How can Energy-from-Waste work in the Caribbean?

CSEF III, St. Kitts, September 13-14, 2012

First is Proven EfW Technology

No pre-sorting or pre-treatment

Highest emission standards, proven many times

(Gasification/) Combustion
Clean metals are recycled from ash Ash is only 10% of waste volume Ash can be used in road construction, as landfill cover

Steam Boiler

Air Quality Control

Steam Turbine

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

Hitachi Zosen Inova alone has 475 reference plants

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239 209

Americas Europe Asia Australia

24 239 209 3

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

Advanced or New Technologies: compare carefully !

What waste is compared ? Is cost and power consumption of pretreatment included? An engine is not as good a combustor as a specially designed combustion system: 2 sec @ 850C Emissions ?

How much waste is going back to landfills?

Pre-sorting ? Pre-treatment ? Gasification Syngas Cleaning

Gas Engine or Gas Turbine

Availability ?

Normally good ash quality if vitrified If not, does all the Carbon go out? Will projected energy efficiency be reached ? Are soot and tar formation under control?

Reagent Handling Product Recovery

How clean are these products ? Who will buy these products ? Also on limited island economy? Could they end up as wastes, too ?

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

Key Questions for Technology Comparison

Question Waste Specification Waste Pretreatment Proven EfW Take all (post-recycling) waste No pretreatment required Some advanced thermal technologies Take a limited fraction only Size reduction/homogen. needed, cost not always considered Partial reaction, difficult control soot/ tar issue (by-) product use unclear Syngas may contain lots of different molecules Gas cleaning: big challenge Is comparison made at the same place (after energy recovery)? Often track record over longer period is missing
CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova 5

Thermal Process

Complete combustion, inert ash residue, limited utilization possible Limited variety of flue gas components, proven technologies Not significant compared to other sources, proven - traceable >8000h per year, consistently

Gas Cleaning

Emissions

Availability

One example ot the right technology: Riverside (London), United Kingdom

Largest EfW facility in the UK Hitachi Zosen Inova is full turnkey contractor including jetty and road works

Key Data
Client Riverside Resource Recovery Ltd. end of 2010

80% of waste delivery via barges from Thames River

High efficient plant at higher steam conditions Steam drives a 73 MWel turbine Plant operation assistance during first 4 years by Hitachi Zosen Inova Status 2012: Commercial Operation, Warranty Period

Start-up

Technology
Furnace Energy recovery Flue gas treatment Grate furnace (air-cooled) 4-pass-boiler, turbine SNCR, semi-dry process

Technical Data Fuel Waste capacity Net calorific value Thermal capacity Steam Municipal waste 585000 t/a (3 x 31.8 t/h) 9.0 MJ/kg 3 x 79.5 MW 3 x 54 t/h (72 bar, 427 C)

High-cost plant (~ USD 550 Million): All enclosed, decent architectural treatment Includes a jetty for waste-by-barge delivery UK construction is average-to-high
CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova 6

Second is Cost: typical Tip Fee vs. Power Sales Curve

230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0

Negotiate with Minister of Environment

Tip fee ($/t)

+ smaller/ - larger plant + high/ - low architectural requirements + remote site/ bad soil conditions + higher/ - lower cost of labor & utilities + higher/ - lower cost of capital + full EPC/ -self perform (banks?) + higher/ - lower availability

Negotiate with Utility/ Minister of Energy

50 100 150 Power sales ($/MWh) 200 250 300

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

How much EfW Plant do I need and how do I finance it ?

Questions which influence plant cost Size Architecture Site Business risks Economy of scale too small is expensive Does not need to be expensive Consider logistics, soil, water/power access etc. Development cost, capital cost

Questions which determine how they are paid for Tip Fees Power Sales Is it possible to charge tip fees (taxes or sales fee) Renewable, local stable base load power is great, but: - involve the utility so you can find a win-win situation - sell directly to green companies, use yourselves Can generate a fair revenue, but difficult for islands Subsidies, tax credits, renewable energy credits
CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova 8

Metal Sales Other Means

Third is Politics, Policies, Procedures, Paperwork

Who will be the EfW project carrier? Government? Agency? PPP? Private Firm ? Waste Management Policy: Waste Composition Study: Siting and building permits: are waste flows known and controlled ? is an EfW option foreseen in a master plan ? what are the waste volumes? annual, seasonal? what is the (chemical) composition? water content? (where) is EfW possible?

Community Communication:
Environmental Permits:

What do neighbors want to know? How can you convince eNGOs?

Are the standards/requirements clear? Are the procedures to get a permit clear?

Interconnection Study:
Agreements:

Is the grid operator able and willing to include a new baseload power supply source?
Power Purchase Waste Delivery Land Lease Financing Consulting EPC O&M .

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

EfW Potential in CARICOM states

Municipal (and similar) Solid Waste:

2 2.5 Million tons per year

(authors estimate from UN data and GDP-based per capita assumptions)

Thereof to composting/recycling:
MSW available for EfW: Base-load Renewable Electricity-to-Grid: Compared to Total Electricity Consumption:
Jamaica: ~ 55 MW el (40 + 15 MW)

30 50% (depending on country)

1 1.5 Million tons per year 80 120 MWel ~ 5% only

(recycling markets are less accessible for islands and small economies)

(based on 700 kWh/t net generation from residual MSW as is and without other fuels)

Examples of projects which have been discussed (arranged by size):

Trinidad and Tobago:
Bahamas: Barbados: Cayman Islands: Various smaller islands:

large potential, but low energy cost higher tip fees needed
~ 15 MW el ~ 12 MW el ~ 10 MW el ~ 1 5 MW el range each

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

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Most Important: modern, proven EfW is ideal for the Caribbean

removes waste piles reduces water contamination reduces air contamination due to odor and landfill fires improves carbon footprint

produces power from own resources (~700kWh/ ton waste) reduces dependence from foreign oil (~1 barrel/ ton waste) saves foreign currency budget

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

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What is the Real Question about Renewable Energy ?

or

or

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

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But even better :

and

~ 5 -10 % of energy demand, renewable, lower carbon footprint, base load, > 8000 h per year medium-priced plus Waste Problem Solved !

~ 15 -25 % of energy demand renewable, no CO2 during operation intermittent medium to high - priced

CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova

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Thank You
Hitachi Zosen Inova U.S.A. LLC Peter Chromec, CEO P +1 678 987 2501 M +1 678 381 7546 peter.chromec@hz-inova.com www.hz-inova.com
CSEF III, St.Kitts, Sep. 13-14 2012, Peter Chromec, Hitachi Zosen Inova 14