chp for emission control

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Presented By: John J. Cuttica Midwest CHP Application Center www.CHPCenterMW.org CHP for Emission Control Governors’ Ethanol Coalition Meeting June 22, 2004 Madison Wisconsin In Partnership with the US DOE

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CHP for Emission Control. In Partnership with the US DOE. Governors’ Ethanol Coalition Meeting June 22, 2004 Madison Wisconsin. Presented By: John J. Cuttica Midwest CHP Application Center www. CHPCenterMW .org. Presentation Outline. FEW Breakout Sessions Why CHP IN Ethanol Plants - PowerPoint PPT Presentation

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Page 1: CHP for Emission Control

Presented By: John J. Cuttica Midwest CHP Application Center

www.CHPCenterMW.org

Presented By: John J. Cuttica Midwest CHP Application Center

www.CHPCenterMW.org

CHP for Emission Control

CHP for Emission Control

Governors’ Ethanol Coalition MeetingJune 22, 2004

Madison Wisconsin

Governors’ Ethanol Coalition MeetingJune 22, 2004

Madison Wisconsin

In Partnership with the US DOE

Page 2: CHP for Emission Control

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In Partnership with the US DOE

Presentation Outline Presentation Outline • FEW Breakout Sessions

• Why CHP IN Ethanol Plants

• CHP, The Concept

• CHP, The Business Case

• CHP For Emission Control

• Further Assistance

• FEW Breakout Sessions

• Why CHP IN Ethanol Plants

• CHP, The Concept

• CHP, The Business Case

• CHP For Emission Control

• Further Assistance

Page 3: CHP for Emission Control

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In Partnership with the US DOE

FEW Breakout SessionsFEW Breakout Sessions• Cogeneration (1): Thursday 8:30 to 10:00am

– 4 papers being presented

• Cogeneration (2): Thursday 10:15 to 11:45 am

– Panel Discussion

» US Energy Partners - Russell, Kansas Plant

» Adkins Energy – Lena, Illinois Plant

» Northeast Missouri Grain – City of Macon Missouri

» EME Engineering Company

» US Environmental Protection Agency

• Cogeneration (1): Thursday 8:30 to 10:00am– 4 papers being presented

• Cogeneration (2): Thursday 10:15 to 11:45 am

– Panel Discussion

» US Energy Partners - Russell, Kansas Plant

» Adkins Energy – Lena, Illinois Plant

» Northeast Missouri Grain – City of Macon Missouri

» EME Engineering Company

» US Environmental Protection Agency

Page 4: CHP for Emission Control

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In Partnership with the US DOE

Why CHP Is a Good FitWhy CHP Is a Good Fit

• Energy Is The Second Largest Cost Of Production for Dry Mill Ethanol Plants

• Electric And Steam Demands Are Large And Coincident

• Electric And Steam Profiles Are Relatively Flat

• Both Thermal And Electric Reliability Are Very Important

• Energy Is The Second Largest Cost Of Production for Dry Mill Ethanol Plants

• Electric And Steam Demands Are Large And Coincident

• Electric And Steam Profiles Are Relatively Flat

• Both Thermal And Electric Reliability Are Very Important

Page 5: CHP for Emission Control

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In Partnership with the US DOE

Why CHP Is a Good FitWhy CHP Is a Good Fit

• Operating Hours Are Continuous – 24/7

• Ability To Utilize Fuels Other Than Natural Gas

• $aves Energy And Reduces Energy Costs

• Hedge Against Unstable Energy Prices

• Potential for Emissions Control (VOC Destruction)

• Operating Hours Are Continuous – 24/7

• Ability To Utilize Fuels Other Than Natural Gas

• $aves Energy And Reduces Energy Costs

• Hedge Against Unstable Energy Prices

• Potential for Emissions Control (VOC Destruction)

Page 6: CHP for Emission Control

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In Partnership with the US DOE

What is CHP?What is CHP?• Integrated Energy Supply System

• Located At or Near a Building or Facility

• Provides All or a Portion of the Electrical Load

• Utilizes the Thermal Energy– Process Heat– Heating– Cooling– Drying

• Integrated Energy Supply System

• Located At or Near a Building or Facility

• Provides All or a Portion of the Electrical Load

• Utilizes the Thermal Energy– Process Heat– Heating– Cooling– Drying

Page 7: CHP for Emission Control

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In Partnership with the US DOE

