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7/29/2019 Combined Heat Power IP
1/33
authors
Vigeh GoihaaChitia AgeideHaah Dcemie
Combined Heat and Power Systems:Impovig the Eeg Eciec o O Maactig
Pat, Bidig, ad Othe Faciitie
NRDC IssuE PAPEr april 2013IP:13-04-B
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acknedgenThe authors would like to acknowledge John Cuttica and Cliord Haeke at the Midwest Clean Energy Application Center,
Katrina Pielli at the U.S. Department o Energy, and Dylan Sullivan at NRDC or valuable eedback and comments.
ab NrDC
The Natural Resources Deense Council (NRDC) is an international nonprot environmental organization with more than 1.4 millionmembers and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the worldsnatural resources, public health, and the environment. NRDC has oces in New York City, Washington, D.C., Los Angeles, San Francisco,Chicago, Livingston, and Beijing. Visit us at www.nrdc.org.
NRDCs policy publications aim to inorm and infuence solutions to the worlds most pressing environmental and public health issues.For additional policy content, visit our online policy portal at www.nrdc.org/policy.
NRDC Director of Communications: Edwin Chen
NRDC Deputy Director of Communications: Lisa Goredi
NRDC Policy Publications Director:Alex Kennaugh
Lead Editor: Carlita SalazarDesign and Production:www.suerossi.com
Cover images: Reciprocating engine Finley Buttes; Gas turbine at University o Illinois at Chicago Vignesh Gowrishankar;CHP at BMW manuacturing plant BMW Manuacturing Co.
2013 Natural Resources Deense Council
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ExECutivE summary
Improving the energy eciency o our manuacturing acilities, buildings, and
homes can help us meet our energy challenges aordably. It can save consumers
money on their energy bills, drive business competitiveness and economicgrowth and jobs, enhance grid reliability and fexibility, and help protect public health
and the environment. Combined heat and power (CHP) systems are strong examples
o how energy-eciency technologies can help achieve these signicant benets or
end-user acilities, utilities, and communities. As the case studies eatured in this
report illustrate, CHP systems are extremely versatile and can be used in a spectrum
o industriesadvanced manuacturing, ood processing, health care, chemical and
primary metal productionand acilities including data centers, hotels, multiamily
housing, district energy, landlls, and arms.
CHP technology has vastly improved in recent
years, and current market drivers are becoming more
avorable. When designed and operated properly,
CHP systems can be economical and can generate
considerable net savings. Currently, 82 gigawatts
(GW) o installed CHP generation capacity (9 percent
o U.S. energy-generation capacity) are in use at
more than 4,100 sites across every state in the nation.
But at least 50 GW, and up to almost 200 GW oadditional CHP potential, remain to be tapped.
This issue paper illuminates the great potential
and versatility o CHP technologies to generate
useul energy more eciently, describing how these
systems work; the benets they can provide; their
application and use in the industrial, commercial,
institutional, agricultural, and residential sectors;
and their economics. Central to this paper are 30
case studies that demonstrate how various acilities
have taken advantage o CHP to better control their
energy use, boost their bottom lines, and reducepollution and reap other benets. Table 1 on the
ollowing page indexes the eatured case studies and
sectors, and summarizes the mix o benets seen at
these acilities, as described later in the report. sio maactig pat.
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tbe 1: s nd inde Feed Ce sde nd te Bene
Case studies (in report) State Page
Key system attributes seen in case studies
Advanced manuacturing 1. Sikorsky Aircrat Corp. CT 5 Y Y Y Y
Automotive 2. BMW Manuacturing Co. SC 6 Y Y Y Y
Chemicals, plastics,
rubber
3. Dow Chemical Co. LA 6 Y Y Y
4. Harbec Plastics NY 8 Y Y Y Y Y Y
Ethanol 5. POET Biorefning Macon MO 8 Y Y Y Y Y
Food processing6. Frito-Lay CT 9 Y Y Y Y
7. Gills Onions CA 10 Y Y Y Y Y Y Y
Forest products 8. Brattleboro Kiln Dry Co. VT 11 Y Y
Pharmaceuticals9. Johnson & Johnson
Transorm PharmaceuticalsMA 13 Y Y Y Y
Power generation 10. Linden Cogeneration Plant NJ 13 Y Y Y
Primary metals11. ArcelorMittal Indiana Harbor IN 14 Y Y Y Y Y
12. SunCoke Energy OH 14 Y Y Y Y Y Y
Pulp and paper 13. Seaman Paper Co. MA 15 Y Y Y
Refneries 14. Ergon MS 16 Y Y Y Y Y
Data centers 15. BP Helios Plaza TX 16 Y Y Y Y
Hotels, resorts
16. Snowbird Ski & SummerResort
UT 18 Y Y Y Y
17. Hilton New York NY 20 Y
Laundries 18. Arrow Linen Supply Co. NY 20 Y Y Y Y
Multiamily housing 19. Co-Op City NY 23 Y Y
Ofce buildings 20. Transamerica Pyramid Bldg. CA 24 Y Y Y Y
Retail center 21. Rogers Gardens CA 24 Y Y Y Y
District energy 22. TECO TX 25 Y Y Y Y
Health care23. Baptist Medical Center MS 26 Y Y Y
24. Beloit Memorial Hospital WI 27 Y Y Y Y Y Y
Landflls25. Finley Buttes Regional
LandfllOR 28 Y Y Y Y Y Y Y
Military 26. Naval Station Great Lakes IL 28 Y Y Y Y
Universities, colleges 27. Cornell University NY 29 Y Y Y Y
Wastewater treatment28. Rochester Wastewater
Reclamation PlantMN 29 Y Y Y Y Y Y
Dairies 29. Crave Brothers FarmsteadCheese WI 30 Y Y Y Y Y Y Y Y
Greenhouses 30. Houwelings Tomatoes CA 30 Y Y Y Y Y Y Y
En
ergyefciency
Re
ducedenergycosts
Su
pplypowertogrid
Otherrevenuestreams
En
ergyreliability
Po
werquality
Ea
siercapacityexpansion
Industry-specifcbeneft
Meetingstandards
Re
ducedemissions
Jo
bcreation
Re
newablesintegration
INDUSTRIAL
COMMERCIAL
INSTITUTIONAL
AGRICULTURAL
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ComBiNED hEat aND powEr: a roBust tool to
improvE ENErGy EFFiCiENCy aCross sECtors
Improving the energy eciency o our manuacturing acili-
ties, buildings, and homes can help us meet our energy chal-
lenges aordably. However, seizing greater energy-eciency
opportunities in these sectors will require diverse strategiesto meet national and state energy, environmental, and eco-
nomic goals, including the deployment o better-perorming
energy-ecient technologies and systems. Combined heat
and power (CHP)an integrated system that simultaneously
generates electricity and useul thermal energy (e.g., steam)
rom a single uelis a versatile technology that can generate
useul energy more eciently, and thereby signicantly and
economically improve energy eciency and deliver substan-
tial benets or end-user acilities, utilities, and communities.
Currently, 82 GW o installed CHP generation capacity
the equivalent o more than 130 coal plants on average, or 9
percent o our nations total energy-generation capacityis in
use at more than 4,100 sites across every state in the nation.1
While the vast majority o CHP systems (by capacity) are used
in manuacturing acilities, a growing number o commercial,
agricultural, and residential sites, such as supermarkets,
hotels, and multiamily housing complexes, are considering
the use o such systems.2
There exists signicant potential or much greater CHP
deployment throughout the U.S. economyat least 50 GW
and up to almost 200 GW more. CHP has markedly advanced
over the years and is more reliable and cost-eective than
ever beore. Also, the price o natural gas, the most common
uel used in CHP applications, has dropped, and uture prices
are projected to be conducive to CHP expansion over the next
ew years. Another actor driving increased deployment oCHP systems has been growth in state and utility incentives
or CHP in various orms.
In a conventional CHP system (known simply as CHP,
or topping-cycle CHP), uel is burned solely to generate
electricity and useul thermal energy. In a variation on the
conventional system, called waste energy recovery (WER, orbottoming-cycle CHP), a uel is burned to serve an industrial
process (e.g., steel production), and any unused (or waste)
energy (e.g., process gases, in the case o steel production)
is then captured to generate electricity and, in some cases,
additional useul thermal energy. Waste energy recovery can
also include the productive utilization o pressure drops or
gaseous exhaust with partial-uel content. (Please note: In
this document, unless otherwise specied, CHP reers to both
conventional CHP and WER systems.)
The electricity rom CHP systems can be used on-site or
sold back to the grid i agreements and protocols with the
local utility can be arranged. The thermal energy can be used,
typically on-site, or a variety o purposes such as steamproduction, rerigeration, and space heating or cooling. In
act, the most ecient CHP systems are those that are able
to productively utilize, with minimal waste, the available
thermal energy.
As outlined in subsequent sections, CHP systems employ a
variety o technologies on a wide range o scales, use dierent
uels, and can be implemented across many industries and
applications. While a ull discussion o the necessary drivers
to promote CHP deployment is beyond the scope o this
report, enhanced awareness o and education about CHPs
versatility and potential, coupled with strong commitment
rom businesses, suitable acilitation rom utilities, and
conducive policies and regulations rom all levels ogovernment, are needed to drive these technologies in the
marketplace.
OVErVIEw: sio 10-Mw CHP pat, hich povide 84 pecet o the aciit
eecticit eed ad 85 pecet o it team-heatig eed, bega opeatio i 2011.
A pat o the compa age ph toad eviometa epoibiithich
icded the itaatio o 450 oa paethe CHP pat edce cabo dioxide
(CO2) emiio b 8,900 to pe ea. with eeg avig o moe tha $6.5 miio
pe ea, sio amot $26 miio ivetmet i expected to pa bac i e
tha o ea. The CHP tem ca o mtipe e (e.g., ata ga ad oi),
o the aciit i iated om e-pice voatiit ad pp i. Dig ad ateHicae sad, the CHP tem povided bacp poe o the aciit to emai
ope ad miimize opeatioa diptio. Moeove, the aciit a abe to evice
it 9,000 empoee ith ood ad ameitie, eve hie ma oca commitie
ee ithot poe. Baed o the ovea cce o thi CHP tem, sio i
coideig othe cea-eeg otio i moe o it aciitie odide.
