AD IN QUEBEC: UPDATE AND DEVELOPMENT POSSIBILITIES Elise Villeneuve, ing., MBA Chief Operating Officer Bio-Terre Systems Inc. Canadian Waste Sector symposium November 19, 2013 1
BIO-TERRE SYSTEMS Canadian Anaerobic Digestion Technology provider since 1998 Psychrophilic batch system high methane production & increased tolerance 2
Elected Vice President of waste sector (2 nd term) Mission: promote best practices and innovation in the environmental sector 2 400 members (44% private, 22% public, 34% municipal) Events, training, regulation review (30-50 committees), www.reseau-environnement.com @reseau-envt reseauenvironnement 3
PTMOBC Program for processing organic matter by anaerobic digestion and composting Part of the 2006-2012 Action Plan on Climate Change (PACC) (measure 15), which aims to reduce GHG emissions and adaptation to climate change Investment planned : 650 M$ (170 M$ federal - 187 M$ provincial) First announced in November 2009 (2009-2012) Reviewed in July 2012 and extended to December 2017 Grant of 66.6%* for Municipal and 25%* for Private *125 $/t annual biosolids & 800 $/t annual organics Biogas must replace a fossil fuel Digestate must be recycled 4
PTMOBC Program for processing organic matter by anaerobic digestion and composting Main focus : source separated organics Context in Quebec for organics: Banning organics in landfill for 2020 Objective of recycling 60% of organics 4 projects confirmed (with PTMOBC letter of intent ) SÉMER de Rivière-du-Loup (2010) 27M$ (detailed engineering) St-Hyacinthe (2012) phase II 47M$ (construction started) Régie d assainissement des eaux de la Vallée-du-Richelieu (RAEVR) 12M$ - (in planning) Régie d assainissement des eaux du bassin de La Prairie (RAEBL) - 15M$ - (in planning) 5
SÉMER Rivière-du-Loup /compostage (26 000 tonnes) 27,2 M$ Bas Saint-Laurent Résidus verts Résidus verts et alimentaires et/ou digestats Autres résidus Consulter le site WEB Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 6
St-Hyacinthe compostage (215 200 t) 47,3 M$ RAEVR (26 000 t) 11,9 M$ Résidus verts Résidus verts et alimentaires et/ou digestats Autres résidus Montérégie RAEBL (110 500 t) 15 M$ Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 7
PTMOBC Program for processing organic matter by anaerobic digestion and composting 4 projects confirmed (with PTMOBC letter of intent ) SÉMER de Rivière-du-Loup (2010) 27M$ (detailed engineering) St-Hyacinthe (2012) phase II 47M$ (construction started) Régie d assainissement des eaux de la Vallée-du-Richelieu (RAEVR) 12M$ - (in planning) Régie d assainissement des eaux du bassin de La Prairie (RAEBL) - 15M$ - (in planning) 6 projects in planning - not yet confirmed Québec, Montréal(2), Laval, Longueuil et Couronne sud de Montréal 8
RIVMO compostage (30 000 t) SÉMECS compostage (40 000 t) St-Hyacinthe compostage (215 200 t) 47,3 M$ RAEVR (26 000 t) 11,9 M$ Longueuil compostage (70 000 t) Résidus verts Résidus verts et alimentaires et/ou digestats Autres résidus Montérégie RAEBL (110 500 t) 15 M$ Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 9
Québec Québec (85 000 tonnes) Résidus verts Résidus verts et alimentaires et/ou digestats Autres résidus Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 10
Montréal Est (60 000 t) Montréal Résidus verts Résidus verts et alimentaires et/ou digestats Consulter le site WEB Montréal Sud (60 000 t) Autres résidus Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 11
Laval (92 000 t) Résidus verts Laval Résidus verts et alimentaires et/ou digestats Autres résidus Consulter le site WEB Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 12
PTMOBC Program for processing organic matter by anaerobic digestion and composting 4 projects confirmed (with PTMOBC letter of intent ) SÉMER de Rivière-du-Loup (2010) 27M$ (detailed engineering) St-Hyacinthe (2012) phase II 47M$ (construction started) Régie d assainissement des eaux de la Vallée-du-Richelieu (RAEVR) 12M$ - (in planning) Régie d assainissement des eaux du bassin de La Prairie (RAEBL) - 15M$ - (in planning) 6 projects in planning - not yet confirmed Québec, Montréal, Laval, Longueuil et Couronne sud de Montréal 3 or 4 more in discussion 13
MRC Haut-Saint-François et Sherbrooke (> 40 000 t) Estrie Résidus verts Résidus verts et alimentaires et/ou digestats Autres résidus Consulter le site WEB Magog (PPP) (13 000 t) Résidus Site existant alimentaires Biosolides municipaux Sites existant Sites planifié 14
PTMOBC Program for processing organic matter by anaerobic digestion and composting 4 projects confirmed (with PTMOBC letter of intent ) SÉMER de Rivière-du-Loup (2010) 27M$ (detailed engineering) St-Hyacinthe (2012) phase II 47M$ (construction started) Régie d assainissement des eaux de la Vallée-du-Richelieu (RAEVR) 12M$ - (in planning) Régie d assainissement des eaux du bassin de La Prairie (RAEBL) - 15M$ - (in planning) 6 projects in planning - not yet confirmed Québec, Montréal, Laval, Longueuil et Couronne sud de Montréal 3 or 4 more in discussion Private projects? 15
Trouble in paradise? Main conclusions of the IREC* note Du flou dans les calculs, de l eau dans le gaz * Gas contribution potential from the program is negligible (<1%) Gas revenues are low or inexistent no existing market for biogas in Quebec Grant program is so high that it risks creating white elephants Solution is more expensive than the next alternative (composting) Digestate must be composted or land spread after all Limitation of the evaluation GHG objective of the program not considered Data not validated, based on available information Every situation is a case by case, cost may include transport, sourcing the organic, comparison basis varies, etc. * Institut de recherche en économie contemporaine (IREC), October 2013 16
Best AD projects examples Quality and volume of organic influent Problem: Food waste is difficult to harvest and quality is highly variable Wastewater treatment plant + organics Agrifood industry («in the fence») Farm based projects co-digestion Biogas market Problem: no incentives Sites with direct energy requirements (direct heat) Close to a gas line Projects with a LNG or CNG fleet Reasonable outcome for digestate Problem: 98% of what comes in comes out Projects in a rural area for direct land spreading Farm based projects with co-digestion 17
Development possibilities Without incentives for producing renewable energy, there will not be a large AD industry in Quebec Because of the PTMOBC, there will be a few large municipal projects, mainly those digesting biosolids and SSOs Possibly a few industrial projects (agrifood industry) Potential for rural municipalities and industries partnering with agriculture : Farm based co-digestion projects Opportunity to look into innovative ideas such as Sending organics back to the sewers 18
Merci! Elise Villeneuve evilleneuve@bioterre.com 514-606-8455 References : MDDEFP: http://www.mddep.gouv.qc.ca/programmes/biomethanisation/liste-projets.htm Presentation from Sophie Taillefer, RECYC-QUÉBEC, Colloque des Matières résiduelles, October 2013 Institut de recherche en économie contemporaine: Du flou dans les calculs, de l eau dans le gaz, October 2013 -http://www.irec.net/upload/file/noterecherchedechetsorganiquesoct2013.pdf 19