DOE CEACs, CHP Market Drivers, & CHP Applications

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1 DOE CEACs, CHP Market Drivers, & CHP Applicatins Cmbined Heat and Pwer Wrkshp Spnsred by Natinal Gvernrs Assciatin Hsted by Iwa Ecnmic Develpment Authrity June 28, 2013 Cliff Haefke

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 2

3 Presentatin Outline DOE s Clean Energy Applicatin Centers (CEACs) CHP Market Drivers Example CHP Applicatins 3

4 US DOE Reginal Clean Energy Applicatin Centers (CEACs) U.S. DOE Midwest Clean Applicatin Center riginally established in 2001 by U.S. DOE and ORNL t supprt DOE CHP Challenge The CEACs prmte the use f CHP, Waste Heat t Pwer, 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: 4 (See Slides 37 & 38 fr mre infrmatin)

5 CHP Technical Assistance frm CEACs Feasibility Study Investment Grade Analysis Prcurement Installatin Operatin Site Request CHP Screening / Qualificatin CEAC Capabilities Prject screening / qualificatin thrugh feasibility analysis CHP expertise thrugh all steps Bringing custmers and CHP engineering cmmunity tgether 5

6 6

7 CHP Market Drivers and Outlk 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 Over 4,000 MW annunced/under cnstructin Surce: ICF Internatinal

8 White Huse Executive Order President Obama signed an Executive Order t accelerate investments in industrial EE and CHP (8/30/12) Sets natinal gal f 40 GW f new CHP installatin ver the next decade Directs agencies t fster a natinal dialgue Directs US DOE, US DOC, USDA, and US EPA t crdinate actins at the Federal level New DOE / EPA CHP Reprt (8/2012) Executive Order: Reprt:

9 Fuel Utilizatin by U.S. Utility Sectr Surce: 9

10 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce CHP prvides efficient, clean, reliable, affrdable energy tday and fr the future.

11 CHP Value Prpsitin Categry 10 MW CHP 10 MW PV 10 MW Wind Cmbined Cycle (10 MW Prtin) Annual Capacity Factr 85% 25% 34% 67% Annual Electricity 74,446 MWh 21,900 MWh 29,784 MWh 58,692 MWh Annual Useful Heat 103,417 MWh t Nne Nne Nne Ftprint Required 6,000 ft 2 1,740,000 ft 2 76,000 ft 2 N/A Capital Cst $24 millin $60.5 millin $24.4 millin $10 millin Annual Energy Savings 343,747 MMBtu 225,640 MMBtu 306,871 MMBtu 156,708 MMBtu Annual CO 2 Savings 44,114 Tns 20,254 Tns 27,546 Tns 27,023 Tns Annual NOx Savings 86.9 Tns 26.8 Tns 36.4 Tns 59.2 Tns 11 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 Surce:

12 Supprtive State Plicies are Key

13 States with Clean Energy Prtfli Standards Requirements fr CHP 13 Surce: 13

14 States with EERS Prgrams fr CHP 14 Surce: 14

15 U.S. Shale Gas Resurces 15 Surce:

16 EPA s Biler MACT Rule (CHP Rle) ICI Biler MACT - Standards fr hazardus air pllutants frm majr surces: industrial, cmmercial and institutinal bilers and prcess heaters Final rule December 2012 Cmpliance by January 31, 2016 Cmpliance with MACT limits will be expensive fr many cal and il users (standard cmpliance measures) May cnsider cnverting t natural gas Cnversin fr sme il units, replacements fr cal units? May cnsider mving t natural gas fueled CHP (trade ff f benefits versus additinal csts) Represents a prductive investment Ptential fr lwer steam csts due t generating wn pwer Higher verall efficiency and reduced emissins Higher capital csts, but partially ffset by required cmpliance csts r new gas biler csts 16

17 Affected Bilers in the Midwest Fuel Type Number f Units Capacity (MMBtu/hr) Cal ,197 Heavy Liquid 64 9,936 Light Liquid 58 5,375 Ttal ,508 Includes industrial, cmmercial and institutinal bilers nly 2011 ICF Internatinal. Expanded Database. All rights reserved. 17

