1. Becoming DEEP Green with Just One Project: Cogen  Tom Davies – Director Design & Construction, Amherst College  Todd Holland – Energy Manager, Amherst, Mount Holyoke & Smith Colleges

2. The Bottom Line(s)  Reasonable pay-back  Huge CO2 reduction  Fuel flexibility and standby power  But...... Large first cost

3. Why Go Green? Many flavors of climate commitment:  Kyoto Protocol  Clean Air/Cool Planet a.k.a. The New England Governors and Eastern Canadian Premiers’ Climate Change Action Plan  Step It Up  Presidents Climate Commitment a.k.a. American College & University Presidents Climate Commitment

4. Greenhouse gas audit

5. Greenhouse gas model

6. Flavors of climate commitment

7. Many ways to go green – How do they compare?  Purchasing REC’s  Building improvements  Operational changes  Behavioral changes  Cogeneration

8. Offsets, Programs, and Projects

9. Offsets, vs. Projects and Cogen

11. Cogen by the numbers of GHG emissions from fuel for heat and purchased electricity

12. Cogen by the numbers of the energy we buy is electricity of our GHG emissions are from electricity

13. Where does electricity come from?

14. Cogen by the numbers of the energy used to generate electricity is wasted as heat

15. Cogen by the numbers efficiency of the nation’s electric grid overall efficiency of a small cogen system

16. Comparison of conventional systems vs. Cogen  CO2 reduction 7000 tons, 23%  NOx (smog) reduction 27 tons, 60%  SOx (acid rain) reduction 93 tons, 62%

17. OK, you convinced me. So what is this Cogen?  Gas turbine, recip engine, steam turbine  Types of plants where this it works  What’s new: available to smaller campuses

18. Cogen explained:

19. DISTRIBUTION SYSTEM (Eff. = 95%) STEAM TURBINE (Eff. = 42%) BOILER (Efficiency = 83%) CONDENSER 72 Units 22 Units 25 Units 23 Units High Pressure Steam 60 Units 72 Fuel Source units yields:  22 Units of Electricity GENERATOR (Eff. = 92%) 35 Units Electric Efficiency: 30% Conventional Power Plant:

20. 73 Fuel Source units yields:  58 Units of Thermal Energy 73 Units Heat to Campus 58 Units BOILER (Efficiency = 80%) Thermal Efficiency: 80% Conventional Heating Plant:

21. 73 Units Heat to Campus 58 Units BOILER (Efficiency = 80%) Overall Efficiency: 55% 145 Fuel Source units yields:  22 Units of Electricity  58 Units of Thermal Energy DISTRIBUTION SYSTEM (Eff. = 95%) STEAM TURBINE (Eff. = 42%) BOILER (Efficiency = 83%) CONDENSER 72 Units 22 Units 25 Units 23 Units High Pressure Steam 60 Units GENERATOR (Eff. = 92%) Conventional Heat & Power:

22. 100 Fuel Source units yields:  22 units electricity  58 units thermal energy Cogen = Combined Heat & Power: 58 Units Overall Efficiency: 80% GENERATOR (Eff. = 92%) 100 Units 24 Units 22 Units GAS TURBINE (Efficiency = 24%) HEAT RECOVERY STEAM GENERATOR Steam to Campus 76 Units

23. Cogen explained:

24. Cogen configuration  Fuel cost and availability: natural gas, diesel, or both  Year-round or seasonal operation  Are you thermally or electrically rich?  Steam and/or hot water for heat  Summertime heat load  Rate structure

25. The Cogen Solution at Amherst  Solar Saturn dual-fuel gas turbine and HRSG with duct burner  Back-pressure steam turbine  Total capacity 1250 and 500 kW

26. Cogen by numbers: Payback and other cost factors  Initial cost  Operational savings  Simple payback estimates  Volatility in energy costs and what that means for payback  Rising energy prices = good news!

27. Amherst Cogen First Costs  Construction5,200,000  Equipment3,500,000  Soft Costs 600,000  Total Cost9,300,000

28. Payback Calculations  This will be done live off a spreadsheet based on current gas, oil and electricity costs, and the audiences predictions of future gas, oil and electricity costs.

29. Fuel NG#2#6kWhAnnual $/mcfgal Svgs 1$8.10$3.29$3.50$0.14$912,941 2$8.00$3.50 $0.15$936,592 3$9.00$3.50 $0.15$901,706 4$10.00$3.50 $0.15$866,821 5$8.00$3.50 $0.16$1,058,543 6$9.00$3.50 $0.16$1,023,657 7$10.00$3.50 $0.16$988,772 8$8.00$3.50 $0.17$1,180,494 9$9.00$3.50 $0.17$1,145,609 10$10.00$3.50 $0.17$1,110,723 11$11.00$3.50 $0.17$1,075,837

30. Other benefits:  Stand-by power capabilities  Island mode operation  Demand reduction = payments from utility  Diversification of boiler equipment  Reduced reliance on #6 fuel oil

31. Too good to be true?  Equipment availability  The reality of a seller’s market  Schedule volatility  Pricing volatility and change orders  It’s complex, so build a great team

32. Evolution of costs & savings

33. Grid Operator Alphabet Soup  ISO  RMR  FCM1  FCM2  ODR  Translation = $67,000 a year

34. Cogen Team  In-house: D&C, Engineering, Ops, Energy, Administration, Trustees  Consultants: Engineers, Commissioning Agent, Testing, Permitting, Procurement  Vendor: Prime Mover(s) & Subs  Contractor: Builders, Commissioners Become DEEP Green with Just One Project: Cogen

35. The Bottom Line(s)  Reasonable pay-back  Fuel flexibility and standby power  Huge CO2 reduction

36. Resources CHP Application Centers  www.northeastchp.org www.northeastchp.org  www.chpcenterma.org www.chpcenterma.org  www.chpcenterse.org www.chpcenterse.org  www.gulfcoastchp.org www.gulfcoastchp.org  www.chpcentermw.org www.chpcentermw.org  www.intermountainchp.org www.intermountainchp.org  www.chpcenternw.org www.chpcenternw.org  www.chpcenterpr.org www.chpcenterpr.org

37. Discussion Contact info:  Tom – tdavies@amherst.edu  Todd – tholland@fivecolleges.edu