Advanced Microturbine Systems€¦ · his document presents the multi-year plan of the Department...

ADVANCEDMICROTURBINE

SYSTEMS

PROGRAM PLAN FOR FISCAL YEARS

2000 THROUGH 2006

ADVANCEDMICROTURBINE

SYSTEMS

PROGRAM PLAN FOR FISCAL YEARS

2000 THROUGH 2006

MARCH 2000

U.S. DEPARTMENT OF ENERGY

OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

OFFICE OF POWER TECHNOLOGIES

vU.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................... ii

1. INTRODUCTION .....................................................................................1

2. SITUATION ANALYSIS AND MARKET ASSESSMENT ................................................3

3. OVERVIEW OF MICROTURBINE SYSTEMS .........................................................8

4. PROGRAM MISSION, GOALS, AND STRATEGY ................................................ 11

5. RD&D NEEDS .................................................................................. 13

6. RD&D PLAN — FISCAL YEARS 2000 THROUGH 2006 .............................. 18

7. PROGRAM MANAGEMENT PLAN ............................................................... 22

iiU.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

EXECUTIVE SUMMARY

are emerging as a leading candidate for meeting

these needs for electricity and thermal energy.

The mission of this program is to lead a national

effort to design, develop, test, and demonstrate a

new generation of microturbine systems that will

be cleaner, more fuel efficient, more fuel-flexible,

more reliable and durable, and lower cost than the

first generation products that are just entering the

market today. This mission is consistent with the

goals set forth in the Department’s Comprehensive

National Energy Strategy to improve the efficiency

of the energy system, ensure against energy supply

disruptions, expand future energy choices, and

promote energy production and use in ways that

respect health and environmental values.

This plan covers fiscal years 2000 through 2006.

The projected funding requirement for the program

is $63 million in appropriations from the U.S.

Congress and at least $63 million of additional

funding is expected in cost sharing.

The program’s planned activities are aimed at

achieving the following performance targets for the

next generation of advanced microturbine sys-

tems:

• High Efficiency - Fuel-to-electricity conversion

efficiency of at least 40 percent.

• Environmental Superiority - NOx emissions

lower than 7 parts per million for natural gas

machines in practical operating ranges.

• Durable - Designed for 11,000 hours of opera-

tion between major overhauls and a service life

of at least 45,000 hours.

T his multi-year program plan outlines

proposed activities of the Department of

Energy, Office of Energy Efficiency and Renew-

able Energy to develop advanced microturbine

systems for distributed energy resource applica-

tions. These systems range in size from 25 kilo-

watts to 1,000 kilowatts.

Since 1994 hundreds of industry executives from

various industries have met in dozens of vision and

roadmap workshops to discuss the elements critical

to success in the global marketplace over the next

twenty years. Cleaner and more efficient, afford-

able, and reliable heat and power systems is one of

the most prominent re-occurring needs raised

during these sessions.

The rapidly changing marketplace for utility energy

services is opening new opportunities for the

nation’s heat and power users to reduce energy

costs, increase power quality and reliability, and

reduce environmental emissions. In addition, over

the next twenty years, a significant portion of the

nation’s aging stock of boiler and power generation

equipment will reach its useful life and need to be

replaced.

One opportunity is investment in smaller-scale

distributed energy resources that can be integrated

into overall manufacturing plant or building opera-

tions. These technologies can be controlled locally

to optimize performance and satisfy needs for both

electricity and thermal energy. Energy managers

and building operators want to have heat and

power services for less cost, less emissions, better

reliability, and greater control than what they can

get from the utility grid. Because of their compact

size, modularity, and potential for relatively low

cost, efficient, and clean operations, microturbines

iiiU.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

• Economical - System costs lower than $500 per

kilowatt, costs of electricity that are competitive

with alternatives (including grid-connected

power) for market applications, and the option of

using multiple fuels including natural gas, diesel,

ethanol, landfill gas, and other biomass-derived

liquids and gases.

There is a tremendous amount of uncertainty about

the market potential of microturbines. Markets

could evolve in ways to make the impact signifi-

cant. Microturbines could be the kind of “disrup-

tive” technology that causes users to abandon

business-as-usual practice.

There is considerable interest in using

microturbines for stationary power applications in

the industrial, commercial, institutional, and residen-

tial sectors of the economy. Based on current

practices, the most attractive industrial opportuni-

ties lie in the chemicals, wood and agricultural

products, petroleum extraction and production,

mining, and textiles industries. Potential commer-

cial sector markets for microturbines include office

buildings, restaurants and food services, and retail

services. Institutional markets include hospital

complexes, schools and university campuses,

government buildings and facilities, and office/

industrial power parks. Residential markets include

multi-family dwellings and community-based

systems.

The majority of the potential market involves

applications that have needs for thermal and

mechanical energy as well as electricity. This

means that the largest opportunity for

microturbines could be as the “prime mover” in

cooling, heating, and power (CHP) systems and as

a clean power source for distributed generation

applications.

Realizing the full market potential for microturbines

will help keep U.S. manufacturers on the “cutting

edge” of turbine technology for power generation

and enhance the industrial competitiveness of the

U.S. manufacturing base in international markets.

This could be lead to the creation of high-paying

jobs for American workers. Realizing this potential

could also produce substantial public benefits in

terms of lower energy consumption, lower indus-

trial energy costs, and lower emissions.

The program’s RD&D activities have been

organized in four main program areas: 1) Concept

development, 2) Components, subsystems, and

integration, 3) Demonstrations and 4) Technology

base (which includes materials development,

combustions systems, and sensors and controls).

This program’s activities in these areas will be

implemented over a seven year period. The

primary implementation mechanism will be com-

petitive solicitations.

Figure 1 depicts the expected portfolio mix and

shows how the emphasis could change during the

implementation of the program. Potential RD&D

performers will be able to participate at any point

in the program. Concept development will be

emphasized during the first several years of the

program. The development and testing of compo-

nents, subsystems and integrated systems will be a

major emphasis during the middle years of the

program, but efforts will be supported in this area

from the outset, depending on proposals received

from potential bidders. Pre-commercial

demonstration(s) of advanced systems will be

emphasized during the last several years of the

program but support will be provided for demon-

strations of existing microturbine systems and

subsystems from the outset. Potential RD&D

ivU.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

Figure 1. Program diagram

performers will be able to opt in and out of these

various activities during the course of the program

depending on their capabilities, corporate interests,

and the progress of the RD&D.

This program will be managed by the Office of

Power Technologies with assistance from the

Department’s Chicago Operations Office. Imple-

mentation will be accomplished by a competitive

solicitation process that will result in projects by

equipment manufacturers, universities, and national

laboratories. Coordination will involve the Offices

of Industrial Technologies; Buildings Technologies,

State and Community Programs; and Fossil

Energy; and equipment manufacturers, electric and

gas utilities, energy services providers, project

developers, and other federal and state agencies.

Joint planning activities are currently underway

with the California Energy Commission, the New

York State Energy Research and Development

Administration, and the Association of State

Energy Research and Technology Transfer

Institutions in accordance with memoranda of

understanding that the Department has signed

with these organizations.

1U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

his document presents the multi-year planof the Department of Energy’s Advanced

Microturbine Systems Program. The plan outlinesthe mission, goals, performance targets, andproposed research, development, and demonstra-tion (RD&D) activities of the program over thenext seven fiscal years (2000 through 2006).

This program will be managed by the Office ofPower Technologies in the Office of EnergyEfficiency and Renewable Energy. The program’sstrategy is to conduct research, development, anddemonstration (RD&D) projects in collaborationwith industry, universities, and the national labora-tories to accomplish a discrete mission in a fixedperiod of time.

This program will culminate in an 8,000 hour fieldtest demonstration of the next generation ofmicroturbine system(s). It is expected that thisdesign will be ready for commercialization bymanufacturers and installation by industrial powerusers early in the next century. Reliability, availabil-ity, maintainability, durability (RAMD) testing willprobably involve field demonstrations exceeding8,000 hours of operation. Government involvementin such efforts will be considered at that point inthe program. This program strategy is similar tothe one used successfully by the AdvancedTurbine Systems Program in developing a newgeneration of industrial turbines. However, asshown in Figure 1, this plan calls for the mix ofactivities to evolve over the course of the program.

