Combined Heat & Power (CHP) Opportunities for Hospital...
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www.midwestcleanenergy.org Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18, 2014 Cliff Haefke
Transcript of Combined Heat & Power (CHP) Opportunities for Hospital...
www.midwestcleanenergy.org
Combined Heat & Power (CHP)
Opportunities for Hospital Facilities
Iowa Society of Healthcare Engineers (ISHE)
September 18, 2014
Cliff Haefke
o Increase overall energy efficiency and reduce utility bill
expenditures?
o Reduce carbon emissions?
o Increase energy reliability, decrease reliance on the grid, and
support grid T&D?
o Show more energy savings and reduce more emissions than
comparably sized PV and wind technologies?
o Support nation’s energy goals and is commercially available today?
The Answer? CHP
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What technology can…
o Healthcare organizations spend > $6.5B annually
o Every $1 a non-profit healthcare organization saves on energy is
equivalent to generating $20 in new revenues for hospitals
o For-profit hospitals can raise their earnings per share 1¢ by reducing
energy costs just 5%
o CHP systems can reduce energy costs and carbon emissions
o CHP systems can maintain hospitals’ power and heat during man-
made and natural disasters
o 200+ hospitals operate CHP systems today
o 7 of Top 16 U.S. hospitals use CHP according to US News
Why CHP in Hospitals?
1)ENERGY STAR - http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf
2) DOE CHP Installation Database
3)US News’ 2013-2014 Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY
Presbyterian, NYU Langone, Indiana University)
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US DOE CHP Technical Assistance Partnerships (TAPs)
o U.S. DOE CHP Technical Assistance Partnerships (TAPs) originally established in 2001 by U.S. DOE and ORNL to support DOE CHP Challenge (formally known as RACs and CEACs)
o Today the 7 TAPs promote the use of CHP, District Energy, and Waste Heat to Power Technologies
o Strategy: provide a technology outreach program to end users, policy, utility, and industry stakeholders focused on:
– Market analysis & evaluation
– Education & outreach
– Technical assistance
o Midwest Website: www.midwestCHPTAP.org
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DOE CHP Technical Assistance Partnerships (CH P TAPs)
MIDWEST www.midwestCHPTAP.org
PACIFIC www.pacificCHPTAP.org
Terry Clapham
California Center for Sustainable Energy
858-244-4872
terry.clapham@energycenter. org
Gene Kogan
California Center for Sustainable Energy
858-633-8561
DOE CHP Technical Assistance Partnerships (TAPs): Program Contacts
Dave Sjoding
Washington State University
360-956-2004
[email protected] .edu Cliff Haefke
University of Illinois at Chicago
312-355-3476
John Cuttica
University of Illinois at Chicago
312-996-4382
··• SOUTHWEST www.southwestCHPTAP.or
Christine Brinker
Southwest Energy Efficiency Project
720-939-8333
Claudia Tighe
CHP Deployment Lead
Office of Energy Efficiency and Renewable Energy
U.S. Department of Energy
Phone: 202-287-1 899
E-mail: [email protected]
Jamey Evans
Project Officer. Golden Field Office
Office of Energy Efficiency and Renewable Energy
U.S. Department of Energy
Phone: 720-356-1536
E-mail: jam [email protected]
Patti Welesko Garland CHP Technical Support Coordinator DOE CHP TAPs Coordinator
Oak Ridge National Laboratory Supporting. Office of Energy Efficiency Supporting. Office of Energy and Renewable Energy
U.S. Department of Energy
Phone: 202-586-3753
E-mail: [email protected]
NORTHEAST www.northeastCHPTAP.org
Tom Bourgeois
Pace University
914-422-4013
Beka Kosanovic
University of Massachusetts Amherst
413-545-0684
Jim Freihaut
The Pennsylvania State University
814-863-0083
jdf I I @psu.edu
SOUTHEAST www.southeastCHPTAP.org
Isaac Panzarella
North Carolina State University
919-515-0354
Ted Bronson
Power Equipment Associates
Efficiency and Renewable Energy
Phone: 630-248-8778
E-mail: [email protected]
o CHP: The Concept
o CHP: The Business Case
o CHP Project Profiles
o Next Steps & Incentives
Outline
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Fuel Utilization by U.S. Utility Sector
Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf
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CHP: A Key Part of Our Energy Future
o Form of Distributed Generation (DG)
o An integrated system
o Located at or near a building / facility
o Provides at least a portion of the electrical load and
o Uses thermal energy for:
– Space Heating / Cooling
– Process Heating / Cooling
– Dehumidification
CHP provides
efficient, clean,
reliable, affordable
energy – today and
for the future.
