Making Big Cuts in Cooling Costs in Big Buildings: A Revolution. Or Not? You choose.

Transcription

1 Making Big Cuts in Cooling Costs in Big Buildings: A Revolution. Or Not? You choose. FMA Weston, FL May 2011 Roger Richmond-Smith Chairman Smardt Chiller Group Inc

2 PRESENTER BIASES Turbocor oil-free centrifugal (OFC) compressor technology. - founded six prototype generations - launched now more than 16,000 compressors in the field worldwide Smardt Chiller Group - founded 1999 to optimize the Turbocor OFC technology in chillers chillers in the field (6000 compressors) - water cooled chillers 60 TR through 1200 TR - air cooled chillers 60 TR through 400 TR - condenserless chillers 60 TR through 800 TR - Kiltech chiller plant optimization systems 82 installed

3 Turbocor TT300 First oil-free centrifugal compressor TR with magnetic bearings

4 Smardt oil-free centrifugal chillers Air cooled tonr Water cooled tonr Evaporatively cooled tonR

5 Outline this morning How big is the problem Big advances in technology Chiller EE a heroic opportunity Traditional chiller business model New chiller technology New paradigm Whole chiller plant EE Next steps

6 An increasingly fragile planet. Global warming, climate instability. Kids blame us..

7 Climate change is highly visible, and human connection beyond reasonable doubt

8 IPCC Third Assessment Report April 2001 Summary For Policymakers

9 natural levels

10 Global energy consumption 2005: 447 Quad Btu 2030: 702 Quad Btu 6% 7% 6% 8% 34% 38% 26% 28% 23% 24% Liquids Coal Natural Gas Hydro/Renewables Nuclear Source: EIA /IEO 2007 & Frank Verrastro, CSIS

11 billion tonnes of oil equivalent Growing energy demand is unsustainable Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms Other renewables Biomass Hydro Nuclear Gas Oil Coal

12 Imperatives for Energy Efficiency: National and International Security

13 Geopolitical changes threaten energy stability. Worldwide. Canada Oil sands concerns US Disasters Europe Oil & Gas Cut Off Latin America Anti-US policies Europe Politics & Pipelines Iraq: Unstable North Africa Revolutions Russia Policy Iran Nuclear Threats Pakistan Political Turmoil China Demand explosion N-Korea Nuclear Threats Strait of Malacca Piracy Source: Frank Verrastro, CSIS

14 Energy Efficiency at the Nexus Affordable/Accessible Economic Objectives Reliable and Secure Promotes/Supports Economic Growth & Employment Environmentally Benign Environmental Objectives Carbon Capture and Storage Low/no emissions Nuclear Natural Gas Energy Efficiency Renewable Energy Oil Coal Promotes/Support s Sustainable Environment Defensible Security & Foreign Policy Objectives Source: Frank Verrastro, CSIS

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18 EE much less glamorous than renewables but far easier and far more cost-effective McKinsey study: annual world-wide investment of $170 billion in energy efficiency through 2020 can: cut global growth in energy demand by ½ save $900 billion a year in avoided energy costs dramatically reduce greenhouse gas emissions Source: The McKinsey Global Institute

19 Energy efficiency results ,000 Per Capita Electricity Sales (not including self-generation) (kwh/person) 12,000 10,000 8,000 6,000 4,000 2,000 United States California 0

20 EE in Buildings a major opportunity for the planet Share of Global Energy-Related CO2 Emissions by Country (2005) US Other Sectors, 13% US Buildings, 8% China, 19% Russia, 6% Japan, 4% India, 4% Others, 32%, Western Europe, 13% Source: Energy Information Administration

21 US built environment very large energy consumer 40% total US energy consumption HVAC is biggest contributor uses 30% of total US energy consumption Major user (>40%) in this category is chillers over 50 TR Over 50% of the total energy consumed by this sector, primarily in HVAC, is wasted (Laurence Berkeley Lab, 1998)

22 How to unlock the EE potential of large chiller plants?

23 Chiller business model: problem

24 Key aspects of the problem Traditional iceberg model stresses lowest first cost for chillers Major ownership costs start after warranty expires Chiller companies harvest high margins from after-market parts and labor pricing ENERGY COST the major component

