BOARD MEETING DATE: May 7, 2010
AGENDA NO. 9

PROPOSAL:

Execute Contracts to Cosponsor Aftertreatment Emission Control Technology Demonstration Projects for Biogas Engines

SYNOPSIS:

The use of renewable feedstock for energy production is a necessary transition to reduce greenhouse gas emissions, provide domestic energy diversity and reduce petroleum dependence. The utilization of these fuels, however, must be made as clean as possible, and the proposed two projects investigate this potential using a specific technology, NOxTech aftertreatment. This action is to execute contracts to demonstrate NOxTech on a landfill engine and a digestor gas engine at costs not to exceed $150,000 and $85,000 respectively, from the Clean Fuels Fund. Both projects will be heavily leveraged by other sources with total project costs over $1.6 million.

COMMITTEE:

Technology, April 16, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute the following contracts from the Clean Fuels Program Fund (31):

1. NOxTech, Inc. to retrofit a landfill gas engine with NOxTech aftertreatment emission control technology in an amount not to exceed $150,000; and

2. Eastern Municipal Water District to retrofit a digestor gas engine with NOxTech aftertreatment emission control technology in an amount not to exceed $85,000.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In order to provide sustainable power for the future, emissions from combustion of renewable feedstocks must be made as clean as possible to address greenhouse gas and criteria pollutant emissions. Feedstocks of particular interest are product gases from wastewater treatment plants and landfills, which are commonly referred to as biogas. Two project proposals have been received which investigate the viability of low emission power generation from these feedstocks through the use of NOxTech aftertreatment emission control technology. 

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

As part of the February 2008 amendments to Rule 1110.2, biogas engine emissions limits will drop to 11 ppm NOx, 30 ppm VOC and 250 ppm CO at 15% oxygen by 2012. Because the emission limits are technology forcing, the Board directed staff to conduct a technology assessment and to report back to the Board by July 2010 to assure that cost-effective and commercial technologies are available to comply with the limits. NOxTech, Inc. (NOxTech) and Eastern Municipal Water District (EMWD) submitted proposals to install aftertreatment emission control technology to reduce emissions from engines operating on two different biogas streams, which in this case are digestor and landfill gas. These proposed projects will support the technology assessment study for the future biogas engine emission limits of Rule 1110.2.

Proposals

NOxTech System for Landfill Gas Engine

Staff proposes to execute a contract with NOxTech to cofund a demonstration project to retrofit a landfill gas engine with NOxTech aftertreatment emission control technology. The NOxTech system is not affected by impurities in biogas as it is based on a controlled, highly mixed, oxidation combustion reaction zone and uses no solid surface catalyst for the reduction of NOx, CO and VOC emissions. The demonstration program would last for a period of six months using a 1.4 megawatt engine located at Waste Management Renewable Energy, LLC (WM) Bradley landfill in Sun Valley, California. NOxTech and WM will subcontract the engineering, construction and testing tasks to assess the performance of NOx, CO and VOC removal by the NOxTech system. This project will consist of installing and retrofitting the NOxTech technology as aftertreatment emission control at the exhaust of a Deutz TBG620 landfill gas fueled internal combustion engine.

The NOxTech system is based on a combustion process that generates a chemical and thermal environment through the injection of urea that is optimum for the reduction of NOx, CO and VOCs emissions from the engine exhaust stream.

NOxTech System for Digestor Gas Engine

Staff also proposes to execute a contract with EMWD to cofund a demonstration project to retrofit and manifold one digestor gas and two natural gas engines with one NOxTech aftertreatment emission control technology. Landfill and digestor waste gas feedstocks are inherently different in their chemical content and diurnal supplies. The demonstration of the NOxTech system on both landfill and digestor gas engines would demonstrate the ability of this technology to be used as an emission reduction option for both waste gas feedstocks.

This demonstration program would last for a period of six months using a 260 hp digestor gas engine and two 330 hp natural gas engines located at EMWD’s San Jacinto Valley Regional Water Reclamation facility in San Jacinto, California. Similarly, EMWD will subcontract the engineering, construction and testing tasks to assess the performance of NOx, CO and VOC removal by the NOxTech system.

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 NOxTech and EMWD projects have the potential to reduce significant amounts of criteria pollutant and greenhouse gas emissions. If the demonstration projects are successful, it will enable the implementation of the 2012 emission limits in Rule 1110.2 for biogas engines. This project is included in the Technology Advancement Office 2010 Plan Update under “Stationary Clean Fuel Technologies.”

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 sole source awards to NOxTech and EMWD 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. NOxTech, Inc. holds the intellectual and property rights to the NOxTech aftertreatment technology. EMWD and WM are the host sites and owners of the biogas engines proposed to be retrofitted with the NOxTech aftertreatment technology.

Resource Impacts

The total cost of the NOxTech project is estimated to be $725,000. AQMD’s cost-share for this project will not exceed $150,000 from the Clean Fuels Fund, and the remaining $575,000 will be provided by WM and NOxTech. Following is the list of funding partners supporting this project:

The total cost of the EMWD project is estimated to be $889,000. AQMD’s cost-share for this project will not exceed $85,000 from the Clean Fuels Fund, and the remaining $804,000 will be provided by EMWD. Following is the breakdown of funding for 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 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.