U.S. industries such as petroleum refining, chemi-cals, pulp and paper, steel, aluminum, and lightmanufacturing are among the biggest electricityusers in the economy and currently rely heavily onutility generation, self generation, and combinedheat and power systems to meet their electricpower needs. With the restructuring of electricpower markets, these industries are finding a widearray of new electric power opportunities including

distributed generation, innovative pricing and riskmanagement strategies, and energy managementservices. Industrial interest in distributed generationtechnologies such as microturbines and reciprocat-ing engines is rising because these systems can cutpower costs and boost reliability while loweringoverall emissions.

Microturbines can also be used in commercial,institutional, and residential buildings. Promisingcommercial building markets include offices,restaurants and food services, and retail services.Institutional markets include hospital complexes,schools and university campuses, industrial/officepower parks, and government buildings andfacilities. Residential markets include multi-familydwelling and community energy projects. It willtake some time for customers, manufacturers, andenergy services providers to identify and exploit allof the promising applications markets formicroturbines.

As defined for this program, the microturbinesystem comprises the flange-to-flange microturbinecore, rated at up to 1000 kW at ISO conditions.The system definition includes all secondarycomponents such as the fuel compressor,recuperator/regenerator, generator or alternator,CHP equipment, sound attenuation, and powerconditioning equipment. Although further develop-ment of power conditioning equipment could resultin easier interconnection by microturbine systemswith the grid, the system definition of secondarycomponents does not include equipment solely forthat purpose.

Microturbines offer a number of potential advan-tages compared to other technologies for small-scale power generation; for example, a smallnumber of moving parts, compact size and lightweight, multi-fuel capabilities, and opportunities forgreater energy efficiency, lower emissions, andlower electricity costs. Realizing these advantages

T

1. INTRODUCTION


would mean substantial public benefits in terms ofcleaner, more affordable, and more reliable poweroptions for the nation’s electricity users.

The size range of commercial microturbines variesand depends primarily on economics and customerpower needs; but technical constraints and permit-ting/policy considerations are also factors. Inrecognition of the diversity of potential applications,and the need for flexibility in designing the nextgeneration of microturbine systems, this plan doesnot contain an exact specification for the size ofthe next generation of microturbine systems. Thatdecision will be made by the system designers andmanufacturers based on market needs and oppor-tunities. Existing microturbine systems range in sizefrom 25 to 75 kW; future products up to 1000 kWare planned. It is expected that the advancedmicroturbine prototype developed under thisprogram will be in the 25 to 1000 kW range.Support for larger advanced microturbine systemscould be provided if those designs represent evolu-tionary changes in microturbine development.

The specifics outlined in this plan are the result ofnumerous consultations with industry experts andmarket studies that have explored the future ofdistributed energy resource technologies and thepotential role of microturbines in industrial, com-mercial, institutional, and residential power applica-tions.

For example, the Microturbine Technology Summitwas held in December 1998 as part of the consulta-tion process to discuss the future outlook formicroturbines including public policies, marketbarriers and opportunities, and technology chal-lenges.1 More than 60 stakeholders with expertise inmicroturbines, utility systems, industrial power andmarkets, and government regulations attended theSummit.

Among the issues raised at the Summit was theneed for the Department of Energy to establishRD&D partnerships with industry to develop thenext generation of microturbine systems. Thestimulus created by government involvement wasdeemed a necessary ingredient for overcoming theengineering, technical, and institutional barriersfacing the development and deployment of the nextgeneration of microturbine systems.

In the absence of a focused and appropriategovernment role, the Summit participants generallyagreed that industry would not be able to developthe next generation system on their own and asubstantial opportunity for cleaner, more reliable,and more affordable power options for the indus-trial, commercial, institutional, and residentialsectors might be lost.

Market studies have been conducted by Arthur D.Little, Incorporated 2 and Resource DynamicsCorporation3 to estimate the potential formicroturbines and other small-scale power systemssuch as fuel cells and reciprocating engines tomeet power needs in the future industrial market.Based on current industry practice, both of thesestudies identified potential markets formicroturbines in the manufacturing sector servingneeds for continuous power generation, peakshaving, back-up generation, remote power,premium power, and combined heat and power.The studies found that certain scientific, engineer-ing, and institutional barriers would need to beaddressed and cost, efficiency, and emissionsperformance targets achieved for the marketpotential of microturbine systems to be fullyrealized. Many of the same applications andbarriers that the studies found for the manufactur-ing sector also apply to the commercial, institu-tional, and residential sectors.

1 Summary of the Microturbine Technology Summit prepared by Energetics, Incorporated for Oak Ridge National Laboratory, March1999 DOE/ORO 2081.

2 Opportunities for Micro power and Fuel Cell/Gas Turbine Hybrid Systems in Industrial Applications prepared by Arthur D. Little forOak Ridge National Laboratory, April 1999.

3 Industrial Applications for Micropower: A Market Assessment prepared by Resource Dynamics Corporationfor Oak Ridge National Laboratory, April 1999.


.S. consumers used approximately 3,240billion kWh of electricity in 1998 at a cost

of $218 billion. Industrial electricity consumersused 32 percent of the total, commercial consum-ers used 30 percent, and residential consumersused 35 percent.4 Electricity sales are expected togrow by 1.4 percent annually over the next twentyyears. To meet this growing demand, electricgenerating capability in the U.S. is expected togrow from approximately 740 gigawatts in 1998 toapproximately 957 gigawatts in 20205, representingan annual increase of 1.2 percent.

Growth in the use of electricity outside of the U.S.is expected to be even greater. Annual electricityuse is expected to grow 2.5 percent worldwide by2020, including both industrialized and developingcountries. For developing countries only, electricityuse is expected to grow 4.4 percent annually by2020.6

The role of non-utility generation in U.S. markets ischanging. In 1998, over 23 gigawatts of electriccapacity were sold by utility companies to non-utility buyers. As a result, the number of states thathave a non-utility share of electric generationgreater than 25 percent doubled from two in 1998to four in 1999.7

Distributed Energy Resources

The concept of distributed energy resources refersto local energy systems that generate electric,thermal, or mechanical energy on sites near thecustomer’s premise. Also included are energyefficiency measures that can be installed oncustomer buildings and equipment that affect the

need for electricity and thermal energy. Manydistributed energy resource systems are locatedon-site, others are connected to customers throughthe utility’s transmission and distribution grid.Various technologies are used in distributed energyresource applications including combustion tur-bines, reciprocating engines, solar power systems,wind turbines, energy storage systems, and fuelcells.

One of the factors in the growing interest to usedistributed energy resources is concern about thereliability of the existing electric power system, theneed to minimize production losses from poweroutages, the importance of protecting sensitiveelectronic equipment from power quality disrup-tions. Industrial processes, manufacturing produc-tion systems, and commercial business operationsrely on computers, information systems, andtelecommunications equipment to a greater extentthan ever before. Power interruptions and spikesor sags in voltage or frequency can cost companiesmillions in lost production and damaged equipment.Many of the companies that have concerns aboutthe reliability of the electric grid under competitivemarket conditions or who cannot withstand thecosts of weather-related disturbances viewdistributed energy resources as an importantsupplement or alternative to grid-connected power.

Private investment in the development and deploy-ment of the various distributed energy resourcetechnologies is increasing. This includes investmentin advanced technologies for combustion turbines,reciprocating engines, fuel cells, energy storagedevices, and solar and renewable power. If these

2. SITUATION ANALYSIS AND MARKET ASSESSMENT

U

4 Electric Power Annual 1998 Volume II U.S Department of Energy, Energy Information Admninistration December 1999 DOE/EIA-0348(98)/2

5 Annual Energy Outlook 2000 With Projections to 2020 U.S. Department of Energy, Energy Information Administration December1999 DOE/EIA-0383(2000)

6 International Energy Outlook 1999 With Projections to 2020 U.S. Department of Energy, Energy Information AdministrationMarch 1999 DOE/EIA-0484(99)

7 Electric Power Annual 1998 Volume I U.S. Department of Energy, Energy Information Administration April 1999 DOE/EIA-0348(98)/1


systems are adopted in large numbers, the resulting“distributed energy system,” could stimulate newinterconnection requirements for the electric powergrid and natural gas pipelines. Utilities have beenvoicing concerns about the safe and effectiveinterconnection of distributed energy technologiesand the possibility of negative impacts on electricgrid operations. There is a great deal of interest indeveloping standardized interconnection protocolsthat balance utility concerns for safe grid opera-tions with the concerns of distributed energyresource developers for quick and low costinterconnection procedures.

