National Renewable Energy Laboratory 1617 Cole Boulevard Golden, Colorado 80401-3393 NREL is a U.S. Department of Energy Laboratory Operated by Midwest Research Institute Battelle

Contract No. DE-AC36-99-GO10337

November 2003 NREL/TP-620-34783

Gas-Fired Distributed Energy Resource Technology Characterizations

Larry Goldstein National Renewable Energy Laboratory

Bruce Hedman Energy and Environmental Analysis, Inc.

Dave Knowles Antares Group, Inc.

Steven I. Freedman Technical Consultant

Richard Woods Technical Consultant

Tom Schweizer Princeton Energy Resources International Prepared under Task No. AS73.2002

NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.

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Gas-Fired Distributed Energy Resource Technology Characterizations November 2003 Page i

Acknowledgments This first edition of Gas-Fired Distributed Energy Resource Technology Characterizations was prepared through a collaboration of the National Renewable Energy Laboratory (NREL), the Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) and the Gas Research Institute (GRI). Overall project management for this multiyear effort was provided by Larry Goldstein (Energy Analysis Office, NREL) with funding support from Susan Holte (DOE EERE). Contributions were made by the following authors:

Introduction and Overview Larry Goldstein, National Renewable Energy Laboratory Bruce Hedman, Energy and Environmental Analysis, Inc.

Dave Knowles, Antares Group, Inc.

Reciprocating Engines Bruce Hedman, Energy and Environmental Analysis, Inc.

Dave Knowles, Antares Group, Inc.

Small Gas Turbine Systems Bruce Hedman, Energy and Environmental Analysis, Inc.

Steven I. Freedman, Technical Consultant Dave Knowles, Antares Group, Inc.

Microturbine Systems

Bruce Hedman, Energy and Environmental Analysis, Inc. Steven I. Freedman, Technical Consultant

Dave Knowles, Antares Group, Inc.

Fuel Cell Systems Bruce Hedman, Energy and Environmental Analysis, Inc.

Richard Woods, Technical Consultant Dave Knowles, Antares Group, Inc.

Small Steam Turbine Systems

Bruce Hedman, Energy and Environmental Analysis, Inc. Steven I. Freedman, Technical Consultant

Dave Knowles, Antares Group, Inc.

Stirling Engine Systems Dave Knowles, Antares Group, Inc.

Bruce Hedman, Energy and Environmental Analysis, Inc.

Financial Evaluations Tom Schweizer, Princeton Energy Resources International

Gas-Fired Distributed Energy Resource Technology Characterizations November 2003 Page ii

The Gas Research Institute assigned the Gas Technology Institute (GTI) responsibility for a major collaborative role in developing and shaping this report. Critical review of draft material and contributions to the report content were provided by the following GTI staff, managed by Director John Kelly, Distributed Energy Resources:

Reciprocating Engines: Kevin Olsen, Todd Kollross, and William Staats. Small Gas Turbines: Kevin Olsen, Todd Kollross, Greg Rouse, and William Staats.

Microturbines: Kevin Olsen, Todd Kollross, Greg Rouse, William Staats, and Richard Sweetser (EXERGY Partners Corp.). Fuel Cells: Mark Richards, Robert Remick, Leonard Marianowski, Charles Berry, and William Staats. Small Steam Turbines: Greg Rouse and William Staats. Stirling Engines: William Staats.

In addition to the named reviewers above, the project manager and authors wish to thank and acknowledge the contributions of the numerous invited peer reviewers that participated in an Internet-based review of the six technology characterizations and the individuals that attended the technical workshop and provided additional comment and review. Also, we would like to recognize Princeton Energy Resources Internationals Tom Schweizer and John Rezaiyan for their added critical review of all the technology characterization drafts and DOE EEREs Debbie Haught and Pat Hoffman for their many recommendations and contributions during the various stages of document development and peer review. Document preparation and editing, as well as critical technical review, were performed by staff at NREL, including Larry Goldstein, Bill Babiuch, and Eldon Boes of the Energy Analysis Office; and Michelle Kubik of Communications.

