copyright © western energy systems 2008aeepnwc.org/images/meeting/091808/aee_presentation... ·...

presented bypresented by

Garrett Smith, PE Garrett Smith, PE c: 971.678.6932c: 971.678.6932e: [email protected] e: [email protected]

toto

18 September 200818 September 2008Seattle, WashingtonSeattle, Washington

4 GEPresenter NameDate

2007

5 GEPresenter NameDate

2030


•• ApplicationsApplicationsCHP & Waste to Energy CHP & Waste to Energy -- Where are Jenbacher engines used and why?Where are Jenbacher engines used and why?

•• Case StudiesCase StudiesProject Examples with emphasis on highProject Examples with emphasis on high--efficiency Combined Heat & efficiency Combined Heat & Power (CHP) and Renewable Energy ApplicationsPower (CHP) and Renewable Energy Applications

Agenda

Who is GE Jenbacher?

The year 2007 marks the 50th anniversary of GE Jenbacher’s exclusive commitment to gasgas--onlyonly engines for power generation. During that time, the Global Center for Excellence in Jenbach, Austria has become the globally recognized clearinghouse for state-of-the-art technologies related to the use of a wide variety of synthetic gases, biogas, landfill gas, sewage gas, coal mine gas, and, of course, natural gas.

With over 7,000 global installations including hundreds in the USA, GE Jenbacher remains the worldwide leader in custom, distributed CHP (Combined Heat & Power), high efficiency CoGeneration, renewable bioenergy, and sub-10 MW gas fueled power generation, holding over 38% of global market share.


Jenbach, AustriaCenter for Global Excellence

50th Anniversary

2007

Why Reciprocating Engines?


Jenbach, AustriaCenter for Global Excellence

Still the Most Efficient Prime Movers on Earth: 35-45% Electrical Efficiency

Ideal for High Ambient Temperature & High Elevation Projects due toPositive Displacement (Otto Cycle) Relative Immunity to those variables

{1/3 of derates associated with Gas Turbines (Brayton Cycle)}


●● Industrial & Commercial CHPIndustrial & Commercial CHP(distributed cogeneration and trigeneration)(distributed cogeneration and trigeneration)

●● Hospital & UniversityHospital & University(district heating and cooling)(district heating and cooling)

●● BiogasBiogasfrom the Fermentation/Digestion of Organic Wastesfrom the Fermentation/Digestion of Organic Wastes

(manures, food processing wastes)(manures, food processing wastes)

●● Landfill Gas Landfill Gas

●● Greenhouse CHPGreenhouse CHP

●● Coal Mine Methane GasCoal Mine Methane Gas

●● SyngasSyngasGasified from biomass, MSW, TDFGasified from biomass, MSW, TDF

Applications / Markets


Purpose: CHP Purpose: CHP ‘‘RecyclesRecycles’’ EnergyEnergy

Fuel Energy isFuel Energy is““Used TwiceUsed Twice”” ::Heat & PowerHeat & Power

RecyclingEnergy.orgRecyclingEnergy.org


http://islandwood.org/img/LLNL_Energy_Chart300.jpg

Energy Utilization ChartEnergy Utilization Chart


Cogeneration is Where Cogeneration is Where Ecology & EconomicsEcology & EconomicsMeet on Common GroundMeet on Common Ground

High Electricity CostsHigh Electricity Costs((Including Complex Geographical Including Complex Geographical

Transmission ConstraintsTransmission Constraints))++

Increasing/VolatileIncreasing/VolatileNatural Gas PricingNatural Gas Pricing

Ideal Circumstances for Local, Efficient Ideal Circumstances for Local, Efficient CHP SolutionsCHP Solutions

that SIMULTANEOUSLY Conserve that SIMULTANEOUSLY Conserve Resources & Save MoneyResources & Save Money

sustainableENERGYsustainableENERGY™™projects that transcend the projects that transcend the ‘‘Jobs vs. EnvironmentJobs vs. Environment’’ RhetoricRhetoric


CHPCCHPCoror

TRITRI--GenerationGeneration

HeatHeat++

PowerPower++

CoolingCooling


Combined Heat & Power (CHP): Classic European Energy ModelCombined Heat & Power (CHP): Classic European Energy Model

CLEAN.CLEAN.

