Combined Heat and Power (CHP) in Ohio and Available Technical Assistance

Transcription

1 Combined Heat and Power (CHP) in Ohio and Available Technical Assistance Dive into Process Efficiency Workshop October 14, 2017 Graeme Miller US DOE Midwest CHP TAP 1

2 Agenda US DOE CHP TAPs CHP Overview CHP Technologies CHP Market Applications AEP Ohio CHP Incentive Program Developing a Project with the CHP TAPs

3 DOE CHP Technical Assistance Partnerships (CHP TAPs) DOE's CHP TAPs promote and assist in transforming the market for CHP, waste heat to power, and district energy or microgrid with CHP throughout the United States. Key services include: o o o Market Opportunity Analysis Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors Education and Outreach Providing information on the energy and nonenergy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others. Technical Assistance Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy or microgrid with CHP in their facility and to help them through the development process from initial CHP screening to installation. 3

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5 Energy Utilization in the Utility Sector Conversion Losses 66.6% Two-thirds of the fuel used to generate power in the US is lost as heat Source: Energy Information Association Lawrence Livermore National Laboratory,

6 CHP: A Key Part of Our Energy Future o Form of Distributed Generation (DG) o An integrated system o Located at or near a building / facility o Provides at least a portion of the electrical load and o Uses thermal energy for: o Space Heating / Cooling o Process Heating / Cooling o Dehumidification CHP provides efficient, clean, reliable, affordable energy today and for the future. Source: hp_clean_energy_solution.pdf 6

7 Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP) Separate Energy Delivery: Electric generation 33% Thermal generation - 80% Combined efficiency 45% to 55% CHP Energy Efficiency (combined heat and power) 70% to 85% 7

8 Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Waste Heat to Power CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP) HRSG/Steam Turbine Organic Rankine Cycle Backpressure Turbine Steam Turbine Electricity Heat Fuel first applied to produce useful thermal energy for the process Waste heat is utilized to produce electricity and possibly additional thermal energy for the process Fuel Heat recovery steam boiler Energy Intensive Industrial Process Waste heat from the industrial process Heat produced for the industrial process Simultaneous generation of heat and electricity No additional fossil fuel combustion (no incremental emissions) Normally produces larger amounts electric generation (often exports electricity to the grid; base load electric power) 8

9 What Are the Benefits of CHP? o CHP is more efficient than separate generation of electricity and heating/cooling o Higher efficiency translates to lower operating costs (but requires capital investment) o Higher efficiency reduces emissions of pollutants o CHP can also increase energy reliability and enhance power quality 9

10 Emerging National Drivers for CHP o Benefits of CHP recognized by policymakers DOE / EPA CHP Report (8/2012) o State Portfolio Standards (RPS, EEPS), Tax Incentives, Grants, standby rates, etc. o Favorable outlook for natural gas supply and price in North America o Opportunities created by environmental drivers o Utilities finding economic value o Energy resiliency and critical infrastructure nergy/pdfs/chp_clean_energy_solution.pdf 10

11 CHP Today in the United States 82.6 GW of installed CHP at nearly 4,400 industrial and commercial facilities 8% of U.S. Electric Generating Capacity; 14% of Manufacturing Avoids more than 1.8 quadrillion Btus of fuel consumption annually Avoids 241 million metric tons of CO 2 compared to separate production Slide prepared on

12 CHP Today in Ohio 527 MW of installed CHP at 65 industrial and commercial facilities Primary Metals comprises 226 MW of CHP capacity Source: DOE CHP Installation Database (U.S Installations as of December 31, 2016) 12

13 The Potential for Additional CHP Is Nationwide 13 October 11, 2016

14 Number of Potential CHP Sites Ohio Industrial CHP Technical Potential (3,981 2,864 sites) > 20 MW 5-20 MW 1-5 MW MW kw Source: 14

15 Post Offices Retail Refrigerated Warehouses Airports Water Treatment Food Stores Restaurants Commercial Office Buildings Multifamily Buildings Hotels Laundries Data Centers Car Washes Movie Theaters Health Clubs Golf/Country Clubs Nursing Homes Hospitals Schools College/Univ. Museums Government Buildings Prisons Military Number of Potential CHP Site Ohio Commercial CHP Technical Potential (2,717 10,288 sites) 10,000 1, > 20 MW 5-20 MW 1-5 MW MW kw Source: 15

16 Common CHP Technologies and Generating Capacity Ranges Microturbines Gas/Steam Turbines Reciprocating Engines Fuel Cells 50 kw 100 kw 1 MW 10 MW 20 MW 16

17 Prime Mover: Reciprocating Engines Size Range: 10 kw to 10 MW Characteristics Thermal can produce hot water, low pressure steam, and chilled water (through absorption chiller) High part-load operation efficiency Fast start-up Minimal auxiliary power requirements for black start. Example Applications: universities, hospitals, water treatment facilities, industrial facilities, commercial buildings, and multi-family dwellings Source: 17

