WOC 5 - Utilization SG 5.1 Industrial Utilization. Case study: Efficient use of CHP for process & heating in industry in Italy

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1 WOC 5 - Utilization SG 5.1 Industrial Utilization Case study: Efficient use of CHP for process & heating in industry in Italy Egidio Adamo eni gas & power - Italy Buenos Aires 6 th October 2009

2 1 Introduction Agenda - Items 2 Case study in textile sector 3 Conclusions

3 Introduction Cogeneration is the simultaneous generation of electrical and thermal energy in the same process, both considered useful products Example of CHP plant lay out EXHAUST Main benefits of CHP Less energy wasting in production STEAM Less losses in power transmission GAS ENGINE HOT WATER POWER Reduction of emissions

4 Introduction Suitability and feasibility Suitability conditions CHP is mainly suitable if there is a simultaneous demand of power & heat Feasibility study To evaluate effectiveness of CHP with respect to separate production Industrial sectors In Industry, CHP is particularly suitable in these sectors: Chemical Food Textile Paper mills Brick and ceramics

5 Introduction In many Countries, high efficiency CHP is defined by law In European Union (EU Directive 2004/8/EC) starting from 2011, minimum Primary Energy Saving is required PES 10% (size > 1 MWe) In Italy high efficiency CHP is eligible to White Certificates System, a mechanism to incentive energy efficiency Development of CHP needs also: ESCos Authority Grid Operators smooth administrative processes reduction of CAPEX incentives to recover external costs of energy market information & culture

6 Case study Natural gas CHP in textile industry COTONIFICIO ALBINI S.p.A. Lombardia - ITALY

7 Case study: Industrial process PROCESS: Cotton dyeing and weaving factory located in Albino P R O C E S S Dyeing drying Preparation vaporization sizing Weaving Quality controls E N E R G Y D E M A N D Working program ~ 6,500 h/y Electricity 12.5 GWh/y Heat 11.1 GWh/y Previous good experience A 1.8 MWe CHP plant 3 engines was already installed, to be substituted because of obsolescence of engines

8 Case study: Feasibility study Energia elettrica consumata Energy audit ~ Termico caldaia Termico cogeneratore Energia Termico totale media mobile totale media mobile cogenerazione elettrica media mobile caldaia 1600 consumata MWe ~ 2.0 MWt gen-00 mar-00 mag-00 lug-00 set-00 nov-00 gen-01 mar-01 mag-01 lug-01 set-01 nov-01 gen-02 mar-02 mag-02 lug-02 set-02 nov-02 gen-03 mar-03 mag-03 lug-03 set-03 nov-03 gen-04 mar-04 mag-04 lug-04 set-04 nov-04 gen-05 mar-05 mag-05 lug-05 2 Choice of kind and size of CHP 2 internal combustion engines 1.7 MWe total 3 Profits estimation vs. separate production Saving of Primary Energy 25 % * * according to Italian regulation Economic saving (including O&M costs) 270,000 /y

9 Case study: Main actions Optimization of power generation and heat recovery P O W E R 2 internal combustion Natural Gas engines: 1/1 heat/power ratio cheaper than GT 1 new engine: 1 MWe 1 existing engine: 0,7 MWe H E A T Low pressure steam (instead of 11 barg) Direct use of hot water instead of steam Hot water storage tank with closed loop 4 barg 65 C, 95 C 200 m 3 RESULTS Optimization of plant efficiency & flexibility Preservation of high quality of products

10 Case study: Some images Images of the new 1 MW Engine & Steam Generator EXHAUST STEAM N. GAS ENGINE HOT WATER POWER

11 Case study: Saving GWh C H P 16 PRIMARY ENERGY POWER 3 Th. Eff. El. Eff. 38% 42% 6 7 HEAT 3 Efficient Saving of energy: 30 % * Clean CO 2 avoided: 1.8 kt/y ** N O C H P 15 FACTORY % % 1 8 Cost effective Saving: ~300,000 /y*** ~ 20 % Pay back time ~ 4 y * referred to Italian regulation ** referred to: 575 tco 2 /GWhe and 2.35 tco 2 /Toe NG ***compared to separate production Data are for reference purpose only

12 Conclusions Energy efficiency is a virtual energy source, leading to reduction of greenhouse gas emission and stimulation of technology research eni is committed to promoting energy saving behaviour and offers consultancy services aimed at promoting energy efficiency and CHP among industrial clients CHP can play an important role in: Energy saving Reducing CO 2 emissions Reducing cost of energy supply Good fields of development are: District heating Industry

13 Italian firm Cotonificio Albini SpA for information & data on industrial CHP case study WOC 5 - SG 5.1 Chairman, Vice Chairman & all the members for their cooperation Thank you for your attention! Egidio Adamo eni gas & power - Italy Phone: egidio.adamo@eni.it

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