LOCAL.LOCAL.

EFFICIENT.EFFICIENT.

SAFE.SAFE.

RELIABLE.RELIABLE.

PROVEN.PROVEN.

QUIET.QUIET.


Why CHP in the Northwest?Why CHP in the Northwest?

•• Economic Gain from Energy EfficiencyEconomic Gain from Energy Efficiency2020--30% More Efficient than30% More Efficient thanGas Turbine Combined Cycle PlantsGas Turbine Combined Cycle Plants(5,000(5,000--6,000 btu/kW6,000 btu/kW--hr vs. 6,500hr vs. 6,500--7,500 btu/kW7,500 btu/kW--hr)hr)

•• Reduction in Air PollutionReduction in Air PollutionDisplaces Emissions from fuel already being used for standDisplaces Emissions from fuel already being used for stand--alone heating in favor of cleaneralone heating in favor of cleaner--burning CHP burning CHP equipment (40%equipment (40%--60% of CHP fuel requirement is displaced from less efficient Hea60% of CHP fuel requirement is displaced from less efficient Heatingting--Only systems)Only systems)

•• Local Power Generation at the Point of UseLocal Power Generation at the Point of UseDefers Need for New Transmission LinesDefers Need for New Transmission Lines


Reliability = ValueReliability = Value

•• Electrical AND Thermal Electrical AND Thermal RedundancyRedundancy

•• Grid Connected Grid Connected Operations via FERC Operations via FERC

Cogeneration LawsCogeneration Laws

••Continuous Duty, Globally Continuous Duty, Globally Proven Machinery with Proven Machinery with

International & Local International & Local SupportSupport

as part of base design, as part of base design, CHP system CHP system ‘‘doublesdoubles’’ as as emergency generationemergency generation


Numerous FarNumerous Far--Reaching BenefitsReaching Benefitsof Higher Energy Efficiencyof Higher Energy Efficiency

Increased Gas DistributionIncreased Gas Distribution

Sales by 40%Sales by 40%

(Bringing Clean Fuel to Point of Use)(Bringing Clean Fuel to Point of Use)

HIGH QUALITY EMPLOYMENT:HIGH QUALITY EMPLOYMENT:

ShortShort--Term Construction JobsTerm Construction Jobs

LongLong--Term Operating CareersTerm Operating Careers

Zero Capital Cost to Local Utility (if 3Zero Capital Cost to Local Utility (if 3rdrd Party Owned)Party Owned)

For Load Growth Support AndFor Load Growth Support And

Clean, Local, Efficient Power Generation ResourceClean, Local, Efficient Power Generation Resource

Reduced Urban Air PollutionReduced Urban Air Pollution

via Cleaner CHP Technologiesvia Cleaner CHP Technologies

Reduced Heating CostsReduced Heating Costs

For Thermal District HeatingFor Thermal District Heating

Host Businesses (5Host Businesses (5--25%)25%)


Local CHP is a LowLocal CHP is a Low--Cost ResourceCost Resource


BIOCHP: Diagram of a Typical Anaerobic Digestion BIOCHP: Diagram of a Typical Anaerobic Digestion -- Biogas Energy SystemBiogas Energy System

Organic Waste Sequestration for Power Generation: Best Worldwide VALUE for GHG Reduction


$0.07$3,000 22

Organic Waste Digestion / Biogas

$0.19$1,000 190Combined Cycle Natural Gas

$0.33$2,500 130Nuclear

$0.37$1,000 370Wind

$0.77$3,500 220Solar PV

$ per TN CO2 ReduxnInstalled Cost per MW, NETMW RequiredPower Generation Method

Output Required to reduce 1 Million TPY of CO2 as compared to Coal Fired Boiler/STG

