Doug sweetser dynamic graphs, quaternion analysis, and unified field theory, 74p
Alban CAT CHP SEMINAR · power (CHP), EPA’s Combined Heat and Power Partnership and the U.S....
Transcript of Alban CAT CHP SEMINAR · power (CHP), EPA’s Combined Heat and Power Partnership and the U.S....
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Alban CAT CHP SEMINAR
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Richard Sweetser Richard Sweetser has spent 43-years commercializing advanced energy, power, refrigeration and HVAC technology. Mr. Sweetser founded EXERGY Partners Corporation in January 1998 as a consulting firm designed to capitalize on opportunities arising out of utility restructuring and global climate change in the energy and construction industry. EXERGY Partners has developed an extensive commercial, institutional and industrial network focusing on the integration of onsite power generation, energy recovery and thermal energy management. EXERGY Partners has provided strategic support for the Federal initiative on combined heat and power (CHP), EPA’s Combined Heat and Power Partnership and the U.S. Department of State’s Asia Pacific Partnership. Mr. Sweetser is a Senior Advisor to US DOE’s Mid-Atlantic CHP Technology Assistance Partnership. Mr. Sweetser has published numerous technical, and policy articles, technical manuals, a book titled, THE FUNDAMENTALS OF GAS COOLING and is the lead author on ASHRAE’s new CHP Design Guide.
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FEDERAL INTEREST IN CHP JUNE 18, 2015
Richard Sweetser, Sr. Advisor DOE’s Mid-Atlantic CHP TAP
[email protected] 703.707.0293
Alban CAT Power Systems CHP Seminar
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CHP Technical Assistance Partnerships
Key Activities
Market Opportunity Analysis. Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors
Education and Outreach. Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.
Technical Assistance. Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.
6/18/2015 Slide 6
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Agenda Review of CHP and its benefits
Critical Issues for Successful CHP Application
The potential for natural gas CHP
Resilience and CHP
Federal Technical Assistance – CHP TAPS
6/18/2015 Slide 7
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150 units Total Fuel
Fuel
Fuel
94 units
56 units
30 units
Power Plant 32% efficiency
Boiler/Furnace 80% efficiency
45 units
Electricity
Heat
Combined Efficiency ~ 50%
CHP Captures the Heat Normally Lost in Power Generation, Increasing Overall
Efficiency …….
6/18/2015 Slide 8
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Fuel
Fuel
Fuel 100
units
94 units
56 units
30 units
Power Plant 32% efficiency
Boiler/Furnace 80% efficiency
CHP 75% efficiency
45 units
Electricity
Heat
Combined Efficiency ~ 50%
Combined Efficiency ~ 75%
CHP Captures the Heat Normally Lost in Power Generation, Increasing Overall
Efficiency …….
6/18/2015 Slide 9
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Fuel
Fuel
Fuel 100
units
94 units
56 units
30 units
Power Plant 32% efficiency
Boiler/Furnace 80% efficiency
CHP 75% efficiency
45 units
Electricity
Heat
Combined Efficiency ~ 50%
Combined Efficiency ~ 75%
30 to 55% less greenhouse gas emissions
…. and Reducing Greenhouse Gas Emissions
6/18/2015 Slide 10
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Important
Concern about energy costs
Concern about power reliability
Concern about sustainability and environmental impacts
Long hours of operation
Concurrent thermal loads
Central heating and/or cooling distribution system
Favorable Characteristics for CHP Applications
Helpful
Future central plant replacement and/or upgrades
Future facility expansion or new construction projects
EE measures already implemented
Access to nearby renewable fuels
Facility energy champion
1/21/15 Slide 11
Vital
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CHP is Already an Important Energy Resource
82.7 GW of installed CHP at over 4,400 industrial and commercial facilities
8% of U.S. Electric Generating Capacity; 14% of Manufacturing
Avoids more than 1.8 quadrillion Btus of fuel consumption annually
Avoids 241 million metric tons of CO2 compared to separate production
1/21/15 Slide 12
Chemicals 28%
Refining 19%
Paper 14%
Food 8%
Metals 5%
Other Manufacturing
6%
Other Industrial 6%
Commercial/ Institutional
14%
Existing CHP Capacity (MW)
Sources: DOE/ICF CHP Installation Database (U.S. installations as of December 31, 2014); “US Manufacturing Energy Use and Greenhouse Gas Emissions Analysis, November 2012”, EIA http://www.eia.gov/todayinenergy/detail.cfm?id=8250 Energetics,
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Natural Gas is the Preferred Fuel for Existing CHP (Based on Capacity)
Estimated Natural Gas Load of 4.2 Tcf
6/18/2015 Slide 13
Biomass, 2,705 MW
Coal, 12,307 MW
Natural Gas, 57,365 MW
Oil, 1,152 MW
Waste*, 7,366 MW
Wood, 1,375 MW
Other*, 459 MW
* Waste includes MSW, black liquor, industrial off gasses, and waste heat ** Other includes hydrogen, purchased steam, and unknown fuel types
Source: DOE/ICF CHP Installation Database (U.S. installations as of December 31, 2014)
