A biomass/waste-to-energy facility for Kelly Lake/Tomslake ... · A biomass/waste-to-energy facility for Kelly Lake/Tomslake British Columbia, Canada July, 2012 ... our waste-to-energy
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Business Case
A biomass/waste-to-energy facility for Kelly Lake/Tomslake
The design process: ..................................................................................................................................................... 14
HEAT ENERGY FOR POTENTIAL RECOVERY AND POWER GENERATION ................................ 16
Building Envelope: ...................................................................................................................................................... 21
Certification and Registration: ................................................................................................................................... 22
CAPITAL COSTS ............................................................................................................... 23
METHODS OF IMPLEMENTATION: .......................... ERROR! BOOKMARK NOT DEFINED.
NEXT STEPS: .................................................................................................................... 24
APPENDIX A – FEED ELEMENTS ............................... ERROR! BOOKMARK NOT DEFINED.
FEED DELIVERABLES – DRAWINGS/IMAGES ............. ERROR! BOOKMARK NOT DEFINED.
FRONT END ENGINEERING DESIGN (FEED) DELIVERABLES (AS PER FEED AGREEMENT) ERROR!
BOOKMARK NOT DEFINED.
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Introduction
This business case illustrates Kelly Lake Métis Settlement Society’s plan to provide an economical and environmentally viable, funded and operated, biomasss/waste to energy facility to manage the Full Waste Stream Spectrum in alignment with the forward looking strategies KLMSS has for Kelly Lake and Tomslake and the region to supply power to the local BC Hydro grid and/or local industry.
The goal is to demonstrate how KLMSS, and people of the Kelly Lake area will benefit from the clean energy production from such a facility, reducing the cost of energy, while creating stable, long-term employment, and significant returns over the long term.
Using local resources to generate heat and energy is as old as gathering wood to burn in the fire to boil
water. Yet as humanity has grown more advanced and sophisticated, that hasn’t been necessary. Fuel in
the form of natural gas, coal and fuel oils has been readily available and relatively cheap. Regrettably,
this reliance on importing these resources has proved troublesome and many governments,
municipalities and industries are now looking for alternative, more strategically secure and cleaner
means of generating energy. One of those means that utilizes a locally produced, plentiful, sustainable
source of fuel is the Waste-to-Energy process.
Recovering energy from waste wood isn’t a new idea either, however it has evolved over the years from
the simple incineration of waste in an uncontrolled, environmentally unfriendly way, with very little
energy recovery, to highly controlled combustion of waste with energy recovery, materials recovery and
sophisticated air pollution control equipment insuring that emissions are well within EU and US limits.
This process took over 50 years of development and many improvements in design and technology, yet
our waste-to-energy methodology has now proven itself to be an environmentally friendly solution to
the disposal of municipal solid waste and the production of valuable and useful energy to save importing
increasingly costly energy.
Our intent is to Build, Co-Own & Operate this waste-to-energy facility with KLMSS, and future plants in
the region.
As directed by the British Columbia Provincial Government in its BC Energy Plan: A Vision for Clean
Energy Leadership, BC Hydro implements a Standing Offer Program to encourage the development of
small and clean energy projects throughout the Province of British Columbia. The program is a process
to purchase energy from small projects with a nameplate capacity greater than 0.05 megawatts but not
more than 15 megawatts (MW). In order to respond to BC Hydro’s Standing Offer Program call for
power, the new CGS is proposing to build a <15 megawatts biomass/waste-to-energy generation facility
on a pre-determined site near the Kelly Lake and Tomslake community which is approximately 120
kilometers Southeast of Hudson’s Hope, B.C.