FInAnCInG AnD InCEnTIVEs:n $26 miio capita ivetmet b sio Aicat Cop.n $4.66 miio state Cogeeatio Icetive Gat
sECTOr: Advaced maactig
OPErATIOn sTArT: 2011
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: Caie (uTC)
CAPACITy: 10 Mw
InsTAllED COsT: $30.6 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: > $6.5 miio/
ea
rEPOrTED PAyBACk:
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OVErVIEw: I 2009, to high-eciec ga-ed combtio
tbie ee itaed at the BMw maactig pat i
spatabg, soth Caoia. The aciit impot ad ga
om wate Maagemet Pametto lad thogh a 9.5-
mie pipeie to e the 11-Mw CHP tem. I additio, the
exhat heat i ecoveed ad ed to geeate team o the
aciit idtia pocee. The CHP meet 30 pecet o
the pat eectica eed ad abot 50 pecet o it themaeed. I additio to povidig eiabe poe o-ite, the
itaatio ha eted i aa eeg avig o betee
$5 miio ad $7 miio ad edced CO2 emiio b
92,000 to pe ea.
sECTOr: Atomotive
OPErATIOn sTArT: 2009
TECHnOlOGy: Ga tbie
FuEl: lad ga
MAnuFACTurEr: n/A
CAPACITy: 11 MwInsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $5 miio to $7 miio/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redce emiio: 92,000 to CO2/ea
Bmw mncng C. spatabg, sC2
Source:u.s. Depatmet o Eeg, sotheat Cea Eeg Appicatio
Cete, BMW Manuacturing Co., Poject Poe, Octobe 2009, avaiabe at
http://.otheatceaeeg.og/poe/e_poe/BMw_Cae_std.pd.
OVErVIEw: Do 1,500-ace itegated-maactig
aciit ea Paqemie ad bie opeatio i Gad Bao
compie oe o loiiaa aget petochemica aciitie,
ith moe tha 3,000 empoee ad cotact empoee. It
i home to 23 podctio it that maacte moe tha
50 dieet itemediate ad peciat chemica podct,
ch a choie ad poethee, that ae ed to podce
cometic, deteget, ovet, phamacetica, adheive,ad patic o a vaiet o pacagig, atomotive pat,
eectoic compoet, ad moe. Do cet o ad
opeate the Paqemie cogeeatio pat, hich coit
o o GE ata ga ed, 170-Mw combtio tbie ad
a 200-Mw team tbie. Fo iceaed fexibiit, the tem
i capabe o ig mtipe e, icdig pe ata ga,
pe hdoge-ga team, o a mixte. Thi pat ao
Do to geeate poe ad team via moe eeg-eciet
aet, deceae the e o ode, e eciet eqipmet
ove time, ad edce eeg cot. Poe ad team
ae ed at the Paqemie ad othe Do maactig
aciitie. The tem edce CO2 emiio p to 0.94
miio metic to pe ea, ad moo-itoge oxide (nOX)emiio ae e tha oe-qate o thoe at a tpica
poe pat.
Do i a exteive e o CHP, ith moe tha 90
pecet o it eeg eqiemet eved b CHP (eithe
e-oed o thid-pat opeated). Tpica eciecie o
Do CHP tem exceed 80 pecet, hie emiio-
coto eqipmet hep edce emiio.
sECTOr: Chemica, patic, bbe
OPErATIOn sTArT: 2004
TECHnOlOGy: Ga tbie, team tbie
FuEl: nata ga
MAnuFACTurErs: GE (ga tbie), Atom
(team tbie), nEM (heat ecove team geeato)
CAPACITy: 880 Mw
InsTAllED COsT: $550 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: >$80 miio/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced CO2 emiio
n redced nOx emiio
n Fe fexibiit
D Cec C. Paqemie, lA3
Source:Do Chemica Compete Pchae O Paqemie Cogeeatio
Faciit om AEP," Chemica Oie, Decembe 2006, avaiabe at http://
.chemicaoie.com/doc.mvc/Do-Chemica-Compete-Pchae-O-
Paqemie-0001; u.s. Eviometa Potectio Agec, lette to Do Paqemie
Cogeeatio Faciit, J 2011, avaiabe at http://.epa.gov/aimaet/
emiio/petitio/2011/r20110713_55419.pd; Do Chemica Compa,
Coge Mt Cotie Icetive o Combied Heat ad Poe: The Do
Chemica Compa Pepective, avaiabe at http://obb.a.p.ed/_107th/128_
PurPA/Ogaizatioa_statemet/noth_Eat_Mid_wet_Ititte/coge_mt_
cotie_icetive.pd(acceed Mach 2013).
BMwManuactuingCo.
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Beore considering the use o CHP, acilities must make
certain that all existing electrical and thermal loads and
processes are as ecient as possible. This will ensure that
CHP systems are optimally sized.CHP systems can then acilitate much more ecient
generation and use o energy than systems that generate
electricity and thermal energy separately (e.g., electricity
purchased rom a utility and thermal energy generated by
a boiler). Conventional power stations (e.g., coal plants,
combined-cycle natural gas plants) discard, on average,
close to two-thirds o a uels intrinsic energy as wasted
heat, typically resulting in energy eciency levels below
40 percent. Boilers that generate thermal energy alone are
more ecient, achieving eciencies o around 80 percent
or higher. However, to meet the total electrical and thermal
energy needs o a given acility, power stations and boilers
working independently achieve overall energy eciencies
o only about 50 percent (see gure 1). In contrast, CHP
technologies are able to put the thermal energy that would
be wasted by conventional power systems to productive useand can routinely achieve overall average eciency levels
o 75 percent or higher.3 Furthermore, because electricity is
generated and used on-site, there are ewer transmission and
distribution losses compared with electricity obtained rom
distant power plants.
Stemming rom this core advantage o greater energy
eciency and complemented by other eatures, CHP
systems oer myriad benets or end-user acilities (e.g.,
manuacturing plants and commercial buildings), utilities,
and communities. These benets are discussed in the
ollowing section.
thE myriaD BENEFits oF ComBiNED hEat
aND powEr systEms
Fge 1: Chp se he sgncn hge oe Ecenc tn see Eecc nd te se
ELECTRICITY
HEAT
100
UNITS
FUEL
147
UNITS
FUEL
COMBINED
HEAT
AND
POWER
(CHP)
POWER STATION FUEL
(U.S. FOSSIL MIX)
91 UNITS
FUEL
CONVENTIONALGENERATION
COMBINED HEAT AND POWER5 MW NATURAL GAS COMBUSTION TURBINE
AND HEAT RECOVERY BOILER
ELECTRICITY
HEAT
POWER PLANT
EFFICIENCY 33%
EFFICIENCY 80%
51% 75%OVERALL EFFICIENCY
BOILER
BOILER FUEL
56 UNITSFUEL
45 UNITS
STEAM
30 UNITS
ELECTRICITY
a u.s. EPA, Combined Heat and Power Partnership, Efciency Benefts, avaiabe at http://.epa.gov/chp/baic/eciec.htm (acceed Mach 2013).
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OVErVIEw: I 2001, Habec Patic, a ctom-ijectio
mode ocated i Otaio, ne yo, itaed 25 30-w
micotbie. The CHP tem povide eecticit o
maactig pocee ad thema eeg to heat ad coo
the aciit. The micotbie, hich o ata ga, ca
be dipatched i 30-w icemet, maig the CHP tem
a idea t o a aciit cet ith a oad age o 80 w
to 450 w; he a 30-w iceae i eeded, a additioait i ted o, ad he a 30-w deceae i expected, a
it ca be ted o. with a ovea eciec o 70 pecet,
the CHP et i a 36 pecet eeg avig ad edce
the aciit CO2 emiio b 1,800 to pe ea. I the
pat, the CHP tem high-qait, eiabe poe aoed
Habec Patic to cicmvet a mch a $15,000 pe moth
i damaged eqipmet ad ot podct. Toda, Habec
opeate it CHP de thema pioit, hich mea the
pat thema eqiemet, o heatig ad ai coditioig,
dictate the mbe o tbie opeatig at a time. I thi
mode, Habec CHP tem i aa eig maximm
ovea eeg eciec ad th maximm ecoomic ad
eviometa oppotit.
sECTOr: Chemica, patic, bbe
OPErATIOn sTArT: 2001
TECHnOlOGy: Micotbie
FuEl: nata ga
MAnuFACTurEr: Captoe
CAPACITy: 750 w
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: 70%
EnErGy sAVInGs: 36% et cot edctio pe earEPOrTED PAyBACk: 2.5 ea
OTHEr BEnEFITs:n reiabiit
n Avoided cot o damaged eqipmet
n redced emiio b 1,800 to CO2/ea
hbec pc Otaio, ny4
Source:u.s. Depatmet o Eeg, notheat CHP Appicatio Cete, Harbec
Plastics, Poject Poe, avaiabe at http://.otheatceaeeg.og/poe/
docmet/Habec-CHPPojectPoe_a.pd (acceed Mach 2013).
Ne m Gn, llC, dng bne
poEt Benng mcn Maco, MO5
OVErVIEw: I a joit vete ith the Cit o Maco,
Mioi, POET Bioeig Maco itaed a 10-Mw
soa Ma 100 Ga Tbie i Api 2003. (The CHP tem
i opeated b the Cit o Maco; the tbie geeato i
maitaied b the Cit o Maco; ad the heat ecove team
geeato i maitaied b POET Bioeig Maco.) The
CHP tem povide the 45-miio-gao-pe-ea ethao
pat ith 100 pecet o it eectica eed (a a bacp toit o-ite b-tatio) ad appoximate 60 pecet o it
team eed. A a et, POET Bioeig Maco ha ee
a appoximate 20 pecet edctio i team podctio
cot ad ha cce maitaied opeatio thogh
to to o poe otage pe ea ice the tem a pt
oie.
FInAnCInG AnD InCEnTIVEs: Bit o-ite at the ethao
pat, the CHP tem a pchaed etie b the Cit o
Maco, hich ha beeted om a 50 pecet deceae i
e cot ad ha eceived eeabe-eeg cedit om the
state o Mioi.
sECTOr: Ethao
OPErATIOn sTArT: 2003
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurErs: soa Tbie, Dete
CAPACITy: 10 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: Appoximate 20% cot avig o
team podctio pe ea
rEPOrTED PAyBACk: 13 ea
OTHEr BEnEFITs:n reiabiit
Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete, Northeast
Missouri Grain, LLC & City o Macon, Missouri, Poject Poe, avaiabe at http://
.midetceaeeg.og/poe/PojectPoe/notheatMioiGai.pd
(acceed Mach 2013).
HabecPatic
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ComBiNED hEat aND powEr systEm
BENEFits to thE END usEr
redced eneg c: CHPs greater overall eciency
reduces uel costs. By generating on-site power and thermal
energy, it is possible to displace as much as one-third to one-
hal o the overall energy expenditures at a acility, especially
in regions where purchased power rom utilities is relatively
expensive.4 As such, CHP systems generate signicant annual
operational cost savings. This is what enables CHP systems
to pay back the initial investment, and the savings continue
beyond the payback period or the remainder o the systems
useul lie. Energy-intensive industries (e.g., steel, rening,
chemicals) may especially benet rom cost savings related
to electrical power and thermal energy.
Ne eene e: CHP systems can also oer new
sources o income. For example, excess electricity can be
sold to a utility i agreements and protocols can be arranged.
CHP systems can also provide saleable steam and heat or
other industry-specic products. While these markets are
emerging, additional revenue streams or CHP could include
certain types o clean energy credits as well as payments orproviding demand response and capacity reserves.
inceed ceene: Energy bill savings and
additional revenue streams provided by CHP systems can
be reinvested in acilities (or companies at large) to support
acility expansion and other capital projects, to hire or retain
workers, or in other initiatives that enhance competitiveness.
