Plasco gets $150 million energy-from-waste commitment
Plasco Energy Group out of Ottawa, Ontario, has raised $35 million from major U.S. fund manager First Reserve Corp., bringing the company’s total funding to date up to $90 million. The rest has been supplied by Black River Asset Management, a subsidiary of Cargill, and Hera Holdings SA of Barcelona, Spain.
More impressive, however, is that Plasco — which uses gasification technology to turn municipal solid waste into synthetic gas — has received a commitment from First Reserve for another $115 million in funding next year. This would bring total financing to about $200 million and, needless to say, brings a strong boost of credibility to the company’s technology.
There are many companies out there offering energy-from-waste systems based on gasification and pyrolysis, but few have been able to meet major funding milestones. Plasco also has the benefit of having pilot plants in operation, including most recently a 100-tonne-a-day facility in Ottawa.
The business model is straight forward. Plasco earns money from a tipping fee, but also gets revenue by using the syngas that results from its process to power a Jenbacher engine that produces electricity. In Ontario, that electricity can be sold into the power grid at 11 cents per kilowatt hour.
All eyes will be on Plasco to see whether its Ottawa plant, which after months of controlled tests begins accepting a regular stream of municipal solid waste in January, will live up to promises in terms of low-emission syngas production. Under the gasification process, all the bad stuff is removed using carbon filters and sent to a toxic landfill. Metals are removed using magnets after the initial material has been shredded.
“A tonne of waste will produce clean synthetic fuel gas, which substitutes for natural gas, 300 litres of potable water, 150 kilograms of clean, inert granular material to replace sand in the production of concrete, and small quantities of industrial salt and fertilizer grade sulphur. There are no air emissions released from the conversion process,” according to the company. I imagine that’s because at this stage it’s a closed-loop process.
The company also claims “zero dioxins and furans and non-detectable levels of mercury” from the exhaust of the Jenbacher engines. “The cost to convert waste … will generally be less than the cost to bury that waste in a landfill,” said Plasco chief Rod Bryden.
If — and it’s a big IF — this technology works as promised, I’m a firm believer that it’s the way to go in terms of handling municipal solid waste that can’t be recycled under existing programs. Small gasification plants in communities means fewer diesel trucks on the road hauling garbage to central landfills, it means fewer emissions and less ground leaching from landfills, and it means low-emission electricity from synthetic gas that replaces dirtier forms of electricity on the grid, such as coal.
Some environmentalists I talk with are firmly opposed to this technology, and I can understand why from a certain perspective — i.e. it encourages consumption in society, rather than reduction, reuse and recycling. In other words, any kind of energy-from-waste facility is a big monster with a big mouth to feed, making it okay for people to generate garbage that feeds this monster.
But when it comes down to it — and given that it works as promised, economically, and is independently proven to work — can we ignore it? Is 100 per cent diversion realistic? Can’t policies and rules be put in place that has energy-from-waste systems complementing — rather than competing against — reduction, reused and recycle programs?
I’ve heard horror stories about communities that were suckered into buying energy-from-waste systems that, after millions invested, never worked. Nasty lawsuits followed, yada, yada, yada. Taxpayers were burned, and this left a bad taste in the mouths of many. Plasco is up against this perception, still alive today, that any energy-from-waste system is a scam, or uneconomical, or a disaster waiting to happen.
Plasco, however, is taking the right approach. Starting slowly with small-scale pilots. Proving the technology works. Raising money from the private sector and sharing risk with the communities it sells to. So far it has conducted itself professionally and with caution. When all is said and done, the real comfort test will come later next year when the plant in Ottawa has several months of regular operation and independent testing under its belt.
Then we can all judge.
Tyler Hamilton is senior energy reporter and columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the cleantech market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper. Tyler can be reached at tyler@cleanbreak.ca
December 5th, 2007 at 10:26 am
This technology seems promising, especially when observing the experience of US firm Startech Environmental Corp. It seems to me that the technology is mature, but is it profitable? Neither Plasco nor Startech mention the extent of electricity consumed in the plant, insinuating only a small percentage exported into the electricity grid. To earn some profit, maximizing electricity production would be crucial, so I too am curious of the “ifs” in commercializing the technology. On the other hand, this type of technology can muster private funding, while nuclear tech still needs taxpayer’s shoulders to keep it floating.
