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Reducing Site Energy Costs with Combined Heat and Power Generation. ISA April 23rd, 2009. www.f4energy.com. Presentation Outline. Introduction to F4energy & Combined Heat and Power Background to the Irish Energy Market & Energy Prices Examples of CHP Applications in Ireland
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Reducing Site Energy Costs with Combined Heat and Power Generation ISA April 23rd, 2009 www.f4energy.com
Presentation Outline • Introduction to F4energy & Combined Heat and Power • Background to the Irish Energy Market & Energy Prices • Examples of CHP Applications in Ireland • Fossil Fuel CHP, Renewable CHP, Trigeneration • CHP Installation Considerations • CHP Design Philosophies • Investment Payback Example • Questions…
About F4energy • F4energy was founded in late 2001 by former ESB and Siemens professionals to provide Combined Heat and Power (CHP) solutions in the Irish market. • Comprehensive CHP Offering including Feasibility Assessment, Design, Installation and Maintenance. • F4energy currently operates ~ 70 CHP plants in Ireland • District Heating, Shopping Centres, Industry, Hospitals, Hotels, Office Blocks, Universities, Local Government
What is Combined Heat and Power (CHP) ?- Generation of Power & Heat from Single Fuel Input - WASTE…. ~ 40% Efficiency Electricity Output WASTE…. ~ 80% Efficiency Heat Output Electricity Output
Combined Heat and Power in Europe In Europe, 9% of all power production is produced using Combined Heat and Power….. In Ireland……. less than 3% of the nation’s power production is CHP
Background to the Irish Energy Market • Rising National Demand and Security of National Grid Supply Eirgrid’s Generation Adequacy Report for 2008-2014: shortfall of 500MW over next five years with an estimated 2.6% p.a. growth in national demand. • Ireland’s reliance on imported fuels for Energy (gas/oil/coal)The upward shift in world energy prices will be fully passed on to Irish consumers due to Ireland’s 90% energy import dependency. • Regulatory Drivers Building Energy Ratings & New Part L compliance driving energy efficiency • CAPITAL GRANT AID SCHEME FOR COMBINED HEAT AND POWER 30% Capital Grant Aid for CHP Unit, Installation & ConsultancyCosts
Examples of CHP Applications District Heating uses a Centralized Energy Centre to produce Energy for multiple clients. Example ►Elm Park Site, Dublin City• €300m, 100,000m2 scheme inc. Office Blocks, Daycare Centre, 400 Apartments• Energy Efficient Design includes a centralized Energy Centre with 1.2MWe CHP• Site Tenants are invoiced for Heat & Electricity by Energy Supply Company
District Heating Energy Centre 1200kW Electrical Output Servicing Mixed Use Development
Retail Applications - Tesco Nutgrove CHP Used for Space & Hot Water Heating- 6 month, 24/7 Operation • New Maynooth, Tramore, Drogheda Trigeneration Sites producing Heat, Cooling and Electricity- 12 month 24/7 Operation
Industry Applications CHP & Trigeneration Solutions Producing Heat, Cooling & Electricity for Production Processes
Renewable CHP TechnologiesBiomass Fuel Conversion Thermal Conversion Options:► Using Heat for Combustion or GassificationPower Generation: Biomass Steam Boiler + Turbineor Biomass Gassifier + Reciprocating Engine/Stirling Engine Chemical/Biochemical Conversion Options:► Transesterification of Oils into BiodieselPower Generation: Biodiesel refining + Recip Engine►Anaerobic DigestionPower Generation: Anaerobic Digester + Recip Engine
Trigeneration (CCHP) Heat Rejection Conventional Chillers Absorption Chiller(s) Chilled Water Circuit CHP Plant(s) Trigeneration is the generation of Heat, Cooling and Power from a single fuel input Heating Circuit
CHP Installation Considerations Five primary interface points: 1) Low Pressure Hot Water Piping Connection to Boiler 2) Natural Gas Piping Connection to Gas Manifold 3) Combustion Exhaust 4) Ventilation Air 5) Power Cable Connection to LV Switchgear
CHP Installation Considerations Points to Consider: 1) Thermal: Centralized/Distributed on-site? STEAM / Hot Water? CHP/Boiler Control Philosophy? Location of Heat Rejection Unit 2) Natural Gas: Pressure Considerations? 3) Combustion Exhaust: Common Manifold? 4) Ventilation Air: Duct to External? 5) Power Cable Connection: LV/MV? Switchgear?
CHP Design Philosophies CHP Design Approach: Modulating, Buffer or Base Load Design Philosophy CHP Plants are available in a wide output range. The Feasibility Study matches the client’s Energy Demand Profile with the optimal CHP output range.
The ‘SPARK GAP’ Explained • CHP uses low cost commodity input (natural gas) to produce higher value commodity outputs ( Heat and Electricity). • ‘Spark Gap’ is difference between Gas prices and Electricity prices. • Cost of gas is ~ 2.5cent/kWh Versus ~ 11cent/kWh for Electricity…. • Energy Economics for 1MWe Plant hourly daytime production: + 1MW electricity output @ 11 cent/kWh = € 110+ 1MW Heat output @ 3.1 cent/kWh = € 31Less- 2.6MW Gas input @ 2.5 cent/kWh = (€ 65)- Lifecycle Maintenance cost per hour = (€ 12)= TOTAL ENERGY SAVINGS FROM CHP PLANT = € 64 per hour @ 7 Day x 24 Hours Annual Operation = € 512,000 Savings per year
Economics of 1MWe Combined Heat and Power • 1MW electrical output/1MW thermal output (low pressure hot water) • 8,000 annual operating hours (24 Hours Daily) Outputs Input 1MW Electricity 8 GWh annually 2.6 MW Nat. Gas 21 GWh annually ~ € 880,000 ~ € 520,000 1MW Heat 5GWh annually Maintenance ~ € 96,000 ~ € 248,000 Net Annual Energy Savings ~ € 512,000
CHP Project Risk Assessment • Design Risk: Is the CHP Plant Output Sized Correctly?- CHP Feasibility Study should address Site Thermal, Cooling & Electrical Load and map the optimal CHP Plant against this demand. • Technical Risk: Will the CHP Plant Operate Correctly (LIFECYCLE)?Under Capital Purchase Contract…..Technical Risk can be transferred in full to CHP company via the Lifecycle Warranty (covers all parts, labour, consumables etc.)Under Discounted Energy Supply Contract….Technical Risk carried by CHP company C) Energy Price Risk: Will ‘Spark Gap’ change significantly?Under Capital Purchase Contract…..Irish Electricity Prices are locked into gas price relationship so CHP plant reflects National Grid Pricing Structure Under Discounted Energy Supply Contract….Energy Price Risk carried by CHP Company
Questions…. Thank You. Aidan McDonnell Business Manager F4energy Ltd.Unit 14, Penrose WharfCork CityTel: 021 4861420Fax: 021 4552628 www.f4energy.com