Source:
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdf
s/chp_clean_energy_solution.pdf
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CHP Technology Components
Prime Mover
Reciprocating Engines
Combustion Turbines
Microturbines
Steam Turbines
Fuel Cells
Electricity
On-Site Consumption
Sold to Utility
Fuel
Natural Gas
Propane
Biogas
Landfill Gas
Coal
Steam
Waste Products
Others
Generator
Heat Exchanger
Thermal
Steam
Hot Water
Space Heating
Process Heating
Space Cooling
Process Cooling
Dehumidification
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Emerging Drivers for CHP
o Benefits of CHP recognized by
policymakers o President Obama signed an Executive Order to
accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade
o State Portfolio Standards (RPS, EEPS, Tax Incentives, Grants, standby rates, etc.
o Favorable outlook for natural gas supply and price in North America
o Opportunities created by environmental drivers
o Energy resiliency and critical infrastructure
DOE / EPA CHP Report (8/2012)
Executive Order: http://www.whitehouse.gov/the-press-
office/2012/08/30/executive-order-accelerating-
investment-industrial-energy-efficiency
Report:
http://www1.eere.energy.gov/manufacturing/distributedene
rgy/pdfs/chp_clean_energy_solution.pdf
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CHP Is Used at the Point of Demand
4,200 CHP Sites
(2012)
82,400 MW –
installed capacity
Saves 1.8 quads of
fuel each year
Avoids 241 M metric
tons of CO2 each year
87% of capacity – industrial
71% of capacity – natural
gas fired
Source: ICF International
o Concern about energy costs
o Concern about power
reliability
o Concern about sustainability
and environmental impacts
o Long hours of operation
o Existing thermal loads
o Central heating and cooling
plant
Favorable Characteristics for
CHP Applications
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o Future central plant
replacement and/or
upgrades
o Future facility expansion or
new construction projects
o EE measures already
implemented
o Access to nearby renewable
fuels
o Facility energy champion
Over 200 hospitals are using CHP today…
Source: ICF CHP Installation Database, 2013
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State # Sites Capacity (MW)
AR 1 8.5
AZ 2 1.7
CA 50 170.8
CT 12 28.5
FL 7 24.9
HI 3 1.5
IA 4 5.5
IL 13 41.4
IN 2 3.5
MA 9 108.8
MD 1 15.0
ME 2 5.1
MI 6 11.6
MN 4 30.1
MO 1 5.0
State # Sites Capacity (MW)
MS 1 4.2
NC 2 5.8
NH 2 9.2
NJ 8 11.1
NV 1 1.0
NY 39 56.1
OH 3 2.2
PA 11 83.9
RI 7 30.1
TN 2 3.5
TX 7 72.4
VA 3 3.2
VT 2 0.5
WI 7 11.7
o 212 facilities generating 756.6 MW
CHP Systems (#) CHP Gen Capacity (MW)
Existing CHP Installations in U.S. Hospitals
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Boiler / Steam
Turbine Combined Cycle Gas Turbine
Recip Engine
Fuel Cell
Microturbine
Other Waste
Heat
Boiler / Steam Turbine Combined Cycle Gas Turbine
Recip Engine
Fuel Cell
Microturbine
Other
Waste Heat
Source: ICF CHP Installation Database, 2013
o Sizes TYPICALLY range from 100s of kWs to several MWs (depending
on facility size and usually below 10 MW)
o Common CHP prime mover types in hospitals are reciprocating
engines, combustion turbines, and/or steam turbines (mostly fueled by
natural gas)
o Most hospital CHP systems are sized for the thermal load requirements
with the resulting electric power generated used to first offset the power
purchased from the utility grid (excess power can be sold to the utility)
o CHP systems do not replace the need for emergency generator sets to
meet the “life critical loads” of a hospital
– Can reduce the number and capacity of the emergency generators
– Can increase the total electric reliability for the hospital
Typical Hospital CHP System
Configurations
19 Source:
http://www.midwestcleanenergy.org/Archive/pdfs/US
HospitalGuidebook_111907.pdf
Emergency Generators
o Minimum requirement, sized to
meet “life critical loads
o Hospitals are installing larger
generators to protect more and
more hospital loads
o Diesel fueled – high emissions &
limited amount of stored fuel (hours
versus days of operation)
o Not designed or capable of
continuous operation for long
periods of time – rarely operates
o Financial payback only in times of
emergency
Emergency Generators vs.
