Hunts Point Anaerobic Digestion Feasibility Study - NYCEDC

111 Pages·2010·0.47 MB·English

Report
Hunts Point Anaerobic Digestion
Feasibility Study

Prepared for the
New York City Economic Development Corporation
July 2010

Prepared in Association with:
DSM Environmental Services, Inc.
and
R.S. Lynch & Company

Report
Hunts Point Anaerobic Digestion
Feasibility Study

Prepared for the
New York City Economic Development Corporation
July 2010

Prepared in Association with:
DSM Environmental Services, Inc.
and
R.S. Lynch & Company
This report has been prepared for the use of the client for the specific purposes identified in the
report. The conclusions, observations and recommendations contained herein attributed to
R. W. Beck, Inc. (R. W. Beck) constitute the opinions of R. W. Beck. To the extent that
statements, information and opinions provided by the client or others have been used in the
preparation of this report, R. W. Beck has relied upon the same to be accurate, and for which no
assurances are intended and no representations or warranties are made. R. W. Beck makes no
certification and gives no assurances except as explicitly set forth in this report.
Copyright 2010, R. W. Beck, Inc.
All rights reserved.
Hunts Point Anaerobic Digestion Feasibility Study
New York City Economic Development Corporation
Table of Contents
Table of Contents
List of Tables
List of Figures
Executive Summary ................................................................................................ES-1
Waste Stream Identification and Characterization ..........................................ES-2 
Biogas Production ...........................................................................................ES-3 
Energy Production and Use Options ...............................................................ES-3 
Facility Site ......................................................................................................ES-4 
Regulatory Framework and Permitting ...........................................................ES-5 
Environmental Benefits ...................................................................................ES-6 
Waste Supply and Disposal Costs ...................................................................ES-6 
Waste Processing Area and Digestion System Cost ..............................ES-7 
Environmental Attributes ................................................................................ES-8 
Revenue and Expense Projections ...................................................................ES-8 
Economic Analysis Results .............................................................................ES-9 
Specific Financing Arrangements ...................................................................ES-9 
Sensitivity Analysis .......................................................................................ES-10 
Financial Feasibility ......................................................................................ES-11 
Conclusions ...................................................................................................ES-11 
Section 1 INTRODUCTION .................................................................................... 1-1 
Section 2 WASTE STREAM IDENTIFICATION AND
CHARACTERIZATION .......................................................................................... 2-1 
Fish Market and Produce Market ...................................................................... 2-1 
Fish Market .............................................................................................. 2-1 
Produce Market ........................................................................................ 2-2 
Produce Market Redevelopment .............................................................. 2-5 
Additional Food Distribution Center Drive Tenants ......................................... 2-5 
Baldor Specialty Foods, Inc. .................................................................... 2-5 
Meat Market ............................................................................................. 2-6 
All Other Food Distribution Center Businesses ....................................... 2-7 
Additional Organic Waste Generated on Hunts Point Peninsula ...................... 2-8 
Telephone Surveys of Potential Organic Waste Generators on the
Hunts Point Peninsula .................................................................. 2-8
Table of Contents
Sanitation Salvage Estimate of Organic Waste Generation from
Hunts Point Food Distribution Companies Beyond FDC
Drive ............................................................................................ 2-9 
Composition of Organic Rich Loads from Food Production and
Distribution Companies Beyond FDC Drive ............................... 2-9 
Variations in Generation ........................................................................ 2-10 
Organic Rich Loads from the Metropolitan Transfer Station ......................... 2-11 
Summary of Organic Rich Waste Generation on the Hunts Point
Peninsula ................................................................................................ 2-12 
Section 3 ENERGY PRODUCTION ....................................................................... 3-1 
Biogas Generation ............................................................................................. 3-1 
Energy Production and Use Options ................................................................. 3-2 
Biogas within the FDC ............................................................................ 3-2 
Biogas Sale into an Existing Natural Gas Pipeline .................................. 3-3 
Steam for Use within the FDC ................................................................. 3-4 
Electricity within the FDC Using Reciprocating Engines ....................... 3-4 
Electricity to the Grid Using Reciprocating Engines .............................. 3-5 
Electricity within the FDC Using Gas Turbines ...................................... 3-5 
Electricity to the Grid Using Gas Turbines ............................................. 3-5 
Biofuel Production and Sale as a Vehicle Fuel ....................................... 3-6 
Scenario Screening .................................................................................. 3-6 
Viability and Strength of the Associated Energy Market ........................ 3-6 
Potential Environmental Impacts ............................................................. 3-7 
Regulatory and Institutional Hurdles ....................................................... 3-7 
Technical Complexity and Degree of Commercialization ...................... 3-8 
Likelihood of Being the Low Cost Option .............................................. 3-9 
Screening Analysis Summary .................................................................. 3-9 
