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CHP: The ConceptCombined Heat and Power and Waste Heat to Power for
Industrial, Institutional, and Commercial Facilities
Graeme MillerAssistant Director
US DOE Midwest CHP Technical Assistance Partnership
Circleville, OhioSeptember 26, 2019
• DOE CHP Technical Assistance Partnerships
• CHP Concepts and Technologies
• CHP Benefits and Potential in Ohio
• Ohio CHP Project Profiles
• Available Technical Assistance
• Next Steps in Evaluating CHP
Agenda
2
DOE CHP Technical Assistance Partnerships (CHP TAPs)
• End User EngagementPartner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses.
• Stakeholder EngagementEngage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation’s resilient grid. CHP TAPs provide fact-based, non-biased education to advance sound CHP programs and policies.
• Technical ServicesAs leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation.
www.energy.gov/chp
DOE CHP Deployment Program Contactswww.energy.gov/CHPTAP
Tarla T. Toomer, Ph.D.CHP Deployment ManagerOffice of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]
Patti GarlandDOE CHP TAP Coordinator [contractor]Office of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]
DOE CHP Technical Assistance Partnerships (CHP TAPs)
Two-thirds of the fuel used to generate power in the US is lost as heat
Conversion Losses66.6%
Energy Utilization in the Utility Sector
Source: https://flowcharts.llnl.gov/content/assets/images/charts/Energy/Energy_2015_United-States.png
CHP: A Key Part of Our Energy Future 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:
o Space Heating / Cooling
o Process Heating / Cooling
o Dehumidification
CHP provides efficient, clean, reliable, affordable energy –
today and for the future.
Source: www.energy.gov/chp
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 Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs
Defining Combined Heat & Power (CHP)
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Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)
CHP Energy Efficiency (combined heat and power)70% to 85%
Separate Energy Delivery:• Electric generation – 33%• Thermal generation - 80%• Combined efficiency – 45% to 55%
Defining Combined Heat & Power (CHP)
9
Fuel first applied to produce useful thermal energy for the process
Waste heat is utilized to produce electricity and possibly additional thermal energy for the process
Simultaneous generation of heat and electricity
No additional fossil fuel combustion (no incremental emissions)
Normally produces larger amounts electric generation (often exports electricity to the grid; base load electric power)
Waste Heat to Power CHP(also referred to as Bottoming Cycle CHP or Indirect Fired CHP)
HRSG/Steam TurbineOrganic Rankine CycleBackpressure Turbine
Waste heat from the industrial process
Fuel
Electricity
Heat
Steam Turbine
Heat recovery steam boiler
Energy Intensive Industrial Process
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Industrial Institutional
Residential Utility Scale
CHP in the U.S. Represents a Variety of Fuels, Technologies, Sizes, and Applications
Commercial
Which CHP Technology Fits My Energy Loads?
What Are the Benefits of CHP?• CHP is more efficient than separate generation of
electricity and heating/cooling
• Higher efficiency translates to lower operating costs (but requires capital investment)
• Higher efficiency reduces emissions of pollutants
• CHP can also increase energy reliability and enhance power quality
• On-site electric generation can reduce grid congestion and avoid distribution costs.
CHP Increases Resilience• For end users:
– Provides continuous supply of electricity and thermal energy for critical loads
– Can be configured to automatically switch to “island mode” during a utility outage, and to “black start” without grid power
– Ability to withstand long, multiday outages
• For utilities:– Enhances grid stability and relieves grid congestion – Enables microgrid deployment for balancing renewable power
and providing a diverse generation mix
• For communities:– Keeps critical facilities like hospitals and emergency services
operating and responsive to community needs
6
CHP and Microgrids
• With a CHP system providing reliable baseload electric and thermal energy, microgrids can add renewables and storage
• Increased focus on resilience for critical infrastructure– Universities, Hospitals,
Military bases, Communities
14
A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid.
A microgrid can connect and disconnect from the larger utility grid to enable it to operate in both grid-connected or island-mode.
Source: U.S. Department of Energy Microgrid Exchange Group
New Markets for Packaged CHP
• CHP technology advancements allow for standardized packaged CHP systems– Most systems range from 10 kW to 2 MW
• Packaged systems expected to expand the CHP market to new customers– Avoid costs and delays associated with
customized engineering and design
– 26 GW of CHP technical potential in the 50-499 kW size range
• Packaged systems are increasingly including solar PV in addition to CHP equipment
• DOE Packaged CHP eCatalog seeks to increase package options up to 10 MW
15
Emerging National Drivers for CHP
Benefits of CHP recognized by policymakerso State Portfolio Standards (RPS, EEPS), Tax Incentives,
Grants, standby rates, etc.
