combined heat and power - platts · combined heat and power january 30, 2015 juan fanjul – ge...

Combined Heat and Power

January 30, 2015 Juan Fanjul – GE Distributed Power Shack Hawkins – Polaris Engineering Imagination at work

What is CHP?

© 2014 General Electric Company - All rights reserved © 2014 General Electric Company - All rights reserved

Combined Heat and Power (CHP)

Definition Benefits of CHP Cost savings from higher net

efficiency

Beneficial use of local energy resources

Reduces CO2 emissions

Aids in recovery from grid disturbance

Alleviates T&D congestion

Combined heat and power (CHP) is the concurrent production of electricity and useful thermal energy from a common fuel source.

CHP systems help commercial and industrial businesses, municipalities, and a wide range of institutions get the most out of their plant and transmission and distribution (T&D) investment.

Proven, reliable and cost-effective technology

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• Efficiencies exceeding 95% by capturing and using excess heat

• Same amount of useful energy is produced with less fuel and reduced emissions

CHP provides a maximum degree of operational flexibility at the highest levels of efficiency

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CHP can reduce your fuel consumption by more than 40%


Combined Heat and Power (CHP) Applications

Small (24 GWe, 37%)

Medium (10 GWe, 16%)

Large (30 GWe, 47%)

Size <35 MWe 35 – 100 MWe 100+ MWe Configuration/

cycle

Recip. engines + hot water system, small GTs

fuel cells

GTs and STs with heat extraction

Large combined cycles w/heat extraction

Typical GE product fit

GE gas engines, smaller GE Aero, O&G GTs

GE Aero, 6B/6FA, O&G STs, GE gas engines

GE HDGTs, LMS100, thermal STs

Typical site Large building, campuses, new DH schemes

Industrial/energy parks/ inner city district heat

schemes

Major energy users/large city district heat schemes

Typical owner Utility/ESCO local govt.

hospitals/universities

Industrials municipalities

ESCO

City gov’ts/Stadtwerke ESCOs

large industrials

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Small CHP Applications (<35MWe) Configuration/cycle: Reciprocating engines and hot water system, small GTs, fuel cells

Typical GE product fit:

Reciprocating gas engines, smaller aeroderivative gas turbines, O&G GTs

Typical site: Large buildings, campuses, new distributed heat schemes

Typical owner: Utility/ESCO, local government, hospitals/universities

• More than 9,000 of GE’s cogeneration plants have been delivered around the world with an overall electrical output of ~11,000 MW.

• The GE fleet of gas engines produces in excess of 66 million MWh of electricity and 60 million MWh of heat annually – enough to power about 3.6 million US homes and heat about 5 million US households.

• This deployed fleet also reduces CO2 by 4 million tons – the amount of emissions from about 800,000 US cars per year.

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© 2014 General Electric Company - All rights reserved

Beyond CHP: Trigeneration

Combining CHP with trigeneration creates substantial advantages over traditional cooling methodology …

• Low noise levels • Reduced maintenance

costs • Lower life cycle costs • Improved energy efficiency • Better environmental ratings

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CHP is an application…not a product Design must accommodate system complexity • Balance fluctuations in seasonal

thermal load demand

• Complete understanding of application requirements dictates plant size

• Systems integration of components and configuration to drive resiliency, flexible and reliable operation

• Optimize around financial returns and policy incentives

GE’s application capability and experience spans decades

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Platt’s Caribbean Energy Conference Puerto Rico January 30, 2015

•ENGINEERING •FABRICATION •CONSTRUCTION •COMMISSIONING •OPERATIONS

Role of Integrator

Integrator is More than an EPC Every Facility is Different

Analyze Facility Electrical and Thermal Needs Balance Plant Loads to Maximize Efficiency Select Equipment Analyze Local Fuel Market Understand Local Regulations Present Project Economics to Management

Execute Design and Engineering Phase Execute Procurement and Construction Execute Commissioning/Startup/Operations

Example 1 of a Working CHP Project

Beverage Producer in Caribbean Fuel = LPG (Price and Availability) Diesel Used as Backup 5MW Solar Gas Turbine 80,000 lbs/hr HRSG 9 Month Construction Period

Savings Greater than $1Million/Month Uptime Greater than 97% In Operation Over 1 year


