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Combined Heat and Power Engineering and Installation
In the Pacific NW
Marcia Karr, PE U.S. DOE Northwest CHP Technical Assistance Partnership Energy Trust of Oregon - ETO June 15, 2016
Considerations of Presentation
1. Consider sponsoring training
2. Consider deemed calculation method for incentive
Outline of Presentation o Scoring LEED Points
o Financial Options
o Overview of CHP & benefits, technical potential
o CHP technology & equipment
o Key analytical Questions
o Resiliency
o Electrical Consideration
o Building codes – NG CHP is explicitly allowed!
o Resources & Tools
Scoring LEED Points
with CHP Courtesy of http://www.usgbc.org
USGBC Methodology for Modeling CHP (BD+C)
Methodology for Modeling Combined Heat & Power for EAp2/c1 in LEED - 2009 http://www.usgbc.org/resources/methodology-modeling-combined-heat-amp-power-
eap2c1-leed-2009
o Guidance on how to account for CHP in the whole building energy simulation
o Applies to on-site CHP systems which can either have the same ownership as the project or different ownership
7
USGBC Methodology for Modeling CHP (BD+C)
1. Model Baseline Building – Estimate energy loads using an energy model (Baseline Building
must meet requirements of ASHRAE 90.1).
– Determine energy cost for building by summing purchased electricity and purchased thermal.
2. Model Design Building (includes CHP) – Estimate energy loads using an energy model.
– Determine energy cost for building by summing cost of CHP input fuel and any additional purchased electricity and purchased thermal needed.
3. Determine OEP Points – OEP points are calculated based on the percentage reduction in
energy cost of the Design Building compared to the Baseline Building.
8
CHP’s Demonstrated Point Impact Building # of Apts. CHP Type/Size Pts. w/out CHP Pts. w/CHP
1 620 130 kW MT 2 8
2 340 65 kW MT 2 10
3 500 200 kW MT 2 7
4 100 65 kW MT 1 7
5 185 65 kW MT 3 9
6 250 65 kW MT 1 7
7 230 200 kW MT 0* 9
8 40 75 kW Recip 0* 4
11
* Would not meet Prerequisite w/out CHP
• 225,000 square feet apartment building
• Aegen ThermoPower 75kW
• Provides domestic hot water heating (100%) and (80%) building heat
• Provides 28% of building’s electrical load
• LEED® Gold
• System earned 8 OEP points; CHP responsible for 4 of them
CHP Plant “315 on A” – Boston, MA
12
Business Model Framework
• Dispatch management • Minor maintenance
Development
Engineering, Procurement, Construction
Operations
Maintenance
Asset Management
Financing • Major maintenance • OEM interaction
• Gas purchase • Insurance, emissions
compliance
• Customer contracting • Permitting
• Equity • Debt (bank, vendor)
• CHP design • Construction management,
commissioning
Build Operational
Responsibilities in build and operational phases can be divided between in-house and external parties…
…but contractual structures must be chosen carefully to ensure alignment of capabilities and interests, and to protect the customer’s operations and investment
• Equity financed through customer’s own balance sheet, with potential for commercial debt or bond issuance
• Common to have project designed by external parties
• Major maintenance likely to be performed by manufacturer or licensed dealer
Self-Financed
Development
Engineering, Procurement, Construction
Operations
Maintenance
Asset Management
Financing
Overview Strengths & Weaknesses
Strengths
• Allows customer to capture all operational savings available through CHP
• Leverages full capabilities of internal facilities personnel
• Potential for nonprofits (municipalities, universities, schools, hospitals) to access low-cost financing sources
Weaknesses
• Fully relies on engineering firm’s design, with no guarantee of interest alignment
• Turns customer into a power plant operator, which is unlikely to be a core competency
• Ties up customer capital in non-core asset
Internal Fully
Outsourced Internal/
External Mix
Legend
• Can be built with customer or external party’s capital, but once operating, CHP asset is owned by third party
• Customer can take on development/operating responsibilities if desired
• Flexible contract structures to align risk tolerances of each party
Lease or sale/leaseback
Development
Engineering, Procurement, Construction
Operations
Maintenance
Asset Management
Financing
Overview Strengths & Weaknesses
