Borough of South River, New Jersey Alt Alternative ti Energy E & Conservation C ti Committee C itt Energy Production Analysis Crea ing Clean/Green Energy Independence July 23th., 2009 Version 1.6.5 Purpose • Investigate, g , evaluate and recommend energy gy p production solutions to the Borough Council for municipal, commercial and residential use. 2 Alternative Energy & Conservation C Committee i M b Members • • • • • • • • William England, g , Chairman – Joe Hranowski, Vice Chairman Gordon Anthony, Secretary James Maiello Marilyn Melony Ken Semanovitch S William Synek Jim Hutchison Hutchison, Borough Council Representative 3 South River Borough’s E Energy Production P d ti Environment E i t • • South River, unlike most municipalities in New Jersey, has its own electric utility that controls the electric distribution system within the Borough. South River is one of eight municipalities (Public Power Association of New Jersey, PPANJ) in New Jersey that control their electric distribution system. • Because South River does not generate it’s own electricit it m electricity must st p purchase, rchase on the open electric marketplace with the other members of the PPANJ, the electricity it needs to run the town. • Marketplace purchases are expensive and costs are unpredictable because of marketplace fluctuations at the time of contract renewals. 4 South River Borough’s E Energy Production P d i Environment E i Given: Gi • • • • The increasing demand for electrical power in NJ and the lack new NJ generation capacity in many years. The availability of a market for energy production (both in town and through the Public Power Assoc. of NJ). The potential revenue to the Borough from producing power for the electric grid. South River has a strong economic incentive to explore the generation of our own electric power. 5 South River’s E Energy Production P d i Options O i • • • • • • • • • Coal C Coal Gasification Natural Gas Nuclear Bio-fuels Tidal Geothermal Solar Wind 6 NJ Power Generation Cost Assumptions ($2008) $ (Source: NJ Energy Master Plan 2008) O e g t Overnight Installed Cost ($/kW) Min Max Variable Operation Ope at o & Maintenance Cost ($/MWh) Min Max Fixed ed Operation Ope at o & Maintenance Cost ($/kW-yr) Min Max Heat Rate ate (MMBt u/kWh) Capacity Factors - Min Conventional Coal $2,300 Gasified Coal -Integrated Gas Combined Cycle (IGCC) Advanced Combined Cycle (Gas & Steam) Gas Turbine $3,000 $900 $600 $2,800 $4,500 $1,050 $800 $3.50 $6.50 $2.00 $3.50 $5.50 $7.50 $3.00 $6.00 $24.00 $35.00 $6.50 $6.50 $35.00 $45.00 $13.00 $8.50 9,000 Determined by model 8,350 Determined by model 6,875 Determined by model 10,750 Determined by model Determined by model Nuclear $4,500 $7,000 $0.65 $1.50 $80.00 $120.00 10,400 Combined Heat & Power (CHP) (3-25 MW)** w/out Chillers $1,000 $1,500 $4.00 $6.50 $30.00 $45.00 10,000 80% 7 NJ Power Generation Cost Assumptions ($2008) $ (Source: NJ Energy Master Plan 2008) Overnight Installed Cost ($/kW) Variable Operation & Maintenance Cost ($/MWh) Fixed Operation & Maintenance Cost ($/kW-yr) Heat Rate (MMBt u/kWh) Capacity Factors Min Max Min Max Min Max - Min Combined Heat & Power (CHP) (3-25 MW)** w/ Chillers $2,000 $2,000 $4.00 $6.50 $30.00 $45.00 10,000 80% Wind On-shore $2,000 $2,500 $1.00 $2.00 $30.00 $45.00 n/a 32% Wind Off-shore $3,100 $4,100 $1.00 $2.00 $50.00 $100.00 n/a 34% Biomass $2 500 $2,500 $3 500 $3,500 $2 00 $2.00 $4 00 $4.00 $50 00 $50.00 $60 00 $60.00 14 250 14,250 85% Solar $5,000 $8,000 $0.00 $1.00 $11.00 $12.00 n/a 13.5% 8 Natural Gas Advantages: • • • Natural gas is the cleanest of the carbon based fuels. While coal is less expensive, the lack of environmental support for new coal based power generation makes it not feasible in New Jersey. Major Transco Gas Line runs through Dep’t Dep t of Public Works property on Ivan Way. Ivan Way location on South River advantageous for power plant operation and cooling. • • • Five acre site adequate for a small power plant footprint. South River has a relatively small 24MW electrical system. Significant revenue potential for the borough through the sale of electricity into the grid. Natural Gas plentiful in North America limiting potential for shortages over the next 25 years - the average life lif off a plant. l t 9 Natural Gas Advantages: g • • Membership in the Public Power Association of New Jersey (consortium of 8 municipalities that own their own electric utilities) provides market for energy generation and potential borrowing capacity to fund construction. t ti A major power company approached South River last year about constructing a plant on our Ivan Way site. South River was one of the two sites identified in New Jersey for a plant plant. • Advanced Combined Cycle (Gas & Steam) or combined heat and power technology has potential to significantly increase operating efficiency and lower costs. 