Combined Heat and Power Opportunities in Southern Illinois. Graeme Miller Assistant Director US DOE Midwest CHP Technical Assistance Partnership

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1 Combined Heat and Power Opportunities in Southern Illinois Graeme Miller Assistant Director US DOE Midwest CHP Technical Assistance Partnership

2 Agenda DOE CHP Technical Assistance Partnerships CHP Concepts and Benefits CHP Configurations and Technologies CHP Market Sectors CHP Project Profiles Available Utility Incentives Next Steps in Evaluating CHP

3 3 End User Engagement Partner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses. Stakeholder Engagement Engage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation s resilient grid. CHP TAPs provide fact-based, nonbiased education to advance sound CHP programs and policies. Technical Services As leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation.

4 DOE CHP Technical Assistance Partnerships (CHP TAPs) DOE CHP Deployment Program Contacts Tarla T. Toomer, Ph.D. CHP Deployment Manager Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Patti Garland DOE CHP TAP Coordinator [contractor] Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Ted Bronson DOE CHP TAP Coordinator [contractor] Office of Energy Efficiency and Renewable Energy U.S. Department of Energy

5 Energy Utilization in the Utility Sector Two-thirds of the fuel used to generate power in the US is lost as heat Conversion Losses 66.6% Source:

6 CHP: A Key Part of Our Energy Future 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 Uses thermal energy for: o o o Space Heating / Cooling Process Heating / Cooling Dehumidification CHP provides efficient, clean, reliable, affordable energy today and for the future. Source:

7 CHP Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs 94 units 56 units Fuel Fuel Power Plant 32% efficiency (Including T&D) Onsite Boiler 80% efficiency 30 units Electricity Heat CHP 75% efficiency Fuel 100 units 45 units Total Efficiency ~ 50% Total Efficiency ~ 75% 30 to 55% less greenhouse gas emissions

8 Common CHP Technologies Microturbines Gas Turbines Reciprocating Engines Fuel Cells Steam Turbines 50 kw 100 kw 1 MW 10 MW 20 MW

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

10 Critical Infrastructure and Resiliency Benefits of CHP 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: Hospitals and healthcare centers Water / wastewater treatment plants Police, fire, and public safety Centers of refuge (often schools or universities) Military/National Security Food distribution facilities Telecom and data centers CHP (if properly configured): Offers the opportunity to improve Critical Infrastructure (CI) resiliency Can continue to operate, providing uninterrupted supply of electricity and heating/cooling to the host facility

11 What Are the Benefits of CHP? CHP is more efficient than separate generation of electricity and heating/cooling Higher efficiency translates to lower operating costs (but requires capital investment) Higher efficiency reduces emissions of pollutants CHP can also increase energy reliability and enhance power quality On-site electric generation can reduce grid congestion and avoid distribution costs.

12 CHP Is Used Nationwide In Several Types of Buildings/Facilities 81.3 GW installed at more than 4,400 sites Saves 1.8 quads of fuel each year Avoids 241 M metric tons of CO 2 each year Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2017) Slide prepared on

13 CHP Today in the United States Existing CHP Capacity 81.3 GW of installed CHP at more than 4,400 industrial and commercial facilities 8% of U.S. Electric Generating Capacity; 14% of Manufacturing Avoids more than 1.8 quadrillion Btus of fuel consumption annually Avoids 241 million metric tons of CO 2 compared to separate production Slide prepared on 7-3-

14 CHP Today in Illinois Market Sector in Illinois CHP Capacity (kw) CHP Installations Agriculture 22,160 7 Chemicals 45,900 7 Colleges/Univ. 132, Fabricated Metals 7,750 3 Food Processing 512, General Gov't. 6,300 1 Hospitals/Healthcare 23,220 6 Machinery 89,810 6 Misc 3, Nursing Home 4,750 5 Office Building 7,469 5 Primary Metals 81,012 3 Pulp and Paper 6,500 2 Refining 214,000 4 Research Facilities 8,300 1 Schools 11, Stone/Clay/Glass 14,100 1 Transportation Equipment 9,240 1 Wastewater Treatment 18, Grand Total 1,218, CHP Prime Mover CHP Capacity (kw) CHP Installations Backpressure Steam Turbine 3,000 1 Boiler/Steam Turbine 679, Combined Cycle 260,100 4 Combustion Turbine 140, Reciprocating Engine 134, Grand Total 1,218, Source: Doe CHP Database, 2019

