California Energy Commission and U.S. Department of Energy Webinar: Combined Heat and Power for Wastewater Treatment Plants July 31, 2014 Outline of Presentation CEC CHP Goals and Programs and Incentives SCAQMD Rule 1110.2 Review and Solutions: OCSD, EMWD, 1000 Oaks Introduction to DOE CHP Technical Codigestion Assistance Partnerships services Demand Response CHP for WWTP Conclusion and next steps WWTP Anaerobic Digesters & CHP Questions Design Considerations Biogas Revenue Streams 2 Presenters Gene Kogan Grant Mack Keith Davidson Chuck Rogers Erik Jorgensen 3 Combined Heat & Power in California’s Wastewater Treatment Plants Grant Mack California Energy Commission Grant.Mack@energy.ca.gov (916) 654‐5166 July 31, 2014 4 California Energy Commission Established in 1974 as the state’s energy policy and planning agency. Seven core responsibilities guide the Energy Commission as it sets California energy policy: o Forecasting future energy needs; o Promoting energy efficiency and conservation by setting the state's appliance and building energy efficiency standards; o Supporting energy research that advances energy science and technology through research, development and demonstration projects; o Developing renewable energy resources; o Advancing alternative and renewable transportation fuels and technologies; o Certifying thermal power plants 50 megawatts and larger; o Planning for and directing state response to energy emergencies. 5 Combined Heat & Power (CHP) California’s Policy Drivers • The State Recognizes the Many Benefits of CHP – – – – – – • Fuel Efficiency Reduced Greenhouse Gas Emissions Avoided Losses from Transmission and Distribution Increased Reliability for Critical Facilities Grid support Economic Benefits for Energy Intensive Industries State Policy Goals – Governor Edmund G. Brown’s Clean Energy Jobs Plan • Additional 6,500 MW of new CHP capacity by 2030 – The California Air Resources Board’s Climate Change Scoping Plan • Sets a target of 4,000 MW of additional CHP capacity, and a reduction of 6.7 million metric tons of CO2 equivalent by 2020 – The California Public Utilities Commission’s Qualifying Facilities and CHP Program Settlement Agreement • Mandates that California’s three largest electric investor‐owned utilities procure 3,000 MW of exported CHP capacity and achieve GHG reductions of 4.8 million metric tons of CO2 by 2020. 6 Programs & Opportunities for CHP in California’s Wastewater Treatment Plants • Closure of San Onofre Nuclear Generation Station (SONGS) – – • Energy Research, Development & Demonstration – – • Standard contract and fixed price for excess/exported generation from CHP 20 MW and below SB 1122 – Bioenergy Feed‐in Tariff – – – – • Energy Commission program that funds innovative CHP projects focused on reducing barriers and increasing market penetration of these technologies (i.e. hybrid/fuel‐flexible systems, highly efficient, low emission, use renewable fuel etc.) More information about current and upcoming solicitations ‐ http://www.energy.ca.gov/research/ AB 1613 – Waste Heat & Carbon Emissions Feed‐in Tariff – • Need for generation within Orange and San Diego County due to loss of roughly 2,150 MW of capacity from SONGS Procurement opportunities available through Southern California Edison and San Diego Gas & Electric for excess/exported generation from CHP (Standard Request for Offers, bilateral contracts etc.) Standard contract and fixed price for excess/exported generation from bionergy projects (includes CHP fueled by biogas) 3 MW and below IOU’s must procure at least 250 MW of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. Of this 250 MW, 110 MW has been set aside for wastewater treatment plant bioenergy projects CPUC decision is likely to be release sometime this Fall and then the IOU’s move forward with developing and administering the program in their territories Self Generation Incentive Program – Up‐front and performance based Incentives for on‐site CHP generation up to 3 MW 7 Thank You Grant Mack California Energy Commission Grant.Mack@energy.ca.gov (916) 654‐5166 8 WWTP CHP an Efficient, Economic and Energy Security Solution U.S.DOE Pacific Combined Heat and Power Technical Assistance Partnership (Pacific CHP TAP) Gene Kogan (858) 633‐8561 Gene.Kogan@energycenter.org 9 President’s Executive Order 13624: 40GW of new CHP by 2020 CHP TAPs are critical components of achieving the goal: ◦ ◦ Regional CHP experts Provide fact‐based, un‐biased information on CHP – Technologies – Project Development – Project Financing – Local electric and natural gas interfaces – State best practice policies ◦ http://eere.energy.gov/manufacturing/di stributedenergy/chptaps.html Vendor, fuel, and technology neutral 10 Who We Are: U.S. DOE Pacific CHP TAP Previous DOE Pacific Clean Energy Applications Center (CEAC) Regional Coverage for CA, NV, & HI Pacific CHP TAP Team consists of: ◦ Center for Sustainable Energy Team Lead (CSE) ◦ DE Solutions ◦ Energy and Environmental Economics (E3) 11 CHP Technical Assistance Partnerships Key Activities Market Opportunity Analysis. Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors 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. Technical Assistance. Providing technical assistance to end‐users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation. http://eere.energy.gov/manufacturing/dist ributedenergy/chptaps.html 12 What Is Combined Heat and Power? Form of Distributed Generation (DG) An integrated system Located at or near a building / facility Provides at least a portion of the electrical load and 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 14 What Are the Benefits of CHP? CHP is more efficient than separate generation of electricity and heat Higher efficiency translates to lower operating cost, (but requires capital investment) Higher efficiency reduces emissions of all pollutants CHP can also increase energy reliability and enhance power quality On‐site electric generation reduces grid congestion and avoids distribution costs 15 Drivers for WWTF relating to CHP Desire to reduce energy costs Resiliency of Critical Infrastructure Sustainability planning/emissions reduction Enhanced Reliability Facility Upgrades Increase biogas production Utility load shedding Availability of incentives Enhanced biosolid management “Green” publicity Source: Oct 2011 EPA/CHP Partnership Report: Opp. For CHP at WWTF: Market Analysis and Lessons 16 WWTP Existing CHP Installations (U.S. and CA) U.S. – 167 facilities generating 565 MW CA – 62 facilities generating 233 MW Gen Capacity – CA (kW) 1 Combined Cycle Turbine Fuel Cell 102,100 2,210 6,400 Combined Cycle 6 28,000 94,636 Prime Mover Type-CA 9 Fuel Cell 31 Microturbine Reciprocating Engine Turbine Microturbine 15 Reciprocating Engine Source: ICF CHP Installation Database, May 2013 17 Overview of Energy Use in WWTF Source: Opps for and Benefits of CHP at WWTF, April 2007 (EPA/CHP Partnership) 18 What Makes a Great WWTF Anaerobic Digestion CHP Project? Maximizes revenue streams Uses co‐digestion: It can flip the economics positive o Some co‐digestion feedstocks are amazing producers of biogas o Track the pH balance & dose in the feedstock Has a proper design for the climate zone and technology choice matches solids content of the feedstock Scrubs the biogas – major importance Maximizes heat recovery Strong O&M support 19 WWTF CHP Design Lessons Ensure all parts of the system are properly sized o Don’t oversize the genset compared to the biogas supply – Biogas not thermal load or electric load governs sizing Natural gas can supplement biogas o Stabilizes gas flow to genset (eliminates flaring or storing biogas) o Helps match genset size to critical load requirements o Can support digester temperature requirements Aggressively recover the waste heat Consider pasteurization of biosolids Biogas scrubbing is a high priority – Don’t scrimp Consider the system design implications for co‐digestion 20 Biogas Treatment and Conditioning This is a key biogas design feature for WWTF CHP systems for long‐term system life Separate steps are needed to remove different pollutants with a proper order for removal ◦ Hydrogen sulfide first – Oxidizes to Sulfur Dioxide and can form into sulfuric acid with moisture & can disrupt siloxane removal ◦ Moisture removal by chilling – Recover the heat for system efficiency ◦ Siloxanes – Forms a glass‐like deposit with high heat combustion that can build up in CHP system 21 Environmental Considerations Think through environmental aspects early and deeply o Air Quality o Water quality o Biosolids management o Co‐digestion impacts Beyond waste – Recycling organic materials and avoiding landfilling 22 CHP Economics for WWTFs Anaerobic Digestion Economics – Maximize co‐products – 7 potential revenue streams o Power o Green/renewable power adder (RECs) o Carbon credit due to “add‐on” subsystems that reduce GHGs o