anaerobic digestion for cost reduction and sustainable food manufacturing Food manufacturers are turning to biogas installations to reduce waste, energy and operating costs, CO2 emissions, and to produce green energy that can be sold. Biogas from food waste and sustainable manufacturing in the Food industry was the focus of a lecture at Warwick University by PM Group’s Barry McDermott and Campbell Stevens.

1. Sustainability & Manufacturing –
A focus on Renewable Energy Supply
through Anaerobic Digestion
Dr Barry McDermott
Campbell Stevens
PM Group
17.05.2012
Midlands Manufacturing
Group

2. Content
 PM Group
 What is Sustainability
 Sustainable Manufacturing – Why ?
 Sustainable Energy
 Bioenergy & Anaerobic Digestion
 Project Example
 Finance & Business Case Development
 Questions

3. Sustainability
“Global Warming”
“Resource Use”
“Climate Change” “Energy Efficiency”
“Embodied
Energy”
“Carbon
Footprint”
“Sustainability”
“Low Carbon “Whole Life
“Ecological Systems” Costing”
Footprint”
“Zero Carbon”
“Green Design”
“Life Cycle
Analysis” “Corporate Social
Responsibility”

4. History of Sustainability
1972 – UN
Conference on 1992 – UN Conference –
Human Environment Earth Summit
1800’s
Transcendentalism Rachel Carson 1987 Brundtland
– Silent Spring Report - Our
Common Future
1800’s 1900’s 1960 1970 1980 1990 1995 2000 2005
Love Canal &
Industrial Superfund Act
Revolution
1983 – UN World 2002 – World Summit
Commission on on Sustainable
Environment & Development Development
Social Revolution Environmental Revolution Sustainability

5. Sustainability Defined
“Humanity has the ability to make
development sustainable – to ensure it SUSTAINABILITY
meets the needs of the present without
compromising the ability of future
Social Equity
generations to meet their needs”
1987 World Commission on Environment and
Development
Concept of sustainability is much more than environmental protection in
another guise
Sustainabilitys Goal: To achieve human and ecosystem well-being together

6. Sustainability
Ecology Materials
Waste ENVIRONMENTAL
Energy Water
SUSTAINABLE
Health & Well
Insurance Pollution Environmental
BeingDESIGN
Construction SOCIAL
Time and Cost
Management Land ECONOMIC
Whole Life Sustainable
Productivity Amenity
Cost Development
Growth Economic Social Diversity
Economic Function &
Profitability Security
Life Performance
Health &
Investment Quality
Safety
Employment Access

7. One Living Planet
 12bn hectares – 6.5bn people
 Per capita global quota – 1.8 hectares
 European footprint - 6 hectares; North American footprint – 10 hectares

8. Overpopulation

9. Global Consumption Rates are rising…
Humanity’s Ecological Footprint, 1961-2005
1.8
1.6
Number of planet Earths
1.4
1.2 World Biocapacity
1
0.8
0.6
0.4
0.2
0
1960 1970 1980 1990 2000
Number of planet Earths
Source: WWF Living Planet Report 2008

10. The Global Demand for Energy is Rising…
World Marketed Energy Consumption
250
Projections
200
million GWh
150
100
50
0
1980 1985 1990 1995 2000 2006 2010 2015 2020 2025 2030
Industrialisation Population Enhanced
Growth Lifestyles
Source Data: Energy Information Administration (EIA), International Energy Annual 2006 (June-December 2008),
website http://www.eia.doe.gov/iea/wecbtu.html

11. Rising CO2 Emissions
World Energy-Related Carbon Dioxide Emissions by Fuel Type, 1990-2030
50
History Projections
40
Total
Billion Metric Tons
30
20
Coal
Liquids
10
Natural Gas
0
1990 1995 2000 2005 2010 2015 2020 2025 2030
Liquids Natural Gas Coal Total
Source: Energy Information Administration (EIA)

12. Need for Change…
ENERGY EFFICIENCY
CONSERVATION
CLEAN
ELECTRONS

13. Visual Evidence !

14. Other Drivers for Sustainable development……...

15. Why Should a Manufacturing Facility Change ?
 Risk Management
 Future Proofing
 Professional Ethics
 Reduce Environmental Impact
 Best Engineering Practice
 Cost Savings – lower product unit cost
 Energy Security
 Customer Driven
 Legislative Driven
 Corporate Sustainability goals inc footprint
 Branding & Marketing

16. Energy Security
 Energy Costs
- Average
domestic gas
bill has doubled
since 2000
 Guarantee of
Energy Supply
- Blackout
concerns
- Unavailable
imports
Reference: DECC & OFWAT

17. Sustainability – Some Focus Areas in Design &
Manufacturing
Sustainable Energy & Water Materials & Indoor Innovation
Sites Atmosphere Efficiency Resources Environmental
Quality

