Experience of landfill gas upgrading to vehicle fuel

1. Experience of landfill gas upgrading to vehicle fuel Björn H. Halldórsson, MSc, Chief Engineer, SORPA bs CEO,Metan ltd.

2. Nordic Biogas Seminar • Discussion in this presentation: • Icelandic background • Demography • General energy situation in Iceland • Waste handling/methods • Short project description • Possible future developements Nordic Biogas Conference

3. Icelandic background • General • 103.000 km2, 300.000 inhabitants or 2,9 inhabitants/km2, one of the most sparsely populated countries in the world • 185.000 people live in the Capital area on approximately 300 km2, so 0,9 inhabitants/km2 is more representative outside the capital area! • Far away from any substantial markets • Fishing industry is the biggest industry, second runner is aluminum smelting! Nordic Biogas Conference

4. Icelandic background • Energy: • 90% of homes heated with geothermal energy, rest with electricity • 100% of electricity produced by hydropower or geothermal energy • Fuel for fishing vessels and vehicles is imported fossil fuel • Coal is only imported in small quantities and used exclusively in industry • Natural gas has not been found in Iceland Nordic Biogas Conference

5. Icelandic background • Waste issues • Responsibility of the Municipalities • EU regulations apply in Iceland, though usually with a time delay – biological waste still accepted at landfills • Landfilling has been the predominant method of waste disposal in Iceland for the last decades • Landfilling is by far the least expensive way to dispose of waste Nordic Biogas Conference

6. ...the beginning • SORPA • Capital area, non-profit, community owned waste management company, founded in 1988 and started operation in 1991. • Operates a baled waste landfill at Álfsnes since 1991 • The board of directors decided in 1996 to start collection of the landfill gas • In 1997 the first part was inaugurated; gas was just flared in the beginning Nordic Biogas Conference

7. Metan Ltd. • Metan Ltd was founded in 1999 by SORPA and Aflvaki hf. (a community owned investment fund). • Main purpose of the company was (and is) to sell energy from the landfill gas • Owners today are SORPA, ESSO, NSA (investment fund) and Reykjavík Energy (OR) Nordic Biogas Conference

8. Upgrading • A small pilot plant was installed in year 2000 • Uses a water scrubber technology • Can clean 40 m3/hour • Upgraded gas is compressed to 250 bars into moveable containers • At the same time (2000), 21 NGV vehicles where imported • Owned by different public and private entities including SORPA, City of Reykjavík, Icelandic Telecommunication Company and Post Office • All different types of VW vehicles Nordic Biogas Conference

9. First steps.... • Investment cost of pilot plant was ~ €450.000,- • Investment cost of containers was ~ €187.000,- • Investment cost of dispenser ~ €80.000,- • Total investment cost ~ €720.000,- • Obviously, all this cost is not carried by the fuel user • Big part of this cost is carried by the waste producer • SORPA’s operational permit states: “Landfill gas shall be collected and used if possible otherwise it shall be flared” Nordic Biogas Conference

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16. First steps.... • Experience: • For vehicles, in general good! • Bigger engine – better performance! • Plant is not “industrial proof”. Contains elements that need constant monitoring. Some parts difficult to obtain • Enthusiastic and competent people have secured good operation of the plant! Experienced people from the fishing fleet is a good asset! Nordic Biogas Conference

17. First steps.... • Experience • Quality of upgraded methane was around 95% until 2005 when new material was introduced into the scrubber tank; ACS filling material (steel) instead of plastic “Telleretts” • Dirt in the gas has caused cloghing in the ACS material at least twice • Measurements of dew point have not been easy • Running the pilot plant requieres almost constant monitoring Nordic Biogas Conference

18. Vehicle development • In 2002, 17 more vehicles imported, again operated by different public and private companies • This time only Citroen Berlingo cars • Experience from these cars is different from the VW cars • Citroen cars only had 1.400 engines which are far to small!! • Difficulties in the beginning with non-compatible material in pressurized valves • Two cars where destroyed by fire (it is not conclusive what caused the fire but electrical system is a strong suspect) Nordic Biogas Conference

19. Vehicle development • 6 cars were imported in 2003, this time a VW Golf Variant, designed from the beginning as a NGV and Citroen Berlingo • experience very good for VW! • In 2004, 2 cars where imported, Volvo S80 and Ford Condor – very good experience • In 2005, 2 Benz Econic, 2 Scania Buses and 1 Ford E450 – so far very good experience Nordic Biogas Conference

20. Development • The two buses together require approximately 10 times more gas than all the other NGV’s together! • A new upgrading plant was needed • After thorough studies it was decided to continue with the same technology (scrubber) • A new upgrading plant with compressors is newly installed – compressors from Wayne Pignone in Italy • ESSO’s dispenser facility upgraded with a compressor/booster from idro mecchanica in Italy. Nordic Biogas Conference

21. Development • New project is designed to be flexible and accomidate maximum volume harvestable from the landfill • Estimated cost; new upgrading plant: €1.000.000,- • Estimated cost; upgraded booster : €270.000,- • A pipeline “in the pipes”: €740.000,- • Estimated total cost: €2.010.000,- • As before, cost of the project is by a majority carried by the waste producer Nordic Biogas Conference

22. Development • The new upgrading plant is designed to run automatically for the majority of the time • The plant though requires competent engineers for smooth running • For the first “round”, two or three engineers will work on the plant and manage the booster station. Running all other parts of the system (collection) also requires competent engineers • If a pipeline will be installed it will make running of the upgrading plant easier Nordic Biogas Conference

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32. ..the mine! • The landfill accepts 120.000 – 170.000 tons a year of baled mixed waste • Today (2005) the landfill contains 1,3 million metric tons of waste • Landfill has a permit until 2015; gas in workable quantities will be extractable until 2030 • Today, landfill gas production is approximately 700 Nm3/hour but estimated to peak at 1.400 Nm3/hour in 2015 • Landfill gas contains app. 55% methane • Can provide fuel for 3.000 – 4.000 smaller vehicles Nordic Biogas Conference

33. General conditions • NGV’s are more expensive than regular diesel or gasoline cars, usually € 3.300 – 4.700 • Incentive from the government – reduction on excise tax € 3.200 • Upgraded biogas carries no other tax than value added tax (VAT) • Price comparison: • Diesel: 1,46 €/litre • Gasoline (regular) 1,50 €/litre • Upgraded biogas: 1,19 €/Nm3 Nordic Biogas Conference

34. Other projects • In 2002, an electrical generator was installed, produces appr. 850 kW electricity and has produced total of 11 GWh from startup • A pilot project with a plastic manufacturer who used upgraded biogas instead of oil – project halted because of cost of transportation • A pilot project with a car painter who uses upgraded biogas for heating cars after painting Nordic Biogas Conference

35. Further devlopment • Reykjavik City Council decided in 2003 to phase out diesel driven waste trucks for NGV’s • A new project with a school is underway – will probably result in converting one to two cars • Only one dispenser – new dispenser only possible if more vehicles drive on the streets; this is an expensive project in monetary terms but inexpensive in environmental terms! Nordic Biogas Conference

36. Future development • Currently the landfill gas is collected as a bi-product! This is not the optimal method! • In due course, biological waste will be diverted from landfill towards biological treatment • Other sources of biogas could be waste water, farm waste, fishing waste and crops! • When natural gas is discoverd in Iceland or when it will be technically feasable to transport natural gas to Iceland it will support biogas production! Nordic Biogas Conference

37. Thank you for your attention!! www.sorpa.is www.metan.is Nordic Biogas Conference