on-site energy generation: cutting-edge solutions for efficiency … · 2017-11-08 · power...

ON-SITE ENERGY GENERATION: CUTTING-EDGE SOLUTIONS FOR EFFICIENCY AND RESILIENCY

SESSION SPONSOR: Moderator: Jacob Policzer, The Cannabis Conservancy Panelists: Tim Hade, Scale Microgrid Solutions Jim Kelly, Cultivated Power Mike Ashley, MWBattery

On-Site Energy Generation Tim Hade

Scale Microgrid Solutions, Inc.

Why We’re Here – Part 1

Why We’re Here – Part 2

“These facilities use more energy per square foot than anything other than maybe a few in industrial processing. It blows away hospitals, laboratories...it might be on par with extreme data processing centers, like a Google or a Facebook.”

- Fran Boucher, National Grid

The Cannabis Industry has an Energy Problem

The Cannabis Industry has a Solvable Energy Problem

Demand Side

Solving the Problem Supply Side

Supply Side Status Quo

Colorado’s Supply Side

Option A

Option B

Contact Info

Email: info@scalemicrogridsolutions.com

Web: www.scalemicrogridsolutions.com

Twitter: @scalemicrogrids

Sustainability through Power Jim Kelly

Cultivated Power Inc.

Category10MWCHP

10MWPV

10MWWind

10MWGeothermal

10MWFuelCell

10MWSolar

Thermal

10MWBatteryStorage

CapitalCosts $15M $26.5M $20M $60M $70M $51M $50M

AnnualCapacityFactor % 85% 25% 34% 90% 95% 80% 40%

AnnualElectricity MWh 74,460 21,900 29,784 78,840 83,220 70,080 35,040

AnnualUsefulHeatProvided MWht 103,400 NA NA NA 57,925 NA1 NA

FootprintRequired Ft.2 6,000 1,740,000 76,000 200,000 5,000 1,148,400 20,000

AnnualCO2Saving,Tons Tons 42,750 24,140 32,831 86,905 91,733 77,249 38,624

LevelizedCostofElectricity ¢/kWh 6.0 8.0 7.5 11.0 12.0 10.0 20.02

1 Additional Arrays added for thermal power2 Dependant on Cost of Charging Power Source

Renewable / CHP Power Metrics

1.  Additional arrays can be added for thermal power 2.  Dependent on cost of Charging Power Source 3.  NREL – 2016 data

CHP for Cannabis • Reduced Energy and Operating Costs

• On-Site Power

• Waste Heat Capture / Reuse

• High level of Environmental Control

• Additional Sustainability Benefits • Sequestration of CO2 for grow environment • Generation of New Water, Lower Water usage plus Full Recapture

Sustainable Benefits of Waste Heat Recapture • Thermal powered chillers – 90% reduction in electricity used

• Waste Heat utilized to provide Heat • Radiant floors

• Forced Air

• No need for natural gas boilers or unit heaters

• Thermal powered Dehumidification • Uses 80% Less Electricity

Tri-Gen plus CO2

Electricity,Cooling,Heat(plusDeHu),CO2CaptureandUseEfficiency>90%

Impact of CHP and CO2 Capture on Greenhouse Gases

Additional Sustainable Benefits • Engine exhaust is condensed to capture H2O during CO2 process

• Proprietary thermal water treatment to replace Reverse Osmosis • 95% yield vs. 35% (single pass) for RO • Lower electrical usage

• Dehumidification process recaptures H2O

• Thermal DeHu filters the air while killing pathogens

• Closed loop systems limits both bugs and pathogens

Capital Costs offset by Operating Costs 39,000Ft2Indoor,SeaofGreen,HPS-Plasma

0

1,000

2,000

3,000

Electric CHP

CapitalCosts

NGGenerator Chillers

AirHandlers DeHu/Heat

AddiNonalElectricService CO2

-

1,000

Electric CHP

OperaNngCostsEnergy/Maintenance

GenSet Chillers AirHandlers DeHu/Heat CO2

Additional Considerations • Distributed CHP power lost access to ITC at the end of 2016

