Municipal Waste Treatment Provision and Funding: Use of Anaerobic Digestion to Process Organic Fraction of MSW – Appraisal of Technical and Financial Performance SLR Consulting Limited Final Report September 2008 SLR Consulting Fife Council i Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 CONTENTS 1.0 2.0 3.0 4.0 5.0 6.0 INTRODUCTION AND WASTE POLICY / REGULATORY REGIME ........................... 1 1.1 Project Background .......................................................................................... 1 1.2 Project Objectives and Methodology .............................................................. 1 1.3 Policy and Regulatory Regime in Scotland..................................................... 2 1.4 Scottish Government Waste Position ............................................................. 2 1.5 UK Government Waste Policy .......................................................................... 5 1.6 SEPA Guidance on Thermal Treatment 2008 .................................................. 6 1.7 Regulatory Regime for end use of Digestate .................................................. 6 PROJECT BASELINE (WASTE PROJECTIONS AND PLANT CAPACITY) ............. 11 2.1 Baseline Waste Data (waste arisings, composition, infrastructure, end markets)........................................................................................................... 11 2.2 Plant Feedstock Projections .......................................................................... 13 2.3 Plant Feedstock and BMW Projections ......................................................... 14 2.4 Existing Infrastructure and Material End Markets ........................................ 16 2.5 Outline Plant Specification............................................................................. 21 SHORTLISTING OF AD TECHNOLOGY PROVIDERS ............................................. 22 3.1 Methodology ................................................................................................... 22 3.2 Stage 1 Screening ........................................................................................... 23 3.3 Stage 2 Screening ........................................................................................... 24 SOFT MARKET TESTING ......................................................................................... 31 4.1 Overview of Process....................................................................................... 31 4.2 Technology Risk Assessment ....................................................................... 40 4.3 AD Technology Provider Shortlist (Residual Waste) ................................... 42 4.4 Additional Option: AD processing of source-separated biowaste .............. 42 FINANCIAL APPRAISAL .......................................................................................... 48 5.1 Cost Data Provided by Technology Providers .............................................. 48 5.2 Project Development Costs Summary .......................................................... 49 5.3 Project Revenue .............................................................................................. 51 5.4 Net Operating Cost ......................................................................................... 52 PROJECT FINDINGS ................................................................................................ 54 6.1 Summary ......................................................................................................... 54 6.2 Conclusions and Recommendations ............................................................ 58 APPENDICES: Appendix A: Long list of AD technology providers Appendix B: Stage 2 Screening Questionnaire Appendix C: Stage 2 Screening Responses Appendix D: Stage 3 ‘Soft Market Testing’ Responses Appendix E: Technical Overview of AD Technology Appendix F: Technology Summary Sheets Appendix G: Technology Performance Parameters and Risk Profile Appendix H: Composting Position Paper SEPA, September 2004 Appendix I: Overview of ROCs and CCL Regime SLR Consulting Fife Council 1 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.00010 September 2008 1.0 INTRODUCTION AND WASTE POLICY / REGULATORY REGIME 1.1 Project Background SLR Consulting Limited (SLR) was commissioned by Fife Council, to provide a review of possible future options for the provision of municipal waste processing capacity in Fife, including available funding mechanisms. In particular, Fife Council is seeking an evaluation of the potential technical and financial benefits from the application of Anaerobic Digestion (AD) to treat the residual fraction of Municipal Solid Waste (MSW). While the study focuses on the application of AD to the processing of residual MSW, SLR’s scope of works was extended to include a review of technologies suitable for AD processing of sourcesegregated biowaste; this is included as Section 4.4. Fife Council (the Council) has made significant progress in recent years in increasing the rate of MSW recycling (reported by SEPA as just under 30% in 2005/06), through a combination of bring site infrastructure, improved Civic Amenity site network and the establishment of kerbside collection services for garden waste, paper and other recyclates. The Council has also developed composting operations of collected green waste, at its Lochhead Landfill. As a result of these investments, Fife’s recycling rates are projected to increase to around 41% by 2008/09, with a subsequent aspirational target of 47% by 2010/11. However, little or no improvement is expected beyond this latter date, and in order to meet its waste diversion obligations under the government’s Landfill Allowance Scheme (LAS), Fife Council will need to provide residual waste processing capacity for the County by 2010/11, in order to comply with its statutory LAS obligations and avoid the potential risk of year-on-year increasing financial penalties1 imposed by central government. The chief aim of this review was to evaluate the merits of AD as a technology that is potentially capable of providing a relatively low cost and modular solution that is suited to the processing of the organic fraction of residual waste and able to assist the Council meet its LAS obligations from 2010/11 onwards. The Council projects that by 2012/13, it will require sufficient processing capacity to annually divert around 38,000 tonnes of biodegradable municipal solid waste (BMW) away from landfill, with subsequent significant annual increases on this figure required to assist the Council meet Fife’s annually reducing BMW landfill allowances to 2019/20. 1.2 Project Objectives and Methodology SLR’s main project objective was to identify and technically and financially assess the available AD options that will best enable Fife Council meet its obligations under the Landfill Allowance Scheme (Scotland) Regulations 2005 to at least the year 2015. From a technical perspective, the task was to shortlist a minimum of three technologies (or technology providers) that are capable of meeting the Council’s requirements and to provide a risk assessment and appraisal of market interest associated with each technology option. The appraisal also includes a commercial evaluation of the shortlisted technologies, to assess the financial performance of each, particularly with respect to gross capital and operating costs, net unit cost, based on costs provided by the technology provider; possible funding mechanisms and options were also considered. The outcome of the study is intended to provide Fife Council with a current and informed view about the use of mechanical and biological treatment (MBT) – with AD processing of the 1 The Scottish Government is currently reviewing the proposed LAS penalty regime and it may not be implemented as originally set out (i.e. £150 / tonne of BMW to landfill in excess of LAS allowance). SLR Consulting Fife Council 2 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 organic fraction - for residual municipal waste processing, the key technology providers currently in the market that can meet Fife’s objectives and requirements, and also about the technical and financial risks of using these to develop residual waste processing infrastructure and capacity in Fife over the next 3-12 years to 2019/20. 1.3 Policy and Regulatory Regime in Scotland The development of MBT/AD capacity in Scotland for processing of mixed residual municipal waste must take account of the following key areas of policy and regulation: Scottish Government Waste Position (Zero Waste Strategy) and long-term targets for Recycling, EfW and Landfill; UK Government position re. landfill tax escalator and Renewables Obligation (RO); SEPA 2008 guidance with respect to Thermal Treatment efficiency; and Regime for diversion and recovery of stabilised organic fraction through application to land for restoration and ecological improvement purposes. Each of these four issues is described briefly in the following sections: 1.4 Scottish Government Waste Position 1.4.1 Revised targets and National Waste Plan Update In an announcement to the Scottish Parliament on 24th January 2008, the Scottish Government’s Cabinet Secretary for Rural Affairs and the Environment proposed changes to Scotland’s municipal waste management strategy2. The proposals amount to a significant movement from the government’s previous position; significant enough to require a change in delivery strategies for Scottish Local Authorities and will be subject to a forthcoming consultation. The proposals revise the current targets set within the National Waste Plan (2003) for the management of municipal waste. The proposals announced were for higher long-term recycling rates for municipal waste and a regional 25% cap on the use of energy-from-waste (EfW) for processing municipal waste. This cap would include anaerobic digestion, ‘where it is used to process mixed waste’ and the current government opinion is that it may also include other processes that treat mixed/residual MSW. The Scottish Government targets also included a reduction in the overall amount of MSW that should be disposed to landfill to 5% of arisings by 2020. The specific targets proposed by government for Municipal Waste in Scotland are included in Table 1-1. The minister’s announcement specified that the target for 70% recycling in 2025 should currently be viewed as aspirational. Table 1-1 SG Proposals for MSW Management (Jan 2008) - % of MSW arisings by weight Year 2010 Recycle/Compost EfW (residual) 2 2013 40% 4% 2020 50% 14% 2025 60% 25% 70%* 25% The full text of the Cabinet Secretary’s speech can be found at: http://www.scottish.parliament.uk/business/officialReports/meetingsParliament/or-08/sor0124-02.htm#Col5492 SLR Consulting Fife Council 3 Organic Municipal Waste Processing by AD: Appraisal Year 2010 MSW to Landfill SLR Ref: 405.0689.00010 September 2008 2013 56% 2020 36% 2025 15% 5% * Aspirational target Source: Scottish Government website As part of the January 2008 announcement, the government also announced that the government commitment to support the OBC’s submitted as part of the Lanarkshire partnership and for the Edinburgh, Lothian and Borders partnership procurement projects would be revoked given that the projected recycling and high levels of residual treatment are not consistent with the revised recycling targets and the 25% cap. 1.4.2 Funding Changes Under the previous 3 year government spending period, the Strategic Waste Fund (SWF) provided support to Scottish local authorities for: The introduction and expansion of kerbside collection schemes for dry recyclables and garden wastes; Implementation of education and awareness programmes; Upgrading of HWRC sites; and Additional staff resources (to support the introduction of the above measures). The SWF was a specific grant scheme established by the previous Scottish Executive for the implementation of the National Waste Strategy with a priority towards the establishment of kerbside and HWRC collection and meeting the Landfill Directive targets for the reduction of BMW landfilled. After an application process, the SWF was awarded as an annual payment ring-fenced to be applied to specific waste management projects within the council. Awards were made for capital and revenue funding over and above the ‘Business as Usual’ option of continuing to pay landfill costs for the disposal of the recovered material (including the increasing levels of landfill tax in the BaU option). In the spending review for 2008-11, new government announced that the SWF would be one of a number of specific grants no longer to be awarded. The services already allocated support through the SWF (as bulleted above) would instead be supported via the local government settlement, however this funding would not be ring-fenced, either to specific projects, or to the authority’s waste management budget. The government also announced the Zero Waste Fund (ZWF), set up to support the administration’s aspiration of Zero Waste. The fund will amount to £41.1 million in 2008/09, £54.4 million in 2009/10 and £58.7 million in 2010/11. The initial aim is for the ZWF to be allocated to: 3 Support to markets for recycled products, waste education and awareness, community recycling, waste prevention and commercial and industrial waste funding. This is likely to be mainly through funding for delivery bodies such as WRAP, Remade Scotland, Scottish Waste Awareness group and CRNS3. CRNS Community Recycling Network Scotland SLR Consulting Fife Council 4 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Support for recycling and composting infrastructure, including anaerobic-digestion plants that treat source-segregated organic waste, high-efficiency energy-from-waste plants, and other facilities that divert waste from landfill and have high environmental performance. Funding is expected to focus firstly on assisting schemes that can increase diversion from landfill over the 3 year term of the current spending period. This is likely to include food waste. Two working groups have been established by the SG to progress decisions on the future application and allocation of the ZWF. These are: Zero Waste Fund Working Group. This discussion group has been set up as a forum for discussion between the SG and CoSLA; Zero Waste Think Tank. The Think Tank has been set up to discuss the technical priorities and allocation of the fund. Members of this group have been individually invited with reference to their technical knowledge. The members have been asked to be representative of their experience and knowledge rather than the organisations that they are affiliated with. In addition, the group have the remit to co-opt additional members if expert knowledge is needed to inform their discussions. The current Scottish Government administration does not agree with the concept of PFI / PPP financing for large scale infrastructure. Details of an alternative arrangement, ‘Scottish Futures Trust’ (SFT) were published in May 2008. The arrangements are designed to feed up to an additional £150M a year into public sector infrastructure development4. 1.4.3 Governance of the revised targets The method by which the Scottish Government will ensure governance of the revised targets and of the revised National Waste Plan for Scotland is currently unclear. In essence however, this is likely to be through the new Concordat, defining ‘a new relationship between the Scottish Government and local government, based on mutual respect and partnership’. This underpins the funding to LAs from central government. Through this, each council will produce a Single Outcome Agreement (SOA) which will detail how authorities will play their part in meeting each of 15 National Outcomes and against 45 national Indicators. The only waste indicator that is directly referenced in these is Indicator 39: ‘Reduce to 1.32 million tonnes waste sent to landfill by 2010’. In the SOA each LA must identify Local outcomes and indicators and it is through these that it is assumed that recycling targets will be managed. As SOA development is currently only at draft stage, precise details are still emerging. In his January announcement, the Cabinet Secretary stated that the 25% cap on EfW / residual treatment will be managed through the national planning framework and revised guidance from SEPA on the use of energy from waste. Again, precise details of how this will be structured and the definition of ‘regional’ in the cap are still to be finalised. The definition of recycling / composting that counts towards local and national targets is likely to develop over time. It is intended that this definition will be clarified by the publication of the National Waste Plan. While Fife is intending to meet its short term targets (41%-47%) through the recycling of materials collected separately at kerbside, bring centres and HWRC, 4 Taking Forward the Scottish Futures Trust. http://www.scotland.gov.uk/Publications/2008/05/19155435/0 SLR Consulting Fife Council 5 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 in the longer term, higher targets are likely to be met through further treatment of residual waste. It is also expected that digestate resulting from AD (if used) of residual waste and ash resulting from thermal treatment of residual waste (where it is used as a secondary aggregate), will count towards the recycling targets. 1.5 UK Government Waste Policy 1.5.1 Landfill tax escalator In the March 2007 Budget, the Treasury announced an increase to the annual Landfill Tax escalator to £8 per tonne from 2008/9 to 20010/11 for active waste. The resulting tax for this waste therefore increased to £32 per tonne from 1st April 2008 and will rise to £48 from 1st April 2010. Any subsequent increases after 2010/11 are yet to be announced, although it is anticipated that further increases are likely. The 2007 Budget also included an increase in the rate of tax applied to inert waste, to £2.50 per tonne from 1st April 2008. 1.5.2 Reform of Renewables Obligation (RO) The proposed reform by the UK government of the Renewables Obligation (RO)5 is intended to promote the implementation of more renewable energy production technologies through a financial incentive regime based on the payment of variable ROCs, depending on technology type (refer Table 1.2). The proposed “banding“ of technologies under the reformed RO allocates the highest payment rate (double ROCs per MWh of electricity produced) to a range of ‘emerging’ technologies, including AD. It is anticipated that the reformed RO regime will commence from 1st April 2009. The current monetary value of ‘one ROC’ is around £53/MWh6 electrical. Under the reformed RO, the UK government is committed to maintaining the regime in place until 2035 at least, or beyond. Additionally, developer risk is mitigated through the ‘grandfathering’ approach which protects existing projects from future changes in the ROCs allocation regime. While the ROCs value may rise or fall, the government has also put in place a number of other measures to control price volatility. Table 1-2 Proposed Technology ‘banding’ under Reformed RO (1ST April 2009) Band Technologies Level of Support ROCs/MWh Established Landfill gas 0.25 Established Sewage gas, co-firing on non-energy crop (regular) biomass 0.5 Reference Onshore wind; hydro-electric; co-firing of energy crops; EfW with CHP; geopressure; other not specified. 1.0 Post –demonstration Offshore wind; dedicated regular biomass 1.5 Emerging technologies Wave; tidal-stream; advanced conversion technologies (gasification, pyrolysis and anaerobic digestion); dedicated biomass burning energy crops (with or without CHP); dedicated regular biomass with CHP; solar photovoltaics; geothermal, tidal, microgeneration. Source: Government response to renewable obligation January 2008 2.0 5 The ‘reformed RO’ regime is expected to be implemented from 1 st April 2009 6 ROC values vary and are recorded at www.eroc.co.uk The average ROC value to July 2008 was £47/MWh; the long-term value will vary and may reduce as more ROCs are produced. SLR Consulting Fife Council 6 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 While the reformed RO has still to be issued, the contents have been widely consulted upon by government and are known. It is therefore anticipated that electricity generated by AD (using either source-segregated biomass or residual waste, as the feedstock) will attract payment of 2 ROCs per MWh of electricity generated until 2035 at least. While the value of the ROCs may alter with time, the allocation to a particular project, once delivered, is fixed in the long-term under the RO’s ‘grandfathering’ regime. 1.6 SEPA Guidance on Thermal Treatment 2008 SEPA’s 2008 published guidance on Thermal Treatment updates the 2004 guidance, to take account of the new Scottish Government Policy on Waste. SEPA intends the “Thermal Treatment Guidelines 2008” to apply to all thermal treatment plants using MSW and/or C&I waste as feedstock and includes the following technologies: Incineration Gasification Pyrolysis Plasma Systems Anaerobic Digestion The practical implications of these Guidelines will be that, other than in exceptional circumstances, thermal treatment plants handling waste should: take only residual waste after segregation; be part of an integrated network of recycling and composting and other waste management facilities; and recover and use the energy derived from waste efficiently. It is SEPA’s view that well designed and operated thermal treatment plants can achieve in excess of 60% energy recovery efficiency when they are sited in appropriate circumstances and generate both electricity and heat through a CHP plant and / or district heating (or other end uses of heat). The plant energy efficiency must be addressed at the planning application stage in order to determine whether or not the location is acceptable in terms of land use planning. NOTE: the energy efficiency of the plant is a material consideration at the planning consent consideration stage. Accordingly, at the planning application stage, information in the form of a “Heat Plan” should be provided in order to demonstrate that maximum energy recovery is being achieved and to confirm compliance with these Guidelines. 1.7 Regulatory Regime for end use of Digestate 1.7.1 PAS 100 / PAS 110 Standards A summary of the key differences in approach for PAS 110 (compared with PAS 100) are: PAS 110 covers both liquid and solid products arising from the digestion process; PAS 110 uses a broader set of performance parameters and proposes some alterations to the PAS 100 upper limits used on some of the existing parameters; and PAS 110 proposes a prescriptive regime of process management and monitoring to achieve and maintain PAS 110 certification of the output products; this regime SLR Consulting Fife Council 7 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 includes: detailed record keeping, process monitoring, HACCP planning, QMS management, sampling and validation testing, and end-product labelling. PAS 100 is reported to have operated successfully since its first introduction; the timeframe for completion and introduction of PAS 110 remains uncertain and publication of the final approved Specification is unlikely before mid-2009 at the earliest In any event neither the current PAS 100 nor the future PAS 110 Standard, are likely to apply to the output from processing of the organic fraction of mixed residual municipal waste. 1.7.2 Scottish Government Guidance on Diversion and Recovery Scottish Government published guidance7 2007 sets out four possible types of composting activity and end-use, i.e. 1) Composting of mixed waste with intention to landfill (including as daily cover). The main purpose of this activity is to stabilise the mixed waste, so that there is a lower weight of BMW sent to landfill. 2) Mixed waste composted with the intention that the resulting ‘biowaste’ is recovered through use in licensed land restoration, including on closed landfill sites or another use that is judged to be recovery. 3) Composting of separately collected green/kitchen waste in a process without PAS 100 certification. 4) Composting of separately collected green/kitchen waste with PAS 100 certification. The published guidance also clarifies the terms diversion and recovery, with respect to waste management activities. In particular, the following two questions are considered: 1. When is waste diverted from landfill for the purpose of the landfill allowance scheme ?; and 2. When is waste recovered and so no longer subject to waste controls ? Typically, waste is diverted first, with diversion occurring later. For example, a batch of paper is diverted when it is sent to the reprocessor for recycling, but is only fully recovered when it has completed its process. In the case of compost (or digestate), there may be a significant time lag between the initial diversion (to the process) and the subsequent recovery (by the process) – while material is processed, matured and stored, prior to end-use. It should be noted that both diversion and recovery can be reversed in cases where the material is ultimately discarded (e.g. due to contamination or lack of end-use markets). The published guidance sets out the point at which the compost material is classified as recovered or diverted; this is summarised in Table 1-3. Table 1-3 Diversion and Recovery Summary – by Composting Route Diversion 7 Mixed waste compost for landfill Calculated for stabilisation of Mixed waste compost intended for recovery If a local authority has an operational plan Green waste compost (not PAS 100 certified) If a local authority has an operational plan for Green waste compost (PAS 100 certified) Diversion should be counted when Landfill Allowance Scheme (Scotland) Regulations 2005: Scottish Executive Guidance, March 2007. SLR Consulting Fife Council 8 Organic Municipal Waste Processing by AD: Appraisal material at time of landfill SLR Ref: 405.0689.00010 September 2008 for the recovery of the compost, diversion should be counted when material sent to process. When compost used for restoration/ other purpose. the recovery of the compost, diversion should be counted when material sent to process. When compost used for restoration/ other purpose. Recovery Never Reversal of diversion - If sent to landfill, diversion reduced to that calculated for the stabilisation of the material. If sent to landfill, diversion reduced to that calculated for the stabilisation of the material. Reversal of recovery - Spreading can only take place under appropriate licence or permit. Spreading can only take place under appropriate licence, permit or exemptions. Info / data Never leaves the scope of waste controls Only leaves scope of controls when recovered in use. Only leaves scope of controls when recovered in use. Data and evidence submitted for LAS Volumes diverted submitted for LASneed reconciliation with use Volumes diverted submitted for LAS – need reconciliation with use. material process. sent to When reaches end of PAS 100 certified process and there is a definite market for it. If subsequently disposed of to landfill (including excessive use of material). Diversion reduced to that calculated for the stabilisation of the material. If subsequently disposed of to landfill (excessive use of material is, effectively, an unlicensed landfill operation). Leaves scope of controls when recovered at end of process if there is certainty of use. Need for interim period information from councils to reconcile compost created and used. Table 3-1 provides the framework for the assessment of end-use options for various types of organic products from waste processing. It is clear from this that: a) Both mixed waste compost and ‘out of spec’ PAS 100 compost can be diverted and recovered, provided an approved operational plan is in place covering the use of the materials; and b) Diversion and recovery of PAS 100 certified material also requires the materials to be used in an appropriate end-use market. 1.7.3 SEPA Position With respect to route (b) above, i.e. source-segregated compost, SEPA’s Composting Position Paper of Sept 2004 (refer Appendix H of this report) states that ‘compost which is produced for a market, is able to meet the quality standards before any blending of the compost with other wastes, materials, composts, products or additives (where the standards are designed to ensure that the compost can be used with no adverse impact on the environment or human health), which has certainty of market and can be put to use without further recovery is likely to be taken to be fully recovered’. Effectively this removes the waste classification from materials that meet the PAS 100 Specification and which are used in a compost end-market. This position is mirrored in England by the Environment Agency, who also recently (March 2008) issued a further statement indicating that it is proposing to remove the waste classification from the digestate output from AD, where this meets the SLR Consulting Fife Council 9 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 requirements of PAS 110. SEPA’s position on the output from PAS 110 is not known but is anticipated to be the same. However it is clear that the regulatory agency position on certified compost materials is that these are no longer considered to be waste, with the likelihood that certified products from anaerobic digestion (in England & Wales at least) will in future also not be considered as waste. This position is considered to be helpful with respect to providing flexibility for endproduct plant output materials handling and end-market stimulation. With respect to route (a), compost derived from mixed wastes cannot meet the PAS 100/110 Standards (as it does not come from a separate collection source), and is considered by SEPA to be a waste. Hence its further use is regarded as a recovery operation and subject to permitting under the waste management regulations. Scotland’s National Waste Pan states that SEPA will ensure that the regulation of the use of mixed waste compost is proportional to the risks and accordingly SEPA included two Appendices in its Composting Position Statement, September 2004 to assist users develop options for recovery and end-use of this material. Appendix 1 (of the Compost Position Statement) contains a table (Table 1) of guideline values of contaminants considered to be applicable for composted material derived from mixed waste for use in landfill restoration above the cap. The clear implication of this table is that aerobically stable compost derived from mixed waste that complies with these standards would be suitable for use in landfill restoration applications, with the application being permitted by the existing waste management license and the material used being effectively diverted from landfill by this end-use and also being recovered by the process. However, while Appendix 1 sets out SEPA’s ‘in principle’ position, it is clear from the Position Statement that each case (for the proposed application of compost made from mixed waste) must be assessed on a site by site basis, as part of the approval process with SEPA. Appendix 2 of SEPA’s composting position statement sets out the risk assessment methodology that it is expected that applicants will follow to gain Agency approval for a specific landfill site restoration plan. The objective is to design a Site Closure Plan that will meet legislative requirements and in particular will not result in unacceptable harm to human health and the environment. It is important that each situation is considered in detail using the accepted risk assessment methodology of: Hazard assessment (e.g. presence of PTEs or other physical or chemical contaminants present in compost material); Receptor exposure assessment (using pathway analysis, e.g. surface run-off); and Risk quantification (= hazard x exposure); NOTE; this can be either a qualitative or quantitative assessment. 1.7.4 End-Use of CLO A summary of the potential routes to end use of CLO (or out of spec PAS 100/110 materials) from MBT processes is set out in Table 1-4. SLR Consulting Fife Council 10 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Table 1-4 Potential Permitting Routes to end use of CLO End Use Landfill restoration Permitting Route Site Restoration Plan (subject to site-specific risk assessment) Road verge / woodland management Paragraph 7 Exemption1 Closed landfill restoration or other post- Paragraph 9 Exemption industrial land restoration Notes: 1. Subject to agreement from SEPA that MBT Plant CLO meets specification for EWC 19.05.03 ‘Offspecification compost consisting only of biodegradable waste’ In addition to the above routes for end-use of CLO, SEPA has indicated that MBT plant operators may make a case, based on the quality of their plant output, for it to be effectively ‘declassified‘ as a waste, where the quality of the output (including its environmental impacts) and the market demand and viable end-use routes for the material as a product can be clearly demonstrated. SLR Consulting Fife Council 11 Organic Municipal Waste Processing by AD: Appraisal 2.0 SLR Ref: 405.0689.00010 September 2008 PROJECT BASELINE (WASTE PROJECTIONS AND PLANT CAPACITY) This section sets out the project baseline, namely waste data baseline (based on data provided by Fife Council), waste composition and future growth projections, residual waste tonnages, BMW content, comparison with Fife’s LAS obligations and estimation of likely MBT plant capacity. The output from this section provides the likely range of MBT/AD plant capacities for further consideration during the technology evaluation carried out in sections 3 and 4. 2.1 Baseline Waste Data (waste arisings, composition, infrastructure, end markets) The baseline waste data provided by the Council was used to define the key parameters for the project, such as plant capacity, tonnage of waste materials to be recycled/ diverted annually, and end-use of process outputs. 