Cogeneration a.k.a. Combined Heat & Power (CHP) Overview

Transcription

1 Union Gas Ltd. Electricity Costs Workshop Cogeneration a.k.a. Combined Heat & Power (CHP) Overview Prepared By: Martin Lensink, P. Eng. Principal-In-Charge Increasing Earnings by Reducing Energy Costs

2 Outline 1. What is Cogeneration/Trigeneration? 2. Benefits of Cogeneration/Trigeneration 3. Who should consider? 4. Overview of Technology 5. Technical Considerations 6. How to Conduct a Study (Issues to Address) 7. Why now?

3 Cogeneration Tutorial Heat Losses 17% Fuel 100% Trigeneration 30% Heat 51% Electricity Cooling 2% Line Losses

4 What is Cogeneration? Simultaneous production of electricity and useful heat from a single fuel source. Utilizes proven technologies, such as: Combustion Gas Turbine Generators (GTG) Boilers or Heat Exchangers Internal Combustion Engine Generators (ICE) Electricity produced by a cogeneration system on-site displaces electricity purchased from the utility.

5 What is Cogeneration? Combined efficiency of cogeneration (75% to 85%) is higher than the separate production of electricity and thermal energy. Cogeneration (when properly designed and installed), can reduce annual operating costs significantly. Cogenerated heat displaces heat from existing burners or boilers or heaters.

6 Macro Efficiency Now

7 Macro Efficiency After Cogen

8 Benefits of Cogeneration Make electricity for about 3 /kw.h If Fuel Chargeable to Power is 5,000 Btu/kW.h (HHV) If burner tip cost of natural gas is $6/mmBtu (HHV) = $5.69/GJ This excludes maintenance and capital repayment This makes plant more competitive. Results in significant reduction of unit energy cost $/lb of product $/1,000 ft 2 of area heated and cooled

9 Benefits of Cogeneration By producing power on-site: Manage blackout/brownout risk (via islanding ) Reduce cost of electrical outages Control future electricity price increases In some cases: Avoid future capital expenditure on equipment Provide additional thermal capacity Existing thermal generation stays in place as back up.

10 Who Should Consider CHP? High, year-round demand for steam, hot water, or hot air (or chilled water in summer months) Energy cost is significant % of operating cost (> 5%) About to install new boiler or new genset Energy Champion on staff (who is empowered to do the right thing)

11 Who Should Consider CHP (Cont d) Use at least 30 m 3 /hr of natural gas to produce thermal energy (heat) weekdays from 7 a.m. to 11 p.m. Use at least 250 kw e of electricity during these same hours. Steady demand for process chilled water (60 tons) is great too.

12 Prime Mover Options Microturbines Low demand for both hot water and electricity Internal Combustion Engines (ICE) Lots of demand for hot water <100 o C Steam Turbine Generators (STG) Boilers designed for > 250 psig Combustion Gas Turbine Generators (GTG) > 10,000 lbs/hr of steam (> 40 psig) Organic Rankine Cycle (ORC) Convert high grade waste heat to electricity

13 Microturbine (available from 30 kw to 200 kw)

14 Microturbine (available from 30 kw to 200 kw)

15 Internal Combustion Engine (ICE) (available from 30 kw to 4 MW)

16 Internal Combustion Engine (ICE) (available from 30 kw to 4 MW)

17 Internal Combustion Engine (ICE) (available from 30 kw to 4 MW)

18 Steam Turbine Generator (STG) (available from 100 kw to 50 MW)

19 Steam Turbine Generator (STG) (available from 100 kw to 50 MW)

20 Gas Turbine Generator (GTG) (available from 1 MW to 20 MW)

21 Gas Turbine Generator (GTG) (available from 1 MW to 20 MW)

22 Gas Turbine Generator (GTG) (available from 1 MW to 20 MW)

23 Example Projects Microturbine Union Gas Service Centre ICE Auto Parts Manufacturer 4 65 kw each, completed with heat recovery Utility tie-in requirements with Burlington Hydro including embedded generator power sale and operating agreements 800 kw ICE Complete with SCR Hot water heat recovery

24 Example Projects STG IGPC Ethanol GTG London Health Sciences Centre Phase I 1 MW back pressure STG Phase II 3 MW ICE with exhaust gas and jacket water heat recovery MW (refurbished) 1 25,000 lb/hr (unfired) Fuel Gas Booster Compressor not needed, as pressure from Union Gas was adequate

25 Hard Challenges Electrical interconnection Air and Noise compliance Space available? Natural gas volume and pressure Buried services Soil conditions

26 Conducting a Study First establish financial feasibility: 10, 15, and 20 year IRR/NPV, after-tax, before financing With and without 40% grant If project might meet your company hurdle rate: a) Then establish if there is electrical capacity b) If there is capacity, then do Detailed Engineering Study (DES) to firm up Capital Cost and refine Business Case

27 Why Now? Natural Gas supply (~150 years): Lower burner tip prices Stabile and predictable Power prices increasing significantly: 6% - 8% per year in some parts of the world Business Case/financial feasibility therefore MUCH better Climate change/protect manufacturing viability

28 Conclusions On-site power generation can help a plant survive Technology is now highly reliable/available Economics are good and getting better Electrical interconnect is not easy (due to glut of solar and wind projects) Need internal champion (with support from on high and lots of stamina/persistence)

29 questions to