10 Natural Gas Disadvantages: • • • • NIMBY concerns of the residents. Some residents may fear the effect a power plant would have on property values and public safety. Natural Gas, although plentiful in North America, is a diminishing resource that could result in shortages and spikes in the cost to produce the electricity. Regulatory approval for such a plant may be difficult. Federal carbon tax proposals may make natural gas power plants less fi financially i ll attractive. tt ti • South River and it’s partners in the Public Power Association of NJ, may have difficulty raising the p to construct the p power p plant. capital 11 Natural Gas Disadvantages: • • South River and it’s partners in the Public Power Association of NJ would have to partner with a power company, or hire a strong consulting firm to assist in the regulatory approval, construction and operation of a power plant. This reduces the potential profit from this plant to the Borough and the Association. The Department of Public Works would have to be relocated to make room for the new power plant. 12 Natural Gas Conclusion: • South River administration should work with other members of the Public Power Association of NJ to explore the feasibility of working with a major j utility y or themselves to construct a g gas fueled electric p power plant on the Ivan Way property. 13 Micro-Nuclear Micro Nuclear Power Basics • Small reactor, self-contained in a cylindrical enclosure 1.5 meters in diameter (about the size of a residential hot tub). • Unit is encased in concrete containment shell buried completely underground and dug up when refueling is indicated (5-10 years). • Entirely self-regulating. Maintains thermal equilibrium at maximum operating temperature. • Meltdown is impossible because reactor has a negative temperature of reactivity. Above 800 degrees Celsius, the moderator decomposes and the reaction stops. • No maintenance within the containment is necessary by end-user. 14 Micro-Nuclear Micro Nuclear Power Basics • Power generation is 70 megawatts thermal and 25 megawatts electric using i external t l steam t tturbine bi and d generator. t • Fuel is uranium metal enriched to ~5% U235, civil grade, solid phase, granular. This is essentially enriched uranium metal that has absorbed a large amount of hydrogen. hydrogen • The reaction is moderated by uranium hydride (UH3) formed by reaction of uranium granules with gaseous hydrogen within the core. • Passive heat pipes transfer heat from the reactor core to a heat exchanger containing circulating coolant outside of the core but within containment. • Heat H t can be b extracted t t d from f the th coolant l t to t generate steam and drive the turbine-generator. • Manufacturer: Hyperion Power Generation 15 Micro-Nuclear Power Simplified Diagram 16 Micro-Nuclear Micro Nuclear Power Advantages: • Clean energy. No greenhouse gases to contribute to climate change problems. p form of energy gy in terms of dollars and environmental • The cheapest impact. • Extremely reliable. Available 24/7, rain or shine, windy or calm. • Can provide electricity for about 20 20,000 000 average size American homes homes. The borough could benefit by providing excess power to the distribution grid. 17 Micro-Nuclear Micro Nuclear Power Disadvantages: • NIMBY concerns of the residents. Some residents may fear that a nuclear reactor is dangerous and would have a large negative effect on property values and public safety. safety • Reactor must still be licensed by the Nuclear Regulatory Commission. No guarantee license will be approved. • No performance record. First unit is planned for shipment in 2013. 18 Micro-Nuclear Micro Nuclear Power Financials: Fi i l • Expected cost of the unit is $25-30M. • It is difficult to calculate payback of a Micro-Nuclear power i t ll ti att this installation thi point. i t It would ld mostt likely lik l b be att least l t 10 years. 19 Micro-Nuclear Micro Nuclear Power Conclusion: • The status of this technology should be monitored. In the next few years, if successful Micro-Nuclear installations are demonstrated, South River should consider investing in this type of power generation. 