15 CHP systems are often categorized based on the type of prime mover that drives the system. There are five predominant prime mover technologies used for CHP systems: Reciprocating engines Gas turbines Microturbines Boiler/steam turbines Fuel cells Three CHP configurations (described on following slides) Reciprocating engine or turbine with heat recovery Boiler / steam turbine Fuel cell Configurations These two configurations offer good potential for incorporation into packaged CHP systems

16 Reciprocating Engine or Turbine with Heat Recovery Gas or liquid fuel is combusted in a prime mover, such as a reciprocating engine, microturbine, or gas turbine The prime mover is connected to a generator that produces electricity Energy normally lost in the prime mover s hot exhaust and cooling system is recovered to provide useful thermal energy for the site

17 Boiler / Steam Turbine Fuel is burned in a boiler to produce high pressure steam that is sent to a backpressure or extraction steam turbine The steam turbine is connected to an electric generator that produces electricity Low pressure steam exits the turbine and provides useful thermal energy for the site

18 Two types of electric generators are used with reciprocating engines and turbines to produce alternating current (AC) electricity: induction and synchronous. Induction Requires grid power (external power source) When grid goes down, CHP system goes down Contributes to poor power factor Less complicated and less costly to interconnect compared to synchronous Preferred by utilities Synchronous Does not need grid to operate (self excited) CHP system can continue to operate through grid outage Can assist in power factor correction More complicated and more costly to interconnect compared to induction (safety considerations) Preferred by CHP customers

19 Two Generator Types Induction Requires external power source to operate When grid goes down, generator goes down Less Complicated and Costly to Interconnect Synchronous Self Excited (Does not need grid to operate) Generator can operate thru Grid outages More Complicated and Costly to Interconnect Designing for Reliability Uninterrupted Operation Requirements Black start capability Allows the system to start up independently from the grid Generators capable of gridindependent operation The system must be able to operate without grid power signal Ample Carrying Capacity System size must match critical loads Parallel utility interconnection and switch gear controls The system must be able to disconnect from the grid, support critical loads, and reconnect after an event 19

20 Size Range: 10 kw to 10 MW Characteristics Thermal can produce hot water, low pressure steam, and chilled water (through absorption chiller) High part-load operation efficiency Fast start-up Minimal auxiliary power requirements for black start. Example Applications: universities, hospitals, water treatment facilities, industrial facilities, commercial buildings, and multi-family dwellings

21 Size Range: 1 MW to 300 MW Characteristics Produces high quality, high temperature thermal that can include high pressure steam for industrial processes, and chilled water (with absorption chiller) Available in a wide range of capacities and configurations Best efficiency when operated at full load (part-load efficiency is often much lower than full load efficiency) Example Applications: hospitals, universities, chemical plants, refineries, food processing, paper, military bases

22 Size Range: 30 kw to 330 kw (modular packages exceeding 1 MW) Characteristics Thermal can produce hot water, steam, and chilled water (through absorption chiller) Compact size and light weight Inverter based generation can improve power quality Example Applications: multifamily housing, hotels, nursing homes, waste water treatment, gas & oil production

23 Size Range: 100 kw to over 250 MW Characteristics Requires a boiler or other steam source Can be mated to boilers firing a variety of gaseous, liquid or solid fuels (e.g., coal and biomass fuels such wood, waste products, and pellets). Mature technology with very high durability and reliability Can operated over a wide range of steam pressures Backpressure steam turbines can be used to produce power by replacing pressure reducing valves (PRVs) in existing steam systems Example Applications: Industrial applications, district heating and cooling systems, forest products, paper mills, chemicals, food processing, PRVs

