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Should You be “IN”
on RINs?
Presented by: Adam Klaas, Unison SolutionsBrian Hannon, P.E., Moore+Bruggink
Outline
Overview
RIN Details
Drivers for RNG
Getting Started on Upgrading
Upgrading Technology
Delivery Methods
Case Studies
Questions
Definitions
CNG - Compressed Natural Gas
LNG - Liquified Natural Gas
RNG - Renewable Natural Gas (BioCNG)
GGE - Gasoline Gallon Equivalent, 114,000 BTU/Gal
DGE - Diesel Gallon Equivalent, 129,500 BTU/Gal
RIN - Renewable Identification Numbers, biogas that has been upgraded to renewable fuel
LCFS - Low Carbon Fuel Standard, transportation fuels that reduce CO2 emissions ($/MT, million tons CO2)
RIN Details
https://www.biocycle.net/2017/11/13/101-for-rins/
RIN Type DescriptionGHG Reduction
RequirementPrice
9/18/18
Cellulosic Biofuel (D3)
Municipal wastewater plants and landfill biogas qualify
(Cellulose, hemicellulose, or lignin)
60%$2.20/RIN$3.30/GGE
Advanced Biofuel (D5)
Produced from non-corn starch, renewable biomass
50%$0.365/RIN$0.55/GGE
Driving Factors for RNG
Current operations
Renewable fuel with a low carbon content
Why RNG as Vehicle Fuel?
Source: US Dept of Energy
Getting Started:
RIN Basic Information
A RIN credit is a serial number assigned to each gallon of renewable fuel as it is introduced into U.S. commerce
Federally mandated volumes are in place until 2022
Only biogas used as renewable transportation fuel can generate RINs
RIN Agents - similar to Carbon Credit Exchange Brokers
Federally Mandated RIN Volumes
https://www.epa.gov/renewable-fuel-standard-program/overview-renewable-fuel-standard
Why RNG as Vehicle Fuel?
Current Natural Gas Price: $2.90/MMBTU
Average CNG Price (US): $2.11/GGE
8.8GGE = 1MMBTU
Equals $18.57/MMBTU
RINS are above and beyond the sale price of the fuel
Current D3 RIN Price is $2.20/RIN ($3.30/GGE)
Each RIN is 77,000 Btu
This equates to approximately 1.5 RINS/GGE
This equals an additional $29.04 per MMBTU
Getting Started:
Biogas Upgrading Project
Cost Revenue
Getting Started:
Biogas Quality and testing
bi·o·gas, ˈbīōˌɡas/, noun, gaseous fuel, especially methane, produced by the fermentation of organic matter.
Methane, CH4
Carbon Dioxide, CO2
Nitrogen, N2
Oxygen, O2
Hydrogen Sulfide, H2S Moisture Particulates Siloxanes Volatile Organic Compounds
Biogas to Vehicle Fuel
bi·o·gas, ˈbīōˌɡas/, noun, gaseous fuel, especially methane, produced by the fermentation of organic matter.
Methane, CH4
Carbon Dioxide, CO2
Nitrogen, N2
Oxygen, O2
Hydrogen Sulfide, H2S Moisture Particulates Siloxanes Volatile Organic Compounds
CH4 CO2 N2 O2 H2O H2SO2 H2O H2S
Methane, CH4
88 - 98%
Fuel Quality Specification
Biogas Constituents Raw BiogasSAE J1616 CNG Fuel Quality Specification
Natural Gas Pipeline Fuel Quality*
Methane 50-80% 88% or greater
Wobbe Index 1,250 – 1,420 BTU/ft3 1,400 BTU/ft3 max
Higher Heating Value (HHV) 950-990 BTU/ft3
Carbon Dioxide (CO2) and Nitrogen (N2)
20-50% <2%
Oxygen (O2) 0-1% 6 ppm to 0.2%
Hydrogen Sulfide (H2S) <1,000 ppm ≤4 ppm ≤4 ppm
Water ContentPWDP 10°F below lowest
recorded temp3-7#/MMcf
Siloxanes and Volatile OrganicCompounds
<2,000 ppm ND (Silicon) ND to 1 ppm
Pressure 0-2 psig 3,000-3,600 psig 50 to 900+ psig
*Varies depending on the utility
Natural Gas Utilities Ex ample
PUBLIC SERVICE COMMISSION of WISCONSIN - AUGUST 2018
T ypical Technologies to upgrade biogas
to cng
Membrane
Pressure Swing Adsorbtion (PSA)
Water Scrubber
Amine Scrubber
Cyrogenic Separation
Membrane technology
Membrane separation: membrane allows CO2 pass while retaining CH4. For small to medium installations. Advantages:
Compact, Low Maintenance, Low Energy Demand, Easy Process Disadvantages:
H2S removal step needed, Membranes need replaced, lower CH4 yield than some technologies
Membrane technology
www.researchgate.net/figure/Flow-diagram-of-biogas-upgradation-using-membranes-
Small Scale
Systems_Membrane
Technology
Biogas Inlet Flow (scfm)
Fuel Production (GGE/day)
Fuel Production (DGE/day)
50 185 - 300 160 - 260
100 370 - 600 320 - 520
200 740 - 1,200 640 - 1,040
400 1,480 - 2,400 1,280 - 2,080
Pressure Swing Adsorbtion
Pressure Swing Adsorption or PSA: CO2 is separated using physical properties. Biogas is upgraded using adsorbing material such as activated carbon or zeolites, which absorb carbon dioxide.
