Combined Heat and Power (CHP)

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February 3-4, 2009 Net Zero Energy Installation and Deployed Bases Workshop Colorado Springs, CO Session III: Power & Energy Architecture for NZE Cliff Haefke Energy Resources Center / University of Illinois at Chicago In Partnership with the US DOE

Presentation Outline Identifying CHP Technologies Opportunities for Technical Integration Recognizing Technical Barriers Recommended Paths Forward Additional Resources Page 2

Identification Page 3 What is Combined Heat & Power (CHP)? CHP is An integrated system A suite of technologies Can use a variety of fuels Located at or near a building / facility Provides at least a portion of the electrical load and Recycles the thermal energy for Space heating / cooling Process heating / cooling Dehumidification Domestic hot water Picture Courtesy of UIC

Identification 15% Page Basic CHP Components 4 Q in (fuel input) 100% Natural Gas Propane Digester Gas Landfill Gas Others Prime Prime Mover Mover Q out Heat Heat Exchanger Exchanger Q out Thermal Thermal System System 50% thermal W out 35% electricity Generator Generator Prime Prime Mover Movergenerates mechanical mechanical energy energy (recip.engine, (recip.engine, turbine, turbine, fuel fuel cell) cell) Generator Generator converts converts mechanical mechanical energy energy into into electrical electrical energy energy Waste Waste Heat Heat Recovery Recovery includes includes one one or or more more heat heat exchangers exchangers that that capture capture and and recycle recycle the the heat heat from from the the prime prime mover mover Thermal Thermal Utilization Utilizationequipment converts converts the the recycled recycled heat heat into into useful useful heating, heating, cooling, cooling, and/or and/or dehumidification dehumidification Operating Operating Control Control Systems Systemsinsure the the CHP CHP components components function function properly properly together together

Identification Conventional Energy System vs. CHP Page 5 Note, if we consider emissions output for the above diagram, the equivalent emissions losses would be 49 ktons/yr versus 23 kton/yr. In the U.S., the average power generating station was built in the 1960s using technology that is even older. The average age of a substation transformer is 42 years, but the transformers today were designed to have a maximum life of 40 years. - The Galvin Electricity Initiative

Identification CHP is not a New Concept Page 6 Historically CHP was owned and operated by the customer / end user (i.e. industrial firms, colleges, hospitals, etc.) Historically electric utility was not enamored with (and in many cases) opposed to CHP installations on their utility lines Historically CHP was looked at as single system connected safely in parallel to the existing grid that provided the customer many on-site benefits

Identification Page 7 CHP is a Proven Technology National CHP Status (2009) ~85,000 MW installed at 3,500 sites (nationally) Average capacity is 25.2 MW Median capacity is 1.3 MW Represents almost 9% of total U.S. generating capacity, and over 12% of U.S. generation Saves over 3 quads of fuel each year! Eliminates over 400 million tons of CO 2 emissions each year!

Page 8 CHP Positive Impacts and Benefits Enhance our energy security by reducing our national energy requirements and help businesses weather energy price volatility and supply disruptions Advance our climate change and environmental goals by reducing emissions of CO2 and other pollutants Improve business competitiveness by increasing energy efficiency and managing costs Increase resiliency of our energy infrastructure by limiting congestion and offsetting transmission losses Diversify energy supply by enabling further integration of domestically produced and renewable fuels Improve energy efficiency by capturing heat that is normally wasted Source: Combined Heat & Power: Effective Energy Solutions for a Sustainable Future http://www1.eere.energy.gov/industry/distributedenergy/pdfs/chp_report_12-08.pdf

Opportunities for Technical Integration Summary of CHP Technologies CHP system Advantages Disadvantages Available sizes Page 9 Gas turbine Microturbine Spark ignition (SI) reciprocating engine Compression ignition (CI) reciprocating engine (dual fuel pilot ignition) Steam turbine Fuel Cells - High reliability. - Low emissions. - High grade heat available. - No cooling required - Small number of moving parts - Compact size and light weight - Low emissions - No cooling required - Low emissions and low noise - High efficiency over load range - Modular design - High power efficiency with part-load operational flexibility - Fast start-up - Relatively low investment cost - Can be used in island mode and have good load following capability - Can be overhauled on site with normal operators - Operate on low-pressure gas - High overall efficiency - Any type of fuel may be used - Ability to meet more than one site heat grade requirement - Long working life and high reliability - Power to heat ratio can be varied - Require high pressure gas or in-house gas compressor - Poor efficiency at low loading - Output falls as ambient temperature rises - High costs - Relatively low mechanical efficiency - Limited to lower temperature cogeneration applications - High maintenance costs - Limited to lower temperature cogeneration applications - Relatively high air emissions - Must be cooled even if recovered heat is not used - High levels of low frequency noise - Slow start up - Low power to heat ratio - High costs - Low durability and power density - Fuels require processing unless pure H used 500 kw to 250 MW 30 kw to 250 kw < 5 MW in DG applications High speed (1,200 RPM) 4MW Low speed (102-514 RPM) 4-75 MW 50 kw to 250 MW 5 kw to 2 MW

