Taking Advantage of Combined Heat and Power (CHP)

Transcription

1 Taking Advantage f Cmbined Heat and Pwer (CHP) OMA Energy Efficiency & CHP Wrk Grup July 17 th, 2013 Presented by: Jhn Cuttica Energy Resurces Center University f Illinis at Chicag

2 What technlgy can Increase verall energy efficiency and reduce utility bill expenditures? Reduce carbn emissins? Increase energy reliability, decrease reliance n the grid, and supprt grid T&D? Shw mre energy savings and reduce mre emissins than cmparably sized PV and wind technlgies? Supprt natin s energy gals and is cmmercially available tday? The Answer? CHP

3 Presentatin Outline Overview f Cmbined Heat and Pwer (CHP) CHP Market and Market Drivers Favrable CHP Plicies Market Ptential 3

4 US DOE Reginal Clean Energy Applicatin Centers (CEACs) U.S. DOE Midwest Clean Applicatin Centers riginally established in 2001 by U.S. DOE and ORNL t supprt DOE CHP Challenge Tday the 8 Centers prmte the use f Cnventinal CHP, Waste Heat t Pwer CHP and District Energy Technlgies Strategy: prvide a technlgy utreach prgram t end users, plicy, utility, and industry stakehlders fcused n: Market analysis & evaluatin Educatin & utreach Technical assistance Midwest Website:

5 Fuel Utilizatin by U.S. Utility Sectr Surce: 5

6 Cnventinal Energy System 100 units fuel input 100 units fuel input Central Statin Furnace / Biler 67 units thermal rejected / lst 20 units thermal rejected / lst 33 units electric 80 units thermal Custmer purchases pwer frm grid (central statin) Pwer plant ecnmy f scale 100 units input = 33 units f pwer Remainder f energy lst (heat) On-site generatin f steam/ht water (bilers/furnaces) 100 units input = 60 t 80 units f heat Typical grid pwer + nsite heat Efficiency depends n heat/pwer rati 45% t 55% cmbined efficiency is cmmn

7 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Cnventinal CHP (als referred t as Tpping Cycle CHP r Direct Fired CHP) Separate Energy Delivery: Electric generatin 33% Thermal generatin - 80% Cmbined efficiency 45% t 55% CHP Energy Efficiency (cmbined heat and pwer) 70% t 85%

8 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Cnventinal CHP (als referred t as Tpping Cycle CHP r Direct Fired CHP) Simultaneus generatin f heat and electricity Fuel is cmbusted/burned fr the purpse f generating heat and electricity Nrmally sized fr thermal lad t max. efficiency 70% t >85% Minimum efficiency f 60% nrmally required Nrmally nn exprt f electricity Lw emissins natural gas

9 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Waste Heat t Pwer CHP (als referred t as Bttming Cycle CHP r Indirect Fired CHP) Steam Turbine Heat recvery steam biler Electricity Heat Fuel first applied t prduce useful thermal energy fr the prcess Waste heat is utilized t prduce electricity and pssibly additinal thermal energy fr the prcess Simultaneus generatin f heat and electricity Fuel Energy Intensive Industrial Prcess Waste heat frm the industrial prcess Heat prduced fr the industrial prcess N additinal fssil fuel cmbustin (n incremental emissins) Nrmally prduces larger amunts electric generatin (ften exprts electricity t the grid; base lad electric pwer)

10 Industrial Waste Heat Recvery Opprtunities 800ºF + = High Temp

11 Surce: L_Reprt_Dec2008.pdf CHP Rle in Our Envirnmental Future Impact n Carbn Emissins Example f the CO 2 savings ptential f CHP based n a 5 MW gas turbine CHP system with 75% verall efficiency perating at 8,500 hurs per year prviding steam and pwer n-site cmpared t separate heat and pwer cmprised f an 80% efficient n-site natural gas biler and average fssil based electricity generatin with 7% T&D lsses.

