CAPITALIZING GREEN PAVEMENT A METHOD AND VALUATION Xiaoyu Liu, - - PowerPoint PPT Presentation

▶
capitalizing green pavement a method and valuation
SMART_READER_LITE
LIVE PREVIEW

CAPITALIZING GREEN PAVEMENT A METHOD AND VALUATION Xiaoyu Liu, - - PowerPoint PPT Presentation

Apr 08, 2024 215 likes •791 views

CAPITALIZING GREEN PAVEMENT A METHOD AND VALUATION Xiaoyu Liu, David Choy (presenting), Qingbin Cui, Charles Schwartz Pavement Life-Cycle Assessment Symposium Champaign, IL; April 12-13 Capitaliing Green Pavement April 13, 2017 Slide 2

slide-1
SLIDE 1

CAPITALIZING GREEN PAVEMENT A METHOD AND VALUATION

Xiaoyu Liu, David Choy (presenting), Qingbin Cui, Charles Schwartz Pavement Life-Cycle Assessment Symposium Champaign, IL; April 12-13

slide-2
SLIDE 2

Presentation Overview

  • 1. Problem
  • 2. Big Ideas
  • 3. Voluntary Carbon Markets
  • 4. Pavement Performance Benchmark
  • 5. Conclusion

April 13, 2017 Capitaliing Green Pavement Slide 2

slide-3
SLIDE 3

Hot-mixed vs foamed asphalt (HMA vs FSB)

1/5: PROBLEM

April 13, 2017 Capitaliing Green Pavement Slide 3

slide-4
SLIDE 4

April 13, 2017 Capitaliing Green Pavement Slide 4

HMA

slide-5
SLIDE 5

April 13, 2017 Capitaliing Green Pavement Slide 5

HMA

90%

Paved roads in US, Canda, and Europe

Magnum 2006

slide-6
SLIDE 6

April 13, 2017 Capitaliing Green Pavement Slide 6

HMA

317

Mt produced each year in the U.S.

NAPA 2015 (in metric)

90%

Paved roads in US, Canda, and Europe

Magnum 2006

slide-7
SLIDE 7

April 13, 2017 Capitaliing Green Pavement Slide 7

HMA

317

Mt produced each year in the U.S.

NAPA 2015 (in metric)

90%

Paved roads in US, Canda, and Europe

Magnum 2006

+4

Other pollutants: CO, NO2, SO2, various organic compounds

Truit 2009

slide-8
SLIDE 8

317

Mt produced each year in the U.S.

NAPA 2015 (in metric)

90%

Paved roads in US, Canda, and Europe

Magnum 2006

3x

More GHG/$ spent than power and communication lines

Truit 2009

+4

Other pollutants: CO, NO2, SO2, various organic compounds

Truit 2009

April 13, 2017 Capitaliing Green Pavement Slide 8

HMA

slide-9
SLIDE 9

April 13, 2017 Capitaliing Green Pavement Slide 9

Hot Mix vs Foam Stabilized Base (FSB)

HMA FSB Aggregate Virgin & Recycled 100% Recycled Cost $$ $ Mix temperature High Low (Ambient) Hauling More Less Use High Low Thickness Standard A bit more

slide-10
SLIDE 10

Int nter erstat ate e Highw ghway ay Proj

  • ject

ects

Only eleven states use recycled materials on interstate highway projects Image credit: Brian Diefenderfer, PhD, PE, Virginia Transportation Research Council (September 2016)

April 13, 2017 Capitaliing Green Pavement Slide 10

slide-11
SLIDE 11

Project

  • $190 million
  • Reconstruction of 7.08 miles

(3,000+ trucks/day)

  • Addition of a 12ft shoulder

Estimated Impact

  • 30 to 50% cost savings
  • 50% less greenhouse gasses*
  • Fixes deterioration causes, not

just symptoms

  • Faster than full reconstruction

FSB Example: I-64 Highway: Restoration & Widening

April 13, 2017 Capitaliing Green Pavement Slide 11

* initial estimate; I believe actual results will vary

slide-12
SLIDE 12

Ful ull Dept epth h Recl eclam amat ation

  • n (FDR)

Recycles materials on-site 1. Pulverize existing asphalt + underlying base (4 to 12 inches) 2. Treat reclaimed material with additives 3. Compact (drum or pneumatic tire roller) 4. Apply a surface layer Image credit: Brian Diefenderfer, PhD, PE, Virginia Transportation Research Council (September 2016)

April 13, 2017 Capitaliing Green Pavement Slide 12

slide-13
SLIDE 13

Col

  • ld

d Cent entral al Plant ant Recy ecycl cling ng (CCPR)

Recycles materials in a central place

  • In urban areas, central plants can

stockpile RAP from contractors that have excess amounts

  • Normally requires hauling/fuel
  • Mobile mix plants reduce hauling

Image courtesy of Global Resource Recyclers Engineering (2017)

