Elec. Pwr Conf. DF-CHP 4-20-2016SJ FINAL
- 1. April 20, 2016 | 1 Duct Fired Combined Heat & Power (DF-CHP): profitably produce steam Resourcing the world www.veolia.com Suresh Jambunathan, Director of Business Development, Veolia North America Cell: 630-335-4544 E-mail: Suresh.Jambunathan@veolia.com April 20th, 2016 Location: Ernst Morial Convention Center New Orleans, LA
- 2. April 20, 2016 | 2 Learning Outcomes Efficiency & flexibility hedges against price & load volatility; being green is not a conflict between your wallet and your conscience. Plan carefully for utilities when contemplating process plant expansion or new build Duct Fired Gas Turbine Combined Heat & Power (DF-CHP) is a financially attractive, technically feasible and sustainable alternative to package boilers to an industrial site’s power & steam needs. A Duct Fired Combined Heat & Power (DF-CHP) system is a steam boiler that can profitably generate power
- 3. April 20, 2016 | 3 Veolia: Resourcing the world www.veolia.com • Celebrating 160+ years and today we operate on every continent except Antarctica • Revenue:$30 • Employees: 175,000 • 3-core businesses • Energy Services • Water Management • Waste Management
- 4. April 20, 2016 | 4 Veolia: the leader in North America www.veolianorthamerica.com
- 5. April 20, 2016 | 5 Selected headlines: US manufacturing may be rebounding.
- 6. April 20, 2016 | 6 “Trendy” processes hog headlines, but “dowdy” utilities are essential UTILITIES: the flip side of a process • Power • Thermal Energy delivered as steam hot water thermal oil refrigerant • Compressed air • Lighting • Insulation • Water – surface & sub-surface • Wastewater treatment: anaerobic & aerobic ACME Chemical Co: Boss: We’re investing $$$$$$$ to build process XYZ Assistant: What about utilities? Boss: Utilities?......... Just get it done Assistant to Plant Manager: Get it done Plant Manager: Picks a package boiler from the “Bigger & Better Boiler” company Pays ungodly $$ to electric utility to upgrade electrical substation Rule of Thumb: $$$Utilities = 10% to 40% of $$$Process
- 7. April 20, 2016 | 7 Combined Heat & Power (CHP) at University of Massachusetts, Amherst, MA. Efficiency >80% Traditional central power generation. Efficiency ~35%.... burning money up the stack Uscommunityenergyguidehi.pdf community energy: planning, development and delivery, IDFA pub. Michael king 2012 Energy efficiency vs. waste… the energy recycling advantage
- 8. April 20, 2016 | 8 Key utilities (power & steam): Two choices… one is arguably better Package boiler Nameplate rating: 125 Kpph 150 psig ή ~83% LHV FSF~ 1,360 Btu/lb Natural gas 136 MMBtu/Hr Steam @ 100 psig Process steam load Gas Turbine HR: 12.2 MMBtu/MWh Steam 700 psig / 700F Nat. Gas to GT 50 MMBtu/Hr HRSG* Nameplate 125 Kpph 750 psig 750 F STG rating 4 MW 100 psig, 100 Kpph Process steam load ST power, 3.7 MW GT power 4.0 MW stack gas Nat. gas to Duct Fire 98 MMBtu/Hr stack gas Deaerator 60% condensate @ 180F 40% makeup @ 60F BFW @ 5 psig / 225F 100 Kpph Blow-down. Deaerator Blow-down. 60% condensate @ 180F 40% makeup @ 60F Package boiler system: Safe ……… but unimaginative Steam: from boiler Power: from grid Duct Fired Combined Heat & Power (DF-CHP): Safe & imaginative plus profitable Steam: from CHP Power: from CHP (grid provides back-up) STG: Steam Turbine Generator; HRSG: Heat Recovery Steam Generator; FSF: Fuel to Steam Factor A Duct Fired Combined Heat & Power (DF-CHP) system is a steam boiler that can profitably generate power
- 9. April 20, 2016 | 9 Key utilities (power & steam): Ultra-efficient DF-CHP gains over plain boiler Design point results (100 Kpph / 100 psig) Package boiler system Duct fired CHP system Difference Fuel required MMBtu/Hr, LHV 136 148 12 Net onsite power, MW n/a 7.7 7.7 Fuel-to-Steam Factor (FSF), MMBtu/Klb 1.36 1.46 0.10 CHP Heat Rate, LHV MMBtu/MWh n/a 4.5 4.5 *Net operational cost of steam, $/Klb $7.3 $4.9 ($2.4) Fuel cost of power, $/MWh n/a $22.3 $22.3 *DF-CHP: ultra-efficient power for just 1.5 MMBtu/MWh Package boiler Nameplate rating: 125 Kpph 150 psig ή ~83% LHV FSF~ 1,360 Btu/lb Natural gas 136 MMBtu/Hr Steam @ 100 psig Process steam load Gas Turbine HR: 12.2 MMBtu/MWh Steam 700 psig / 700F Nat. Gas to GT 50 MMBtu/Hr HRSG* Nameplate 125 Kpph 750 psig 750 F STG rating 4 MW 100 psig, 100 Kpph Process steam load ST power, 3.7 MW GT power 4.0 MW stack gas Nat. gas to Duct Fire 98 MMBtu/Hr stack gas Deaerator 60% condensate @ 180F 40% makeup @ 60F BFW @ 5 psig / 225F 100 Kpph Blow-down. Deaerator Blow-down. 60% condensate @ 180F 40% makeup @ 60F * Net OpEx cost of steam reflects fuel cost, credit from onsite power and O&M costs of both systems *Compared to DF-CHP, fuel-to-power efficiency (MMBtu/MWh) of Combined Cycle system ~ 7.0 Simple Cycle power system ~ 10.0
- 10. April 20, 2016 | 10 Package boiler efficiency varies with load; sizing & optimal design point? 40% load Efficiency: 73% 100% load Efficiency: 83%
