Florida Energy Summit Eight Flags Energy, LLC Combined Heat and Power (CHP) Plant

Transcription

1 Florida Energy Summit 2017 Eight Flags Energy, LLC Combined Heat and Power (CHP) Plant Florida Public Utilities Company Mark Cutshaw October 19,

2 Chesapeake Utilities Corporation

3 Our Company Delaware and Maryland Natural Gas Transmission, Distribution and Marketing Propane Distribution Virginia Propane Distribution Pennsylvania Natural Gas Transmission Propane Distribution Florida Natural Gas Transmission, Distribution and Marketing Electricity Distribution Combined Heat and Power Plant Propane Distribution Ohio Natural Gas Gathering, Marketing, Liquids Processing and Distribution 3

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5 What is Combined Heat and Power (CHP)? Most energy efficient method of generating power Provides low cost electricity and thermal energy Environmentally beneficial compared to other resources Typically not used by utilities in the generation mix Operates with high capacity factor (>95%) Overall HHV efficiency near 80% is possible Can produce steam, hot water, chilled water, hot air Provides economic benefits to the community

6 Typical Industrial Equipment with CHP Utilization Average Natural Gas Cost of $5/MMBTU Blended Electric Rate $61/MW Annual GT Maintenance cost $1M BOP Maintenance cost $300k Fuel System Efficiency at 77% Energy Cost = $970/hr. Annual CO2 Emissions = 82,000 Tons/year Boilers Gas Turbine Generator Steam 60,000 lbs/hr. System Efficiency 55% Energy Cost $1,390/hr. Annual CO2 Emissions 124,000 Tons/year Electricity 15MW CO2 Per Car 5 Tons/Year Difference 42,000 Tons/Year 8,400 Cars/Year Off The Road

7 Why Eight Flags Energy Works for FPU? FPU has experienced high electrical rates and frequent outages FPU owns natural gas assets on Amelia Island with unused capacity Customers want reduced electrical rates, better reliability, positive environmental benefits, economic benefits CHP can produce lower cost electricity, on-island generation and cost effective steam produced for Rayonier Advanced Materials. 7

8 Why Eight Flags Energy Works?

9 Low natural gas prices and ability to sell steam make CHP projects economically viable, efficient and environmentally friendly.

10 Eight Flags Energy, LLC Summary Eight Flags Energy, LLC Unregulated subsidiary of Chesapeake Utilities Corporation, Provides black start capable generation to Amelia Island in response to disasters. 50,000 tons/year emission reduction (Approximately 10,000 cars removed per year) Solar Turbines, A Caterpillar Company 21.8 MW Natural Gas Fired Turbine Generator, >80% System Efficiency. Rentech Boiler Systems Heat Recovery Steam Generator capable of producing steam and hot water. Florida Public Utilities Company Electric transmission interconnection and natural gas provider, Rayonier Advanced Materials Property owner and recipient of steam and hot water. Improved operational capability.

11 Eight Flags Project Overview 2.3 MW Existing Generation 5.4 MW Additional Generation 21.8 MW New Generation Natural Gas Supply Eight Flags Energy LLC Solar Titan 250 Turbine Generator Set High Pressure Steam Hot Water Rentech Boiler Systems 11

12 Eight Flags Energy, LLC

13 Eight Flags Specifications Electrical Production 23 MW Steam Production 75K lbs/hr. (unfired), 200K lbs/hr. (fired) Economizer adds 75 F to water from Rayonier Efficiency 78-80% Capacity Factor 98.6% 830 Ton Chiller Elevated on pilings to 10 feet above grade Rated for Category 4 Hurricane

14 FPU Benefits From Eight Flags Will bring lower rates for electric customers Use of unused natural gas capacity Reduced carbon emissions in Northeast Florida Positive impact to the electric reliability on Amelia Island Five additional good jobs on Amelia Island $40 million dollar investment in the community 14

15 Mark Cutshaw Director, Business Development and Generation 1750 South 14 th Street, Suite 200 Fernandina Beach, Florida (904)