20 Renewable Bio-Fuels Bio Fuels • • • • Foods, grasses, organic waste and food oils are made from hydrocarbons that when broken down and separated provide a renewable source of fuel that can be used to run micro-turbine generators to produce electricity or combustion engines. Unlike oil and natural gas this fuel is renewable. South River produced 7,438 tons of garbage waste in 2008 costing South River $419,078 in landfill tipping fees. Industry experts estimate that 30%-40% of the waste is food and other organic waste. 21 Common Renewable Bio-Fuels Bio Fuels • • Methane Gas - Produced from food, food oils and organic waste processed through an Anaerobic Digester. Enzymes breakdown the organic material and produce methane gas and other by-products. Biodiesel – Produced from food, organic waste and waste oils through a chemical process that separates the hydrocarbons and mixes them with alcohol producing biodiesel and glycerol. 22 Anaerobic Digestion • • • Use food and organic waste (grass clippings, wood chips, paper, agricultural waste waste, grease/oils and biocrops) to use as feed stock to process through a digester that creates biogas to sell as fuel or burn to create electricity. Appropriate for large commercial organizations (food processing companies, i universities, i iti and d municipalities i i liti th thatt h have access tto llarge quantities of organic waste. Private companies are approaching municipalities to create public/private p p p partnerships p to construct renewable-fuel g gas digesters. g 23 Anaerobic Digestion Process 24 Anaerobic Digestion Advantages For Municipalities: • • • • Processing municipal food and organic waste (30-40% of municipal waste) through a digester could eliminate or significantly reduce landfill tipping fees for this waste. The methane gas output could be sold directly or burned to run a turbine that provides electrical power for the town and heat for nearby buildings buildings. The Digester process also produces heat that powers a turbine that runs the digester itself. g also p produces a saleable fertilizer output. p The Digester • • Significant state grants are available to fund this process. y small and effective air Plant size is relatively purifying systems eliminate outside odors. 25 Anaerobic Digestion Disadvantages For Municipalities: • • • South River does not have the expertise to set up and run a plant without help from private industry. The cost of construction is significant; $1,000,000 to $7,000,000 depending on the size of the plant. P i t companies Private i generally ll provide id the th bulk b lk off the th fi financing i ffor llarger plants but also participate in the profits. South River must produce enough feedstock itself or gather feedstock p from other municipalities. • Residents would have to separate food and organic waste for either a separate pick-up or garbage trucks would have to be refitted to separate food and organic waste from other waste. • Regulatory approval needed for any plan (County, EPA). • Potential P i l llocall opposition i i to the h planned l d site. i 26 Anaerobic Digestion Implementation Options: • • Commercial Partnership – The Borough Boro gh partners with ith a commercial company specializing in setting up these plants. The private company can raise the entire capital and retain the profits, with the town receiving property tax revenue for the donated land and a reduction in tipping fees, or the town can provide funding (up to 49%) to also participate in the profits. Non-Commercial – The Borough finances and manages the process entirely on its own, retaining all the potential profit and assuming all the risk. 27 Anaerobic Digestion Advantages g of a commercial partnership: p p • • A strong Commercial partner provides the expertise to navigate the regulatory process and insures the cost effective construction and operation of the plant. The borough controls how much of the financial risk and participation in the profits (up to a maximum of 49%) it would like to take. 28 Anaerobic Digestion Disadvantages of a commercial partnership: • The minimum size plant a commercial provider needs to be profitable i a 10 is 10,000 000 tton ffacility. ilit Thi This plant l t size i requires i ffood d and d organic i waste generated by 40,000 people. Since South River’s population is only 15,000, we would need to coordinate any plant development with a neighboring town so we could guarantee the feedstock supply. • Initially, we hoped to locate the plant in South River. However, to run a gas digester plant we need a minimum of three acres of available land. Unfortunately, after significant investigation over the last year, South River only has 2.1 acres of available land for commercial purposes. • Participation with a commercial enterprise eliminates the possibility of the borough raising tax free capital. 