Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy • Proven Commercial Technology • Environmentally-Sound; Sustainable • Economic Wheelabrator Technologies Inc. A Waste Management Company Wheelabrator Experience and Qualifications • Wheelabrator – a wholly owned subsidiary of Waste Management – WM has been on island for more than 15 years • Operate 21 facilities – 16 Waste –to-Energy – 609 MW – 5 other energy plants – 227 MW • Over 30 years of operating experience • Serves more than 500 municipalities Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy • A key component of a well developed solid waste management plan • Reduces waste volume by over 90%, conserving landfill capacity while providing renewable energy to the island • U.S. Environmental Protection Agency: Waste-to-energy plants generate electricity “with less environmental impact than almost any other source of electricity.” Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy Provides More than Just Disposal • Reduces: - greenhouse gases (European Environmental Agency Briefing 01-2008, ISSN 1830-2246) - dependence on imported oil • Complements Hawaii’s sustainability goals and recycling Wheelabrator Technologies Inc. A Waste Management Company Waste to Energy • What would the plant accept? – County municipal solid waste remaining after recycling – confidential documents/records (assured destruction) – Incidental waste tires • What would the plant not accept? – Green waste – Post-sorted recyclables – Hazardous waste – Medical waste Wheelabrator Technologies Inc. A Waste Management Company Location of Project Wheelabrator Technologies Inc. A Waste Management Company Waste to Energy Plant (attached to County Sort Station) Wheelabrator Technologies Inc. A Waste Management Company Waste to Energy Plant (not attached to County Sort Station) Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy Technology Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy Environmentally-Sound Sustainable Wheelabrator Technologies Inc. A Waste Management Company Environmental Compliance •Highly regulated facility – Oversight would be by: •County •Hawaii Department of Health (multiple branches) •U.S. EPA (multiple branches) •Continuous emissions monitors •Extensive, annual emissions testing with DOH oversight •An initial Environmental Analysis Report to be completed under the initial contract phase. •If project moves forward after initial period, the permit process will occur over 1-2 year period with much public input Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy Overview • Full time Environmental, Health and Safety specialist at all Wheelabrator facilities • All of Wheelabrator’s facilities certified by OSHA as among the safest worksites in the Country – Voluntary Protection Program Star workplaces – New plants will be, too • All workers are subject to initial and annual health screenings Wheelabrator Technologies Inc. A Waste Management Company Recently Raised Issues Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy Technology “Old Technology”??? • Constantly improving the Technology – Fourth generation of boiler design since the 1970’s – Reduced maintanence – Improved energy per ton of trash • Collaboration between Wheelabrator and Von Roll (Switzerland) – Von Roll : second largest waste-to-energy vendor in the world – Working relationship for more than 30 years Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy “No one’s building these plants anymore” • Europe - 100 new waste-to-energy plants by 2020 • Finland plans to triple it’s waste-to-energy capacity by 2016 • A new waste-to-energy unit began operation in 2007 in Florida, with another to be completed by 2009 • Expect contracts for three more plants to be issued in US in 2008 Wheelabrator Technologies Inc. A Waste Management Company Waste-to-Energy and Recycling Wheelabrator Technologies Inc. A Waste Management Company • Recycling needs to be addressed regardless of Disposal Method chosen by County • Recycling and Waste-to-Energy are NOT mutually exclusive - Waste-to-energy and recycling are compatible and complimentary Wheelabrator Technologies Inc. A Waste Management Company Waste Management in Europe Source: European Environmental Agency, 2007 %Recycling + Composting %Waste-to-Energy Landfilling 120 100 8 18 12 8 6 20 13 32 80 22 35 36 25 55 47 54 48 60 35 40 10 60 57 55 52 20 45 40 39 35 33 Denmark Switzerland Finland France 0 Austria Belgium Germany Netherlands Wheelabrator Technologies Inc. A Waste Management Company Sweden Waste-to-Energy Economic Wheelabrator Technologies Inc. A Waste Management Company Economic • Total Cost of Project includes: – Construction Cost – Operating cost (offset by tip fee and electric revenues) • Wheelabrator has estimate of construction cost – working to refine and firm-up guaranteed number • County does not have a firm power price yet – Power Price drives final economics Wheelabrator Technologies Inc. A Waste Management Company Economics •Waste-to-Energy - higher capital cost - lower operating costs •New Landfill -high capital cost -high, and escalating, operating cost •Trucking to West Side Landfill - low capital cost - high, and escalating, operating cost •Barging to Mainland -low capital cost - high, and escalating, operating cost Wheelabrator Technologies Inc. A Waste Management Company Impact of Energy Price Increases on Costs of Alternatives •Between 1997 and 2007, oil prices increased at 14% per year. Annual Average World Oil Price (U.S. Department of Energy) 80 70 World oil prices increased at an average of 14% annually from 1997 through 2007. 60 50 40 Oil prices presently over $100 per barrel. 30 20 10 •Increasing oil prices increase the cost of landfilling, trucking and barging. 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 0 •Increasing oil prices decrease the cost of wasteto-energy Wheelabrator Technologies Inc. A Waste Management Company Impact of Energy Price Increases on Waste-to-Energy Income Lifetime cost of new landfill is $263 million County of Hawaii Landfill vs WTE#5 and WTE#6 335.00 285.00 Landfill Energy Price Escalating @ 1% 185.00 Energy Price Escalating @ 3% 135.00 85.00 35 33 31 29 27 25 23 21 19 17 15 13 9 11 7 5 3 35.00 1 Tipping Fees 235.00 Years Wheelabrator Technologies Inc. A Waste Management Company At 1% increase in energy price, waste-to-energy lifetime cost is $251 million At 3% energy price increase, waste-to-energy lifetime cost is $169 million Finishing the Process • Within 180 days after signing contract: - Wheelabrator refines lump sum capital cost - County negotiates with HELCO on electric sales Both numbers are needed so County can make an informed decision. County can make a “go” or “no go” decision on cost. • Within 270 days after signing contract: - Wheelabrator completes Environmental Analysis Report County makes a “go” or “no go” decision with this information • County can terminate at each step -- at no cost to County Wheelabrator Technologies Inc. A Waste Management Company