Darklamp
December 11th, 2007 at 2:10 pm
Actually Plasco breaks down the (estimated) economics pretty fully on its website.
From each tonne of waste: 1.4 Mwh energy to the grid, 300 L potable water, 5-10 kg commercial salt, 150 kg construction aggregate, 5 kg sulphur fertilizer.
They also state that an 85-tonne per day plant will generate 5 MW continuous output, of which 4 MW can be put reliably on the grid.
December 17th, 2007 at 9:31 pm
Plasco Energy Group is the best ! They are the company of the future
December 17th, 2007 at 9:33 pm
Yup those Senators are quite good. I believe that the Reskins are going to beat them in the world series though.
December 26th, 2007 at 9:33 am
Did you hear about EUROPLASMA which is also investing a lot in the waste to energy domain also using plasma torch.
They just decided to built a plant in France ( near Bordeaux ) to produce up to 12MW electricity from municipal waste.
They also have accumulated a great deal of experience using plasma torch technology for asbestos destruction in the same location.
Seems to be a very serious competitor in this new domain , just have a look at :
Http://www.europlasma.com
Dany.
January 14th, 2008 at 5:42 pm
You stated that Plasco is receiving .11 cents per kwh. As far as I am aware the Standard Offer is only paying for biomass technologies. Municipal Solid Waste MSW,(which Plasco is processing) is not biomass, therefore, it should not qualify for the .11 cents per kwh.
January 14th, 2008 at 5:45 pm
The 11 cents for biomass is under the province’s standard offer contract for renewables. But the province also created a different clean energy standard offer, which gives 11 cents for co-gen and energy-from-waste projects under 10 megawatts.
January 14th, 2008 at 6:50 pm
EUROPLASMA plans to build its plant in July of 2009. They will be far behind Plasco at that point.
January 14th, 2008 at 6:52 pm
Startech is a joke compared to Plasco.
January 14th, 2008 at 8:44 pm
The CESOP hasn’t started yet. Plasco is not providing heat to any building (not noted on their website as a by product) which is a requirement. I believe Plasco would be selling their electricity at a wholesale fluctuating price to the local LDC. Still not a bad business model
January 14th, 2008 at 8:47 pm
True, CESOP hasn’t started, but neither has Plasco, really. I’m not entirely sure they’ve started selling electricity anywhere, but I imagine they will be soon. It’s business plan, to my understanding, is based on the CESOP 11 cents.
January 14th, 2008 at 9:22 pm
CESOP doesn’t offer .11
January 14th, 2008 at 9:30 pm
Thanks for pointing that out — I stand corrected. It’s 8.1 cents during peak times. I think when the OPA was designing the clean energy SOP that there was hope amongst the Plascos of the world that they would also get 11 cents. Unfortunately that number stuck in my head. Thanks again. My bad.
January 14th, 2008 at 9:48 pm
Yes, we’re one of the Plascos. Waiting for MOE approval for our Pilot plant at the moment
January 14th, 2008 at 9:52 pm
If I didn’t know better I’d say you were a member of the Ontario Alliance for Clean Technology (ACT). Tom Casten? Jose Etcheverry? Now I’m curious…
January 14th, 2008 at 9:59 pm
No. Advanced Conversion Technology
January 14th, 2008 at 10:03 pm
Is that the name of your company or the type of technology you’re using — i.e. referring to gasification or something like that? Any links you can provide?
January 14th, 2008 at 10:07 pm
That’s not the name of the company, just categorizing the technology away from gasification, pyrolysis, incineration, anaerobic digestion, plasma, etc etc etc
January 14th, 2008 at 10:31 pm
If it qualifies as an emerging technology to be profiled as a pilot plant in Ontario, I’ll send you more information then.
January 21st, 2008 at 5:28 pm
Hmm. 1 ton gives 1.4Mwh but 85-tons gives only 5MW? Can you explain your math?
It will take 4MW to run the plant – hmm, if they say 4 it probably is really 50% more – so 6MW needed – means they have to buy 1MW daily.