Strengths
• Frees up customer capital for core activities by turning CHP into an operating expense
• Taking on portions of operational responsibilities can remove risk from external party, enabling access to lower costs of capital, allowing customer to keep greater percentage of savings
• Can be structured to keep CHP off of customer’s balance sheet
Weaknesses
• CHP design firm has no risk
• Depending on contract structure, external party may have little incentive for efficient operation
• Potential for heavy reliance on customer’s facilities staff, which may not have the capability to run the CHP asset with best practices
Internal Fully
Outsourced Internal/
External Mix
Legend
• CHP designed, built, owned, financed, and operated by external party
• Customer buys power and thermal energy from external party per contract structure
• Potential flexibility in contract structures to align customer and external party’s interests and rewards (savings splits vs PPA)
Power Purchase Agreement/Energy Sale Agreement
Development
Engineering, Procurement, Construction
Operations
Maintenance
Asset Management
Financing
Overview Strengths & Weaknesses
Strengths
• Enables customer to reduce energy costs with little risk and does not devote customer’s capital or staff to non-core activities
• Incentivizes external party to optimize design and operating protocols to maximize asset profitability
• Gives nonprofits an avenue to monetize tax credits and accelerated depreciation
Weaknesses
• External party takes a portion of the energy cost savings for capital recovery
• May not be an accessible source of financing for some businesses, depending on creditworthiness
• Contract structures and commitments must be carefully thought through to ensure customer has reasonable worst case scenario
Internal Fully
Outsourced Internal/
External Mix
Legend
Overview of CHP & Benefits
Combined Heat and Power: A Key Part of Our Energy Future
o Form of Distributed Generation (DG)
o An integrated system
o Located at or near a building / facility
o Provides at least a portion of the electrical load and
o Uses thermal energy for:
– Space Heating / Cooling
– Process Heating / Cooling
– 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
15
Over Two Thirds of the Fuel Used to Generate Power in the United States Is Lost as Heat
Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf
o CHP is more efficient than separate generation of electricity and heat
o Higher efficiency translates to lower operating cost, (but requires capital investment)
o Higher efficiency reduces emissions of all pollutants
o CHP can also increase energy reliability and enhance power quality
o On-site electric generation reduces grid congestion and avoids distribution costs
Benefits of Combined Heat and Power
National Goal Additional 40 GW of CHP
Achieving this goal would:
o Increase total CHP capacity in the U.S. by 50 percent
o Save energy users $10 billion a year compared to current energy use
o Save one quadrillion Btus (Quad) of energy — the equivalent of 1 percent of all energy use in the U.S.
o Reduce emissions by 150 million metric tons of CO2 annually — equivalent to the emissions from over 25 million cars
o Result in $40-$80 billion in new capital investment in manufacturing and other U.S. facilities over the next decade
Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf
18
Emerging Drivers for CHP
o Benefits of CHP recognized by policymakers o President Obama signed an Executive Order to
accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade
o State Portfolio Standards (RPS, EEPS, Tax Incentives, Grants, standby rates, etc.)
o Favorable outlook for natural gas supply and price in North America
o Opportunities created by environmental drivers
o Utilities finding economic value
o Energy resiliency and critical infrastructure
Executive Order: http://www.whitehouse.gov/the-press-office/2012/08/30/executive-order-accelerating-investment-industrial-energy-
efficiency Report:
http://energy.gov/sites/prod/files/2013/11/f4/chp_clean_energy_solution.pdf
19
CHP Is Used Nationwide
82,700 MW – installed capacity (2014)
>4,400 CHP Sites (2014)
Saves 1.8 quads of fuel each year
Avoids 241 M metric tons of CO2 each year
86% of capacity – industrial 69% of capacity – natural gas fired
Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2014)
20
Attractive CHP Markets
Industrial o Chemical
manufacturing o Ethanol o Food processing o Natural gas pipelines o Petrochemicals o Pharmaceuticals o Pulp and paper o Refining o Rubber and plastics
Commercial o Data centers o Hotels and casinos o Multi-family housing o Laundries o Apartments o Office buildings o Refrigerated
warehouses o Restaurants o Supermarkets o Green buildings
Institutional o Hospitals o Schools (K – 12) o Universities & colleges o Wastewater treatment o Residential confinement
Agricultural o Concentrated
animal feeding operations
o Dairies o Wood waste
(biomass)
Oregon and Washington CHP Technical Potential (MW)
Source: http://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
Oregon All Commercial CHP Technical Potential – Topping Cycle, Waste Heat to Power, and District Energy
Source: U.S. DOE Analysis Combined Heat and Power Technical Potential March 2016 http://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
50-500 kW 0.5 - 1 MW 1 - 5 MW 5 - 20 MW > 20 MW Total
SIC Commercial Business Type Sites
50-500 kW (MW)
Sites 0.5-1 MW
(MW) Sites
1-5 MW (MW)
Sites 5-20 MW
(MW) Sites
>20 MW (MW)
Total Sites Total MW
43 Post Offices 3 0.3 0 0 0 0 0 0 0 0 3 0.3
52 Retail 190 30 6 4 0 0 0 0 0 0 196 34
4222 Refrigerated Warehouses 9 1 1 1 1 2 0 0 0 0 11 3
4581 Airports 3 1 0 0 0 0 1 6 0 0 4 7
4952 Water Treatment 16 2 1 1 0 0 0 0 0 0 17 3
5411 Food Stores 169 24 0 0 2 5 0 0 0 0 171 29
5812 Restaurants 158 15 0 0 0 0 0 0 0 0 158 15
6512 Commercial Office Buildings 726 36 223 89 56 34 0 0 0 0 1,005 159
6513 Multifamily Buildings 149 11 54 27 8 8 0 0 0 0 211 47
7011 Hotels 182 21 10 6 7 11 1 6 0 0 200 44
7211 Laundries 23 3 1 1 0 0 0 0 0 0 24 4
7374 Data Centers 31 6 2 1 1 1 0 0 0 0 34 8
7542 Car Washes 11 1 0 0 0 0 0 0 0 0 11 1
7832 Movie Theaters 1 0.1 1 1 0 0 0 0 0 0 2 1
7991 Health Clubs 53 6 1 1 0 0 0 0 0 0 54 7
7997 Golf/Country Clubs 45 6 0 0 2 3 0 0 0 0 47 9
8051 Nursing Homes 121 12 0 0 0 0 0 0 0 0 121 12
8062 Hospitals 37 9 12 8 16 38 0 0 0 0 65 55
8211 Schools 7 0.5 0 0 0 0 0 0 0 0 7 0.5
8221 College/Univ. 34 6 5 3 21 60 7 55 1 23 68 148
8412 Museums 12 1 0 0 0 0 0 0 0 0 12 1
9100 Government Buildings 132 17 27 20 9 15 0 0 0 0 168 52
9223 Prisons 7 2 2 2 6 14 0 0 0 0 15 18
9711 Military 3 0.4 1 1 1 5 0 0 0 0 5 6
Total 2,122 211 347 164 130 197 9 67 1 23 2,609 662
50-500 kW 0.5 - 1 MW 1 - 5 MW 5 - 20 MW > 20 MW Total
SIC Commercial Business Type Sites
50-500 kW (MW)
Sites 0.5-1 MW
(MW) Sites
1-5 MW (MW)
Sites 5-20 MW
(MW) Sites
>20 MW (MW)
Total Sites Total MW
43 Post Offices 9 1 0 0 0 0 0 0 0 0 9 1
52 Retail 351 50 16 10 4 9 0 0 0 0 371 69
4222 Refrigerated Warehouses 30 4 2 1 0 0 0 0 0 0 32 6
4581 Airports 2 1 1 1 0 0 1 10 0 0 4 12
4952 Water Treatment 35 4 1 1 1 1 0 0 0 0 37 6
5411 Food Stores 378 54 0 0 1 1 0 0 0 0 379 55
5812 Restaurants 302 28 0 0 1 2 0 0 0 0 303 30
6512
Commercial Office Buildings 1,265 63 389 156 97 58 0 0 0 0 1,751 277
6513 Multifamily Buildings 293 22 106 53 16 16 0 0 0 0 415 91
7011 Hotels 283 35 17 10 17 25 0 0 0 0 317 70
7211 Laundries 21 4 0 0 1 1 0 0 0 0 22 5
7374 Data Centers 62 10 3 2 3 4 0 0 0 0 68 15
7542 Car Washes 24 2 0 0 0 0 0 0 0 0 24 2
7832 Movie Theaters 0 0 0 0 0 0 0 0 0 0 0 0
7991 Health Clubs 85 9 0 0 1 1 0 0 0 0 86 11
7997 Golf/Country Clubs 76 9 0 0 0 0 0 0 0 0 76 9
8051 Nursing Homes 197 23 0 0 0 0 0 0 0 0 197 23
8062 Hospitals 57 13 15 10 32 70 1 6 0 0 105 99
8211 Schools 0 0 0 0 0 0 0 0 0 0 0 0
8221 College/Univ. 40 7 3 2 45 117 6 74 1 26 95 227
8412 Museums 21 3 0 0 0 0 0 0 0 0 21 3
9100 Government Buildings 200 31 25 17 23 43 2 15 0 0 250 107
9223 Prisons 11 2 2 2 7 15 0 0 0 0 20 19
9711 Military 17 3 1 1 8 20 3 20 1 40 30 84
Total 3,759 379 581 265 257 384 13 126 2 66 4,612 1,220
Washington State All Commercial CHP Technical Potential – Topping Cycle, Waste Heat to Power, and District Energy
Source: U.S. DOE Analysis Combined Heat and Power Technical Potential March 2016 http://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
CHP Systems and
Technology
Types of Prime Movers
o CHP technology & equipment o Reciprocating Engines o Gas Turbines o Steam Turbines o Micro Turbines o Fuel Cell o ORC
o Size range: 10 kW to 18 MW
o Characteristics: o Thermal can produce hot water, low-
pressure steam, and chilled water (through absorption chiller)