Pasteurize biosolids for sales/field application – Moisture adds value o Tipping fee for fat, oil and grease (FOG) & food processor waste o Co‐digestion increases biogas production o Waste heat for digester, buildings & small district energy systems Add‐on systems add cost but also add revenue/reduce other costs Two opportunities to improve CHP economics: o 10 % Federal Investment Tax Credit (ITC) o Self Generation Incentive Program (SGIP) 23 What is the Self-Generation Incentive Program (SGIP)? SGIP provides cash incentives for the installation of clean and efficient distributed generation technologies that are installed on the customer's side of the utility meter. o Ratepayer funded and overseen by the CPUC SGIP is one of the longest running incentive programs in the country. SGIP has incentivized distributed generation technologies since 2001, and will continue through 2020. o The primary goal of SGIP is to reduce statewide greenhouse gas (GHG) emissions 24 Who Can Participate in SGIP? SGIP is available to retail electric and gas customers of the major investor‐owned utilities in California: o Pacific Gas and Electric (PG&E) o Southern California Edison (SCE) o Southern California Gas Company (SoCalGas) o San Diego Gas & Electric (SDG&E) CSE administers the program within the SDG&E service territory 25 Eligible Technologies and Incentive Levels (2014) Technology Type Incentive ($/W) Renewable and Waste Energy Recovery Wind Turbine $1.13 Waste Heat to Power $1.13 Pressure Reduction Turbine $1.13 Non‐Renewable Conventional CHP Internal Combustion Engine ‐ CHP $0.46 Microturbine – CHP $0.46 Gas Turbine – CHP $0.46 Emerging Technologies Advanced Energy Storage $1.62 Biogas $1.62 Fuel Cell ‐ CHP or Electric‐Only $1.83 The biogas incentive is an adder that may be used in conjunction with CHP and fuel cell technologies. 26 Parameters for Success CHP Champion on site Interaction and Relationship with local Utility System design ◦ Collaborate with DOE CHP TAPs ◦ Experienced project developer preferred ◦ Biogas scrubbing a key balance of plant (BOP) component Operation and Maintenance o Requires personnel or 3rd party with appropriate CHP O&M training o Specific experience with biogas scrubbing issues and maintenance important Source: Oct 2011 EPA/CHP Partnership Report: Opp. For CHP at WWTF: Market Analysis and Lessons 27 CA WWTP CHP Project Profiles Project Profiles available online: ◦ ◦ ◦ Burlingame Wastewater Treatment Plant East Bay Municipal Utility District Project Profiles currently under development ◦ ◦ ◦ Chiquita Water Reclamation Plant Hill Canyon Wastewater Treatment Plant Orange County Sanitation District Eastern Municipal Water District Visit DOE CHP Deployment website for project profiles: http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_projects.html 28 Conclusion & Next Steps Economic advantage – make your own power for on‐site use it or sell it A long‐term Power Purchase Agreement (PPA) can help Quality design is essential Use the biogas efficiently – Maximize heat recovery Energy independence – Critical facility load requirements Support local utility grid with demand response The CHP TAP s help with next steps o CHP Qualification Screenings (go/no go scan of potential) o Technical assistance 29 SCAQMD Rule 1110.2 Compliance Solutions Keith Davidson (858) 832‐1242 kdavidson@de‐solutions.com 30 SCAQMD Rule 1110.2 Extreme non‐attainment for ozone SCAQMD is one of thirty‐five CA air districts –spans LA, Orange, Riverside & San Bernardino Counties Home to 17 million Californians Must reduce NOx emissions by 65% over next 10 years Rule 1110.2 addresses stationary and portable engines over 50 hp 31 Rule 1110.2 – Digester Gas Engines Current Concentration Limits (ppmvd)1 NOx VOC CO hp ≥ 500: 36 hp < 500: 45 250 2000 Concentration Limits (ppmvd)1 Effective January 1, 2016 1. NOx VOC CO 11 30 250 Parts per million corrected to 15% oxygen 55 biogas engines in the Basin 32 New CHP Compliance Solutions Reliable and effective biogas conditioning will likely be a necessary element of the new portfolio of prospective solutions: ◦ Lean burn engine with Selective Catalytic Reduction (SCR) and Oxidation Catalyst ◦ Rich burn engine with 3‐way catalyst and premium Air‐fuel‐ratio controller ◦ Microturbine ◦ Fuel Cell 33 Orange County Sanitation District OCSD Service Area ◦ 207 Million gallons per day ◦ 2.5 million population ◦ 2 treatment plants Thanks to Lisa Rothbart for OCSD’s biogas