Biogas Sale into an Existing Natural Gas Pipeline ................................ 3-13 
Electricity to the Grid Using Reciprocating Engines ............................ 3-14 
Biofuel Sale as a Vehicle Fuel ............................................................... 3-14 
Section 4 SITE PREPARATION ............................................................................. 4-1 
Interconnections and Site Appropriateness ....................................................... 4-3 
Site Development Issues ................................................................................... 4-4 
Extraordinary Costs ........................................................................................... 4-5 
Waterfront Protection and Flood Mitigation ..................................................... 4-6 
Effects of Planned Remediation Upon Site Development Costs ..................... 4-7 
Cost Estimates ................................................................................................... 4-7 
Section 5 REGULATORY FRAMEWORK AND PERMITTING ...................... 5-1 
Introduction ....................................................................................................... 5-1 
City Level Environmental Permits .................................................................... 5-1 
City Environmental Quality Review ....................................................... 5-1 
City Level Solid Waste Permit ................................................................ 5-3 
City Level Air Permit .............................................................................. 5-3 
iv R. W. Beck
Table of Contents
City Level Noise Permit........................................................................... 5-3 
City Level Wastewater Permit ................................................................. 5-4 
State Level Environmental Permits ................................................................... 5-5 
Uniform Procedures Act .......................................................................... 5-5 
State Environmental Quality Review ....................................................... 5-5 
State Part 360 Solid Waste Permit ........................................................... 5-6 
State Air Permits ...................................................................................... 5-6 
State Environmental Justice and Permitting ............................................ 5-7 
State Pollution Discharge Elimination System Permit ...................................... 5-8 
Multi-Sector General Permit for Stormwater Discharges
Associated with Industrial Activities ........................................... 5-8 
General Permit for Stormwater Discharges from Municipal
Separate Storm Sewer Systems .................................................... 5-9 
General Permit for Stormwater Discharges from Construction
Activities .................................................................................... 5-10 
National Environmental Policy Act ....................................................... 5-10 
Section 6 ENVIRONMENTAL BENEFITS ........................................................... 6-1 
Introduction ....................................................................................................... 6-1 
Reduced Truck Traffic ...................................................................................... 6-1 
Produces Renewable Energy ............................................................................. 6-1 
Reduced Air Emissions ..................................................................................... 6-2 
Conserve Landfill Space .................................................................................... 6-2 
Produces Soil Amendment ................................................................................ 6-2 
Section 7 FINANCIAL FEASIBILITY ................................................................... 7-1 
Background ........................................................................................................ 7-1 
Interviews with Potential Waste Suppliers ........................................................ 7-1 
Produce Market ........................................................................................ 7-2 
Meat Market ............................................................................................. 7-3 
Fish Market .............................................................................................. 7-4 
Current and Projected Tipping Fees .................................................................. 7-4 
Projected Future Tipping Fees ................................................................. 7-5 
Assuring a Waste Stream to the AD Facility ..................................................... 7-6 
Infrastructure Costs ........................................................................................... 7-7 
AD Facility Cost Estimates ...................................................................... 7-7 
Development Costs .................................................................................. 7-8 
Extraordinary Site Costs .......................................................................... 7-8 
Waste Processing Area and Digestion System Cost ................................ 7-8 
Environmental Attributes and Tax Credits ...................................................... 7-11 
Revenue and Expense Projections ................................................................... 7-12 
Assumptions ........................................................................................... 7-12 
Operating Parameters ...................................................................................... 7-15 
Revenue Estimates ........................................................................................... 7-18 
Expense Estimates ........................................................................................... 7-19 
Net Cash Flow ................................................................................................. 7-20 
Economic Analysis Results ............................................................................. 7-22 
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Table of Contents
Other Potential Options ................................................................................... 7-23 
Specific Financing Arrangements ................................................................... 7-23 
Sensitivity Analysis ......................................................................................... 7-25 
7.2  Financial Feasibility ............................................................................... 7-29 
Section 8 CONCLUSIONS ....................................................................................... 8-1 

