Combined Heat and Power (CHP) in Ohioand Available Technical Assistance

Dive into Process Efficiency Workshop

October 14, 2017

Graeme Miller

US DOE Midwest CHP TAP

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Agenda

• US DOE CHP TAPs

• CHP Overview

• CHP Technologies

• CHP Market Applications

• AEP Ohio CHP Incentive Program

• Developing a Project with the CHP TAPs

DOE CHP Technical Assistance Partnerships (CHP TAPs)

DOE's CHP TAPs promote and assist in transforming the market for CHP, waste heat to power, and district energy or microgrid with CHP throughout the United States. Key services include:

o Market Opportunity AnalysisSupporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors

o Education and Outreach Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.

o Technical AssistanceProviding technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy or microgrid with CHP in their facility and to help them through the development process from initial CHP screening to installation.

www.energy.gov/chp

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Energy Utilization in the Utility Sector

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Source: Energy Information Association – Lawrence Livermore National Laboratory, 2016

Two-thirds of the fuel used to generate power in the US is lost as heat

Conversion Losses66.6%

CHP: A Key Part of Our Energy Future

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o Form of Distributed Generation (DG)

o An integrated system

o Located at or near a building / facility

o Provides at least a portion of the electrical load and

o Uses thermal energy for:

o Space Heating / Cooling

o Process Heating / Cooling

o Dehumidification

CHP provides efficient, clean, reliable, affordable

energy – today and for the future.

Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

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)

Separate Energy Delivery:• Electric generation – 33%• Thermal generation - 80%• Combined efficiency – 45% to 55%

CHP Energy Efficiency (combined heat and power)70% to 85%

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Waste Heat to Power 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)

Fuel

Electricity

Energy Intensive Industrial Process

Heat produced for the industrial process

Waste heat from the industrial process

Heat

Heat recovery steam boiler

Steam Turbine

HRSG/Steam TurbineOrganic Rankine CycleBackpressure Turbine

Defining Combined Heat & Power (CHP)The on-site simultaneous generation of two forms of energy

(heat and electricity) from a single fuel/energy source

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What Are the Benefits of CHP?

o CHP is more efficient than separate generation of electricity and heating/cooling

o Higher efficiency translates to lower operating costs (but requires capital investment)

o Higher efficiency reduces emissions of pollutants

o CHP can also increase energy reliability and enhance power quality

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Emerging National Drivers for CHP

o Benefits of CHP recognized by policymakerso State Portfolio Standards (RPS, EEPS), Tax Incentives,

Grants, standby rates, etc.

o Favorable outlook for natural gas supply and price in North America

o Opportunities created by environmental drivers

o Utilities finding economic value

o Energy resiliency and critical infrastructure

DOE / EPA CHP Report (8/2012)

http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

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CHP Today in the United States

• 82.6 GW of installed CHP at nearly 4,400 industrial and commercial facilities

• 8% of U.S. Electric Generating Capacity; 14% of Manufacturing

• Avoids more than 1.8 quadrillion Btus of fuel consumption annually

• Avoids 241 million metric tons of CO2 compared to separate production

Slide prepared on 5-30-17

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CHP Today in Ohio

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• 527 MW of installed CHP at 65 industrial and commercial facilities

• Primary Metals comprises 226 MW of CHP capacity

Source: DOE CHP Installation Database (U.S Installations as of December 31, 2016)

The Potential for Additional CHP Is Nationwide

October 11, 201613

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Ohio Industrial CHP Technical Potential(3,981 MW @ 2,864 sites)

Source: www.energy.gov/chp-potential

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Ohio Commercial CHP Technical Potential(2,717 MW @ 10,288 sites)

Source: www.energy.gov/chp-potential

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Common CHP Technologies and Generating Capacity Ranges

50 kW 100 kW 1 MW 10 MW 20 MW

Fuel Cells

Gas/Steam TurbinesMicroturbines

Reciprocating Engines

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• Size Range: 10 kW to 10 MW

• Characteristics

– Thermal can produce hot water, low pressure steam, and chilled water (through absorption chiller)

– High part-load operation efficiency

– Fast start-up

– Minimal auxiliary power requirements for black start.