January 21st, 2008 at 5:55 pm
“As for determining commercial viability, Bryden suggests the tipping fees that Plasco will charge municipalities for accepting their waste would almost always be cheaper than the typical rate — between $50 and $75 a tonne — for dumping garbage in landfill sites. Plasco’s two-year contract with Ottawa cites a tipping fee of $40 a tonne, similar to what the city pays to send its waste to a landfill, but Bryden suggests a $65 fee would be more likely in future contracts. ”
…so that is how Plasco is going to make money on this. Taxpayers’ take cover.
January 24th, 2008 at 2:51 pm
“Taxpayers’ take cover.”
Yes, take cover, the city is about to spend less money on waste management!
February 9th, 2008 at 4:04 pm
Although Europlasma has had plasma technolofy for years, it has no background in the waste conversion business. It’s website description of Turbo Plasma is almost a direct copy of the Plasco Energy patented conversion technology, and was posted not longer after Plasco demonstrated its process in Ottawa.
Unless Europlasma can prove that they actually developed their technology prior to that of Plasco Energy, they may face legal action for patent infringement from Plasco, who has nearly 20 patents protecting its system.
February 9th, 2008 at 4:13 pm
What sort of emissions does your technology produce?
Plasco’s demonstration plan operates under the most stringent emissions requirements ever set forth in a Certificate of Authorization in Canada, and its environmental performance is monitored by a public advisory committee as well as the Ontario Ministry of Environment.
March 8th, 2008 at 9:15 pm
1 tonne of MSW at 16,500 MJ/tonne and 30% moisture yields 1.4 Mwh of net power, according to Plasco Energy. 85 TPD/24 hours per day = 3.54 tonnes per hour. 3.54 tonnes x 1.4 Mwh/tonne = 4.96 MW. This is why the Plasco Trail Road plant should produce 5Mw continuously from Ottawa MSW when operating 24 hours per day at full capacity.
There is no error in Plasco’s math.
April 15th, 2008 at 4:49 am
Does this Plasco Ontario Plant finally provide electricity or does it consume more electricity than it’s own production ?
April 16th, 2008 at 12:51 pm
It produces energy…more than it uses.
April 24th, 2008 at 5:22 am
It seems that start-up is much more difficult than expected , almost no waste traited in March, maintenance issue, ramp-up plan to reconsider …read :
http://www.zerowasteottawa.com/docs/Plasco%20Monthly%20Engs%20Rpt%20(8Apr08)%20DCS.pdf
Rgds,
Dany
April 29th, 2008 at 7:50 am
Another big project of electricity production from municipal waste destroyed by plasma torch in Port Hope ( near Toronto ) with Sunbay Energy Corporation ( using Europlasma technology):
Up to 400 tons of waste treated / day with 20MW electricity power !
read the end of this press article :
http://ns22417.ovh.net/~europlas/assets/files/Press%20Articles/Les_echos_22_04_08.pdf
I Hope this message will not be removed ( as some others ..) since they mentionned PLASCO’s competitors..Please, be fair !!
Dany.
April 29th, 2008 at 8:09 am
If you don’t want it removed then stop spamming this site with company promotions. I’ll leave this one on. Any more will be removed.
April 29th, 2008 at 10:12 am
I’m an individual who is very interseted in green technologies, I’m not doing any promotion for any company..
This is only to communicate and share information on this forum on “green projects”.
Thanks for your understanding.
Dany.
May 12th, 2008 at 4:59 am
For information you can access directly to weekly and monthly reports ( emission, performances..) at :
http://www.zerowasteottawa.com/trailroadperformance/
Note : this is not a spam or an add for any company but a valuable information on this “Waste to Energy” pilot project.
Kind Regards,
Dany ( from PARIS – France )
May 28th, 2008 at 8:11 pm
Interesting that Plasco Energy is the only waste-to-energy plasma conversion company that publishes its environmental performance and monthly engineer’s reports certified by a third party Professional Engineer, warts and all, even though this discloses a substantial amount of proprietary information.
It would indeed be refreshing were such voluntary disclosure the norm in the industry. Unfortunately, this is not so.
June 10th, 2008 at 5:21 am
MAY REPORT :
http://www.zerowasteottawa.com/docs/Plasco%20Monthly%20Engs%20Rpt(5June08).pdf
No miracle , yet !
Dany.