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Market Drivers for CHP • Benefits of CHP recognized by Federal and
State policymakers
• Game changing outlook for natural gas in North America
• Opportunities created by environmental drivers
• CHP enhances resiliency in the face of man-made and natural disasters
Source: DOE/ICF CHP Installation Database (U.S. installations as of December 31, 2014)
Forecasted Additions
6/18/2015 Slide 14
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Cap
acit
y (M
W)
Annual Capacity Additions (MW)
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CHP Saves Energy and Reduces Emissions Category 10 MW CHP 10 MW PV 10 MW Wind 10 MW
NGCC Annual Capacity Factor 85% 22% 34% 70%
Annual Electricity 74,446 MWh 19,272 MWh 29,784 MWh 61,320 MWh
Annual Useful Heat Provided 114,544 MWht None None None
Footprint Required 6,000 sq ft 1,740,000 sq ft 76,000 sq ft N/A
Capital Cost $19.8 million $35.6 million $22.1 million $9.2 million
Annual Energy Savings, MMBtu 318,221 196,462 303,623 154,649
Annual CO2 Savings, Tons 43,343 17,887 27,644 28,172
Annual NOx Savings 61.9 16.1 24.9 46.2
Original Source: Combined Heat and Power A Clean Energy Solution: August 2012: DOE and EPA • 10 MW Gas Turbine CHP - 27% electric efficiency, 69% total CHP efficiency, 15 ppm NOx, $1,976/kW Capital Cost – Source: DOE/EPA Catalog of CHP Technologies, March 2015 • Capacity factors and capital costs for PV, Wind and Natural Gas Combined Cycle system based on utility systems in DOE’s Advanced Energy Outlook 2015 – Source: Electricity Market Module Assumptions, 2014 • Efficiency (7,050 Btu/kWh) for Natural Gas Combined Cycle system based on Advanced Energy Outlook 2015 (620 MW system proportioned to 10 MW of output) – Source: Electricity Market Module Assumptions, 2014; 2.5 PPM NOx emissions assumed for NGCC • CHP, PV, Wind and NGCC electricity displaces National All Fossil Average Generation resources: Based on eGRID 2012 – (2009 data ) - 9,572 Btu/kWh, 1,743 lbs CO2/MWh, 1.5708 lbs NOx/MWh, 7% T&D losses; • CHP thermal output displaces 80% efficient on-site natural gas boiler with NOx emissions of 0.1 lb/MMBtu
6/18/2015 Slide 15
Source: Combined Heat and Power A Clean Energy Solution: August 2012: DOE and EPA
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CHP Is a Cost-Effective Resource
Source: Bloomberg Sustainable Energy Factbook 2015
Levelize cost of electricity 2014 ($/MWh)
6/18/2015 Slide 16
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The Remaining Potential for CHP Is Large
• Technical Potential of 120+ GW (Industrial 60 GW; Commercial/Institutional 63 GW). (ICF estimates)
• 40+ GW with payback less than 10 years. (AGA)
• 111(d) could support 20 GW of new CHP nationwide. (ACEEE)
Source: ICF Internal Estimates
6/18/2015 Slide 17
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CHP can help States meet 111(d) The Electric Generating Unit (EGU ) emission reduction impacts of CHP are
similar to the emission reduction impacts of other end-use energy efficiency measures Deployment of CHP reduces demand, and overall emissions, from affected
EGUs CHP provides long-term, persistent savings and is: Measurable Enforceable Quantifiable Verifiable
Best practices exist in terms of crediting emissions savings from CHP, state programs to promote CHP markets, and in EM&V
18
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CPP, 111d and Electric Power
1/21/15 Slide 19
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CHP can help States meet 111(d)
1/21/15 Slide 20
Source: Center for Clean Air Policy
CHP Capacity by Region, Base and Policy Cases, 2030
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The CHP Market Is Evolving
6/18/2015 Slide 21
Source: ICF Internal Estimates
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Resilience Resilience | The capacity of people,
organizations and systems to prepare for, respond, recover from and thrive in the face of hazards, and to adjust to continual change. Resilient systems share certain qualities such as redundancy, flexibility and responsiveness.
Hazard | A sudden event or gradual change, which can lead to impacts on a place or people.
Exposure | People and things located in a place that could be affected by a hazard.
Vulnerability | The propensity for a hazard to affect the wellbeing of a person, community or organization.
Risk | The impact that occurs, whose severity depends on how the above factors interact.
1/21/15 Slide 22
RISK
RESILIENCE
HAZARD, EXPOSURE,
VULNERABILITY
Source: Toolkit for Resilient Cities
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Global Natural Disasters
1/21/15 Slide 23
Source: Emergency Events Database EM-DAT
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2012 Major Climate Disasters
Source: National Oceanic and Atmospheric Administration
1/21/15 Slide 24
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DOE Report on CHP in Critical Infrastructure
Provides context for CHP in critical infrastructure applications.
Contains 14 case studies of CHP operating through grid outages.
Policies promoting CHP in critical infrastructure.
