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ww w .mi d w e s tcl e an e nerg y . o rg

Combined H e a t & P o w e r (C H P) Op p ortunitie s for Hospit a l Faciliti e s. Iowa Society of Hea l thcare Engi n eers ( I SH E ) Septe m ber 18, 2014 Cl i f f Haefke. ww w .mi d w e s tcl e an e nerg y . o rg. What technolo g y can….

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  1. CombinedHeat&Power(CHP) Opportunitiesfor HospitalFacilities Iowa Societyof HealthcareEngineers(ISHE) September 18, 2014 Cliff Haefke www.midwestcleanenergy.org

  2. Whattechnologycan… • Increaseoverallenergy efficiencyand reduce utilitybill expenditures? • Reducecarbonemissions? • Increaseenergyreliability,decreaserelianceonthegrid, and • supportgridT&D? • Showmoreenergysavingsand reduce moreemissionsthan • comparablysizedPV andwindtechnologies? • Supportnation’senergy goalsand iscommerciallyavailabletoday? • TheAnswer? CHP • 6

  3. WhyCHPinHospitals? • Healthcareorganizationsspend>$6.5Bannually • Every$1a non-profithealthcareorganizationsavesonenergyis • equivalenttogenerating$20in newrevenuesfor hospitals • For-profithospitalscanraisetheirearningspershare1¢byreducing • energycostsjust5% • CHPsystemscanreduceenergycostsandcarbonemissions • CHPsystemscanmaintainhospitals’powerandheatduringman- madeandnaturaldisasters • 200+hospitalsoperateCHPsystemstoday • 7ofTop16U.S.hospitalsuseCHPaccordingtoUS News ENERGYSTAR-http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf DOECHPInstallationDatabase USNews’2013-2014HonorRollof theNation’sTop18Hospitals:(JohnHopkins,Mass.General,MayoClinic,ClevelandClinic,NY Presbyterian,NYULangone, IndianaUniversity) 7

  4. USDOECHP Technical AssistancePartnerships (TAPs) • U.S.DOECHPTechnicalAssistancePartnerships(TAPs)originallyestablishedin2001byU.S.DOEandORNLto supportDOECHPChallenge(formallyknownasRACsand CEACs) • Todaythe7TAPspromotetheuseofCHP,DistrictEnergy, andWasteHeattoPowerTechnologies • Strategy:provideatechnologyoutreachprogramtoendusers, policy, utility,andindustrystakeholdersfocusedon: • Marketanalysis&evaluation • Education&outreach • Technicalassistance • oMidwestWebsite:www.midwestCHPTAP.org • 8

  5. DOECHPTechnicalAssistancePartnerships(CHPTAPs) NORTHEAST www.northeastCHPTAP.org MIDWEST TomBourgeoisPaceUniversity914-422-4013 tbourgeois@law.pace.edu www.midwestCHPTAP.org JohnCuttica UniversityofIllinoisat Chicago 312-996-4382 cuttica@uic.edu DaveSjoding Washington StateUniversity360-956-2004 sjodingd@energy.wsu.edu BekaKosanovic UniversityofMassachusettsAmherst 413-545-0684 kosanovi@ecs.umass.edu CliffHaefke UniversityofIllinoisat Chicago 312-355-3476 PACIFIC www.pacificCHPTAP.org Terry Clapham CaliforniaCenter forSustainableEnergy858-244-4872 terry.clapham@energycenter.org JimFreihaut ThePennsylvaniaStateUniversity814-863-0083 jdfII@psu.edu GeneKogan CaliforniaCenterforSustainableEnergy858-633-8561 Gene.Kogan@energycenter.org ·­·• SOUTHEAST SOUTHWEST www.southeastCHPTAP.org www.southwestCHPTAP.or IsaacPanzarella NorthCarolina StateUniversity 919-515-0354 ipanzarella@ncsu.edu ChristineBrinker SouthwestEnergyEfficiencyProject720-939-8333 cbrinker@swenergy.org ClaudiaTighe Jamey Evans PattiWeleskoGarland TedBronson DOECHP Technical CHPTechnicalSupportCoordinatorDOECHPTAPsCoordinator CHPDeploymentLead ProjectOfficer. GoldenFieldOffice OakRidgeNational Laboratory Assistance Power EquipmentAssociates OfficeofEnergyEfficiencyand OfficeofEnergyEfficiencyand Supporting.OfficeofEnergyEfficiencySupporting.Officeof Energy Renewable Energy Renewable Energy Partnerships(TAPs): and RenewableEnergy EfficiencyandRenewableEnergy U.S.DepartmentofEnergy U.S.DepartmentofEnergy U.S. DepartmentofEnergy Phone:630-248-8778 Phone:202-287-1899 Phone:720-356-1536 ProgramContacts Phone:202-586-3753 E-mail:tlbronsonpea@aol.com E-mail:jamey.evans@go.doe.gov E-mail:claudia.tighe@ee.doe.gov E-mail:garlandpw@ornl.gov