June 13th, 2008 at 12:02 pm
What do you mean by miracle?
June 17th, 2008 at 4:58 am
After 6 months of operation of Trail road facility :
- Still operating at < 10% the expected capacity.
- Still no electricity produced.
The miracle will be when it operates according to the plan, hope it will come soon…
Dany.
June 17th, 2008 at 5:01 am
After 6 months of operation of Trail road facility :
- Still operating at < 10% the expected capacity.
- Still no electricity produced.
The miracle will be when it operates according to the plan, hope it will come soon…
Dany.
August 15th, 2008 at 9:53 am
latest report :
http://www.zerowasteottawa.com/docs/Plasco%20Monthly%20Engs%20Rpt%20(8Aug08)DCS.pdf
Less than 30 % of the expected capacity ( 75 T / day ) for waste processed in July , and still no information on electricity production.
Hi Plasco’s !!
- Do you have some news on thelatest point and do you know the quantity of electricity is produced from there to the grid ?
Chhers,
Dany
August 15th, 2008 at 1:54 pm
I got the answer to my previous question :
Read :
http://www.bclocalnews.com/tri_city_maple_ridge/tricitynews/news/24355934.html
According to the “Sierra Club” , Plasco’s plant have produced electricity during : 1 ( ONE ! ) HOUR..
Very Far from being a successful demo of the Process…
Dany.
September 12th, 2008 at 2:42 pm
Danny seems like he wants PLASCO to fail. Perhaps he works for another group.
October 5th, 2008 at 8:48 am
Rick ,
For your information i’m a retired french engineneer who passionnated for “green technologies”.
I’m not working for (or against) any company. I’m still waiting a Waste to Energy “labs” projects become industrial, economical, and environmental reality.
I’m sorry but neither Plasco, nor any other company in the world demonstrate the process at full scale up to now..
I just hope it will come soon and i’ll be happy if Plasco does it..
kind regards,
Dany.
November 5th, 2008 at 10:32 am
END of Plasco’s WTE Project in Port Moody :
On October 9, 2008 the city received a letter from PlascoEnergy indicating that they had fulfilled their obligations under the Letter of Intent and did not wish to participate further in considering development of a Plasco Conversion Facility at the Barnet Highway Landfill site in Port Moody.
http://www.cityofportmoody.com/City+Hall/Services/Garbage+and+Recycling/Waste+to+Energy.htm
February 16th, 2009 at 10:48 am
Heard Rod Bryden speak recently that Plasco Energy has some 160 patents issued! A search on various patent databases reveals the following: 2 issued US patents (in 2000 and 2004, respectively) and 14 US applications, ie. NOT ISSUED. Andreas Tsangaris, current Chief Scientist at Plasco, is principal inventor in all cited references. Anyone care to confirm 160 issued patents.
March 13th, 2009 at 7:17 pm
Hey Anonymous,
I have heard Rod speak many times as well. He always says 16 and often acknoledges that some are still pending. Any other outragous claims you want to make? Anonymously of course.
Rick
April 8th, 2009 at 12:27 pm
Hi Rick ( and Mr Anonymous too )
Since you seem to know pretty well ” Mr Rod from PLASCO ” :
You can probably get from him actual figures on the real performance of this trail vs targets :
- Average municipal waste processed daily : 8.2 Tons / days ( target was 85 Tons per day !! )
- Electricity really produced : no figures provided ( non offilly : almost 0 ) , target was 11 MW!!
As professional specialized reporter you should easyly get and provide to us this information.
I can hardly belive you are not aware of the poor performance of this process !!!
Dany.
May 5th, 2009 at 10:45 am
It seems that Plasco has come a long way and is poised to provide a viable and valuable solution to the way we currently manage waste. Ex) landfills. The company seems to be working hard and quickly to get the concept and the technology to the market. I came across this video on the company website that clearly explains the whole process. It’s worth a look if you’re interested:
http://www.plascoenergygroup.com/?Media_Centre#Animated-Video
May 21st, 2009 at 10:45 am
Thanks Amanda for those videos from Plasco.
Nevertheless the conclusion from Plasco is that the dream has not yet become a reality and i would prefer the following title for the first video :
” How it should work” instead of ” How it works ”
Cheers,
dANY