Microturbine Applications and Issues

Presented to the Mid-Atlantic Distributed Energy Resources

Workshop

Presented by Kevin DugganCapstone Turbine Corporation

February 21, 2002

Microturbine Applications and IssuesMicroturbine Applications and Issues

1

Lessons from the field Lessons from the field To deliver full benefit, DER must:

• Deliver economic value, either by meeting a unique customer need (niche) or by providing a payback within 2 – 3 years.

• Be safe and reliable.

• Be clean. The technology is located near people and must be clean if it is to be accepted.

• Resolve the regulatory issues.

Remote power application, Anchorage, AKRemote power application, Anchorage, AK

2

Broad Range of Market ApplicationsBroad Range of Market ApplicationsCooling Heating and

PowerCooling Heating and

Power

Renewable/Waste GasesRenewable/Waste GasesHybrid Electric VehiclesHybrid Electric Vehicles

Power Quality/Reliability/Cost-SavingsPower Quality/Reliability/Cost-Savings

• Diverse range of applications• Commercial fuel flexibility:

• Natural Gas, CNG, LNG• Renewable landfill & digester gases

• Propane, LPG• Diesel, kerosene, JP8

• Coalbed methane• Flare gases (sweet and sour)

• Rapid adoption comparable with other new energy technologies

3

Microturbines are cost competitive Microturbines are cost competitive in many broad based applicationsin many broad based applications

Capstone 60at an HVACmanufacturerin California

MicroTurbines may generate energy at a lower cost than peak utility power. Thus businesses pay less for electricity AND leave more power available for all others in the region.

4

Building CHP in Upstate New YorkBuilding CHP in Upstate New York>70% fuel efficient electricity, heat and zero-load cooling

Significant energy cost reduction (power and gas) from utility rates

Removes cooling load during peak demand times

>90% fewer NOx emissions per kWh than natural gas central power plants (1)

Reduces greenhouse gases

US aggregate potential market for micro-CHP <2 MW = 82 GWs

Harbec Plastics CHPC (Ontario, NY)25 Capstone 30 kW microturbines, 4 Unifin Heat Exchangers,200 Ton Carrier Absorption Chiller

(1) Per EPA utility emissions data and CERA’s independent measurement of Capstone emissions

5

Most Building CHP applications are Most Building CHP applications are in the Microturbine Size Rangein the Microturbine Size Range

284

589561

387

262

116

23

0

100

200

300

400

500

600

0 - 10kW 11kW -25kW

26kW -50kW

51kW -100kW

101kW -250kW

251kW -1000kW

over1000kW

Number of Buildings (‘000) classified by peak load requirementsNumber of Buildings (‘000) classified by peak load requirements

Source: EIA “Energy Consumption and Expenditure”

60 percent of buildings 60 percent of buildings in the US have peak in the US have peak loads that are within the loads that are within the microturbine size microturbine size range.range.

Microturbine size rangeMicroturbine size range

6

Power Quality/ReliabilityPower Quality/ReliabilitySupply high-reliability power to critical and sensitive loads

Remove demand on utility grid, reducing utility need to build additional peaking capacity

Built-in redundancy provides high nines reliability

Eliminate outage costs

30/60 kW per module size provides low cost n+x redundancy

Ultra-low emissions makes viable UPS with ongoing generation

Reduces battery array reliance/footprint

One of 5 units installed at Capstone’s production facilities. Enabled Capstone to expand production while avoiding added load to the utility and the need for new distribution capacity.

7

Renewable InstallationsRenewable InstallationsTurns low-energy (as low as 350btu/scf) waste into sustainable profit.

Reduces load on the grid

CHP applications support digester temperature at WWTPs

Avoid environmental penalties

Burn sour and/or low-Btu gases that cannot be utilized by other technologies.

