BOARD MEETING DATE: October 2, 2009
AGENDA NO. 9

PROPOSAL:

Execute Contracts to Cosponsor Demonstration Projects for Renewable Feedstock to Energy and Fuel Technologies

SYNOPSIS:

The use of renewable feedstocks for energy production and transportation fuel is a necessary transition to reduce greenhouse gas emissions and provide for domestic energy diversity. These conversion technologies, however, also need to be made as clean as possible, and the proposed two projects investigate this potential. The first proposed project is with Orange County Sanitation District for the demonstration of retrofit gas clean-up and catalytic after-treatment emission control technology on a biogas engine. This second proposed project is with the College of Engineering-Center for Environmental Research and Technology, University of California, Riverside, for a bench scale demonstration project to produce natural gas from biomass waste using steam hydro-gasification process. The total for both projects is over $2.6 million with cost-share being requested from the AQMD not to exceed $301,369 from the Clean Fuels Fund.

COMMITTEE:

Technology, September 25, 2009. Less than a quorum was present for the discussion of this item; the Committee member present communicated his concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

Authorize the Chairman to execute contracts with the following entities from the Clean Fuels Fund:

1. Orange County Sanitation District to retrofit digester gas engine with fuel gas clean-up and exhaust emission control technology in an amount not to exceed $200,000; and
    
2. College of Engineering-Center for Environmental Research and Technology,

University of California, Riverside, for a bench scale demonstration project to produce natural gas from biomass waste in an amount not to exceed $101,369.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In order to provide sustainable power and transportation fuel for the future, renewable feedstocks must be made as clean as possible to address not only greenhouse gas but criteria pollutant emissions as well. Feedstocks of particular interest are product gases from wastewater treatment plants and sewage sludge. Two project proposals have been received which investigate the viability of low emission power and natural gas production from these feedstocks.
 

Biogas Cleanup

Biogas (digestor or landfill gas) fueled engines are traditionally operated at landfills, wastewater treatment plants and other sites where waste fuel gas is generated. These engines are generally larger 4-stroke, lean-burn engines very similar to natural gas engines and used primarily to power electrical generators. Due to contaminants in the biogas, such as siloxane, that are incompatible with catalytic after-treatment devices, biogas engines have generally not been required to install oxidation catalysts and selective catalytic reduction (SCR) units that natural gas engines use. As a result, the emissions for biogas engines are higher than a diesel engine with BACT.

As part of the February 2008 amendments to Rule 1110.2, by 2012, biogas engine emissions limits will drop to 11 ppm NOx, 30 ppm VOC and 250 ppm CO. Because the emission limits are technology-forcing, the Board directed staff to conduct a technology assessment and report back to the Board by July 1, 2010 to assure that cost-effective and commercial technologies are available to comply with the limits. The Orange County Sanitation District (OCSD) submitted a proposal to install retrofit control technologies to reduce emissions from an engine operating on biogas from a wastewater treatment plant. This proposed project will support the technology assessment study for the future biogas engine emission limits of Rule 1110.2.
 

Conversion of Sewage Sludge

The College of Engineering-Center for Environmental Research and Technology, at the University of California, Riverside, (CE-CERT, UCR) has been engaged for many years in developing methods to thermo-chemically produce various types of transportation fuels from wet biomass waste feedstocks. Through this effort, CE-CERT has developed a steam hydro-gasification reaction (SHR) process that produces a product gas that contains a considerable amount of methane using a biomass waste and biosolids feedstock. When the SHR is used in conjunction with a water-gas shift (WGS) reactor, it has the potential to generate a product gas that has a high methane concentration. CE-CERT has developed a rotating kiln SHR that produces syngas from coal. This SHR can be modified to handle biomass waste and biosolids feedstock.
 

