CONSULT + ENGINEER + CONSTRUCT © All Rights Reserved Grundfos High Performance Building Summit...

CONSULT + ENGINEER + CONSTRUCT

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GrundfosHigh Performance Building Summit

District Energy Activities in the US

CREATING EXCEPTIONAL ENVIRONMENTS

November 3, 2010

Steve Tredinnick, PEVice President/Energy Services DivisionSyska Hennessy Group


www.syska.com CREATING EXCEPTIONAL ENVIRONMENTS

AgendaAbout Syska and other pertinent things ……..District Energy in Wisconsin

District Energy in the US –

Sample Success Stories – Past and Present

Washington DC

Consolidated Edison – New York

District Energy St. Paul

Cornell University

Others

Current and Future Projects

Current Energy Policy Impact on District Energy

Agenda


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Section DividerAbout Syska



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About Syska

80+ years of engineering history

Globally recognized leader in energy

infrastructure

3 year presence in Wisconsin

Energy and central plants specialists

experienced as prime consultants

Large, national firm with local presence and

national resources 530+

Extensive experience with large central plants

including cogeneration projects

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Dallas, TX

Atlanta, GA

Jacksonville, FL

Washington, DC

Charlotte, NC

Richmond, VA

New York, NY

Princeton, NJ

Cambridge, MA

Chicago, ILSan Francisco, CA

Los Angeles, CA

San Diego, CA

Seattle, WA

Where We Are

Las Vegas, NVAFFILIATE

Houston, TX

Washington, DC

San Francisco, CA

Los Angeles, CA

San Diego, CA

Las Vegas, NVAFFILIATE

Dallas, TX

Chicago, IL

Atlanta, GA

Jacksonville, FL

Charlotte, NC

Princeton, NJ

Cambridge, MA

New York, NY

Richmond, VA

Madison, WI

Where is Syska?


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Chicago, IL

Where is Wisconsin?


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Something Special from Wisconsin?


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Section DividerDistrict Energy in Madison



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District Energy in Madison, WisconsinUniversity of Wisconsin - Campus Map

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District Energy in Madison, WisconsinUniversity of Wisconsin

~22,000,000 square foot campus

+40,000 students

Over 220 buildings

Served by 3 plants:

Charter Street Heating Plant (c.1959) 800,000 #/hr steam (comb. gas & coal) 26,000 tons chilled water (steam & electric) 9 MWe Steam Turbine electricity production

Walnut Street Heating Plant (c. 1973) Gas boilers totaling 600,000 #/hr steam 18,000 tons chilled water

West Campus Cogeneration Facility Joint Venture with Madison Gas & Electric

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District Energy in Madison, WisconsinUW – West Campus Cogeneration Facility

West Campus Cogeneration Facility

(WCCF) Combined Cycle Power Plant

500,000 #/hr steam from gas 2 combustion

turbines with duct firing

+20,000 tons chilled water (+30,000 tons in

future)

150 MWe Electricity supplied to Madison area

grid Campus must purchase power from the grid

$180M Facility Commissioned July 2005

Fuels – natural gas and fuel oil

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District Energy in Madison, WisconsinUW - Charter Street Heating Plant

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District Energy in Madison, WisconsinUW - Walnut Street Heating Plant & WCCF

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District Energy in Madison, Wisconsin

Capitol Heating & Power Plant Plant constructed in 1908 to serve capitol

and then expanded to serve 10 other state

buildings Boiler Plant (425 PSIG/700°F Steam):

Initially Coal and now being retrofitted to all

gas-fired boilers Winter load is 55,000 #/hr Summer load is +75,000 #/hr

Cogeneration – (2) Murray 10 PSIG Back Pressure 1.5 MW

Steam Turbine Generators (1999)

Cooling Plant Electric and single affect absorption

chillers

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District Energy in Madison, WisconsinCapitol Heat and Power Plant

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Isthmus Combined Energy (ICE) Plant• DE Study for State of Wisconsin•HP Steam to UW Campus and LTHW for downtown


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Section DividerDistrict Energy in The US



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US District Energy Industry Capacity

* Based on systems reporting 2005 data to EIA Survey

# of Systems Reporting

Customer Building Space Served (GSF)

Heating Capacity

(MMBtu/hr)

Cooling Capacity

(Tons)

Electrical Generation (CHP MWe)

Downtown Utilities

85 1,898,040,000 49,239,000 1,082,355 950

Campus Energy Systems

330 2,489,210,000 82,107,200 1,855,545 2,200

2005 Totals 415 4,387,250,000 131,346,200 1,937,900 3,150


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CHP as a Share of Total National Power Generation

Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008).

