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9.1. SR 11-19-2018 EOty1� ,.,�� Request for Action River To Item Number Mayor and City Council 9.1 Agenda Section Meeting Date Prepared by Work Session November 19, 2018 Zack Carlton,Planning Manager Item Description Reviewed by Concept Review: Enerkem Cal Portner, City Administrator Reviewed by Action Requested Receive information and provide the applicant with informal, non-binding feedback. No additional action is needed. Background/Discussion Enerkem has initiated discussions with the city, county, and GRE regarding construction of a waste-to- biofuel facility in the City of Elk River. The applicant's proposal includes acquisition of the RDF facility at 10700 165th Avenue NW and construction of a biorefinery facility adjacent to the sorting operation. The biorefinery converts waste (trash) to renewable methanol, ethanol, and other widely used chemicals. Enerkem operates a similar facility in Edmonton, Canada. The facility will need additional property beyond the current RDF site and would occupy approximately 60-75 acres near the intersection of 165th Avenue and Highway 10. The biorefinery includes a 190 feet tall distillation tower and additional structures between 100 and 120 feet tall. The applicant states that there are no odors from their operations. The project would need numerous reviews, amendments, and approvals from the city and state (MPCA) before operation could begin and the applicant is seeking initial feedback from the City Council regarding possible concerns the city may have prior to submittal of a formal application. Comprehensive Plan The Comprehensive Plan guides the project area in accordance with the FAST study which continues to guide the site for eco-industrial uses. The plan notes that the property affords sweeping views across the agricultural lands from the south and identifies the opportunity for a facility on this site to become a symbol marking the entry to the area and an iconic gateway to "Energy City."Adjacent properties are guided for light industrial uses with an eco-industrial focus. The proposed biorefinery use is considered heavy industrial and changes to the Comprehensive Plan would be needed. Zoning guidance for new heavy industrial uses is generally in the non-sewered areas in the south east corner of the city. The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 Zoning The property is currently zoned I-1 (Light Industrial) and includes a Solid Waste Facility Overlay District. Code states that this area is appropriate for manufacturing,warehousing, and similar industrial uses. The city's zoning code does not support refining in standard or overlay zoning districts and amendments to allow this type of use would be required. Community Aesthetics As noted in the Comprehensive Plan, this site is highly visible from surrounding properties and public roadways and could have an impact on nearby developable parcels. The Specht property is t/4 mile to the southwest and includes approximately 250 acres of developable residential, commercial, and light industrial land, the Youth Athletic Complex is 1 mile to the east along 165th Ave, and the new Twin Lakes Road/Highway 10 intersection will be less than t/ mile to the west. Environmental Additional air quality reviews will need to be completed by the state, and an environmental review will likely be required to understand the full impact of the biorefinery. Additional truck traffic to and from the site may create concerns for residents and businesses. The applicant will also have a presentation prepared for the meeting. Attachments ■ Location Map ■ Applicant's Narrative N:APublic Bodies\Agenda Packets\11-19-2018\Final\x9.1 sr Enerkem Conceptdocx ER75 Op ' 75'#111-2401 5 750~1-110 ;ice 61 A J' � 75-0111 00 75-011 7S-011 X400 01 f A 75 12300 '" 75-01d-120Q, TS-014- 201 � Enerkcm . Eli -�-- Cont view Case Not R I - i eer Enerlfem Wednesday October 31, 2018 ELK River Proposed Biofuels Project Enerkem is pleased to submit this unique and innovative proposal for the construction and operation of an advanced, world-class waste-to-biofuel facility to the City of Elk River. Founded in 2000, Enerkem is the first company in the world to have produced biofuels and renewable chemicals from MSW at full commercial scale, and it is the industry leader in this cutting-edge field. Through its proprietary thermochemical technology, Enerkem transforms household waste into methanol and ethanol in less than five minutes. This innovative technology provides a smart, cost-effective, and sustainable alternative to the waste disposal challenges the Twin Cities region. Enerkem facilities also create high quality green jobs and stimulate local economies. Drawing on its experience and expertise, Enerkem proposes to construct a state-of-the- art waste-to-biofuel facility to process 250,000 short tons of RDF per year produced by the Elk River Resource Processing Plant. Twice the size of Enerkem's facility in Edmonton, Alberta, in terms of RDF processing, the proposed project would ultimately produce 