CHP systems can also earn Leadership in Energy and
Environmental Design (LEED) recognition and Energy
Star CHP awards. Companies could use this recognition to
dierentiate themselves in the marketplace and help ulll
corporate social responsibility goals.
OVErVIEw: Pepi Fito-la pat i kiig, Coectict, i a 275,000-qae-oot
aciit ith moe tha 400 empoee. I 2009, Fito-la itaed a soa Tbie
Ceta 50 ga tbie ad a heat ecove team geeato (HrsG) om retech
Boie stem. The CHP tem meet 90 pecet o the aciit eectica eed,
ad the HrsG e the exhat heat om the ga tbie to podce 48,000 pod
o team pe ho to heat the oi i to chip e. I additio, the exhat heat om
the e i ecoveed ad ed o pace heatig. A a 24/7 aciit, eiabiit a
a age dive i Fito-la deciio to ita a CHP tem; the pat ca be i
iad mode hod the gid go do. Togethe, the o-emiio ga tbie adHrsG ith eective catatic edctio have edced the aciit nOX emiio to
2.5 pat pe miio.
sECTOr: Food poceig
OPErATIOn sTArT: 2009
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurErs: soa Tbie,
retech Boie stem
CAPACITy: 4.5 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: n/A
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n reiabiit
n redced nOx emiio
F-l kiig, CT
6
Source:u.s. Depatmet o Eeg, notheat Cea Eeg Appicatio Cete, Frito-Lay Killingly, Poject Poe, 2010,
avaiabe at http://.otheatceaeeg.og/poe/docmet/FitolaCaestd.pd.
inceed eneg eb: CHP systems produce both
electricity and thermal energy on-site; accordingly, they re-
duce the risk o electric grid disruptions and enhance energy
reliability.5 CHP systems have the ability to provide utility-
quality backup power capable o running even when there
is a power outage in the grid (oten reerred to as running in
island mode; a small amount o increased capital invest-
ment may be required to enable this benet).6 Power outages
can be very costly or companiesor example, a one-hour
outage at an industrial manuacturing plant can cost a com-pany more than $50,000 in losses.7 And sometimes more than
money is at stake when the power goes out. The increased
reliability that CHP systems provide is especially important
or acilities where power is mission-critical, such as hospi-
tals, data centers, and 24/7 industrial acilities.
In act, during Hurricane Katrina in August 2005 and
Hurricane Sandy in October 2012, acilities with CHP had
uninterrupted access to reliable and essential power and
thermal amenities. These sites included the Baptist Medical
Center in Jackson, Mississippi (see case study 23); Co-Op City
in the Bronx, New York (case study 19); Sikorsky Corporation
in Stratord, CT (see case study 1); the South Oaks Hospital
in Amityville, NY; the Greenwich Hospital in Greenwich, CT;Princeton University in Princeton, NJ; The College o New
Jersey in Ewing, NJ; the Public Interest Data Center in New
York City; and New York Universitys Washington Square
campus. For New York University, the critical benets o CHP
were starkly apparent: While the Washington Square campus
had power, its Langone Medical Center lost grid and backup
power and had to evacuate all o its patients.8
Furthermore, to insulate acilities rom uel-price volatility
and possible supply risks, CHP systems can be congured
to run on multiple uels. And as another acet o energy
reliability, CHP systems can oer superior power quality
(i.e., a more regular and predictable voltage and current
prole).9 They can achieve this when isolated rom or evenwhen connected to the grid.
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Ee eneg cc enn: CHP systems are
typically scalable according to a acilitys eletrical and thermal
needs. CHP systems can sometimes also be installed more
quickly than a utility can extend the required high-voltage
transmission and distribution. CHP systems can typically be
installed within one-hal to three years, whereas transmission
build-outs can take 10 years or longer.10
ind- dc-ecc bene: CHP systems can
oten oer industry- or product-specic benets, such asn Production o higher-quality metallurgical coke (see case
study 12, SunCoke Energy)
n Utilization o carbon-dioxide emissions as ertilizer and
reduction o water usage (see case study 30, Houwelings
Tomatoes)
In addition, CHP systems can help promote the
sustainable use o otherwise wasted products and can
simpliy waste management. Some examples are
n Improved waste management and production o animal
eed (see case study 7, Gills Onions)
n Waste reduction (see case study 29, Crave Brothers
Farmstead Cheese)
n Productive use o landll waste (see case study 25,
Finley Buttes Regional Landll)
n Improved waste management (see case study 28,
Rochester Wastewater Reclamation Plant)
ComBiNED hEat aND powEr systEm
BENEFits to utilitiEs
meeng ndd: CHP systems can potentially help
acilities and utilities meet their compliance obligations
under local, state, and ederal emissions standards, such as
the recently announced air toxin standards or boilers and
power plants. While these systems on their own may not
bring acilities into compliance, they can potentially help
reduce the cost o meeting those standards and reduce the
emission o CO2 and other pollutants.
CHP and WER systems also qualiy or clean energy
portolio standards (e.g., energy eciency resource standard,
alternative energy portolio standard, renewable portolio
standard) in 24 states that specically include them as
eligible resources in some orm.11
Gee feb n e eecc gd nd deeen
neen n ne -e e n:
As demand or energy rises because o increased industrial
and commercial activity and a growing population, and
as our energy mix shits to cleaner sourcesincluding
energy eciency and an increasing penetration orenewablesour transmission system and inrastructure
will need to be enhanced to provide the fexibility necessary
to accommodate a changing suite o resources while
maintaining reliability and avoiding congestion.12
OVErVIEw: Gi Oio, the atio aget ami-oed goe ad poceo
o oio, itaed a Advaced Eeg recove stem (AErs) compiig to
300-w mote caboate e ce i 2009, to tae advatage o bioga om
the appoximate 1.5 miio pod o oio ate podced at the compa
poceig aciit each ee. Pio to itaig the tem, Gi Oio dipoed o
oio-pee ate thogh taditioa ad appicatio at the compa agicta
ed. Thi had meo advee impact, icdig oxio odo, goth
impaimet o the ed, potetia godate cotamiatio, ad the opeatig
cot o iteive abo ivoved i ate dipoa. The compa AErs heped ove
thee pobem b divetig the pevio dicaded ate to meet the aciit
eeg eed, avig the compa moe ad edcig potio. The e ce
povide 100 pecet o the poceig aciit bae-oad eeg demad ad avig
o appoximate $700,000 pe ea o the compa eeg bi. The compa ao
ave $400,000 i avoided ate-dipoa cot aa, icdig tc tip to ha
ate to the ed. I additio, it o ha a additioa team o evee om the
ae o a emaiig oid-oio ate a catte eed. Gi aad-iig temao edce geehoe ga emiio ad ate dichage om the aciit. with
a itaatio cot o $10.8 miio, the compa expect to ecove the cot o the
tem ithi ix ea.
FInAnCInG AnD InCEnTIVEs:n $2.7 miio gat om sempa Eeg se-Geeatio Icetive Pogamn $3.2 miio om the Ameica recove ad reivetmet Act
sECTOr: Food poceig
OPErATIOn sTArT: 2009
TECHnOlOGy: Fe ceFuEl: Bioga
MAnuFACTurEr: FeCe Eeg
CAPACITy: 600 w
InsTAllED COsT: $10.8 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $700,000/ea
($1.1 miio/ea, icdig avoided
ate dipoa cot)
rEPOrTED PAyBACk: 6 ea
(o Gi Oio ivetmet)
OTHEr BEnEFITs:n wate edctio
n redced emiio
n sae o copodct
G onn Oxad, CA7
Source:u.s. Depatmet o Eeg, Pacic Cea Eeg Appicatio Cete, Gills Onions, Poject Poe, Decembe 2011, avaiabe at http://.pacicceaeeg.og/
PrOJECTPrOFIlEs/pd/Gi%20Oio.pd; pdated iomatio povided b Gi Oio i emai coepodece ith nrDC, Octobe 2012.
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Non-wires alternatives, including demand response,
distributed generation systems such as CHP, and other
energy-eciency solutions, can oer a ar less capital-
intensive route than building new ossil-uel power plants
to meet this growing demand; accordingly, they provide
greater fexibility in transmission and distribution planning.13
These benets could save consumers money on their energy
bills and allow regions to more cost eectively plan new
generation and transmission inrastructure.14 In particular,
CHP systems may reduce the need to invest in transmissioninrastructure as power is generated close to where it is
needed. CHP systems may also assist in the integration
o renewables. Furthermore, as they generate power with
greater overall eciency, CHP systems may also reduce the
need to build more power-generation capacity.
In July 2011, the Federal Energy Regulatory Commission
(FERC) issued a new orderOrder 1000that could
help CHP systems play a greater role in transmission and
distribution planning.15 Among other requirements, the order
requires regional transmission planners to consider non-
wire alternatives, such as CHP systems and energy eciency,
in their planning processes to acilitate meeting existing
public policy goals, such as state energy-eciency andrenewable-energy standards. As the order was only recently
implemented, its ull eects remain to be seen.
Additionally, to the extent that CHP systems could provide
or demand response, FERCs Order 745 lays out guidelines
or appropriate compensation in applicable markets.16
ComBiNED hEat aND powEr systEm
BENEFits to CommuNitiEs
redced en: CHP systems reduce emissions o
CO2 and other pollutants, including nitrogen oxides, sulur
dioxide, particulates, and other greenhouse gases. (CO2 is a
global warming pollutant, while other industrial pollutants
can cause ground-level smog, acid rain, and human
health impacts such as asthma, heart disease, cancer, and
premature death.) For example, a 5-MW gas-turbine CHP
unit with an overall eciency o 75 percent reduces annual
CO2 emissions by about 50 percent, as compared with an
80-percent-ecient, on-site natural gas boiler and an average
ossil uelbased electricity generator.17 On average, making a
similar comparison, a CHP system can be expected to reduce
emissions o CO2 by about 4,000 metric tons per MW o
installed capacity.18
Jb cen: The use o CHP systems creates direct jobs in
manuacturing, engineering, installation, ongoing operation
and maintenance, and many other areas. In addition, CHP
projects create indirect jobs in the CHP industrys supply
chain and other supporting industries. Workers employedas a result o these direct and indirect jobs can spend their
received income on other goods and services, and businesses
and consumers can reinvest the energy-bill savings they
receive rom CHP systems into other projects, goods, and
services. All this activity creates and retains jobs and induces
economic growth in local communities.19 Preliminary work
suggests that each GW o installed CHP capacity may be
reasonably expected on net to create and maintain between
2,000 and 3,000 ull-time equivalent jobs throughout the
lietime o the system. These jobs would include direct jobs
in manuacturing, construction, operation and maintenance,
as well as other indirect and induced jobs (net o losses in
other sectors), both rom redirection o industrial energyexpenditures and re-spending o commercial and household
energy-bill savings.
