The Future of Green Energy Technologies for Municipalities ... · The Future of Green Energy...

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The Future of Green Energy Technologies for Municipalities

Fuel Cells, Solar, Wind & Algae

Tom Mossinger – Carollo Engineers

2010 PNCWA Annual ConferenceOctober 25, 2010Bend, Oregon

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Presentation Outline

•• The future of renewable energy for The future of renewable energy for municipalities municipalities –– 30,000 ft overview30,000 ft overview

–– Traditional TechnologiesTraditional Technologies–– Fuel cellsFuel cells–– SolarSolar–– WindWind–– AlgaeAlgae

•• Incentives to help with Incentives to help with implementationimplementation

•• Questions/answersQuestions/answers

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Why is renewable energy so important?• Water & wastewater services account for 30-

50% of municipal energy use.

• Equivalent to 3-4% of the nation’s total energy use.

• Nearly 20% of electricity usage is associated with moving water

• 25 to 30% of the cost for water and wastewater systems operations is for power.

As primary consumers of electricity, water & wastewater organizations have the opportunity to dramatically affect overall energy consumption.

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Drivers for Implementation

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What Are The Emerging Technologies?

• Photosynthetic process enhancement (algae culturing/digestion)

• Alternate solar power generation equipment

• Cell lysis – pulsed electricity, mechanical destruction, temp/press control, ultrasonic

• New cogeneration technologies

• Biogas supply/wholesaling

• Renewable motor vehicle fueling

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Cogeneration Technologies

• Reciprocating Engines (60 to >2,000 kW)

• Micro Turbines (30 to 1,000 kW)

• Gas Turbines (>3,000 kW)

• Fuel Cells (300 to 2,800 kW)

15-MW Cooper Bessemer Digester Gas Fueled Cogeneration System,Orange County Sanitation District, CA

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Traditional Digester Gas Power Generation

Technology

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Reciprocating Engines • Proven technology for using digester

gas

• Electrical Output Efficiency = 30-35%

• Proven technology for over 40 years

• Strict (and getting stricter) air permit regulations

• Regulations moving towards oxidation catalysts, SCR and CEMS

• Installations now require extensive fuel conditioning to remove contaminants – no longer optional

2.35-MW Enterprise Digester Gas Fueled Cogeneration System,East Bay Municipal Utilities District, CA

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Micro Turbines

• Easy to permit (low emissions)• Only two manufacturer’s with DG

experience (limited)• Lower efficiency than engines;

approximately 25% • Requires >50 psi fuel pressure

250-kW Ingersoll-Rand Landfill Gas Fueled Cogeneration System, Lancaster, CA

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Gas Turbines

• Strict air permit regulations• Limited manufacturer’s with experience on DG• Effective fuel conditioning is required• Competitive only for

larger installations; greater than 3MW• Efficiency typically 25-35%• Requires >200 psi

fuel pressure

8-MW Solar Turbines Digester Gas Fueled Cogeneration System, King County DNR, Renton, WA

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Fuel Cell Power Generation

Technology

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What is a Fuel Cell?• Electrochemical Device Similar to a Battery

– Except Fuel Cells Use an External Supply of Reactants

• Hydrogen Fuel (Methane) and Oxygen (Air) In

• Electricity and Water (Exhaust) Out

H2

O2

Fuel CellH2 O

Electricity

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Fuel Cell Types

Type ElectrolyteOperating Temp. °F

Single-Cycle Electrical

Efficiency %Expected

Capacity RangeBy-Product

Heat Use

PEM Polymer Membrane 180 30-35 5 kW to 250 kW Warm Water

Alkaline Potassium Hydroxide 200 <40 3 to 5 kW Warm Water

Phosphoric Acid Phosphoric Acid 400 35-40 50 kW to 200 kW Hot Water

Molten Carbonate

Potassium/ Lithium

Carbonate1200 45-57 300 kW to 2.4 MW

Hot Water or High Pressure

Steam

Solid Oxide (Tubular)

