Garbage to Gasoline: Converting Municipal Solid Waste to Liquid Fuels

.........................................................................................................................................4 INTRODUCTION .................................................................................................................................5 CONVERSION OF MSW TO USEFUL GAS ..............................................................................................7 GASIFICATION .......................................................................................................................................8 CONVERSION OF SYNGAS TO SALABLE PRODUCTS ............................................................................ 10 FISCHER-TROPSCH PROCESS .................................................................................................................... 12 ENERGY REQUIREMENT ......................................................................................................................... 13 LIQUID FUEL PRODUCTS ......................................................................................................................... 13 FINANCIAL ANALYSIS OF A MSW TO LIQUID FUEL PROJECT ............................................................... 14 MODEL METHODOLOGY ........................................................................................................................ 14 PLANT DESIGN ................................................................................................................................................ 15 CAPITAL COSTS ............................................................................................................................................... 18 OPERATING COSTS ........................................................................................................................................... 19 OTHER FINANCIAL PARAMETERS ........................................................................................................................ 20 RESULTS AND SENSITIVITY ANALYSIS ......................................................................................................... 22 BASE CASE ..................................................................................................................................................... 22 FUEL PRICES ................................................................................................................................................... 23 ELECTRICITY PRICES .......................................................................................................................................... 24 TIPPING FEES .................................................................................................................................................. 26 FINANCING OPTIONS ........................................................................................................................................ 27 RELATIVE IMPACT OF MODEL FACTORS IN IRR...................................................................................................... 28 BEYOND THE MODEL ........................................................................................................................ 30 RELATIONSHIP WITH CONVENTIONAL FUEL PRICES ....................................................................................... 30 POLICY IMPLICATIONS ........................................................................................................................... 31 RENEWABLE FUEL STANDARDS (RFS) ........................................................................................................ 31 COMPARISON TO CORN-BASED ETHANOL PRODUCTION ......................................................................................... 32 PRICE COMPETITIVENESS UNDER RFS ................................................................................................................. 33 CLIMATE CHANGE POLICY ....................................................................................................................... 34 FUNDING OPPORTUNITIES ...................................................................................................................... 35 DEPARTMENT OF ENERGY ................................................................................................................................. 35 DEPARTMENT OF AGRICULTURE ......................................................................................................................... 35 DEPARTMENT OF DEFENSE ................................................................................................................................ 36 STATE LEVEL FUNDING ..................................................................................................................................... 36 ENVIRONMENTAL AND HUMAN HEALTH OUTCOMES........................................................................ 37 MSW GASIFICATION VERSUS INCINERATION .............................................................................................. 37 POST-CONVERSION WASTE DISPOSAL ....................................................................................................... 38 REDUCING LANDFILL MASS ..................................................................................................................... 38 CARBON EMISSIONS ............................................................................................................................. 39 CONCLUSION ................................................................................................................................... 40 BIBLIOGRAPHY ................................................................................................................................. 42 APPENDIX A: ALTERNATIVE MSW CONVERSION TECHNOLOGIES ....................................................... 46 ANAEROBIC DIGESTION ......................................................................................................................... 46 OVERVIEW ..................................................................................................................................................... 46 FUTURE DIRECTIONS ........................................................................................................................................ 46 PYROLYSIS .......................................................................................................................................... 47 OVERVIEW ..................................................................................................................................................... 47 FUTURE DIRECTIONS ........................................................................................................................................ 47 ALTERNATIVE SYNTHETIC GAS CONVERSION TECHNOLOGIES ........................................................................... 47 AMMONIA SYNTHESIS ...................................................................................................................................... 47 METHANOL SYNTHESIS ..................................................................................................................................... 48 ETHANOL FERMENTATION ................................................................................................................................. 49 APPENDIX B: COMPANIES CONVERTING SYNGAS TO SALABLE PRODUCTS ......................................... 51 ENERKEM INC. ..................................................................................................................................... 51 INEOS BIO .......................................................................................................................................... 51 RENTECH ............................................................................................................................................ 51 COSKATA INC. ..................................................................................................................................... 52 FULCRUM BIOENERGY ........................................................................................................................... 54 LANZATECH ........................................................................................................................................ 54