Trigeneration for an integrated Light Manufacturing & Commercial Building

Commercial-In-Confidence

Trigeneration for an Integrated Commercial & Light Manufacturing Facility

Nalin Wickramasinghe

10 June 2009

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Overview

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• Cogent Energy – company overview• Our business model & benefits• Current projects• Blackmores project

• background• plant overview• benefits achieved

• Challenges for a distributed trigen operator


Cogent Energy – overview

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• Distributed energy retailer and network operator • Licensed electricity retailer• Founded in early 2007 – offices in Melbourne & Sydney• Cogent partners include:

• Marren Engineering – Irish HVAC & distributed energy company conducting similar business play in Europe. Installed a number cogeneration plants in Europe from 0.5MW to 3MW.

• InterLease – large niche financier for building/industrial plant – over $200m pa.

• MTU & Thermax – equipment supplier partners for cogen engine & absorption chiller.

Commercial-In-Confidence44

Cogent Energy Business Model

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• Cogent is a licensed retailer & also owns the plant:•Majority financed by Cogent’s financier •Minimal capital outlay for client – approx $250k for a standard project

• Cogent designs, configures & maintains plant -•Responsible for natural gas supply contract•Manage connection agreement & approvals with network operator

• We invoice monthly metered energy – electricity & thermal• Base building invoiced to building owner• Tenant supply invoiced to tenant

• Competitive energy pricing compared to similar grid supplied• Cheaper than sourcing 50% green energy from grid• Pricing fixed for first year – reviewed annually with reference to WEPI


Cogent Energy Business Model – contd.

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• Client’s scope includes:• Provision of suitable plant room with ventilation & sound attenuation• Bring electrical distribution & thermal reticulation systems to Cogent plant• Natural gas connection from meter set

• 12 year supply agreement with client (building owner)• Option to extend at end of period or buyout the plant at residual value• Cogent also has separate site lease agreement with client for plant room

• Separate agreement with Tenant(s)• Two variants to the business model:

• Complete supply - cogenerated energy + grid top up energy supplied by Cogent Energy

• Partial supply – cogenerated energy only, client maintains external supply agreement for grid top up


Overview of Benefits

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• Up to 50% reduction in CO2 – based on 1062 kg/MWh for coal fired grid electricity vs. 550 kg/MWh for gas fired cogen engine

• Up to one Green Star / one & a half NABERS• Efficiency increase from 38% (grid) up to 80% if waste heat is fully

utilized.• Can be configured for standby – dual supply sources• Easing of network hotspots or demand bottlenecks• A distributed network of cogen plants within Sydney supports the

existing electrical network infrastructure and offers the opportunity for the cogen operator & traditional network operator work towards a more efficient network


Current Projects

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• Blackmores (pharmaceuticals + commercial office)• 0.77 MW plant, 14,000 sqm – completed September 08

• Mirvac – 101 Miller St. North Sydney (commercial tower)• 2.4 MW plant, 39,000 sqm – completed October 08

• Australand – Erskine Park (commercial distribution centre)• 0.386 MW plant, 40,000 sqm – completed December 08

• Stockland – Sydney (commercial tower)• 0.77 MW plant, 29,000 sqm – completed May 09

• Uni NSW Cancer Research Centre• 0.77 MW plant, 14,000 sqm – to be completed September 09

• Victoria Street – Melbourne• 0.386 MW plant, 12,000 sqm – to be completed July 09


Blackmores Campus Case Study

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• A new integrated head office/ manufacturing / distribution centre• Located at Warriewood (Northern Beaches area of Sydney)• 14,000 sqm facility accommodating 200 staff• Objective of 5 Star NABERS rating• State-of-the-art facility with many ESD features• Trigeneration was a key part of the ESD strategy• Cogent Energy awarded contract to design, install & operate a

trigen plant (12 year term)• Construction commenced in October 07 and the trigen plant was

commissioned in September 08






Overview of Blackmores Trigen Plant

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• MTU gas reciprocating engines • 2 x 0.386 MWe (400 series V12 units / 415v alternator)

• Matching Thermax exhaust-fired double-effect absorption chillers•1 x 0.292 MW exhaust heat fired•1 x 0.461 MW exhaust & water jacket / with gas burner

• Plate heat exchanger – 0.625 MW (hot water)• MDE control system• Plants configured in parallel import mode with grid & sized below

building’s max demand – with top up from grid• Cogent operate plant peak & shoulder periods (15hrs x 5 days)

with off-peak grid supply






Remote Monitoring & Control

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• Backoffice system is intended to allow management, engineering and operations staff to monitor all core Cogen plant installed on site.

• The system consists of a central server and software. The site is modeled within the system and configured according to the plant installed and the level of monitoring required

• Core functionality in the system includes:• Monitoring of operational status and fault for all equipment on site,

supporting engineering and operations activities• Logging of performance data and energy usage• Provision of reports for detailed trend analysis• Immediate dispatch of alarms to engineering and operations staff of

equipment fault or performance issues detected on site• Billing – including CO2 reporting to assist with NABERS ratings



The systems allows a simplified SLD and Process and Instrumentation overview for each site.



Benefits of Blackmores Trigen Plant

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• Reliability: highly reliable parallel cogen solution with grid parallel import

• Energy Efficiency: 5 star NABERS and 5 star Green Star • Sustainability: Saving of approximately 2,500 tonnes of CO2 per

annum


Challenges for a Distributed Cogen Operator

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• Network connection – no specific commercial terms applicable to a cogen operator in terms of demand/capacity charges.

• Disjoint in the policy adopted by Demand Side Reduction and the Network Pricing areas within electricity networks.

• Gas networks – often don’t take a commercial view of connecting greenfields cogen sites

• Tend to pass on total network expansion costs, making projects unfeasible at times.

• Environmental Protection – tightened standards in relation to NOx emission levels & requirements for SCR


Challenges…. contd.

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• Plant Sizing: risk of over-sizing based on projected energy loads• Compounded by parallel import, no-export mode of operation• Currently no commercial value in exporting• Cogenerated energy has no premium once exported off-site• Therefore threshold of 12,000 sqm NLA

• Supplying tenancies: potential risks of no take up• Tenants have legal entitlement to choice of energy supplier• If there is inadequate take up of cogen supply by tenants could lead to a

scenario where plant is over-sized


In Summary…….

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• Great opportunity presented by the move to reduce commercial building carbon emissions

• We have seized this & made progress with over 5.0 MW committed in Sydney in the past 2 years

• Many other opportunities currently being developed –approximately 50 MW capacity quoted in Sydney

• Still many challenges to overcome……….


Thank you…………………..

[email protected]

+61 (0)437 260 822

mailto:[email protected]

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Trigeneration for an integrated Light Manufacturing & Commercial Building

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