chp and tri generation with reciprocating engine generator … · 2017-05-31 · chp and tri...

One powerful future.

CHP and Tri Generation with Reciprocating

Engine Generator sets.


| CATERPILLAR CONFIDENTIAL: YELLOW

Agenda

• Introduction to CHP & CHP Economics

• Caterpillar Gas Generator sets in CHP Applications

• Cogeneration Basics.

• Tri Generation Basics

• Case Studies

• What to Look For in a CHP Project



Combined Heat & Power

• The simultaneous and

sequential use of power

and heat from the same

fuel source.

• Utilize the heat that

otherwise would have

been wasted.

– Heat

– Hot Water

– Steam



420.6130-42

4242 0.80

38

38

“The simultaneous and sequential use of power and heat from

the same fuel source”

CHP Improved Efficiency



Gas Fuel

Exhaust Gas

860- 930o F

50o F (10o C) above ambient

Ventilation Air

Aftercooler Water

90-130o F

Steam

Hot air

CO2

Power

Manufacturing

District Heating

Desalinization

Drying

Greenhouses

Building

Chilled water

How to Use the Heat?

195-260o F

Jacket Water & OilHot water

Applications

Refineries / Oil

Institutions

(460- 500o C)

(90-127o C)

(32-54o C)



CHP - Independency with Higher EfficiencyCombined Heat and Power (CHP) or Cogeneration

• Decentralized energy

production – energy for onsite

use

• The energy is produced were it

is needed and according to the

consumers needs (power led or

heat led)

• Total resource efficiency of up

to 95 %.

• Independent from outages or

grid problems

• Use of waste heat for heating,

cooling, steam or heat recovery



CCHP – Combined Production of Cool, Heat

and Electrical Power Trigeneration

• Improvement of the CHP

process

• Chillers use the waste

heat of the power plant

• Cooling is done by using

the absorption process

• Longer system operation

time as cooling is

provided in summer



Waste Heat Applications

• High Pressure Steam >15 bar (150 psi)

– Dearator

– BFW Heating

– Air Preheat

• Int. Pressure Steam <15 bar (150 psi)

– Pasteurization

– Sterilization

– Distillation

– Process Temp Control

– Evaporation

– District Heating

– Viscosity Reduction

– Solvent Stripping

– Chilling

– Drying

• Low Pressure Steam < 1 bar (15 psi)

– Deaeration

– Space Heating

– Humidification

– Tank Heating

– Steam Tracing

– Viscosity Control

– Slurry Preheat

– Distillation

– Evaporation

– Degreasing

– Electroplating

– Chilling



Waste Heat Applications

• Hot Water

– HVAC

– Laundry

– Food Processing

– Degreasing (Bath)

– Electroplating

– Immersion Coating

– Printing

– Digester Temp

– Paint Drying

• Warm Water

– Space Heating

– Air Heating

• pulverizers, kilns, dryers

• Air Heating

– Boilers

– Pulverizers

– Kilns (lime, cement, ceramics)

– Dryers (gypsum, grain, lumber)

– Synthetic Fiber

• Chilling (Absorption)

– HVAC (Hospitals, hotels, offices,

factories, casinos)

– Process Control

• Semiconductors

• Pharmaceuticals

• Plastic Injection Molding

• Plastics Recycling

• Extrusion



When Does CHP Makes Sense?

• High electric and/or thermal demands.

• Possible effect of carbon and electricity.

• Extended operating hours.

• Need for emergency/backup systems.

• Ability to export power to the grid.

• Need Reliable and quality power.

• Operate with reduced emissions.

• Standards for energy efficiency

If >50% of available thermal energy can be used on an annual basis, CHP

makes good economic sense



CHP Plants are Economically Driven.

– Power buy, sell or avoid rate $/kWh

– Fuel cost rate $/HHV

– Thermal/Chiller credit $/kW thermal

– Operation & Maintenance Typically 0.7-1.5 cents/kWh

– Carbon Price $23/ton

Economics are based on rate disparity

(spark spread)



US Spark Spread 1967-2009

Source = US DOE Energy Information Administration

Key Market Driver: Spark Spread

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

Year

Avg. Commercial Natural Gas Price Avg. Commercial Retail Electricity Price

Forecast

Spark Spread = CHP Business Case

Forecast Spark Spread

Historical$/1

000ft

3C

en

t kW

-h



CHP Payback versus Electricity & Gas Pricing

1

1.5

2

2.5

3

3.5

4

4.5

$0.07 $0.09 $0.11 $0.13 $0.15 $0.17 $0.19 $0.21

Electricity Price ($/kW-h)

Payb

ack (

Yea

rs)

$4 / MMBtu

$7.5 / MMBtu

$10 / MMBtu

Price of Natural Gas

European

Subsidized CHP

Electricity Rate

Industrial Asia

Electricity Rate

Asia Industrial

Natural Gas Price

European

Industrial Natural

Gas Price

CHP Payback vs. Electricity & Fuel Pricing



Example High Level CalculationSimple costing on Continuous Duty Natural Gas Gen Set