  6. Outline • CHP:TheConcept • CHP:TheBusinessCase • CHPProjectProfiles • NextSteps &Incentives 10

  7. Fuel UtilizationbyU.S.UtilitySector Source:http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf 11

  8. CHP:A KeyPartof Our Energy Future • FormofDistributed • Generation(DG) • Anintegratedsystem • Located atorneara • building/facility • Providesatleast aportion oftheelectrical loadand • Usesthermalenergyfor: • SpaceHeating/Cooling • ProcessHeating/ Cooling • Dehumidification CHPprovides efficient,clean, reliable,affordable energy–todayand forthefuture. 12 Source:http://www1.eere.energy.gov/manufacturing/distributedenergy/pdf s/chp_clean_energy_solution.pdf

  9. CHPTechnologyComponents Electricity PrimeMover Generator Fuel On-SiteConsumption ReciprocatingEngines CombustionTurbines Microturbines SteamTurbines FuelCells NaturalGas Propane Biogas LandfillGas Coal Steam WasteProducts Others SoldtoUtility Thermal Steam HotWater SpaceHeating ProcessHeating SpaceCooling ProcessCooling Dehumidification HeatExchanger 13

  10. EmergingDriversforCHP oBenefitsofCHPrecognizedby policymakers DOE/EPACHPReport(8/2012) • PresidentObamasignedanExecutiveOrderto accelerateinvestmentsinindustrialEEandCHP on 8/30/12thatsetsnationalgoalof 40GWofnew CHPinstallationoverthenextdecade • StatePortfolioStandards(RPS,EEPS, TaxIncentives,Grants,standbyrates,etc. • Favorableoutlookfornatural gas supplyandpriceinNorth America • Opportunities createdby • environmentaldrivers • Energy resiliencyand critical • infrastructure ExecutiveOrder:http://www.whitehouse.gov/the-press- office/2012/08/30/executive-order-accelerating- investment-industrial-energy-efficiency Report: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf 14

  11. CHPIs Used atthe Point ofDemand 4,200 CHPSites (2012) 82,400MW– installedcapacity Saves1.8quadsof fueleachyear Avoids241 M metric tonsofCO2eachyear 87%ofcapacity–industrial 71%ofcapacity– natural gasfired Source:ICFInternational

  12. FavorableCharacteristicsfor CHPApplications • Futurecentralplant replacementand/or upgrades • Futurefacility expansionor • newconstructionprojects • EE measuresalready • implemented • Accesstonearbyrenewable fuels • Facility energychampion • Concernaboutenergycosts • Concernaboutpower reliability • Concernaboutsustainability and environmentalimpacts • Longhoursofoperation • Existingthermalloads • Centralheatingandcooling • plant 16

  13. Over200hospitalsare usingCHP today… Source:ICFCHPInstallationDatabase,2013 17

  14. ExistingCHPInstallationsin U.S.Hospitals o212facilities generating756.6MW CHPSystems(#) CHPGen Capacity(MW) Boiler/Steam Turbine Combined Cycle Gas Turbine RecipEngine FuelCell Microturbine Other WasteHeat Boiler/Steam Turbine Combined Cycle GasTurbine RecipEngine FuelCell Microturbine Other WasteHeat Source:ICFCHPInstallationDatabase,2013 18

