bruce hedman, institute for industrial productivity september 16, 2014
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Bruce Hedman, Institute for Industrial Productivity September 16, 2014. About the Institute for Industrial Productivity. - PowerPoint PPT PresentationTRANSCRIPT
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2
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.
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• 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?
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• 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
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CHP Value Proposition
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
Category 10 MW CHP 10 MW PV 10 MW Wind
Annual Capacity Factor 85% 22% 34%
Annual Electricity 74,446 MWh 19,272 MWh 29,784 MWh
Annual Useful Heat 103,417 MWht None None
Footprint Required 6,000 sq ft 1,740,000 sq ft 76,000 sq ft
Capital Cost $20 million $45 million $24 million
Annual Energy Savings 316,218 MMBtu 198,563 MMBtu 306,871 MMBtu
Annual CO2 Saving 42,506 Tons 17,824 Tons 27,546 Tons
Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012
Source: CHP Installation Database, March 2014
• 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 Btus of fuel consumption annually
• Avoids 241 million metric tons of CO2 compared to separate production
CHP Is an Important U.S. Energy Resource
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CHP is Used at the Point of Demand
Source: CHP Installation Database
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The Potential for Additional CHP Development Is Significant
Source: CHP: A Clean Energy Solution; US DOE and EPA, 2012
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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
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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
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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 NOx recip 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
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20002001
20022003
20042005
20062007
20082009
20102011
2012
2013-2014
2015-20160
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Capa
city
(MW
)
Source: ICF International
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
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 15
20002001
20022003
20042005
20062007
20082009
20102011
2012
2013-2014
2015-20160
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Capa
city
(MW
)
Source: ICF International
Over 3,000 MW announced/under construction
Financial uncertainty
CHP cost and performance uncertainty
Regulatory uncertainty
Utility uncertainty
Hurdles to CHP Deployment
FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 16