Application of Micro Turbines & Smart Grid for Municipal Buildings

1. 2009 EGSA Fall Technical & Marketing Conference Application of Micro Turbines & Smart Grid for Municipal Buildings www.preon.com Presented by Tim Tawoda

2. Outline • Technology Basics: Micro Turbine, Absorption Chiller & Smart Grid • Micro Turbine “Muni” Drivers: Environment, Economics & Security • City Implementation of CHP (Cogen) • City-Specific Issues • Case Study: Chicago Police • Applying CHP City-Wide • How Do I get Started? • Q & A

3. What is a Micro Turbine? • Small, light, self-contained Power Plant: 100 – 250 kW per MT – depending on Vendor • Fueled (primarily) by Natural Gas • Reliable, quiet and clean-burning • Similar to jet engine • Value Proposition: improves Environment, Economics and Security/Reliability 7’ High Weighs 4,000 lbs 10’ Long 3’ Wide Turbine assembly weighs 200 lbs

4. Technology: How Micro Turbines Work Heat for Absorption Chiller or Boilers Electric Output Recuperator Fuel Battery Inverter Combustor Rectifier 68 k RPM Turbine Generator and Starter Intake Air Compressor

5. Cooling Water Technology: How Absorption Chillers Work Micro Turbine Exhaust is source of “free” energy for Absorption Chiller

6. Technology: Components of a “Smart Grid” Distributed Generation Smart Meters Like Solar and Wind Power, Micro Turbines are a form of “Distributed Generation” Controls & Communications Electric Utility Grid

7. Technology: Traditional (on-site) Generator vs MT Reciprocating Engine Generators (also known as “Internal Combustion” Engine Generators) vs Micro Turbine Generators

8. 100% Fuel Environment is Main Driver MT CHP = Micro Turbine Combined Heat & Power • Traditional Power Plant Delivers 33% of Input Energy • MT CHP Delivers 45% + 30% = 75% of Input Energy • Traditional Power Plant Requires 2.27 X’s as much Energy: 2.72 X’s carbon footprint 67% Total Waste Line Loses 9% 33% Delivered Electricity Generation: $890/kW 4,800 GW worldwide $4.2 trillion Transmission: $1,380/kW 4,800 GW worldwide $6.6 trillion T&D and Transformers (to End User): $2,495/kW 4,368 GW worldwide $10.8 trillion 45% Thermal 30% Electric 100% Fuel

9. Environment: MT & RENEWABLE Energy Applications Normal City Application: Utility Natural Gas (NOT “Renewable” Gas) as fuel source *However, MT CAN Operate on “Renewable” Gas: • Bio Gas • Digester Gas • Landfill Gas • Bio Diesel MT operating on coal bed methane @ 4,000 feet and -40 def F. Why Natural Gas vs “Renewable” Gas for Cities? Natural Gas is readily available and consistent via Utility Gas Grids – HOWEVER, Technology Advances is changing this!

10. Environment: City Sources of “Renewable” Gases for MTs: • Bio Gas can be produced from Solid Waste via a.) Cellulosic or b.) Pyrolization gasification processes • Digester Gas can be produced from natural gassing at Waste Water Treatment Plants • Landfill Gas can be produced from natural decomposing of garbage at Landfills MT operating on landfill gas Municipal Pyrolization Plants may be around the corner: solid waste converted to free energy

11. Environment: Enhanced by Smart Grids of the Future Micro Turbines Coal Gasification Plant Natural Gas From Utility Grid Smart Grids allows City to aggregate all base load (“green” coal gasification plant) and supplemental Renewable Energies. Micro Turbines run on “syn” gas and methanol created by coal gasification plant; gas is blended with utility gas for redundancy/reliability

12. Economics: Fed, State and Utility Incentives ARA = American Recovery Act = Federal Stimulus • ARA: 10% of cost –Up to $200 per kW • NYSERDA: 10-50% of capital cost • ICAP: $66,000 per 1,000 kW (annually) • State of New Jersey: $1000 per kW • State of Oregon: $1000 per kW • State of California: considering 2010 • Fed Solicitations: NETL $500M Grants • 13 States + DC consider Waste Heat as “Renewable” http://www.dsireusa.org/ This Link Provides an Update on Grants, Credits and Subsidies State-by-State ARA: Micro Turbines Operating on “Renewable” Gas or Bio Diesel qualify for 30% vs 10% ARA Grants

13. Economics Vary from City to City NYC Chicago Example: 200 kW CHP Plant: 2 x 100 kW Micro Turbines + 60 Tons of AC; Average Electrical Consumption: 150 kW

14. Economics: Utility Electric Ideal MT CHP Cost Metrics: Expensive Electric Utility & Cheap Natural Gas Utility Electric Utility Consumption decreased by 2.8% in 2009: USDOE Electric Utility Cost INCREASED by 4.2 in 2009: USDOE The Key to MT CHP Economics: Micro Turbines produce 2.72 X’s as much output energy as traditional power plants

15. Economics: Utility Natural Gas “US Estimated Gas Reserves have surged by 35%; US holds far larger reserves than previously thought. The jump is the largest increase in the 44-year history of reports from the committee”: Potential Gas Committee – Wall Street Journal 6-18-9 US Reserves increased due to Shale Gas deposits: technological advances make gas @ 4,500’ depth viable If Cities used Landfill, WWTP and Bio Gas: cost of energy is Zero $

16. Security: Vital @ Police Stations Traditional Police Station Chicago Police Station Dual Primary Power: Electric AND Natural Gas Secondary Power: Diesel Genset Potential Enhancements: a.) Secondary Power via Micro Turbine with LP (Eliminate Diesel Genset); b.) Redundant AC with Absorption Chillers Lowers Stress on Local Electric Utility Grid • Single Primary Power: Electric • Secondary Power: Diesel Genset On a NATIONAL LEVEL, United States becomes less dependent (more SECURE) when utilizing renewable fuels (bio gas, digester gas, landfill gas and bio diesel ) OR CBM, Shale gas and domestic natural gas. CBM, Shale gas and domestic natural gas and LP, unlike oil and diesel fuel, are very plentiful.