12 What Are the Benefits f CHP? CHP is mre efficient than separate generatin f electricity and heat Higher efficiency translates t lwer perating cst, (but requires capital investment) Higher efficiency reduces emissins f all pllutants CHP can als increase energy reliability and enhance pwer quality On-site electric generatin reduces grid cngestin and avids distributin csts

13 CHP Is Used at the Pint f Demand 4,100 CHP Sites (2012) 81,800 MW installed capacity Saves 1.8 quads f fuel each year Avids 241 M metric tns f CO 2 each year 87% f capacity industrial 71% f capacity natural gas fired Surce: ICF Internatinal

14 Attractive CHP Markets Industrial Chemical manufacturing Ethanl Fd prcessing Natural gas pipelines Petrchemicals Pharmaceuticals Pulp and paper Refining Rubber and plastics Cmmercial Data centers Htels and casins Multi-family husing Laundries Apartments Office buildings Refrigerated warehuses Restaurants Supermarkets Green buildings Institutinal Hspitals Landfills Universities & clleges Wastewater treatment Residential cnfinement Agricultural Cncentrated animal feeding peratins Dairies Wd waste (bimass)

15 Capacity (MW) CHP Annual Additins 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Annual Capacity Additins by Size Sites >100 MW Sites <100 MW Surce: ICF CHP Installatin Database

16 Capacity (MW) CHP Annual Additins 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Annual Capacity Additins by Size Sites >100 MW Sites <100 MW Surce: ICF CHP Installatin Database

17 Capacity (MW) Market Drivers Benefits recgnized by plicymakers at the federal and state levels Favrable utlk fr natural gas supply in Nrth America enhances ecnmics Opprtunities created by envirnmental pressures n the pwer sectr and industrial/institutinal users Grwing interest in pwer reliability and critical infrastructure supprt 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Over 4,500 MW annunced/under cnstructin

18 CHP Value Prpsitin Categry 10 MW CHP 10 MW WHP 10 MW PV 10 MW Wind Cmbined Cycle (10 MW ) Annual Capacity Factr 85% 85% 25% 34% 67% Annual Electricity 74,446 MWh 74,446 MWh 21,900 MWh 29,784 MWh 58,692 MWh Annual Useful Heat 103,417 MWh t Nne Nne Nne Nne Capital Cst $24 millin $30 millin $45 millin $24 millin $10 millin Annual Energy Savings 343,747 MMBtu 767,176 MMBtu 225,640 MMBtu 306,871 MMBtu 156,708 MMBtu Annual CO 2 Savings Annual NOx Savings 44,114 Tns 68,864 Tns 20,254 Tns 27,546 Tns 27,023 Tns 86.9 Tns 91.1 Tns 26.8 Tns 36.4 Tns 59.2 Tns Based n: 10 MW Gas Turbine CHP - 30% electric efficiency, 70% ttal efficiency, 15 PPM NOx Electricity displaces Natinal All Fssil Average Generatin (egrid 2010 ) - 9,720 Btu/kWh, 1,745 lbs CO 2 /MWh, lbs NOx/MWH, 6% T&D lsses Thermal displaces 80% efficient n-site natural gas biler with 0.1 lb/mmbtu NOx emissins

19 Recent CHP Plicies President Obama signed an executive rder t accelerate industrial energy efficiency and CHP in August, 2012 that sets a natinal gal f 40 GW f new CHP installatins by DOE / EPA CHP Reprt (8/2012) 24 states recgnize CHP in sme manner in state Renewable and/r Energy Efficiency Resurce Standards Re-evaluating standby rates, intercnnect standards, tax incentives, feed-in-tariffs, permit by rule, grants & financing prgrams DOE - SEEActin Guide t the Successful Implementatin f State CHP Plicies Executive Order: Reprt: hp_clean_energy_slutin.pdf

20 Gas Availability and Price likely t be Key Driver Brad cnsensus that Henry Hub natural gas prices will average between $4 and $6 per MMBtu well beynd Natural gas utlk will drive manufacturing investment and technlgy chice. $4 t $6 gas prices are sufficient t supprt the levels f supply develpment in the prjectin, but nt s high as t discurage market grwth. Gas Prices at Henry Hub (2010$/MMBtu) Surce: ICF Estimates,

