Bruce Hedman, Institute for Industrial Productivity
September 16, 2014
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2
About the Institute for Industrial Productivity
The Institute for Industrial
Productivity provides industry and
governments with the best energy
efficiency practices to reduce energy
costs and prepare for a low carbon
future.
• Sharing best practices, including
policy experience, and providing
access to a network of
international experts.
• Developing original research,
analysis and databases.
• Bridging the gap between
government policy and industry
implementation.
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 3
What Is Combined Heat and Power?
• CHP is an integrated energy system that:
• Is located at or near a factory, building or campus
• Generates electrical and/or mechanical power
• Recovers waste heat for
 heating,
 cooling or
 dehumidification
• Can utilize a variety of
technologies and fuels
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 4
What Are the Benefits of CHP?
• User - Reduced energy costs and improved
power reliability
• Environment – Reduced energy use and lower
emissions (greenhouse gases, NOx, SOx, CO and
PM)
• Public Safety – Keep critical infrastructure
operating and support the grid in times of
emergency
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 5
Efficiency Benefits of CHP
Source: Oak Ridge National Laboratory
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 6
CHP Value Proposition
Category
10 MW CHP
10 MW PV
10 MW Wind
85%
22%
34%
74,446 MWh
19,272 MWh
29,784 MWh
Annual Useful Heat
103,417 MWht
None
None
Footprint Required
6,000 sq ft
1,740,000 sq ft
76,000 sq ft
Capital Cost
$20 million
$45 million
$24 million
316,218 MMBtu
198,563 MMBtu
306,871 MMBtu
42,506 Tons
17,824 Tons
27,546 Tons
Annual Capacity Factor
Annual Electricity
Annual Energy Savings
Annual CO2 Saving
Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012
Based on:
10 MW Gas Turbine CHP - 28% electric efficiency, 68% total efficiency
Displaces National All Fossil Average Generation (eGRID 2010 ) 9,720 Btu/kWh, 1,745 lbs CO2/MWh, 6% T&D losses
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 7
CHP Is an Important U.S. Energy Resource
• 83.3 GW of installed CHP at over
4,220 industrial and commercial
facilities
• 86% of capacity in industrial
applications
• 70% of capacity is natural gas
fired
• Avoids more than 1.8 quadrillion
Btus of fuel consumption annually
Source: CHP Installation Database, March 2014
• Avoids 241 million metric tons of
CO2 compared to separate
production
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 8
CHP is Used at the Point of Demand
Source: CHP Installation Database
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 9
The Potential for Additional CHP
Development Is Significant
Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 10
Federal Example – National Institute of Health
•
75 buildings, 300 acres, 8 million ft2
laboratories, hospitals rooms, teaching
facilities and offices
•
CHP system installed 2004
– 23 MW natural gas combustion
turbine,
– 180,000 lb/hr steam for space heating
and cooling, and lab support
•
$62 million project
– $16 million for energy efficiency and
energy management systems upgrades
• Annual energy savings:
– 640 billion Btus
– $4 million
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 11
Federal Example – Jesse Brown VA Medical Center
•
Veterans Administration Hospital,
Chicago, IL
– 200 beds, 1,800 staff, 62,000 local vets
•
CHP system installed 2003
– 3.4 MW natural gas combustion turbine
• 100% winter peak
• 90% summer peak
– 50,000 lb/hr steam for space heating
and cooling, and sterilization
•
Enhanced Use Lease Project
– ESG designed/built & maintains the
Energy Center
– Estimated savings to VA of $25 million
over 25 years
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 12
Federal Example – U.S. Coast Guard Shipyard
•
Curtis Bay (Baltimore), Maryland
–
–
–
–
•
Builds, repairs, renovates ships
112 acre site, 110 years old
Houses other USCG tenants
Annual budget of $88 million
CHP System installed 2009
– Four 1 MW low NOx recip engines
– Fueled by landfill gas (1.5 mile pipeline)
– 2000 lb/hr 95 psi steam from each engine
•
DOE ESPC Contract
–
–
–
–
Ameresco
Project offsets 18,000 MWh and 71,000 Dthrm
Energy security was an important driver
Achieved entire DHS renewable energy goals
through 2012
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 13
CHP Market Drivers
• Changing natural gas
outlook
8,000
• Growing recognition of
• Opportunities created
by:
• Environmental
6,000
Capacity (MW)
CHP benefits by state
and federal
policymakers
7,000
5,000
4,000
3,000
2,000
1,000
0
pressures
• Growing interest in
grid resiliency
Source: ICF International
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 14
CHP Market Drivers
• Changing natural gas
outlook
8,000
• Growing recognition of
• Opportunities created
by:
• Environmental
6,000
Capacity (MW)
CHP benefits by state
and federal
policymakers
7,000
5,000
4,000
3,000
2,000
1,000
0
pressures
• Growing interest in
grid resiliency
Source: ICF International
Over 3,000 MW announced/under construction
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 15
Hurdles to CHP Deployment
• Financial uncertainty
• CHP cost and performance uncertainty
• Regulatory uncertainty
• Utility uncertainty
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