18 Prime Mover: Gas Turbines Size Range: 1 MW to 300 MW Characteristics Produces high quality, high temperature thermal that can include high pressure steam for industrial processes, and chilled water (with absorption chiller) Efficiency at part load can be substantially less than at full load. Example Applications: hospitals, universities, chemical plants, refineries, food processing, paper, military bases Source: 18

19 Prime Mover: Microturbines Size Range: 30 kw to 330 kw (modular packages exceeding 1 MW) Characteristics Thermal can produce hot water, steam, and chilled water (through absorption chiller) Compact size and light weight Inverter based generation can improve power quality Example Applications: multifamily housing, hotels, nursing homes, waste water treatment, gas & oil production Source: 19

20 Prime Mover: Steam Turbines Size Range: 100 kw to over 250 MW Characteristics Requires a boiler or other steam source Can be mated to boilers firing a variety of gaseous, liquid or solid fuels (coal and biomass fuels such wood, and waste products, and pellets). Steam extracted or exhausted from steam turbine can be used for thermal applications. Can operated over a wide range of steam pressures. Example Applications: industrial applications, district heating and cooling systems; forest products, paper mills, chemicals, food processing, backpressure turbines in lieu of steam system pressure reducing valves Source: 20

21 Prime Mover: Fuel Cells Size Range: 3 kw to 2 MW Characteristics Relatively high electrical efficiencies due to electrochemical process Uses hydrogen as the input fuel; requiring processing unless pure hydrogen is used Relatively low emissions without controls due to absence of combustion process (other than reformer) Inverter based generation can improve power quality Relatively high installed cost Example Applications: data centers, hotels, office buildings, waste water treatment Source:

22 Heat Recovery Heat Exchangers o Recover exhaust gas from prime mover o Transfers exhaust gas into useful heat (steam, hot water) for downstream applications o Heat Recovery Steam Generators (HRSG) the most common Heat-Driven Chillers o Absorption Chiller Use heat to chill water Chemical process (not mechanical) o Steam Turbine Centrifugal Chiller Image Source: University of Calgary Image Source: DOE - EERE 22

23 CHP & Infrastructure Resiliency Critical infrastructure refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety. Patriot Act of 2001 Section 1016 (e) Applications: o Hospitals and healthcare centers o Water / wastewater treatment plants o Police, fire, and public safety o Centers of refuge (often schools or universities) o Military/National Security o Food distribution facilities o Telecom and data centers CHP (if properly configured): o Offers the opportunity to improve Critical Infrastructure (CI) resiliency o Can continue to operate, providing uninterrupted supply of electricity and heating/cooling to the host facility 23

24 Designing for Reliability Two Generator Types Uninterrupted Operation Requirements Induction o Requires external power source to operate o When grid goes down, generator goes down o Less Complicated and Costly to Interconnect Synchronous o Self Excited (Does not need grid to operate) o Generator can operate thru Grid outages o More Complicated and Costly to Interconnect Black start capability o Allows the system to start up independently from the grid Generators capable of gridindependent operation o The system must be able to operate without grid power signal Ample Carrying Capacity o System size must match critical loads Parallel utility interconnection and switch gear controls o The system must be able to disconnect from the grid, support critical loads, and reconnect after an event 24

25 Emergency Generators vs CHP Systems o o o o o Emergency Generators Minimum requirement, sized to meet life critical loads Hospitals are installing larger generators to protect more and more hospital loads Diesel fueled high emissions & limited amount of stored fuel (hours versus days of operation) Not designed or capable of continuous operation for long periods of time rarely operates Financial payback only in times of emergency o o o o o o CHP Systems Sized to meet thermal or electric loads operates continuously to meet those loads Natural gas fueled low emissions Does not replace emergency generator set for life critical loads Reduces overall size and capacity of emergency generator sets Emergency generator sets become backup to the backup; much higher reliability Good financial return 25

26 Attractive CHP Markets Industrial Chemical manufacturing Ethanol Food processing Natural gas pipelines Petrochemicals Pharmaceuticals Pulp and paper Refining Rubber and plastics Commercial Data centers Hotels and casinos Multi-family housing Laundries Apartments Office buildings Refrigerated warehouses Restaurants Supermarkets Green buildings Institutional Hospitals Schools (K 12) Universities & colleges Wastewater treatment Residential confinement Agricultural Concentrated animal feeding operations Dairies Wood waste (biomass) 26

27 Best Applications Small-Medium CHP Applications o Hospitals o Light Industrial o Apartment Buildings/ Condos o Community Colleges o Large Schools o Nursing Homes o Community Centers o Athletic Clubs o Municipal Pools o Correctional Institutions 27

28 Larger CHP Applications o Mid-stream Oil & Gas Processing o Oil Refineries o Chemical Plants o Heavy Industrial o Hospital Campuses o College Campuses 28

29 CHP Incentives in Ohio AEP Ohio AEP Ohio is offering incentives to customers for eligible CHP projects o AEP Ohio distribution customer o Targeting Industrial and Institutional o Minimum generation of 500,000 kwh per year o Design of 8000 minimum run hours per year Source: AEP Ohio CHP and WER Program, Michelle Cross, AEP Ohio, May 24,