For small to medium installations, although can be upsized to large
Advantages: More than 97% enrichment, low power demand, low emissions, can adsorb
both N2 and O2 (to certain extent)
Disadvantages: H2S removal step needed, tail gas needs treatment, relatively expensive
Pressure Swing Adsorbtion
www.researchgate.net/figure/Schematic-flow-sheet-for-upgrading-of-biogas-to-vehicle-fuel-standards-with-pressure_fig5_313812488
Water Scrubber
Water scrubbing: process based on physical absorption employing water as a solvent for dissolving CO2. The reason why absorption in water is employed is that solubility of CO2 in water is many times higher than solubility of CH4 in water.
For Medium to Large Applications
Advantages:
Easy to put in place, Removes both gases and particulates, high purity, good yield, simple technique, no special chemicals or equipment required, neutralization of corrosive gasses
Disadvantages:
Limitation of H2S adsorption, H2S can damage equipment, large water requirement – even with a regenerative process
Water Scrubber
www.researchgate.net/figure/Schematic-flow-sheet-for-water-absorption-with-recirculation-for-removal-of-carbon_fig2_313812488
Amine (Chemical) Scrubber
Chemical absorption is characterised by a physical absorption of the gaseous components in a scrubbing liquid followed by a chemical reaction between scrubbing liquid components and absorbed gas components within the liquid phase.
For medium to large installations.
Advantages: High recovery rate, high efficiency compared to water scrubbers
Disadvantages: Chemicals can be expensive, only removes one component per column, heat
needed for regeneration step
Amine (Chemical) Scrubber
www.researchgate.net/figure/Simplified-process-flow-diagram-of-a-chemical-amine-scrubber-for-biogas-upgrading-27_fig4_313812488
Cryogenic Separation
Cryogenic separation: successive refrigeration to produce liquid CO2 and liquified biomethane (GST technique) or anti-sublimation of CO2 to produce liquid CO2 and biomethane
For Large Applications
Advantages:
Can produce large quantities with high purity, easy scaling up, no chemicals used in process
Disadvantages:
High Energy consumption, quite a bit of equipment relative to other alternatives
Cryogenic Separation
ohioline.osu.edu/factsheet/AEX-653.2
Physcial absorption (organic solvents)
https://www.researchgate.net/figure/Flow-diagram-of-physical-absorption-using-organic-solvents_fig3_313812488
Methods to Deliver RNG
Digester or Landfill
CNG for Vehicles
Dedicated Pipeline
Virtual Pipeline
On Site Fueling Natural Gas Pipeline
Biogas Upgrading System
Michigan Illustrations of Biogas
Upgrading to CNG Quality
Many Landfills around state
Several WRRF’s in process of implementation
Present 2 studies and review high level economics
Case 1: WRRF w/ Anaerobic Digester
6.5 MGD Avg Daily Flow, 10 MGD Design flow
Currently running CHP unit with Biogas
Flaring approximately 60% of biogas
Study to look at optimized use of biogas Reviewed upgrading CHP Reviewed on-site bio-CNG use Reviewed bulk transfer
partnership with local bus fleet Reviewed Pipeline injection
Case 1: WRRF w/ Anaerobic Digester
Approximately 120,000-150,000 cuft/day biogas production Equipment
PSA and Membranes most viable at this size Capital
$1,100,000 stage 2 upgrading equipment $1,300,000 for injection station $500,000 for O2 removal skid $350,000 site prep and misc $360,000 larger gas bag +35% (GC, Mech, Elect., Earthwork, Controls) contractor construction costs +25% engineering, bonding, contingency
If bulk transfer instead of injection No injection station, no O2 removal (saves huge capital) $750,000 in bulk trailers and transfer station
Case 1: WRRF w/ Anaerobic Digester
O&M CHP maintenance (should be reduced since not on biogas) Upgrading skid O2 removal skid Compressors Injection station (maint and meter fees)
O&M (Bulk Transfer) Would reduce O2 skid and Injection Station but have trucking costs
Nat Gas Value: $55,000 RIN Value: $550,000
Don’t forget brokerage fee for RINS (15-25%)!! Increased cogen output on Natural Gas: +$120,000 from today
Case 1: WRRF w/ Anaerobic Digester
Summary and Paybacks
Summary Pipeline Bulk
Capital Cost $ 5,277,010$ 3,385,000$
Revenue $ / Year 801,000$ 781,000$
O&M Costs $ / Year (236,000)$ (353,660)$
Cash Flow $ / Year 565,000$ 427,340$
Simple Payback yrs 9.3 7.9
Advice: Find out pipeline requirements for O2 from utility Find out injection station costs from utility
Case 2: Municipal Owned Landfill
Accepts municipal waste
Currently sending offgas to a cogen unit
High Maintenance Costs and reduced uptime due to extreme H2S levels
Case 2: Municipal Owned Landfill
Approximately 1,000,000 cuft/day biogas production Equipment
More options, but reviewing PSA and Membranes Summary and Paybacks (very preliminary for feasibility)
Summary Current Upgrading
Capital Cost $ 18,871,000$
Revenue $ / Year 710,000$ 5,892,000$
O&M Costs $ / Year -$ (500,000)$
Cash Flow $ / Year 710,000$ 5,392,000$
Loan Payment $ / Year (400,000)$ (1,372,255)$
Cash Flow $ / Year 4,019,745$
Simple Payback Period years 4.7
Q & A
Biogas
Electricity, Heat, Fuel for Vehicles, Grid Injection
Thank you!
Contacts: Adam Klaas, Unison Solutions(563)[email protected]
Brian Hannon, P.E.. Moore+Bruggink(616)[email protected]