21 Envirnmental Drivers fr CHP ICI Biler MACT standards fr hazardus air pllutants frm majr surces cal & il bilers affected by rule shuld cnsider CHP in their cmpliance strategy State # Facilities Affected Midwest Sites # Cal Units # Heavy Oil Units # Light Oil Units Ttal Capacity (MMBtu/hr) Iwa ,217 Illinis ,241 Indiana ,986 Kansas Michigan ,630 Minnesta ,955 Missuri ,442 Nrth Dakta ,838 Nebraska ,554 Ohi ,179 Suth Dakta ,651 Wiscnsin ,131 Ttal , ICF Internatinal. Expanded Database. All rights reserved. 21

22 Prviding site specific technical and cst infrmatin t the 195+ majr surce facilities (~ 480 bilers) in 12 states currently burning cal r il (Decisin Tree Analysis) Meeting with willing individual facility management t discuss Clean Energy Cmpliance Strategies including ptential funding and financial pprtunities. Assisting interested facilities in the implementatin f natural gas CHP as a cmpliance strategy 22 DOE Biler MACT Technical Assistance Prgram (Midwest) Prgram Offered Thrugh The U.S. DOE Midwest Clean Energy Applicatin Center University f Illinis at Chicag

23 Critical Infrastructure Critical infrastructure refers t thse assets, systems, and netwrks that, if incapacitated, wuld have a substantial negative impact n natinal security, natinal ecnmic security, r natinal public health and safety. Patrit Act f 2001 Sectin 1016 (e) Applicatins: Hspitals and healthcare centers Water / wastewater treatment plants Plice, fire, and public safety Centers f refuge (ften schls r universities) Military/Natinal Security Fd distributin facilities Telcm and data centers

24 CHP - Part f Critical Infrastructure Mst critical infrastructure facilities are dependent n availability & resiliency f the electric grid Grid is subject t terrrist attack & natural disasters If electricity grid is impaired, a prperly cnfigured CHP system can cntinue t perate, ensuring an uninterruptable supply f electricity and thermal energy Numerus examples Nrtheast Blackut 2003, Hurricane Katrina 2005, Super-strm Sandy 2012, Varius winter and summer blackuts/brwnuts

25 CHP Kept Critical Facilities Running During Sandy Suth Oaks Hspital - Amityville, NY, 1.25 MW recip. engine Greenwich Hspital - Greenwich, CT, 2.5 MW recip. engine Christian Health Care Center - Wyckff, NJ, 260 kw micrturbine Princetn University - Princetn, NJ, 15 MW gas turbine The Cllege f New Jersey - Ewing, NJ, 5.2 MW gas turbine Salem Cmm. Cllege - Carney s Pint, NJ, 300 kw micrturbine Public Interest Data Center - New Yrk, NY, 65 kw micrturbine C-p City - The Brnx, NY, 40 MW cmbined cycle Nassau Energy Crp Garden City, NY, 57 MW cmbined cycle Bergen Wastewater Plant Little Ferry, NJ, 2.8 MW recip. engine New Yrk University New Yrk, NY, 14.4 MW gas turbine Sikrsky Aircraft Crpratin Stratfrd, CT, 10.7 MW gas turbine

26 Technical Ptential f 140,000 MW Existing CHP vs Technical Ptential Ptential CHP Existing CHP Surce: ICF Internatinal

27 CHP Technical Ptential <1,000 MW 1,000 1,999 MW Surce: ICF Internal Estimate 2,000 4,999 MW >5,000 MW

28 CHP Generating Capacity (MW) Midwest CHP Generating Capacity Installed vs Ttal Technical Ptential* 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Installed Tech Ptential * Technical Ptential als includes existing CHP

29 CHP Generating Capacity (MW) CHP Generating Capacity Installed vs Ttal Technical Ptential 250, , ,000 MW 150, ,000 82,000 MW 50, ,000 MW 10,800 MW Midwest Installed Tech Ptential U.S. * Technical Ptential als includes existing CHP

30 ??Ecnmic Ptential?? What Defines Ecnmic Ptential 2 year paybacks, 4 year paybacks, 8 year paybacks?? Financial analysis can t be dne with average utility rates. Average site data is unacceptable (perating hurs, cst f system, level f heat recvery, etc) Hw d yu accunt fr such benefits as reliability, pwer quality, resiliency, envirnment, etc The ecnmic ptential lies smewhere between the tw bars * Technical Ptential als includes existing CHP

31 Questins Jhn Cuttica (312) A prgram at A prgram spnsred by 31