Combined Heat Power IP

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authors

Vigeh GoihaaChitia AgeideHaah Dcemie

Combined Heat and Power Systems:Impovig the Eeg Eciec o O Maactig

Pat, Bidig, ad Othe Faciitie

NRDC IssuE PAPEr april 2013IP:13-04-B


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acknedgenThe authors would like to acknowledge John Cuttica and Cliord Haeke at the Midwest Clean Energy Application Center,

Katrina Pielli at the U.S. Department o Energy, and Dylan Sullivan at NRDC or valuable eedback and comments.

ab NrDC

The Natural Resources Deense Council (NRDC) is an international nonprot environmental organization with more than 1.4 millionmembers and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the worldsnatural resources, public health, and the environment. NRDC has oces in New York City, Washington, D.C., Los Angeles, San Francisco,Chicago, Livingston, and Beijing. Visit us at www.nrdc.org.

NRDCs policy publications aim to inorm and infuence solutions to the worlds most pressing environmental and public health issues.For additional policy content, visit our online policy portal at www.nrdc.org/policy.

NRDC Director of Communications: Edwin Chen

NRDC Deputy Director of Communications: Lisa Goredi

NRDC Policy Publications Director:Alex Kennaugh

Lead Editor: Carlita SalazarDesign and Production:www.suerossi.com

Cover images: Reciprocating engine Finley Buttes; Gas turbine at University o Illinois at Chicago Vignesh Gowrishankar;CHP at BMW manuacturing plant BMW Manuacturing Co.

2013 Natural Resources Deense Council


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paGE 3

|Cbned he nd pe se

ExECutivE summary

Improving the energy eciency o our manuacturing acilities, buildings, and

homes can help us meet our energy challenges aordably. It can save consumers

money on their energy bills, drive business competitiveness and economicgrowth and jobs, enhance grid reliability and fexibility, and help protect public health

and the environment. Combined heat and power (CHP) systems are strong examples

o how energy-eciency technologies can help achieve these signicant benets or

end-user acilities, utilities, and communities. As the case studies eatured in this

report illustrate, CHP systems are extremely versatile and can be used in a spectrum

o industriesadvanced manuacturing, ood processing, health care, chemical and

primary metal productionand acilities including data centers, hotels, multiamily

housing, district energy, landlls, and arms.

CHP technology has vastly improved in recent

years, and current market drivers are becoming more

avorable. When designed and operated properly,

CHP systems can be economical and can generate

considerable net savings. Currently, 82 gigawatts

(GW) o installed CHP generation capacity (9 percent

o U.S. energy-generation capacity) are in use at

more than 4,100 sites across every state in the nation.

But at least 50 GW, and up to almost 200 GW oadditional CHP potential, remain to be tapped.

This issue paper illuminates the great potential

and versatility o CHP technologies to generate

useul energy more eciently, describing how these

systems work; the benets they can provide; their

application and use in the industrial, commercial,

institutional, agricultural, and residential sectors;

and their economics. Central to this paper are 30

case studies that demonstrate how various acilities

have taken advantage o CHP to better control their

energy use, boost their bottom lines, and reducepollution and reap other benets. Table 1 on the

ollowing page indexes the eatured case studies and

sectors, and summarizes the mix o benets seen at

these acilities, as described later in the report. sio maactig pat.


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paGE 4

|Cbned he nd pe se

tbe 1: s nd inde Feed Ce sde nd te Bene

Case studies (in report) State Page

Key system attributes seen in case studies

Advanced manuacturing 1. Sikorsky Aircrat Corp. CT 5 Y Y Y Y

Automotive 2. BMW Manuacturing Co. SC 6 Y Y Y Y

Chemicals, plastics,

rubber

3. Dow Chemical Co. LA 6 Y Y Y

4. Harbec Plastics NY 8 Y Y Y Y Y Y

Ethanol 5. POET Biorefning Macon MO 8 Y Y Y Y Y

Food processing6. Frito-Lay CT 9 Y Y Y Y

7. Gills Onions CA 10 Y Y Y Y Y Y Y

Forest products 8. Brattleboro Kiln Dry Co. VT 11 Y Y

Pharmaceuticals9. Johnson & Johnson

Transorm PharmaceuticalsMA 13 Y Y Y Y

Power generation 10. Linden Cogeneration Plant NJ 13 Y Y Y

Primary metals11. ArcelorMittal Indiana Harbor IN 14 Y Y Y Y Y

12. SunCoke Energy OH 14 Y Y Y Y Y Y

Pulp and paper 13. Seaman Paper Co. MA 15 Y Y Y

Refneries 14. Ergon MS 16 Y Y Y Y Y

Data centers 15. BP Helios Plaza TX 16 Y Y Y Y

Hotels, resorts

16. Snowbird Ski & SummerResort

UT 18 Y Y Y Y

17. Hilton New York NY 20 Y

Laundries 18. Arrow Linen Supply Co. NY 20 Y Y Y Y

Multiamily housing 19. Co-Op City NY 23 Y Y

Ofce buildings 20. Transamerica Pyramid Bldg. CA 24 Y Y Y Y

Retail center 21. Rogers Gardens CA 24 Y Y Y Y

District energy 22. TECO TX 25 Y Y Y Y

Health care23. Baptist Medical Center MS 26 Y Y Y

24. Beloit Memorial Hospital WI 27 Y Y Y Y Y Y

Landflls25. Finley Buttes Regional

LandfllOR 28 Y Y Y Y Y Y Y

Military 26. Naval Station Great Lakes IL 28 Y Y Y Y

Universities, colleges 27. Cornell University NY 29 Y Y Y Y

Wastewater treatment28. Rochester Wastewater

Reclamation PlantMN 29 Y Y Y Y Y Y

Dairies 29. Crave Brothers FarmsteadCheese WI 30 Y Y Y Y Y Y Y Y

Greenhouses 30. Houwelings Tomatoes CA 30 Y Y Y Y Y Y Y

En

ergyefciency

Re

ducedenergycosts

Su

pplypowertogrid

Otherrevenuestreams

En

ergyreliability

Po

werquality

Ea

siercapacityexpansion

Industry-specifcbeneft

Meetingstandards

Re

ducedemissions

Jo

bcreation

Re

newablesintegration

INDUSTRIAL

COMMERCIAL

INSTITUTIONAL

AGRICULTURAL


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paGE 5

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ComBiNED hEat aND powEr: a roBust tool to

improvE ENErGy EFFiCiENCy aCross sECtors

Improving the energy eciency o our manuacturing acili-

ties, buildings, and homes can help us meet our energy chal-

lenges aordably. However, seizing greater energy-eciency

opportunities in these sectors will require diverse strategiesto meet national and state energy, environmental, and eco-

nomic goals, including the deployment o better-perorming

energy-ecient technologies and systems. Combined heat

and power (CHP)an integrated system that simultaneously

generates electricity and useul thermal energy (e.g., steam)

rom a single uelis a versatile technology that can generate

useul energy more eciently, and thereby signicantly and

economically improve energy eciency and deliver substan-

tial benets or end-user acilities, utilities, and communities.

Currently, 82 GW o installed CHP generation capacity

the equivalent o more than 130 coal plants on average, or 9

percent o our nations total energy-generation capacityis in

use at more than 4,100 sites across every state in the nation.1

While the vast majority o CHP systems (by capacity) are used

in manuacturing acilities, a growing number o commercial,

agricultural, and residential sites, such as supermarkets,

hotels, and multiamily housing complexes, are considering

the use o such systems.2

There exists signicant potential or much greater CHP

deployment throughout the U.S. economyat least 50 GW

and up to almost 200 GW more. CHP has markedly advanced

over the years and is more reliable and cost-eective than

ever beore. Also, the price o natural gas, the most common

uel used in CHP applications, has dropped, and uture prices

are projected to be conducive to CHP expansion over the next

ew years. Another actor driving increased deployment oCHP systems has been growth in state and utility incentives

or CHP in various orms.

In a conventional CHP system (known simply as CHP,

or topping-cycle CHP), uel is burned solely to generate

electricity and useul thermal energy. In a variation on the

conventional system, called waste energy recovery (WER, orbottoming-cycle CHP), a uel is burned to serve an industrial

process (e.g., steel production), and any unused (or waste)

energy (e.g., process gases, in the case o steel production)

is then captured to generate electricity and, in some cases,

additional useul thermal energy. Waste energy recovery can

also include the productive utilization o pressure drops or

gaseous exhaust with partial-uel content. (Please note: In

this document, unless otherwise specied, CHP reers to both

conventional CHP and WER systems.)

The electricity rom CHP systems can be used on-site or

sold back to the grid i agreements and protocols with the

local utility can be arranged. The thermal energy can be used,

typically on-site, or a variety o purposes such as steamproduction, rerigeration, and space heating or cooling. In

act, the most ecient CHP systems are those that are able

to productively utilize, with minimal waste, the available

thermal energy.

As outlined in subsequent sections, CHP systems employ a

variety o technologies on a wide range o scales, use dierent

uels, and can be implemented across many industries and

applications. While a ull discussion o the necessary drivers

to promote CHP deployment is beyond the scope o this

report, enhanced awareness o and education about CHPs

versatility and potential, coupled with strong commitment

rom businesses, suitable acilitation rom utilities, and

conducive policies and regulations rom all levels ogovernment, are needed to drive these technologies in the

marketplace.

OVErVIEw: sio 10-Mw CHP pat, hich povide 84 pecet o the aciit

eecticit eed ad 85 pecet o it team-heatig eed, bega opeatio i 2011.

A pat o the compa age ph toad eviometa epoibiithich

icded the itaatio o 450 oa paethe CHP pat edce cabo dioxide

(CO2) emiio b 8,900 to pe ea. with eeg avig o moe tha $6.5 miio

pe ea, sio amot $26 miio ivetmet i expected to pa bac i e

tha o ea. The CHP tem ca o mtipe e (e.g., ata ga ad oi),

o the aciit i iated om e-pice voatiit ad pp i. Dig ad ateHicae sad, the CHP tem povided bacp poe o the aciit to emai

ope ad miimize opeatioa diptio. Moeove, the aciit a abe to evice

it 9,000 empoee ith ood ad ameitie, eve hie ma oca commitie

ee ithot poe. Baed o the ovea cce o thi CHP tem, sio i

coideig othe cea-eeg otio i moe o it aciitie odide.

