Enhancing a Business Case for Cogeneration Systems

Transcription

1 Integrated Energy Solutions for Every Community Enhancing a Business Case for Cogeneration Systems Markham DES, Recip trigen Thermal Energy Issues Benefits of CHP Systems System Reliability Air Pollution & GHGs Three Energy Products Combined Heat & Power Manfred Klein MA Klein & Assoc. maklein@rogers.com GE DLN Queens U. & Kingston Hospital, GTCHP World s 1 st Power Plant, CHP in NY

2 Canadian Gas-fired CHP Energy Systems Large Industrial Cogeneration Small Industrial CHP Municipal District Energy About 9000 MWe in Canada ~ 200 PJ heat (7000 MWth)? Many different types of units; Aeroderivative Gas Turbines Small & Large Industrial GTs BP & Ext. Steam Turbines Heat Recovery Steam Gen s Recip engines Absorption Chillers Standby Boilers Turboexpanders 2

3 Critical Elements for CHP Systems Awareness of Opportunity - Nearby Site Plant Sizing to Match Thermal Load Heat to Power ratio (H:P) Energy Quality (high & low) Electric Utility Connection, Smart Grid? Energy Reliability, Islanding Design Availability of Clean Nat.Gas, Bio & H 2 fuels GHG Allocation and Credits Low Air Pollution, CFCs, Water Impacts Output-based Emission Rules How do we value these elements in Project Economics or Payback? MA Klein & Assoc. 3

4 Value of Local Energy Security Power Disruptions rare? 1998 Ice storm 2003 Ontario, NE 2012 NY/NJ 2013 Calgary, Toronto Heat, Power & Cooling services affected Very Important to Public, Commerce, and Industrial Processes (DG, General Electric) Onsite CHP plants can function through Outages Islanding Design & Operation Interconnection and Safety Do we include this benefit in a Value Proposition?

5 Air Emissions Kg/MWh Air Pollution SO2 NOx PM Coal Oil Gas GTCC GTCHP Bio IGCC Kg/MWh Carbon Dioxide Cannot produce Air Pollution without making CO CCS Coal Oil Gas GTCC GTCHP Bio IGCC MA Klein & Assoc. Comparing Emissions from Thermal Energy 5

6 Clean Energy Balancing Act Energy Supply Choices Energy Security Global Atmosphere Climate & Ozone Layer Conservation & Efficiency Emissions Trading Policy Regulations Technology Demand & Consumption System Reliability Economic Performance 6

7 Cogeneration at the National Research Council (1993) Reasons for CHP at NRC Demand for 6 MW th steam year round Make use of an inactive absorption chiller Produce 4.5 MW e power economically Demonstrate leadership Reduce GHG emissions Contributing Partners Enbridge Ontario Hydro Ontario Ministry of Energy NRC Thermal & Electrical Load Thermal (Avg steam, lbs/hr, 100 psi) Summer 12,000 Winter 55,000 Electrical (MWe) Summer 11 Winter 8 Base load 4.5 Natural Gas or Light Oil Fuels

8 5 MWe CHP Plant - Multiple Benefits Heat Rate 4.5 GJ/MWhr (80%) MWhrs, $10 MM capital Annual $MM = ($1(cap) + $0.4(O&M) + $1.2(Fuel) ) = $2.6 MM/yr vs Power Import $70/MWhr = $2.1 MM/yr Environmental Air Benefits ($MM/yr) CO2@ $20/t = 0.30 CACs@ $2000/t = 0.40 CFCs, toxics@ $5/gr = 0.10 total emission reduction valuation = $0.75 MM/yr Other Corporate Benefits Avoid 2 km new T&D wires, losses; $ = $0.3 MM/yr Avoid $1 MM old Boiler capital upgrade; $0.1 MM/yr Avoid 1 major process power outage in 5 yrs $0.2 MM/yr total private benefits = $0.6 MM/yr

9 University of Calgary CHP Central Heating & Cooling Plant Expansion Project (2012) Replace 4 old boilers (40+ yrs) Use existing district plant 13 MW Solar DLN gas turbine HRSG - Hot Water (not steam) Heating base load: 50 GJ/hr Electrical base load: 11 MWe Onsite Electricity needs Island mode - Reliability Inlet air cooling Black start capability (2 MW standby generator)

10 Small Gas Turbine and Recip CHP for Industrial and Institutional Applications Small systems, sized to thermal loads Can use absorption chilling in summer District energy with hot water or steam Estimated 5000 MWth of CHP potential by 2030 Sonoco Paper, Brantford Labatts London ON SAIT College, Calgary York University, Toronto Birchmount, Markham DES Hamilton ON Recip DES 10 Countryside DES, London ON (OPA)

11 Some Federal Things Done in Support of CHP ( ) CCME Gas Turbine Emission Guidelines NOx ppm Power Heat 40 g/gj National Industry/Govt Consensus Output-Based Std for Efficiency 240 g/gj 140 g/gj 3-20 MW > 20 MWe Accelerated Capital Cost Allowance System Efficiency Tax Depreciation Issues Arising From Market Depreciation and Climate Change, CERI Federal budget changes; 2000 Class 1; CCA from 4% to 8%, Class 43.2; - new 50% ACCA rate ( > 72% efficiency) - district energy piping included 11

12 Objectives & Value Proposition for CHP & DES $$ Value Energy Security and Reliability Minimize & Avoid future GHG Emissions Low Air Pollution and Toxics Reduce CFCs from Cooling? Maximize Energy Savings/Efficiency Power transmission losses, wires cost Avoid Boiler Capital Upgrades Low Water Impacts? Energy and Fuel Diversity (renewables)? More Building Space Available Maintaining Energy $$ in Communities? Cost-effective Investments, Multiple Quantifiable Long Term Benefits MA Klein & Assoc. 12

13 Concluding Remarks Cogen Systems have Large Potential for Cleaner Energy Gaseous fuels are very clean, with many types of CHP equipment Need a Robust CHP Business Case, & Policy Clarity on Clean Energy Recognize Energy Security & Resilience, Thermal Profiles Synergies, Long-term Co-benefits, Integrated Resource Planning Systems could provide up to 20% of national energy use Training, Outreach, Site Visits, Partnerships TCPL Stittsville Comp Stn GTAA Plant Tour, 2006 TCPL Carseland, 2012