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The Great Biogas Gusher

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LPE Learning Center
LPE Learning Center

Full proceedings paper at: http://www.extension.org/72854 The great Texas Oil Boom, also referred to as the Gusher Age, provided for dramatic economic growth in the US in the early 20th century, and ushered in rapid development and industrial growth. Although we typically think of the Middle East when we consider the impacts of oil discoveries on local economies (reference Dubai), at the time of its discovery, the oil finds in Texas were unprecedented; and the US quickly became the world’s top producer of petroleum. As we all know, the rest of the world came to the party, and the US was soon falling in the ranks of top petroleum producers. Though the US oil reserves are vast, increasing concerns over the environmental impacts of finding, mining, extracting, refining, and consuming fossil fuels has incentivized the development of renewable energy resources, such as solar, wind, hydro, and bioenergy. Of these forms of renewable energy, bioenergy holds the promise for replacement of fossil fuels for transportation use.

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The Great Biogas Gusher Presented by: Gus Simmons Cavanaugh & Associates, P.A. Waste to Worth Conference, Seattle, WA March 31st, 2015
Context: The Great Texas Oil Boom or “Gusher Age”  Provided for dramatic economic growth in the U.S.  U.S. became the world’s top producer of petroleum  The oil finds in Texas were unprecedented  Propelled the U.S. to indisputable Super Economy  Soon, the rest of the world was producing oil  Production in the Middle East became dominant  U.S., who was the top producer, soon began falling in the ranks of top petroleum producers
This presentation will 1.Compare and contrast the historical development of fossil fuel reserves with the potential for development of bioenergy 2.Identify and discuss the US energy potential from these resources, and current development inhibitions/barriers. 3.Discuss the lessens we should have learned from oil boom that we didn’t (apparently) 4.Offer insights into overcoming the obstacles to bioenergy development
Will Bioenergy be the next Gusher?  Bioenergy can be described as fuels derived from organic materials, such as agricultural/municipal/food wastes, through processes like anaerobic digestion.  Though the U.S. oil reserves are vast, increasing concerns over the environ- mental impacts of finding, mining, extracting, refining. and consuming fossil fuels has incentivized the development of Renewable Energy.
BIOENERGY The U.S. has more organic resources “Above the Dirt” than are identified in the petroleum and natural gas deposits yet to be exploited*, yet we are progressing at a snail’s pace, as compared to the Big Oil Boom. Why? *(http://www.cavanaughsolutions.com/above-the-dirt)
Bioenergy vs. Fossil fuels • Positive environmental impacts • Bioenergy provides better air quality by recycling atmospheric carbon • Using waste to generate energy such as compressed natural gas or electricity eliminates those wastes from landfill disposal, prolonging landfill life, deferring new builds • Biomass can produce useful chemicals as part of an integrated process and also provide co-products such as fertilizers, nutraceuticals, petrochemical replacements, and bedding to the farmers • It takes millions of years to create fossil fuels from carbon. • Fossil fuels release trapped carbon from beneath the earth’s surface to the atmosphere (GHG’s) • Petroleum-based fuels are finite • Fossil Fuels use is projected to decline, bioenergy use is projected to increase.
Affect of Organic Recycling on Simple Carbon Cycle Millions of Years
Energy Consumption to 2050, based on spreadsheet data from http://www.2052.info Greatest Growth in Renewables!
Agricultural wastes and crop residues in America are plentiful. Organic wastes from food spoilage are also a source of bioenergy. The bioenergy potential in the United States is… Enormous
Methane Capture Potential – Combined Sources Municipal WWTPs, Landfills, Agriculture
Food Spoilage Total Municipal Solid Waste Discards by material, 2012 164 Million Tons (after recycling and composting). Food makes up the largest percentage of Waste going to landfills. Source: www.epa.gov/solidwaste/nonhaz/municipal/pubs/ 2012_msw_fs.pdf Some major cities and states in the United States are banning organic waste from landfills for top waste producers like large supermarkets and restaurants They are encouraging anaerobic digestion to harvest energy value from waste. 1 lbs of Coal = 9,000 Btu’s 1 lbs of “trash” = about 5,500 Btu’s
0% 20% 40% 60% 80% 100% United States Germany Netherlands Austria Belgium Sweden European Union European nations - A model for waste management Recycling/Composting Energy from Waste Landfilled Source: Biocycle and the Earth Engineering Center of Columbia University; Confederation of European Waste-to-Energy Plants.