FInAnCInG AnD InCEnTIVEs:n $26 miio capita ivetmet b sio Aicat Cop.n $4.66 miio state Cogeeatio Icetive Gat

sECTOr: Advaced maactig

OPErATIOn sTArT: 2011

TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: Caie (uTC)

CAPACITy: 10 Mw

InsTAllED COsT: $30.6 miio

OVErAll EFFICIEnCy: n/A

EnErGy sAVInGs: > $6.5 miio/

ea

rEPOrTED PAyBACk:


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OVErVIEw: I 2009, to high-eciec ga-ed combtio

tbie ee itaed at the BMw maactig pat i

spatabg, soth Caoia. The aciit impot ad ga

om wate Maagemet Pametto lad thogh a 9.5-

mie pipeie to e the 11-Mw CHP tem. I additio, the

exhat heat i ecoveed ad ed to geeate team o the

aciit idtia pocee. The CHP meet 30 pecet o

the pat eectica eed ad abot 50 pecet o it themaeed. I additio to povidig eiabe poe o-ite, the

itaatio ha eted i aa eeg avig o betee

$5 miio ad $7 miio ad edced CO2 emiio b

92,000 to pe ea.

sECTOr: Atomotive


TECHnOlOGy: Ga tbie

FuEl: lad ga

MAnuFACTurEr: n/A

CAPACITy: 11 MwInsTAllED COsT: n/A


EnErGy sAVInGs: $5 miio to $7 miio/ea

rEPOrTED PAyBACk: n/A

OTHEr BEnEFITs:n redce emiio: 92,000 to CO2/ea

Bmw mncng C. spatabg, sC2

Source:u.s. Depatmet o Eeg, sotheat Cea Eeg Appicatio

Cete, BMW Manuacturing Co., Poject Poe, Octobe 2009, avaiabe at

http://.otheatceaeeg.og/poe/e_poe/BMw_Cae_std.pd.

OVErVIEw: Do 1,500-ace itegated-maactig

aciit ea Paqemie ad bie opeatio i Gad Bao

compie oe o loiiaa aget petochemica aciitie,

ith moe tha 3,000 empoee ad cotact empoee. It

i home to 23 podctio it that maacte moe tha

50 dieet itemediate ad peciat chemica podct,

ch a choie ad poethee, that ae ed to podce

cometic, deteget, ovet, phamacetica, adheive,ad patic o a vaiet o pacagig, atomotive pat,

eectoic compoet, ad moe. Do cet o ad

opeate the Paqemie cogeeatio pat, hich coit

o o GE ata ga ed, 170-Mw combtio tbie ad

a 200-Mw team tbie. Fo iceaed fexibiit, the tem

i capabe o ig mtipe e, icdig pe ata ga,

pe hdoge-ga team, o a mixte. Thi pat ao

Do to geeate poe ad team via moe eeg-eciet

aet, deceae the e o ode, e eciet eqipmet

ove time, ad edce eeg cot. Poe ad team

ae ed at the Paqemie ad othe Do maactig

aciitie. The tem edce CO2 emiio p to 0.94

miio metic to pe ea, ad moo-itoge oxide (nOX)emiio ae e tha oe-qate o thoe at a tpica

poe pat.

Do i a exteive e o CHP, ith moe tha 90

pecet o it eeg eqiemet eved b CHP (eithe

e-oed o thid-pat opeated). Tpica eciecie o

Do CHP tem exceed 80 pecet, hie emiio-

coto eqipmet hep edce emiio.

sECTOr: Chemica, patic, bbe


TECHnOlOGy: Ga tbie, team tbie

FuEl: nata ga

MAnuFACTurErs: GE (ga tbie), Atom

(team tbie), nEM (heat ecove team geeato)

CAPACITy: 880 Mw

InsTAllED COsT: $550 miio


EnErGy sAVInGs: >$80 miio/ea


OTHEr BEnEFITs:n redced CO2 emiio

n redced nOx emiio

n Fe fexibiit

D Cec C. Paqemie, lA3

Source:Do Chemica Compete Pchae O Paqemie Cogeeatio

Faciit om AEP," Chemica Oie, Decembe 2006, avaiabe at http://

.chemicaoie.com/doc.mvc/Do-Chemica-Compete-Pchae-O-

Paqemie-0001; u.s. Eviometa Potectio Agec, lette to Do Paqemie

Cogeeatio Faciit, J 2011, avaiabe at http://.epa.gov/aimaet/

emiio/petitio/2011/r20110713_55419.pd; Do Chemica Compa,

Coge Mt Cotie Icetive o Combied Heat ad Poe: The Do

Chemica Compa Pepective, avaiabe at http://obb.a.p.ed/_107th/128_

PurPA/Ogaizatioa_statemet/noth_Eat_Mid_wet_Ititte/coge_mt_

cotie_icetive.pd(acceed Mach 2013).

BMwManuactuingCo.


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paGE 7

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Beore considering the use o CHP, acilities must make

certain that all existing electrical and thermal loads and

processes are as ecient as possible. This will ensure that

CHP systems are optimally sized.CHP systems can then acilitate much more ecient

generation and use o energy than systems that generate

electricity and thermal energy separately (e.g., electricity

purchased rom a utility and thermal energy generated by

a boiler). Conventional power stations (e.g., coal plants,

combined-cycle natural gas plants) discard, on average,

close to two-thirds o a uels intrinsic energy as wasted

heat, typically resulting in energy eciency levels below

40 percent. Boilers that generate thermal energy alone are

more ecient, achieving eciencies o around 80 percent

or higher. However, to meet the total electrical and thermal

energy needs o a given acility, power stations and boilers

working independently achieve overall energy eciencies

o only about 50 percent (see gure 1). In contrast, CHP

technologies are able to put the thermal energy that would

be wasted by conventional power systems to productive useand can routinely achieve overall average eciency levels

o 75 percent or higher.3 Furthermore, because electricity is

generated and used on-site, there are ewer transmission and

distribution losses compared with electricity obtained rom

distant power plants.

Stemming rom this core advantage o greater energy

eciency and complemented by other eatures, CHP

systems oer myriad benets or end-user acilities (e.g.,

manuacturing plants and commercial buildings), utilities,

and communities. These benets are discussed in the

ollowing section.

thE myriaD BENEFits oF ComBiNED hEat

aND powEr systEms

Fge 1: Chp se he sgncn hge oe Ecenc tn see Eecc nd te se

ELECTRICITY

HEAT

100

UNITS

FUEL

147

UNITS

FUEL

COMBINED

HEAT

AND

POWER

(CHP)

POWER STATION FUEL

(U.S. FOSSIL MIX)

91 UNITS

FUEL

CONVENTIONALGENERATION

COMBINED HEAT AND POWER5 MW NATURAL GAS COMBUSTION TURBINE

AND HEAT RECOVERY BOILER

ELECTRICITY

HEAT

POWER PLANT

EFFICIENCY 33%

EFFICIENCY 80%

51% 75%OVERALL EFFICIENCY

BOILER

BOILER FUEL

56 UNITSFUEL

45 UNITS

STEAM

30 UNITS

ELECTRICITY

a u.s. EPA, Combined Heat and Power Partnership, Efciency Benefts, avaiabe at http://.epa.gov/chp/baic/eciec.htm (acceed Mach 2013).


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OVErVIEw: I 2001, Habec Patic, a ctom-ijectio

mode ocated i Otaio, ne yo, itaed 25 30-w

micotbie. The CHP tem povide eecticit o

maactig pocee ad thema eeg to heat ad coo

the aciit. The micotbie, hich o ata ga, ca

be dipatched i 30-w icemet, maig the CHP tem

a idea t o a aciit cet ith a oad age o 80 w

to 450 w; he a 30-w iceae i eeded, a additioait i ted o, ad he a 30-w deceae i expected, a

it ca be ted o. with a ovea eciec o 70 pecet,

the CHP et i a 36 pecet eeg avig ad edce

the aciit CO2 emiio b 1,800 to pe ea. I the

pat, the CHP tem high-qait, eiabe poe aoed

Habec Patic to cicmvet a mch a $15,000 pe moth

i damaged eqipmet ad ot podct. Toda, Habec

opeate it CHP de thema pioit, hich mea the

pat thema eqiemet, o heatig ad ai coditioig,

dictate the mbe o tbie opeatig at a time. I thi

mode, Habec CHP tem i aa eig maximm

ovea eeg eciec ad th maximm ecoomic ad

eviometa oppotit.

sECTOr: Chemica, patic, bbe


TECHnOlOGy: Micotbie

FuEl: nata ga

MAnuFACTurEr: Captoe

CAPACITy: 750 w

InsTAllED COsT: n/A

OVErAll EFFICIEnCy: 70%

EnErGy sAVInGs: 36% et cot edctio pe earEPOrTED PAyBACk: 2.5 ea

OTHEr BEnEFITs:n reiabiit

n Avoided cot o damaged eqipmet

n redced emiio b 1,800 to CO2/ea

hbec pc Otaio, ny4

Source:u.s. Depatmet o Eeg, notheat CHP Appicatio Cete, Harbec

Plastics, Poject Poe, avaiabe at http://.otheatceaeeg.og/poe/

docmet/Habec-CHPPojectPoe_a.pd (acceed Mach 2013).

Ne m Gn, llC, dng bne

poEt Benng mcn Maco, MO5

OVErVIEw: I a joit vete ith the Cit o Maco,

Mioi, POET Bioeig Maco itaed a 10-Mw

soa Ma 100 Ga Tbie i Api 2003. (The CHP tem

i opeated b the Cit o Maco; the tbie geeato i

maitaied b the Cit o Maco; ad the heat ecove team

geeato i maitaied b POET Bioeig Maco.) The

CHP tem povide the 45-miio-gao-pe-ea ethao

pat ith 100 pecet o it eectica eed (a a bacp toit o-ite b-tatio) ad appoximate 60 pecet o it

team eed. A a et, POET Bioeig Maco ha ee

a appoximate 20 pecet edctio i team podctio

cot ad ha cce maitaied opeatio thogh

to to o poe otage pe ea ice the tem a pt

oie.

FInAnCInG AnD InCEnTIVEs: Bit o-ite at the ethao

pat, the CHP tem a pchaed etie b the Cit o

Maco, hich ha beeted om a 50 pecet deceae i

e cot ad ha eceived eeabe-eeg cedit om the

state o Mioi.

sECTOr: Ethao


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurErs: soa Tbie, Dete

CAPACITy: 10 Mw

InsTAllED COsT: n/A


EnErGy sAVInGs: Appoximate 20% cot avig o

team podctio pe ea

rEPOrTED PAyBACk: 13 ea


Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete, Northeast

Missouri Grain, LLC & City o Macon, Missouri, Poject Poe, avaiabe at http://

.midetceaeeg.og/poe/PojectPoe/notheatMioiGai.pd

(acceed Mach 2013).

HabecPatic


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paGE 9

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ComBiNED hEat aND powEr systEm

BENEFits to thE END usEr

redced eneg c: CHPs greater overall eciency

reduces uel costs. By generating on-site power and thermal

energy, it is possible to displace as much as one-third to one-

hal o the overall energy expenditures at a acility, especially

in regions where purchased power rom utilities is relatively

expensive.4 As such, CHP systems generate signicant annual

operational cost savings. This is what enables CHP systems

to pay back the initial investment, and the savings continue

beyond the payback period or the remainder o the systems

useul lie. Energy-intensive industries (e.g., steel, rening,

chemicals) may especially benet rom cost savings related

to electrical power and thermal energy.

