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 Presentation Overview 1. Problem 2. Big Ideas 3. Voluntary Carbon Markets 4. Pavement Performance Benchmark 5. Conclusion
Capitaliing Green Pavement April 13, 2017 Slide 3 Hot-mixed vs foamed asphalt (HMA vs FSB) 1/5: PROBLEM
Capitaliing Green Pavement April 13, 2017 Slide 4 HMA
Capitaliing Green Pavement April 13, 2017 Slide 5 HMA 90 % Paved roads in US, Canda, and Europe Magnum 2006
Capitaliing Green Pavement April 13, 2017 Slide 6 HMA 90 % 317 Paved roads in US, Mt produced each Canda, and Europe year in the U.S. Magnum 2006 NAPA 2015 (in metric)
Capitaliing Green Pavement April 13, 2017 Slide 7 HMA 90 % 317 +4 Paved roads in US, Mt produced each Other pollutants: Canda, and Europe year in the U.S. CO, NO 2 , SO 2 , various organic Magnum 2006 NAPA 2015 compounds (in metric) Truit 2009
Capitaliing Green Pavement April 13, 2017 Slide 8 HMA 90 % 317 +4 3x Paved roads in US, Mt produced each Other pollutants: More GHG/$ spent Canda, and Europe year in the U.S. CO, NO 2 , SO 2 , than power and various organic communication Magnum 2006 NAPA 2015 compounds lines (in metric) Truit 2009 Truit 2009
Capitaliing Green Pavement April 13, 2017 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
Capitaliing Green Pavement April 13, 2017 Slide 10 Int nter erstat ate e Highw ghway ay Proj oject ects Only eleven states use recycled materials on interstate highway projects Image credit: Brian Diefenderfer, PhD, PE, Virginia Transportation Research Council (September 2016)
Capitaliing Green Pavement April 13, 2017 Slide 11 FSB Example: I-64 Highway: Restoration & Widening Estimated Impact Project • $190 million • 30 to 50% cost savings • Reconstruction of 7.08 miles • 50% less greenhouse gasses* (3,000+ trucks/day) • Fixes deterioration causes, not • Addition of a 12ft shoulder just symptoms • Faster than full reconstruction * initial estimate; I believe actual results will vary
Capitaliing Green Pavement April 13, 2017 Slide 12 Ful ull Dept epth h Recl eclam amat ation on (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)
Capitaliing Green Pavement April 13, 2017 Slide 13 Col old 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)
Capitaliing Green Pavement April 13, 2017 Slide 14 FSB Barriers and Drivers Drivers Barriers • Business as usual in the U.S. • Low cost of recycled materials • Unregulated CO 2 markets • Environmental goodwill? • Equipment / re-tooling • • Training • • No consensus on use or structural performance
Capitaliing Green Pavement April 13, 2017 Slide 15 Voluntary Markets & App 2/5: THE BIG IDEAS
Capitaliing Green Pavement April 13, 2017 Slide 16 Two Ideas to Drive Adoption 1. Economic 2. Social
Capitaliing Green Pavement April 13, 2017 Slide 17 Two Ideas to Drive Adoption 1. Economic: Voluntary Carbon Market 2. Social: App
Capitaliing Green Pavement April 13, 2017 Slide 18 Baselines and Performance Benchmarks for 3/5: VOLUNTARY CARBON MARKETS
Capitaliing Green Pavement April 13, 2017 Slide 19 Voluntary Carbon Market Projects 1. Projects reduce CO 2 emissions 2. Standard organizations verify reductions and award carbon offset credits 3. Credits are sold at market prices
Capitaliing Green Pavement April 13, 2017 Slide 20 Voluntary Carbon Market Projects Two ways to verify emission reductions: • Project Baselines • Performance Benchmarks
Capitaliing Green Pavement April 13, 2017 Slide 21 Baseline Method Baseline Offset Emissions (CO 2 ) Baseline Voluntary Project Project Voluntary Market
Capitaliing Green Pavement April 13, 2017 Slide 22 Baseline Method Baseline Offset Emissions (CO 2 ) Baseline Voluntary Project Project Voluntary Market
Capitaliing Green Pavement April 13, 2017 Slide 23 Baseline Method Actual Emissions Baseline For Cap Sale Emissions (CO 2 ) Baseline Voluntary Normal Project Project Project Voluntary Market Organizations with Emission Cap Goals
Capitaliing Green Pavement April 13, 2017 Slide 24 Baseline Method
Capitaliing Green Pavement April 13, 2017 Slide 25 Baseline Method
Capitaliing Green Pavement April 13, 2017 Slide 26 Many projects are different sizes but technically similar.