25 Key aspects of the problem Traditional chiller efficiencies calculated at 100% load (only relevant less than 4% of annual operating hours) Traditional capacity over-sized by 20%, as safety margin Traditional chiller condemned to operate inefficiently 100% of the time Net result: traditional chiller specification and business model is obsolete New chiller business model required

26 Paradigm shift imminent: driven by change in climate, energy and technology Increased comprehension that chiller plants in the US operate at part-load at least 96% of the time Increased uptake of variable-speed drives Oil-free centrifugal chillers (with inbuilt VSD and PFC electronics) offer annual chiller energy savings well over 30% Annual maintenance costs well over 50% lower Total cost of ownership of new-technology chillers much lower than traditional business model

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28 Total costs in 2 years of operation, S. Diego Whole of life costing model: lower lifetime costs mean higher first costs operating costs maintenance soft start kit noise reduction first costs a disadvantage turns into a benefit operating costs maintenance first costs Leading screw chiller Oil-free VFD chiller

29 Moves to new market paradigm Strong move to IPLV rather than full load as comparative chiller metric (IPLV standard is 100%, 75%, 50%, 25% load) Noticeable movement away from first cost to whole of life costing of chiller purchase, not only among younger engineers

30 Whole life cost analysis chiller plant. Comparing the icebergs Royal Academy of Engineering (UK) 1998 US DOE, ASHRAE models very similar 25 year lifespan is assumed

31 Office building: lifetime energy and operating costs 400% of first cost New paradigm pays back chiller cost differential 8 times. Simple payback 4.5 years at 10c/kWh.

32 School 1-12: lifetime energy and operating costs 600% of first cost New paradigm pays back chiller cost differential 12 times. Simple payback 3 years.

33 Hospital: lifetime energy and operating costs 1200% of first cost New paradigm pays back chiller cost differential 20 times. Simple payback 1.5 years.

34 Whole life cost analysis chiller plants Cost elements include: Equipment economic life Energy consumption Utility costs Maintenance program Occupation patterns Taxation, tax credits, borrowing costs M&V Ref: New York, McGraw-Hill Kirk & Dell Isola. Life cycle costing for design professionals.

35 Whole life cost analysis barriers to adoption Developer greed Owner ignorance Tenant masochism Competition between building stakeholders Artificial separation of capex and opex planning, management and reporting Lack of framework and GAAP standards Building and systems complexity

36 Performance standards start to reflect the new market paradigm ASHRAE : finally shifts some emphasis away from the traditional full load paradigm with Path A (full load) and Path B (slightly lower full load with substantially higher IPLV) at minimum level delivers 30% energy savings over BUT strong resistance from numerous old-school engineers. New whole-building standard ASHRAE 189 in public draft Sep 2009 reflects design approach aligned with LEED. But process is slow.

37 New technology paradigm Oil-free variable-speed chillers offer 30+% saving on annual energy costs Lifetime maintenance costs cut by 50+% Higher first cost (around 20%) New focus on lifetime ownership cost BUT, oil-free chillers still a disruptive new technology, so market flux and uncertainty to be expected

38 New technology: oil-free VSD compressors move up- industry consensus Turbocor first oil-free patent 1993 Carrier/UTRC/USAF/SBIR project with hydrostatic bearings 1995 York series with mag bearings from 1998, new launch now rolling out Trane oil-free with ceramic bearings 2002 Mitsubishi Heavy with mag bearings in lab 2002 Turbocor takes market lead with launch of TT300 at AHR Expo Chicago 2003 Daikin follows 2009

39 Revolutionary oil-free technology unveiled 2003, accelerating growth since then WC chiller IPLV.375 kw/tr 2 amp starting current soft start 60 to 190 TR capacity range Homopolar magnetic bearings 48,000 RPM synchronous permanent magnet direct drive motor fully integrated control system including bearing and inverter (VFD) control, with PFC Turbocor 2003 McQuay 2007 York 2010

