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

                                                  Revenue shares from the sale of
                                                  landfill gas (LFG) or electricity
                                 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
 Improved local air quality
 Lower greenhouse gas
 Emissions offsets from
 fossil fuels
 Subsurface gas migration
Community Image
 Progressive, innovative
 resource use
 Responsible community
 Safer landfill with reduced
 Job creation through project
 Improved economic develop-
 ment near the landfill
 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:

                                                                                    United States
                                                                                    Environmental Protection

   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
                                                Solid waste permit
                                                Air permit
                                                Local permitting
                                                Right-of-ways and
                                                                                                              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
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