24 Heat Exchangers Recover exhaust gas from prime mover Transfers exhaust gas into useful heat (steam, hot water) for downstream applications Heat Recovery Steam Generators (HRSG) the most common Heat-Driven Chillers Absorption Chiller Use heat to chill water Chemical process (not mechanical) Steam Turbine Centrifugal Chiller Image Source: University of Calgary Image Source: DOE - EERE

25 Absorption chillers are heat operated refrigeration machines that operate on chemical and physical reactions to transfer heat. The absorption cycle substitutes a physiochemical process for the mechanical compressor used in common refrigeration systems. Absorption chillers can be driven with hot water, steam, or prime mover exhaust. Absorption chillers are available in sizes from 5 to 3,000 refrigeration tons. This capacity correlates to a CHP electric output of approximately 50 to 10,000 kw. For 40 F and higher chilling fluid temperatures (e.g., building air conditioning), a common refrigerant solution mixture is water (refrigerant) and lithium bromide (absorbent). For chilling fluid temperatures below 40 F (e.g., cold storage), a common refrigerant solution mixture is ammonia (refrigerant) and water (absorbent). A 200-ton single-stage absorption chiller integrated with three 600 kw reciprocating engines that also provide hot water for process and space heating. The system is located at a metal fabrication facility in Fitchburg, Massachusetts. Photo courtesy of Northeast CHP Technical Assistance Partnership (CHP TAP).

26 Comparison of CHP Characteristics [1, 2] Characteristic Reciprocating Engine Technology Gas Turbine Microturbine Fuel Cell Steam Turbine Size Range 10 kw 10 MW MW 30 kw 330 kw (larger modular units available) 5 kw 1.4 MW (larger modular units available) 100 kw 250 MW Electric Efficiency (HHV) Overall CHP Efficiency (HHV) Total Installed Cost ($/kw) [3] 30% 42% 24% 36% 25% 29% 38% 42% 5% 7% 77% 83% 65% 71% 64% 72% 62% 75% 80% $1,400 $2,900 $1,300 $3,300 $2,500 $3,200 $4,600 $10,000 $670 $1,100 [4] O&M Cost ( /kwh) Power to Heat Ratio Thermal Output (Btu/kWh) 2, ,100 3, ,000 4, ,400 2, ,600 30, ,000 Notes: 1) Unless noted otherwise, information based on U.S. Department of Energy, CHP Technology Fact Sheet Series, 2016, ) All performance and cost characteristics are typical values and are not intended to represent a specific product. 3) Costs will vary depending on site specific conditions and regional variations. 4) Costs shown are for a steam turbine only, and do not include costs for a boiler, fuel handling equipment, steam loop, and controls.

27 Characteristic Fuel Pressure (psig) [1] Part Load Efficiency Type of Thermal Output Fuel Reciprocating Engine 1-75 Good at both part-load and full-load LP steam, hot water, space heating, chilled water Technology Gas Turbine Microturbine Fuel Cell Steam Turbine (may require fuel compressor) Better at fullload LP-HP steam, hot water, process heating, chilled water (may require fuel compressor) Better at fullload LP steam, hot water, chilled water Can be operated with a wide range of gas and liquid fuels. For CHP, the most common fuel is natural gas n/a Better at fullload LP steam, hot water, chilled water Hydrogen, natural gas, propane, methanol Good at both part-load and full-load LP-HP steam, hot water, chilled water Steam turbines for CHP are used primarily where a solid fuel (e.g., coal or biomass) is used in a boiler. [2] Notes: 1) Adapted from Catalog of CHP Technologies, U.S. Environmental Protection Agency Combined Heat and Power Partnership, ) Backpressure steam turbines can be used to produce power by replacing pressure reducing valves (PRVs) in existing steam systems.

