Expression of Interest - for Biogas/Biomethane Production to Supply Renewable Natural Gas - BiogasWorld
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Expression of Interest
for Biogas/Biomethane Production to Supply
Renewable Natural Gas
Issue date: June 29, 2018
Application deadline: July 30, 2018 by 4:30 p.m. (Pacific Time)
RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
CONTENTS
CONTENTS ..................................................................................................................................................... 1
BACKGROUND ............................................................................................................................................... 2
PURPOSE OF THIS RFEOI ............................................................................................................................... 2
INVITATION TO SUBMIT AN EXPRESSION OF INTEREST................................................................................ 2
TYPES OF PROJECTS AND WHO MAY BE INTERESTED .................................................................................. 3
SUPPLY MODELS ........................................................................................................................................... 4
INFORMATION/Q&A SESSION....................................................................................................................... 5
RFEOI PROCESS ............................................................................................................................................. 5
SUBMISSION REQUIREMENTS....................................................................................................................... 7
COSTS ............................................................................................................................................................ 8
OWNERSHIP .................................................................................................................................................. 8
REVIEW OF APPLICATIONS ............................................................................................................................ 9
FUTURE INTEREST ......................................................................................................................................... 9
FURTHER INFORMATION ............................................................................................................................ 10
QUESTIONS ................................................................................................................................................. 10
APPENDICES ................................................................................................................................................ 11
Appendix 1. FortisBC Natural Gas Service Territory ............................................................................... 11
Appendix 2: Biomethane Acceptance Specification ............................................................................... 12
1
RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
BACKGROUND
Biogas, created from decomposing organic material, is a clean and renewable energy source
that can be purified into biomethane (also referred to as “Renewable Natural Gas or RNG”) and
is interchangeable with conventional natural gas. Capturing biogas and upgrading it to
biomethane allows this normally wasted energy to be used as a substitute for conventional
natural gas, significantly reducing greenhouse gas (GHG) emissions. Additionally, emissions
are reduced when methane (CH4) is captured and repurposed as biomethane rather than being
released directly in to the atmosphere .1
FortisBC Energy Inc. (“FortisBC”) is one of the first utilities in North America to have an
approved program for the supply and delivery of biomethane to its customers. Currently
FortisBC has five biomethane supply projects online in British Columbia and the RNG program
has grown to over 9,600 voluntary residential and commercial customers.
PURPOSE OF THIS RFEOI
Due to the continued growth and success of the RNG program FortisBC needs additional
biomethane supply to meet customer demand and is actively seeking new supply projects. The
purpose of this Request for Expression of Interest (“RFEOI”) is to identify new and feasible
projects and to create a pathway to move these projects into development.
INVITATION TO SUBMIT AN EXPRESSION OF INTEREST
FortisBC invites submissions of expressions of interest for biogas and biomethane supply to its
RNG program. Interested parties are invited to submit an application outlining their plans and
associated costs for collecting biogas or collecting and upgrading biogas to pipeline quality
biomethane.
Following the Request for Expression of Interest (“RFEOI”) submission deadline, FortisBC will
evaluate projects based on the criteria outlined further in this document. Projects that meet the
initial criteria will then be invited to submit a detailed project proposal. For more details, please
refer to the RFEOI Process Section.
This RFEOI is open to both private and public sector respondents (each, a “Respondent”), and
FortisBC encourages a broad range of responses encompassing different sources of supply
from within British Columbia.
Sources outside of British Columbia, but within Canada and the United States, will also be
considered. These sources of biomethane will be subject to additional requirements. The
evaluation criteria will give preference to sources of supply within BC, followed by sources within
Canada and then sources from the US. It will be the responsibility of the Respondent to credibly
demonstrate its ability to supply biomethane and deliver it to the FortisBC system.
1As a greenhouse gas, methane has an impact 25 times greater than that of CO2. When burned in the presence of oxygen, methane is broken
down into CO2 and water. See also: https://www.canada.ca/en/environment-climate-change/services/climate-change/greenhouse-gas-
emissions/quantification-guidance/global-warming-potentials.html
2
RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
This RFEOI is an inquiry only to gather information on project feasibility and does not imply a
commitment by FortisBC to proceed with the project or a commitment or offer by FortisBC to
purchase any biogas or biomethane. This RFEOI shall not be considered a request for or an
authorization to perform any work or supply any goods and/or services.
No contractual relationship will arise or be created between any Respondent and FortisBC by
responding to this RFEOI. If FortisBC elects, at its sole discretion, to proceed with a project and
purchase biogas or biomethane, as the case may be, from any Respondent or any other
supplier, such purchase will be undertaken pursuant to the terms and conditions of a written
agreement.
Subsequent to this RFEOI, FortisBC may, but is under no obligation to, enter into discussions,
negotiations and agreements with any one or more Respondents.
Any cost information submitted by Respondents in response to this RFEOI will be used solely
for the purposes of performing a market analysis on a confidential basis.
