1. law, govt and politics
2. government
3. heads of state

Prepared By:
Matthew Yonkin, Discipline Leader
Energy & Sustainability Services
Organization of presentation
§  Review the life-cycle of a
biogas-to-energy project
§  Discuss key considerations
throughout project life-cycle
§  Identify approaches to mitigate
project risks
Market Development Summit
May 21, 2015
Project life-cycle
Procurement
and Delivery
Operation and Ownership
+
Technical and Financial Risks Vary Throughout Life-Cycle
Market Development Summit
May 21, 2015
Procurement, financing and project delivery
are separate, but interrelated considerations
Municipal Procurement options:
§  Traditional procurement (General Municipal Law)
§  NYS Energy Law Article 9, Energy Performance Contracts in
Connection with Public Buildings and Facilities
§  NY General Municipal Law § 120-w, Contracts and
Agreements for Solid Waste Management, Collection and
Disposal
§  Land Lease Arrangement
Each procurement op.on (to differing extents) can accommodate financing, delivery, ownership, and opera.ng flexibility. Market Development Summit
May 21, 2015
Project delivery options
Design-­‐Bid-­‐Build (DBB) Construc.on Management at Risk (CM@Risk) “Progressive” Design-­‐Build (GMP) OWNER
OWNER
OWNER
DESIGNER
BUILDER
DESIGNER
CM
DESIGN/BUILDER
Lump Sum Design-­‐Build (LS) Design-­‐Build Operate (DBO) OWNER
OWNER
DESIGN/BUILDER
DESIGN/
BUILDER/
OPERATOR
Key Measures of Project Success
DESIGN/BUILDER
OPERATOR
Opportunity for Owner Collaboration (especially during construction)
Project Schedule
Cost Control (more control = fewer changes, better value)
Quality (including design intent, innovation, installed quality)
Market Development Summit
May 21, 2015
Project delivery options
Design-­‐Bid-­‐Build (DBB) OWNER
DESIGNER
BUILDER
Construc.on Management at Risk (CM@Risk) “Progressive” Design-­‐Build (GMP) OWNER
OWNER
DESIGNER
CM
Lump Sum Design-­‐Build (LS) Design-­‐Build Operate (DBO) OWNER
OWNER
DESIGN/BUILDER
DESIGN/BUILDER
DESIGN/
BUILDER/
OPERATOR
DESIGN/BUILDER
OPERATOR
Key Measures of Project Success
More
Less
Collaboration
Schedule
Market Development Summit
6
May 21, 2015
Cost Control
Quality
Financing options
§  Public financing
§  Private financing
•  By Developer
•  By a Separate Third Party
§  Some combination of public
and private financing
Market Development Summit
May 21, 2015
Ownership and operating options
Public ownership with public operation
Public ownership with service agreements
Public ownership with private operation
Private ownership with private operation
(by developer or third party)
§  Others…
§ 
§ 
§ 
§ 
Market Development Summit
May 21, 2015
Areas of technical consideration
Biogas Cleanup Feedstock Sourcing Feedstock Collec.on Feedstock Processing Diges.on Process Energy/Resource Recovery Digestate Processing Side Stream Treatment WWTP Market Development Summit
May 21, 2015
Biogas utilization options
§  Renewable attributes and available grants/incentives can have a
large affect on the value of recovered energy
§  Based on market pricing, gross value/MMBTU of various end uses is
shown below (varies with market conditions):
•  Electricity generation only:
$10.55/MMBTU
•  Heat only (if fully recovered):
$16.00/MMBTU
•  CHP (if all waste heat is used): $18.55/MMBTU
•  CNG (as gasoline equivalent): $19.35/MMBTU
•  CNG (as diesel equivalent):
$20.43/MMBTU
§  End use flexibility can reduce long-term financial risks due to market
volatility
Market Development Summit
May 21, 2015
Thinking broadly helps ensure
project success
§  Define bounds of the “System” and
determine if there are existing
bottlenecks:
•  Is it more beneficial to fix the bottleneck(s)
or accept as controlling factor(s)
§  Determine if certain wastes would be
better to receive at the proposed
facility than others (technically,
financially, contractually)
§  A fairly simplified solids, energy and
financial “mass balance” of the entire
System provides significant insight
Market Development Summit
May 21, 2015
Risk allocation influences procurement,
delivery, financing, ownership and operation
Risk Owner Contractor Planning -­‐ PermiSng Design – Technology / Performance Construc.on – Cost & Schedule Opera.ons -­‐ Side-­‐Stream Impacts Opera.ons -­‐ Longevity / Reliability Opera.ons -­‐ Environmental Regulatory -­‐ Compliance Economic – Feedstock Availability Economic – Tipping Fees Economic – Energy Values Economic – Opera.ons Cost Financing Risk Market Development Summit
May 21, 2015
Risk allocation influences procurement,
delivery, financing, ownership and operation
Risk Owner Planning -­‐ PermiSng üüü Design – Technology / Performance üüü Construc.on – Cost & Schedule üüü Opera.ons -­‐ Side-­‐Stream Impacts üüü Opera.ons -­‐ Longevity / Reliability üüü Opera.ons -­‐ Environmental üüü Regulatory -­‐ Compliance üüü Economic – Feedstock Availability üüü Economic – Tipping Fees üüü Economic – Energy Values üüü Economic – Opera.ons Cost üüü Financing Risk üüü Contractor Market Development Summit
May 21, 2015
Risk allocation influences procurement,
delivery, financing, ownership and operation
Risk Owner Contractor Planning -­‐ PermiSng üüü Design – Technology / Performance üüü Construc.on – Cost & Schedule üüü Opera.ons -­‐ Side-­‐Stream Impacts üüü Opera.ons -­‐ Longevity / Reliability üüü Opera.ons -­‐ Environmental üüü Regulatory -­‐ Compliance üüü Economic – Feedstock Availability üüü Economic – Tipping Fees üüü Economic – Energy Values üüü Economic – Opera.ons Cost üüü Financing Risk üüü Market Development Summit
May 21, 2015
Risk allocation influences procurement,
delivery, financing, ownership and operation
Risk Owner Contractor üü üü ü üüü üüü ü Opera.ons -­‐ Side-­‐Stream Impacts üü üü Opera.ons -­‐ Longevity / Reliability ü üüü üü üü ü üüü üüü ü Economic – Tipping Fees üü üü Economic – Energy Values üü üü ü üüü üüü ü Planning -­‐ PermiSng Design – Technology / Performance Construc.on – Cost & Schedule Opera.ons -­‐ Environmental Regulatory -­‐ Compliance Economic – Feedstock Availability Economic – Opera.ons Cost Financing Risk Market Development Summit
May 21, 2015
Project goals and risk tolerance influence
financing, delivery, and operating models
Developer Responsibility + -­‐ Owner Control and/or Revenue Poten.al + Market Development Summit
May 21, 2015
Conclusions
§  There are many drivers for biogas to energy projects
§  There is significant interest and support for expanding the
reach and impact of the biogas-to-energy market within NYS
§  Like any project, there are risks throughout the life-cycle of the
project, but they can be effectively mitigated or managed
§  Your specific project goals and objectives influence both the
risks and also the mitigation strategies that can be used
§  There is not “one size fits all” solution for these projects
Know your objec.ves, think broadly, and leverage the resources that are available to support your project Market Development Summit
May 21, 2015
Thanks.
Ma1hew Yonkin, PE, BCEE, CEM, ENV SP T: 518.250.7356 | M: 518.415.2155 Mahhew.Yonkin@Arcadis-­‐us.com Market Development Summit
May 21, 2015