Cost of Utility Electricity ($/kwh) 0.0702$

Demand Charge 0.0476$

Fuel Cost (Per MMBTU) 5.70$

Fuel Consumption per e-kw 8,428

Maintenance Cost per kwh 0.009$

Oil Consumption per kwh 0.003$

Unplanned Maint per kwh 0.005$

Equipment Cost 1,250,000.00$

Installation Cost 700,000.00$

Generator ekw 1,964

Annual Run Hours 6,300.00

Fuel cost per kwh 0.0480

Years in operation 10

Total Cost per KWH (less equipment & Installation) 0.0650$

Cost per kwh (Equipment & Installation) 0.0158$

Total cost per kwh 0.0808$

Btu/hr Recovered 5,438,520.00

Assumed equipment efficiencies 0.80

Cost to utilize 1MMBtu (80%efficient equipment) 7.13$

Avoided Heat Costs per year 195,297.25$

Avoided Electricity Costs per year 457,814.98$

Total Annual Avoided Costs 653,112.23$

Payback Period (years) 2.99

Variable Costs (User Entry)

Calculated items



CHP Key Benefits

• Reduces Energy Costs

• Less GHG emissions.

• Increase efficiency.

• Power quality.

• Backup to your

installation.2.0 MWe

85% 95+% Total Efficiency

~$600 - $800 / kWe Installed



Can you Depend on the Grid?



895MW562 units

1.6G

W1,400 units

4.1GW3,600 units

725MW1000 units

2.9GW4,150 units

7.8G

W5400 units

18GW Gas Genset Capacity in 15 years!



Decades of Experience in CHP

• Since 1960, Caterpillar and its

dealers have provided CHP

solutions to our customers.

CHP packages

Power Modules

Gas Engine Driven Chillers

Ancillary equipment

Switchgear & Controls

Product Support (P&S)



800MW District Heating (France)

> 700MW Greenhouses (Holland)

Durable CHP in Utah, USA

>200,000 hrs in Service!

2MW3x CATERPILLAR

G399



Exhaust Heat Recovery

Steam Generator•5 kW to 7 MW in a single unit

•232o C to 870o C

•Hot water and Steam

Steam Generator



Tri-Generation

Fuel

Natural GasGas Genset

Absorption

Chiller

Heat

Exchanger

Electricity

Chilled Water

Hot Water

INPUT PROCESS OUTPUT

Simultaneous production of electricity heat and cooling from one source.



Tri Generation Could Mean Reduced A/C costs!

• Trigen produces chilled water with absorption chiller @ COP 0.7-1.2.

• You can use this cooling as base load to meet A/C needs.

• If additional cooling is required, electric chillers @COP 4 could be fed by CHP power plant @ 80% efficiency.

Absorb. chiller base load

Additional chilling fed by CHP electric pow er

COP = 1.2

Eff = 80% x 400%= 3.2

Electric chilling only

Eff = (30%) x 400% = 1.2

COP = 4

ECONOMIC ANALYSIS WILL HELP YOU DETERMINE YOUR MOST COST EFFECTIVE OPTIONS!



Gas Engine Combined Heat and Power

Jacket Water

Heat Recovery Module



Gas Engine Combined Heat and Power

Exhaust

Heat Recovery Module

And Silencer



Trigeneration: CNES – Toulouse, France

4 MWe

Warm & chilled water

With steam

Dual effect absorption



Project Information• Tri Generation plant with 2 x G3532 Natural gas gensets

• Cooling for data center, heat for office space and hot water for other processes.

• Trane indirect fired absorption chiller.

• Project commissioned in 2000.

• Plant operates none stop from Nov 1st till March 31st = 3623h/y

Power Requirements

• Electric Power 4.040 kWe

• Heating power 2.900 kWth

• Cooling power 2.600 kWth

• Annual Electricity needs 40 GWhe

• Annual Natural Gas needs 29 GWh

• Heating Grid 4km long @ 95°C

• Cooling Grid 4km long @ 6°C



EngineHigh Temp.

Circuit

Steam boiler

2400kW

Indirect dual effect absorb. Chiller

COP 1.23

Hot water 95C

2900kW

Cold water 6C

2600kW

Electric power

4040kW

500kW

Nat.Gas

11.300kW

170C

System Block Diagram



Key Figures

• Installation time: 7 months

• Investment: 3.8M€

• Total efficiency: 80 %

• System’s kWh availability: 97%

• Extra investment vs. classic CHP: 25%

• CO2 savings: 19.000ton/year

• Less NOx, SO2 and particles.

• No CFCs.

• Pay Back Period: 5 years (w/o subsidies)



Quad Generation

Power + Hot & Chilled Water + CO2

for Soda Bottling/ Greenhouses Applications

Natural Gas

Exhaust Gas

Electric

Power

CO2 Catalyst

Absorption

Chiller

Heat recovery

Modules

CO2

Cooling

Heating

Electricity

CHP Unit

Bottling plant



Heat Recovery Package From Caterpillar

Natural Gas CHP system

2 MW electrical

2.2 MW heat

870 kg/h CO2

Up to 96% Total Efficiency



Using natural gas for

heating and lighting

6MW CHP Power plant with CHP

+ boiler in industrial green houses.