2.1.1 Waste Arisings and Composition Fife Council provided a breakdown of their municipal waste arisings and recycling & composting figures for the 4-year period 2004/5–2007/8. Some additional information (e.g. Commercial & Industrial waste arisings) was taken from the relevant Local Authority Waste Arisings Surveys (LAWAS). A breakdown of the total waste arisings collected by, or on behalf of, Fife Council over the last four years is shown in Table 2-1. Table 2-2 Total waste collected by, or on behalf of, Fife Council 2004/5 – 2007/8 Waste Type 2004/5 Waste collected for disposal Household Commercial & Industrial Other Non-household Total 2005/6 Tonnes 2006/7 2007/8 162,113 156,604 152,597 139,517 39,049 14,843 17,282 16,654 0 17,636 17,190 16,029 201,162 189,102 187,072 172,397 Waste collected for recycling & composting Household 55,978 Commercial & Industrial 6,698 Total 62,676 Total arisings (excl. C&I) 263,838 Annual waste growth (%) 3.2 Predicted average waste growth p.a. until 2010/11 (%) 65,770 7,406 73,176 247,416 - 6.8 74,224 8,362 82586 252,364 2.0 87,340 10,034 97,175 252,403 -0.01 2.0 2.1.2 Waste Growth and Recycling Projections In 2007/2008, a total of 252,403 tonnes of controlled wastes was collected by, or on behalf of, Fife Council. The Scottish national average waste growth over the last five years was 1.98%. As one of Scotland’s growing local authority areas, Fife Council has predicted an annual waste growth rate of 2% until 2010/11. However Fife Council also advised that they anticipated this to be followed by 0% growth thereafter, due to a combination of stabilising household growth projections beyond that date and the increasing impacts of waste minimisation and producer responsibility initiatives to limit future growth of waste per household. SLR Consulting Fife Council 12 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Based on this waste growth projection, the annual waste arisings from 2011/12 onwards are therefore calculated to be approximately 273,000 tonnes with 90% (245,519 tonnes) of the waste derived from household waste and 10% (27,658 tonnes) derived from non-household waste sources. The recycling and composting rate achieved in 2006/07 was 32.5% and 39% in 2007/8. Fife Council’s stated aim is to achieve the following combined recycling & composting rates: 41% in 2008/9; 44% in 2009/10; and 47% in 2010/11 and thereafter. These targets have been used to model the future recycling & composting tonnages from household waste as shown in Table 2-2. The table shows selected years between 2007/8 and 2025/26, including the MBT/AD plant ‘design year’ of 2010/11 (i.e. the assumed first year of plant operation). Table 2-2 Projected total household waste recycled by kerbside collection Material recycled (t/a) % of recycled MSW 2007/ 08 2008/ 09 2009/10 ‘Design year’ 2010/11 2011/12 2019/ 20 2025/ 26 39% 41% 44% 44% 47% 47% 47% Recycling target rate Paper & cardboard Kitchen Waste 15.6% 15,159 16,467 18,025 19,639 20,029 20,029 20,029 0% 0 0 0 0 0 0 0 Garden Waste 26.5% 25,751 27,972 30,619 33,361 34,023 34,023 34,023 Plastic 0.7% 647 702 769 838 854 854 854 Glass 5.3% 5,158 5,602 6,133 6,682 6,814 6,814 Metal 4.8% 4,610 5,008 5,481 5,972 6,091 6,091 6,091 Other combustibles Fines 10.9% 10,543 11,452 12,536 13,659 13,930 13,930 13,930 0% 0 0 0 0 0 0 0 6,814 Textiles 2.0% 1,896 2,059 2,254 2,456 2,505 2,505 2,505 Misc Non combustibles 16.0% 15,575 16,918 18,519 20,177 20,577 20,577 20,577 Soil & other putrescibles 8.2% 8,002 8,692 9,514 10,366 10,572 10,572 10,572 87,340 94,872 103,849 113,149 115,394 115,394 115,394 Total Hhld MSW recycled (t/a) Additionally, Fife Council aims to recycle waste produced by commercial and industrial businesses as shown in Table 2-3. SLR Consulting Fife Council 13 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Table 2-3 Projected municipal waste recycled from Commercial and Industrial businesses 2011/12 2019/20 2025/26 3,738 5,607 31 ‘Design year’ 2010/11 4,074 6,111 34 4,154 6,231 34 4,154 6,231 34 4,154 6,231 34 31 2,256 0 30 11,695 34 2,458 0 33 12,742 34 2,507 0 33 12,995 34 2,507 0 33 12,995 34 2,507 0 33 12,995 Material recycled (t/a) recycled MSW 2007/08 2008/09 2009/10 Paper Card Plastic packaging Plastic Glass Food Cans Total nonhhld MSW (t/a) 1.62% 1.62% 0.03% 3,144 4,716 26 3,416 5,124 28 1.95% 0% 0.03% 26 1,897 0 25 9,836 28 2,061 0 28 10,684 The remaining residual household waste and non-household waste fractions are currently disposed of to landfill. In 2007/08 this amounted to a total of 155,743 tonnes (refer Table 2.4). This residual waste fraction would potentially be available from Fife Council as feedstock for processing through the proposed MBT/AD plant. 2.2 Plant Feedstock Projections In the absence of local data on municipal waste composition in Fife, SLR used municipal waste composition data taken from the ‘Welsh’ Composition Study8 (NOTE: this is recognised by SEPA, WRAP and other government agencies to be the UK reference study for typical average municipal waste composition) to project the quantity of waste feedstock available and its waste composition for the next 18 years to 2025/26. Table 2-4 shows the predicted tonnages of residual household waste that would be disposed of to landfill, if no further treatment is carried out. The table includes two scenarios: Scenario 1 is based on Fife Council achieving its ‘aspirational’ source-segregated recycling9 rate of 47%; Scenario 2 models the case where Fife Council only achieves a lower rate (41%) of recycling. Table 2-4 Projected residual household waste arisings available as MBT plant feedstock Material type (t/a) Scenario 1 – 47% recycling Scenario 2 – 41% recycling 2007/08 2008/09 2009/10 ‘Design year’ 2010/11 2011/12 2019/20 2025/26 155,743 152,422 147,592 142,508 144,787 144,787 144,787 155,743 152,422 155,470 158,580 161,177 161,177 161,177 Table 2-4 indicates the impact to Fife Council of underperforming against its stated aspirational recycling targets, by 6%. This would increase the quantity of residual waste potentially going to landfill from 2011/12 onwards, by 16,390 tonnes - from 144,787 tonnes to 161,177 tonnes. These tonnages represent the total quantity of residual waste that would theoretically be available for treatment in an MBT/AD plant. 8 The Composition of Municipal Solid Waste in Wales, Welsh Assembly Government, December 2003 9 Includes both recycling and composting of source segregated materials. SLR Consulting Fife Council 14 Organic Municipal Waste Processing by AD: Appraisal 2.3 SLR Ref: 405.0689.00010 September 2008 Plant Feedstock and BMW Projections 2.3.1 Residual Waste BMW Projections The quantity of residual MSW that actually requires processing depends on the content of biodegradable municipal waste (BMW) within the total residual waste fraction compared to Fife Council’s landfill allowance for biodegradable wastes, as is set out in the LAS allowance targets. According to Environment Agency Guidelines on BMW, the fractions of paper & cardboard, kitchen waste and garden waste are 100% biodegradable, other combustibles, textiles and miscellaneous non-combustibles (fines) are 50% biodegradable and all other waste fractions are non-biodegradable. These assumptions were used in SLR’s modelling in order to quantify the total amount of BMW arising from the residual MSW, annually. Table 2-5 shows the modelled biodegradable content and its origins (i.e. material type) for selected years (including the ‘design year’), based on a projected Council recycling rate of 47%. Although not presented in detail in the table, SLR also calculated the total amount of BMW within the residual waste for the scenario of 41% recycling. The total BMW tonnage for this scenario is shown in the last row of Table 2-5 (in parenthesis). Table 2-5 Projected BMW content of residual MSW (MBT plant waste feedstock) 2011/12 2019/20 2025/26 40,469 ‘Design year’ 2010/11 39,374 39,884 39,884 39,884 41,173 42,837 43,694 44,458 44,458 44,458 BMW % content 2007/08 2009/10 Paper & cardboard Kitchen Waste 100% 42,186 100% Garden Waste Material type (t/a) 100% 6,031 2,447 367 374 374 374 Plastic 0% 0 0, 0 0 0 0 Glass 0% 0 0 0 0 0 0 Metal 0% 0 0 0 0 0 0 Other combustibles Fines 50% 1,579 860 441 450 450 450 50% 3,289 3,422 3,491 3,560 3,560 3,560 Textiles 50% 2,342 2,295 2,263 2,308 2,308 2,308 Misc noncombustibles 50% 1,902 1,309 691 705 705 705 Soil & other putrescibles Tot. BMW (t/a) 47% recycling Tot. BMW (t/a) 41% recycling 0% 0 0 0 0 0 0 98,971 93,639 90,320 91,738 91,738 91,738 (98,971) (98,728) (100,703) (102,327) (102,327) (102,327) Based on the above, the projected average BMW content of Fife Council’s residual MSW is calculated to be 63.4% (47% recycling) and 63.5% (41% recycling). 2.3.2 Fife Council LAS Implications SLR’s BMW projections were compared against Fife Council’s LAS targets in order to identify the years where Fife Council will not meet the landfill allowance without the introduction of residual waste processing. Table 2-6 shows the surplus/deficit of allowable biodegradable SLR Consulting Fife Council 15 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 material going to landfill for selected years, based on the results of SLR’s preliminary mass flow model. Two recycling rates were use in the analysis, in order to reflect both the Council’s high aspirational scenario (47%) and a lower (41%) recycling scenario. Table 2-6 Comparison of projected BMW in Fife’s residual waste with Council LAS obligations BMW content of residual MSW (t/a) LAS allowance (t/a) Surplus/ deficit (t/a) Scenario 1 (47%) Surplus/ deficit (t/a) Scenario 2 (41%) 2011/12 2019/20 2025/26 93,639 ‘Design year’ 2010/11 90,320 91,738 91,738 91,738 115,648 - 104,413 10,774 92,812 2,492 81,210 -10,528 49,042 -42,696 49,042 -42,696 - 5,685 -7,891 -21,117 -53,285 -53,285 2007/08 2009/10 98,971 Table 2-6 indicates that if Fife’s aspirational recycling rates of 47% are achieved from 2010 through to 2019, then the Council will achieve its LAS targets until (and including) 2010/11. However, from 2011/12 onwards, the LAS targets will not be achieved without processing of residual waste and the Council’s LAS deficit will increase annually, to reach a peak of 42,696 tonnes from 2019 onwards (assuming zero waste growth). In 2007/8 the Council’s recycling rate was 39%, with 41% forecasted for 2008/9. Therefore should Fife Council not be able to increase its recycling & composting rates much beyond 41%, the Council would fail to meet its LAS obligations from 2010/11 onwards, i.e. one year earlier than predicted for the high recycling scenario. Table 2.6 also indicates that the AD technology would have to divert approximately 19% (10,590 tonnes) more BMW from 2019 onwards, with the total LAS deficit exceeding 53,200 tpa from 2019 onwards. 2.3.3 AD Plant Size Implications, Assumptions and Specification The preliminary sizing of the MBT/AD plant for residual waste processing is based on the tonnages associated with the range of likely recycling performance (i.e. 41% - 47%) and on the following scenarios: A. The dewatered digestate fibre is disposed of to landfill, at reduced biodegradable content10; B. Around 25% of the dewatered digestate is aerobically stabilised to produce a compost like output (CLO)11 and this is diverted from landfill as nominated material input into an approved landfill site restoration plan material (i.e. blended with other suitable material) and used for landfill restoration under an approved Site Restoration Plan. 10 Typically AD will reduce the biodegradable content of the source feedstock by between 40-60%; an average of 50% BMW reduction has been used here for this preliminary plant sizing calculation 11 CLO remains a waste and therefore can only be applied to land under an approved Site Restoration Plan or under an exemption; these are all time limited and therefore likely to be limited in scope for the management of all digestate output. SLR Consulting Fife Council 16 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Table 2-7 Preliminary MBT/AD Plant Size Projections Residual MSW Feedstock, tpa (refer Table 2.4) BMW content (@ 63.5%), tpa BMW Diversion required, tpa A. 100% of digestate output to landfill: rate of BMW degradation required1 B. 25% of Digestate used as CLO for approved Landfill restoration works: 25% of required diversion as CLO (tpa, BMW) Remainder disposed of to landfill at assumed 50% BMW reduction Total BMW in feedstocks: Minimum AD Plant Feedstock2: 144,800 (47%) 91,950 42,700 46.4% 161,200 (41%) 102,200 53,300 52.2% 10,675 13,325 64,050 79,950 74,725 93,275 118,000 tpa 147,000 tpa Notes: 1. Typical rates for BMW degradation by AD are 40-60%, so these values are realistic for preliminary plant sizing 2. Assumes BMW content of Plant feedstock is 63%. SLR recognises that other AD plant digestate output end-uses are possible, e.g. use of surplus heat to dry the dewatered digestate as a possible refused derived fuel (RDF) for enduse by 3rd party plants; this is considered later in this report (refer Section 5). However, for the purposes of our discussions with MBT/AD technology providers, they were asked to base their preliminary designs for the MBT/AD plant using a feedstock range based on the data set out in Table 2.7, i.e. of 120,000 – 160,000 tpa capacity. The new recycling and composting targets announced by the Scottish Government in 2008 are 40% in 2010, 50% in 2013, 60% in 2020 and 70% 2025. While the definition of ‘recycling’12 within the context of the new targets has yet to be defined, it is clear that to achieve these new recycling targets, Fife Council (in common with other Scottish local authorities) will need to maximise the level of materials recovery for recycling from any residual waste processing plant, to the extent possible. However it is recognised that there are significant constraints on what materials, recovered from the mixed residual MSW stream, can actually be recycled, due to low material quality and reduced end-market opportunities (refer section 2.4.2). Nevertheless the MBT / AD technology suppliers approached under this study were asked to include maximum materials recovery for recycling options into their preliminary plant designs. 2.4 Existing Infrastructure and Material End Markets 2.4.1 Existing Council Infrastructure Fife Council has two possible sites for location of a new residual waste MBT plant; these are both co-located at the Council’s existing ‘live’ landfill sites, i.e. Lochhead Landfill, Dunfermline and Lower Melville Wood, Ladybank. Both sites are existing PPC-permitted landfills accepting household, commercial and industrial waste and which also provide HWRC (household waste recycling centre) facilities to the general public. Both landfill sites collect landfill gas and use this onsite to generate power and heat through onsite CHP engines. Both sites have existing electrical grid export 12 e.g. does it include recycling of inerts / rubble at HWRCs or metals / bottom ash from EfW ? SLR Consulting Fife Council 17 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 connections; these are reported as around 4MW at Lochhead and 2MW at Lower Melville Wood. The PPC permit for Lower Melville Wood landfill was granted in August 2005 and includes the CHP units. The PPC permit for Lochhead landfill was granted in November 2006 and also includes the CHP units. Leachate generated at Lochhead landfill is tankered offsite for treatment, while the Council are currently planning the development of a leachate management system at Lower Melville Wood by 2009. This will require either an extension to the existing PPC or a separate, new PPC application. The heat generated by the CHP units at Lochhead is used to run a district heating scheme that currently delivers slightly less than 1 MW of heat energy (through a two-stage primary and secondary hot water delivery system) to several domestic and commercial heat users located within 2.5 km (1.5 miles) to the south of the CHP plant. The Lochhead district heating scheme was commissioned in April 2007 and is operated by Fife Council; it has an estimated inbuilt capacity13 to carry an additional 1MW of heat over and above its design (1.5MW). Lower Melville Wood landfill is located in a rural location, with the only significant settlement within a 5km radius of the site being the village of Ladybank, located approximately 1.5km to the south of the site. No commercially viable district heating opportunities have emerged to date, although the village does contain a school and housing. Although less than at Lochhead, the opportunities for the export of heat to end users in the local area (e.g. new ‘sustainable’ housing developments, horticultural producers, distilleries) may emerge in future. In addition, a small quantity of process heat may be required by the planned new leachate treatment system, although the precise heat demand details will depend on the final detailed design for this. The presence of the existing landfill gas and CHP infrastructure and grid connections on both sites is helpful as this will provide an opportunity to share the gas management and grid connection infrastructure14 and significantly reduce the level of the capital investment required for the development. The available land area at Lochhead, within the existing PPC installation boundary, is reported to be around 2Ha. Space within the existing PPC installation boundary at Lower Melville Wood is similarly limited, although it is reported that land with an additional area of around 6Ha, is available for use by Fife Council, outside the existing PPC installation boundary. The average footprint of an MBT/AD facility for the planned feedstock capacity of 140,000 – 160,000 tpa is 2-3 Ha. It is possible to develop plants on a ‘smaller than ideal’ footprint but this is likely to add complexity to the process layouts and increase the site development costs. This indicates that development at both sites is feasible in principle but that the area of land identified to locate a new MBT/AD plant would be subject to site-specific considerations. The infrastructure associated with the development of a 120,000-160,000 tpa capacity MBT/AD plant is significant and would include a number of heavy items of plant and storage/process tanks with associated pipework that will require secure foundations, not prone to significant differential settlement. Although ground conditions at the two sites are variable, and comprise predominantly sands and gravels at Lower Melville Wood and include 13 Personal communication between D.Jamieson (SLR) and W.Dewar (Fife Council); additional capacity is present in the existing pipe diameter and also in the ability to increase the water flow rate. 14 The typical average methane content of both landfill gas and AD biogas is around 60% by weight, with the remainder comprising mostly CO2; thus it is feasible to share the CHP engine(s) - although separate metering will be required as different ROC rates apply to power generated from the individual gas streams. SLR Consulting Fife Council 18 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 pockets of peat and made ground at Lochhead, SLR is not aware of any particularly poor or difficult ground conditions that could potentially prevent development at either site, or significantly increase the capital costs of the development above industry norms. However the actual site preparation and development costs would depend on the specific land selected for development and the results from a detailed intrusive site investigation carried to quantify the ground conditions and foundation requirements, and the associated cost implications. 2.4.2 Process Outputs and Security of Material End Markets In addition to the digestate output from the MBT/AD plant, the increasing recycling targets now applicable in Scotland indicate that it would be desirable for the plant to be able to maximise the recovery of materials suitable for recycling / re-processing. Hence the mechanical sorting element of the plant should be designed to facilitate the recovery of the following materials: ferrous metals, non-ferrous metals, plastics, paper/card, glass, grit / inerts and (optionally) materials suited for refuse derived fuel (RDF). Fife already has established end-markets for source separated paper, metals and glass. However the same materials recovered from mixed waste will (for a typical dry-separation process) have higher contamination levels. An overview of the potential end-uses for each of the process outputs follows: Paper / card: since paper/card recovered from mixed waste tends to be dirty and contaminated, there are unlikely to be any viable end markets for this with reprocessors (including with Fife’s existing reprocessor, Securecycle); paper/card recovered from the mixed waste stream should therefore be diverted to either (a) the digestion process or (b) as an RDF. NOTE: however under the current regime in Scotland, neither of these end-uses would count towards Fife’s recycling targets. Plastics: Fife’s mixed residual waste stream will contain a high plastics content, as little is collected at kerbside; options are: (a) recover as mixed plastics from residual waste (with possible separation into polymers, HDPE, PET etc) and sell to UK and international markets. However the high contamination levels combined with emergence of a developed Chinese economy, will likely significantly restrict this end-use option in the medium term); (b) include in an RDF product output from the plant (although medium-long-term RDF end-users would need to be found to make this a viable option – and the end-use of RDF will remain a revenue cost to the plant operation for the foreseeable future); (c) use mixed plastic as a feedstock for the production of alternative fuel / synthetic diesel; this option may become viable in the medium-long term as technologies and markets develop in response to the increasing oil price NOTE; under the current regime in Scotland, only option (a) would count towards Fife’s recycling targets. The market value of plastics (mixed polymers) was quoted in Materials Recycling Weekly (MRW) in May 2008 as £70-80/tonne. Glass: this could either be recovered in its own right for recycling, or alternatively could be recovered along with grit and other fines for use as inerts or landfilling at the lower landfill tax rate of £2 / tonne. The market value of glass (mixed colour) was quoted in MRW in May 2008 as £13-16/tonne. Metals (Fe / non-Fe): these can potentially be recovered from various stages of the process and reprocessors will generally accept metals recovered from mixed waste – although the commercial value will reduce for very dirty or contaminated materials. Hence the end market for these products can be considered to be relatively secure, although the commercial value SLR Consulting Fife Council 19 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 is variable (and will depend on material quality and market conditions). The market value of Fe and non-Fe metals was quoted in MRW in May 2008 as £23515 /tonne and £850 /tonne respectively. It is recognised however that the price paid for metals recycled from front-end mechanical separation from residual waste will likely be lower than this, to reflect the actual quality of the secondary metals. Nevertheless, prices for reprocessed metal on domestic and international markets have been rising and this trend is likely to continue for the foreseeable future. Recyclates summary: it is apparent from the above that the contribution to Fife Council’s recycling rates from a future MBT Plant will be mainly limited to the recovery (for recycling) of metals; recycling of plastics and glass is also possible, depending on the quality of the recovered materials and the existence of secure end-markets for these materials. Digestate: possible end-uses for the dewatered digestate fibre include: (a) disposal to landfill, with the post-processing reduction in BMW content making a contribution towards the Council’s LAS obligations; (b) refine and use as a CLO material for landfill / land restoration purposes, either as part of an approved (by SEPA) landfill Site Restoration Plan or under a formal exemption16, again with approval by SEPA for the specific end-use (Note: this would require a 3 stage process of digestion + aerobic maturation + refining); and (c) dry the digestate fibre to produce a low calorific value RDF or biomass, using surplus heat from the CHP unit(s); a secure end-market for the resultant RDF/biomass would need to be found to secure this end-route (e.g. merchant EfW plant, cement kiln). The RDF market in the UK is improving but the combination of the continued ‘waste’ status of RDF produced from mixed waste sources, the need for a WID17-compliant energy plant to use the RDF and the likelihood that Fife Council would also have to pay a gate-fee to end-users to accept the material (as is currently the situation), make this particular end-route non-secure, at least in the short-medium term. Additionally, RDF end-users usually require a minimum product quality (which may require adding an additional process step at the MBT plant), e.g. drying to reduce moisture content, shredding, pelletising or briquetting, with the associated additional capital investment. NOTE: only option (a) offers a secure end-route; option (b) may offer a full or partial solution in the medium term but is not a viable long-term; option (c) is not a viable short-term option, although may emerge as a viable end-route in the medium long-term. The dewatered digestate liquor from a mixed residual waste AD plant will require treatment / disposal along with other process effluent. While digestate liquor from source-segregated biowaste AD plants can be used as a fertiliser replacement for agriculture / horticulture, issues around the mixed waste source and continuing waste status of the process outputs from a mixed residual waste plant are likely to make this end-use non-viable, certainly in the short-term. Biogas: the market for biogas is considered to be secure in the long term. Typically this is used as fuel for CHP system to produce electricity (at ~38% efficiency) and heat (at up to ~45%18 efficiency). Both the heat and power are typically used onsite to meet the parasitic energy demand of the AD plant (and the associated MBT process), with any excess energy 15 For Corus ‘Canroute’ approved suppliers 16 E.g. application to land under Para 7 or Para 9 exemptions. 17 Waste Incineration Directive 18 With ~ 50% of the heat recovered from the engine jacket, and ~50% from the exhaust. The details vary depending on specific engine type. SLR Consulting Fife Council 20 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 being available for sale to third party end users. Depending on the plant location, electricity can be fed into the national grid to generate income for the operator. In addition, the production of electricity from AD of municipal waste is eligible for CCL19 and ‘double’ ROC20 certificates (from April 2009) under the government’s renewable obligations scheme. An overview of the ROCs and CCL system is provided in Appendix I. It is apparent from this that the possible revenue streams for electricity sales comprise: sale to grid (pool price): Climate Change Levy (CCL): £4.30/MWhr (on all renewable power generated); ROCs: £45-60/MWhr exported (price depends on location); currently around £47/MWhr21 per single ROC (on all renewable power generated). Currently (September 2008), this equates to a total ‘bundle price’ revenue potential of ~£150/MWhr (assuming ‘double ROCs’) from renewable electricity, although it should be noted that the sale price will be subject to variation over time due to supply fluctuations. Where CHP is being used, the export of surplus heat energy (in the form of pressurised or unpressurised hot water) is also possible, as is currently done at Lochhead through the district heating system in Dunfermline (within 2.5 km of the CHP source). This also has a potential to generate income, at a rate of £30-50/MWhr, with the actual value dependent on the local market and whether the end-users/customers are commercial or domestic. Sales to heat end users in the Dunfermline district heating scheme are typically £30/MkWh for commercial users and £40-50/MWh for domestic users. As alternatives to CHP, produced biogas (biomethane) could potentially either be (a) converted into a substitute natural gas vehicle fuel (through upgrading and compression to increase the methane % content) or (b) injected into the natural gas grid. Both options are technically feasible (and common in mainland Europe) but have not yet been implemented in the UK due to commercial viability issues (including lack of financial incentives - ROCs equivalents). The indicative total cost of producing biogas fuel for vehicles is reported in literature as between 65-75p/litre22; this includes the costs of AD and biogas upgrade (stripping out of CO2 and H2S) and compression to produce a fuel that is 97% methane and ready for dispensing to vehicles. This approach lends itself to use in a dedicated vehicle fleet that uses a single refuelling point (e.g. RCVs, city buses) and would potentially offer a higher efficiency end-use of the biogas (compared with CHP, where commercially viable heat end users can often be difficult to find). To date the UK market for biogas fuel has not developed due to the relatively high price of electricity in this country and the potential for sale revenue, including latterly, the introduction of the ‘double ROCs’ revenue potential from renewable electricity sales. However the steep rise in the cost of crude oil (and downstream fuels) in recent months may make this a more viable option for Fife Council to consider in the medium-term. 19 CCL Climate Change Levy 20 ROC values vary and are recorded at www.eroc.co.uk The average ROC value to July 2008 was £47/MWh; the long-term value will vary and may reduce as more ROCs are produced. Double this value applies to energy generated from AD (from April 2009). 21 Based on July 2008 average auction value for a single ROC 22 1Nm3 upgraded biogas (97%methane) equates approximately to 1 litre of diesel fuel. SLR Consulting Fife Council 21 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 The injection of biogas into the national natural gas grid network is permitted and technically feasible (at relatively low cost); however under the current renewables regime, the biogas would lose its ‘renewable’ status if injected, thus reducing the income and making it a less attractive option. SLR understands that the UK government is currently reviewing this issue, as part of its proposed renewable heat strategy (i.e. its Renewable Heat Incentive (RHI) and Renewable Heat Obligation (RHO) proposals) and therefore it is likely that some form of incentive will be introduced in the medium term to encourage new developments. 2.5 Outline Plant Specification It is clear from this section of the report, that the specification for any future MBT/AD plant would require careful development in order to ensure that plant design took account of (a) Fife Council’s requirements for the plant (with respect to feedstock capacity, materials recovery, BMW reduction through the process and biogas production / end-use) and (b) relevant local circumstances, e.g. end-markets for recovered materials and digestion products. For the purposes of this technology review, the following outline specification has been assumed for a possible future MBT/AD plant: Plant feedstock capacity: 120,000 – 160,000 tpa of residual municipal waste Materials recovery (recycling): Maximise recovery of metals, plastics and glass Materials recovery (other end uses): Optional diversion of paper to digestate or RDF; optional diversion of plastics to RDF BMW reduction: Divert up to 53,300 tpa BMW from landfill, from 2019/20 (assuming bulk of digestate disposed of to landfill) Biogas use: CHP with end use / sale of surplus heat and power ABPR status: ‘Category 3 ABPR’ Technical Standard SLR Consulting Fife Council 22 Organic Municipal Waste Processing by AD: Appraisal 3.0 SHORTLISTING OF AD TECHNOLOGY PROVIDERS 3.1 Methodology SLR Ref: 405.0689.00010 September 2008 This section of the report sets out SLR’s methodology and results from the process of identification, screening and shortlisting of suitable AD technology providers. The screening process was designed to produce a shortlist of technology providers, who are considered to be the optimum ones with respect to having the capability of delivering an MBT/AD plant for Fife Council that meets their key project requirements, as set out in the outline specification. Soft market testing of the shortlisted technology providers was subsequently carried out and this process (and its outcomes) is described in Section 4. An overview of the sequential methodology used in the technology shortlisting process (for residual waste digestion) is set out in Figure 3-1. Detailed literature review, including in-house database & internet Long list of AD suppliers (109) Stage 1 screening: Is AD Technology suited to process MSW? List of potentially suitable AD suppliers (19) Stage 2 screening: A: verbal confirmation of capabilities and issue of Questionnaire (15) B: Technology evaluation of 10 returned questionnaires Short List of AD Technologies for detailed review (5) Stage 3 screening: Soft Market Testing Figure 3-1: Technology Shortlisting Methodology Flowchart (residual waste) SLR Consulting Fife Council 23 Organic Municipal Waste Processing by AD: Appraisal 3.2 SLR Ref: 405.0689.00010 September 2008 Stage 1 Screening The starting point of the AD technology review was an in-depth literature review. A detailed search of data provided in literature, on the internet and on SLR’s in-house database was carried out in order to identify a comprehensive long-list of AD technology suppliers. The basis of the initial screening process was the comprehensive list of AD technology suppliers published in the Juniper Report “Commercial Assessment – Anaerobic Digestion Technology for Biomass Projects”, completed in June 2007. This list was checked against further web research and also SLR’s own records and updated with 2 additional suppliers, bringing the total inventory of worldwide AD technology suppliers to 109. The complete list of these identified AD technology suppliers is included as Appendix A. The technologies/services offered by of each of these 109 suppliers were initially screened based on single key criterion that is required for this application for Fife Council, namely: Is the technology capable of processing mixed residual municipal / household waste ? Many AD technologies are developed for the treatment of agricultural waste, biomass or food waste only; other companies offer co-digestion of organic waste with sewage sludge. Some of the listed suppliers only provide mechanical and process parts for AD plants such as gas cleaning equipment or the digester tanks. The majority of the companies on the long list of AD technology providers have no experience in the pre-treatment and digestion of mixed residual household or municipal waste and were therefore as part of the Stage 1 screening process. Based on the outcome of the SLR’s literature review, a reduced list of 19 technology provider companies was carried forward to Stage 2 screening; these are listed in Table 3-1. Table 3.1 : AD Technology Companies offering residual MSW processing Company name Country AnDigestion / Summerleaze UK Oaktech (ArrowBio) Israel Bekon Germany Cambi Norway Clarke Haase UK EcoCorp Inc. USA Enpure / BTA UK Global Renewables (ISKA) Australia (Germany) Grontmij / SBI Friesland Netherlands Kompogas Switzerland Organic Resource Technology (Anaeco) Australia OWS (Dranco) Belgium Passavant-Roediger Germany Ros Roca Germany Inter-engineering (formerly RTS) UK Schwarting Uhde Germany Strabag Austria SLR Consulting Fife Council 24 Organic Municipal Waste Processing by AD: Appraisal 3.3 SLR Ref: 405.0689.00010 September 2008 Company name Country Valorga France Wehrle Umwelt Germany Stage 2 Screening Under the second stage of the technology screening process, SLR: A. Directly contacted the 19 companies on the above reduced list for a preliminary screening discussion (based on four key criteria) about their MBT/AD capability; successful companies were then issued with a proforma questionnaire (refer Appendix B for a copy of this) for completion; and B. Carried out an evaluation of the completed and returned questionnaires. Stage 2 of the screening process identified 15 AD technology suppliers who confirmed their capability for meeting the key project criteria and of these, 10 companies submitted a completed proforma questionnaire. SLR evaluated the replies using a technology screening model, developed specifically for this project to reflect the needs of Fife Council. The 5 AD technology suppliers with the highest score were taken forward for a Soft Market Testing process, which is described in Section 4. The results of the evaluation of each company are attached in Appendix C. A detailed description of the two-stage screening process follows. 