Ne eene e: CHP systems can also oer new

sources o income. For example, excess electricity can be

sold to a utility i agreements and protocols can be arranged.

CHP systems can also provide saleable steam and heat or

other industry-specic products. While these markets are

emerging, additional revenue streams or CHP could include

certain types o clean energy credits as well as payments orproviding demand response and capacity reserves.

inceed ceene: Energy bill savings and

additional revenue streams provided by CHP systems can

be reinvested in acilities (or companies at large) to support

acility expansion and other capital projects, to hire or retain

workers, or in other initiatives that enhance competitiveness.

CHP systems can also earn Leadership in Energy and

Environmental Design (LEED) recognition and Energy

Star CHP awards. Companies could use this recognition to

dierentiate themselves in the marketplace and help ulll

corporate social responsibility goals.

OVErVIEw: Pepi Fito-la pat i kiig, Coectict, i a 275,000-qae-oot

aciit ith moe tha 400 empoee. I 2009, Fito-la itaed a soa Tbie

Ceta 50 ga tbie ad a heat ecove team geeato (HrsG) om retech

Boie stem. The CHP tem meet 90 pecet o the aciit eectica eed,

ad the HrsG e the exhat heat om the ga tbie to podce 48,000 pod

o team pe ho to heat the oi i to chip e. I additio, the exhat heat om

the e i ecoveed ad ed o pace heatig. A a 24/7 aciit, eiabiit a

a age dive i Fito-la deciio to ita a CHP tem; the pat ca be i

iad mode hod the gid go do. Togethe, the o-emiio ga tbie adHrsG ith eective catatic edctio have edced the aciit nOX emiio to

2.5 pat pe miio.

sECTOr: Food poceig


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurErs: soa Tbie,

retech Boie stem

CAPACITy: 4.5 Mw

InsTAllED COsT: n/A


EnErGy sAVInGs: n/A



n redced nOx emiio

F-l kiig, CT

6

Source:u.s. Depatmet o Eeg, notheat Cea Eeg Appicatio Cete, Frito-Lay Killingly, Poject Poe, 2010,

avaiabe at http://.otheatceaeeg.og/poe/docmet/FitolaCaestd.pd.

inceed eneg eb: CHP systems produce both

electricity and thermal energy on-site; accordingly, they re-

duce the risk o electric grid disruptions and enhance energy

reliability.5 CHP systems have the ability to provide utility-

quality backup power capable o running even when there

is a power outage in the grid (oten reerred to as running in

island mode; a small amount o increased capital invest-

ment may be required to enable this benet).6 Power outages

can be very costly or companiesor example, a one-hour

outage at an industrial manuacturing plant can cost a com-pany more than $50,000 in losses.7 And sometimes more than

money is at stake when the power goes out. The increased

reliability that CHP systems provide is especially important

or acilities where power is mission-critical, such as hospi-

tals, data centers, and 24/7 industrial acilities.

In act, during Hurricane Katrina in August 2005 and

Hurricane Sandy in October 2012, acilities with CHP had

uninterrupted access to reliable and essential power and

thermal amenities. These sites included the Baptist Medical

Center in Jackson, Mississippi (see case study 23); Co-Op City

in the Bronx, New York (case study 19); Sikorsky Corporation

in Stratord, CT (see case study 1); the South Oaks Hospital

in Amityville, NY; the Greenwich Hospital in Greenwich, CT;Princeton University in Princeton, NJ; The College o New

Jersey in Ewing, NJ; the Public Interest Data Center in New

York City; and New York Universitys Washington Square

campus. For New York University, the critical benets o CHP

were starkly apparent: While the Washington Square campus

had power, its Langone Medical Center lost grid and backup

power and had to evacuate all o its patients.8

Furthermore, to insulate acilities rom uel-price volatility

and possible supply risks, CHP systems can be congured

to run on multiple uels. And as another acet o energy

reliability, CHP systems can oer superior power quality

(i.e., a more regular and predictable voltage and current

prole).9 They can achieve this when isolated rom or evenwhen connected to the grid.


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paGE 10

|Cbned he nd pe se

Ee eneg cc enn: CHP systems are

typically scalable according to a acilitys eletrical and thermal

needs. CHP systems can sometimes also be installed more

quickly than a utility can extend the required high-voltage

transmission and distribution. CHP systems can typically be

installed within one-hal to three years, whereas transmission

build-outs can take 10 years or longer.10

ind- dc-ecc bene: CHP systems can

oten oer industry- or product-specic benets, such asn Production o higher-quality metallurgical coke (see case

study 12, SunCoke Energy)

n Utilization o carbon-dioxide emissions as ertilizer and

reduction o water usage (see case study 30, Houwelings

Tomatoes)

In addition, CHP systems can help promote the

sustainable use o otherwise wasted products and can

simpliy waste management. Some examples are

n Improved waste management and production o animal

eed (see case study 7, Gills Onions)

n Waste reduction (see case study 29, Crave Brothers

Farmstead Cheese)

n Productive use o landll waste (see case study 25,

Finley Buttes Regional Landll)

n Improved waste management (see case study 28,

Rochester Wastewater Reclamation Plant)


BENEFits to utilitiEs

meeng ndd: CHP systems can potentially help

acilities and utilities meet their compliance obligations

under local, state, and ederal emissions standards, such as

the recently announced air toxin standards or boilers and

power plants. While these systems on their own may not

bring acilities into compliance, they can potentially help

reduce the cost o meeting those standards and reduce the

emission o CO2 and other pollutants.

CHP and WER systems also qualiy or clean energy

portolio standards (e.g., energy eciency resource standard,

alternative energy portolio standard, renewable portolio

standard) in 24 states that specically include them as

eligible resources in some orm.11

Gee feb n e eecc gd nd deeen

neen n ne -e e n:

As demand or energy rises because o increased industrial

and commercial activity and a growing population, and

as our energy mix shits to cleaner sourcesincluding

energy eciency and an increasing penetration orenewablesour transmission system and inrastructure

will need to be enhanced to provide the fexibility necessary

to accommodate a changing suite o resources while

maintaining reliability and avoiding congestion.12

OVErVIEw: Gi Oio, the atio aget ami-oed goe ad poceo

o oio, itaed a Advaced Eeg recove stem (AErs) compiig to

300-w mote caboate e ce i 2009, to tae advatage o bioga om

the appoximate 1.5 miio pod o oio ate podced at the compa

poceig aciit each ee. Pio to itaig the tem, Gi Oio dipoed o

oio-pee ate thogh taditioa ad appicatio at the compa agicta

ed. Thi had meo advee impact, icdig oxio odo, goth

impaimet o the ed, potetia godate cotamiatio, ad the opeatig

cot o iteive abo ivoved i ate dipoa. The compa AErs heped ove

thee pobem b divetig the pevio dicaded ate to meet the aciit

eeg eed, avig the compa moe ad edcig potio. The e ce

povide 100 pecet o the poceig aciit bae-oad eeg demad ad avig

o appoximate $700,000 pe ea o the compa eeg bi. The compa ao

ave $400,000 i avoided ate-dipoa cot aa, icdig tc tip to ha

ate to the ed. I additio, it o ha a additioa team o evee om the

ae o a emaiig oid-oio ate a catte eed. Gi aad-iig temao edce geehoe ga emiio ad ate dichage om the aciit. with

a itaatio cot o $10.8 miio, the compa expect to ecove the cot o the

tem ithi ix ea.

FInAnCInG AnD InCEnTIVEs:n $2.7 miio gat om sempa Eeg se-Geeatio Icetive Pogamn $3.2 miio om the Ameica recove ad reivetmet Act

sECTOr: Food poceig


TECHnOlOGy: Fe ceFuEl: Bioga

MAnuFACTurEr: FeCe Eeg

CAPACITy: 600 w



EnErGy sAVInGs: $700,000/ea

($1.1 miio/ea, icdig avoided

ate dipoa cot)


(o Gi Oio ivetmet)

OTHEr BEnEFITs:n wate edctio

n redced emiio

n sae o copodct

G onn Oxad, CA7

Source:u.s. Depatmet o Eeg, Pacic Cea Eeg Appicatio Cete, Gills Onions, Poject Poe, Decembe 2011, avaiabe at http://.pacicceaeeg.og/

PrOJECTPrOFIlEs/pd/Gi%20Oio.pd; pdated iomatio povided b Gi Oio i emai coepodece ith nrDC, Octobe 2012.


11/33

paGE 11

|Cbned he nd pe se

Non-wires alternatives, including demand response,

distributed generation systems such as CHP, and other

energy-eciency solutions, can oer a ar less capital-

intensive route than building new ossil-uel power plants

to meet this growing demand; accordingly, they provide

greater fexibility in transmission and distribution planning.13

These benets could save consumers money on their energy

bills and allow regions to more cost eectively plan new

generation and transmission inrastructure.14 In particular,

CHP systems may reduce the need to invest in transmissioninrastructure as power is generated close to where it is

needed. CHP systems may also assist in the integration

o renewables. Furthermore, as they generate power with

greater overall eciency, CHP systems may also reduce the

need to build more power-generation capacity.

In July 2011, the Federal Energy Regulatory Commission

(FERC) issued a new orderOrder 1000that could

help CHP systems play a greater role in transmission and

distribution planning.15 Among other requirements, the order

requires regional transmission planners to consider non-

wire alternatives, such as CHP systems and energy eciency,

in their planning processes to acilitate meeting existing

public policy goals, such as state energy-eciency andrenewable-energy standards. As the order was only recently

implemented, its ull eects remain to be seen.

Additionally, to the extent that CHP systems could provide

or demand response, FERCs Order 745 lays out guidelines

or appropriate compensation in applicable markets.16


BENEFits to CommuNitiEs

redced en: CHP systems reduce emissions o

CO2 and other pollutants, including nitrogen oxides, sulur

dioxide, particulates, and other greenhouse gases. (CO2 is a

global warming pollutant, while other industrial pollutants

can cause ground-level smog, acid rain, and human

health impacts such as asthma, heart disease, cancer, and

premature death.) For example, a 5-MW gas-turbine CHP

unit with an overall eciency o 75 percent reduces annual

CO2 emissions by about 50 percent, as compared with an

80-percent-ecient, on-site natural gas boiler and an average

ossil uelbased electricity generator.17 On average, making a

similar comparison, a CHP system can be expected to reduce

emissions o CO2 by about 4,000 metric tons per MW o

installed capacity.18

Jb cen: The use o CHP systems creates direct jobs in

manuacturing, engineering, installation, ongoing operation

and maintenance, and many other areas. In addition, CHP

projects create indirect jobs in the CHP industrys supply

chain and other supporting industries. Workers employedas a result o these direct and indirect jobs can spend their

received income on other goods and services, and businesses

and consumers can reinvest the energy-bill savings they

receive rom CHP systems into other projects, goods, and

services. All this activity creates and retains jobs and induces

economic growth in local communities.19 Preliminary work

suggests that each GW o installed CHP capacity may be

reasonably expected on net to create and maintain between

2,000 and 3,000 ull-time equivalent jobs throughout the

lietime o the system. These jobs would include direct jobs

in manuacturing, construction, operation and maintenance,

as well as other indirect and induced jobs (net o losses in

other sectors), both rom redirection o industrial energyexpenditures and re-spending o commercial and household

energy-bill savings.

