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 ------- 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 ------- |