45 to 48 million gallons of cellulosic ethanol per year to be sold into the fuel market as per the United States Renewable Fuel Standard (RFS2). The cellulosic ethanol will be stored in a contained tank farm prior to shipment to blending terminals. The facility will employee a minimum of 48 permanent employees. Enerkem is proposing to locate the biofuels project on 20 to 30 acres of property adjacent to the Great River Energy processing plant, which will require an appropriate zoning of the land. Actual property to be identified based on City's interest in the potential project. The site would be designed to blend attractively with the surrounding landscape, minimizing its visual impact. Access and egress would also be designed to minimize any noise or congestion nuisances caused by trucks serving the gasification plant. Enerkem's proposed plant will operate 24/7 year-round. We expect it to be operational for approximately 330 days each year, with operations curtailed for approximately 35 days annually for routine maintenance and upgrades. 1130 Sherbrooke Street West Suite 1500 Montreal OC H3A 2M8 CANADA www.enerkem.com Enerl(em In addition to its unique, proven technology, Enerkem brings to this project other valuable benefits, including: • A leadership team consisting of some of the industry's most talented, experienced, and innovative experts in waste-to-biofuels technology. • Strong in-house project management and engineering support. • A creative and innovative technical staff that has developed a unique and proven waste-to-biofuels process totally in-house. • A versatile conversion process that makes use of many forms of MSW. • GHG emissions that are more than 60 percent lower than those produced by conventional landfill diversion and gasoline. Enerkem currently has more than 200 employees in the United States, Canada, and Europe. It partners with public and private sector entities worldwide to help create zero- waste solutions that support the circular economy. Enerkem has also been recognized as being one of Canada's top companies for securing private sector investor financing. Page 2 Enerl(em Proposed Project Technology Enerkem proposes a unique and proven game-changing technology that recycles carbon-rich material by converting RDF, as produced at the Great River Energy Resource Processing Plant and other unrecoverable materials into renewable methanol, ethanol, and other widely used chemical intermediates that have applications in everyday products. Enerkem is the first company in the world to produce clean, renewable biomethanol and ethanol from non-recyclable, non-compostable municipal solid waste at full commercial scale. Enerkem's world-first advanced biorefinery facility in Edmonton, Canada, has also received certification from the International Sustainability and Carbon Certification (ISCC), and is the first ever EPA-approved municipal solid waste-to- cellulosic ethanol production plant. Feedstock �'asiflcatiaii cleaning and Cetalyl:icsynthesis p$eperatian canditrorvIq proceSS and product PUFWk&tion Sorlrng,6hreddani�, Conaeri lon of Primary syfngera Conwrelon of ch"cal-grade syrngaa drying(rf required) c*rbon-rich purificaticm into Anal wtowobw prtiruds and feeding r"dwi into iGyftthalc qua PHIMARY S+vKAS SYMBA9 i e woXygen {#� zcst �elld9llnt+7s rei n,arki' I= nggragrtes and e�nnrtrrjcllan rnailrrl�l•: 'Jl�fundsfpa}rid rwaPe — Page 3 Enerkem The Gasification Process The RDF is fed to Enerkem's proprietary bubbling fluidized bed gasification vessel to break down the shredded waste into its constituent molecules, a process called thermal cracking. This gasification reactor evenly distributes a partial oxidation agent (steam and oxygen) upward through a bed of solid particles and uses the resulting gas velocity to create turbulence coupled with rapid mixing that resembles boiling liquid. This same reactor blends the broken-down molecules with steam to produce syngas. Enerkem is the first company to have developed a technology capable of breaking down chemically and structurally dissimilar waste materials and converting them into a pure, chemical-grade, stable, and homogeneous syngas on a commercial scale. The resulting syngas is rich in hydrogen and carbon monoxide, which are key building block molecules used in modern chemical processes. Enerkem is the first company to have developed a technology capable of breaking down chemically and structurally dissimilar waste materials and converting them into a pure, chemical-grade, stable, and homogeneous syngas on a commercial scale. The resulting syngas is rich in hydrogen and carbon monoxide, which are key building block molecules used in modern chemical processes. Cleaning and conditioning the syngas The crude syngas—composed mainly of carbon monoxide, carbon dioxide and hydrogen —is fed into a proprietary syngas-cleaning-and-conditioning process that upgrades it to chemical-grade so it can be refined into liquid fuels and commercial chemicals. Staged thermal reformers increase carbon conversion. Scrubbing and absorption equipment remove