For microturbines and other distributed energyresources to be competitive in power markets,electricity costs from these systems will have to bemore attractive than they are today. Without costreductions, most electricity users will prefer grid-connected power and energy-efficient distributedenergy resources will be confined to a relativelysmall market niche.

To achieve these cost reductions, the installedcosts of distributed energy resources will have tobe lower to reduce the up-front investment forelectricity users. In addition, operation and mainte-nance requirements will have to be lower andservice lives longer to reduce the “hassle factor”associated with on-site power systems, the costs ofservice contracts, the need for major equipmentoverhauls, and the costs of other day-to-dayexpenses. Finally, the efficiency and environmentalperformance of the systems will have to be betterto reduce the costs of fuel and compliance withenvironmental regulations.

Utility Restructuring

The continued restructuring of the electric andnatural gas utility industries in the U.S. is expectedto increase the role of non-utility generation in thenation’s power mix even more. Since 1996, 22states have enacted major electricity restructuringlegislation, while two others have issued compre-hensive regulatory orders. These actions have also

led to growth in the competitive energy servicesindustry. There is now a greater array of choicesfor electricity consumers than ever before.

Electricity and natural gas users in the states thatare active in the restructuring process are fre-quently able to get electricity providers to tailorservice offerings to suit their individual needs. Inparticular, the larger industrial and commercialusers, including municipalities, school, and irrigationdistricts, are increasingly being offered flexiblecontractual terms and conditions, innovative pricingoptions, financial risk management strategies,energy efficiency audits and services, and distrib-uted energy resource options.

Environmental Policies

Implementation and enforcement of existingenvironmental laws and regulations affect today’stechnology choices for power generation. Asexisting power plants get replaced, the new oneswill necessarily incorporate new designs andadvanced systems to achieve greater efficiencyand lower emissions. Power plant emissions arecurrently subject to regulatory controls for sulfurdioxide, oxides of nitrogen, particulates, volatileorganic compounds, carbon monoxide, and airtoxics. In addition, global concerns about climatechange have led to interest in tracking carbonemissions from power production. In the future,carbon dioxide and other “greenhouse” gases couldbe added to the list of power plant emissionssubject to regulatory controls.

The designs for advanced microturbines and otherdistributed energy resource options must includefeatures to ensure that they comply with allforeseeable environmental siting and permittingregulations. The trend is clearly toward increas-ingly stringent environmental requirements. If thenext generation of microturbine systems havelower emissions and higher efficiencies comparedto today’s models, then commercialization of theseadvanced products could yield substantial publicbenefits. Use of clean and renewable fuels, highly


efficient combustion equipment and turbines,advanced materials, and advanced recuperatorsare among the options that can be used to controlenvironmental emissions from microturbine sys-tems. Use of microturbines in combined heat andpower systems can double or triple overall thermalefficiency compared to electricity-only units, thusproviding even greater opportunities for emissionsreductions.

One of the promising applications for microturbinesinvolve their use in buildings for cooling, heating,electricity, humidity control, and indoor air quality.In these cases, building codes and fire and safetycodes will need to be considered along withenvironmental siting and permitting requirements.

Market Applications

Microturbines can be used in a variety of electric-ity and thermal energy applications due to theirsmall size, low unit costs, and useful thermaloutput. The market assessments recently com-pleted by Arthur D. Little, Inc. and ResourceDynamics Corporation identified eight potentialtypes of applications for microturbines: 1) continu-ous generation, 2) peak shaving, 3) back-up power,4) premium power, 5) remote power, 6) cooling,heating and power, 7) mechanical drive and 8)wastes and biofuels.

The use of microturbines for continuous genera-tion will typically involve applications requiringover 6,000 hours of operation per year. To succeedin this market application, microturbines will haveto be able to generate electricity at costs competi-tive with grid-connected power. In certain circum-stances, users that have deep concerns about thereliability of the grid or about power quality may bewilling to pay more for on-site power generationthan for grid-connected electricity.

Peak shaving8 applications for microturbineswould typically require much less than 1,000 hoursof operation per year. For peak shaving, users

would run on-site generation to avoid paying highon-peak prices or utility demand charges. In someareas, avoidance of these costs can justify invest-ment in on-site power facilities that operate onlyseveral hundred hours per year. The shift towardcompetitive electricity markets has also meant ashift toward real-time pricing of electricity. Duringpeak periods, it is not unusual for the cost of powerto be 3-5 times higher than it is during off-peakperiods. During system emergencies, on-peakpower costs can be 10 times greater or more thanoff-peak power costs. Short term price spikes 20-100 times higher occurred in wholesale spotmarkets in the Midwest during the summer of1998.

Back-up power users require 100% reliableelectricity. Some users, like hospitals and airports,are required by regulations to install and maintainback-up power units. Back-up power systems mayrun less than 100 hours per year but they must beready to come on line at a moments’ notice in theevent of a power outage. Diesel generatorscurrently have a large fraction of the back-uppower market. The use of microturbines in thismarket will be driven by a variety of factors,particularly their costs relative to diesel generatorsets, but also their ability to start-up rapidly andreliably. Relatively low expected O&M costs couldbe an advantage for microturbines in back-uppower applications.

Markets for premium power exist where theindustrial process requires power with a higherquality than provided from the grid. This couldinclude AC power with a well-defined wave form,frequency, and/or power factor. Power qualityconcerns are found in industries that use sensitiveelectronic equipment that requires tightly con-trolled, sinusoidal AC wave forms, or machinerythat operates on well-defined DC power. The useof microturbines for premium power could defraypower conditioning costs to the user, allow formore precise and flexible manufacturing processes,

8 Although efficient, clean, durable gas turbines are not necessarily required for intermittent modes such as peak shaving and backup,the incremental cost of installing advanced microturbines for these purposes would extend the parameters for economical operation,thus improving the benefits.


and reduce losses in production from outages andother types of power quality disruptions.

Remote power applications are for off-gridlocations such as oil and gas production and certainmining operations. Locations that lack grid accessoften lack access to natural gas distributionsystems as well. The ability to use portable fuelssuch as diesel or propane is a distinct advantagefor remote power equipment. System reliability isa top priority.

Markets for cooling, heating, and power systemsinclude those manufacturing processes and buildingapplications that have needs for thermal energy aswell as electric power. There is potential forexpanded use of industrial combined heat andpower systems. The possibilities expand wheneconomical off-site uses for the thermal energy areidentified, as in district energy systems. The use ofmicroturbines in cooling, heating, and powerapplications could open up new opportunities forsmaller scale systems in manufacturing plants tomeet specific needs for thermal or mechanicalenergy as well as electric power. Buildings cooling,heating, and power systems can provide electricityand thermal energy for cooling and humiditycontrol.

Mechanical drive applications would usemicroturbines to run shaft-driven equipment suchas gas and air compressors, refrigeration units,chillers, desiccant humidity control systems, andpumps. Operation and maintenance costs are acritical driver along with the cost of electricity andthe ease of access to fuels.

The market for wastes and biofuels burningmicroturbines are found in those industries thatproduce solid, liquid, or gaseous fuels as a waste orby-product such as pulp and paper, food process-

ing, and steel making. The amount of powerproduced from these applications is a function ofthe amount of waste material produced and thetechnologies available to convert the waste intousable fuel.

Market Potential

The U.S. Department of Energy’s Energy Infor-mation Administration9 reports that approximately380 gigawatts of new electric capacity will beadded to the nation’s power fleet by 2020, includingretirements of existing facilities. The market sharefor distributed energy resources has been esti-mated to range from 10 to 20 percent of thesecapacity additions, or 38 to 76 gigawatts.10 Because of their compact size, relatively lowcapital costs, and expected low operations andmaintenance costs, microturbines are expected tocapture a significant share of the potential distrib-uted generation market.

