WHR to Power Market Potential and Target Market Opportunities

Topics WHR Markets Industrial Markets Energy Consumption WHR targets WHR to Power examples WHR quantity estimates WHR Power Potential Stationary Engine Exhaust Natural Gas Compressor Stations Summary of existing systems WHR power potential estimate Barriers Conclusions 2

U.S. Energy Use by Sector 40 35 Industrial 30 Energy Consumption (Quads) 25 20 15 10 Residential Transportation Commercial 5 0 1950 1960 1970 1980 1990 2000 2010 Year 3

Industrial Energy Intensity is Declining Btu/$ Production ($2000) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1998 2002 2006 Energy use per real dollar of production has declined by 19% 1998 to 2006 Reasons for the decline Energy intensive basic materials processing has been moving offshore Industry is implementing efficiency measures MECS Survey Years 4

Industrial Energy Consumption by Sector -- 2006 Chemicals Petroleum and Coal Products Paper Primary Metals Metals Based Durable Industries Food Nonmetallic Mineral Products Other Industry 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Energy Consumption TBtu 5

Industrial Energy Consumption by End-Use 16% Lights/Motors 4% Lease & Plant 32% Boiler/CHP Total 2006 energy consumption about 26 Quads Process heating is primary WHR to power target 26% of total industrial energy use 22% Feedstocks High Potential Selected Apps. Low Potential 26% Process Heat Source: ICF Some high temp heat generated in exothermic processes with feedstocks Compressor station drives in Lease and Plant WH temperature from CHP and boilers generally too low for economic power 6

Sources of Heat Loss in Process Heating Arvind Thekdi, Forging Industry Association Presentation 7

Target Industrial Process Heating Applications Calcining Cement, Lime, pet-coke Smelting/agglomeration primary metals, Metal and non-metal melting glass, primary metals, metals casting Fluid heating refining, chemicals Heat treating primary metals, forging, metal products Metal heating forging, metal products Curing and forming rubber, plastics Drying Clay products, wood products, food Process boilers concentrated in refineries, chemicals, paper, food and primary metals 8

WHR on Lime Kiln Pleasant Gap, PA Graymont, Ltd. 1050 tpd lime kiln installed in 2008 5 MW WHR power system 9

WHR on Pet-Coke Calciner Port Arthur Steam Energy 1800 F exhaust from kiln recovered from 3 pet-coke calcining kilns 450,000 lb/hr of steam production for refinery process use and also 5 MW of power production Waste Heat Boiler, Unit 4 280,000 MT/year CO 2 emissions offset 10

WHR on Electric Arc Furnace Proposed 3 MW system on 50 ton EAF Recovery of 2200 F exhaust gases TESPL proposed system for EAF in India 11

WHR on Glass Melter 700 MT/day float glass melter TESPL Installation at St. Gobain Glass, India 1230 kw WHR to Power air cooled ST 12

Comparison of WHR Estimates Temperature Range o F BCS Study (TBtu) 77 o F Basis 300 o F Basis UTRC Study (TBtu) 60 o F Basis 300 o F Basis Low < 450 903 37 2,050 80 Medium 450-1200 466 130 910 320 High >1200 108 89 22 20 Total 1,477 256 2,982 420 BCS/DOE, 2008 based on 12 target processes consuming 8,500 TBtu/year plus boiler use UTRC/ORNL, 2004 based on analysis of EPA National Emissions Inventory Database, coverage weighted toward large emissions sources 13

o F Manufacturing Sector Waste Heat by Temperature <100 100-200 200-300 300-400 400-500 500-600 600-700 700-800 800-900 900-1000 1000-1100 1100-1200 1200-1300 1300-1400 1400-1500 1500-1600 1600-1700 1700-1800 1800-1900 Waste Heat TBtu 0 200 400 600 800 Source: UTRC/ORNL, 2004 60 F Basis 300 F Basis UTRC 2004 Study for ORNL WH estimated from EPA NEI database Total waste heat to ambient estimated at ~3 Quads/year most at low temperature Practical WH estimate to 300 F is 420 TBtu/year 14