  15. TypicalHospitalCHPSystem Configurations • SizesTYPICALLY rangefrom100sofkWs toseveralMWs(depending • onfacilitysizeandusuallybelow10MW) • CommonCHPprimemovertypesinhospitalsarereciprocating engines,combustionturbines,and/orsteamturbines(mostlyfueledby naturalgas) • Most hospitalCHPsystemsaresizedforthethermalloadrequirements withtheresultingelectricpowergeneratedusedto firstoffsetthepower purchasedfromtheutilitygrid(excesspowercanbesoldtotheutility) • CHPsystemsdonotreplacetheneedforemergencygeneratorsetsto meetthe“lifecriticalloads”ofahospital • Canreducethenumberand capacity oftheemergencygenerators • Canincreasethetotalelectricreliabilityforthehospital Source: http://www.midwestcleanenergy.org/Archive/pdfs/USHospitalGuidebook_111907.pdf 19

  16. EmergencyGenerators vs. CHPSystems • EmergencyGenerators • Minimumrequirement, sized to meet“lifecriticalloads • Hospitalsare installinglarger generatorstoprotectmoreand morehospitalloads • Dieselfueled–highemissions& limitedamountofstoredfuel(hours versusdaysofoperation) • Notdesignedor capableof continuous operationforlong periodsoftime–rarelyoperates • Financialpaybackonlyin timesof • emergency • CHPSystems • Sizedtomeet thermalorelectric loads–operatescontinuously to meetthoseloads • Naturalgasfueled–low emissions • Doesnot replaceemergency generatorset for “lifecritical”loads • Reducesoverallsizeandcapacity ofemergency generatorsets • Emergencygeneratorsetsbecome backup tothebackup; muchhigher reliability • Good financial return

  17. CHPBenefitsto Hospitals • Reducesenergycosts • Increases energyefficiency,helpsmanage • costs,maintainsjobs,etc. • Reducesriskofelectricgriddisruptions& • enhancesenergyreliability • Providesstabilityinthefaceofuncertain electricity prices

  18. ProjectProfiles:ExampleCHPInstallations

  19. ProjectProfile: UtilitiesExpansion NorthwestCommunity Hospital ArlingtonHeights,IL Capacity:4.6MW Fuel:NaturalGas PrimeMover:Recip.Engines Installed:1997/2005 "Wesaid,‘Well,ifwe'regoingtocentralizeitall,doesn'titmakesensetodoa CHP—andgenerateour ownelectricity,toreduceourdemandload,andthencapturetheheatofthoseenginesandutilizeall thatforheatingand/orcooling?'" CharlieStevenson,DirectorofPlantOperations NorthwestCommunityHospital "ThebeautyofthisCHPtohimwasnotsimplythereturnforthecogensystem,butthefactthatthese savingswouldpayforthecentralenergyplanttoo.” JoeSinclair,BallardEngineering

  20. ProjectProfile: AlternativeFinancing JesseBrownVA MedicalCenterChicago,IL Capacity:3.4MW Fuel:NaturalGas PrimeMover:CombustionTurbine Installed:2003 EnergySystemsGroup(ESG)raised$13millionfundingfor design, construction,and installationof theproject by creatinganownertrust, whichthensoldbondsusedfor financing. In turn, theowner trust contractedwith ESGto operate and maintaintheCHPsystemfor 25years. Source:http://www.distributedenergy.com/DE/Articles/Chicag o_VA_Hospital_Takes_Control_of_Its_Electrici_1838.aspx

  21. ProjectProfile: IncreasedENERGYSTAR BuildingScore ProMedicaHealth System-WildwoodToledo,OH Capacity:130kW Fuel:NaturalGas PrimeMover:Microturbines Installed:2013 Benefitsinclude areductioninannual energycostsand greenhousegas emissionsas wellasa higherENERGYSTAR buildingscore Source:www.gemenergy.com