Hospital Size: 1,000 bedCHP System Size: 630 kWEmissions Reduction: 3,000 TPY GHG

System Design:

• (1) 0.6 MW GE Jenbacher J312 Natural Gas IC Engines• Heat Recovery for Hot & Chilled Water Production• Design / Construction Complete 4 / 12 months from funding

Financial Transaction:

• PPA: retail offsets• Heat Recovery to offset natural gas purchases

Financial Performance

• $2 Million Installed Cost • $0.5 Million Annual Gross Operating Savings

• 25% IRR• NPV (10%, 15 years): $4 Million

# 1 Application: Hospital CHP

Location: Suburban Multnomah County


Property Size: 20 AcresCHP System Size: 5,600 kWEmissions Reduction: 10,000 TPY GHG

System Design:

• (4) 1.4 MW GE Jenbacher J420 Natural Gas IC Engines• Heat Recovery for Hot & Chilled Water Production• Design / Construction Complete 4 / 16 months from funding


• Build/Own/Operate/Maintain Services provided• 20 year ESCO Agreement • No cash or balance sheet commitment by host • PPA direct to Host Facility


• $9 Million NET Installed Cost• $5 Million Annual Gross Op. Revenue• $3 Million Annual Net Operating Profit• 25% IRR• NPV (10%, 15 years): $13 Million

# 2 Application: Pharmaceutical CHP

Location: Palo Alto, CA


City Size: 200,000CHP System Size: 4,800 kWEmissions Reduction: 20,000 TPY GHG

System Design:

• (2) 2.4 MW GE Jenbacher J616 Natural Gas IC Engines• Design / Construction Complete 4 / 12 months from funding


• Build/Own/Operate/Maintain Services provided• 20 year ESCO Agreement • No cash or balance sheet commitment by municipality• PPA with ML&P at sub 5,000 btu/kW-hr heat rate for Tolling


• $6 Million Installed Cost • $3 Million Annual Gross Operating Revenue• $2 Million Annual Net Operating Profit• 31% IRR• NPV (10%, 15 years): $9 Million

# 3 Application: District CHP

Location: Anchorage, AK


Knik Arm KogenKnik Arm Kogen

#4 Application: WASTEWATER TREATMENT PLANT

Location: Portland, OregonUrban Size: 1,000,000 peopleCHP System Size: 1,700 kWEmissions Reduction: 50,000 TPY GHG

System Design:

• (2) 850 kW GE Jenbacher J316 Filtered Sewage Gas IC Engines• Mandated Digester System• Design / Construction Complete 8 / 18 months from funding • CHP System provides heating to digester tanks


• Project Owned by Municipality along with otherWWTP Infrastructure

• Electricity Savings: Retail Electricity Offset (PGE)• Funded via traditional Municipal Bonding


• $6 Million Installed Cost • $2 Million Annual Gross Operating Revenue• $1.5 Million Annual Net Operating Profit• 26% IRR via 5% Bond Finance• NPV (10%, 15 years): $17 Million


# 5 Application: LANDFILL GAS

Location: Santa Cruz, CAUrban Size: 1/4 Million peopleCHP System Size: 2.8 MW Emissions Reduction: 50,000 TPY GHG

System Design:

• (2) 1, 400 kW GE Jenbacher J420 Filtered Landfill Gas IC Engine

LFG to Energy Financial Performance

• $4 Million NET Installed Cost • $2 Million Annual Gross Utility Sales• $1.5 Million Annual Net Operating Profit• 33% IRR• NPV (10%, 15 years): $7 Million


# 6 Application: FISH PROCESSING WASTE

Location: Dutch Harbor, Alaska


Waste Quantity: 10,000 TPY including NetsCHP System Size: 1.5 MWEmissions Reduction: 150,000 TPY GHG

via offset diesel power generation

System Design:

