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CHP for Emission Control. In Partnership with the US DOE. Governors’ Ethanol Coalition Meeting June 22, 2004 Madison Wisconsin. Presented By: John J. Cuttica Midwest CHP Application Center www. CHPCenterMW .org. Presentation Outline. FEW Breakout Sessions Why CHP IN Ethanol Plants
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CHP for Emission Control In Partnership with the US DOE Governors’ Ethanol Coalition Meeting June 22, 2004 Madison Wisconsin Presented By: John J. Cuttica Midwest CHP Application Center www.CHPCenterMW.org
Presentation Outline • FEW Breakout Sessions • Why CHP IN Ethanol Plants • CHP, The Concept • CHP, The Business Case • CHP For Emission Control • Further Assistance
FEW Breakout Sessions • Cogeneration (1): Thursday 8:30 to 10:00am • 4 papers being presented • Cogeneration (2): Thursday 10:15 to 11:45 am • Panel Discussion • US Energy Partners - Russell, Kansas Plant • Adkins Energy – Lena, Illinois Plant • Northeast Missouri Grain – City of Macon Missouri • EME Engineering Company • US Environmental Protection Agency
Why CHP Is a Good Fit • Energy Is The Second Largest Cost Of Production for Dry Mill Ethanol Plants • Electric And Steam Demands Are Large And Coincident • Electric And Steam Profiles Are Relatively Flat • Both Thermal And Electric Reliability Are Very Important
Why CHP Is a Good Fit • Operating Hours Are Continuous – 24/7 • Ability To Utilize Fuels Other Than Natural Gas • $aves Energy And Reduces Energy Costs • Hedge Against Unstable Energy Prices • Potential for Emissions Control (VOC Destruction)
What is CHP? • Integrated Energy Supply System • Located At or Near a Building or Facility • Provides All or a Portion of the Electrical Load • Utilizes the Thermal Energy • Process Heat • Heating • Cooling • Drying
Benefits Of CHP High Efficiency, On-Site Generation Means … • Competitiveness • Lower Energy Costs • Better Reliability • Better Power Quality • Environmental • Lower Emissions (including CO2 ) • Conserve Natural Resources • Synergies • Potential Generation Asset • Especially Municipal/Co-ops • Support Grid Infrastructure • Fewer T&D Constraints • Defer Costly Grid Upgrades • Facilitates Deployment of New Clean Energy Technologies
CHP System Cost and Performance * Incremental costs of steam turbine generator and supporting systems only
Gas Turbines • Reciprocating Engines • Steam Turbines Reliable CHP Technologies • Electric Generation Equipment
Reliable CHP Technologies • Heat Recovery Systems • Steam and Hot Water • Exhaust Gases
Voltage • Current • Frequency • Power Other Components • Grid Interconnect: • Isolation Switch • Switchgear • Protection Relays • Synchronizing Equipment • Installation: • Equipment Footprint • Floor Loading • Proximity To HVAC Equipment • Number of Electrical Feeds
CHP Is A Low Technical Risk • Utilize Proven Technologies • Employ Standard Design Practices • Incorporate Good Maintenance Practices
Analysis Done By: Bruce Hedman Energy & Environmental Analysis, Inc Under US EPA CHP Partnership Program CHP Business Case
The Value Equation - Reduced purchased electricity costs + Increased fuel costs + Increased O&M costs + Increased capital expenditure • Displaced capital? • Reliability, other operational savings? • Overall Savings
Gas Turbine CHP – Financial Results * Does not include DDGS drier fuel Operating Savings = $1,012,100
Gas Turbine CHP – Payback Capital Costs = $5,434,000 Payback = 5.4 yrs Capital Costs = $4,980,000 Payback = 4.9 yrs CHP System $5,434,000 - Boiler credit $ 450,000 $4,984,000
Sensitivity to Electric & Natural Gas PricesGas Turbine CHP Natural Gas Price, $/mmBtu
Integrate VOC Destruction With CHP(Techniques Presently Under Evaluation) • Ingest VOC into the Turbine • Technical Challenge With Ethanol Dryer VOC Stream • Destruction Through the Turbine Exhaust • Less of Technical Challenge, More of a Cost Effictiveness Issue
Integrate VOC Destruction With CHP • VOC Stream Destroyed In Plant Boiler • Presently Being Explored By Ethanol Industry • Adding Steam Turbine Small Incremental Cost • Destroy VOC in T/O (recuperated / non-recuperated) • Recover Heat From non-recuperated T/O and Use in Steam Turbine
Integrate VOC Destruction With CHP(Next Steps) • Multi State Pre-Proposal Submitted Under STAC Science RFP (Illinois, Kansas, Minnesota) • Presently Seeking Other Funding Sources to Evaluate & Test the Various Options
CHP – Further Assistance • US EPA Combined Heat & Power Partnership • Launched in 2001 • 138 Partners – 851 MW of Projects Assisted • Voluntary Public-Private Partnership To Help Get CHP Projects Installed • Education, Networking, Resources, Technical Assistance, Recognition • Contact Luis Troche @ 202/343-9442 WWW.epa.gov/chp
CHP – Further Assistance • US DOE Sponsored Application Centers • Midwest CHP Application Center • Serves 8 State Midwest Region • Information, Education, Technical Assistance • Contact: John Cuttica 312/996-4382 WWW.chpcentermw.org • Five Additional Centers Throughout the US