Commercial 1 Track Unit 6 Combined Heat & Power (CHP)

Transcription

1 Track: Commercial Natural Gas I Unit #6: CHP Technologies An overview of CHP Technologies for Commercial Facilities Mr. Eric Burgis, Energy Solutions Center 2018 Energy Solutions Center Inc. All Rights Reserved 1 Presentation Outline Combined Heat & Power Terminology CHP Market Overview Conventional Power Generation vs. CHP Power Generation Equipment Heat Recovery Systems Economics and Incentives Equipment Suppliers Other Resources All Rights Reserved 2 Terms & Market Overview All Rights Reserved 3 1

2 What is CHP? Combined Heat and Power (CHP) is the sequential / simultaneous production of two different forms of useful energy from a single input energy Single primary fuel source natural gas Fully integrated system produces usable heat as well as power (either electricity or shaft power) All Rights Reserved 4 How it works Combined Heat & Power systems provide power independence with up to 80% overall thermal efficiency All Rights Reserved 5 Known by Many Names CCHP (Combined Cooling, Heating & Power) CHPB (CHP for Buildings) Cogen (Cogeneration) DE (Distributed Energy) DG (Distributed Generation) IES (Integrated Energy Systems) TES (Total Energy Systems) Trigen (Trigeneration) Today we will use CHP (Combined Heat and Power) to reinforce the importance of recovering the waste heat! All Rights Reserved 6 2

3 Cogeneration CHP has come to replace the word Cogeneration in many modern applications Cogeneration is specifically listed in the Public Utility Regulatory Policies Act of 1978 (PURPA) This act further defines a Qualifying Facility (QF) Electric Utilities must allow interconnection from QFs There is lots of paperwork to become a QF The term CHP is often used to distance a project from PURPA rules All Rights Reserved 7 Components of CHP CHP systems consist of an integrated package Prime mover engine, turbine or fuel cell Generator Heat recovery system Electrical interconnections All Rights Reserved 8 Spark Spread Definition Spark spread is the relative difference between the price of fuel and the price of power. Spark spread is highly dependent on the efficiency of conversion. For a CHP system, spark spread is the difference between the cost of fuel for the CHP system to produce power and heat on site and the offset cost of purchased grid power. Understanding the cost helps companies determine their bottom line costs All Rights Reserved 9 3

4 Spark Spread Calculation Spark Spread = Cost of Electricity from the grid Cost of electricity from CHP If the spark spread is negative, then it is cheaper to buy electricity from the grid If it is positive, then it is advisable to run the CHP system All Rights Reserved 10 Spark Spreads 2016 Average Retail Commercial Energy prices from EIA converted to $/MMBTU using 1030 BTU/CF and 3412 BTU/KWH. Average Commercial Gas Electric Spark Average Commercial Gas Electric Spark Retail Pricing $/MMBTU $/MMBTU Spread Retail Pricing $/MMBTU $/MMBTU Spread U.S. $ 7.07 $ Montana $ 6.92 $ Alabama $ $ Nebraska $ 5.29 $ Alaska $ 8.10 $ Nevada $ 6.64 $ Arizona $ 8.57 $ New Hampshire $ $ Arkansas $ 6.93 $ New Jersey $ 7.70 $ California $ 8.17 $ New Mexico $ 5.51 $ Colorado $ 6.23 $ New York $ 6.00 $ Connecticut $ 8.53 $ North Carolina $ 7.49 $ Delaware $ 9.30 $ North Dakota $ 5.29 $ District of Columbia $ 9.59 $ Ohio $ 5.57 $ Florida $ $ Oklahoma $ 7.50 $ Georgia $ 7.69 $ Oregon $ 9.03 $ Hawaii $ $ Pennsylvania $ 7.91 $ Idaho $ 6.91 $ Rhode Island $ $ Illinois $ 6.93 $ South Carolina $ 8.17 $ Indiana $ 6.36 $ South Dakota $ 5.48 $ Iowa $ 5.82 $ Tennessee $ 7.57 $ Kansas $ 8.17 $ Texas $ 6.69 $ Kentucky $ 7.66 $ Utah $ 7.21 $ Louisiana $ 7.69 $ Vermont $ 6.44 $ Maine $ $ Virginia $ 7.02 $ Maryland $ 8.68 $ Washington $ 8.24 $ Massachusetts $ 9.20 $ West Virginia $ 7.52 $ Michigan $ 6.70 $ Wisconsin $ 6.11 $ Minnesota $ 6.25 $ Wyoming $ 6.35 $ Mississippi $ 7.57 $ Alberta $ 4.41 $ Missouri $ 7.66 $ Ontario - Retail $ 5.80 $ In general, we are looking for electric prices that are 3X or more the cost of natural gas. All Rights Reserved 11 Spark Spreads Spark Spread > 5 Spark Spread 4 5 Spark Spread 3 4 Spark Spread 2 3 Between 2015 & 2016 there were 15 states that increased spark spread by 1 level and just one state that reduced it s spark spread. Based on 2016 retail commercial energy rates from EIA. DC A 3 or higher on a scale from 1 5 is a good spark spread. All Rights Reserved 12 4