Recommendations on how to design CHP for reliability
1/21/15 Slide 25
http://www.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf
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Resilient CHP versus Traditional CHP
CHP is typically designed for the thermal load and may require additional DG to meet CI load requirements
Block loading capabilities of gas engines may require additional switchgear – can be significant
Gas engines cannot meet “emergency” power restoration requirements so may require diesel engines to comply
Energy cost offsets do not increase with complexity or cost of resiliency without “loss of load” remuneration
1/21/15 Slide 26
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One Economic View of Resilient CHP CHP System Components
Standard CHP (no off-grid reliability benefit)
CHP With Backup Capabilities
Generator Capacity (kW) 1,500 1,500 CHP System Total Installed Cost ($/kW) $1,800 $1,800 Added Controls and Switchgear ($/kW) N/A $175 Typical Backup Diesel Generator, Controls, and Switchgear ($/kW) N/A ($550) Incremental Capital ($/kW) $1,800 $1,425 Total Incremental Capital Cost ($) $2,700,000 $2,137,500 Net Annual Energy Savings ($) $400,000 $400,000 Payback 6.8 years 5.3 years Internal Rate of Return 12.20% 16.90% Net Present Value (at 10% discount) $311,302 $822,665
1/21/15 Slide 27
Need to Assess the Economic Impact of Loss of Power
Source: http://www.epa.gov/chp/basic/reliability.html
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What type of Technical Assistance is available through the U.S. DOE CHP TAPs?
Uses available site information. Estimate: savings, Installation costs, simple paybacks, equipment sizing and type.
Quick screening questions with spreadsheet payback calculator.
3rd Party review of Engineering Analysis. Review equipment sizing and choices.
Review specifications and bids, Limited operational analysis
US DOE CHP TAP Services:
Screening and Preliminary
Analysis
Feasibility Analysis
Investment Grade Analysis
Procurement, Operations & Maintenance,
Commissioning
5/29/2015 Slide 28
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For More Information
1/21/15 Slide 29
Richard Sweetser, Sr. Advisor
DOE’s Mid-Atlantic CHP TAP
703.707.0293
http://www.energy.gov/eere/amo/chp-deployment
http://www.midatlanticchptap.org/
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Tina Reed Tina Read serves as the Manager of Industrial and Commercial Markets at the Energy Solutions Center, a non-profit member organization of Natural Gas Utilities. She oversees the Multifamily consortium and the Industrial consortium and manages the Natural Gas Vehicle Workgroup, Agricultural Applications Workgroup and the Renewable Energy Workgroup. She oversees the production of ESC’s Gas Technology magazine and Energy Solutions for Commercial Buildings magazine. Prior to ESC, Tina spent 10 years at Alban where she progressed from project manager to engineering consultant and departed as a sales executive. She is a Certified Energy Manager (CEM). She holds a BS in Mechanical Engineering from the University of Maryland, College Park and a MA in Teaching.
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© 2015 Energy Solutions Center Inc. – All Rights Reserved
Natural Gas Perspectives on CHP June 2015
Tina Read, Energy Solutions Center
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32 © Energy Solutions Center Inc. – All Rights Reserved
Natural Gas Supply Gas storage and delivery Market information Natural gas advantages
Presentation Outline
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33 © Energy Solutions Center Inc. – All Rights Reserved
North American Shale Gas Deposits
Source: http://www.eia.gov/todayinenergy/detail.cfm?id=20852
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34 © Energy Solutions Center Inc. – All Rights Reserved
Pump Fluid into the well at high pressure Pressure creates
Fractures in the shale Filler material mixed with
fluid keeps fractures open Natural Gas then able to
move to the well
Basics of Fracking
Source: National Energy Board - Canada A Primer for Understanding Canadian Shale Gas - Energy Briefing Note ISSN 1917-506X
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35 © Energy Solutions Center Inc. – All Rights Reserved
Horizontal Drilling for Shale Gas Operators have strong economic incentives to ensure that fractures do not propagate beyond the shale
Waste of materials, time, and money
Potential loss of the well and the associated gas
Lead to excess water production from adjacent strata – increasing production costs
Source: www.netl.doe.gov/technologies/oil-gas/publications/EPreports/Shale_Gas_Primer_2009.pdf
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Gas can be stored in huge storage tanks in liquefied form (LNG) or in underground wells
How Gas is Stored and Delivered
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37 © Energy Solutions Center Inc. – All Rights Reserved 37 © Energy Solutions Center Inc. – All Rights Reserved
Underground Gas Storage
http://www.eia.gov/cfapps/ngqs/images/storage_2013.png
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2.4 million mile underground system 2.1 million LDC, 300,000 Transmission
Interstate Pipeline Network
Source: AGA
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39 © Energy Solutions Center Inc. – All Rights Reserved
FERC or state approval Submit plans & economic studies Show need Environmental impact statement Obtain right-of-way Construction Trench & directional drill Install & connect protected pipe Backfill
Pipeline Construction
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How Gas is Stored and Delivered
Natural Gas Delivery System
Transmission Underground
Storage City Gate
Processing Plant
1700 Electric Power Plants
Compressor Station
Regulator/ Meter
INTERSTATE TRANSMISSION
LINES
Gathering Lines
Producing Wells
Utility Underground
Storage
66 Million Households
5 Million Commercial Customers Offices, Hospitals, Hotels & Restaurants
Regulator Meter
Regulator Meter
Regulator Meter
Regulator Meter
LDC Regulator
Supplemental Fuels – LNG, LPG
Approx. 2.4 million
Miles in U.S.
