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

Greentech Media - 2013

Change in Energy Use and Intensity

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

conventional or renewable fuels

• High quality, reliable power
• Exceptionally low/zero emissions
• Modularity/scalability/flexible

installation

• Can operate independent of the

grid

• Extremely quiet
• Lightweight
• Rugged
• Can be used with or instead of

batteries and diesel generators

• Can partner with solar, wind, and
• ther renewable technologies
• Increased productivity
• Cost savings via high electrical

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
• r backup power to facilities
• Almost 5,000 fuel cell-

powered material handling vehicles

8

Deployment of Fuel Cells

• Data Centers
• Commercial buildings
• Retail stores
• Multi-family

residential

• Telecom
• Grid Power
• Material Handling
• Large-scale systems for

prime power, backup power

• r combined heat and

power,

• Small systems for micro

combined heat and power for residential or commercial operations

• Prime and backup systems

for remote or essential 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

Fuel Electricity Heat

Conventional CHP System

Conventional CHP

(also referred to as Topping Cycle CHP or Direct Fired CHP)

• Min. eff. = 60%

Typical eff. 70% - 80%

• Simultaneous generation of heat

and electricity

• Fuel is combusted/burned for the

purpose of generating heat and electricity

• Normally sized for thermal load to
• max. efficiency – 70% to 80%
• Minimum efficiency of 60%

normally required

• Normally non export of electricity
• Low emissions – natural gas

Waste Heat Recovery CHP

(also referred to as Bottoming Cycle CHP or Indirect Fired CHP)

Fuel Electricity

Energy Intensive Industrial Process

Heat produced for the industrial process Waste heat from the industrial process Heat Steam Turbine Heat recovery steam boiler

• Fuel first applied to produce useful

thermal energy for the process

• Waste heat is utilized to produce

electricity and possibly additional thermal energy for the process

• Simultaneous generation of heat and

electricity

• No additional fossil fuel combustion (no

incremental emissions)

• Normally produces larger amounts

electric generation (often exports electricity to the grid; base load electric power)

• Required high temperature (> 800°F)

(low hanging fruit in industrial plants)

De Defining ining Com

• mbi

bine ned d Heat eat & Power er (CHP) P)

The o

• n-sit

site simul ulta taneo neous generati ation

• n of two forms

s of energy (heat and electric tricity) fro rom a singl ngle fuel/energ nergy source

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

Benefits of CHP

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) 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

Waste Heat to Power - Oxbow Corporation – petroleum coke production

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



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

CASE STUDY: Mississippi Baptist Medical Center (Jackson, MS)

Critical Infrastructure

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Where here Are re We e Toda day? y?

Source: CHP Installation Database

• 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

CO2 compared to separate production

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

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

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Regulatory and Policy Activities

Federal Activity

111(d) NAAQS 111(b)

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

<1,000 MW 1,000 – 1,999 MW 2,000 – 4,999 MW >5,000 MW

CHP Onsite Technical Potential Market

Source: ICF internal estimates

Installed vs. Technical Potential

(härk), n. an independent research hub helping people thrive and nature flourish.