3.3.1 A: Preliminary Stage 2 Screening The first stage comprised contacting each of the previously identified companies by phone in order to establish whether their technology is suited for Fife Council’s specific requirements and their level of interest and willingness to provide services to Fife Council. Each of the 19 identified AD technology suppliers was contacted by SLR by telephone or by e-mail in order to identify those suppliers that are experienced in the treatment of residual municipal / household waste using anaerobic digestion and who are willing to provide their services to Fife Council. Suppliers that answered any of the following four key criteria questions with “No” were not issued with a questionnaire. Criterion 1: Is the technology able to treat municipal household waste? Three of the companies identified in Table 3.1 indicated that they do not offer AD processing of residual municipal / household waste. These are: Andigestion, Schwarting Uhde and Wehrle GmbH; one other company (Grontmij) was only contactable via e-mail and did not reply to our initial request for information. Criterion 2: Is the process commercially available/actively marketed in the UK / Europe ? None of the companies listed in Table 3.1 operate an AD plant for the treatment of residual household waste in the UK. However, a number of the listed suppliers are currently in the commissioning phase of the development of such plants in the UK (Global Renewables), or the detailed design phase (Enpure, Clarke Haase) or are at the shortlisted / preliminary design stage (Oaktech). Others cite ‘reference plants’ elsewhere in Europe (Cambi, Ros Roca, Kompogas, Strabag). Criterion 3: Is the process able to meet ABPR Technical Standards ? SLR Consulting Fife Council 25 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 None of the companies identified currently operates an ABPR-approved AD plant for residual household waste. However, all of the companies stated that their technology is able to achieve the requirements of the ABP Regulations, through the use of process modifications and/or pasteurisation. Some companies have ABPR approval for the treatment of source separated biowaste or food waste (e.g. Strabag, Clarke Haase, Inter-Engineering, Kompogas). Criterion 4: Is the supplier able to provide a full turnkey delivery of the process (including mechanical pre-treatment)? All of the companies listed in Table 3-1 claimed that they would be able to provide the turnkey delivery of the proposed residual waste treatment plant, including the required mechanical pre-treatment and associated infrastructure. In some cases the companies already work with specific sub-contractors (e.g. Enpure - BTA), while others would yet have to find a partner (e.g. Kompogas). As a result of the Stage 2A screening, the following 15 technology providers (refer Table 3-2) were retained for Stage 2B screening using SLR’s proforma questionnaire. All of the companies listed expressed their interest in the future provision of a service to Fife Council. Table 3-2: Stage 2A Technology Screening Results Company Country Oaktech Israel Bekon Germany Cambi Norway Clarke Haase UK EcoCorp Inc. USA Enpure/ BTA UK Global Renewables [ISKA] Australia [Germany] Kompogas Switzerland Organic Resource Technology (now AnaeCo Ltd) Australia OWS [Dranco] Belgium Passavant-Roediger Germany Ros Roca Germany Reliant Technical Services, RTS (now Inter-Engineering) UK Strabag Austria Valorga (now part of Ubaser Environnement ) France Each of the 15 companies listed in Table 3-2 was asked to complete a proforma questionnaire developed by SLR specifically for the Fife Council project. A copy of SLR’s Stage 2 Screening Questionnaire is attached in Appendix B. The questionnaire includes an outline process specification, in order to ensure that the data collected from the participating companies was as accurate and comparable as possible. SLR Consulting Fife Council 26 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Five suppliers did not complete the questionnaire and were therefore not carried through to the next stage of the screening process. These five companies are identified in Table 3-2 in grey shading / italics. 3.3.2 B: Evaluation of Submitted Questionnaires In total, 10 companies completed the questionnaire; the returned questionnaires were evaluated using the criteria listed below: 1. Feedstock definition (residual MSW): What are the feedstocks targeted by the suppliers including tonnage, composition, annual growth / variation / seasonality; are the suppliers experienced with the type of feedstock that would be provided by Fife Council ? 2. Process performance and efficiency: Materials recovery for recycling, organics diversion, energy balances, biogas yield, intended end-use of process outputs, compliance with ABPR, specific feedstock requirements. 3. Plant Scale: What size of plants are the suppliers experienced with – small/ medium/ large. Can the plant be built on a modular basis (to avoid unused excess capacity in early years of plant(s) ? 4. Deliverability: Plant footprint and ability to fit onto available sites / land; suppliers preferred method of implementation, i.e. turnkey delivery of complete project. 5. Commercial Status and Reference plant(s): Is the technology proven - Must have at least one plant with not less than 12 months demonstrable successful operation, ideally treating residual municipal / household waste. 6. Cost Economic Data: How do budgetary capital and operational costs compare between suppliers. In order to compare the information provided by the AD technology suppliers, SLR used an evaluation model that comprised the following key criteria: I. Technology (including experience, feedstock definition, gas and energy yields, BMW diversion, wastewater, and gas treatment); {weighting 40%}; II. Deliverability (including commercial availability, reference plants, project delivery, plant scale, and process guarantees); {weighting 20%}; III. Licensing (ABPR compliance); {weighting 25%}; and IV. Cost Economics (based on supplier budget capital and operational costs); {weighting 15%}. Each submission was assessed against the above criteria using a scoring system that reflected the level of performance of the technology against critical aspects of each individual criterion. Details of the scoring system and criteria are set out in the tables in Appendix C. The total score of each section was then used to calculate the weighted average in order to evaluate the overall performance of each AD technology. Basis for Criteria Weighting: I. Technology (40%): the processing of residual municipal / household waste by AD requires a robust technology that includes waste feed preparation, materials recovery for recycling and use of a proven AD system that can also cope reliably with the relatively abrasive material over the long-term life of the plant; this is considered to be the most important technical evaluation criteria and is weighted accordingly. II. Deliverability (20%): the technology providers’ ability to deliver a turnkey MBT/AD plant was assessed based on their commercial activities (in the UK and Europe), taking account of existing reference plants, and their willingness to provide process guarantees; although important, this was considered to be of less importance than Technology, since the AD SLR Consulting Fife Council 27 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 provider could if necessary always work as a technology subcontractor to a larger Engineering and Procurement Contractor (EPC). III. Licensing/ABPR (25%): in order to maintain flexibility with respect to end-use of the digestate (including application to land as a restoration material), the plant must be able to accept and process wastes that are classed as Category 3 ABPR material (i.e. including uncooked meats from non-kitchen sources); hence the plant’s ability to achieve ABPR certification is important and weighted accordingly. IV. Costs (15%): although important, this evaluation criteria was weighted the lowest of the four, on the basis that at this early stage of technology comparison, only outline budget costs have been submitted by the technology providers; these are unlikely to be completely reliable, other than to provide indicative costs for a broad comparison between alternatives; more comprehensive and reliable costs would emerge at the time of detailed feasibility and/or contract procurement. Summary of Stage 2 Questionnaire Evaluation Process The detailed model results for each company can be reviewed in Appendix C. The results of each section are summarised in the sections below. I. Technology Based on the information provided within the returned questionnaire the reviewed AD technologies were rated on their experience with residual household waste, feedstock definition, gas and energy yields, achievable recycling rates, required waste disposal to landfill, BMW diversion, required wastewater discharge, and provided gas treatment. The results of the scores in this section are summarised in Table 3-3. The highest possible score in this category was 0.4: Table 3-3: Outcome from Evaluation of Technology Ranking 1 2 3 3 3 3 7 8 9 10 Supplier OWS Ros Roca Strabag Clarke Haase Oaktech Cambi Valorga Kompogas AnaeCo Bekon Technology (40%) 0.30 0.28 0.26 0.26 0.26 0.26 0.24 0.22 0.21 0.07 Overall OWS scored highest in the Technology evaluation, with its ‘Dranco’ system, based on dry (high solids), thermophilic, anaerobic digestion. The company has experience of treating residual municipal / household waste and the process is claimed to not produce any waste water for discharge, and claims very high recycling rates with >40% recovery of the input. Ros Roca also has experience in residual waste processing and offers similar recycling recovery rates, but does produce some process effluent for discharge, from its wet (low solids) system. SLR Consulting Fife Council 28 Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0689.00010 September 2008 Four other technology providers were allocated the same slightly lower score, i.e. Strabag, Clarke Haase, Oaktech and Cambi. Valorga, Kompogas and AnaeCo has similar but lower scores, mainly due to a combination of less project experience and lower quoted recovery rates for recyclates. Bekon did not provide any performance details and could therefore not be evaluated adequately. II. Deliverability Deliverability was assessed on the basis of the technology commercial availability (in the UK and elsewhere), the number of reference plants treating residual municipal/household waste, the ability to provide a turnkey delivery of the project, the size of the reference plants, and the type of process guarantees that would be provided. The results of the scores in this section are shown in Table 3-4. The highest possible score in this category was 0.2: Table 3-4: Outcome from Evaluation of Deliverability Strabag is the only AD technology provider that has a reference plant in the UK. Other companies like Cambi, Kompogas, Ros Roca and Valorga market their technologies in the UK but do not currently have any UK reference plants. Clarke Haase (and Enpure-BTA23) are the preferred technology providers to ViridorLaing for the MBT/AD plants to be developed as part of the Greater Manchester PFI contract. Both Anaeco and Bekon have no residual household waste treatment plants in Europe. Ranking III. Licensing Under licencing, the ability and experience of the companies to comply with the technical standards required for processing of Category 3 waste materials Animal By-Product Regulations (ABPR) was considered. The results of the scores in this section are shown in Table 3.5. The highest possible score in this category was 0.25: Table 3.5: Outcome from Evaluation of Licensing 23 Enpure-BTA did not respond to our questionnaire and therefore were omitted from the subsequent evaluation process SLR Consulting 1 2 2 4 5 5 5 5 9 10 Supplier Strabag Kompogas Cambi Ros Roca Clarke Haase Valorga Oaktech OWS AnaeCo Bekon Deliverability (20%) 0.17 0.16 0.16 0.15 0.15 0.15 0.15 0.15 0.12 0.09 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.00010 September 2008 Cambi are the only company who claim to Ranking Supplier Licensing operate an AD plant treating residual (25%) household waste, which is ABPR certified. 1 Cambi 0.25 Kompogas and Valorga also operate certified 2 Kompogas 0.19 AD plants, but these licenses are based on 2 Valorga 0.19 the requirements of the European 4 Strabag 0.13 Regulations (i.e. 2 weeks at 55°C) rather 4 Clarke Haase 0.13 than the UK ABP regulations. Strabag and 6 Ros Roca 0.08 Clarke Haase operate ABPR certified plants, 7 Oaktech 0.00 treating source-separated biowaste. Ros 7 OWS 0.00 Roca operates an AD plant treating food 7 Bekon 0.00 waste to European Standards. OWS are 7 AnaeCo 0.00 known to already meet European pasteurisation standards in their design and are looking at ways of meeting UK ABPR standards in future designs. Similarly SLR is aware from other projects that Oaktech are working on the inclusion of APBR compliance for future designs for UK plants. All the other suppliers do not operate AD waste treatment plants to ABPR standard or to equivalent European standards and therefore were allocated a zero score.. IV. Costs Each company was asked for the estimated budget price of an anaerobic waste treatment plant, including mechanical pre-treatment and civil costs. The results of the scores in this section are shown in Table 3-6. The highest possible score in this category was 0.15: Table 3-6: Outcome from Evaluation of Costs A thorough assessment of the budget Ranking Supplier Costs capital costs and operational costs was (15%) difficult during this early stage of process 1 Oaktech 0.15 evaluation. None of the companies 1 Strabag 0.15 included civil costs and only a few 1 Clarke Haase 0.15 companies included the mechanical pre1 Ros Roca 0.15 treatment without specifying, which 1 Cambi 0.15 elements are included in the front end 6 Valorga 0.11 treatment. The companies were therefore 7 OWS 0.09 only compared on the basis of the costs 8 Kompogas 0.03 for the AD treatment element. Valorga’s 8 AnaeCo 0.03 costs appeared to be above the average 10 Bekon 0.02 capital costs compared to its competitors and OWS did not provide any details, and could therefore not be adequately rated. The operational costs were generally stated to be within 2-4% of the process capital costs. SLR Consulting Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.00010 September 2008 The key findings from the Stage 2 evaluation of the submitted questionnaires, were then used to create a shortlist of technologies/ technology providers that best satisfied the agreed screening criteria. In total, 6 AD technology suppliers satisfied the majority or all of the assessed criteria. These were taken forward into a soft market testing approach. Although not part of the top four companies, Oaktech was also taken forward to the soft market testing stage, as it was considered that the technical approach offered by this company may be beneficial to achieve high recycling recovery rates and higher than average gas yields. Oaktech are currently the preferred technology provider for the development of a 100,000 tpa MBT/AD plant at Avondale Quarry landfill, Polmont and may soon be in a position to provide an ABPR-compliant technology, which would improve their position in the comparative analysis. The overall outcome from the Stage 2 questionnaire evaluation is shown in Table 3-7. Table 3-7: Outcome from Overall Technology Evaluation Ranking 1 2 3 4 5 6 7 8 9 10 Supplier Cambi Strabag Clarke Haase Valorga OWS Ros Roca Kompogas Oaktech AnaeCo Bekon Overall Score 0.815 0.706 0.690 0.683 0.657 0.655 0.603 0.552 0.363 0.07 Notes on Table 3-7: 1. Cambi subsequently withdrew from the evaluation saying that their process was not wellsuited to processing mixed residual municipal / household waste, but rather was designed for source-segregated household waste and other biodegradable waste fractions such as ABPR cat. II & III material, but was not designed to treat all types of waste, such as residual household waste. They did however provide detailed information for the treatment of source-separated biowaste. 2. Kompogas operate only one residual waste plant (in Spain); all of their other plants operate on source-segregated biowaste and their system is not considered to be wellsuited to processing residual waste feedstock. As a result, the following six shortlisted technology providers were taken forward to the Soft Market Testing stage: A. B. C. D. E. F. Clarke Haase; Oaktech; OWS Ros Roca; Strabag; and Valorga. SLR Consulting 31 Fife Council Organic Municipal Waste Processing by AD: Appraisal 4.0 SOFT MARKET TESTING 4.1 Overview of Process SLR Ref: 405.0698.0010 September 2008 As part of the soft market testing process, each of the following six shortlisted bidders was contacted again and sent out a secondary follow-up questionnaire: A. B. C. D. E. F. Clarke Haase (low solids AD); Oaktech (low solids AD); OWS (high solids AD) Ros Roca (low solids AD); Strabag (high solids AD); and Valorga24 (high solids AD). The aim of the secondary questionnaire was to clarify key points about their technologies and also to confirm the interest of these companies in bidding for a possible future residual waste contract sought by Fife Council. Copies of the returned ‘soft market testing’ questionnaires are attached in Appendix D, together with the completed initial questionnaires of the shortlisted companies. The key objectives of the ‘soft market testing’ exercise were to: 1. Confirm the level of interest and commitment of each shortlisted technology provider in providing AD technology to Fife and bidding for a future contract; 2a Identify any specific technology aspects or provider preferences, of relevance to the Fife project; 2b Identify / confirm details of the proposed Reference Plant(s) and in particular confirm details of their suitability as a reference for the Fife project; 2c Identify / confirm performance efficiency aspect for each technology and identify areas of technology risk; 3. Obtain all necessary information necessary to complete the preparation of a detailed specification to be used in a future procurement process. The information provided through the soft market testing questionnaires was evaluated and compared against each of the above objectives. Objective 1: Interest and commitment to provide AD technology to Fife Council All of the six shortlisted AD technology suppliers provided additional details, re-iterating their interest and commitment to bidding in future for Fife Council’s residual waste processing contract. Objective 2: Specific technology aspects or provider preferences, of relevance to the Fife project Refer details in the following sections. 4.1.1 Project Delivery Each of the short-listed companies is prepared to enter the contract either as EPC contractor or as technology sub-contractor. However, most of the shortlisted companies would seek to 24 Valorga subsequently failed to provide the ‘BMW reduction’ data sought as part of the soft market testing process and were therefore omitted from the final stage of the process (refer section 4.1.4) SLR Consulting 32 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 bid in a partnership with a specialist engineering or waste operating contractor, should they be asked to bid as EPC contractor. Only Valorga offered to be the sole EPC contractor. Oaktech would bid in a consortium with Landmedia Ltd and Monsal Ltd expressed their interest in taking a significant equity stake in the project, including 100% funding of the development in its entirety; they also stated that they are open to the concept of forming a Joint Venture with the Council. The timescale estimates for the proposed project ranged from 20-24 months (Strabag) to 42 months (Valorga) from the point of contract award. This would include detailed design, planning & approvals, construction, and both dry and wet commissioning stages. 4.1.2 AD Treatment Technology Comparison Oaktech, Clarke Haase and Ros Roca all offer a wet anaerobic digestion process whilst OWS, Strabag and Valorga propose a dry anaerobic digestion process. All six technology suppliers were provided with an assumed average waste composition representing Fife Council’s residual household waste and were asked to comment on their choice of technology with reference to the given waste composition. The reasons for the chosen AD treatment plant type given by the suppliers are listed in Table 4-1. Table 4-1: Technology Providers’ reasons given for choice of AD process type Wet (low-solids) AD system Dry (high-solids) AD system i.e. Clarke Haase, OakTech, Ros Roca i.e. Strabag, Valorga, OWS - wet pre-treatment process removes impurities ahead of the digester which avoids sedimentation problems and clogging, and it also ensures a higher digestate/ compost quality. - a dry AD plant treats the whole mass in the digester; whereas a wet system loses a considerable amount of organics (mainly paper) as part of the pre-separation process. - The introduction of kerbside recycling would result in a higher proportion of kitchen waste in the residual waste and therefore a wetter waste feed, which is more suited for wet systems - The dry system is a simple and robust process and therefore not sensitive to changes in the feedstock other than reduced or increased biogas rates, whereas a wet system may develop mechanical problems when impurities increase. - The utilisation of a wet separation/ sorting system allows for the maximum recovery of the biodegradable fraction of the residual waste stream, while also allowing for maximum recovery of recyclable waste streams. - Contaminants such as plastics, glass, stones, etc. will cause problems in wet AD systems. They will deposit or they will float. A dry system does not have these problems because the inert and light materials are captured inside the digesting mass, which moves from top to bottom in a kind of plug flow. - dry systems can handle any type of input and dry solid concentrations up to 45% in the digester. - Maintenance/operating costs are lower as there are relatively few mechanical parts within a simply designed digester. We use biogas recirculation to mix in the digester and hence there are no moving parts within the digester which could fail. - In comparison to other AD technologies especially dry systems, our wet process consumes less energy and therefore more of the energy generated is available for - The energy consumption of a wet system is much higher than the one of a dry system as the mass has first to be converted into a suspension (e.g. big pulpers have up to 300 kW installed power). SLR Consulting 33 Fife Council Organic Municipal Waste Processing by AD: Appraisal Wet (low-solids) AD system i.e. Clarke Haase, OakTech, Ros Roca export. SLR Ref: 405.0698.0010 September 2008 Dry (high-solids) AD system i.e. Strabag, Valorga, OWS Meanwhile a wet AD process of this type needs approx. 70-80 kWh/t input a dry system only has a consumption of 25-30 kWh/t. - in comparison to dry AD technology we believe the capital costs are lower for comparable wet systems. - No sediments in digester, since operates at higher solids content therefore no sedimentation occurs - Lower water consumption/ and discharge - Compact plant layout It is clear from the above that the available low and high-solids systems have both advantages and disadvantages. Whilst dry AD systems tend to be relatively simple, robust and insensitive to feedstock composition changes, wet AD systems can potentially achieve better separation rates for recycling due to the front-end wet-separation that is typically included to separate the heavy and light fractions in a wet pulping process. The respective gas yields of wet digestion process tend to be higher than a typical dry process, due to the higher organic loading in the digesters. However this can be offset by the reduced quantity of feedstock material actually going through the digester, compared to a dry process. Table 4-2 summarises the main characteristics of both types of AD treatment systems that should be considered carefully when choosing an AD technology. Criteria Table 4-2: Summary Comparison of ‘wet’ and ‘dry’ Digestion Process Wet (low solids) AD system Dry (high solids) AD system Costs Capital Costs Typically lower capital costs Typically higher capital costs (refer Strabag, Valorga) including process and infrastructure. Operating costs typically significantly higher than for dry AD, due to high energy demand front-end wet separation (pulper or hydro-mechanical separation), and higher process water and effluent treatment costs. Operating costs typically significantly lower than for wet AD. Plant Footprint Typically requires a larger plant footprint to accommodate wet-separation plant, digestion tanks, pipework etc. Is typically a more compact plant footprint and can be accommodated on a smaller site. Separation of Recyclables Wet process permits better separation / recovery of recyclables at front end, prior to digestion (as process requires addition of significant water to feedstock and removal of non-organic materials prior to digestion). Recovery / removal of non-organic materials prior to digestion is not essential to process and is more difficult under dry separation conditions. Process typically includes only minimal recovery of recyclables (typically metals) at the front-end. Biogas / Methane Yield25 Single-stage wet process is likely to generate higher levels of biogas / Overall biogas / methane yield per tonne of mixed residual MSW Operating 25 The process biogas / methane yield is a function of feedstock composition and specific technology type. Wet digestion will deliver more paper and card organics to the digestion process and therefore give a slightly higher SLR Consulting 34 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 methane per tonne of digester input, but will produce a similar gas yield (per tonne of mixed residual MSW feedstock) to dry digestion. feedstock likely to be similar to that for wet digestion. Digestate Quality In the wet separation process, the organic feedstock stream delivered to the digestion process is higher quality (less contaminants, higher organic content) thus producing a raw digestate of a higher quality than the raw digestate from dry digestion. The raw digestate from a dry process will typically contain a much higher proportion of contaminants (plastics, glass etc); these can be removed by ‘refining’ the stabilised digestate to produce a purer end-product - more similar to that typically produced from a wet process. BMW Reduction across process BMW reduction is a function of biogas yield and the organic content of process offtakes. Wet digestion is likely to divert more of the paper/card organics to the digestion process and therefore deliver a higher BMW reduction per tonne of feedstock input than dry digestion. A higher proportion of the paper/card (oversize) will be diverted away from the digestion process in a dry system. Unless used as RDF it will likely be landfilled, thus providing a lower level of BMW reduction than a wet digestion process. The front-end wet separation of ‘lights’ (plastics) and ‘heavies’ (glass, grit, batteries) make the front-end of the wet AD process more sensitive to feedstock composition changes. In contrast the dry process has minimal front-end separation and therefore is less sensitive to changes in the feedstock composition, or the level of contaminants. Chemical contaminants (e.g. bleach, paint, biocides) will be diluted and mixed by the wet process – although large quantities could still adversely impact the process. Chemical contaminants likely to remain localised in dry digester and move through under plug (unmixed) flow; may cause local failure of digestion process but unlikely to kill off the entire process. Process water demand Wet digestion appears to have a higher ongoing annual process water demand than dry digestion (refer data from Strabag and Clarke-Haase) Dry digestion appears to have a lower ongoing annual process water demand than wet digestion (refer data from Strabag and Clarke-Haase). Process Effluent discharge: Process effluent quantity is a function of the dewatering system and the amount of recirculation through the digestion process. Wet digestion is likely to produce more process effluent for treatment / disposal. The loading of the effluent (COD, ammonia) is dependant on the feedstock composition. Process effluent quantity is a function of the dewatering system and the amount of recirculation through the digestion process. Dry digestion is likely to produce less process effluent for treatment / disposal. The loading of the effluent (COD, ammonia) is dependant on the feedstock composition. Process Sensitivity: Change in feedstock composition Presence of contaminants It is important to note that the attributes of a specific digestion technology should be considered on its own merits; however it is clear from the comparison of the key attributes for generic wet and dry systems that each has its advantages and disadvantages and that both biogas yield than dry digestion. Multi-stage digestion processes are likely to deliver a higher yield than singlestage processes. SLR Consulting 35 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 site-specific and project-specific parameters should be considered before selecting the preferred digestion technology type. The summary in Table 4-2 indicates that in general, ‘wet’ digestion may offer potential benefits over ‘dry’ digestion for processing of mixed residual municipal waste. Although wet digestion may be a slightly more sensitive process, with a higher annual operating cost, it does offer the opportunity to recover more recyclables at the front-end, increase the biogas yield, maximise the diversion of BMW from landfill and deliver a better quality organics fraction to the digestion process, thus minimising the need for post-processing refinement of the digestate, where end-use is being considered. In contrast, a dry process is likely to be less sensitive to feedstock variations, hence requires less maintenance, is more likely to fit onto a smaller site and has lower ongoing annual operating costs. 4.1.3 Animal By-Product Regulations (ABPR) Fife Council’s municipal waste collections is likely to contain some Category 3 ABPR materials, namely uncooked meats from non-kitchen sources, (e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet the Animal Health unit requirements. None of the short-listed suppliers operates a fully ABPR-certified plant treating residual household waste. However, Clarke Haase and Ros Roca operate a number of plants treating food waste or source-separated biowaste in Spain and Germany that comply with the pasteurisation requirements of the ABP regulation, i.e. reducing the size of the waste after the wet pre-treatment to a maximum of 12mm followed by a pasteurisation unit, which treats the accepted waste streams to 70°C for one hour. Ros Roca provide the pasteurisation in three separate tanks, with a minimum retention time of 1 hour in each tank. In the first tank the waste is heated up to 70°C, in the second tank the material is held at 70°C for a minimum of 1 hour, and in the third tank the material is cooled down to 37°C; the temperature of the subsequent anaerobic digestion process. Strabag provided the Western Isles, Scotland with an AD plant, which is ABPR certified for the treatment of source-separated biowaste (Category 3 - catering and kitchen waste only). The system is a dry, single stage, thermophilic process with temperatures at 57-58°C, which is the minimum requirement for catering/ kitchen waste. For Category 3 waste Strabag would also have to include an additional pasteurisation stage. Oaktech and OWS are the only suppliers who have not yet constructed an AD plant treating food waste or other wastes to ABPR Standard (or equivalent). Both companies stated they would include a pasteurisation stage in their process to heat the digested material to 70°C for 1 hour to comply with the ABPR requirements. Oaktech are currently including this in approach in their design for the proposed MBT/AD plant at Avondale, Falkirk. OWS will include a post-digestion pasteurisation stage in Norfolk, where they are preferred bidder for the treatment of residual MSW, including Category 3 catering waste. 