Heat Recovery In Series



VPPGTA(98)-037

CHP System with Supplemental Firing

Provides for significant steam supply variability



LEED Platinum Hospital using CHP



Operation & Maintenance Considerations

• A CHP system will require maintenance.

• A maintenance plan/contract is recommended.

• Seek expertise, a single point of contact that can provide all the required services.

• Accessibility to your CHP installation will facilitate maintenance.

Proper maintenance will help you

maximize availability and savings!



• Geographically

– High electric costs

– Relatively low fuel costs

– Adequate grant/funding levels

– RPS-compliant & voluntary

• Site specific– High electric costs

– Solid load factor

– Coincident thermal and electric load profile

– Available opportunity fuel, ADG, LFG etc

– Site power quality, high reliability requirement

Target Market Attributes



CHP is an Economic Decision based upon:

Electrical power or heat recovery– Some electric power requirements are sized to meet heat

load needs.

– Some system run times are determined by electric load

needs.

Bottom Line:

What is the $ value of the heat recovered

Vs. the cost associated with retrieving and distributing the heat.



Load Profiles

• The electrical and thermal loads of a facility are

functions of time.

• Each particular form of energy needed has it’s own

profile.

• Better understanding of the loads and how they

vary periodically.

• Better than averaging.

• Difficulty is always how to collect the data and

process it to produce accurate results.



Electric Load Profile



Thermal Load Profile



High Level First Look

Start with the obvious deal killers-Fatal Flaw Analysis

– Air quality permitting

– Waste water discharge permitting

– Adequate space

– Adequate facility utilities

• Electrical

• Water

• Fuel

• Waste water




Move to high level feasibility analysis

– Identify and stack $/kW pricing components (running costs)

• Fuel

-Typically biggest cost component

• Capital recovery

• O & M

• Thermal credit




• Thermal Credit

–Understand technology and model specific recoverable heat

–Determine existing boiler efficiency

–Calculate avoided boiler fuel cost

–Convert to cents/kWh




• Roll Up of Stacked Running Costs & Credits (cents/kWh)

Plus Fuel

Plus Capital Recovery

Plus O & M

Less Thermal Credits

Total cents/kWh

• If this beats present retail purchase price, all in, including demand

charges, investigate further.

• Potentially pull in engineer or developer.

• Commission a Feasibility study



Key Evaluation Points

Understand the details of the customers utility costs

• Tariff

• Demand Charge $/kW-Month Peak and off Peak

- Month To Month

- Ratcheted

• Energy Charge cents/kWh Peak and Off Peak

• Standby Charges & Non availability penalties

• Customer Capacity Load Curves

• Existing or Pending CHP Incentives



Utility Energy Charges*

• Utility Charges Customer By Monthly kWh Consumption– Typically Utility Peak Rate

– And Associated Off Peak Rate

Standby Charges*

• For CHP The Utility Will Charge Fee To Have Capacity

“Standing By” If The Customer Plant Is Off Line. In An

Amount Equal To The Customers Plant Capacity.

*In Some Areas These Charges Are Going Away



Sizes and Efficiences

• 100eKW to 4MWe

• Combined Efficiencies above 87%



Focus – Lowest Total Lifecycle Cost in its Class

Lowest Owning Electrical Efficiency

• Top Tier Electrical Efficiency

• Lowest Maintenance & Overhaul Costs

– Low Oil Consumption

– Extended Service Intervals

– Reduced Downtime

• Two Configurations:

– High Efficiency (HE) – Optimized for Fuel Efficiency

– High Response (HR) – Altitude and Ambient Capability Flexibility

G3516H 60Hz

Power (1.0pf, w/o pump) 2,005 kWel

Electrical Efficiency* 44.2% (HR) - 44.4% (HE)

Thermal Efficiency 42.1% (HR) – 41.7% (HE)

Service Interval 2,000 hrs

Major Overhaul 80,000 hrs

Available Frequencies 60Hz & 50Hz

Fuel Natural Gas



G3516H - Maintenance

Maintenance and Overhaul

Number of PM Service Intervals to 80,000 Hrs 40

Total Oil Consumed (Oil Changes + Oil Consumption at Full Load) to 80,000 Hours Liters 51,103

Operational Hours to Top End Overhaul Hours 20,000

Operational Hours to Top In-Frame Overhaul Hours 40,000

Operational Hours to Major Overhaul Hours 80,000

Time Between Oil Changes

Time Between GB Oil Change

Hours

Hours

2,000

4,000

Midlife Oil Consumption g/kwh .122 g/kwh



CAT Modular Power Plant

• Cat® Modular Power Plant – YouTube



Thank You!

Kevin AbkeOhio CAT

(419) [email protected]

chp and tri generation with reciprocating engine generator … · 2017-05-31 · chp and tri...

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