Energy Efficiency and Security: Still Important in a World With Low-cost Fuel. E360 Forum Chicago, IL October 5, 2017

Transcription

1 Energy Efficiency and Security: Still Important in a World With Low-cost Fuel E360 Forum Chicago, IL October 5, 2017 Tom Hoopes Director, Marketing and Business Development Vilter Manufacturing Alan Simchick District Sales Manager Vilter Manufacturing

2 Food and Beverage Industry: 8% of all U.S. Manufacturing Energy Use Applied Energy 36% Lost Energy 64% Process heating consumes five times the energy of cooling Only 36% of energy purchased is fully applied Momentary loss of any one energy source can cost millions Energy Consumed vs. Lost (TBTUs)

3 Spark Spread: A Tale of Three States Natural gas prices have declined 35% since 2011 Electricity prices have increased 17% since 2011 Tri-state area spread varies by 3% in Illinois, up to 15% in Wisconsin Utility-Provided Electricity Is Subject to Both Seasonal Cost Variances and Demand Charges. 3

4 Waste Heat Recovery Heat Pumps 4

5 Heat Pumps Transform Lost Energy to Useable Energy Waste Heat Sources Compressors Heat Uses Hot Water Condensers Hot Air Other Other 5

6 Industrial Heat Pump Technology Is Dependent on High-Pressure Compressors; the Vilter Single Screw Is Proven to 1,500 PSI Ammonia Heat Pumps Ammonia is suitable to provide hot water to 195 F. One heat pump can save as much as 7 million gallons/year of water lost to evaporation. Compressor technology is available to use CO 2 for hot water. 6

7 Examples of Typical Installations Poultry Processing Facility, Chile, S.A. Global Food Processing Company, U.S. Two (2) VSSH-1201s at 14 F suction, delivering 350 GPM water at 129 F, saving more than $300,000/year VSSH-451 at 66 F to 86 F suction, delivering 170 GPM water at 145 F, saving more than $250,000/year 7

8 Industrial Heat Pump Heats Drammen, Norway, Using North Sea Water Customer Challenge: reduce dependency on oil and biomass fuels to lower carbon emissions Drammen Central District Heat Pump Plant Port city of 60,000; 200 buildings seeking sustainability, reduce water use and CO 2 emissions; drive down energy costs Aggressive Emissions Regulations Increasing Fuel Costs, Reduce GHG Emissions Improve Operational Sustainability Project Results: Startup: 2011, providing 90 C water Saving 4M/year and 6.7M liters fuel COP: 3.0, reduction of 12.5 M tons of CO 2 e Providing 14 MW heating capacity, 85% of city requirements Emerson Vilter Ammonia Heat Pumps Ammonia Heat Pump Solution 8

9 CHP On-site Power Options 9

10 Energy Efficiency of CHP 65% Waste Heat Rejected Simple Cycle 35% Useful Energy Produced for Electricity Not common over 500 kw Applications: Standby Power Offices Storage 100% Fuel Input 20% Waste Heat Rejected 40% Useful Energy Produced for Electricity 40% Useful Energy Produced for Hot Water/Steam Combined Cycle/CHP Facilities and processes requiring heat and power Applications: Food and beverage Pharma Chemicals Steel, pulp and paper 10

11 What Is Cogeneration (aka CHP)? Simultaneous production of electricity and useful heat and/or cooling from a single fuel source Combustion Gas Turbine (GTG) Boilers or Heat Exchangers Good solution for more than 4 MW and where pipeline gas is available Typically biomass fuel and steam to process and turbine Internal Combustion Engine (ICE) Steam Turbine Generators (STG) Typical in installations less than 3 MW Typical where large amounts of process steam required 11

12 Who Should Consider CHP? High, year-round demand for steam, hot water or hot air (or chilled water in summer months) (or 800,000 BTU/hour of heat) Focused on reducing GHG emissions Energy cost is significant percentage of operating cost (> 5%) About to install new boiler or genset Energy champion on staff (who is empowered to do the right thing) Use at least 30 m 3 /hour of natural gas to produce thermal energy (heat) weekdays from 7 a.m. to 11 p.m. Use at least 250 kw e of electricity during these same hours Steady demand for process chilled water (60 tons) is great too. Struggles with electricity supply reliability 12

13 Typical System Diagram of an ICE Considerations: Up to 80% efficient Good source of hot water (from water jacket) and steam (from exhaust stack) Typically lower installed cost than turbine, but higher maintenance Low (15 psi) gas pressure under 2 MW 13

14 Examples of ICE Installations 800 kw e ICE-based CHP system 8 MW e ICE-based CHP system (3 x 2.67 MW e ) Food Processing Acoustic weather-proof enclosure Complete with SCR and hot water heat recovery Packaging Company Steam production from exhaust gas circuit Hot water production from jacket water circuit Requirements for Steam and Hot Water 14

15 Typical Gas Turbine Plant Structure Gas turbines have precise fuel requirements; a fuel gas booster is often necessary to assure proper performance. Vilter Fuel Gas Booster 15

16 Examples of Gas Turbine Projects 3.9 MW e GTG-based CHP System 4.8 MW e GTC-based CHP System O -type HRSG Container Manufacturer Excess electric power wheeled to another sister facility through the utility grid Proven electrical islanding system Food Manufacturer Provides steam and hot water Provides ~90% of facility peak-load power requirements Eliminates wasted product caused by power outages Typical Installations 16

17 4.8 MW CHP System December 2015 Completion Total project: $12.4M Available incentives for this project: $5.1M CO-GEN 15-Year IRR 21% (after-tax, before financing, with incentives) Projected annual savings: up to $1.8M 100% funding available for detailed engineering study GTG with HRSG up to 90,000 lbs/hour of steam Savings = 100 manufacturing hours + lost product Potential steam savings in the process equipment: $97,000 per year On average, 12 power interruptions occur per year 17

18 Global Food Producer Story Getting Buy-In Fits into global food producers environmental road map and aligns with vision, mission, goals Needed to put a convincing story together before proposing to any stakeholder (ultimately approved by Corporate/Board of Directors) Craft the right message to sell Answer all questions ( why s ) and worst-case scenarios in your proposal, e.g., building out best and worst cases for fuel costs, electrical costs, out for 20+ years Get the right buy-in from all stakeholders across the company (full support received by management and senior executive team at world headquarters) 18

19 Reduced energy costs: 75 85% isentropic efficiency Compare invested capital, fuel and maintenance under a CHP system with the costs of purchased power and thermal energy (hot water, steam, chilled water) in the base case Protection of revenue streams: On-site generation and improved reliability allow businesses and critical infrastructure to remain online in the event of a major power outage Hedge against volatile energy prices: Allows end users to supply own power when prices for electricity are very high CHP can accept a variety of feedstocks (e.g., natural gas, biogas, coal, biomass); therefore, a facility can build fuel-switching capabilities to hedge high fuel prices Offset capital costs: CHP can be installed in place of boilers or chillers in new construction projects Replace when major HVAC equipment needs to be replaced or updated 19

20 Thank You! Questions? DISCLAIMER Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated herein or that other measures may not be required. 20