BOARD MEETING DATE: March 13, 1998 AGENDA NO. 11
PROPOSAL:
Issue RFP to Develop and Demonstrate Technologies for Cleanup of Landfill Gas (LFG); Conversion of LFG, Methanol or Natural Gas to Hydrogen;: and Installation of a Hydrogen Refueling Network
SYNOPSIS:
Recently, major automakers - including Ford and Daimler Benz - have announced their intention to develop fuel cell vehicles in fairly large numbers before the end of the next decade. Hydrogen has been identified as among the leading fuels to power these vehicles. The intent of the proposed RFP is to develop and demonstrate technologies to build a potential hydrogen production and refueling networkthe I-10 freeway of the Inland Empire. Total AQMD funding for this RFP will be a maximum of $600,000 for technologies for the cleanup of LFG, for hydrogen reforming and purification, and for hydrogen refueling stations.
COMMITTEE:
Technology, February 27, 1998, Recommended for Approval
RECOMMENDED ACTION:
Approve the release of the attached RFP to solicit bids, in an amount not to exceed $600,000 to develop and demonstrate: (1) the cleanup of landfill gases; (2) hydrogen reforming and purification; and (3) hydrogen refueling stations. Multiple awards may be made.
Barry R. Wallerstein, D.Env.
Acting Executive Officer
Background
The deployment of zero-emission technologies, such as hydrogen-powered fuel cells for stationary and mobile source applications, is a key component of the AQMP strategy to meet the region's air quality goals by the year 2010. Ford, Daimler-Benz and Ballard recently announced their intent to introduce polymer membrane (PM) fuel cell vehicles by next decade. Direct hydrogen is a leading candidate fuel for such PM fuel cell vehicles. The use of hydrogen eliminates a range of air pollution emissions including criteria pollutants, toxic pollutants and greenhouse gases. Hydrogen will also eliminate oil spills in groundwater, oceans, and on land--spills frequently associated with conventional fuels such as gasoline and diesel.
Hydrogen production, distribution and storage technologies are well-developed for industrial and space-shuttle applications. To assist hydrogen-powered fuel cell technologies achieve significant penetration in the South Coast Air Basin, the production and supply of hydrogen needs to be further expanded.
Potential supply sources include landfills whose gaseous streams can be cleaned and converted to pure hydrogen. Landfill gases (LFG) are produced when the landfill waste decomposes. LFG primarily contains methane, carbon dioxide, entrapped air, moisture, and trace contaminants. Emissions of greenhouse gases, such as methane and carbon dioxide from LFG, contribute to global warming. Over 100 contaminants identified in LFG, including benzene, toluene, carbon tetrachloride and ethylene dibromide, are associated with adverse health effectsand ethylene dibromide. The Clean Air Act, and AQMD Rule 1150.1, mandate that gas collection systems be installed to collect landfill gases and convey them to a central processing facility. There, the LFG is either flared, converted in a waste-to-energy facility to produce heat or electric energy, or converted to clean fuels such as hydrogen. LFG collection and conversion techniques that add the lowest value (i.e. flaring) are the least expensive, whereas techniques that add the highest value (such as conversion to clean fuels) are among the most expensive.
Currently, there are no reliable cost estimates of manufacturing hydrogen from LFG. One of the objectives of this RFP is to assist in the development of such estimates. At large-scale sizes, it is expected that production cost of hydrogen from LFG will be comparable to the current cost of direct hydrogen, manufactured from natural gas, i.e. $3.12 per kg of hydrogen (if used in fuel cell vehicles) which is equivalent to $1.20 per gallon of gasoline (used in internal combustion engines). [ Source : Directed Technologies, Air Products and Chemicals, BOC Gases, Electrolyzer Co, Praxair, July 1997. "Hydrogen Infrastructure Report." Report prepared for Ford Motor Co., through US DOE, Office of Transportation Technologies. See Figure 10, Page 16 in Section 1, and Page viii (executive summary), Report by Praxair (in Section 5).]
On February 14, 1997, AQMD issued a similar RFP (9697-34) for the cleanup and conversion of LFG into hydrogen. The RFP resulted in one proposal. However, no award was made since the proposal did not adequately address key issues in the RFP.