o High part-load operation efficiency o Fast start-up o Minimal auxiliary power requirements
for black start
Example applications: Food Processing, Office Buildings, Multifamily Housing, Nursing Homes, Hospitals, Schools, Universities, Wastewater Treatment, Correctional Facilities
Prime Mover: Reciprocating Engines
Source: DOE/EPA Catalog of CHP Technologies
27
Reciprocating Engine Characteristics
Compiled by ICF by vendor-supplied data
o Size range: 500 kW to 300 MW
o Characteristics: o Produces high-quality, high-
temperature thermal that can include high-pressure steam for industrial processes; and chilled water (with absorption chiller)
o Efficiency at part load can be substantially less than at full load
Example applications: Hospitals, universities, chemical plants, refineries, food processing, paper manufacturing, military bases
Prime Mover: Combustion Gas Turbine
Source: DOE/EPA Catalog of CHP Technologies
29
Gas Turbine Characteristics
o Size range: 30 kW to 1,000 kW
o Characteristics: o Thermal can produce hot water, steam, and
chilled water o Compact size and light weight, brought on line
quickly o Inverter-based generation can improve power
quality o Usually below 200 kW unless multiple units
utilized o Recuperator typical
Example applications: Multifamily housing, hotels, nursing homes, wastewater treatment, gas and oil production
Prime Mover: Microturbines
31
Source: DOE/EPA Catalog of CHP Technologies
Micro-Turbine Characteristics
Compiled by ICF by vendor-supplied data
o Reduces cost of electricity
o Up to 50% output without additional fuel consumption
o Reduces environmental footprint
o Emissions reduced by at least 30% per MWh produced
o Increases flexibility and reliability
o Hospitals, universities, chemical plants, refineries, food processing, paper manufacturing, military bases
Heat Recovery Steam Generator (HRSG)
Source: DOE/EPA Catalog of CHP Technologies
33
o Size Range: 100 kW to over 250 MW
o Characteristics o Requires a boiler or other steam source o Can be mated to boilers firing a variety of gaseous,
liquid or solid fuels (such as coal, wood, and waste products).
o Steam extracted or exhausted from steam turbine for thermal applications.
o Operates over a wide range of steam pressures.
Example Applications:
Industrial applications, district heating and cooling systems; forest products, paper mills, chemicals, food processing, backpressure turbines in lieu of steam system pressure reducing valves
34
Source: DOE/EPA Catalog of CHP Technologies
Steam Turbines: One of the oldest prime mover technologies still in use
o Condensing Turbines:
• Industrial waste heat streams
can be used to produce steam
• Excess steam can be used to
produce electrical energy
o Backpressure Turbine:
• Produces electrical energy at
locations where steam pressure
is reduced with a PRV
Lower pressure applications
Steam Turbines - Continued
Sub-atmospheric
pressure
o Size range: 3 kW to 2 MW
o Characteristics: o Relatively high electrical efficiencies due to electrochemical process
o Uses hydrogen as the input fuel
o Relatively low emissions without controls due to absence of combustion process
o Inverter-based generation can improve power quality
o Relatively high installed cost, ~$5k/kW
Example applications: Data centers, hotels, office buildings, wastewater treatment (WWT needs gas scrubbing)
Prime Mover: Fuel Cells
36
Source: DOE/EPA Catalog of CHP Technologies
Fuel Cell Characteristics
Fuel Cell Characteristics - Continued
Approximating System Costs
Installed Costs O & M Costs
Reciprocating Engines $1,000 to $1,800 per kW $0.010 to .015 per kWH
Gas Turbines $800 to $1,500 per kW $0.005 to $.008 per kWh
Micro-turbines $1,000 to $2,000 per kW $0.010 to $0.15 per kWh
Installed and O&M Cost Estimates -
CHP Prime Movers with Heat Recovery for Standard Installations
Absorption Chillers -- $500 to $1,000/RT (dependent on size)
Chillers
Absorption or adsorption chillers can be incorporated into the existing central mechanical plant operations in many ways:
o Waste heat application o Part of a combined cooling, heat, and power (CCHP or tri-generation)
application o As a stand-alone gas-fired absorption chiller application o Using renewable solar as the heat source for the refrigeration cycle
Chillers – Example
o As much as $100,000/mo in demand charges