Distribution and Service
Pipelines
189,000 Factories And Manufacturers
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© 2015 Energy Solutions Center Inc. – All Rights Reserved
Natural Gas Market Info
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Stable Pricing Predicted Into the Future
Source: Rethinking Natural Gas, A Future for Natural Gas in the U.S. Economy.
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43 © Energy Solutions Center Inc. – All Rights Reserved
Natural Gas -Economical Energy
Oil Prices Increasing
North
American Gas Prices
Decreasing
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44 © Energy Solutions Center Inc. – All Rights Reserved
Global Natural Gas Prices
Source: www.cga.ca/wp-content/uploads/2011/02/Chart-5 -Global-Natural-Gas-Prices8.pdf
European and Japanese Gas Prices Increasing
North American Gas Prices Dropping
Henry Hub Connects to four intrastate and
nine interstate pipelines Serves as the official delivery
location for futures contracts on the NYMEX
AECO-C Alberta spot gas trading price
at the AECO-C hub US
Fede
ral R
eser
ve, W
orld
Ban
k, C
GA
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© 2015 Energy Solutions Center Inc. – All Rights Reserved
Advantages of Natural Gas
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46 © Energy Solutions Center Inc. – All Rights Reserved
Why Combined Heat & Power? Help Stabilize the Grid Quality Power Economical Efficient Environmentally Sound
Conventional Power Generation vs. Combined Heat & Power
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47 © Energy Solutions Center Inc. – All Rights Reserved
Source: IEEE Web Site http://spectrum.ieee.org/energy/policy/us-electrical-grid-gets-less-reliable Illustration: Emily Cooper
Electric Grid Reliability Is DECLINING
IEEE Data Outages > 100 MW
Outages Affecting > 50,000 Customers
1991-1995 66 41
1996-2000 76 58
2000-2004 156 149
2005-2009 264 349
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48 © Energy Solutions Center Inc. – All Rights Reserved
9,000 MW > 7,000 MW < 8,000 MW
Generation: (Growing)
Transmission & Distribution:
(?????)
Load: (Growing)
Why the Decline in Electric Grid Reliability?
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49 © Energy Solutions Center Inc. – All Rights Reserved
Electricity:
Natural Gas:
Site vs. Source
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50 © Energy Solutions Center Inc. – All Rights Reserved
Combined Heat & Power CHP Efficiency vs. Electric Power Plants
Source: www.aga.org/our-issues/playbook/Documents/AGA_Playbook2012_HI_RES.pdf
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51 © Energy Solutions Center Inc. – All Rights Reserved
Natural Gas – The Clean Energy Emission Reduction with CHP
Source: http://info.ornl.gov/sites/publications/files/Pub13655.pdf
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52 © Energy Solutions Center Inc. – All Rights Reserved
CHP is good for business - Economical Improves overall energy efficiency and fuel
utilization - thereby lowering electric and overall energy costs Offers reliability during outages – less downtime Enhances power quality Equipment to meet virtually every need – size to fit
your need
Combined Heat & Power
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53 © Energy Solutions Center Inc. – All Rights Reserved
Associations and Resources Numerous Trade Associations and web resources are available to assist and provide you additional market information and resources
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54 © Energy Solutions Center Inc. – All Rights Reserved
ESC’s CHP Consortium www.UnderstandingCHP.com
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55 © Energy Solutions Center Inc. – All Rights Reserved
Simple Payback Tool www.UnderstandingCHP.com
55 © Energy Solutions Center Inc. – All Rights Reserved
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56 © Energy Solutions Center Inc. – All Rights Reserved
CHP Association www.chpassociation.org
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57 © Energy Solutions Center Inc. – All Rights Reserved
EPA Web Site – CHP Information
http://www.epa.gov/chp/technologies.html
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58 © Energy Solutions Center Inc. – All Rights Reserved 58 © Energy Solutions Center Inc. – All Rights Reserved
CHP Is Cleaner – EPA Emissions Calculator
Source: www.epa.gov/chp/basic/calculator.html
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59 © Energy Solutions Center Inc. – All Rights Reserved
DOE – U.S. Department of Energy Located in Washington, DC Numerous resources available http://www1.eere.energy.gov/industry/distributed
energy
Associations & Resources
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© Energy Solutions Center Inc. – All Rights Reserved
Thank you …
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Michael Leslie Michael Leslie is the CHP and C&I Energy Efficiency Program Manager for the Maryland Energy Administration (MEA). After a successful career in the aerospace industry, where he served the power generation and electro-mechanical needs of aircraft operators throughout the world, Michael has spent the last seven years focused on
facility resiliency and sustainable energy initiatives for utilities and large-scale energy users.
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COMBINED HEAT & POWER POLICIES AND PROGRAMS PRESENTATION
M I C H A E L L E S L I E, M S C, C L E A N E N E R G Y C H P A N D C & I P R O G R A M M A N AG E R
“Clean, Affordable and Reliable Energy for all Marylanders”
June 18, 2015
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MEA Overview
The mission of the Maryland Energy Administration (MEA) is to promote affordable, reliable, clean energy. MEA’s programs and policies help lower energy bills, fuel the creation of jobs, drive economic development, and promoting energy independence.
