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U.S. EPA’s CHP Partnership:
Supporting CHP in the Midwest
Midwest Cogeneration Association Bimonthly MeetingNovember 28, 2001
Joe BrysonTeam Leader, CHP Partnership, U.S. EPA
OverviewOverview
• CHP is key item on the federal government’s energy/environmental policy radar
• U.S. EPA’s CHP Partnership:EPA-industry initiative to recognize & promote CHP projects and their benefits
• Midwest is leading region targeted for attention– Need your input
Bush’s National Energy PolicyMay 2001Bush’s National Energy PolicyMay 2001
“CHP is environmentally preferred, cost effective, efficient, and reliable.”
• Directs EPA/Treasury to promote CHP– EPA
• at brownfields sites• through flexible permitting• with greater clarity & shortened permitting times
– Treasury• evaluate shortened tax lives or
investment tax credits
National Energy & Environmental ChallengesNational Energy & Environmental Challenges
• Energy Challenges– Reliable– Low-cost– National security
• Environmental Challenges– Human health– Local/regional environment– Global environment
CHP CharacteristicsCHP Characteristics
• Distributed: located where energy is used – Increases reliability– Avoids T/D line losses
• Highly efficient: reduces fuel consumption– Lowers costs ==> increased competitiveness– Less fuel combusted ==> reduced emissions
• Employs waste fuels– Lowers costs– Avoids disposal issues
Efficiency of U.S. Electricity Generation Is Low and StagnantEfficiency of U.S. Electricity Generation Is Low and Stagnant
• Fossil-fired power plants have not improved their efficiency in last four decades: ~32% (before line losses)
• Amount of energy U.S. wastes each year is greater than Japan’s entire annual energy use
• CHP is 60-90% efficient
Large CHP Opportunity Still ExistsLarge CHP Opportunity Still Exists
0
20
40
60
80
100
10 25 50 100 200 300 400 500 1000 >1,000
SaturationOpportunity
%
Steam Draw (1000 lbs/hr)
10MW 1 100
Source: General Electric
Existing : 48 GW Potential: 88 GW
Existing : 48 GW Potential: 88 GW
Chemicals29%
Paper 16%Refining 13%
Food 9%
Metals 5%
Other Industrial
19%
Commercial & Institutional 9%
CHP Opportunity in Industrial Sector
Paper30%
Refining13%
Chemicals11%
Food9%
Metals8%
Other Industrial29%
CHP Opportunity in Commercial & Institutional Sectors CHP Opportunity in Commercial & Institutional Sectors
Colleges29%
District Energy20%Government
13%
Hospitals10%
Water/Waste
8%
Other20%
Source: Onsite Energy
Existing: 5 GW
Education27%
Health Care24%
Office Buildings21%
Food Sales/Service 10%
Lodging7%
Other11%
Potential: 75 GW
U.S. Lags Europe in Realizing CHP OpportunityU.S. Lags Europe in Realizing CHP Opportunity
0% 5% 10% 15% 20% 25% 30% 35% 40%
Denmark
Finland
Netherlands
Czech Republic
Germany
Portugal
Hungary
Italy
Poland
Spain
United States
Sweden
United Kingdom
France
EPA’s CHP PartnershipEPA’s CHP Partnership
Voluntary program to foster accelerated development of CHP projects
EPA-Industry Partnership including-- Industrial, commercial and institutional endusers-- Project developers and equipment suppliers-- Local distribution utilities-- Federal, state, and local policymakers-- Nonprofits
Within Climate Protection Partnerships Division-- ENERGY STAR Label (enduse efficiency)-- New Clean Energy partnerships: CHP & Green Power
EPA’s CHP Partnership: The BasicsEPA’s CHP Partnership: The Basics
• Partners agree to – work with EPA to promote the benefits of CHP and support
development of new projects– report data on existing and newly developed CHP projects– provide input to EPA-developed tools/services– employ tools/services to develop and promote new projects
• EPA will– promote understanding/recognition of CHP benefits– with partner input, develop tools/services to accelerate project
development and recognize partners’ projects
Founding PartnersFounding Partners
Abbott Laboratories
Archer Daniels Midland
Bethlehem Steel
Caterpillar Energy Products Group
Dow Chemical Co.
ExxonMobil
General Motors
International Paper
Real Energy
Solar Turbines
Texaco Power and
Gasification International
Trigen Energy Co.
U.S. Steel
Verizon Communications
Weyerhaeuser
College of New Jersey
NY State Energy R&D
Authority (NYSERDA)
UNC at Chapel Hill
Founding PartnersFounding Partners
• Leading entities, diverse representation– Largest current CHP users: chemical, refining,
steel and paper– Diverse end-users: industrial, commercial, district energy, and
power reliability– Diverse stakeholders: end-users, equipment suppliers, project
developers, and state agencies
• > 5,800 GWs & >10% of U.S. CHP capacity• Annual environmental/energy benefits:
> 8 million tons CO2
> 29,000 tons of NOX
> 19 million barrels of oil
Sample Tools/ServicesSample Tools/Services
• Regulatory/Policy Support– Educate policymakers on CHP benefits and
environmental policies for recognizing them– Permitting handbook and project-specific assistance– Web-based State Best Practices, links, and analysis
• Public Recognition– ENERGY STAR CHP Awards– Ribbon-cutting ceremonies– Press kits
Sample Tools/Services- ContinuedSample Tools/Services- Continued
• Outreach/Education– Web-based partner profiles and case studies– Participation in regional CHP initiatives
• Market Development– Web-based “yellow pages” for service/equipment
providers – State profiles of CHP installations & opportunities
• Technical – Emissions impact calculator
Pilot Initiatives in Target MarketsPilot Initiatives in Target Markets
• Regional markets – NY/Northeast (NYSERDA)– IL/Midwest (Midwest CHP Initiative, MCA)– Texas (TNRCC)
• End-user markets– Small/medium industry (gas/industry trades)– District energy (IDEA)– Hospitals, office buildings, & hotels (ENERGY
STAR label for buildings)
ENERGY STAR Buildings LabelENERGY STAR Buildings Label
• Top 25% within Market Based Upon ENERGY STAR Benchmarking Tool (Btu/sq.-ft.) – Completed: office space, supermarkets and grocery
stores, K-12 schools, and hospitals
– Beta testing: hotels and convenience stores
• http://www.energystar.gov– Click on “Benchmark your building’s energy performance”
ENERGY STAR CHP AwardENERGY STAR CHP Award
• Recognize exceptional CHP facilities
• Requires one year of operating data
• Use 5% less fuel than state-of-the-art separate heat-and-power generation
• http://www.epa.gov/appdstar/news.html
Draft GuidanceSource Determinations for CHPDraft GuidanceSource Determinations for CHP
• Under New Source Review and Title V Programs of the Clean Air Act
• Clarifies treatment of third-party CHP facilities providing energy to host
• 30-day comment period closes 11/14/01
• http://www.epa.gov/ttn/nsr/whatsnew.html
• Reactions to proposed products/activities
• Ideas for new products/activities
• Discussion of what would make a difference in midwestern CHP markets
• Follow-up: Joe Bryson
Team Leader
U.S. EPA’s CHP Partnership(202) 564-9631
Reactions. Input. Ideas.How Can EPA Contribute in Midwest?Reactions. Input. Ideas.How Can EPA Contribute in Midwest?