chp and industrial applications-final
TRANSCRIPT
Combined Heat and Power
(CHP) at Industrial Facilities
Satish Ravindran, P.E., CEM, - Sr. Energy Engineer - SW CHP TAP
Suresh Jambunathan – Director Business Development;
Veolia North America
May 12 , 2016
CHP Technical Assistance Partnerships
Education and OutreachProviding information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.
Technical AssistanceProviding technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.
Market Opportunity AnalysisSupporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors
Outline
CHP Overview
CHP in Industrial Facilities - Veolia
CHP Project Resources from the DOE SW CHP TAP
Q&A
CHP Overview
Fuel 100 units
CHP75% efficiency
Total Efficiency~ 75%
Fuel
Fuel
30 units
Power Plant32% efficiency(Including T&D)
Onsite Boiler80% efficiency
45 units
Electricity
Heat
Total Efficiency~ 50%
94 units
56 units
30 to 55% less greenhouse gas emissions
CHP efficiently recycles wasted energy to reduce
operating costs & emissions but increases reliability
CHP System Schematic
Prime MoverReciprocating Engines
Combustion Turbines
Microturbines
Steam Turbines
Fuel Cells
ElectricityOn-Site Consumption
Sold to Utility
FuelNatural Gas
Propane
Biogas
Landfill Gas
Coal
Steam
Waste Products
Others
Generator
Heat Exchanger
ThermalSteam
Hot Water
Space Heating
Process Heating
Space Cooling
Process Cooling
Refrigeration
Dehumidification
Common CHP Technologies
50 kW 100 kW 1 MW 10 MW 20 MW
Fuel Cells
Gas TurbinesMicroturbines
Reciprocating Engines
Steam Turbines
CHP Today in the United States
• 82.7 GW of installed CHP at over 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 CO2 compared to separate production
Source: DOE CHP Installation Database (U.S. installations as of December 31, 2014)
Attractive CHP Markets
IndustrialChemicals
Refining
Food processing
Petrochemicals
Natural gas pipelines
Pharmaceuticals
Rubber and plastics
Pulp and paper
CommercialData centers
Hotels and casinos
Multi-family housing
Laundries
Apartments
Office buildings
Refrigerated warehouses
Restaurants
Supermarkets
Green buildings
InstitutionalHospitals
Schools (K–12)
Universities & colleges
Wastewater treatment
Correctional Facilities
AgriculturalDairies
Wood waste
(biomass)
Concentrated
animal feeding
operations
Emerging National Drivers for CHP
o Benefits of CHP recognized by policymakerso President Obama signed an Executive Order to
accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade
o State Portfolio Standards (RPS, EEPS), Tax Incentives, Grants, standby rates, etc.
o Favorable outlook for natural gas supply and price in North America
o Opportunities created by environmental drivers
o Utilities finding economic value
o Energy resiliency and critical infrastructure
DOE / EPA CHP Report (8/2012)
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf
Finding the Best Candidates:
Some or All of These Characteristics
High and constant thermal load
Favorable spark spread
Need for high reliability
Concern over future electricity prices
Interest in reducing environmental impact
Existing central plant is dilapidated
Planned facility expansion or new construction; or equipment replacement within the next 3-5 years
Where are the Southwest opportunities for CHP
Industrial Applications? (8,937 MW of CHP Potential at 5,607 Sites)
Source: DOE CHP Technical Potential Study (2016)
- 1,000 2,000 3,000 4,000 5,000 6,000
Wyoming
Utah
Texas
Oklahoma
New Mexico
Colorado
Arizona
CHP Generating Capacity (MW)
CHP Technical Potential for Industry
50-500 kW 0.5 - 1 MW 1 - 5 MW 5-20 MW >20 MW
Project Snapshot:Port Arthur Steam Energy/Oxbow Port Arthur, TX
Application/Industry: Petroleum Coke, Crude Oil ProcessingCapacity (MW): 5 MWEquipment: Waste heat recovery boilers; back pressure steam turbineFuel Type: Waste HeatThermal Use: Steam and electricity generationInstallation Year: 2005Environmental Benefits: CO2 Emissions reduced by 159,000 tons/year
Testimonial: “Through the recovery of otherwise-wasted heat to produce high pressure steam for crude oil processing, Port Arthur Steam Energy LLP has demonstrated exceptional leadership in energy use and management.” — U.S. Environmental Protection Agency, in giving the 2010 Energy Star Award
Project Snapshot:
Tesoro Petroleum
Salt Lake City, UT
Application/Industry: Refineries
Capacity (MW): 22 MW
Prime Mover: Gas Turbine and HRSG
Fuel Type: Natural Gas
Thermal Use: Process Steam
Installation Year: 2004
Environmental Benefits: CO2 Emissions reduced by 85,100 tons/year
Testimonial: The site can produce energy for $35-$40 per megawatt-hour, enabling it to save $200,000 per month on its energy bill. Additionally, it sells $300,000 of energy per month to its utility, making a net improvement to its operations of $500,000 per month.
CHP in Industrial Applications
- Veolia North America
4-Chicago based industrial CHP visionariesThomas Casten, Chairman
Recycled Energy Development (RED)
Leif Bergquist, Vice President
Recycled Energy Development (RED)
Sean Casten, CEO
Recycled Energy Development (RED)
Richard J. Munson, Director
Environmental Defense Fund
Veolia North America
Who is Veolia?
Project development tips & tools
Selected references
Who is Veolia?
The big picture: US Industrial activity is up!
Courtesy: Industrial Info. Resources, Inc, SugarLand TX 77479
A common industrial project planning sceneUTILITIES: Flip side of a process.Power
Thermal Energy delivered as steamhot waterthermal oilrefrigerant
Compressed air, lighting
Water treatment
Wastewater treatment
XYZ Chemical Company:Boss: We’re investing $$$$$$$ to build process XYZ
Assistant: What about utilities?
Boss: Utilities?......... Just get it done
Assistant to Plant Manager: Get it donePlant Manager: Picks package boiler from “bigger & better boiler” company.Pays $$$$ to utility to upgrade electrical substation
Rule of Thumb: $$Utilities = 10% - to - 40% of $$Process
CHP project development = sense + diligence
Set objectives & gather data
Quickly conceptualize configurations + appraise (FEL2 or FEL3)
Project development
Technical: Configuration, engineering, procurement, construction
Legal: Structure of contracting entities (LLC, S or C Corp etc…)
Commercial: Contracts for fuel, power, O&M, grants & incentives
Environmental: Permits
Financial: Financial models, equity & debt
Risks & Mitigants: Project Execution Plan (PEP)
Create value by “profitably recycling energy” from concept (FEL1) to completion (FEL5).
CHP at Univ. of MA. Eff. > 80%
Central generation. Eff. ~35%
Graph & ponder load (power + thermal) profiles, then sketch “promising” concepts
A rigorous Heat & Mass Balance (HMB) sizes & prices the project + aids off-design analysis
CHP can economically tie energy-to-water (or wastewater) + constitute core of a microgrid.
http://www.wrri.nmsu.edu/publish/watcon/proc56/Al-Qaraghuli.pdf
Profitably reduce GHG emissions:• Fresh water “stores” energy, thus optimizing utility supply.• Result ? Least cost/unit of power, steam, water
A successful project = risk mitigation
A schedule helps… even if (usually) wrong
Project structure: A Special Purpose Entity (“NewCo LLC”) can reduce investor risk
Implementation: Front End Loaded (FEL) view
Project development tailwinds & headwinds
TAILWINDS HEADWINDS
Tried & true technologyCHP seen as a proven technology
Inertia and unfamiliarityCompared to CHP, package boilers seen as “tried and true”
10% Investment Tax Credit (ITC) Reduces Project CapEx; improves Return on Investment (ROI)
Upfront investmentGreater upfront CapEx required.
Accelerated depreciationImproves Return on Equity (ROE)
Air permitCHP reduces pollution, yet requires a new permit MACT pollution control regulations allow retaining current air permit.
Increasing recognition of the benefits of redundancy, resiliency & reliability
Energy Policy Act, 2005Hurts ability of regulated utilities to secure certain cost recovery for long-term Power Purchase Agreements (PPA) with CHP plants. Makes CHP financing difficult
Standby & exit chargesImposed by some utilities before allowing CHP systems to interconnect with the grid.
The Boston-Cambridge area uses CHP and distributes recaptured thermal energy as "green steam," reducing greenhouse gas emissions by 475,000 tons annually, the equivalent of removing 80,000 cars from the road. The Boston-Cambridge network was recognized as 2015 System of the Year by the International District Energy Association.
Selected Veolia CHP Case Studies
"Veolia has been a strong and loyal partner with the city, and the completion of this project marks an important step forward in attaining our Greenovate Boston goal of reducing Boston's greenhouse gas emissions 25% by 2020 and 80% by 2050." -Boston Mayor Martin J. Walsh
Reference: MATEP Cogeneration Plant
Located in Boston, MA
Power, heating & chilling for complex with 2000 beds + 135,000 patients/yr
Capacities
◦ Power: CHP 47 MW (83 MW total)
◦ Steam: 970 Kpph
◦ Chilling: 42,000 Tons
Distribution piping: steam + chilled water
Fuel: Natural Gas
Long-term O&M for a mini-utility providing the energy requirements of six hospitals and encompassing electricity, heating, cooling and distribution.
.
The Longwood medical area in Boston, is home to six prominent hospitals that are affiliated with Harvard Medical School.
Medical Area Total Energy Plant (MATEP) supplies the hospitals with steam, chilled water, and electricity, serving more than 9 million square feet of space.
Reference: Grays Ferry Cogeneration Plant
Located in Philadelphia, PA
Steam for Veolia Energy Philadelphia District Energy network plus power for the gird
CHP capacity : 170 MW + 1,444 Kpph
◦ Gas Turbine: 120 MW
◦ Steam Turbine: 50 MW
◦ HRSG: 711 Kpph
◦ Package boiler: 735 Kpph
Fuel: Natural Gas
U.S. Environmental Protection Agency’s Leadership Award for reducing greenhouse gas emissions.
“Power Plant of the Year Award” from Power Magazine.
This facility serves ~ 300 customers, including the University of Pennsylvania, in the central business district of Philadelphia and surrounding area.
Over 90% of the system’s steam demand is supplied from the CHP heat recovery systems.
Reference: Biogen IDEC Cogeneration Plant
Located in Cambridge, MA
Steam and cogenerated power for campus needs
CHP capacity : 5 MW + 27 Kpph
◦ Gas Turbine: 5 MW
◦ HRSG: 27 Kpph
◦ Veolia Energy Cambridge steam network provides backup service
Fuel: Natural Gas
SourceOne, Veolia Energy’s energy management and advisory services subsidiary managed the CHP project from concept to completion
Veolia Energy performs comprehensive O&M. Initial Initial 5-year agreement with performance guarantee was recently renewed for an additional 5-years
Reference: New York University CHP Plant
Located in New York City, NY
CHP capacity (after expansion): 13.4 MW + 90 Kpph
◦ 2-Gas Turbine: 6.7 MW each
◦ 2-HRSG: 45 Kpph each
Fuel: Natural Gas
SourceOne, Veolia Energy’s energy management and advisory services subsidiary served as Owners representative and managed the CHP project from concept to completion
The CHP is the heart of a microgrid that saves $5 MM/yr and serves 22-buildings with power, steam/hot water
2013 EPA Energy Star awardee
How to Implement a CHP Project with the Help
of the CHP TAP
CHP TAP Technical Assistance
High level assessment to
determine if site shows
CHP project potential
◦ Qualitative Analysis
– Energy Consumption & Costs
– Estimated Energy Savings & Payback
– CHP System Sizing
◦ Quantitative Analysis
– Understanding project drivers
– Understanding site peculiarities
DOE TAP CHP Screening Analysis
38
Annual Energy Consumption
Base Case CHP Case
Purchased Electricty, kWh 88,250,160 5,534,150
Generated Electricity, kWh 0 82,716,010
On-site Thermal, MMBtu 426,000 18,872
CHP Thermal, MMBtu 0 407,128
Boiler Fuel, MMBtu 532,500 23,590
CHP Fuel, MMBtu 0 969,845
Total Fuel, MMBtu 532,500 993,435
Annual Operating Costs
Purchased Electricity, $ $7,060,013 $1,104,460
Standby Power, $ $0 $0
On-site Thermal Fuel, $ $3,195,000 $141,539
CHP Fuel, $ $0 $5,819,071
Incremental O&M, $ $0 $744,444
Total Operating Costs, $ $10,255,013 $7,809,514
Simple Payback
Annual Operating Savings, $ $2,445,499
Total Installed Costs, $/kW $1,400
Total Installed Costs, $/k $12,990,000
Simple Payback, Years 5.3
Operating Costs to Generate
Fuel Costs, $/kWh $0.070
Thermal Credit, $/kWh ($0.037)
Incremental O&M, $/kWh $0.009
Total Operating Costs to Generate, $/kWh $0.042
CHP Project Resources
DOE/EPA Catalog of CHP Technologies (updated 2014)
Good Primer Report
http://www.epa.gov/chp
/technologies.html
www.eere.energy.gov/chp
DOE Project Profile Database (150+ case studies)
www.eere.energy.gov
/chp-profiles
www.dsireusa.org
DOE Database of incentives & policies
Next Steps
Resources are available to assist in developing CHP Projects.
Contact the Southwest CHP TAP to:
Perform CHP Qualification Screening for a particular facility
Identify existing CHP sites for Project Profiles
Additional Technical Assistance
CHP plays a key role in the industrial processes providing energy savings, reduced emissions, and opportunities for resilience
Emerging drivers are creating new opportunities to evaluate CHP and numerous examples exist to learn more how industrial facilities have incorporated CHP
Engage with the US DOE Southwest CHP TAP to learn more about the technical assistance offerings in evaluating CHP in your facility
Summary
Thank You!
Satish Ravindran, P.E., CEM
Houston Adv. Research Center
4800 Research Forest Drive
The Woodlands TX
Ph: 281-363-7906
Suresh Jambunathan
Director of Business Development, Veolia
700 East Butterfield Road, Suite 201
Lombard IL 60148
Ph:630-335-4544