PECO CHP Symposium Mid Atlantic CHP Technical Assistance Partnership CHP Overview September 20, 2018

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PECO CHP Symposium Mid Atlantic CHP Technical Assistance Partnership CHP Overview September 20, 2018

DOE CHP Technical Assistance Partnerships (CHP TAPs) End User Engagement Partner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses. Stakeholder Engagement Engage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation s resilient grid. CHP TAPs provide fact-based, nonbiased education to advance sound CHP programs and policies. Technical Services As leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation. www.energy.gov/chp

DOE CHP Technical Assistance Partnerships (CHP TAPs) DOE CHP Deployment Program Contacts www.energy.gov/chptap Tarla T. Toomer, Ph.D. CHP Deployment Manager Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Tarla.Toomer@ee.doe.gov Patti Garland DOE CHP TAP Coordinator [contractor] Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Patricia.Garland@ee.doe.gov Ted Bronson DOE CHP TAP Coordinator [contractor] Office of Energy Efficiency and Renewable Energy U.S. Department of Energy tbronson@peaonline.com

Combined Heat & Power Overview

CHP: A Key Part of Our Energy Future Form of Distributed Generation (DG) An integrated system Located at or near a building / facility Provides at least a portion of the electrical load and Uses thermal energy for: o Space Heating / Cooling o Process Heating / Cooling o Dehumidification CHP provides efficient, clean, reliable, affordable energy today and for the future. Source: www.energy.gov/chp

CHP Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs 94 units 56 units Fuel Fuel Power Plant 32% efficiency (Including T&D) Onsite Boiler 80% efficiency 30 units Electricity Heat CHP 75% efficiency Fuel 100 units 45 units Total Efficiency ~ 50% Total Efficiency ~ 75% 30 to 55% less greenhouse gas emissions

CHP System Schematic Fuel Natural Gas Propane Biogas Landfill Gas Coal Steam Waste Products Others Prime Mover Reciprocating Engines Combustion Turbines Microturbines Steam Turbines Fuel Cells ORC turbine Heat Exchanger Generator Electricity On-Site Consumption Sold to Utility Thermal Steam Hot Water Space Heating Process Heating Space Cooling Process Cooling Refrigeration Dehumidification

What Are the Benefits of CHP? CHP is more efficient than separate generation of electricity and heating/cooling Higher efficiency translates to lower operating costs (but requires capital investment) Higher efficiency reduces emissions of pollutants CHP can also increase energy reliability and enhance power quality On-site electric generation can reduce grid congestion and avoid distribution costs.

Critical Infrastructure and Resiliency Benefits of CHP Critical infrastructure refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety. Patriot Act of 2001 Section 1016 (e) Applications: Hospitals and healthcare centers Water / wastewater treatment plants Police, fire, and public safety Centers of refuge (often schools or universities) Military/National Security Food distribution facilities Telecom and data centers CHP (if properly configured): Offers the opportunity to improve Critical Infrastructure (CI) resiliency Can continue to operate, providing uninterrupted supply of electricity and heating/cooling to the host facility

National Drivers for CHP Benefits of CHP recognized by policymakers DOE / EPA CHP Report (8/2012) o State Portfolio Standards (RPS, EEPS), Tax Incentives, Grants, standby rates, etc. Favorable outlook for natural gas supply and price in North America Opportunities created by environmental drivers Utilities finding economic value Energy resiliency and critical infrastructure http://www1.eere.energy.gov/manufacturing/distributede nergy/pdfs/chp_clean_energy_solution.pdf

Attractive CHP Markets Industrial Chemicals Refining Food processing Petrochemicals Natural gas pipelines Pharmaceuticals Rubber and plastics Pulp and paper Commercial Data centers Hotels and casinos Multi-family housing Laundries Apartments Office buildings Refrigerated warehouses Restaurants Supermarkets Green buildings Institutional Hospitals Schools (K 12) Universities & colleges Wastewater treatment Correctional Facilities Agricultural Dairies Wood waste (biomass) Concentrated animal feeding operations

