Gavin Dillingham USGBC Energy Summit October 7, 2014 US Energy - PowerPoint PPT Presentation

Gavin Dillingham USGBC Energy Summit October 7, 2014

US Energy Consumption - 2002

US Energy Consumption - 2013

Change in Energy Use and Intensity Greentech Media - 2013

What is a Fuel Cell? A fuel cell is an electrochemical device that combines hydrogen and oxygen to produce electricity, with water and useful heat as its by-products.

Fuel Cell Benefits • • Fuel flexible - operation on Lightweight conventional or renewable fuels • Rugged • High quality, reliable power • Can be used with or instead of • Exceptionally low/zero emissions batteries and diesel generators • • Modularity/scalability/flexible Can partner with solar, wind, and installation other renewable technologies • • Can operate independent of the Increased productivity grid • Cost savings via high electrical • Extremely quiet and overall efficiency

Fuel Cell Market • Estimates that there is at least 170 MW of fuel cells now installed in the U.S.; more than 76 MW since 2012 • Primarily providing primary or backup power to facilities • Almost 5,000 fuel cell- powered material handling vehicles 8

Deployment of Fuel Cells • Data Centers • Large-scale systems for prime power, backup power • Commercial buildings or combined heat and • Retail stores power, • Small systems for micro • Multi-family combined heat and power residential for residential or • Telecom commercial operations • Grid Power • Prime and backup systems for remote or essential • Material Handling applications such as telecommunications towers

Cost Competitiveness • $0.13 to $0.15 per kWh without subsidies or incentives • Eligible for the Federal Investment Tax Credit (ITC) which provides a 30 percent tax credit or $3,000/kW on a fuel cell system installed before 2017. • A credit of 10 percent is available for CHP systems. • Large stationary fuel cell power can be cost competitive in states with high electricity prices – Alaska – California – Connecticut – Hawaii – Massachusetts – New Hampshire – New Jersey – Vermont

Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)  Simultaneous generation of heat and electricity  Fuel is combusted/burned for the purpose of generating heat and Electricity electricity Conventional CHP System  Normally sized for thermal load to Fuel max. efficiency – 70% to 80% Heat Min. eff. = 60%  Minimum efficiency of 60% Typical eff. 70% - 80% normally required  Normally non export of electricity  Low emissions – natural gas

Defining De ining Com ombi bine ned d Heat eat & Power er (CHP) P) The o on-sit site simul ulta taneo neous generati ation on of two forms s of energy (heat and electric tricity) fro rom a singl ngle fuel/energ nergy source Waste Heat Recovery CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP)  Fuel first applied to produce useful thermal energy for the process Electricity Steam Turbine  Waste heat is utilized to produce Heat electricity and possibly additional thermal energy for the process  Simultaneous generation of heat and electricity Heat recovery steam boiler  No additional fossil fuel combustion (no incremental emissions) Waste heat from the  Normally produces larger amounts industrial process electric generation (often exports Energy electricity to the grid; base load electric Intensive Fuel power) Industrial Process  Required high temperature (> 800°F) Heat produced for the (low hanging fruit in industrial plants) industrial process

Benefits of CHP CHP is an important energy resource that provides: Benefits for U.S. Industry • Reduces energy costs for the user • Reduces risk of electric grid disruptions • Provides stability in the face of uncertain electricity prices

Markets – Industrial 25 to 100+ MW Petrochemical Natural Gas Processing Fabricated Metals Chemical Manufacturing Rubber and Plastic Refining Pulp and Paper Port Arthur Steam Energy (Port Arthur, TX) Waste Heat to Power - Oxbow Corporation – petroleum coke production 60 MW CHP Plant • 5 MW – Electricity • 55 MW – Equivalent Steam 3 Heat Recovery Steam Generators • 2.5 mile steam pipeline • 400,000 lb/hr steam export Annual Reductions • 5 trillion BTUs energy • 280,000 tons CO2; 200 tons NOx

Port Arthur Steam Energy

Markets – Institutional 5 to 75 MW Universities Hospitals Wastewater Treatment Emergency Management Facilities Homeland Security Prisons Methodist Hospital (Houston, TX) Rooftop 4.5 MW CHP • One combustion turbine (Centaur 50S Solar Turbine) w/ Heat Recovery Steam Generator • Supplementary duct burner • Steam driven chiller – 2,800 ton • 50,000 lbs/hr of steam production Emissions • 70% NOx reduction

Markets – Commercial 1 to 10 MW Hotels/Casinos Airports Data Centers Grocery Stores Refrigerated Warehouses Office Buildings BP Helios Plaza data center (Houston, TX) • 4.3 MW CHP Plant • Mercury 50 Gas Turbine • Heat Recovery Steam Generator • 1,350 ton absorption chiller • Back-up - 4,000 ton-hr thermal energy storage and centrifugal chiller • Dual electrical feeds • Base load from Gas Turbine and 100 kW from utility • LEED Platinum

Critical Infrastructure CASE STUDY: Mississippi Baptist Medical Center (Jackson, MS) 624 bed urban hospital, 3000 employees  3.2 MW gas turbine CHP system –  installed 1994 Steam used for hot water, sterilization  and absorption chillers Grid down for 52 hours starting August  29, 2005 due to Katrina CHP system ran islanded and provided  power, hot water and air conditioning 19

Where here Are re We e Toda day? y? • 82 GW of installed CHP at 3,842 industrial and commercial facilities (2011) • 87% of capacity in industrial applications • 71% of capacity is natural gas fired • Avoids more than 1.8 quadrillion Btus of fuel consumption annually • Avoids 241 million metric tons of CO 2 compared to separate production Source: CHP Installation Database

CHP Additions 2006-2011 (3,442 MW) CHP Capacity by Fuel

Natural Gas Additions by Application (1,709 MW) Source: ICF International

Restraints and Opportunities

Natural Gas Trends Gas Prices at Henry Hub (2010$/MMBtu) • Henry Hub natural gas prices are projected to average between $4 and $7 per MMBtu throughout much of the projection. • Robust growth in gas demand will eventually apply upward pressure on gas prices. • $5 to $7 gas prices are sufficient to support the levels of supply development in the projection, but not so high as to discourage market growth. Source: ICF Estimates, 2012

Regulatory and Policy Activities Incentives : • PUC Administered Energy Efficiency Incentive Program – Utility Programs – systems up to 10 MW • RPS – biomass systems Legislation : • Permit by Rule – HB 3268 • Critical Infrastructure – HB 1831, HB 4409, HB 1864 • Power Export – HB 2049 • PACE – SB 385 27

Federal Activity 111(d) 111(b) NAAQS

Outlook for CHP • CHP appears to be poised for new growth – Benefits recognized by policy makers – many states promoting CHP – Favorable outlook for natural gas supply in North America enhances economics – Opportunities created by environmental pressures on the power sector and industrial/institutional users • Market Uncertainties – Easing of environmental drivers? – Restrictions on hydraulic fracturing? – Utility attitudes changing?

Annual CHP Installations Since 2000, With Projected Future Installations based on Announced Projects

CHP Onsite Technical Potential Market <1,000 MW 1,000 – 1,999 MW 2,000 – 4,999 MW >5,000 MW Source: ICF internal estimates

Installed vs. Technical Potential

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