TYPES OF PROJECTS AND WHO MAY BE INTERESTED
Biogas is produced through anaerobic decomposition of a range of organic material from
sources including landfill sites, wastewater treatment facilities, agricultural waste management
businesses and certain industrial processes. This biogas can then be upgraded or purified to
produce biomethane. FortisBC is interested in applications covering:
wastewater (sewage) treatment biogas recovery – municipalities;
landfill biogas recovery – municipalities and waste management businesses;
biogas from agricultural waste – farm operators or other agricultural businesses;
biogas from industrial or food and beverage process wastes – food and/or beverage
processing businesses and other industries that use or process organic material;
biogas produced from forestry waste products or wastewater; and
other – entrepreneurs who can facilitate the development of biogas production from any
of the above listed or other organic material sources (e.g. large-scale organic waste
collection facilities).
3
RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
SUPPLY MODELS
FortisBC will accept proposals that follow one of the following three supply models:
1. A plan and associated costs for a biogas collection and production facility to be
constructed, owned and operated by the Respondent with FortisBC purchasing the raw
biogas, and then FortisBC owning and operating the necessary facility to upgrade the
biogas to pipeline quality biomethane ready for injection into FortisBC’s natural gas
distribution system.
2. A plan and associated costs for a biogas collection, production and upgrading facility to
be constructed, owned and operated by the Respondent to produce pipeline quality
biomethane having the specifications identified in Appendix 2. FortisBC will provide
metering and injection facilities.
3. A plan and associated costs for a biogas collection, production and upgrading facility to
be constructed, owned and operated by the Respondent to produce pipeline quality
biomethane having the specifications identified in Appendix 2, for injection into a utility
outside of British Columbia. A local utility or natural gas marketer must be able to
notionally deliver the biomethane across a major natural gas distribution network to
FortisBC’s natural gas distribution system.
4RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
INFORMATION/Q&A SESSION
FortisBC will hold an information session to give potential Respondents the opportunity to learn
more about the RNG program and the RFEOI process, followed by a question and answer
period. Any responses to questions are non-binding. Attending this information session is not
mandatory for participation in the RFEOI but may assist Respondents in developing a viable
plan
The information session will be an online, live-streamed webinar from 2:00 p.m. to 4:00 p.m. on
July 10, 2018. Questions received in advance will be answered during the session. If you wish
to attend this session or submit a question, please send an email to
biogasprogram@fortisbc.com. We will then provide login details.
RFEOI PROCESS
Timeline
Note: Dates may be extended or modified at the discretion of FortisBC.
5RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
Process Map
6RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
Application Deadline
Applications in response to this RFEOI must be received by 4:30 p.m. (Pacific Standard Time)
on July 30, 2018. Applications may delivered:
by email to biogasprogram@fortisbc.com (in PDF and/or Microsoft Office software
formats); or
in hard copy format:
FortisBC Operations Centre
16705 Fraser Highway
Surrey, B.C.
V4N 0E8
Attention: Renewal Natural Gas Supply
Please mark all correspondence with the title ‘Biogas RFEOI’.
SUBMISSION REQUIREMENTS
Respondents must submit a completed application which is available by sending an email
request to biogasprogram@fortisbc.com and, to the extent possible, answer every question in
sufficient detail to enable FortisBC to review and assess the information. FortisBC will accept
and review additional documentation submitted in support of your application.
Sources of biomethane supply within BC must meet FortisBC’s Biomethane Acceptance
Specification (see Appendix 2). Sources of biomethane outside of BC, the Respondant may be
required to meet injection standards of the utility in control of the proposed local injection
location (see further information below under “Projects Outside of British Columbia”).
FortisBC requires the price and volume estimates submitted in an RFEOI application to be as
accurate as possible and requires the accuracy level be identified.
Further review of the following requirements will be part of the post RFEOI submission activities;
however, providing any information you are aware of at this time will expedite the review
process:
Permit requirements – identify and explain any permits you are aware will be required
and if you have begun the permit application process;
Funding sources – identify any funding amounts and sources you believe your project is
eligible for and where you are in the process of applying for or receiving that funding;
Feedstock security – identify where your feedstock will come from and how secure and
consistent that supply will be; and
Carbon reductions – calculate and identify the expected carbon reductions that will result
from the project if sufficient information is available to make that determination.
Green Attributes/Carbon Credits
FortisBC intends to acquire the environmental attributes or carbon credits associated with the
supply projects. If a Respondent wishes to retain these attributes, this must be clearly identified
in the Application and reflected in proposed pricing.
7RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
Exclusivity
Respondents are asked to indicate whether they intend to supply biomethane exclusively to
FortisBC.
Projects Outside of British Columbia
For supply from outside of British Columbia, include details on the notional delivery of
biomethane to FortisBC, including, but not limited to, the following information:
Local utility used for biomethane injection
Biomethane quality at injection point
Daily volumes
Major pipelines used for notional delivery including major trading hubs
Natural Gas Marketer used for notional delivery (if applicable)
FortisBC requires the biomethane point of delivery to occur at its Huntingdon Trading Hub.