OVErVIEw: The aget ctom ood-dig compa i ne Egad, Batteboo

ki D Co., e 16 i (heated b boie) to d ad poce mbe o ami,

mbe hoeae, ite maacte, ad cotctio compaie. yea ago,

a pee dopped dig the dig poce, eeg i the team a ot. I

1989, the aciit itaed a 380-w Tboteam bac-pee team-tbie

geeato. Thi wEr tem capte the team eeg that od be ot he

high-pee team i ditibted ito o-pee team o heatig ppoe, ad

e it to geeate eecticit. The tem had a itaatio cot o $140,000 adedce aa eeg expedite b $50,000.

sECTOr: Foet podct


TECHnOlOGy: steam tbie

FuEl: wate eeg

MAnuFACTurEr: Tboteam

CAPACITy: 380 w

InsTAllED COsT: $140,000



rEPOrTED PAyBACk: < 3 ea

OTHEr BEnEFITs: n/A

Beb Kn D C. Batteboo, VT8

Source:Tboteam, Brattleboro Dry Kiln Company, Cae std, docmet povided b compa i Agt 2012.


12/33

paGE 12

|Cbned he nd pe se

Direct jobs in the CHP industry, like many energy-

eciency industries, are oten more labor-intensive than

these in other sectors o the economy are locally bound,

and cannot be outsourced.20 For instance, engineering,

installation, operation, and maintenance must be done on-

site. In addition, a number o CHP manuacturers and service

providersincluding GE, Solar Turbines, Capstone, Carrier,

Turbosteam, ClearEdge Power, and 2G-CENERGYhave

operations in the United States.

te mnce, inn, nd ue Chp

se Cee mn Dec nd indec Jb

Geate depomet o CHP i divig job goth.

Hee ae exampe o e ad etaied job at

maactig aciitie:

n AceoMitta ceated appoximate 360 maactig

ad cotctio job om the itaatio o a 38-Mw

CHP tem at the compa Idiaa Habo aciit i

Eat Chicago, Idiaa. The poject i ao expected to

hep etai 6,000 empoee at the aciit b oeig

the compa tee podctio cot b $5 pe to ad

timate maig the pat moe competitive.21

n The lide Cogeeatio aciit i lide, ne Jee,

ceated 60 -time job i opeatio ad maiteace

at the pat.22

n Etha Ae ite acto i Vemot a abe to

ta i bie ad etai 550 empoee becae o

edced eeg cot om the itaatio o a CHP

tem.23

Hee ae exampe o e ad etaied job ithi the

CHP idt:

n

GE empo appoximate 1,000 odide a pato it CHP bie, icdig oe at it Hoto,

Texa, ad waeha, wicoi, aciitie.24

n 2G-CEnErGy, a maacte o bioga, ata ga,

ga, ad othe CHP tem, aoced i 2012

that it i etabihig a opeatio i st. Agtie,

Foida, to podce advaced CHP tem. It pa to

hie 125 oe.25

n recced Eeg Deveopmet, a CHP ad ate

eeg ecove compa headqateed jt otide

Chicago, i the at e ea ha ceated o etaied

moe tha 250 job ithi the compa aco the

uited state.

26

inegn enebe eneg: Renewable energy

use is rapidly expanding in the United States. However, at

present, some renewable sources can be intermittent. CHP

systems, especially those running on natural gas, can provide

additional fexibility and reliability when used in conjunction

with potentially variable renewable energy systems by

supplying standby power, able to kick in when there is, or

example, cloud cover or a drop in wind speed. In act, with

increasing penetration o renewable energy, CHP developers

are exploring opportunities to use their systems to supportrenewable energy deployment.

Additionally, CHP systems are typically quite fexible and

can use a variety o uels. As such, CHP systems could be used

to promote the use o renewable uels, such as sustainably

sourced biomass and biogas. Among the sites oering such

opportunities are landlls (see case study 25, Finley Buttes

Regional Landll), wastewater treatment acilities (see case

study 28, Rochester Wastewater Reclamation Plant), and even

arms (see case study 7, Gills Onions; case study 29, Crave

Brothers Farmstead Cheese.)

redced e ce: CHP systems have

nancial benets that spread beyond the acilities where theyare deployed. For instance, well-designed and well-operated

CHP systems can reduce the need to build additional power

plants that are more expensive. Accordingly, such CHP

systems signicantly reduce the cost o the overall power

system.27 These savings accrue to a given utilitys entire

customer base, beneting consumers, businesses, and the

community at large.


13/33

paGE 13

|Cbned he nd pe se

OVErVIEw: I 1992, lide Cogeeatio Pat bega

opeatio o a 900-Mw CHP tem coitig o ve ga

tbie. Oed b GE, the aciit e it eecticit to

Cooidated Edio i ne yo ad to the eectica gid i

ne Jee, Pevaia, ad Maad. The team i od

to the Baa ree. The pat icde thee vaiabe-

eqec taome ad e mat-gid techoog, hich

ao opeato to coto poe fo betee gid. lideCogeeatio Pat ha ceated 60 -time job i opeatio

ad maiteace.

FInAnCInG AnD InCEnTIVEs: lide Cogeeatio Pat

cotibted to the apid expaio o CHP i ne Jee.

Thi heped the 1978 Fedea Pbic utiitie Poic Act,

hich eqied tate to ecoage CHP b eqiig tiit

moopoie to pchae poe om idepedet geeato.

ne Jee CHP aciitie iceaed i capacit 40-od om

1986 to 1996.

sECTOr: Poe geeatio

OPErATIOn sTArT: 1992TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: n/A

CAPACITy: 900 Mw

InsTAllED COsT: n/A


EnErGy sAVInGs: n/A


OTHEr BEnEFITs:n redced emiio

n Ceatio o 60 -time job

lnden Cgenen pn lide, nJ10

Source:Pe Eviomet Gop, Combined Heat and Power: Energy

Efciency to Repower U.S. Manuacturing, Fact sheet, Ma 2011, avaiabe at

http://.peeviomet.og/poadedFie/PEG/Pbicatio/Fact_sheet/

CHP%20nEw%20JErsEy%20HI-rEs%2012.6.11.pd.

OVErVIEw: Joho & Joho acqied Taom

Phamacetica ocated i lexigto, Maachett,

i 2005. I 2008, the compa itaed a 250-w oa-

aited CHP tem to edce cot ad geehoe ga

emiio to comp ith a copoate taiabiit madate.

Deiged ad itaed b Dee-rad, the ti-geeatio

tem povide eiabe eecticit, heatig, ad cooigto the maactig pat. The CHP tem ca podce

p to 1.3 miio Bitih thema it (Bt) o 180F hot

ate o 75 to o chied ate, o o a tpica da it ca

deive appoximate 38 pecet o the ite hot ate ad

29 pecet o it cooig eed. Togethe ith the aciit

eeabe oa thema geeatio, the CHP tem et

i aa eeg avig o $220,000 ad aa cabo

ootpit edctio o ea 1,000 to.

sECTOr: Phamacetica


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: Dee-rad

CAPACITy: 250 w

InsTAllED COsT: n/A

OVErAll EFFICIEnCy: Appoximate 80%


(icdig oa geeatio)


OTHEr BEnEFITs:

n redced geehoe ga emiio

Jnn & Jnn tn pcec

lexigto, MA9

Source:CHP stem Hepig Phamacetica Compa Exceed Goa to redce

Eeg Cot ad Geehoe Emiio, Solar Thermal Magazine, avaiabe

at http://.oathemamagazie.com/2009/10/29/chp-tem-hepig-

phamacetica-compa-exceed-goa-to-edce-eeg-cot-ad-geehoe-

emiio/ (acceed Mach 2013).


14/33

paGE 14

|Cbned he nd pe se

OVErVIEw: The aget teemaig aciit i noth Ameica,

the AceoMitta Idiaa Habo compex opeate ve bat

ace at capacit ith a teemaig capabiit o 9.5

miio to pe ea. I a 2012, the compa competed

the itaatio o a 38-Mw CHP tem to tiize pevio

ated bat ace ga (BFG), a b-podct o the io

maig poce, to podce eecticit o-ite. The e

$63.2 miio ate eeg ecove tem capteappoximate 46 biio cbic eet o BFG om the aciit

no. 7 bat ace ad e it to podce team to geeate

eecticit. The itaatio i expected to oe the aciit

aa eeg cot b ea $20 miio ad edce aa

CO2 emiio b 340,000 to. I additio, the poject

ceated appoximate 360 maactig ad cotctio

job ad i expected to hep etai 6,000 empoee at the

aciit b oeig the podctio cot o tee b $5 pe to.

FInAnCInG AnD InCEnTIVEs: $31.6 miio matchig gat

om the u.s. Depatmet o Eeg de the Ameica

recove ad reivetmet Act.

sECTOr: Pima meta



FuEl: wate eeg

MAnuFACTurEr: n/A

CAPACITy: 38 Mw



EnErGy sAVInGs: $20 miio/ea

rEPOrTED PAyBACk: 1.6 ea

(o AceoMitta ivetmet)


n reiabiit

n Job ceatio

acem indn hb Eat Chicago, In11

Source:AceoMitta, ArcelorMittal Indiana Harbor (East Chicago, Ind.) Energy

Recovery & Reuse 504 Boiler Project, Cae std, 2012, (docmet povided b

compa i septembe 2012).

OVErVIEw: sCoe Eeg, the aget podce o

metagica coe i the Ameica, e a advaced heat

ecove coe-maig poce that ied a highe qait

podct, geeate eeg om ate heat, ad hep edce

emiio. sCoe Eeg ove podce oid tate

cabo (coe) om coa, hie thema detoig voatie

matte. Thei peio coe exhibit a high aveage ize ad

high coe tegth ate eactio vae, ehacig io, adtee-maig ecoomic. sCoe Eeg coe-maig

poce e ate heat ecove techoogie to geeate

team ad eecticit, hich ca be ed ithi the aciit o

od to the tiit.

sECTOr: Pima meta



FuEl: wate heat

MAnuFACTurEr: n/A

CAPACITy: 45 Mw

InsTAllED COsT: ($410 miio o etie pat)


EnErGy sAVInGs: n/A


OTHEr BEnEFITs:n Podctio o highe qait metagica coe

n Additioa evee team o eecticit ae

n redced emiio

snCke Eneg Middeto, OH12

Source:sCoe Eeg, O Iovatio, avaiabe at http://.coe.com/o-

iovatio/coe-a.php (acceed Mach 2013); sCoe Eeg,

sCoe Eeg: The High Degee peetatio at the Combied Heat ad Poewohop, Comb, OH, Je 20, 2012, avaiabe at http://.pc.ohio.gov/

empiba/e/media/CMsFie/webcatreated/155/sCoe%20Eeg%20

-%20sipoth.pptx.