18. Opportunities….
Technology
Fuels & Alternative / Emission Energy
Feedstocks Renewables Reduction Efficiency
SOLUTIONS Supply-side End-of-pipe Demand Side
 Biofuels  Wind Power  Air pollution  Green buildings
control
 Hydrogen  Solar  Low energy
 Coal to gas appliances
 Biomass  Biomass
 Carbon capture  Building control
 Waste to Energy  Fuel Cells
and storage
 Smart meters and
Energy  Energy Storage
 Waste grids
Efficiency &  Hydro Management
 Smart homes
Renewables
 Wave, tidal, deep-  W&WWT
 Energy
lake
management
 Geothermal
 T&D
infrastructure

19. Anaerobic Digestion Technology

20. Anaerobic Digestion
 Natural process which occurs in river and lake
sediments, soils and the gastrointestinal tract of
animals
 Degradation of organic material by bacteria in the
absence of oxygen.
 One of the oldest forms of biological wastewater
treatment - 1850’s
 Traditionally part of sludge stabilisation process

21. Anaerobic Digestion Process
Generator / CHP
Scrubbing Grid
Transport Biofuel
Biogas
Digestate
Feed Composting
Storage/ Digestion
Dewatering Soil Conditioner
Handling Process
Fertiliser
*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

22. How it works…..
Methane
CO2
H2S
NH3
Heat & Biomass
Source: IEA Bioenergy Task 24

23. Digestion Technology
 Process Temperature
– Mesophilic 38 – 42 °C
– Thermophilic 55 – 65 °C
 Feedstock
– Mono-digestion or Co-digestion
 Plant Design/System
– Batch or Continuous; Tank or Lagoon
 Digestion
– Dry (>30% DM) or Wet (6 – 30%DM)

24. Digestion Technology
CSTR Tanks, Germany CSTR, Biogas Farm, Germany
CSTR, Hungry Horizontal Plug Flow System, USA

25. … Digestion Technology
Completed 200,000m3 lagoon, Lagoon system – HDPE roof system
10m depth, Asia with gas collection, Asia
70,000 m3 lagoon system,
Scotland

26. … Digestion Technology
High rate UASB/IC type – Domestic digester, Indonesia
Low solids reactor No high-end engineering required!

27. Feedstocks & Operations

28. Feedstock
 Organic waste
– Biodegradable Municipal Waste
– Sewage Sludge
– Agricultural slurries
– Silage Crops
– Industrial effluents
 Feedstock characteristics determines gas yield

29. Biogas Yields
Biogas Yield
Feedstock %Dry Matter (m3/t)
Cattle Slurry 10 25
Pig Slurry 7 26
Sour Whey 6 37
Food Waste 15 46
Veg waste 15 57
Broiler Manure 60 80
Laying Hen Litter 30 90
Grass Silage 25 150
Sugar Pulp 28 200
Maize 30 200
Cheese Whey 79 670

30. Biogas as a Biofuel potential
 Composition
– Methane 50 – 75%
– Carbon Dioxide 45 – 25%
– Water Vapour 2 – 5%
Trace Amounts: <1%
– Ammonia
– Hydrogen Sulphide
 1m3 of biogas (70% CH4) calorific value 20MJ/m3:
– 0.6 L of Petrol; 2.5kWh of heat; 1.7kWh of electricity
– Electricity; Heat or Biofuel
Beware! ATEX Regulations

31. Digestate
 Comprises feedstock not fully
converted to biogas & biomass
 May be dewatered to fibre and
liquor fractions
 Fibre:
– May be aerobically composted to provide a stable,
marketable peat moss substitute
– Alternatively, landspreading as a soil conditioner or low
grade fertiliser

32. Digestate
 Liquor:
– Separated liquid fraction
contains large proportion
of nutrients
– Ideal for use as a liquid
fertiliser as part of a Nutrient
Management Plan
 Disposal of Digestate can be a limiting factor
Beware! Biosolids Code of Practice
& Animal By-Products Regulations

33. Anaerobic Digestion Process – Potential Industry Options
Electricity
Electricity
Boiler for
Gas Engine Pasteurisation
Exhaust Steam
Cooling/Chillers
Exhaust
Biogas
Green House
Digestate
Feed Composting
Storage/ Digestion
Dewatering Soil Conditioner
Handling Process
Fertiliser
*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

34. Project Study Example

35. Project Bioenergy
 Primary Objective
– To reduce the Client’s exposure to the volatility and overall cost of
energy.
– Driving fuel independence
 Secondary Objectives
– Develop a working biogas
business model for replication
across other facilities
 Additional Benefits
– Reduction in Carbon footprint
– Demonstrable move towards a This project will deliver a robust, ‘fit for purpose’
facility for the client to produce biogas from
sustainable business processing co-products.