The global average is just 9%


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Section DividerA Brief History of District Heating in the US



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Brief History of District Energy in US

District energy actually has a longer history in

the US than it does in Denmark 1853 - US Naval Academy 1877 was the first commercial district

heating system in Lockport, NY. Developed by Birdsill Holly – “founder of

district heating” 1880 – Denver, Colorado. The oldest

commercial district heating system still

operating in the world

1903 – Frederiksberg. First District Heating

Project in Denmark

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Brief History of District Energy in US

Since then the US has many systems mostly

in northern urban areas for district heating and

southern urban areas for district cooling

Most larger universities have both heating and

cooling systems where there are denser

heating and cooling loads and there is

common ownership between plant and the end

user.

Consolidated Edison in New York City runs the

world’s largest district steam system and

Chicago (Thermal Chicago) has a district

cooling system that rivals the largest Middle

Eastern projects at 100,000 tons.

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Section Divider

Sample Existing “Established” Projects


• Washington, DC• New York, NY• St. Paul, MN• Cornell University• UT - Austin• LAX


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Downtown System – Washington DC

• Chilled water & steam service

• Very high reliability (99.9998)

• Critical loads (Federal Govt)

• Recently added 17,000 tonsand 10 MW CHP


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Downtown District Energy SystemsNew York City – Con Edison Steam System

• World’s largest steam system – 1850+ customers

• Seven (7) generating facilities supply over 102 miles of underground piping

• Customers use approx. 600,000 tons of steam-driven chillers, displacing 500 MW peak electric demand on grid

• Combined heat and power provides 60% of total annual steam


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Con Edison, NYC – 660 MW CHPEast River Power Plant


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Section DividerDistrict Energy St. PaulSt. Paul, Minnesota



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District Energy in St. Paul, Minnesota


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Bringing “Green Energy” to St. Paul


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District Energy St. Paul - Cooling

• Chilled-water demand started at 2,900

tons and has increased to 29,000 tons

• Serving more than 60% of the downtown

area – approximately 19.3 million sq. ft.

and 98 buildings

• The chilled water system includes 6-

million-gallons of storage capacity

• The thermal storage reduced peak-

electric demand by as much as 9,000

kilowatts


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• Largest HW district heating in North

America

• Serves more than 80 percent of the

downtown area - over 31.7 million sq. ft.

and 187 buildings

• Eliminated more than 150 smokestacks

• Reduced sulfur dioxide and particulate

emissions by more than 60 percent

• Twenty-five years of outstanding

reliability and rate stability

District Energy St. Paul - Heating


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District Energy St. Paul - Cogeneration

• 25 MW of electric and 65 MW of thermal capacity

• Renewable, clean, urban wood waste

• Double the efficiency of conventional electricity-only power plants

• Greenhouse gas CO2 reduced by 280,000 tons per year


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Section Divider

Recent US District Energy Activity

Cornell UniversityUniversity of Texas – Austin

Los Angeles International Airport (LAX)



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Cornell University - Lake Water Cooling

22,000 students

16,000 Tons Capacity - $58,000,000Lake source water: 39-41º FLake return water : 48-56º FCampus loop supply/return : 45º - 60º FLake source intake pipe: 10,400 ft long,

250 ft deepCampus S/R loop pipe: 12,000 ft

Benefits: • CO2 emissions cut 56 million #’s/yr• Reduced cooling electricity by 87% -

cutting 20 million kWh/yr• Sulfur oxides cut 654,000 lbs/yr• NOx reduced 55,000 lbs/yr


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• Commissioned December 2009• 30 MW and 300,000 PPH• Produce 180 GWh/yr and

