Low Carbon Renewable Natural Gas (RNG) from Wood Wastes Site Specific Engineering Design Study

Daniel LeFevers Director, State and Consumer Programs October, 2018 [email protected] - 847-544-3458 Project Background > The Low Carbon RNG from Wood Wastes Engineering Design Study leveraged millions of dollars of previous pilot-scale testing funded by GTI, UPM, Andritz, USDOE, Haldor Topsoe, Pall Corporation, and design work sponsored by European Commission and E.ON. > Funding support for project was provided by California Air Resources Board, Southern California Gas, Pacific Gas and Electric, Northwest Natural and Sacramento Municipal Utility District > RNG technology team members are world experts in gasification, gas clean-up, and conversion technologies. > RNG technology suite is commercially available, with performance guarantees. > Project determined CAPEX and OPEX (+/- 30%) to produce 3 BCF of RNG from wood waste annually. ─ Other project configurations that include power-to-gas and carbon sequestration were analyzed for carbon intensity of RNG produced, additional equipment cost and increase in RNG production up to 7.3 BCF > Goal of project is to provide critical information required to build a commercial facility

2 Special Thanks to the Sponsors of the Project

SoCalGas PG&E Northwest Natural SMUD CARB

3 Special Thanks to Our Project Partners and Host Site

Black & Veatch Leading global engineering & construction firm - 10,500 employees worldwide ANDRITZ Global supplier of equipment and services including gasification systems – 25,000 employees worldwide Haldor Topsoe World leader in Catalyst production and methanation – 2700 employees Stockton Biomass Power Plant (DTE Energy Services) DTE Energy Services provides biomass power and RNG production throughout North America

4 GTI Overview Serving the Energy Industry Since 1941 > Independent, not-for-profit research, technology development and deployment organization > Areas of research include energy production and conversion, delivery and end-use > Research Facilities ─ 18 acre campus near Chicago ─ 200,000 ft2, 28 specialized labs > Technology development focus on improving efficiency and reducing emissions > GTI tackles tough energy challenges turning raw technology into practical solutions

5 GTI Gasification Development History

Development Focus Industrial Fuel Gas Supply Security – Syngas to Products Substitute Natural Gas (SNG) Biomass, Renewables Fuels, Chemicals, SNG Syngas to Power ‐ IGCC

2016 FFTF AGTF

Shanghai Plant ‐ 1995 2000

1990 RENUGAS Pilot Plant

U‐GAS Pilot Plant 1980

Skive ‐ 2007 1970 Early PDU HYGAS Pilot Plant

1960

1950 Zaozhuang ‐ 2007

1941

Dr. James L. Johnson Lab Facility ‐ 1947 Yima ‐ 2012 6 What is Gasification? Products (syngas): > Thermal conversion of carbon‐ GASIFIER CO (carbon monoxide)

based materials with a limited H2 (hydrogen) supply of air or oxygen, into a CH4 (methane) synthetic gas, or syngas (CO/H2 ratio can be adjusted) > It’s not combustion; there’s no FUEL: By-products: burning. Gasification uses only a Coal, Biomass, Wastes H S (hydrogen sulfide) fraction of the oxygen that 2 SORBENT/ would be needed to combust BED MATERIAL CO2 (carbon dioxide) AIR the material. or Oxygen Solids (minerals from fuel) > STEAM An ash/slag remains as a Extreme Conditions: ASH AND residual – Little to no un‐reacted SPENT Pressure = 1 to 30 atm or more SORBENT carbon char remains. Temperature =1600 – 2600 °F

7 Gasification Basics

Raw materials Products Conversion for gasification Building blocks Processes/Separation Gasoline Diesel Biomass Synthesis gas Separation or DME Coal Rearrangement Methanol Natural gas CO, H , CO , CH of molecules etc. 2 2 4 Hydrogen Ammonia RNG Particulate and tar removal etc.

8 The RNG Process

TAR WATER GAS ACID GAS GASIFIER REFORMER QUENCH SHIFT REMOVAL (AGR)

FILTER COMPRESSOR CO2 DEHYDRA‐ BIOMASS TION

H2S RNG METHANE

STEAM  Dry the biomass with waste heat OXYGEN  Feed dry biomass to gasifier STEAM  Remove tars and dust CO  Shift to get H :CO ratio = 3:1 2 2 METHANATION PLANT  Compress to pipeline pressure

ASH  Remove acid gases including CO2  Convert syngas to methane  Remove remaining moisture

9 Emissions Profile Compared to Existing Biomass to Electricity Facilities

Source of biopower data: Assessment of the Emissions and Energy Impacts of Biomass and Biogas Use in California, Provided to the California Air Resources Board by Marc Carreras‐Sospedra, Professor Donald Dabdub University of California, Irvine; in collaboration with Robert Williams California Biomass Collaborative, January 14, 2015

10 GTI-Andritz Fluidized-Bed Biomass Gasifier

> Efficiency ─ carbon conversion 95-98%+ > Flexibility ─ biomass, coal, and combinations ─ high- to low-quality fuels > Versatility ─ Air-blown, enriched-air or oxygen ─ Atmospheric to high pressure OXYGEN or > Operability ─ simple, single-stage, deep bed thermal flywheel ─ low temperature with long component life ─ good turndown capability, 30 – 50%