15/33

paGE 15

|Cbned he nd pe se

DEploymENt potENtial For ComBiNED

hEat aND powEr tEChNoloGy

While 87 percent o the 82 GW o CHP capacity is in

manuacturing plants around the country, a growing number

o acilities in the commercial, agricultural, and residential

sectors are considering its use.

28

As explained earlier in thispaper, CHP expansion is very plausible in upcoming years or

several reasons: CHP is more reliable and cost-eective than

ever beore; the price o natural gas, the most common uel

in CHP applications, has dropped; and there are expanding

state and utility incentives available or CHP in various orms.

Table 1 shows the spectrum o industries in which CHP can

be used. This is not an exhaustive list, and CHP can be used

elsewhere, too. Table 1 also indexes and highlights the case

studies discussed in this report, selected across a number o

industries and rom nearly 20 states nationwide, along with

the key benets that the systems provide. Figure 2 shows

the geographic distribution o these case studies. A larger

compilation o such studies has been compiled by the U.S.Department o Energy (DOE).29

There is tremendous potential or even greater deployment

o CHP. A 2009 study by McKinsey & Company estimated

that 50 GW o CHP in industrial and large commercial/

institutional applications could be deployed at reasonable

returns with equipment and energy prices available at

that time.30 Going beyond the currently installed capacity,

the remaining technical potential o CHP systems (where

they are technically easible and avorable to deploy) in the

industrial and commercial/institutional sectors is roughly65 GW each.31 A breakdown o this technical potential in key

sectors is given in gure 3. However, the 65 GW o remaining

industrial technical potential accounts only or systems with

sizes constrained such that they do not have excess power

to export to the grid. But i systems can be sized to enable

export o power to the grid, then the remaining industrial

technical potential doubles, to 130 GW.

In August 2012, President Obama issued an executive

order announcing a national goal o deploying 40 GW o

new, cost-eective CHP in the industrial sector by the end

o 2020.32 As part o this ederally acilitated eort, the State

and Local Energy Eciency Action Network (SEE Action),

coordinated by the DOE and the U.S. EnvironmentalProtection Agency, released the Guide to the Successful

Implementation of State Combined Heat and Power Policies.33

Furthermore, as noted previously, many states have

encouraged CHP technologies in some manner through

clean energy standards and other incentives.

OVErVIEw: seama Pape Compa o Otte rive, Maachett, i a 24/7

idtia mi that podce 75 to o fat tie pape pe da. I 2009, the compa

competed the itaatio o a 283-w CHP tem to achieve cot avig ad

edce emiio. The aciit opeate a bac-pee tbie, hich geeate

team at a highe tempeate ad pee tha i eqied o seama pocee,

ad the fo the exhat team thogh a tbie to geeate 1,450 Mwh o

eecticit each ea. Pio to itaatio, the mi a ig appoximate 1.7 miio

gao o no. 6 e oi ad 24,000 Mwh o eecticit pe ea. I cotat, o the

aciit CHP tem i eed b 27,000 to o ood, ad the mi e o 21,000

Mwh o eecticit pe ea. The impovemet have edced seama Pape e

age to e tha 70,000 gao o e oi pe ea ad geeated aa eeg

avig o $1.5 miio. I additio, the CHP tem ha edced CO2 emiio b

99 pecet ad nOX emiio b 30 pecet.

sECTOr: Pp ad pape


TECHnOlOGy: Bac-peeteam tbie

FuEl: Bioma

MAnuFACTurErs: Tboteam,

Ht

CAPACITy: 283 w

InsTAllED COsT: n/A


EnErGy sAVInGs: $1.5 miio/ea


OTHEr BEnEFITs:

n redce CO2 ad nOX emiio

sen pe C. Otte rive, MA13

Source:u.s. Depatmet o Eeg, notheat Cea Eeg Appicatio Cete, Seaman Paper, Poject Poe, Agt 2010,

avaiabe at http://.otheatceaeeg.og/poe/docmet/seamapape.pd.


16/33

paGE 16

|Cbned he nd pe se

OVErVIEw: Ego, i Vicbg, Miiippi, i a cde-oi

poceo ad maacte o aphat podct. I 1994, the

compa itaed a 4.72-Mw CHP tem to pp eiabe

eecticit ad mae e o the heat to ceate team o the

ee. A o the eecticit geeated i ed to poe

pocee at the aciit. The team podced i deiveed

to the ee at a pee o 650 pod pe qae ich

(pi), ad the aciit ca podce 50,000 pod pe ho atthi pee. lo-pee team om the CHP tem i

ed b aciit pocee a e. The etie CHP tem i

goveed b demad, hich eqie a opeato to moito

coe the e o the CHP tem; a the eed o eecticit

o team fctate, o doe the e o the CHP tem

(ad a epaate dct be, hich povide eogh fexibiit

to pp ciet team). whie the podctio o the

eecticit i moe expeive tha big it om the tiit

povide, the team podctio ave Ego a etimated

$1.7 miio pe ea.

sECTOr: reeie (cde-oi poceo)


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: soa Tbie

CAPACITy: 4.72 Mw

InsTAllED COsT: n/A




OTHEr BEnEFITs:

n reiabiit (tabe oce o poe)

Egn, inc. Vicbg, Ms14

Source:u.s. Depatmet o Eeg, sotheat Cea Eeg Appicatio Cete,

Ergon, Inc., Poject Poe, 2011, avaiabe at http://.otheatceaeeg.og/

poe/e_poe/Ego_Poject_Poe.pd.

OVErVIEw: BP Heio Paza i a 355,000-qae-oot oce

bidig ad data cete that hoe BP noth Ameica Ga

ad Poe bie ad upteam leaig Cete. sice

eeg, ecit, ad eiabiit ae eetia o ch a aciit,

a CHP tem a itaed i 2009. The pat coit

o a 4.6-Mw ga tbie, maacted b soa Tbie,icdig a heat ecove tem tiizig a aboptio chie

ad eective catatic edctio techoog o emiio

edctio. The CHP tem i capabe o meetig a o the

aciit eeg eed ad heped BP achieve lEED Patim

ceticatio. whe oig bacot hit Hoto i Feba

2011, the aciit o-ite, cea-big poe pat emaied

i opeatio, eig that bie cotied 24/7 ithot

iteptio.

sECTOr: Data cete, oce bidig


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: soa Tbie

CAPACITy: 4.6 Mw

InsTAllED COsT: n/A


EnErGy sAVInGs: 34% cot avig pe ea


OTHEr BEnEFITs:n reiabiit (povide poe i abece o gid)

n

Eviometa taiabiitn Additioa bacp thogh uiteptibe Poe stem

Bp he pz Hoto, TX15

Source:u.s. Depatmet o Eeg, G Coat Cea Eeg Appicatio Cete,

BP Helios Plaza, Poject Poe, 2011, avaiabe at http://e.hac.ed/ite/

gcoatchp/Caestdie/BP-Heio.pd.


17/33

paGE 17

|Cbned he nd pe se

3

5

9

1423

20

15

2728

29

25

16

2

12

1

9

10

18

2

12

4

14

17

5

6

11

4

13

15

22

16

7

2426

13

8 6

1

19

1817

10

8

3

11

217

30

9

Fge 2: lcn Feed Ce sde Cne Chp-reed oenEight-to Gw o CHP capacit i ditibted ove moe tha 4,100 ite aco eve tate i the uited state.

CasE stuDiEs

1. skk ac C.

statod, CT

2. Bmw mncng C.

spatabg, sC

3. D Cec C.

Paqemie, lA

4. hbec pcOtaio, ny

5. Ne m Gn,

llC (db) poEt

Benng mcn

Maco, MO

6. F-l

kiig, CT

7. G onn

Oxad, CA

8. Beb Kn D C.

Batteboo, VT

9. Jnn & Jnn

tn pceclexigto, MA

10. lnden Cgenen pn

lide, nJ

11. acem indn

hb

Eat Chicago, In

12. snCke Eneg

Middeto, OH

13. sen pe C.

Otte rive, MA

14. Egn

Vicbg, Ms

15. Bp he pz

Hoto, TX

16. snbd sk nd se

re

sobid, uT

17. hn Ne yk

ne yo, ny

18. a lnen s C.

Boo, ny

19. C-o C

Box, ny

20. tnec pd

Bdng

sa Facico, CA

21. rge Gden

Cooa De Ma, CA

22. te EnegCn (tECo)

Hoto, TX

23. B medc Cene

Jaco, Ms

24. Be me h

Beoit, wI

25. Fne Be regn

lnd

Boadma, Or

26. N sn Ge lke

Geat lae, Il

27. Cne une

Ithaca, ny

28. rcee wee

recn pn

rochete, Mn

29. Ce Be Fed

Ceee

wateoo, wI

30. heng te

Camaio, CA

maNuFaCturErs aND

DEvElopErs

1. 2G CENErGy

st. Agtie, Fl

2. Cne

Chatoth, CA

3. Ce

Famigto, CT

4. Ce

Peoia, Il

5. CeEdge pe

Hiboo, Or

6. Dee-rnd Chp

sn

Cohaet, MA

7. Fbnk me Engne

Beoit, wI

8. Fe Ce Eneg

Dab, CT

9. GE Eneg

Hoto, TX

waeha, wI

10. h Be & wedng C.

Cooidge, GA

11. inegen pe se

Od Bethpage, ny

12. o tecnge

reo, nV

13. recced Eneg

Deeen

wetmot, Il

14. renec

Abiee, TX

15. seen Eneg

Hoto, TX

16. s tbnesa Diego, CA

17. tbe

Te Fa, MA

18. yk un pdc

G

noma, Ok


18/33

paGE 18

|Cbned he nd pe se

Fge 3: renng tecnc pen Chpind: ~65 130 Gw; Cec/inn: ~65 Gw

Chemicals

Food

Paper

Refining

Other

Hotels

Multifamily

Office Buildings

Government Buildings

Hospitals

Universities/Colleges

Other

INDUSTRIAL

Remaining technical potential

~65 GW (up to 130 GW)*

Remaining technical potential

~65 GW

COMMERCIAL/

INSTITUTIONAL

0 10 20 30 40 50 60

Existing CHP Potential CHP

*The 65 GW of remaining industrial technical potential (with breakdown shown above) accounts only for systems withsizes constrained such that they do not have excess power to export to the grid, but if systems can be sized so as to enableexport of power to the grid, the remaining industrial technical potential doubles to 130 GW.

CHP generation capacity in gigawatts (GW)

OVErVIEw:

sobid si ad

smme reot

pa aco

2,500 ace i

sobid, utah. I

1987, the goig

eot became too

age o the tiit

25-iovot (V)

poe ie that

p the motai.

