CHP as a Risk Reduction Strategy

Transcription

1 CHP as a Risk Reduction Strategy May 1, 2014 Ray Deyoe Managing Director Integral Power, LLC

2 ERCOT Resource IN-Adequacy?

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7 Note: ORDC = Operating Reserve Demand Curve

8 So how s the weather?

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14 What s UP with Natural Gas?

15 $/MMBTU Historical Natural Gas Price Henry Hub, LA Shale Gas boom and cont d slow economy U.S. Recession

16 NYMEX Henry Hub Forward Strip April 30, 2014

17 GREEN TECHNOLOGIES

18 LARGEST DRIVER IS FUEL SAVINGS

19 RULES-OF-THUMB FOR CHP SUCCESS Identify match between electrical and thermal loads Size based on thermal load, then limit size if power is too large Minimize merchant (grid) export which only has wholesale value Eliminate condensing (yields efficiencies in the 75-90% range) Utilize internal (waste) fuels and waste heat first Take advantage of existing infrastructure Take advantage of CAPEX savings from deferred equipment replacement or upgrades Physical location can drive cost significantly minimize distance to steam/water and electrical interconnects Typically requires a long term corporate view to control own power destiny

20 Case Study Gulf Coast CHP Project

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23 GE Energy 1 x LM6000PG Gas Turbine Solar 3 x Titan 130 Gas Turbines Solar 3 x Titan 130 with Cond STG Wartsila 3 x 18V50SG Gas Fired Recips Wartsila 6 x 20V34SG Gas Fired Recips Solar 2 x Titan 130 Gas Turbines Net Power, 70F 45.8MW 42.8 MW 47.6 MW 55.0 MW 54.7 MW 28.5 MW (N-1) Power 0 MW 28.5 MW 33.3 MW 36.7 MW 45.6 MW 14.2 MW Unfired Steam 137 kpph 193 kpph 132 kpph 73 kpph 76 kpph 127 kpph Max Steam Capacity H.R. Unfired, BTU/kWh-LHV Avg Stm BTU/kWh-LHV Natural Gas Compression kpph 264+ kpph 4,628 4,325 5,020 5,172 5,358 4, ,815 4, psig 370 psig 370 psig None None 370 psig

24 Project moving ahead based on 2 x Gas Turbines with duct fired HRSGs and BACT emission controls: HRSG duct firing capacity allows one unit to back up the other in N-1 scenario Taking advantage of existing plant BFW system, steam distribution system, and other infrastructure Gas pipeline upgrade is necessary

25 ENERGY OUT ENERGY IN

26 Compact Layout allows for expansion to a 3 rd Unit

27 PROJECT BENEFITS Project heat rate of ~4100 BTU/KWh-LHV (84% efficiency) is over 2 x more efficient than current ERCOT grid CAPEX savings... 3 x Boilers in Plant 2 need to be replaced anyway Utility savings are substantial (~$8 million/yr in Year 1 assuming $4.20 nat gas) not a question of whether the payback will be there, simply how long Adds reliability to the plant, and improved ability to recover from hurricanes Allows plant to control own destiny with regard to electricity (stability in the face of uncertain future power prices)

28 WHY NOW? ERCOT Reserve Margins continue to tighten Texas Drought continues more focus on water conservation and future availability Natural gas market is stable within a bandwidth EPC market fairly soft now, but picking up in TX & LA due to long term reduced and stable natural gas prices Take advantage of CAPEX savings for Plant 2 Boilers

29 10 MW TECHNOLOGY COMPARISON

30 PERMITTING EXAMPLE

31 HELPFUL RESOURCES CHP Emissions Calculator Calculates and compares CO 2, SO 2 and NO x from a CHP system to those of a separate heat and power system, calcs estimated greenhouse gas reductions, tons of carbon equivalent and savings of emissions from passenger vehicles. CHP Project Development Handbook Tips and strategies for successful CHP project development. Catalog of CHP Technologies Overview of CHP system function and key concepts. Also includes useful estimates about the cost and performance of different types of prime movers.

32 THANK YOU! Combined Heat & Power Development & Engineering Integral Power, LLC

33 MISSION: Develop, build, own & operate waste-to-energy and highly efficient CHP projects DEVELOPMENT TARGETS: Thermally integrated Combined Heat & Power (CHP) Waste Heat-to-Power (WHP) from calcining, incineration & cement kilns; Waste fuels such as wellhead flare gas and process gases FUNDING: Funding for IP projects is provided by Energy Investors Funds and other prominent power industry equity funds depending on location and application

34 Example Project 45MW (equivalent) Texas CHP Project

35 Flue Gas Heat Power Payments Development, Engr Capital Heat Payments Power Project Co. Revenue 600 psig Steam Standby / Back-up Power, Export via QF Steam Payments Makeup Water

36 3 x Waste Heat Recovery Boilers 2.5 mile, 20 steam pipeline kpph steam export 45 MW equivalent output 1,000 gpm water treatment ~5 trillion BTUs/yr captured 159,000 tons/yr CO2 offset Commercial Operation 2005 EPA Energy Star Award 2010

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38 Integral Power Engineering CHP Consulting/Engineering Services Project feasibility studies Thermal/cycle development Short circuit & load flow analysis Process Flow Diagrams (PFD) and P&IDs Owners Engineering

39 State-of-the-Art Modeling Tools Thermoflow (GTPro) AutoCAD Thermoflow (GTPro & PEACE) EE Short Circuit Microsoft Project (Scheduling)

40 Broad Industry Experience 12 Years of CHP Development and Engineering Efforts Carbon Black Cement & Lime Refining Coke Calcining Texas (1) Texas (3) Texas (4) Texas (1) Louisiana (2) California (3) Louisiana (2) Louisiana (2) Oklahoma (1) Florida (1) Oklahoma (2) Oklahoma (1) Canada (1) Oklahoma (1) California (1) Argentina (1) International (4) Canada (1) Pulp & Paper Merchant Power Waste Incinerators Chemicals Texas (1) Texas (3) Texas (3) Texas (4) Virginia (1) New York (1) Florida (1) California (1) Alaska (1) Mexico (3)

41 Development & Technical Expertise Management Team Ray Deyoe Chemical Engineer 25 years industry experience Energy project development, related sales Chairman, Texas CHP Initiative Board of Directors, Heat-is-Power Assn Ted Boriack Electrical Engineer, P.E., MBA 30 years industry experience Utility & refinery power system design Power contracts & Project Management Financial modeling

42 Past and Present Customers and Partners Houston Advanced Research Center