utilization story 34 Project Profile: OCSD Demonstration Engine Solution to 1110.2 Plant No. 1 – Fountain Valley Plant No. 2 – Huntington Beach 3 identical IC engines 2500 kW each Lean burn Total nameplate capacity: 7.5 MW 5 identical IC engines 3000 kW each Lean burn 1 MW steam turbine Total nameplate capacity: 16 MW Both plants combined: 1.4 billion cubic feet of digester gas produced from anaerobic digestion in 2013 In operation since 1994 $25 Million project cost $3.5 million per year savings 7.2 year payback w/o incentives *Project Profile will be available next month at www.PacificCHPTAP.org 35 Project Profile: OCSD Demonstration Engine solution to 1110.2 Cooper‐Bessemer V‐12 2500 kW Lean burn Heat recovery steam generator NOX and CO Continuous Emission Monitoring System (CEMS), required on larger prime movers 36 Fuel Pre-treatment & Exhaust Aftertreatment Solution Urea Injection Single carbon bed 9,900 lbs media capacity SCR Catalyst Oxidation Catalyst 37 Emission Levels Achieved Pollutant Before With Catalysts With Catalysts Rule Catalysts (ppmv) (ppmv) 1110.2 (ppmv) One Year Three Years (ppmv) NOx 31 7.2 8.3 11 CO 452 7.5 7.5 250 VOC 97 3.6 11.5 30 15‐minute averages. Validated data only. Excludes exceedances during engine start‐up (30 minutes) and due to operational issues/systems adjustments. 38 Full Implementation In Progress • Construction contract awarded on April 23rd 2014 • Notice to Proceed was issued in May 2014 CONTACT: Orange County Sanitation District Lisa Rothbart (714) 593-7405 39 EASTERN MUNICIPAL WATER DISTRICT IC Engines under Rule 1110.2 at EMWD Reclamation Facilities Erik Jorgensen, P.E. Senior Engineer July 31, 2014 www.emwd.org 40 EMWD Overview • • • • • 542 square miles Population of 768,000 / 45% Ultimate Build-out Water, Wastewater and Recycled Water Services 7 Cities plus Unincorporated Riverside County Operate Four Regional Water Reclamation Facilities (RWRFs) treating 45-mgd. www.emwd.org 41 EMWD’s Sustainable Energy Initiatives Regional Water Reclamation Facilities (4 RWRFs) • History of internal combustion (IC) engine use (biogas and NG) – power aeration air and pumping equipment, generate heat for solids digestion • Biogas-fired boilers – generate heat for solids digestions • Fuel cells (2 facilities totaling 1.5 mega-watt electricity + generate heat) • Solar Voltaic Power – generate electricity at each RWRF (5 mW planned) District-wide • IC engines (NG-fired) – power pumping equipment (56 engines 14 MW) • Micro-turbines – generate electricity/heat for Admin Complex • Adsorption Chiller – provide conditioning for Admin Complex air • Solar Voltaic Power – generate electricity for Admin Complex (0.5 mW installed) www.emwd.org 42 Challenge to EWMD IC Engines at RWRFs • Goal - Identify method to achieve Rule 1110.2 compliance using biogas MVRWRF and PVRWRF Fuel Cells consume biogas (no immediate impact) TVRWRF and SJVRWRF require solution – immediate impact • District strategy is to evaluate multiple viable options District trial using NoxTech (in-progress) District trial using Tecogen (planned) District not considering SCRs (cost vs. scale of installation) www.emwd.org 43 Compliance with SCAQMD Rule 1110.2 CRITERIA FOR SUCCESS • Digester Gas engine emission compliance by Jan 2016: o NOx ≤ 11ppm o CO ≤ 250ppm • Emission control system must demonstrate endurance with consistent results. • Economical to maintain and operate. www.emwd.org 44 NoxTech Process Economizer Pre-Heating of Engine Exhaust & Heat Recovery From Reactor Core NoxTech Exhaust STACK ~1,000 Deg F ENGINE EXHAUST IN INLET PLENUM ~1,000 Deg F REACTOR HEAT EXCHANGER ~1,480 Deg F REACTOR CORE Mixing of Engine Exhaust, Add Fuel, and Urea. Formation of Free Radicals BURNER END PLENUM UREA INJECTORS START UP BURNER Urea SWIRL VANES ~1,280 Deg F ADD FUEL INJECTORS NG EGR HEAT EXCHANGER / BLOWER SYSTEM Exhaust Gas 45 NoxTech at the Mills Pump Station 46 NoxTech EGR Modifications 47 Technical Challenges and Compliance with NoxTech Mills Pump Station (NG-focused trial) • Not plug-and-play as expected • Initial testing not successful • Extensive effort by EMWD staff to assist start-up • Ultimately showed compliance on natural gas engines TVRWRF (biogas- focused trial) • Focus on biogas fired-engine exhaust • Installation recently completed – trial to begin in August www.emwd.org 48 NoxTech Schedule Task Duration/Date Complete TVRWRF Installation July 2014 Startup and commissioning August 2014 Complete