5 Interconnection Interconnection standards includes the technical requirements and the legal procedures whereby a customer sited generator interfaces with the electric grid. Generally, the electric distribution utility must review and approve a proposed DG system within a framework established by the state s public utilities commission. Utilities traditionally have determined which systems may connect to the grid and under what circumstances. This arrangement presents a conflict of interest that can result in significant barriers to customer sited CHP All Rights Reserved 13 EPA Policies & Incentives Database chp policies and incentives database Sample:>> All Rights Reserved 14 DSIRE Policy Database All Rights Reserved 15 5

6 States with Interconnection Policies for CHP All Rights Reserved 16 Net Metering Net metering is a service to an electric consumer under which electric energy generated by that electric consumer from an eligible on site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period Net metering allows the consumer to spin the meter backwards and put power back on the grid at times when more power is being produced than consumed This usually means excess power is being sold back to the electric utility at retail rates versus wholesale This is important, for small scale power generation All Rights Reserved 17 Net Metering for Gas Fired CHP State Market Utilities Max capacity Credit Arizona R,C & I IOU & Co ops customer s load. Excess ann. Max of 125% of Credited to next bill at retail rate. at avoided cost. Connecticut R,C & I IOU CHP & FC 2 MW Carried over as a kwh credit for one year; Reimbursed to customer at the avoided cost of wholesale power at the end of the year District of R,C & I IOU CHP & FC 1 MW Credited to customer's next bill indefinitely at retail rate for systems 100 kw or Columbia less, and at generation rate for larger systems up to 1MW Florida R,C & I IOU CHP 2 MW Credited to next bill at retail rate. Excess ann. at avoided cost Maine R,C & I All utilities CHP 660 kw Credited to customer s next bill at retail rate & FC for IOU, 100 kw for muni and co op Maryland R,C & I All utilities CHP & FC 2 MW (30 kw for micro CHP) Credited to customer s next bill at retail rate Massachusetts R,C & I IOU CHP & FC 60 kw 10MW depending on Varies by system type and customer class System Class Minnesota R,C & I All utilities CHP 1MW or community garden 5MW Credited to customer s next bill at retail rate New Hampshire R,C & I All utilities CHP 1 MW Credited to customer s next bill at retail rate & FC New Mexico R,C & I IOU & Co ops CHP 80 MW Credited to customer s next bill at avoided cost New York R,C & I IOU CHP FC 10 kw Credited to customer s next bill at retail rate & FC Res & 1.5 MW non residential. mchp 10 kw North Dakota R,C & I IOU CHP 100 kw Reconciled monthly at avoided cost rate Oklahoma R,C & I IOU CHP 100 kw or 25,000 Credited to customer s next bill or varies & Co ops kwh/year by utility Pennsylvania R,C & I IOU CHP 3 MW for non residential; 50 Credited to customer s next bill at retail rate & FC kw for residential South Carolina Res/Com Util>100K CHP 20 KW residential, 1,000 KW non residential Credited to customer s next bill at retail rate customers Utah R,C & I IOU & Co ops CHP & FC 2 MW for non residential; 25 kw for Credited to customer s next bill at retail rate for residential. Different formula for commercial. residential 20 kw for micro CHP, Vermont Res/Com All utilities CHP 500 KW for other Credited to customer s next bill at retail rate systems Washington R,C & I All utilities CHP 100 kw Credited to customer s next bill at retail rate West Virginia R,C & I All utilities CHP 2 MW for Credited to customer s next bill at retail rate & FC industrial; 500 kw for commercial; 25 kw for residential for IOU > 30K customers 20 kw (up to 100 kw for some utilities) Wisconsin R,C & I IOU & CHP Varies by utility municipal utilities All Rights Reserved 18 (2/2018) 6