April 13, 2017 Capitaliing Green Pavement Slide 13

slide-14
SLIDE 14

Barriers

  • Business as usual in the U.S.
  • Unregulated CO2 markets
  • Equipment / re-tooling
  • Training
  • No consensus on use or

structural performance Drivers

  • Low cost of recycled materials
  • Environmental goodwill?
  • FSB Barriers and Drivers

April 13, 2017 Capitaliing Green Pavement Slide 14

slide-15
SLIDE 15

Voluntary Markets & App

2/5: THE BIG IDEAS

April 13, 2017 Capitaliing Green Pavement Slide 15

slide-16
SLIDE 16

April 13, 2017 Capitaliing Green Pavement Slide 16

Two Ideas to Drive Adoption

  • 1. Economic
  • 2. Social
slide-17
SLIDE 17

April 13, 2017 Capitaliing Green Pavement Slide 17

Two Ideas to Drive Adoption

  • 1. Economic: Voluntary Carbon Market
  • 2. Social: App
slide-18
SLIDE 18

Baselines and Performance Benchmarks for

3/5: VOLUNTARY CARBON MARKETS

April 13, 2017 Capitaliing Green Pavement Slide 18

slide-19
SLIDE 19

April 13, 2017 Capitaliing Green Pavement Slide 19

Voluntary Carbon Market Projects

  • 1. Projects reduce CO2 emissions
  • 2. Standard organizations verify reductions

and award carbon offset credits

  • 3. Credits are sold at market prices
slide-20
SLIDE 20

April 13, 2017 Capitaliing Green Pavement Slide 20

Voluntary Carbon Market Projects

Two ways to verify emission reductions:

  • Project Baselines
  • Performance Benchmarks
slide-21
SLIDE 21

Baseline Emissions (CO2) Offset Voluntary Project Baseline Project Voluntary Market

April 13, 2017 Capitaliing Green Pavement Slide 21

Baseline Method

slide-22
SLIDE 22

Baseline Emissions (CO2) Offset Voluntary Project Baseline Project Voluntary Market

April 13, 2017 Capitaliing Green Pavement Slide 22

Baseline Method

slide-23
SLIDE 23

Baseline Cap Emissions (CO2) For Sale Voluntary Project Normal Project Baseline Project Voluntary Market Organizations with Emission Cap Goals Actual Emissions

April 13, 2017 Capitaliing Green Pavement Slide 23

Baseline Method

slide-24
SLIDE 24

April 13, 2017 Capitaliing Green Pavement Slide 24

Baseline Method

slide-25
SLIDE 25

April 13, 2017 Capitaliing Green Pavement Slide 25

Baseline Method

slide-26
SLIDE 26

April 13, 2017 Capitaliing Green Pavement Slide 26

Many projects are different sizes but technically similar.

slide-27
SLIDE 27

April 13, 2017 Capitaliing Green Pavement Slide 27

How can we capitalize on their similarities?

slide-28
SLIDE 28

April 13, 2017 Capitaliing Green Pavement Slide 28

We can compare different size projects with a rate – a performance benchmark: CO2 / Project Factor

slide-29
SLIDE 29

April 13, 2017 Capitaliing Green Pavement Slide 29

Project Baseline vs Performance Benchmark

Project Baseline Emissions (CO2) Performance Benchmark Emissions (CO2) / Project Factor

slide-30
SLIDE 30

Project Baseline Calculate CO2 emissions for two scenarios and their difference Performance Benchmark Calculate CO2 for one scenario, and compare it to a benchmark rate: CO2 / project factor

Project Baseline vs Performance Benchmark

April 13, 2017 Capitaliing Green Pavement Slide 30

slide-31
SLIDE 31

Project Baseline

  • For unique projects
  • Not scalable
  • Expensive to justify the business

as usual case Performance Benchmark

  • For similar projects
  • Scalable
  • Predefined business as usual

case: CO2 / project factor

Project Baseline vs Performance Benchmark

April 13, 2017 Capitaliing Green Pavement Slide 31

slide-32
SLIDE 32

4/5: PAVEMENT PERFORMANCE BENCHMARK

April 13, 2017 Capitaliing Green Pavement Slide 32

slide-33
SLIDE 33

16

HMA Plants (Maryland)

HMA Study

16

Placement Projects (Maryland and Virginia)

April 13, 2017 Capitaliing Green Pavement Slide 33

slide-34
SLIDE 34

April 13, 2017 Capitaliing Green Pavement Slide 34

HMA Emission Categories

Raw Materials Mix Plant Hauling + Installation Project Emissions

slide-35
SLIDE 35

Raw Materials 36% Mix Plant 11% Hauling 10% Installation 43%

HMA Emission Categories

April 13, 2017 Capitaliing Green Pavement Slide 35

Category Emissions (kg-CO2e/t) Raw Materials 54 Mix Plant 17 Hauling 15 Installation 64

slide-36
SLIDE 36

5 10 15 20 25 30 35 <110 110-125 125-140 140-155 >155

Frequency Emissions (kg-CO2e / t)

HMA Emission Distribution

April 13, 2017 Capitaliing Green Pavement Slide 36

slide-37
SLIDE 37

April 13, 2017 Capitaliing Green Pavement Slide 37

HMA Performance Benchmark

Project Type Hauling Distance (miles) Benchmark (kg-CO2e/t) Parking Lot ≤ 40 121.9 Parking Lot > 40 142.4 Road Any 102.9

slide-38
SLIDE 38

Traditional Project Offset Project Same Sub-Base Same Granular Base Directly replacing HMA with all FSB lowers structural performance and provides a poor surface layer.

