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CHP as a Greenhouse Gas Reduction Strategy . CHP/DG and Emerging Fuels June 26, 2007 Tom Frankiewicz, EPA CHP Partnership. Overview. Benefits of CHP efficiency and environmental benefits as part of GHG strategy Recognizing environmental benefits Monetizing environmental benefits

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chp as a greenhouse gas reduction strategy

CHP as a Greenhouse Gas Reduction Strategy

CHP/DG and Emerging Fuels

June 26, 2007

Tom Frankiewicz, EPA CHP Partnership

overview
Overview
  • Benefits of CHP
    • efficiency and environmental benefits
    • as part of GHG strategy
  • Recognizing environmental benefits
  • Monetizing environmental benefits
  • Resources through the CHP Partnership and EPA
advantages of combined heat and power chp
Advantages of Combined Heat and Power (CHP)

Reducing fuel use

  • More efficient than separate generation of electricity and heat.
  • Lower operating cost. Higher efficiency translates to reduced fuel consumption.
  • Reduces emissions of all pollutants. Renewably-fueled CHP is CO2 neutral.
  • Increased reliability and power quality also adds significant value.

Reducing O&M, Fuel

Monetizing Environmental Benefit

Avoiding Business Disruptions

criteria and ghg reductions
Criteria and GHG Reductions
  • Efficiency gains translate to emission reductions:
    • SO2
    • NOx
  • Commensurate greenhouse gas reductions.
recognizing environmental benefit
Recognizing Environmental Benefit
  • Key to encouraging CHP-DG is in recognizing it’s primary benefits:
    • Higher efficiency
    • Onsite thermal and electrical generation (avoid transmission & distribution losses)
    • State-of-the-art technology (emission offsets)
  • CHP can be most (cost) effectively installed during new build or boiler replacement/equipment upgrade.
chp as ghg strategy
CHP as GHG Strategy
  • Efficiency
  • Can be Renewable Energy Measure
  • Works in conjunction with other measures (efficiency, onsite power generation, renewable energy purchases)
  • Recognized in USGBC LEED certification
  • Strategy under voluntary commitments
benefits of clean energy ee re and dg
Benefits of Clean Energy (EE, RE, and DG)
  • Economic
    • Lower cost compared to new generation and transmission
    • Downward pressure on natural gas prices
    • Lower wholesale electricity prices
    • Improved local economy
    • Improved service to low income and seniors
  • Risk Management
    • Diversify a utility’s generation supply portfolio
    • Reduce environmental regulatory risk to utilities
  • Environmental
    • Lower greenhouse gas emissions and air pollutants
    • Lower water use
  • Utility System Benefits
    • Quick fix with longer term benefits
    • Improved security of electricity and gas systems
    • Lower peak demand / improved reliability
  • “Clean Energy” includes cost-effective energy efficiency (EE), renewable energy (RE), and clean distributed generation (DG) such as combined heat and power (CHP).
environmental revenue streams
Environmental Revenue Streams

Definition: Any number of programs that reward clean power generation and provide one time or ongoing revenue source.

Emissions Programs

  • Emission allowance trading programs (cap and trade)
  • New source emission offset programs
  • CO2 offset programs

Generation Programs

  • Energy portfolio standard programs
  • Voluntary green power purchases
project resources
Procurement Guide

CHP Emissions Calculator

Funding Database

Project Resources
the epa chp partnership
The EPA CHP Partnership
  • Voluntary program - seek to reduce the environmental impact of power generation by promoting the use of CHP.
  • Actively providing education/outreach and direct project assistance since 2001.
  • Provide services and tools for Partners to assist with CHP project development, regulatory barriers, market transformation.
  • Work with government and environmental community to evaluate environmental benefits of CHP.
chp partnership
CHP Partnership

Tom Frankiewicz

frankiewicz.thomas@epa.gov

202.343.9794

Or visit our website at

www.epa.gov/chp