OVErVIEw: The aget ctom ood-dig compa i ne Egad, Batteboo
ki D Co., e 16 i (heated b boie) to d ad poce mbe o ami,
mbe hoeae, ite maacte, ad cotctio compaie. yea ago,
a pee dopped dig the dig poce, eeg i the team a ot. I
1989, the aciit itaed a 380-w Tboteam bac-pee team-tbie
geeato. Thi wEr tem capte the team eeg that od be ot he
high-pee team i ditibted ito o-pee team o heatig ppoe, ad
e it to geeate eecticit. The tem had a itaatio cot o $140,000 adedce aa eeg expedite b $50,000.
sECTOr: Foet podct
OPErATIOn sTArT: 1989
TECHnOlOGy: steam tbie
FuEl: wate eeg
MAnuFACTurEr: Tboteam
CAPACITy: 380 w
InsTAllED COsT: $140,000
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $50,000/ea
rEPOrTED PAyBACk: < 3 ea
OTHEr BEnEFITs: n/A
Beb Kn D C. Batteboo, VT8
Source:Tboteam, Brattleboro Dry Kiln Company, Cae std, docmet povided b compa i Agt 2012.
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Direct jobs in the CHP industry, like many energy-
eciency industries, are oten more labor-intensive than
these in other sectors o the economy are locally bound,
and cannot be outsourced.20 For instance, engineering,
installation, operation, and maintenance must be done on-
site. In addition, a number o CHP manuacturers and service
providersincluding GE, Solar Turbines, Capstone, Carrier,
Turbosteam, ClearEdge Power, and 2G-CENERGYhave
operations in the United States.
te mnce, inn, nd ue Chp
se Cee mn Dec nd indec Jb
Geate depomet o CHP i divig job goth.
Hee ae exampe o e ad etaied job at
maactig aciitie:
n AceoMitta ceated appoximate 360 maactig
ad cotctio job om the itaatio o a 38-Mw
CHP tem at the compa Idiaa Habo aciit i
Eat Chicago, Idiaa. The poject i ao expected to
hep etai 6,000 empoee at the aciit b oeig
the compa tee podctio cot b $5 pe to ad
timate maig the pat moe competitive.21
n The lide Cogeeatio aciit i lide, ne Jee,
ceated 60 -time job i opeatio ad maiteace
at the pat.22
n Etha Ae ite acto i Vemot a abe to
ta i bie ad etai 550 empoee becae o
edced eeg cot om the itaatio o a CHP
tem.23
Hee ae exampe o e ad etaied job ithi the
CHP idt:
n
GE empo appoximate 1,000 odide a pato it CHP bie, icdig oe at it Hoto,
Texa, ad waeha, wicoi, aciitie.24
n 2G-CEnErGy, a maacte o bioga, ata ga,
ga, ad othe CHP tem, aoced i 2012
that it i etabihig a opeatio i st. Agtie,
Foida, to podce advaced CHP tem. It pa to
hie 125 oe.25
n recced Eeg Deveopmet, a CHP ad ate
eeg ecove compa headqateed jt otide
Chicago, i the at e ea ha ceated o etaied
moe tha 250 job ithi the compa aco the
uited state.
26
inegn enebe eneg: Renewable energy
use is rapidly expanding in the United States. However, at
present, some renewable sources can be intermittent. CHP
systems, especially those running on natural gas, can provide
additional fexibility and reliability when used in conjunction
with potentially variable renewable energy systems by
supplying standby power, able to kick in when there is, or
example, cloud cover or a drop in wind speed. In act, with
increasing penetration o renewable energy, CHP developers
are exploring opportunities to use their systems to supportrenewable energy deployment.
Additionally, CHP systems are typically quite fexible and
can use a variety o uels. As such, CHP systems could be used
to promote the use o renewable uels, such as sustainably
sourced biomass and biogas. Among the sites oering such
opportunities are landlls (see case study 25, Finley Buttes
Regional Landll), wastewater treatment acilities (see case
study 28, Rochester Wastewater Reclamation Plant), and even
arms (see case study 7, Gills Onions; case study 29, Crave
Brothers Farmstead Cheese.)
redced e ce: CHP systems have
nancial benets that spread beyond the acilities where theyare deployed. For instance, well-designed and well-operated
CHP systems can reduce the need to build additional power
plants that are more expensive. Accordingly, such CHP
systems signicantly reduce the cost o the overall power
system.27 These savings accrue to a given utilitys entire
customer base, beneting consumers, businesses, and the
community at large.
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OVErVIEw: I 1992, lide Cogeeatio Pat bega
opeatio o a 900-Mw CHP tem coitig o ve ga
tbie. Oed b GE, the aciit e it eecticit to
Cooidated Edio i ne yo ad to the eectica gid i
ne Jee, Pevaia, ad Maad. The team i od
to the Baa ree. The pat icde thee vaiabe-
eqec taome ad e mat-gid techoog, hich
ao opeato to coto poe fo betee gid. lideCogeeatio Pat ha ceated 60 -time job i opeatio
ad maiteace.
FInAnCInG AnD InCEnTIVEs: lide Cogeeatio Pat
cotibted to the apid expaio o CHP i ne Jee.
Thi heped the 1978 Fedea Pbic utiitie Poic Act,
hich eqied tate to ecoage CHP b eqiig tiit
moopoie to pchae poe om idepedet geeato.
ne Jee CHP aciitie iceaed i capacit 40-od om
1986 to 1996.
sECTOr: Poe geeatio
OPErATIOn sTArT: 1992TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: n/A
CAPACITy: 900 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: n/A
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
n Ceatio o 60 -time job
lnden Cgenen pn lide, nJ10
Source:Pe Eviomet Gop, Combined Heat and Power: Energy
Efciency to Repower U.S. Manuacturing, Fact sheet, Ma 2011, avaiabe at
http://.peeviomet.og/poadedFie/PEG/Pbicatio/Fact_sheet/
CHP%20nEw%20JErsEy%20HI-rEs%2012.6.11.pd.
OVErVIEw: Joho & Joho acqied Taom
Phamacetica ocated i lexigto, Maachett,
i 2005. I 2008, the compa itaed a 250-w oa-
aited CHP tem to edce cot ad geehoe ga
emiio to comp ith a copoate taiabiit madate.
Deiged ad itaed b Dee-rad, the ti-geeatio
tem povide eiabe eecticit, heatig, ad cooigto the maactig pat. The CHP tem ca podce
p to 1.3 miio Bitih thema it (Bt) o 180F hot
ate o 75 to o chied ate, o o a tpica da it ca
deive appoximate 38 pecet o the ite hot ate ad
29 pecet o it cooig eed. Togethe ith the aciit
eeabe oa thema geeatio, the CHP tem et
i aa eeg avig o $220,000 ad aa cabo
ootpit edctio o ea 1,000 to.
sECTOr: Phamacetica
OPErATIOn sTArT: 2008
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: Dee-rad
CAPACITy: 250 w
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: Appoximate 80%
EnErGy sAVInGs: $220,000/ea
(icdig oa geeatio)
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:
n redced geehoe ga emiio
Jnn & Jnn tn pcec
lexigto, MA9
Source:CHP stem Hepig Phamacetica Compa Exceed Goa to redce
Eeg Cot ad Geehoe Emiio, Solar Thermal Magazine, avaiabe
at http://.oathemamagazie.com/2009/10/29/chp-tem-hepig-
phamacetica-compa-exceed-goa-to-edce-eeg-cot-ad-geehoe-
emiio/ (acceed Mach 2013).
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OVErVIEw: The aget teemaig aciit i noth Ameica,
the AceoMitta Idiaa Habo compex opeate ve bat
ace at capacit ith a teemaig capabiit o 9.5
miio to pe ea. I a 2012, the compa competed
the itaatio o a 38-Mw CHP tem to tiize pevio
ated bat ace ga (BFG), a b-podct o the io
maig poce, to podce eecticit o-ite. The e
$63.2 miio ate eeg ecove tem capteappoximate 46 biio cbic eet o BFG om the aciit
no. 7 bat ace ad e it to podce team to geeate
eecticit. The itaatio i expected to oe the aciit
aa eeg cot b ea $20 miio ad edce aa
CO2 emiio b 340,000 to. I additio, the poject
ceated appoximate 360 maactig ad cotctio
job ad i expected to hep etai 6,000 empoee at the
aciit b oeig the podctio cot o tee b $5 pe to.
FInAnCInG AnD InCEnTIVEs: $31.6 miio matchig gat
om the u.s. Depatmet o Eeg de the Ameica
recove ad reivetmet Act.
sECTOr: Pima meta
OPErATIOn sTArT: 2012
TECHnOlOGy: steam tbie
FuEl: wate eeg
MAnuFACTurEr: n/A
CAPACITy: 38 Mw
InsTAllED COsT: $63.2 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $20 miio/ea
rEPOrTED PAyBACk: 1.6 ea
(o AceoMitta ivetmet)
OTHEr BEnEFITs:n redced emiio
n reiabiit
n Job ceatio
acem indn hb Eat Chicago, In11
Source:AceoMitta, ArcelorMittal Indiana Harbor (East Chicago, Ind.) Energy
Recovery & Reuse 504 Boiler Project, Cae std, 2012, (docmet povided b
compa i septembe 2012).
OVErVIEw: sCoe Eeg, the aget podce o
metagica coe i the Ameica, e a advaced heat
ecove coe-maig poce that ied a highe qait
podct, geeate eeg om ate heat, ad hep edce
emiio. sCoe Eeg ove podce oid tate
cabo (coe) om coa, hie thema detoig voatie
matte. Thei peio coe exhibit a high aveage ize ad
high coe tegth ate eactio vae, ehacig io, adtee-maig ecoomic. sCoe Eeg coe-maig
poce e ate heat ecove techoogie to geeate
team ad eecticit, hich ca be ed ithi the aciit o
od to the tiit.
sECTOr: Pima meta
OPErATIOn sTArT: 2011
TECHnOlOGy: steam tbie
FuEl: wate heat
MAnuFACTurEr: n/A
CAPACITy: 45 Mw
InsTAllED COsT: ($410 miio o etie pat)
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: n/A
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n Podctio o highe qait metagica coe
n Additioa evee team o eecticit ae
n redced emiio
snCke Eneg Middeto, OH12
Source:sCoe Eeg, O Iovatio, avaiabe at http://.coe.com/o-
iovatio/coe-a.php (acceed Mach 2013); sCoe Eeg,
sCoe Eeg: The High Degee peetatio at the Combied Heat ad Poewohop, Comb, OH, Je 20, 2012, avaiabe at http://.pc.ohio.gov/
empiba/e/media/CMsFie/webcatreated/155/sCoe%20Eeg%20
-%20sipoth.pptx.
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DEploymENt potENtial For ComBiNED
hEat aND powEr tEChNoloGy
While 87 percent o the 82 GW o CHP capacity is in
manuacturing plants around the country, a growing number
o acilities in the commercial, agricultural, and residential
sectors are considering its use.