4.1.4 BMW Diversion Fife Council will have to progressively reduce the amount of biodegradable material going to landfill to a maximum of 49,042 tonnes by 2019. Table 4-3 shows the forecasted tonnage of residual household waste going to landfill for selected years between 2008 and 2019 (based on the figures provided by Fife Council with an average BMW content of 63%), the required LAS target and the associated surplus/ deficit of organic material without any form of pretreatment of the waste. SLR Consulting 36 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Table 4-3: BMW content of residue going to landfill compared to LAS targets Total MSW residual Total BMW LAS Surplus/ Year waste (= MBT Plant feed) 2008 2009 2010 2011 2013 2019 152,422 147,592 142,508 144,787 144,787 144,787 of MBT plant feed Targets 96,792 93,639 90,320 91,738 91,738 91,738 Deficit 110,006 104,413 92,812 81,210 66,671 49,042 13,214 10,774 2,492 -10,528 -25,067 -42,696 It can be seen that without any form of further treatment of the residual household waste Fife Council will exceed their LAS targets from 2011 onwards. By 2019 Fife Council would exceed its BMW landfill allowance by almost 43,000 t/a. In order to meet the LAS requirements the AD technology suppliers must be able to divert at least 46.5% of the incoming BMW long-term. The aim is to achieve the diversion by the degradation of the organic material during the digestion process. However, if the produced digestate is used as daily cover or as low grade soil conditioner for landfill restoration, considerable amounts of biodegradable material may still be deemed to be going to landfill. Based on the information provided by each AD supplier the total BMW diversion was calculated and compared to Fife’s required LAS targets, in order to assess the suitability of each of the proposed AD technologies to meet the required targets. NOTE: The AD supplier Valorga did not provide sufficient information to allow for a comparison with other technologies. Information on key issues, such as BMW diversion, energy requirements and ABPR were not provided by Valorga. As a result this company was excluded from the final stages of the review. Table 4.4 compares the estimated BMW diversion that each of the five remaining technology providers can achieve with their proposed system. NOTE: The technology performance data are purely based on information provided by the suppliers and are not subject to a detailed due diligence process. As part of this review it was not possible to verify the received information, e.g. by visiting/ or reviewing data from operating plants. The accuracy of the stated BMW diversion (and other process indicators) should therefore be viewed with caution. The table shows the BMW diversion rate based on the design throughput to the MBT/AD plant of a nominal 140,000 t/a residual waste comprising an average of 63% BMW. Table 4-4: Projected BMW diversion in 2010 based on 140,000t/a plant throughput INPUT BMW (%) BMW (t) OUTPUT Pre-treatment / Recovery bulky items heavy fraction Clarke Haase 140,000 63 88,200 Oaktech OWS 140,000 63 88,200 0 12,838 8,600 45,354 SLR Consulting Strabag 140,000 63 88,200 Ros Roca 140,000 63 88,200 0 20,000 0 25,200 0 24,500 140,000 63 88,200 37 Fife Council Organic Municipal Waste Processing by AD: Appraisal BMW (%)1 BMW (t) RDF (mainly plastics) Metals Mixed plastics Glass Plastic film Inert materials (sand) Digestion heavy rejects 1 heavy rejects 2 (mainly inerts) BMW (%)2 BMW (t) light rejects (RDF) low fuel CV Digestate BMW (%)3 BMW (t) Low grade soil conditioner from aerobic stabilisation BMW (%)4 BMW (t) Total BMW landfilled (%) Total BMW landfilled (t/a) Total BMW diverted (%) Total BMW diverted (t/a) SLR Ref: 405.0698.0010 September 2008 Clarke Haase 50 6,419 63,956 5,530 0 0 0 0 Oaktech 50 22,677 0 5,440 17,136 5,600 0 18,253 4,812 9,981 25 2,495 6,777 8,620 21,099 45% 9,495 0 21% 18,409 79% 69,791 Strabag 50 10,000 35,000 7,000 2,100 0 0 0 Ros Roca 50 12,600 0 5,130 17,145 0 0 25,200 0 0 0 7,000 0 0 0 6,125 25 0 0 0 33,750 49% 16,537 0 25 1,750 0 0 35,000 45% 15,750 0 25 0 0 0 33,340 50% 16,960 20,840 25 1,531 0 0 29,225 45% 13,150 0 31% 27,500 69% 60,700 55 11,462 41% 36,437 59% 49,639 31% 26,931 69% 61,269 44% 39,214 56% 48,986 OWS 50 12,250 0 2,800 19,250 0 0 0 Notes: 1) Heavy fraction contains material such as contrary items, fines, textiles and other organics; therefore BMW content of 50% assumed 2) Heavy rejects mainly contain glass and sand, but may also contains some fines; therefore BMW content of 25% assumed. 3) BMW content of digestate used as provided by suppliers. 4) Ros Roca send part of the digested material and part-of the pre-sorted organic material to maturation; BMW content of aerobically stabilised organics assumed to be 55% The actual BMW diversion achieved depends on the chosen separation process (i.e. additional recovery of RDF) and whether the produced digestate is dried prior to landfill. As shown in Table 4.4 approximately 15-25% (by weight) of the material will leave the process as the so-called “digestate”. The digestate can be used as low grade soil conditioner for landfill restoration. It has to be noted that this material still contains a significant amount of biodegradable material and if disposed of to landfill will therefore adversely impact the Council’s LAS allowances. Higher diversion rates could be achieved by using the produced digestate as refuse derived fuel for Energy from Waste plants or Cement Kilns26, as was suggested by Clarke Haase who, as a result, achieve the highest BMW diversion rates (see Table 4.4). The comparatively low BMW diversion rates forecast by Oaktech and Ros Roca are due to the high amount of heavy solids/ organics being separated for landfill during the pretreatment process (Oaktech) or for post-maturation (Ros Roca). 26 This assumes these end-routes are available to Fife Council (which is not currently the case). SLR Consulting 38 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Based on the data provided by the suppliers, between 56-79% of the total biodegradable material can be diverted from landfill by treating the material in an anaerobic digestion plant. As a result, all of the shortlisted AD technology suppliers claim to be able to achieve the required BMW diversion (43,000t/a from 2019 onwards) just by producing a low grade soil conditioner for landfill restoration. As highlighted in Section 2.2, the quantity of BMW that requires to be diverted from landfill may increase (to 53,285 t/a) in the event that Fife Council is not able to increase the kerbside recycling rate above 41%. This would result in Oaktech and Ros Roca potentially not achieving the required LAS allowance from 2019 onwards, without some alternative use being found for the digestate other than landfill disposal. There are other options to increase the BMW diversion performance. These include drying the digestate to produce an RDF/SRF/biomass fuel, or refining the digestate to produce a ‘compost like output’ (CLO) and these options would have to be investigated with possible technology these two suppliers at a later stage in order to ensure secure the required level of long-term BMW diversion. 4.1.5 Energy Balance and Biogas Yield All companies were asked for the parasitic electricity requirements of their process and the expected gas yield per tonne waste feedstock. These data were then used to calculate the expected excess electricity available for supply into the national grid. The parasitic requirements for the waste treatment plant can be split into (a) mechanical pretreatment and (b) anaerobic digestion. The specific gas yield is related to the mechanically pre-treated waste fraction fed to the AD plant, unless stated otherwise. The assumed overall annual waste tonnage to be treated, and therefore the amount going to the anaerobic digestion plant, varied between suppliers. In order to be able to compare the total gas yields and their resulting energy production the specific gas yield for each technology was calculated and then used to calculate the total biogas generation of a 140,000t/a plant. The electrical efficiency of the CHP gas engine is assumed to be 38%. Only two of the shortlisted companies (Oaktech and Strabag) provided their parasitic thermal heat requirements and so SLR made assumptions for the others. It can however be assumed that the CHP engine produces sufficient heat to meet the plant’s total heat demand including process and non-process (e.g. space and office heating). Table 4-5 provides a summary overview of the energy balance for the shortlisted technologies. Table 4-5: Energy Balance Overview of Shortlisted Technologies Energy Clarke Oaktech OWS Ros Roca Strabag Haase Waste to AD plant (t/a) Biogas yield (Nm 3/t feedstock/a) Total biogas generation (m3/a) Total biogas generation (m3/h) CH4 content (%) Total Energy produced (kWh/a) 58,000 76,000 90,000 89,000 87,000 116 134 120 90 105 6,768,000 10,172,000 10,800,000 8,046,000 9,132,000 773 1,161 1,233 918 1,043 60 70 55 60 60 40,608,000 71,203,000 59,400,000 48,276,000 54,794,000 SLR Consulting 39 Fife Council Organic Municipal Waste Processing by AD: Appraisal Energy Total electricity produced (kWh/a) Total electricity produced (MW) Electricity demand AD plant (kWh/tinput) Electricity demand ancillary equipment (kWh/tinput) Total electricity demand (kWh/a) Excess electricity to grid (MW) Notes: SLR Ref: 405.0698.0010 September 2008 Clarke Haase Oaktech OWS Ros Roca Strabag 15,431,000 27,057,000 22,572,000 18,345,000 21,370,000 1.76 3.09 2.57 2.09 2.44 90* 92 30 90* 30 60* 25 50 50* 18 8,752,000 8,892,000 11,200,000 12,516,000 4,175,000 0.76 2.07 1.30 0.67 1.96 1) The energy content of 100% CH4 is 10kWh/Nm3 2) *Italicised figures have been assumed by SLR, based on the data provided The amount of waste feed going to the AD process depends on the extent and the efficiency of the mechanical pre-separation process. Additionally, the choice of AD system (wet or dry) influences the parasitic energy requirement. As can be seen in Table 4-5 a dry AD system (e.g. Strabag / OWS) has significantly lower parasitic energy requirements than a wet AD system. As a result the energy production and the available excess electricity available for export can vary considerably between the suppliers. The best value for an initial comparison is therefore the specific biogas yield (expressed as Nm3/t feedstock). With a projected 134 Nm3/t biogas production, Oaktech claim to provide the highest biogas yield, well above the average of other processes (usually between 100-120 Nm3/t). However, these figures are projections only and Oaktech remain to be verified. These figures should therefore be viewed with caution and be reviewed in more detail at a later stage (e.g. feasibility, procurement). 4.1.6 Recyclate Recovery Recyclables are recovered as part of the mechanical pre-treatment process. The type and the amount of recyclables recovered depend on the chosen separation technologies, but as a minimum include the separation of Fe-metals and non Fe-metals. Some companies also include a post-treatment segregation to extract i.e. dense plastics and/or glass for recycling. Clarke Haase and OWS offered to produce an RDF from the recovered materials and from the produced digestate. However, RDF does not count towards recycling and was therefore not included as recyclate. Table 4-6 shows the total amount of reyclables recovered by each company. Additionally, it lists the amount of produced RDF and the amount of material degraded (and converted into biogas) as part of the anaerobic digestion process. Both of these products count towards material recovery (but not recycling targets). The digestate produced by residual waste processing through MBT/AD facilities has only limited end use options; these include: (a) disposal of to landfill (at a reduced BMW content); (b) use as a CLO for landfill restoration works or other land restoration works and (c) dried for use as a low-CV RDF material. While the performance assessment in Table 4.4. is based on disposal of the digestate to landfill, it should be noted that both the BMW diversion (and the recycling performance of the facility) would increase considerably, should it be possible to use the digestate from these facilities as “Compost Like Output” (CLO). This improved performance is illustrated in Table 4-6. SLR Consulting 40 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Table 4-6: Materials Recovery for Recycling, RDF and CLO end use Clarke Haase Recycled materials Fe-metals (t) Fe-metals (%) Non Fe-metals (t) Non Fe-metals (%) Plastics (t) Plastics (%) Glass (t) Glass (%) Total recycled (t/a) Total recycled (%) Materials recovered RDF (high CV) (t) RDF (high CV) (%) RDF (low CV) (t) RDF (low CV) (%) Biodegradation to biogas (t/a) Biodegradation to biogas (%) Total recovered (t/a) Total recovered (%) Produced digestate (t/a) Produced digestate (%) Notes: Oaktech OWS Ros Roca Strabag 3,160 2.3 2,370 1.7 0 0.0 0 0.0 5,530 4 3,780 2.7 1764 1.3 17,136 12.2 5,600 4.0 4,900 3.5 2,100 1.5 2,100 1.5 0 0.0 4,550 3.3 580 0.4 17,145 12.3 0 0.0 2,275 1.6 525 0.4 19,250 13.8 36,680 26.2 9,100 6.5 22,275 16.0 22,050 15.8 70,765 50.5 8,610 6.2 6,995 0 0 0 0 10,021 35,000 25 0 0 0 0 0 0 0 0 0 0 10,000 9,330 10,958 5.0 7.2 7.1 6.7 7.8 86,370 61.6 21,100 10,021 7 30,000 45,000 32.1 35,000 10,958 7.8 30,325 15.1 21.4 25.0 9,330 6.7 33,340 + 20,8501 38.7 0 0.0 21.7 1) Includes 20,850t/a from aerobic stabilisation process According to the received data, Oaktech claim by far the highest recycling recovery rate with their application of a hydro-mechanical separation process. Strabag and Ros Roca also achieve high recovery rates by separating dense plastics for recycling. The comparatively poor recycling rates achieved by Clarke Haase and OWS could potentially be improved by recovering the plastics for recycling rather than producing an RDF. The availability of an enduser market however, depends on the quality (purity) of the separated material and would have to be valued against the end-market for RDF to establish the preferred route for maximised revenue. 4.2 Technology Risk Assessment A detailed technology performance and risk matrix for MBT/AD technology is provided in Appendix G. For a generic MBT/AD solution, this presents: performance criteria; likely failure / underperformance scenarios; mitigation measures that should be taken during the procurement and contract process; and the likely profile of risk allocation between the parties. This detailed generic risk assessment template should be applied to prospective technologies at the time of feasibility study / procurement. A full risk assessment of each of the shortlisted AD technology providers has not been undertaken, as this would require a due diligence of each technology. However a broad comparison of the main attributes of wet SLR Consulting 41 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 and dry digestion is provided in Table 4-2. Based on this and the data provided by technology companies, the likely risk profile of each technology provider is set out in Table 47. Table 4-7: Technical Risk Profile – by AD Technology Provider Risk Element 1 2 3 4 5 6 7 8 9 10 11 12 13 Feedstock Composition Plant Capacity Plant Availability / Reliability Materials Recovery Biogas Production BMW Reduction ABPR Compliance Digestate Quality Plant Energy Demand Process Water Demand Process Effluent Output Odour Emissions Noise Emissions Clarke Haase □ Oaktech OWS □ ▪ Ros Roca □ Strabag ▪ □ ▪ □ ▪ ▪ ▪ □ ▪ ▪ □ □ ■ ■ ■ □ □ ■ □ ■ □ □ □ ■ □ ▪ □ □ □ ▪ □ □ ■ □ ■ ■ ■ □ ■ □ ■ ■ □ ■ □ ■ ■ □ ■ □ □ □ □ □ □ ▪ ▪ ▪ ▪ ▪ ▪ ■ High Risk □ Moderate Risk ▪ Low Risk 1) Feedstock Composition: Oaktech’s hydro-mechanical separation system assumed to be as susceptible to impurities as other wet treatment systems 2) Plant Capacity: relatively low risk applies to all technologies. 3) Availability / Reliability: wet digestion systems are more complex and therefore likely to be more prone to failure of front-end mechanical handling systems. 4) Materials Recovery: Higher levels of materials recovery likely from more sophisticated frontend separation typically associated with wet digestion systems. 5) Biogas: potential for higher biogas yield from wet digestion systems. 6) BMW Reduction: Typically the same across all single-stage digestion processes – although typically, wet digestion diverts a higher proportion of organics to the digestion process. 7) ABPR: Only Strabag have ABPR compliant plant, CH and RR have technology for ABPR equivalent (EU regs) compliant plant treating food waste. Oaktech has still to implement this. 8) Digestate Quality: Raw digestate from wet systems typically of higher quality than from dry system. 9) Plant Energy Demand: Less energy consumption with dry systems (i.e. no pulper required). Oaktech may have highest consumption due to hydro-mechanical pre-treatment process 10) Process Water: wet systems have a higher process water demand. 11) Process Effluent: significantly more effluent discharge from wet systems; this can be problematic when discharge parameters are exceeded. 12) Odour: all biogas plants are potentially odorous –from both the waste reception / handling system and the biogas compound (which is typically not housed). SLR Consulting 42 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 13) Noise: Low risk applies to all plants, subject to mitigation measures for individual noisy plant items (e.g. CHP engines, compressors, pumps). 4.3 AD Technology Provider Shortlist (Residual Waste) The key findings from Objective 2 were used for a detailed process review of each technology. The findings of the review were added to the model specifically developed for this evaluation (see Section 3.1) and then used to amend the shortlist of those technologies / providers who have been confirmed as having suitable technologies to meet the requirements of the Fife project and also the interest in bidding for this project in time. The revised shortlist is shown below: Supplier 1 2 3 4 5 6 Strabag OWS Ros Roca Clarke Haase Oaktech Valorga Overall Score 0.686 0.672 0.664 0.608 0.571 0.514 A Technology Summary Sheet for each of the shortlisted AD technology suppliers is attached in Appendix F. 4.4 Additional Option: AD processing of source-separated biowaste As an extension to the original scope of works, Fife Council requested that SLR include a review of AD technology providers that are capable of providing digestion technology for source-segregated biowaste and have experience and track record in the ‘biowaste to AD’ sector. With regards to the above, the shortlisted technology suppliers were contacted once again and asked about their interest and capability in providing a solution to Fife Council for the treatment of source-separated biowaste only. The dewatered digestate output from sourceseparated biowaste AD processing can potentially be classified as a compost product, if it is (a) treated in compliance with ABP regulations and (b) meets the requirements of the current PAS:100 or the future PAS:110. If the digestate output is certified to meet the PAS:100 or 110 standards, the material is no longer classified as a waste and is free to be used in a number of applications – as required by the compost market, e.g. landscaping, agriculture, horticulture and garden centres. The digestate material used in this way would (a) contribute towards Fife Council’s recycling / composting targets, (b) contribute also to their LAS obligations and (c) also potentially attract revenue. Each of the 527 shortlisted AD technology suppliers was contacted by SLR by telephone in order to assess their interest in providing a waste treatment facility for source-separated biowaste only. Interested suppliers were issued a brief supplementary questionnaire. The Norwegian supplier Cambi, who previously withdrew from the original residual waste treatment technology review, was also contacted, since they had expressed their interest should Fife Council consider the treatment of source-separated biowaste only. 27 Due to the previous lack of information provided by Valorga, this company was excluded from further review and was not contacted again. SLR Consulting 43 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Oaktech was the only supplier who would opt out of bidding for a contract treating sourceseparated biowaste only, since their technology is specifically designed to process residual waste. They were therefore excluded from this part of the review. 4.4.1 Scope for a MBT (AD) plant treating source-separated household waste In 2006/7 Fife Council reported that around 36,300t of kitchen waste, 9,800t of garden waste from the household collection and 4,700t/a of food from commercial premises was sent to landfill (as part of the Council’s residual municipal waste collection and disposal arrangements). Based on the projected annual waste growth of 2% (to 2010) and 0% thereafter, these tonnages will grow by 2010 to around 39,300t/a kitchen waste, 10,600t/a garden waste and 5,000t/a commercial organics (assuming no alterations are made to the current collection schemes). This equates to a total of around 55,500t/a of organic waste, suitable for anaerobic digestion, as present in the residual waste stream. A significant proportion of this, and particularly of the kitchen waste, could be collected as a source-segregated biowaste as a feedstock for a source-segregated AD plant. Under this arrangement, the existing separate green waste collection and composting arrangement would remain unchanged, with the separate biowaste collection being predominantly food or food processing wastes. Because of the high nitrogen / low carbon content of many food related wastes, the inclusion of some green waste in the feedstocks mix may be required to maintain the C:N ratio within the optimum range for the digestion process28. Based on an assumed kerbside collection scheme that covers around 90% of all Fife households and commercial food waste producers and a material diversion rate of 0.6 (based on participation x capture), which is graded as “excellent”29, this would generate a total AD Plant feedstock of around 29,970t of biowaste. Each of the technology providers were therefore asked to base their additional data on an AD Plant with an assumed annual throughput capacity of around 30,000 tonnes. The following sections contain a summary of the detailed responses received. 4.4.2 Alteration to technical scope of appraisal Question 1: How would the scope alter for the mechanical pre- and post treatment? The separation of biowastes at source usually significantly reduces the amount of contaminants in the waste fraction and therefore does not require a sophisticated pretreatment system. However, depending on the collection area (i.e. flats or houses, rural or urban) there will still be a certain percentage of contaminants in the biowaste. The amount of contaminants ranges usually from 2-10% and heavy contaminants such as metal and glass should be largely removed to prevent long-term abrasion damage / wear to the equipment. Lighter contaminants such as plastics require removal to improve the appearance of the end product – although this is typically carried out at the back-end of the process, as part of the product refinement / stabilisation process. 28 Optimum methane production is expected at a C:N ratio between 20:1 and 30:1. Outside this range, process efficiency is reduced and digester failure may result. A low C:N ratio causes ammonia accumulation, high pH values and digestion inhibition. Optimum C:N ratios of the digester materials can be achieved by blending feedstocks that are high in nitrogen (e.g. food wastes, animal manure) with high carbon feedstocks (e.g. garden waste and paper / card). 29 WRAP/ MEL study on achievable kerbside collection diversion rates, 2006 SLR Consulting 44 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Compared to facilities treating MSW the mechanical pre-treatment for a plant treating sourceseparated biowaste is significantly reduced. The extent of the pre-treatment however can be defined by the Council, depending upon its confidence regarding the quality of the material, which was collected at the kerbside. Generally, it includes as a minimum: Shredder; Fe-separator; and Trommel screen (with undersize to AD process). The treated material will have to be dewatered and then refined and followed by aerobic post-maturation, depending on the required quality. The compost may also be screened again to achieve different grades of compost quality. The proposed scope of the shortlisted suppliers is shown in Table 4-8: Table 4-8: Suppliers scope for mechanical pre-/ and post-treatment Mechanical pre-/ post-treatment Scope Supplier Cambi Cambi offer a comprehensive contaminants separation technology. It includes front-end screen, a Fe-separator and a mixing tank where floating and sinking materials will be separated (mainly plastics, inerts and grit). Clarke Potentially significantly reduced scope, depending on the quality of the collected Haase biowaste. As a minimum, items such as glass and metals need to be removed. In addition sand will be a key consideration. This material is often not picked up by waste characterisation studies but is directly related to grit, egg shells, bones and other material that can be found in food waste. OWS Much simpler than the pre-treatment of mixed MSW. Only shredders and screens needed to obtain <40-50mm fraction, plus magnet for ferrous metal removal. The post-treatment would be a forced aerobic maturation for about 2-3 weeks followed by screening for further contaminant removal to produce high quality compost. Digestate would have to be dried prior to aerobic maturation. Drying could be done by a) mechanical dewatering press, b) adding fresh (drier) green waste or structure material like matured compost or c) using a dryer, powered by the heat of the biogas engines. Ros Roca Assuming, an average level of impurities of 2-4%, the scope of the mechanical pre-treatment will be much reduced. Our process has a wet pre-treatment stage ahead of the digester, which will ensure a high quality of digestate is produced. In combination with our sanitation/pasteurisation process this will ensure that post treatment will also be limited. Strabag At minimum requirements significantly reduced pre-treatment package with crusher, Fe-separator, trommel screen 50mm, and cutter for >50mm material. Post treatment may include post-maturation and further screen. Clarke Haase additionally advised on the collection method, should this option be chosen. The standard method of collection for food waste is becoming starch bags. These bags do not degrade in digesters in the residence time planned. Typically these bags would also require removal prior to digestion. Clarke Haase’s advice is therefore that paper bags may be a more appropriate method of collection for an anaerobic digestion based strategy. SLR Consulting 45 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 4.4.3 Plant performance treating source-separated biowaste Question 2: What would the design performance parameters be ? In Table 4-9 the design performance parameters provided by each supplier for a sourceseparated biowaste feedstock AD facility, treating 30,000t/a of source-separated biowaste are compared to the original specification for the treatment of 140,000-160,000t/a of municipal solid waste (shown in italics). Table 4-9: Design performance parameters for 30,000tpa source-separated biowaste AD plant Cambi Plant footprint (Ha) Biogas yield (Nm3/t feedstock) Biogas quality (% CH4) Digestate quantity (t/a) Residuals to landfill (t/a) Notes: 0.90 (N/A) 100-150 (N/A) 65 (N/A) 4,200 (N/A) 6,500 (N/A) Clarke Haase No info (2-3ha) No info (116) 55-60 (55-65) No info (21,100) No info (10,021) OWS 1.00 (3ha) 120-140 (120) 55 (55) 26,0002 (35,000) 600-3,600 (45,000) Ros Roca Strabag 0.601 (No info) 120-150 (90) 65-70 (60) 10,000 (30,500) 3,000– 4,500 (9,330) 0.80 (<2ha) 135 (105) 60-65 (60) 20,000 (30,325) 5,000-10,0003 (10,958) 1) excluding post-treatment 2) before dewatering 3) depending, on re-use of structural material Depending on the type of digestion technology (wet or dry), the plant footprint for a 30,000t/a facility can be less than a third of that of a full-size MSW MBT/AD plant. Although the building layout can be much smaller compared to the MSW treatment plant, it may still require a similar number of digesters, the gas treatment area and also extra space for postmaturation. According to the information provided by the suppliers, the specific biogas yield from biowaste is on average 20% higher than the biogas yield from the organic-rich fraction of MSW30. This could be expected due to the naturally higher level of impurities in the municipal solid waste fraction. The actual biogas yield that can be achieved depends on the quality of the input material. NOTE: some caution is required in the interpretation of this; while biomass will give off more gas than residual waste, the rate of biogas production per unit of biomass will be identical. The biogas quality (methane content) was quoted to be in the range of 55-70% (again, depending on the quality of the input material). This is slightly higher than the methane content of biogas produced using MSW feedstock. The advantages of the elevated methane concentrations are: (a) the total energy produced (and hence the available heat & electricity) will be higher, and (b) it is more likely that the minimum concentration of CH4 required by the gas engine suppliers will continuously be met. The quantity of the digestate depends on the chosen post-treatment options. Initially the digestate will have to be dewatered to 30-40% dry solids in order to enable a good aerobic post-maturation process or as a minimum to reduce transport costs, should the material be 30 It is important to note that the unit rate of biogas production per tonne of biodegradable feedstock remains approximately the same between both source-segregated and residual waste AD processes. SLR Consulting 46 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 used for agricultural purposes only. All suppliers proposed to mix the digestate with structural material and to compost it aerobically for an additional 4-6 weeks in order to produce quality compost. Should this post-maturation stage be chosen, the quantity would reduce by a further 10 – 15%. On average an overall reduction of 25-30% of the input material can be expected. Cambi quoted that only 20% of the input material would be converted into quality compost. However, without further details it is not possible to assess why they are well below the average. The suppliers quoted that 2-20% of the input waste will have to be disposed off to landfill. For comparison, the amount that has to be disposed off to landfill treating MSW is between 40 and 70%. The exact amount depends on the input quality of the material and also on the desired quality of the product. Compost aimed for the agricultural market can be of lower grade, hence less screening is required whilst it is required to meet strict specifications for high quality compost, reducing the amount that is actually usable. 4.4.4 Product market Question 3: Do you have any reference plants for the treatment of source-segregated biowaste that comply with ABPR and/ or the composting standard PAS100 (or equivalent)? Each of the shortlisted suppliers has a number of reference plants treating source-separated biowaste. The plants treat feedstock tonnages in the range 4,000 – 75,000t/a using both wet and dry anaerobic digestion as well as post digestion maturation via tunnel composting. Clarke Haase, OWS, and Strabag claim that some of their reference plants produce quality composts in accordance with relevant national composting standards, although no further details were provided. Each of the suppliers would guarantee to meet the PAS:100 specification, as currently written. Question 4: If yes, do you have an outlet market for the produced CLO? Not all of the suppliers are also plant operators and therefore are not responsible for the sale of any compost product. However, they all guaranteed that the required quality parameters would be met in order to sell the product. Table 4-10 summarises the responses of the suppliers. Table 4-10: Suppliers outlet markets for produced compost Supplier Mechanical pre-/ post-treatment Scope Cambi No outlet market yet. However our client “Ecopro” has just started to screen the market for outlet solutions/ possibilities (most likely for agricultural use). Clarke Many markets can be found for this type of material. This is clean as it derives Haase from source-segregated wastes and once processed according to the future digestate Quality Protocol will no longer be considered to be a waste material. OWS Outlet markets are a matter for the operator of the plant. We will only guarantee the necessary output parameters. If these parameters are obtained it should be no problem to go to the outlet markets for which these parameters are described. Ros Roca Ros Roca does not operate any of the plants it has built and therefore does not get directly involved in the disposal of digestate. However, all of the 5 plants have an outlet for the digestate. The best example is Vasteras in Sweden which was an EU funded project which is jointly owned by the municipality, the local energy company and a farmers co-operative. The farmers co-operative takes all of the SLR Consulting 47 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 solid and liquid digestate for use back on the land as a substitute for chemical fertiliser. We would encourage representatives of the Council to visit this plant to see at first hand the opportunities not only for digestate use, but also biogas upgrade as the biogas produced is used to fuel Council vehicles. Strabag No outlet market yet, but the potential is definitely there for digestate from sourcesep biowaste. 4.4.5 Expected timescale Question 5: What would the expected timescale for a 30,000t/a plant be? The timescales quoted by the suppliers are similar to those quoted for the construction of a 140-160,000t/a MBT (AD) plant for MSW with the average overall timescale of 20-26 months, split as follows: Design: Construction: Commissioning: 6-8 months 12-18 months 4-9 months Only Clarke Haase quoted a significantly shorter timescale, of 12-15 months. However, a detailed breakdown was not included. 