The goals of the KLMSS are to develop economically viable energy production facilities using readily
available renewable biomass and potentially wood debris and operational waste from local agriculture
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and oil and gas operations as fuel sources at an acceptable cost per kilowatt hour ($/kWh), to provide
new and meaningful permanent employment, retain and expand existing employment (logging/forestry)
and provide revenues for both producers and sellers of the finished product. This biomass/waste to
power project will create urgently needed aboriginal employment opportunities and revenues, while
providing energy in an environmentally sound manner. In addition to helping to meet area power
demands, the projects will help reduce dependency on imported non-renewable energy sources.
The project is of significant importance to KLMSS in terms of its economic diversification and job
creation. It will also be important to the region as a whole in moving toward requiring increased
emphasis on renewable power and there is a projected shortage of power generation in an area of
increasing population and business growth – specifically from the oil and gas sector. Moreover, we
believe that this project will help enhance service reliability in the area.
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Background
The Kelly Lake Métis Settlement Society, besides being a recognized Aboriginal Community is a not- for-
profit Society registered in British Columbia under the Societies Act since April 26, 2002. Registration No.
S-44582. The Society is in good standing and continues to meet all annual filing requirements. An
economically-depressed area, Kelly Lake is seen as the only Métis community with historical roots in B.C.
having originated in the early 1800s. The membership is approximately 138 adults who live in the
settlement with their children.
Population Demographics
KLMSS represents Métis members as defined in the KLMSS bylaws and constitution. In February
2009 KLMSS membership totalled 138:
• 62 Men
• 76 Women
KLMSS continues to review socio-economic needs for the Métis members by identifying information
regarding the following areas:
1. Unemployment Rate: 36% (n=28)
2. Education Level
a. Elementary: 47% (n=30)
b. High School: 33% (n=30)
c. College: 17% (n=30)
d. University: 3% (n=30)
3. Percentage of KLMSS residents in Kelly Lake: 86% (n=28)
4. The average age of Kelly Lake members is: 35 (n=24)
KLMSS has focused on addressing governance and socio-economic issues facing the community and has
continued to identify economic opportunities through various relationships and joint ventures. KLMSS
has contracted services in mining, road upgrading, provision of dust control system, provision of camp
services, and underground piping in addition to authentic art. To diversify the local economy and create
employment opportunities that take advantage of technological advances and utilize resources that are
currently underutilized, KLMSS is proposing to build a biomass/waste-to-energy project utilizing Waste
to Energy Canada’s technology. The Kelly Lake/Tomslake waste to energy project will generate up to 15
MW of electricity – enough to power approximately 10,000 homes - using biomass from pine beetle
killed fibre, agriculture and wood residue from forestry operations as well as other sources from local oil
and gas operations that would otherwise be trucked long distances or disposed of in landfills. Meetings
with BC Forestry and oil & gas companies have provided provisional written and verbal approval of
feedstock supply.
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Historically, KLMSS continue to hold to their traditional visions of community renaissance and values.
Sustainable, efficient resource development requires KLMSS to create an environment in which the
whole community can thrive and prosper. The continued protection and utilization of aboriginal rights of
sovereignty and self-determination are key strategic elements to achieve a higher quality of life for the
community. These factors are integral to the business case for the facilty.
Project Initiation
At initiation BC Hydro implemented a Standing Offer Program to encourage the development of small
and clean energy projects throughout the Province of British Columbia. The program is a process to
purchase energy from small projects with a nameplate capacity greater than 0.05 megawatts (MW) but
not more than 15 MW. To help further diversify its economic base, KLMSS has already commissioned a
Feasibility Study that examined and recommended the possibility of developing up to a 15 MW electrical
generation facility on or near its traditional lands. Provisional approval from BC Hydro has been
provided.
The feasibility study included an assessment of available biomass fuel by KLMSS to satisfy the fuel
requirements of an initial 10 MW waste-to-energy power plant on a continuous basis, technology
assessment, site selection, economics viability given the foreseeable fuel and generation costs for
renewable energy generation. This effort has identified a potentially viable mostly biomass-fuelled
renewable energy project using WTEC’s proven Continuous Gasifier System technology and available
and proximate fuel supplies on a minimum 40 acres site on or near KLMSS traditional territory.