Stabilized Zirconium Dioxide

Ceramic1800 45-50 100 kW to 2 MW

Hot Water or High Pressure

Steam

Solid Oxide (Planar)

Stabilized Zirconium Dioxide

Ceramic1200-1600 45-60 3 kW to 10 kW

Hot Water or High Pressure

Steam

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Fuel Cells

• Electrical Output Efficiency = 47%

– Constant from 50-100% load

• Advantages– Ultra low emissions– Highest efficiency– Minimal operator time for

O&M– Significant tax

credit/grant funding available

1-MW Fuel Cell Energy Fuel CellRiverside, CA WWTP

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Environmental Benefits

• Nearly double the reduction in plant carbon footprint over other cogeneration technologies

• Significant overall reduction of emissions of criteria pollutants

– NOx, CO, VOC, PM– Order of magnitude reduction compared to

other generation equipment

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Fuel Cells – Other Drivers

• Qualifies for simplified interconnection– All utility protection is built into inverter

• Federal Investment Tax Credit– 30% of qualified costs available as a tax credit– Up to $3000/kW

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Drivers for Implementation

Fuel Cells Engines Microturbines Boilers Flares

Typical Emissions for Various Digester Gas Fueled Equipment

Average NOx (lb/MWh)

Average CO (lb/MWh)

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Fuel Cell Air Emission Permits

Fuel Cells

NOX = 0.02

SOX = 0.001

PM10 = 0.01

CO = 0.05

VOC = 0.02

Recip Engines

<==> NOX = 3.4

<==> CO = 6.8

Emissions in lb/MWhr

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Digester Gas Fueled Fuel CellsOperating Installations• Santa Barbara, CA• LA County San. District, CA• City of Tulare, CA *• DSRSD, CA• City of Riverside, CA• EMWD, CA (Moreno Valley) *• TID/City of Turlock, CA *• City of Rialto, CA

Under Construction• EMWD, CA (Perris Valley) *• City of San Jose, CA *• IEUA, CA

* CE involved in Design/Implementation

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Digester Gas Fueled Fuel CellsProjects Under Active Consideration1. City of Davis, CA * 2. Union Sanitation District, CA *3. Palm Springs, CA *4. MRWPCA, CA *5. City of Visalia, CA *6. City of Livermore, CA *7. City of Redlands, CA *8. Las Virgenes Municipal Water District, CA9. EMWD, CA (Temecula) *10. City of Yuma, AZ *11. City of Salem, OR *12. Delta Diablo Sanitation District, CA *13. City of Fayetteville, NC *14. City of Fresno, CA *

* CE involved in Design/Implementation

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Fuel Cell History

• Early Experience on DG– Santa Barbara– LA County Sanitation

District– Portland, OR– Renton, WA– Yonkers, NY– LADWP– Inland Empire Utilities

District

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Fuel Cell Manufacturer’s• Currently manufacturing units:

– Fuel Cell Energy• Unit sizes: 300 kW, 1400 kW and 2800 kW• MCFC: 47% efficiency

– United Technologies Corporation• Unit size: 400 kW; not currently available for ADG,

but planned for 2010• Phosphoric Acid: 37-39% efficiency

– Bloom Energy• Unit size: Approximately 100 kW; not available for

ADG• No heat recovery possible• Solid Oxide Fuel Cell = 50-55% efficiency

• Potential Future manufacturer’s:– Agni GenCell

• Planned unit size range: Approx. 40 kW to 200 kW• Expected availability: 2010-2011• PEM/MCFC/SOFC units, MCFC to be used for power

generation

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Tulare Fuel Cell Project Sample• Three 300 kW FCE 300MA units

– 4th unit being installed now– Digester gas treatment system

• H2 S, siloxanes, water, VOC, etc.– Electrical interface with utility– Hot water heat recovery

