HomeMy WebLinkAboutRNG Upgrades Presentation 11-8-19Renewable Natural Gas
Project Update
Josh Newman
Luke Werner – KJ
Will Overly – Blue Source
November 8, 2019
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Project context/overview
Schedule update
Financial status - capital cost estimate and expenditures committed
Current RNG market dynamics
Revised financial projection
Discussion/questions/direction
Presentation topics
2
Project Schedule
Key Milestones Reached:
Negotiation of NW Natural agreement
Procurement and negotiation of long lead time biogas upgrading equipment agreement
Review of pre-purchased equipment shop drawing submittals
Procurement and negotiation of biogas sales (offtake) agreement
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Capital Cost Evolution
Key Changes:
Additional site prep/grading necessary for the NW Natural RPF
Move from Air Liquide to Greenlane Biogas for upgrading equipment
Additions/modifications to increase safety/access/reliability, and lower ops costs
Fiberglass reinforced plastic -> stainless steel vessels
Larger manways
Higher quality variable frequency drives (VFDs)
Expansion of RNG building footprint
Larger size and number of Greenlane equipment skids
Additional separation of equipment spaces for improved O&M access and safety
Reduction in potential NW Natural credit for natural gas usage in boiler
Design scope/cost increases
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Project Agreements
(1) Anticipated future amendment for interconnection facility construction cost will bring total to $2,300,000
(2) Anticipated execution date
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Facility Rendering
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RFS market update
Battle of Big Oil vs Big Ag (corn)- continues
D3 Price volatility in 2019 because of exemptions (SRE)
53 SRE eligible out of 133 refiners (10% of capacity)
7% of SREs were awarded in 2018
If EPA sets reasonable targets future prices remain strong
Congress intent for D3 is 10 billion vs actual of 400 mil
Post 2022 RVOs being worked on currently
Congress intent is growth in 2nd & 3rd generation fuels
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RFS market update
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RFS market update
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RFS market update
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RFS market update
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June 2019 Fiscal Projection
Speak to the fact that the six leftmost are extremely low probability.
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November 2019 Fiscal Projection
Low Likelihood
High Likelihood
Speak to the fact that the six leftmost are extremely low probability.
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January 2020 – NW Natural construction agreement
March 2020 – Installation Contractor award
April 2020 – Groundbreaking
Next Steps
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Questions /Discussion/Direction
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November 2019 Fiscal Projection
With SB 98 Utility Pricing
($4,000,000) with SB 98, $13/MMBTU RNG and no RINs/LCFS
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