The Biogas Frontier 29 States in the US have Renewable Energy Portfolio Standards; 4 states and 4 major cities have adopted food waste bans. A disposal problem or energy opportunity?
States Adopting Food Waste Bans for Landfills 14
Cleaner Energy via Biogas • According to the US EPA, agriculture contributes about 24% of the global carbon emissions, trailing power generation at approx. 30% • We endeavor to reduce power plant emissions, promoting widespread adoption of solar power. But repurposing waste carbon for power and fuel recycles existing carbon, having a positive affect on emissions from agriculture and power sectors. • “Double-dipping”, in a good way.
So, What are the Barriers?
Barrier #1: The Nexus Food, Energy, Water Nexus One resource management strategy affects the others. As the US works toward energy independence, we have to make sure that we are making the right choices, so that we will have enough resources (Energy, Water, and Food) for the future.
What do solar panels taste like?
The U.S. has incentivized Renewable Energy generation, but has relied on the venture capital markets for much of its development, particularly bioenergy. This reinforces its perceived riskiness; while we consider the development of traditional power a ‘public infrastructure’? 3 year ROI vs 50 year ROI??? Bank financing for “new” and “atypical processes”, requires 30%-40% cash equity investment, plus redundant personal guarantees, plus , plus, plus, plus… Can you imagine financing a coal plant, nuclear plant, or gas turbine this way? Barrier #2: Bioenergy upstart is costly Fostering investment in biogas systems
Barrier #3: Black hole of information - Education and Understanding •The U.S. Bioenergy Roadmap committed the USDA, EPA, and DOE to create a working group to collaborate with industry to prioritize policies to expand the US biogas industry. •How will this information get to the public and elected leaders? •Who will push this initiative through the States? •Who will get bioenergy education to the public so we can make informed decisions? These are currently roadblocks on our roadmap.
Barrier #4: Standards are lacking •Lack of Federal performance standards; state standards are inconsistent •Regional, state, and local biogas market analysis and policies lacking (compared to other resource plans, such as water, natural gas, etc.) •Barriers to injection of purified biogas into the existing natural gas pipeline network
Barrier #5: Risk imposed by Fossil Fuel Markets •Short-term drops in petroleum prices take our eyes off the long-term prize; creates market instability and market risk. •Fossil fuel prices greatly impacted by speculated risk and foreign politics; biogas prices are set and fixed for 10, 15, or 20 years – this creates market stability.
US Petroleum and Other Liquid Fuels Supply But we are developing Natural Gas!!! 23
Barrier #6: Competition and priority for funding needs. Infrastructure funding: must choose between funding “gotta haves” and “nice to haves”. Right now, we consider bioenergy a “nicety” – nearsightedness stifles innovation. Energy Utilities must assess risks of ‘entrepreneurs’ as compared to costlier exploration for conventional fuels; though, in many cases, bioenergy fuels can be a direct replacement. Quantify fossil fuel deposits or ‘above the dirt’ organics? Biofueled vehicles have very limited range (nationally) and resale markets due to lack of fuling infrastructure.
Barrier #7: Which ROI?  The “Triple Bottom Line” is often discussed, but most decisions are made on the obvious one (or the only one that really matters...)  Bioenergy system ROI’s are compared to conventional fuels; however the cost abatement realized through reduced emissions, reduced landfill life, reduced price volatility, etc. are not factored into the economic returns.  Conventional infrastructure ROI’s based on 20, 30, and 50 years. How do the economics compare at 10-15 year?  Value of sustaining agriculture? Value of utilization of existing WWTP Infrastructure? Value of lost arable lands? Value of deferred landfill?
Summary The BURNING QUESTION ? ? ? Why Not?  We have infinite supply of renewable sources of organic materials that may be used to generate bioenergy  Production of biogas and bioenergy can hedge against increasing energy costs  Thought leadership change from “waste” to “resource”  Bioenergy is a domestic source of “clean” energy,  Reduced reliance on foreign sources of fuel / increased energy independence  Extended landfill life  State Regulatory and Federal policy drivers  What has your state done to be a good steward of bioenergy resources???