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MEA Strategic Goals
The strategic goals of the Maryland Energy Administration are:
• Make the State of Maryland a leader in energy efficiency;
• Reduce energy costs for our citizens; • Reduce greenhouse gas emissions from energy; • Increase the use of renewable energy; • Leverage public/private partnerships in order to
improve the competitive position of Maryland industry; and
• Lower the operating expenses of State and local governments while contributing to the improvement of air and water quality in Maryland.
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CHP Benefits and Policy Attributes
Energy Efficiency • EmPOWER Maryland initiative, the State has a goal of reducing
energy consumption by 15 percent by 2015
Economic Development • The use of CHP systems creates LOCAL jobs in manufacturing,
engineering, installation, ongoing operation and maintenance, and many other areas.
Grid and Facility Resiliency • Complies with Executive Order demand to identify how to
improve the resiliency and reliability of the Maryland electric distribution system
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Current CHP Policy Attributes (continued)
Greenhouse Gas Reduction • Supports the Greenhouse Gas Reduction Plan (the Plan) that will
reduce greenhouse gases 25 percent by the year 2020.
Job Creation • Job Creation Tax Credit (JCTC) managed by the Maryland
Department of Business & Economic Development
Maryland Renewable Energy Portfolio Standard • Maryland legislature passed legislation (S.B. 690) expanding the
portfolio standard’s Tier I definition to include waste-to-energy systems.
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Maryland’s Installed CHP Base
ICF International http://www.eea-inc.com/chpdata/States/MD.html
Prime Mover Sites Capacity (kW) Total 29 717,277 Boiler/Steam Turbine 8 585,200 Combined Cycle 2 25,500 Combustion Turbine 5 89,100 Fuel Cell 0 0 Microturbine 1 65 Other 0 0 Reciprocating Engine 8 15,060 Waste Heat to Power 1 902
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Current Utility led CHP Program
Eligibility (BGE, PHI, and PE) • Minimum requirement of 65% efficiency (Higher Heating Value) • All qualifying systems must not export electricity to the grid • Projects must be pre-approved
Incentive (BGE, PHI, and PE) • $2.5 million per project incentive cap ($1.25m capacity and $1.25
production) • Capacity Incentive Payment: Design incentive ($75/kW): • Capacity Incentive Payment: Installation incentive ($275/kW) for
projects under 250 kW and ($175/kW) for projects greater than 250 kW • Production incentive: ($0.07/kWh for 18 months): Three payments
subsequent to review of metering data at the end of the 6th, 12th and 18th months
SMECO Currently, SMECO does not offer standalone CHP rebates and, instead, provide rebates under the Custom programs
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How is the MEA positioned to help?
• Collaboration
• Lawton Loan Program
• Maryland Clean Energy Center (MCEC)
Financing Program
• MEA EmPowerMdCHP Program
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Eligible Entities (Please see the MEA EmPowerMdCHP website for more details)
• Healthcare facilities (e.g. hospital, assisted living, nursing home, and surgical center)
• Publicly Owned Wastewater Treatment facilities
Minimum Project Requirements • Located in the State of Maryland • Ground breaking will take place and materials will be
onsite by January 1, 2016 • Operational no later than January 1, 2017 • Minimum system efficiency of 60% Higher Heating Value
FY15 MEA EmPOWER Maryland CHP Program
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FY15 MEA EmPowerMdCHP Incentive
MEA EmPowerMdCHP Capacity Grant Incentive
System Size Capacity Payment per kW
Equal to or less than 75kW Up to $575 Between 76kW and 150kW Up to $550 Between 151kW and 300kW Up to $525 Between 301kW and 500kW Up to $500 Between 501kW and 750kW Up to $475 Between 751kW and 1MW Up to $450 1MW and greater Up to $425
Sample Incentive Calculations: A 75kW CHP system is eligible to receive up to a $43,125 grant award. 75kWx$575/kW=$43,125 A 1MW CHP system is eligible for up to a $450,000 award. 1MWx$450/kW=$450,000
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FY15 MEA EmPowerMdCHP Results
Results • Received 1o applications within the grant deadline totaling over
13 MW of new CHP capacity
• Approved 7 applications to receive grant funds
• 6 out of 7 are healthcare facilities
• No biomass or biofuel projects had been submitted
• Projects range in size from 130 – 2,000 kW
• Grant recipients are eligible to receive between $71,500 - $464,700
• Assuming all eligible grantees comply with the grant conditions the 7 projects will provide over 9 MW of new CHP capacity
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Eligible Entities (subject to change)
• Industrial facilities • Critical infrastructure facilities (including
hospitals, wastewater treatment facilities, and essential state and local government facilities)
• Private and public sector locations that leverage biogas/biomass
Incentive (Subject to change)
• Incentive to be structured like FY15
FY16 MEA EmPOWER Maryland CHP Program
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FY16 MEA EmPowerMdCHP Program
First-come first-served basis (subject to change) • Application materials must be submitted by February 1,
2016. However, since the grant selection will be determined primarily on a first-come first-served basis, applicants are encouraged to submit a complete application as soon as possible.