While substantial, these estimates are based on theassumption that in the future power users will facelargely similar power choices under generallysimilar market conditions. However, there is awidely held alternative view that holds distributedgeneration as a potentially revolutionary technologywith “disruptive” impacts that “...reshape thefundamental value network of an industry.”11

Examples given of other revolutionary technologiesthat have had disruptive impacts include personalcomputers, the internet, cellular telephones, andmini-mills. Such possibilities for distributed genera-tion make it difficult to assess the market potentialfor microturbines.

The technical potential for microturbines in themanufacturing industries has been estimatedrecently by Onsite Sycom Energy.12 There areapproximately 100,000 industrial sites in the U.S.

9 Annual Energy Outlook 1999 Energy Information Administration, December 1998, DOE/EIA-0383(99).

10 “Small Generators Fuel Big Expectations” by John C. Zinc, Power Engineering, February 1999.

11 Distributed Generation Primer: Building the Factual Foundation — An Arthur D. Little Multi-Client Study Draft October 1, 1999

12 Onsite Sycom Energy Inc Estimates of Technical Potential for Micropower in Manufacturing Industies Technical MemorandumNovember, 1999


with average electrical demand between 100 kWand 3,000 kW. This represents about 70 GW ofelectrical demand today and 91 GW in 2010 thatcould be supplied by microturbines or other powertechnologies. For example, electrical demand in theforest products industries at facilities between 100kW and 3,000 kW is estimated to be about 9 GWin 2010. For chemicals the 2010 estimate is 6.3GW.

Several recent studies have attempted to estimatethe potential industrial power market formicroturbines. However, these studies do not takethe potential for disruptive impacts into account.They also do not address the full market potentialbecause of the difficulty of capturing the industrialmarket for mechanical drives or the extent to

which grid reliability and power quality will be afactor. The studies also do not account for themarket for microturbines in buildings for power,heat, hot water, cooling, and humidity control.Even so, the studies by Arthur D. Little, Incorpo-rated and Resource Dynamics Corporation (seefootnotes 2 and 3 on page 2 in the Introduction)conclude that the market potential for existingmicroturbine products is significant and that thepotential market could increase substantially if thecost, efficiency, durability, reliability, and environ-mental emissions of the existing designs areimproved.


3. OVERVIEW OF MICROTURBINE SYSTEMS

13 The figure is presented for illustrative purposes and is intended to describe common or possible gas turbine systems. It is not intendedto constrain conceptual designs or configurations for advanced microturbine systems.

Figure 2. A schematic of a generic microturbine system.

M icroturbines have primarily evolved fromautomotive and aerospace applications.

Figure 2 is a schematic of a microturbine in ageneric stationary commercial or industrial applica-tion.13 For the urposes of stationary energygeneration combustion turbines such asmicroturbines have advantages over other kinds ofheat engines in terms of atmospheric emissions,fuel flexibility, noise, size, and vibration levels.Combustion turbines have limitations which includerelative efficiency, costs, and rotational speeds. Allof these relate directly to the size of the machine.While this relationship between size and perfor-mance level generally holds for other types of heatengines, the scaling laws tend to be more restric-tive for combustion turbines than for the othertypes of heat engines, such as piston-drivenreciprocating engines, for example.

Within the class of heat engines known as combus-tion turbines, certain design features as well as sizedistinguish the various types. Figure 3 illustrateshow specific design features relate to the size andperformance of turbines. This figure provides abasis for discussing the differences betweenmicroturbines and other types of combustionturbines.

Large Combustion Turbines

For electricity generation, large combustionturbines are generally characterized by the follow-ing major design features:

• Axial flow multi-stage compressors and turbines

• Internally cooled turbine vanes and blades

• Cooled disks and vane support structures


• Low NOx combustion systems based on leanpremix for natural gas or water/steam injectionfor fuels other than natural gas

• Multiple burner combustion systems

• Single shaft layouts

The larger size systems (150-400 megawatts)frequently are designed for use with steam bottom-ing cycles, and newer advanced turbine systemdesigns are adopting closed-loop, steam cooling.With this in mind, pressure ratios are typically 16:1.Design features such as intercooling, stagedcombustion, and methods to reduce parasitic heatlosses may also be incorporated.

Aeroderivative Industrial CombustionTurbines

Aeroderivative combustion turbines are generallycharacterized by the following design features:

• Axial flow multi-stage compressors and turbines

• Higher pressure ratios (over 25:1)

• Higher temperatures (2400º F)

• Internal cooling (as in the large gas turbines)

• Multi shaft arrangements

• Multiple burner combustion systems

• Greater use of advanced alloys,especially single crystal alloys forblade castings

There generally is less use of refine-ments to reduce heat losses, but moreuse of variable compressor geometry toimprove part load performance. Com-pressor intercooling may be used, depend-ing on the design of the core aircraftengine and the way in which it is adaptedfor stationary use.

Heavy Frame IndustrialCombustion Turbines

Industrial combustion turbines aregenerally characterized by the followingdesign features:

• Usually axial flow multi stage compressors, butsometimes radial flow compressors are used insmaller models

• Axial flow turbines

• Single or split shaft arrangements, depending onthe application

• Internal cooling in early stage vane rows, butless use of blade cooling and advanced alloysthan in other types of turbines

• Cooled disks and vane support structures

• Geared output shafts for electric power

In the industrial turbine size range of 2-20 MWthere is a pronounced gradation in the designcharacteristics. In the larger size ranges, industrialturbine designs tend to be similar to those of thelarge combustion turbines, although geared outputshafts are still usual where electric power isproduced. Direct mechanical drive, with a separatepower turbine shaft are also used. Gas compres-sion is one example. In the smaller size ranges,radial flow compressors are sometimes used,pressure ratios tend to decrease as size decreases,blade cooling is seldom used, and single side-mounted combustors are often used (rather thanthe in-line arrangements used in larger turbines).

Figure 3. Gas Turbine Design Features Related toOutput Capacity


Since economies-of-scale do not apply in thesmaller size ranges, design simplification andproduction economics assume greater importance.The materials and mechanical design issues, andthe increased aerodynamic penalties associatedwith smaller size systems, tend to reduce thermo-dynamic efficiency.

Microturbines

Microturbines are the newest type of combustionturbine that are being used for stationary energygeneration applications. There are certain designfeatures that distinguish microturbines from theother types of combustion turbines discussedabove. However, there is not a distinct size limitthat distinguishes microturbines from smaller sizedindustrial turbines. In fact, small industrial turbinedesigns inevitably share some of the microturbinefeatures.As a result, small industrial turbines willbenefit from advances made in the design featuresused in microturbines.

Microturbines are generally characterized by thefollowing design features:

• Radial flow compressors

• Low pressure ratios defined by single-or possiblytwo-stage compression

• Minimal use of vane or rotor cooling

• Recuperation of exhaust heat for air preheating

• Use of materials that are amenable to low costproduction

• Very high rotational speeds on the primary outputshaft (25,000 RPM, or more)

With these design elements the simple cycleefficiency (without the use of a recuperator) wouldbe substantially lower than the efficiency ofcompeting systems such as reciprocating engines,particularly in high load factor applications withbase-load or intermediate-load requirements.However, for applications such as emergencypower, where the duration of operations is rela-

tively low and fuel costs are of secondary concern,where other factors such as ease of installationand maintenance are considered, unrecuperatedmicroturbines may be used.

In many applications the very high rotationalspeeds require gear reduction equipment. In thecase of electricity generation a commonly usedalternative is a direct drive high frequency alterna-tor coupled with a stationary rectifier and mainsfrequency alternator.

Microturbines have been produced in very smallsizes (e.g., a few kilowatts), but commerciallyviable products are in the range of tens to hundredsof kilowatts. This range spans two to three ordersof magnitude, and the efficiencies that can beachieved in practice will vary significantly.