• Example Applications:

– universities, hospitals, water treatment facilities, industrial facilities, commercial buildings, and multi-family dwellings

Prime Mover:

Reciprocating Engines

Source: www.energy.gov/chp-technologies

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• Size Range: 1 MW to 300 MW

• Characteristics

– Produces high quality, high temperature thermal that can include high pressure steam for industrial processes, and chilled water (with absorption chiller)

– Efficiency at part load can be substantially less than at full load.

• Example Applications:

– hospitals, universities, chemical plants, refineries, food processing, paper, military bases

Prime Mover:

Gas Turbines

Source: www.energy.gov/chp-technologies

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• Size Range: 30 kW to 330 kW (modular packages exceeding 1 MW)

• Characteristics

– Thermal can produce hot water, steam, and chilled water (through absorption chiller)

– Compact size and light weight

– Inverter based generation can improve power quality

• Example Applications:

– multifamily housing, hotels, nursing homes, waste water treatment, gas & oil production

Prime Mover:

Microturbines

Source: www.energy.gov/chp-technologies

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• Size Range: 100 kW to over 250 MW• Characteristics

– Requires a boiler or other steam source

– Can be mated to boilers firing a variety of gaseous, liquid or solid fuels (coal and biomass fuels such wood, and waste products, and pellets).

– Steam extracted or exhausted from steam turbine can be used for thermal applications.

– Can operated over a wide range of steam pressures.

• Example Applications: – industrial applications, district heating and

cooling systems; forest products, paper mills, chemicals, food processing, backpressure turbines in lieu of steam system pressure reducing valves

Prime Mover:

Steam Turbines

Source: www.energy.gov/chp-technologies

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• Size Range: 3 kW to 2 MW

• Characteristics

– Relatively high electrical efficiencies due to electrochemical process

– Uses hydrogen as the input fuel; requiring processing unless pure hydrogen is used

– Relatively low emissions without controls due to absence of combustion process (other than reformer)

– Inverter based generation can improve power quality

– Relatively high installed cost

• Example Applications:

– data centers, hotels, office buildings, waste water treatment

Prime Mover:

Fuel Cells

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Source: www.energy.gov/chp-technologies

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Heat Recovery

• Heat Exchangerso Recover exhaust gas from prime

movero Transfers exhaust gas into useful

heat (steam, hot water) for downstream applications

o Heat Recovery Steam Generators (HRSG) the most common

• Heat-Driven Chillers o Absorption Chiller

• Use heat to chill water• Chemical process (not mechanical)

o Steam Turbine Centrifugal Chiller

Image Source: University of Calgary

Image Source: DOE - EERE

CHP & Infrastructure Resiliency

“Critical infrastructure” refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety.”

Patriot Act of 2001 Section 1016 (e)

Applications:

o Hospitals and healthcare centers

o Water / wastewater treatment plants

o Police, fire, and public safety

o Centers of refuge (often schools or universities)

o Military/National Security

o Food distribution facilities

o Telecom and data centers

CHP (if properly configured):

o Offers the opportunity to

improve Critical

Infrastructure (CI) resiliency

o Can continue to operate,

providing uninterrupted

supply of electricity and

heating/cooling to the host

facility

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Designing for Reliability

Two Generator Types

• Inductiono Requires external power

source to operateo When grid goes down,

generator goes downo Less Complicated and Costly

to Interconnect

• Synchronouso Self Excited (Does not need

grid to operate)o Generator can operate thru

Grid outageso More Complicated and Costly

to Interconnect

Uninterrupted Operation Requirements

• Black start capabilityo Allows the system to start up

independently from the grid

• Generators capable of grid-independent operationo The system must be able to operate