750,000 klbs/yr• Offset indirect emissions• Reduce coal usage by 50%

• Reduce campus CO2 20% (50,000 tons/yr)

• Provide efficient steaming capacity

• Electric reliability• Fuel flexibility (HP gas line)• Dual fuel capability

– Future liquid biofuel option

Cornell University - Cogeneration


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UT Austin – District Energy System


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UT Austin – District Energy System

• Self sufficient in serving 100% power, heating and cooling requirements for 16 million SF and 150+ buildings (“off the grid”)

• +50,000 students

• Power Plant (by 2010)

• 137MW of on-site Combined Heat and Power (60 MW Peak)

• 1.2 million lb/hr of steam generation (300K Peak)

• Chilled Water (by 2010)

• 48,000 tons capacity in 4 plants (32K Peak)

• 4 Million Gallon/39,000 ton-hr TES Tank

• 6 miles of distribution tunnels


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Project Features (30% BD):

• 2- 4.4MW Gas Turbine Cogeneration

• 22,800 Ton Hybrid Chiller plant

• 90,000 PPH HRSG Steam serving chillers and Med. Temp. Hot Water System

• 15,500 Ton-hrs. Underground TES

• 4,500,000 square feet

Completion Date:

• 2013 Estimated

Construction Cost:

• +$250,000,000

Challenges:

• Phasing of 70+ piping utilities

• HVAC recommendations to improve plant efficiency.

• New Energy Transfer Stations optimizing CHW & HW delta T

LAX – Los Angeles, California


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Other Recent Activity

Stanford University – $250 Million campus conversion from steam to hot

water distribution Using geothermal resources and large centrifugal heat

pump technologies

District Energy St. Paul – Adding solar thermal to supplement the HW system

City of Montpelier Vermont – Biomass District Heating RFP in August 2010

University of Wisconsin – Madison: Adding new CFB boiler for burning biomass in lieu of

coal

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Section Divider

What is the Future of District Energy in the US?

Current US Energy Legislationthat should help



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• Current Tax Exempt Bonding only available for distribution piping

• Existing Production Tax Credits (PTC) for electric generation• Existing Federal investment tax credits (ITC)

– 30% for solar, fuel cells and small wind projects; – 10% for geothermal, microturbines and CHP (<50MW)

• Vary by State:– Just this week, the State of North Carolina implemented a

35% investment tax credit for CHP up to $2,500,000• Other States that have some increased incentives and

funding available:– New Jersey– New York– Connecticut

Current Incentives


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• Bill currently introduced to legislature July 2010– Then goes to Senate for voting – Then goes to House for voting– Then signed by President

• Production tax credits for thermal energy derived from renewable or recycled sources

• Expand tax exempt financing to include district energy plant as well as distribution piping

• Amend authorization for Title 471 in EISA (Energy Independence and Securities Act) 2007 and provide appropriation of $500 million per year

• Expand availability of federal loan guarantees to include production and distribution of recycled and renewable thermal energy

Thermal Renewable Energy and Efficiency Act of 2010 (TREEA)


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Thermal energy production tax credit (PTC) • Expands current PTC (USC Section 45) to production

of renewable thermal energy• Geothermal and “closed-loop” biomass get $0.021/kWh

($6.15/MMBtu)• Open-loop biomass, landfill gas, and municipal solid

waste get $0.011/kWh ($3.08/MMBtu)• Impact: increases after-tax cash flow, thereby

increasing return on investment to attract equity investment


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Tax-exempt bonding • U.S.C. 26 Section 142 currently provides for Exempt

Facility Bonds for district energy distribution systems• TREEA expands eligibility to district energy plant and

building connection assets • Plant investments provide opportunities for increased

efficiency, use of renewable energy and reduced carbon emissions

• Impact: reduces interest rate, thereby cutting debt service costs and increasing financial feasibility



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• So if TREEA passes, is it the last piece of the puzzle or the tipping point for district/community energy in the US?– Who knows, check back later– Just because a bill in Congress

passes and is signed by the President doesn’t mean it is funded

– Funds are apportioned, not appropriated, that is the next step• Essentially issued an empty

check book• Stay tuned!



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Section DividerThank you!!Questions??


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