Decisions around how to get the highest value from biogas generated in a digester was very easy when the 1603 stimulus payments were available from the U.S. Treasury; to be eligible for the payment, a project needed to make electricity; SIMPLE! Beyond the value of the electricity, renewable energy credits (RECs) were an environmental attribute that also could be marketed.
After five years of operation for a 1603(1) project, the requirement for making electricity disappears. Higher value options for the biogas have become more readily available. quasar can help you model the economics, design a system, install all the equipment, make needed modifications, and commission the system.
Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG) are products derived from biogas by removing carbon dioxide and other contaminates from the biogas. The technology used for biogas cleaning is more efficient than the technology for making electricity; the best electrical conversion is less than 40% efficient, and the worst gas upgrading technology is better than 90% efficient; generating more than two times the amount of saleable gas units.
Environmental attributes available through the Renewable Fuels Standard and California’s Carbon Reduction program (D3 RINs, D5 RINs, LCFSs) increase the market value of the gas from current wholesale values of about $3.00 per decatherm(2) to more than $20.00 per decatherm. With these incentivized values, converting a plant from electricity production to renewable natural gas may make sense for your plant.
(1) The American Recovery and Reinvestment Tax Act (ARRTA) offered renewable energy project developers cash payments equivalent to 30% of the projects cost basis.
(2) Equal to 1,000,000 BTUs
Contact quasar for more info on RNG value.
Gas Cleaning System
CNG fueling station