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Bruce Hedman, Institute for Industrial Productivity September 16, 2014. About the Institute for Industrial Productivity.
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Bruce Hedman, Institute for Industrial ProductivitySeptember 16, 2014
About the Institute for Industrial Productivity The Institute for Industrial Productivity provides industry and governments with the best energy efficiency practices to reduce energy costs and prepare for a low carbon future. • Sharing best practices, including policy experience, and providing access to a network of international experts. • Developing original research, analysis and databases. • Bridging the gap between government policy and industry implementation. FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 3
CHP is an integrated energy system that: Is located at or near a factory, building or campus Generates electrical and/or mechanical power Recovers waste heat for heating, cooling or dehumidification Can utilize a variety of technologies and fuels What Is Combined Heat and Power?
User - Reduced energy costs and improved power reliability Environment – Reduced energy use and lower emissions (greenhouse gases, NOx, SOx, CO and PM) Public Safety – Keep critical infrastructure operating and support the grid in times of emergency What Are the Benefits of CHP?
Efficiency Benefits of CHP Source: Oak Ridge National Laboratory FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 6
CHP Value Proposition Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012 Based on: 10 MW Gas Turbine CHP - 28% electric efficiency, 68% total efficiency Displaces National All Fossil Average Generation (eGRID 2010 ) - 9,720 Btu/kWh, 1,745 lbs CO2/MWh, 6% T&D losses
CHP Is an Important U.S. Energy Resource • 83.3 GW of installed CHP at over 4,220 industrial and commercial facilities • 86% of capacity in industrial applications • 70% of capacity is natural gas fired • Avoids more than 1.8 quadrillion Btusof fuel consumption annually • Avoids 241 million metric tons of CO2compared to separate production Source: CHP Installation Database, March 2014 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 8
CHP is Used at the Point of Demand Source: CHP Installation Database
The Potential for Additional CHP Development Is Significant Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012
Federal Example – National Institute of Health • 75 buildings, 300 acres, 8 million ft2 laboratories, hospitals rooms, teaching facilities and offices • CHP system installed 2004 • 23 MW natural gas combustion turbine, • 180,000 lb/hr steam for space heating and cooling, and lab support • $62 million project • $16 million for energy efficiency and energy management systems upgrades • Annual energy savings: • 640 billion Btus • $4 million
Federal Example – Jesse Brown VA Medical Center • Veterans Administration Hospital, Chicago, IL • 200 beds, 1,800 staff, 62,000 local vets • CHP system installed 2003 • 3.4 MW natural gas combustion turbine • 100% winter peak • 90% summer peak • 50,000 lb/hr steam for space heating and cooling, and sterilization • Enhanced Use Lease Project • ESG designed/built & maintains the Energy Center • Estimated savings to VA of $25 million over 25 years
Federal Example – U.S. Coast Guard Shipyard • Curtis Bay (Baltimore), Maryland • Builds, repairs, renovates ships • 112 acre site, 110 years old • Houses other USCG tenants • Annual budget of $88 million • CHP System installed 2009 • Four 1 MW low NOxrecip engines • Fueled by landfill gas (1.5 mile pipeline) • 2000 lb/hr 95 psi steam from each engine • DOE ESPC Contract • Ameresco • Project offsets 18,000 MWh and 71,000 Dthrm • Energy security was an important driver • Achieved entire DHS renewable energy goals through 2012
CHP Market Drivers • Changing natural gas outlook • Growing recognition of CHP benefits by state and federal policymakers • Opportunities created by: • Environmental pressures • Growing interest in grid resiliency Source: ICF International FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 14
CHP Market Drivers • Changing natural gas outlook • Growing recognition of CHP benefits by state and federal policymakers • Opportunities created by: • Environmental pressures • Growing interest in grid resiliency Source: ICF International Over 3,000 MW announced/under construction FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 15
Hurdles to CHP Deployment FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 16 Financial uncertainty CHP cost and performance uncertainty Regulatory uncertainty Utility uncertainty