In this edition of New Energy Expert Insights, we sat down with Jamie Roodenrys, General Manager of Commercial and Strategic Partnerships, and Greg Perkins, Chief Executive Officer of Wildfire Energy, to discuss their proprietary Moving Injection Horizontal Gasification (MIHG) technology and its transformative potential for waste-to-energy solutions.
Wildfire Energy is an Australian cleantech early-stage company focused on developing and deploying MIHG, an innovative gasification technology, to convert landfill-bound waste into sustainable fuels and renewable energy products.
How does MIHG technology work and how does it differentiate itself from other waste-to-energy technologies?
MIHG technology offers a distinctive alternative to conventional waste-to-energy systems, such as incineration, which involves combusting waste to generate heat and produce electricity.
Unlike incineration, MIHG utilises gasification, where waste is subjected to high temperatures in a controlled oxygen environment. This produces syngas, which is composed predominantly of carbon monoxide and hydrogen. This syngas can then be converted into various energy products, including hydrogen, methanol, biofuels and renewable diesel, highlighting the versatility of MIHG.
A key differentiator of MIHG is its innovative reactor design. Rather than moving the waste through the reactor, MIHG shifts the reaction zone through the waste. This approach optimises operational efficiency and enables smaller-scale, distributed energy generation, effectively servicing population centres as small as 25,000 people.
Moreover, MIHG is particularly adept at managing diverse waste feedstocks, including those with varying physical properties and contaminants. The technology’s ability to handle such variability is a significant strength, as it eliminates the need for extensive pre-treatment and complex feeding mechanisms.
What types of waste are targeted for processing, and what are the associated economic and environmental benefits?
The focus is waste that is destined for landfill, which aligns with existing policy frameworks and economic incentives supporting waste-to-energy projects.
Governments across Australia have implemented waste levies that impose costs on waste disposal, creating a financial incentive to divert waste from landfills. These levies encourage increased recycling and support the development of waste-to-energy technologies to process post-recycling residual waste streams.
Targeting waste with negative economic value – that is, waste that incurs disposal costs – allows for the generation of significant revenue from accepting and processing this material. This revenue is essential for the financial viability of smaller-scale projects, ensuring the sustainability of the business model.
Currently, the recovery of waste from existing landfills presents technical and economic challenges, making it less feasible. However, from an environmental standpoint, diverting waste is crucial to avoid significant methane emissions that landfills are unable to effectively capture.
While the quantity of methane emitted by individual landfills varies, on average there is approximately one tonne of CO2eq emissions for every tonne of waste placed into landfills.
“By processing this waste with our MIHG technology, methane emissions are avoided, and a beneficial source of renewable energy is generated.”
Australian Carbon Credits Units are earned by avoiding methane emissions from landfills.
What are the main outputs and to what degree can you tailor that output?
In the MIHG process, the primary product of gasification is syngas, a mixture of gases mainly composed of carbon monoxide and hydrogen, along with smaller amounts of methane and higher hydrocarbons. This syngas is generation through the thermal conversion of waste. The raw syngas contains contaminants from the waste such as sulfur, chlorine, and heavy metals. These need to be effectively managed for two reasons:
- Equipment integrity: Contaminants can damage the equipment used in subsequent stages of processing the gas and converting it to a final product, such as electricity. Removing these impurities ensures the longevity and efficiency of the plant equipment.
- Regulatory compliance: To meet environmental standards and air quality regulations, it is essential to clean the syngas of harmful substances.
For gas cleaning, proven, off-the-shelf technologies are employed, which have been effective in the energy sector for decades. While these technologies are not proprietary, their selection and implementation are guided by extensive expertise.
After purification, the syngas can be converted into various products, depending on the intended output. The complexity of this conversion varies:
- Electricity: Generating electricity is the most straightforward application. Gas engines, similar to those used in landfill gas applications, are employed with minor modifications. These engines can also produce heat, which can be utilised for various industrial processes.
- Hydrogen: Hydrogen production utilises equipment traditionally used for hydrogen generation from natural gas. This equipment is adapted to concentrate and separate hydrogen from the syngas, enabling the production of carbon negative ‘green’ hydrogen from waste.