30 CHP Incentives in Ohio AEP Ohio Systems > 1000 kw Incentive rate 3.5 cents per annual Net kwh generated Payment period of 1 to 5 years Systems < 1000 kw Incentive rate - 5 cents per annual Net kwh generated Payment period of 1 year preferred but may be up to 5 years Caps $500,000 cap per project per year Source: AEP Ohio CHP and WER Program, Michelle Cross, AEP Ohio, May 24,

31 CHP Project Development Steps CHP TAP Technical Assistance 31

32 DOE TAP CHP Screening Analysis High level assessment to determine if site shows potential for a CHP project o Quantitative Analysis Energy Consumption & Costs Estimated Energy Savings & Payback CHP System Sizing o Qualitative Analysis Understanding project drivers Understanding site peculiarities Annual Energy Consumption Base Case CHP Case Purchased Electricty, kwh 88,250,160 5,534,150 Generated Electricity, kwh 0 82,716,010 On-site Thermal, MMBtu 426,000 18,872 CHP Thermal, MMBtu 0 407,128 Boiler Fuel, MMBtu 532,500 23,590 CHP Fuel, MMBtu 0 969,845 Total Fuel, MMBtu 532, ,435 Annual Operating Costs Purchased Electricity, $ $7,060,013 $1,104,460 Standby Power, $ $0 $0 On-site Thermal Fuel, $ $3,195,000 $141,539 CHP Fuel, $ $0 $5,819,071 Incremental O&M, $ $0 $744,444 Total Operating Costs, $ $10,255,013 $7,809,514 Simple Payback Annual Operating Savings, $ $2,445,499 Total Installed Costs, $/kw $1,400 Total Installed Costs, $/k $12,990,000 Simple Payback, Years 5.3 Operating Costs to Generate Fuel Costs, $/kwh $0.070 Thermal Credit, $/kwh ($0.037) Incremental O&M, $/kwh $0.009 Total Operating Costs to Generate, $/kwh $

33 CHP Project Resources DOE CHP Technologies Fact Sheet Series Good Primer Report

34 CHP Project Resources DOE Project Profile Database (100+ case studies) DOE Database of Incentives & Policies (DSIRE) energy.gov/chp-projects

35 CHP Project Resources DOE CHP Installation Database (List of all known CHP systems in U.S.) Low-Cost CHP Screening and Other Technical Assistance from the CHP TAP energy.gov/chp-installs energy.gov/chp-contacts

36 Summary and Next Steps o CHP is a proven technology providing energy savings, reduced emissions, and opportunities for resiliency o Resources in Ohio are available to assist in developing CHP Projects o Contact the US DOE Midwest CHP TAP to perform a CHP Qualification Screening and/or receive other Technical Assistance

37 Thank You Cliff Haefke Graeme Miller Director Policy Analyst (312) (312) A program sponsored by A program at 37

38 Project Snapshot: Energy Savings Medina High School Medina, OH Application/Industry: High School Capacity (MW): 125 kw Prime Mover: Reciprocating Engine Fuel Type: Natural Gas Thermal Use: Heating, Hot Water Installation Year: 2014 Energy Savings: $82,944/year Highlights: The engine at Medina High School will be able to run 48,000 hours before needing replacement and has an eight year payback. It will offset the 1 million kilowatts of electricity the school purchased each year. Source: 38

39 Project Snapshot: Opportunity Fuels Lima Wastewater Treatment Plant Lima, OH Application/Industry: Wastewater Treatment Capacity (MW): 130 kw Prime Mover: Microturbines Fuel Type: Biomass Thermal Use: Heat for the Digestion Process Installation Year: 2012 Highlights: The CHP project was determined to provide: Best avenue for reductions of V.O.C. s Best return of electrical energy Best capture of the heat for use in the WWTP Source:

40 Project Snapshot: Addressing Coal Emissions Kent State University Kent, OH Application/Industry: University Capacity (MW): 12 MW Prime Mover: Gas Turbine Fuel Type: Natural Gas Thermal Use: Heating and cooling Installation Year: 2003, 2005 Emissions Savings: Reduces CO 2 emissions by 37,000 tons/year Highlights: The CHP system at Kent State won an EPA Energy Star Award in The system, which can run on natural gas or diesel if necessary, has been able to achieve nearly 75% efficiency, and it uses 19% less fuel than a traditional separate heat and power system. 40 Source:

41 Project Snapshot: Replacing 50 Year Old Boilers Kraton Polymers Belpre, OH Application/Industry: Chemical Manufacturing Capacity (MW): 8 MW Prime Mover: Steam Turbines Fuel Type: Natural Gas Thermal Use: Process Steam Installation Year: 2015 Testimonial: Combined Heat and Power has exceeded our expectations. We re saving money, operating cleaner and more efficiently, and positioned to be more competitive going forward. - Scott Oran, Plant Manager, Kraton Polymers Source: 41