7 Net Metering for Other Generation States offering Net metering for Fuel Cells using natural gas, not other CHP State Market Utilities Max capacity Credit California R,C & I next bill IOU 1 MW Credited to customer s at retail rate Delaware R,C & I All utilities Varies, 25KW for residential Credited to customer s next bill at retail rate Georgia R,C & I All utilities 100 kw non residential; 10 kw Credited to customer s next bill at a predetermined residential rate filed with the commission Idaho Res/Com 3 utilities ~ 25KW residential, 100KW Credited to customer s next bill at retail rate commercial Indiana R,C & I IOU 1 MW Credited to customer s next bill at retail rate Montana Res/Com Co ops 10KW Credited to customer s next bill at retail rate Oregon R,C & I All utilities Varies Credited to customer s next bill at retail rate (except for IOUs Idaho Power) States now offering Net Metering for Microturbines on Gas, but not for other CHP Arkansas R,C & I IOU & Co ops 300 kw for non resid,; 25 kw for Credited to customer's next bill at retail rate. residential 40 KW (heading Illinois R,C & I IOU & Alt. to 2MW) Credited to customer's next bill at retail rate. retailers Louisiana R, C & Ag All utilities Commercial and agricultural: 300 kw, Credited to customer's next bill at retail rate; carries over Residential: 25 kw indefinitely Ohio R,C & I IOU No limit Credited to customer s next bill at unbundled generation rate All Rights Reserved 19 Volumes (Tcf) Is it the Right Time for CHP? North American Natural Gas Production From wide range of sources Gas prices are stable. Plenty of gas for the future. Good Signs for success of CHP! Source: IEO2011&table=6 IEO2011&region=0 0&cases=Reference 0504a_1630 Mexico Canada United States All Rights Reserved 20 Average Gas vs. Electric Pricing $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ Average Retail Commercial U.S. Energy Prices including Short Term EIA Outlook ($/MMBTU) Electric is more than 3X the price of gas Commercial Electric Commercial Natural Gas *EIA data. Uses 1032 BTU/CF Natural Gas and 3412 BTU/KWH Electric. (2016 &2017 are from EIA STEO) All Rights Reserved 21 7

8 Future Electric Pricing Projected to remain at ~3X Natural Gas Price EIA s 2018 Annual Energy Outlook All Rights Reserved 22 General Rule of Thumb for CHP Payback Analysis varying the price of natural gas & electricity engine sizes for electrical load Natural Gas Price, $/MMBtu $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $ $ $ $ $ $ $ $ $ $ Electricity Price, $/kwh Greater than 5 year payback Less than 5 year payback *From GE Presentation; The Business Case for CHP, 5/3/12 All Rights Reserved 23 Combined Heat & Power Best Applications for CHP High coincidental thermal and electric loads Long operating hours Central heating and cooling system Minimal electric distribution connections Favorable cost of natural gas relative to cost of buying electric power from grid (Good Spark Spread) Reasonable installed cost differential between conventional and CHP systems Special electrical, cooling or heating needs All Rights Reserved 24 8

9 Combined Heat and Power Market Overview All Rights Reserved 25 Commercial Building Energy Profile Energy Use in Commercial Buildings ( Electric, hot water, heating, & cooling be supplied through CHP ) Computing 6% Office Equipment 3% Refrigeration 10% Cooking 7% Lighting 10% Other 13% Water Heating 7% Space Heating 25% Cooling 9% Ventilation 10% 41% of energy use in commercial buildings is for heating, water heating, and cooling. Source: EIA CBECS Table 5, Release date 3/18/16 All Rights Reserved 26 Capacity (MW) CHP Market Activity Remains Constrained 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Low gas prices and higher efficiency created a Combined Cycle merchant generation boom Annual CHP Capacity Additions (MW) 0 Source: DOE CHP Installation Database (U.S. installations as of December 31, 2016) All Rights Reserved 27 9

10 Existing Commercial CHP Sites by Market Installed Cogeneration Capacity by Market Segment Commercial, 8% Residential, 3% Agricultural, 1% Industrial CHP Breakout Other, 19% Pulp & Paper, 9% Chemicals, 35% Industrial, 88% Refining, 21% Food Processing, 11% Data from: Combined Heat & Power Study, IHS Markit, 9/7/17 Primary Metals, 5% All Rights Reserved 28 Existing Commercial CHP Capacity by Business Type (11,802 MW) SIC 8220: Colleges/Univ. SIC 4961: District Energy SIC 4939: Utilities SIC 8060: Hospital/Healthcare SIC 4952: Wastewater Treatment SIC 9700: Military SIC 4953: Solid Waste Facilites SIC 9100: Government Fac. SIC 4500: Air Transportation SIC 6512: Comm. Building SIC 9200: Courts/Prisons SIC 4200: Warehousing/Cold Storage SIC 7011: Hotels SIC 6513: Apartments SIC 8900: Services NEC SIC 7990: Amusement/Rec. SIC 8211: Schools SIC 4800: Communications SIC 5000: Wholesale/Retail SIC 8051: Nursing Homes SIC 8300: Comm. Services SIC 5411: Food Stores SIC 4000: Ground Transportation SIC 8400: Zoos/Museums SIC 7200: Laundries SIC 5812: Restaurants SIC 7542: Carwashs Source: DOE CHP Installation Database (U.S. installations as of December 31, 2016) Energy Solutions MW Installed Center Inc. >>> All Rights 0.0 Reserved , , , , , Most Growth Expected to be Non Industrial GTM Research, All Rights Reserved 30 10

11 Combined Heat & Power (CHP) Current CHP Installations in the United States deployment All Rights Reserved 31 Technical Potential for CHP More than 149 GW of CHP/WHP technical potential at over 291,000 sites in the U.S. Source: USDOE, "Combined Heat and Power (CHP) Technical Potential in the United States," March 2016 All Rights Reserved 32 Technical Potential for CHP by State Energy Solutions Center Source: Inc. USDOE, All Rights "Combined Reserved Heat and Power (CHP) Technical Potential in the United States," March

