Combined Heat and Power (CHP) Concepts & Technologies

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1 Combined Heat and Power (CHP) Concepts & Technologies Cliff Haefke U.S. DOE Midwest Clean Energy Application Center Waste-to-Energy Workshop for the Minnesota Food Processing & Livestock Industries: Exploring CHP Opportunities Brooklyn Center, Minnesota May 24, 2011

2 Who are we? U.S. DOE Midwest Clean Energy Application Center Originally established in 2001 by US DOE to support DOE CHP Challenge Today the center promotes the use of CHP, District Energy, and Waste Heat Recovery Technologies Strategy: Provide a technology outreach program to end users, policy, utility, and industry stakeholders focused on: Targeted education and outreach Policy education Project support 2

3 Where is the fuel going in U.S. utility generation? The energy lost in the United States from wasted heat in the utility sector is greater than the total energy use of Japan. Source: DOE Energy Information Administration Annual Energy Review

4 Are there alternative options? Distributed Generation (DG) Technologies Solar Photovoltaic Wind Turbines Engine Generator Sets Turbine Generator Sets Combustion Turbines Microturbines Steam Turbines Fuel Cells 4

5 Key Part of Our Energy Future is CHP Form of Distributed Generation (DG) An integrated system Located at or near a building / facility Provides at least a portion of the electrical load and Recycles the thermal energy for Space Heating / Cooling Process Heating / Cooling Dehumidification CHP provides efficient, clean, reliable, affordable energy today and for the future. Source: 5

6 CHP Technology Components Fuel Natural Natural Gas Gas Propane Propane Biogas Biogas Landfill Landfill Gas Gas Coal Coal Steam Steam Waste Waste Products Products Others Others Prime Mover Reciprocating Reciprocating Engines Engines Combustion Combustion Turbines Turbines Microturbines Microturbines Steam Steam Turbines Turbines Fuel Fuel Cells Cells Heat Exchanger Generator Generator Electricity On-Site On-Site Consumption Consumption Sold Sold to to Utility Utility Thermal Steam Steam Hot Hot Water Water Space Space Heating Heating Process Process Heating Heating Space Space Cooling Cooling Process Process Cooling Cooling Dehumidification Dehumidification 6

7 What are the Customer Benefits of CHP? Photo courtesy of GHD, Inc. CHP does not make sense in all applications, but where it does make technical and economic sense, it will provide: - Lower Energy Costs - Reduced Energy Consumption - Increased Electric Reliability - Standby Power - Improved Environmental Quality - Public Relations Benefits 7

8 1. Good Coincidence Between Electric and Thermal Loads 2. Central Heating/Cooling System 3. Large Spark Spread - Cost Differential Between Electricity (Grid) and CHP Fuel 4. Long Operating Hours Attractive CHP Applications 5. Energy Concerns (current/future costs, power reliability, facility efficiency/conservation, etc.) 6. Environmental Concerns 7. Renovation and/or expansion of existing facilities 8. Access to on-site or nearby biomass/biogas resources 8

9 Where is CHP utilized today? 84,570 MW installed at 3,500 sites (nationally) Average capacity is 24.2 MW Median capacity is 1.2 MW Represents almost 8% of total U.S. generating capacity Saves over 3 quads of fuel each year! Eliminates over 400 million tons of CO 2 emissions each year! Food Processing: 6,283 MW at 236 sites Agriculture: 57 MW at 139 sites Source: 9

10 Where is CHP utilized in MN? MW installed at 49 sites Average capacity is 16.6 MW Median capacity is 4.5 MW Represents almost 5.7% of total MN generating capacity CHP in in MN Food Processing American American Crystal Crystal Sugar Sugar (Crookston) (Crookston) American American Crystal Crystal Sugar Sugar (East (East Grand Grand Forks) Forks) American American Crystal Crystal Sugar Sugar Co. Co. (Moorhead) (Moorhead) Archer Archer Daniels Daniels Midland Midland Co. Co. (Mankato) (Mankato) Perham Perham Resource Resource Recovery Recovery Facility Facility (Perham) (Perham) Southern Southern Minnesota Minnesota Beet Beet Sugar Sugar (Rochester) (Rochester) CHP in in MN Agriculture Jer-Lindy Jer-Lindy Farms Farms (Brooten) (Brooten) Haubenschild HaubenschildDairy Dairy (Princeton) (Princeton) Northern Northern Plains Plains Dairy Dairy (St. (St. Peter) Peter) Riverview Riverview Dairy Dairy (Morris) (Morris) Source: 10

11 CHP Fuels in Farm and Food Processing Facilities Clean Energy 1. Natural Gas Fired CHP Systems 4. Waste Heat Recovery CHP Systems 2. Biogas Fired CHP Systems (anaerobic digesters) 3. Co-Fired or 100% Direct Fired Biomass Fueled CHP Systems 11

12 Session Concepts / Technologies Flare Thermal (Boiler) Electric Generation NG Pipeline Vehicle Fuel Anaerobic Digesters Biogas Cleanup CHP 12

13 Biogas Utilization Benefits Eliminates wastage of fuel energy by flaring Saves energy costs for the facilities utilizing biogas Earns greenhouse gas emission credits that could be traded and/or sold for a revenue stream 13

14 Potential in MN Farm & Food Processing Facilities Agriculture Hogs (min 1,000): 2,347 farms / 22,378,897 hogs Dairy (min 200): 400 farms / 338,584 cows Beef (min 200): 171 farms Poultry (min 100,000): 27 farms / 9,698,048 poultry Food Processing 689 total facilities 104 larger facilities 27 dairy 15 meat Source: 14

15 What if CHP Represented 20% of US Generating Capacity in 2030? $234 billion private sector investment Nearly 1 million new jobs Reduces fuel use and CO 2 emissions Source: ORNL

16 CHP Documents & Resources CHP Resource Guide CHP: Effective Energy Solutions for a Sustainable Future Great Lakes Region Food Industry Biogas Casebook 16

17 Questions / Discussions Clifford P. Haefke Energy Resources Center University of Illinois at Chicago 312/ chaefk1@uic.edu 17