NOX emissions independently measured as low as 1.3 ppmLos Angeles Lopez Canyon Landfill – 50 Capstone

MicroTurbines produce enough electricity from landfill flare gases to power to 1,500 homes

Inland Empire, CA Wastewater TreatmentPlant RP-1

8

Oil & Gas Resource RecoveryOil & Gas Resource RecoveryReduces costs of operating remote oil fields

Avoid environmental penalties

Burn sour gases that cannot be utilized with other technologies

NOX emissions as low as 1 ppm

Avoid electrification costs or

Export into local power pool

Estimated resource recovery market for United States and Canada is 1,126 MW (1)

(1) Management estimates and CERA “The Next Generation: Fuel Cells and Microturbines” 1998

Two-Pack Housing in a Remote Alberta Oilfield

Offshore Housing on ChevronPlatform in Gulf of Mexico

9

3 vehicles entered revenue service in Christchurch, NZ in March, 2000After 18 months, 96% availability was demonstrated for revenue service:Bus #1: 65,456 miles (105,342 km)Bus #2: 70,474 miles (113,418 km)Bus #3: 53,449 miles ( 86,018 km)… with no microturbine engine maintenance

other than air filters and one spark plug

CapstoneCapstone--EnergizedEnergizedHybrid Electric VehiclesHybrid Electric Vehicles

10

Proving Safety and ReliabilityProving Safety and ReliabilityOver 1 million operating hours

Over 25,000 near continuous hours and 14,000 cycles on a single machine

The only technology that is certified to the California state interconnection standard.

Listed to UL 2200, the new generator standard

Listed to the UL 1741 grid interconnect standard

Capstone MicroTurbines were the first generators of ANY type state-approved by New York for DG interconnection

Meet CE, CSA and other international standards

11

Providing Clean Power TodayProviding Clean Power Today

(0.30) (0.20) (0.10) - 0.10 0.20 0.30 0.40 0.50

N O x (lb /M W h )

M T P o w e r O n ly1

A vo id e d B o ile r Em is s io n s

M T C H P (n e t)

M T Flare G as 2

M T B io m as s 3

C alifo rn ia S tan d ard (2003)

T e xas S tan d ard (2005)

C alifo rn ia S tan d ard (2007)

Sources:1 "Select Gaseous Emissions Data from the SMUD Capstone 30 Microturbine", California Air Resources Board, September 2001.2 Independent test results of Sweet and Sour Oil Batteries3 "Puente Hills Land Fill Capstone Turbine Emissions Source Test", March 2000

12Source: Joel Blumstein, Energy and Environmental Analysis, Inc, Prepared for the Regulatory Assistance Program��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

NOx (lb/MWh)

2.2

1.1

0.5

0.3

0.1

0.1

4.7

21.8

5.6

5.1

3.4

0.0

0.59

0.61

0.01

- 5 10 15 20 25

U.S. Average All Generation

U.S. Average Fossil Generation

U.S. Average Coal Generation

Engine: Diesel

Engine: Diesel, SCR

Engine: Gas f ired, Lean Burn

Turbine: Small, Simple Cycle

Turbine: Medium, Simple Cycle

Turbine: Large, Simple Cycle

Engine: Gas f ired, 3-w ay catalyst

Turbine: ATS Simple Cycle

Turbine: Microturbine

Turbine: Large Combined Cycle, SCR

Fuel Cell: Phosphoric Acid

Fuel Cell: Solid Oxide

Microturbine emissions are already Microturbine emissions are already near levels projected of Fuel Cellsnear levels projected of Fuel Cells

13

Deployment IssuesDeployment IssuesUtilities are the most successful Electric Service Providers and should be allowed to own DER for use in grid support and for meeting customers’ energy needs

Tariffs should be established to incentivize efficient fuel utilization through the deployment of Cooling, Heating and Power technologies to meet customer energy needs.

Tariffs and other mechanisms should be used to encourage sustainable and renewable technologies.

ESPs and utilities should be able to compete on their merits, not through regulatory advantage.

14

Other Deployment IssuesOther Deployment IssuesThe regulations/tariffs need to be stabile.

Standardized Interconnection

Standby Rates and exit fees

Distribution wheeling

Outcome rather than technology driven policies

Documents

Microturbine Applications and Issues