4.4.6 Financial implications The capital costs and the operational costs of a MBT (AD) plant for source-separated biowaste are reviewed as part of Section 5 (Financial Appraisal). SLR Consulting 48 Fife Council Organic Municipal Waste Processing by AD: Appraisal 5.0 FINANCIAL APPRAISAL 5.1 Cost Data Provided by Technology Providers SLR Ref: 405.0698.0010 September 2008 5.1.1 Costs provided for the MBT (AD) facility treating MSW The financial information received from each AD technology supplier was compiled and appraised in light of the existing data in SLR’s in-house database on AD plant costs. The appraisal included verification against ‘real-life’ experience on recent AD development projects, thus ensuring a good level of accuracy of the information received and presented. Each supplier was asked to provide the estimated capital and operational costs for the proposed plant. Capital costs were split into site infrastructure / civil works costs; pre-treatment costs (e.g. materials recovery for recycling, feedstocks preparation); and anaerobic digestion process costs. Only Strabag and OWS provided an estimate for the civil costs, based on a ‘generic’ site. Strabag’s civils costs included the cost of the construction of 4 concrete digesters and therefore are unlikely to be directly comparable to the other providers (including the other dry AD provider, OWS), who use steel tanks for their digestion systems. Each company based their proposal on a slightly different throughput capacity for the MBT/AD plant. The rate of cost increase with increasing throughput depends on additional requirements (i.e. additional digester, bigger pre-treatment equipment or wider conveyor belts) and can therefore not be forecasted without more detailed information. Table 5-1 summarises the estimated capital costs and the associated throughputs provided by the suppliers. Each company also provided an estimate of their forecast operational costs. Strabag was the only supplier who provided a detailed breakdown of their operational costs. These are shown below: Repair and maintenance cost equipment 4% (of 30 M/year) Repair and maintenance civil works 0.5 % (of 45 M/year) Electrical Energy 41 kW/t Staff costs 250 days, 2 shifts, 7 operators/shift Mobile Equipment (wheel loaders, fork lift, truck) Water 10,000 m³/year Wastewater 15,000 m³/year £1,200,000 £225,000 £480,000 560,000 £55,000 £20,000 £90,000 All other suppliers did not detail the origins of their operational costs. It is therefore not clear what is actually included and thus, these costs should be viewed with caution. The capital costs for a 140,000-160,000 t/a MBT (AD) plant vary significantly between suppliers, ranging from £21m - £30m for the AD plant and pre-treatment, excluding civil costs. This may partly be due to the mechanical pre-treatment equipment chosen by the technology suppliers. Partly it will also be due to the chosen annual throughput and the engineering design costs. Nonetheless, this price range is seen to be a good guideline for Fife Council’s future procurement review. SLR Consulting 49 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 The capital costs were only supplied by Strabag and OWS and are believed to be significantly above the average civil costs of the other shortlisted suppliers. This is due to Strabag including the provision of four concrete digesters (each of dimensions, 30m x 12m x 7m) for their dry anaerobic digestion system. Although OWS have not specified the material of their digesters, they traditionally use steel tanks. Their capital costs (£85 million for a 160,000tpa plant) therefore appear unusually high. However, since no details of the composition of the capital costs were provided it is difficult to assess the reason for their high capital cost. Again, the operational costs vary between suppliers with the operational costs ranging from 15-26 £/t input. Due to Strabag’s provision of detailed operational costs it can be assumed that their operational costs of around £19/tonne31 provide a good guidance for Fife Council. This is also comparable to the information provided by Clarke Haase. The comparatively high operating costs for Oaktech may be due to their hydro-mechanical pre-treatment system and the associated maintenance required. The operational costs quoted by Ros Roca would equate to £5/ tonne based on their provided capital costs. This is believed to be highly optimistic and it is recommended that Fife Council consider this to be an underestimate until confirmed at a later feasibility or procurement stage. 5.1.2 Option: Costs provided for the AD facility treating source-separated biowaste Similarly to the data provided for the MSW treatment review (Section 5.1), the suppliers were asked to provide the estimated capital and operational costs for an AD plant treating 30,000t/a of source-separated waste. The capital costs for a 30,000t/a MBT (AD) plant for source-separated biowaste vary between suppliers, ranging from £6m - £10m for the AD plant and pre-treatment and excluding civils costs (which typically will equate to up to 40% of the total capital cost). Again, only Strabag provided an estimate for the civil costs, which they quoted as £9 million. OWS quoted the capital costs to be between £20-25m, and Cambi quoted £18m; it can therefore be assumed that they also included the civil costs. In conclusion, it can be said that the average investment costs for a waste treatment plant treating biowaste only is approximately one third of the costs of a MBT (AD) plant treating 140,000 – 160,000t/a of MSW. The operational costs provided by the suppliers were with £15-25/t (or 1.5% - 3%), i.e. slightly lower than those provided for the MSW treatment plant. 5.2 Project Development Costs Summary A summary of the project costs for an MBT/AD plant to treat Fife’s residual waste – based on data provided by the various technology providers for the MBT/AD plant treating MSW, is presented in Table 5-1. 31 Based on an annual operating cost of £2.63 million and an MBT Plant capacity of 140,000 tpa. SLR Consulting 50 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Table 5-1: Project Costs Summary Comparison (Residual Waste AD) MBT Plant throughput (t/a) Organic waste to AD (t/a)1 Capital Costs: Civil costs (£m) Pre-treatment (£m) AD plant (including gas treatment (£m) Total capital costs (£m) Operational costs Estimated total Capex (£M)2 Estimated total Opex (£M/a) 25 year total cost (£M)4 Unit Cost (£/t, MBT) Unit Cost (£/t, AD) Clarke Haase 160,000 Oaktech OWS Ros Roca Strabag 140,000 160,000 120,000 140,000 58,000 76,000 105,000 89,000 87,000 excluded n/a n/a excluded n/a n/a included n/a Excluded n/a n/a 45 22 28 85 21 75 3.5% of Capex (£19) n/a Capex3 3% of (£9/t) 30 15-25 £/t 26 £/t 15£/t 37 47 85 35 75 3.20 3.64 2.40 1.05 2.62 117 29.2 80.7 138 39.4 72.6 145 36.2 55.2 61 20.3 27.4 140 40 64.4 Note: Based on exchange rate 14 April 08: 1 Euro = £0.7983 1. For wet process, the separated organics stream is relatively uncontaminated; in a dry process it will include a significant proportion of non-organic contaminants. 2. Assumes civils costs = 40% of total capital costs. 3. Ros Roca’s operating costs appear low and are considered to be a significant underestimate. 4. Excludes cost of borrowing to fund project 5. Excludes cost of seeking viable end-use markets for key outputs: e.g. use of RDF output as a fuel (£25-35/t); landfill disposal of dewatered digestate fibre (~£20/t plus tax); soil refining and use as a soil conditioner / CLO (£15/t). It should be noted that the findings set out in Table 5-1 are indicative only, since they are based on budget data provided by the technology providers, which in some cases are incomplete and in others appear to be an underestimate. With respect to capital costs, only Strabag and OWS provided an estimate of the civils component; for the other technologies, SLR has assumed a civils cost of 40% of the total capital cost of the site development. Regarding operating costs, the technology providers require a range of different assumptions, which may also have a significant impact on total operating costs to the project as a whole. For example, Clarke-Haase assume that the bulk of the paper goes to RDF; however no markets are guaranteed for end-use of this and therefore this is effectively an additional revenue cost to the project32 of using this technology. Also the dewatered fibre output from the digestion process must be used or disposed of and this also represents an additional revenue cost to the project. If landfilled, the unit cost would likely be ~£20/tonne plus tax; if a medium-long term end-use as a soil improver / CLO33 is available then a lower cost of ~£15/tonne would be incurred for transportation and refining. 32 Most financial models would add a revenue cost of £25-35 / tonne to cover the cost of RDF disposal 33 Refer Sections 1.7.3 and 1.7.4 SLR Consulting 51 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Both OWS and Ros Roca appear to have overestimated the organic content of the MBT feedstock, which suggests that their biogas / energy generation projections (refer Table 5-2) may be overestimated. Another element of the total project operating costs that is often forgotten is effluent processing. Strabag and Oaktech have specifically allowed for this in their costs estimates; the other may not have. The results indicate total capital costs ranging from £35 million to £85 million and annual operating costs between £1.05 million and £3.65 million. The range of operating costs (per tonne of feedstock to MBT) is in the range £29-£40 (excluding Ros Roca, which is considered to be a significant underestimate for residual waste processing). SLR considers the quoted operating costs of £2.40-3.64 million per annum to be a reasonable estimate of real operating costs, including effluent treatment. However where as plant produces RDF as an output, an additional cost of £25-35/tonne should be added to the overall project costs to allow of the end-use of this as a fuel. As a point of comparison for the above capital costs we are aware of recent AD infrastructure procurement projects in other parts of the UK, where the total costs tendered by technology companies for a 75,000 tpa AD plant were £30-£40 million. This highlights the recent steep increase in capital costs demonstrated by the market-place for infrastructure developments – resulting from a combination of higher demand, higher commodity costs, increasing value of the Euro and the impacts form the current credit squeeze. This suggests that the capital costs quoted by Clarke Haase and Ros Roca in the above table are definitely low and in practice for a 150,000 tpa plant would be more likely to around £50 million. This would increase the minimum unit cost of operation to around £33/tonne MBT feedstock input (taking account of all costs over a 25 year period). NOTE: this unit cost excludes the cost of borrowing / funding, operator margin (profit) and revenue generation (e.g. from sales of energy and recyclables and income from ROCs), as well as RDF disposal costs (where this is produced). 5.3 Project Revenue A Council-operated MBT / AD plant will also have the potential to generate revenue from sale of recovered recyclable materials and surplus energy – in the form of electricity and heat. Table 5-2 presents a summary of the potential to generate revenue – based on the data provided from the technology providers: Table 5-2: Project Revenue Summary Comparison Electricity: Total Electricity (GWhr/a) Surplus Electricity (GWhr/a) Sale to grid (@£60/MWhr)1 £k ROCs revenue (@£80/MWhr)2 £k Total Electricity income: £k/a Surplus Heat: Clarke Haase Oaktech OWS Ros Roca Strabag 15.4 6.7 402 1,232 27.1 18.2 1,092 2,168 22.6 11.37 682 1,808 18.3 5.8 348 1,464 21.4 17.2 1,032 1,712 1,634 3,260 2,490 1,812 2,744 Not provided Not provided Not provided Not provided Not provided 3,160 3,780 4,900 4,550 2,275 Recyclables3 Fe (tpa) SLR Consulting 52 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Fe (@£117.50/t)4 £k Non-Fe (tpa) Non-Fe (@£425/t)4 £k Total Recyclables income £k/a 372 2,370 1,007 1,379 444 1,764 750 1,194 576 2,100 892 1,468 535 580 220 755 268 525 223 491 Total Plant Revenue £k/a 3,013 4,454 3,958 2,567 3,235 Notes: 1. Based on surplus electricity only. 2. Based on the applicability of ‘double ROCs’ to electricity generated by AD – as set out in the reformed RO from 1 April 2009. A lower ROC value of £40/MWhr than the current average (£47/MWhr) has been assumed to reflect the likely future rate. This is applied over 95% of total electricity produced – to allow for use of a proportion of ‘non-ROC able’ power by the generating station. 3. Although other materials are recovered from some systems (e.g. plastics, glass) only metals are considered here – as these have the most market security and commercial value. 4. Based on MRW May 2008 (refer section 2.4.2 of this report) – reduced by 50% to take account of expected lower quality. It can be seen from Table 5-2 that the potential income from sale of electrical power34 (including double ROCs) and metal recyclates35 varies considerably and ranges between £2.5 million and £4.5 million per annum. It should also be noted that the figure includes a significant element from ROC sales – at an assumed rate of £40/MWhr, i.e. lower than the current average of £47/MWhr. While future revenue projections are clearly sensitive to changes in the ROC value, it is considered that the above revenue table is a reasonable and cautious estimate of revenue projections associated with a 150,000 MBT/AD plant, and this projected income also excludes any income from heat sales or plastics recycling. 5.4 Net Operating Cost An analysis of the difference between gross and net operating costs is presented in Table 53. Table 5-3: Project Revenue Summary Comparison Clarke Haase Oaktech OWS Ros Roca Strabag 37 3.20 117 46.25 47 3.64 138 58.75 85 2.40 145 106.25 35 1.05 61 43.75 75 2.62 140 93.75 6.53 7.87 10.05 4.19 9.35 Revenue Electricity (sales + ROCs) £k Recyclables (metals) £k Total Plant Revenue £M/a 1,634 1,379 3.01 3,260 1,194 4.54 2,490 1,468 3.96 1,812 755 2.57 2,744 491 2.74 Operating Deficit £M/a Plant Throughput (tpa) Operating Deficit / tonne (£/t) 3.52 160,000 22.0 3.33 140,000 23.8 6.09 160,000 38.1 1.622 120,000 13.52 6.61 140,000 47.2 Gross Costs1 Capital £M Operating £M/a 25 year total £M Cost of borrowing (assumed 5%pa) 25 year Annualised £M/a Notes: 34 Electricity income is based on 2 ROCs / MWh generated (95%) @ £40/MWhr for each ROC. 35 The assumptions on income rates for Fe and non-Fe are set at 50% of the value of the quoted rates for good quality metals in MRW. SLR Consulting 53 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 1. These include the cost of borrowing / funding; these must be included for a merchant facility solution or for a development funded by Council Prudential Borrowing. 2. Ros Roca’s operating costs not considered to be reliable (too low). 3. Excludes cost of seeking viable end-use markets for key outputs: e.g. use of RDF output as a fuel (£25-35/t); landfill disposal of dewatered digestate fibre (~£20/t plus tax); soil refining and use as a soil conditioner / CLO (£15/t). It can be seen from Table 5.3 that the operating deficit for the MBT/AD plant, taking account of the cost of borrowing (at an assumed 5% of capex pa) – i.e. the cost to the Council as operator to run the plant – would range between £22/tonne to £48/tonne (excluding Ros Roca). For a private sector merchant plant the gate fee charged to end users (e.g. Fife Council) would also include a contractor risk and profit margin (up to 25%) over and above this. SLR Consulting 54 Fife Council Organic Municipal Waste Processing by AD: Appraisal 6.0 PROJECT FINDINGS 6.1 Summary SLR Ref: 405.0698.0010 September 2008 The key findings of this report are summarised below: Policy and Regulatory Context: A residual waste MBT plant (using AD) developed by Fife Council would require to be developed within the new policy and regulatory framework introduced by the Scottish Government / SEPA against the background of UK Government financial drivers; the key parameters are: Recycling targets increasing to 70% by 2025 (although an expansion in the definition of recycling is expected, that may include materials recovered through AD and thermal processes); A cap of 25% on the use of thermal processes (including AD of residual waste) for waste treatment; for MSW this is expected to apply to individual authorities’ MSW arisings but is expected to be calculated using only that tonnage of waste actually sent for processing (in this case, the high-organics fraction sent for digestion); Financial support for AD through the government’s ROCs regime, which will allocate 2 ROCs to each MWhr of power generated by AD, from April 2009 for the foreseeable future (2039); Requirement for high-efficiency thermal systems only (minimum energy conversion efficiency of 60%) – to be enforced by SEPA through the development planning and permitting regime; End-use routes for recovery and diversion of the digestate output (as CLO) through application to land for restoration / ecological improvement purposes, as an approved Site Restoration Plan (for live landfill sites) or under ‘Paragraph 7’ or ‘Paragraph 9’ exemptions – subject to approval by SEPA of the site specific risk assessment and / or agreement to ‘declassify’ the output material as a waste. The above parameters would all need to be included as key design parameters for such a plant. BMW Diversion and MBT/AD Plant Sizing: In 2007/8, a total of 252,403 tonnes of controlled wastes was collected by, or on behalf of, Fife Council. The total waste produced is predicted to grow annually by 2% until 2010 and 0% thereafter, reaching a peak of just over 273,000 tonnes in 2011. Of this total waste tonnage Fife Council achieved a recycling and composting rate of 32.5% in 2006/07 and 39% in 2007/8. By 2010 the Council aims to achieve an overall kerbside recycling & composting rate of 47%. NOTE: these recycling targets were developed prior to the introduction of the new waste management policy by the Scottish Government and may be subject to some future discussions and revision (including the method of measurement). Assuming achievement of the 47% recycling target, it was projected that Fife Council’s residual waste would amount to a maximum of 145,000t that would be available for treatment in a future MBT plant with AD of the organics fraction. Assuming the recycling & composting rate of 47% is achieved from 2010/11 onwards, residual waste treatment will be required from this date to meet the Councils LAS obligations - a peak BMW diversion requirement of 42,696 tonnes from 2019 onwards. Should Fife Council not be able to increase the recycling & composting rates beyond 41%, then the BMW diversion requirement to meet its LAS SLR Consulting 55 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 obligations will increase by approximately 10,000t/a, bringing the total diversion requirements to 53,300t/a from 2019 onwards. As a result, the following outline specification for an MBT/AD plant was used as the basis for subsequent discussions with technology providers: Plant feedstock capacity: 120,000 – 160,000 tpa of residual municipal waste Materials recovery (recycling): Maximise recovery of metals, plastics and glass Materials recovery (other end uses): Optional diversion of paper to digestate or RDF; optional diversion of plastics to RDF BMW reduction: Divert up to 53,300 tpa BMW from landfill, from 2019/20 (assuming bulk of digestate disposed of to landfill) Biogas use: CHP with end use / sale of surplus heat and power ABPR status: ‘Category 3 ABPR’ Technical Standard Technology Provider Appraisal and Shortlisting: After using a literature review to develop a ‘long list’ of possible technology providers, SLR invited suppliers to participate in a questionnaire-based evaluation process. These were subsequently assessed in order to identify the suitability of the individual AD technologies for the treatment of the organic-rich fraction of residual household waste, to meet the specific outline specification developed for Fife. Six technology providers were shortlisted and taken forward for a Soft Market Testing approach. The key objectives of this task were to confirm: a) the level of interest and commitment of each shortlisted AD technology supplier in providing their services to Fife Council, and b) the performance efficiency and suitability of the AD technology with relevance to the Fife project. The six companies shortlisted were: 1. Clarke Haase (low solids AD); 2. Oaktech36 (low solids AD); 3. OWS (high solids AD) 4. Ros Roca (low solids AD); 5. Strabag (high solids AD); and 6. Valorga37 (high solids AD). This list includes three ‘wet digestion’ technologies and three ‘dry digestion’ technologies. A summary of the potential advantages and disadvantages of the two digestion type is presented in Table 4-2. 36 On UK projects, Oaktech are currently using Monsal Ltd to provide the digestion design and engineering capability. Monsal are expected to develop a new AD Plant at Deerdykes on behalf of Scottish Water, operating on source-segregated organics. 37 Valorga failed to provide SLR with the requested data and did not complete the full evaluation. SLR Consulting 56 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 While the attributes of a specific digestion technology should always be considered on its own merits, it is clear from the comparison of the key attributes for generic wet and dry systems that each has its advantages and disadvantages and that both site-specific and project-specific parameters should be considered before selecting the preferred digestion technology type. However it does appear that ‘wet’ digestion may offer potential benefits over ‘dry’ digestion for processing of mixed residual municipal waste. Although wet digestion may be a slightly more sensitive process, with a higher annual operating cost, it does offer the opportunity to recover more recyclables at the front-end, increase the biogas yield, maximise the diversion of BMW from landfill and deliver a better quality organics fraction to the digestion process, thus minimising the need for post-processing refinement of the digestate, where end-use is being considered. In contrast, a dry process is likely to be less sensitive to feedstock variations, requires less maintenance, is more likely to fit onto a smaller site and has lower ongoing annual operating costs. Technology Performance: In order to meet the LAS targets over the next 18 years Fife Council will have to divert up to 53,300t/a of biodegradable material from landfill. Evaluation of the data provided by each company was used to measure technology performance; it was assumed (base case) that the produced digestate was disposed of to landfill. Based on the data provided, it was apparent that at a kerbside recycling rate of 47%, all companies would be able to provide sufficient BMW diversion. However should the kerbside recycling rate not exceed 41%, some additional diversion would be required through the process to meet the Council’s LAS obligations – either as CLO or RDF. The biogas yield and hence the energy production and the available excess electricity available for export can vary considerably between the suppliers. In general, dry AD treatment processes have a lower parasitic electricity requirement and therefore tend to have more excess electricity available for export to the national grid. The specific gas yield stated by the shortlisted suppliers ranged from 90–134Nm3/ t feedstock. The total excess electricity available for export to the grid ranged from 0.67MW to 2.07MW. The amount of recyclables recovered by the shortlisted suppliers as part of the mechanical pre-treatment process varied considerably, ranging from 4% - 26%. The proposed separation of recyclables included as a minimum Fe-metals and non Fe-metals, but some companies also included a post-treatment segregation to extract i.e. dense plastics and/ or glass for recycling. The produced digestate of residual waste treatment facilities can currently not be used for any other purpose than landfill restoration. Low recycling rates were achieved when the technology included the recovery of an RDF, which is currently not classed as a recyclate. High recycling rates were stated for a pretreatment system that is based on hydro-mechanical separation. Process Risks: A summary of the project and process risk profile is presented in Table 4-7 (for each technology provider) and Appendix G. Costs Appraisal: The results from SLR's cost appraisal are set out in Tables 5-1 – 5-3. Table 5-1 provides the indicative gross costs for facility development and operation (over an assumed 25 year project period), including an assessment of both the process and civils costs; where necessary civils costs have been estimated as around 40% of the total costs SLR Consulting 57 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 (for a ‘wet digestion’ system). The results indicate total project capital costs for a 120-160 ktpa MBT/AD plant ranging from £35 million to £85 million and annual operating costs between £1.05 million and £3.65 million. The range of unit operating costs (calculated per tonne of feedstock to MBT) is £29 - £40 / tonne and excludes the costs associated with enduse or disposal of the process outputs, e.g. RDF (Clarke-Haase) and digestate fibre (as soil conditioner / CLO). NOTE: these additional costs can be significant e.g. use of RDF output as a fuel (£25-35/t); landfill disposal of dewatered digestate fibre (~£20/t plus tax); soil refining and use as a soil conditioner / CLO (£15/t) and should also be taken into account in the development of any future AD project. Compared against our recent market experience on technology procurement projects, SLR considers some of the quoted capital and operating costs obtained during this study to be optimistically low. SLR considers operating costs of £2.62-3.64 million per annum to be a reasonable estimate of real costs; however capital costs for all infrastructure development are currently rising rapidly – as a result of a combination of higher demand, higher commodity costs, increasing value of the Euro and the impacts form the current credit squeeze - and this suggests that a more likely capital cost for development, of around £60 million. This would increase the minimum unit cost of operation to around £33/tonne MBT feedstock input (taking account of all costs over a 25 year period). NOTE: this unit cost excludes the cost of borrowing / funding, operator margin (profit) and revenue generation (e.g. from sales of energy and recyclables and income from ROCs), as well as the costs of management / disposal of the process outputs (refer previous paragraph). Table 5-2 provides an indication of the potential revenue generation from electricity (sales and ROCs) and recyclable metals (these are considered to be the only secure and commercially significant output materials). This indicates the potential revenue stream from a Fife Council 150,000 tpa capacity MBT/AD plant as between £2.5 - £4.5 million per annum. However this is considered to be a reasonable projection of income and considers (a) allocation of 2 ROCs (@ £40/MWhr each) for 95% of the renewable electricity generated, as set out in the reformed RO (from 2009 – 2039) and (b) assumes that only 50% of the potential revenue from sale of Fe and non-Fe metals to the secondary processing markets will be generated. No income from heat sales or plastics recycling is included in this figure. It should also be noted that the split between the two revenue sources (i.e. electricity and metals recycling) varies considerably between technology providers and this would require additional consideration (from a risk perspective) prior to entering into a contract with a technology provider. Table 5-3 provides an overview of the ‘Operating Deficit’ for the MBT/AD plant, including the costs of funding / borrowing (assumed as 5% of Capital cost over the 25 year assessment period). This provides an indication of the likely level of net cost of plant operation, to the operator and excludes any profit margin that a private sector merchant plant facility would require. These costs are in the range £22/tonne to £48/tonne of MBT feedstock. Strabag’s ‘dry’ digestion plant is at the high end of these costs with Clarke-Haase and Oaktech (£24/tonne) at the lower end of the range. AD of Source Segregated Organics: SLR’s review is set out in sections 4.4 and 5.1.2. Of the technology providers reviewed, only Oaktech stated that they would not be interested in providing a source-segregated AD plant. Due to the less complex front-end requirements, the capital costs for a source-segregated plant will typically be around one-third of those for an equivalent residual waste (MBT/AD) plant. Operating costs will be slightly lower than for an MBT plant. SLR Consulting 58 Fife Council Organic Municipal Waste Processing by AD: Appraisal 6.2 SLR Ref: 405.0698.0010 September 2008 Conclusions and Recommendations The findings from this study have demonstrated that there are several AD technology providers in the European market that could potentially deliver a residual waste MBT/AD plant for Fife Council that would enable it to meet its LAS obligations (subject to recovery and diversion of the digestate materials) and also generate significant revenue from the sale of electricity, ROCs, recyclables and (if practicable) surplus heat. However, balanced against the potential income streams, the additional costs of end-use or disposal routes for process outputs, RDF, digestate fibre, must also be considered. Subject to meeting Fife Council’s affordability criteria, the option to develop an MBT/AD plant at either Lochhead or Lower Melville Wood should be considered in more detail. Based on the findings of the AD Technology review study, SLR make the following recommendations to Fife Council: 1. Treat the technical and commercial findings from this study as indicative only and also with confidentiality; 2. Use the findings to assess the affordability of a future MBT/AD solution to Fife Council for residual waste management; 3. Consider the practicable end-use / disposal options for the process outputs (particularly the dewatered digestate fibre) – in a Fife context; 4. Continue to liaise with the Scottish Government regarding their view on the status of and constraints on residual waste processing by AD within the new government Zero Waste policy; 5. Retain the shortlist of AD providers (i.e. Clarke-Haase, Oaktech, OWS, Ros Roca, Strabag) for future procurement and or market testing programmes; also include Monsal on this short list. 6. Consider carrying out a more-detailed feasibility study to examine the development options at Lochhead and / or Lower Melville Wood, to fully test the feasibility and develop the scope of any future project, prior to going out to the market place or procurement for a solution. SLR Consulting 59 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 APPENDIX A: Long list of AD technology providers SLR Consulting 60 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Long List of AD Technology Providers Company Country Company Country AAT Abwasser - & Abfalltechnik Austria Krieg & Fischer Germany Active Compost UK Krüger Demark ADI Systems Canada Larsen Engineering USA Agri Waste Technology USA Lipp Germany Agri-Biosystems USA Linde KCA Germany Alkane Biogas UK Lotepro Environmental Systems USA Alpha Umwelttechnik Switzerland MAT Müll - und Abfalltechnik Germany AnDigestion UK MCX Environmental Energy Cor. USA ARCADIS Netherlands MT-Energy Germany ArrowBio Israel Nelleman, Nielsen & Rauschenberger (NNR) Denmark Bedfordia Biogas UK Newbio NBE USA BEG Bioenergie Germany NIRAS Denmark Bekon Energy Technologies Germany Novatech Germany BioFerm Germany Oaktech UK Biogas Nord Germany Onsite Power Systems USA BiogaS int Netherlands Organic Power UK Bioplan Denmark Organic Power Technology Australia Bioplex UK Organic Waste Systems Belgium Bioscan Denmark OrgaWorld Netherlands Biotech Sistemi Italy Oswald Green USA Biotechnische Abfallverwertung (BTA) Germany Oswald Schulze Germany Brouwers BioEnergy Netherlands Paques Netherlands BRV Biowaste Technologies Burmeister & Wain Scandinavian (BWSC) Switzerland Pinnacle Biotechnologies Int. USA Denmark PlanET Biogastechnik Germany/NL Cambi Norway Projectrör Sweden CG Jensen - AN biotec Denmark Proserpol France Citec Finland Purac AB Sweden Clarke Energy / Clarke Haase UK Purac Ltd UK DSD Gas und Tankanlagenbau Germany RCM USA EcoCorp Inc. USA RefCom USA Eco-Technology JVV (EcoTec) Finland Ros Roca Germany Energy Group Jutland Denmark Risanamento Protezione Ambiente Italy Enpure UK Reliant Technical Services, RTS UK Entec Umwelttechnik Austria Schmack Germany Entek Biosystems USA Schradenbiogas Germany Enviro-Control Ltd UK Schwarting Umwelt Germany Environmental Energy Corp. USA Sharp Energy USA Farmatic Anlagenbau Germany Seghers Keppel Belgium Farmatic Biotech Energy Germany Strabag Austria Farmatic Energy UK UK Sustainable waste systems UK Gas & Technology Institute (GTI) USA Super Blue Box (SUBBOR) Recycling Corp Canada GBU Germany Thöni Industriebetriebe Austria Global Renewables Australia TBW Germany Greenfinch UK Umwelt Technik Süd Germany Grontmij Vandenbroek International Netherlands Unisyn Biowaste Technology USA Haase Germany Valorga France Harvestore Deutschland Germany Van Boekel Zeeland BV Netherlands Hese Germany Vinci France Horstmann Germany Weda UK UK SLR Consulting 61 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 IBtech Mexico Wehrle Umwelt Germany Ionics Italba SpA Italy Weltec Germany ISKA Germany Xergi Denmark Jysk Biogas Denmark YIT Finland Kompogas Switzerland Main source: Juniper Consultancy Services Ltd for East Renewables, June 2007 SLR Consulting 62 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 APPENDIX B: Stage 2 Screening Questionnaire SLR Consulting 63 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Specification Enquiry 1. Background Fife County Council (Scotland) intend to meet the required LAS targets by installing a new MBT (AD) plant for the treatment of approximately 150,000t/a of mixed municipal household waste. The AD technology provider shall be able to provide a turnkey delivery of the mechanical pre-treatment plant, the anaerobic digestion plant (including dewatering and gas cleaning and CHP) and possibly the production of an RDF. The plant shall be fully operational by …with the tendering process starting in… By filling in this questionnaire you can provide us with some valuable details on the suitability of your AD technology system for the treatment of this type of waste. Please note that this is not part of a tender process but shall merely help us to identify and recommend AD processes potentially suitable for Fife County Council’s waste treatment requirements. 