Field Testing early 2015 www.emwd.org 49 District Experience with Tecogen on NG CATALYST CATALYST HEAT EXCHANGER INSTALLATION AT HEACOCK PETTIT BOOSTER PUMP STATION www.emwd.org 50 Results: Reduced NOx and CO Emissions 500.0 450.0 400.0 350.0 START OF TECOGEN TRIAL 300.0 250.0 200.0 CO @ 15% O2 (ppm) 150.0 NOx @ 15% O2 (ppm) 100.0 50.0 0.0 EMISSIONS AT HEACOCK PETTIT BOOSTER PUMP STATION www.emwd.org 51 Tecogen Demonstration Project - Biogas Exhaust to ATM Anaerobic Digesters Exhaust 1st Stage Catalyst Heat Exchanger 2nd Stage Catalyst Digester Gas (DG) Emission Sampling Air DG Conditioning Engine Heat Recovery Return Water Heat Recovery Supply Water MVRWRF DG ENGINE PROCESS FLOW DIAGRAM (TECOGEN/Digester Gas) www.emwd.org 52 Tecogen Pilot Schedule Task Duration/Date Issue Purchase Order (Tecogen) August 2014 Complete Modification of Digester Gas Pipes September 2014 Install Tecogen Equipment and Modification of Exhaust Pipe November 2014 Modification of Heat Water Secondary Loop December 2014 Startup and commissioning January 2015 Complete Field Testing September 2015 www.emwd.org 53 EASTERN MUNICIPAL WATER DISTRICT Contact Information Erik Jorgensen, P.E. Senior Engineer 951-928-3777 ext. 4471 jorgense@emwd.org www.emwd.org 54 Hill Canyon WWTP Chuck Rogers 55 Hill Canyon WWTP Energy Program Focus on conservation, optimization, renewable energy generation, Two Power Purchase Agreements: Solar & Cogeneration 100% of energy used at facility is provided by onsite generation 56 The Road to 100% Renewable Solar (15%) Cogeneration (50%) Enhanced digestion through acceptance of trucked waste = 35%+ or 100%+ FOG, Beer waste, yogurt waste, Frappacino, etc. 57 The Road to 100% Economics: HCTP receives a tipping fee for all wastes received These wastes create more gas = more electricity PPA puts all responsibility on owner to construct and operate facilities Cost of electricity typically half of utility 58 The Road to 100% If it was easy everyone would be doing it…. FOG is nasty stuff and it stinks and has variable BTU value Labor costs to run the business can’t be ignored It’s a business….. 59 The Road to 100% An alternative plan: • Set 100% as a goal, conserve, optimize, and run your digesters and cogeneration system efficiently. • Expect 50%+ renewable energy generation if you have anaerobic digesters • Get to 100% through ongoing technology advancements and then consider… waste acceptance 60 What Challenges Remain? HCTP creates 200,000 ft3 more gas than is necessary to meet 100% of energy load Barriers to exporting electricity beyond what is needed to run facility Is a private/public partnership opportunity available that will benefit both parties? 61 Public loves this stuff, leaders are happy, staff is constantly challenged HCTP has become a national model for entrepreneurship and public/private partnership HCTP is a strong advocate of PPA’s which allows staff to focus on their core competencies 62 Thank You! Taxpayers California Energy Commission Department of Energy City of Thousand Oaks Leadership team: City Council, City Manager, Public Works Director, & HCTP staff Good luck with your energy program. We hope you do it better than us!!! 63 Contact Information Chuck Rogers City of Thousand Oaks Hill Canyon Wastewater Treatment Plant 9600 Santa Rosa Road Camarillo, CA 93012 (805) 491‐8177 cerogers@toaks.org Good luck with your energy program. We hope you do it better than us!!! 64 Next Steps Contact Pacific CHP TAP for assistance if: 1. Interested in having a Qualification Screening performed to determine if there is an opportunity for CHP at your site 2. If you already have an existing CHP plant and interested in expanding it Contact Gene Kogan (858) 633‐8561 Gene.Kogan@energycenter.org 65 CHP TAP Project Development Technical Assistance Screening and Preliminary Analysis Quick screening questions with spreadsheet payback calculator. Feasibility Analysis Uses available site information. Estimate: savings, Installation costs, simple paybacks, equipment sizing and type. Investment Grade Analysis 3rd Party review of Engineering Analysis. Review equipment sizing and choices. Procurement, Operations, Maintenance, Commissioning Review specifications and bids, Limited operational analysis 66 Thank You Questions? Gene Kogan (858) 633‐8561 Gene.Kogan@energycenter.org Keith Davidson (858) 832‐1242 kdavidson@de‐solutions.com http://www1.eere.energy.gov/manufacturing/distributedenergy/chptaps.html 67