12 Technical Potential for CHP by State All Rights Reserved 34 Source: USDOE, "Combined Heat and Power (CHP) Technical Potential in the United States," March 2016 Conventional Power Generation vs. Combined Heat & Power Why Combined Heat & Power? Help Stabilize the Grid Economical Efficient Quality Power Environmentally Sound Conventional Power Generation All Rights Reserved 35 Transmission and Distribution Congestion Constraints Continue to Increase 9,000 MW > 7,000 MW < 8,000 MW Generation: (Growing) Transmission & Distribution: (?????) Load: (Growing) Reducing electric demand helps stabilize the grid and reduces the need for costly transmission and distribution upgrades Photos courtesy of ESC All Rights Reserved 36 12

13 The Aged Electric Grid is Stressed with Congestion and Constraints 300 Reported U.S. Electric Emergency and Disturbances # of Disturbances per Year Fuel Supply Load shedding System Operations Severe Weather Vandalism Other OE 417 Electric Emergency and Disturbance Reports All Rights Reserved 37 Fuel Supply 3% Electric Disturbance Breakout Electric Disturbance Event Breakout Vandalism 24% Load shedding 11% Other 1% CHP won t stop weather related electric disturbances, but does help stabilize the grid and allows those facilities with CHP to continue operations during a black out. System Operations 11% Severe Weather 50% % of Weather Related Disturbances ( ) Flood Earthquake High Winds 1% 10% Lightning Thunderstorm 25% Severe Weather Weather Winter 33% Snow Ice 17% Hurricane 9% OE 417 Electric Emergency and Disturbance Reports High Heat 1% Tornado Wild Fire Tropical Storm 1% 1% 2% All Rights Reserved 38 Combined Heat & Power CHP is good for business Economical Improves overall energy efficiency and fuel utilization thereby lowering electric and overall energy costs Offers reliability during outages less downtime Enhances power quality Equipment to meet virtually every need size to fit your need All Rights Reserved 39 13

14 Source to Site Efficiency Reduce Generation Losses and T&D Line Losses with CHP 2013 AGA Policy Handbook All Rights Reserved 40 CHP is Efficient AGA Playbook All Rights Reserved 41 CHP Delivers Energy and Emissions Savings (Large scale) Category 10 MW CHP 10 MW PV 10 MW Wind Annual Capacity Factor 85% 22% 34% Annual Electricity, MWh 74,446 19,272 29,784 Annual Useful Heat Provided, MWh th 114,544 None None Annual Energy Savings, MMBtu 317, , ,527 Annual CO 2 Savings, Tons 43,227 17,857 27,598 *CHP Market Status, June 9, 2016, Bruce Hedman, Institute for Industrial Productivity Based on: 10 MW Gas Turbine CHP 27% electric efficiency, 69% total efficiency Electricity displaces National All Fossil Average Generation (egrid 2010 ) 9,572 Btu/kWh, 1,745 lbs CO 2/MWh,, 6% T&D losses Thermal displaces 80% efficient on site natural gas boiler All Rights Reserved 42 14

15 CHP Delivers Energy and Emissions Savings Fitness Center: (Small scale) 12,000 Sq Ft 10 KW DE System 1 Solar PV Wind CHP Installed Cost ($/KW) $5,300 $6,000 $7,280 Annual Savings (/KW installed) 2 $156 $216 $592 Space Required (Sq Ft/KW installed) CO2 Saved (/KW installed) 3 1,871 2,588 6,502 Ave. hours /year at max power 4 1,550 2,175 8,311 Elderly Care Facility: 75,000 Sq Ft 65 KW DE System 1 Solar PV Wind CHP Installed Cost ($/KW) $4,600 $3,300 $2,250 Annual Savings (/KW installed) 2 $157 $161 $583 Space Required (Sq Ft/KW installed) CO2 Saved (/KW installed) 3 1,878 1,933 6,369 Ave. hours /year at max power 4 1,550 1,595 8,322 Study: Small Scale Combined Heat and Power (CHP) versus Renewable Energy Comparison Study NGTC 4/17/14 All Rights Reserved 43 Combined Heat & Power Quality Power Very consistent power quality Avoids outages from transmission and distribution problems Alleviates electric grid congestion & constraints Decentralized CHP locations less vulnerable to major system problems Environmentally Sound Produces lower emissions compared to separate power and heat production Conserves natural resources All Rights Reserved 44 All U.S. Carbon Emissions DOE: Environment Baseline, Volume 1: Greenhouse Gas Emissions All Rights Reserved from the U.S. Power Sector, June

16 U.S. Power Generation and CO2 Emissions DOE: Environment Baseline, Volume 1: Greenhouse Gas Emissions from the U.S. Power Sector, June 2016 All Rights Reserved 46 Average Emissions DOE: Environment Baseline, Volume 1: Greenhouse Gas Emissions from the U.S. Power Sector, June 2016 All Rights Reserved 47 GHG Emitting Facilities by Fuel Type for U.S. Power Plants All Rights Reserved DOE: Environment Baseline, Volume 1: Greenhouse Gas Emissions from the U.S. Power Sector, June