Existing Microturbine Systems

Microturbine systems are just entering the marketand the manufacturers are targeting both traditionaland non-traditional applications in the industrial andbuildings sectors including combined heat andpower, backup power, continuous power genera-tion, and peak shaving to reduce costs during peakdemand periods. So far, four U.S. manufacturershave made commitments to enter the microturbinemarket. Honeywell (AlliedSignal) is offering a 75kW product, Capstone has a 30 kW product, Elliotthas 45 and 80 kW products, and Northern Re-search and Engineering Company will have severalproducts in the 30 to 250 kW size range. Thesemanufacturers are entering into marketing anddistribution alliances with other firms. Othercompanies such as Allison Engine Company,Williams International, and Teledyne ContinentalMotors have expressed interest in developingmicroturbine products. European (Volvo and ABB)and Japanese (Toyota) companies are also devel-oping microturbine products and are expected toenter the U.S. market within the next severalyears.


hrough partnerships with industry,government, and non-government organi-

zations, the Office of Power Technologies devel-ops and delivers advanced technologies andpractices to assist in meeting challenging goals inthe areas of renewable resource development,environmental protection, and global competitive-ness. The mission of the Office is to lead thenational effort to support and develop clean,competitive, reliable power technologies for the21st century. This mission is accomplished by:

• Encouraging electricity suppliers to choose anddeploy renewable energy and energy efficiencytechnologies on an equitable basis with othersupply technologies.

• Addressing the technological and institutionalconstraints that impede the adoption of renew-able energy and energy efficiency technologiesworldwide.

• Working with utility, industry, and other stake-holders to realize the full market potential forrenewable energy and energy efficiency tech-nologies, both in the United States and in othercountries.

The mission, goals, and strategies of the AdvancedMicroturbine Systems Program support these aims.

The mission of the Advanced MicroturbineSystems Program is to lead a national effort todesign, develop, test, and demonstrate a newgeneration of microturbine systems that will becleaner, more fuel efficient, more fuel-flexible,more reliable and durable, and lower cost than theexisting fleet of first generation products that arejust entering the market today.

The overall goals of the program are to improveenergy efficiency, reduce environmental emissions,and increase the competitiveness of U.S. busi-

4. PROGRAM MISSION, GOALS, AND STRATEGY

T nesses through the development and deployment ofadvanced microturbine systems. The program’smission and goals are consistent with theDepartment’s overall goals as set forth in theComprehensive National Energy Strategy toimprove the efficiency of the energy system,ensure against energy disruptions, promote energyproduction and use in ways that respect health andenvironmental values, and expand future energychoices.14

The program’s mission and goals are consistentwith the goals of several recent initiatives of theDepartment of Energy in the areas of energy gridreliability and distributed energy resources. Theprogram can also contribute to the President’sExecutive Orders on increasing the use of energyefficiency and renewable systems in federalfacilities and on increasing the use of bioenergyand biobased products throughout the economy.

The ultimate aim of the program is to produce“ultra-clean, highly efficient” microturbine productdesign(s) by fiscal year 2006 that are ready forcommercialization and achieve the followingperformance targets:

• High Efficiency — Fuel-to-electricity conver-sion efficiency of at least 40 percent.

• Environmental Superiority — NOx emissionslower than 7 parts per million for natural gasmachines in practical operating ranges.

• Durable — Designed for 11,000 hours ofoperation between major overhauls and a servicelife of at least 45,000 hours.

• Economical — System costs lower than $500per kilowatt, costs of electricity that are competi-tive with the alternatives (including grid-con-nected power) for market applications, andcapable of using alternative/optional fuels includ-

14 Comprehensive National Energy Strategy, U.S. Department of Energy, DOE/S-0124, April 1998.


ing natural gas, diesel, ethanol, landfill gas, andother biomass-derived liquids and gases.

There are a number of scientific, engineering, andinstitutional barriers that need to be addressed forthese mission goals and performance targets to beachieved. The strategy is to implement a multi-year RD&D program that is tightly integrated withresearch programs on microturbine systems inindustry, universities, national laboratories, andother federal programs and agencies. The programwill build on recent and existing RD&D effortssponsored by the Office of Energy Efficiency andRenewable Energy and Fossil Energy and others inadvanced materials, combustion systems, turbinesand engine components, power electronics, andsensors and controls.

An important aspect of the proposed RD&Dactivities will be complementary efforts in technol-ogy transfer, technical analysis and coordination,and communications. In part, these efforts will helpto ensure that the RD&D projects stay well-aligned with market needs. Efforts will be under-

taken to monitor and analyze industrial, commer-cial, institutional, and residential needs for all typesof renewable and fossil-fueled distributed energyresources, particularly microturbine systems.Projects to develop information clearinghouses,workshops, program review meetings, and confer-ences will be undertaken to foster better communi-cations among the many stakeholder groups withinterests in distributed generation andmicroturbines, including federal and state govern-ment officials, equipment manufacturers, electricand gas utilities, energy services providers, inde-pendent power producers, and potential users fromthe industrial and buildings sectors.


or microturbines to reach their full marketpotential and compete successfully with

grid-connected power and other distributed energyresource options such as reciprocating engines,fuel cells, wind, and solar power systemsimprovements must be made in the technology.While there is a significant market for the existingtechnology microturbines, improvements in theefficiency, cost, durability, and environmentalperformance can expand the potential market two-to-three fold.15

For example, new system designs are needed aswell as improved performance of subsystems andcomponents to increase the efficiency andreliability of microturbines, and to lower systemcosts. Significant progress can be made throughdevelopment and use of advanced materials toimprove the reliability, durability, and useful life ofvarious subsystems and component parts, and toenable operations at higher temperatures. Longterm improvements can come from materialsresearch and development in ceramics and metalalloys to improve recuperators and other systemparts including hot section components such asrotors and combustor liners.

In addition, promising designs need to be fieldtested for users to gain confidence in theirperformance. Certain problems can only bedetected and resolved though monitoring of fieldinstallations to determine microturbine failure andmaintenance requirements and in answeringquestions about the service life of the equipment.

Microturbine Systems, Subsystems, andComponents

In order to meet the program mission and goals,research must be conducted on the performance ofthe entire microturbine system, including their

integration into market applications and the utilitygrid. The total system must be designed properlyto work together efficiently and reliably.Component integration will be an important taskespecially as individually improved components areintegrated into existing and new product designs.System modeling and simulation will be animportant part of this task. System-level RD&Dwill be important in determining the researchpriorities for specific components through betterunderstanding of trade-offs in cost, efficiency, andenvironmental performance.

Modeling and Simulation

To conduct systems studies and develop promisingdesigns for advanced microturbines, it will benecessary to model and simulate the performanceof various subsystems and components. A particu-larly important challenge is combustion modeling todevelop more detailed understanding of the emis-sions characteristics and controls. Work is neededto identify innovative cycles, to optimize cycles,and to optimize heat recovery. Simulation modelingof aerodynamics and heat transfer in turbine bladesin small machines will aid in the development ofadvanced microturbine designs.

Improved models that can simulate operations ofcomplete microturbine systems under a variety ofenvironmental and operating conditions need to bedeveloped to analyze trade-offs in the integrationof individual subsystems and components. Alsoneeded are simulation models that can analyze thepotential impacts of microturbine systems on thestability and operations of the utility’s power grid.These simulations should cover the full range ofpotential applications for microturbines, includingcontinuous generation, peak shaving, back-uppower, combined heat and power, and remoteoperating modes.

5. RD&D NEEDS

F

15 Opportunities for Micropower and Fuel Cell/gas Turbine Hybrid Systems in Industrial Applications prepared by Arthur D. Little forOak Ridge National Laboratory, April 1999, and Industrial Applications for Micropower: A Market Assessment prepared by ResourceDynamics Corporation for Oak Ridge National Laboratory, April 1999.


Manufacturing Costs

In commercializing advanced microturbine designs,manufacturing scale-up techniques will be signifi-cant in lowering system costs. In fact, existingmicroturbine systems have yet to be mass pro-duced. Studies are needed to identify scale-upissues for the next generation of systems sincethese could include greater use of advanced alloys,coatings, ceramic components and other electronicparts. As ceramic subsystems and componentsare developed and tested, the RD&D effort shouldinclude more detailed research and analysis onmanufacturing scale-up issues and techniques.Concurrent engineering techniques should be usedin the design of ceramic components. The ceramiccomponents design team should consist of bothengine and component designers. The concurrentengineering design team should aim for compo-nents that can be fabricated at high yields toreduce costs and waste of materials.