29 Anaerobic Digestion Advantages of a non-commercial initiative: • • • The technology for this process is not overly complicated and could be purchased. There are smaller digesters that could be purchased that could handle the waste output generated by South River alone alone. A 5 5,000 000 ton facility could process the food and organic waste of a 15,000-20,000 person community. Without the need to generate a profit for the private partner breakeven points are significantly reduced. • • Without a commercial partner the borough can raise i ttax free f capital. it l A smaller plant means a smaller footprint that may fit into our available land. 30 Anaerobic Digestion Disadvantages of a non-commercial initiative: • A consultant may have to be hired to help the town through this project project. This lack of expertise in constructing and running this type of plant could result in costly construction over runs or lower production output. • South River may have difficulty raising the capital to construct this facility. 31 Anaerobic Digestion Financials: • • The consultant we spoke with concerning a private/public partnership indicated that a 10,000 ton facility would generate income, including tipping fees, of $2,000,000 to $3,000,000. With operating margins of 25% - 40% it would take four to ten years to payback the initial investment depending on the size of the plant, cost of capital and other factors. 32 Anaerobic Digestion Conclusions: • • With all the limitations of a commercial partnership and space availability i issues, b building ildi a llarge plant l t iin S South th Ri River d does nott appear ffeasible. ibl However, it may be very cost effective for the Borough to build a noncommercial small plant to handle it’s own organic waste and possibly g g town. that of a small neighboring 33 Biodiesel • • • Clean burning alternative fuel made of renewable resources (waste vegetable oil, plant oils, animal fats, etc) In its pure form, biodiesel contains no petroleum, but it can be blended with petroleum diesel Not the same as ethanol, and is not raw vegetable oil 34 Biodiesel Advantages: g • • • Biodiesel blends can be used in most diesel engines with little or no modification Produces less greenhouse gas (carbon dioxide, carbon monoxide, sulfur dioxide, and ozone-forming hydrocarbons) emissions Exhaust is cleaner than petro diesel exhaust (which contains over 30 different known carcinogenic chemicals) • More biodegradable than petro diesel • NJ has a biodiesel fuel rebate program for municipalities that offsets the higher cost of biodiesel • Can be used as a vehicle fuel and home heating oil • Smells more like french fries than diesel exhaust 35 Biodiesel Disadvantages: g • • • • Higher cost than petro diesel Cannot make our own from restaurant waste vegetable oil. Must be mixed with dangerous, highly caustic materials, processed, and stored Not as readily available as petro diesel May not perform as well in cold weather 36 Biodiesel Conclusion: • The Borough should investigate switching from using petrodiesel to biodiesel, and if there is a supplier nearby and we can apply for the rebate and make the switch. 37 Tidal • • Using the natural water currents of rivers, tides and manmade channels power companies channels, companies, like Verdant Power (pilot project in NYC) NYC), construct underwater turbines (similar to underwater windmills) that generate renewable and reliable clean energy that can flow directly into the p power g grid. The required river depth and current to use an underwater turbine according to Verdant Power is 35 feet with a current of at least 2 meters p per second ((6 ft/sec,, 4 knots). ) South River,, according g to Chief Bouthillette, is more than 35 feet deep. • Tidal turbines are assembled with internal yaw bearings which allow the turbines to pivot with the bearings, changing tide and capture energy for the majority of the day. 38 Tidal • • • Navigation aids mark the site of the turbines and they are boomed off to recreational activities activities, even though the tip of the underwater router is 5 to 7 feet below the river’s surface. Turbines are designed to be installed and operated unattended. The target service period is 2 years years, with an overhaul at 10 years years. On-site service involves only a switch-out (remove and replace) operation. Verdant Power’s NYC project assumes that 30 turbines would provide the electrical power for 1 1,000 000 homes homes. 