17 U.S. EPA CHP Emissions Calculator Excel spreadsheet available at: emissions calculator All Rights Reserved 49 CHP is a Crowd Pleaser Compared to the Alternative Groups you typically run into when trying to build a new power plant: NIMBY: Not in My Back Yard Banana: Build Absolutely Nothing Anywhere or Near Anybody Cave: Citizens Against Virtually Everything Neighbors don t generally challenge a business looking to install CHP. All Rights Reserved 50 Available Technologies Prime Movers: Engine Drives Turbines Microturbines Fuel Cells Heat Recovery Equipment All Rights Reserved 51 17

18 Existing Prime Movers Number of CHP Sites Fuel Cells, 3% Other, 3% Microturbi nes, 9% Fuel Cells, 0.1% Microturbines, 0.1% Capacity (MW) Other, 1.0% Steam Turbines, 15% Gas Turbines, 15% Reciprocating Engines, 55% Gas Turbines, 64.0% 4,395 Sites 82,598 MW Steam Turbines, 32.0% Reciprocating Engines, 3.0% DOE CHP Installation Database, U.S. installations as of 12/31/16 All Rights Reserved 52 Engine Drive Generation Units All Rights Reserved 53 Engine Drives Reciprocating internal combustion engines Products are available for a range of power generation market applications and duty cycles Standby and emergency power Peaking service Intermediate and base load power Combined heat and power (CHP) All Rights Reserved 54 18

19 Engine Drives Reciprocating engines are available for power generation applications in sizes ranging from a 1 kw to over 8+ MW Natural gas engines Spark ignited Water cooled Air cooled smaller packaged units only Low speed All Rights Reserved 55 Engine Drives Facts Reciprocating Engines Two basic types Spark ignition natural gas preferred for CHP Compression ignition: bi fuel and diesel fueled Low first cost Fast start up Proven reliability when properly maintained Excellent load following characteristics Significant heat recovery potential NG Capacities: 1kW to 8+ MW All Rights Reserved 56 Engine Drive Energy Use Energy Output ~ 32% ~ 2% Input Energy 100% ~ 32% ~ 33% Shaft Horsepower Jacket Water/Oil Exhaust Radiated Heat Engines these days can be in the range of 42 to 46 % efficient LHV All Rights Reserved 57 19

20 Schematic of System Steam / Hot Water Exhaust Gas Heat Exchanger Exhaust Jacket Water Heat Exchanger Lube Oil Heat Exchanger Cold Water Air Natural Gas Exhaust Valve Turbocharger Crankshaft Intake Valve Ignition Source Piston AC Electricity Generator All Rights Reserved 58 Engine Drives Bi Fuel Equipment Combust natural gas and diesel fuel Diesel fuel acts as a pilot fuel Starts the combustion process (Run a mix of roughly 75% 80% natural gas and the balance is diesel) No loss of power output Conversion kits available for existing diesel generator sets Adds dual fuel option to existing diesel power generation equipment All Rights Reserved 59 Bi Fuel System All Rights Reserved 60 20

21 Black Start Capability Black Start (not available on all units) The use of a permanent magnet generator and inverter together can provide the CHP unit with added black start capability to come on line when the utility grid is down Generator units without black start capability can only operate when the electric utility is on line. Provides the facility with supplemental/stand by generation during utility outages All Rights Reserved 61 Turbine Generators All Rights Reserved 62 Turbines A turbine is a rotary engine that extracts energy from a fluid flow and converts it into useful work Excellent heat recovery opportunities Minimal working parts Run at high speed All Rights Reserved 63 21

22 Turbine Types Natural Gas Combustion Turbines Steam Turbines Microturbines All Rights Reserved 64 Natural Gas Turbine Generator One large packaged unit will provide power and engineered heat recovery All Rights Reserved 65 Gas Turbine Gas Turbines several hundred kilowatts to over several hundred megawatts Run at high speeds Used in power only generation or in combined heat and power (CHP) systems Produce high quality heat Lower maintenance compared to engines Requires higher skilled maintenance person All Rights Reserved 66 22

23 Schematic of Gas Turbine System High Pressure Compressor Fuel Air Combustor To Exhaust or Post Combustion Emission Controls Low Pressure Compressor Cooling Media Intercooler Gear Box Power Turbine Turbine drives compressor Generator All Rights Reserved 67 Turbine CHP Steam or Hot Water Exhaust Heat Electricity Use Natural gas and produce electricity and hot water or steam All Rights Reserved 68 Gas Turbines High reliability Low emissions Able to produce high quality steam for: Building heat or absorption chillers and process heating/consumption District heating steam Steam turbines in combined cycle plant configurations All Rights Reserved 69 23