Benefits Of CHPBenefits Of CHPHigh Efficiency, On-Site Generation Means …High Efficiency, On-Site Generation Means …

•CompetitivenessCompetitiveness•Lower Energy CostsLower Energy Costs•Better ReliabilityBetter Reliability•Better Power QualityBetter Power Quality

•EnvironmentalEnvironmental•Lower Emissions Lower Emissions (including CO(including CO22 ) )•Conserve Natural Conserve Natural ResourcesResources

•CompetitivenessCompetitiveness•Lower Energy CostsLower Energy Costs•Better ReliabilityBetter Reliability•Better Power QualityBetter Power Quality

•EnvironmentalEnvironmental•Lower Emissions Lower Emissions (including CO(including CO22 ) )•Conserve Natural Conserve Natural ResourcesResources

• SynergiesSynergies• Potential Generation AssetPotential Generation Asset• Especially Municipal/Co-opsEspecially Municipal/Co-ops

• Support Grid InfrastructureSupport Grid Infrastructure–Fewer T&D ConstraintsFewer T&D Constraints–Defer Costly Grid UpgradesDefer Costly Grid Upgrades

• Facilitates Deployment of Facilitates Deployment of New Clean Energy New Clean Energy TechnologiesTechnologies

• SynergiesSynergies• Potential Generation AssetPotential Generation Asset• Especially Municipal/Co-opsEspecially Municipal/Co-ops

• Support Grid InfrastructureSupport Grid Infrastructure–Fewer T&D ConstraintsFewer T&D Constraints–Defer Costly Grid UpgradesDefer Costly Grid Upgrades

• Facilitates Deployment of Facilitates Deployment of New Clean Energy New Clean Energy TechnologiesTechnologies

Page 8: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine CHPGas Turbine CHP

Page 9: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine/Supplemental Firing CHP

Gas Turbine/Supplemental Firing CHP

Page 10: CHP for Emission Control

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In Partnership with the US DOE

Boiler/Steam Turbine CHPBoiler/Steam Turbine CHP

Page 11: CHP for Emission Control

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In Partnership with the US DOE

CHP System Cost and PerformanceCHP System Cost and PerformanceGas Turbine Gas Turbine

w/Duct FiringBoiler/Steam

Turbine

Capacity, MW 1 - 15 1 - 15 0.5 - 5

Electrical Efficiency, % (HHV) 22 – 32 12 - 17 6 - 10

Steam Output, Btu/kWh 4,500 – 6,700 12,000 – 20,000 35,000 – 40,000

Overall Efficiency, % (HHV) 65 - 70 80 - 85 75 - 85

Power to Steam Ratio 0.4 – 0.6 0.17 – 0.27 0.08 – 0.12

Installed Costs, $/kW 1,800 - 900 2,000 – 1,000 350 – 900*

Non-fuel O&M Costs, $/kWh 0.006 – 0.01 0.006 – 0.01 <0.004

* Incremental costs of steam turbine generator and supporting systems only

Page 12: CHP for Emission Control

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In Partnership with the US DOE

CHP TechnologiesCHP Technologies

Page 13: CHP for Emission Control

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In Partnership with the US DOE

–Gas TurbinesGas Turbines–Gas TurbinesGas Turbines

Reliable CHP TechnologiesReliable CHP Technologies

• Electric Generation Equipment• Electric Generation Equipment

–Reciprocating Reciprocating EnginesEngines

–Reciprocating Reciprocating EnginesEngines– Steam Turbines– Steam Turbines

Page 14: CHP for Emission Control

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In Partnership with the US DOE

• Heat Recovery Systems– Steam and Hot Water– Exhaust Gases

• Heat Recovery Systems– Steam and Hot Water– Exhaust Gases

Reliable CHP TechnologiesReliable CHP Technologies

Page 15: CHP for Emission Control

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In Partnership with the US DOE

Other ComponentsOther Components• Grid Interconnect:

– Isolation Switch– Switchgear– Protection Relays

– Synchronizing Equipment

• Installation:– Equipment Footprint– Floor Loading– Proximity To HVAC Equipment– Number of Electrical Feeds