28 Characteristic Reciprocating Engine Technology Gas Turbine Microturbine Fuel Cell Steam Turbine Emissions CHP technologies are capable of meeting or exceeding air quality regulations throughout the United States, including states such as California that have demanding limits for NOx, CO, and VOC emissions. To achieve compliance, a CHP technology may need to integrate an exhaust treatment technology such as an oxidation catalyst or a selective catalytic reduction system. Other Reciprocating engines start quickly and operate on typical natural gas delivery pressures. Gas turbines and microturbines have low engine-out emissions and require no cooling. A fuel gas compressor may be required to deliver the specified inlet gas pressure. Fuel cells are quiet, have low emissions, and produce high quality power. Steam turbines require a boiler or other steam source.

29 Attractive CHP Markets Industrial Chemical manufacturing Ethanol Food processing Natural gas pipelines Petrochemicals Pharmaceuticals Pulp and paper Refining Rubber and plastics Commercial Data centers Hotels and casinos Multi-family housing Laundries Apartments Office buildings Refrigerated warehouses Restaurants Supermarkets Green buildings Institutional Hospitals Schools (K 12) Universities & colleges Wastewater treatment Residential confinement Agricultural Concentrated animal feeding operations Dairies Wood waste (biomass)

30 Biogas CHP Biogas is a mixture of gases produced by the breakdown of organic matter in an oxygen free environment. Wastewater Treatment Plants Livestock Farms Biogas is primarily comprised of methane (CH4) and carbon dioxide (CO2) and may have small amounts of hydrogen sulphide (H 2S), moisture and siloxanes. Technology Required: Anaerobic Digester Gas Conditioning Equipment (Depends on gas makeup) CHP Prime Mover and Heat Recovery Most Common: Recip Engines, Microturbines Co-Digesting additional organic material may help increase biogas production

31 Biogas CHP A typical WWTP processes 100 gal/day of wastewater for each person they serve Each million gallons per day (MGD) of wastewater flow can produce enough biogas in an anaerobic digester to produce 30 kw of electric capacity

32 Project Snapshot: A Resilient Manufacturing Plant SC Johnson Waxdale Plant Racine, WI Application/Industry: Manufacturing Capacity: 6.4 MW Prime Mover: Gas turbine Fuel Type: Landfill gas and natural gas Thermal Use: Space & process heating Installation Year: 2003 Energy Savings: Unknown Highlights: The SC Johnson Waxdale Plant (producer of such household products as Glade, Windex, Pledge, Scrubbing Bubbles, Shout, Raid and OFF! ) installed a 3.2 MW combustion turbine CHP system in 2003 fueled by landfill gas from a nearby landfill. The company added a second 3.2 MW unit in 2005 fueled by natural gas. The two units provide base load electricity for the 2.2 million ft 2 manufacturing facility while providing up to 40,000 lbs/hr of high quality steam for heating and manufacturing processes. The control systems isolate the CHP system from the utility grid during outages and enable the plant to keep its critical operations up and running. Source: /SCJohnsonWaxdalePlant.pdf Slide prepared 6/

33 Project Snapshot: Targeting Net-Zero Downers Grove Sanitary District Downers Grove, IL Application/Industry: Wastewater Treatment Capacity: 280 kw Prime Mover: Reciprocating engine Fuel Type: Biomass Thermal Use: Heat for the digestion process Installation Year: 2014 Highlights: Waste grease from nearby restaurants helps power the CHP system, which offsets about 50% of the wastewater treatment plant s energy consumption. Source: Slide prepared 6/2017