o Summer months due to DX chillers o Demand charge reduction possible
with absorption chillers
Benefits of Chillers
o Reduce energy costs
o Stabilize risks associated with fluctuating energy costs
o Improve equipment reliability
o Reduce greenhouse gas emissions by up to 50% for the power generated
o Reduce grid congestion
o Reduce electrical demand charges
o Provide reliable power supply
o Chillers use low-global warming and ozone-safe natural Refrigerants (existing in nature) like R717 (NH3) and R744 (CO2), water and air, which are promoted through the LEED certification program, ASHRAE, EPA, DOE and GSA. (CHP can be shown to offer 5-9 LEED points
http://www.epa.gov/chp/treatment-chp-leedr-building-design-and-construction-new-construction-and-major-renovations
Considerations of Example Problem
o What is this solution telling me?
o What other factors need to be considered? • Credit for backup generation
• Carbon Credits
• Government grants
• Tax credits (federal / state)
• Utility Incentives
o Energy Price Sensitivity Analysis • 10% electric increase = 4.6 year payback
• 20% electric increase = 3.6 year payback
• 10% natural gas increase = 7.8 year payback
• 20% natural gas increase = 10.4 year payback
• 10% electric AND 10% natural gas increase = 5.4 year payback
Considerations of Example Problem
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
- 2.0
4.0
6.0
8.0
10
.0
12
.0
14
.0
Vari
ati
on
in
Para
me
ter
Before-Tax Simple Payback
Installed CapitalCosts
Natural Gas:CHP Fuel Price
ElectricityPurchase Price
Private Grant
Federal ITC asGrant
(years)
Electricity at $0.06 / kWh, Propane at $21.834 / MMBtu, Wood Chips-Gasified at $0 / MMBtu, Plant Cost= $6700 / kW, Variable O&M = $0.001 / kWh
Average operation is 50% of derated capacity for 8760 hours at 100% availability (100% in Year 1)
Questions: When Looking at your Facility
o Will the selected configuration provide adequate waste heat levels for heating and/or cooling?
o Are there potential installation issues – estimate installation costs?
o What do basic economics look like?
o Is there a use for the CHP waste/recycled heat?
o Is there a major rehab or thermal equipment change planned?
o Is there sufficient “spark spread”?
o Identify size and type prime mover to meet thermal requirements (high efficiency).
Is the application worth pursuing with a formal analysis?
Combined Heat and Power Candidates Finding the Best
o High and constant thermal load
o Favorable spark spread
o Need for high reliability
o Concern over future electricity prices
o Interest in reducing environmental impact
o Existing central plant
o Planned facility expansion or new construction; or equipment replacement within the next 3-5 years
o Need for a generator on site
Spark Spread
Steps to Determining Spark Spread:
o Utilize prior 12 months electric and gas utility bills
o Determine average annual electric cost ($/MMBtu)
o Determine average gas cost ($/MMBtu)
o Calculating the gas/electric price difference = Spark Spread
CHP has more potential for favorable payback when the spark spread is greater than $12/MMBtu
o Do you pay more than $.06/kWh on average for electricity (including generation, transmission and distribution)?
o Are you concerned about the impact of current or future energy costs on your operations?
o Are you concerned about power reliability? What if the power goes out for 5 minutes… for 1 hour?
o Does your facility operate for more than 3,000 hours per year?
o Do you have thermal loads throughout the year? (including steam, hot water, chilled water, hot air, etc.)
Screening Questions
Screening and
Preliminary Analysis
Feasibility Analysis
Investment Grade
Analysis
Procurement, Operations,
Maintenance,
Feasibility Analysis
Procurement, Operations,
Maintenance,
o Does your facility have an existing central plant?
o Do you expect to replace, upgrade, or retrofit central plant equipment within the next 3-5 years?
o Do you anticipate a facility expansion or new construction project within the next 3-5 years?
o Have you already implemented energy efficiency measures and still have high energy costs?
o Are you interested in reducing your facility's impact on the environment?
o Do you have access to on-site or nearby biomass resources? (i.e., landfill gas, farm manure, food processing waste, etc.)