  22. ProjectProfile: LEEDPlatinum DellChildren’sMedicalCenterofCentralTexasAustin,TX Capacity:4.6MW Fuel:NaturalGas PrimeMover:CombustionTurbines Installed:2009 First healthcarefacilityin the worldtoachieveaLEEDPlatinum certificationby theU.S.Green Building Council (USGBC)

  23. ProjectProfile: AddressingInstantaneous PowerInterruptions LakeForestHospital LakeForest,IL Capacity:3.2MW Fuel:NaturalGas PrimeMover:Recip.Engines Installed:1997 Annual InstantaneousPower Interruptionswerereducedfrom 50downto2duetoCHP installation

  24. ProjectProfile: DisasterRelief,Hurricane Katrina MississippiBaptist MedicalCenterJackson,MS Capacity:4.2MW Fuel:NaturalGas PrimeMover:CombustionTurbines Installed:1991 TheindependenceprovidedbytheCHPsystemallowedMBMCtocontinueoperation relativelyunaffectedduringHurricaneKatrinain2005.Assoonaspowerreliabilitybecame afactorMBMCperformedaloadshed,switchedoffofthe powergrid,andcontinued operationinturbine-onlymode.MBMC wastheonlyhospitalintheJacksonmetroareato remainnearly100%operational.Afterapproximately50 hours,thepowerreliabilityissue wasaddressedandMBMCconnectedtothepowergridandreturnedtonormaloperation. Source:http://www.southeastcleanenergy.org/resources/reports/CHP-MBMC.pdf

  25. ProjectProfile: DisasterRelief,SuperStorm Sandy DanburyHospital Danbury,Connecticut Capacity:4.5MW/3 MWStandby Fuel:NaturalGas/Diesel PrimeMover:CombustionTurbine/ Recip.Engine Backups Installed:2011 During thestorm,thefacilityoperatedwithoutanylossof powerand,despitemostofthebusinessesinthe surroundingareabeingwithoutpowerforseveraldays, DanburyHospitalstillhadlightsandheat.TheCHPfacility enabledthehospitaltobefullyfunctionalduringthestorm and continuedconductingbusinessandprovidingthe criticalandnecessaryhealthcareforpatients. Source: http://www.newstimes.com/news/article/D anbury-Hospital-generates-power-for-its- patients-1345938.php#photo-829406

  26. ProjectProfile: AddressingExtended Power Outages PresbyterianHomes Evanston,IL Capacity:2.4MW Fuel:NaturalGas PrimeMover:Recip.Engines Installed:2001 “Theenvironmentweprovidetoelderlyadults hadeverythingtodo withourdecisiontopursue powergeneration. Lossofpowerisn’tanoption. Livesdependonit.” -KeithStohlgren,V/POperations “Wehadnopowerforninehoursonecold,winter dayduringanicestorm.Thelossofpowerforced ustotakeimmediate,aggressivemeasuresto ensurethecomfortandsafetyofourresidents.” –NancyHealdTolan,DirectorofFacilities Management • Icestormin winterof1998 knockedout powerfor9hours. • 600 seniorresidentswere • transferredtosafety • CHPinstalledtoavoidfuture outages

  27. ProjectProfile: 100%EnergyIndependence ThermalEnergy Corporation(TECO) Houston,TX Capacity:48MW Fuel:NaturalGas PrimeMover:Comb.Turbines Installed:2010 TECOoperatesthelargestchilledwaterdistrictenergysystemintheU.S.at thelargestmedicalcenterintheworld,theTexasMedicalCenter. TheCHPsystemcanoperateasabaseloadsystemtoserve100%oftheTECOplantpeakelectricalloadand100%ofTECOcustomers’peakprocessandspaceheatingloads.

  28. ProjectProfile: EnergyIndependence& UniquePartnerships GundersenLutheran & CityBrewery LaCrosse,IL Capacity:633kW Fuel:Biogas PrimeMover:Recip.Engine Installed:2009 HospitalownsCHP system at local brewery. Heat from CHPsystem usedto heat digester, electricity issoldto utility, andelectricsales/credit gotohospital.