Favorable outlook for natural gas supply and price in North America
Opportunities created by environmental drivers
Utilities finding economic value Energy resiliency and critical
infrastructure Interest in Packaged CHP Systems
DOE / EPA CHP Report (8/2012)
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf
CHP Today in the United States
• 82.6 GW of installed CHP at nearly 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
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CHP Today in Ohio
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• 527 MW of installed CHP at over 59 industrial and commercial facilities
• Primary Metals comprises 226 MW of CHP capacity
Ohio Industrial CHP Technical Potential(3,981 MW @ 2,864 sites)
19Source: www.energy.gov/chp-potential
0
50
100
150
200
250
300
350
400
Num
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f Pot
entia
l CHP
Site
s
> 20 MW
5 - 20 MW
1 - 5 MW
0.5 - 1 MW
50-500 kW
Ohio Commercial CHP Technical Potential(2,717 MW @ 10,288 sites)
20Source: www.energy.gov/chp-potential
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Project Snapshot:Energy Savings
Medina High SchoolMedina, OH
Application/Industry: High SchoolCapacity (MW): 125 kWPrime Mover: Reciprocating EngineFuel Type: Natural GasThermal Use: Heating, Hot WaterInstallation Year: 2014Energy Savings: $82,944/year
Testimonial: The engine at Medina High School will be able to run 48,000 hours before needing replacement and has an eight year payback. It will offset the 1 million kilowatts of electricity the school purchased each year.
Source: http://www.cleveland.com/medina/index.ssf/2014/02/medina_city_school_district_tu.html
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Project Snapshot:Opportunity Fuels
Lima Wastewater Treatment PlantLima, OH
Application/Industry: Wastewater TreatmentCapacity (MW): 130 kWPrime Mover: MicroturbinesFuel Type: BiomassThermal Use: Heat for the Digestion ProcessInstallation Year: 2012
Testimonial: The CHP project was determined to provide:• Best avenue for reductions of
V.O.C.’s• Best return of electrical energy• Best capture of the heat for use in
the WWTPSource: http://www.puco.ohio.gov/puco/index.cfm/industry-information/industry-topics/combined-heat-and-power-in-ohio/chp-case-studies-voices-of-experience-workshop-june-20-2012/#sthash.MRLZAQNR.dpbshttp://gemenergycapstone.com/wp-content/uploads/chp-ohio-casestudies-120913.pdf
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Project Snapshot:3rd Party Build, Own, and Operate
Solvay Specialty Polymers / DTE Marietta Marietta, Ohio
Application/Industry: ChemicalsCapacity: 8 MWPrime Mover: Combustion turbineFuel Type: Natural gasThermal Use: Process heatingInstallation Year: 2015
Testimonial: “Solvay Specialty Polymers and DTE Energy Services worked together closely to develop a customized energy supply facility to meet our plant’s specific needs. The DTE Marietta cogeneration project has provided a reliable, efficient, economic energy supply solution to the Solvay complex to ensure that our plant can meet its production goals.”
- Al Wanosky, Solvay Site Utilities Manager
Source: http://www.midwestchptap.org/profiles/ProjectProfiles/Project_Profile_Solvay_Specialty_Plastics.pdf Slide prepared 6/201723
Project Snapshot:Replacing 50 Year Old Boilers
Kraton PolymersBelpre, OH
Application/Industry: Chemical ManufacturingCapacity (MW): 8 MWPrime Mover: Steam TurbinesFuel Type: Natural GasThermal Use: Process SteamInstallation Year: 2015
Testimonial: “Combined Heat and Power has exceeded our expectations. We’re saving money, operating cleaner and more efficiently, and positioned to be more competitive going forward.”- Scott Oran, Plant Manager, KratonPolymers
Source: http://alliance4industrialefficiency.org/resources/kraton-case-study/
24
How to Implement a CHP Project with the Help of
the CHP TAP
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CHP TAP Role: Technical Assistance
• 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
27
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 $744,444Total 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
• 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
28
• 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.)
Screening Questions (cont.)
29
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• Planned facility expansion or new
construction; or equipment replacement within the next 3-5 years
30
CHP Project Resources
Good Primer Report DOE CHP Technologies Fact Sheet Series
www.eere.energy.gov/chpwww.energy.gov/chp-technologies
31
CHP Project Resources
DOE Project Profile Database (100+ case studies)
energy.gov/chp-projects
DOE Database of Incentives & Policies (DSIRE)
www.dsireusa.org
32
CHP Project Resources
DOE CHP Installation Database(List of all known
CHP systems in U.S.)
Low-Cost CHP Screening and Other Technical Assistance from
the CHP TAP
energy.gov/chp-installsenergy.gov/chp-contacts
33
o CHP gets the most out of a fuel source, enablingo High overall utilization efficiencies
o Reduced environmental footprint
o Reduced operating costs
o Emerging drivers are creating new opportunities to evaluate CHP today
o Proven technologies are commercially available and cover a full range of sizes and applications
Summary
34
o Contact Midwest CHP TAP for assistance if:o Interested in having a Qualification Screening
performed to determine if there is an opportunity for CHP at your site
o If you already have an existing CHP plant and interested in expanding it
o Need an unbiased 3rd Party Review of a proposal
Next Steps
35
Thank You
http://www.mwchptap.org/36
Cliff Haefke Graeme MillerDirector Assistant Director(312) 355-3476 (312) [email protected] [email protected]
