Gavin Dillingham. USGBC Energy Summit

Transcription

1 Gavin Dillingham USGBC Energy Summit October 7, 2014

2 US Energy Consumption

3 US Energy Consumption

4 Change in Energy Use and Intensity Greentech Media

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6 What is a Fuel Cell? A fuel cell is an electrochemical device that combines hydrogen and oxygen to produce electricity, with water and useful heat as its by-products.

7 Fuel Cell Benefits Fuel flexible - operation on conventional or renewable fuels High quality, reliable power Exceptionally low/zero emissions Modularity/scalability/flexible installation Can operate independent of the grid Extremely quiet Lightweight Rugged Can be used with or instead of batteries and diesel generators Can partner with solar, wind, and other renewable technologies Increased productivity Cost savings via high electrical and overall efficiency

8 Fuel Cell Market Estimates that there is at least 170 MW of fuel cells now installed in the U.S.; more than 76 MW since 2012 Primarily providing primary or backup power to facilities Almost 5,000 fuel cellpowered material handling vehicles 8

9 Deployment of Fuel Cells Data Centers Commercial buildings Retail stores Multi-family residential Telecom Grid Power Material Handling Large-scale systems for prime power, backup power or combined heat and power, Small systems for micro combined heat and power for residential or commercial operations Prime and backup systems for remote or essential applications such as telecommunications towers

10 Cost Competitiveness $0.13 to $0.15 per kwh without subsidies or incentives Eligible for the Federal Investment Tax Credit (ITC) which provides a 30 percent tax credit or $3,000/kW on a fuel cell system installed before A credit of 10 percent is available for CHP systems. Large stationary fuel cell power can be cost competitive in states with high electricity prices Alaska California Connecticut Hawaii Massachusetts New Hampshire New Jersey Vermont

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12 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 Conventional CHP System Min. eff. = 60% Typical eff. 70% - 80% Electricity Heat Fuel is combusted/burned for the purpose of generating heat and electricity Normally sized for thermal load to max. efficiency 70% to 80% Minimum efficiency of 60% normally required Normally non export of electricity Low emissions natural gas

13 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 Recovery CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP) Fuel Steam Turbine Heat recovery steam boiler Energy Intensive Industrial Process Electricity Heat Waste heat from the industrial process Heat produced for the industrial process 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) Required high temperature (> 800 F) (low hanging fruit in industrial plants)

14 CHP is an important energy resource that provides: Benefits for U.S. Industry Reduces energy costs for the user Reduces risk of electric grid disruptions Provides stability in the face of uncertain electricity prices Benefits of CHP

15 Markets Industrial 25 to 100+ MW Petrochemical Natural Gas Processing Fabricated Metals Chemical Manufacturing Rubber and Plastic Refining Pulp and Paper Port Arthur Steam Energy (Port Arthur, TX) Waste Heat to Power - Oxbow Corporation petroleum coke production 60 MW CHP Plant 5 MW Electricity 55 MW Equivalent Steam 3 Heat Recovery Steam Generators 2.5 mile steam pipeline 400,000 lb/hr steam export Annual Reductions 5 trillion BTUs energy 280,000 tons CO2; 200 tons NOx

16 Port Arthur Steam Energy

17 Markets Institutional 5 to 75 MW Universities Hospitals Wastewater Treatment Emergency Management Facilities Homeland Security Prisons Methodist Hospital (Houston, TX) Rooftop 4.5 MW CHP One combustion turbine (Centaur 50S Solar Turbine) w/ Heat Recovery Steam Generator Supplementary duct burner Steam driven chiller 2,800 ton 50,000 lbs/hr of steam production Emissions 70% NOx reduction

18 Markets Commercial 1 to 10 MW Hotels/Casinos Airports Data Centers Grocery Stores Refrigerated Warehouses Office Buildings BP Helios Plaza data center (Houston, TX) 4.3 MW CHP Plant Mercury 50 Gas Turbine Heat Recovery Steam Generator 1,350 ton absorption chiller Back-up - 4,000 ton-hr thermal energy storage and centrifugal chiller Dual electrical feeds Base load from Gas Turbine and 100 kw from utility LEED Platinum

19 Critical Infrastructure CASE STUDY: Mississippi Baptist Medical Center (Jackson, MS) 624 bed urban hospital, 3000 employees 3.2 MW gas turbine CHP system installed 1994 Steam used for hot water, sterilization and absorption chillers Grid down for 52 hours starting August 29, 2005 due to Katrina CHP system ran islanded and provided power, hot water and air conditioning 19

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21 Where Are We Today? 82 GW of installed CHP at 3,842 industrial and commercial facilities (2011) 87% of capacity in industrial applications 71% of capacity is natural gas fired Avoids more than 1.8 quadrillion Btus of fuel consumption annually Source: CHP Installation Database Avoids 241 million metric tons of CO 2 compared to separate production

22 CHP Additions (3,442 MW) CHP Capacity by Fuel

23 Natural Gas Additions by Application (1,709 MW) Source: ICF International

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25 Restraints and Opportunities

26 Natural Gas Trends Henry Hub natural gas prices are projected to average between $4 and $7 per MMBtu throughout much of the projection. Gas Prices at Henry Hub (2010$/MMBtu) Robust growth in gas demand will eventually apply upward pressure on gas prices. $5 to $7 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, 2012

27 Regulatory and Policy Activities Incentives: PUC Administered Energy Efficiency Incentive Program Utility Programs systems up to 10 MW RPS biomass systems Legislation: Permit by Rule HB 3268 Critical Infrastructure HB 1831, HB 4409, HB 1864 Power Export HB 2049 PACE SB

28 Federal Activity 111(d) 111(b) NAAQS

29 Outlook for CHP CHP appears to be poised for new growth Benefits recognized by policy makers many states promoting CHP Favorable outlook for natural gas supply in North America enhances economics Opportunities created by environmental pressures on the power sector and industrial/institutional users Market Uncertainties Easing of environmental drivers? Restrictions on hydraulic fracturing? Utility attitudes changing?

30 Annual CHP Installations Since 2000, With Projected Future Installations based on Announced Projects

31 CHP Onsite Technical Potential Market <1,000 MW 1,000 1,999 MW 2,000 4,999 MW Source: ICF internal estimates >5,000 MW

32 Installed vs. Technical Potential

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