• (2) 1 MW GE Jenbacher J320 Filtered Syngas IC Engines• Graveson Energy Management Thermal Cracking Gasification Modules


• Build/Own/Operate/Maintain service provided by New York-based Company• 20 year MSW Tipping Fee Arrangement with Borough• No cash commitment by host town• PPA via local utility (City of Unalaska)• Cogeneration Host: Adjacent Fishing Port


• $8 Million NET Installed Cost • $4.5 Million Annual Gross Operating Revenue• $3.5 Million Annual Net Operating Profit• 45% IRR• NPV (10%, 15 years): $22 Million

#7 Application: MSW & TDF Conversion

Location: Fairbanks, AlaskaUrban Size: 100,000 peopleCHP System Size: 9.5 MWFuel Input: 80,000 TPY (200 TPD)Emissions Reduction: 150,000 TPY GHG

System Design:

• (4) 2,388 kW GE Jenbacher J620 Filtered Syngas IC Engines• Graveson Energy Management (GEM) Thermal Cracking Gasification Modules


• Build/Own/Operate/Maintain service provided by New York-based Company(Emerald Power Corporation)

• 20 year MSW Tipping Fee Arrangement with Borough• No cash commitment by host• PPA via local utility (Golden Valley Electric Association)• REC & GHG Credits via Brokerage Agt• Cogeneration Host: Adjacent Wood Products Mill


• $29 Million NET Installed Cost • $8 Million Annual Gross Operating Revenue• $6 Million Annual Net Operating Profit• 22% IRR• NPV (10%, 15 years): $46 Million


#8 Application: Beverage Processing Waste

Location: Southern CaliforniaWastewater Flow: 1.25 MGDCOD: 60,000 lb/dyCHP System Size: 1 MWFuel Input: Brewery WasteEmissions Reduction: 50,000 TPY GHG

System Design:

• (2) 540 kW GE Jenbacher J312 Filtered Syngas IC Engines• UASB Anaerobic Digestion System

High Rate: HRT ~ 12 hours


• Turnkey Service provided by CA-based Company• PPA via local utility (So Cal Edison)• REC & GHG Credits via Brokerage Agt• Cogeneration Host: Brewery Operation


• $8 Million NET Project Installed Cost • $3 Million Annual Gross Operating Revenue/Savings• $2.5 Million Annual Net Operating Profit• 24% IRR• NPV (10%, 15 years): $16 Million


#9 Application: Tire Derived Fuel

Location: Burns, OregonFuel Input: 4 MM Tires/YearPower Plant Size: 10 MWEmissions Reduction: 500,000 TPY GHG

System Design:

• (5) 2.2 MW GE Jenbacher J620 Syngas-Fueled IC Engines


• BOOM Service provided by NY-based Company• PPA via regional utility• Reduced Disposal Costs WHILE Making Energy v. Landfilling• Cogeneration Host: adjacent manufacturing businesses


• $22 Million NET Project Installed Cost • $7 Million Annual Gross Operating Revenue• $6 Million Annual Net Operating Profit• 27% IRR• NPV (10%, 15 years): $38 Million


#10 Application: Urban District CHP

Location: Portland, OregonFuel Input: Natural GasPower Plant Size: 6 MWEmissions Reduction: 60,000 TPY GHG

System Design:

• (2) 3 MW GE Jenbacher J620 IC Engines• with complete Engine Block + Exhaust Heat Recovery for Heating / Cooling


• QF Power Sales to Short & Constrained Utility• REC & GHG Credits via Brokerage Agt• Cogeneration Host: Urban Tenants (Industrial, Commercial, Residential)


• $7 Million NET Project Installed Cost • $2 Million Annual Gross Operating Revenue/Savings• $1.5Million Annual Net Operating Profit• 17% IRR• NPV (10%, 15 years): $11 Million


