The Positive Environmental and Economical Impact of

CHP

CHP Environmental Impact

Background:

CHP

technology

TOTAL OUTPUT = 86%

14% Waste Heat Exhaust at 140C

100% Fuel Input

Simple

Cycle

Combined

Cycle

Trigen

Cycle

28% Electric Power

18% Power (Steam Turbines ) or Sweet

Water

40% Chilled & Hot Water

By capturing and utilizing heat that would

otherwise be wasted from the production of

electricity, CHP systems require less fuel than

equivalent separate heat and power systems to

produce the same amount of energy.

Because less fuel is combusted, greenhouse

gas emissions, such as carbon dioxide (CO2),

as well as criteria air pollutants like nitrogen

oxides (NOx) are reduced.

Reduced

Greenhouse

Gas Emissions

Reduced CO2

Emissions

Output

CO2 emissions output from power and

thermal energy generation:

New cogeneration plants in the USA are subject to an

Environmental Protection Agency (EPA) permit process

designed to meet National Ambient Air Quality Standards

(NAAQS).

Alarming

Increase of

Carbon Dioxide

Emissions

across the

Middle East

Reduced

Nitrogen Oxide

Emissions

Utilizing CHP reduces Nitrogen oxides that:

- are one of the main ingredients

involved in the formation of ground-

level ozone, which can trigger serious

respiratory problems.

- contribute to formation of acid rain.

- contribute to nutrient overload that

deteriorates water quality.

- contribute to global warming (Nitrous

oxide has about 310 times the effect on

global warming than carbon dioxide).

ATMOSPHERIC LIFETIME GAS

50-200 years Carbon dioxide (CO2)

120 years Nitrous Oxide (N2O)

Nearly 70 percent of U.S. greenhouse gas emissions

come from generating electricity and heat (another 20

percent comes from cars), and the estimates of CHP's

potential are dramatic.

CHP Major Role

in reducing

Global

Warming

In December 2008, Oak Ridge National Laboratory estimated that if CHP generated 20 percent of the US nation's power capacity by 2030—Germany, Japan and China have already reached or exceeded that goal, and Denmark generates 50 percent of its power by CHP—the technology would eliminate 848 million tons of carbon dioxide emissions. That's like removing 154 million cars from the road.

Goal: Turn London into the World's Greenest

City with its 7.5 million people.

Strategy: Adopt a radical climate action plan to

cut Carbon Emissions by 60% within 20

Years in the battle against global

warming.

Plan: The plan aims to slash carbon output

by reducing demand and wastage.

Action Plan: A big part of the action plan aims to

switch over one quarter of the city's

power supply from the old and

inefficient national grid to locally-

generated electricity using far more

efficient combined heat and power

plants (CHP).

Case Study:

Applying CHP

for a greener

London

Source: Thomson Reuters 2007

CHP Economical Impact

The high efficiency of CHP technology can result in

energy savings when compared to conventional,

separately purchased power and onsite thermal energy

systems.

Reduced

Energy Costs Dan Reicher, US Assistant Secretary of Energy for Energy Efficiency and Renewables, said in a speech at the House of Commons in the year 2000 that the scale of things in the US makes the energy waste from conventional power stations a big scandal, adding that the two-thirds of fuel energy wasted as discarded heat at large power stations is sufficient to provide all the energy needs of Japan.

72%

generation

losses

Energy Supply Company

CHP Plant

28% power generated

8% (of 28%)

lost in

transmission

only

26%

of the energy consumed

reaches the consumer

100%

energy

units

consumed

Conventional

Utility Plant

14%

Losses after generation

and usable heat

recovery

46% power generated

40% thermal energy

100% energy

units consumed

86%

of the energy consumed

reaches the consumer

CHP can be installed in place of boilers or

chillers in new construction projects, or when

major HVAC equipment needs to be replaced

or updated. Offset Capital

Costs The rapid increase of the air conditioning equipment penetration to the Mediterranean markets has added considerable loads to the electricity networks, which often marginally cover the electricity needs during peak load periods. It is therefore essential to provide alternative solutions to the capacity increase and one of them is the use of absorption chillers for cooling, through CHP systems.

CHP can provide a hedge against unstable energy

prices by allowing the end user to supply its own

power during times when prices for electricity are very

high.

In addition, a CHP system can be configured to

accept a variety of feedstock (e.g., natural gas,

biogas, coal, biomass) for fuel; therefore, a facility

could build in fuel switching capabilities to hedge

against high fuel prices.

Hedge against

Volatile Energy

Prices

(1) Reduction in diesel-, bunker fuel- or coal-

generated electricity consumption would lead to a

decrease in petroleum/coal imports and national

foreign exchange expenditure.

(2) Increased industry competitiveness would improve

economic performance and could lead to an

increase in the national income.

(3) Supporting CHP technologies encourages and

permits active participation of private and public

sectors.

Macroeconomic

Level

Food Industry:

CHP is an appropriate technology for the food industry,

which invariably requires both heat and power in its processes.

Saudi Arabia Economy:

According to a June 2008 report by Facts Global Energy, some

200,000 to 250,000 bbl/d of crude is being burned directly for

power generation in Saudi Arabia. (It is to be noted that most

of the electric load is for thermal applications).

If CHP were in place, Saudi Arabia would be consuming 30%

of this number of barrels (i.e. only 67 thousand bbl/d) to

generate the same equivalent output of electrical and thermal

energy.

This also translates into a better economic situation:

70% of crude oil initially burned for power generation can be

exported => increase of annual export of crude from 6.7 million

bbl/d to 6.85 million bbl/d => Notable yearly increase of

national revenues of around 14 Billion Saudi Riyals.

Macroeconomic

Level