11 12 13 Project Scope of Work

1. Site evaluation 2. Engineering 1.1. Regional biomass resource analysis 2.1. Preliminary site layout 1.2. Site analysis 2.2. Bullet scope for process plant 1.3. Life cycle analysis 2.3. Process flow diagrams 2.4. Equipment specifications

2.5. Electrical specifications 2.6. General arrangement drawings

3. Process modeling and capital cost 4. Project scope definition estimate 4.1. Project scope book 3.1. Review of existing data 4.2. Feedstock testing and characterization plan 3.2. Update of modeling for Stockton 4.3. Estimated budget and schedule for commercial facility facility 3.3. Capital cost estimate 3.4. RNG production cost estimate 3.5. Power-to-gas option assessment

14 Mix of Wood Waste for Design Study

Biomass Type Percentage Agricultural Waste 28% Forest Wood Waste 36% Urban Wood Waste 36% Total (310,000 tons annually) 100%

15 Lifecycle Carbon Intensity (CI) of RNG production

Cases Description

Base Design case of GTI’s RNG production / 2.9 BCF of RNG Case 1 Base case with carbon capture and sequestration / 2.9 BCF of RNG

Case 2 Maximum RNG by combining CO2 with H2 generated from an electrolyzer using renewable electricity (power‐to‐gas) 7.3 BCF of RNG

Case 3 Replacing the ASU with an electrolyzer; byproduct H2 is used to produce additional RNG (power‐to‐gas) /4.1 BCF of production

Cases Base† Case 1 Case 2‡ Case 3‡ Feedstock transportation and treatment 6.47 6.47 0.995 1.45 Gasification 8.43 8.43 0.0321 0.0468 Residual transportation 0.0850 0.0850 0.0410 0.0599 Syngas cleanup 5.99 5.99 0.0349 0.0572 RNG production 0.0418 0.0418 0.00737 0.00907

Miscellaneous¶ 3.54 3.54 0.686 0.807 Electricity displacement* -8.60 -8.60 0 0 RNG transportation 0.856 0.856 0.856 0.856 Carbon capture 0 -77.4 0 0 Carbon Intensity (CI) 16.8 -60.6 2.65 3.29 GREET MODEL (performed by Argonne) ¶ Miscellaneous include water treatment, sour water stripping, cooling water systems, thermal oxidizer, etc. * There is co-produced electricity, which indirectly reduce GHG emissions by displacing CA electricity. † CA electricity grid is used. ‡ Renewable electricity is used.

16 Comparison of CI to Other Transportation Fuels

Life cycle GHG RNG emissions of 16.8 (Base Case)

gCO2e/MJ (0.16 MtCO2e/Mt of dry biomass) which is 82% lower compared to the CI of fossil-based gasoline. Carbon Intensity for RNG (this study) Compared to Certified Pathways by Fuel Type (Source: CARB 2017. Current base case study result added as a yellowish circle to show the CI, and an estimate of the production volume)

17 CAPEX (+/- 30%) and All in Cost summary

Gas Cleanup and Methanation Process Island $63,840,000

Gasification Process Island $87,500,000

Balance of Plant Total Cost $163,460,000

TOTAL CAPEX $314,800,000 Project Dev, Engineering, Consulting, Permitting, Commissioning & Startup, Contingency $25,100,000

ALL IN COST $339,900,000

18 Base Case Results Including Criteria Pollutant Emissions

Plant Capacity (base case), MMm3/yr (BCF/yr) 82 (2.9) All-in capital cost, $MM 340 (± 30%) Annual OPEX, $MM/yr 39.3 Cost of RNG Production, cents/MJ ($/MMBTU) 1.2-1.4 (13-15)

GREET® Life cycle carbon intensity, gCO2e/MJ 16.8 PM 0 (0) VOC 0.002 (0.005)

Criteria Pollutant Emissions, SO2 0.0001 (0.0003) g/MJ (lb/MMBTU) NOx 0.0009 (0.002)

19 What we learned from the Stockton Site Conversion to RNG using the commercial technologies specified > Plant can convert 945 tons/day of wood wastes > Plant can produce approximately 3 BCF/yr of RNG > All in capital cost are $340 million ±30%. > Excluding capital investment, the production cost for RNG is in the range of $13-15/MMBtu. > Stockton not likely the best site for the first commercial facility (pipeline capacity issues and space is very tight)

20 Benefits and Opportunities

Material This plant alone could Wood Waste quantities in the tens displace approximately to RNG, compared to

of billions of cubic 170,000 tons of CO2 biomass power, feet per year of vehicle emissions each reduces criteria RNG can year. (equal to offsetting pollutants by be produced using the emissions from 400 approximately 99% commercially million vehicle miles, or and produces a very available consuming 15 million low carbon fuel. technologies. gallons of gasoline)

21 Turning Raw Technology into Practical Solutions www.gastechnology.org  @gastechnology

Daniel LeFevers GTI Director of State and Consumer Programs [email protected] ‐ 847‐544‐3458

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