A Look at the Economics of

Biosolids
Dave Parry, PhD, PEng, BCEE
January 2012

Impacts on Economics

Biomass Tipping
Fees

Biosolids Facility
Footprint

Value of Fertilizer
and Soil
Amendment

Value of Energy
(electricity, heat,
natural gas, vehicle
fuel)

Economics
of
Biosolids

Cost of Biosolids
Processing

Cost of
Sidestream
Treatment

The Economics of Biosolids Involves

Multiple Bottom-Line Objectives

Achieve High Economic Value

provide revenue from resources with
low life cycle costs

Be Operator Friendly provide

healthy and safe environment for
workers, support wastewater
treatment, be reliable and easy to
operate and maintain

Be Environmentally Sustainable
produce green power, reduce
emissions, beneficially use
resources

Be Socially Acceptable be a good

neighbor with acceptable aesthetics,
acoustics, and air quality

Economic
Operational
Environmental
Social

Biosolids Economics is Part of

Resource Recovery Center for Water,
Biosolids, Nutrients, and Energy
Solar and Wind

Fuel

Energy (Heat, Power)

Organic
Waste

Resource Supply
(fuel line)

Fertilizer &
Nutrients

Alias
Wastewater Treatment Plant
Reclaimed Water & Hydrothermal

Biosolids as a Resource
Sludge +
Organic Waste

Biogas
Land
Application

Amendment
Thickening

Dewatering

Anaerobic
Digestion

Soil
Amendment
Fertilizer
Drying

Char

Syngas
Char

Pyrolysis
Gasification

Ash
Dewatering

Incineration with
Energy Recovery

Biosolids Value
$500

Highest
biosolids
value

$400

$/DryTonofBiosolids

$300

CostofProduction
BiosolidsValue
NetCost

$200
$100
$0
$100
$200

Lowest
net cost

$300
$400
$500
SoilAmendment Fertilizer

Combustion

Gasification

Compost

Biosolids and Energy Plan

City of Bellingham, WA

Post Point Wastewater Treatment Plant

Solids Handling Process

Biosolids Alternatives
Digestion

Thickening

Thermo

Digestion

Dewatering

Drying

Gasification

Incineration

Lime

CHP

Drying

Thickening

Thermo

Digestion

Dewatering

Drying

Gasification

Incineration

Lime

CHP

Gasification

Thickening

Thermo

Digestion

Dewatering

Drying

Gasification

Incineration

Lime

CHP

Incineration

Thickening

Thermo

Digestion

Dewatering

Drying

Gasification

Incineration

Lime

CHP

Trucking

Gas
Heat
Electricity

Life Cycle Costs, Carbon Footprint and

Space Footprint Analysis
Projected Capital
Cost

Projected Total
O&M Cost

Carbon Dioxide
Footprint (tons
CO2e/yr)

Space Footprint
(ft2)

Incineration with
Power/Heat Recovery

$32,000,000

$920,000

-700

3,500

Digestion/CHP

$32,000,000

$1,120,000

-1800

22,200

Digestion/Drying/CHP

$38,000,000

$1,300,000

265

23,700

Gasification

$36,000,000

$1,308,000

2,100

5,000

Alternative

VitAG Plant 3-D Interior

Finished Product

Bioenergy Center with Multiple Waste

Feedstocks and Products Tipping fees for waste
receiving is key to
economic viability

Organic Waste (Food

Waste, FOG, Manure)

Biogas
Syngas
Digestion

Biomass
(Wood Waste)

Biochar
Biosolids

Pyrolysis

Dewatering
Syngas
Char
Drying

Gasification

Numerous Biochar Benefits

Soil amendment like Terra

preta (dark earth)
Attracts and holds
moisture, nutrients
(nitrogen and
phosphorous)
Immense surface area
provides secure habitat for
microorganisms
Enhances crop yield
Enriches soil & protects
water

Microscopic view
of biochar surface

Integrated Solutions Has a Significant

Impact on Economics

Food Waste
Disposer

Wastewater Treatment

Food
Waste

Biogas
Biosolids
Anaerobic Digestion

Final Solids
Separation

Materials Recycling
Facility Preliminary Solids
Separation
Amendment

Options for Organic

Waste Management

Compost
Composting Facility
Landfill

Biogas

Cost Comparison of Alternatives

3000
Landfill
Compost
WWTP/Sewers
WWTP/Hauled
Mixed MRF

2720
2500

Normalized Value

2000

1860
1650

1500

1000

1030
698

500

426

860 936

900
593

585

674

723
517

214
0

Capital Cost
(1,000s of dollars)

O&M Cost
(1,000s of dollars/yr)

Present Worth
(10,000s of dollars)