- 11. April 20, 2016 | 11 DF-CHP is a better alternative: Duct fire to efficiently & rapidly follow load
- 12. April 20, 2016 | 12 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 40 50 60 70 80 90 100 GT-CHPSteam-to-PowerFactor,SPF(Klb/MW) Efficiency,% Process steam load, Kpph High duct firing CHP efficiency consistently exceeds boiler efficiency, % Boiler efficiency, % GT CHP efficiency, % GT-CHP Steam:Power Factor, SPF (Klb/MW) ήDF-CHP > ήboiler across the load curve. CHP Steam-to-Power Factor tracks load
- 13. April 20, 2016 | 13 Higher marginal efficiency of duct firing converges fuel burned per lb steam 60 70 80 90 100 110 120 130 140 150 1.3 1.4 1.5 1.6 1.7 1.8 1.9 40 50 60 70 80 90 100 TotalFuelburned,MMBtu/Hr,LHV Fuel-to-SteamFactor,FSF,MMBtu/Klb Process steam load, Kpph High duct firing converges Fuel-to-Steam factor (MMBtu/Klb) for boiler and DF-CHP systems Boiler FSF MMBtu/Klb GT CHP FSF, MMBtu/Klb Boiler Fuel, MMBtu/hr GT-CHP fuel, MMBtu/Hr
- 14. April 20, 2016 | 14 What about economics? simplified assumptions Process operations: 8,322 hrs/year Process steam load: 40 to 100 Kpph @ 100 psig Delivered natural gas: $3/MMBtu, HHV Delivered grid power: 6.5 ¢/KWh ($65/MWh) Full load package boiler efficiency : 83% LHV Gas Turbine heat rate (4.2 MW Centaur 50): 12,200 Btu/KWh, LHV Feedwater to DeAerator 100F Operations & Maintenance costs: GT: $10/MWh Package boiler: 35 to 40 ¢/Klb HRSG: 35 to 40 ¢/Klb
- 15. April 20, 2016 | 3 Veolia: Resourcing the world www.veolia.com • Celebrating 160+ years and today we operate on every continent except Antarctica • Revenue:$30 • Employees: 175,000 • 3-core businesses • Energy Services • Water Management • Waste Management
- 16. April 20, 2016 | 16 $0 $10 $20 $30 $40 $50 $60 $70 $80 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 DisplacedGridpower,$/MWh Delivered cost of gas, $/MMBtu, HHV Operational NET ZERO for low (40 Kpph) & high (100 Kpph) steam load 100 Kpph 40 Kpph Package boiler operationally profitable below the line DF-CHP operationally profitable above the line Operational NET ZERO: What is your grid power and gas price?
- 17. April 20, 2016 | 17 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 $6.5 $7.0 Incrementalpayback,years Incremental investment, $MM Incremental Investment & Payback: "steaming savings" 100 Kpph 40 Kpph Short payback on incremental investment over package boiler systems
- 18. April 20, 2016 | 18 Other DF-CHP benefits compared to standard package boilers Benefit to Grid Local grid stability including power factor support and reduced I2R line loss Balance variable power from wind and solar, thus speed renewable energy deployment Defer or avoid investment in Remote central generation plants Transmission & Distribution infrastructure Benefit to the thermal host Reduced cost of steam and increased steam supply reliability More reliable power supply Benefit to society Reduced pollution and lower greenhouse gas emissions Efficiency equals “free fuel” http://www.greentechmedia.com/articles/read/3-ways- superstorm-sandy-could-change-utilities-forever The CHP advantage: Lower Manhattan after super-storm Sandy
- 19. April 20, 2016 | 19 Tailwinds and…. headwinds facing natural gas duct fired CHP TAILWINDS HEADWINDS Tried & true technology CHP increasingly recognized as a proven technology Inertia and unfamiliarity Compared to CHP, boilers viewed as “tried and true” 10% Investment Tax Credit (ITC) Reduces Project Capex; improves Return on Investment (ROI) Energy Policy Act, 2005 Hurts ability of regulated utilities to secure certain cost recovery for long-term Power Purchase Agreements (PPA) with CHP plants. Makes CHP plant financing difficult Accelerated depreciation Juices Return on Equity (ROE) Air permit MACT pollution control regulations allow retaining current air permit. CHP reduces pollution, yet requires a new permit Increasing recognition of redundancy, resiliency & reliability Standby & exit charges Imposed by some utilities before allowing CHP systems to interconnect with the grid. Upfront investment Greater upfront CapEx required.
- 20. April 20, 2016 | 20 Project development: common sense and diligence 1. Set objectives & gather data 2. Conceptualize alternate configurations: Technical & economic appraisal 3. Project development Technical: Configuration, engineering, procurement, construction Legal: Structure of contracting entities (LLC, S or C Corp etc…) Commercial: Contracts for fuel, power, O&M, grants & incentives Environmental: Permits Financial: Financial models, equity & debt Risks & Mitigants: Project Execution Plan (PEP) Veolia can optimize your process operations & investment decisions by optimizing utilities management from concept (FEL1) to completion (FEL5).
- 21. April 20, 2016 | 21 Questions? Suresh Jambunathan, Director of Business Development, Veolia North America Cell: 630-335-4544 E-mail: Suresh.Jambunathan@veolia.com April 20th, 2016 Location: Ernst Morial Convention Center New Orleans, LA
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