Converting Biogas to CNG for

Vehicle Fuel

September 30, 2013

Chris Voell, Eastern Sales Manager

BioCNG, LLC
BioCNG system
Developed by Cornerstone Environmental to
economically produce biogas-based CNG at small
scale (200-1,000 GGEs day).

Allow public and private entities to produce their

own vehicle fuel at a fraction of the cost of gasoline
or diesel.
Fabricated by Unison Solutions.

Initial Q&A
Who has CNG vehicles?
Types, new or retrofits, experience

CNG stations?
Time fill, fast fill, public, own

Plans for CNG?

Looked at landfill gas/biogas as source?
How many are just here to get PE credits?

Why is biogas-CNG a relevant topic of

discussion?
Fuel is a large part of operating
budgets either direct or indirect.
Renewable energy markets in flux
with low natural gas prices.
Growing interest in energy
independence and security.

BioCNG - Renewable Natural Gas Biomethane

** Same infrastructure for
RNG as for fossil fuel-CNG

Biogas-CNG Benefits
Builds out alternate fueling infrastructure
Distributed cleaner, greener infrastructure

Major greenhouse gas reductions

85-115% GHG reductions v. gasoline/diesel
Using otherwise wasted resource

Benefits stay at home

Fuel savings (and credits) accrue to local public and private
entities
Infrastructure primarily from local sources - GC, electric,
construction, permitting, fueling station

Significant savings over gasoline and diesel

50-75% savings over current gas/diesel cost

Control and distributed source

Fuel cost locked in for 15-20 years

U.S. RNG Market Sources

Current Nationwide Biogas Sources
600 operating LFG energy projects (excess biogas)
electric contracts expiring
~800-1000 additional landfills flaring gas

195 manure/organics-based digesters

At least 8,000 opportunities (new source of biogas)

1,200 WWTP digesters (unused biogas)

Unused biogas and excess digester capacity

Hundreds of billions of cubic feet of biogas

wasted every year.

Huge upside potential with food

waste/organic AD systems.

Successful Projects

Primary Targets for CNG Vehicles

Trash, recycling, cement and
other vocational work trucks
Transit buses/shuttle
buses/school buses
Major metro fleet
management and public works
departments
Heavy-duty freight trucks
Medium-duty delivery and
commercial service trucks
Taxis and light-duty service
vehicles
The more fuel used the quicker
the payback

High fuel use vehicles with

return-to-base operations or
repetitive route or pre-set
geographic operating areas.

Regional freight truck 1620K GGE

Transit buses 12.5-15K GGE
Refuse trucks 7.5-10K GGE
Municipal sweeper 5-6K
GGE
Airport shuttle service 5.57.5K GGE
Taxi - 4.5-5.5K GGE
School Bus 2-3K GGE

Trucks & Buses Shifting To CNG:

Cleaner, Quieter & Cheaper Fuel
Fleets, Communities & Drivers Love Them

More NGV Pictures

Current RNG Projects

RENEWABLE NATURAL GAS (RNG): The Solution to a Major Transportation Challenge, Energy Vision, New York,
September 2012

Additional Projects City of Riverview, Michigan; Sacramento BioDigester; Texas Landfill; Tennessee Landfill; Hilarides Dairy;
Geerlings/Scenic View Farms

Projects
Dane County Landfill (WI)
Operational March 2011
Replaced BioCNG 25 with BioCNG 50
Fuel service vehicles and pick ups; plans to fuel packers and transfer trailers

City of Janesville WWTP (WI)

Operational February 2011
Hybrid BioCNG 50

St. Landry Parish Landfill (LA)

Operational March 2012
Budgeting to add BioCNG 200 to existing BioCNG 50
Fueling Sheriffs fleet and SWM vehicles

Clean World Sacramento Biodigester (CA)

Operational May 2013
BioCNG 100 (plans to add BioCNG 200 by end of 2013)
Fueling Atlas Disposal collection fleet

City of Riverview Landfill (MI)

Operational May 2013
BioCNG 100
Fleet fuel as well as plans for RNG delivered to Chicago-based company

Biogas/Vehicle Fuel System

Information
System Size

Biogas Inlet
Flow (scfm)

Fuel
Fleet Size Per Unit
Production
(GGE/day)

Light duty

Heavy duty

BioCNG 50

50

200-275

20-27

2-4

BioCNG 100

100

375-550

38-55

5-8

BioCNG 200

200

775-1110

77-110

11-17

Dane County, Wisconsin Landfill

(50 cfm LFG = 175 DGEs/day)

St. Landry Parish, Louisiana Landfill

(50 cfm LFG = 175 DGEs/day)

City of Riverview, Michigan Landfill

(100 cfm LFG = 400 DGEs/day)

Clean World Sacramento Biodigester and Atlas Disposal

(300 cfm digester biogas = 1,500 DGEs/day)

Anaerobic Digestion

1. Multitude of technology providers

2. Why organics & AD

3. System categories

4. Differentiating system parameters

5. Selection Criteria

Multitude of System Providers

Why Organics & AD?