24 Gas Turbines Well suited for larger continuous duty CHP applications No cooling required (except in inlet cooling applications) All Rights Reserved 70 Gas Turbines Efficiency Gains Turbine inlet cooling Cooling the turbine inlet air even by a few degrees increases power output Cooled air is denser, giving the turbine a higher mass flow rate Produces increased turbine output and efficiency as much as 0.4% per degree Fahrenheit All Rights Reserved 71 Optimizing Inlet Air Temperature Increases Power Output A gas turbine generator with cooling system installed at a site having an ambient temperature of 100 F (37.7 C) and a relative humidity of 30% could deliver up to 7.6% more power than a gas turbine without inlet cooling Source: ASHRAE, Donaldson Co. All Rights Reserved 72 24

25 Combines Gas Turbine with a Steam Turbine Gas Turbine driven Generators with Heat Recovery Steam Generator (HRSG) to provide steam to drive a Steam Turbine Generator Offers all advantages of two prime movers, plus large amounts of power on short notice Sizes: Very large Combined Cycle Plants All Rights Reserved 73 Turbine Operation Natural Gas Simple Cycle Electricity Combined Cycle Steam Electricity All Rights Reserved Steam Turbines Energy transferred from boiler to turbine through high pressure steam that powers the turbine and generator Ideal in situations where large amounts of steam relative to electricity are needed Offers extremely long life and simple maintenance All Rights Reserved 75 25

26 Steam Turbines Able to meet more than one site heat grade requirement Power to heat ratio can be varied Capacities: 50kW to several hundred MW Optional back pressure turbine can be incorporated to reduce steam pressure in system and generate electricity All Rights Reserved 76 Steam Turbine Generator Power range from 50 kw to 50 MW Synchronous or induction generator options turbo.com/default All Rights Reserved 77 Microturbine Units Several small units will provide power and engineered heat recovery All Rights Reserved 78 26

27 Microturbines Microturbines kw Run at high speeds Used in power only generation or in combined heat and power (CHP) systems Able to operate on a variety of fuels, including natural gas, sour gases (high sulfur, low Btu content), and liquid fuels such as gasoline, kerosene, and diesel fuel/distillate heating oil All Rights Reserved 79 Microturbines Small, compact and lightweight packaged systems High grade heat available Known for installation flexibility Low emissions No cooling required Sizes: 30 to 200 kw Note: 600 kw, 800 kw and 1 MW pre packed systems are available from Capstone using 200kW microturbines All Rights Reserved 80 Schematic of Microturbine System Heat to User Recuperator (most units) Fuel Compressor (if necessary) Natural Gas Exhaust Low Temperature Water / Air Combustor AC Electricity Inverter Rectifier Air inlet Compressor Turbine Generator All Rights Reserved

28 Fuel Cells Fuel cell systems are composed of three primary subsystems: Fuel cell stack that generates direct current electricity Many include a Fuel processor that converts the natural gas into a hydrogen rich feed stream The power conditioner that processes the electric energy into alternating current or regulated direct current All Rights Reserved 82 Fuel Cells Fuel cell stacks available and under development: Can be fairly quiet Produce no pollutants if run on hydrogen Have few moving parts Have potentially high system fuel efficiencies All Rights Reserved 83 Fuel Cell Technologies Fuel cells produce power electrochemically from hydrogen delivered to the negative pole (anode) of the cell and oxygen delivered to the positive pole (cathode) The hydrogen can come from a variety of sources, but the most economic method is by reforming of natural gas or liquid fuels All Rights Reserved 84 28

29 Fuel Cell Technologies Several liquid and solid media support the electrochemical reactions: Phosphoric acid (PAFC) Molten carbonate (MCFC) Solid oxide (SOFC) Proton exchange membrane (PEM) Each type comprises a distinct fuel cell technology with its own performance characteristics and development schedule All Rights Reserved 85 Schematic of Fuel Cell System 93% Exhaust CO 2 &N 2 + CH 4 AC Gas Fuel Processor DC - Inverter Hydrogen Fuel Cell Stack Customer Load Water Heat Exchanger H E A T Air Cooling Loop All Rights Reserved 86 Micro CHP All Rights Reserved 87 29

30 Micro CHP (mchp) Small scale cogeneration system for small commercial use Converts fuel to heat and electricity Micro CHP units are sized up to 50 kwe Types Available Engine driven Fuel Cell Under Development: ORC, Stirling Engine, TAC All Rights Reserved 88 mchp versus Standard CHP In many cases large commercial & industrial CHP systems are Electricity led Electricity is the main output and heat is the by product Micro CHP systems in homes or smaller commercial applications are often Heat led Heat as the main output and electricity as the by product We generally size Micro CHP to not exceed heat requirements All Rights Reserved 89 Heat Recovery All Rights Reserved 90 30