Beverage Producer in Caribbean Fuel = LPG (Price and Availability) Future Provisions for LNG 3MW Recips TriGen (Electricity, Steam, Chilled Water) 12 Month Construction Period

Savings Greater than 50% on Utility Costs


Resort in Caribbean Fuel = LPG (Price and Availability) Future Provisions for LNG 1MW Turbine TriGen (Electricity, Steam, Chilled Water) 3 Month Construction Period

Savings Greater than 50% Compared to Grid Power Alone

CHP Challenges for Industrials

Lots of Confusion within Industrial Management Fuel Selection and Supply CHP Integration/Operations Equipment Selection Regulations

Wide skepticism of CHP Benefits Uncertainty of Oil Prices, Utility Prices, Fuel Prices

Engineering•Fabrication•Construction

Fuel Selection for CHP

Diesel, LPG or LNG - Does it Matter? …. Quick Answer: Not Really!

Efficiency Drives Project Economics Utility Efficiency 30-50% CHP Efficiency 80-90%

Using Same Fuel as Utility – Always Savings Typical Project Savings 40-70% Typical Simple Payout 1-3 years

Opportunities for CHP CHP can provide Stable and Low Cost Power to the Industrial Base Law Makers / Regulators need to promote CHP to keep and attract Industrial Base Utilities can benefit from dispatchable excess generation capacity Opportunities are generally less than 1% of installed base (<100MW for PR).


• Current and forecasted thermal and electrical needs

• Thermal load profile • Power/heat ratio • Energy distribution: flows,

temps, pressures, etc. • Ambient conditions • Operational reliability

requirements • Fuels available and

energy supply • Re-use of existing

infrastructure and components

• CAPEX/OPEX budgets • Targeted ROI or payback • Cash flow analysis • Levelized COE • “Hidden costs” – standby

and other grid charges • Evaluation criteria • Policy economic drivers

and incentives

• Number of thermal off-takers

• Number of electrical off-takers

• Grid interconnection • Network integration • Project financing • Deal structure and

stakeholders • Available space and

footprint

Thinking about a CHP project? Some considerations:

Technical Economic Commercial

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DIF

FER

EN

TIAT

OR

S

• Industrial PG/CHP • Oil & Gas PG/MD • Emergency power • Grid firming TO

P A

PP

S

• Flexible on-demand Power

• Reliable • High availability • Fuel flexibility • Zero water capable • GE jet engine

heritage and experience

• Industrial PG/CHP • Lean gases/

Propane • IPP/Utility

• High electric and

CHP efficiency • Application diversity • Fuel flexibility • Advanced monitoring

& diagnostics

• Industrial PG/CHP • Oil & Gas PG • Mechanical drive • Gas compression

• Fast starting • Fast load acceptance • Maintainability • High BTU/propane • Varying fuel capability • High altitude and

ambient capability

• Industrial PG/CHP • Oil field PG • Rental power

• Higher availability • Longer service

intervals • Increased power

density • Higher efficiency

Jenbacher Waukesha Diesel Aeroderivative

On- and off-grid differentiated products

One of the broadest gas-fired portfolios … 100 kW to 100 MW

18-100 MW 120-9500 kW 119 – 3605 kW 1307 – 2905 kW

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GE’s CHP systems continue to lead the way

More than 11,500 cogeneration units worldwide. Over 20 GW total electrical output.

LM6000 158 Units

LM2500 180 Units

Type 6 3064 Units

Type 4 1685 Units

Type 3 5517 Units

Type 2 930 Units

LM6000

LM2500

Type 2

1836 MW

Type 3 2952 MW

224 MW

7032 MW

Type 6

4691 MW

3865 MW

Type 4

For more information about GE's Distributed Power solutions:

Cincinnati, Ohio, USA One Neumann Way, U120 Cincinnati, OH 45215, USA T +1 713 803 0900

Houston, Texas, USA 1333 West Loop South Ste 1000 Houston, TX 77027, USA T +1 713 803 0900

Jenbach, Austria Aachenseestraße 1-3 6200 Jenbach, Austria T +43 5244 600 0

combined heat and power - platts · combined heat and power january 30, 2015 juan fanjul – ge...

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