Energy Technology Expert

Municipal Solid Waste (MSW) to Power Project

This is a power point presentation with a project finance model for calculating feed-in tariff (FiT).

The FiT is a renewable energy charge paid to renewable energy (RE) developers for providing power to the grid.  It is paid for by the Transco operator who collects a renewable energy charge (REC) from all consumers of electricity in the country.  By being spread out to all consumers, the burden of a higher FiT compared to the average grid rate is shared equally by all citizens and consumers alike since they will benefit from the positive impact of RE on global warming and climate change issues.

Outline

• •Methods of MSW Treatment
• •Thermal Conversion
• •Feed-in Tariff of RE Technologies
• •Sources of Revenue
• •All-in Project Cost
• •Conclusions & Recommendations

Treatment of MSW

• •Direct combustion (incineration) – not allowed by the Clean Air Act
• •Co-firing of MSW with coal or wood wastes – also may not be allowed by the Clean Air Act
• •Landfill methane recovery – needs again a sanitary landfill with liquid treatment and methane gas piping and spark ignition engine or diesel compression engine, leaves spent solid waste at landfill site
• •Biomass gasification – no sorting of MSW needed, small plant footprint, minimal landfill for storage of high-density and inert residue

Thermal Conversion

• •The technology is based on a combination of gasification, pyrolysis (absence of air), and high temperature melting
• •No pre-sorting and pre-processing of municipal solid waste (MSW) – no need to remove plastics
• •At the high temperature (1,600 – 1,700 deg Celsius), all known materials including cancer-causing dioxin are converted to harmless elemental components of C, H, S, O, N.
• •The synthesis gas coming out of the molten materials at 1,700^o C is cooled down to boiler temperature  to produce steam to drive a steam turbine coupled to an electric generator

Feed-in Tariff of RE Technologies (1 US$ = 47 p)

Mini-hydro (10MW, $1,926/kW, 50% CF) = 4.95 P/kWh

Biomass Direct Combustion with Cocowastes (10MW, $3,314/kW, 75% CF) = 9.37 P/kWh

Biomass Cogen with Bagasse (34MW, $3,309/kW, 75% CF) = 10.95 P/kWh

Biomass Gasification of MSW (400 mt/day of MSW, 28.5MW, $3,337/kW, 75% CF) = 7.21 PhP/kWh

Solar PV  (1.25MW, $3,130/kW, 15% CF) = 24.79 P/kWh

Wind Farm  (30MW, $2,438/kW, 25% CF) = 12.05 P/kWh

Ocean Thermal OTEC (16MW, $11,659/kW, 92.3% CF) = 18.26 P/kWh

Sources of Revenue

• •Aside from the feed-in tariff provided by the new Renewable Energy Law, the project may collect from the local government units (LGUs) tipping fees as well as fees for specialized treatment of hazardous wastes from other industrial sources
• •The high density residue (over 2 mt/cum) may be disposed as excellent pavement material or as shoreline reinforcement to protect coastal areas from erosion due to strong waves.

All-in Cost and Feed-in Tariff at various MSW feed capacity (email me if you need cost breakdown):

 

MSW Capacity	Project Cost	Gross Capacity	Net Capacity	Cost per mt/day	Feed-in Tariff	DCF IRR
	US$	MW gross	MW net	US$/kW gross	PhP/kWh	% p.a.
400 mt/day	$95,115	28.50	26.26	$3,337	7.2149	15.0%
300 mt/day	$71,919	21.38	19.70	$3,365	8.0688	15.0%
200 mt/day	$48,816	14.25	13.13	$3,426	10.1606	15.0%
100 mt/day	$26,048	7.13	6.57	$3,656	19.2627	15.0%

 

Conclusions & Recommendations

• •At capacities between 200-400 mt/day of MSW, the feed-in tariff rate is 7.21-10.16 PhP/kWh which is acceptable when compared to the other renewable energy sources
• •The feed-in tariff may in fact be lowered if tipping fees from LGUs and hazardous waste treatment from other industrial plants as well as sales of the high-density residue is included.
• •It solves the garbage problem and disposal of hazardous wastes in an economical and environmentally benign manner.
• •At the end of project life, there is no mound of garbage as in the case of landfill methane gas recovery.
• •There is no need of sanitary landfill to dispose of MSW.

Prepared by:

Marcial T. Ocampo

Energy Technology Selection and Business Development Consultant

Mars_ocampo@yahoo.com

energydataexpert@gmail.com