Taking Advantage of Combined Heat and Power (CHP) · 7/17/2013 · CHP Challenge o Today the 8...
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www.midwestcleanenergy.org Taking Advantage of Combined Heat and Power (CHP) OMA Energy Efficiency & CHP Work Group July 17 th , 2013 Presented by: John Cuttica Energy Resources Center University of Illinois at Chicago
Transcript of Taking Advantage of Combined Heat and Power (CHP) · 7/17/2013 · CHP Challenge o Today the 8...
www.midwestcleanenergy.org
Taking Advantage of Combined Heat
and Power (CHP)
OMA Energy Efficiency & CHP Work Group
July 17th, 2013
Presented by:
John Cuttica
Energy Resources Center
University of Illinois at Chicago
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?
What technology can…
The Answer? CHP
o Overview of Combined Heat and Power (CHP)
o CHP Market and Market Drivers
o Favorable CHP Policies
o Market Potential
Presentation Outline
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o U.S. DOE Midwest Clean Application Centers originally
established in 2001 by U.S. DOE and ORNL to support DOE
CHP Challenge
o Today the 8 Centers promote the use of Conventional CHP,
Waste Heat to Power CHP and District Energy 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.midwestcleanenergy.org
US DOE Regional Clean Energy
Application Centers (CEACs)
Fuel Utilization by U.S. Utility Sector
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Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf
Conventional Energy System
• Customer purchases power
from grid (central station)
• Power plant economy of scale
• 100 units input = 33 units of power
• Remainder of energy lost (heat)
• On-site generation of steam/hot
water (boilers/furnaces)
• 100 units input = 60 to 80 units of heat
• Typical grid power + onsite heat • Efficiency depends on heat/power
ratio
• 45% to 55% combined efficiency is
common
Central
Station
100 units
fuel input
33 units electric
67 units thermal
rejected / lost
Furnace /
Boiler
80 units thermal
20 units thermal
rejected / lost
100 units
fuel input
Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy
(heat and electricity) from a single fuel/energy source
Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)
Separate Energy Delivery:
• Electric generation – 33%
• Thermal generation - 80%
• Combined efficiency – 45% to 55%
CHP Energy Efficiency (combined heat and power)
70% to 85%
Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy
(heat and electricity) from a single fuel/energy source
Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)
Simultaneous generation of heat
and electricity
Fuel is combusted/burned for
the purpose of generating heat
and electricity
Normally sized for thermal load
to max. efficiency – 70% to
>85%
Minimum efficiency of 60%
normally required
Normally non export of electricity
Low emissions – natural gas
Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy
(heat and electricity) from a single fuel/energy source
Waste Heat to Power CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP)
Fuel first applied to produce useful
thermal energy for the process
Waste heat is utilized to produce
electricity and possibly additional
thermal energy for the process
Simultaneous generation of heat and
electricity
No additional fossil fuel combustion
(no incremental emissions)
Normally produces larger amounts
electric generation (often exports
electricity to the grid; base load
electric power)
Fuel
Electricity
Energy
Intensive
Industrial
Process
Heat produced for the
industrial process
Waste heat from the
industrial process
Heat
Heat recovery
steam boiler
Steam
Turbine
Industrial Waste Heat Recovery
Opportunities
800ºF + = High Temp
CHP Role in Our Environmental Future Impact on Carbon Emissions
Source:
http://www.chpcentermw.org/pdfs/ORN
L_Report_Dec2008.pdf
Example of the CO2 savings potential of CHP based on a 5 MW gas turbine CHP
system with 75% overall efficiency operating at 8,500 hours per year providing
steam and power on-site compared to separate heat and power comprised of an
80% efficient on-site natural gas boiler and average fossil based electricity
generation with 7% T&D losses.
o CHP is more efficient than separate generation of electricity and heat
o Higher efficiency translates to lower operating cost, (but requires capital investment)
o Higher efficiency reduces emissions of all pollutants
o CHP can also increase energy reliability and enhance power quality
o On-site electric generation reduces grid congestion and avoids distribution costs
What Are the Benefits of CHP?