- Renewable diesel, chemicals or methanol: Producing liquid biofuels such as renewable diesel or chemicals involves advanced processing. Specialised catalysts are used to synthesise these liquids from purified syngas. This stage requires extensive purification because the catalysts are sensitive to contaminants.
What is done with the residual product from the first stage of the gasification process?
In the gasification process, the primary residual product is known as slag. This byproduct resembles the output from a blast furnace and is essentially a rocky aggregate. During gasification, materials that do not convert into gas – such as ceramics, metals, glass, and other inert substances – accumulate as slag. Despite the reactor’s high temperatures of up to 1500°C, these materials cannot be converted into gas and are classified as inert.
The slag forms a molten liquid that drips to the bottom of the reactor. As it cools, it solidifies into a rocky aggregate with sizes ranging from a golf ball to a softball. This material is brittle, making it relatively easy to crush.
The inert nature of the slag, coupled with its high-temperature processing, makes it suitable for reuse in construction. It can be employed as aggregate in road base, concrete and other construction materials, providing a valuable alternative to traditional materials. The slag represents about 10-15% of the total volume processed, and its reuse helps reduce the demand for more resource-intensive materials.
The other byproduct of the reactor is biochar which can be removed as a separate product or reintroduced into the reactor and converted completely to syngas. Biochar, which is mostly carbon, has a range of applications. It is particularly useful for capturing carbon as a solid which is much more cost effective than capturing CO2 and finding a use or suitable storage site. Biochar from processing biomass can be used as soil conditioner and incorporated into building products. Wildfire Energy is currently investigating the best end use applications of biochar derived from wastes.
What energy input is required, and where does it come from?
The primary energy source for the process is derived from the waste itself. In the gasification reactor, waste is subjected to a controlled environment with low oxygen content. Oxygen is then injected, and the system is heated, allowing the waste to release its energy as a gas. The energy content of the waste typically ranges from 10 to 20 megajoules per kilogram, which is approximately one-third to one-half of the energy value of coal. This indicates that waste holds substantial energy potential.
Initially, a small amount of external electricity is required to start the system, such as powering lights and initiating operations. However, once the process is underway, the facility becomes a net exporter of electricity. The facility generates sufficient power to operate independently, relying on the energy released from the waste.
“In addition to producing electricity, the MIHG process can generate significant volumes of hydrogen which can be easily extracted and concentrated to power fuel cell vehicles.”
During hydrogen concentration, the non-hydrogen gases are separated from the syngas, including methane, carbon monoxide, and carbon dioxide. These byproduct gases, known as tail gas, can be utilised in generators to produce additional electricity, ensuring that the plant remains self-sufficient.
What are the operational costs associated with the plant, and what economic benefits does it bring to local communities?
Operational costs for the plant primarily include labour, maintenance, and the procurement of necessary consumables and materials. Managing solid waste requires a workforce to handle waste, transportation, and reactor operation. This includes overseeing plant operations and maintaining equipment, which entails both fixed and variable costs for repairs and replacements.
Specifically, labour costs are significant, given the need for skilled personnel to operate and maintain the waste processing and power generation components of the plant. In addition to traditional waste management roles, the plant’s power generation aspect demands well-qualified professionals with technical expertise.
For example, a Wildfire Energy project currently advancing in regional Queensland is expected to create between 12 and 18 full-time jobs. These roles will encompass both waste management and power station operations, requiring a mix of manual and technical skills. The plant’s capital investment is estimated at $50-60 million, and it is projected to generate approximately $20 million in annual revenue. This revenue will benefit the local economy by creating jobs and supporting community development.
Local governments have shown support for such projects because they not only reduce carbon emissions and divert waste from landfills but also stimulate economic growth by providing valuable employment opportunities. Moreover, MIHG technology addresses a significant gap in the energy-to-waste sector by providing valuable solutions for smaller towns and cities with populations of 25,000-200,000. Unlike existing waste-to-energy technologies that are typically feasible only in larger metropolitan areas, MIHG technology allows for deployment in smaller communities, thereby enhancing its overall impact and accessibility.