Recuperators/Regenerators

Conventional recuperators are sheet-metal heatexchangers that recover some of the heat from anexhaust stream and transfer it to the incoming airstream. The preheated incoming air is then used inthe combustion process. If the air is preheated, lessfuel is required to raise its temperature to therequired level at the turbine inlet. The mosteffective conventional metal recuperators canproduce 30-40 percent fuel savings from preheat-ing.

However, conventional stainless steel recuperatorscan be used only with exhaust-gas inlet tempera-tures below 1200° F. At higher temperatures, themetal is susceptible to creep and oxidation, whichcauses fouling and structural deterioration andleaks, rapidly reducing the effectiveness and life.Advanced metal or ceramic recuperators will benecessary as engine operating gas temperaturesincrease to increase efficiency. Furtherrecuperator development is needed to reducecosts, extend service life, and enable reliableoperation at higher temperatures. Work needs to

continue in the development of advanced metalmaterials and designs that have the capability ofoperating at higher temperatures and that haveimproved corrosion resistance. Many of theadvanced metal and ceramic materials remainlargely untested. Cost effective manufacturing withthese materials will play a crucial role in decreas-ing the cost of advanced recuperators. Manufac-turing research is needed to identify cost reductiontechniques such as near net-shape fabrication ofceramic recuperator elements that require minimalmachining and assembly.

Combustion

To meet market and regulatory requirements andachieve the performance targets set forth by thisplan, research on combustion characteristics andemissions is needed. Techniques for pollutionprevention and control of the criteria pollutants andcarbon dioxide should be researched. Trade-offsamong pollution control, energy efficiency, and costmust be understood and optimized. Technologiessuch as catalytic combustion, hot wall liners, drycontrols, lean premix, selective catalytic reduction,and others need to be investigated to determinehow they can be applied to reduce NOx emissionsin microturbines.

Other Fuels

Fuel options other than natural gas include diesel,landfill gas, industrial off-gases, ethanol, and otherbiobased liquids and gases. The development ofbiomass-derived fuels is a top priority of theDepartment’s Biobased Products and BioenergyInitiative and opportunities to use these fuels fordistributed generation need to be explored.

Natural Gas Compression

Natural gas is currently the preferred fuel formicroturbines due to favorable costs and combus-tion and emissions characteristics. Fuel gascompression equipment will be needed in locationswhere the gas pressure is too low for direct firingin microturbines. Needed are lower cost, morereliable, and more durable gas compression


equipment in size and pressure ranges suitable formicroturbines. Gas compression equipment havebeen used in larger power plants, but are notreadily available for smaller, low-cost microturbineswhere capital and O&M costs are critical. Aconcern to be addressed is that when used inindustrial power applications other than continuouspower or combined heat and power operations, thestarting and stopping of multiple, gas-poweredmicroturbines could place strain on the natural gassupply system, potentially leading to local gas mainpressure fluctuations.

Fuel flexibility is a desirable product attribute forindustrial power users and is one of the perfor-mance targets of this program for microturbinesystems. Many potential users of microturbinesvalue the ability to switch fuels to control costs.The capability of a combustor to handle multiplefuels without increasing emissions would greatlyincrease the number of opportunities formicroturbines. For example, the ability to utilizewaste fuels could give microturbines an importantadvantage in expanding its share of the distributedgeneration market.

Power Electronics

Because most microturbines typically generatehigh frequency AC that must be converted to DCand then back to grid compatible AC, the systemsrequire reliable and efficient electronic powerconditioning devices. Improved power conditioningequipment such as thyristors and inverters wouldgreatly benefit the performance and packaging ofmicroturbines. Other distributed generationtechnologies as well as conventional power plantswould benefit from improvements in these powerelectronic devices. While power electronicequipment is commercially available, the costs arehigh due to small production volumes.

Sensors and Controls

Advances in sensing and controls technologyenable the optimization of the system in ways notpreviously imagined. These advances include the

development of sensors permitting in-situ combus-tion and power quality measurement. Advancedcontrols technologies permit rate optimization,economic load allocation, and predictive and data-centric control. Integrated into advanced distrib-uted sensing and control architectures, thesetechnologies allow new trade-offs to be made inthe design that achieve the system requirementscalled for in this plan.

Advanced Materials

New materials will be a key enabling technologyfor advanced microturbine systems, subsystems,and components. Advanced materials will have tobe designed and tested to endure and performproperly in microturbine-specific environments.These environments will reflect the operatingconditions in terms of pressure and temperature.

In fact, a big jump in microturbine efficiency canbe achieved with significant increases in engineoperating temperatures, and the most likely materi-als to accomplish this are ceramics. Currentmicroturbine designs utilize metallic componentswithout air-cooling, and the resulting high metaltemperatures result in shortened lifetimes. There isa lack of proven low-cost ceramic components forturbines and recuperators for achieving such hightemperature operation. In general, research isneeded on cost effective, high temperature materi-als and manufacturing processes for use inmicroturbine systems as well as design and lifeprediction tools for subsystems and components.

Structural ceramics such as silicon carbide orsilicon nitride have long been considered primarycandidates for hot section components in advancedgas turbines. Initial property limitations such aslow strength, low Weibull modulus, and poor creepresistance were successfully addressed in anumber of materials development programs. Inspite of these advancements, recent engine testshave shown that the long-term performance ofceramic components may still be limited by envi-ronmental degradation and foreign object damage.In addition to these technology barriers, several


manufacturing challenges including high componentcosts and unacceptable product yields remain to besolved. These challenges can be addressed by theconcurrent design of the components.

The materials requirement for recuperators used innear-term microturbines may be categorized byrecuperator maximum operating temperatures:1200°F (type 347 stainless steel), 1500°F (Inconel)or >1600°F (ceramics). These limits are imposedby existing materials properties such as strengthand corrosion, oxidation, and creep resistance thataffect recuperator failure. Metallic alloys are nowusable within the two, lower temperature ranges,while ceramics would be needed for the highertemperature environments if required.

Development of advanced materials for energytechnologies is a top priority RD&D area for theDepartment of Energy and other federal agenciesincluding the Department of Defense, the NationalAeronautics and Space Administration, and theNational Institute of Standards and Technologies.As a result, there are opportunities to leverageexisting RD&D investments in advanced materialsand apply them to microturbines through enhance-ment of existing or creation of new industry-government RD&D partnerships.

Technology Evaluations and Demonstrations

Microturbines are relatively new and untested incommercial applications. Users have no indepen-dent, statistically significant data on performance,reliability, and life of microturbines for comparisonwith reciprocating engine characteristics and gridsupplied electricity. In fact, much of the existingfield test information on microturbines is consid-ered proprietary and is not widely shared.

Durability, reliability, and useful service life remainsignificant unknowns for potential users who aretrying to decide among alternatives. Both technicalperformance and O&M costs over the life of themachines must be proven through reliable datacollected from demonstrations and field tests.

Computer simulations, calibrated with field data,can be a valuable tool for supporting field testingand demonstration projects.

Achieving fuel flexible systems will be a majortechnical challenge. Testing will be needed todetermine the optimal combustion conditions fordifferent types of fuels.

The market entry phase for the existing generationof microturbines provides an opportunity to gatherdata and answer a variety of questions aboutoperating performance, cost, and life expectancies.Also, there are concerns to address related tointerconnection with the grid.

In general, demonstrations are an area for exten-sive joint industry-government collaborations, withindustry providing the majority of the resourcesneeded. Government involvement can includefinancial assistance as well as technical assistancein disseminating results to a wide audience ofpotential users.

Reliability and Durability

Although some testing has been done by themanufacturers, from the customer’s standpoint thereliability and durability of microturbines remainsunproven. There is a great need to gather data onmicroturbine systems running in a variety ofenvironments, operating modes, and utility intercon-nections. Extensive RAMD (reliability, availability,maintainability, durability) testing should be con-ducted. Government support for RAMD testingbeyond the 8,000 hour field test will be consideredat that point in the program. Demonstration of thereliability of the hot gas path parts will be espe-cially important. A database of microturbineoperating experience is needed and to be madeavailable to potential users of systems. The datacould also be used to guide RD&D.