April 13, 2017 Capitaliing Green Pavement Slide 38

Structural Performance Adjustment

slide-39
SLIDE 39

Traditional Project Offset Project Same Sub-Base Same Granular Base Replacing HMA with an FSB layer and a small HMA surface layer yields an equal structural performace that is 2% heavier and 25% thicker.

April 13, 2017 Capitaliing Green Pavement Slide 39

Structural Performance Adjustment

slide-40
SLIDE 40

FSB Em Emission

  • n Reduct

eductions

  • ns

With the 2% structural performance adjustment: HMA benchmark 121.9 kg-CO2e/t: Cold Central Plant Recycling (CPPR) 78.4 kg-CO2e/t 36% Reduction Cold In-Place Recycling (CIR) 23.3 kg-CO2e/t 81% Reduction

April 13, 2017 Capitaliing Green Pavement Slide 40

20 40 60 80 100 120 140 HMA Benchmark CCPR CIR

Emissions (kg-CO2e/t)

2% Performance Adjustment

slide-41
SLIDE 41

April 13, 2017 Capitaliing Green Pavement Slide 41

CCPR Total Savings

material savings +

  • ffset savings

= total ($/t-material)

slide-42
SLIDE 42

April 13, 2017 Capitaliing Green Pavement Slide 42

CCPR Material Savings (Installed)

HMA 110 FSB 90 Savings 20 ($/t-material)

slide-43
SLIDE 43

April 13, 2017 Capitaliing Green Pavement Slide 43

CCPR Offset Savings

HMA Benchmark 121.9 Adjusted FSB 78.4 Savings 43.5 kg-CO2e/t-material At a market rate of $9.30 / 1,000 kg-CO2e: Savings: 0.4 ($/t-material)

slide-44
SLIDE 44

April 13, 2017 Capitaliing Green Pavement Slide 44

CCPR Total Savings

material savings +

  • ffset savings

= total ($/t-material)

slide-45
SLIDE 45

April 13, 2017 Capitaliing Green Pavement Slide 45

CCPR Total Savings

$20/t material savings + $0.4/t offset savings = $20.4/t ($/t material)

slide-46
SLIDE 46

April 13, 2017 Capitaliing Green Pavement Slide 46

CCPR Contractor Profits

$0.4 offset savings < $20 material savings

slide-47
SLIDE 47

April 13, 2017 Capitaliing Green Pavement Slide 47

CCPR Contractor Profits

$0.4 offset savings < $20 material savings If a contractor

  • 1. Purchases FSB at $25/t (FOB, material only)
  • 2. Sells it for a 10% profit margin ($2.5)
  • 3. Carbon offset savings ($0.4/t) raise profits 16%
slide-48
SLIDE 48

5/5: CONCLUSIONS

April 13, 2017 Capitaliing Green Pavement Slide 48

slide-49
SLIDE 49
  • Performance benchmarks

developed in this study may be used with or without FSB

  • FSB projects generate ~43.5

kg-CO2e/t carbon offset credits

Conclusions

  • Replacing HMA with FSB

yields ~$20.4/t in savings

  • $0.4/t in offset credits can

increase contractor material profits (~16%)

April 13, 2017 Capitaliing Green Pavement Slide 49

slide-50
SLIDE 50
  • Approve methods
  • Launch app

What’s Next

April 13, 2017 Capitaliing Green Pavement Slide 50

slide-51
SLIDE 51

April 13, 2017 Capitaliing Green Pavement Slide 51

slide-52
SLIDE 52

QUESTIONS?

April 13, 2017 Capitaliing Green Pavement Slide 52

slide-53
SLIDE 53

These didn’t make my presentation, but might be helpful in answering your questions

BACK UP SLIDES

April 13, 2017 Capitaliing Green Pavement Slide 53

slide-54
SLIDE 54

Baseline Emissions (CO2) Offset Voluntary Project Baseline Project Voluntary Market

April 13, 2017 Capitaliing Green Pavement Slide 54

Non-Additionality

slide-55
SLIDE 55

Baseline New Baseline Emissions (CO2) “Non-Additional Offset” Offset Voluntary Project New Baseline Project Voluntary Market

April 13, 2017 Capitaliing Green Pavement Slide 55

Non-Additionality

slide-56
SLIDE 56

April 13, 2017 Capitaliing Green Pavement Slide 56

HMA Greenhouse Gases and Air Pollutants

Carbon Dioxide (CO2) Sulfur dioxide (SO2) Nitrogen oxide (NOx) Carbon monoxide (CO) Volatile organic compounds (VOC) Volatile hazardous air pollutant (HAP)

EPA 2009