What is Combined Heat & Power?

What is Combined Heat & Power?

Combined Heat and Power Overview & CHP Technical Assistance Bill Valentine DOE Mid Atlantic CHP Technical Assistance Partnership [email protected] GPAEE November 20, 2014 CHP Technical Assistance Partnerships Promote and assist in transforming the market for CHP, waste heat to power, and CHP district energy technologies and concepts throughout the United States. Key services of the CHP Technical Assistance Partnerships include:

Market Opportunity Analyses Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors. Education and Outreach Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, energy 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 project development process from initial CHP screening to CHP Technical Assistance Partnerships What is Combined Heat & Power? Form of Distributed Generation (DG) An integrated system

Located at or near a building / facility Provides at least a portion of the electrical load and Uses thermal energy for: Space Heating / Cooling Process Heating / Cooling Refrigeration/Dehumidification Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_basics.html CHP provides cost-effective, clean and reliable energy

today and for the future. Slide 4 CHP Diagram Over Two Thirds of the Fuel Used to Generate Power in the United States Is Lost as Heat CHP Drivers Benefits of CHP recognized by policymakers 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 Favorable outlook for natural gas supply and price in North America Opportunities created by environmental drivers Energy resiliency and critical infrastructure 4/1/14 DOE / EPA CHP Report (8/2012)

Slide 7 CHP Drivers Cost Savings Offset Utility/3rd Party kWhs + Therms Reduce Utility Demand Charges - Demand Response Improved Power Reliability/Quality Emissions Reductions In the same way that it saves fuel cost, CHP reduces pollution by using the fuels energy twice, yielding half to a third of the emissions from separate fossil fuelled grid power and boilers. Supported by US DOE & US EPA

4/1/14 Slide 8 CHP Drivers Reliability / Resiliency Provides local grid support and improves power quality Can often be configured to provide emergency power back-up Natural Gas grid can be more reliable for long term outages National Security Reduced fossil fuel usage extends US resources and reduces dependence on foreign energy imports Multiple points of power generation are less subject to

catastrophic failure or attack 4/1/14 Slide 9 Combined Heat and Power Benefits Benefits of CHP for U.S. businesses Reduces energy costs for the user Reduces risk of electric grid disruptions and enhances energy reliability Provides stability in the face of uncertain electricity prices Benefits of CHP for the Nation Improves U.S. manufacturing competitiveness

Offers a low-cost approach to new electricity generation capacity Provides an immediate path to lower GHG emissions through increased energy efficiency Lessens the need for new transmission and distribution (T&D) infrastructure and enhances power grid security Uses abundant clean domestic energy sources Uses highly skilled American labor and American technology Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf CHP Case Studies ED Abington Health

Co-Generation Capacity: (1) 4.5 mW Combustion Turbine Steam heat recovered for all hospital heating needs Produces 60% electrical demand Option for future Steam Turbine Chiller (not installed yet) Premium cost for facility to house CHP ED Abington Health 4.5 MW CT Utility Operating Cost Prior to Co-Generation: Net Annual Savings*:

$2.25 million/yr Investment Cost: $9.2 million Simple Payback: 4.1 Years Financial Incentive (PA Award) (ACT 129)

*Includes Maintenance Cost $7 million/yr $3 million $3.2 million Phoenix Contact Middletown , PA Five 200kW Capstone micro-turbines packaged in a single container. 300 ton exhaust fired absorption chiller. 5,000 BTU heat exchanger. Facility heating and/or cooling.

Expected annual savings of $300,000. Redundant source of electricity. Princeton University The 15 MW CHP plant provides steam and chilled water throughput the campus and is integrated with the wholesale and transmission markets. Provides 100% of heat and hot water requirements and 50% of electrical energy. Through the efficiency of CHP, Princeton has dramatically reduced its fuel use, avoiding over 27,900 metric tons of carbon emissions and

making it one of the leading campus energy plants in the country in both efficiency and environmental sustainability. 4/1/14 Slide 15 Independence Visitors Center

50,000 sq. ft. facility 75 kW reciprocating engine 20 ton Absorption Chiller Natural gas Roof mounted unit Building LEED certified 6/4/14 Slide 16 The Brevoort: Manhattan, NY

Residential high rise with natural gas-powered CHP system Four 100 kW CHP units powered all 290 apartments through Sandy Normal occupancy is 720 people. During Sandy, the Brevoort was able to house and provide power to 1,500 people through the storm.

Powered by our CHP system, we were the only building on lower Fifth Avenue able to provide energy and full service to our residents. - Diane Nardone, President of the Brevoort coop board The Brevoort was able to maintain power for central boilers, domestic water pumps, all elevators and all apartments Additional Local CHP Installations PGW Headquarters 200 kW Microturbine 40 ton Absorption chiller

Four Seasons Hotel 3 65 kW Microturbines Domestic hot water PCOM 130 kW Microturbine

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