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Combined Heat and Power 101

Combined Heat and Power 101. Public Utility Commission of Ohio Combined Heat and Power Case Studies: Voices of Experience June 20 , 2012 Cliff Haefke. www.midwestcleanenergy.org. Outline. DOE’s Clean Energy Application Centers (CEACs)

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Combined Heat and Power 101

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  1. Combined Heat and Power 101 Public Utility Commission of Ohio Combined Heat and Power Case Studies: Voices of Experience June 20, 2012 Cliff Haefke www.midwestcleanenergy.org

  2. Outline • DOE’s Clean Energy Application Centers (CEACs) • CHP Overview (Concept, Technology, Markets, Opportunities, etc.) • Available DOE CEAC Technical Assistance

  3. U.S. DOE Midwest Clean Application Center originally established in 2001 by U.S. DOE and ORNL to support DOE CHP Challenge Today the 8 Centers promote the use of CHP, District Energy, and Waste Heat Recovery Technologies Strategy: provide a technology outreach program to end users, policy, utility, and industry stakeholders focused on: Market analysis & evaluation Education & outreach Technical assistance Midwest Website: www.midwestcleanenergy.org US DOE Regional Clean Energy Application Centers (CEACs)

  4. Fuel Utilization by U.S. Utility Sector The energy lost in the U.S. from wasted heat in the utility sector is greater than the total energy use of Japan.

  5. Key Part of Our Energy Future is CHP • Form of Distributed Generation (DG) • An integrated system • Located at or near a building / facility • Provides at least a portion of the electrical load and • Recycles the thermal energy for • Space Heating / Cooling • Process Heating / Cooling • Dehumidification CHP provides efficient, clean, reliable, affordable energy – today and for the future. Source: http://www.chpcentermw.org/pdfs/ORNL_Report_Dec2008.pdf

  6. Defining Combined Heat & Power (CHP)The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP) • Simultaneous generation of heat and electricity • Fuel is combusted/burned for the purpose of generating heat and electricity • Normally sized for thermal load to max. efficiency – 70% to 80% • Minimum efficiency of 60% normally required • Normally non export of electricity • Low emissions – natural gas Conventional CHP System Electricity Fuel Heat Min. eff. = 60% Typical eff. 70% - 80%

  7. Defining Combined Heat & Power (CHP)The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Waste Heat Recovery CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP) • Fuel first applied to produce useful thermal energy for the process • Waste heat is utilized to produce electricity and possibly additional thermal energy for the process • Simultaneous generation of heat and electricity • No additional fossil fuel combustion (no incremental emissions) • Normally produces larger amounts electric generation (often exports electricity to the grid; base load electric power) • Required high temperature (low hanging fruit in industrial plants) Electricity Steam Turbine Heat Heat recovery steam boiler Waste heat from the industrial process Energy Intensive Industrial Process Fuel Heat produced for the industrial process

  8. Defining Combined Heat & Power (CHP)The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Two (2) Forms of CHP Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP) Waste Heat Recovery CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP) Conventional CHP System Steam Turbine Electricity Electricity Fuel Heat Heat Heat recovery steam boiler Energy Intensive Industrial Process Fuel

  9. CHP Integrated Technologies / Components • Fuels • Natural Gas • Biogas / Biomass • Landfill Gas • Waste Products • Exhaust Gases • Other • Prime Movers • Turbines (Combustion, Steam, Micro) • Reciprocating Engines • Fuel Cells • ORC • Thermal Technologies • Heat Exchangers • Absorption Chillers • Desiccants • Controls • Generators • Synchronous • Induction • Inverters

  10. CHP Represents a Cost-Effective Electricity Resource in Ohio Compare Compare CHP thermal credit reflects the cost of boiler fuel avoided by capturing and using the waste heat from CHP

  11. Attractive CHP Markets Industrial • Chemical manufacturing • Ethanol • Food processing • Natural gas pipelines • Petrochemicals • Pharmaceuticals • Pulp and paper • Refining • Rubber and plastics Commercial • Data centers • Hotels and casinos • Multi-family housing • Laundries • Apartments • Office buildings • Refrigerated warehouses • Restaurants • Supermarkets • Green buildings Institutional • Hospitals • Landfills • Universities & colleges • Wastewater treatment • Residential confinement Agricultural • Concentrated animal feeding operations • Dairies • Wood waste (biomass)

  12. CHP Is Used at the Point of Demand 3,700 CHP Projects 558 CHP Projects 81.7 GW 11.1 GW Saves 1.8 quads of fuel each year CO2 reduction = removing 430 GW coal plants CO2reducation = removing 42 million cars

  13. Snapshot of Ohio CHP Market CHP Technical Potential

  14. Market Trend of U.S. CHP Installation Capacity Based on projects under construction or in design phase Source: ICF CHP Database

  15. CHP Market Development – Emerging Drivers • Growing recognition of CHP benefits by state and federal policymakers • Emissions regulations impacting non-utility boilers • Upward pressure on electricity prices • Favorable natural gas outlook

  16. CHP Potential in Boiler MACT Affected Facilities • Highest concentration of affected facilities in Midwest

  17. Midwest “Spark Spread” Improving Favorable Natural Gas Outlook Upward Pressure on Electricity Prices Henry Hub Gas Prices Will Average Projected Between $5 and $7 per MMBtu 30GW of Midwest Coal Fired Utility Power Plants impacted by EPA regulations Source: ICF International

  18. Ave. Electric Price & At-Risk Coal Capacity Source: FVB Energy, Inc.

  19. CHP is a Key Component of Distributed Energy within DOE’s Advanced Manufacturing Office (AMO) Accelerated CHP has proven its effectiveness and holds promise for the future—as an: • Environmental Solution – Significantly reducing CO2 emissions through greater energy efficiency • Competitive Business Solution – Increasing efficiency, reducing business costs, and creating green-collar jobs • Local Energy Solution – Deployable throughout the U.S. • Infrastructure Modernization Solution – Relieving grid congestion and improving energy security. IEE/CHP SEE Action Working Group Goals: Achieve an average 2.5% reduction in industrial energy intensity annually through 2020; install 40 GW of new, cost-effective CHP by 2020

  20. Feasibility Steps CEAC Capabilities Analysis Performance thru Feasibility Analysis Consulting Expertise thru all Steps Bringing customers and CHP engineering community together CEAC Project Support Over 225 assessments & 700 tech support activities Represents over 1.5 GW installed or in development Phone and Meeting Inquiries Feasibility Analysis Site Data Collection Investment Grade Analysis Qualification Screening Analysis Procurement / Installation / Operation DOE CEAC CHP Technical Assistance

  21. Thank You www.midwestcleanenergy.org Cliff Haefke (312) 355-3476 chaefk1@uic.edu A program at A program sponsored by

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