Itead o paig

o a ie pgade,

the compa decided to t to o-ite poe geeatio ad itaed a 2-Mw CHP

tem at a cot o $3.5 miio. A additioa $2.2 miio a eqied to bid a

ata ga pipeie to the aciit. with a ovea eciec o 75 pecet, the CHP

et i eeg avig o $815,000 pe ea ad ee a eiabe oce o poe

o the aciit. I the ite, heat om the CHP tem i ed o pace ad poo

heatig ad metig o o aa. I the mme, ome o the heat i ti edo pace ad poo heatig, bt the et a Caie aboptio chie o the odge

ai coditioig.

sECTOr: Hote, eot


TECHnOlOGy: recipocatig egie

FuEl: nata ga

MAnuFACTurErs: Catepia,

CaieCAPACITy: 2 Mw






Source:u.s. Depatmet o Eeg, Itemotai Cea Eeg Appicatio Cete, Snowbird Ski and Summer Resort, Poject Poe, 2011,

avaiabe at http://.itemotaiceaeeg.og/poe/sobid-Poject_Poe.pd.

snbd sk nd se re sobid, uT16

wikimedia


19/33

paGE 19

|Cbned he nd pe se

Five main technologies are used in typical CHP systems.34

These technologies, sometimes reerred to as prime

movers, are:

n G bne ( cbn bne). Such turbinesrevolutionized airplane propulsion in the 1940s. Since

the 1990s they have become a popular choice or power-

generation systems, including CHP. In this technology, air

is taken in, compressed, burned with a uel (usually natural

gas), and then ejected to drive a turbine that generates

power. Heat can be recovered rom the exhaust and put to

use or heating, cooling, or industrial processes.

n se bne ( bck-ee e bne).

These are used in a majority o power plants across the

United States. In these turbines, water is pressurized,

heated by a burning uel, and converted to steam, which

is then used to drive a turbine that generates power.The steam turbine was the earliest prime mover used

in large-scale power generation, dating back to the late

1800s. In a CHP system, any exhaust steam let ater the

power-generation step can be put to productive use, as

described above.

n reccng engne. Such engines are used in most

motor vehicles, and the technology has signicantly

improved in electrical eciencies over the past ew

decades. The engines have a combustion chamber inwhich uel is burned. The combustion pushes a piston

that drives a crankshat to generate power. Heat can

be recovered rom the exhaust and jacket water and

put to use.

n Fe ce. Fuel cells electrochemically convert uel to

generate electricity. Typically this involves the combining

o hydrogen and oxygen. A ossil uel, such as natural gas,

can be chemically reormed to produce hydrogen. Heat

generated during the uel cells electrochemical reaction

can be recovered or certain uses, such as heating water.

n mcbne. These are essentially small gas turbines

that employ modied processes and structures to generatepower and heat.

thE FivE KEy tEChNoloGiEs DEployED iN ComBiNED

hEat powEr systEms

CHP temga tbie (cete), ith hot gae headig to heat ecove team geeato (ight).


20/33

paGE 20

|Cbned he nd pe se

OVErVIEw: Ao lie, a idtia ad aciit i

Boo, ne yo, itaed to 150-w ecipocatig

egie i 2003 to edce eeg expedite. lie othe

adie, Ao lie high demad o eecticit ad hot

ate mae it a idea t o CHP. I act, the aciit e

appoximate 100,000 gao o ate heated to 160F eve

da. with a ovea eciec eachig moe tha 80 pecet,

the CHP ha eted i aa eeg avig o $120,000.I additio, the o-ite geeatio ha iceaed the aciit

eeg ecit, aoig it to emai i opeatio 14 ho a

da, 6 da a ee.

sECTOr: ladie



FuEl: nata ga

MAnuFACTurEr: Coat Iteige

CAPACITy: 300 w

InsTAllED COsT: n/AOVErAll EFFICIEnCy: > 50%




a lnen s C. Boo, ny18

Source:CDH Eeg Cop., Arrow Linen, Poject Poe, 2010, avaiabe at

http://cdhg1.e.opehotig.com/Fact%20sheet/Ao%20lie%20

CHP%20site%20Fact%20sheet.pd

OVErVIEw: The Hito ne yo i the aget hote i ne

yo Cit. The 46-to bidig hoe abot 2,000 get

oom p othe aciitie ad ha. The eectica demad

aveage moe tha 3 Mw aog ith igicat thema

heat oad. I the mme o 2007, a 200-w phophoic-

acid e ce CHP tem a itaed, hich povide

abot 6 pecet o the eecticit ad 8 pecet o the heatig

eed. A e ce tem a od to be attactive i thiba ettig becae it doe ot ceate vibatio, oie,

o viibe exhat. The hote aticipate edcig it aa

cabo ootpit b abot 800 to a ea, i additio to

nOX emiio edctio o ea 3 to pe ea. A eeg

ca accot o moe tha 6 pecet o a hote opeatig

cot, the CHP tem cotibte to moe tha $80,000

i aa avig. I additio, the tem coe vaabe

eiabiit a it ca opeate idepedet o the

gid i emegecie.

sECTOr: Hote, eot


TECHnOlOGy: Fe ce

FuEl: nata ga

MAnuFACTurEr: uTC Poe (o CeaEdge Poe)

CAPACITy: 200 w

InsTAllED COsT: n/A

OVErAll EFFICIEnCy: > 50%




n reiabiit

hn Ne yk ne yo, ny17

Source:ne yo state Eeg reeach ad Deveopmet Athoit, Hilton New

York Fuel Cell Provides Electricity and DHW, avaiabe at http://cdhg1.e.

opehotig.com/Fact%20sheet/Hito%20ne%20yo%20Fact%20sheet.pd

(acceed Mach 2013).


21/33

paGE 21

|Cbned he nd pe se

Newer prime-mover technologies are nding greater use in

the marketplace as well. One o these is the Organic Rankine

Cycle engine, which works on a principle similar to that o

a steam turbine but usually uses a fuid other than water. It

is oten used in waste-energy recovery systems where low-

grade heat, such as low-pressure steam, is available. Another

emerging CHP technology is the Stirling engine.35

Prime movers orm the core o a CHP system. Auxiliary

technologies that are typically used include heat recovery

steam generators to capture heat and use it benecially,absorption chillers that utilize thermal energy to provide

cooling, and desiccant dehumidication systems.36 Other

technology can also be added on, such as selective catalytic

reduction to reduce NOXemissions (by up to 90 percent rom

gas turbine exhaust), but this may reduce eciencies.

A variety o uels can be used in CHP systems, including

natural gas, biogas, landll gas, coal, biomass, waste

products, and exhaust gas.

A summary o the key CHP technologies along with their

advantages, constraints, industry suitability, and economics,

is given in table 2.37

Schematics o how some o these prime-mover andauxiliary technologies can be congured are shown in

gure 4.

tbe 2: pe me tecnge nd te Ccec

adnge Cnn

sbe

nde

C

Capita cot ($/w) +

O&M cot ($/wh)

oe

ecenc

G bne

(500 w to

350 Mw)

Low emissions

High reliability

No cooling required

High-grade heat

avaiabe

Poor efciency at

o oad

Output falls as ambient

tempeate ie

Requires high-pressure

ga o i-hoe ga

compeo

Chemicals

District energy

Food processing

Oil recovery

Paper/pulp

Rening

Universities

Waste

teatmet

$1,000 to $1,300 /w

+

0.5 to 1 cet/wh

75% to

85%

se bne

(500 w to

350 Mw)

High overall efciency

High reliability

Flexible fuel usage

Long working life

Variable power-heat ratio

Can meet more

tha oe heat-gade

eqiemet

Slow start up

Cannot attain high

poe-heat atio

Agriculture

Ethanol plants

Lumber mills

Paper/pulp

Primary metals

Rening

$400 to $1,100 /w

+

< 0.5 cet/wh

85% to

90%

reccng

engne

(100 w to

5 Mw)

Low investment cost

High power efciency

Good load following

capabiit

Fast start-up

Easy maintenance

High maintenance costs

Relatively high

emiio

Cooling required

Limited to lower-

tempeate appicatio

Loud (low-pitch)

oie

Chemical

poceig

Dairy farms

Data centers

Food processing

Health care

Ofce buildings

Universities

Water treatment

$1,100 to $2,200 /w

+

1 to 2 cet/wh

75% to

90%

Fe ce

(1 w to

1,200 w)

Low emissions

High efciency

Low noise

Modular design

High costs

Fuels require processing

Low durability

Low power density

Backup/portable

poe

Distributed

geeatio

Material

hadig

Residential

Transportation

$5,000 to $6,500 /w

+

3 to 4 cet/wh

60% to

90%

mcbne

(30 w to

400 w)

Low emissions

No cooling required

Compact size

High costs

Relatively low efciency

Limited to lower-

tempeate appicatio

Education

Health care

Lodging

Ofce buildings

Residential

Warehousing

$2,400 to $3,000 /w

+

1 to 2.5 cet/wh

70% to

85%

larGE-sCalE

sma

ll-sCalE


22/33

paGE 22

|Cbned he nd pe se

POWER

FUEL

NATURAL

GAS

EITHER/OR

FUEL

USEFUL HEAT

(STEAMMED/

HIGH PRESSURE)

CONVENTIONAL CHP SYSTEMS

FUEL SPECIFICALLY BURNED

TO PROVIDE POWER AND HEAT

WASTE ENERGY RECOVERY SYSTEMS

FUEL FIRST BURNED FOR INDUSTRIAL

PROCESS, THEN WASTE ENERGY USED

TO PROVIDE POWER AND HEAT

CONVENTIONAL CHP SYSTEM WASTE ENERGY RECOVERY SYSTEM

GAS

TURBINE

POWER

(ADDITIONAL)

USEFUL HEAT

(STEAM

LOW PRESSURE)

STEAM

TURBINE

POWER

USEFUL

HEAT

(STEAM)

WASTED HEAT AND/OR

OTHER WASTED ENERGY

STEAM

TURBINE

HEAT RECOVERY

STEAM

GENERATOR

HEAT RECOVERY

STEAM

GENERATOR

INDUSTRIAL

PROCESS

Fge 4: scec Chp se

FineyButteregiona

landf

recipocatig egie pime move.


23/33

paGE 23

|Cbned he nd pe se

OVErVIEw: Co-Op Cit i oe o the aget hoig coopeative i the od ad

the aget eidetia deveopmet i the uited state. It i ocated i the Box

(otheate ne yo Cit) ad cove 330 ace. wee it to be coideed a

epaate micipait, it od a a the teth-aget cit i ne yo state.