28
As explained earlier in thispaper, CHP expansion is very plausible in upcoming years or
several reasons: CHP is more reliable and cost-eective than
ever beore; the price o natural gas, the most common uel
in CHP applications, has dropped; and there are expanding
state and utility incentives available or CHP in various orms.
Table 1 shows the spectrum o industries in which CHP can
be used. This is not an exhaustive list, and CHP can be used
elsewhere, too. Table 1 also indexes and highlights the case
studies discussed in this report, selected across a number o
industries and rom nearly 20 states nationwide, along with
the key benets that the systems provide. Figure 2 shows
the geographic distribution o these case studies. A larger
compilation o such studies has been compiled by the U.S.Department o Energy (DOE).29
There is tremendous potential or even greater deployment
o CHP. A 2009 study by McKinsey & Company estimated
that 50 GW o CHP in industrial and large commercial/
institutional applications could be deployed at reasonable
returns with equipment and energy prices available at
that time.30 Going beyond the currently installed capacity,
the remaining technical potential o CHP systems (where
they are technically easible and avorable to deploy) in the
industrial and commercial/institutional sectors is roughly65 GW each.31 A breakdown o this technical potential in key
sectors is given in gure 3. However, the 65 GW o remaining
industrial technical potential accounts only or systems with
sizes constrained such that they do not have excess power
to export to the grid. But i systems can be sized to enable
export o power to the grid, then the remaining industrial
technical potential doubles, to 130 GW.
In August 2012, President Obama issued an executive
order announcing a national goal o deploying 40 GW o
new, cost-eective CHP in the industrial sector by the end
o 2020.32 As part o this ederally acilitated eort, the State
and Local Energy Eciency Action Network (SEE Action),
coordinated by the DOE and the U.S. EnvironmentalProtection Agency, released the Guide to the Successful
Implementation of State Combined Heat and Power Policies.33
Furthermore, as noted previously, many states have
encouraged CHP technologies in some manner through
clean energy standards and other incentives.
OVErVIEw: seama Pape Compa o Otte rive, Maachett, i a 24/7
idtia mi that podce 75 to o fat tie pape pe da. I 2009, the compa
competed the itaatio o a 283-w CHP tem to achieve cot avig ad
edce emiio. The aciit opeate a bac-pee tbie, hich geeate
team at a highe tempeate ad pee tha i eqied o seama pocee,
ad the fo the exhat team thogh a tbie to geeate 1,450 Mwh o
eecticit each ea. Pio to itaatio, the mi a ig appoximate 1.7 miio
gao o no. 6 e oi ad 24,000 Mwh o eecticit pe ea. I cotat, o the
aciit CHP tem i eed b 27,000 to o ood, ad the mi e o 21,000
Mwh o eecticit pe ea. The impovemet have edced seama Pape e
age to e tha 70,000 gao o e oi pe ea ad geeated aa eeg
avig o $1.5 miio. I additio, the CHP tem ha edced CO2 emiio b
99 pecet ad nOX emiio b 30 pecet.
sECTOr: Pp ad pape
OPErATIOn sTArT: 2009
TECHnOlOGy: Bac-peeteam tbie
FuEl: Bioma
MAnuFACTurErs: Tboteam,
Ht
CAPACITy: 283 w
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $1.5 miio/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:
n redce CO2 ad nOX emiio
sen pe C. Otte rive, MA13
Source:u.s. Depatmet o Eeg, notheat Cea Eeg Appicatio Cete, Seaman Paper, Poject Poe, Agt 2010,
avaiabe at http://.otheatceaeeg.og/poe/docmet/seamapape.pd.
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OVErVIEw: Ego, i Vicbg, Miiippi, i a cde-oi
poceo ad maacte o aphat podct. I 1994, the
compa itaed a 4.72-Mw CHP tem to pp eiabe
eecticit ad mae e o the heat to ceate team o the
ee. A o the eecticit geeated i ed to poe
pocee at the aciit. The team podced i deiveed
to the ee at a pee o 650 pod pe qae ich
(pi), ad the aciit ca podce 50,000 pod pe ho atthi pee. lo-pee team om the CHP tem i
ed b aciit pocee a e. The etie CHP tem i
goveed b demad, hich eqie a opeato to moito
coe the e o the CHP tem; a the eed o eecticit
o team fctate, o doe the e o the CHP tem
(ad a epaate dct be, hich povide eogh fexibiit
to pp ciet team). whie the podctio o the
eecticit i moe expeive tha big it om the tiit
povide, the team podctio ave Ego a etimated
$1.7 miio pe ea.
sECTOr: reeie (cde-oi poceo)
OPErATIOn sTArT: 1994
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: soa Tbie
CAPACITy: 4.72 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $1.7 miio/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:
n reiabiit (tabe oce o poe)
Egn, inc. Vicbg, Ms14
Source:u.s. Depatmet o Eeg, sotheat Cea Eeg Appicatio Cete,
Ergon, Inc., Poject Poe, 2011, avaiabe at http://.otheatceaeeg.og/
poe/e_poe/Ego_Poject_Poe.pd.
OVErVIEw: BP Heio Paza i a 355,000-qae-oot oce
bidig ad data cete that hoe BP noth Ameica Ga
ad Poe bie ad upteam leaig Cete. sice
eeg, ecit, ad eiabiit ae eetia o ch a aciit,
a CHP tem a itaed i 2009. The pat coit
o a 4.6-Mw ga tbie, maacted b soa Tbie,icdig a heat ecove tem tiizig a aboptio chie
ad eective catatic edctio techoog o emiio
edctio. The CHP tem i capabe o meetig a o the
aciit eeg eed ad heped BP achieve lEED Patim
ceticatio. whe oig bacot hit Hoto i Feba
2011, the aciit o-ite, cea-big poe pat emaied
i opeatio, eig that bie cotied 24/7 ithot
iteptio.
sECTOr: Data cete, oce bidig
OPErATIOn sTArT: 2009
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: soa Tbie
CAPACITy: 4.6 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: 34% cot avig pe ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n reiabiit (povide poe i abece o gid)
n
Eviometa taiabiitn Additioa bacp thogh uiteptibe Poe stem
Bp he pz Hoto, TX15
Source:u.s. Depatmet o Eeg, G Coat Cea Eeg Appicatio Cete,
BP Helios Plaza, Poject Poe, 2011, avaiabe at http://e.hac.ed/ite/
gcoatchp/Caestdie/BP-Heio.pd.
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paGE 17
|Cbned he nd pe se
3
5
9
1423
20
15
2728
29
25
16
2
12
1
9
10
18
2
12
4
14
17
5
6
11
4
13
15
22
16
7
2426
13
8 6
1
19
1817
10
8
3
11
217
30
9
Fge 2: lcn Feed Ce sde Cne Chp-reed oenEight-to Gw o CHP capacit i ditibted ove moe tha 4,100 ite aco eve tate i the uited state.
CasE stuDiEs
1. skk ac C.
statod, CT
2. Bmw mncng C.
spatabg, sC
3. D Cec C.
Paqemie, lA
4. hbec pcOtaio, ny
5. Ne m Gn,
llC (db) poEt
Benng mcn
Maco, MO
6. F-l
kiig, CT
7. G onn
Oxad, CA
8. Beb Kn D C.
Batteboo, VT
9. Jnn & Jnn
tn pceclexigto, MA
10. lnden Cgenen pn
lide, nJ
11. acem indn
hb
Eat Chicago, In
12. snCke Eneg
Middeto, OH
13. sen pe C.
Otte rive, MA
14. Egn
Vicbg, Ms
15. Bp he pz
Hoto, TX
16. snbd sk nd se
re
sobid, uT
17. hn Ne yk
ne yo, ny
18. a lnen s C.
Boo, ny
19. C-o C
Box, ny
20. tnec pd
Bdng
sa Facico, CA
21. rge Gden
Cooa De Ma, CA
22. te EnegCn (tECo)
Hoto, TX
23. B medc Cene
Jaco, Ms
24. Be me h
Beoit, wI
25. Fne Be regn
lnd
Boadma, Or
26. N sn Ge lke
Geat lae, Il
27. Cne une
Ithaca, ny
28. rcee wee
recn pn
rochete, Mn
29. Ce Be Fed
Ceee
wateoo, wI
30. heng te
Camaio, CA
maNuFaCturErs aND
DEvElopErs
1. 2G CENErGy
st. Agtie, Fl
2. Cne
Chatoth, CA
3. Ce
Famigto, CT
4. Ce
Peoia, Il
5. CeEdge pe
Hiboo, Or
6. Dee-rnd Chp
sn
Cohaet, MA
7. Fbnk me Engne
Beoit, wI
8. Fe Ce Eneg
Dab, CT
9. GE Eneg
Hoto, TX
waeha, wI
10. h Be & wedng C.
Cooidge, GA
11. inegen pe se
Od Bethpage, ny
12. o tecnge
reo, nV
13. recced Eneg
Deeen
wetmot, Il
14. renec
Abiee, TX
15. seen Eneg
Hoto, TX
16. s tbnesa Diego, CA
17. tbe
Te Fa, MA
18. yk un pdc
G
noma, Ok
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paGE 18
|Cbned he nd pe se
Fge 3: renng tecnc pen Chpind: ~65 130 Gw; Cec/inn: ~65 Gw
Chemicals
Food
Paper
Refining
Other
Hotels
Multifamily
Office Buildings
Government Buildings
Hospitals
Universities/Colleges
Other
INDUSTRIAL
Remaining technical potential
~65 GW (up to 130 GW)*
Remaining technical potential
~65 GW
COMMERCIAL/
INSTITUTIONAL
0 10 20 30 40 50 60
Existing CHP Potential CHP
*The 65 GW of remaining industrial technical potential (with breakdown shown above) accounts only for systems withsizes constrained such that they do not have excess power to export to the grid, but if systems can be sized so as to enableexport of power to the grid, the remaining industrial technical potential doubles to 130 GW.
CHP generation capacity in gigawatts (GW)
OVErVIEw:
sobid si ad
smme reot
pa aco
2,500 ace i
sobid, utah. I
1987, the goig
eot became too
age o the tiit
25-iovot (V)
poe ie that
p the motai.