34 Project Snapshot: Cow Power (5 Cows = 1 kw) Hunter Haven Farms Pearl City, IL Application/Industry: Dairy Farm Capacity: 260 kw Prime Mover: Caterpillar engines (2) Fuel Type: Anaerobic digester biogas Thermal Use: Heating the digester Installation Year: 2008 Energy Savings: Unknown Highlights: Hunter Havens Farm owns and operates 24/7 a 260 kw anaerobic digester and biogas-fired combined heat and power (CHP) system. The system produces electricity for the site and to sell to the local utility. The recovered heat is used to maintain the temperature of the digester, heat farm buildings, and provide the farm with hot water. The system can manage the waste for up to 1,200 dairy cows. Source: ProjectProfiles/HunterHavenFarms.pdf Slide prepared 6/

35 Available Incentives

36 Ameren Illinois CHP Incentives Incentive $0.12/kWh and $1.20/therm for eligible electricity and natural gas savings, under Custom Program Electric cap at $500,000, natural gas cap at $100,000 Feasibility Studies up to 50% of costs or 25% of annual savings identified, capped at $20k (

37 How to Implement a CHP Project with the Help of the CHP TAP

38 CHP TAP Role: Technical Assistance

39 DOE TAP CHP Screening Analysis High level assessment to determine if site shows potential for a CHP project Qualitative Analysis Energy Consumption & Costs Estimated Energy Savings & Payback CHP System Sizing Quantitative Analysis Understanding project drivers Understanding site peculiarities Annual Energy Consumption Base Case CHP Case Purchased Electricty, kwh 88,250,160 5,534,150 Generated Electricity, kwh 0 82,716,010 On-site Thermal, MMBtu 426,000 18,872 CHP Thermal, MMBtu 0 407,128 Boiler Fuel, MMBtu 532,500 23,590 CHP Fuel, MMBtu 0 969,845 Total Fuel, MMBtu 532, ,435 Annual Operating Costs Purchased Electricity, $ $7,060,013 $1,104,460 Standby Power, $ $0 $0 On-site Thermal Fuel, $ $3,195,000 $141,539 CHP Fuel, $ $0 $5,819,071 Incremental O&M, $ $0 $744,444 Total Operating Costs, $ $10,255,013 $7,809,514 Simple Payback Annual Operating Savings, $ $2,445,499 Total Installed Costs, $/kw $1,400 Total Installed Costs, $/k $12,990,000 Simple Payback, Years 5.3 Operating Costs to Generate Fuel Costs, $/kwh $0.070 Thermal Credit, $/kwh ($0.037) Incremental O&M, $/kwh $0.009 Total Operating Costs to Generate, $/kwh $0.042

40 Finding the Best Candidates: Some or All of These Characteristics Consistent source of organic matter to produce biogas High and constant thermal load Favorable spark spread Need for high reliability Concern over future electricity prices Interest in reducing environmental impact Existing central plant Planned facility expansion or new construction; or equipment replacement within the next 3-5 years

41 CHP Project Resources DOE CHP Technologies Fact Sheet Series Good Primer Report

42 CHP Project Resources DOE Project Profile Database EPA dchpp (CHP Policies and Incentives Database energy.gov/chp-projects

43 CHP Project Resources DOE CHP Installation Database (List of all known CHP systems in U.S.) Low-Cost CHP Screening and Other Technical Assistance from the CHP TAP energy.gov/chp-installs energy.gov/chptap

44 o Proven technologies are commercially available and cover a full range of sizes and applications o Ameren Illinois offers both electric and natural gas energy efficiency incentives for CHP in Illinois o There are available resources to help your facility evaluate CHP

45 o Contact Midwest CHP TAP for assistance if: o Interested in having a Qualification Screening performed to determine if there is an opportunity for CHP at your site o If you already have an existing CHP plant and interested in expanding it o Need an unbiased 3rd Party Review of a proposal

46 Questions? 46

47 BUSINESS PROGRAM ENERGY ADVISORS 1. Chad Whitehead Steven Smith Rod Rhoads Mark Steinmetz Michael Harrison Mike Thompson Larry Erwin Ameren Illinois Business Program Energy Advisors Call to request a consultation with an Energy Advisor 47

48 Thank You Graeme Miller Assistant Director (312) Cliff Haefke Director (312)

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