Grid Interconnection

Interconnection with the electric grid has posed asignificant barrier to microturbines and other smalldistributed energy resources. There are disagree-


ments between utilities and developers of distrib-uted energy equipment about how to address thisproblem. One issue is that interconnection stan-dards vary from utility to utility. Many projectdevelopers say they face interconnection standardsthat require them to use outdated equipment,undertake costly engineering studies, and gothrough lengthy approval procedures. On the otherhand many utilities worry about maintaining reliablegrid operations for customers located on feederswhere distributed power systems have beeninstalled. The utilities also worry about workersafety issues. The efforts of the Institute ofElectrical and Electronic Engineers (IEEE) todevelop standard interconnection protocols fordistributed generation systems are being supportedby the Department. The IEEE activities should beextremely helpful in specifying equipment needsfor safe grid interconnection.

With more units placed in the field, a better under-standing of the safety and reliability requirementsof grid interconnection can be determined. Forexample, modification of protective relayingschemes may be needed atboth ends of the circuit toinsure proper coordinationbetween upstream anddownstream protectivedevices and to fully protectline repairmen and equip-ment.

Application Issues

Packaging of microturbinesystems for the full rangeof potential applicationsremains an important,market-driven need. Forexample, microturbines canbe used in cooling, heating,and power applications andin this mode they offerlarge possibilities for publicbenefits in terms of higher

energy efficiency and reduced emissions. Simplewater heating and other forms of thermal energyconnections are needed so the unit becomes a“plug and play” type of installation.

For cooling, heating, and power and other applica-tions the potential customer base for microturbinesystems is still not well understood. At the sametime, potential customers are not aware of theproduct and its capabilities. While this is largely amarketing issue for the manufacturers, demonstra-tions and reliable data available to the public canplay a useful role in serving customer needs. Thiscan be accomplished through field tests that areconducted over a range of applications, geographiclocations, and operating conditions.

Table 1 summarizes the research, development,technology evaluation, and and demonstrationneeds of microturbine systems.

Table 1. Summary of RD&D Needs for Microturbines


6. RD&D PLAN — FISCAL YEARS 2000 THROUGH 2006

T

Table 2. Requested and Projected Government Funding Requirementsof the Advanced Microturbine Systems Program ($ M)

16 FY 2000 and 2001 includes funding from the Industrial Distributed Generation Program17 The technology base development efforts focus on enabling technologies that support several programs in distributed energyresources including the Advanced Microturbine Systems program.

16

his RD&D plan calls for activities in threemain areas toward the development of

advanced microturbine systems over the nextseven fiscal years. The four areas are:

1. concept development,

2. components, subsystems, and integration,

3. demonstrations, and

4. technology base development.

The Department is planning to co-fund activitieswith industry in these three areas to produce newtechnologies that can be developed into commer-cial products or designs that satisfy the efficiency,economics, durability, and emissions goals of thisprogram. Table 2 summarizes the estimated annualgovernment funding requirements to implement thisprogram. The total government funding require-ment over the next seven fiscal years is $63million. It is expected that the total industry costshare will be fifty percent over the life of theprogram. Applicants will have the flexibility toallocate the cost sharing requirements among themembers of the bidding team.

Industrial plants and commercial, institutional, andresidential buildings are important targets forcommercial application of the advanced technolo-gies developed under this program. As a result,each funded activity must be able to demonstratethat its products address the needs of one or more

of these potential market applications for clean,affordable, and reliable electric power, steam, hotwater, process heat, refrigeration, air compression,space heating and cooling, humidity control, and/ormechanical drive.

The Department plans to implement the programby allowing all program areas to be developedsimultaneously as depicted in Figure 1 on page iii inthe Executive Summary. Potential RD&D per-formers will be able to participate at any point inthe program. The first several years of theprogram will emphasize concept development.However, projects that design and conduct initialtests of advanced components, subsystems andintegrated microturbine systems could also beundertaken. A small effort to demonstrate existingmicroturbine systems, subsystems, and/or compo-nents could also be initiated from the outset of theprogram, depending on the applications that arereceived.

The advanced testing, fabrication and prototypingof new components, subsystems and integratedmicroturbine systems will be emphasized during themiddle years of the program. It is expected thatthe concept development area of the program willbe completed by fiscal year 2005.

The last two fiscal years will focus on the comple-tion of an 8,000-hour field test demonstration ofone or more advanced microturbine systems thatmeet the goals of the program.

17


Concept Development

This area consists of new and novel concepts andconceptual designs that can be developed intocommercial products that satisfy the goals of theprogram. The starting point for activities in thisarea will be, at minimum, technological concept(s)that have prior experimental evidence that indicatepotential for contributing to the development ofmore efficient and cleaner advanced microturbinesystems.

New and novel concepts and conceptual designswill be supported for components, subsystems, andintegrated microturbine systems. Successfulconcept development projects will include prelimi-nary designs for advanced components, sub-systems, and integrated systems. Preliminarydesign studies should include sufficient testing,empirical evidence, and/or computer analysis toprove the robustness of the concept in meeting thegoals of the program.

Potential applicants who have an innovativeconcept but lack the development experience toprepare a detailed design and fabricate and testprototypes can choose to team with firms whohave that kind of experience or they can end theirinvolvement in the program after submitting theirconcept.

Concept development will continue through fiscalyear 2004 to leave the door open for new andinnovative concepts to have an impact on thedesign, fabrication, and testing of advancedmicroturbine components, subsystems, and inte-grated systems. It will also be possible for appli-cants to propose new concepts and preliminarydesigns based on lessons learned from on-goingRD&D.

It is conceivable that concept development activi-ties could be supported through fiscal year 2005 asit would be ill advised to rule out the potential forsupport for truly merit worthy ideas. However,support for concept development beyond fiscalyear 2004 is not planned at this time and would

ultimately depend on the quality of the concept andthe amount of funding available at that point in theprogram.

Components, Subsystems, and IntegratedSystems

This area is expected to cover the majority ofresearch and development activities of this pro-gram. The area consists of a wide variety ofpotential activities that can be aimed at singlecomponents, multiple components and subsystems,and/or integrated microturbine systems. Activitiesin this area will be supported up to the last year ofthis program. During the program’s final yearemphasis will be on the 8,000 field test demonstra-tion project(s) of the advanced microturbinesystem(s).

Activities in this area will begin with the develop-ment of detailed designs of the selected compo-nents, subsystems, and integrated systems. Thedetailed designs will include investigations of allprocess and economic parameters. The analysiswill include all facets of operations under a varietyof environmental conditions. Detailed designs forthe development of components and subsystemswill include plans for the subsequent integrationinto a microturbine system that meets the goals ofthe program.

The detailed designs will be manufactured andassembled into components, subsystems, andintegrated systems suitable for bench-scale testing.Further development studies and testing will bedone to verify the design, provide operating andcontrol parameters, and full-scale definition such asallowable operating ranges, sensitivity to fuelvariability, and other factors that could affect thecost and performance of the advancedmicroturbine components and subsystems. Thisarea will include fully verified and tested designsand/or bench-scale prototypes of components,subsystems, and integrated systems.


Design and testing of advanced microturbines willinclude development of control systems. Suchsystems will include sensors, controllers, and logicthat direct the operation of the advancedmicroturbine components and subsystems and theintegration of the entire microturbine system intothe operations of users and the electric power andnatural gas distribution system. Control systemactivities could include hardware and softwaredevelopment for the implementation of operatingprocedures for start-up, steady operations overusual power ranges, maintenance schedules, andunplanned outages.

Depending on the relative maturation of thetechnology, detailed design and testing activities ofcomponents and subsystems could begin duringfiscal year 2000 and will continue through fiscalyear 2005.