18 Affected Cal and Oil Bilers in the Midwest by Market Sectr Applicatin # Facilities # Units Capacity (MMBtu/hr) Fd ,460 Paper ,433 Petrleum and Cal ,219 Chemicals ,452 Plastics and Rubber ,488 Primary Metals ,011 Fabricated Metals Machinery ,276 Transprtatin Equip ,036 Educatinal Services ,753 Other Applicatins ,717 Ttal , ICF Internatinal. Expanded Database. All rights reserved. 18

19 Affected Cal and Oil Bilers in the State # Facilities Midwest # 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. 19

20 Iwa Biler MACT Affected Facilities (identified in EPA ICR Database) Site 3M Knxville ADM Crn Prcessing CR Ag Prcessing Inc Archer Daniels Midland C. - Des Mines Archer Daniels Midland Cmpany - Crn Prcessing Plant - Clintn Cargill Crn Milling - Eddyville Cargill, Inc. - Siux City Grain Prcessing Crpratin Iwa State University Pwer Plant Jhn Deere Dubuque Wrks Rquette America, INC The University f Iwa University f Nrthern Iwa City Knxville Cedar Rapids Eagle Grve Des Mines Clintn Eddyville Siux City Muscatine Ames Dubuque Kekuk Iwa City Cedar Falls 20 Surce: EPA ICR Database

21 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 21 DOE Biler MACT Technical Assistance Prgram (Midwest) Prgram Offered Thrugh The U.S. DOE Midwest Clean Energy Applicatin Center University f Illinis at Chicag

22 Impact f Pending EPA Utility Regulatins Utility Regulatins Mercury and Air Txics Standards (MATS) Crss-State Air Pllutin Rule (CSAPR), frmerly Transprt Rule (fr mre infrmatin: ) Will require cmpliance investments and/r may cntribute t clsings f sme cal capacity Estimates f shutdwn cal capacity range frm 20 t 50 GW Price impacts will be reginal Clsings culd result in lcalized reliability cncerns prviding pprtunities fr CHP 22

23 CHP and 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) Applicable Market Sectrs 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 Resurce:: Cmbined Heat and Pwer: Enabling Resilient Energy Infrastructure fr Critical Facilities, pdf

24 CHP and 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 Resurce:: Cmbined Heat and Pwer: Enabling Resilient Energy Infrastructure fr Critical Facilities, pdf

25 Favrable Characteristics fr CHP Applicatins Cncern abut energy csts Cncern abut pwer reliability Cncern abut sustainability and envirnmental impacts Lng hurs f peratin Existing thermal lads Central heating and cling plant Future central plant replacement and/r upgrades Future facility expansin r new cnstructin prjects EE measures already implemented Access t fuel Facility energy champin 25

26 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) 26

27 Example CHP Applicatins CHP is nt always sld n ecnmics alne; ther drivers exist fr CHP prjects CHP systems are implemented in varius market sectrs, facility sizes, and via different prime mver technlgies and generatin capacities Example installatins explre ther drivers and varius applicatins CEAC Develped Prject Prfiles lcated at: nergy/chp_prjects.html 27

28 CHP Applicatins: Addressing Cal Emissins Kent State University Kent, OH Capacity: 12 MW Fuel: Natural Gas Prime Mver: Cmb. Turbines (1 x 5MW and 1 x 7MW) Installed: 2003,

29 CHP Applicatins: Addressing Instantaneus Pwer Interruptins Lake Frest Hspital Lake Frest, IL Capacity: 3.2 MW Fuel: Natural Gas Prime Mver: Recip. Engines Installed: 1997 Annual Instantaneus Pwer Interruptins were reduced frm 50 dwn t 2 due t CHP installatin

30 CHP Applicatins: CHP Serving as Emergency Generatrs Belit Memrial Hspital Belit, WI Capacity: 3.0 MW Fuel: Natural Gas & Diesel Prime Mver: Recip. Engines Installed: 2000 CHP system serves bth dayt-day and emergency pwer: Meets 10 sec start up time requirement Meets n-site fuel requirement