• Started operation in October 2007

• Generated >16 million kWh (thru May 2010)– Value of generated electricity to the City is over

$1.5 million

• Average availability greater than 98%

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City of Tulare WPCF – AFT Fuel Conditioning System

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/26City of Tulare WPCF – 900 kW Fuel Cell Project

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EMWD Moreno Valley RWRF – 750 kW Fuel Cell Project

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Solar Photovoltaic (PV)

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Solar Photovoltaic (PV) Cells: Fixed Axis

• Fixed roof mounted solar panels that do not track the sun

• $7,500/kW average cost

• Typically 12-18% efficiency

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Solar Photovoltaic (PV) Cells: Tracking

• Single axis tracker– $10,000/kW average cost– Panels rotate on a N-S

axis in E-W direction– Up to 30% increase in

energy output vs. fixed axis

• Dual axis tracker– $12,000/kW average cost– Rotates about two axes

to maximize solar exposure

– Up to 35% increase in energy output

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Solar Photovoltaic (PV) Cells: Concentrated• Uses lenses or mirrors

and tracking systems to focus a large area of sunlight into a small beam

• $10,000/kW average cost

• Approximately 40% efficiency

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U.S. Solar Resources Map Source: National Renewable Energy Laboratory

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Solar Power – Site Conditions

• Footprint– Minimum 4 acres for 1 MW

facility, tracking– Minimum 5 acres for 1 MW

floating panel facility

• Sizing– Dependent on panel

efficiency 12 - 40%– Dependent on orientation

and tracking Floating solar array in Oakville, CA

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Solar Power - Economics

• System procurement– Owner purchase

• Owner buys panel and pays for all maintenance• Full ownership of RECs

– Power Purchase Agreement (PPA)• Third party owns and operates the PV system and

sells power to City or Agency at agreed upon rate • Savings from 30% federal tax credit passed on to

owner with lower rates• RECs negotiable

– Best payoff when average electricity rate >$0.10/kWh

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Wind

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Wind Power - Turbines

• Small and medium wind– Small: <100 kW each– Medium: 100 – 1,000 kW each– Primarily used to reduce onsite

energy consumption– $5,000 - $8,000/kW average

cost– Architectural wind turbine

• Utilizes building aerodynamics

• Large wind (1 MW - 2.5MW ea)– Used for utility wind farms– $2,000/kW average cost

• Future sizes expected up to 5.0 MW

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U.S. Wind Resources Map Source: National Renewable Energy Laboratory

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Wind Power - Site Conditions

• Wind turbines operation dependent on site specific wind characteristics

• Wind study needs to be performed to determine availability and speed of wind onsite

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Wind Power - Economics

• Payback period– Dependent on wind

resource quality, siting, permitting costs, energy costs, and turbine performance

– Greater payback potential for energy costs over $0.10/kWh

– Average Wind Payback Period: 25-40 years

Wind Farm Palm Springs, CA

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Algae

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Algae: WEFTEC 08

• Meeting drew over 80 people from academia, industry, municipalities, consultants and manufacturers

• Significant impacts to water and wastewater community

– Algae-to-fuel requires large volumes of water– Algae-to-fuel effort faces discharge concerns, nutrient

controls and water use constraints

• Meeting conclusions:– Knowledge gaps and regulatory impacts must be

addressed– Focus on algae as a treatment technology with biofuel

production as an added benefit– Core advisory group has been formed

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Biodiesel from Algae

• Algae can generate biodiesel, ethanol, or cellulose

• Average production:– Algae: up to 6,000 gallons biodiesel per acre

per year– Soybeans: up to 70 gallons biodiesel per acre

per year– Corn: up to 420 gallons of ethanol per acre

per year

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Growing Algae• Variables: Temperature,

light, water level, salinity, pH, turbulence

• Outdoor ponds – Low capital cost– Undesirable strains can

contaminate ponds

• Enclosed atmospheres – Continuous harvest– Higher output– Less fouling– High capital cost

