GPAEE November 20, 2014

Combined Heat and Power Overview& CHP Technical Assistance

Bill ValentineDOE Mid Atlantic CHP Technical Assistance Partnership

wjv3@psu.edu

Key services of the CHP Technical Assistance Partnerships include:

Market Opportunity Analyses – 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, energy 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 with CHP in their facility and to help them through the project development process from initial CHP screening to

CHP Technical Assistance PartnershipsPromote and assist in transforming the market for CHP, waste heat to power, and CHP district energy technologies and concepts throughout the United States.

CHP Technical Assistance Partnerships

What is Combined Heat & Power?

• 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– Refrigeration/Dehumidification

CHP provides cost-effective, clean and reliable energy – today and for the future.

Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_basics.html

Slide 4

CHP Diagram

Over Two Thirds of the Fuel Used to Generate Power in the United States Is Lost as Heat

CHP Drivers• Benefits of CHP recognized by

policymakers

– President Obama signed an Executive Order to accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade

• Favorable outlook for natural gas supply and price in North America

• Opportunities created by environmental drivers

• Energy resiliency and critical infrastructure DOE / EPA CHP Report (8/2012)

4/1/14 Slide 7

CHP Drivers• Cost Savings

– Offset Utility/3rd Party kWh’s + Therms– Reduce Utility Demand Charges - Demand Response– Improved Power Reliability/Quality

• Emissions Reductions– In the same way that it saves fuel cost, CHP reduces

pollution by using the fuel’s energy twice, yielding half to a third of the emissions from separate fossil fuelled grid power and boilers.

– Supported by US DOE & US EPA

4/1/14 Slide 8

CHP Drivers• Reliability / Resiliency

– Provides local grid support and improves power quality– Can often be configured to provide emergency power back-up– Natural Gas grid can be more reliable for long term outages

• National Security– Reduced fossil fuel usage extends US resources and reduces

dependence on foreign energy imports– Multiple points of power generation are less subject to

catastrophic failure or attack

4/1/14 Slide 9

• Benefits of CHP for U.S. businesses– Reduces energy costs for the user – Reduces risk of electric grid disruptions and enhances energy reliability – Provides stability in the face of uncertain electricity prices

• Benefits of CHP for the Nation – Improves U.S. manufacturing competitiveness – Offers a low-cost approach to new electricity generation capacity – Provides an immediate path to lower GHG emissions through increased energy efficiency – Lessens the need for new transmission and distribution (T&D) infrastructure and

enhances power grid security – Uses abundant clean domestic energy sources – Uses highly skilled American labor and American technology

Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

Combined Heat and Power Benefits

CHP Case Studies

ED•Co-Generation Capacity: (1) 4.5 mW Combustion Turbine

•Steam heat recovered for all hospital heating needs

•Produces 60% electrical demand

•Option for future Steam Turbine Chiller (not installed yet)

•Premium cost for facility to house CHP

Abington Health

EDUtility Operating Cost Prior to Co-Generation: $7 million/yr

Net Annual Savings*: $2.25 million/yr Investment Cost: $9.2 million

Simple Payback: 4.1 Years

Financial Incentive(PA Award) $3 million (ACT 129) $3.2 million

Abington Health – 4.5 MW CT

*Includes Maintenance Cost

• Five 200kW Capstone micro-turbines packaged in a single container.

• 300 ton exhaust fired absorption chiller. • 5,000 BTU heat exchanger. • Facility heating and/or cooling. • Expected annual savings of $300,000. • Redundant source of electricity.

Phoenix ContactMiddletown , PA

Princeton University

• The 15 MW CHP plant provides steam and chilled water throughput the campus and is integrated with the wholesale and transmission markets.

• Provides 100% of heat and hot water requirements and 50% of electrical energy.

• Through the efficiency of CHP, Princeton has dramatically reduced its fuel use, avoiding over 27,900 metric tons of carbon emissions and making it one of the leading campus energy plants in the country in both efficiency and environmental sustainability.

4/1/14 Slide 15

Independence Visitor’s Center

6/4/14 Slide 16

• 50,000 sq. ft. facility• 75 kW reciprocating engine• 20 ton Absorption Chiller• Natural gas• Roof mounted unit• Building LEED certified

The Brevoort: Manhattan, NY• Residential high rise with natural gas-powered CHP system

Four 100 kW CHP units powered all 290 apartments through Sandy

• Normal occupancy is 720 people. During Sandy, the Brevoort was able to house and provide power to 1,500 people through the storm.

• “Powered by our CHP system, we were the only building on lower Fifth Avenue able to provide energy and full service to our residents.” - Diane Nardone, President of the Brevoort coop board

• The Brevoort was able to maintain power for central boilers, domestic water pumps, all elevators and all apartments

PGW Headquarters

200 kW Microturbine

40 ton Absorption chiller

Four Seasons Hotel

3 – 65 kW Microturbines

Domestic hot water

PCOM

130 kW Microturbine

Additional Local CHP Installations