CHP Is Used at the Point of Demand
81,800 MW –
installed capacity
4,100 CHP Sites
(2012)
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
Attractive CHP Markets
Industrial o Chemical
manufacturing
o Ethanol
o Food processing
o Natural gas
pipelines
o Petrochemicals
o Pharmaceuticals
o Pulp and paper
o Refining
o Rubber and plastics
Commercial o Data centers
o Hotels and casinos
o Multi-family housing
o Laundries
o Apartments
o Office buildings
o Refrigerated
warehouses
o Restaurants
o Supermarkets
o Green buildings
Institutional o Hospitals
o Landfills
o Universities &
colleges
o Wastewater
treatment
o Residential
confinement
Agricultural o Concentrated
animal feeding
operations
o Dairies
o Wood waste
(biomass)
CHP Annual Additions
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Cap
acit
y (M
W)
Sites >100 MW
Sites <100 MW
Annual Capacity Additions by Size
Source: ICF CHP Installation Database
CHP Annual Additions
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Cap
acit
y (M
W)
Sites >100 MW
Sites <100 MW
Annual Capacity Additions by Size
Source: ICF CHP Installation Database
Market Drivers
Over 4,500 MW announced/under construction
Benefits recognized by policymakers at the federal and state levels
Favorable outlook for natural gas supply in North America enhances economics
Opportunities created by environmental pressures on the power sector and industrial/institutional users
Growing interest in power reliability and critical infrastructure support
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Cap
acit
y (M
W)
CHP Value Proposition
Based on: 10 MW Gas Turbine CHP - 30% electric efficiency, 70% total efficiency, 15 PPM NOx
Electricity displaces National All Fossil Average Generation (eGRID 2010 ) -
9,720 Btu/kWh, 1,745 lbs CO2/MWh, 2.3078 lbs NOx/MWH, 6% T&D losses
Thermal displaces 80% efficient on-site natural gas boiler with 0.1 lb/MMBtu NOx emissions
Category 10 MW
CHP
10 MW
WHP
10 MW
PV
10 MW
Wind
Combined
Cycle
(10 MW )
Annual Capacity
Factor 85% 85% 25% 34% 67%
Annual Electricity 74,446
MWh
74,446
MWh
21,900
MWh
29,784
MWh
58,692
MWh
Annual Useful
Heat
103,417
MWht
None None None None
Capital Cost $24 million $30 million $45 million $24 million $10 million
Annual Energy
Savings
343,747
MMBtu
767,176
MMBtu
225,640
MMBtu
306,871
MMBtu
156,708
MMBtu
Annual CO2
Savings 44,114 Tons 68,864 Tons 20,254 Tons 27,546 Tons 27,023 Tons
Annual NOx
Savings 86.9 Tons 91.1 Tons 26.8 Tons 36.4 Tons 59.2 Tons
President Obama signed an executive order to accelerate industrial energy efficiency and CHP in August, 2012 that sets a national goal of 40 GW of new CHP installations by 2020. 24 states recognize CHP in some manner in state Renewable and/or Energy Efficiency Resource Standards Re-evaluating standby rates, interconnect standards, tax incentives, feed-in-tariffs, permit by rule, grants & financing programs DOE - SEEAction “Guide to the Successful Implementation of State CHP Policies” – www.seeaction.energy.gov
Recent CHP Policies
Executive Order: http://www.whitehouse.gov/the-press-
office/2012/08/30/executive-order-accelerating-investment-industrial-
energy-efficiency
Report:
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/c
hp_clean_energy_solution.pdf
DOE / EPA CHP Report (8/2012)
Gas Prices at Henry Hub (2010$/MMBtu)
Gas Availability and Price likely to be Key Driver
• Broad consensus that Henry Hub natural gas prices will average between $4 and $6 per MMBtu well beyond 2025.
• Natural gas outlook will drive manufacturing investment and technology choice.
• $4 to $6 gas prices are sufficient to support the levels of supply development in the projection, but not so high as to discourage market growth.
Source: ICF Estimates, 2013
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State # Facilities # Coal Units
# Heavy Oil Units
# Light Oil Units
Total Capacity
(MMBtu/hr)
Iowa 18 39 3 5 15,217 Illinois 23 36 2 7 10,241 Indiana 22 37 14 14 14,986 Kansas 2 1 4 0 685 Michigan 29 72 7 0 18,630 Minnesota 15 16 12 7 4,955 Missouri 8 22 0 8 3,442 North Dakota 6 6 3 1 3,838 Nebraska 6 6 4 0 2,554 Ohio 37 77 3 10 14,179 South Dakota 1 5 0 0 1,651 Wisconsin 28 43 12 6 9,131 Total 195 360 64 58 99,508
© 2011 ICF International. Expanded Database. All rights reserved.