It boat moe tha 14,000 apatmet it, 35 high-ie bidig, eve cte

o to hoe, eight paig gaage, thee hoppig cete, a high choo, to

midde choo, ad thee gade choo. Co-Op Cit i poeed b a 40-Mw CHP

tem that tiize both ga tbie ad team tbie. The CHP tem povide

Co-Op Cit etie eidetia eecticit eed ad a potio o it pace-heatig

eed. Exce poe ca be expoted to Cooidated Edio gid. The CHP tem

eabed miio o doa o eeg cot avig, ome o hich ee appied to

aade ad ido pgade. The tem i ao ceta to Co-Op Cit poe

eiabiit. I act, ate Hicae sad batteed the Eat Coat egio i ate Octobe2012, Co-Op Cit ight did ot bi.

sECTOr: Mtiami hoig


TECHnOlOGy: Ga tbie,

team tbie

FuEl: nata ga

MAnuFACTurEr: sieme

CAPACITy: 40 Mw

InsTAllED COsT: n/A


EnErGy sAVInGs: Ma miio

o doa pe earEPOrTED PAyBACk: n/A

OTHEr BEnEFITs:n reiabiit (povide poe

i abece o gid)

C-o C Box, ny19

Source:leo Fom whee The light staed O Dig sad, Forbes, Octobe 2012, avaiabe at http://.obe.com/ite/iiampetad/2012/10/31/hee-the-

ight-taed-o-dig-hicae-ad/; ne yo state Eeg reeach Deveopmet Athoit, DG/CHP Itegated Data stem, avaiabe at http://chp.eda.og/

aciitie/detai.cm?Faciit=167 (acceed Mach 2013).


24/33

paGE 24

|Cbned he nd pe se

OVErVIEw: Dive b it eeg eciec ad taiabiit

goa, roge Gade, a detiatio home ad gade toe

i Oage Cot, Caioia, itaed thee e-ce CHP

tem to povide 15 w o poe o the aciit, i Je

2012. The itaatio a the et o coaboatio betee

the etai cete ad CeaEdge Poe, a maacte o

caabe e-ce tem o o-ite poe geeatio.

The CHP tem povide heat ad eectica poe tothe eve-ace aciit p ma othe beet, icdig

moe tha $6,500 i et poject eeg-bi avig pe ea,

geate coto ove the aciit eeg e, ad iceaed

eiabiit. I additio, the tem ha edced the cete

aa geehoe ga emiio b 41 pecet ad e

comptio b 38 pecet.

FInAnCInG AnD InCEnTIVEs: The itaatio o the tem

a pat o a poject ppoted b the u.s. DOE Oce o

Eeg Eciec ad reeabe Eeg to acceeate the

e o e-ce techoogie i a vaiet o idtie. The

DOE Pacic nothet natioa laboato i ao be

aazig the tem peomace to ee the pojected

beet ae achieved.

sECTOr: retai cete


TECHnOlOGy: Fe-ce

FuEl: nata ga

MAnuFACTurEr: CeaEdge Poe

CAPACITy: 15 w

InsTAllED COsT: n/A





rge Gden Cooa De Ma, CA21

Source:CeaEdge Poe, roge Gade Pate ith CeaEdge Poe

to sppot Eviometa staiabe Bie Pactice, Business Wire,

Je 7, 2012, avaiabe at http://.maetatch.com/to/oge-gade-

pate-ith-ceaedge-poe-to-ppot-eviometa-taiabe-bie-

pactice-2012-06-07; pdated iomatio povided b CeaEdge Poe i emai

coepodece ith nrDC, Mach 2013.

OVErVIEw: I 2007, the oe o the icoic Taameica

Pamid Bidig i sa Facico itaed to 500-w

ata ga-ed ecipocatig egie. CHP povide the

48-to bidig, hich hoe oce ad etai pace,

ith 100 pecet o it team demad, ad 71 pecet o

it eectica demad. The vat majoit o thema eeg

podced i ed to poe the maive 320-to capacit yo

chie. At a itaed cot o $3.4 miio, the poject had a

epoted pabac o e tha ve ea.

FInAnCInG AnD InCEnTIVEs: The Caioia Pbic utiit

Commiio se-Geeatig Icetive Pogam paid o

13 pecet o the capita cot.

sECTOr: Oce bidig

OPErATIOn sTArT: 2007TECHnOlOGy: recipocatig egie

FuEl: nata ga

MAnuFACTurErs: GE, yo

CAPACITy: 1 Mw



EnErGy sAVInGs: n/A


OTHEr BEnEFITs:n redced eiace o the gid

tnec pd Bdng sa Facico, CA20

Source:u.s. Depatmet o Eeg, Pacic Cea Eeg Appicatio Cete,

Transamerica Pyramid Building, Poject Poe, novembe 2010, avaiabe at http://

.pacicceaeeg.og/PrOJECTPrOFIlEs/pd/Pamid%20Bidig.pd.

TanameicaPyamidBuiding


25/33

paGE 25

|Cbned he nd pe se

As alluded to previously in the report, beore considering

the use o CHP systems, acilities must make certain that all

existing electrical and thermal loads and processes are as

ecient as possible. This will ensure that CHP systems arenot larger and more expensive than necessary.

While an up-ront investment is required to install a CHP

system, energy cost savings provided by the system can pay

back the investment over time. The economics o a CHP

system depend on site-specic conditions and can vary

widely. However, where site conditions are conducive and

when congured and operated optimally, CHP systems can

provide signicant energy and cost savings, along with other

benets as discussed previously.

ovErall opEratioNal EFFiCiENCy

DEtErmiNEs thE ECoNomiCs oF a

Chp systEm

Beore a discussion o nancial details, one should be aware

o several attributes that are essential or ecient and cost-

eective CHP systems:

n Ceen e nd eecc need. As

CHP systems generate power and thermal energy

simultaneously, a acility (or group o acilities or a small

region) with a roughly stable mix o coincident electricity

and thermal needs, daily and seasonally, could capitalize

on a CHP systems unique advantages to the largest extent.

ECoNomiC aNalysis oF ComBiNED hEat

aND powEr tEChNoloGiEs38

OVErVIEw: A a ditict eeg tem, TECO povide thema eeg (chied ate

ad team) o ai-coditioig, heatig, ad poce eed to the itittio i the

Texa Medica Cetethe aget medica cete i the od. statig opeatio i

2010, TECO 48-Mw CHP pat a deiged to meet the medica cete goig

eed ith iceaed eiabiit, eviometa epoibiit, ad eeg eciec.

Depite ecod eectic demad, TECO ha bee abe to meet 100 pecet o it pea

eecticit eed ad 100 pecet o TECO ctome pea chied-ate ad team

oad. The CHP tem ca ao povide itepted emegec poe to the

etie aciit i the evet o a pooged gid otage. The poject impoved the pat

ovea eciec om 42 pecet to moe tha 80 pecet. It i pojected to edce

oi-e comptio b 60 pecet ad to ave the Texa Medica Cete moe

tha $200 miio dig the ext 15 ea. I additio, the CHP tem ha edcedCO2 emiio b moe tha 300,000 to pe ea ad nOX emiio b moe tha

300 to aa.

FInAnCInG AnD InCEnTIVEs:n $10 miio i u.s. DOE dig om the Ameica recove ad

reivetmet Act o 2009n $325 miio i tax exempt bod

sECTOr: Ditict eeg


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurEr: GE

CAPACITy: 48 Mw


OVErAll EFFICIEnCy: > 80%

EnErGy sAVInGs: $200 miio

ove 15 earEPOrTED PAyBACk: n/A

OTHEr BEnEFITs:n reiabiit (48 Mw i bacp

emegec poe)

n redce emiio

te Eneg Cn (tECo) Hoto, TX22

Source:Thema Eeg Copoatio, Combied Heat ad Poe i the Texa Medica Cete, (peetatio), Combied Heat ad Poe wohop, Comb, OH,

Je 20, 2012, avaiabe at http://.pc.ohio.gov/empiba/e/media/CMsFie/webcatreated/155/TECO%20CHP%20-%20io.ppt; u.s. DOE, Eeg

Eciec ad reeabe Eeg, Advaced Maactig Oce, Thermal Energy Corporation Combined Heat and Power Project, 2010, avaiabe at http://1.eee.

eeg.gov/idt/ditibtedeeg/pd/teco_chp.pd.


26/33

paGE 26

|Cbned he nd pe se

n szng ccdng e need. As produced thermal

energy is most eciently used at the acility or locally, it

is best to size and congure a CHP system to meet the

thermal needs o a acility. Systems sized larger than that

can result in wasted thermal energy that detracts rom

overall eciency and energy bill savings. The electricity

generated can be either used at the acility or sold to

the grid.

n lng eng . As with most projects requiring

up-ront investment, a CHP system that can run or longerhours (daily and seasonally) and at high eciency will be

most economic. To acilitate this, CHP systems should be

maintained well and operated in tune with the acilitys

needs.

n Cn e eecc e, k

ed. Spark spread reers to the dierence between

the retail price o electricity and the cost o uelmost

commonly natural gasused by the CHP system. I the

retail price o electricity is high but the cost o the uel and

other services needed to generate electricity using the

CHP system is comparatively low, the economics or CHP

systems will be more avorable.

The detailed nancials will depend on site-specic actors,

such as system size, CHP technology, add-on equipment,

type and price o uel used, environmental compliance, and

maintenance and operations. A typical range o the nancial

details are shown below:39

n Capital cost per kilowatt (kW) o installed capacity:

$1,000 to $3,000. But costs can be higher or smaller

systems, up to $10,000 per kW. Approximately $50 per kW

to 150 per kW in additional investments may be required to

enable a CHP system to perorm independently o the grid.

n Cost per kWh o generated electricity: $0.05 to $0.10.

Usually, more than hal o this gure comes rom uel and

operational costs; hence uel-price volatility has a strong

bearing on the cost o power produced by CHP. The rest

refects the capital cost, which is also an important actor,

and a thermal credit, which is explained later.

n Payback period: three to seven years. This depends mainly

on the capital cost per kW, overall eciency o the system,

and hours o operation. CHP projects can come on line

within one-hal to three years, and the lietime o a CHPsystem can exceed 20 years.40

Some nancial details, organized according to technology,

are shown in table 2.

Figure 5 shows how CHP systems can be cost-eective

compared with other orms o power generation and

average retail electricity rates.41 As CHP systems generate

useul electricity and thermal energy, one justiable and

reasonable way to account or these dual benets is to

apply the value o the useul thermal energy to lower the

eective cost o electricity generated. Figure 5 illustrates

this by the application o a thermal credit to the cost o

delivered electricity. By doing so, large CHP systems in Ohio,or example, can compete even with the low retail prices or

power available to large users.