Anticipated Minimum Project Requirements • Located in the State of Maryland • Ground breaking will take place and materials will be
onsite by January 1, 2017 • Operational no later than January 1, 2018 • Minimum system efficiency of 60% Higher Heating
Value
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Helpful Links
• MEA EmPowerMdCHP Program (FY16 Not Posted/Released)
• Jane E. Lawton Conservation Loan Program (Managed by MEA)
• Maryland Clean Energy Center (MCEC) Financing Program
• BGE Smart Energy Savers Program® Combined Heat and Power (CHP)
• Pepco Combined Heat & Power (CHP) program
• Delmarva Power Combined Heat & Power (CHP) program
• Potomac Edison Combined Heat and Power Incentives Program
• Maryland utility territory map
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Questions?
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MEA CHP Presentation
Contact Info:
MICHAEL LESLIE, MSC Clean Energy CHP and C&I Program Manager
o:(410) 260-7543 m:(443) 694-7475 [email protected]
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Kathryn O'Rourke Katie O’Rourke is a Manager with ICF managing BGE’s Combined Heat and Power Program. Prior to joining ICF, Katie designed and managed energy efficiency programs in Massachusetts, New Hampshire, Rhode Island, and New York for National Grid and most recently held the position as Deputy Director of Energy Efficiency at the Massachusetts Department of Energy Resources. Katie has her BS in Chemical Engineering along with her CEM and LEED AP, and enjoys waterskiing on the lakes of her native MN – but only in the summer.
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79
UM Upper Chesapeake Medical Center
200-bed hospital and medical complex in Bel Air, MD CHP System: 2 MW with 350-ton absorption chiller BGE incentive: $1,747,500 Annual electric savings: 12,200 MWh
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80
Harrah’s Horseshoe Casino
Casino with 122,000 ft2 gaming floor, 100 tables, 2,500 slot machines, and multiple restaurants in Baltimore, MD CHP System: 1.2 MW BGE incentive: $1,271,178 Annual electric savings: 9,200 MWh
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Tim Witting Tim Witting of Lockheed Martin, a specialist in Combined Heat and Power, has been a business development representative for the Pepco & Delmarva Power Energy Savings Programs since 2012. With a background of 8 years in financial services and 6 years in energy efficiency, Mr. Witting consults with Maryland utility customers to advocate for the viable economic integration of CHP technology
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Pepco and Delmarva Power
2015 – 2017 Combined Heat and Power Incentive Program
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83
Combined Heat and Power in Maryland
More than 25 facilities Generating 722 MW of electricity Notable host facilities
• University of Maryland (2002) • National Archives (2011) • Food and Drug Administration (2004) • National Institutes of Health (2010)
Source: DOE.gov
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EmPOWER Maryland CHP Incentives
Incentives up to $2.5 million per project Approximately 30-40% of total project cost Program available until 12/31/2017 Eligible facilities
• Commercial • Industrial • Governmental • Multifamily
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Pepco & Delmarva Power Pipeline
• Project pipeline is diverse • 9 Pepco projects under contract for installation
• 20,218 MW
• 15 projects in active development • 32,468 MW
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Questions and Discussion
For more information:
Pepco C&I Energy Savings Program www.pepco.com/business
(866) 353-5798 [email protected]
Delmarva Power C&I Energy Savings Program
www.delmarva.com/business (866) 353-5799
Gene Smar Program Manager
(202) 872-2882 [email protected]
William R. Ellis Manager, Demand Side Management
(202) 872-2644 [email protected]
Tim Witting Business Development
(301) 275-9123 [email protected]
Bill Steigelmann Senior Engineering Consultant
(301) 640-2387 [email protected]
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Patrick J. Barrett Patrick J. Barrett has over 30 plus years of experience in the electric power industry. He has been involved in
numerous aspects of the industry focusing mainly on on-site power solutions. Solutions including reciprocating engines, gas turbines, hydro electric, power boilers and steam turbine generators. He also has experience in
combined heat and power and renewable energy including landfill gas to energy projects. He began his career as a junior staff engineer and successfully earned positions of increasing responsibility through project
management and project development.
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Alban Cat Combined Heat and Power June 2015
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Page 89
CATERPILLAR CONFIDENTIAL: YELLOW
Agenda • CHP Overview
• Turbines vs Reciprocating Engines
• Market Attributes
• High Level Go/No Considerations
• Other Key Considerations
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Page 90
CATERPILLAR CONFIDENTIAL: YELLOW
CHP Definition
Combined Heat and Power (CHP) also known as cogeneration, is broadly defined as…
“The simultaneous and sequential use of power and heat from the same fuel
source.”
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Page 91
CATERPILLAR CONFIDENTIAL: YELLOW
Combined Heat And Power (CHP) /Distributed Generation Basics
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Page 92
CATERPILLAR CONFIDENTIAL: YELLOW
• Heat Recovery Options
– steam-LP & HP • Typically from exhaust • Sometimes from IC JW-ebullient
– hot water • Typically from IC JW and CAC
– chilled water • Typically from steam or hot water fired absorption chillers • Sometimes steam turbine driven centrifugal chillers • Sometimes direct fired chillers
Combined Heat And Power (CHP) /Distributed Generation Basics
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Page 93
CATERPILLAR CONFIDENTIAL: YELLOW
Caterpillar Engine Generator Sets
•Cat Generator Sets - since 1939
•Built on successful platforms used in many applications
•Broadest kW range in the industry
•Wide variety of options, to complete integrated systems – enclosures, fuel tank bases, controls, etc.