31 Thermal Output Simple Cycle Combustion Turbine: High Volume, High Temp Exhaust ( F) Recuperated Microturbine: High Volume, Medium Temp Exhaust ( F) Reciprocating Engine: Low Volume, High Temp Exhaust ( F) + Hot Water ( F) Fuel Cell (SOFC): Low Volume, Medium Temp Exhaust ( F) All Rights Reserved 91 Heat Recovery Heat recovery is an essential element for CHP Options exist for cooling water and exhaust heat depending on prime mover technology Packaged/optimized systems available based on project requirements All Rights Reserved 92 Heat Recovery Plate and Frame Heat Exchanger Multiple thin slightly separated plates Large surface area Fluid flow passages allow heat transfer between two fluids All Rights Reserved 93 31

32 Heat Recovery Shell & Tube Heat Exchanger Series of tubes that contain fluid to be heated Second fluid is located in shell and pumped around tubes transferring heat to fluid in tubes All Rights Reserved 94 Heat Recovery Steam Generator (HRSG) Steam Flows can be from ~10,000 to ~300,000 #/hr. Pressure > 2000 PSI Photo courtesy of Cleaver Brooks All Rights Reserved 95 Heat Recovery Heat Pipe Heat Exchanger (HPHX) Thermosyphon Technology High thermal recovery rates Gas to Water models Good for absorption Gas to Steam models Exhaust Gas to Super heated Steam Photos courtesy of AMS Energy All Rights Reserved 96 32

33 Heat Recovery on Engines Four sources of usable waste heat from a reciprocating engine: exhaust gas engine jacket cooling water lube oil cooling water turbocharger cooling Heat can be recovered in the form of hot water or low pressure steam (<30 psig) Medium pressure steam (up to about 150 psig) can be generated from the engine's high temperature exhaust gas All Rights Reserved 97 Engine Heat Recovery (Heat Recovered from Exhaust, Cooling Jacket and Lube System) Heat from Exhaust Engine Jacket Water Lube Oil Cooling All Rights Reserved 98 Heat Recovery Turbines & Micro Turbines Heat recovery is from the turbine combustion exhaust Recovered in the form of hot air, water or steam May add a duct burner to raise exhaust temperature and supplement steam production Electricity Recovered Heat All Rights Reserved 99 33

34 Gas Turbine System Heat Recovery Steam to Facility Duct Burner Waste Heat Boiler Exhaust Gear Box Sometimes a duct burner is added to increase the quality of the waste heat before entering a Heat Recovery Steam generator (HRSG) Power Turbine Generator All Rights Reserved 100 Hot exhaust gases from the turbine pass through the HRSG producing steam for steam turbine drives, heating, cooling, or process uses Can add supplemental firing if exhaust does not provide enough heat Heat Recovery Turbines Produce Steam forum_wd/nchpttrflyonsfinal.pdf All Rights Reserved 101 Fuel Cell Heat Recovery (Hot water is byproduct of process) Oxygen Hot Water Electricity Hydrogen Natural Gas All Rights Reserved

35 Using Waste Heat for Cooling Thermal Technologies for CHP are able to produce cooling from waste heat and include: E f f i c i e n c y Steam Turbine Chillers Double Effect Absorbers Single Effect Absorbers Desiccants Adsorbers Cooling and Dehumidification Systems are available across a wide range of CHP configurations and sizes, from 50 kw to multi MW applications. See also All Rights Reserved 103 Economics and Incentives A detailed Life Cycle Cost Analysis is essential for evaluating a CHP project at any facility All Rights Reserved 104 Simple Payback Tool All Rights Reserved 35

36 20 Yr Life Cycle Cost ($mil) Life Cycle Cost Analysis CHP Options Compared to Purchased Electricity 1000 Kw Example Only Values will vary by region and project Simple Payback Internal Rate of Return Annual Energy Cost Avg Maintenance Installed Cost Recip Micro turbine Turbine 1.9 yr 3.2 yr 4.4 yr 51% 29% 19% All Rights Reserved 106 Economic Analysis Understand the concepts and principles of the economic analysis Know the project real costs Do your economics make financial sense? All Rights Reserved 107 Issues Economic Analysis Securing financial utility billing and thermal use information from customers can be difficult Don t just trust the numbers understand the project economics and do a reality check IMPORTANT the competition will probably see your analysis so be fair and accurate All Rights Reserved

37 Comparisons for Reference: Installed Costs, O & M Costs & More DOE CHP Fact Sheet 2017: deployment All Rights Reserved CHP Federal Tax Credits What is the tax incentive for Combined Heat and Power (CHP) property? Energy Improvement and Extension Act of 2008 (H.R. 6049) provides a 10% investment tax credit (ITC) for the first 15 MW of CHP property for systems less than 50MW CHP qualifies for 5 year depreciation under Modified Accelerated Cost Recovery System (MACRS) Bipartisan Budget Act of 2018 Re instates ITC that expired on 12/31/16 The CHP system efficiency must exceed 60% Electric must be >= 20% & Thermal Energy must be >= 20% tax credits in final budget deal/516709/ All Rights Reserved 110 Federal Support CHP Tax Credits What are the incentives and how do they work? The incentive is an investment tax credit, which is a reduction in either overall individual or overall business tax liabilities The incentive can also be applied to the alternative minimum tax All Rights Reserved