• Grid Interconnect:– Isolation Switch– Switchgear– Protection Relays

– Synchronizing Equipment

• Installation:– Equipment Footprint– Floor Loading– Proximity To HVAC Equipment– Number of Electrical Feeds

» PowerPower» FrequencyFrequency

» CurrentCurrent» VoltageVoltage

Page 16: CHP for Emission Control

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In Partnership with the US DOE

CHP Is A Low Technical RiskCHP Is A Low Technical Risk• Utilize Proven Technologies

• Employ Standard Design Practices

• Incorporate Good Maintenance Practices

• Utilize Proven Technologies

• Employ Standard Design Practices

• Incorporate Good Maintenance Practices

Page 17: CHP for Emission Control

CHP Business CaseCHP Business Case

Analysis Done By:Bruce Hedman

Energy & Environmental Analysis, IncUnder

US EPA CHP Partnership Program

Page 18: CHP for Emission Control

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UIC

In Partnership with the US DOE

Plant Operating AssumptionsPlant Operating AssumptionsPlant Capacity, mmgal/yr 50

Operating Hours 8760

Electric Use, kWh/gal 0.96

Annual Electric Use, MWh 48,180

Baseload Electric Demand, MW 5.5

Steam Use, lb/gal 19.3

Steam Use, lbs/hr 110,000

Annual Steam Use, mmlbs 963,600

Boiler Fuel Use, Btu/lb 24,125

Annual Boiler Fuel Use, mmBtu 1,206,300

Annual Drier Fuel Use, mmBtu 605,000

Electric Costs, $/kWh 0.07

Gas Costs, $/mmBtu 6.00

Page 19: CHP for Emission Control

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UIC

In Partnership with the US DOE

The Value EquationThe Value Equation

- Reduced purchased electricity costs

+ Increased fuel costs

+ Increased O&M costs

+ Increased capital expenditure

- Displaced capital?

- Reliability, other operational savings?

- Overall Savings

- Reduced purchased electricity costs

+ Increased fuel costs

+ Increased O&M costs

+ Increased capital expenditure

- Displaced capital?

- Reliability, other operational savings?

- Overall Savings

Page 20: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine CHP System AssumptionsGas Turbine CHP System AssumptionsGas Turbine

Capacity, MW 5.2

Run Hours 8500

Gas Turbine Fuel, mmBtu/hr 67.2

Duct Burner Fuel, mmBtu/hr 0

Steam Output, lb/hr 28,600

Power to Steam Ratio 0.62

O&M Costs, $/kWh 0.008

Capital Costs

Turbine Genset, $/kW 415

HRSG, $/kW 100

Interconnect, $/kW 60

Misc Equipment, $kW 80

Engineering, installation, etc, $/kW

390

Total Installed Cost, $/kW 1,045

Page 21: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine CHP – Financial Results

Gas Turbine CHP – Financial Results

W/O CHP W/ CHP

Purchased Electricity, 1000 $ 3,372.6 278.6

Boiler Fuel, 1000 $ 7,227.0 5,423.4

CHP Fuel, 1000 $ 0 3,344.8

Energy Costs*, 1000 $ 10,599.6 9,046.8

O&M Costs, 1000 $ 0 353.6

Standby Charges, 1000 $ ($3/kW) 0 187.2

Total Operating Costs, 1000 $ 10,599.6 9,587.5

Operating Savings = $1,012,100

* Does not include DDGS drier fuel

Page 22: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine CHP – PaybackGas Turbine CHP – Payback

Capital Costs = $5,434,000 Payback = 5.4 yrs

Capital Costs = $4,980,000 Payback = 4.9 yrs

CHP System $5,434,000 - Boiler credit $ 450,000 $4,984,000

Page 23: CHP for Emission Control

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In Partnership with the US DOE

Sensitivity to Electric & Natural Gas PricesSensitivity to Electric & Natural Gas PricesGas Turbine CHPGas Turbine CHP

Sensitivity to Electric & Natural Gas PricesSensitivity to Electric & Natural Gas PricesGas Turbine CHPGas Turbine CHP

0

2

4

6

8

5 6 7 8 9 10

Electricty Price, cents/kWh

Sim

ple

Pa

yb

ac

k,

yrs

$4 $5 $6 $7 $8

Natural Gas Price, $/mmBtuNatural Gas Price, $/mmBtu

Page 24: CHP for Emission Control

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UIC

In Partnership with the US DOE

Payback – Various CHP OptionsPayback – Various CHP OptionsCHP System Type

Capital Cost - $000

Operating Savings - $000

Simple Payback – Yrs.