40 Magnetic bearings mean no oil system

41 Typical IPLV comparison Recips: kw/TR (2-3 COP) Screws: kw/TR (5 COP) Turbocors: 0.4kw/TR (9 COP)

42 kwh consumption Sustainable energy efficiency with oil degradation (ASHRAE study 2002) 300 kwr (85 tr) flooded chiller with 3% oil in refrigerant 900, , , , , , , , , Time Period Turbocor TT300 McQuay Frame 4 Screw McQuay 050K Centrifugal Trane RTUA80 Screw

43 Removing compressor oil removes major chiller maintenance costs Copeland and AHRI report that over 70% of chiller failures in the field are due to problems with compressor oil return Oil-free design removes 70% of conventional field service risks and costs Current US field reports confirm maintenance cost reduction by at least 50% Traditional chiller business model challenged

44 Oil-free centrifugal chillers now well-proven in market worldwide Water cooled: often use flooded shell and tube evaporator and condenser e.g. Smardt, McQuay, York Air cooled: e.g. Smardt Modular product increasing in difficult retrofit sites e.g. Smardt, Multistack Some markets now showing oil-free centrifugals at over 30% chiller market share by value e.g. Australia, UK, German industrial

45 First Turbocor beta units, California. March Still running reliably. 41% energy savings.

46 AXA Insurance, Melbourne. 38% savings First Australian installation 2002

47 Sears Mall, Halifax % year-on-year energy savings: first Canadian installation

48 Juvenile Hall, San Diego

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50 Next steps in chiller paradigm shift 1. Start with oil-free centrifugal chiller 2. Expand variable-frequency concept to embrace whole chiller plant Add VFD s to pumps and tower fans Optimize efficiency of whole chiller plant as an integrated system Measure and verify with calibrated instruments Example: integration of Smardt chillers with the Kiltech CPECS (Central Plant Energy Control System) CPECS algorithms optimize the combination of VFD operating speeds to deliver lowest energy consumption for the system

51 VFD s save energy at part load ASHRAE confirms most HVAC systems run at part load more than 96% of the time; load profiles vary with type of building, function and location. Below is a Phoenix school:

52 VFD s save energy at part load VFD-driven centrifugal machines like pumps, centrifugal chillers & fans offer large energy reductions when operating at part load. Power input is proportional to the cube of the shaft speed 80% of design speed means only 50% of full speed energy Power is proportional to the cube of the shaft speed VFD chilled water plants can save energy approx 99% of the year

53 Typical efficiency 10yr old centrifugal chiller plant typically use fixed speed chilled water pumps, chillers and tower fans and have very little ability to reduce energy at part load. Chiller.8 kw/tr Pumps.35 Tower fans.05 Total: 1.24 kw/tr Chiller Pumps Tower Fans = 0.80 kw/ton = 0.35 kw/ton = 0.05 kw/ton Total = 1.24 kw/ton

54 Typical efficiency 2010 optimized VFD chiller plant New plants operating with VFD driven chillers and cooling tower fans, constant speed chiller pumps and VFD driven building pumps Chiller.40 kw/tr Pumps.23 kw/tr Tower fans.03 kw/tr Total plant.71 kw/tr Premium Equipment / Standard Equipment Chiller = 0.40 kw/ton 0.51 kw/ton Pumps = 0.23 kw/ton 0.30 kw/ton Tower Fans = 0.03 kw/ton 0.04 kw/ton Total = 0.71 kw/ton 0.85 kw/ton

55 Optimized chiller plant empirical data CPECS Off Mean = 0.79kW/Ton CPECS On Mean = 0.36kW/Ton

56 Energy comparison A 2010 screw plant vs 2010 CPECS & Smardt oil free centrifugal 45% to 60% energy reduction based on location and type of occupancy.

57 Energy comparison B VFD centrifugal plant vs CPECS & Smardt oil free centrifugal 35% to 47% energy reduction based on location and type of occupancy.

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60 Summary The planet s in trouble EE can help in a big way: investment is increasing Chiller plant EE can be a win of heroic proportions, but start with the new life-cycle-costing business model EE-optimized chiller plants have arrived Smardt oil-free centrifugal chillers, 80+ CPECS optimized plants. Many older HVAC engineers and building owners don t yet understand that the world has changed. Irreversibly. They need help.

61 Revolutionary chiller technology is here. The lifetime-costing paradigm shift has started. The revolution needs leaders: is your building a candidate?