Itead o paig
o a ie pgade,
the compa decided to t to o-ite poe geeatio ad itaed a 2-Mw CHP
tem at a cot o $3.5 miio. A additioa $2.2 miio a eqied to bid a
ata ga pipeie to the aciit. with a ovea eciec o 75 pecet, the CHP
et i eeg avig o $815,000 pe ea ad ee a eiabe oce o poe
o the aciit. I the ite, heat om the CHP tem i ed o pace ad poo
heatig ad metig o o aa. I the mme, ome o the heat i ti edo pace ad poo heatig, bt the et a Caie aboptio chie o the odge
ai coditioig.
sECTOr: Hote, eot
OPErATIOn sTArT: 1987
TECHnOlOGy: recipocatig egie
FuEl: nata ga
MAnuFACTurErs: Catepia,
CaieCAPACITy: 2 Mw
InsTAllED COsT: $5.7 miio
OVErAll EFFICIEnCy: 75%
EnErGy sAVInGs: $815,000/ea
rEPOrTED PAyBACk: 7 ea
OTHEr BEnEFITs:n reiabiit
Source:u.s. Depatmet o Eeg, Itemotai Cea Eeg Appicatio Cete, Snowbird Ski and Summer Resort, Poject Poe, 2011,
avaiabe at http://.itemotaiceaeeg.og/poe/sobid-Poject_Poe.pd.
snbd sk nd se re sobid, uT16
wikimedia
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paGE 19
|Cbned he nd pe se
Five main technologies are used in typical CHP systems.34
These technologies, sometimes reerred to as prime
movers, are:
n G bne ( cbn bne). Such turbinesrevolutionized airplane propulsion in the 1940s. Since
the 1990s they have become a popular choice or power-
generation systems, including CHP. In this technology, air
is taken in, compressed, burned with a uel (usually natural
gas), and then ejected to drive a turbine that generates
power. Heat can be recovered rom the exhaust and put to
use or heating, cooling, or industrial processes.
n se bne ( bck-ee e bne).
These are used in a majority o power plants across the
United States. In these turbines, water is pressurized,
heated by a burning uel, and converted to steam, which
is then used to drive a turbine that generates power.The steam turbine was the earliest prime mover used
in large-scale power generation, dating back to the late
1800s. In a CHP system, any exhaust steam let ater the
power-generation step can be put to productive use, as
described above.
n reccng engne. Such engines are used in most
motor vehicles, and the technology has signicantly
improved in electrical eciencies over the past ew
decades. The engines have a combustion chamber inwhich uel is burned. The combustion pushes a piston
that drives a crankshat to generate power. Heat can
be recovered rom the exhaust and jacket water and
put to use.
n Fe ce. Fuel cells electrochemically convert uel to
generate electricity. Typically this involves the combining
o hydrogen and oxygen. A ossil uel, such as natural gas,
can be chemically reormed to produce hydrogen. Heat
generated during the uel cells electrochemical reaction
can be recovered or certain uses, such as heating water.
n mcbne. These are essentially small gas turbines
that employ modied processes and structures to generatepower and heat.
thE FivE KEy tEChNoloGiEs DEployED iN ComBiNED
hEat powEr systEms
CHP temga tbie (cete), ith hot gae headig to heat ecove team geeato (ight).
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paGE 20
|Cbned he nd pe se
OVErVIEw: Ao lie, a idtia ad aciit i
Boo, ne yo, itaed to 150-w ecipocatig
egie i 2003 to edce eeg expedite. lie othe
adie, Ao lie high demad o eecticit ad hot
ate mae it a idea t o CHP. I act, the aciit e
appoximate 100,000 gao o ate heated to 160F eve
da. with a ovea eciec eachig moe tha 80 pecet,
the CHP ha eted i aa eeg avig o $120,000.I additio, the o-ite geeatio ha iceaed the aciit
eeg ecit, aoig it to emai i opeatio 14 ho a
da, 6 da a ee.
sECTOr: ladie
OPErATIOn sTArT: 2003
TECHnOlOGy: recipocatig egie
FuEl: nata ga
MAnuFACTurEr: Coat Iteige
CAPACITy: 300 w
InsTAllED COsT: n/AOVErAll EFFICIEnCy: > 50%
EnErGy sAVInGs: $120,000/ea
rEPOrTED PAyBACk: < 3 ea
OTHEr BEnEFITs:n reiabiit
a lnen s C. Boo, ny18
Source:CDH Eeg Cop., Arrow Linen, Poject Poe, 2010, avaiabe at
http://cdhg1.e.opehotig.com/Fact%20sheet/Ao%20lie%20
CHP%20site%20Fact%20sheet.pd
OVErVIEw: The Hito ne yo i the aget hote i ne
yo Cit. The 46-to bidig hoe abot 2,000 get
oom p othe aciitie ad ha. The eectica demad
aveage moe tha 3 Mw aog ith igicat thema
heat oad. I the mme o 2007, a 200-w phophoic-
acid e ce CHP tem a itaed, hich povide
abot 6 pecet o the eecticit ad 8 pecet o the heatig
eed. A e ce tem a od to be attactive i thiba ettig becae it doe ot ceate vibatio, oie,
o viibe exhat. The hote aticipate edcig it aa
cabo ootpit b abot 800 to a ea, i additio to
nOX emiio edctio o ea 3 to pe ea. A eeg
ca accot o moe tha 6 pecet o a hote opeatig
cot, the CHP tem cotibte to moe tha $80,000
i aa avig. I additio, the tem coe vaabe
eiabiit a it ca opeate idepedet o the
gid i emegecie.
sECTOr: Hote, eot
OPErATIOn sTArT: 2007
TECHnOlOGy: Fe ce
FuEl: nata ga
MAnuFACTurEr: uTC Poe (o CeaEdge Poe)
CAPACITy: 200 w
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: > 50%
EnErGy sAVInGs: $80,000/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
n reiabiit
hn Ne yk ne yo, ny17
Source:ne yo state Eeg reeach ad Deveopmet Athoit, Hilton New
York Fuel Cell Provides Electricity and DHW, avaiabe at http://cdhg1.e.
opehotig.com/Fact%20sheet/Hito%20ne%20yo%20Fact%20sheet.pd
(acceed Mach 2013).
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paGE 21
|Cbned he nd pe se
Newer prime-mover technologies are nding greater use in
the marketplace as well. One o these is the Organic Rankine
Cycle engine, which works on a principle similar to that o
a steam turbine but usually uses a fuid other than water. It
is oten used in waste-energy recovery systems where low-
grade heat, such as low-pressure steam, is available. Another
emerging CHP technology is the Stirling engine.35
Prime movers orm the core o a CHP system. Auxiliary
technologies that are typically used include heat recovery
steam generators to capture heat and use it benecially,absorption chillers that utilize thermal energy to provide
cooling, and desiccant dehumidication systems.36 Other
technology can also be added on, such as selective catalytic
reduction to reduce NOXemissions (by up to 90 percent rom
gas turbine exhaust), but this may reduce eciencies.
A variety o uels can be used in CHP systems, including
natural gas, biogas, landll gas, coal, biomass, waste
products, and exhaust gas.
A summary o the key CHP technologies along with their
advantages, constraints, industry suitability, and economics,
is given in table 2.37
Schematics o how some o these prime-mover andauxiliary technologies can be congured are shown in
gure 4.
tbe 2: pe me tecnge nd te Ccec
adnge Cnn
sbe
nde
C
Capita cot ($/w) +
O&M cot ($/wh)
oe
ecenc
G bne
(500 w to
350 Mw)
Low emissions
High reliability
No cooling required
High-grade heat
avaiabe
Poor efciency at
o oad
Output falls as ambient
tempeate ie
Requires high-pressure
ga o i-hoe ga
compeo
Chemicals
District energy
Food processing
Oil recovery
Paper/pulp
Rening
Universities
Waste
teatmet
$1,000 to $1,300 /w
+
0.5 to 1 cet/wh
75% to
85%
se bne
(500 w to
350 Mw)
High overall efciency
High reliability
Flexible fuel usage
Long working life
Variable power-heat ratio
Can meet more
tha oe heat-gade
eqiemet
Slow start up
Cannot attain high
poe-heat atio
Agriculture
Ethanol plants
Lumber mills
Paper/pulp
Primary metals
Rening
$400 to $1,100 /w
+
< 0.5 cet/wh
85% to
90%
reccng
engne
(100 w to
5 Mw)
Low investment cost
High power efciency
Good load following
capabiit
Fast start-up
Easy maintenance
High maintenance costs
Relatively high
emiio
Cooling required
Limited to lower-
tempeate appicatio
Loud (low-pitch)
oie
Chemical
poceig
Dairy farms
Data centers
Food processing
Health care
Ofce buildings
Universities
Water treatment
$1,100 to $2,200 /w
+
1 to 2 cet/wh
75% to
90%
Fe ce
(1 w to
1,200 w)
Low emissions
High efciency
Low noise
Modular design
High costs
Fuels require processing
Low durability
Low power density
Backup/portable
poe
Distributed
geeatio
Material
hadig
Residential
Transportation
$5,000 to $6,500 /w
+
3 to 4 cet/wh
60% to
90%
mcbne
(30 w to
400 w)
Low emissions
No cooling required
Compact size
High costs
Relatively low efciency
Limited to lower-
tempeate appicatio
Education
Health care
Lodging
Ofce buildings
Residential
Warehousing
$2,400 to $3,000 /w
+
1 to 2.5 cet/wh
70% to
85%
larGE-sCalE
sma
ll-sCalE
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paGE 22
|Cbned he nd pe se
POWER
FUEL
NATURAL
GAS
EITHER/OR
FUEL
USEFUL HEAT
(STEAMMED/
HIGH PRESSURE)
CONVENTIONAL CHP SYSTEMS
FUEL SPECIFICALLY BURNED
TO PROVIDE POWER AND HEAT
WASTE ENERGY RECOVERY SYSTEMS
FUEL FIRST BURNED FOR INDUSTRIAL
PROCESS, THEN WASTE ENERGY USED
TO PROVIDE POWER AND HEAT
CONVENTIONAL CHP SYSTEM WASTE ENERGY RECOVERY SYSTEM
GAS
TURBINE
POWER
(ADDITIONAL)
USEFUL HEAT
(STEAM
LOW PRESSURE)
STEAM
TURBINE
POWER
USEFUL
HEAT
(STEAM)
WASTED HEAT AND/OR
OTHER WASTED ENERGY
STEAM
TURBINE
HEAT RECOVERY
STEAM
GENERATOR
HEAT RECOVERY
STEAM
GENERATOR
INDUSTRIAL
PROCESS
Fge 4: scec Chp se
FineyButteregiona
landf
recipocatig egie pime move.
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paGE 23
|Cbned he nd pe se
OVErVIEw: Co-Op Cit i oe o the aget hoig coopeative i the od ad
the aget eidetia deveopmet i the uited state. It i ocated i the Box
(otheate ne yo Cit) ad cove 330 ace. wee it to be coideed a
epaate micipait, it od a a the teth-aget cit i ne yo state.
It boat moe tha 14,000 apatmet it, 35 high-ie bidig, eve cte
o to hoe, eight paig gaage, thee hoppig cete, a high choo, to
midde choo, ad thee gade choo. Co-Op Cit i poeed b a 40-Mw CHP
tem that tiize both ga tbie ad team tbie. The CHP tem povide
Co-Op Cit etie eidetia eecticit eed ad a potio o it pace-heatig
eed. Exce poe ca be expoted to Cooidated Edio gid. The CHP tem
eabed miio o doa o eeg cot avig, ome o hich ee appied to
aade ad ido pgade. The tem i ao ceta to Co-Op Cit poe
eiabiit. I act, ate Hicae sad batteed the Eat Coat egio i ate Octobe2012, Co-Op Cit ight did ot bi.
sECTOr: Mtiami hoig
OPErATIOn sTArT: 2011
TECHnOlOGy: Ga tbie,
team tbie
FuEl: nata ga
MAnuFACTurEr: sieme
CAPACITy: 40 Mw
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: Ma miio
o doa pe earEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n reiabiit (povide poe
i abece o gid)
C-o C Box, ny19
Source:leo Fom whee The light staed O Dig sad, Forbes, Octobe 2012, avaiabe at http://.obe.com/ite/iiampetad/2012/10/31/hee-the-
ight-taed-o-dig-hicae-ad/; ne yo state Eeg reeach Deveopmet Athoit, DG/CHP Itegated Data stem, avaiabe at http://chp.eda.og/
aciitie/detai.cm?Faciit=167 (acceed Mach 2013).