Proposals

Biogas Cleanup

Staff proposes to execute a contract with OCSD to co-fund a demonstration project to retrofit a digester gas engine with a carbon adsorption fuel gas clean-up system and selective catalyst reduction (SCR)/catalytic oxidizer exhaust emission control technology. The demonstration program would last for a period of six months using OCSD’s Engine #1 at District Plant No. 1 located in Fountain Valley, California. OCSD will subcontract the engineering, construction and testing tasks to assess the performance of NOx, CO and VOC removal of the SCR/catalytic oxidizer system. In addition, monitoring of the carbon adsorber system will be performed to gauge the overall performance of the digester gas cleaning system and coordinate the carbon media changeout requirements. This project will consist of the installation and retrofit of the following equipment on OCSD’s Fountain Valley Plant No. 1, internal combustion engine #1 rated at 3,471 horsepower:

• One catalytic oxidizer, urea tank, urea injection system, urea mixing duct section and SCR catalyst system on Engine #1 exhaust flow with associated ductwork, insulation and associated supports from the engine to the existing heat recovery unit.
   
• One digester gas carbon adsorption cleaning system with associated return and supply piping, manual operated drip trip and supports from the main digester gas inlet header to the digester gas cleaning vessel.

The catalytic oxidizer will reduce carbon monoxide and air toxics emissions from the engine exhaust. Urea will be injected into the engine exhaust ductwork between the catalytic oxidizer and the SCR catalyst to reduce nitrogen oxide emissions. The digester gas cleaning system will include activated carbon media to remove siloxane compounds that would damage the oxidation and SCR catalysts.
 

Conversion of Sewage Sludge

Staff also proposes to execute a contract with CE-CERT for a bench scale demonstration project using the SHR process that CE-CERT has developed and a WGS reactor to produce natural gas from biomass and biosolids feedstock containing high moisture. The SHR can currently produce syngas from coal and it will be modified to handle biomass and biosolids feedstock. The WGS will be designed and constructed by CE-CERT. This bench scale project is estimated to handle approximately five lbs/day of feedstock on a dry basis.

Upon successful demonstration of the CE-CERT project, the technology is intended to be used on a larger scale at local wastewater treatment facilities using biosolids (sewage sludge) to produce natural gas for mobile source and stationary source applications. The partners in this proposed project are AQMD, CE-CERT, Viresco Energy, LLC., and the City of Riverside, Public Works Department.
 

Benefits to AQMD

The AQMP relies upon the accelerated implementation of advanced technologies within Southern California to achieve federal and state ambient air quality standards and to further reductions in criteria pollutants. The proposed OCSD project has the potential to reduce 16 tons per year (TPY) of NOx, 7 TPY of ROG and 75 TPY of CO. If the demonstration project is successful, it may enable the implementation of the 2012 emission limits in Rule 1110.2 for biogas engines. This project is included in the Technology Advancement Office 2009 Plan Update under “Emission Control Technologies.”

The proposed CE-CERT project will produce clean burning natural gas from a renewable biomass waste and biosolids feedstock, which will help reduce criteria pollutants and greenhouse gas emissions. Successful demonstration of this project will contribute to the attainment of clean air standards in the South Coast Air Basin by increased use of natural gas in mobile source and stationary source applications. This project is included in the Technology Advancement Office 2009 Plan Update under “Infrastructure and Deployment.”
 

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. The request for a sole-source award to OCSD is made under the following provision: B.2.d.(1) – Project involving cost sharing by multiple sponsors. The request for a sole-source award to CE-CERT is made under the following provisions: B.2.d.(1) – Project involving cost sharing by multiple sponsors, and B.2.c(3) – the contractor has ownership of key assets required for project performance.
 

Resource Impacts

The total cost of the OCSD project is estimated to be $2,411,882. AQMD’s cost-share for this project will not exceed $200,000 from the Clean Fuels Fund, and the remaining $2,211,882 will be provided by OCSD. Following is the list of funding partners supporting this project:

The total cost of the CE-CERT project is estimated to be $211,883. AQMD’s cost-share for this project will not exceed $101,369 from the Clean Fuels Fund, and the remaining $110,514 will be provided by Viresco Energy. Following is the list of funding partners supporting this project:

Sufficient funds are available in the Clean Fuels Fund, which is established as special revenue from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from emission fee surcharges on stationary sources emitting more than 250 tons of pollutants per are restricted, by statute, to be used for projects and program activities related to stationary sources that support the objectives of the Clean Fuels Program. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.