Cost-Competitive CO 2 Mitigation with Combined Heat and Power in - - PowerPoint PPT Presentation

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Cost-Competitive CO 2 Mitigation with Combined Heat and Power in - - PowerPoint PPT Presentation

Nov 25, 2023 125 likes •300 views

Cost-Competitive CO 2 Mitigation with Combined Heat and Power in Calgary Motivation: Calgary must reduce GHG emissions 25000 Calgarys Future Greenhouse Gas Emissions Projected GHG Emissions, kt CO 2 e 20000 Targeted 15000 10000 5000

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Cost-Competitive CO2 Mitigation with Combined Heat and Power in Calgary

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SLIDE 2

Motivation: Calgary must reduce GHG emissions…

Source: Canadian Urban Institute 5000 10000 15000 20000 25000 2005 2010 2015 2020 2025 2030 2035 2040

GHG Emissions, kt CO2e

Calgary’s Future Greenhouse Gas Emissions

Projected Targeted

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SLIDE 3

McKinsey Estimate Canadian Urban Institute Estimate

  • 100
  • 50

50 100 150 200 250 300

Abatement Cost [$/tCO2e]

CHP Abatement Cost Estimates

$280

  • $45

… but abatement costs are unclear

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SLIDE 4

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Calgary Hyatt Regency

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SLIDE 5

Business-as-Usual (BAU)

CO2

Heat Heat

Coal Power Plant Natural Gas electricity

CO2

Calgary Hyatt

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SLIDE 6

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Combined Heat and Power (CHP)

CO2

Natural Gas

CHP Plant electricity

Heat

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SLIDE 7

Research Questions

  • What is the feasibility of using CHP to achieve

Calgary’s GHG emissions targets?

  • What are the conditions under which CHP is an

attractive option for abating CO2 emissions?

  • Existing literature: Maribu and Fleten (2008), Energy Journal;

Lemar (2001), Energy Policy; Jaccard (2004)

  • Key conditions: Greenfield vs. Retrofit Zones;

Low vs. High Natural Gas Price; Timing

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SLIDE 8

10 MW Electricity from AB Grid

Natural Gas Consumer End Use Boiler Natural Gas 10 MW CHP Consumer End Use

electricity heat

CHP Case BAU Case

Mostly Coal

electricity heat

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SLIDE 9

CHP

Site-Specific Costs: Low-Density Zone

Length= Feeder Lines + Tie-In Lines

High Cost

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SLIDE 10

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Site-Specific Costs: High-Density Zone

CHP

Low Cost

Length= Feeder Lines + Tie-In Lines

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SLIDE 11

Summary of Results

Parameter Change Abatement Cost Impact CHP Capacity Negli Impact CHP Location Residential Density Grid Emissions Factor Natural Gas Price Cost of Electricity Greenfield

Commercial Centre Greenfield Development

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Abatement Cost vs. Location

$280 $1470

  • $46
  • 200
  • 100

100 200 300 400 500 600 Abatement Cost ($/tCO2e)

Commercial Centre Existing Residential Greenfield Residential

1600 1500 1400

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SLIDE 13

Sensitivity = +/- 2 Standard Deviations in NG Price

Abatement Cost vs. Location

$280 $ 1470

  • $46
  • 200
  • 100

100 200 300 400 500 600 Abatement Cost ($/tCO2e) 1600 1500 1400

Commercial Centre Existing Residential Greenfield Residential

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Lifetime Scenario: Residential Greenfield

  • 100
  • 50

50 100 150 200 2010 2015 2020 2025 2030 2035 2040

Annual Abatement Cost ($/tonne CO2e)

"Growth Rates" Scenario "Fuel Switch" Scenario

Saves Money – No Incentive Needed Costs Money – Incentive Needed

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5000 10000 15000 20000 25000 2000 2010 2020 2030 2040 Feasible CHP

Conclusions

  • CHP can help Calgary achieve GHG reduction targets

– 1 large CHP system (100 MW) results in 2% GHG reduction

  • Discussions with ENMAX

indicate 15% GHG reduction is feasible

  • Abatement cost most dependent on location
  • Currently attractive for

greenfield locations…

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SLIDE 16

Acknowledgments

  • Dr. Janne Kettunen, University of Calgary, for

supervising our project class

  • Drs. Michal Moore, David Keith, Joule Bergerson,

and Robert Page, University of Calgary, for their advice

  • Gary Czaikowski and David Williams, ENMAX

Utility

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SLIDE 17

Contact Information

  • Nicolas Choquette-Levy *

nechoque@ucalgary.ca

  • Geoff Holmes

gholmes@ucalgary.ca

  • Rahul Nakhasi

rnakhasi@ucalgary.ca

  • Marc Beaudin

mdbeaudi@ucalgary.ca Phone: Energy & Environmental Systems Group - (403) 220-8872

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