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Tampa Convention Center Tampa, Florida Should You Decentralize Your Steam Plant? Track 11, Session 4 -- Campus Utility Distribution Systems David F. Shutler, MBA, JD CEO of Utility Systems Solutions, Inc. August 16, 2017

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Tampa Convention Center • Tampa, Florida

Should You Decentralize Your Steam Plant?

Track 11, Session 4 -- Campus Utility Distribution Systems

David F. Shutler, MBA, JDCEO of Utility Systems Solutions, Inc.

August 16, 2017

Energy Exchange: Connect • Collaborate • Conserve

There is currently a movement to decentralize and convert steam boiler systems into hot water systems• Rationale: End line losses in the steam distribution systems

But the cost of converting to hot water is substantial, with long ROI paybacks and facility-wide disruption• And the same BTUs will be needed at the end point

Consider, steam distribution efficiency could be re-established with well-trapped and insulated steam distribution lines• So consider solving core problem of failed traps and insulation

And, consider balancing the cost of decentralization with the cost to convert the plant to CHP to keep an energy resilient asset • Making use of the distribution efficiencies

BLUF: Converting the boiler plant to a combined heat and power plant could preserve an energy resilient asset

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Decentralize plant vs steam system optimization

Energy Exchange: Connect • Collaborate • Conserve3

Decentralization vs. Resilience

DoD Dictionary of Military Terms defines resilience as:

— “The ability of an architecture to support the functions necessary for mission success with higher probability, shorter periods of reduced capability, and across a wider range of scenarios, conditions, and threats, in spite of hostile action or adverse conditions.” (DODD 3100.10)

An emerging thought is that power generation assets such as steam boiler plants should be maintained to provide resilient recovery to attack on our power grid.

Energy Exchange: Connect • Collaborate • Conserve

And DODI 4171.11, Installation Energy states that the goal of energy resilience is to: • “Ensure that the DoD has the ability to

prepare for and recover from energy disruptions that impact mission assurance on military installations.”

• “Further, energy resilience encourages the necessary planning and capabilities to ensure available, reliable, and quality power to continuously accomplish DoD missions.”

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More Specifically: Resilience defined

Energy Exchange: Connect • Collaborate • Conserve

• Available– It is already on site, no access issues– Disruptions to the power are addressed internally

• Reliable– Long records of performance on site– Internal maintenance can be controlled

• Quality – Performance is known and can be upgraded– Quality is built into the equipment

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Main Steam Boiler Plants Provide Power:

Energy Exchange: Connect • Collaborate • Conserve

• Owning the main steam plant ensures control– And ability to protect the asset for resilience

• Controlling the plant requires maintenance– And updating the distribution system– New sensor and insulation technology is available

• And converting to CHP benefits the facility– Diversifying energy supply– Reducing energy costs and pollution emissions– Improving energy security

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Main Steam Boiler Plant considerations:

Energy Exchange: Connect • Collaborate • Conserve

Army Policy: Double CHP energy production on installations within two years

Rationale:CHP reduces energy costs and air pollutionCHP diversifies energy supplyCHP improves energy security

https://www.army.mil/e2/c/downloads/457144.pdf

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Army CHP Policy Memorandum

Energy Exchange: Connect • Collaborate • Conserve

Project Total Cost• Tinker AFB (2012) $91M

– Close 3 central steam plants, install gas fired boilers

• Naval Station Great Lakes, IL (2012) $57M– Convert facilities from central steam to building level

• Kirtland AFB (2007) $30M– Decentralize steam to 134 new hot water boilers

• Fort Belvoir (2014) $4.0M – Decentralize Steam with Boilers

• Portsmouth Naval Shipyard (2015) $3.4M– Steam Decentralization Phase 1

• Compare cost to upgrade distribution $1-2M8

Consider the Costs of Steam Decentralization

Energy Exchange: Connect • Collaborate • Conserve9

Misawa Case Study

Energy Exchange: Connect • Collaborate • Conserve10

Misawa Case Study

Energy Exchange: Connect • Collaborate • Conserve

An end user can improve distribution systems by:• Closing the external leaks in the distribution lines• Insulating pipes, valves and flanges with removable covers• Insulating steam lines with Calsil, fiberglass, or aerogel

Steam Trap monitoring systems can be installed to:• Identify internal “blow thru” leaks (false demand for steam)• This type trap failure costs money and reduces efficiency• Couple monitoring with Service Agreements to fix quickly

Combining insulation upgrades and trap monitoring• Can improve condensate recovery from 50% to 85%• Greatly reduces the false demand on boilers• Reduces greenhouse gas emissions

The cost ranges from $500K-$1M to upgrade trap systems • About $500K to upgrade insulation• With a 3-5 year ROI

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Steps to upgrade steam distribution systems

Energy Exchange: Connect • Collaborate • Conserve

• Distribution systems can be revitalized – To attain efficient condensate recovery – With insulation and trap monitoring

• In conversion decisions, consider steam boilers– The cost of decentralizing the steam plant vs.– Converting to CHP and keeping resilient asset

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Conclusion

Dave Shutler, President Utility Systems Solutions, Inc.14330 Midway Road, Suite 200Dallas, TX 75244-3501 Phone [email protected]