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Project Viability
Our assessment has shown that project viability is highly dependent upon resolution of two issues:
• Acceptable costs and interconnection agreement with BC Hydro High Voltage (HV) system, and
suitable site location close to BC Hydro substation
• Acceptable Purchase price for generated renewable power by BC Hydro.
Because of these factors, it is clear that in order to keep the transmission cost low, the power plant site
has to be close to BC Hydro grid. The ideal plant site should be no more than 15 km with BC Hydro
substation in Dawson Creek Substation (2552 DAW) to avoid connection fees. KLMSS has acquired a
power plant site of some 40 acres within the 15km distance from the grid as the current anticipated
purchase price as offered by BC Hydro for renewable power will probably not support the costs of about
15 km of HV transmission connection.
While almost all of North-Eastern British Columbia’s electricity is produced from coal, and/or fossil fuels,
the Province clearly has a sustainable supply of wood/biomass fuel to supply relatively small generating
facilities such as waste-to-energy facility the KLMSS is deploying.
Potential biomass fuel sources considered include:
• Wood waste from gas operation, gas transmission line clearings;
• Wood waste from sawmills and wood products manufacturing operations;
• Biomass from pine beetle killed fibre;
• Wood waste from logging operations;
• Forest management waste (such as fire prevention thinning, bio fuel); and,
• Local landowners, tree farming.
An annual estimated amount of 130,000 green tons of biomass fuel, some 360 metric tones per day, is
required to fuel a +/- 10 MW biomass to energy plant. The amount of biomass fuel within the KLMSS
traditional territory that the potential biomass sources including gas industries, forestry, plantation,
sawmill residues and pine beetle kill as well as from agriculture and other sources such as waste oil will
be sufficient to fuel the Power Plant for more than 20 years.
The local oil and gas industries have pledged support of fuel contributions to KLMSS in the amount of
15,000 m3 from each of their annual clearings.
Wood waste streams have been identified from most of the above potential sources that sell for $10 to
15 per ton, or will provide material free of charge for pick up. In addition, biomass material can be
sourced from landowners or tree farms for whole tree chipping operations. Another possibility for
supplying biomass to the proposed facilities is to collect logging residue. Waste residue (treetops, limbs,
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stumps and brush) comprises about 20% of the volume of trees now logged for the paper, wood, and
wood products industry. This wood waste is not only unsightly; it poses a forest fire threat. For power
production, the logging residue would be cut to transportable size, or chipped at the landing or trucked
to the generation project site for further hogging. The advantages of using logging residues are that it is
currently not utilized, relatively abundant, will clean-up logging cut areas, and produce “green and
clean” electrical power. Working to establish an aboriginal collection operation is a possibility. Annual
usage of a 10 MW plant would total 132,000 tons in a 50 km radius of the proposed plant site.
Another option to supply biomass fuel to the energy facility is for KLMSS to obtain it from local farmers
and landowners. Such farms and landowners have been contacted and fuel purchase arrangements are
being pursued to ensure long term fuel supply is established. Many landowners were contacted and
currently letters of intent with local landowners (more than 240 acres producing biomass fuel for $5 per
m3 or about $10 per ton) have been signed.
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Strategic alignment
The deployment of a privately designed, built and operated waste-to-energy facility in Kelly
Lake/Tomslake can help define the area’s forestry and oil and gas industries waste management
strategy when aligned within the overall strategy for the community.
By converting waste into thermal energy and electricity KLMSS can show a high degree of leadership for
meeting some of the energy needs of the local community and industry. Such a strategy will significantly
reduce GHG emissions from landfill, waste trucking, forestry waste and help reduce reliance on
increasingly expensive external energy sources.
The facility will create jobs in operations and educational components ensuring Kelly Lake Métis
Settlement Society’s workers when re-trained have the opportunity for employment and advancement.