• Individual states offer significant incentives for distributed CHP

• CA – Self Generation Incentive Program

• CHP can be combined with other renewable technologies to improve sustainable impact

• Use of batteries improves the overall efficiency a Gen set as they can run at higher efficiency levels and be turned off for periods of battery power

Contact Info

Jim.Kelly@CultivatedPower.net

303.601.5681

Solar Generation + Battery Storage for Cannabis Growers

Mike Ashley MWBattery

Cannabis growers face an electricity problem

MWBattery P O W E R T H R O U G H

A 10,000 sq ft indoor grower can easily spend >$10,000 / month on electricity…

Electricity Other overhead costs

…from kWh used, demand charges, and stress added to the grid

Demand charge: $ / kW of your peak power use

Time of day

Pow

er lo

ad

peak power

Solar + battery storage to cut energy costs, increase resilience, and improve sustainability

MWBattery P O W E R T H R O U G H Image credit: Pioneer Solar; ViZn Energy

Solar to reduce demand from the grid Batteries for anytime clean energy

Solar energy deployment is becoming widespread in the U.S. Solar deployment, U.S.

(Solar Energy Industries Association)

850

MWBattery P O W E R T H R O U G H

15,000

Cap

acity

(meg

awat

ts) d

eplo

yed

2010 2011 2012 2013 2014 2015 2016

•  The technology has matured

•  Streamlined processes and economies of scale have led to significant reductions in manufacturing cost

•  Achieving “grid parity” in many parts of the U.S.

Solar panels take up space; what are your options?

MWBattery P O W E R T H R O U G H

Open land nearby Rooftop Solar carports

Image credit: SolarAlley; Solar Power Authority; NBC Bay Area

10,000 sq ft of solar panels will generate ~25,000 kWh per month

Batteries enable greater use of renewables, “peak shaving,” and provide backup power

MWBattery P O W E R T H R O U G H

Peak shaving to reduce demand charges

Image credit: Alevo Group

Time of day

Charge battery

Use battery

Reliable backup power

•  Disconnect from the grid in the event of power loss

•  A large battery can power a 10,000 sq ft full indoor facility for >24 hours on a single charge

•  Unlike diesel generators, batteries are maintenance-free and do not require consumable fuel

Tradeoffs in battery chemistry

MWBattery P O W E R T H R O U G H

Lithium ion batteries Flow batteries

•  1.25 – 1.5x lower cost per kWh

•  ~Half the physical size per kWh

•  >2x greater lifetime

•  More environmentally friendly materials

Separation of Li+ and electrons Water streams containing (1) zinc and (2) iron compounds “flow” past each other

Incentives and grants reduce the cost of generating your own clean energy

MWBattery P O W E R T H R O U G H

Federal incentives

•  30% investment tax credit on solar

•  30% investment tax credit on battery storage, as long as >75% of energy used comes from solar

•  Sen. Michael Bennet (D-CO) has introduced legislation to include ITC for all energy storage

State incentives (CO)

•  State rebates

•  Renewable Portfolio Standard – CO must be 30% renewable by 2020

•  State sales tax exemption on renewable energy purchase

•  Property tax exemption from increased value due to energy resources

Grants

•  Regularly opening and closing

•  An active grant call: CA dedicated $44MM to the construction of C&I-scale “microgrids”

Some parting thoughts •  On-site clean energy generation is an investment that pays for itself

•  Finite payback period vs. small monthly savings with a lease

•  Federal/state governments and utilities make it easier to install energy resources

•  Reduce dependence on the utility; cord-cutting is possible

•  “Grown using clean energy” as a point of competitive differentiation

MWBattery P O W E R T H R O U G H

ON-SITE ENERGY GENERATION: CUTTING-EDGE SOLUTIONS FOR EFFICIENCY AND RESILIENCY

SESSION SPONSOR: Moderator: Jacob Policzer, The Cannabis Conservancy Panelists: Tim Hade, Scale Microgrid Solutions Jim Kelly, Cultivated Power Mike Ashley, MWBattery