WHR Utilization Temperature Ranges Passive Heat Exchangers (> 200 0 F) Mechnical Vapor Compression Heat Pumps (< 200 0 F) Absorption Heat Pumps (200-400 0 F) Organic Rankine Cycle CHP (300-750 0 F) Kalina Cycle CHP (250-1,000 0 F) Steam Rankine Cycle CHP (>500 0 F) ` 100 200 300 400 500 600 700 800 Waste Heat Stream Temperature ( o F) 900 1,000 15

Theoretical Limits of Work from WHR 80% 70% 60% 50% 40% 30% 20% 10% 0% Ideal Heat Engine Theoretical Maximum Efficiency 300 500 700 900 1100 1300 1500 Heat Source Temperature ( o F) Carnot Efficiency 16

Upper Bound of Industrial WHR to Power Potential ~3,000 TBtu/year of energy to ambient temperatures Theoretical work capability based on UTRC measured WH by temperature at Carnot Efficiencies and 80% load factor equals ~40 GW 30-50% of Carnot efficiency for Rankine cycle (steam, ORC, Kalina) equals 12-20 GW of power generation capacity 17

Summary of Industrial WHR to Power Potential NAICS Industry Source Power Generation Potential (MW) 311 Food UTRC 98 322 Paper UTRC 66 324 Petroleum and Coal Products UTRC 2,594 325 Chemicals UTRC 724 327 Nonmetallic Minerals 327211, 327212 Glass BCS 281 327310 Cement BCS 391 327410 Lime RED 269 331 Primary Metals 331111 Primary Iron and Steel BCS 692 331312 Primary Aluminum BCS 85 331112 Silicon, Ferrosilicon RED 71 3313, 3315 Metal Casting BCS 303 332 Fabricated Metals UTRC 79 All other Industry UTRC 74 Total Power Generation Potential, MW 5,728 18 Synthesis of 3 Sources: UTRC, BCS, and RED 5,728 MW of WHR Power Potential UTRC and BCS based on WHR available to 300 F RED estimates based on example plants extrapolated to total industry production

Industrial WHR Power Barriers WHR competes with passive heat exchangers that can recycle heat to the process or elsewhere in the facility generally the first approach to WHR Most high temperature WH is dirty and therefore difficult and expensive to recover Industrial processes may lack space and integration with the process may be difficult Batch processes, seasonal operations, and other low load factor processing reduces economic benefits of WHR Heat transfer from atmospheric pressure exhaust gases is 50-80 less than from hot water temperature ranges that work in geothermal applications will not work in industry 19

WHR to Power at Natural Gas Compressor Stations 15 ORC cycle power plants at natural gas compressor stations in North America by designed by Ormat 75 MW from 247,000 HP total compressor power 10 systems under construction or planned equaling 62 MW Information current as of mid 2009 20

WHR Power Potential at NG Compressor Stations WHR to Power Production Rate Installed WHR to Power 75,500 kw Capacity Compressor HP for Installed 504,000 HP Systems Output Potential 0.15 kw/hp Technical Potenial Total U.S. Compressor 16.90 million HP WHR to Power Potential 2,532 MW Projected Economic Market Gas turbine drive >15,000 HP 900 MW > 5,250 hours/year operation Source: Hedman, ICF 21

NG Compressor Stations Barriers Proximity to grid connection Availability of land for the WHR power plant Seasonal load patterns on some stations Small gas turbines and IC engines currently not economic targets for WHR power Availability of RPS or green power purchase agreements 22

Conclusions WHR to power potential from industrial facilities and natural gas compressor stations is estimated at 7-9 GW Track record for installing WHR to power systems is much stronger for natural gas compressor stations than for industrial installations where experience, especially U.S. experience, is much lower High priority industrial targets in cement and other calcining operations, glass melting, and metal melters. Large waste heat opportunity in chemicals and refineries needs to be better characterized 23