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Summary
Our team together with the local stakeholders will ensure KLMSS benefit from advantages when WTEC
deploy, co-own and operate a waste-to-energy plant:
1 De-NOx Selective Non-Catalytic Reduction (SNCR) System
Power Train
1 Low Pressure Boiler & Super Heater
1 Steam Turbine & generator
Flue Gas Cleaning 1 Gasification train reaction tower
1 Gasification train Baghouse
1 Baghouse to stack
1 Ducting
1 ID Fan
1 Continuous Emission Monitoring (CEM) system
1 Stack 15 meters high or as required by local regulations
Ash Handling Equipment
1 Conveyors
1 Swan neck Conveyor
Control System
1 PGC control Panels
1 SOC control panel
1 Emission Control System Panel
1 ID fan control panel
1 Master SCADA control system with backup computer
1 Data logging computer
1 Remote monitoring computer
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Footprint
Given the inherent modular nature of the CGS and components, the proposed facility would occupy the
following footprint (subject to the findings of the Preliminary Engineering Design Study where
efficiencies may be found):
As per the overview for the 400 MTPD facility:
• Site footprint +/- 4,000 m2
• Building area +/- 3000 m2.
• Stack Height: 15 m (45 ft) or to local regulations.
NOTE: Each building is designed for the inherent characteristics of each site and location and is divided internally into receiving area, secondary treatment and power production.
Planning will need to be inclusive and ensure space is incorporated for any recycling and/or composting
areas.
Access:
Access to the facility will be restricted to employees and authorized personal only. With advanced notice
the facility will be available to host tours and an interested community will want to ‘see for themselves’.
Building Envelope:
Exterior circulation around the building is required.
Climate proofing will be integral to design.
Rainwater harvesting will be used where feasible.
Trucks will be weighed on an exterior weighbridge, enter one door, door will close, the truck will unload, the truck will exit the facility, door will close, truck weighed again to determine waste load.
A separate entry for hazardous materials will be used.
A negative pressure environment will be present within the facility, eliminating possible odour escaping from within the facility.
Strict bio security protocols will be maintained at all times and will part and parcel of the SOP, EMS and BMP’s.
Noise abatement measures will be used such as enclosing any turbines within a controlled
acoustic enclosure within the facility.
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Sensitive monitoring equipment will be housed in a separately enclosed air-conditioned building
within the facility.
The building will allow for boom crane access over the primary gasification chambers and
secondary oxidation chambers for maintenance (e.g. eaves > 8m and roof peak >12m).
Certification and Registration:
All processes and ancillary activities will conform and be registered as compliant under all applicable
Municipal, and Federal mandates.
Registered under ISO 14001 Environmental Management System (EMS) and ISO 14064 GHG
project accounting standard.
An in depth and thorough environmental and operation application will be delivered to all stakeholders.
Please see Appendix A for details.
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Project Cost Structure
Please note: the proposed Waste to Energy facility is designed around the long term, +30 years,
conversion of waste to useful thermal energy and in specific; the capture, use and conversion of waste
thermal energy into steam driven turbines/generators creating electricity.
The projects costs are capital intensive and by such; the agreed sale of power to the community at an
acceptable market value for +30 years is a good indicator; as such a +30 waste feedstock supply
agreement is required and a permitted and entitled site.
All estimates are “close to home” assumptions based on research, however a complete Waste Stream Characterisation (underway at the time of writing) and the next step of Front End Engineering Design (FEED) that produces working drawings and budgets will needed to be completed before a firm value can be delivered. The FEED illustrates exact specifications for CGS technology to be deployed. Budgeting $380,000 for the initial phase of FEED should be accounted for.
No allowance has been made for provincial, national or other funding, grants or subsidies, or for
steam/heat sales revenue at this stage. Use of waste sump oil has been factored.
Pro Forma Profit & Loss Statement (per year: 400 MTPD / 132,00 MTPA)