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Combined Heat and Power An Effective Solution for Resiliency Association of South Carolina Energy Managers Spring Conference April 11, 2019 Columbia, South Carolina U.S. DOE Southeast Combined Heat and Power Technical Assistance Partnership Art Samberg, Assistant Director

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Combined Heat and PowerAn Effective Solution for Resiliency

Association of South Carolina Energy ManagersSpring Conference

April 11, 2019Columbia, South Carolina

U.S. DOE Southeast Combined Heat and Power Technical Assistance PartnershipArt Samberg, Assistant Director

Presentation Outline▪ Introduction to the US DOE Combined Heat and

Power Technical Assistance Partnerships (CHP TAPs)

▪ Combined Heat and Power Overview▪ Combined Heat and Power in the U.S. and in

South Carolina▪ Benefits of Combined Heat and Power▪ Project Snapshots▪ Technical Assistance offered through the US DOE

CHP TAPs▪ Summary and Next Steps

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DOE CHP Deployment Program Contactswww.energy.gov/CHPTAP

Tarla T. Toomer, Ph.D.CHP Deployment ManagerOffice of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]

Patti GarlandDOE CHP TAP Coordinator [contractor]Office of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]

DOE CHP Technical Assistance Partnerships (CHP TAPs)

DOE CHP Technical Assistance Partnerships (CHP TAPs)

• End User EngagementPartner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses.

• Stakeholder EngagementEngage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation’s resilient grid. CHP TAPs provide fact-based, non-biased education to advance sound CHP programs and policies.

• Technical ServicesAs leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation.

www.energy.gov/chp

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CHP: A Key Part of Our Energy Future 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:

o Space Heating / Cooling

o Process Heating / Cooling

o Dehumidification

CHP provides efficient, clean, reliable, affordable energy –

today and for the future.

Source: www.energy.gov/chp

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CHP System Schematic

Prime MoverReciprocating EnginesCombustion Turbines

MicroturbinesSteam Turbines

Fuel CellsORC turbine

ElectricityOn-Site Consumption

Sold to Utility

FuelNatural Gas

PropaneBiogas

Landfill GasCoal

SteamWaste Products

Others

Generator

Heat Exchanger

ThermalSteam

Hot WaterSpace Heating

Process HeatingSpace Cooling

Process CoolingRefrigeration

Dehumidification

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Which CHP Technology Fits My Energy Loads?

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Fuel 100 units

CHP75% efficiency

Total Efficiency~ 75%

Fuel

Fuel

30 units

Power Plant32% efficiency(Including T&D)

Onsite Boiler80% efficiency

45 units

Electricity

Heat

Total Efficiency~ 50%

94 units

56 units

30 to 55% less greenhouse gas emissions

CHP Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs

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CHP Can Enable Other MicrogridTechnologies

With a CHP system providing baseload electric and thermal energy, microgrids can add:◦ Solar and wind resources

◦ Energy storage

◦ Demand management

◦ Central controls

◦ Electric vehicle charging

Flexible CHP systems can ramp up and down as needed to balance renewable loads and provide grid services

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CHP Today in the United States

• 81.3 GW of installed CHP at more than 4,400 industrial and commercial facilities

• 8% of U.S. Electric Generating Capacity; 14% of Manufacturing

• Avoids more than 1.8 quadrillion Btus of fuel consumption annually

• Avoids 241 million metric tons of CO2 compared to separate production

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CHP in South CarolinaInstalled CHP as of 12/31/2017 25 sites with a capacity of 1,389 MW*◦ Commercial – 10 sites, 70 MW◦ Industrial – 13 sites, 1,317 MW◦ Other – 2 sites, 2 MW

Remaining CHP Technical Potential 4,273 sites with a capacity of 3,063 MW◦ Commercial – 3,339 sites, 1,251 MW◦ Industrial – 922 sites, 1,656 MW◦ Waste Heat to Power CHP – 12 sites, 156 MW

* Includes Shaw Industries (commenced operation in 2018)

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What Are the Benefits of CHP? CHP is more efficient than separate generation of

electricity and heating/cooling

Higher efficiency translates to lower operating costs (but requires capital investment)

Higher efficiency reduces emissions of pollutants

CHP can also increase energy reliability and enhance power quality

On-site electric generation can reduce grid congestion and avoid distribution costs.

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Why the Focus on Resiliency?

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Not Being Resilient Has Impacts

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CHP: Proven to be ResilientHurricane Harvey• University of Texas Medical Branch (UTMB)• Texas Medical Center (TMC)• Southwest Energy Data Center• Lake Charles Manuf. Complex• DeBakey VA Medical Center

Hurricane Irma & Maria• Hospital De La Concepcion PR• Wyndham Hotel St. Thomas • Univ. of Florida Shands Medical Center• Matosantos Commercial Corp• Captain Morgan Diageo Rum Distillery• Plaza Extra East Supermarket St. Croix

Superstorm Sandy• South Oaks Hospital• Princeton University• Salem Community College• Public Interest Data Center• Bergen Counties WWTP• Sikorsky Aircraft Corp.