CHP Today in the United States Existing CHP Capacity 81.3 GW of installed CHP at more than 4,400 industrial and commercial facilities 8% of U.S. Electric Generating Capacity; 14% of Manufacturing Avoids more than 1.8 quadrillion Btus of fuel consumption annually Avoids 241 million metric tons of CO 2 compared to separate production Slide prepared on 7-3-18

PA CHP Market Update Recent Installs Rittenhouse Claridge FMC Tower Simpson House Park Towne Place Apartments Cathedral Village Retirement Home Lancaster General Hospital Guthrie Medical Center Montgomery Healthcare Peninsula Regional Medical Center Aria Health Torresdale Messiah College Aberdeen Proving Grounds MGM National Harbor Columbia Supreme Sports Club Dogfish Head Brewery

Pennsylvania CHP Technical Potential There is 3,620 MW of industrial on-site CHP technical potential In PA, primarily chemicals, metals, paper, refining and food sectors There is 3,003 MW of commercial, institutional and multi-family on-site technical potential in PA, primarily in office buildings, higher ed, hospitals, gov t buildings and retail sectors

Overview of CHP Technologies

Common CHP Technologies Microturbines Gas Turbines Reciprocating Engines Fuel Cells Steam Turbines 50 kw 100 kw 1 MW 10 MW 20 MW

Configurations CHP systems are often categorized based on the type of prime mover that drives the system. There are five predominant prime mover technologies used for CHP systems: Reciprocating engines Gas turbines Microturbines Boiler/steam turbines Fuel cells Heat can generally be recovered in the form of hot water, steam or hot air and converted to cooling or refrigeration using absorption chillers or steam turbine chillers, or dehumidification using desiccants

Prime Mover: Reciprocating Size Range: 10 kw to 10 MW Characteristics Engines Thermal can produce hot water, low pressure steam, and chilled water (through absorption chiller) High part-load operation efficiency Fast start-up Minimal auxiliary power requirements for black start. Example Applications: universities, hospitals, water treatment facilities, industrial facilities, commercial buildings, and multi-family dwellings

Prime Mover: Gas Turbines Size Range: 1 MW to 300 MW Characteristics Produces high quality, high temperature thermal that can include high pressure steam for industrial processes, and chilled water (with absorption chiller) Available in a wide range of capacities and configurations Best efficiency when operated at full load (part-load efficiency is often much lower than full load efficiency) Example Applications: hospitals, universities, chemical plants, refineries, food processing, paper, military bases

Prime Mover: Microturbines Size Range: 30 kw to 330 kw (modular packages exceeding 1 MW) Characteristics Thermal can produce hot water, steam, and chilled water (through absorption chiller) Compact size and light weight Inverter based generation can improve power quality Example Applications: multifamily housing, hotels, nursing homes, waste water treatment, gas & oil production

Reciprocating Engine or Turbine with Heat Recovery Gas or liquid fuel is combusted in a prime mover, such as a reciprocating engine, microturbine, or gas turbine The prime mover is connected to a generator that produces electricity Energy normally lost in the prime mover s hot exhaust and cooling system is recovered to provide useful thermal energy for the site These configurations offer good potential for incorporation into packaged CHP systems

Prime Mover: Steam Turbines Size Range: 100 kw to over 250 MW Characteristics Requires a boiler or other steam source Can be mated to boilers firing a variety of gaseous, liquid or solid fuels (e.g., coal and biomass fuels such wood, waste products, and pellets). Mature technology with very high durability and reliability Can operated over a wide range of steam pressures Backpressure steam turbines can be used to produce power by replacing pressure reducing valves (PRVs) in existing steam systems Example Applications: Industrial applications, district heating and cooling systems, forest products, paper mills, chemicals, food processing, PRVs

Boiler / Steam Turbine Fuel is burned in a boiler to produce high pressure steam that is sent to a backpressure or extraction steam turbine The steam turbine is connected to an electric generator that produces electricity Low pressure steam exits the turbine and provides useful thermal energy for the site

Fuel Cell A fuel, such as natural gas, is reformed in a fuel processor to create hydrogen Hydrogen and oxygen are converted to direct current (DC) electricity using an electrochemical process in a fuel cell stack An inverter is used to convert DC electricity to alternating current (AC) electricity Heat from the fuel processor and fuel cell stack are recovered to provide useful thermal energy for the site