CHP Systems CHP Systems
o Sized to meet thermal or electric
loads – operates continuously to
meet those loads
o Natural gas fueled – low emissions
o Does not replace emergency
generator set for “life critical” loads
o Reduces overall size and capacity
of emergency generator sets
o Emergency generator sets become
backup to the backup; much higher
reliability
o Good financial return
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o Reduces energy costs
o Increases energy efficiency, helps manage
costs, maintains jobs, etc.
o Reduces risk of electric grid disruptions &
enhances energy reliability
o Provides stability in the face of uncertain
electricity prices
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CHP Benefits to Hospitals
Project Profiles: Example CHP Installations
Example Scenario CHP Facility
Hospital Utilities Expansion Northwest Community Hospital
Improved ENERGY STAR Building Score ProMedica Health System – Wildwood
Improved LEED Scoring – LEED Platinum Dell Children’s Medical Center of Central Texas
Alternative Financing Jesse Brown VA Medical Center
Addressing Momentary Power Interruptions Lake Forest Hospital
Disaster Relief – Hurricane Katrina Mississippi Baptist Medical Center
Disaster Relief – Super Storm Sandy Danbury Hospital
Disaster Prevention – Snow Storm Presbyterian Homes
Energy Independence Thermal Energy Corporation (TECO)
Energy Independence & Unique Partnerships Gundersen Lutheran Health System (La Crosse)
Energy Independence & Public / Private Partnerships Gundersen Lutheran Health System (Onalaska)
Project Profile: Utilities Expansion
Northwest Community
Hospital
Arlington Heights, IL
Capacity: 4.6 MW
Fuel: Natural Gas
Prime Mover: Recip. Engines
Installed: 1997 / 2005
"We said, ‘Well, if we're going to centralize it all, doesn't it make sense to do a CHP—and generate our
own electricity, to reduce our demand load, and then capture the heat of those engines and utilize all
that for heating and/or cooling?' "
Charlie Stevenson, Director of Plant Operations
Northwest Community Hospital
"The beauty of this CHP to him was not simply the return for the cogen system, but the fact that these
savings would pay for the central energy plant too.”
Joe Sinclair, Ballard Engineering
Project Profile: Alternative Financing
Jesse Brown VA
Medical Center
Chicago, IL
Capacity: 3.4 MW
Fuel: Natural Gas
Prime Mover: Combustion Turbine
Installed: 2003
Energy Systems Group (ESG) raised $13 million funding for design,
construction, and installation of the project by creating an owner trust,
which then sold bonds used for financing. In turn, the owner trust
contracted with ESG to operate and maintain the CHP system for 25 years.
Source:http://www.distributedenergy.com/DE/Articles/Chicag
o_VA_Hospital_Takes_Control_of_Its_Electrici_1838.aspx
Project Profile: Increased ENERGY STAR Building Score
ProMedica Health
System - Wildwood
Toledo, OH
Capacity: 130 kW
Fuel: Natural Gas
Prime Mover: Microturbines
Installed: 2013
Benefits include
a reduction in annual
energy costs and
greenhouse gas
emissions as well as a
higher ENERGY STAR
building score
Source: www.gemenergy.com
Project Profile: LEED Platinum
Dell Children’s Medical
Center of Central Texas
Austin, TX
Capacity: 4.6 MW
Fuel: Natural Gas
Prime Mover: Combustion Turbines
Installed: 2009
First healthcare facility in the
world to achieve a LEED Platinum
certification by the U.S. Green
Building Council (USGBC)
Project Profile: Addressing Instantaneous Power Interruptions
Lake Forest Hospital
Lake Forest, IL
Capacity: 3.2 MW
Fuel: Natural Gas
Prime Mover: Recip. Engines Installed: 1997
Annual Instantaneous Power
Interruptions were reduced from
50 down to 2 due to CHP
installation
Project Profile: Disaster Relief, Hurricane Katrina
Mississippi Baptist
Medical Center
Jackson, MS
Capacity: 4.2 MW
Fuel: Natural Gas
Prime Mover: Combustion Turbines
Installed: 1991
The independence provided by the CHP system allowed MBMC to continue operation
relatively unaffected during Hurricane Katrina in 2005. As soon as power reliability became
a factor MBMC performed a load shed, switched off of the power grid, and continued
operation in turbine-only mode. MBMC was the only hospital in the Jackson metro area to
remain nearly 100% operational. After approximately 50 hours, the power reliability issue
was addressed and MBMC connected to the power grid and returned to normal operation.
Source: http://www.southeastcleanenergy.org/resources/reports/CHP-MBMC.pdf
Project Profile: Disaster Relief, Super Storm Sandy
Danbury Hospital
Danbury, Connecticut
Capacity: 4.5 MW / 3 MW Standby
Fuel: Natural Gas / Diesel
Prime Mover: Combustion Turbine /
Recip. Engine Backups
Installed: 2011
During the storm, the facility operated without any loss of
power and, despite most of the businesses in the
surrounding area being without power for several days,
Danbury Hospital still had lights and heat. The CHP facility
enabled the hospital to be fully functional during the storm
and continued conducting business and providing the
critical and necessary health care for patients. Source:
http://www.newstimes.com/news/article/D
anbury-Hospital-generates-power-for-its-
patients-1345938.php#photo-829406
Project Profile: Addressing Extended Power Outages
Presbyterian Homes
Evanston, IL
Capacity: 2.4 MW
Fuel: Natural Gas
Prime Mover: Recip. Engines
Installed: 2001 “The environment we provide to elderly adults
had everything to do with our decision to pursue
power generation. Loss of power isn’t an option.
Lives depend on it.”
- Keith Stohlgren, V/P Operations
“We had no power for nine hours one cold, winter
day during an ice storm. The loss of power forced
us to take immediate, aggressive measures to
ensure the comfort and safety of our residents.”
– Nancy Heald Tolan, Director of Facilities
Management
Ice storm in winter of 1998
knocked out power for 9 hours.
• 600 senior residents were
transferred to safety
• CHP installed to avoid future
outages
Project Profile: 100% Energy Independence
Thermal Energy
Corporation (TECO)
Houston, TX
Capacity: 48 MW
Fuel: Natural Gas
Prime Mover: Comb. Turbines
Installed: 2010
TECO operates the largest chilled water district energy system in the U.S. at
the largest medical center in the world, the Texas Medical Center.
The CHP system can operate as a baseload system to serve 100% of the TECO
plant peak electrical load and 100% of TECO customers’ peak process and
space heating loads.
Project Profile: Energy Independence & Unique Partnerships
Gundersen Lutheran
& City Brewery
La Crosse, IL
Capacity: 633 kW
Fuel: Biogas
Prime Mover: Recip. Engine
Installed: 2009
Hospital owns CHP
system at local brewery.
Heat from CHP system
used to heat digester,
electricity is sold to utility,
and electric sales/credit
go to hospital.
Project Profile: Public & Private Partnerships
Gundersen Lutheran
& County Landfill
Onalaska, IL
Capacity: 1.2 MW
Fuel: Landfill Gas
Prime Mover: Recip. Engine
Installed: 2011
Instead of simply generating
electricity at landfill, landfill gas is
piped 2 miles to hospital where CHP
system provides all required
electricity and thermal energy. Claim
to be first energy independent
hospital in U.S.
Advanced Manufacturing Office (AMO) manufacturing.energy.gov 34
CHP TAP Project Development Technical Assistance
Screening and Preliminary
Analysis
Feasibility Analysis
Investment Grade Analysis
Procurement, Operations,
Maintenance, Commissioning
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
o High level assessment
to determine if site
shows potential for a
CHP project
– Qualitative Analysis
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• Energy Consumption & Costs
• Estimated Energy Savings &
Simply Payback
• CHP System Sizing
– Quantitative Analysis
• Understanding project drivers
• Understanding site peculiarities
DOE TAP CHP Screening Analysis
Annual Energy Consumption
Base Case CHP Case
Purchased Electricty, kWh 88,250,160 5,534,150
Generated Electricity, kWh 0 82,716,010
On-site Thermal, MMBtu 426,000 18,872
CHP Thermal, MMBtu 0 407,128
Boiler Fuel, MMBtu 532,500 23,590
CHP Fuel, MMBtu 0 969,845
Total Fuel, MMBtu 532,500 993,435
Annual Operating Costs
Purchased Electricity, $ $7,060,013 $1,104,460
Standby Power, $ $0 $0
On-site Thermal Fuel, $ $3,195,000 $141,539
CHP Fuel, $ $0 $5,819,071
Incremental O&M, $ $0 $744,444
Total Operating Costs, $ $10,255,013 $7,809,514
Simple Payback
Annual Operating Savings, $ $2,445,499
Total Installed Costs, $/kW $1,400
Total Installed Costs, $/k $12,990,000
Simple Payback, Years 5.3
Operating Costs to Generate
Fuel Costs, $/kWh $0.070
Thermal Credit, $/kWh ($0.037)
Incremental O&M, $/kWh $0.009
Total Operating Costs to Generate, $/kWh $0.042
o 10% Federal Investment Tax Credit (ITC) for CHP
o DOE Better Buildings Challenge, Financial Allies have
committed nearly $2B to fund EE projects*
o Waste Heat Recovery (WHR) is eligible in
MidAmerican Energy Efficiency Resource Standard
(EERS)
o 3rd Party Build-Own-Operators of CHP Opportunities?
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– How does the July 2014 Iowa Supreme Court Ruling on solar projects impact CHP 3rd Party Ownership?
* http://www4.eere.energy.gov/challenge/allies/financial-allies
Incentives and Financing
o Healthcare organizations spend > $6.5B annually
o Every $1 a non-profit healthcare organization saves on energy is
equivalent to generating $20 in new revenues for hospitals
o For-profit hospitals can raise their earnings per share 1¢ by reducing
energy costs just 5%
o CHP systems can reduce energy costs and carbon emissions
o CHP systems can maintain hospitals’ power and heat during man-
made and natural disasters
o 200+ hospitals operate CHP systems today
o 7 of Top 16 U.S. hospitals use CHP according to US News
Why CHP in Hospitals?
1)ENERGY STAR - http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf
2) DOE CHP Installation Database
3)US News’ 2013-2014 Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY
Presbyterian, NYU Langone, Indiana University)
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Questions Cliff Haefke
(312) 355-3476
A program sponsored by
www.MidwestCHPTAP.org
Other Resources o Powering the Future of Health Care – Financial and
Operational Resilience: A CHP Guide for
Massachusetts Hospital Decision Makers (HCWH)
o Advanced Energy Design Guide for Large Hospitals
(ASHRAE)
o Advanced Energy Design Guide for Small Hospitals
and Healthcare Facilities (ASHRAE)
o Combined Heat & Power (CHP) Resource Guide for
Hospital Applications (Midwest CEAC)
o Guide to Using Combined Heat and Power for
Enhancing Reliability and Resiliency in Buildings
(DOE/EPA)
1 - http://www.greenribboncommission.org/downloads/CHP_Guide_091013.pdf
2 - https://www.ashrae.org/standards-research--technology/advanced-energy-design-guides
3 - https://www.ashrae.org/standards-research--technology/advanced-energy-design-guides
4 - http://www.midwestchptap.org/Archive/pdfs/USHospitalGuidebook_111907.pdf
5 - http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_for_reliability_guidance.pdf 39