Please refer to Appendix 1 for location. FortisBC may consider other hubs on a case-by-case
basis.
COSTS
Respondents are solely responsible and without recourse to FortisBC for their own expenses in
preparing and submitting an Application, including but not limited to, attending any meetings
with FortisBC and providing any additional information that may be requested by FortisBC.
It is a fundamental condition of this RFEOI that FortisBC and its affiliated companies, and their
respective officers, employees, consultants and agents, shall not under any circumstances,
including pursuant to contract, tort, statutory duty, law, equity or otherwise, or any actual or
implied duty of fairness, be responsible or liable for any costs, expenses, loss of opportunities,
claims, losses, damages or any other liabilities to anyone, including to any Respondent arising
out of or related in any way to this RFEOI, including the preparation and submission of an
application, attendance at any information meetings; or the amendment, cancellation,
suspension or termination of this RFEOI. By submitting an Application, Respondents shall be
deemed to have accepted and agreed to the foregoing.
OWNERSHIP
Unless FortisBC otherwise agrees in writing, FortisBC shall be entitled to retain and use without
compensation to any Respondent, any information submitted by a Respondent in response to
this RFEOI, including but not limited to, any concept, element or FortisBC idea (including
financial or ownership structures or schemes) disclosed in or evident from the foregoing or that
may be revealed during any meetings or interviews with Respondents.
If Respondents consider any such information is unique, proprietary, innovative and not
otherwise known by or available to others, prior to disclosing such information, Respondents
must in writing request FortisBC to agree in advance that such information be kept confidential.
If FortisBC does not agree, Respondents should submit that particular information in general
terms only and without revealing the particular aspects of that information considered
confidential by the Respondent.
8RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
REVIEW OF APPLICATIONS
FortisBC will review applications received and may contact Respondents to discuss project
details and get a better understanding of project proposal / potential / viability. An estimated
timeline for the RFEOI and project development processes is detailed in the above RFEOI
Timeline and Application Deadline section of this document. Actual timing will vary depending
on project complexities and Respondent capabilities.
Applications will be evaluated based on the following criteria:
Project volume: How many gigajoules of biogas or biomethane will be produced
annually.
Cost per gigajoule (GJ) of biomethane: This figure represents the levelized cost
(capital expenses, operational expenses, etc.) over the life time of the project, typically
10-20 years.
Speed to market: How quickly the project can be developed once FortisBC has agreed
to purchase the biogas or biomethane.
Ownership of property and feedstock: projects that already have access to a site to
and ownership of feedstock or the ability and reasonableness of the timeframe to
acquire access and ownership.
Location: Preference is for projects that can connect directly to FortisBC’s natural gas
distribution system but projects that are competitive on the other criteria will be
considered.
o In British Columbia, projects will be preferred if they have nearby access to a
FortisBC natural gas distribution system with the capacity to accept biomethane.
o Outside of British Columbia, preference will be based on geographic proximity to
British Columbia with a further preference for Canadian projects.
Respondent suitability: A combination of factors including long-term financial stability,
experience with biogas or similar industries, and technical expertise of the Respondent’s
team.
Technological feasibility: Preference is given for the use of technologies that are
already commercialized. Novel technologies may be considered if technological viability
is proven.
Carbon Intensity: How many kilograms of CO2 equivalent will be produced per
gigajoule of biomethane.
Other environmental or social benefits: additional project elements could include
management of other forms of pollution, partnerships with Indigenous communities, and
implementation of best practice for digestate management.
FUTURE INTEREST
If you are interested in becoming a biogas / biomethane supplier to FortisBC but are not yet in a
position to submit an Application, please send an email to biogasprogram@fortisbc.com to be
kept informed of future opportunities.
9RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
FURTHER INFORMATION
The following information sources provide additional background and information about biogas,
the market potential and FortisBC’s RNG program:
FortisBC Renewable Natural Gas program
FortisBC Suppliers Guide
Canadian Biogas Association – Agricultural Biogas Developer’s Guide
Canadian Biogas Association – Closing the Loop for Municipalities
Biogas upgrading technologies
QUESTIONS
If you have any questions or comments about this RFEOI or the RNG program, please contact
biogasprogram@fortisbc.com.
10RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
APPENDICES
Appendix 1. FortisBC Natural Gas Service Territory
11RFEOI for Biogas/Biomethane Production, June 29, 2018
FortisBC Energy Inc.
Appendix 2: Biomethane Acceptance Specification
The biomethane injected into the FortisBC natural gas distribution system must meet the criteria
in the table below. The pressure requirement for the supply of gas will depend on the location of
the injection point. If biomethane is being injected outside of the FortisBC system, the
requirements of the local utility must be followed.
12You can also read
