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HomeMy WebLinkAboutPP_RNG Facility_Phase_II_ApprovalRenewable Natural Gas NWN Gas Phase II Approval and Project Update Mark Van Eeckhout June 12, 2020 1 Project Summary/Status Northwest Natural Gas Phase II Scope Request Approval of Resolution 20-09 NWN Power to Gas Project Discussion Commission questions? Presentation Summary 2 Project Summary/Status Project working towards goal to reduce/eliminate biogas flaring Agreements to date: Design and Construction Support Services (Kennedy Jenks) May need amending to add additional fees for Construction Support Services. Construction Contract with DSL Builders for the RNG Processing Facility Interconnection Agreement with North West Natural Gas (NWN) Design of Receipt Point Facility – Resolution 19-01 Need to amend agreement to add Phase II Construction – Resolution 20-09 Need Brown Gas Sales Agreement (Commodity Sale) – In Progress Pre-Purchase of BioGas Equipment with Greenlane LLC. Equipment delayed due to supply issues (December 2020) Off-Taker agreement with BlueSource - Resolution 19-15 City of Eugene Permits approved for RNG Processing Facility and in works for Receipt Point Facility 3 RNG Processing Facility MWMC – Kennedy Jenks Consultants/DSL Builders RNG Receipt Point Facility (Include - Piping to River Rd) NWN Gas Internal/Contracted Design Design (Phase I - $397,163) and Construction (Phase II - $1,904,138) funded by MWMC Project NWN/MWMC Project Scope 4 RNG Project Aerial View 5 Rendering of RNG Processing Facility 6 Receipt Point Facility - Portland 7 Request Commission approval of Resolution 20-09 for amendment of contract to NWN Gas Co to add Phase II Construction and necessary project easements. Request Approval of Resolution 20-09 8 NWN Gas Power to Gas: Update MWMC Staff attended a meeting on April 21, 2020 where NWN proposed a Power to Gas Project. Power to Gas technology would use excess electrical power to produce gas. The project would use off peak hydroelectric power to produce hydrogen through electrolysis at an onsite facility (approximately 50,000SF). Hydrogen would then be mixed in a reactor with waste CO2 from the RNG processing (about 40% of the volume) to produce synthetic methane to be fed into the NWN gas system. Synthetic Methane would have brown gas and California/OR LCFS value, but no Renewable Fuels Standard (RFS- RINs) value. There is not an similar operating facility within the United States at this time. NWN and others would provide the capital for the project and the split of revenue would need to be negotiated. 9 Power to Gas Summary 10 Methanation Summary 11 NWN Proposed Site Location 12 NWN Gas Power to Gas: Feedback Staff found this technology fascinating, but believe it best to prove current RNG process prior to looking further into power to gas technology. The power to gas technology utilizing hydrogen is just emerging, and staff thinks it would be suitable for further evaluation once the MWMC’s RNG project is up and running with a year of successful operations. Staff invites Commission feedback and discussion on this matter.   13 Questions ? 14