sometimes it takes a big team to do the job – alternative

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Sometimes it takes a BIG team to do the job – Alternative Delivery of Cogeneration through the Washington ESPC Process Jeremy Holland, HDR Engineering, Inc.

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Page 1: Sometimes it takes a BIG team to do the job – Alternative

Sometimes it takes a BIG team to do the job – Alternative Delivery of Cogeneration

through the Washington ESPC ProcessJeremy Holland, HDR Engineering, Inc.

Page 2: Sometimes it takes a BIG team to do the job – Alternative

What we’ll cover today

• What is the process?• What was the project?• Who was involved?• Specific Project Steps• Next Steps

Page 3: Sometimes it takes a BIG team to do the job – Alternative

What is the process?• Energy Savings

Performance Contracting (ESPC)

• Started in Washington State in 1986

• State prequalifies Energy Services Companies (ESCOs) every 2 years (currently 10 prequalified ESCOs)

• Any governmental agency can use this prequalified list

• ESCOs are picked or may interview

Page 4: Sometimes it takes a BIG team to do the job – Alternative

What is the process?

• ESCOs perform a Preliminary Audit

• Identify Energy Conservation Measures (ECMs)

• Investment Grade Audit• Design-Build Project• Measurement &

Verification

Page 5: Sometimes it takes a BIG team to do the job – Alternative

What is the process?

• Ways of Funding– ESCO Finance– ESCO Municipal Lease– 3rd Party Finance– State LOCAL (Local Option

Capital Asset Leasing) program

– Energy cost savings– Grants, loans, incentives from

utilities*– Owner capital budgets/funds*

Page 6: Sometimes it takes a BIG team to do the job – Alternative

What is the process?

• Pros– Prequalified Contractor– No/Low Financial Risk– Open book costing– No bidding out subs or

equipment– Control Products (Some)– Faster process

• Cons– Additional Parties involved

from State GA – Performance based

approach

Page 7: Sometimes it takes a BIG team to do the job – Alternative

What was the project?• LOTT Alliance Budd Inlet

WWTP• Plant had larger digester gas

fueled cogeneration engine that was oversized for digester gas available. Engine was removed in 2004

• Space available, heat loop in place to install new engine

• Needed new gas treatment system

• Gas available = 3.1 MMBH

Page 8: Sometimes it takes a BIG team to do the job – Alternative

Who was involved?• LOTT Alliance – Project Sponsor/Owner• Washington State Department of General

Administration – Contracting Mechanism & ESPC Process Oversight

• Puget Sound Energy – Funding and Interconnection Review

• ORCAA – Air Emissions• City of Olympia Building Dept. - Permitting• Trane, Inc. – D/B Contractor• HDR – Engineer• Smith Power Products – Engine provider• CalPwr – Gas treatment system supplier• Cascade Power - Permitting• Damon Controls – I&C Integration• Hermanson Mechanical – Mechanical Sub• Betchart Electric – Electric Sub

Page 9: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Investment Grade Audit

• Evaluate gas available• Evaluate elements of

existing system that need to be modified

• Develop preliminary drawings for contractor cost estimate

• Perform lifecycle cost analysis to show payback of improvements

Page 10: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Design Phase

• Develop design documents for building modifications– Detailed analysis of

necessary demolition

Page 11: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Design Phase

• Develop design documents for building modifications– New heat loop pumps

& tie ins to high and low temperature loops

– New natural gas high efficiency boilers

– Generator breaker in mechanical room

– Verify HVAC requirements satisfied

Page 12: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Design Phase

• Select engine and configure for project – 335 kW GE/Jenbacher Engine– Exhaust Heat Recovery Silencer

• Develop specification for gas treatment system supply– Sulfatreat H2S removal– Glycol chiller– Booster blowers & moisture

removal/gas cooling heat exchanger

– Activated Carbon siloxaneremoval

Page 13: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Design Phase

• Support permitting efforts with PSE, ORCAA, Olympia

• Develop electricity offset documentation for PSE grant funding – gas storage to demonstrate adequate engine operation

Page 14: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Design Phase

• Teamwork Opportunities– Electrical Connection– Heat loop usage– Noise Issues– Gas treatment selection– Emissions Permitting

Page 15: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps - Construction & Start Up Phase

• Review submittal of items for construction –primarily engine, boilers, gas treatment

• Respond to questions from Contractor, sort through field issues as they arise

• Respond to questions from Contractor during start up

Page 16: Sometimes it takes a BIG team to do the job – Alternative

Project Specific Steps – Measurement & Verification

• Working out the bugs– Heat

Rejection– Engine

Capacity– Hot Room– Gas cooling– Excess gas

available

Page 17: Sometimes it takes a BIG team to do the job – Alternative

What’s Next?• Engine meeting performance• Received 70% of project cost

from PSE• Excess gas available• Adding small digester gas

boiler• Rerate Engine?• Replacing strainer to improve

cooling performance in low temperature loop

• NEW ECM PROJECT: Replacing aeration blowers with turbo blowers

Page 18: Sometimes it takes a BIG team to do the job – Alternative

Questions?

Jeremy Holland, HDR Engineering, Inc.