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Pellet Plant – 100 Dry TPD

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Pellet Plant – 100 Dry TPD Massachusetts Water Resources Authority Presentation to MWRA Advisory Board MWRA Residuals Processing & Agreement for Operation and Maintenance of the Fore River Pelletizing Plant with New England Fertilizer Company May 21, 2015 Massachusetts Water Resources Authority Residuals Treatment Facilities Massachusetts Water Resources Authority Residuals Processing – Schematic Overview • Massachusetts Water Resources Authority Residuals Processing Statistics for Deer Island • Sludge to Digestion – 246 dry TPD – 70% as Primary sludge – from gravity thickening – 30% as Waste Secondary sludge – from centrifuge thickening • Typical sludge makeup of other plants: 50:50 – Time in Anaerobic Digestion: • 18-21 days – 62% Volatile Solids destruction • (industry ave. is 50%) 4 Massachusetts Water Resources Authority Residuals Processing Statistics for Deer Island • FY14 Annual Avg digester gas production – 188 kscfh – 96% of gas is beneficially used in boilers – 95% of total boiler heat attributable to Digas • Value of gas utilization - $21.3M (heat) & $2.3M (power) 5 Massachusetts Water Resources Authority Overview of Current Residuals Processing • Sludge to Pellet Plant – 100 dry TPD – On DITP, Digested sludge is stored, then pumped 7 miles to Pellet Plant • Methane gas captured, stored, then used in boilers on site – NEFCO dewaters, dries, & pelletizes all digested sludge – All pellets go to beneficial re-use: • turf farms • golf courses • fertilizer blenders • cement kiln 6 Average Daily Sludge to Pellet Plant (DTPD) 115 110 105 100 95 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7 MWRA Pellet Plant located in Quincy, MA • Located in Fore River Shipyard • Designed, Constructed & Owned by MWRA – Phase I – $88 M – Phase II - $45 M – Total cost - $133 M • Since Day 1, has always been a Contract Operation – Contract 1: 1991 – 2001 Competitive Bid – NEFCo – Contract 2: 2001 – 2015 Competitive Bid - NEFCo 8 Pellet Plant – Contract O&M Since 1991 (cont.) • Current contract - S345 – 15-year (2001-2015) • Process liquid sludge from DITP – Receive digested sludge – Dewater with centrifuges – Dry with thermal dryers – Produce Class A Fertilizer Pellet – In CY 2014: • Processed 100 dtpd • Paid NEFCo $14.1M 9 Pellet Plant – Contract O&M Since 1991 (cont.) • Contractor is responsible for developing & maintaining Diverse Markets for beneficial reuse for all sludge sent to the Pellet Plant – Land Application – Fertilizer Blenders – Alternate Fuels – Bay State Fertilizer Program Land Application Fertilizer Blenders • Maintain Facility & Equipment Alternate Fuel – Responsible for returning a fully operable plant Bay State Fertilizer Program at the end of the contract to MWRA. 10 Pellet Distribution by State State Annual Tonnage Percentage Connecticut 6,811 22% New York 5,678 18% Indiana 3,090 10% Maine 2,170 7% Rhode Island 1,835 6% Florida 1,665 5% Virginia 1,554 5% Massachusetts 1,439 5% Georgia 1,332 4% Vermont 1,175 4% Pennsylvania 1,025 3% Ohio 980 3% Maryland 980 3% Missouri 590 2% North Carolina 328 1% Michigan 259 1% Bagged/truck 106 0.3% 11 Comparison of Pellet Molybdenum Concentrations to DEP Limit Monthly Pellet Molybdenum Concentrations (Expressed as a % of DEP Type I Limit) 200% 150% 100% 50% 0% Jan '12 Jul'12 Jan '13 Jul '13 Jan '14 Jul '14 12 Pellet Plant – Contract Renewal Preparation Step 1: Condition Assessment • Facility is in excellent condition – 20+ year life remaining with no major capital (with continued maintenance) Step 2: Residuals Technology Assessment • Recommendations at DITP – May impact quality & quantity of sludge sent to Pellet Plant • Recommendations at Pellet Plant – Limited to energy efficiency gains given condition of facility 13 Pellet Plant – Contract Renewal Preparation Step 2 (cont.) Technology Assessment Recommendations (cont.) – Consider larger, more efficient Dryer Trains • Implemented at Philadelphia & soon Detroit – Evaluate impacts of co-digestion programs at DITP – Given long remaining life, any capital expense decisions must rely on payback – Recommend 5-year extension to quantify impacts of pilots and new dryer ops – Suggested next long-term contract – 15 years 14 Pellet Plant – Existing Contract with NEFCo Current Contract Cost Structure • Fixed Fee first 90 dtpd (32,850 dry tons annually) (~$400/ton) • Excess Qty >90 dtpd (>32,850 dry tons annually) (~$280/ton) • Fixed yearly capital dollar value (pre-determined) • No pass-throughs for utilities – Includes adjustments for inflation • FY14 Avg - ~$380/ton 15 Pellet Plant – NEFCo Contract Extension Contract Cost Structure – Sludge Processing (changes) Original Contract Contract Extension Change • Fixed Fee first 90 dtpd annual (32,850 tons/yr) same base price but for 92.5 dtpd • Variable Fee >90 dtpd same incremental price >92.5 dtpd • CY2014 Total contract expenses $14,090,654 $13,582,354 for sludge processing $13,334,464 if on extension - $12,574,468 base + = same base + - plus $1,007,886 excess qty plus $759,996 excess qty Savings of $247 K in year. + $508,300 capital expenses 16 Pellet Plant –NEFCo Contract Extension – Capital Program • Capital Program - $7.0 Million cap • $6.087 K – project awards subject for future Board approvals • NEFCo designs all capital projects – paid 15% of awarded project • NEFCo responsible for capital costs in excess of $7.0 M cap • Must return a fully operational plant at end of contract • Drum replacement not included in cap if completed. 17 Pellet Plant – NEFCo Contract Extension Summary • Reduced Price for Sludge Processing • $1.25 M savings over 5-yr extension • Revised Capital Program Structure • Retains NEFCo liability (must return fully operating plant at end of contract) • Extension authorized for 5-years 18 Pellet Plant – NEFCo Contract Extension Summary • Provides MWRA sufficient time to: Evaluate potential energy efficiency improvements (large dryer technology) Stabilize future sludge quantities (co-digestion) Allow for increased competition 19 Bay State Fertilizer • Word of mouth marketing – 32 transactions in April and May • Lawn care “enthusiasts” showering praise upon Bay State Fertilizer • Marketing Intern started May 18th – Goal: Expand retail presence 20 New Bay State Fertilizer Bag – Rita Berkeley 21 Bay State Fertilizer • Available at no cost to MWRA member Communities • Pickup at the Pellet Plant in Quincy • Contact Carl Pawlowski (617) 773-4295 22 Massachusetts Water Resources Authority Questions ? 23.
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