Similarly, medium-size CHP systems can be cost-eective

or certain commercial users. Smaller CHP systems may

not be directly cost-eective in all cases but could have

other benets that still make them attractive in particular

instances. In New Jersey, where electricity rates are higher,

the economics are even more avorable or CHP.42

OVErVIEw: Baptit Medica Cete i a ba hopita ith appoximate 620 bed

ad moe tha 3,000 empoee. I 1991, the hopita itaed a 4.3-Mw ata ga

tbie. sice the cete ecet expaio, the CHP tem i capabe o meetig

60 pecet o the aciit eectica eed, 80 pecet o it team eed, ad 30

pecet o it cooig eed. The CHP tem ha geeated aveage eeg avig

o $800,000 pe ea, etig i a impe pabac peiod o 6.3 ea o the $4.2

miio itaed cot. (savig have bee oe dig peiod o oe ata ga

pice.) I additio, the CHP tem eve a bacp emegec poe o the

medica cete. I act, he Hicae katia caed the gid to go do o 52

ho begiig o Agt 29, 2005, the medica cete emaied opeatioa.

sECTOr: Heath cae


TECHnOlOGy: Ga tbie

FuEl: nata ga

MAnuFACTurErs: soa Tbie,

yo, Tae

CAPACITy: 4.3 Mw


OVErAll EFFICIEnCy: n/AEnErGy sAVInGs: $800,000/ea

(deped o ata ga pice)


OTHEr BEnEFITs:n reiabiit (bacp

emegec poe)

B medc Cene Jaco, Ms23

Source:B.k. Hodge ad l. Chama, CHP (Cooig, Heatig, ad Poe) at the Miiippi Baptit Medica Cete, sotheat CHP Appicatio Cete, 2007,

avaiabe at http://gcoatceaeeg.og/Pota/24/Evet/Hicae_2006/MiiippiBaptitMemoiaHopita.pd.


27/33

paGE 27

|Cbned he nd pe se

Fge 5: se ae C-Cee n ind nd Cec sec

CHP AND WER AVERAGE GRID POWER SOME INDIVIDUAL SOURCES

Thermal Credit

Transmission

and Distribution

Fuel

Operations andMaintenance

Capital

Costofdeliveredelectricity(cents

/kWh)

16

14

12

10

8

6

4

2

0

SmallCHP

MediumCHP

LargeCHP

Wasteenergydiscovery

Energyefficiency

Pulverizedcoal

NGcombinedcycle

Wind

UtilityscalePV

Industrialretail

Largecommercialretail

OVErVIEw: Beoit Memoia Hopita i a 340,000-qae-oot aciit i Beoit,

wicoi, ith appoximate 190 bed. Cooted b the eed to pgade it

eectica ditibtio tem, the hopita itaed a 3-Mw CHP tem i 2000 at

a cot o $1.2 miio. The CHP tem povide the hopita ith 1.5 Mw o poe,

ad the additioa 1.5 Mw i od to the oca tiit, Aiat. I additio, the CHP

povide heatig, cooig, ad hot ate to the etie aciit. The Faiba Moe

egie ae pecia deiged to povide the aciit ith bacp emegec poe

i the evet o gid aie; the ae da-e egie capabe o ig o diee e

o at tat-p, athogh the ae oma opeated o ata ga o geate oveapeomace. with a ovea eeg eciec o ea 70 pecet, the tem ha

aa eeg avig o $223,000 ad a epoted pabac o 5.4 ea.

FInAnCInG AnD InCEnTIVEs: Aiat pat aced the poject ith a o-iteet

ate.

sECTOr: Heath cae



FuEl: nata ga, diee

MAnuFACTurEr: Faiba Moe

CAPACITy: 3 Mw


OVErAll EFFICIEnCy: 69.8%



OTHEr BEnEFITs:n reiabiit (bacp

emegec poe)

n sae o eecticit

Be me h Beoit, wI24

Source:Ma steve, Beloit Memorial Hospital Case Study or CHP Applications, Midet CHP Appicatio Cete, Ma 2002,

avaiabe at http://.midetceaeeg.og/Achive/eviedoc/pd_competed/2002_Ma_%2520Beoit_Hopita_siterepot.pd.


28/33

paGE 28

|Cbned he nd pe se

Fne Be regn lnd Boadma, Or25

OVErVIEw: Fie Btte regioa lad eceive

appoximate 500,000 to o micipa oid ate eve

ea. Cet, the ate occpie 80 ace ith a aveage

depth geate tha 100 eet. The aciit itaed a 4.8-Mw

CHP tem to tae advatage o the abdat oce o

ad ga a a e. The CHP tem coect methae ga

om moe tha 80 vetica ad hoizota ad ga e

to poe thee eectica geeato, ad Fie e moe

tha 30 miio wh to the oca tiit, PaciCop, each ea.

Heat om the egie exhat ad om the ate-cooig

tem i capted ad the thema eeg i od to Cacade

speciatie, a eighboig oio ad gaic dehdatio pat.

A a et, Cacade speciatie ha edced it ata ga

comptio b 25 pecet to 30 pecet. Togethe, the

ad ad the dehdatio pat have edced CO2 emiio

b moe tha 15,000 to aa.

sECTOr: ladOPErATIOn sTArT: 2007


FuEl: lad ga/methae

MAnuFACTurEr: Catepia

CAPACITy: 4.8 Mw


OVErAll EFFICIEnCy: 70% to 80%

EnErGy sAVInGs: n/A



n revee team: ae o eecticit ad thema eeg

Source:wahigto state uiveit Exteio Eeg Pogam,

Finley Buttes Regional Landfll, Poject Poe, 2011, avaiabe at

http://.othetceaeeg.og/nChpDoc/Fie%20Btte%20

lad%20to%20Ga%20CHP%20tem%20-%20pp011811.pd.

OVErVIEw: nava statio Geat lae (nsGl) i a

278-bidig miita bae 35 mie oth o Chicago. I 2005,

nsGl pgaded to a CHP tem to achieve the edctio

i eeg comptio madated to a edea aciitie b

the Eeg Poic Act o 2005. The tem o icde

to 5.5-Mw soa Ta 60 combtio tbie ith heat

ecove team geeato, ad to 1.5-Mw bac-pee

team tbie. The CHP tem povide the bae ith 14Mw o eectic poe ad moe tha 100,000 pod pe

ho o high-pee team. I additio, the egie ae

capabe o ig o ata ga o no. 2 e oi, oeig

nsGl fexibiit i e choice ad the abiit to opeate

idepedet o the tiit. The tem ha eted i

igicat emiio edctio om the pevio boie,

hich ed no. 6 e oi.

sECTOr: Miita


TECHnOlOGy: Ga tbie, team tbie

FuEl: nata ga, no. 2 e oiMAnuFACTurEr: soa Tbie

CAPACITy: 14 Mw






N sn Ge lke Geat lae, Il26

Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete,

Naval Station Great Lakes, Poject Poe, Agt 2010, avaiabe at

http://.midetceaeeg.og/poe/PojectPoe/Geatlaenava.pd.

FineyButteregionalandf

Bac ie chematica ho capte o ga om ad (top-ight),ad tae to CHP tem (bottom-et, bac ectage). Cacadespeciatie oio ad gaic dehdatio pat i adjacet.


29/33

paGE 29

|Cbned he nd pe se

OVErVIEw: I Jaa 2010, Coe uiveit bega

opeatio o to ata ga-ed combtio tbie ith

a eectic capacit o 30 Mw. The heat exhat om the

tbie i ecoveed ad ed to podce team o heatig

the camp. Beoe 2010, the camp eied mai o coao team podctio. The CHP itaatio a dive b

Coe eed o eea ad additioa teamig capacit

i it ceta team-geeatig aciit. It ao povide the

additioa beet o impoved tem eiabiit, the abiit

to maage cot, ad edced emiio. A a et o

thi poject, the iveit ha edced it CO2 emiio

b 50,000 to pe ea (20 pecet), it nOX emiio

b 250 to pe ea (55 pecet), ad it e dioxide

(sO2) emiio b 800 to pe ea (55 pecet). Thi

poject, aog ith othe igicat eot ch a the

eviometa beecia lae soce Cooig Poject,

ppot the iveit Cimate Actio Pa, hich aim

to edce Coe et geehoe-ga emiio to zeob the ea 2050.

sECTOr: uiveitie, coege


TECHnOlOGy: Combtio tbie

FuEl: nata ga

MAnuFACTurEr: n/A

CAPACITy: 30 Mw



EnErGy sAVInGs: ~30%



n Bie cotiit paig

n reiabe poe oce

Cne une Ithaca, ny27

Source:lae God, Coe pa heatig pat pgade that i ct geehoe

ga emiio b 20 pecet, Choice Oie, Jaa 18, 2006, avaiabe at

http://.e.coe.ed/toie/ja06/chp.expaio.g.htm.

OVErVIEw: The rochete wateate recamatio Pat

teat p to 24 miio gao o ateate pe da. The

pat e to aaeobic digete to tabiize the dge

beoe the bio-oid ae appied o ad. The oigia CHP

tem a itaed i 1982. I 2002, oe o the egie

a epaced, ooed b the ecod it i 2008. The

aciit pgaded it exitig 0.8-Mw CHP tem to a 2-Mwtem (ea-b, tbochaged, pa-igitio GE waeha

egie) at a cot o $4 miio. The aciit digete

podce appoximate 338,000 cbic eet o 62 pecet

methae bioga eve da, eogh to geeate 650 w o

cotio eectic poe. The jacet ate ad exhat heat

ae capted ad ed to eep the digete at 98F ad to

povide pace heatig thoghot the aciit. The itaatio

ha eted i aa eeg avig o moe tha $650,000

o the Cit o rochete.

sECTOr: wateate teatmet

OPErATIOn sTArT: 1982 (pgade i 2002 ad 2008)TECHnOlOGy: recipocatig egie

FuEl: Bioga, ata ga

MAnuFACTurEr: GE

CAPACITy: 2 Mw



EnErGy sAVInGs: > $650,000/ea



n redced odo

n Emegec bacp poe

n $240,000 eeg ebate

Source:u.s. Depatmet o Eeg, Midet CHP Appicatio Cete,

Rochester Wastewater Reclamation Plant, Poject Poe, avaiabe at

http://.midetceaeeg.og/poe/PojectPoe/rochetewwT.pd

(acceed Mach 2013).

rcee wee recn pn

rochete, Mn28

wikimedia


30/33

paGE 30

|Cbned he nd pe se

OVErVIEw: I 2009, Cave Bothe Famtead Cheee, a

dai am ad cheee acto ocated i wateoo, wicoi,

itaed a 633-w CHP tem ig a GE Jebache

JMC312 egie, hich opeate o aaeobic digete ga

om co mae. The CHP tem aoed the am to

expad capacit b mitigatig pobem aociated ith atedipoa. Pevio, the mae a toed i a ope agoo

that eeaed methae ito the atmophee. B ig digete

ga a e o the CHP, it ha edced emiio eqivaet

to 7,125 to o CO2 pe ea. The eecticit geeated i od

to the wicoi Eectic Poe Compa, ad the ecoveed

heat povide heatig ad hot ate o the am ad

maitai the tempeate o the aaeobic digete. The CHP

tem povide aa eeg avig o p to

Documents

Combined Heat Power IP