without grid power signal

• Ample Carrying Capacityo System size must match critical loads

• Parallel utility interconnection and switch gear controlso The system must be able to

disconnect from the grid, support critical loads, and reconnect after an event

Emergency Generators

o Minimum requirement, sized to meet “life critical loads

o Hospitals are installing larger generators to protect more and more hospital loads

o Diesel fueled – high emissions & limited amount of stored fuel (hours versus days of operation)

o Not designed or capable of continuous operation for long periods of time – rarely operates

o Financial payback only in times of emergency

Emergency Generators vs CHP Systems

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CHP Systems

o Sized to meet thermal or electric loads – operates continuously to meet those loads

o Natural gas fueled – low emissions

o Does not replace emergency generator set for “life critical” loads

o Reduces overall size and capacity of emergency generator sets

o Emergency generator sets become backup to the backup; much higher reliability

o Good financial return

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• Schools (K – 12)• Universities &

colleges• Wastewater

treatment• Residential

confinement

Agricultural• Concentrated

animal feeding operations

• Dairies• Wood waste

(biomass)

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o Hospitals

o Light Industrial

o Apartment Buildings/ Condos

o Community Colleges

o Large Schools

o Nursing Homes

o Community Centers

o Athletic Clubs

o Municipal Pools

o Correctional Institutions

Best Applications…

Small-Medium CHP Applications

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Larger CHP Applications

o Mid-stream Oil & Gas Processing

o Oil Refineries

o Chemical Plants

o Heavy Industrial

o Hospital Campuses

o College Campuses

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CHP Incentives in OhioAEP Ohio

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AEP Ohio is offering incentives to customers for eligible CHP projects

o AEP Ohio distribution customer

o Targeting Industrial and Institutional

o Minimum generation of 500,000 kWh per year

o Design of 8000 minimum run hours per year

Source: “AEP Ohio CHP and WER Program,” Michelle Cross, AEP Ohio, May 24, 2017

CHP Incentives in OhioAEP Ohio

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Systems >1000 kW

• Incentive rate – 3.5 cents per annual Net kWh generated

• Payment period of 1 to 5 years

Systems <1000 kW

• Incentive rate - 5 cents per annual Net kWh generated

• Payment period of 1 year preferred but may be up to 5 years

Caps

• $500,000 cap per project per year

Source: “AEP Ohio CHP and WER Program,” Michelle Cross, AEP Ohio, May 24, 2017

CHP Project Development StepsCHP TAP Technical Assistance

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• High level assessment to determine if site shows potential for a CHP project

o Quantitative Analysis• Energy Consumption & Costs

• Estimated Energy Savings & Payback

• CHP System Sizing

o Qualitative Analysis• Understanding project drivers

• Understanding site peculiarities

DOE TAP CHP Screening Analysis

Annual Energy Consumption

Base Case CHP Case

Purchased Electricty, kWh 88,250,160 5,534,150

Generated Electricity, kWh 0 82,716,010

On-site Thermal, MMBtu 426,000 18,872

CHP Thermal, MMBtu 0 407,128

Boiler Fuel, MMBtu 532,500 23,590

CHP Fuel, MMBtu 0 969,845

Total Fuel, MMBtu 532,500 993,435

Annual Operating Costs

Purchased Electricity, $ $7,060,013 $1,104,460

Standby Power, $ $0 $0

On-site Thermal Fuel, $ $3,195,000 $141,539

CHP Fuel, $ $0 $5,819,071

Incremental O&M, $ $0 $744,444

Total Operating Costs, $ $10,255,013 $7,809,514

Simple Payback

Annual Operating Savings, $ $2,445,499

Total Installed Costs, $/kW $1,400

Total Installed Costs, $/k $12,990,000

Simple Payback, Years 5.3

Operating Costs to Generate

Fuel Costs, $/kWh $0.070

Thermal Credit, $/kWh ($0.037)

Incremental O&M, $/kWh $0.009

Total Operating Costs to Generate, $/kWh $0.042

CHP Project Resources

Good Primer Report

www.eere.energy.gov/chp

DOE CHP Technologies

Fact Sheet Series

www.energy.gov/chp-technologies

CHP Project Resources

DOE Project Profile Database

(100+ case studies)

energy.gov/chp-projects

DOE Database of Incentives & Policies (DSIRE)

www.dsireusa.org

CHP Project Resources

DOE CHP Installation Database

(List of all known

CHP systems in U.S.)

