| | Turning a Liability into an Asset: A Landfill Gas-to-Energy Project |
| | 1,89 | | MB | Development Handbook |
| | 139 | | stron |
| | 3404 | | ID | UNITED STATES ENVIRONMENTAL PROTECTION AGENCY |
| | 2001 | | rok |
| | TABLE OF CONTENTS |
| | 1. INTRODUCTION . 1-1 |
| | 1.1 The Benefits of Landfill Gas Energy Recovery. 1-1 |
| | 1.1.1 Environmental Benefits1-2 |
| | 1.1.2 Economic Benefits1-2 |
| | 1.1.3 Energy Benefits 1-2 |
| | 1.2 The EPA Landfill Methane Outreach Program. 1-3 |
| | 1.3 How To Use This Handbook . 1-3 |
| | 2. DETERMINING IF A PROJECT IS RIGHT FOR YOUR LANDFILL2-1 |
| | 2.1 Step 1: Basic Screening for Project Potential 2-2 |
| | 2.2 Step 2: Estimating Gas Quantity2-4 |
| | 2.2.1 Methods for Estimating Gas Flow. 2-4 |
| | 2.2.2 Correcting for Collection Efficiency2-4 |
| | 2.2.3 Comparing Your Gas Flow Rate to Existing Projects . 2-4 |
| | 3. DETERMINING WHAT PROJECT CONFIGURATION IS RIGHT FOR YOUR LANDFILL3-1 |
| | 3.1 Options For Using Landfill Gas3-1 |
| | 3.1.1 Collection System and Flare3-2 |
| | 3.1.2 Gas Treatment . 3-5 |
| | 3.1.3 Energy Recovery System . 3-6 |
| | 3.2 Choosing an Energy Recovery Option . 3-14 |
| | 4. INTRODUCTION TO PART II: DETAILED ASSESSMENT OF PROJECT OPTIONS 4-1 |
| | 5. EVALUATING PROJECT ECONOMICS . 5-1 |
| | 5.1 Economic Evaluation Process. 5-1 |
| | 5.2 Power Generation/Cogeneration . 5-4 |
| | 5.2.1 Step 1: Estimate Energy Sales Revenues . 5-4 |
| | 5.2.2 Step 2: Quantify Capital and O&M Expenses5-9 |
| | 5.2.3 Step 3: Compare Project Expenses and Revenues5-15 |
| | 5.2.4 Step 4: Create a Pro Forma Model of Project Cash Flows . 5-21 |
| | 5.2.5 Step 5: Assess Economic Feasibility 5-22 |
| | 5.3 Sale of Medium-Btu Gas. 5-22 |
| | 5.3.1 Step 1: Estimate Energy Sales Revenues . 5-23 |
| | 5.3.2 Step 2: Quantify Capital and O&M Expenses. 5-25 |
| | 5.3.3 Step 3: Compare Project Expenses and Revenues5-27 |
| | 5.3.4 Steps 4 and 5: Create a Pro Forma and Assess Economic Feasibility . 5-27 |
| | 5.4 Alternative Options 5-29 |
| | 5.4.1 Upgrade to Pipeline Quality Gas. 5-29 |
| | 5.4.2 Vehicle Fuel Applications . 5-29 |
| | 5.4.3 Fuel Cells 5-30 |
| | 5.4.4 Niche Applications5-30 |
| | 5.5 Comparison of All Economically-Feasible Options 5-31 |
| | 5.5.1 Head-to-Head Economic Comparison. 5-31 |
| | 5.5.2 Consideration of Non-Price Factors . 5-31 |
| | 6. ASSESSING FINANCING OPTIONS. 6-1 |
| | 6.1 Financing: What Lenders/Investors Look For 6-3 |
| | 6.2 Financing Approaches . 6-4 |
| | 6.2.1 Private Equity Financing6-4 |
| | 6.2.2 Project Finance 6-7 |
| | 6.2.3 Municipal Bond Financing 6-9 |
| | 6.2.4 Direct Municipal Funding . 6-11 |
| | 6.2.5 Lease Financing. 6-11 |
| | 6.2.6 Public Debt Financing. 6-12 |
| | 6.3 Capital Cost Effects of Financing Alternatives. 6-13 |
| | 7. SELECTING A PROJECT DEVELOPMENT PARTNER7-1 |
| | 7.1 The Partner/No Partner Decision . 7-1 |
| | 7.2 Selecting A Development Partner 7-5 |
| | 7.2.1 Selecting a Pure Developer. 7-6 |
| | 7.2.2 Selecting a Partner (Equipment Vendor, EPC Firm, Fuel Firm, Industrial) . 7-7 |
| | 7.3 Evaluating Individual Firms . 7-9 |
| | 7.3.1 Issuing a Request for Proposals (RFP). 7-9 |
| | 7.3.2 Preparing a Contract . 7-10 |
| | 8. WINNING/NEGOTIATING AN ENERGY SALES CONTRACT . 8-1 |
| | 8.1 Power Sales Contracts 8-2 |
| | 8.1.1 Standard Offer Contracts . 8-4 |
| | 8.1.2 Bidding/Negotiating a Power Sales Agreement (PSA) with an Electric Utility8-5 |
| | 8.1.3 Bidding/Negotiating a PSA with an End User. 8-8 |
| | 8.1.4 Wheeling Arrangements8-10 |
| | 8.2 Gas Sales Contract (Medium or High-Btu)8-12 |
| | 8.2.1 Medium-Btu Gas Sales8-12 |
| | 8.2.2 High-Btu Gas Sales . 8-14 |
| | 9. SECURING PROJECT PERMITS AND APPROVALS. 9-1 |
| | 9.1 The Permitting Process 9-2 |
| | 9.2 RCRA Subtitle D . 9-3 |
| | 9.3 Clean Air Act 9-4 |
| | 9.3.1 Landfill Gas Emissions. 9-4 |
| | 9.3.2 Regulations Governing Air Emissions from Energy Recovery Systems9-5 |
| | 9.4 Local Issues . 9-14 |
| | 9.4.1 Zoning and Permitting . 9-14 |
| | 9.4.2 Community Acceptance 9-16 |
| | 10. CONTRACTING FOR EPC AND O&M SERVICES . 10-1 |
| | 10.1 EPC/Turnkey Contracting10-1 |
| | 10.2 O&M Services Contracting . 10-4 |
| | 10.3 Good O&M Practices . 10-5 |
| | 10.3.1 Collection Systems . 10-5 |
| | 10.3.2 Energy Recovery Systems .. 10-6 |
| | APPENDICES |
| | Appendix A: Calculations of Landfill Gas Energy Recovery Project Costs |
| | Appendix B: List of U.S. EPA Offices |
| | Appendix C: Executive Summary of a Power Purchase Agreement |
| | Appendix D: Sample Request for Proposals for Landfill Gas Energy Project Developer |
| | Appendix E: EPA Memorandum on Pollution Control Projects and New Source Review |
| | (NSR) Applicability |
| | Appendix F: Map and Listing of Nonattainment Areas |
| | Appendix G: Listing of Municipal Solid Waste Landfill Organizations and Related Service |
| | Providers |
| | Appendix H: List of References |
| | Appendix I: Acid Rain Fact Sheet |
| | Appendix J: Glossary of Terms |