More Information, including a bioenergy blog, can be found at: http://www.cavanaughsolutions.com/contact Final Thought… It took several hundred thousand years for the Earth to make crude oil, but we can convert organic waste into natural gas (biogas) in less than 2 days

More Related Content

The Great Biogas Gusher

  • 1. The Great Biogas Gusher Presented by: Gus Simmons Cavanaugh & Associates, P.A. Waste to Worth Conference, Seattle, WA March 31st, 2015
  • 2. Context: The Great Texas Oil Boom or “Gusher Age”  Provided for dramatic economic growth in the U.S.  U.S. became the world’s top producer of petroleum  The oil finds in Texas were unprecedented  Propelled the U.S. to indisputable Super Economy  Soon, the rest of the world was producing oil  Production in the Middle East became dominant  U.S., who was the top producer, soon began falling in the ranks of top petroleum producers
  • 3. This presentation will 1.Compare and contrast the historical development of fossil fuel reserves with the potential for development of bioenergy 2.Identify and discuss the US energy potential from these resources, and current development inhibitions/barriers. 3.Discuss the lessens we should have learned from oil boom that we didn’t (apparently) 4.Offer insights into overcoming the obstacles to bioenergy development
  • 4. Will Bioenergy be the next Gusher?  Bioenergy can be described as fuels derived from organic materials, such as agricultural/municipal/food wastes, through processes like anaerobic digestion.  Though the U.S. oil reserves are vast, increasing concerns over the environ- mental impacts of finding, mining, extracting, refining. and consuming fossil fuels has incentivized the development of Renewable Energy.
  • 5. BIOENERGY The U.S. has more organic resources “Above the Dirt” than are identified in the petroleum and natural gas deposits yet to be exploited*, yet we are progressing at a snail’s pace, as compared to the Big Oil Boom. Why? *(http://www.cavanaughsolutions.com/above-the-dirt)
  • 6. Bioenergy vs. Fossil fuels • Positive environmental impacts • Bioenergy provides better air quality by recycling atmospheric carbon • Using waste to generate energy such as compressed natural gas or electricity eliminates those wastes from landfill disposal, prolonging landfill life, deferring new builds • Biomass can produce useful chemicals as part of an integrated process and also provide co-products such as fertilizers, nutraceuticals, petrochemical replacements, and bedding to the farmers • It takes millions of years to create fossil fuels from carbon. • Fossil fuels release trapped carbon from beneath the earth’s surface to the atmosphere (GHG’s) • Petroleum-based fuels are finite • Fossil Fuels use is projected to decline, bioenergy use is projected to increase.
  • 7. Affect of Organic Recycling on Simple Carbon Cycle Millions of Years
  • 8. Energy Consumption to 2050, based on spreadsheet data from http://www.2052.info Greatest Growth in Renewables!
  • 9. Agricultural wastes and crop residues in America are plentiful. Organic wastes from food spoilage are also a source of bioenergy. The bioenergy potential in the United States is… Enormous
  • 10. Methane Capture Potential – Combined Sources Municipal WWTPs, Landfills, Agriculture
  • 11. Food Spoilage Total Municipal Solid Waste Discards by material, 2012 164 Million Tons (after recycling and composting). Food makes up the largest percentage of Waste going to landfills. Source: www.epa.gov/solidwaste/nonhaz/municipal/pubs/ 2012_msw_fs.pdf Some major cities and states in the United States are banning organic waste from landfills for top waste producers like large supermarkets and restaurants They are encouraging anaerobic digestion to harvest energy value from waste. 1 lbs of Coal = 9,000 Btu’s 1 lbs of “trash” = about 5,500 Btu’s
  • 12. 0% 20% 40% 60% 80% 100% United States Germany Netherlands Austria Belgium Sweden European Union European nations - A model for waste management Recycling/Composting Energy from Waste Landfilled Source: Biocycle and the Earth Engineering Center of Columbia University; Confederation of European Waste-to-Energy Plants.
  • 13. The Biogas Frontier 29 States in the US have Renewable Energy Portfolio Standards; 4 states and 4 major cities have adopted food waste bans. A disposal problem or energy opportunity?