impurities. By combining bubbling fluidized bed gasification with our proprietary syngas cleaning- and-conditioning process, Enerkem can control the syngas' purity. (After conditioning, the syngas is as clean as natural gas.) We also can control the gas' hydrogen and carbon monoxide balance to produce liquid fuels and commercial chemicals. Page 4 Enerkem Catalytic Synthesis The final step in Enerkem's proprietary process is the catalytic conversion of the chemical-grade syngas into renewable biofuels and commercial chemicals. At this stage, the syngas is composed mainly of carbon monoxide and hydrogen molecules, the chemicals used to produce liquid methanol and fuel-grade cellulosic ethanol. Enerkem's novel technology uses well-known reactions and available catalysts to produce biofuels from syngas in a process that reduces technological costs and risks. Enerkem also uses a combination of in-process controls and quality analysis to confirm that all of its products, including ethanol, consistently meet industry specifications. Enerkem's biofuels facility is designed to operate continuously, 24 hours a day, 7 days a week, at a throughput of 382 short tons of RDF per day (on a dry basis), or 18 wet short tons per hour for each gasifier installed. Enerkem has the ability to scale its process by installing gasifiers in parallel— 2 gasifiers would be installed in Elk River. Accepted Feedstocks Enerkem will process the RDF that is currently being produced by the Great River Energy Resource Processing plant. It is expected that Enerkem's Elk River facility would accept the same wide variety of feedstock that has been tested and processed in Enerkem's Canadian facilities, and in concordance with acceptable feedstocks for cellulosic ethanol as per the United States Renewable Fuel Standard (RFS 2). Receipt of RDF Enerkem would process the RDF produced and received from the Energy Resource Processing plant transferred via conveyor to the biofuels plant. Enerkem has the capacity to accept and process all of the current RDF volumes managed at the facility. The RDF product will be stored in an enclosed bunker system adjacent to the biofuels plant Products Produced Enerkem produces clean cellulosic ethanol, a renewable, non-toxic, water-soluble and highly biodegradable biofuel. Enerkem sells its low-carbon transportation fuel to Page 5 Enerkem refiners to blend with gasoline to help reduce fossil fuel consumption and produce cleaner, more complete combustion than gasoline alone. Enerkem's process produces what is most commonly known as "second-generation" or "cellulosic" ethanol, which comes from carbon-rich residual biomass. This differentiates it from "first-generation" biofuels, which come from sugar-rich crops like corn. One of ethanol's benefits is its high-octane level. Unleaded gasoline octane ratings range from 87 to 91, while pure ethanol has an octane rating of 113. When used in flex- fuel cars, which can use ethanol blends up to 85 percent, the octane rating reaches as high as 105. Staffing Plan The table below shows a standard staffing plan for an Enerkem facility, including a breakdown of positions, number of full-time equivalents, typical education and experience profiles. The proposed facility will have a minimum of 48 permanent positions. Key positions (among which are management positions) would be trained in an existing commercial facility, as such as the Enerkem Alberta Biofuels facility in Edmonton, to ensure technical knowledge transfer as well as learnings from previous pre-commissioning, commissioning, and ramp-up experience. Proposed Elk River staffing projection =171111111111 Ji MT MTFI TWITT" Plant Manager 1 15 years Chemical or Mechanical Engineering managing a facility Operations Manager 1 10 to 12 years, 3 Engineering degree years in managerial role Maintenance and 1 7 to 10 years, 2 Mechanical Engineering degree Reliability Manager years in managerial role Engineering manager 1 10 to 12 years, at Chemical or Mechanical Engineering least 3 years of Degree managerial experience Page 6 Enerkem Lab manager 1 10 to 12 years, at Bachelor degree in Chemistry least 3 years of managerial experience Plant Accountant 1 5 years Bachelor degree in Accounting, CPA,CA Administrative/Account 1 3 years Vocational diploma (DEP) payable clerk Buyer 1 3 to 5 years Bachelor's degree in Commerce or Administration or Engineering degree Chemical plant 20 3 to 5 years Associate of Applied Science (AAS) operators degree in Process Technology (Tech/vocational school) Process Engineers 3 6 to 8 years Chemical Engineering degree Process Control 2 6 to 8 years Bachelor's Degree in Chemical Engineers Engineering or Computer Process Control Chemical Engineering Health &Safety 1 5—7 years BS degree in engineering, safety Advisor engineering, industrial hygiene, or environmental science Maintenance 10 5 years Red Seal Journeyman Millwright Technicians (Electrical Certification & Instrumentation Technicians, Millwrights) Laborer 1 3 years High School Diploma Lab technicians 3 3 to 5 years Pertinent technical degree Total 48 Page 7