Upgrading Biogas to Pipeline Quality

Upgrading Biogas to Pipeline Quality -Technology Choices, Economics & Operating ExperienceSean MezeiQuestAir Technologies3 April 2008

O V E R V I E WAgenda1. QuestAir Overview2. Biogas Upgrading3. QuestAir PSA for biogas upgrading4. Commercial Installations5. Case Study: Scenic View Dairy6. Conclusions

O V E R V I E WIntroduction• Vancouver-based, 65 employees• Developer & manufacturer of PSA gas purification systems• Publicly traded company – “QAR” on TSX and AIM• Markets:− Biogas upgrading− Industrial hydrogen− Hydrogen for oil refining• Over 110 PSA systems sold worldwide ⇒ 9 biogas projects• Market leading partners & investors:

B I O G A S U P G R A D I N GBiogas-to-Energy MarketHeatORSteamAnaerobic DigesterBiogasRenewablePower&HeatLandfillBiomethaneORCNG vehiclefuel

B I O G A S U P G R A D I N GWhy upgrade biogas?Disadvantages of Power Gen• High efficiency CHP limited bydemand for heat on-site• Low power prices in somejurisdictions• Connection fees to theelectricity girdAdvantages of upgrading• Favorable economics at highnatural gas prices• Access to gas grid allows forcentralized high efficiency CHP• Price premium for renewablenatural gas• Production of high value-addrenewable CNG vehicle fuel

P S A T E C H N O L O G YPSA Technology for Biogas UpgradingCH 4CH 4 PurgeHighPressureAdsorbentBedsLowPressureQuestAir M-3200CH 4 , CO 2 ,H 2 OCO 2 , H 2 O

Q U E S T A I R ‘ S P S ACore Technology AdvantagesRotary Valves• Single set of rotary valves replacemultiple switching valves• Faster cycle speed, simplifiedpiping, easy to control• High reliability: over 300,000 hoursof commercial operation withoutfailure• Reduced maintenance

Q U E S T A I R ‘ S P S ACore Technology Advantages (cont’d)Rapid PSA Cycle• Enables high adsorbent productivity• Smaller vessels, skid mounteddesign• Lower Capital cost• Faster & lower cost installation

Q U E S T A I R ‘ S P S AProduct Range – Biogas UpgradingPressure(psig)150 300 450M-3300 M-3200 M-3100 M-320010301002501,0003,00010,000Product Capacity (Nm3/h)

U P G R A D I N G T E C H N O L O G I E STechnology ComparisonWater Wash Membrane ChemicalSolventConventionalPSAQuestAirPSAProven in Biogas + - + + +Low Capital Cost - + - - +Low Operating Cost - - - + +Low MaintenanceCost- - + + +Low CH4 Emissions - + + + +Simplicity - + - - +

U P G R A D I N G E C O N O M I C SEconomics of Biogas Upgrading• Case Study – large ‘community digester’ in British Columbia• Economics of biogas upgrading to Terasen pipeline spec.• Investigated 1-stage & 2-stage PSA solutions• Biogas Feed:− ~12,000 NCMH (~7,400 scfm)− 68% CH4• Financial Assumptions:− 15 year equipment life− 10% cost of capital− $9/GJ sales price (‘green’ premium of ~$2 over currentcommodity price in BC)− $0.04/kWh electricity price (for compression)• Economic Metrics:− Biogas upgrading cost ($/GJ product gas)− Incremental profitability of higher CH4 recovery

U P G R A D I N G E C O N O M I C SEconomics - Costs of Upgrading$1.40$1.20$1.00Biogas Upgrading Cost($/GJ Product Gas)$0.80$0.60$0.40Operating & MaintenanceUtilities & ConsumablesElectricityCapital Charge$0.20$0.00One stage PSATwo stage PSA

U P G R A D I N G E C O N O M I C SEconomics – Benefits of 2-stage PSA system$2,500,000IncremenalRevenue$2,000,000IncremenalProfitability$1,500,000$/annum$1,000,000$500,000$0‐$500,000‐$1,000,000IncremenalOperating Cost

C O M M E R C I A L P R O J E C T SQuestAir Biogas ProjectsProject Location BiomethaneFeed Flow(Nm3/h)End-UseProductPurityScenic View Dairy Michigan, US 225 Pipeline 98%Rumpke Landfill Ohio, US 6,000-7,000 Pipeline 96%Widnau Switzerland 200 Pipeline 96%Lavigny Farm Switzerland 120 Pipeline 96%Bison Energy Iowa, US 19,000+ Pipeline 97%UNH New Hampshire, US 9,000-10,000 Turbine 85%SKS Austria 40 CNG 94%Swiss Farmer Switzerland 225 Pipeline 96%STEP Switzerland 250 Pipeline 96%

C A S E S T U D YCase Study – Scenic View DairyLocation:Developer:Biomass Feed:Raw Biogas:Michigan, USPhase 3 RenewablesManure (5,000 cows) &biodiesel plant waste60% CH4225 Nm3/hBiomethane Product: 96+% CH4Pipeline Customer:Michigan Gas Utilities(MGU)

C A S E S T U D YScenic View Dairy – Simplified Flowsheet96+% CH4Product toPipelineAnaerobicDigesterH2SRemovalCompressorCooler &Liquid WaterKnock-OutQuestAirM-3200 PSABurner & HotWater BoilerVacuumPumpCO2 to Atmosphere(Zero Methane Emissions)

C A S E S T U D YScenic View Dairy – Operating DataSample 1 Sample 2 Sample 3 MGU SpecificationCH4 97.4% 96.9% 97.0%CO2 0.1% 0.9% 0.7%

C O M M E R C I A L P R O J E C T SOther QuestAir ProjectsCity of Salzburg (Austria):• First “bio-CNG” project• Digestion of agricultural waste• Bio-CNG to fuel City to Salzburg bus fleetSwiss Farmer Power (Switzerland):• Award winning multi-farmer project• Digestion of agricultural waste• Biomethane to grid ⇒ end use as CNG fuelBison Energy (Iowa, US):• Biogas Regional Anaerobic Digester "BRAD"• Largest biomethane project in the US• Several parallel PSA systems

C O N C L U S I O N SConclusions• Strong drivers for upgrading of biogas ⇒ Europe, US:− Pipeline grade biomethane− ‘Bio-CNG’ vehicle fuel• QuestAir’s PSA for CO2 removal:− Rotary valve technology & rapid PSA cycles− Compact, reliable, low cost of ownership− Solution for full capacity range from 20-10,000+ Nm3/h• Commercial installations:− Europe, US− Demonstrated performance in commercial operation

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