2. Technical Input Specification The process shall be designed based on following parameters: Feed material: 150,000 – 160,000t/a of residual household waste (paper & card and garden waste are partly kerbside separated). The composition is assumed to be as follows: Paper & cardboard Kitchen waste Garden waste Plastic Glass Metal Other combustibles Fines Textiles Misc non-combustibles Soil & other putrescibles Expected BMW content of waste input: 26.2% 26.5% 4.8% 13.6% 8.0% 4.4% 5.1% 3.7% 2.9% 1.1% 3.6% 63% Expected BMW diversion rate by MBT (AD): 70% 3. AD Supplier Questionnaire 1) Company name and contact details 2) Please state the proposed AD technology (delete as appropriate) SLR Consulting 64 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Wet/ dry Mesophylic/ thermophylic 1-stage/ 2-stages Batch/ continuous 3) Please state if your plant is suitable to treat residual household waste Yes/ No 4) Who would supply the required mechanical pre-treatment (i.e. you or others)? 5) Please attach a reference plant list including throughput and status (i.e. operational/ under construction) of the plant. Please highlight the plants treating residual household waste. 6) Would it be possible for the Council to visit a plant? If so, which? 7) Is your process capable of achieving ABPR? If so, have you got any approved ABPR plants for the treatment of residual household waste or other waste? 8) Based on the given feedstock please state your output for: a) b) c) d) e) f) g) h) i) j) k) Plant footprint (ha): Biogas yield (Nm3/a): Biogas quality(% CH4): Electrical power (kWh/a): Thermal (kWh/a): Additional fuel required: Digestate (t/a): Wastewater (m3/a): Recovered recyclables: Waste to landfill (t/a): BMW content of landfilled waste (%): SLR Consulting 65 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 l) BMW diversion (%): 9) Please attach simple mass balance and/or process flow diagram 10) What would be the estimated investment costs for a 150,000t/a MBT (AD) plant? 11) What would be the estimated operational costs for a 150,000t/a MBT (AD) plant? 12) What guarantees would you be prepared to give in terms of a) equipment and b) performance? 13) What would be your expected time scale for the design and build of a plant of this size from the day of signing the contract (please split into design, construction, commissioning)? 14) Anything you may wish to add? SLR Consulting 66 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 APPENDIX C: Stage 2 Screening Evaluation Technology evaluation spreadsheets included on attached CD; technology evaluation scoring system illustrated in attached tables. SLR Consulting 67 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Criteria: Technology Scoring 1. Experience of Contractor More than five facilities in the UK or Europe (more than 5 years exp) Between 2 and 5 facilities in the UK or Europe (More than 2 yerasexp) 1 operational facility with more than 2 years experience 1 or more operational facility with less than 2 years experience No full scale plants currently operating 2 1.5 0.8 0.5 0 2. Gas Yields Supplier's gas yield compares exeptionally well due to specific process Supplier's gas yield compares well to average suppliers gas yield Supplier's gas yield is well below/ above average Gas yield was not supplied 2 1 0.5 0 3. Heat/ Energy Balance Heat and Electr. production allow ops of self-suffient AD plant and excess to grid Heat and Electr. production allow ops of self-suffient AD plant - heat excess only Heat and Electr. production allow ops of self-suffient plant - no excess Additional fuel or electricity has to be provided Additional fuel and electricity has to be provided 1 0.8 0.5 0.2 0 4. Recyclables Recovery Over >50% recyclables with outlet market recovered 40-50% recyclables with outlet market recovered 30-40% recyclables with outlet market recovered 20-30% recyclables with outlet market recovered Less than 20% recyclables with outlet market recovered No recyclables recovered 2 1.6 1.2 0.8 0.3 0 5. Waste Disposal to landfill Minimised due to re-use of digestate (i.e. as fuel or CLO) Reduced by i.e. drying of digestate Digestate to landfill without further treatment 1 0.5 0 6. BMW Diversion BMW diversion meets or exceeds FC's needs over next 25 years BMW diversion meets or exceeds FC's needs until at least 2020 BMW diversion meets or exceeds FC's needs until at least 2015 BMW diversion insufficient to meet FC targets 2 1 0.3 0 7. Wastewater No wastewater - all recirculated as process water Minimum wastewater due to chosen AD type (i.e. dry AD) Wastewater reduced due to re-use as process water No re-use of wastewater 1 0.8 0.5 0 8. Feedstock Definition Supplier is experienced with feedstock and no "feedstock specification" is needed Supplier is experienced with feedstock but "feedstock specification" is needed Supplier is inexperienced with feedstock 1 0.5 0 9. Gas cleaning Supplier offer full package with CHP and de-sulphurisation unit Supplier offers only part of the gas treatment Supplier does not offer gas treatment 1 0.5 0 SLR Consulting 68 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Criteria: Deliverability 1. Commercial availability The process is commercially available and actively marketed in the UK The process is being actively marketed in the UK The process is commercially available in the UK The technology is proven only on pilot plant scale Score 1 0.8 0.5 0.2 2. Track record (reference plants) The supplier has at least one operating plant treating residual household waste in the UK The supplier has at least one operating plant treating residual household waste elsewhere A plant for the treatment of residual hhld waste is currently under construction A plant for the treatment of residual hhld waste is in the planning stages The supplier has AD reference plants treating other waste (i.e. food) No reference plant for solid waste currently available 2 1.5 0.8 0.3 0.3 0 3. Project Delivery The supplier offers the full turnkey delivery of MBT and AD plant with specific partners The supplier offers the full turnkey delivery of MBT and AD plant but subs have yet to be identified The supplier only offers the delivery of the AD part 1 0.6 0.3 4. Plant Scale The supplier has large scale reference plants and can provide modular kit The supplier has large scale reference plants, but no modular kit The supplier has medium/ small scale reference plants and can provide modular kit The supplier has medium/ small scale reference plants, no modular kit available 1 0.8 0.6 0.2 5. Process Guarantees The supplier provides all guarantees for process, equipment and recycling, diversion targets The supplier provides some guarantees for process, equipment and recycling, diversion targets The supplier only offers guarantees for the delivery of the AD part 1 0.5 0.1 SLR Consulting 69 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Criteria: Licensing Score ABPR Compliance Operates ABPR compliant plant treating residual household waste Operates ABPR equivalent (EU reqs.) compliant plant treating residual household waste Operates ABPR compliant plant treating other waste (i.e. food, source-separated biowaste) Operates ABPR equivalent (EU regs) compliant plant treating other waste (food, s-s biowaste) ABPR compliant plant under construction Does currently not operate ABPR compliant plant Criteria: Costs 2 1.5 1 0.6 0.4 0 Score Capital Costs Supplier's Capex compare well with average competitors costs Supplier's Capex are well above/below average competitors costs No details were provided at this stage 1 0.4 0.2 Operational Costs Supplier's Opex compare well with average competitors costs Supplier's Opex are well above/below average competitors costs No details were provided at this stage 1 0.4 0.2 SLR Consulting 70 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 APPENDIX D: Stage 3 ‘Soft Market Testing’ Responses SLR Consulting 71 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Appendix D: ‘Soft Market Testing’ Responses - Sections A to E Section A - Clarke Haase Future Fife Council Contract: Fife Council is considering procuring a contract for the design, construction and commissioning of an MBT/AD plant to operate on approximately 160,000t/a residual municipal waste. It is the Council’s intention to progress the procurement process as quickly as possible and to deliver a fully operational plant in advance of 2012/13 (2nd LAS target year). Project delivery 1) Can you please comment on: (a) your company’s level of interest and commitment to bidding for this future contract, either as (i) EPC Contractor or (ii) technology subcontractor only; and This contract is potentially very interesting to us. The size of the facility fits with our reference facilities and previous experience and can be considered our core business. We are primarily a technology supplier. We would consider providing an EPC contractor role but we would more likely team up with a separate EPC contractor or waste management company to wrap the project delivery. (b) the feasibility of the Council’s proposed timescale for delivery, taking account of your programme for the design, construction and commissioning stages of delivery ? We are currently working on a number of projects for similar size MBT plants. We view that these timescales should not pose us a problem with the delivery of such a project. Waste Recycling and Process Definitions/Efficiencies 2) Given the projected feedstock waste composition (shown in the table below), please state why you consider a wet technology more suited for this type of waste? The waste stream outlined below is well suited to treatment by a wet mesophilic anaerobic digestion technology such as HAASE. HAASE have a wide experience of application of anaerobic digestion technology to different input feedstocks including mixed municipal waste, food wastes and energy crops. This extensive experience and knowledge of different input materials is unrivalled in the MBT providers market. We appreciate that councils will want to increase recycling rates by the introduction and expansion of kerbside collection for paper, card and garden waste. This will SLR Consulting 72 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 result in lower amounts of RDF being recovered by the front end of the MBT facility. It will have the knock on effect of increasing the % of putrescible wastes in the input material, which is well suited to wet digestion technologies. NOTE: Fife Council plans to expand its kerbside recycling services the quantity of paper & card and garden waste in the residual introduction of a kerbside collection service for kitchen waste is unlikely. Hence the composition of the residual waste feedstock for expected to be as shown below: Waste Composition Paper & cardboard and reduce waste; the considered the plant is % of total waste input 26.2% Kitchen waste 26.5% Garden waste 4.8% Plastic Glass 13.6% Metal 4.4% Other combustibles 5.1% Fines 3.7% Textiles 2.9% Misc non-combustibles 1.1% Soil & other putrescibles 3.6% 8.0% 3) Should the Council decide to collect kitchen waste at kerbside, how would it influence your decision on the process? Clarke HAASE is in a position to offer facilities for the treatment of both mixed wastes and also kerbside collected kitchen wastes. We would be happy to work with Fife Council in either event. If kitchen waste is to be collected at the kerbside we believe it would be the position of the council to evaluate whether it is appropriate to pursue an MBT-AD based technology. We would happily advise as to the suitability of our system if more information arose on how the waste stream would change. In the event that an MBT facility was installed and the council opted to collect kitchen waste at the kerbside there would be the potential to supplement the input waste with similar commercial and industrial wastes. SLR Consulting 73 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 4) Based on the waste composition above, how efficient is your process in recovery of recyclables? Please provided details of each material stream recovered for recycling and/or RDF production (pre and post AD) using your process and the material recovery rates and quality. Please see revised mass balance (to follow) 5) Based on the waste composition above how efficient is the process in conversion of the organics fraction in the incoming feedstock into biogas and energy production? Please provide details of the percentage of the organic fraction in the plant feedstock that goes for digestion and the biogas production rates (per unit of feedstock, per unit of VS in the digestion feedstock), methane content and energy recovery efficiencies (heat and power). Please refer to original mass balance & see revised mass balance (to follow) 6) Fife Council aspire to achieve a recycling rate of 44% by kerbside recycling and bring sites by 2009 and 47% from 2010 onwards. In order to achieve Scotland’s future recycling targets, additional material will have to be recovered for recycling from the residual household waste fraction as shown in the table below. What separation/treatment technology would you propose to deliver these targets in the long-term? Please also refer to waste composition shown below to respond to this question. % Scotland recycling target Estimated % recycling required from residual household waste 0 2010 40% 0 2013 50% 3% 2020 60% 13% 2025 70% 23% Year 2009 7) Based on the given waste composition, Fife Council will have to divert 60,000 tonnes of the incoming BMW fraction by 2019 (i.e. 55% of the total BMW content) to meet their LAS obligations. How would you ensure that these targets can be met? Clarke HAASE is in a position to offer the provision of an MBT facility for the treatment of residual wastes. Diversion of BMW from landfill would be achieved by the council by both the collection of paper and card at the doorstep for recycling and combined with the diversion that would be provided by the MBT plant. The mechanical sorting element of the plant will remove paper and plastics in the form of RDF. The paper will count towards BMW diversion targets. The microbes in SLR Consulting 74 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 the anaerobic digestion systems will break down the biodegradable material helping stabilise it. In the event this material is burnt as an RDF or alternatively if it is used on land as a restoration material it will fully count towards the councils BMW diversion targets. 8) Fife Council’s municipal waste collections may contain some Category 3 materials, (i.e. uncooked meats from non-kitchen sources, e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet Animal Health requirements. Please confirm how your proposed AD process can be revised (if not already included) to meet EU Standards and UK Animal Health requirements for the processing of Cat 3 ABPR materials. ? There are two options open for the council, use of the digestate on land and use of the digestate as a low-CV RDF. In the event the digestate is to be used on land the material will have to meet the time/temperature and particle size requirements of the ABPR the pre-processing for the facility will ensure that the particle size for the input material to the digesters would be a maximum of 12mm. In accordance with the regulations our scope of supply would include a pasteurisation unit, which would treat accepted waste streams to 70°C for a one-hour duration. Storage, buffering, particle size reduction and hydrolysis Pasteurisation at 70°C Digestion tank The plant would also be designed to maintain hygiene and plant management requirements in order to prevent cross contamination of materials. SLR Consulting 75 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 The proposed plant would not be designed to accept Category 1 or 2 animal byproducts. In the event of a successful tender result Clarke HAASE would develop a Hazard Analysis and Critical Control Points (HACCP) plan for the plant to ensure the feedstock is treated in line with the regulations. In the event that the digestate was to be used as a low-CV RDF via combustion in an EfW facility the material would not be required to meet the ABPR and as such we would not include for this treatment. 9) Please provide a process flow diagram showing the main plant components necessary to reach Fife Council’s objectives and targets. Please refer to mass balance sheet. Process Outputs – End Markets 10) What flexibility / sensitivity does the plant have with respect to: (a) plant processing capacity; This will depend upon the design specification required and the level of investment for the waste reception area, mechanical pre-treatment and digestion systems. Typically the digestion systems will have sufficient buffering capacity to process waste over a long weekend. (b) materials recovery / recycling; This will be dependent upon the other materials in the waste stream and would need to be discussed in detail. (c) reduction in organics content ? Plant typically offers 75% reduction in biodegradability based upon the German GB21 standard. Please also comment on the method of testing / measurement for item (c), e.g. DR4, BM100, LOI etc We would be happy to work with DR4, BM100 or LOI based tests in accordance to SEPA guidance. German standards are based upon the aerobic GB21 test. 11) How secure, in your opinion, is the outlet market for the recovered materials (UK and internationally) from residual municipal waste, particularly: (a) recovered materials (paper & card, mixed plastics; metals; glass) – Secure subject to normal market forces (b) digestate; - Developing – Digestate is a good soil improver that can add value to soils. Digestate also offers the potential to act as a biofuel (low-CV RDF) and can be burnt to generate further renewable energy. In the worstcase event the material is landfilled it is stabilised and acts as a carbon sink and helps prevent global warming. SLR Consulting 76 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 (c) biogas; - Secure – biogas can be used to generate renewable electricity and or heat. Future uses may include concentration and use as a vehicle fuel. (d) electricity; and – Secure – Renewable energy (e) heat – Secure/Developing dependent upon location of facility Maximum use of all process outputs is required to maximise the benefits of the project to Fife Council. Agreed AD Process Details 12) Please confirm current status of the proposed reference plants, e.g. fully operational (years of service?), fully taken over, meeting design requirements and process guarantees by client and actually taken over and certified? Please also provide relevant dates. Please refer to reference list. 13) How do these reference plants compare to the Fife project in terms of waste feed, tonnage, recycling recovery? Please refer to reference list. 14) Which of the following process guarantees would you be prepared to provide (based on a feedstock composition range)? (a) plant throughput capacity Yes (b) feedstock composition No – Feedstock would be provided by the council and is beyond our influence (c) recyclates recovery and end use markets – Material recovery efficiency– Yes. End use markets No. (d) plant availability and reliability – Yes for both (e) biogas production rate (per tonne of volatile feedstock) - Yes (f) digestate quality – To be discussed (g) process effluent loading and treatment - Yes (h) parasitic energy demand Yes (i) CHP energy conversion efficiency Yes (j) ABPR Category 3 standard? 70C for one hour yes other elements are dependent upon facility operations Development Costs (capital and operating) 15) Please provide a breakdown of the estimated gross capital and operating costs (including for any pre-treatment and energy connections); net cost per tonne of waste treatment, taking into account, potential income from energy and recyclate sales, as well as the sale of renewable obligations certificates (ROCs) and income from the Climate Change Levy. Costs should clearly state all assumptions, e.g. ground conditions, service connections, supporting site infrastructure, site planning and permitting arrangements, operations staff. SLR Consulting 77 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Not available at this stage. This would be completed as part of a formal tendering process. Project Delivery and Contract Arrangements 16) Please provide information on your company’s corporate status, including financial standing, annual turnover in the waste sector and staff and plant resources. Please see attached company information 17) Please confirm company’s capability (and experience) for providing the Engineering and Procurement Contractor (EPC) function to Fife Council. As an alternative would your company prefer to act as a technology provider to the EPC; if so what specific technologies would you seek to provide? We would seek to act as technology provider to the EPC. We would supply HAASE and GE Jenbacher based technologies. SLR Consulting 78 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Appendix D: ‘Soft Market Testing’ Responses - Sections A to E Section B – Oaktech Future Fife Council Contract: Fife Council is considering procuring a contract for the design, construction and commissioning of an MBT/AD plant to operate on approximately 160,000t/a residual municipal waste. It is the Council’s intention to progress the procurement process as quickly as possible and to deliver a fully operational plant in advance of 2012/13 (2nd LAS target year). Project delivery 1) Can you please comment on: (a) your company’s level of interest and commitment to bidding for this future contract, either as (i) EPC Contractor or (ii) technology subcontractor only; and (b) the feasibility of the Council’s proposed timescale for delivery, taking account of your programme for the design, construction and commissioning stages of delivery ? Oaktech, in a consortium with Landmedia Ltd, is interested in bidding for this contract as either the EPC contractor or technology sub-contractor, our choice of which will be governed by the detail contained in the tender document itself. If preferred, the consortium would also be interested in taking an equity stake in the project anywhere from 100% down i.e. we would be happy to fund the project in its entirety and also open to concept of forming a Joint Venture with the Council to do so. Regarding timescale and procurement approach, we would prefer the tender to be issued using the restricted tendering method rather than competitive dialogue to ensure the council meets its intended timescale and to avoid the extended negotiation process inherent to competitive dialogue. If the Council chooses to adopt the competitive dialogue procurement method, we would still be interested in participating. Waste Recycling and Process Definitions/Efficiencies 2) Given the projected feedstock waste composition (shown in the table below), please state why you consider a wet technology more suited for this type of waste? NOTE: Fife Council plans to expand its kerbside recycling services and reduce the quantity of paper & card and garden waste in the residual waste; the introduction of a kerbside collection service for kitchen waste is considered unlikely. Hence the composition of the residual waste feedstock for the plant is expected to be as shown below: Waste Composition Paper & cardboard Kitchen waste Garden waste Plastic Glass Metal Other combustibles Fines Textiles Misc non-combustibles Soil & other putrescibles % of total waste input 26.2% 26.5% 4.8% 13.6% 8.0% 4.4% 5.1% 3.7% 2.9% 1.1% 3.6% SLR Consulting 79 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Assuming the residual waste stream to be as described above, we believe the wet ArrowBio waste treatment technology to be more appropriate for this composition for the following reasons: 1. With a lower fraction of paper & cardboard and green waste resulting from the kerbside collection schemes due to be employed, the level of solid material produced by the AD element of the ArrowBio process will be decreased, while the high kitchen waste content will result in the production of significant biogas volume. 2. The ArrowBio process is the only MBT-AD waste treatment technology that employs the philosophy of wet sorting/separation in conjunction with wet Anaerobic Digestion. The utilisation of a wet sorting process allows for the maximum recovery of the biodegradable fraction of the residual waste stream, while also allowing for the maximum recovery of clean recyclable materials that are suitable for further reprocessing. 3) Should the Council decide to collect kitchen waste at kerbside, how would it influence your decision on the process? Kitchen waste collection at the kerbside would have a negative effect on our decision making process as a decrease in kitchen waste fraction of the residual waste stream would result in a decrease in biodegradable material and a subsequent decrease in the production of biogas. We would prefer for kitchen waste to remain entirely as part of the residual stream and would need to asses the effect of kerbside collection very carefully on the performance of the plant. We would still be interested in bidding for the contract if the effect is deemed to be minimal and the guaranteed waste composition parameters provided by the Council as part of the contract are maintained. 4) Based on the waste composition above, how efficient is your process in recovery of recyclables? Please provided details of each material stream recovered for recycling and/or RDF production (pre and post AD) using your process and the material recovery rates and quality. The ArrowBio system uses water as the medium for the gravitational separation of the inorganic and organic fractions of a mixed waste stream. On entering the system, mixed waste is fed into a water filled vat. The mixture is agitated, thus ensuring the full submersion of all the material and the ‘washing’ of the recyclates. In general, the heavy elements of the mixed waste stream will sink, the light elements will float and the organic elements will remain in suspension and start to dissolve. The heavy elements are drawn off the base of the vat and after passing through a trommel, magnet and eddy current separator, the system recovers a clean stream of Ferrous and Non Ferrous Metals. The light elements are drawn off the top of the vat and after passing through a series of trommels and screens, the system recovers a clean stream of Plastics. What remains in the vat is a ‘soup’ of organic material and fines. Through a series of screens, this organic ‘soup’ is refined (i.e. fines are removed) and then sent to the AD plant for the production of biogas, water and digestate. Glass is removed from the ArrowBio system in the form of cullet i.e. the material will be smashed through the separation process itself (if not before) and is recovered as a clean mixed colour, irregularly sized output. SLR Consulting 80 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 The Recovery Efficiencies for Recyclates in the ArrowBio process are: Ferrous Metal 90 % Non Ferrous Metal 80 % Glass 50 % Plastic 90 % Organics 95 % 5) Based on the waste composition above how efficient is the process in conversion of the organics fraction in the incoming feedstock into biogas and energy production? Please provide details of the percentage of the organic fraction in the plant feedstock that goes for digestion and the biogas production rates (per unit of feedstock, per unit of VS in the digestion feedstock), methane content and energy recovery efficiencies (heat and power). Tonnage input Organic fraction in waste stream Organic tonnage Recovery efficiency Recovered tonnage VS content Gas produced Methane content Electricity production Heat recovery efficiency 140,000t 61.2% (estimate 60% water) 85,680t 95% 81,396t ~58% 84m3/tonne 70% 220kWh/tonne tbc 6) Fife Council aspires to achieve a recycling rate of 44% by kerbside recycling and bring sites by 2009 and 47% from 2010 onwards. In order to achieve Scotland’s future recycling targets, additional material will have to be recovered for recycling from the residual household waste fraction as shown in the table below. What separation/treatment technology would you propose to deliver these targets in the longterm? Please also refer to waste composition shown below to respond to this question. Year 2009 2010 2013 2020 2025 % Scotland recycling target 40% 50% 60% 70% Estimated % recycling required from residual household waste 0 0 3% 13% 23% The elegance of the ArrowBio system is its ability to recover high quality recyclates i.e. clean recyclate streams that are free from foreign objects. As described in question 4 above, the ArrowBio system will recover an average of 90% Ferrous Metals, 80% Non Ferrous Metals, 50% Glass, 90% Plastics and 95% Organic Material from a mixed waste stream. This yields an average recycling rate of 81% which is effective on the onset of the operation of the plant. The ArrowBio system has a 20 year lifespan which, assuming the commissioning a facility in 2010/2011, will provide Fife with a service well beyond 2025. In addition, while the effectiveness of kerbside collections and bring sites rely exclusively on the local populace, ArrowBio can deliver a consistent recyclate recovery performance without the need to pre sort the incoming waste stream. 7) Based on the given waste composition, Fife Council will have to divert 60,000 tonnes of the incoming BMW fraction by 2019 (i.e. 55% of the total BMW content) to meet their LAS obligations. How would you ensure that these targets can be met? We propose the construction of a single 140,000tpa capacity treatment facility. This will enable the Council to recover 75% of the total feedstock sent to the plant and also divert a minimum of 75% of the biodegradable material present in the residual stream sent to the plant. Given the requirement to divert 60,000tpa BMW in 2019, the plant constructed SLR Consulting 81 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 will easily satisfy this target and subsequently open up the potential for the Council to engage in positive LATS trading. 8) Fife Council’s municipal waste collections may contain some Category 3 materials, (i.e. uncooked meats from non-kitchen sources, e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet Animal Health requirements. Please confirm how your proposed AD process can be revised (if not already included) to meet EU Standards and UK Animal Health requirements for the processing of Cat 3 ABPR materials. ? The ArrowBio system includes a pasteurisation unit to treat the solid material post anaerobic digestion. After the organic ‘soup’ has been degraded, the digestate will be milled to a 12mm particle size and pasteurised at 70C for a minimum of 60 minutes. 9) Please provide a process flow diagram showing the main plant components necessary to reach Fife Council’s objectives and targets. Please see the attached document. Process Outputs – End Markets 10) What flexibility / sensitivity does the plant have with respect to: (a) plant processing capacity; The plant is designed in modular treatment units of 35,000tpa capacity. Each module is capable of treating an increased tonnage annually (c.+20%), however the operation and maintenance schedule will require development for this to occur. The plant will be guaranteed to operate at a minimum of 85% availability throughout its operational lifetime. (b) materials recovery / recycling; and Each material fraction has an associated guaranteed recovery rate applied to it (Ferrous metal, plastics, kitchen waste etc). These recovery rates will be factored into the contract signed and backed up by the relevant performance warranties. (c) reduction in organics content ? As indicated by independent testing carried out at our reference facility in Tel Aviv, the plant is likely to attain a reduction in organic content of solid material produced by the AD element of the technology of 85-90%. The method of testing used to achieve this result was based on the BM100 test as prescribed by most regulatory bodies in the UK (test results can be made available on a confidential basis). Please also comment on the method of testing / measurement for item (c), e.g. DR4, BM100, LOI etc 11) How secure, in your opinion, is the outlet market for the recovered materials (UK and internationally) from residual municipal waste, particularly: (a) recovered materials (paper & card, mixed plastics; metals; glass); (b) digestate; (c) biogas; (d) electricity; and (e) heat ? Maximum use of all process outputs is required to maximise the benefits of the project to Fife Council. SLR Consulting 82 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 With respect to markets for recovered material, the products of the ArrowBio system are Ferrous Metals, Non Ferrous Metals, Glass, Plastics, Water, Digestate and Biogas. There are established domestic markets for Ferrous and Non Ferrous Metal which, as of April 2008, had an average price of £156 per tonne and £1 634 per tonne respectively*. Prices for reprocessed metal on domestic and international markets have been rising and this trend is likely to continue into the foreseeable future. The market for mixed glass (as supplied by an ArrowBio unit) is between £13 and £16 per tonne and reprocessed plastics is roughly priced at between £150 and £250* Plastics in particular has an established international market (China) however the emergence of alternate fuels/synthetic diesel technologies here in the UK is likely to create its own domestic market. The market for digestate, though limited, is currently undergoing development. Digestate has been put forth as a RDF for use in industrial processes and the ArrowBio digestate in particular is undergoing studies for its use as a filler material in plastic processing. In addition, there is currently a consultation process underway in Central Government for the use of digestate as remedial material on brown field sites which pending approval will open up yet another avenue to market for digestate. In the worst case scenario the digestate will be landfilled, however, at an output of less than 10% of the input tonnage, this is a significant improvement to current landfilling rates for biodegradable material. Additionally, the biodegradation figure of 91% demonstrated at the reference facility in Tel Aviv would also mean the impact of landfill for this material would be significantly decreased. In lieu of the increasing demand for domestic energy sources as well as the focus on climate change in the public consciousness, domestic ‘green fuel’ is an invaluable resource which the ArrowBio process can provide with its methane rich (~80% CH4) biogas. The production of electricity from ArrowBio’s biogas is eligible for double ROCs and under the new government RTFO scheme, the biogas itself is eligible for certificates. Prices obtained through www.letsrecycle.com (12 month average 2006-2007) AD Process Details 12) Please confirm current status of the proposed reference plants, e.g. fully operational (years of service?), fully taken over, meeting design requirements and process guarantees by client and actually taken over and certified? Please also provide relevant dates. 