  29. ProjectProfile: Public&Private Partnerships GundersenLutheran &CountyLandfill Onalaska,IL Capacity:1.2MW Fuel:LandfillGas PrimeMover:Recip.Engine Installed:2011 Insteadofsimplygenerating electricityatlandfill,landfillgasis piped2milestohospitalwhereCHP systemprovidesallrequired electricityandthermalenergy.Claim tobe firstenergyindependent hospitalinU.S.

  30. CHPTAPProjectDevelopment TechnicalAssistance Procurement, Operations, Maintenance, Commissioning Screeningand Preliminary Analysis Investment GradeAnalysis Feasibility Analysis Usesavailablesite information. Estimate:savings, Installationcosts, simplepaybacks, equipmentsizing andtype. Quickscreening questionswith spreadsheet payback calculator. 3rdPartyreviewof Engineering Analysis. Reviewequipment sizingandchoices. Review specificationsand bids, Limitedoperational analysis 34 AdvancedManufacturingOffice(AMO) manufacturing.energy.gov

  31. DOETAPCHPScreeningAnalysis oHighlevelassessment todetermineifsite shows potentialfor a CHPproject –QualitativeAnalysis • EnergyConsumption& Costs • EstimatedEnergySavings& • SimplyPayback • CHPSystemSizing • QuantitativeAnalysis • Understandingprojectdrivers • Understandingsitepeculiarities

  32. IncentivesandFinancing • 10%FederalInvestmentTaxCredit(ITC)for CHP • DOEBetterBuildingsChallenge,FinancialAllieshave committednearly$2B to fundEE projects* • WasteHeat Recovery(WHR)iseligiblein MidAmericanEnergyEfficiencyResourceStandard (EERS) • 3rdParty Build-Own-OperatorsofCHPOpportunities? – HowdoestheJuly2014IowaSupremeCourtRulingonsolarprojectsimpactCHP3rd PartyOwnership? *http://www4.eere.energy.gov/challenge/allies/financial-allies

  33. WhyCHPinHospitals? • Healthcareorganizationsspend>$6.5Bannually • Every$1a non-profithealthcareorganizationsavesonenergyis • equivalenttogenerating$20in newrevenuesfor hospitals • For-profithospitalscanraisetheirearningspershare1¢byreducing • energycostsjust5% • CHPsystemscanreduceenergycostsandcarbonemissions • CHPsystemscanmaintainhospitals’powerandheatduringman- madeandnaturaldisasters • 200+hospitalsoperateCHPsystemstoday • 7ofTop16U.S.hospitalsuseCHPaccordingtoUS News ENERGYSTAR-http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf DOECHPInstallationDatabase USNews’2013-2014HonorRollof theNation’sTop18Hospitals:(JohnHopkins,Mass.General,MayoClinic,ClevelandClinic,NY Presbyterian,NYULangone, IndianaUniversity)

  34. Questions CliffHaefke (312)355-3476 chaefk1@uic.edu Aprogramsponsoredby www.MidwestCHPTAP.org

  35. OtherResources • PoweringtheFutureofHealthCare –Financial and OperationalResilience:ACHPGuidefor MassachusettsHospitalDecisionMakers(HCWH) • AdvancedEnergyDesignGuideforLargeHospitals (ASHRAE) • AdvancedEnergyDesignGuideforSmall Hospitals andHealthcareFacilities(ASHRAE) • CombinedHeat&Power(CHP)ResourceGuidefor • HospitalApplications(MidwestCEAC) • GuidetoUsingCombinedHeatandPowerfor EnhancingReliabilityandResiliencyin Buildings (DOE/EPA) -http://www.greenribboncommission.org/downloads/CHP_Guide_091013.pdf -https://www.ashrae.org/standards-research--technology/advanced-energy-design-guides -https://www.ashrae.org/standards-research--technology/advanced-energy-design-guides 39 4-http://www.midwestchptap.org/Archive/pdfs/USHospitalGuidebook_111907.pdf 5-http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_for_reliability_guidance.pdf

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