1. Brewery Cogeneration A Cogeneration Solution For A Medium Size Brewery Presented by: Oliver McRae Professor: Xi Lin ME304 – Energy & Thermodynamics Wednesday, October 16 th, 2013

2. Agenda  Background  Project Definition  Data Acquisition, Interpretation & Equipment Selection  Thermal Calculations  Financials  Questions & Feedback 2

3. Background An Overview Of The Energy Sector In Jamaica 3

4. The electricity sector in Jamaica is in dire straits.  Equipment is aging and results in inefficient power generation.  Fuel cost is high.  Energy theft.  Affects many industries:  Healthcare.  Education.  Manufacturing.  Almost all civil services.  Stagnates economic growth. 4

5. Project Definition Crafting An Engineering Solution For High Cost Energy 5

6. Red Stripe suffers financially because of the cost of energy.  Red Stripe Jamaica Limited is the Brewer of the world renowned lager, Red Stripe.  Power comes from the Jamaica Public service Company.  Number six heavy fuel oil (process steam) is purchased from the single local refinery PetroJam.  High electricity and process steam requirements. 6

7. Data Acquisition, Interpretation & Equipment Selection An Examination Of Electrical Demand Requirements & How To Meet It 7

8. Data from the SCADA system was extracted and examined. 8 Red Stripe Energy Requirements Electricity HFO 1,466,282 kWh/MonthTotal Steam 24,069,189 kg/year 17,595,382 kWh/YearTotal Fuel 2,358,095 liters/year 7,266,076,727 Btu/month 87,192,920,720 Btu/year

9. Two 1.131MW gensets are needed based on the energy requirements. 9 Electricity Mean Power Requirement2,007.2 kW Max Available2,262.0 kW Propane Air mixer60.0 kW Required17,595.4 MWh Required with mixer18,121.3 MWh Max Available19,828.7 MWh Capacity Factor95 % Max Available with cap18,837 MWh Average Genset load96.2 % Efficiency41.5 % Fuel required for electricity148,994,181,758 Btu/year

10. The GE Jenbacher JMS 416 is selected because it meets the requirements. 10 Electrical output1131 kW Recoverable Thermal output 120C1155 kW Energy input2636 kW Fuel consumption277 m3/hr Electrical efficiency42.9 % Thermal efficiency43.8 % Total efficiency86.7 % Exhaust gas mass flow rate, wet5,993 kg/hr Exhaust gas volume, wet4,734 m3/hr

11. Thermal Calculations The Determination Of The Amount Of Process Steam Available From The Engine 11

12. Calculating steam enthalpy. 12 Steam Enthalpy Water Steam 95C175.4C, 9 bar Enthalpy398,102 J/kg2,773,900 J/kg Enthalpy Difference 2,375,798J/kg Enthalpy Change Required 2251.8Btu/kg Boiler Efficiency 84% 2680.7Btu/kg Yearly Steam Demand 32525684.8kg Mean Hourly Steam Demand 3710.4kg/hr Actual Mean Hourly Steam Demand 2745.7 kg/hr

13. Calculating enthalpy of incoming and outgoing exhaust gas. 13 Exhaust Gas Enthalpy Temperature (K)OxygenCO2Nitrogen 5%17%78%Composition 66319,97325,31419,476Molar Enthalpy 1 36810,75412,07410,709Molar Enthalpy 2 32.044.0128.01Molar Mass 663624.2575.2695.3 Exhaust Enthalpy 1, Parts 368336.1274.3382.3 Exhaust Enthalpy 2, Parts 66331.297.8542.4Part Enthalpy 1 36816.846.6298.2Part Enthalpy 2 663 671.3kJ/kgExhaust Enthalpy 1 368 361.7kJ/kgExhaust Enthalpy 2

14. Energy rate balance. 14 The following formula was used to calculate the available saturated steam at the required pressure of 9 bar.

15. Allocating both engine available steam and additional steam. 15 Primary Heat Exchanger Process Streams Exhaust Gas Water/Steam Mass Flow RateTemperatureEnthalpy Mass Flow RateTemperatureEnthalpy Incoming11530663671.31503368398.1 Outgoing11530368361.715034492773.9 Process Steam Available from engine1503kg/hr Additional Fuel for Steam 84% efficiency3,331,476Btu/hr Additional Steam required1243kg/hr 29,203,718,954Btu/year Total fuel required178,197,900,712 Btu

16. Financials The Confirmation Of The Quality Of This Investment 16

17. Financial metrics validate the undertaking of the project.  CAPEX @ Year 0 ~$401,000,000  IRR Using Future Cash Flows = 83.8%  Savings increase yearly.  Payback happens within two years. 17

18. Current charges in Jamaica. 18 Current Electricity per year17,595,382kWh Elec Cost per Kwh$34.88JMD Total Elec Cost613,814,481JMD HFO energy content36,976Btu/L Liters of HFO2358095Liters HFO Cost per liter$76.34JMD HFO Cost$180,016,972JMD Total Energy Cost$793,831,453JMD

19. Projected Project fuel costs in Jamaica. 19 Propane Energy content24,225Btu/L Fuel required7,355,950Liters Cost per Liter$48.00JMD Total Fuel Cost353,085,624JMD Total Energy Costs Prime Power398,909,361JMD

20. Project experiences payback in 15 months with a strong IRR. 20 YearYear 0Year 1Year 2 Fuel $0$264,814,218$367,209,049 O&M $0$34,367,803$47,198,449 Expected Expenditure using current procurement $0$793,831,453$817,646,397 Capital Outlay $400,886,720$0 Money Paid to Utility $0$198,457,863$23,031,475 Operating Savings -$400,886,720$296,191,569$380,207,424 Total Cost for Year $400,886,720$497,639,884$437,438,973 Net Cash Flow -$400,886,720$296,191,569$380,207,424 Net Internal Rate of return 83.8 % Payback Period 15.3months *Abbreviated from 6 years

21. Next Steps Acquire More Data From Red Stripe Get More Accurate Data From Manufacturers & Model System With Additional Equipment (eg. Steam Accumulator) Add More Variables To Increase Accuracy Investigate Grid Tie Solution Implementation 21

22. Questions & Feedback 22