WHAT DRIVES INVESTMENT DECISIONS IN CHOOSING WASTE-TO-ENERGY CONVERSION TECHNOLOGIES John Baker, Alan Environmental George Voss, Sustainability Business.

A Template for Non-Recyclable Waste-to-Energy Systems Evaluation

What Drives Investment Decisions in choosing Waste-To-Energy Conversion Technologies

John Baker, Alan EnvironmentalGeorge Voss, Sustainability Business Management

Incineration;

Waste Heat From Incinerators Can Be Used to Provide Heat and Power (WHP)Drawbacks

ExpensiveRelatively InefficientEnvironmental Concerns

Waste to Energy Incudes Anaerobic Digestion;

Cogeneration Systems (CHP) Can Efficiently Convert Digester Gas to Electricity(~40%)&Heat(~50%)Digester Biogas CHP Power Generation Plant with Plug & Play Container Module, including Gas Conditioning & Treatment System

Waste to Syngas

Gasification Technologies convert a variety of waste into clean energy & commercial materials

Ability to Recover Recyclables UpfrontSustainability, environmental, economic and a philosophy of zero-waste-to-landfill drive considerationMunicipalities have goals to meetState mandatesEnvironmental groups fear WtE will reduce recyclingIncreases BTU value of remaining feedstockRecovers inert material that does not add to energy Beneficial Use of Waste and Marketability of ProductsAll WtE systems create residues Incinerator ash is mostly landfilled Digesters have sludge and wastewaterSludge can be composted and nutrients recovered from wastewaterGasifiers create either a powder-like ash can be used as soil or cement additive or vitrified ash (high temperature Plasma) can be used as construction materialsAll WtE projects must take in to account all residuals requiring disposal and the potential marketability of residuals that may be recycledNon-recyclable waste diversion rateImportant to clients that have Corporate mandate for Zero waste to landfillsState mandates and EPA waste management hierarchy has landfill ranked last Environmentalists favor highest diversion rates from landfillThe cost savings associated with diversion (equivalent to savings from avoiding tip fees) oftentimes drives the initial economics of waste-to-energy implementationsExperience and Financial Resources of CompanyManagement team important especially if the only offer on the table is a turnkey installation]Management team needs to have technical resources for on-going support of WtE that are soldWtE company needs to have financial resources to have guarantees and post performance bonds, etc.WtE company financials need to show they will continue to exist in order to support the technologyFacility Size (acres and height) and Design Flexibility, including Design Soundness, Based on feedstock (i.e., waste) tons(gallons)/day capacity, with fuel flexibility important in influencing economics Ability to fit seamlessly for on-site WtE operationsEasy to operate automatically and monitor remotelyNeeds to be safe and have safety approvals- like UL, CE, etc for local codes/regulationsFeasibility of obtaining all construction and operating permitsPolitical and environmentalist climatePublic/community relationsState and Federal Agency experience with permitting similar technologiesLocal regulatory supportAttainment vs. non-attainment considerations for air permitMore environmental permitting challenges are usually experienced in terms of length of approval process and technology review if hazardous wastes are utilized

Ownership Preference In some cases, clients prefer to own and operate Wte equipment and facilitiesIf a client wants to own a new technology, starting with a lease may be preferable so can gain on-site experience and confidence in eventually buying the technologyMost technologies need to have trained operatorsMaterial handling experience is requiredSome suppliers will only provide turnkey systems for concerns of inappropriate operations could cause system failuresPre-processing of Fuel MixDetermine if material handling/pre-processing is included in price/lease of equipmentVaries by technology- some take in waste as-is Some require shredding/sizingSome require RDF or pelletizing to certain size and dryness (e.g., 15% moisture)Some require additional small amounts of fossil fuel/catalysts, etc.Readiness and Reliability, Including Client ReferencesIs technology been proven with 3rd party engineering studies?Has the technology been commercially proven and meeting performance efficiencies, environmental and compliance permit requirements?Are plant tours available?Can delivery schedules be met or are there back-log issues?Risk AllocationTechnology insurable?Performance bond rating.Shared risk?Experience with solving problems at operating plants (e.g., retrofits, redesigns, etc)Capital, Operating, Financing, and Tip FeesProforma for 15-20 year operating life including labor, consumable materials, parasitic load factors, feedstock contracts, recycling contracts for residuals, ROI, Comparisons of existing options for waste disposalEnergy incentives, government grants, low interest lending programs for renewable energy projects can play an important role in initiating a waste-to-energy project

Standard Contractual Terms and ConditionsEvaluation of supplier contracts for turnkey, sale or lease optionsLegal reviewNon-performance criteriaThermal and Energy EfficiencyCompare energy output per volume/ton of waste among suppliers reviewedSome have capx higher for the same waste capacity but have higher energy production Utility NeedsSewer, water, electrical, fossil fuel needsNew construction required or existing on-siteContact Us