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paGE 24
|Cbned he nd pe se
OVErVIEw: Dive b it eeg eciec ad taiabiit
goa, roge Gade, a detiatio home ad gade toe
i Oage Cot, Caioia, itaed thee e-ce CHP
tem to povide 15 w o poe o the aciit, i Je
2012. The itaatio a the et o coaboatio betee
the etai cete ad CeaEdge Poe, a maacte o
caabe e-ce tem o o-ite poe geeatio.
The CHP tem povide heat ad eectica poe tothe eve-ace aciit p ma othe beet, icdig
moe tha $6,500 i et poject eeg-bi avig pe ea,
geate coto ove the aciit eeg e, ad iceaed
eiabiit. I additio, the tem ha edced the cete
aa geehoe ga emiio b 41 pecet ad e
comptio b 38 pecet.
FInAnCInG AnD InCEnTIVEs: The itaatio o the tem
a pat o a poject ppoted b the u.s. DOE Oce o
Eeg Eciec ad reeabe Eeg to acceeate the
e o e-ce techoogie i a vaiet o idtie. The
DOE Pacic nothet natioa laboato i ao be
aazig the tem peomace to ee the pojected
beet ae achieved.
sECTOr: retai cete
OPErATIOn sTArT: 2012
TECHnOlOGy: Fe-ce
FuEl: nata ga
MAnuFACTurEr: CeaEdge Poe
CAPACITy: 15 w
InsTAllED COsT: n/A
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $6,500/ea
rEPOrTED PAyBACk: 3.4 ea
OTHEr BEnEFITs:n redced emiio
rge Gden Cooa De Ma, CA21
Source:CeaEdge Poe, roge Gade Pate ith CeaEdge Poe
to sppot Eviometa staiabe Bie Pactice, Business Wire,
Je 7, 2012, avaiabe at http://.maetatch.com/to/oge-gade-
pate-ith-ceaedge-poe-to-ppot-eviometa-taiabe-bie-
pactice-2012-06-07; pdated iomatio povided b CeaEdge Poe i emai
coepodece ith nrDC, Mach 2013.
OVErVIEw: I 2007, the oe o the icoic Taameica
Pamid Bidig i sa Facico itaed to 500-w
ata ga-ed ecipocatig egie. CHP povide the
48-to bidig, hich hoe oce ad etai pace,
ith 100 pecet o it team demad, ad 71 pecet o
it eectica demad. The vat majoit o thema eeg
podced i ed to poe the maive 320-to capacit yo
chie. At a itaed cot o $3.4 miio, the poject had a
epoted pabac o e tha ve ea.
FInAnCInG AnD InCEnTIVEs: The Caioia Pbic utiit
Commiio se-Geeatig Icetive Pogam paid o
13 pecet o the capita cot.
sECTOr: Oce bidig
OPErATIOn sTArT: 2007TECHnOlOGy: recipocatig egie
FuEl: nata ga
MAnuFACTurErs: GE, yo
CAPACITy: 1 Mw
InsTAllED COsT: $3.4 miio
OVErAll EFFICIEnCy: 50%
EnErGy sAVInGs: n/A
rEPOrTED PAyBACk: < 5 ea
OTHEr BEnEFITs:n redced eiace o the gid
tnec pd Bdng sa Facico, CA20
Source:u.s. Depatmet o Eeg, Pacic Cea Eeg Appicatio Cete,
Transamerica Pyramid Building, Poject Poe, novembe 2010, avaiabe at http://
.pacicceaeeg.og/PrOJECTPrOFIlEs/pd/Pamid%20Bidig.pd.
TanameicaPyamidBuiding
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paGE 25
|Cbned he nd pe se
As alluded to previously in the report, beore considering
the use o CHP systems, acilities must make certain that all
existing electrical and thermal loads and processes are as
ecient as possible. This will ensure that CHP systems arenot larger and more expensive than necessary.
While an up-ront investment is required to install a CHP
system, energy cost savings provided by the system can pay
back the investment over time. The economics o a CHP
system depend on site-specic conditions and can vary
widely. However, where site conditions are conducive and
when congured and operated optimally, CHP systems can
provide signicant energy and cost savings, along with other
benets as discussed previously.
ovErall opEratioNal EFFiCiENCy
DEtErmiNEs thE ECoNomiCs oF a
Chp systEm
Beore a discussion o nancial details, one should be aware
o several attributes that are essential or ecient and cost-
eective CHP systems:
n Ceen e nd eecc need. As
CHP systems generate power and thermal energy
simultaneously, a acility (or group o acilities or a small
region) with a roughly stable mix o coincident electricity
and thermal needs, daily and seasonally, could capitalize
on a CHP systems unique advantages to the largest extent.
ECoNomiC aNalysis oF ComBiNED hEat
aND powEr tEChNoloGiEs38
OVErVIEw: A a ditict eeg tem, TECO povide thema eeg (chied ate
ad team) o ai-coditioig, heatig, ad poce eed to the itittio i the
Texa Medica Cetethe aget medica cete i the od. statig opeatio i
2010, TECO 48-Mw CHP pat a deiged to meet the medica cete goig
eed ith iceaed eiabiit, eviometa epoibiit, ad eeg eciec.
Depite ecod eectic demad, TECO ha bee abe to meet 100 pecet o it pea
eecticit eed ad 100 pecet o TECO ctome pea chied-ate ad team
oad. The CHP tem ca ao povide itepted emegec poe to the
etie aciit i the evet o a pooged gid otage. The poject impoved the pat
ovea eciec om 42 pecet to moe tha 80 pecet. It i pojected to edce
oi-e comptio b 60 pecet ad to ave the Texa Medica Cete moe
tha $200 miio dig the ext 15 ea. I additio, the CHP tem ha edcedCO2 emiio b moe tha 300,000 to pe ea ad nOX emiio b moe tha
300 to aa.
FInAnCInG AnD InCEnTIVEs:n $10 miio i u.s. DOE dig om the Ameica recove ad
reivetmet Act o 2009n $325 miio i tax exempt bod
sECTOr: Ditict eeg
OPErATIOn sTArT: 2010
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurEr: GE
CAPACITy: 48 Mw
InsTAllED COsT: $377 miio
OVErAll EFFICIEnCy: > 80%
EnErGy sAVInGs: $200 miio
ove 15 earEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n reiabiit (48 Mw i bacp
emegec poe)
n redce emiio
te Eneg Cn (tECo) Hoto, TX22
Source:Thema Eeg Copoatio, Combied Heat ad Poe i the Texa Medica Cete, (peetatio), Combied Heat ad Poe wohop, Comb, OH,
Je 20, 2012, avaiabe at http://.pc.ohio.gov/empiba/e/media/CMsFie/webcatreated/155/TECO%20CHP%20-%20io.ppt; u.s. DOE, Eeg
Eciec ad reeabe Eeg, Advaced Maactig Oce, Thermal Energy Corporation Combined Heat and Power Project, 2010, avaiabe at http://1.eee.
eeg.gov/idt/ditibtedeeg/pd/teco_chp.pd.
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n szng ccdng e need. As produced thermal
energy is most eciently used at the acility or locally, it
is best to size and congure a CHP system to meet the
thermal needs o a acility. Systems sized larger than that
can result in wasted thermal energy that detracts rom
overall eciency and energy bill savings. The electricity
generated can be either used at the acility or sold to
the grid.
n lng eng . As with most projects requiring
up-ront investment, a CHP system that can run or longerhours (daily and seasonally) and at high eciency will be
most economic. To acilitate this, CHP systems should be
maintained well and operated in tune with the acilitys
needs.
n Cn e eecc e, k
ed. Spark spread reers to the dierence between
the retail price o electricity and the cost o uelmost
commonly natural gasused by the CHP system. I the
retail price o electricity is high but the cost o the uel and
other services needed to generate electricity using the
CHP system is comparatively low, the economics or CHP
systems will be more avorable.
The detailed nancials will depend on site-specic actors,
such as system size, CHP technology, add-on equipment,
type and price o uel used, environmental compliance, and
maintenance and operations. A typical range o the nancial
details are shown below:39
n Capital cost per kilowatt (kW) o installed capacity:
$1,000 to $3,000. But costs can be higher or smaller
systems, up to $10,000 per kW. Approximately $50 per kW
to 150 per kW in additional investments may be required to
enable a CHP system to perorm independently o the grid.
n Cost per kWh o generated electricity: $0.05 to $0.10.
Usually, more than hal o this gure comes rom uel and
operational costs; hence uel-price volatility has a strong
bearing on the cost o power produced by CHP. The rest
refects the capital cost, which is also an important actor,
and a thermal credit, which is explained later.
n Payback period: three to seven years. This depends mainly
on the capital cost per kW, overall eciency o the system,
and hours o operation. CHP projects can come on line
within one-hal to three years, and the lietime o a CHPsystem can exceed 20 years.40
Some nancial details, organized according to technology,
are shown in table 2.
Figure 5 shows how CHP systems can be cost-eective
compared with other orms o power generation and
average retail electricity rates.41 As CHP systems generate
useul electricity and thermal energy, one justiable and
reasonable way to account or these dual benets is to
apply the value o the useul thermal energy to lower the
eective cost o electricity generated. Figure 5 illustrates
this by the application o a thermal credit to the cost o
delivered electricity. By doing so, large CHP systems in Ohio,or example, can compete even with the low retail prices or
power available to large users.