  • 14. States Adopting Food Waste Bans for Landfills 14
  • 15. Cleaner Energy via Biogas • According to the US EPA, agriculture contributes about 24% of the global carbon emissions, trailing power generation at approx. 30% • We endeavor to reduce power plant emissions, promoting widespread adoption of solar power. But repurposing waste carbon for power and fuel recycles existing carbon, having a positive affect on emissions from agriculture and power sectors. • “Double-dipping”, in a good way.
  • 16. So, What are the Barriers?
  • 17. Barrier #1: The Nexus Food, Energy, Water Nexus One resource management strategy affects the others. As the US works toward energy independence, we have to make sure that we are making the right choices, so that we will have enough resources (Energy, Water, and Food) for the future.
  • 18. What do solar panels taste like?
  • 19. The U.S. has incentivized Renewable Energy generation, but has relied on the venture capital markets for much of its development, particularly bioenergy. This reinforces its perceived riskiness; while we consider the development of traditional power a ‘public infrastructure’? 3 year ROI vs 50 year ROI??? Bank financing for “new” and “atypical processes”, requires 30%-40% cash equity investment, plus redundant personal guarantees, plus , plus, plus, plus… Can you imagine financing a coal plant, nuclear plant, or gas turbine this way? Barrier #2: Bioenergy upstart is costly Fostering investment in biogas systems
  • 20. Barrier #3: Black hole of information - Education and Understanding •The U.S. Bioenergy Roadmap committed the USDA, EPA, and DOE to create a working group to collaborate with industry to prioritize policies to expand the US biogas industry. •How will this information get to the public and elected leaders? •Who will push this initiative through the States? •Who will get bioenergy education to the public so we can make informed decisions? These are currently roadblocks on our roadmap.
  • 21. Barrier #4: Standards are lacking •Lack of Federal performance standards; state standards are inconsistent •Regional, state, and local biogas market analysis and policies lacking (compared to other resource plans, such as water, natural gas, etc.) •Barriers to injection of purified biogas into the existing natural gas pipeline network
  • 22. Barrier #5: Risk imposed by Fossil Fuel Markets •Short-term drops in petroleum prices take our eyes off the long-term prize; creates market instability and market risk. •Fossil fuel prices greatly impacted by speculated risk and foreign politics; biogas prices are set and fixed for 10, 15, or 20 years – this creates market stability.
  • 23. US Petroleum and Other Liquid Fuels Supply But we are developing Natural Gas!!! 23
  • 24. Barrier #6: Competition and priority for funding needs. Infrastructure funding: must choose between funding “gotta haves” and “nice to haves”. Right now, we consider bioenergy a “nicety” – nearsightedness stifles innovation. Energy Utilities must assess risks of ‘entrepreneurs’ as compared to costlier exploration for conventional fuels; though, in many cases, bioenergy fuels can be a direct replacement. Quantify fossil fuel deposits or ‘above the dirt’ organics? Biofueled vehicles have very limited range (nationally) and resale markets due to lack of fuling infrastructure.
  • 25. Barrier #7: Which ROI?  The “Triple Bottom Line” is often discussed, but most decisions are made on the obvious one (or the only one that really matters...)  Bioenergy system ROI’s are compared to conventional fuels; however the cost abatement realized through reduced emissions, reduced landfill life, reduced price volatility, etc. are not factored into the economic returns.  Conventional infrastructure ROI’s based on 20, 30, and 50 years. How do the economics compare at 10-15 year?  Value of sustaining agriculture? Value of utilization of existing WWTP Infrastructure? Value of lost arable lands? Value of deferred landfill?
  • 26. Summary The BURNING QUESTION ? ? ? Why Not?  We have infinite supply of renewable sources of organic materials that may be used to generate bioenergy  Production of biogas and bioenergy can hedge against increasing energy costs  Thought leadership change from “waste” to “resource”  Bioenergy is a domestic source of “clean” energy,  Reduced reliance on foreign sources of fuel / increased energy independence  Extended landfill life  State Regulatory and Federal policy drivers  What has your state done to be a good steward of bioenergy resources???
  • 27. More Information, including a bioenergy blog, can be found at: http://www.cavanaughsolutions.com/contact Final Thought… It took several hundred thousand years for the Earth to make crude oil, but we can convert organic waste into natural gas (biogas) in less than 2 days