• Cannot easily be grown in areas where it freezes in winter

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Harvest and Extraction

• Harvesting technologies still developing (centrifuge, DAF, fine screens)

• Coagulants for DAF or settling affect biodiesel production

• Cost of harvesting affects economic payback

• Oil extraction remains a challenge– Currently, it takes more energy

to extract the oil than the energy in the oil

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Methane from Algae

• Single phase digestion has led to digester upsets and decline in methane production

• Two-phase digestion promising. Acid phase lyses algae cells open, methane phase digests the contents

• Promising technology from Europe for cell lysing may benefit algae digestion

Acid Phase Digester, TMWRF, NV

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Carbon Credits

• Potential to generate carbon capture credits

• Algae extracts carbon from the air turning CO2 into O2

• Additional CO2 can be introduced into ponds from fuel cell exhaust; resulting in CO2 capture credit if fuel was NG and increasing algae growth rate

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Sampling of Incentives/Credits/Grants For Cogeneration Projects

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Identifying Funding Opportunities Is Important to the Feasibility of any Project

Funding Opportunities

Incentives

Tax CreditsLoans

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Potential Tax Incentives

• Business Energy Investment Tax Credit– U.S. Government– Provides a 30% corporate tax credit

for installation of fuel cell projects and 10% corporate tax credit for other technologies

• $3,000/kW maximum for fuel cells• $200/kW maximum for microturbines

– Can now be realized as a one-time Grant payment

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Other Incentives

• Renewable Energy Production Incentive – U.S. Department of Energy– Provides incentive payments for

electricity produced from renewable sources

• Up to $0.021/kWh for first 10 years of operation

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Potential Tax Incentives May Be Available

• Renewable Electricity Production Tax Credit– U.S. Government– Provides corporate tax credit for

renewable energy systems• Up to $0.022/kWh for 1st 10 years of

operation– Applicability for digester gas

questionable

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Available Loan Programs

• U.S. Department of Energy - Loan Guarantee Program

• Clean Renewable Energy Bonds (CREBs)

• Commercial Loan Programs– Non-government sponsored loan

programs

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Grants, Funding – California• Self Generation Incentive Program

– $4,500/kW to $1,125/kW (based on size) for fuel cell projects

• Up to $7,875,000 per project for 3.0 MW system– $1,500/kW for wind projects

• California Solar Initiative– Performance-based incentive rate:

• Currently $0.26/kWh produced for 5 years - Municipal– Approx $2,750,000 total incentive for 1 MW system

• California Energy Commission– Energy Efficiency Financing Program; Up to

$3 million; 3.95% fixed APR; up to 15 year term

• California G$S$ Smart Program– Energy Efficiency Financing; >$1 million; approx. 4% APR;

negotiable terms up to 12 years

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Grants, Funding - Oregon

• Oregon Department of Energy – Business Energy Tax Credit– Up to 50% of Total Project Costs for Renewable Energy

Generation Projects– Can be passed through to Municipal entities

• Energy Trust of Oregon – Open Solicitation Program– Innovative/Renewable Energy Projects

• Oregon Department of Energy – Small Scale Energy Loan Program – Loans up to $20 million for municipal renewable energy

projects

• PACE Loans & Small-Scale Energy Loan Program• Community Renewable Energy Feasibility Fund

Program

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Grants, Funding – Idaho

• Renewable Energy Equipment Sales Tax Refund• Renewable Energy Project Bond Program• Low-Interest Energy Loan Programs

– 4% for 5 years up to $100,000; $15,000 for solar

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Grants, Funding – Washington

• King County - Green Building Grants Program– Up to $35,000 grant

• Washington Renewable Energy Production Incentives– Up to $5,000 per year

• Renewable Energy Sales and Use Tax Exemption

Thank You

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