1. ArrowBio Tel Aviv, Israel a. 35,000tpa residual waste treatment capacity b. Operational since January 2003 c. Full-scale industrial plant d. Client: Dan Region Authority (Tel Aviv region) 2. ArrowBio Sydney, Australia a. 90,000tpa residual waste treatment capacity b. Opening ceremony 4th July 2008 c. 15 year residual waste treatment contract with Waste NSW d. Completion of wet commissioning phase scheduled for October / November 2008 e. Client: Waste New South Wales (New South Wales LAWDC) 3. ArrowBio Falkirk, Scotland a. 70,000tpa residual waste treatment capacity b. Preliminary design completed February 2008 c. Detailed design scheduled for completion late 2008 d. Construction completion scheduled for spring 2010 SLR Consulting 83 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 e. Client: Avondale Environmental 13) How do these reference plants compare to the Fife project in terms of waste feed, tonnage, recycling recovery? The reference projects in Sydney and Falkirk outlined above are most similar in scale and recycling recovery to the proposed plant for Fife. Although the treatment capacity required for Fife is larger than these examples, the modular nature of the ArrowBio process prevents this from causing issue and actually presents a significant advantage in that a greater level of process standby is included as issues preventing the operation of a single module can be carried by the diversion of material to an alternative treatment module while maintenance can be carried out. 14) Which of the following process guarantees would you be prepared to provide (based on a feedstock composition range)? (a) plant throughput capacity Yes (b) feedstock composition Unsure what this means – we would have expected the feedstock composition to be guaranteed by the Council (d) recyclates recovery and end use markets Recovery efficiency for materials will be guaranteed. End markets we would prefer to discuss once more information is available. It is likely that we would be happy to guarantee the majority of end markets for materials. (e) plant availability and reliability Yes (f) biogas production rate (per tonne of volatile feedstock) Yes, based on a range (g) digestate quality Quality in terms of biodegradation – Yes. Quality in terms of physical content we would require more (input composition) data before committing to this. (h) process effluent loading and treatment Yes (i) parasitic energy demand Yes (j) CHP energy conversion efficiency Yes (k) ABPR Category 3 standard? Yes Development Costs (capital and operating) 15) Please provide a breakdown of the estimated gross capital and operating costs (including for any pre-treatment and energy connections); net cost per tonne of waste treatment, taking into account, potential income from energy and recyclate sales, as well as the sale of renewable obligations certificates (ROCs) and income from the Climate Change Levy. Gross Capital Cost ~£28m (not including civil engineering and site infrastructure costs) SLR Consulting 84 Fife Council Organic Municipal Waste Processing by AD: Appraisal Gross Operating Cost SLR Ref: 405.0698.0010 September 2008 ~£6m per annum Cost per tonne £42/tonne (inc. £0.075 revenue per kWh electricity sold to grid – estimate of x1ROC per kWh set at £0.035 per ROC, recyclate sale to market at figures previously quoted, gate fee revenue for 85% availability of plant set at £70 per tonne, residual material disposal to landfill including landfill tax at full 2011 rate of £48 per tonne) Costs should clearly state all assumptions, e.g. ground conditions, service connections, supporting site infrastructure, site planning and permitting arrangements, operations staff. Project Delivery and Contract Arrangements 16) Please provide information on your company’s corporate status, including financial standing, annual turnover in the waste sector and staff and plant resources. Oaktech is a small technology company (6 staff) that employs a variety of project management staff related to the delivery of waste treatment projects throughout the UK. All engineering and technical delivery aspects are subcontracted to Oaktech’s dedicated technology sub-contractor team consisting of Arrow Ecology (original ArrowBio process developer), Monsal (AD specialist) and Henry Boot Scotland (Civil Engineering). Responsibility for on site project delivery will be coordinated by Oaktech project management staff but delivered by the relevant staff from each main sub-contractor. Each subcontractor has been involved in such projects in the past and has been chosen for their relevant expertise and experience. Landmedia is the joint venture owner of the Avondale landfill, Falkirk. Landmedia has been directly responsible for the management and development of the landfill since its inception (over 6 years ago) and are well versed in the management of waste treatment contracts. A team of ~15 operators is employed on site at Avondale. Financially, Oaktech is backed by its main shareholder, Jake Ezair (owner of the Northern Group of property companies in Manchester). Landmedia is supported by the asset it owns at the Avondale landfill. 17) Please confirm company’s capability (and experience) for providing the Engineering and Procurement Contractor (EPC) function to Fife Council. As an alternative would your company prefer to act as a technology provider to the EPC; if so what specific technologies would you seek to provide? As a consortium, Oaktech and Landmedia will work together to deliver a viable waste treatment solution based on the ArrowBio MBT-AD waste treatment technology. The technology itself will be supplied to the consortium via Oaktech and its group of experienced technology sub-contractors. Landmedia is the Joint Venture owner of the Avondale Landfill site in Falkirk. The company has experience in the development of landfill and waste treatment projects and is currently in the design phase of the installation of an ArrowBio waste treatment plant at the Avondale site itself. As EPC contractor, the consortium will utilise the technology specific skills of Oaktech in conjunction with the project delivery skills of Landmedia. The same applies to the consortium acting as a technology sub-contractor. SLR Consulting 85 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Appendix D: ‘Soft Market Testing’ Responses - Sections A to E Section C – Ros Roca Our responses to the various supplementary questions are either detailed below the relevant questions or attached as separate documents. Future Fife Council Contract: Fife Council is considering procuring a contract for the design, construction and commissioning of an MBT/AD plant to operate on approximately 160,000t/a residual municipal waste. It is the Council’s intention to progress the procurement process as quickly as possible and to deliver a fully operational plant in advance of 2012/13 (2nd LAS target year). Project delivery 1) Can you please comment on: (a) your company’s level of interest and commitment to bidding for this future contract, either as (i) EPC Contractor or (ii) technology subcontractor only; and Ros Roca can confirm the highest level of interest and commitment to bidding for the future contract either as the EPC Contractor or as a technology sub-contractor only. In the event that we bid as the EPC Contractor we would probably bid in partnership with a specialist engineering contractor such as WS Atkins or Imtech. (b) the feasibility of the Council’s proposed timescale for delivery, taking account of your programme for the design, construction and commissioning stages of delivery ? Given the inevitable delays in gaining the necessary approvals and planning permission we would advocate the Council should move as quickly as possible into the tendering process in order to take full account of potential suppliers programmes for the design, construction and commissioning. We would re-iterate the comments we made in our initial submission about the impact of the timings of the award of planning permission and a PPC permit can have on our build schedule but in broad terms our build programme is as follows: (a) (b) (c) (d) Design and detailed engineering – 32 weeks Construction of plant – 60 weeks Dry Commissioning of plant – 12 weeks Wet Commissioning of plant – 16 weeks Waste Recycling and Process Definitions/Efficiencies 2) Given the projected feedstock waste composition (shown in the table below), please state why you consider a wet technology more suited for this type of waste? Ros Roca is one of the most experienced suppliers of AD plants and we have huge experience of treating a very wide variety of different input material. We strongly believe that a wet technology AD is much more suited to Fife Council’s residual waste feedstock. SLR Consulting 86 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 In summary our single stage mesophilic wet AD technology is the most flexible of the various AD technologies as it can treat a greater variety of organic materials independent of water content, the type of impurities and the degree of acidity. In combination with our very sophisticated mechanical separation process this would ensure both very high levels of diversion and much higher efficiency levels in the conversion of the organic part of the waste stream. In particular the advantages of our wet AD process for the treatment of organic waste are as follows: Our technology has been proved in numerous reference plants around Europe. Our wet pre-treatment process removes impurities ahead of the digester which avoids sedimentation problems and clogging, and it also ensures a higher compost quality. Maintenance/operating costs are lower as there are relatively few mechanical parts within our simply designed digester. We use biogas recirculation to mix in the digester and hence there are no moving parts within the digester which could fail. In comparison to other AD technologies especially dry systems, our wet process consumes less energy and therefore more of the energy generated is available for export. In comparison to dry AD technology we believe the capital costs are lower for comparable wet systems. Our wet AD produces lower odour emissions. NOTE: Fife Council plans to expand its kerbside recycling services the quantity of paper & card and garden waste in the residual introduction of a kerbside collection service for kitchen waste is unlikely. Hence the composition of the residual waste feedstock for expected to be as shown below: Waste Composition Paper & cardboard % of total waste input 26.2% Kitchen waste 26.5% Garden waste 4.8% Plastic Glass 13.6% Metal 4.4% Other combustibles 5.1% Fines 3.7% Textiles 2.9% Misc non-combustibles 1.1% Soil & other putrescibles 3.6% 8.0% SLR Consulting and reduce waste; the considered the plant is 87 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 3) Should the Council decide to collect kitchen waste at kerbside, how would it influence your decision on the process? We would regard the introduction of the kerbside collection of kitchen waste as being very favourable for our process. As we have described above our technology whilst being very flexible, is particularly suited to separation of the organic waste stream. The separation of kitchen waste at source from the rest of the MSW stream will be beneficial in terms of our process efficiency and it will also simplify the separation process within the plant ahead of the material entering the digestion process. 4) Based on the waste composition above, how efficient is your process in recovery of recyclables? Please provided details of each material stream recovered for recycling and/or RDF production (pre and post AD) using your process and the material recovery rates and quality. Although we have built a variety of plants particularly in Spain which recover recyclables and/or provide material for RDF we have not collected detailed information on the amounts recovered from each material stream and the subsequent quality of the material. As we do not operate plants it has not been possible to generate this type of information in the timescales required. 5) Based on the waste composition above how efficient is the process in conversion of the organics fraction in the incoming feedstock into biogas and energy production? Please provide details of the percentage of the organic fraction in the plant feedstock that goes for digestion and the biogas production rates (per unit of feedstock, per unit of VS in the digestion feedstock), methane content and energy recovery efficiencies (heat and power). The biodegradable fractions of the waste specified above are paper and kitchen waste. It can be assumed that also part of the fines is also biodegradable. It can therefore be assumed that 50-60% of the organic dry matter of the biodegradable waste fraction will be converted to biogas. Per ton of organic dry matter the specific biogas production is 500–600 Nm3. The methane concentration is 60–70% volume. 6) Fife Council aspire to achieve a recycling rate of 44% by kerbside recycling and bring sites by 2009 and 47% from 2010 onwards. In order to achieve Scotland’s future recycling targets, additional material will have to be recovered for recycling from the residual household waste fraction as shown in the table below. What separation/treatment technology would you propose to deliver these targets in the long-term? Please also refer to waste composition shown below to respond to this question. Year 2009 % Scotland recycling target Estimated % recycling required from residual household waste 0 40% 0 2013 50% 3% 2020 60% 13% 2025 70% 23% 2010 SLR Consulting 88 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 As we have described in our response to question 2 we believe that our wet single stage mesophilic AD process is by far the most appropriate treatment technology for the long term primarily because its flexibility provides the maximum scope to deal with any change in the composition of the waste stream and furthermore our long term operating costs are lower. It should also be recognised that with fewer mechanical parts our system is far less exposed to a potential costly and lengthy shutdown which could be caused by mechanical failure within the digester. Our mechanical separation process will also utilise the most sophisticated equipment available in the market such as Titech plastics separation, ballistic separators, and trommels etc. 7) Based on the given waste composition, Fife Council will have to divert 60,000 tonnes of the incoming BMW fraction by 2019 (i.e. 55% of the total BMW content) to meet their LAS obligations. How would you ensure that these targets can be met? According to the waste composition figures detailed above the biodegradable content of the waste stream accounts for at least 50% of the total waste stream (paper/cardboard and kitchen waste) and this takes no account of the fact that part of the fines will be biodegradable. On that basis assuming very modest growth in waste generation through to 2019 more than 60k tonnes of incoming BMW would be diverted using the Ros Roca AD technology. 8) Fife Council’s municipal waste collections may contain some Category 3 materials, (i.e. uncooked meats from non-kitchen sources, e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet Animal Health requirements. Please confirm how your proposed AD process can be revised (if not already included) to meet EU Standards and UK Animal Health requirements for the processing of Cat 3 ABPR materials. ? We described our sanitation process in detail in our original response. The process has been presented to DEFRA and we have written confirmation from DEFRA that it meets the ABP regulations. We have attached a copy of the letter from DEFRA for information. 9) Please provide a process flow diagram showing the main plant components necessary to reach Fife Council’s objectives and targets. See attached document titled MBT Facility description in which the appendices provide a series of process flow diagrams. Process Outputs – End Markets 10) What flexibility / sensitivity does the plant have with respect to: (a) plant processing capacity; Our process/plant has full flexibility as regards processing capacity. For both of the reception/mechanical separation and pre-treatment stages of our process we normally assume 250 working days a year capacity which allows for sufficient downtime for preventative maintenance and likewise for the dewatering part of our process. We assume initially that these two stages can operate 8 hours a day but it is possible to double and triple shift but this increases the maintenance requirement. The sanitation and air treatment SLR Consulting 89 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 parts of the process can operate effectively 350 days a year 24 hours a day (this again allows for maintenance). Finally the digestion stage can operate 365 days a year 24 hours a day. (b) materials recovery / recycling; and As above (c) reduction in organics content ? Please also comment on the method of testing / measurement for item (c), e.g. DR4, BM100, LOI etc 11) How secure, in your opinion, is the outlet market for the recovered materials (UK and internationally) from residual municipal waste, particularly: (a) recovered materials (paper & card, mixed plastics; metals; glass); The outlet markets for recovered materials will vary over time in line with capacity and the demand for and supply of the respective materials. We believe that the market for each of the respective materials is secure over time but they will be subject to price variations. (b) digestate; Potentially the market for digestate is the most problematic as much work is required at the national level to develop the long term market for both liquid and solid digestate. The most obvious outlets are agriculture and soil restoration. We believe that with the appropriate incentive and development the outlets for digestate should be relatively secure particularly in Scotland but that pricing will remain weak. (c) biogas; (d) electricity; and (e) heat ? We believe that there are huge advantages for adopting AD technology in the context of fuel/energy security both in the short and long term. Biogas and also biofuel (which can be produced through the adoption of cryogenic technology of which Ros Roca is a major supplier) are likely to grow in importance exponentially over the coming years. Without doubt biogas production will increase either to produce electricity for feeding back into the national grid (using motors) or through being fed back into the national gas grid. It will also be increasingly used to generate heat in local CHP systems. We also believe that biogas produced from AD should also be converted to biofuel to run vehicles. This is a far more environmentally sensible method for generating biofuel compared to growing energy crops for bioethanol production. We have a built a plant in Vasteras in Sweden which generates biofuel to run the municipality’s refuse vehicles and buses. Maximum use of all process outputs is required to maximise the benefits of the project to Fife Council. AD Process Details SLR Consulting 90 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 12) Please confirm current status of the proposed reference plants, e.g. fully operational (years of service?), fully taken over, meeting design requirements and process guarantees by client and actually taken over and certified? Please also provide relevant dates. Please see attached schedule 13) How do these reference plants compare to the Fife project in terms of waste feed, tonnage, recycling recovery? We have built a number of MBT/AD plants in Spain which are of a similar nature in terms of waste stream. Barcelona Ecopark 3 is probably the most relevant in terms of capacity and throughput. It handles 240k tonnes of MSW per annum of which 90k tonnes is organic. We have already provided you with details of this plant. 14) Which of the following process guarantees would you be prepared to provide (based on a feedstock composition range)? (a) plant throughput capacity Based on a feedstock composition range Ros Roca would be prepared to give full process guarantees. (b) feedstock composition Ros Roca cannot give any guarantees for the feedstock composition. (c) recyclates recovery and end use markets We are prepared to provide some process guarantees for recyclate recovery in partnership with our relevant equipment suppliers but we cannot provide anything for end use markets which are totally out of our control. (d) plant availability and reliability As we have discussed in the answer to question 10a we can give guarantees concerning plant availability and reliability subject to the full adherence to our maintenance schedules by the operator. (e) biogas production rate (per tonne of volatile feedstock) Again subject to the range of the feedstock composition we can give process guarantees for biogas production. (f) digestate quality As above (g) process effluent loading and treatment As above (h) parasitic energy demand SLR Consulting 91 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 As above (i) CHP energy conversion efficiency As above (j) ABPR Category 3 standard? As we have explained in the answer to question 8 we are fully compliant with the requirements of ABPR Category 3 standard. Development Costs (capital and operating) 15) Please provide a breakdown of the estimated gross capital and operating costs (including for any pre-treatment and energy connections); net cost per tonne of waste treatment, taking into account, potential income from energy and recyclate sales, as well as the sale of renewable obligations certificates (ROCs) and income from the Climate Change Levy. Costs should clearly state all assumptions, e.g. ground conditions, service connections, supporting site infrastructure, site planning and permitting arrangements, operations staff. In the timescales required it has simply been impossible to prepare such a detailed breakdown of development costs. All we can do at this stage is to refer you to a budget offer we prepared for SLR relating to the Shanks/ Avondale project at Falkirk (refer to Diarmid Jamieson). Whilst this was a slightly smaller 120k tpa facility the waste stream was reflective of the typical MSW composition for Scottish Authorities and hence both the mechanical separation, AD and biogas processes are similar to that we would envisage at Fife. Project Delivery and Contract Arrangements 16) Please provide information on your company’s corporate status, including financial standing, annual turnover in the waste sector and staff and plant resources. . Please see attached – in addition Ros Roca operate 2 engineering departments in Germany and Spain with approaching 100 employees with differing skill sets including electrical and mechanical engineering, environmental engineering, and air treatment technology. 17) Please confirm company’s capability (and experience) for providing the Engineering and Procurement Contractor (EPC) function to Fife Council. As an alternative would your company prefer to act as a technology provider to the EPC; if so what specific technologies would you seek to provide? See answer to question 1 – we would re-iterate that Ros Roca is primarily a turnkey supplier of waste treatment solutions and most of the numerous plants we have installed throughout Europe have been supplied on this basis. SLR Consulting 92 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Appendix D: ‘Soft Market Testing’ Responses - Sections A to Section D – Strabag Future Fife Council Contract: Fife Council is considering procuring a contract for the design, construction and commissioning of an MBT/AD plant to operate on approximately 160,000t/a residual municipal waste. It is the Council’s intention to progress the procurement process as quickly as possible and to deliver a fully operational plant in advance of 2012/13 (2nd LAS target year). Project delivery 1) Can you please comment on: (a) your company’s level of interest and commitment to bidding for this future contract, either as (i) EPC Contractor or (ii) technology subcontractor only; and (b) the feasibility of the Council’s proposed timescale for delivery, taking account of your programme for the design, construction and commissioning stages of delivery ? a) STRABAG Environmental Plant GmbH is very interested in the project and would try to participate. Most probably we would try to partner with a UK based company capable to deliver the contract item as an EPC contractor. STRABAG itself would try to limit their supplies to technology. This can be in an open JV or as a subcontractor. b) To build a plant of this size needs approx. 20-24 months. So the County’s time schedule seems still to be realistic and feasible. Important factor of the time schedule is time necessary for planning and approvals. An example time schedule could be: Commissioning period: 7/2012 until 12/2012 Construction period: 7/2010 until 6/2010 Planning and approvals: 1/2010 until 6/2010 Basic Engineering for planning: 9/2009 until 12/2009 Award of contract: summer 2009 Waste Recycling and Process Definitions/Efficiencies 2) Given the projected feedstock waste composition (shown in the table below), please state why you consider a dry technology more suited for this type of waste? NOTE: Fife Council plans to expand its kerbside recycling services and reduce the quantity of paper & card and garden waste in the residual waste; the introduction of a kerbside collection service for kitchen waste is considered unlikely. Hence the composition of the residual waste feedstock for the plant is expected to be as shown below: Waste Composition Paper & cardboard % of total waste input 26.2% Kitchen waste 26.5% Garden waste 4.8% Plastic Glass 13.6% 8.0% SLR Consulting 93 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Metal 4.4% Other combustibles 5.1% Fines 3.7% Textiles 2.9% Misc non-combustibles 1.1% Soil & other putrescibles 3.6% Anaerobic Digestion for Source Segregated Biowaste and organic fraction from MSW Within Strabag´s range of products in Mechanical Biological Waste Treatment you can find two types of Anaerobic Digestion: Wet anaerobic Digestion Dry Anaerobic Digestion Both types have been built for different types of Municipal Solid Waste with a big success. Within our reference plants you can find the world´s largest AD plant for MSW in Barcelona, Spain with a total capacity of 300.000 tpa. The main difference between wet and dry Anaerobic Digestion is that meanwhile a dry AD plant treats the whole mass in the digester a wet one does separate a big amount of impurities from the waste stream before the suspension enters into the digester. This has advantages referring to impurities but has the disadvantage that due to the separation of sediments and floating matter a lot “organic” biodegradable content is separated from the suspension. A very important factor in the separation of floating material is the amount of paper, which is separated. Due to the nature of the feedstock especially organic fraction from MSW causes problems with impurities in a wet system, meanwhile a dry system works based on simple and robust conveyor techniques and takes the feedstock, even with low organic content and high amount impurities through the process. The effect is just a better or worse biogas production and a changed mass balance, as non-organics can not be degraded in a biologic systems. The capability and flexibility of wet anaerobic digestion processes referring to waste streams which are characterized by an elevated amount of impurities (all types of municipal waste) and waste streams with elevated TS-content is very limited, meanwhile dry anaerobic digestion can handle any type of input and dry solid concentrations up to 45 % in the digester. In case the input would be wetter, the whole process can be maintained at a lower TS-concentration. Dry anaerobic digestion plants are today in use for waste types from liquid manure, restaurant and kitchen waste up to the organic fraction of Mixed Household Waste. Dry digesters can handle a wide variety of organic loads to the digesters up to 15 kg VS/m³*d. These high organic loads are used for substances with a very high degradation rate, like energy crops (maize silage, …) in a relatively short residence time (under days). The organic load rate for SLR Consulting 94 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 organic fraction of MSW is usually in a range of 6-8 kg VS/m³*d. In case of liquid waste streams with a low biodegradability (liquid cow manure, …) the organic load is lower corresponding to the TS-concentration of the material. The difference is then just the amount of degraded volatile solids and correspondingly the biogas production yield. The energy consumption of a wet system is much higher than the one of a dry system as the mass has first to be converted into a suspension (e.g. big pulpers have up to 300 kW installed power). Meanwhile a wet AD process of this type needs approx. 70-80 kWh/t input a dry system only has a consumption of 25-30 kW/t. Our references with the big variety of input streams show and demonstrate the enormous flexibility of dry anaerobic digestion processes. It is to be considered, that the higher the TS-concentration is in the feedstock, the more difficult it is to treat the mass in a digester mechanically and in case of wet anaerobic digestion the digestion volume increases, meanwhile a dry anaerobic digester can work up to 45 % of TS-concentration (depending on type of input) without increasing the digestion volume. 3) Should the Council decide to collect kitchen waste at kerbside, how would it influence your decision on the process? There would be no change in strategy as long as the source segregated biowaste still contains garden and green waste. If the waste composition changed due to collection scheme and the biowaste would just contain food waste, STRABAG would offer a wet system. 4) Based on the waste composition above, how efficient is your process in recovery of recyclables? Please provided details of each material stream recovered for recycling and/or RDF production (pre and post AD) using your process and the material recovery rates and quality. See attached balances 5) Based on the waste composition above how efficient is the process in conversion of the organics fraction in the incoming feedstock into biogas and energy production? Please provide details of the percentage of the organic fraction in the plant feedstock that goes for digestion and the biogas production rates (per unit of feedstock, per unit of VS in the digestion feedstock), methane content and energy recovery efficiencies (heat and power). See the attached balances 6) Fife Council aspire to achieve a recycling rate of 44% by kerbside recycling and bring sites by 2009 and 47% from 2010 onwards. In order to achieve Scotland’s future recycling targets, additional material will have to be recovered for recycling from the residual household waste fraction as shown in the table below. What separation/treatment technology would you propose to deliver these targets in the long-term? Please also refer to waste composition shown below to respond to this question. SLR Consulting 95 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 % Scotland recycling target Estimated % recycling required from residual household waste 0 2010 40% 0 2013 50% 3% 2020 60% 13% 2025 70% 23% Year 2009 See attached balances: Meanwhile the 2020 target can still be reached the 2025 target can not realistically be met, as long as the recovery and the conversion of organics into energy does not count into the recycling. We would propose automatic sorting lines for different fractions (PET, Paper, Card, different plastics. These can work quite efficient in relatively clean oversize fractions. That is why the process would foresee automatic sorting lines for the fraction > 140 mm and no sorting in the intermediate fraction. 7) Based on the given waste composition, Fife Council will have to divert 60,000 tonnes of the incoming BMW fraction by 2019 (i.e. 55% of the total BMW content) to meet their LAS obligations. How would you ensure that these targets can be met? According to the EA guidance on monitoring BMW diversion by means of biologic stabilization is measured using the reduction in biogas production potential (BM 100). As this test needs 100 days a relation of BM 100 to DR4 is defined and made. Based on the assumption that the “pure” BMW content is 57,5 % + the organic part of combustibles, fines, textiles, leather, … is the average figure of 68% (as it is assumed for the UK) a BMW diversion of 60.000 t/a would mean a diversion rate of 55 %. In similar models we have reached a BMW diversion of up to 75 %. As long as the legal framework does not change it seems to be realistic target, using the proposed process of Anaerobic Digestion and Aerobic Stabilization. 8) Fife Council’s municipal waste collections may contain some Category 3 materials, (i.e. uncooked meats from non-kitchen sources, e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet Animal Health requirements. Please confirm how your proposed AD process can be revised (if not already included) to meet EU Standards and UK Animal Health requirements for the processing of Cat 3 ABPR materials. ? As long as these Cat. 3 material is source segregated we would consider a pre-AD pasteurization vessel for 1 h at 70° C. If the Cat. 3 material is included in catering waste our plug flow digester in thermophilic operation would be sufficient for the hygienization of this material. SLR Consulting 96 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 9) Please provide a process flow diagram showing the main plant components necessary to reach Fife Council’s objectives and targets. See attached documents Process Outputs – End Markets 10) What flexibility / sensitivity does the plant have with respect to: (a) plant processing capacity; Our process comprises a high flexibility, as the digesters are designed for a nominal retention time of 25 days, which gives space to cover peak loads. The digester filling height also comprises some flexibility, and the highest reserve is in the adjustment of dry solids content in the feedstock. (b) materials recovery / recycling; and (c) reduction in organics content ? See the before mentioned EA guidance on monitoring MBT performance (attached). 