Low-Cost CHP Screening and Other Technical Assistance from

the CHP TAP

energy.gov/chp-installs energy.gov/chp-contacts

o CHP is a proven technology providing energy savings, reduced emissions, and opportunities for resiliency

o Resources in Ohio are available to assist in developing CHP Projects

o Contact the US DOE Midwest CHP TAP to perform a CHP Qualification Screening and/or receive other Technical Assistance

Summary and Next Steps

Thank YouCliff Haefke Graeme MillerDirector Policy Analyst(312) 355-3476 (312) 996-3711chaefk1@uic.edu gmille2@uic.edu

A program sponsored by A program at

www.MidwestCHPTAP.org

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Project Snapshot:Energy Savings

Medina High School

Medina, OH

Application/Industry: High School

Capacity (MW): 125 kW

Prime Mover: Reciprocating Engine

Fuel Type: Natural Gas

Thermal Use: Heating, Hot Water

Installation Year: 2014

Energy Savings: $82,944/year

Highlights: The engine at Medina High School will be able to run 48,000 hours before needing replacement and has an eight year payback. It will offset the 1 million kilowatts of electricity the school purchased each year.Source: http://www.cleveland.com/medina/index.ssf/2014/02/medina_city_school_district_tu.html

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Project Snapshot:Opportunity Fuels

Lima Wastewater Treatment PlantLima, OH

Application/Industry: Wastewater Treatment

Capacity (MW): 130 kW

Prime Mover: Microturbines

Fuel Type: Biomass

Thermal Use: Heat for the Digestion Process

Installation Year: 2012

Highlights: The CHP project was determined to provide:• Best avenue for reductions of

V.O.C.’s• Best return of electrical energy• Best capture of the heat for use in

the WWTP

Source: http://www.puco.ohio.gov/puco/index.cfm/industry-information/industry-topics/combined-heat-and-power-in-ohio/chp-case-studies-voices-of-experience-workshop-june-20-2012/#sthash.MRLZAQNR.dpbshttp://gemenergycapstone.com/wp-content/uploads/chp-ohio-casestudies-120913.pdf

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Project Snapshot:Addressing Coal Emissions

Kent State UniversityKent, OH

Application/Industry: University

Capacity (MW): 12 MW

Prime Mover: Gas Turbine

Fuel Type: Natural Gas

Thermal Use: Heating and cooling

Installation Year: 2003, 2005

Emissions Savings: Reduces CO2 emissions by 37,000 tons/year

Highlights: The CHP system at Kent State won an EPA Energy Star Award in 2007. The system, which can run on natural gas or diesel if necessary, has been able to achieve nearly 75% efficiency, and it uses 19% less fuel than a traditional separate heat and power system.

Source: https://mysolar.cat.com/cda/files/2111485/7/dschp-ksu.pdf40

Project Snapshot:Replacing 50 Year Old Boilers

Kraton PolymersBelpre, OH

Application/Industry: Chemical Manufacturing

Capacity (MW): 8 MW

Prime Mover: Steam Turbines

Fuel Type: Natural Gas

Thermal Use: Process Steam

Installation Year: 2015

Testimonial: “Combined Heat and Power has exceeded our expectations. We’re saving money, operating cleaner and more efficiently, and positioned to be more competitive going forward.”- Scott Oran, Plant Manager, KratonPolymers

Source: http://alliance4industrialefficiency.org/resources/kraton-case-study/

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