Environmental Drivers for CHP
ICI Boiler MACT – standards for hazardous air pollutants from major sources – coal
& oil boilers affected by rule should consider CHP in their compliance strategy
Affected Midwest Sites
Providing site specific technical and cost information to the 195+ major source facilities (~ 480 boilers) in 12 states currently burning coal or oil (Decision Tree Analysis)
Meeting with willing individual facility management to discuss “Clean Energy Compliance Strategies” including potential funding and financial opportunities.
Assisting interested facilities in the implementation of natural gas CHP as a compliance strategy
Program Offered Through The U.S. DOE Midwest Clean Energy Application Center
University of Illinois at Chicago www.midwestcleanenergy.org
DOE Boiler MACT Technical Assistance
Program (Midwest)
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Critical Infrastructure
“Critical infrastructure” refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety.”
Patriot Act of 2001 Section 1016 (e)
Applications: o Hospitals and healthcare
centers
o Water / wastewater treatment plants
o Police, fire, and public safety
o Centers of refuge (often schools or universities)
o Military/National Security
o Food distribution facilities
o Telcom and data centers
o Most critical infrastructure facilities are dependent
on availability & resiliency of the electric grid
o Grid is subject to terrorist attack & natural disasters
o If electricity grid is impaired, a properly configured
CHP system can continue to operate, ensuring an
uninterruptable supply of electricity and thermal
energy
Numerous examples – Northeast Blackout 2003, Hurricane
Katrina 2005, Super-storm Sandy 2012, Various winter and
summer blackouts/brownouts
CHP - Part of Critical Infrastructure
CHP Kept Critical Facilities Running During Sandy
o South Oaks Hospital - Amityville, NY, 1.25 MW recip. engine
o Greenwich Hospital - Greenwich, CT, 2.5 MW recip. engine
o Christian Health Care Center - Wyckoff, NJ, 260 kW microturbine
o Princeton University - Princeton, NJ, 15 MW gas turbine
o The College of New Jersey - Ewing, NJ, 5.2 MW gas turbine
o Salem Comm. College - Carney’s Point, NJ, 300 kW microturbine
o Public Interest Data Center - New York, NY, 65 kW microturbine
o Co-op City - The Bronx, NY, 40 MW combined cycle
o Nassau Energy Corp – Garden City, NY, 57 MW combined cycle
o Bergen Wastewater Plant – Little Ferry, NJ, 2.8 MW recip. engine
o New York University – New York, NY, 14.4 MW gas turbine
o Sikorsky Aircraft Corporation – Stratford, CT, 10.7 MW gas turbine
Technical Potential of 140,000 MW
Potential CHP
Existing CHP
Source: ICF International
Existing CHP vs Technical Potential
<1,000 MW 1,000 – 1,999 MW 2,000 – 4,999 MW >5,000 MW
CHP Technical Potential
Source: ICF Internal Estimate
Midwest CHP Generating Capacity Installed vs Total Technical Potential*
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
CH
P G
en
era
tin
g C
ap
acit
y (
MW
)
Installed Tech Potential
* Technical Potential also includes existing CHP
CHP Generating Capacity Installed vs Total Technical Potential
0
50,000
100,000
150,000
200,000
250,000
Midwest U.S.
CH
P G
en
era
tin
g C
ap
acit
y (
MW
)
Installed Tech Potential
82 82,000 MW
10,800 MW
* Technical Potential also includes existing CHP
222,000 MW
43,000 MW
??Economic Potential??
* Technical Potential also includes existing CHP
What Defines Economic Potential
2 year paybacks, 4 year paybacks, 8
year paybacks??
Financial analysis can’t be done with
average utility rates.
Average site data is unacceptable
(operating hours, cost of system,
level of heat recovery, etc)
How do you account for such
benefits as reliability, power quality,
resiliency, environment, etc
The economic potential lies
somewhere between the two bars
Questions John Cuttica
(312) 996-4382
www.midwestcleanenergy.org
A program at A program sponsored by
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