38 CHP Definition For ITC EIEA 2008; H.R. 6049, section 103 Energy Credit The term combined heat and power system property means property comprising a system: which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications), which produces at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof), the energy efficiency percentage of which exceeds 60 percent All Rights Reserved 112 Construction begins after CHP Tax Credit Construction begins before Investment tax Credit (ITC) 12/31/2008 1/1/ % A 10% investment tax credit for CHP property, applicable to only the first 15MW of CHP property & systems must be less than 50MW. CHP system must be 60 percent efficient (on a lower heating value basis), producing at least 20% of its useful energy as electricity and at least another 20% as useful thermal energy. Construction must begin by 1/1/2022 Bipartisan Budget Act of 2018 (Page ): All Rights Reserved 113 Micro Turbine Tax Credit Construction begins after Construction begins before Investment tax Credit (ITC) 12/31/2008 1/1/ % Credits are for 10% of the cost, up to $200 per kw of power that can be produced. To qualify, systems must have an efficiency of at least 26% and must have a capacity of less than 2,000 kw. Bipartisan Budget Act of 2018 (Page ): All Rights Reserved

39 Construction begins after Fuel Cell Tax Credit Construction begins before Investment tax Credit (ITC) 12/31/2008 1/1/ % 12/31/19 1/1/ % 12/31/20 1/1/ % Credits are for 30% of the cost, up to $3,000 per kw of power that can be produced (Legislation states $1,500 max per.5kw) To qualify systems must have an efficiency of at least 30% and must have a capacity of at least 0.5 kw. Must be placed in service before 1/1/2024 or 0% incentive Bipartisan Budget Act of 2018 (Page ): All Rights Reserved 115 Equipment Supplier Resources Numerous manufacturers offer equipment to supply electricity and thermal heat. Refer to the following listing or visit the ESC website for an additional listing of vendors. All Rights Reserved 116 Engine Generator Manufacturers All Rights Reserved Source: UnderstandingCHP.com 39

40 Engineered CHP Systems Source: UnderstandingCHP.com All Rights Reserved Microturbine Manufacturers Source: UnderstandingCHP.com All Rights Reserved Micro CHP Capstone 30 kw Micro Turbine EC Power 19.2 kw IC Engine Marathon Engine Qnergy M Trigen 4.4 kw IC 5 kw stirling 5 & 10 kw IC Engine Tecogen 35 + kw IC Engine Yanmar 5, 10, & 35 kw IC Engine kw All Rights Reserved Source: UnderstandingCHP.com 40

41 Combustion Gas Turbines All Rights Reserved Source: UnderstandingCHP.com Fuel Cell Manufacturers Source: UnderstandingCHP.com All Rights Reserved Associations and Resources Numerous Trade Associations and web resources are available to assist and provide you additional market information and resources All Rights Reserved

42 ESC s CHP Consortium All Rights Reserved 124 DOE CHP Technical Assistance Partnerships for CHP (CHP TAPs) Northwest David Van Holde, P.E. Washington State University VanHoldeD@energy.wsu.edu Pacific Gene Kogan Center for Sustainable Energy gene.kogan@energycenter.org For more information visit technical assistance partnerships chp taps All Rights Reserved Southwest Gavin Dillingham, Ph.D. HARC gdillingham@harcresearch.org Midwest Cliff Haefke University of Illinois at Chicago chaefk1@uic.edu Northeast Tom Bourgeois Pace University tbourgeois@law.pace.edu Beka Kosanovic, Ph.D. University of Massachusetts Amherst kosanovi@ecs.umass.edu Mid Atlantic Jim Freihaut, Ph.D. Pennsylvania State University Southeast jdf11@psu.edu Isaac Panzarella, P.E. North Carolina State University ipanzarella@ncsu.edu 125 Regional Application Centers: Technical Assistance Feasibility Steps Phone and Meeting Inquiries Site Data Collection Level I Screening Analysis Level II Conceptual / Financial Analysis Level III Investment Grade Study RAC Capabilities Analysis Performance thru Level II Consulting Expertise thru all Steps Bringing customers and CHP engineering community together RAC Accomplishments Over 285 assessments and over 1,000 technical support activities Represents over 1.8 GW installed and / or in development Procurement / Installation / Operation All Rights Reserved Courtesy PEA/U.S. DOE

43 State Support CHP Many states include CHP or waste heat recovery in Renewable Portfolio Standards (RPS) and/or Alternative Energy Portfolio Standards (APS) All Rights Reserved 127 CHP partnership: Portfolio Standards and the Promotion of Combined Heat And Power, March 2016 CHP Association All Rights Reserved 128 EPA Web Site CHP Information technologies All Rights Reserved

44 Associations & Resources DOE U.S. Department of Energy Located in Washington, DC Numerous resources available deployment All Rights Reserved 130 Thank you All Rights Reserved