39 Tidal Power Turbine 40 Tidal Advantages: • • • • Tidal Power produces clean green energy that saves our environment and will earn green energy credits. Simple modular turbine design makes installation relatively easy and power has lower upfront p capital p costs. cost effective. Tidal p Turbine systems have few moving parts and this decreases operation and maintenance costs. Systems are underwater and therefore are invisible from the shore and do not require dams, dams impoundments or major civil works, works they cause minimal public and environmental impact. 41 Tidal Advantages: • • • Water currents provide predictable, if not constant, source of renewable energy. It is anticipated that river-based systems will achieve 80-90% capacity factors, approximately, double those of wind and solar systems. A Accessible ibl generation ti near major j population l ti centers, t th thatt iis scalable l bl depending on the size of the river, also eliminates the need for transmission lines and thus is safer, more energy efficient and coste ect e effective. Low cost process based on automatic control and continuous, unattended operation. 42 Tidal Disadvantages: g • • • • New technology still in demonstration phase in New York City. Full commercialization of the process probably 3-5 years away. Multiple demonstration failures raises concerns about ultimate installation and maintenance costs. Small river space available in South River limits ability to produce large quantities of power through this source. P t ti l negative Potential ti environmental i t l iimpactt tto fi fish h and d bi birds d may result lt iin difficult regulatory approval. 43 Tidal Conclusion: • This emerging technology should be thoroughly researched in the next few years, and after successful installations in a number of other communities South River should consider investing in tidal power g generation. 44 Geothermal Basics • • Geothermal Heat Pumps (GHP) use liquid filled underground or underwater d b based d coils il and dab building ildi b based d conversion i h heat pump to access the relatively constant temperature of the earth to heat and cool homes and buildings. Using no fuel or conventional boilers and furnaces a geothermal heat pump uses electricity to move heat or coolness from the earth into buildings, with 40% to 70% less energy than conventional systems. 45 Geothermal Types of GHP Coil Systems 46 Geothermal GHP components Air-torefrigerant fi t coil Air filter Conditioned air (Supply) Fan Expansion valve Entering air Water-torefrigerant coil Reversing valve Water loop Compressor Heat recovery coil Power 47 Geothermal Advantages: g • • Initial installation is several times higher than a similar air source system but energy savings pay for system in 5-10 years. Maintenance costs are generally less as systems last 25 years for inside components and 50+ years outside for the ground loop. These savings are even greater for commercial and municipal buildings like schools whose traditional systems y need constant repair. p 48 Geothermal Advantages: • • • • • No above ground outdoor equipment. – Improved aesthetics – Reduced risk of vandalism Q i t operation. Quiet ti Reduced mechanical room space. Individual room control. Low source energy use and very low pollutant emissions emissions. • 30% Federal tax credit available for residential government offers g grants installations. NJ State g and incentives for businesses and municipal governments. 49 Geothermal Disadvantages: g • • • Not all locations suitable for geothermal, locations requiring vertical or horizontal bores may not have land suitable for drilling or excavation. Upfront costs for installing a new system ($5 ($5,000 000 - $12,000) $12 000) may make systems unaffordable. Many homes would require additional renovation to install the ductwork necessary for this type of system. system This could add significantly to the cost. 50 Geothermal Payback: y • • • Residential – three to eight years for most systems without tax credits. Commercial – two to three years without tax incentives or government grants. grants Municipal – two to three years without government grants. 51 Geothermal Conclusions: • • Excellent technology capable of producing significant (40% to 70%) long term heating and cooling savings for residential, commercial and municipal p buildings g in South River. Require a geothermal cost benefit analysis on any new construction or major renovation of Municipal, School, Commercial and Residential buildings g as a way y to encourage g energy gy reduction in the borough. g 52 Solar • • • Clean, renewable energy source, converts sunlight to electricity, which can be used directly or stored in batteries so that electricity is provided even on cloudy days or at night. Solar panels can be mounted on rooftops, on poles, or on the ground. Can be used for a variety of purposes, including: – Solar Hot Water Systems – Solar Electric Photo-Voltaic (PV) Systems – Solar Lighting • • NJ is second only to CA in solar energy production in the USA. New solar panel technology eliminates the requirement that panels face South. 