and private sector stakeholders to promote commercial activity in advanced energy in the Cleveland area. Mr. Stuebi has authored numerous articles that have appeared in such leading industry periodicals as The Electricity Journal and Public Utilities Fortnightly, and has presented at numerous major energy conferences. He is a contributing columnist to Cleantech Blog, writing on alternative energy issues, news and events. Prior to joining the Foundation, Richard founded NextWave Energy, a professional firm focused on capitalizing upon new business opportunities stemming from innovative energy technologies. As President of NextWave Energy, he assisted several emerging and established private-sector clients in various aspects of business development, including strategy and capital formation. Previously, Richard was a senior vice president at Louis Dreyfus, the global commodity trading firm and was a management consultant in the energy practice of McKinsey & Co. Richard earned degrees in economics from the Massachusetts Institute of Technology and Stanford University. His areas of expertise include: Economics in alternative and renewable energy, energy policy, trade, and development. Cleantech finance and technology strategy. You can contact him at rts@nextwave-energy.com. Ms. Heather Rae Heather is a green marketing expert and a long-time advocate of green technology and sustainable business. Through her consultancy Brae Consulting, Heather has worked for energy companies, cleantech startups, and nonprofits (she is currently working with a home energy efficiency program of the Maine Governor's office). Her previous corporate marketing experience includes Xcel Energy (demand-side management and green power) and Qwest Communications. A hands on expert - Heather has practiced what she preached. She is certified in high performance residential building (Green Advantage®) and has served as co-director of Colorado's Interfaith Power & Light. Readers of Cleantech Blog will know that Heather converted a retired school bus into the Brae Bio Bus, a recreational vehicle running on biodiesel (B100) with solar panels for auxiliary power, and recently drove it across the country blogging the experiences in finding biodiesel in different parts of the US. Having reached her destination at Maine Home Performance, a program of the Maine Governor's Office where Heather is helping design programs to certify and link Maine contractors with homeowners who want to "go green", Heather is now tackling the conversion of an 1880s Maine farmhouse into an energy efficiency and green showcase. Heather graduated from Wesleyan University and is a contributing columnist to Cleantech Blog writing on green and sustainable products and marketing from the consumer's point of view. Her areas of expertise include: Green marketing programs and strategies, grass roots green and sustainable programs for consumers, using green technologies in the home. You can contact her at heather.rae@braeconsulting.com Mr. John Addison John is an accomplished writer, speaker, and expert in technology marketing and strategy. He is one of the IT converts that are driving the cleantech industry. Since 1992, his marketing consultancy OPTIMARK, Inc. has provided educational programs, market intelligence, market development and partner development for technology and government leaders. A believer in cleantech's potential to change the world for the better, John is the Publisher of the Clean Fleet Report and serves on the Board of the California Hydrogen Business Council. He is a contributing columnist to Cleantech Blog. He is the author of the book Revenue Rocket on channel marketing in technology, and the upcoming book Save Gas, Save the Planet on what we as individuals can do to help save the planet. Earlier in his career John was an area channel manager for Sun Microsystems. For three years, he led a sales team to 300% annual growth in 15 states, increasing revenue from $4 to $110 million. He has taught courses about marketing and innovation at U.C. Davis and U.C. Santa Cruz Extension. He is a popular speaker in the Americas, Europe and Asia. You can find more of his speeches and articles on his websites Clean Fleet Report and Revenue Rocket. His areas of expertise include: Technology marketing and marketing strategy, channel marketing, fuel cells and the hydrogen economy, alternative fueled fleets, and California's energy tech corridor. You can contact him at johnaddison1@gmail.com. Dr. Peter Beadle Peter is the owner and CEO of GreenJobs.com. He is an is an experienced technology executive and an expert on a wide range of green and energy technologies, including photovoltaics, fuel processing, fuel cells, and oil & gas technologies. Green Jobs is one of the few dedicated job sites for the renewables and cleantech industry. They put out the online Green Directory, as well as a weekly newsletter on People News in cleantech. Peter is a contributing columnist to Cleantech Blog writing on renewable energy news and events. Peter holds a PhD in Physical Chemistry, and previously served President of BP Solar's North American division. Prior to that he held a number of positions in R&D and technology management within British Petroleum. His areas of expertise include: Solar, fuel cells, oil & gas, renewable energy job market You can contact him at Peter@greenjobs.com.