System Categories
Wet System
o Pumpable, relatively homogenous
o Low solids (LS): <5% to 20% TS
(co-digestion with sewage sludge)

o High solids (HS): 20% to 40% TS

Dry System
o Stackable, less well mixed substrate
o High solids (HS): > 40% TS

Many variations operating (or available) today

Single stage or
Multistage
Mesophilic or
Thermophilic

AD System Parameters
Moisture Content (wet or dry)
Retention Time
Temperature (mesophilic or thermophilic)
Loading Rate (batch or continuous)
Stages (single or multistage)

 Zero Waste Energy (CA) - Eggersmann Tech

(Germany)

o Kompoferm/SmartFerm : Dry HS (Batch)

 CleanWorld (CA)
o High-Rate Digestion (HRD) : Wet HS/LS (Multistage)

System Selection Criteria

Overall Project Goals

Feedstock
Existing Infrastructure

End markets for digestate & biogas

Capital & operating costs

CleanWorld/Atlas Video
http://sacramento.cbslocal.com/2013/09/13/food-becomingfuel-for-sacramento-city-trucks-street-sweepers/

South San Francisco Transfer Station

POTW/WWTP Opportunity

City of Janesville, WI WWTP Digester

(50 cfm = 200 DGEs/day)

Project Structures
Produce CNG for on-site dispensing:
o Cost efficiency for biogas owner vehicle fuel demand cut
your own fuel costs
o Revenue source - sell fuel to site users (waste haulers) or
other local fleets
o Open public station

Produce Upgraded Biogas:

o Fuel off-site CNG station (mother-daughter station)

o Pipeline Injection
o Fuel for engine, boiler, or CHP applications

200 cfm of Landfill Gas/Biogas

50-75 TPD food waste

3,000 milking cows

or < w/co-digestion

Excess gas at large

landfill; small landfill
stand-alone project

20 MGD WWTP or <

w/co-digestion

40,000 finishing hogs

or < w/co-digestion

Biogas-CNG v. CNG Cost

CNG current national average price
$2.07 at the pump
At todays historically low NG prices

Landfill Gas/Biogas-CNG
200 cfm, 55% methane, 10 years, 4%, $.07
kWh
Estimated DGE Production Cost w/no
Incentives
$1.18 DGE (O&M: $.62, Finance:$0.56)
With combo fast fill and time fill fueling station
add $0.60-$0.80 DGE
With federal (add $0.245) and state excise taxes
(varies)

Bio-CNG 200: Sample Project

200 cfm of landfill gas at 55% methane

Fuel Production
240,000 Diesel Gallon Equivalents
(DGEs) per year
790 DGEs/day - enough fuel for ~25 HDVs
(or ~40-50 light duty vehicles)

Fuel Savings
$480,000 in annual fuel savings
Assuming savings of $2 gallon on diesel
costs during financing greater savings
later

Federal Renewable Fuel Credits (RINs)

$177,000 per year ($0.74 per DGE)
$480,000 per year ($2.00 per DGE)
Not a tax credit payment to RIN dispenser

Additional Costs
New vehicle
premium or
conversion
Maintenance facility
upgrade
Staff training

Additional Benefits
Trucks 10x quieter
than diesel
PR-community
relations
Air pollutant
reductions
Competitive
advantage
Driver satisfaction

Federal Renewable Fuel Standard Credits

Renewable Identification Numbers (RINs)
Means to track, register and monetize environmental
attributes of alternative vehicle fuels

Available through 2022

Direct payment not a tax credit
2013
$1.40 currently for D5 RINs; equates to >~$2.00 GGE for
biogas-based CNG
@ $2, equates to ~$14.80 per decatherm (mmbtu) of biogas

High demand for RINs

Current EPA proposal to recognize co-digestion; LFG as
cellulosic RIN
46

Case Study - 200 scfm Landfill Gas at 55% CH4

Financial Model - Natural Gas vs. BioCNG Upgrade System
Natural Gas - CNG

Biogas - RNG

Diesel

Raw fuel per DGE

1.08 (@ $8/mmbtu NG delivered) O & M of System

0.62

Federal Excise Tax

0.25

Amortization

0.56 10 years at 4%

Federal Excise tax

0.25

NYS Excise Tax

0
1.33

NYS Excise Tax

245,000 gallons@$3.68/gallon =
$901,600.00

0
1.43

2013 Federal NGV

Credit

-0.5

Total Cost Per DGE

0.83

245,000
DGEs/year

202,125

1 mmbtu = 7.4 DGEs of CNG

Net economic impact

-0.5
$

July 2013 RIN

0.93

-2.08

Total Cost per DGE

(1.16)

245,000 DGEs/year

(282,975)

$ 485,100

0.93

0.93

0.93

-1.5

-1

(0.57)

(0.07)

0.93

$(139,650.00)

(17,150.00)

227,850.00

$ 341,775

219,275

$ (227,850)

Payloads and Ranges

New ISX12 G Engine by Cummins
Westport allow for 60-80K
Payloads

Ranges Growing: Freightliner

and Saddle Creek600-700 miles

NYS Financial Incentives

New York Truck Voucher Incentive Program
$19.5 M, up to $25 K per vehicle

NYSERDA PON CNG Fueling Infrastructure

(upcoming)
< up to $500K, $4 M

NYS Cleaner, Greener Community Initiative

$90 M over 2013-2015
GHG reductions
Renewable energy generation

Biogas-CNG Summary
Low cost fuel and fixed long term
Potential to pay back investment 2-3
years w/RINS
Compatible with all CNG
infrastructure
Greenest fuel
Feasible at small scale

Chris Voell
Chris.voell@biocng.us
845-695-0240

www.biocng.us
Prentiss Shaw
prentiss.shaw@cornerstoneeg.com
845-695-0202

www.cornerstoneeg.com