53 Solar Advantages: • • • • After initial investment is recovered (varies depending on energy usage) usage), very low cost to operate and maintain. Many uses: heating water (household and pools), emergency backup power lighting, power, lighting etc. etc Requires no fuel, has no greenhouse gas emissions. Can be used in conjunction with other technologies (such as wind turbines) for electricity production . • Can be used to provide the electrical power needed by other energy conservation products (such as geothermal heating/cooling systems) • Federal and State financial incentives for Residential Commercial Residential, Commercial, and School solar installations (NJ excludes Solar Hot Water) 54 Solar Disadvantages: • • High initial cost of installation installation. Solar hot water system: $2000-4000 $2000-4000. Solar PV system: $8000-10,000 for a 1kW system. Depending on the type of installation, payback period can be long (10+ years for Solar PV) or short (3-4 years for Solar Hot Water). Water) Payback period also dependant on cost of fossil fuels, local climate, size of the system, type of structure being heated/powered, etc. • No (or little) power generated if there are several consecutive cloudy days or solar panels are dirty or snow covered. Can be offset through use of larger battery storage systems. systems • Large amount of area needed for solar panels. A 1kW system will generate 750-1600 kWh per year but requires about 100sq ft of installation area area. Note: 1 kWh is the power needed to light a 100 watt 55 bulb for 10 hours. Solar Potential Uses: Municipal p • • • • Security lighting for municipal parks/fields and facilities (esp. DPW) Street/Bridge lighting Supplemental emergency power for facilities and infrastructure (such as traffic lights) Hot water systems for municipal facilities and schools • As a power source for other energy production/conservation technologies (such as anaerobic digester, g micro turbines, and geothermal heating/cooling systems) 56 Solar Potential Uses: Residential/Commercial • • • • Outdoor/security lighting Water heating (whole building and pools) Backup power source (such as for fire/security systems) As a power source for other energy production/conservation technologies (such as micro turbines or geothermal heating/cooling systems) 57 Wind Power Basics • The conversion of wind energy into a useful form, such as electricity, using wind turbines. At the end of 2008, worldwide capacity of windpowered generators was 121.2 Gigawatts. Wind power produces about 1.5% of worldwide electricity use. 58 Wind Advantages: g • • • Wind energy is friendly to the surrounding environment, as no fossil fuels are burnt to generate electricity from wind energy. Wind turbines take up less space than the average power station station. Newer technologies are making the extraction of wind energy much more efficient. • Wi Wind d turbines t bi can b be a range off diff differentt sizes i iin order to support varying population levels. • When combined with solar electricity, this energy source is i greatt ffor developed d l d and dd developing l i countries to provide a steady, reliable supply of electricity. 59 Wind Disadvantages: g • • • The major challenge to using wind as a source of power is that the wind is intermittent and it does not always blow when electricity is needed. Good wind sites are often located in remote locations locations, far from cities where the electricity is needed. Unfortunately, while individual local conditions may vary, wind studies reveal Central NJ is not a good source for wind generation generation. • Although wind power plants have relatively little impact on the environment compared to other conventional power plants, there is some concern over the noise produced by the rotor blades, aesthetic (visual) impacts. • Possible zoning ordinances issues. 60 Wind Power Basics NJ Wind Resources South River & S Surrounding di A Areas 61 Wind Financials: • • • Small wind energy systems cost from $3,000 to $6,000 for every kilowatt of generating capacity, or about $40,000 for a system ((installed)) large g enough g to p power a home. As of 2007 an estimated 2,500 grid-connected, residential-scale turbines (1-10kW) are currently being used in the U.S. Most small turbines have only 2-3 2 3 moving parts and are designed for a long life (20 - 30 years). • Maintenance is very important factor and would vary based on unit size. It is critical because simple gear maintenance can avoid costly repairs. • Payback is based on many factors. The most important being wind velocity and duration. 