Hurricane Ike & Katrina• Mississippi Baptist Medical Center• Louisiana State University• University of Texas Medical Branch (UTMB)

CHP Systems Kept Facilities Operational Through Hurricanes

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Distributed Energy Resources Disaster Matrix

Source: https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/DER_Disaster_Impacts_Issue%20Brief.pdf

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Critical Infrastructure Resilience with CHP

Critical infrastructure refers to assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, economic security, or public health and safety

Many critical infrastructure facilities have consistent electric and thermal loads that can support CHP

CHP offers many benefits to critical infrastructure:◦ Improve power quality, reliability, and resiliency◦ 24/7 power and heat with continuous benefits and cost savings◦ Can continue to operate during utility outages, providing

uninterrupted electricity and heating/cooling to host facility

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Critical Infrastructure CHP Installations

Source: CHP Installation Database, 2018 - https://doe.icfwebservices.com/chpdb/

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CHP in Critical Infrastructure Installations by Sub-Sectors

More than 8.5 GW of CHP is installed at over 1,300 sites identified as critical infrastructure

Source: CHP Installation Database, 2018 - https://doe.icfwebservices.com/chpdb/

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Project Snapshot:Industrial CHPShaw Industries Group, IncColumbia, SC

Application/Industry: Carpet Fiber ProductionCapacity: 14.1 MWPrime Mover: Gas turbineFuel Type: Natural gasThermal Use: Process steam, hot water, coolingInstallation Year: 2018Emissions Savings: Reduces CO2 emissions by 26,000 tons/year

Highlights: The 14.1 MW CHP system has the capacity to meet 100% of the plant’s load as well as 75% of its electric demand. Shaw Industries has been significantly investing in their operations to minimize its environmental footprint. Shaw has invested more than $30 million since 2011 to reduce its greenhouse gas impacts. Shaw currently has a target of 40% GHG emission reduction by 2030.

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Project Snapshot:Renewable Biomass CHP System

Sonoco Products CompanyHartsville, South Carolina

Application/Industry: Pulp and PaperCapacity: 16 MWPrime Mover: Boiler/steam turbineFuel Type: BiomassThermal Use: Process steamInstallation Year: 2013Emissions Savings: Reduces CO2 emissions by more than 80 percent

Highlights: The Sonoco Hartsville CHP Plant has exceeded company expectations: • Produced 85,000 MW-hrs of electricity in 2013• Saved Sonoco Products millions in energy costs• Created approximately 200 jobs during

construction• Created approximately 20 permanent direct jobs

and 30 permanent indirect jobs

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Project Snapshot: Shands Hospital at the University of Florida – Gainesville Regional Utilities Location: Gainesville, FL Application/Industry: Hospitals Capacity: 12 MW Prime Mover: Gas turbine + Recip. engine Fuel Type: Natural gas Thermal Use: Steam for heating and steam

turbine chiller Installation Year: 2009, 2017 Resilience Benefits

◦ GRU South Energy Center incorporates hurricane-resistant design and meets the planned expansion of the Shands Cancer Center campus

◦ Provides consistent power and thermal energy to critical hospital and research facilities

◦ GRU continues to operate the system in island mode in the event of a broader grid outage

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Finding the Best Candidates:Some or All of These Characteristics

High and constant thermal load Favorable spark spread Need for energy resilience Concern over future electricity prices Interest in reducing environmental impact Existing central plant Planned facility expansion or new construction; or

equipment replacement within the next 3-5 years

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CHP TAP Role: Technical Assistance

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High level assessment to determine if site shows potential for a CHP project◦ Qualitative Analysis

– Energy Consumption & Costs

– Estimated Energy Savings & Payback

– CHP System Sizing

◦ Quantitative Analysis– Understanding project drivers

– Understanding site peculiarities

DOE TAP CHP Screening AnalysisAnnual Energy Consumption

Base Case CHP Case

Purchased Electricty, kWh 88,250,160 5,534,150 Generated Electricity, kWh 0 82,716,010 On-site Thermal, MMBtu 426,000 18,872 CHP Thermal, MMBtu 0 407,128 Boiler Fuel, MMBtu 532,500 23,590 CHP Fuel, MMBtu 0 969,845 Total Fuel, MMBtu 532,500 993,435

Annual Operating Costs

Purchased Electricity, $ $7,060,013 $1,104,460 Standby Power, $ $0 $0 On-site Thermal Fuel, $ $3,195,000 $141,539 CHP Fuel, $ $0 $5,819,071 Incremental O&M, $ $0 $744,444Total Operating Costs, $ $10,255,013 $7,809,514

Simple Payback

Annual Operating Savings, $ $2,445,499 Total Installed Costs, $/kW $1,400 Total Installed Costs, $/k $12,990,000 Simple Payback, Years 5.3

Operating Costs to Generate

Fuel Costs, $/kWh $0.070 Thermal Credit, $/kWh ($0.037) Incremental O&M, $/kWh $0.009

Total Operating Costs to Generate, $/kWh $0.042

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National Drivers for CHP Benefits of CHP recognized by

policymakerso State Portfolio Standards (RPS, EEPS), Tax Incentives,

Grants, standby rates, etc.

Favorable outlook for natural gas supply and price in North America

Opportunities created by environmental drivers

Utilities finding economic value Energy resiliency and critical

infrastructure

DOE / EPA CHP Report (8/2012)

http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

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Summary CHP gets the most out of a fuel source, enabling◦ High overall utilization efficiencies◦ Reduced environmental footprint◦ Reduced operating costs

CHP is key component of critical infrastructure resiliency and emergency planning

Proven applications with commercially available technologies that cover a range of needs

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Next StepsContact us if you are:▪ Interested in having a Qualification Screening

performed to determine if your site is a good candidate for CHP

▪ At a site with an existing CHP plant and are interested in expanding it

▪ In need an unbiased 3rd Party Review of a feasibility study, equipment proposal or commissioning plan

▪ Interested in further information on best practice state policies for CHP to support energy resilience, including through a webinar or face-to-face meeting

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Thank you!Isaac Panzarella

Director, DOE Southeast CHP TAP

NC Clean Energy Technology CenterNC State University

Raleigh, NCemail: [email protected]

tel: 919 515 0354

Art SambergAssistant Director

email: [email protected]: 919 515 5959

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