n Estimate LFG Recovery Potential
and Perform Initial Assessment
or Feasibility Study
Evaluate Project Economics
Establish Project Structure
4 Draft Development Contract
5 Assess Financing Options
r6 Negotiate Energy Sales Contract
7 Secure Permits and Approvals
8 Contract for Engineering,
Procurement & Construction,
and Operation & Maintenance Services
Install Project and Start Up
Commercial Operation
Potential Benefits Gained By
Landfill Owners/Operators From Landfill Gas Energy
Economic
Revenue shares from the sale of
landfill gas (LFG) or electricity
produced
Typical revenue for electricity = $0.03/kWh to $0.05/kWh
Typical revenue for gas = $2.00/mmBtu to $4.00/mmBtu
REPI1 payments (municipal owners only) = 1.5 cents per kWh
Royalty payments for gas extraction (private developer only) vary
Offset the cost of a LFG
collection/control system
Typical capital costs (1 million ton landfill) = $600,000 - $750,000
Typical O&M costs (1 million ton landfill) = $40,000 - $50,000/yr
Market potential
LFG = $2.00/mmBtu (avg.) vs. natural gas = $3.00/mmBtu vs.
propane = $8.00/mmBtu (avg.)
Other potential sources of revenue
Emissions reductions trading
Green power/pricing programs
Renewable Energy Production Incentive
Environmental
Improved local air quality
Lower greenhouse gas
emissions
Emissions offsets from
fossil fuels
Subsurface gas migration
control
Community Image
• Progressive, innovative
resource use
• Responsible community
planning
• Safer landfill with reduced
odors
• Job creation through project
development
• Improved economic develop-
ment near the landfill
Energy
Reliable, local fuel source
Less need for use of
polluting fossil fuels
One Million Tons of Waste Yields Considerable Benefits
• 1 million tons of waste in place would typically generate about 300 cubic feet per minute (cfm) of LFG, which
could then generate approximately 7 million kilowatt hours (kWh) per year.
• 7 million kWh is enough energy to power 700 homes for a year.
• In terms of reducing greenhouse gas emissions, generating 7 million kWh/yr by using LFG has the same
environmental benefit of removing the emissions equivalent of more than 8,000 cars from the road for one year.
• Similarly, this use of LFG has the same environmental impact as planting more than 11,000 acres of trees.
Follow the
Steps to:
Landfill
SEFft
United States
Environmental Protection
Agency
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Work with LMOP through each step of
Landfill Gas Energy Project Development
Determine who your LMOP representative is
Join LMOP's partner program
Work with your LMOP representative at each phase of project development
Helpful LMOP tools are located at www.epa.gov/lmop
Estimate LFG Recovery Potential and
Perform Initial Assessment or Feasibility Study
Desired Landfill Characteristics*
• Landfill contains municipal solid waste (MSW)
• Landfill has at least 1 million tons of MSW in place
• Landfill is at least 30 feet deep
• Site receives greater than 25 inches of rainfall annually
* A number of energy projects, however, have been developed at smaller and arid landfills.
Helpful LMOP Tools
Negotiate Energy Sales Contract
Prepare draft offer contract
Determine utility or end user need for power or
gas demand
Develop project design and pricing
Prepare and present bid package
Review contract terms and conditions
Sign contract
Secure Permits and Approvals
Regulations
• Solid waste permit
• Air permit
• Local permitting
issues
• Right-of-ways and
easements
Procedures
• Contact and meet regulatory authorities
to determine requirements
• Educate about benefits of project and seek
approval from landfill neighbors, local
officials, and local environmental and
public interest groups
• Assemble information, perform calculations
and designs
• Submit complete permit applications
to regulatory agencies
• Amend permit application (as needed)
Helpful LMOP Tools
State Primers
Community Outreach Primer
LandGEM or EPLUS software
Project Development Handbook
Evaluate Project Economics
Identify End Users/Sales
• On-site use (gas and electric)
• Nearby direct gas use (sale to industrial end users, such as boilers, kilns)
• Electricity use
• High-Btu upgrade (sales to nearby customers or gas utility)
• Specialty use (greenhouse, vehicle fuel)
Assess Financing Options
Private equity financing
Project financing
Municipal bonds
Direct municipal funds
Grants
Federal, state, and local incentives
REPI - Renewable Energy Production Incentive
Helpful LMOP Tools
Helpful LMOP Tools
Project Development Handbook
EPLUS software
Establish Project Structure
Identify Who Will
Develop/Manage the Project
Option 1: Develop/manage the
project internally
Option 2: Team with a project developer
Option 3: Team with a partner (equipment
supplier, energy end user, community)
Find a Partner
• Issue a Request for
Proposals (REP)
• Acquire expressions of interest
• Solicit developers
• Negotiate with vendors
Funding Landfill Gas Projects:
A Guide to Federal, State, and
Foundation Resources
Financing Landfill Gas Projects Fact Sheet
Draft Development Contract
• Determine gas rights
• Determine rights for potential
emission reductions
• Determine partner responsibilities, i.e.:
- design
- installation
- operation and maintenance
Contract for Engineering, Procurement &
Construction (EPC) and Operation &
Maintenance (O&M) Services
Owner/developer solicits bids from EPC/O&M contractors
Owner/developer selects EPC/O&M contractor
Owner/developer negotiates contracts
EPC/O&M contractor conducts engineering design, site
preparation, plant construction
EPC contractor/developer conducts start-up testing
Install Project and Start Up
Commercial Operation
Ribbon cutting
Public tours
Press releases
Helpful LMOP Tools
Helpful LMOP Tool
Project Development Handbook
Marketing and Promotion Primer
Community Outreach Brochure
Helpful LMOP Tools
Industry partner list for reference, advice, and distribution of RFPs
Identifying Partners for Landfill Gas Projects: Preparing Requests for Proposals (RFPs)
Ready to get started?
Contact LMOP to help you take the first step: 1-888-782-7937, www.epa.gov/lmop
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