The design and testing of the advancedmicroturbine itself will be developed in parallel tothe development of components and subsystems toassure compatibility, optimum fit, and functionality.It is possible, but not expected, for work to beginimmediately in fiscal year 2000 on a completemicroturbine system that meets all of the goals ofthe program. This activity will be a major aim fromfiscal year 2005 through the completion of theproject in fiscal year 2006. Such activities includefabrication of a complete microturbine system thatincorporates the scientific and engineering prin-ciples, components, and subsystems (includingcontrols). The entire microturbine system could bethe result of concept development funded underthis program, or not. Through testing, computa-tional analysis, and other means, the performanceof the advanced microturbine system will beverified and validated to achieve the designparameters. Prior to proceeding to field testdemonstrations, the design(s) for the advancedmicroturbine system(s) must be shown to achievethe goals of the program and account for potentialtrade-offs in the targets for efficiency, economics,durability, and emissions. Proof testing will be

based on natural gas fuels but it should be ac-knowledged that multi-fuel capability is an impor-tant marketing issue that advanced microturbinesmay address under this program.

Demonstrations

One of the first activities in this area will be thedevelopment of a plan for conducting field testdemonstration projects over the course of theprogram. Because of the small size and modularityof microturbine units, it is critical to obtain operat-ing data across a wide range of sites, sizes,environmental conditions, and applications. Be-cause of funding constraints, it will be necessary tolimit demonstration projects to those that offer thegreatest information and value.

As mentioned, the focus of the demonstrationactivities in the last two years of the program willbe on an 8,000 hour field test of the advancedmicroturbine system(s). Reliability, availability,maintainability, durability (RAMD) testing willprobably involve field demonstrations exceeding8,000 hours of operation. Government involvementin such efforts will be considered at that point inthe program. Throughout the program, demonstra-tion projects will be supported to obtain informationon components and subsystems (including con-trols), as long as those activities can be shown tocontribute to achieving the goals of the program.

At minimum, all demonstration projects will bedesigned for 4,000 hours of operation. Host siteswill be sought from industrial, commercial, institu-tional, and residential buildings and will cover arange of geographical and weather conditions andinclude buildings cooling, heating, and powerapplications, if possible. Each demonstrationproject will include a coordinated plan for thedemonstration that incorporates the perspectives ofall parties and explains how the results will bedisseminated to interested users. The plan willinclude a discussion of assignment for responsibil-ity of various tasks including business arrange-ments, balance of plant equipment, site construc-


tion, licenses and permits, site integration, periodicinspections, third party visits, data acquisition, andreporting.

Demonstration projects must be representative ofsignificant market segments or applications of thedistributed power generation industry. Successfuldemonstrations will be expected to exemplifyresolution of critical engineering and/or institutionalbarriers such as interconnection with the localelectric power and/or natural gas distributionsystem.

Because of the widespread perception of utilityinterconnection as a barrier to the use ofmicroturbines and other distributed power systems,it is expected that most of the demonstrationprojects will address this issue. In this regard, it isexpected that all hours of operation accumulatedunder the demonstrations shall be gained while themicroturbine is generating electric power. Addition-ally, all such hours of operation may be accumu-lated while the host site is interconnected with theexisting electric power and natural gas distributiongrid. However, information from demonstrations ofmechanical drive and combined heat and powerapplications are also encouraged. Accelerating theuse of cooling, heating, and power systems is oneof the top priorities of the Department.

Technology Base Development

The technology base development effort is acrosscutting activity that contributes to severalprograms in distributed energy resources, includingthe Advanced Microturbine Systems program.This area consists of work in advanced combustionsystems, materials, and sensors and controls thatcould be used in the development of advancedmicroturbine concepts, subsystems, components,and integrated systems. The most critical issuefacing users of advanced combustion equipmentare increasingly stringent environmental standardsfor air emissions. One of the major targets will becontinued development of low NOx burner tech-nologies. Also needed are combustion processes

for using biobased, wastes and off-gases, and lowBtu fuels cleanly and efficiently. One of the morepromising areas of advanced materials develop-ment is in engineered ceramics such as continuousfiber ceramic composites and advanced metalalloys for high temperature operations of turbinesystems. Efforts are underway for demonstratingadvanced materials such as engineered ceramicsand alloys in advanced turbines. These effortsneed to be continued for microturbine applications.Advanced sensors and control systems are neededto support microturbine development and applica-tion in buildings and manufacturing process envi-ronments. Data acquisition systems for gatheringand processing measurements on performanceparameters could lead to expanded use ofadavnced microturbine systems in distributedenergy resource applications.


his program will be managed by the Officeof Power Technologies in the Office of

Energy Efficiency and Renewable Energy. Anumber of other organizations will be involved inthe implementation and coordination of the plannedRD&D activities. Figure 5 outlines the programstructure and lists some of the major organizationsthat will be involved in the implementation andcoordination of the program.

Program management responsibilities includedevelopment and defense of the program’s annualfunding request to Congress, development anddissemination of programmatic guidance andtechnical directions, coordination with relatedprograms, priority setting, procurements, monitoringand tracking of projects, and achievement of theprogram’s mission, goals, and milestones. To assistin carrying-out these functions, the Chicago

Operations Office will be assigned responsibilityfor conducting major procurements and for manag-ing the execution of work by the industrial teams.

Program implementation will be handled primarilyby a variety of private industry contractors; thenational laboratories and universities will also beinvolved. Selection of specific performers will bedetermined by a series of competitive solicitations

and direct contractingunder existing competi-tively awarded contractmechanisms. Periodicprogram review meetingswill be held to trackprogress toward comple-tion of program milestones.

Coordination with otheroffices in the Department,other federal agencies,industry groups, and stateagencies is an importantprogram managementresponsibility. Within theDepartment, the Office ofIndustrial Technologies(OIT) is working on theIndustries of the Futureprocess, including

manaufacturing needs for industrial power andcooling, heating, and power technologies. TheOffice of Buildings Technologies and State andCommunity Programs (OBTS) is developingadvanced energy systems for buildings. The Officeof Transportation Technologies (OTT) conductsresearch and technology transfer activities inadvanced combustion technologies and hightemperature ceramics for vehicle engines. TheFederal Energy Management Program is promot-

7. PROGRAM MANAGEMENT PLAN

T

Figure 4. Program Structure


ing the use of renewable energy, energy efficiency,and distributed energy resource technologies infederla buildings and facilities. The Office of FossilEnergy (FE) conducts research for large-scale gasturbines for central station utility applications.Coordination with these offices will include identifi-cation of opportunities for cost sharing of jointactivities.

There are other federal agencies that have RD&Dprograms related to the development of advancedmicroturbine systems. These agencies include theDepartment of Defense (DOD), National Aero-nautics and Space Administration (NASA),Environmental Protection Agency (EPA), and theNational Institutes of Standards and Technologies(NIST). Opportunities for joint sponsorship andother forms of collaboration will be explored withthese agencies.

There are a number industry groups that haveinterest in or conduct RD&D activities related tomicroturbines. The end user industries that havethe greatest estimated market potential formicroturbines include food processing, large andsmall chemicals, mining, oil and gas production andexploration, pulp and paper, wood product, andtextiles. This group includes several of the Indus-tries of the Future (IOF). The utility industry(electricity and natural gas) have significantinterest in microturbine development including anumber of individual utility companies, energyservices companies, and independent powerproducers. Several industry groups have formed

that have specific interest in distributed powertechnologies including microturbines. Thesegroups include the U.S. Combined Heat andPower Association (U.S.CHPA), the DistributedPower Coalition of America (DPCA), and theCalifornia Alliance for Distributed Energy Re-sources (CADER). Research organizations suchas the Electric Power Research Institute (EPRI),the National Rural Electric Cooperative Associa-tion (NRECA), and the Gas Research Institute(GRI) have identified distributed generation ingeneral and microturbines specifically as strategictechnology opportunities for their members.

Several states have energy research offices thathave interest in microturbine development. Forexample, the California Energy Commission (CEC)and the New York State Energy Research andDevelopment Administration (NYSERDA) haveprograms underway, funding available for demon-stration projects of microturbine systems, andinterest in working with the U.S. Department ofEnergy. The Association of State Energy Researchand Technology Transfer Institutes (ASERTTI), anorganization representing agencies in over a dozenstates (including the CEC and NYSERDA) alsohas interest in working with the Department onmicroturbines. The CEC, NYSERDA, andASERTTI have already signed memoranda ofunderstanding with the Department of Energy toconduct collaborative activities in a number ofareas, including microturbines.

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