Capitaliing Green Pavement April 13, 2017 Slide 27 How can we capitalize on their similarities?
Capitaliing Green Pavement April 13, 2017 Slide 28 We can compare different size projects with a rate – a performance benchmark : CO 2 / Project Factor
Capitaliing Green Pavement April 13, 2017 Slide 29 Project Baseline vs Performance Benchmark Project Performance Emissions (CO 2 ) / Project Factor Baseline Benchmark Emissions (CO 2 )
Capitaliing Green Pavement April 13, 2017 Slide 30 Project Baseline vs Performance Benchmark Performance Benchmark Project Baseline Calculate CO 2 for one scenario, and Calculate CO 2 emissions for two scenarios and their difference compare it to a benchmark rate: CO 2 / project factor
Capitaliing Green Pavement April 13, 2017 Slide 31 Project Baseline vs Performance Benchmark Performance Benchmark Project Baseline • For unique projects • For similar projects • Not scalable • Scalable • Expensive to justify the business • Predefined business as usual as usual case case: CO 2 / project factor
Capitaliing Green Pavement April 13, 2017 Slide 32 4/5: PAVEMENT PERFORMANCE BENCHMARK
Capitaliing Green Pavement April 13, 2017 Slide 33 HMA Study 16 16 HMA Plants Placement Projects (Maryland and Virginia) (Maryland)
Capitaliing Green Pavement April 13, 2017 Slide 34 HMA Emission Categories Raw Materials Mix Plant Hauling + Installation Project Emissions
Capitaliing Green Pavement April 13, 2017 Slide 35 HMA Emission Categories Emissions Category Raw Materials (kg-CO 2 e/t) 36% Raw Materials 54 Installation 43% Mix Plant 17 Hauling 15 Installation 64 Mix Plant 11% Hauling 10%
Capitaliing Green Pavement April 13, 2017 Slide 36 HMA Emission Distribution 35 30 25 Frequency 20 15 10 5 0 <110 125-140 140-155 >155 110-125 Emissions (kg-CO 2 e / t)
Capitaliing Green Pavement April 13, 2017 Slide 37 HMA Performance Benchmark Project Hauling Distance Benchmark Type (miles) (kg-CO 2 e/t) Parking Lot ≤ 40 121.9 Parking Lot > 40 142.4 Road Any 102.9
Capitaliing Green Pavement April 13, 2017 Slide 38 Structural Performance Adjustment Directly replacing HMA with all FSB lowers structural performance and provides a poor surface layer. Same Granular Base Same Sub-Base Traditional Project Offset Project
Capitaliing Green Pavement April 13, 2017 Slide 39 Structural Performance Adjustment Replacing HMA with an FSB layer and a small HMA surface layer yields an equal structural performace that is 2% heavier and 25% thicker. Same Granular Base Same Sub-Base Traditional Project Offset Project
Capitaliing Green Pavement April 13, 2017 Slide 40 140 FSB Em Emission on Reduct eductions ons 2% Performance Adjustment 120 With the 2% structural performance adjustment: 100 Emissions (kg-CO 2 e/t ) HMA benchmark 121.9 kg-CO 2 e/t: 80 Cold Central Plant Recycling (CPPR) 60 78.4 kg-CO 2 e/t 36% Reduction 40 Cold In-Place Recycling (CIR) 23.3 kg-CO 2 e/t 20 81% Reduction 0 HMA Benchmark CCPR CIR
Capitaliing Green Pavement April 13, 2017 Slide 41 CCPR Total Savings material savings + offset savings = total ($/t-material)
Capitaliing Green Pavement April 13, 2017 Slide 42 CCPR Material Savings (Installed) HMA 110 FSB 90 Savings 20 ($/t-material)
Capitaliing Green Pavement April 13, 2017 Slide 43 CCPR Offset Savings HMA Benchmark 121.9 Adjusted FSB 78.4 Savings 43.5 kg-CO 2 e/t-material At a market rate of $9.30 / 1,000 kg-CO 2 e: Savings: 0.4 ($/t-material)
Capitaliing Green Pavement April 13, 2017 Slide 44 CCPR Total Savings material savings + offset savings = total ($/t-material)
Capitaliing Green Pavement April 13, 2017 Slide 45 CCPR Total Savings $20/t material savings + $0.4/t offset savings = $20.4/t ($/t material)
Capitaliing Green Pavement April 13, 2017 Slide 46 CCPR Contractor Profits $0.4 offset savings < $20 material savings
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