Similarly, medium-size CHP systems can be cost-eective
or certain commercial users. Smaller CHP systems may
not be directly cost-eective in all cases but could have
other benets that still make them attractive in particular
instances. In New Jersey, where electricity rates are higher,
the economics are even more avorable or CHP.42
OVErVIEw: Baptit Medica Cete i a ba hopita ith appoximate 620 bed
ad moe tha 3,000 empoee. I 1991, the hopita itaed a 4.3-Mw ata ga
tbie. sice the cete ecet expaio, the CHP tem i capabe o meetig
60 pecet o the aciit eectica eed, 80 pecet o it team eed, ad 30
pecet o it cooig eed. The CHP tem ha geeated aveage eeg avig
o $800,000 pe ea, etig i a impe pabac peiod o 6.3 ea o the $4.2
miio itaed cot. (savig have bee oe dig peiod o oe ata ga
pice.) I additio, the CHP tem eve a bacp emegec poe o the
medica cete. I act, he Hicae katia caed the gid to go do o 52
ho begiig o Agt 29, 2005, the medica cete emaied opeatioa.
sECTOr: Heath cae
OPErATIOn sTArT: 1991
TECHnOlOGy: Ga tbie
FuEl: nata ga
MAnuFACTurErs: soa Tbie,
yo, Tae
CAPACITy: 4.3 Mw
InsTAllED COsT: $4.2 miio
OVErAll EFFICIEnCy: n/AEnErGy sAVInGs: $800,000/ea
(deped o ata ga pice)
rEPOrTED PAyBACk: 6.3 ea
OTHEr BEnEFITs:n reiabiit (bacp
emegec poe)
B medc Cene Jaco, Ms23
Source:B.k. Hodge ad l. Chama, CHP (Cooig, Heatig, ad Poe) at the Miiippi Baptit Medica Cete, sotheat CHP Appicatio Cete, 2007,
avaiabe at http://gcoatceaeeg.og/Pota/24/Evet/Hicae_2006/MiiippiBaptitMemoiaHopita.pd.
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|Cbned he nd pe se
Fge 5: se ae C-Cee n ind nd Cec sec
CHP AND WER AVERAGE GRID POWER SOME INDIVIDUAL SOURCES
Thermal Credit
Transmission
and Distribution
Fuel
Operations andMaintenance
Capital
Costofdeliveredelectricity(cents
/kWh)
16
14
12
10
8
6
4
2
0
SmallCHP
MediumCHP
LargeCHP
Wasteenergydiscovery
Energyefficiency
Pulverizedcoal
NGcombinedcycle
Wind
UtilityscalePV
Industrialretail
Largecommercialretail
OVErVIEw: Beoit Memoia Hopita i a 340,000-qae-oot aciit i Beoit,
wicoi, ith appoximate 190 bed. Cooted b the eed to pgade it
eectica ditibtio tem, the hopita itaed a 3-Mw CHP tem i 2000 at
a cot o $1.2 miio. The CHP tem povide the hopita ith 1.5 Mw o poe,
ad the additioa 1.5 Mw i od to the oca tiit, Aiat. I additio, the CHP
povide heatig, cooig, ad hot ate to the etie aciit. The Faiba Moe
egie ae pecia deiged to povide the aciit ith bacp emegec poe
i the evet o gid aie; the ae da-e egie capabe o ig o diee e
o at tat-p, athogh the ae oma opeated o ata ga o geate oveapeomace. with a ovea eeg eciec o ea 70 pecet, the tem ha
aa eeg avig o $223,000 ad a epoted pabac o 5.4 ea.
FInAnCInG AnD InCEnTIVEs: Aiat pat aced the poject ith a o-iteet
ate.
sECTOr: Heath cae
OPErATIOn sTArT: 2000
TECHnOlOGy: recipocatig egie
FuEl: nata ga, diee
MAnuFACTurEr: Faiba Moe
CAPACITy: 3 Mw
InsTAllED COsT: $1.2 miio
OVErAll EFFICIEnCy: 69.8%
EnErGy sAVInGs: $223,000/ea
rEPOrTED PAyBACk: 5.4 ea
OTHEr BEnEFITs:n reiabiit (bacp
emegec poe)
n sae o eecticit
Be me h Beoit, wI24
Source:Ma steve, Beloit Memorial Hospital Case Study or CHP Applications, Midet CHP Appicatio Cete, Ma 2002,
avaiabe at http://.midetceaeeg.og/Achive/eviedoc/pd_competed/2002_Ma_%2520Beoit_Hopita_siterepot.pd.
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|Cbned he nd pe se
Fne Be regn lnd Boadma, Or25
OVErVIEw: Fie Btte regioa lad eceive
appoximate 500,000 to o micipa oid ate eve
ea. Cet, the ate occpie 80 ace ith a aveage
depth geate tha 100 eet. The aciit itaed a 4.8-Mw
CHP tem to tae advatage o the abdat oce o
ad ga a a e. The CHP tem coect methae ga
om moe tha 80 vetica ad hoizota ad ga e
to poe thee eectica geeato, ad Fie e moe
tha 30 miio wh to the oca tiit, PaciCop, each ea.
Heat om the egie exhat ad om the ate-cooig
tem i capted ad the thema eeg i od to Cacade
speciatie, a eighboig oio ad gaic dehdatio pat.
A a et, Cacade speciatie ha edced it ata ga
comptio b 25 pecet to 30 pecet. Togethe, the
ad ad the dehdatio pat have edced CO2 emiio
b moe tha 15,000 to aa.
sECTOr: ladOPErATIOn sTArT: 2007
TECHnOlOGy: recipocatig egie
FuEl: lad ga/methae
MAnuFACTurEr: Catepia
CAPACITy: 4.8 Mw
InsTAllED COsT: $9.7 miio
OVErAll EFFICIEnCy: 70% to 80%
EnErGy sAVInGs: n/A
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
n revee team: ae o eecticit ad thema eeg
Source:wahigto state uiveit Exteio Eeg Pogam,
Finley Buttes Regional Landfll, Poject Poe, 2011, avaiabe at
http://.othetceaeeg.og/nChpDoc/Fie%20Btte%20
lad%20to%20Ga%20CHP%20tem%20-%20pp011811.pd.
OVErVIEw: nava statio Geat lae (nsGl) i a
278-bidig miita bae 35 mie oth o Chicago. I 2005,
nsGl pgaded to a CHP tem to achieve the edctio
i eeg comptio madated to a edea aciitie b
the Eeg Poic Act o 2005. The tem o icde
to 5.5-Mw soa Ta 60 combtio tbie ith heat
ecove team geeato, ad to 1.5-Mw bac-pee
team tbie. The CHP tem povide the bae ith 14Mw o eectic poe ad moe tha 100,000 pod pe
ho o high-pee team. I additio, the egie ae
capabe o ig o ata ga o no. 2 e oi, oeig
nsGl fexibiit i e choice ad the abiit to opeate
idepedet o the tiit. The tem ha eted i
igicat emiio edctio om the pevio boie,
hich ed no. 6 e oi.
sECTOr: Miita
OPErATIOn sTArT: 2005
TECHnOlOGy: Ga tbie, team tbie
FuEl: nata ga, no. 2 e oiMAnuFACTurEr: soa Tbie
CAPACITy: 14 Mw
InsTAllED COsT: $34.1 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: $3.5 miio/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
N sn Ge lke Geat lae, Il26
Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete,
Naval Station Great Lakes, Poject Poe, Agt 2010, avaiabe at
http://.midetceaeeg.og/poe/PojectPoe/Geatlaenava.pd.
FineyButteregionalandf
Bac ie chematica ho capte o ga om ad (top-ight),ad tae to CHP tem (bottom-et, bac ectage). Cacadespeciatie oio ad gaic dehdatio pat i adjacet.
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|Cbned he nd pe se
OVErVIEw: I Jaa 2010, Coe uiveit bega
opeatio o to ata ga-ed combtio tbie ith
a eectic capacit o 30 Mw. The heat exhat om the
tbie i ecoveed ad ed to podce team o heatig
the camp. Beoe 2010, the camp eied mai o coao team podctio. The CHP itaatio a dive b
Coe eed o eea ad additioa teamig capacit
i it ceta team-geeatig aciit. It ao povide the
additioa beet o impoved tem eiabiit, the abiit
to maage cot, ad edced emiio. A a et o
thi poject, the iveit ha edced it CO2 emiio
b 50,000 to pe ea (20 pecet), it nOX emiio
b 250 to pe ea (55 pecet), ad it e dioxide
(sO2) emiio b 800 to pe ea (55 pecet). Thi
poject, aog ith othe igicat eot ch a the
eviometa beecia lae soce Cooig Poject,
ppot the iveit Cimate Actio Pa, hich aim
to edce Coe et geehoe-ga emiio to zeob the ea 2050.
sECTOr: uiveitie, coege
OPErATIOn sTArT: 2010
TECHnOlOGy: Combtio tbie
FuEl: nata ga
MAnuFACTurEr: n/A
CAPACITy: 30 Mw
InsTAllED COsT: $82 miio
OVErAll EFFICIEnCy: 78%
EnErGy sAVInGs: ~30%
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
n Bie cotiit paig
n reiabe poe oce
Cne une Ithaca, ny27
Source:lae God, Coe pa heatig pat pgade that i ct geehoe
ga emiio b 20 pecet, Choice Oie, Jaa 18, 2006, avaiabe at
http://.e.coe.ed/toie/ja06/chp.expaio.g.htm.
OVErVIEw: The rochete wateate recamatio Pat
teat p to 24 miio gao o ateate pe da. The
pat e to aaeobic digete to tabiize the dge
beoe the bio-oid ae appied o ad. The oigia CHP
tem a itaed i 1982. I 2002, oe o the egie
a epaced, ooed b the ecod it i 2008. The
aciit pgaded it exitig 0.8-Mw CHP tem to a 2-Mwtem (ea-b, tbochaged, pa-igitio GE waeha
egie) at a cot o $4 miio. The aciit digete
podce appoximate 338,000 cbic eet o 62 pecet
methae bioga eve da, eogh to geeate 650 w o
cotio eectic poe. The jacet ate ad exhat heat
ae capted ad ed to eep the digete at 98F ad to
povide pace heatig thoghot the aciit. The itaatio
ha eted i aa eeg avig o moe tha $650,000
o the Cit o rochete.
sECTOr: wateate teatmet
OPErATIOn sTArT: 1982 (pgade i 2002 ad 2008)TECHnOlOGy: recipocatig egie
FuEl: Bioga, ata ga
MAnuFACTurEr: GE
CAPACITy: 2 Mw
InsTAllED COsT: $4 miio
OVErAll EFFICIEnCy: n/A
EnErGy sAVInGs: > $650,000/ea
rEPOrTED PAyBACk: n/A
OTHEr BEnEFITs:n redced emiio
n redced odo
n Emegec bacp poe
n $240,000 eeg ebate
Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete,
Rochester Wastewater Reclamation Plant, Poject Poe, avaiabe at
http://.midetceaeeg.og/poe/PojectPoe/rochetewwT.pd
(acceed Mach 2013).
rcee wee recn pn
rochete, Mn28
wikimedia
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|Cbned he nd pe se
OVErVIEw: I 2009, Cave Bothe Famtead Cheee, a
dai am ad cheee acto ocated i wateoo, wicoi,
itaed a 633-w CHP tem ig a GE Jebache
JMC312 egie, hich opeate o aaeobic digete ga
om co mae. The CHP tem aoed the am to
expad capacit b mitigatig pobem aociated ith atedipoa. Pevio, the mae a toed i a ope agoo
that eeaed methae ito the atmophee. B ig digete
ga a e o the CHP, it ha edced emiio eqivaet
to 7,125 to o CO2 pe ea. The eecticit geeated i od
to the wicoi Eectic Poe Compa, ad the ecoveed
heat povide heatig ad hot ate o the am ad
maitai the tempeate o the aaeobic digete. The CHP
tem povide aa eeg avig o p to