Boiler Credit - $000

Capital Cost (2) - $000

Simple Payback (2) – Yrs.

Gas Turbine

5,434 1,012 5.4 450 4,984 4.9

Gas Turbine W/Duct Burner

6,266 1,476 4.2 900 5,366 3.6

Boiler / Steam Turbine

2,175 1,390 1.6

Page 25: CHP for Emission Control

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In Partnership with the US DOE

Integrate VOC Destruction With CHP(Techniques Presently Under Evaluation)Integrate VOC Destruction With CHP(Techniques Presently Under Evaluation)

• Ingest VOC into the Turbine

– Technical Challenge With Ethanol Dryer VOC Stream

• Destruction Through the Turbine Exhaust

– Less of Technical Challenge, More of a Cost Effictiveness Issue

• Ingest VOC into the Turbine

– Technical Challenge With Ethanol Dryer VOC Stream

• Destruction Through the Turbine Exhaust

– Less of Technical Challenge, More of a Cost Effictiveness Issue

Page 26: CHP for Emission Control

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UIC

In Partnership with the US DOE

Integrate VOC Destruction With CHPIntegrate VOC Destruction With CHP• VOC Stream Destroyed In Plant Boiler

– Presently Being Explored By Ethanol Industry

– Adding Steam Turbine Small Incremental Cost

• Destroy VOC in T/O (recuperated / non-recuperated)– Recover Heat From non-recuperated T/O

and Use in Steam Turbine

• VOC Stream Destroyed In Plant Boiler– Presently Being Explored By Ethanol

Industry

– Adding Steam Turbine Small Incremental Cost

• Destroy VOC in T/O (recuperated / non-recuperated)– Recover Heat From non-recuperated T/O

and Use in Steam Turbine

Page 27: CHP for Emission Control

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In Partnership with the US DOE

Gas Turbine/VOC Destruction CHPGas Turbine/VOC Destruction CHP

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In Partnership with the US DOE

Thermal Oxidizer/Steam Turbine CHPThermal Oxidizer/Steam Turbine CHP

Page 29: CHP for Emission Control

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In Partnership with the US DOE

Integrate VOC Destruction With CHP(Next Steps)

Integrate VOC Destruction With CHP(Next Steps)

• Multi State Pre-Proposal Submitted Under STAC Science RFP (Illinois, Kansas, Minnesota)

• Presently Seeking Other Funding Sources to Evaluate & Test the Various Options

• Multi State Pre-Proposal Submitted Under STAC Science RFP (Illinois, Kansas, Minnesota)

• Presently Seeking Other Funding Sources to Evaluate & Test the Various Options

Page 30: CHP for Emission Control

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In Partnership with the US DOE

CHP – Further AssistanceCHP – Further Assistance• US EPA Combined Heat & Power Partnership

– Launched in 2001

– 138 Partners – 851 MW of Projects Assisted

– Voluntary Public-Private Partnership To Help Get CHP Projects Installed

– Education, Networking, Resources, Technical Assistance, Recognition

• Contact Luis Troche @ 202/343-9442

WWW.epa.gov/chp

• US EPA Combined Heat & Power Partnership

– Launched in 2001

– 138 Partners – 851 MW of Projects Assisted

– Voluntary Public-Private Partnership To Help Get CHP Projects Installed

– Education, Networking, Resources, Technical Assistance, Recognition

• Contact Luis Troche @ 202/343-9442

WWW.epa.gov/chp

Page 31: CHP for Emission Control

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UIC

In Partnership with the US DOE

CHP – Further AssistanceCHP – Further Assistance• US DOE Sponsored Application Centers

• Midwest CHP Application Center– Serves 8 State Midwest Region

– Information, Education, Technical Assistance

– Contact: John Cuttica 312/996-4382

WWW.chpcentermw.org

• Five Additional Centers Throughout the US

• US DOE Sponsored Application Centers

• Midwest CHP Application Center– Serves 8 State Midwest Region

– Information, Education, Technical Assistance

– Contact: John Cuttica 312/996-4382

WWW.chpcentermw.org

• Five Additional Centers Throughout the US