Next Generation Technology Swine Waste-to-Energy Project

AgSTAR National Conference June 11, 2013

By: William G. “Gus” Simmons, Jr., P.E. Presented by: Marvin Cavanaugh,

Cavanaugh & Associates, P.A.

Renewable Energy Generation and GHG Emission Reductions via Innovative Waste Management

North Carolina Swine Energy Potential 2

Asheville

Triad Raleigh/RTP

Charlotte Wilmington

Data provided by Duke University Carbon Offsets Initiative

Why is NC Looking at Alternative Energy / Fuels from Ag Waste? • NC Ranks 2nd in the US in pigs produced, with 15%; 2nd to Iowa • NC Ranks 2nd in the US for turkeys produced with 13% after MN • NC Ranks 10th in US for residential electricity consumption, per capita

Commercial-Scale Demonstration Project: Loyd Ray Farms Swine Waste-to-Energy Project Converts waste from 9,000 pigs into electricity Improved Environmental Management

Raw

Was

te

Mixed Digester B

ioga

s

Liqu

ids

How it Works

Existing Storage Lagoon

How it Works: ~65% CH4

What it looks like… After Construction

Photos by: Marc Deshusses, Duke University, 2011

6

What it looks like… Steady State

Covered Anaerobic Digester 7

Aeration System 8

Electricity Production Rate - 2012

0

10

20

30

40

50

60

7012

/31/

2011

1/7/

2012

1/14

/201

2

1/21

/201

2

1/28

/201

2

2/4/

2012

2/11

/201

2

2/18

/201

2

2/25

/201

2

3/3/

2012

3/10

/201

2

3/17

/201

2

3/24

/201

2

3/31

/201

2

4/7/

2012

4/14

/201

2

4/21

/201

2

4/28

/201

2

5/5/

2012

5/12

/201

2

5/19

/201

2

5/26

/201

2

6/2/

2012

6/9/

2012

6/16

/201

2

6/23

/201

2

6/30

/201

2

7/7/

2012

7/14

/201

2

7/21

/201

2

7/28

/201

2

8/4/

2012

8/11

/201

2

8/18

/201

2

8/25

/201

2

Pow

er (k

W)

9

Compressor cooler failure, controls

Manual Operation Only – Gas Skid

Replacement

Gas Conditioning System & Microturbine

10

Microturbine Specifications: •65 kilowatt Generative Capacity •First Scheduled Service @ 8,000 Hrs •Only one moving part @ >90,000 RPM •Air bearings – no lubricant or coolant required

11 A COUPLE OF FIRSTS:

• First Swine Waste-to-Energy project in the State of North Carolina to place RECs on the NC Utilities Commission REC Tracking System • First Transfer of RECs from a NC Swine Farm to Duke Energy • First ‘Innovative Swine Waste Treatment System’ permitted that utilizes digester

Costs and Benefits Costs Capital: $1.7M O&M: $80,000/year

Funding sources NCACSP LCP CCPI/EQIP Sale of RECs to Utility Sale of Carbon Offsets

(voluntary market)

Note: No capital or operating costs passed on to farm owner! Farm owner receives excess electricity!!!

Benefits Cash flow for farm owner Improved animal health Other ecosystem services (N,

P control) Variability in nitrogen output

for fertilizer Reduced sludge management

cost Improved air quality on-site Reduction of odors off site More choice in cropping plan Sustaining NC Agriculture Reduced GHG Emissions

12

Challenges & Lessons Learned: Gas Skid Challenges – Gas skid has suffered from multiple outages, which prevents REC generation, gas skid control issues Abundance of Gas – Very conservative on gas production expectations – Electrical Load Balancing – Environmental system operating at full capacity requires more electricity (demand) than the microturbine produces.

CAR Protocol Requirements – Adding additional gas flow meters, thermocouples on flare, etc.

13

Next Steps… In April 2013, Duke University released ENERGY GENERATION FROM SWINE

WASTE: A SPATIAL-ECONOMIC OPTIMIZATION STUDY (OptimaBiogas Study) The analysis determined that the swine WTE portion of the REPS could be met with

as few as 127 farms located in Sampson and Duplin Counties, assuming the use of highly efficient mixed anaerobic digesters to produce biogas (the fuel generated from swine waste) at each farm. Researchers evaluated four scenarios for producing electricity from swine waste-

derived biogas, including: 1. On-farm electricity production, using on-farm digesters and on-farm generators; 2. On-farm digesters and biogas collection for direct injection into the existing natural gas pipeline; 3. Transport of biogas from individual farms to a centralized location for electricity production; and 4. Transport of biogas from individual farms to a centralized location for purification, pressurization and injection into the existing natural gas pipeline (and assumed combustion in a highly efficient combined cycle natural gas plant).

Special Thanks

Mr. Loyd Bryant, Loyd Ray Farms LNH Farms

15