Screening Questions (cont.)
o CHP Electric Equipment Requirements
o Electric Power Delivery Methods and Configurations
o Technical Issues and Safety Considerations
o Project Killers and Challenges from the Electrical Perspective
o Qualification Screening Questions – Electrical
Electrical Considerations
For CHP systems to generate and deliver power, the developer will need to install a combination of the following:
CHP Electric Equipment Requirements
o Transfer switches o Relays o Circuit breakers o Fuses o Transformers o Capacitor Banks
o Metering o Load Tap Changers o Conductors o Conduit o Electrical Rooms o Com and Controls
• Utility • In-Plant (SCADA) • PLC • Load Shedding
o Reclosers o Sectionalizers o Fault Detection
Systems o Anti-Islanding
Equipment o Voltage Regulators
CHP systems can generate and deliver power in three different ways:
o Consuming all power within the facility or plant • “Stand-Alone” (Isolated-Feed) configuration
• “Stand-Alone” (Isolated-Feed) configuration with Utility Backup
o Exporting all power to the utility through an interconnection • “Buy All, Sell All” configuration
o Parallel operations consisting of in-plant use and export • Parallel configuration without Utility Standby
• Parallel configuration with Utility Standby
CHP Electric Power Delivery Methods
This configuration allows
electricity generated to be
consumed on-site - excess energy
generated flows to the utility
grid. Utility supplies additional
energy needed but not met by
the generator(s).
Parallel – With Utility Standby
During a grid outage, service disconnects, but the generator continues to operate. During a generator outage, it will trip offline, but power will still be supplied by the grid.
When a CHP connects to a utility grid there are many concerns:
Technical Issues and Safety Considerations
o Safety • Islanding
o Power Quality • Harmonics • Voltage • Frequency • Nuisance Tripping
• Utility Interconnection • Grounding • Protective Relaying and Devices • System Isolation
o Equipment Protection o Utility System Protection
• IEEE 1547
• Fault Control • Short-circuited phase faults • Open-circuit phase faults • Winding faults
The primary factors/solutions that address the concerns include:
Two Types of Generators
Induction
o Requires External Power Source to Operate (Grid)
o Contributes to Poor PF
o When Grid Goes Down, CHP System Goes Down
o Less Complicated & Less Costly to Interconnect
o Preferred by Utilities
Synchronous
o Self Excited (Does Not Need Grid to Operate)
o Can Assist in PF Correction
o CHP System can Continue to Operate thru Grid Outages
o More Complicated & Costly to Interconnect (Safety)
o Preferred by CHP Customers
Operation Requirements and Highlighted CHP Examples Maintaining Facility Operations
Uninterrupted Operation Requirements o Black start capability
• Allows system start up independently from the grid
o Generators capable of grid-independent operation • The system must be able to operate
without the grid power signal
o Ample carrying capacity • System size must match critical loads
o Parallel utility interconnection and switchgear controls • System must be able to disconnect
from the grid, support critical loads, and reconnect after an event
CHP System Highlights
Super-storm Sandy
Princeton University
Princeton, NJ
5 MW gas turbine
Hurricane Katrina
Mississippi Baptist Medical Center
Jackson, MS
4.2 MW gas turbine
Midwest Snow Storm
Presbyterian Homes
Evanston, IL
2.4 MW recip engines
Operating CHP Since
1969
Brandonview Building
St. Louis, MO
4.3 MW recip engines
Building Codes
Codes to Using Natural Gas as a Fuel Source What they Actually Say
o International Building Code (IBC) Chapter 27
o National Fire Protection Association (NFPA) 99 & 110
o National Electrical Code (NEC) Articles 700 & 701
o Center for Medicare and Medicaid Services (CMS) Define “Low probability of Failure”
60
International Building Code Ch. 27 Related Definitions
o Emergency
o Voice communication
o Exit signs
o Egress illumination
o Doors on I-3
o Elevator car lighting
o Fire detection and alarm
o Fire pumps
o Standby
o Smoke control
o Egress -elevators/platforms
o Sliding doors
o Inflation for membrane structures
o Power & lighting for fire command
NFPA 99 6.4.1.1.7 Uses for Essential Electrical System
6.4.1.1.7.1 - The generating equipment used shall be either reserved exclusively for such service or normally
used for other purposes of peak demand control, internal voltage control, load relief for the external
utility, or cogeneration.
