1DATA2 (\\SNL2C) :\PDSConfidential\Classified PDS Marketing\2013 PDS Executive PDS Executive Overview_June2015.pptx
Sargent & Lundy Webinar
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What Role Can Combined Heat and Power Play in Meeting Your Industrial
Energy Needs?January 19, 2017
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“…concurrent production of electricity or mechanical power and useful thermal energy…from a single source of energy”
Energy.gov, Office of Energy Efficiency & Renewable Energy
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U.S. Market Share: Number of Units
Electric Utility 9,578
IPP non-CHP 7,323
Commercial non-CHP
472Industrial non-CHP
444
Industrial CHP 1,184
Commercial CHP618
IPP CHP543CHP
2,345
Source: U.S. eia
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U.S. Market Share: Capacity
Electric Utility667,286
IPP non-CHP427,427
Commercial non-CHP
1,267
Industrial non-CHP2,144
Industrial CHP29,584
Commercial CHP2,917
IPP CHP36,974
CHP69,475
Source: U.S. eia
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Applications
Industrial Commercial District Energy
Food Processing Waste Water Treatment Colleges & Universities
Chemicals Hospitals Downtown loops
Refining Multifamily Industrial complexes
Metal Manufacturing Colleges & Universities
Paper Military Bases
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U.S. Installations by Fuel Type
Source: US eia
37,096
10,020
7,268 7,214
3241,612
691 5882,621
791,130
98 354 430 9 18 4 30
5000
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Planned CHP’s (Nationwide)
Source: US eia
315
1,040
95
7
107
575
20
200
400
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800
1000
1200
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U.S. CHP Potential
65,381
75,930
7,624
81,048
10,660
On-site IndustrialOn-site CommercialOn-site WHPExport IndustrialExport District HeatingSource: U.S. DOE
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Does it Make Sense to Consider?
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Benefits
• Higher efficiency vs. conventional generation
– Less fuel per MWe– Lower emissions (GHG)– Lower water usage
• Improved reliability– Process steam– Heating/cooling– Quality electric power
• Improved energy security
• Energy cost savings• Multi-fuel capability• Demand Response
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Obstacles
• Not core business of industry end-user• Reluctance to make a long-term investment
due to market uncertainties• Payback periods beyond current company
policy• Complexity of permitting and siting
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Energy Policy Act of 2005
Source: ICF CHP Installation Database, 2012
Eliminated PURPA “mandatory purchase”
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Approaches
•Topping CycleGenerate electricity first, then surplus used for thermal
•Bottoming CycleGenerate thermal energy first, then surplus used for electricity
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Alternatives: Traditional
Waste Heat Boilers RICE Microturbines Gas Turbines
Dependent on WH temperature and mass flow
10 kW – 10 mW 30 – 330 kW 30 – 300+ mW
Steam quality sufficient for manyprocess
Steam quality sufficient for many process
500 – 600ºF, hot water and low pressure steam
800 – 1,200ºF
Waste heat from process
Various gaseous and liquid fuels
Various gaseous and liquid fuels
Various gaseous and liquid fuels
Generally quiet Acoustic enclosure building
Moderate High energy fluids & high speed machinery
Limited ramp ranges, potentiallycomplex metallurgy
Well-suited forpart load operation
Significant loss of efficiency for part load operation
Significant loss of efficiency for part load operation
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Industrial Green Initiative
•Corporate Goals•State and Community Programs•Community
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Alternatives: Renewable
Solar PV Wind< 1 MW < 1.5 MW
Light industrial & commercial
Light industrial & commercial
Sun Wind
Quiet Quiet
Dependent on weather conditions
Dependent on weather conditions
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Battery Storage and CHP
• Current CHP model beneficial for concurrent consumption of electric power and heat
• Renewable Cogen facilities
• Electric power storage for non-coincidental thermal and electric power demand
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CHP: Related Incentives & Policies
FederalInterconnection Standards for Small Generators Interconnection
USDA _ Rural Energy for America Program Loan Guarantees
Loan Program
USDA - Rural Energy for America Program (REAP) Grants Grant Program
Modified Accelerated Cost-Recovery System (MACRS) Corporate Depreciation
Business Energy Investment Tax Credit (ITC) Corporate Tax Credit
Green Power Purchasing Goal for Federal Government Green Power Purchasing
IndianaInterconnection Standards Interconnection
Electric Efficiency Standard Energy Efficient Resource Standard
Clean Energy Portfolio Standard Renewable Portfolio Standard
City of Bloomington – Sustainable Development Incentives Financial Incentive
Community Conservation Challenge Grant Program
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Clean Power Plan: Existing Units
Some Units May Be Affected if They are:• Fossil fuel fired• Connected to utility/transmission grid
> 25 MW• Heat Input >250 mmBtu/hr
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Clean Power Plan: New Units
• New CHP units are not defined as affected units• Plan suggests states include cogen in their SIPs• CO2 emissions calc. accounts for electrical and useful
thermal energy• Implications:
– CO2 emissions lower than SIP limits can trade surplus allowances or emission reduction credits
– Whether mass-based or rate based– Possible revenue stream– Smoother approval & permitting
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Profile Slides
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Combined Cycle CHP
• EPC, Owners Engineer• GE 7EA, 85 MW• HRSG, 800,000 lb/hr steam• (2) Aux Boilers, 200,000 lb/hr
steam
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Simple Cycle CHP
• (4) GE 7EAs• (3) new boilers with SCRs• Aux boiler replacement,
EPC JV
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If you have any questions concerning this webinar, please contact:
Paula Guletsky, Vice [email protected]
(312) 269-6763