Digestion is a Key Component of

Biosolids Economics
60
40
20

Size
Energy

0
Mesophilic
Anaerobic

-20
-40

Thermophilic
Anaerobic or
Thermal Hydrolysis

Aerobic

-60
AT Aerobic

-80

Aerobic = Energy Consumer

Anaerobic = Energy Producer

Biogas from Anaerobic Digestion

impacts Biosolids Economics

Natural Gas
Pipeline

CO2
Removal

Compressor
CNG Fueled
Vehicles

CHP

Biogas
Treatment

Sludge +
Organic Waste

Heat

Biogas

Digestion

Gas Turbine

Drying
Fuel Cell

Electricity

Biogas Value is Dependent on End Use

40
$ 34/GJ

Gasoline
Gasoline

Assumptions:

20

Gasoline @ $4/gallon
CNG @ $1.85/GGE
Electricity @ $0.10/kWh
CHP @ 35% electric efficiency
CHP @ 40% heat efficiency
Boiler @ 85% efficiency

$/GJ

30

CNG
CNG (Vehicle
(Vehicle Fuel)
Fuel)
CHP
CHP

10

Engine
Engine (Power)
(Power)
Boiler
Boiler (Heat)
(Heat)
Biomethane
Biomethane

$16/GJ
$13/GJ
$10/GJ
$7/GJ
$5/GJ

Flare
Flare

Biomethane Production

South Treatment Plant,

King County, WA

Biomethane is sold to Puget Sound Energy

and fed into natural gas pipeline

Encina WPCF
Biosolids Drying and Biogas Fueled Cogeneration

Four 750 kW Engine-Driven Generators,

Rotary Drum Dryer

Encina Water Pollution Control Facility

Encina Wastewater Authority, Carlsbad, CA

Consider Economics of Entire System

Related to Biosolids

Comprehensive Biogas Treatment and

Cogeneration System
Replaced 200 KW Phosphoric Acid Fuel
Cell with two 800 kW Internal Combustion
Engine-Driven Generators

Columbia Blvd Wastewater

Treatment Plant, Portland, Oregon

Cogeneration Reduced the Purchased

Electricity at the Columbia Blvd WWTP
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Ju
n05
Oc
t-0
5
Fe
b06
Ju
n06
Oc
t-0
Fe 6
b07
Ju
n07
Oc
t-0
Fe 7
b08
Ju
n08
Oc
t-0
Fe 8
b09
Ju
n09

Purchased Electricity, kWh

3,000,000

Adding Grease to Anaerobic Digesters

Increased Biogas and Decreased Biosolids
Production

The City of Riverside, CA saved $1.3 million in one year in

reduced natural gas requirements by feeding their digesters about
33,000 gallons per day of grease. A reduction in biosolids
production of about 25 percent was an additional benefit.

Integrated Wastewater and Solid Waste

Treatment
Des Moines Wastewater
Treatment Plant, Des Moines, IA

Hauled organic wastes account for 40% of the feed

to the anaerobic digesters. Revenue from tipping
fees, selling biogas. Savings on electricity.

Co-Digestion Revenues and Costs

Des Moines Example: Revenue of $2.6 million from processing 190

cubic meters of hauled waste and selling 950,000 cubic meters of
biogas to a neighboring industry

Energy Self-Sufficiency through Organic

Waste Management
East Bay Municipal District,
East San Francisco Bay Area

Organic waste recycling,

anaerobic digestion. FOG,
high strength waste deliveries,
both liquid and solids.

EBMUD Power Produced as a

Percent of Power Demand
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

Food to Fuel Demonstration

Natural Gas
Pipeline

CO2
Removal

Compressor

Biogas
Treatment

Biogas

Food Waste

Digestion

CNG Fueled
Vehicles

Economic Sensitivity to Tipping Fee

Profitable Waste Receiving, Digestion,

Composting, and Biogas Fueled CHP

Roppen Westtirol by thoni

Dry Thermophilic
Anaerobic Digestion

Biogas fueled CHP

Thermophilic Anaerobic Digestion Pilot

Plant for Grocery Store Food Waste

From Solid Waste to Renewable CNG

CR&R Anaerobic Digestion Facility, Perris, CA

Summary

Some of the cost of biosolids processing can be

recovered from the revenue of selling the
recovered resources of biosolids, energy, and
nutrients.
A combination of high tipping fees, recovered
energy value, and biosolids end product value
are necessary to cover the costs of biosolids
processing.
An integrated approach is key to achieving
solutions that meet multiple objectives
Technological advances are driving down the
cost of anaerobic digestion and increasing its
performance

Questions and Answers

Dave Parry
425.519.8322
ParryDL@cdmsmith.com