#11 Application: Biomass Gasification

Location: Rural AlaskaFuel Input: 15 TPD woody biomassPower Plant Size: 500 kWEmissions Reduction: 25,000 TPY GHG

diesel power generation offsets

System Design:

• 500kW GE Jenbacher J316 IC Engine for Woodgas Operation• with gas filtration and contaminant knockout controls•Proven European biomass gasification technology

Biomass Engineering, Ltd. (UK) with over 17 operating plants


• Offset Power Purchases from Diesel Driven Power Plants• REC & GHG Credits via Brokerage Agt• Cogeneration Host: District Heating• Jobs and Revenues from Biomass Collection and Plant Operations

STAY LOCAL in RURAL ALASKA


• $3.5 Million NET Project Installed Cost post State Grant • $2.5 Million Annual Gross Operating Revenue/Savings• $2 Million Annual Net Operating Profit• 38% IRR• NPV (10%, 15 years): $9 Million




• $7 Million NET Installed Cost• $3.25 Million Annual Gross Op. Revenue• $2.5 Million Annual Net Operating Profit• 27% IRR• NPV (10%, 15 years): $13 Million

# 12 Application: Resort CHP

Location: Northern California

Resort Size: 85 AcresCHP System Size: 2,800 kWEmissions Reduction: 5,000 TPY GHG

System Design:

• (2) 1.4 MW GE Jenbacher J420 Natural Gas IC Engines• Heat Recovery for Hot Water Production• Design / Construction Complete 4 / 12 months from funding


• Build/Own/Operate/Maintain Services provided• 20 year ESCO Agreement • No cash or balance sheet commitment by host • PPA direct to Host Facility


Dairy Size: 2,500 Head (Holstein Cows)CHP System Size: 1 MWDigester Capacity: 75,000 gpdImported Organic Waste: 15,000 gpd (regional substrates)Emissions Reduction: 25,000 TPY GHG

System Design:

• (1) 1 MW GE Jenbacher J320 Filtered Biogas IC Engines• Washington Manure Processing + German Digester• Fiber Processing by ORGANIX FibeRiteFibeRite (w/ PolyFlex / AgBag)

to exceed OR & CA “In Vessel” System Requirements• Design / Construction Complete 4 / 9 months from funding


• Build/Own/Operate/Maintain Services provided• 20 year Animal Waste & Land Lease Agreement • No cash or balance sheet commitment by host dairy• Fiber Sales under Long Term Agreement with ORGANIX• PPA via FERC QF with PGE• REC & GHG Credits via Brokerage Agt• State DoE Business Energy Tax Credit Pass-Thru Cash Rebate


• $3.5 Million NET Installed Cost (post BETC)• $2 Million Annual Gross Operating Revenue• $1.5 Million Annual Net Operating Profit• 31% IRR• NPV (10%, 15 years): $9 Million

# 13 Application: DAIRY

Location: Willamette Valley


# 14 Application: LANDFILL GAS (HYBRID)

Location: LA BasinUrban Size: 7 Million peopleCNG System Size: 5,000 GPD for Public TransitCHP System Size: 1 MW for parasitic energy loadsFuel Input: 3 Million TPY (8,500 TPD)Emissions Reduction: 50,000 TPY GHG (CHP System Offset)

System Design:

• (1) 1,060 kW GE Jenbacher J320 Filtered Landfill Gas IC Engine• Provides Parasitic Electrical & Thermal Energy to on-site CNG Processing Facility

CHP Financial Performance

• $2 Million NET Installed Cost • $800 Thousand Annual Gross Utility Savings• $700 Thousand Annual Net Operating Profit• 33% IRR• NPV (10%, 15 years): $6 Million

- Thank You for Your Attention –Power Generation using GE Jenbacher Engines Represents the Future ofIndustrial & Socially Responsible Energy Solutions for the Whole World


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