31 CHP Applicatins: Facility Utilities Expansin Nrthwest Cmmunity Hspital Arlingtn Heights, IL Capacity: 4.6 MW Fuel: Natural Gas Prime Mver: Recip. Engines Installed: 1997 / 2005 "We said, Well, if we're ging t centralize it all, desn't it make sense t d a CHP and generate ur wn electricity, t reduce ur demand lad, and then capture the heat f thse engines and utilize all that fr heating and/r cling?' " Charlie Stevensn, Directr f Plant Operatins Nrthwest Cmmunity Hspital "The beauty f this CHP t him was nt simply the return fr the cgen system, but the fact that these savings wuld pay fr the central energy plant t. Je Sinclair, Ballard Engineering

32 CHP Applicatins: LEED Platinum Dell Children s Medical Center f Central Texas Austin, TX Capacity: 4.6 MW Fuel: Natural Gas Prime Mver: Cmbustin Turbines Installed: 2009 First healthcare facility in the wrld t achieve a LEED Platinum certificatin by the U.S. Green Building Cuncil (USGBC)

33 CHP Applicatins: Addressing Extended Pwer Outages Presbyterian Hmes Evanstn, IL Capacity: 2.4 MW Fuel: Natural Gas Prime Mver: Recip. Engines Installed: 2001 Ice strm in winter f 1998 kncked ut pwer fr 9 hurs. 600 senir residents were transferred t safety CHP installed t avid future utages The envirnment we prvide t elderly adults had everything t d with ur decisin t pursue pwer generatin. Lss f pwer isn t an ptin. Lives depend n it. - Keith Sthlgren, V/P Operatins We had n pwer fr nine hurs ne cld, winter day during an ice strm. The lss f pwer frced us t take immediate, aggressive measures t ensure the cmfrt and safety f ur residents. Nancy Heald Tlan, Directr f Facilities Management

34 CHP Applicatins: Disaster Relief, Hurricane Katrina Mississippi Baptist Medical Center Jacksn, MS Capacity: 4.2 MW Fuel: Natural Gas Prime Mver: Cmbustin Turbines Installed: 1991 The independence prvided by the CHP system allwed MBMC t cntinue peratin relatively unaffected during Hurricane Katrina in As sn as pwer reliability became a factr MBMC perfrmed a lad shed, switched ff f the pwer grid, and cntinued peratin in turbine-nly mde. MBMC was the nly hspital in the Jacksn metr area t remain nearly 100% peratinal. After apprximately 50 hurs, the pwer reliability issue was addressed and MBMC cnnected t the pwer grid and returned t nrmal peratin. Surce:

35 CHP Applicatins: Disaster Relief, Hurricane Sandy Danbury Hspital Danbury, CT Capacity: 4.5 MW / 3 MW standby Fuel: natural gas / diesel Prime Mver: Cmbustin Turbine / Recip backups Installed: 2011 Danbury Hspital is a 371 bed cmprehensive reginal medical center During the strm, the facility perated withut any lss f pwer and, despite mst f the businesses in the surrunding area being withut pwer fr several days, Danbury Hspital still had lights and heat. The CHP facility enabled the hspital t be fully functinal during the strm and cntinued cnducting business and prviding the critical and necessary health care fr patients.

36 CHP Applicatins: Missin Critical Pwer System University f Tled Data Center Tled, OH Capacity: 260 kw Fuel: Natural Gas Prime Mver: Micrturbine Installed: 2012 Micrturbine CHP system installed in University f Tled s Green Data Center. The system will be capable f prviding 100 percent f the data center s critical electric and cling needs. 36 Surce:

37 CHP Applicatins: Reliability / Multi-Fuel Bay View Wastewater Treatment Plant Tled, OH Capacity: 10 MW Fuel: Bigas / LFG / NG Prime Mver: Cmb. Turbine Installed:

38 CHP Applicatins: Green Energy & Energy Savings Lima Wastewater Treatment Plant Lima, OH WWTP Size: 14 MGD CHP Capacity: 65 kw Fuel: Bigas Installed: 2002 Prime Mver: Micrturbine (plans fr 2 nd MT) Installed: Gas Cmpressin Gas Refrigeratin Static Filter (silxane) Micrturbine

39 CHP Applicatins: Energy Independence & Unique Partnerships Gundersen Lutheran & City Brewery La Crsse, WI Capacity: 633 kw Fuel: Bigas Prime Mver: Recip. Engine Installed: 2009 Hspital wns CHP system at lcal brewery. Heat frm CHP system used t heat digester, electricity is sld t utility, electric sales/credit g t hspital.