36. Overview
 Replacing 25% of factory natural gas requirements
– equivalent to 66% of the household consumption in local region
Feedstock ANAEROBIC Biogas Biogas
Feedstock
Handling DIGESTION Cleaning To CHP
Feedstock Digestate Fertiliser
Ensiling Separation For sale
AD Technology – 2 Options:
1.Continuous Stirred Tank Reactor Water
Effluent
to river
2. Lagoon Treatment
*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

37. Key Figures
 Inputs  Outputs
– Feedstocks – Biogas
• Agriculture industry • 12.5M therms per annum
• Organic By-product of • 50MWth/12.8MWe installed
process capacity
– 2450tpd by-product ex process • 50:50 CH4:CO2
• ca. 1000tpd direct to AD • Up to 10,000Nm3/h
• 1450tpd to ensiling
– Lagoon configuration reactor – Digestate
• Ca 200,000m3 volume • Dewatering Plant required
• Fertiliser product for market
sale
£60m investment – Effluent
5 Year Payback (IRR >20%) • 800k-900k m3 p.a.
• 8000-12000mg/l COD
Construction due Q3 2012 • 3000mg/l NH3
• Full scale effluent treatment
plant required

38. Financing & Business Case
Considerations

39. Global Total New Investment In Clean Energy

40. What technology is this money being spent on ?
 Energy Storage & Smart Grid (R&D)
 Wind (Mature)
 Solar
 Biofuel
 Biomass & Waste (Mature)
 Geothermal
 Tidal (Developing)
 Efficiency
 Follow the money………………?

41. Business Case Considerations
 Drivers for Development
– Business cost avoidance/Financial Returns
– Planning
– Replacement of end-of-life assets
 Feedstock Availability
– Guarantee of supply
– Cost security
 By Products
– Cost of disposal
 Gas Utilisation
– Use on site or Export? Fuel Security
 Process/Project risks
– Pass the ticking parcel?
 Grants & Tariffs
– moving sands or easy money?
 Feasibility Study & Business Case Development

42. General Overview of Funding Support
 Generation Funding Tariffs
– Renewable Electrical Generation
– FIT if < 5MWe (Feed-in Tariff + £30/MWhe, if exported), or
– RO (Renewable Obligation, 20-year Grandfathering)
 RHI (Renewable Heat Incentive, 20-year Grandfathering)
– £10/MWhth for dedicated biomass
– £68/MWhth for Biogas upgraded to Biomethane (grid export
quality)
 Several Other Sources, eg
– ECA (Enhanced Capital Allowance)
• for verified “Good Quality” CHP
• 100% Year 1 Tax incentive against validated capital value

43. Cost Avoidance Examples
 Carbon Floor Price
 Climate Change Levy
 Gas purchase offset
 Electricity offset (CHP)
 Gas/Elec conveyance (eg, capacity reserve, ToP, MDQ
reduction)
 Waste disposal
– eg, stock food transportation
– effluent treatment, PPC
$

44. EXAMPLE PROJECT: Possible configurations; which one?
1 2 3 4
OPTIONS
Biogas to Biogas to Biomethane Biomethane
Boiler or Gas Engine to Boiler or to Grid
CHP CHP CHP
• Contamination • HW to site • ECA • RHI £68 MWhth +
issues? • ECA £MWh base gas price
•FIT for MWhe (for
• ECA • FIT for MWhe CHP) • Reduces any
operational issues, eg
• £ Offsets; • £ Offsets; • £ Offsets;
matching demand
• CCL • CCL • CCL profiles, etc, as operates
discretely from site
• ETS/Carbon • ETS/Carbon • ETS/Carbon
Floor Price Floor Price Floor Price • option to switch to total
site consumption in
• Gas • Gas • Gas
future
purchase purchase purchase

46. Most Feasible AD Configuration?
BOILER/CHP or
AD
GAS ENGINE?
?
UPGRADE?
?
?
GAS GRID SITE

47. FEASIBLE / VIABLE?
 Sustainable?......in the classic context?
– Feedstocks
– Offtakes
– CapEx / OpEx
 Funding & Risk
– Internal/off balance-sheet?
– Ability to take direct process/technology risk?
– BOO/ESCo?
 Evolve the Financial Model from outset
– Build simple but sound case – communicate the value (or
otherwise)
– Measure it how you need to….
• Simple payback, NPV, IRR, etc

48. Summary
 Sustainability is a balance of environmental, economic and
social concerns.
 Energy will be a prime focus of environmental sustainability in
the manufacturing industry.
 Renewable energy supply can provide environmental &
economic sustainability benefits in the manufacturing industry.
 Bioenergy Options such as Anaerobic Digestion offer significant
potential benefits for producers of organic waste.
 Business Case Development to ensure viability of the project
should be established early in the project and evolve with the
project development to ensure success.

49. THANK YOU & QUESTIONS
www.pmgroup-global.com
Barry.McFarlane@pmgroup-global.com
Campbell.Stevens@pmgroup-global.com
Barry.McDermott@pmgroup-global.com