| Cambrian Energy: Profiting from Waste |
| Renewables | |||
| Written by Grayson Walker | |||
| Wednesday, 30 June 2010 | |||
 This renewable energy company has built more than 50 landfill gas projects and shows no signs of slowing down.
“The key to success is understanding the financial engineering,” said Williams, who calls himself a recovering lawyer without the benefit of a 12-step program. Many players in the renewable energy space have significant engineering backgrounds, but they often don't understand the complexities of contract negotiations, financing instruments, and the minefield that can be the approval process for any project.  Evan Williams, president The company has built more than 50 landfill gas projects, moving from a royalty share model to building its own portfolio of renewable projects. It is also branching out, exploiting new technologies to maximize landfill gas extraction and exploring renewable projects, such as using wastewater sludge to generate electricity. “It sounds simple, but we look at a resource and determine how to best make the most money,” Williams said. “We’re not tied to a single technology or energy product in how we approach each project.” Considerations include the part of the country where the potential project is located, how close it is to an electric grid or pipeline, the right technologies to install, availability of grant money and/or tax credits, and the prevailing price of the end product. “If the commodity price is too low, you shouldn’t do anything.” Williams brings the legal and financial aspect to Cambrian while his younger brother, Tudor, is the engineer for the family-owned firm, working on ways to maximize the value of resources while locating potential customers. Son Rhys Williams is responsible for assisting in the location and evaluation of potential energy customers for an energy project as well as the preparation of the financial model for each energy option being evaluated for a project. Three demonstration technologies Cambrian is currently working on projects at two landfills in California’s Central Valley that will convert methane derived from landfills into high-value products using three technological advances that Williams calls “evolutionary, not revolutionary” in nature. The first, called the Cambrian Cycle, is a retrofit aftermarket product for internal combustion engines to increase their efficiency by injecting water and hydrogen into the combustion mix. Williams said that an engine operating at 10,500 BTUs is expected to improve to 7,000 BTUs or lower while delivering the same power from less fuel, reducing emissions, and cleaning the engine. The second, Cambrian Biovapor Stimulation technology, injects an atomized cocktail of moisture, nutrients, and an active strain of methanogenic bacteria to enhance the organic-waste-to-gas process. Benefits include capturing more methane, recapturing landfill air space (or extending its life if the landfill still is open), and shortening the period of environmental exposure for a landfill owner. A successful demonstration project is expected to allow the development of viable landfill gas projects at landfills that formerly were considered too small to be economically feasible. The final technology converts methane in a propriety furnace with the help of a patented catalyst into renewable hydrogen and carbon nanofibers that have use in wastewater treatment and in lithium batteries. “The process has zero emissions, captures carbon, and produces products with high economic value,” Williams said. Although known for its landfill gas projects, Cambrian Energy is a majority partner in a $160 million regional wastewater sludge project in Colton, Calif. that will convert wastewater sludge received from a number of regional wastewater agencies into renewable electric power. “The end products are renewable electric power, a puff of hot air, and 40% of the material ends up as ash, which is a perfect additive for cement,” Williams said. Introduction to utilities Cambrian Energy was not founded until 1980, but the Williams brothers began working in the power industry seven years prior when Tudor had an idea to build a 40-foot substrate power pole from fly ash and waste glass in response to the lack of viable candidates for traditional wood poles. The brothers parlayed $500 in seed money into six years of research and development grants. The brothers did build demonstration poles, but the concept was not ultimately viable due to the first energy crisis in the mid-1970s. However, the experience introduced the brothers to the energy and utility industry, where Tudor’s engineering background and Evan’s financial acumen proved invaluable. That was combined with the political savvy of Bob Hatch, a lawmaker from Illinois who was an early partner in the venture. Between 1981 and 1986, Cambrian partnered with Pacific Lighting Energy Systems, a sister company to Southern California Gas Co., to develop alternative energy projects. During the relationship, Cambrian completed 13 projects and achieved a number of industry firsts, including the first vehicle powered by landfill gas and two 9,300 kilowatt reciprocating power plants fueled by landfill gas. During a three-year partnership with Solar Turbines, a subsidiary of Caterpillar, Cambrian co-developed five landfill- gas-to-energy projects, including the first project to use a recuperated gas turbine operating on landfill gas. Cambrian also developed its first cogeneration project at a landfill in Hawaii. Between 1995 and 2001, Cambrian co-developed 22 landfill-gas-to-energy projects with NEO Corp., a wholly owned subsidiary of NRG Energy. “Since 2001, we’ve primarily developed our own projects," Williams said. “We’ve had a 30-year apprenticeship to learn about the technology, the financing, and the engineering of projects.” And all three elements are vital to the success of any project. Williams got big laughs at a recent conference of engineers when he said that in a successful project, one vital objective must be achieved: revenues must exceed expenses. But with many companies jumping on the renewable energy bandwagon, that simple tenet isn’t always attained. Although the road to successful projects is not easy, Cambrian’s experience has shortened its journey to successful renewable energy projects. Grayson Walker, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , is a freelance writer based in Atlanta. |
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