•Local Cat dealer support
Diesel – from 8 kW to 16 MW
Gas – from 25 kW to 10 MW
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Page 94
CATERPILLAR CONFIDENTIAL: YELLOW
Solar Turbine Generator Sets
•Solar Turbines Founded - 1927
•Wholly-owned subsidiary of Caterpillar, Inc.
•~5,000 Employees world-wide
•World’s largest manufacturer of Combustion Turbines (1-15 MW)
•Experience –11,500 units to 90 countries
–1 billion + operating hours
•1.2 MW to 25 MW
•Applications 1-50 MW
–Combined Heat & Power
–Combined Cycle
–Peaking Solar Turbines
Company Headquarters
San Diego, California USA
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Page 95
CATERPILLAR CONFIDENTIAL: YELLOW
Fuel Cell Power from Caterpillar
•High electrical efficiency
• High value waste heat by-product for cogeneration
• Internally generated hydrogen from natural gas – operating at customer sites today
• 1 MW at King County Wastewater Treatment
DFC® 300 DFC® 1500 DFC® 3000
Multi-MW Grid Support
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Page 96
CATERPILLAR CONFIDENTIAL: YELLOW
Micro Turbines
Low NOx emissions – better than tough global standards
Built-in compressor means smaller footprint and easy installation •
One moving part: Minimal maintenance and downtime •
Patented air bearing: No lubricating oil or coolant •
Integrated utility synchronization and protection
Small, modular design allows for easy, low-cost installation •
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Page 97
CATERPILLAR CONFIDENTIAL: YELLOW
Combined Heat And Power (CHP) /Distributed Generation Basics
Exhaust Heat Recovery Steam Generator
•5 kW to 7 MW in a single unit •450F to 1,600F •Gas and Diesel Engines, Gas Turbines •Hot water and Steam
Manufacturers Cain Industries Vaporphase
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Page 98
CATERPILLAR CONFIDENTIAL: YELLOW
Combined Heat And Power (CHP) /Distributed Generation Basics
Single Effect: •Low Temperature Activation, 200 F •Low Cost •Simple system •Good Efficiency…
–0.7 COP
Double Effect: •High Temperature Activation, 350 F •Moderate Cost •More complex system •Higher Efficiency…
–1.2 COP
Wide range of models from <100 tons to >1,000 tons
Activated by Steam (15 psi - 125 psi), Hot Water or Exhaust
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Page 99
CATERPILLAR CONFIDENTIAL: YELLOW
Combined Heat And Power (CHP) /Distributed Generation Basics
6MW Electric Generation
Steam 10 million Btu/hr
Thermal fluids 11 million Btu/hr
145° F 6 Million Btu/hr
Engine Generator 1
Engine Generator 2
Exhaust Heat
Recovery Steam
Generator
Engine Auxiliary
Loop
Engine Jacket Loop
220° F 5 Million Btu/hr
Separate Jacket and Exhaust Heat Recovery
Low/High Pressure Steam
220 F Hot Water
1 + MW Engines
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CATERPILLAR CONFIDENTIAL: YELLOW
Engine Low Temperature Circuit ( 32C to 54C )
Fuel
Exhaust Gas
Engine High Temp.
Circuit
CAT
Electric Power
Horizontal Radiators (Table Coolers)
Air 20 +35C
99C
85C
500C
Air 80 +90C - ideally 140.000m3/h
Air 20 +35C
Hot Air Generation: Tunnel Drying, Brick Manufacturing
Thermal Recovery Applications
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Page 101
CATERPILLAR CONFIDENTIAL: YELLOW
Engine Low Temperature Circuit ( 32C to 54C )
Fuel
Exhaust Gas
Engine High Temp.
Circuit
CAT
Electric Power
Table Radiators
90C
95C
85C
To Customer
500C
110C
100C
70C From Customer
Hot Water Generation: Industrial / Commercial
Thermal Recovery Applications
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Page 102
CATERPILLAR CONFIDENTIAL: YELLOW
Engine Low Temperature Circuit ( 32C to 54C )
Fuel
Exhaust Gas
Engine High Temp.
Circuit
CAT
Electric Power
Hot Water & Steam Heat Recovery: Industrial / Commercial
Radiators
70C
90C
95C
85C
From Customer
To Customer
500C
90C
95° C
Steam
Feeder tank
200C
Condensate
Saturated steam 8-15bars
Thermal Recovery Applications
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CATERPILLAR CONFIDENTIAL: YELLOW
Which Prime mover fits best my application?
• Gas Engines • Gas Turbines
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CATERPILLAR CONFIDENTIAL: YELLOW
• Low emissions levels/ Beneficial use of natural gas
• High reliability
• High availability
• Excellent for continuous, high load applications
• Low life cycle costs
• Quick delivery and ‘on-line’ capabilities
• Proven technology in many applications
Gas Engine / Turbine Similarities
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CATERPILLAR CONFIDENTIAL: YELLOW
Gas Engine Advantages • Higher fuel efficiency
• Lower Initial costs for small schemes (<10 MWe)
• Better suited for variable load applications
• More tolerant to high ambient conditions and high elevations (law of physics – all is linked to CR)
• Lower fuel pressure requirement
• Accept low BTU fuels
• On line in less than 30 sec
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CATERPILLAR CONFIDENTIAL: YELLOW
• Well suited for CHP w/ large heat to ekW ratio • Higher exhaust temperature :480 C / 900 F • Low weight & minimal space requirement • Very simple design • Lower emissions capabilities • Less down time per machine
- Replacement at overhaul • Ideal for 24/7 operation.