62 Wind Conclusions: • • Small Wind Turbine for municipal buildings could be added on taller municipal structures within the town like the water towers. Small Wind Turbine for the public school system is an ideal location because of the open area associated with the campus and large amount of roof space. 63 Wind Project Funding • • What grants or incentives are available to defray the cost of a small wind electric system? As of March 2009, the federal government offers an investment tax credit for the purchase and installation of qualifying small wind electric systems, worth 30% of the value of the system. For details, please see the Residential Renewable Energy Tax Credit page in the Database of State Incentives for Renewables and Efficiency (DSIRE) Web site. • • • The federal government also offers a Renewable Electricity Production Tax Credit and Business Energy Investment Tax Credit for larger, utility-scale wind power installations. installations Additional incentives may be available at the state level; visit the DSIRE database for more information. Renewable Energy Incentive Programs are providing rebate levels of $3.20 /kWh per 1-16,000 kWh 64 Production. Micro Turbine Power Basics: • Provides on-site Municipal and Commercial (possibly residential) electrical power and heat for primary or stand-by stand by applications, thereby reducing demand on the municipal electric grid. • Consists of a turbine engine that creates electricity, solid-state power electronics, fuel system, y and an indoor/outdoor-rated enclosure. • Accepts most commercial fuels and renewable fuels such as natural gas, biodiesel, biogas and flare gas. • Rated power capacities from 10 kW to 1MW. Can be connected in parallel to produce large amounts of power. • Can be operated standalone or connected to a grid. • Compressor C i impeller, ll tturbine bi rotor, t and d generator t rotor are mounted on a single shaft which comprises the only moving part in the engine. • Acoustic emissions at full load power: 65 65-70 70 dBA. dBA 65 Micro Turbine Power 66 Micro Turbine Power Advantages: • O On-site it energy production d ti reduces d d demand d on M Municipal i i l electric l t i grid id during peak demand periods. • Higher power density with respect to footprint and extremely efficient with 80% efficiencies commonly achieved in co-generation systems. systems • Waste heat can be used for water heating, space heating, absorption chillers for air- conditioning or additional power generation using a separate waste heat turbine. • If designed with foil bearings and air-cooling, can operate without oil, coolants or other hazardous materials. • Uses most commercial and renewable fuels (natural gas, bio-diesel, bio-gas, flare gas) while producing extremely low emissions. • Proven P t k record track d and d extremely t l costt effective ff ti (one year payback) 67 Micro Turbine Power Disadvantages: • Slower to respond to changes in output power requirement than other types of generators. • High overall temperature of the system if exhaust heat is not used for additional applications. applications • Although the noise level is not high, there may be objections by the public if placement is close to a residential area. 68 Micro Turbine Power Financials: • Mi Micro T Turbines bi require i smaller ll capital it l iinvestment t t th than other th ttypes off power generation. Installation can be implemented in several weeks to a few months. Based on the application, installing a Capstone Micro Turbine energy solution would provide electric power at an approximate variable operating cost of $0.035 / kWh. This could result in a payback of 1.02 years on the investment. • For additional savings, you can take the waste heat from the Capstone Micro Turbine to run through an Infinity Turbine IT10 which will give an additional 10 kw of electricity. Depending on the configuration of the heat exchangers, it may be possible to also capture waste heat from the cascade effect of the turbines and use that for hot water or process heat heat. 69 Micro Turbine Power Conclusion: • Th The borough b h should h ld actively ti l iinvestigate ti t th the use off Micro Mi T Turbines bi i in Municipal and Commercial settings to produce added capacity power generation using natural gas, biodiesel, or biogas to supply peak loading or to reduce the cost of purchased power power. 70