How is the customer base evolving, and what types of customers and products are being targeted?
As the technology matures, the customer base is expected to evolve. Initially, the focus was on early adopters, such as multinational corporations with significant waste management needs or a keen interest in new technologies to reduce carbon emissions. These early-stage customers are often seeking solutions to their waste issues or aiming to produce lower-cost hydrogen.
For instance, many corporations are interested in affordable hydrogen production. By leveraging waste disposal costs through waste levies, the MIHG technology can achieve a levelised cost of around $1 to $2 per kilogram of hydrogen. This cost aligns with the Australian Government’s 2030 target for hydrogen pricing. Current hydrogen projects based on electrolysis face challenges due to high power prices, making this cost-effective hydrogen production method particularly attractive.
In addition to hydrogen, sustainable fuels are another key focus area. The hydrogen industry, while promising, still faces hurdles related to distribution and infrastructure. In contrast, sustainable fuels are drop-in ready and therefore offer more immediate applications. For example, sustainable aviation fuel can be used in aircraft today, and renewable diesel can replace fossil diesel in existing truck fleets.
Although producing these fuels involves a more complex value chain with a high capital intensity, there is significant interest and potential in this area. Future announcements are anticipated as efforts in sustainable fuels continue to gain traction.
How does the approach to smaller scale waste-to-energy projects address community concerns and regulatory challenges?
Wildfire Energy’s approach to smaller scale waste-to-energy projects focuses on addressing waste management issues at a community level while producing high value products. These projects are designed to mitigate local waste problems rather than imposing solutions on broader regions, which helps to build community support and minimise resistance.
A key aspect of this model is its alignment with the principle of local waste management. By targeting communities to manage their own waste, the approach reduces concerns about disproportionate burdens on particular communities and social license issues. Communities are more likely to support and engage with projects when they perceive that they are solving their own waste problems, rather than being responsible for the waste of others.
Regulatory and site-specific factors are also carefully considered. Projects can be strategically located at greenfield industrial parks, existing landfills or waste transfer stations to minimise potential objections and regulatory hurdles.
In the early stages of project development, a ‘heat map’ approach is used to identify optimal locations based on regulatory conditions and community acceptance. This ensures that projects are implemented in areas where they can be commercially viable, operate smoothly and gain the necessary support.
The approach emphasises careful site selection and community involvement, aiming to reduce friction and foster positive relationships with local stakeholders.
How has government support and venture capital contributed to the development and expansion of your waste-to-energy projects?
The development and expansion of waste-to-energy projects have received substantial support from both state and federal governments in Australia. Significant grants and competitive funding have been secured by Wildfire Energy from entities such as the Queensland Government and the Australian Federal Government, demonstrating strong governmental backing for these initiatives.
Transitioning from pilot plants, which typically involve moderate costs, to full scale commercial plants requires considerable investment. For instance, while a pilot plant may cost a few million dollars, scaling up to a commercial facility can exceed $20 million. Although there is robust support for first-of-a-kind plants and renewable energy technologies from organisations like the Australian Renewable Energy Agency, challenges remain. Current funding programs often focus on achieving renewable energy targets rather than supporting new, innovative technologies developed domestically. This can create a gap in support for indigenous innovation versus the adoption of established overseas technologies.
In addition to government support, venture capital has played a crucial role in the growth of Wildfire Energy. Initial investments helped scale the technology from a small pilot plant to a more advanced setup. The involvement of a lead investor from a Japanese corporation is paving the way for further expansion and development of larger plants. This backing not only supports domestic growth but also facilitates international expansion, with ongoing efforts to identify attractive opportunities and supportive government policies in Europe, Asia and North America.
The Australian Government’s international trade and investment bodies, such as AUSTRADE and Trade and Investment Queensland, have also been instrumental. They have provided valuable connections and promoted our innovative Australian technologies globally. Their support includes facilitating introductions to potential investors and projects, which helps amplify the impact of these technologies and fosters revenue growth both domestically and internationally.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