- Turbines do not like starts & stops • Accept high BTU fuels
- No detonation – low sensibility to MN - Can burn low energy fuels as well
Gas Turbine Advantages
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CATERPILLAR CONFIDENTIAL: YELLOW
Gas Engines vs. Turbines
Heat to Power Need Ratio Type of Heat Needed Load Electricity Cost Driver Heat / Cooling Cost Driver
Gas Engine 1:1 Hot Water, Some Steam More Variable
Turbines 2:1 Mostly Steam More Constant
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CATERPILLAR CONFIDENTIAL: YELLOW
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CATERPILLAR CONFIDENTIAL: YELLOW
WHO IS THE WINNER, Turbine or Gas Engine ?
• In fact in 95% of cases there’s no contest • If the NPV evaluation is made correctly the choice is evident
• Low temp, low pressure gas, high altitude will go engines • Large Heat / ekW ratio schemes, high pressure steam will go turbines • Hybrid systems with both gas turbines and gas engines are possible.
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CATERPILLAR CONFIDENTIAL: YELLOW
• Geographically – High electric costs – Relatively low fuel costs – Adequate grant/funding levels – RPS-compliant & voluntary
• Site specific – High electric costs – Solid load factor – Coincident thermal and electric load profile – Available opportunity fuel, ADG, LFG etc – Site power quality, high reliability requirement
Target Market Attributes
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CATERPILLAR CONFIDENTIAL: YELLOW
Source = US DOE Energy Information Administration
US Market Driver
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
Year
Avg. Commercial Natural Gas Price Avg. Commercial Retail Electricity Price
Forecast
Spark Spread = CHP Business Case
Forecast Spark Spread
Historical $/10
00ft3
C
ent k
W-h
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CATERPILLAR CONFIDENTIAL: YELLOW
2011 Electric Prices- US Overview
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CATERPILLAR CONFIDENTIAL: YELLOW
Financial Feasibility-First Pass •Most CHP plants are economically driven. •Economics are based on rate disparity between utility energy and CHP Energy costs. “Spark Spread”
Combined Heat And Power (CHP) /Distributed Generation Basics
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CATERPILLAR CONFIDENTIAL: YELLOW
High Level First Look
Start with the obvious deal killers-Fatal Flaw Analysis – Air quality permitting – Waste water discharge permitting – Adequate space – Adequate facility utilities
• Electrical • Water • Fuel • Waste water
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CATERPILLAR CONFIDENTIAL: YELLOW
High Level First Look
Move to high level feasibility analysis – Identify and stack $/kW pricing components (running costs)
• Fuel -Typically biggest cost component
• Capital recovery • O & M • Thermal credit
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CATERPILLAR CONFIDENTIAL: YELLOW
High Level First Look
• Thermal Credit –Understand technology and model specific recoverable heat –Determine existing boiler efficiency –Calculate avoided boiler fuel cost –Convert to cents/kWh
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CATERPILLAR CONFIDENTIAL: YELLOW
High Level First Look
• Roll Up of Stacked Running Costs & Credits (cents/kWh) Plus Fuel Plus Capital Recovery Plus O & M Less Thermal Credits Total cents/kWh • If this beats present retail purchase price, all in, including demand charges, investigate further. • Potentially pull in engineer or developer. • Commission a Feasibility study
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CATERPILLAR CONFIDENTIAL: YELLOW
Key Evaluation Points
Understand the details of the customers utility costs • Tariff • Demand Charge $/kW-Month Peak and off Peak
- Month To Month - Ratcheted
• Energy Charge cents/kWh Peak and Off Peak • Standby Charges & Non availability penalties • Customer Capacity Load Curves • Existing or Pending CHP Incentives
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CATERPILLAR CONFIDENTIAL: YELLOW
Demand Charges
• Utility Charges Customer By Monthly Demand Put on Their System By Customer Facility
– Typically Highest 20 Minute Demand in kW During Utility Peak Period – Some Are Month By Month
– Others are Ratcheted – Pay peak demand for that month and then 80-90 % of that Cost For Following 11 Months. Unless Customer Establishes A new Peak Demand In The Out Months
Can Significantly Impact Plant Cost And Required Redundancy
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CATERPILLAR CONFIDENTIAL: YELLOW
Utility Energy Charges*
• Utility Charges Customer By Monthly kWh Consumption – Typically Utility Peak Rate – And Associated Off Peak Rate
Standby Charges* • For CHP The Utility Will Charge Fee To Have Capacity “Standing By” If The Customer Plant Is Off Line. In An Amount Equal To The Customers Plant Capacity.
*In Some Areas These Charges Are Going Away
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CATERPILLAR CONFIDENTIAL: YELLOW
Gas for DG and CHP is Emerging as the Preferred Fuel Choice
• Gas is more widely available today • Public Policy and the local ‘green market’ are causing industry to re-think gas DG/CHP applications • Spark spread improvements are causing users to rethink the value of DG/CHP with turbines and gas engines
•There is a strong opportunity for gas fired equipment
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Questions?
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