62
NFPA 110.5.1 Energy Sources
5.1.1* The following sources shall be permitted to be used for the emergency power supply (EPS):
• * Liquid petroleum products at atmospheric pressure as specified in the appropriate ASTM standards and as recommended by the engine manufacturer
• * Liquefied petroleum gas (liquid or vapor withdrawal) as specified in the appropriate ASTM standards and as recommended by the engine manufacturer
• *Natural or synthetic gas
* Explanatory material can be found in Annex A of the NFPA codes
63
NEC Article 700 & 701 Emergency and Standby Fuel
64
Article 700-12 (b)(3) Dual Supplies. Prime movers shall not be solely dependent on a public utility gas system for their fuel supply or municipal water supply for their cooling systems. Means shall be provided for automatically transferring from one fuel supply to another where dual fuel supplies are used. Exception: Where acceptable to the authority having jurisdiction, the use of other than on-site fuels shall be permitted where there is a low probability of a simultaneous failure of both the off-site fuel delivery system and power from the outside electrical utility company.
Center for Medicare & Medicaid Services (CMS) - Define Low Probability of Failure
Natural Gas Generator Reliability Letter Requirements:
o A statement of reasonable reliability of the natural gas delivery.
o A brief description that supports the statement regarding the reliability.
o A statement that there is a low probability of interruption of the natural gas.
o A brief description that supports the statement regarding the low probability of interruption.
o The signature of technical personnel from the natural gas vendor.
Additional motivator for CMS involves pollution reduction (emissions)
Source: CMS 2009 http://chfs.ky.gov/NR/rdonlyres/4C745EDB-C9D8-4AA9-B111-38092C60EFB4/0/NaturalGasGenerators.pdf
65
Fuel Emissions
Project Snapshot: Reliability
Lake Forest Hospital Lake Forest, IL
Application/Industry: Hospital
Capacity (MW): 3.2 MW
Prime Mover: Reciprocating Engine
Fuel Type: Natural Gas
Thermal Use: Space Heating, Cooling and Hot Water
Installation Year: 1997
Energy Savings: $640,000/year
Testimonial: Before Lake Forest Hospital installed their CHP system, they suffered high energy costs and typically experienced 50-60 power interruptions each year. Their CHP system now provides 90% of the hospital’s electricity needs and 30% of its steam needs, and has reduced annual power interruptions from 50 to two.
Source: http://www.midwestchptap.org/profiles/ProjectProfiles/LakeForestHospital.pdf
Cooley Dickinson
Health Care Northampton, MA
Application/Industry: Hospitals
Capacity (kW): 500 KW
Prime Mover: Steam Turbine(s)
Fuel Type: Wood Chips
Thermal Use: Heat / Hot Water
Installation Year: 2006
Testimonial: This SECOND biomass boiler eliminated the need to burn oil during annual maintenance downtime, reduces peak load by 17.5%, and produces approx.
2 million KWH electricity per year. The plant also has full utility company interconnectivity and operates in parallel with the electrical grid.
Source: http://www.northeastchptap.org/Data/Sites/5/documents/profiles/CooleyDickinsonCaseStudy.pdf
Project Snapshot:
Project Snapshot: Increased ENERGY STAR Building Score
ProMedica Health System Wildwood
Toledo, OH
Application/Industry: Hospital
Capacity (kW): 130 kW
Prime Mover: Microturbine
Fuel Type: Natural Gas
Thermal Use: Heating
Installation Year: 2013
Energy Savings: Unknown
Testimonial: The microturbine CHP system at ProMedica Wildwood is equipped with a FlexSet control system. The control system is web-based, allowing the facility mangers to monitor the system on computers or cell phones.
Source: http://www.gemenergy.com/wpcontent/uploads/2014/03/optimize-chp-flexset-ProMedicaWildwood-030414.pdf
Project Snapshot: Addressing Coal Emissions
Kent State University Kent, OH
Application/Industry: University
Capacity (MW): 12 MW
Prime Mover: Gas Turbine
Fuel Type: Natural Gas
Thermal Use: Heating and cooling
Installation Year: 2003, 2005
Emissions Savings: Reduces CO2 emissions by 37,000 tons/year
Testimonial: The CHP system at Kent State won an EPA Energy Star Award in 2007. The system, which can run on natural gas or diesel if necessary, has been able to achieve nearly 75% efficiency, and it uses 19% less fuel than a traditional separate heat and power system.
