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Cogeneration in the Forest Products Industry January 2008 by Phil Zirngibl

2. What is Cogeneration?. Cogeneration is the production of electrical energy and another form of useful energy, such as heat or steam, through the sequential use of energy. Cogeneration is also often referred to as Combined Heat and Power or CHP".. Source: US DOE. 3. Cogeneration how much

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Cogeneration in the Forest Products Industry January 2008 by Phil Zirngibl

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    1. 1 Cogeneration in the Forest Products Industry January 2008 by Phil Zirngibl

    2. 2 What is Cogeneration? Cogeneration is the production of electrical energy and another form of useful energy, such as heat or steam, through the sequential use of energy. Cogeneration is also often referred to as Combined Heat and Power or “CHP”.

    3. 3 Cogeneration – how much in the U.S.? CHP generation represents 9% of electricity generation capacity in the US. The Forest Products, Chemical and Oil Refining industries combined represent ~90% of the total CHP generation in the U.S. manufacturing sector. The majority of cogeneration in the Forest Products Industry is from renewable fuels (biomass).

    4. 4 Forest Products Industry Represented primarily by two groups; paper and lumber Meets more than half its energy requirements through highly efficient cogeneration processes. Since 1972: Has increased energy self-sufficiency from 40 to 60% Utilizes nearly 85% renewable resources for onsite generation Reduced total energy usage by 30% Reduced purchased energy by 53%

    5. 5 STG = Steam Turbine mechanically coupled to a Generator GTG = Gas Turbine mechanically coupled to a Generator WHRB = Waste Heat Recovery Boiler Combined Cycle GTG = GTG with a WHRB combined with STG Simple Cycle GTG = Stand alone GTG Heat Rate = Amount of fuel (in btu’s) required to generate one Kwh of electricity. Commonly expressed in btu/kwh. Common Cogeneration Terms

    6. 6 Types of cogeneration in the Forest Product Industry

    7. 7 Cogeneration from Steam Boilers in Forest Products Plants (paper)

    8. 8 Typical Coal-fired utility generation

    9. 9 Typical utility Combined Cycle GTG

    10. 10 Typical Simple Cycle GTG

    11. 11 Typical Heat Rates

    12. 12 Cogeneration – Advantages/Issues Advantages: More efficient than commercial generation despite lack of scale. Potential to increase renewable generation (esp. in Forest Products Industry) Provides a reduction in GHG emissions. Provides advantages of distributed generation (avoids issues w/constrained transmission system). Potential for advantageous tax treatments Continued development supported by provisions of the Energy Independence and Security Act of 2007 Issues: Cogenerated renewable electricity from older installations not valued the same as from newer installations. Cogenerated renewable electricity must be sold to be eligible for Sec 45 Fed Tax Credit. Most recent version of Lieberman-Warner Climate Security Act of 2007 doesn’t recognize value of cogeneration. . . in fact, penalizes facilities with cogeneration.

    13. 13 Green Power Green(Renewable) Power = Brown Power + REC*

    15. 15 U.S. Electricity Generation by Fuel

    16. 16 Renewable Electricity Generation by type

    17. 17 Renewable Electricity Generation from biomass

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