Heat Recovery Heat Exchangers Recover exhaust gas from prime mover Transfers exhaust gas into useful heat (steam, hot water) for downstream applications Hot water heat exchangers to recover reciprocating engine jacket and oil cooler heat Heat-Driven Chillers Absorption Chiller Use heat to chill water Chemical process (not mechanical) Steam Turbine Centrifugal Chiller Image Source: University of Calgary Image Source: DOE - EERE

Heat Recovery: Absorption Chillers Absorption chillers are heat operated refrigeration machines that operate on chemical and physical reactions to transfer heat. The absorption cycle substitutes a physiochemical process for the mechanical compressor used in common refrigeration systems. Absorption chillers can be driven with hot water, steam, or prime mover exhaust. Absorption chillers are available in sizes from 5 to 3,000 refrigeration tons. This capacity correlates to a CHP electric output of approximately 50 to 10,000 kw. For 40 F and higher chilling fluid temperatures (e.g., building air conditioning), a common refrigerant solution mixture is water (refrigerant) and lithium bromide (absorbent). For chilling fluid temperatures below 40 F (e.g., cold storage), a common refrigerant solution mixture is ammonia (refrigerant) and water (absorbent). A 200-ton single-stage absorption chiller integrated with three 600 kw reciprocating engines that also provide hot water for process and space heating. The system is located at a metal fabrication facility in Fitchburg, Massachusetts. Photo courtesy of Northeast CHP Technical Assistance Partnership (CHP TAP).

Electric Generators Two types of electric generators are used with reciprocating engines and turbines to produce alternating current (AC) electricity: induction and synchronous. Induction Requires grid power (external power source) When grid goes down, CHP system goes down Contributes to poor power factor Less complicated and less costly to interconnect compared to synchronous Preferred by utilities Synchronous Does not need grid to operate (self excited) CHP system can continue to operate through grid outage Can assist in power factor correction More complicated and more costly to interconnect compared to induction (safety considerations) Preferred by CHP customers

CHP TAP Technical Assistance

CHP TAP Role: Technical Assistance

Screening Questions Do you pay more than $.06/kWh on average for electricity? Are you concerned about current or future energy costs Are you concerned about power reliability? What if the power goes out for 5 minutes for 1 hour? Does your facility operate for more than 3,000 hours per year? Do you have thermal loads throughout the year? (including steam, hot water, chilled water, hot air, etc.)

Screening Questions (cont.) Does your facility have an existing central plant? Do you expect to replace, upgrade, or retrofit central plant equipment within the next 3-5 years? Do you anticipate a facility expansion or new construction project within the next 3-5 years? Have you already implemented energy efficiency measures and still have high energy costs? Are you interested in reducing your facility's impact on the environment? Do you have access to on-site or nearby biomass resources? (i.e., landfill gas, farm manure, food processing waste, etc.)

Summary CHP gets the most out of a fuel source, enabling High overall utilization efficiencies Reduced environmental footprint Reduced operating costs CHP can be used for different strategies, including critical infrastructure resiliency and emergency planning Proven technologies are commercially available and cover a full range of sizes and applications 35

CHP Project Resources DOE CHP Technologies Fact Sheet Series Good Primer Report www.energy.gov/chp-technologies www.eere.energy.gov/chp

CHP Project Resources DOE Project Profile Database EPA dchpp (CHP Policies and Incentives Database energy.gov/chp-projects www.epa.gov/chpdchpp-chppolicies-and-incentives-database

CHP Project Resources DOE CHP Installation Database (List of all known CHP systems in U.S.) Low-Cost CHP Screening and Other Technical Assistance from the CHP TAP energy.gov/chp-installs energy.gov/chptap 38

Next Steps In collaboration with PECO contact the MA CHP TAP for assistance if: You are interested in having a Qualification Screening performed to determine if there is an opportunity for CHP at your site You already have an existing CHP plant and interested in expanding it You need an unbiased 3rd Party Review of a proposal

Thank You Questions? Mid Atlantic CHP TAP Director Jim Freihaut jdf11@psu.edu 814-863-0083