Opportunities for Technical Integration Page 10 Typical Cost and Performance Characteristics Source: Catalog of CHP Technologies (Dec. 2008), http://www.epa.gov/ chp/documents/cata log_chptech_full.pdf

Opportunities for Technical Integration Keys to CHP Integration Page 11 Good coincidence between electric and thermal loads Central heating/cooling system Large cost differential between electricity (grid) and CHP fuel --- Spark Spread Long operating hours Economic value of power reliability is high Installed cost differential between a Conventional and a CHP System (replacing aging HVAC equipment?) Increase facility efficiency before implementing CHP / DG projects

Opportunities for Technical Integration Page 12 Integrating Diverse Fuel Opportunities Diverse fuel type options Fossil-based fuels (natural gas, oil, coal, propane, etc.) Renewable-based fuels (digester gas, landfill gas, biogas, biomass) Gas conditioning / treatment is critical Process waste streams Steam pressure drops (replacing PRVs) Duel fuel operating opportunities Option 1: duel fuel mixing Option 2: operating on either fuel

Opportunities for Technical Integration Page 13 Integrating CHP Thermal Opportunities Heat recovery opportunities Hot water Low pressure steam High pressure steam Direct exhaust gases Thermal applications Building / process heating Building / process cooling (absorption cooling) Desiccant dehumidification Thermal storage

Opportunities for Technical Integration Page 14 Recent Interest in CHP Advantage over many other electricity and thermal generating technologies with regard to performance, availability, and cost Micro-grids, smart grids, and net zero energy New approaches to upgrading old and inefficient grids More holistic approach to reducing energy consumption Integration of many approaches and technologies Community-based and partnership-based projects CHP can play a significant role in new modes of operation (i.e. smart grids) as the same advantages that have existed in the past are valid in modern applications

Technical Barriers Page 15 CHP Barriers in Modern Applications How do we integrate CHP into a smart grid? How do we integrate several CHP and renewable DG prime movers into a grid system to ensure there are no negative interactions? New technologies to interact with include: Smart meters Intelligent controls, sensors, and facility energy management systems Electric and thermal storage Interacting with other technologies in a net zero environment Interoperability The biggest impediment to the smart electric grid transition is neither technical nor economic. Instead, the transition is limited today by obsolete regulatory barriers and disincentives that echo from an earlier era. Kurt Yaeger Executive Director The Galvin Electricity Initiative

Recommended Paths Forward Needs for Future CHP Implementation Page 16 Improved or different controls hardware and algorithms Improved system communications Improved or different system monitoring (intelligent monitoring) Operating scenarios for CHP (demand response, real time pricing, rapid restoration of existing grid) More plug and play capabilities ( enterprising systems ) Integrate with other DG technologies to meet net zero standards (solar, wind, geothermal, etc.) Increased fuel flexibility of combustion systems Technical demonstrations and reporting (education)

Summary Page 17 Summary CHP technologies are a proven concept Modern CHP integration is a different mind set Looking forward to participating and learning more about other net zero technologies and how CHP can effectively play a positive role

Summary Page 18 Additional Resources Regional CHP Application Centers (DOE sponsored) Midwest CHP Application Center www.chpcentermw.org Intermountain CHP Application Center www.intermountainchp.org CHP Resource Guide (CHP rules-of-thumb hand book) http://www.chpcentermw.org/pdfs/resource_guide_10312005_final_rev5.pdf CHP Effective Energy Solutions for a Sustainable Future (Dec. 2008) http://www1.eere.energy.gov/industry/distributedenergy/pdfs/chp_report_12-08.pdf Catalog of CHP Technologies (Dec. 2008) http://www.epa.gov/chp/documents/catalog_chptech_full.pdf Smart Grid: Enabler of the New Energy Economy (Dec. 2008) http://www.oe.energy.gov/documentsandmedia/final-smart-grid-report.pdf Database of State Incentives for Renewables & Efficiency http://www.dsireusa.org/

Summary Page 19 Thank You Contact Information Cliff Haefke Energy Resources Center University of Illinois @ Chicago 312/355-3465 chaefk1@uic.edu www.erc.uic.edu Midwest CHP Application Center www.chpcentermw.org