40 CHP Applicatins: Public & Private Partnerships Gundersen Lutheran & Cunty Landfill Onalaska, WI Capacity: 1.2 MW Fuel: Landfill Gas Prime Mver: Recip. Engine Installed: 2011 Instead f simply generating electricity at landfill, landfill gas is piped 2 miles t hspital where CHP system prvides all required electricity and thermal energy. Claim t be first energy independent hspital in U.S.

41 CHP Applicatins: Replacing Pressure Reducing Valve East Kansas Agri-Energy Garnet, KS Capacity: 1.6 MW Fuel: Natural Gas Prime Mver: Backpressure Turbine Installed: Surce:

42 CHP Applicatins: Multiple Heat Recvery Applicatins Brshc Fabricated Prducts Mansfield, OH Capacity: 4.6 MW Fuel: Natural Gas Prime Mver: Reciprcating Engines Installed: 2000, 2005 Heat Recvery: Prcess tanks, Biler Heat, Make Up Heat fr Plant Operatins Waukesha 7100 GSI Engine Units Cntrl Rm Switchgear 42 Surce: Waukesha APG 1800 rpm ARES Test Engine

43 CHP Applicatins: Partnership w/ Municipality U.S. Energy Partners, LLC & City f Russell Russell, KS Capacity: 15 MW Fuel: Natural Gas Prime Mver: Cmb Turbine Installed: Surce:

44 CHP Applicatins: Multiple Waste Heat Recvery Streams Vestil Manufacturing Angla, IN Capacity: 140 kw Fuel: Natural Gas Prime Mver: Micrturbine Installed: Surce:

45 CHP Applicatins: Industrial Dehumidificatin Utilimaster Crpratin Wakarusa, IN Capacity: 70 kw Fuel: Natural Gas Prime Mver: Micrturbine Installed: Surce:

46 Questins Cliff Haefke (312) A prgram at A prgram spnsred by 46

47 Iwa CHP Installatins Amana Farms, Inc. / GHD, Inc. (Amana ) Cargill, Inc. (Eddyville) Iwa State University (Ames) Kendrick Frest Prducts (Edgewd) United States Department f Agriculture (USDA) (Ames) City f Frest City (Frest City) Otter Creek Ethanl (Ashtn) University Of Iwa (Iwa City) Alca / Midamerican Riverside (Bettendrf) Delaware Cunty Memrial Hspital (Manchester) Jacbs Energy Crpratin (Bettendrf) Gd Neighbr Hme (Manchester) University Of Nrthern Iwa (Cedar Falls) Bi-Energy Partners (Mitchellville) Archer Daniels Midland Cmpany (Cedar Rapids) City f Muscatine / Muscatine Pwer and Water (Muscatine) Archer Daniels Midland Cmpany (Clintn ) Suthwest Iwa Renewable Energy (Cuncil Bluffs ) University f Iwa (Oakdale) City f Rckfrd (Rckfrd) Mercy Hspital (Cuncil Bluffs) Packaging Crpratin f America (Tama) Oscar Mayer Fds Crpratin (Davenprt) Bertch Cabinet Manufacturing (Waterl) City f Davenprt (Davenprt) Jhn Deere Crpratin (Waterl) Archer Daniels Midland Cmpany (Des Mines ) Tp Deck Hlsteins (Westgate) Des Mines Metr WRF (Des Mines) Heather Manr (Des Mines) Iwa Methdist Medical Center (Des Mines) Jhn Deere Crpratin (Dubuque) Mercy Health Center (Dyersville) AG Prcessing Inc. (Eagle Grve ) 47 Surce: