Investing in Combined Heat & Power at

Wastewater Treatment Plants

August 22,2017 – Prattville, AL

Oscar Llama CHP Technical Assistance Lead Southeast CHP TAP NC State University

– Combined Heat and Power (CHP): • What is it?

• Benefits

– CHP in Wastewater Treatment Plants • Drivers and Benefits

• Market Analysis

• Examples

• Key Lessons and Solutions

– U.S. Dept. of Energy CHP Technical Assistance Partnerships • How can we help you?

• Project Resources

Agenda

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Fuel 100 units

CHP 75% efficiency

Total Efficiency ~ 75%

Fuel

Fuel

30 units

Power Plant 32% efficiency (Including T&D)

Onsite Boiler 80% efficiency

45 units

Electricity

Heat

Total Efficiency ~ 50%

94 units

56 units

30 to 55% less greenhouse gas emissions

CHP Recaptures Heat of Generation Increasing Energy Efficiency and Reducing GHGs

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CHP: A Key Part of Our Energy Future

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• 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: • Space Heating / Cooling

• Process Heating / Cooling

• Dehumidification

CHP provides efficient, clean, reliable, affordable

energy – today and for the future.

Source http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

CHP Today In the United States

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• 81 GW of installed CHP at over 4,300 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

What Are the Benefits of CHP? CHP is more efficient than separate generation of

electricity and heat Higher efficiency translates to lower operating cost,

(but requires capital investment) Higher efficiency offers opportunities for reduced

emissions CHP can also increase energy reliability and enhance

power quality On-site electric generation reduces grid congestion

and avoids distribution costs

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CHP Benefits for WWTPs

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Victor Valley, CA Wastewater Treatment Plant CHP

Critical Infrastructure and Resiliency Benefits of CHP

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“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

Other Specific CHP Drivers and Benefits for WWTPs

Energy cost savings Federal, state and local utility incentives Energy/sustainability plans and emissions reductions Green publicity/positive public relations Enhanced reliability Facility upgrades Increased biogas production Enhanced biosolid management Utility peak load shedding

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Fun Facts: A typical WWTP processes 100 gal/day of wastewater for each person they serve Each million gallons per day (MGD) of wastewater flow can produce enough biogas in an anaerobic digester to produce 30 kW of electric capacity

Market Analysis for WWTP CHP DOE CHP Installation Searchable Database December 31,

2016 data: energy.gov/chp-installs 214 WWTPs have CHP systems (694.6 MW Capacity) 24 of the 214 sites reported system expansions 67% of WWTP CHP systems use reciprocating engines

followed by microturbines (17%), combustion turbines (7%), and fuel cells (5%)

CHP Technical Potential Report (March 2016) finds: energy.gov/chp-potential 262 MW remaining potential at over 1,300 WWTPs Based on sites that already have anaerobic digesters A majority of this potential is in sites sized at < 500 kW

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Project Snapshot: Moving Towards Net-Zero

Danville Sanitary District Danville, IL Application/Industry: Wastewater Treatment Capacity (MW): 150 kW Prime Mover: Reciprocating Engine Fuel Type: Biogas Thermal Use: Digester Process Heat, Building

Heat Installation Year: 2013 Testimonial: “What’s not to like about using sewage to generate heat and electricity while also reducing gas emissions into the atmosphere?” - Danville is currently looking at increasing gas production for a second engine

Biogas Conditioning Equipment

150 kW CHP Engine-Generator

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Project Snapshot: Net Export of Power

Victor Valley Wastewater Reclamation Authority Victorville, CA Application/Industry: Wastewater Treatment Capacity (MW): 1.6 MW Prime Mover: (2) Reciprocating Engines Fuel Type: Biogas Thermal Use: Digester Process Heat Installation Year: 2014 Testimonial: [With this new CHP system] VVWRA not only will be able to realize the goal of becoming an energy-neutral facility, but also will be able to utilize its existing assets to generate significant revenue by selling power to the utility and receiving tipping fees for external waste. - Gilbert Perez, Director of Operations, VVWRA

Biogas Digesters and Storage

Modular 800 kW CHP Units

Source: Water & Wastes Digest, http://www.wwdmag.com/ ; 2G Energy, http://www.2g-energy.com/

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Project Snapshot: Multi-fuel Resiliency for Critical Infrastructure

Miami Dade Water & Sewer Dept. South District WWTP Miami, FL Application/Industry: Wastewater Treatment Capacity (MW): 8 MW Prime Mover: (4) Reciprocating Engines Fuel Type: Digester, landfill or natural gas Thermal Use: Digester process heat,

absorption cooling Installation Year: 1991, expanded 2014 Energy Savings: $2.16 million per year in

electricity cost savings Testimonial- “Using all biogas provides a cost savings of approximately $650,000 per year per 2 megawatt cogeneration unit operating on biogas and natural gas. Not only would we be less dependent on purchasing electricity, thus realizing a cost-savings, but utilizing the methane gas in this method is also an environmental benefit.” Miami-Dade WASD Director Lester Sola

Source: Miami Dade Water & Sewer, Brown & Caldwell

Cummins C2000 Engine-Generator

Aerial View of South District WWTP

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Project Snapshot: ReWa Mauldin Road Plant

The Mauldin Road WRRF CHP Greenville, SC Application/Industry: Wastewater Treatment Capacity (MW): 0.8 MW Prime Mover: (1) Reciprocating Engine Fuel Type: Digester Thermal Use: Digester process heat (60-80%) Gas Cleaning: H2S, Organic sulfur (iron

sponge), siloxanes (carbon sponge)

Energy Savings: $0.25 million per year in electricity cost savings

Lessons Learned: > Project Approach: Include engineer,

manufacturer, contractor, and O&M team

> Look for electric utility incentives and be prepared to move quickly

Source: CHP for WWTPs Webinar ReWa 170420

800kW Reciprocating Engine

WWTP CHP Key Lessons and Solutions

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Technical Lessons / Solutions Biogas Conditioning – most likely required and should be budgeted CHP System Placement – coordinate with biogas and electrical O&M Staff & Training – involvement throughout project is key Biogas fluctuations – optimize storage & consider multiple fuels

Other Lessons / Solutions Utility Interconnection & Tariffs – coordinate early in process Air Permitting – approach should credit reduced source emissions Biogas Supply – increase with food waste or FOG introduction Project Financing – consider alternative sources of funding including

loan programs, renewable energy credits, utility incentives

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DOE CHP TAP Technical Assistance

and Resources

Overview of DOE CHP TAP Program

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Map of U.S. CHP Installations; Source: energy.gov/chp-installs

DOE CHP Technical Assistance Partnerships (CHP TAPs)

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DOE's CHP TAPs promote and assist in transforming the market for CHP, waste heat to power, and district energy or microgrids with CHP throughout the United States. Key services include: • Market Opportunity Analysis

Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors

• Education and Outreach Providing 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 Assistance Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy or microgrids with CHP in their facility and to help them through the development process from initial CHP screening to installation.

www.energy.gov/chp

Best Candidates for CHP

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• Consistent source of organic matter to produce biogas • High and constant thermal load • Favorable spark spread • Need for high reliability • Concern over future electricity prices • Interest in reducing environmental impact • Planned facility expansion or new construction; or

equipment replacement within the next 3-5 years

CHP TAP Technical Assistance

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• High level assessment to determine if site shows potential for a CHP project – 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 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

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A Feasibility Analysis Typically Involves:

• Electrical load profiling • Thermal load profiling • Unit sizing • Thermal use determination (what to do with the heat) • Installation cost estimations • Financial calculations (simple payback, ROI, etc.) • Cost/savings information compared to what your facility

would pay if the CHP system were not installed 23

CHP Project Resources Good Primer Report

DOE CHP Technologies Fact Sheet Series

www.eere.energy.gov/chp www.energy.gov/chp-technologies

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CHP Project Resources DOE Project Profile Database

(100+ case studies)

energy.gov/chp-projects

DOE Database of Incentives & Policies (DSIRE)

www.dsireusa.org

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Next Steps

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We invite you to: • Work with us to perform CHP Qualification

Screening / Feasibility Analyses for your WWTP

• Stay in touch to learn about upcoming events, including site tours, workshops/webinars and publications

Thank you!

Oscar Llama CHP Technical Assistance Lead Southeast CHP TAP NC State University oscar_llama@ncsu.edu

Isaac Panzarella Director Southeast CHP TAP NC State University ipanzar@ncsu.edu

Art Samberg Assistant Director Southeast CHP TAP NC State University asamber@ncsu.edu

State by State WWTP CHP Tech Potential

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Source: ”Combined Heat and Power (CHP) Technical Potential in the United States; U.S. Department of Energy, March 2016,

Southeast Region 58,194 kW 22%

Southeast State Clean Water Revolving Loan Funds

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State Program Purpose Website Contact AL Clean Water State

Revolving Fund Loan Program (CWSRF) (sewer)

The CWSRF program is available to fund a wide variety of water quality and wastewater treatment projects as well as storm water projects. (Certain types of "green" projects are also eligible.)

http://www.adem.state.al.us/progr ams/water/srf.cnt

James Dailey jwd@adem.state.al.us 334-271-7805 PO Box 301463 Montgomery, Alabama 36130

NC Clean Water State Revolving Fund (SRF) (sewer)

The CWSRF provides low interest loans to local government units to fund wastewater collection and treatment facilities as well as programs associated with estuary and non-point sources.

http://portal.ncdenr.org/web/wi/ cwsrf

Anita Reed anita.reed@ncdenr.gov 919-707-9174 1633 Mail Service Center Raleigh, North Carolina 27699

SC Clean Water SRF (sewer, stormwater)

The Clean Water SRF finances all types of sewer facilities including treatment plants, collection systems, stormwater improvements, and line relocation for road widening for environmental and growth purposes up to 30 years at 1.0% to 1.9% for FY17.

www.ria.sc.gov/index.php/srf-loanshow-to-apply

Chuck Gorrman S RF Program Director gormancm@dhec.sc.gov 803-898-3993

FL Clean Water State Revolving Fund Loan Program (CWSRF) (water, wastewater)

Provides low-interest loans for planning, designing, and constructing water pollution control facilities. Projects include the construction of new wastewater collection, treatment and disposal systems as well as rehabilitation and upgrades of existing systems. Storm water collection and treatment is also eligible.

http://www.dep.state.fl.us/water /wff/cwsrf/

Tim Banks Timothy.Banks@dep.state.fl.us 850-245-2969 3900

GA Clean Water State Revolving Fund Loan Program (CWSRF) (sewer)

The CWSRF program is available to fund a wide variety of water quality and wastewater treatment projects as well as storm water projects. (Certain types of "green" projects are also eligible.)

http://gefa.georgia.gov/cleanwater-state-revolving-fund

Jenerrah Byron jenerrah@gefa.ga.gov 404-584-1075 233

KY Clean Water State Revolving Fund (CWSRF) (sewer)

The CWSRF (Fund A), is a 20-year loan program for planning, design and construction of wastewater infrastructure projects, storm water projects and nonpoint source projects. Fund A1 provides assistance to small communities in financing the preliminary costs prior to construction. It is a five-year loan for planning, design and sanitary sewer evaluation study (SSES). If a community applies for a loan for the construction portion of the project under Fund A, the Fund A1 can be rolled over to the Fund A loan.

http://water.ky.gov/Funding/Pages/ CleanWaterStateRevolvingFund.asp x

Buddy Griffin buddy.griffin@ky.gov 502-564-3410 ext. 4971

MS Water Pollution Control (Clean Water) Revolving Loan Fund (WPCRLF) Program (water, wastewater)

Municipalities, public sewer districts or other eligible recipients who are interested in obtaining low interest loan funding for water pollution control projects should do the following: (1) Hire a consulting engineer registered in Mississippi; (2) Click here to view the Construction Branch Staff Directory; (3) Arrange a pre-planning conference with Department staff; (4) Submit a Ranking Form requesting placement on the Priority List; (5) Develop and submit a Facilities Plan by the deadline established each year.

http://www.deq.state.ms.us/M DEQ.nsf/page/SRF_Water_PC_ RLP?OpenDocument

Tony Caldwell tony_caldwell@deq.state.ms.us 601-961-5618

TN Clean Water State Revolving Fund (sewer)

The CWSRF program is available to fund a wide variety of water quality and wastewater treatment projects as well as storm water projects. (Certain types of "green" projects are also eligible.)

https://tn.gov/environment/topic/wr-srf-state-revolving-fund-program

Sherwin Smith sherwin.smith@tn.gov 615-532-0445

Screening Questions

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• Do you pay more than $.06/kWh on average for electricity (including generation, transmission and distribution)?

• Are you concerned about the impact of current or future energy costs on your operations?

• 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.)

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• 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.)