vi R. W. Beck
Table of Contents
List of Tables
Table 2-1 Food Distribution Waste Generated Beyond FDC Drive ......................... 2-10 
Table 2-2 Summary of Organic Rich Waste on the Hunts Point Peninsula.............. 2-13 
Table 7-1 Capital Costs ............................................................................................. 7-11 
Table 7-2 Applicability of Financing Features ......................................................... 7-12 
Table 7-3 General Assumptions ................................................................................ 7-12 
Table 7-4 Cost and Price Assumptions in 2009 ........................................................ 7-14 
Table 7-5 Future Year Cost and Price Assumptions ................................................. 7-15 
Table 7-6 AD Operating Parameters ......................................................................... 7-16 
Table 7-7 Electricity Production Operating Parameters ........................................... 7-16 
Table 7-8 Biomethane Production Operating Parameters ......................................... 7-17 
Table 7-9 Vehicle Fuel Production Operating Parameters ....................................... 7-17 
Table 7-10 Electricity Production – Pro Forma Summary ........................................ 7-20 
Table 7-11 Biomethane Production - Pro Forma Summary...................................... 7-21 
Table 7-12 Vehicle Fuel Production - Pro Forma Summary .................................... 7-22 
Table 7-13 Summary of Results ................................................................................ 7-25 
Table 7-14 Sensitivity Analysis – AD System Capital Cost ..................................... 7-26 
Table 7-15 Sensitivity Analysis – Operating Cost Factor ......................................... 7-26 
Table 7-16 Sensitivity Analysis – Tip Fee ................................................................ 7-26 
Table 7-17 Sensitivity Analysis – Tip Fee Escalation .............................................. 7-26 
Table 7-18 Sensitivity Analysis – Extraordinary Site Development Costs .............. 7-27 
Table 7-19 Sensitivity Analysis – Electric Power Price Factor ................................ 7-27 
Table 7-20 Sensitivity Analysis – Natural Gas Price Factor .................................... 7-27 
Table 7-21 Sensitivity Analysis – NYSERDA Assistance ....................................... 7-27 
Table 7-22 Sensitivity Analysis – Soil Amendment Price ........................................ 7-28 
Table 7-23 Sensitivity Analysis – Recovered Materials Price .................................. 7-28 

List of Figures
Figure ES-1. Hunts Point Site Map ..........................................................................ES-5 
Figure 2-1. Produce Market, Dock Waste Composition, C. 2005 ............................. 2-3 
Figure 2-2. Produce Market, Dock Waste Composition, June 11, 2009 .................... 2-3 
Figure 2-3. Produce Market, Common Area Waste, C. 2005 .................................... 2-4 
Figure 2-4. Produce Market, Common Area Waste, June 18, 2009 .......................... 2-4 
Figure 2-5. Meat Market Common Area Waste......................................................... 2-7 
Figure 2-6. Composition of Food Distribution Waste Generated Beyond
FDC Drive ...................................................................................................... 2-10 
Figure 2-7. Organic Rich Restaurant Load, June 10, 2009 ...................................... 2-12 
Figure 4-1. Hunts Point Site Map .............................................................................. 4-2 

R. W. Beck vii