Gas-Fired Distributed Energy Resource Technology Characterizations November 2003 Page iii

Table of Contents

Acknowledgments i List of Figures vii List of Tables viii 1. Introduction and Overview 1-1

1.1 Project Background 1-1 1.2 Technology Characterization Approach 1-1 1.3 DER Power-Generation Applications 1-2 1.4 Gas-Fired DER Applications and Markets 1-5 1.5 Technology Overview 1-5

1.5 Document Overview 1-9 2. Reciprocating Engines 2-1

1.0 Overview 2-1 2.0 Applications 2-2

2.1 Power-Only 2-3 2.2 Combined Heat and Power 2-4

3.0 Technology Description 2-6 3.1 Basic Process and Components 2-6 3.2 Types of Reciprocating Engines 2-7 3.3 Design Characteristics 2-12

4.0 Cost and Performance Characteristics 2-13 4.1 System Performance 2-13 4.2 Combined Heat and Power Performance 2-16 4.3 Performance and Efficiency Enhancements 2-18 4.4 Capital Cost 2-18 4.5 Maintenance 2-21 4.6 Fuels 2-22 4.7 Availability and Life 2-25

5.0 Emission Characteristics 2-26 5.1 Control Options 2-26 5.2 System Emissions 2-30

6.0 Key Technology Objectives 2-31 7.0 Advanced Technology Projections 2-34 8.0 References 2-41

3. Small Gas Turbine Systems 3-1

1.0 Overview 3-1 2.0 Applications 3-2

2.1 Power-Only 3-2 2.2 Combined Heat and Power 3-3

3.0 Technology Description 3-5 3.1 Basic Process and Components 3-5 3.2 Types of Gas Turbines 3-6 3.3 Design Characteristics 3-6

4.0 Cost and Performance Characteristics 3-7 4.1 System Performance 3-8 4.2 Combined Heat and Power Performance 3-13

Gas-Fired Distributed Energy Resource Technology Characterizations November 2003 Page iv

4.3 Performance and Efficiency Enhancements 3-15 4.4 Capital Cost 3-16 4.5 Maintenance 3-20 4.6 Fuels 3-21 4.7 Availability and Life 3-22

5.0 Emission Characteristics 3-22 5.1 Control Options 3-23 5.2 System Emissions 3-26

6.0 Key Technology Objectives 3-27 7.0 Advanced Technology Projections 3-32 8.0 References 3-39

4. Microturbine Systems 4-1

1.0 Overview 4-1 2.0 Applications 4-1

2.1 Power-Only 4-2 2.2 Combined Heat and Power 4-3

3.0 Technology Description 4-4 3.1 Basic Process and Components 4-4 3.2 Types of Microturbines 4-4 3.3 Design Characteristics 4-8

4.0 Cost and Performance Characteristics 4-9 4.1 System Performance 4-9 4.2 Combined Heat and Power Performance 4-17 4.3 Performance and Efficiency Enhancements 4-18 4.4 Capital Cost 4-20 4.5 Maintenance 4-23 4.6 Fuels 4-24 4.7 Availability and Life 4-25

5.0 Emission Characteristics 4-25 5.1 Control Options 4-25 5.2 System Emissions 4-27

6.0 Key Technology Objectives 4-27 7.0 Advanced Technology Projections 4-31 8.0 References 4-40

5. Fuel Cell Systems 5-1

1.0 Overview 5-1 2.0 Applications 5-2

2.1 Power-Only 5-3 2.2 Combined Heat and Power 5-4

3.0 Technology Description 5-4 3.1 Basic Process and Components 5-5 3.2 Types of Fuel Cells 5-9 3.3 Design Characteristics 5-12

4.0 Cost and Performance Characteristics 5-13 4.1 System Performance 5-13 4.2 Combined Heat and Power Performance 5-18 4.3 Performance and Efficiency Enhancements 5-19 4.4 Capital