Source: https://mysolar.cat.com/cda/files/2111485/7/dschp-ksu.pdf
Project Snapshot: Multiple Waste Heat Recovery Streams
Vestil Manufacturing Angola, IN
Application/Industry: Materials Handling Equipment Manufacturing
Capacity (kW): 140 kW
Prime Mover: Microturbine
Fuel Type: Natural Gas
Thermal Use: Process heating and drying
Installation Year: 2005
Testimonial: Vestil Manufacturing received a $30,000 grant from the Indiana Dept. of Commerce to offset equipment costs of their CHP system. The project also received an additional $100,000 from a DOE program focused on distributed generation demonstration projects. The project received the 2005 EPA CHP Certificate of Recognition.
Source: http://www.midwestchptap.org/profiles/ProjectProfiles/VestilManufacturing.pdf
Project Snapshot: Dairy Farm Cogeneration
Sievers Family Farm Stockton, IA
Application/Industry: Dairy Farm
Capacity (MW): 1 MW
Prime Mover: Reciprocating Engine
Fuel Type: Biomass
Thermal Use: Heating the Digesters
Installation Year: 2013
Energy Savings: Unknown
Testimonial: The 1 MW engine at Sievers Family Farm was awarded a $500,000 USDA REAP grant, a $250,000 NRCS EQIP grant, and a $200,000 Alliant Energy grant. After the farm’s electric needs are met, the remainder of the power is sold to Interstate Light and Power (Alliant Energy).
Source: http://www.americanbiogascouncil.org/projectProfiles/stocktonIA.pdf
(L to R) Bryan Sievers, Paul Owen (CAT Financial), Jon Sievers, David Harris (Altorfer)
Resources and Tools
U.S. DOE CHP Technical
Assistance Partnership Mission
o Provide stakeholders with the resources necessary to identify and pursue CHP market opportunities.
o Support implementation of CHP systems in both stand-alone and district energy and/or microgrid with CHP settings.
President’s Executive Order 13624: 40GW of new CHP by 2020
CHP TAPs, as regional CHP experts, are critical components of achieving the goal:
o Provide fact-based, un-biased information on CHP o Technologies
o Project development
o Project financing
o Local electric and natural gas interfaces
o State best practice policies
o Vendor, fuel, and technology neutral
CHP Technical Assistance
Partnerships
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.
Market Opportunity Analysis Supporting analyses of CHP market opportunities
in diverse markets including industrial, federal,
institutional, and commercial sectors
Uses available site information. Estimate: savings, Installation costs, simple paybacks, equipment sizing and type.
Quick screening questions with spreadsheet payback calculator.
3rd Party review of Engineering Analysis. Review equipment sizing and selection.
Review specifications and bids. Limited operational analysis
CHP TAP Technical Assistance
Screening and Preliminary
Analysis
Feasibility Analysis
Investment Grade Analysis
Procurement, Operations,
Maintenance, Commissioning
A Feasibility Analysis Typically Involves:
o Electrical load profiling
o Thermal load profiling
o Unit sizing
o Thermal use determination (what to do with the heat)
o Installation cost estimations
o Financial calculations (simple payback, ROI, etc.)
o Cost/savings information compared to what your facility would pay if the CHP system were not installed
Screening and
Preliminary Analysis
Feasibility Analysis
Investment Grade
Analysis
Procurement, Operations,
Maintenance
Resources and Tools 2. Good Primer Report
http://energy.gov/sites/prod/files/2013/11/f4/
chp_clean_energy_solution.pdf
DOE/EPA Catalog
of CHP Technologies
(updated 2015)
https://www.epa.gov/sites/production/files/2015-
07/documents/catalog_of_chp_technologies.pdf
Resources and Tools Project Profile Database
(150+ case studies)
http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_datab
ase/
DOE Database of Incentives &
Policies (DSIRE)
www.dsireusa.org
Resources and Tools DOE CHP Installation Database
(List of all known
CHP systems in U.S.)
No-Cost CHP Screening and
Other Technical Assistance from
the CHP TAP
http://www.energy.gov/sites/prod/files/2015/11/f27/C
HP%20TAP_informative%20handout_10.30.15.pdf
https://doe.icfwebservices.com/chpdb/
Summary o CHP gets the most out of a fuel source enabling:
• Reduced operating costs
• Reduced environmental footprint
• More efficient power and thermal generation
o Proven technologies commercially available cover full range of sizes and applications
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Thank You !
Contact information:
Marcia Karr, PE; (360) 956-2144 [email protected]
David Sjoding, Director; (360) 956-2004 [email protected]