11) How secure, in your opinion, is the outlet market for the recovered materials (UK and internationally) from residual municipal waste, particularly: (a) recovered materials (paper & card, mixed plastics; metals; glass); Very flexible market, absolutely not secure. Best market would be the development of an RDF market (industrial fluidized bed boilers, cement kilns, … (b) digestate; Probably a good market, as long as the digestate comes from source segregated biowaste. If the plant treats organic fraction from MSW the best product to be produced would be a “low quality soil conditioner for landfill covering, so the market for digestate is absolutely not secure. (c) biogas; The market for biogas is secure, as the first (and in terms of efficiency worst option of electricity production in CHPs) option is a very safe one. Better solutions today are conversion into vehicle fuel (upgrading and compression) or the option of feeding upgraded biogas into the natural gas grid. (d) electricity; and Absolutely secure (e) heat ? As long as heat consumers are nearby there is a possibility of marketing of excess heat from gas engines. In most of the cases the heat is only used for internal heat consumers. Maximum use of all process outputs is required to maximise the benefits of the project to Fife Council. AD Process Details SLR Consulting 97 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 12) Please confirm current status of the proposed reference plants, e.g. fully operational (years of service?), fully taken over, meeting design requirements and process guarantees by client and actually taken over and certified? Please also provide relevant dates. See attached reference list and some attached reference letters. The plants in Burgos and Salto del Negro have never been commissioned with waste, as there is up to now no waste available as this waste is still bound in existing waste disposal concessions. 13) How do these reference plants compare to the Fife project in terms of waste feed, tonnage, recycling recovery? Most similar sizes are built in Madrid, Spain and in Lille, France. Meanwhile Madrid is working with a very big CHP station (15 MW) using biogas from the plant and landfill gas, the Lille plant is upgrading and compressing the biogas and the final use is as fuel in the public transport service of the City of Lille. 14) Which of the following process guarantees would you be prepared to provide (based on a feedstock composition range)? (a) plant throughput capacity yes (b) feedstock composition yes (for pre-treatment) (c) recyclates recovery and end use markets no (d) plant availability and reliability yes (e) biogas production rate (per tonne of volatile feedstock) (f) digestate quality yes (g) process effluent loading and treatment yes (h) parasitic energy demand yes (i) CHP energy conversion efficiency yes (j) ABPR Category 3 standard? yes yes Development Costs (capital and operating) 15) Please provide a breakdown of the estimated gross capital and operating costs (including for any pre-treatment and energy connections); net cost per tonne of waste treatment, taking into account, potential income from energy and recyclate sales, as well as the sale of renewable obligations certificates (ROCs) and income from the Climate Change Levy. Capital cost estimation, as done for another project similar size with a UK EPC contractor 75 Mio GBP Operational cost: Repair and maintenance cost equipment 4% of 30 Mio/year Repair and maintenance civil works 0,5 % of 45 Mio/year Electric Energy 41 kW/t Personal cost 250 days, 2 shift, 7 persons/shift 14 persons/year Mobile Equipment (wheel loaders, fork lift, truck) 55.000GBP/year Water 10.000 m³/year SLR Consulting 1.200.000 GBP 225.000 GBP 480.000 GBP 560.000 GBP 55.000 GBP 20.000 GBP 98 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Waste Water 15.000 m³/year 90.000 GBP Right now, this is a very brief estimation, but probably very near the reality. Project Delivery and Contract Arrangements 16) Please provide information on your company’s corporate status, including financial standing, annual turnover in the waste sector and staff and plant resources. See attached company presentation file. Please confirm company’s capability (and experience) for providing the Engineering and Procurement Contractor (EPC) function to Fife Council. As an alternative would your company prefer to act as a technology provider to the EPC; if so what specific technologies would you seek to provide? SLR Consulting Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.00010 September 2008 Appendix D: ‘Soft Market Testing’ Responses - Sections A to E Section E - Valorga Future Fife Council Contract: Fife Council is considering procuring a contract for the design, construction and commissioning of an MBT/AD plant to operate on approximately 160,000t/a residual municipal waste. It is the Council’s intention to progress the procurement process as quickly as possible and to deliver a fully operational plant in advance of 2012/13 (2nd LAS target year). Project delivery 1) Can you please comment on: (a) your company’s level of interest and commitment to bidding for this future contract, either as (i) EPC Contractor or (ii) technology subcontractor only; and (b) the feasibility of the Council’s proposed timescale for delivery, taking account of your programme for the design, construction and commissioning stages of delivery ? (a) We can respond as EPC Contractor (b) As we respond in pre-feasibility study, we need 3,5 years for beginning of industrial phase (excluding administrative time). If we begin studies in January 2009, the industrial delivery would take place in July 2012 (waste would be treated from November 2011 for biological starting. Waste Recycling and Process Definitions/Efficiencies 2) Given the projected feedstock waste composition (shown in the table below), please state why you consider a dry technology more suited for this type of waste? NOTE: Fife Council plans to expand its kerbside recycling services and reduce the quantity of paper & card and garden waste in the residual waste; the introduction of a kerbside collection service for kitchen waste is considered unlikely. Hence the composition of the residual waste feedstock for the plant is expected to be as shown below: Waste Composition Paper & cardboard % of total waste input 26.2% Kitchen waste 26.5% Garden waste 4.8% Plastic Glass 13.6% Metal 4.4% Other combustibles 5.1% Fines 3.7% Textiles 2.9% Misc non-combustibles 1.1% Soil & other putrescibles 3.6% 8.0% The advantages of dry digestion rather than wet for MSW are: (e) No risk of decantation in the digesters (for inert fraction) (f) Consumption of water much less important SLR Consulting 100 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 (g) Plant more compact 3) Should the Council decide to collect kitchen waste at kerbside, how would it influence your decision on the process? The cost of kitchen waste collection at kerbside is very important (nearly the same than the cost of treatment by ton). If we consider 160 000 tpa of MSW, we would have 120 000 tpa without kitchen waste. The cost of investment for the two plants would not be very different. But you need another plant for kitchen waste. So our experience shows that the treatment of source segregated kitchen waste is very heavy as the quality from compost produced from MSW is now very correct. 4) Based on the waste composition above, how efficient is your process in recovery of recyclables? Please provided details of each material stream recovered for recycling and/or RDF production (pre and post AD) using your process and the material recovery rates and quality. The recovery of recyclables is carried out with optical separator. We can separate every kind of plastic bottles (high density polyethylene, polyethylene teraphthalate, etc.). The efficiency of the optical separator is more 90%. We need to have more details about the composition of plastic to give you a quantity of recyclable recovery. 5) Based on the waste composition above how efficient is the process in conversion of the organics fraction in the incoming feedstock into biogas and energy production? Please provide details of the percentage of the organic fraction in the plant feedstock that goes for digestion and the biogas production rates (per unit of feedstock, per unit of VS in the digestion feedstock), methane content and energy recovery efficiencies (heat and power). The organic fraction we send to anaerobic digestion is between 40 and 55% for the waste composition (depends of quality of compost requirements and quantity of organic we can send in the refuse). Biogas production rate : 110 -130 Nm3 / ton in the digester Methane content : average 55 % Energy recovery : 37 % of biogas energy for electricity, 42 % of biogas energy for heat (steam and hot water) 6) Fife Council aspire to achieve a recycling rate of 44% by kerbside recycling and bring sites by 2009 and 47% from 2010 onwards. In order to achieve Scotland’s future recycling targets, additional material will have to be recovered for recycling from the residual household waste fraction as shown in the table below. What separation/treatment technology would you propose to deliver these targets in the long-term? Please also refer to waste composition shown below to respond to this question. Year 2009 % Scotland recycling target SLR Consulting Estimated % recycling required from residual household waste 0 101 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 2010 40% 0 2013 50% 3% 2020 60% 13% 2025 70% 23% As we talk about in question 4, we would use optical separator 7) Based on the given waste composition, Fife Council will have to divert 60,000 tonnes of the incoming BMW fraction by 2019 (i.e. 55% of the total BMW content) to meet their LAS obligations. How would you ensure that these targets can be met? Cannot respond to this question, we need more information about LAS obligations 8) Fife Council’s municipal waste collections may contain some Category 3 materials, (i.e. uncooked meats from non-kitchen sources, e.g. butchers/fish shops and raw ham from shops) and the AD plant will therefore require to be designed to the necessary technical standard, in order to meet Animal Health requirements. Please confirm how your proposed AD process can be revised (if not already included) to meet EU Standards and UK Animal Health requirements for the processing of Cat 3 ABPR materials. ? Cannot respond to this question, we need more information about Cat 3 ABPR materials 9) Please provide a process flow diagram showing the main plant components necessary to reach Fife Council’s objectives and targets. For this question, we need more information about the quality of compost and refuse required. Process Outputs – End Markets 10) What flexibility / sensitivity does the plant have with respect to: (a) plant processing capacity; (b) materials recovery / recycling; and (c) reduction in organics content ? Please also comment on the method of testing / measurement for item (c), e.g. DR4, BM100, LOI etc (a) in case of increase of waste quantity, possibility to increase operational time for sorting line and for anaerobic digestion to build one digester more (b) optical sorting : possibility to change type of material recovered (c) reduction of level in the digester. 11) How secure, in your opinion, is the outlet market for the recovered materials (UK and internationally) from residual municipal waste, particularly: (a) recovered materials (paper & card, mixed plastics; metals; glass); (b) digestate; (c) biogas; (d) electricity; and (e) heat ? SLR Consulting 102 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Maximum use of all process outputs is required to maximise the benefits of the project to Fife Council. We have no experience in UK market, so we will contact local company to have more information about the outlet market AD Process Details 12) Please confirm current status of the proposed reference plants, e.g. fully operational (years of service?), fully taken over, meeting design requirements and process guarantees by client and actually taken over and certified? Please also provide relevant dates. All the reference plants are delivered except the one in phase of building : (h) Beijing (i) Fos sur Mer (Marseille) (j) Valence (Sytrad) (k) Shanghai Or in starting phase : Zaragoza Las Dehesas (Madrid) 13) How do these reference plants compare to the Fife project in terms of waste feed, tonnage, recycling recovery? Once we receive compost quality requirements, we will tell you which plants would be the closest in term of tonnage and process. 14) Which of the following process guarantees would you be prepared to provide (based on a feedstock composition range)? (a) plant throughput capacity OK (b) feedstock composition (c) recyclates recovery OK, if more detail on plastic composition and end use markets (OK after contact with local company) (d) plant availability and reliability (OK) (e) biogas production rate (per tonne of volatile feedstock) (OK) (f) digestate quality (OK) (g) process effluent loading and treatment (OK) (h) parasitic energy demand (OK if it means electrical consumption of plant ?) (i) CHP energy conversion efficiency (OK) (j) ABPR Category 3 standard? (to be studied) Development Costs (capital and operating) 15) Please provide a breakdown of the estimated gross capital and operating costs (including for any pre-treatment and energy connections); net cost per tonne of waste treatment, taking into account, potential income from energy and recyclate sales, as well as the sale of renewable obligations certificates (ROCs) and income from the Climate Change Levy. Costs should clearly state all assumptions, e.g. ground conditions, service connections, supporting site infrastructure, site planning and permitting arrangements, operations staff. SLR Consulting 103 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 We can not give these elements at this stage of our study Project Delivery and Contract Arrangements 16) Please provide information on your company’s corporate status, including financial standing, annual turnover in the waste sector and staff and plant resources. . Our company is the French subsidiary company of Urbaser (turnover 1 200 M€, staff 30 000) specialised in waste sector (subsidiary company of ACS group (3rd group in Europe for construction, 20 000 M€, staff 107 000). Our turnover is 122 M€ (staff : 140). 17) Please confirm company’s capability (and experience) for providing the Engineering and Procurement Contractor (EPC) function to Fife Council. As an alternative would your company prefer to act as a technology provider to the EPC; if so what specific technologies would you seek to provide? For all our plants in France, we provide EPC. For international market, we can either provide EPC or being a subcontractor for anaerobic digestion or more (sorting line, post treatment, WWTP, biogas up-grading, etc.) SLR Consulting 104 Fife Council Organic Municipal Waste Processing by AD: Appraisal APPENDIX E: SLR Ref: 405.0698.0010 September 2008 Technical Overview of AD Technology SLR Consulting 105 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Overview of AD Technology A key aspect of this AD technology review is to identify from the known AD technology providers, which are the most appropriate AD technologies for the particular application. AD technologies vary widely in their design, configuration, engineering and performance and are not uniform. This section gives a brief overview of the available AD technologies and their main advantages and disadvantages in order to provide some background for the following AD technology review. It is followed by the description of the two-stage screening process that was used to identify the AD technologies most suitable for the requirements of Fife Council. The main AD processes available can be differentiated into: Single stage/ two stage Wet/ dry digestion Mesophillic/ thermophillic Batch flow process/ continuous flow process The digestion process essentially consists of two steps. During the hydrolysis and acetogenesis the organic waste is broken down into glucose, amino acids and then fatty acids, acetic acids and hydrogen. In the second stage, the methanogenesis, these products are converted into methane-rich gas. Single stage AD plants only comprise of one digester. Hence, both biological process stages take place in the same reactor. The advantage of single stage processes are the comparatively simple process configuration, the smaller footprint required and the reduced investment costs. However, both stages require different optimum conditions (i.e. different pH), which prolongs the required residence time inside the reactor to achieve similar levels of degradation achieved in i.e. two-staged reactors. In two-staged processes the hydrolysis/ acetogenesis is separated from the methanogenesis to compliment the different biological process requirements. The provision of optimum conditions in each reactor for the two stages results in reduced residence times or allows to achieve increased degradation at the same residence time. It also allows better control of the biological processes, which may result in higher gas yields. The disadvantages of two-staged processes are the more complex process control, the bigger footprint required and the increased energy requirements. Dry anaerobic digestion processes operate with a dry solids content of greater 15%. The waste is fed into the digester via screw conveyors and mixed inside the digester with paddles for homogenisation. This method is preferably used where the paper/ cardboard fraction of the incoming waste is high. The advantage of dry digesters is the smaller digester volume required due to the low moisture content allowing a smaller plant footprint and also producing less wastewater. Materials with a very high dry solids content however (i.e. >40%) can lead to transport problems within the system. Wet digesters generally operate with a dry solids content of around 10%. The high moisture content allows for good transport conditions, good mixing, good heat transfer and improved gas flow, but may cause a problem with floating layers, especially when treating residual household waste. Contaminants are often removed in a first stage pulper making use of the float/sink principle. The required high moisture content of waste feed requires bigger plants and therefore higher investment costs due to the much larger volumes treated. SLR Consulting 106 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Mesophilic plants are operated between 30-40°C, thermophilic plants are operated at around 55-58°C. The biological degradation process speeds up with increasing temperatures, which leads to reduced retention times or higher gas yields that can be achieved with thermophilic digestion processes. At the same time, the high temperatures allow the hygenisation of the treated material in accordance with the Animal-By-Product Regulations. The advantages of the mesophilic process are that it is less susceptible to variations in temperature and pH concentrations and that less energy is required to heat the digester(s) providing increased revenue. In continuous digesters the waste feed and the digested material are fed to/ extracted from the digester continually or in very short intervals. Continuous systems are technically complex and hence require more capital expenditure. On the other hand they provide a steady gas flow both in terms of quantity and quality, allowing downstream processes to be operated at optimised conditions. Batch systems are very simple processes. The reactors are filled, left for a certain residence time and then emptied again. The filling and emptying of the reactors is often manual and therefore requires increased operating time. Due to the progressing degradation and the resulting reduced availability of readily available volatile solids the biogas yield and the biogas quality deplete with ongoing residence time. This can partly be overcome by inoculating the material with centrate/ leachate within the reactor. If a steady gas yield is required the filling of the reactors can be staggered to achieve a quasi-continuous process. Batch processes require less investment and are usually used where the main focus does not lie on energy production. SLR Consulting 107 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Consulting SLR Ref: 405.0698.0010 September 2008 108 Fife Council Organic Municipal Waste Processing by AD: Appraisal APPENDIX F: SLR Ref: 405.0698.0010 September 2008 Technology Summary Sheets SLR Consulting 109 Fife Council Organic Municipal Waste Processing by AD: Appraisal APPENDIX G: SLR Ref: 405.0698.0010 September 2008 Technology Performance Parameters and Risk Profile SLR Consulting Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR110 Ref: 405.0698.0010 September 2008 Table G-1: Plant Technical Performance Parameters and Risk Profile Plant Performance Risk Description Mitigation / Comments Parameter Risk Allocation Council Shared Contractor 1. Feedstock A. Change in feedstock composition Changes in feedstock composition due to annual / seasonal factors (garden waste) or consumer trends may alter the organics content of the feedstock and therefore related aspects of the plant performance. Council should ensure that plant performance is linked to a feedstock composition ‘envelope’ in the Contract Docs / Specification / Process Guarantees. This will ensure that this risk is shared rather than borne entirely by the Council. X 2. Technology Performance A. Plant capacity / throughput C. Recovery of materials for recycling (and organics for digestion) Plant is unable to process the design feedstock tonnage – expressed as annual tonnage but also as tonnes per hour for key M&E plant items. Plant is prone to failure / malfunction of key equipment items, resulting in nonavailability of the plant as a whole for the acceptance of feedstock. and is out of service Contractor to demonstrate and guarantee minimum levels of facility reliability and availability. Plant underperforms with respect to recovery of materials for recycling, RDF or digestion. D. Biogas production / Biogas production rates and quality B. Plant reliability / availability Overall plant capacity and also of individual equipment items should be clearly set out in the Project Specification. This will ensure risk lies with the Contractor. Specification should include minimum reliability / availability criteria (normally 85-90% minimum). Also detailed process design should include requirement for ‘off the shelf items’ and ‘duty / standby’ critical items (pumps, valves fans etc) Council should ensure that plant performance is linked to a feedstock composition ‘envelope’ in the Contract Docs / Specification / Process Guarantees. This will ensure that this risk of technology underperformance lies with the Contractor (where the feedstock remains within the specified composition envelope) Council should ensure that minimum process SLR Consulting X X X SLR111 Ref: 405.0698.0010 September 2008 Fife Council Organic Municipal Waste Processing by AD: Appraisal methane content (including methane content) are less than that agreed in the Contract. E. Reduction in biodegradable content of feedstocks The reduction in BMW across the process is less than that agreed in the Contract – with LAS implications for the Council. F. ABPR compliance (approved biogas plant) Plant fails to obtain formal approval from Defra’s Animal Health unit as an approved biogas plant for processing Category 3 ABPR materials. Digestate quality is poor (contaminated) and not suited to the intended end-use (e.g. use of CLO for landfill restoration). G. Digestate Quality H. Plant energy demand / output I. Plant process water demand J. Process Effluent K. Plant air quality standards Plant annual energy demand exceeds that in the Contract – thus reducing the available energy to the operator and the plant revenue from sales. Plant annual process water demand exceeds that in the Contract – thus potentially increasing the operating costs. Plant annual process effluent (quantity and loading) discharge requirements exceeds that in the Contract – thus potentially increasing the operating costs. Plant fails to meet minimum air quality standards for an operating plant – set out in planning consent and / or operating waste guarantees are included in the contract with respect to (a) biogas production (Nm3/annum) and (b) average methane content (%) – with both based on mass of volatile solids (VS) of input feedstocks. Guarantees should also be provided for gas quality (H2O, particulates H2S etc) Council should ensure that minimum process guarantees are included in the contract with respect to BMW reduction – measured in accordance with SEPA requirements, i.e. using Loss of Ignition (LoI) as the method of measurement. Must be included as a specific item in the Design Specification Ensure Specification clearly sets out the quality requirements for the digestate – taking account of the intended end-use. Since digestate quality is linked to the feedstock, as well as the process, this is likely to be a shared risk. Ensure Contractor provides guarantee of the maximum plant annual energy demand in his process guarantees. Ensure Contractor provides guarantee of the maximum plant process water demand in his process guarantees. Ensure Contractor provides guarantee of the maximum process effluent discharge requirements (quantity and loading) in his process guarantees. Ensure Contractor provides guarantee that Facility will meet requirements of facility Planning Consent and operating permit (PPC) conditions SLR Consulting X X X X X X X X Fife Council Organic Municipal Waste Processing by AD: Appraisal management license / PPC permit L. Plant odour levels M. Plant noise control Plant fails to meet minimum odour standards for an operating plant – set out in planning consent and / or operating waste management license / PPC permit Plant fails to meet minimum noise control standards for an operating plant – set out in planning consent and / or operating waste management license / PPC permit and all relevant noise at work and health & safety legislation. SLR112 Ref: 405.0698.0010 September 2008 and all relevant legislation. Design to specify number of air changes or air flow rates for treatment system. Since there is an operational element to this, this may be a shared risk. Ensure Contractor provides guarantee that Facility will meet requirements of facility Planning Consent and operating permit (PPC) conditions and all relevant legislation. Since there is an operational element to this, this may be a shared risk. Contractor to guarantee that Facility will meet requirements of facility Planning Consent and operating permit (PPC) conditions and all relevant noise at work legislation. SLR Consulting X X Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR113 Ref: 405.0698.0010 September 2008 SLR Consulting 114 Fife Council Organic Municipal Waste Processing by AD: Appraisal APPENDIX H: SLR Ref: 405.0698.0010 September 2008 Composting Position Paper SEPA, September 2004 SLR Consulting 115 Fife Council Organic Municipal Waste Processing by AD: Appraisal APPENDIX I: SLR Ref: 405.0698.0010 September 2008 Overview of ROCs and CCL Regime SLR Consulting 116 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 Renewable Obligation Certificates and Climate Change Levy Regime For each MWh of renewable energy generated, a tradable certificate called a Renewables Obligation Certificate (ROC) is issued38,39,40,41. Suppliers can meet their obligation by: acquiring ROCs; paying a buy-out price of £34MWh (current value; will vary over time); or a combination of acquiring ROCs and paying a buy-out price. When a supplier chooses to pay the buy-out price, the money they pay is put into the buy-out fund. At the end of the 12-month obligation period, the buy-out fund is distributed to ROC holders. The price for a ROC is determined by a six monthly auction. The results of the last auction in February 2008 suggest that the value of a ROC from gasification/pyrolysis of MSW-derived biomass would similar to that for pure biomass, i.e. 5.3p/kWh or £53/MWh. The value of a ROC will vary depending on the availability of renewable energy generating capacity. As a consequence the value of the buy-out price will vary depending on how many ROCs are on the market. The buy-out price sets the rate which suppliers need to pay if they do not present sufficient numbers of Renewables Obligation Certificates (ROCs) to meet their obligations under the scheme. Ofgem has also announced the mutualisation ceiling for the same period. Mutualisation occurs if there is a shortfall in the RO buy-out fund over a certain amount, for example, if a supplier with an obligation goes into insolvency. This amount is set by the Department of Trade and Industry and the Scottish Executive. If mutualisation is triggered all other suppliers that have met their obligation are required to make additional payments to make up this shortfall. In 2007-2008 mutualisation will be enforced if the shortfall reaches £7.9m in England & Wales and £790,000m in Scotland. In 2006-07 the level was £6.7m in England & Wales and £670,000 in Scotland. Mutualisation has not been triggered since its introduction on 1 April 2005. The total amount that all suppliers would have to pay to cover any shortfall under mutualisation is capped. This is known as the mutualisation ceiling. For 2007-2008 in England and Wales the ceiling will be £206,400,000 and in Scotland £20,640,000. In 2006-2007, the mutualisation ceiling was set at £200,000,000 in England & Wales and £20,000,000 in Scotland. Both the mutualisation ceiling and the buy-out price are updated each year by Ofgem to reflect changes in the Retail Prices Index (RPI). 38 http://ofgem2.ulcc.ac.uk/temp/ofgem/cache/cmsattach/19241_April_2007_Final_Large_.pdf? wtfrom=/ofgem/work/index.jsp&section=/areasofwork/renewobligation 39 http://www.ofgem.gov.uk/Sustainability/Environmnt/RenewablObl/Pages/RenewablObl.aspx 40 http://www.opsi.gov.uk/si/si2002/20020914.htm 41 http://www.berr.gov.uk/files/file39497.pdf SLR Consulting 117 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 In addition to the ROC value alone, there are other financial benefits that can be gained by generating onsite power. These comprise the following: the pool price for the power; CCL (£4.30/MWh); embedded generation; distribution use of system; distribution and Transmission losses; Transmission Use of System Charges (Triad); Balancing System Use of System charges; Elexon Charges Embedded benefits typically add circa £1-2/MWh to the revenue stream for a generator, while the Triad can be a significant windfall: the 2006/07 triad charge for the South West is £22.22/MW. ROCs are “sold” on a forward basis before the out-turn is published via two basic routes of whereby both the generator and purchaser are “estimating” the out-turn price in order to assess the most favourable route for selling/purchasing ROCs: • • Fixed price: – fixed and final payment upon transfer of ROCs; – influenced by purchasers view of build rate, generation volumes, supplier default, cost of cash and margin view. Processing: – % buyout / %recycle or fixed fee taken from recycle; – Buyout payment made at transfer – recycle payment when Ofgem publish recycle fund (typically November after the end of the Compliance Period); Generator take the risk on recycle fund; i.e. build rate, generation volumes, supplier default. – Power is sold usually via a long-term power purchase agreement (PPA), which typically comprises; – a floor price for the electricity c.a. £20/MWh; – electricity price indexed against an industry report NOT RPI; – ROC at a percentage of the Buyout and a percentage of recycle (i.e. 90%/85%); LEC and embedded benefits - % sharing basis (i.e. 85%); – The value of the PPA is a total of about £60/MWh over 10 years and significantly removes the Regulatory Risk. The PPA provider will retain most of upside risk and run the risk of market downside. The Long-term PPA provides a guaranteed minimum price over a contract term that allows debt to be secured. Lending is against the creditworthiness of the purchaser of the power. Potential financiers wish to see any risk taken by the power purchaser, in return for a discounted energy or ROC price. SLR Consulting 118 Fife Council Organic Municipal Waste Processing by AD: Appraisal SLR Ref: 405.0698.0010 September 2008 It is difficult to predict the long term ROC price, although as supply and demand equalises with additional renewable energy capacity being brought on line, the price would be expected to fall, most likely to the buyout price of 3.4p/kWh (£34 per MWh). It is proposed that from April 2009 all electricity produced by ATT technologies will qualify for double ROCs i.e. 10.6p/kWh, based on the current ROC value. The total value of MWh, including the other related contributions, makes a single ROC currently worth about £85/MWh: a double ROC would be worth about £135/MWh. ROCs are calculated based on the biomass content of the waste for incineration based systems. The government is to proceed with the introduction of ‘deeming’ the biomass content of MSW but will begin with a lower deemed level of 50% fossil fuel energy content that will increase over time to 65% following a trajectory in line with the Government’s waste policy. This is designed to allow operators the opportunity to present Ofgem with evidence that the fossil fuel content is lower than the deemed level and look to make the fuel measurement system more flexible. Hence a 90% biomass content fuel will receive 0.9 ROCs per MWh of electricity generated (1.8 ROCs /MWh for gasification), while a 50% biomass fuel will receive 0.5 ROCs per MWhe (1.0 ROCs /MWh for gasification). SLR Consulting