Biogas to Liquid Fuels and Chemicals Presentation for BETO 2015 ...
Oregon's Clean Fuels Program and Biogas
13
Oregon’s Clean Fuels Program and Biogas Peter Weisberg April 14 th , 2015 Biocycle in Portland, OR
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Transcript of Oregon's Clean Fuels Program and Biogas
Oregon’s Clean Fuels Program and BiogasPeter WeisbergApril 14th, 2015
Biocycle in Portland, OR
Environmental Markets for BiogasMarket Credit Biogas Use Geographic
Limitation
California Cap-and-Trade
Offset Any Anywhere in the US
US Renewable Fuel Standard
RIN (Renewable Identification Number)
Transportation fuel
Anywhere in the US
California Low Carbon Fuel Standard
LCFS Credit Transportation fuel
Fuel consumed in California
Oregon Clean Fuels Program
LCFS Credit Transportation fuel
Fuel consumed in Oregon
Gasoline Compressed Natural Gas Dairy Biogas Food Waste Biogas-40
-20
0
20
40
60
80
100
120
99.18
68
13.45
-15.29
Carb
on In
tens
ity
(gCO
2e/M
J)
1 2 3 4 5 6 7 8 9 100
20
40
60
80
100
California’s Low Carbon Fuel StandardC
arb
on
In
ten
sit
y (
gC
O2
e/M
J)
Carbon Intensity of Compressed Biomethane from Dairy Farms - 13.45 gCO2e/MJ
Carbon Intensity of Crude Oil - 99.18 gCO2e/MJ
LCFS Carbon Intensity Targets
Credits
Deficits
Oregon’s Clean Fuels Program
• 2009 – Passed the Clean Fuels Program– Sunset in 2015
• 2015 – SB324 removes sunset– 10% reduction in carbon intensity of
transportation fuels by 2025.• 2016 through 2025 – Credit trading to meet
reduction targets
Washington Clean Fuels Standard• Washington Department of Ecology has the authority to implement a Low
Carbon Fuel Standard (under the Washington Clean Air Act).– Agency rulemaking (not new legislation) is all that is required.
• 2009 – Study Low Carbon Fuel Standard (with Oregon).• 2013 – Pacific Coast Collaborative.
– “Oregon and Washington will adopt Low Carbon Fuel Standards.”• April 2014 –Office of Financial Management reevaluate Clean Fuels
Standard.
Source: Lifecycle Associates et al. A Clean Fuel Standard in Washington State. December 2014.
Washington Clean Fuels Standard• April 2015 – Senate transportation bill “poison pill”
– “redirects vehicles fees to a legislatively controlled account should the Governor move ahead with Clean Fuel Standard adoption”
• We’ll see!– “Hard to imagine Washington being the only state on the West Coast without a Low
Carbon Fuel Standard”
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 $-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00 California LCFS Price ($/mtCO2e)
$/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon equivalent)
Current $21.75 $2.59 $0.34
Average $42.26 $5.03 $0.65
High $85.00 $10.12 $1.31
LCFS Value to BiogasFood Waste (HSAD) Carbon Intensity: -15.29
1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
$/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon equivalent)
Current $21.75 $1.93 $0.25
Average $42.26 $3.75 $0.49
High $85.00 $7.54 $0.98
LCFS Value to BiogasDairy Digestion Carbon Intensity: 13.45
1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
Biomethane credit ownership• Oregon – Entity that refines/treats biogas into
biomethane• Importers
- Trucked – Owner of biomethane when trucked into Oregon
- Pipeline – Owner of biomethane when injected into pipeline outside of Oregon.
Key Barrier: Financing projects
• LCFS market is– Nascent– Volatile– Complex– Under legal challenge– Policy dependent (demand = policy, supply = policy)
• credits are not “bankable”
