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HomeMy WebLinkAbout12. (Handout) Revised Presentation Item 12. (Revised) (Handout) C ENTRAL S AN’S L ANDFILL G AS U SAGE Board of Directors Meeting October 4, 2018 Clint Shima, P.E. Senior Engineer Plant Maintenance Division O VERVIEW Θ Central San’s Landfill Gas Usage Θ Proposed Landfill Gas Agreement Θ Annual Landfill Gas Usage Chart Θ Greenhouse Gas Θ Staff Recommendations 2 1 C ENTRAL S AN’S L ANDFILL G AS U SAGE Θ Began using landfill gas in 1983 Θ Supplied by Bulldog Gas & Power, LLC Θ Historically, it was mainly used in multiple hearth furnaces, and at times for auxiliary boilers 3 P LANT G AS U SAGE Cogen:1000MillionBritish ThermalUnitsperdayof NaturalGas(MMBTU/dayNG) Furnace:275MillionBritish ThermalUnitsperdayof LandfillGas(MMBTU/dayLFG) Approx.400500thousand AuxBoilers:225MMBTU/dayNG cubicfeetperday(kcfd) 4 2 R ENEWABLE E NERGY (ASOF J ULY 2018) LandfillGas AnthropogenicGreenhouseGas(GHG)Emissions RenewableEnergy 7,907MMBTU MetricTonCarbonDioxideEquivalent(MTCO)* Profile 2e 15% 25000 RecoveredWasteHeat 6,038MMBTU 20000 12% 15000 13,558 Solar 116MMBTUequivalent 10000 CO2e TotalNonRenewable 0.22% 38,583MillionBritish MT ThermalUnits 5000 (MMBTU) 73% MCERenewables 27MMBTUequivalent 0 0.05% 5000 *(CalculatedonacalendarbasisJan.1toDec.31) 5 P ROPOSED L ANDFILL G AS A GREEMENT Θ Terms: Five years o October2018 to September30, 2023 Θ Pricing: o Previous agreement 25 percent discount versus natural gas pricing Minimum $2.60 and Maximum of $4.60 per decatherm o New agreement pricing structure Landfill Gas Price: Minimum $3 and Maximum of $6 per decatherm 10 percent discount until October 2019 (first year) 5 percent discount with at least 400 thousand cubic feet per day 10 percent discount if at least 500 thousand cubic feet per day Θ Central San to maintain onsite landfill gas measuring devices Θ Other terms and conditions remain the same as existing agreement 6 3 P RICEOF L ANDFILL G AS LandfillGasPriceperdecatherm $6.00 $5.11 LFGprices(old) $4.80 $5.00 $4.63 $4.60 $4.59 $4.49 $4.24 $4.10 $3.94 $4.00 $3.75 $3.71 $3.63 $3.55 $3.54 $3.47 $3.45$3.45 $3.44 $3.37 $3.21 $3.00 $2.69 $2.00 $1.00 $ 123456789101112131415161718192021 7 A NNUAL L ANDFILL G AS U SAGE LandfillGasUsage20142018YearlyComparison 12000 10000 8000 2014 2015 6000 (Decatherms) 2016 Use 2017 LFG 2018 4000 2000 0 NovJanMarAprJunAugSepNovDecFeb Month 8 4 G REENHOUSE G AS Θ Landfill gas usage ensures that the Treatment Plant’s anthropogenic greenhouse gas emissions remain below the Cap and Trade Program’s inclusion threshold of 25,000 metric tons of carbon dioxide Θ Landfill gas supply has been stable and Bulldog Gas & Power, LLC, expects it to remain stable for next ten to fifteen years 9 S TAFF R ECOMMENDATION Θ Authorize the General Manager to sign a five-year agreement with Bulldog Gas & Power, LLCto purchase landfill gas 10 5 Q UESTIONS 11 6