17. Security: Enhanced by Smart Grid MT CHP Plants + Smart Grid provides the ultimate City Power Infrastructure Micro Turbine CHP Plants

18. CHP Implementation: Classic Approach Spec Engineer works with vendors on equipment sizing and selection; Contract award based on “bid-spec” or “Performance Contract”. Security or Environ Criteria Met; Funding Alternative Made; City Consensus for MT CHP City instructs Architect to embrace MT CHP; Architect allocates footprint and complies with LEED criteria Architects instructs Spec Engineer to integrate MT CHP into Electrical and HVAC infrastructure

19. CHP Implementation: Reality of City Politics • Mayors embrace CHP for Environment & Security merits • Energy Czar may be weak link; transient (political) position: gets promoted to different Department - by the Mayor • Mayor must transcend Czar disruption (promotion) • Energy Integrator: keeps the focus of Mayor/City agenda, Architect & Engineer - also facilitates the design Continuity of Energy Czar office/tenure varies greatly City-to-City. Many smaller Cities have no Energy Czar. A forceful Mayor is Key Ingredient for CHP Implementation

20. Smart Grid Implementation: Challenges for Cities Bottom Line: Comprehensive Smart Grids could take decades to perfect. However, CHP can accomplish key objectives of Smart Grids today: demand reduction, improved reliability/security and better economics. CHP can be integrated with the Smart Grid as it evolves • Expense • Cultural Barriers • Resource Constraints • Short-term thinking • Lack of collaborative spirit • Lack of coordinated R&D b/w utilities and vendors • Lack of standards, definitions, interoperability • Unwillingness to deconstruct the paradigm • Scope of Technology Change

21. City-Specific Issues: MT CHP Response Density of City Electric Loads Increasing. PC’s and Internet account for 2.5% of total U.S. power consumption but that number is doubling every 5 years. concentration is much greater in cities. Electric Plug-in Vehicles require 8 kWh electric re-charge per 40 miles. 100 cars recharging in the building garage could increase the demand by 800 kW. 10-30% increase in demand.

22. City-Specific Issues: Crisis Management • East Coast Blackout on August 14th 2003: Problem could have been averted with less stress on the grid. • During electric outage, buildings can operate if gas grid is up. • LP (Liquid Propane) can power MTCHP if gas grid is also failed. • Hurricane Katrina August 29th 2005: MT CHP could have provided electric power and cooling at time of crisis. East Coast Blackout

23. Chicago Police: Timeline Time line MT Operating on Roof Each new Chicago Police Station will have a 100 kW Micro Turbine on the roof: total of 12 new Stations

24. Chicago Police: Project Specifics • Qty (1) 100 kW Micro Turbine – expandable to 2 MT: MT in parallel with Electric Grid; MT provides 90% of Electric Power Needs • Smart Controls • 350 kW Diesel Genset • Commissioning • 5-Year Service Agreement • Utilization of Waste Heat: Boiler & future absorption chiller • Continuous Monitoring and Control of Micro Turbine via Internet by Energy Integrator Electric Grid Building Electric Load Future Export Power Smart Controls Standby-Backup Diesel Genset MT Genset Future export of Diesel Genset Power via GPC, Internet and Smart Grid MT Turbine Exhaust to Boilers Natural Gas Grid Internet

25. Chicago Police: “Smart Grid Upgradable” • Engine Control/Monitor • Utility Relays • PLC Logic & Network Communications • Local/Remote Communications Interface Smart Controls Traditional Controls Smart Controls replace numerous mechanical relays with a single solid state controller; accommodate export of aggregate diesel gensets/buildings in the future via “smart grid”.

26. Applying MT CHP City-wide • CHP requires viable use of waste heat: Often heating/cooling of building space • Typically requires 7 x 24 habitation such as Police Stations • How do we utilize the waste heat for other buildings – such as High Schools? • Micro Turbines manufacture Organic Rankin Cycle (ORC) • ORC converts waste heat from (4) micro turbines to 100 kW additional “free” electricity ORC Expansion Module

27. How Do I Get Started? Start with New Construction vs Rehabs: Easier to Move Lines on Paper vs Knocking Down Walls Consider Police Stations: Smaller CHP Plants, Easy Use of Waste Heat due to 7 x 24 Habitation; Police Stations have need for Higher Security Benefit Engage your Local Energy Integrator: • Access to MT CHP Technologies • Post-Factory Upgrades to Micro Turbines • Application Engineering • Project Management • Commissioning Capabilities • Continuous Maintenance and Monitoring of MT CHP Plant

28. Questions and Answers Thank You for Your Time! www.preon.com ; ttawoda@preon.com