Opportunities for On-Site Industrial
Renewable Energy
David Sjoding
Northwest Clean Energy Application Center
April 21, 2010
Northwest Clean Energy Application Center
About the Center
• A multi-state effort – AK, ID, MT, OR & WA
• WSU Extension Energy Program serves as lead
• 100 plus Regional CHP projects totaling over
1,300 MWc
• 94% industrial projects
• Technical assistance information, reports and
case studies
• Problem solving & trouble shooting
• Website www.northwestcleanenergy.org
• Support of regional & state CHP initiatives
• CHP, district energy and waste heat recovery
Alaska • Idaho • Montana • Oregon • Washington
Industrial Energy Efficiency and Renewables Fit Together
A major national effort is underway
• 25% Reduction in energy intensity by 2017
• Goal of U.S. Department of Energy Industrial
Technologies Program
• Goal of an 18% reduction in carbon intensity by 2018
• Save Energy Now – Reduce energy intensity by 25%
in 10 years – Lots of state energy office support
Alaska • Idaho • Montana • Oregon • Washington
Industrial Energy Efficiency and Renewables Fit Together
A major national effort is underway
(cont.)
• Energy Intensity – Accommodates production
variation
• Excellent fit for CHP, district energy and waste heat
recovery
• Especially Renewable CHP
• http://www1.eere.energy.gov/industry/
Alaska • Idaho • Montana • Oregon • Washington
CHP - Combined Heat and Power
National Industrial CHP Goals
• 241 GW by 2030 – 85 GW Today
• 20% of U.S. electricity capacity for CHP – 9% today
• CO2 Reduction of 848 MMT – 248 MMT today
• Equivalent to 154 million cars off the road – 45 million
today
• How does this work? – CHP is very efficient 60-90%
• It exceeds power production only systems
• Needed policy and incentive changes vary by state and
region
http://www1.eere.energy.gov/industry/distributedenergy/
Alaska • Idaho • Montana • Oregon • Washington
Where does CHP fit?
Both sides of the equation
• Is it an energy efficiency measure - Yes
• Washington Energy Independence Act (I-937)
• High efficiency CHP is included (33% thermal)
• Is it renewable? Yes, if from a renewable energy source
• A major opportunity for pulp and paper/forest products
• Is it its own third category? Sometimes
• Northwest Power Act treats CHP as a third priority
behind energy efficiency and renewables
Alaska • Idaho • Montana • Oregon • Washington
Where does CHP fit?
Both sides of the equation
(cont.)
• Waste heat recovery fit? – Hmm, energy efficiency
• Organic Rankine Cycle – An emerging technology for
the Northwest
• Seattle City Light with Nucor Steel kudos
Alaska • Idaho • Montana • Oregon • Washington
Renewable CHP
• Pulp and Paper/Forest Products
• Yields a competitive advantage
• Rough & Ready Lumber, Cave Junction – 1.28 MW
• Simpson Tacoma Kraft – 60 MW
• Reduce the Moisture! – Biomass Drying & Dewatering for
CHP - Moisture reduces efficiency
• Ensure you have the wood waste supply – If you own it,
you control it
• Washington – 142 MW of CHP ARRA Stimulus Projects –
Most are wood waste CHP
Alaska • Idaho • Montana • Oregon • Washington
Renewable CHP
• Food processing, WWTFs, dairies, high solids composting
• Anaerobic digesters
• Ensure the technology/design works
• Northern Climate precludes some designs – Insulate
• Scrub the biogas – Be kind the genset and use the H2S
• Parasitic load concerns
• Good history & Bad
• Multiple revenue streams
• Vander Haak Dairy in Lynden, WA – 9 Revenue Streams
• No longer any reason for technology problems
Alaska • Idaho • Montana • Oregon • Washington
CHP Project Economics
Many options to improve the economics
• Buy all, Take all power purchase arrangements
• CHP Wheeling – Need willing utilities – Sierra Pacific
• Additional co-products
• Tradable Renewable Energy Credits
• Selling carbon credits – See NW CEAC report
• Utility ownership co-location – Amalgamated Sugar in Nampa
• Integrated resource plans for base case
• Fulfilling RPS & EPS requirements
• Selling carbon credits – See NW CEAC report
Key Point: The days of simple “What’s your power rate?”
calculations are gone
Alaska • Idaho • Montana • Oregon • Washington
CHP Project Economics
And more options to improve the economics
• State incentive grants and loans
• Federal grants and loans – USDA Rural Development, U.S. &
ARRA
• Tax reduction incentives
• Utility incentives
Key Point: Work with the project economics to get a win!
Alaska • Idaho • Montana • Oregon • Washington
CHP Policies & Incentives
Kudos to Oregon
• An amazing set of policies and incentives
• A key was the OPUC report: Distributed Generation in Oregon:
Overview, Regulatory Barriers and Recommendations
www.northwestcleanenergy.org See Policy - Oregon
• Standby rates, PURPA, net metering, decoupling, IRPs and
interconnection
• Plus BETC, Energy Trust of Oregon, Climate Trust
• Comparative OR study by Bill Carlson: “Biomass Power as a Firm
Utility Resource: Bigger Not Necessarily Cheaper”
• Interconnection grades: Oregon a ‘B’, Washington a “D” – Source is
“Freeing the Grid” by IREC
Alaska • Idaho • Montana • Oregon • Washington
Contact information
• Northwest Clean Energy Application Center
Dave Sjoding
(360) 956-2004
sjodingd@energy.wsu.edu
www.northwestcleanenergy.org
• Regional list of Industrial Qualified Specialists – See
www.northwestcleanenergy.org
• Regional State Energy Office Industrial Programs
Christine Love
Industrial Service Project Manager
(360) 956-2172
epis@energy.wsu.edu
www.energy.wsu.edu See Industrial Services
Alaska • Idaho • Montana • Oregon • Washington