Proposal
This RFP expands on the previous RFP by seeking demonstration of new categories of technologies, identifying separate proposals for each technology category, encouraging the demonstration of multiple technologies within each category, and providing additional incentives to seek significant cost-sharing.
The RFP proposes to solicit development and demonstration of technologies to:
(A) Cleanup LFG. Innovative technologies are solicited to improve the destruction and removal of particulates, siloxanes, sulfur and organic compounds; minimize air entrapment in the gas collection systems; and improve moisture/condensate removal and treatment.
(B) Hydrogen reformation. Innovative technologies are solicited to convert LFG, methanol or natural gas to synthesis gas (containing carbon monoxide, carbon dioxide and hydrogen); to convert synthesis gas to predominately hydrogen through water-shift reaction; and to purify hydrogen to over 99.99% purity for PM fuel cell applications.
(C) Hydrogen refueling network. A network to assist refueling hydrogen-fueled vehicles will be supported. Currently, there are three sites along the I-10 freeway corridor of the Inland Empire/Coachella valley. This RFP's intent is to encourage the installation of additional refueling sites in the Basin.
The proposed project is included in the September 1997 update of the Technology Advancement Plan for the Clean Fuels Program as proposed projects (a) 97S2-2 , "Production of Clean Fuels from Municipal Solid Waste, Biomass, and Other Waste Fuels," (b) 97M4-3, "Development of a Hydrogen Corridor in Southern California," (c) 97M4-2, "Infrastructure Development to Support Clean Fuel Vehicles," and (d) 97M3-3, "Development and Demonstration of Fuel Cell Technologies for On and Off Road Vehicle Applications."
The primary benefits of this project are expected to occur over the long term. If the proposed technology is successfully demonstrated, this project would advance LFG cleanup technologies; more efficiently destroy the volatile, toxic, and greenhouse components present in LFG; advance the technology of converting LFG into a clean-fuel, hydrogen; improve hydrogen infrastructure by expanding the sources, availability and refueling of hydrogen fuel; integrate the demonstration of various hydrogen technologies; and facilitate the market introduction of zero-emission hydrogen fuel-cell technologies in both stationary and mobile applications.
Outreach
In accordance with the AQMDs consulting and contracting policies, a public notice advertising the RFP and inviting bids will be published in the following publications:
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1. |
Antelope Valley Press |
10. |
La Opinion |
19. |
Precinct Reporter |
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2. |
Black Voice News |
11. |
La Voz |
20. |
Rafu Shimpo |
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3. |
Chinese Daily News |
12. |
Los Angeles Daily News |
21. |
Riverside Press Enterprise |
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4. |
Eastern Group Publications |
13. |
Los Angeles Sentinel |
22. |
San Bernardino Sun |
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5. |
El Chicano |
14. |
Los Angeles Times |
23. |
Santa Clarita Signal |
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6. |
Excelsior, The |
15. |
M/W/DVBE Source |
24. |
State of California Contracts |
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7. |
Inland Empire Hispanic News |
16. |
Orange County Register |
Register |
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8. |
Inland Valley Daily Bulletin |
17. |
Palm Springs Desert Sun | ||
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9. |
Korea Central Daily |
18. |
Philippine News |
Additionally, potential bidders will be notified from the Los Angeles County MTA, and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMDs own electronic listing of certified minority vendors; and AQMD Purchasings mailing list. Copies of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMDs Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMDs bidders 24-hour telephone message line (909) 396-2724.
Bid Evaluation
Proposals received will be evaluated by a panel of technically qualified individuals according to the scoring criteria described in attached RFP #9798-35. Given their importance, the scoring criteria of the RFP in its cost component has been amended to provide additional weight to proposals with multiple technologies per category and substantial cost-sharing.
Resource Impacts
The total amount of AQMD funding for the proposed RFP will not exceed $600,000, for technologies to cleanup LFG, of $400,000 for hydrogen reforming and purification, and for hydrogen refueling stations.
Sufficient funds will be available in the FY 1998-99 Budget, pending Governing Board approval of the Budget, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
Attachments (3,238kb)
RFP #9798-35, Develop and Demonstrate Technologies for Cleanup of Landfill Gas (LFG); Conversion of LFG, Methanol or Natural Gas to Hydrogen: and Installation of a Hydrogen Refueling Network.
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