1. GPAEE November 20, 2014 Combined Heat and Power Overview & CHP Technical Assistance Bill Valentine DOE Mid Atlantic CHP Technical Assistance Partnership wjv3@psu.edu

2. Key services of the CHP Technical Assistance Partnerships include: Market Opportunity Analyses – Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors. Education and Outreach – Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, energy end-users, trade associations and others. Technical Assistance – Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the project development process from initial CHP screening to CHP Technical Assistance Partnerships Promote and assist in transforming the market for CHP, waste heat to power, and CHP district energy technologies and concepts throughout the United States.

3. CHP Technical Assistance Partnerships

4. What is Combined Heat & Power? Form of Distributed Generation (DG) An integrated system Located at or near a building / facility Provides at least a portion of the electrical load and Uses thermal energy for: – Space Heating / Cooling – Process Heating / Cooling – Refrigeration/Dehumidification CHP provides cost-effective, clean and reliable energy – today and for the future. Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_basics.html Slide 4

5. CHP Diagram

6. Over Two Thirds of the Fuel Used to Generate Power in the United States Is Lost as Heat

7. CHP Drivers Benefits of CHP recognized by policymakers – President Obama signed an Executive Order to accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade Favorable outlook for natural gas supply and price in North America Opportunities created by environmental drivers Energy resiliency and critical infrastructure DOE / EPA CHP Report (8/2012) 4/1/14Slide 7

8. CHP Drivers Cost Savings Cost Savings – Offset Utility/3rd Party kWh’s + Therms – Reduce Utility Demand Charges - Demand Response – Improved Power Reliability/Quality Emissions Reductions Emissions Reductions – In the same way that it saves fuel cost, CHP reduces pollution by using the fuel’s energy twice, yielding half to a third of the emissions from separate fossil fuelled grid power and boilers. – Supported by US DOE & US EPA 4/1/14Slide 8

9. CHP Drivers Reliability / Resiliency Reliability / Resiliency – Provides local grid support and improves power quality – Can often be configured to provide emergency power back-up – Natural Gas grid can be more reliable for long term outages National Security National Security – Reduced fossil fuel usage extends US resources and reduces dependence on foreign energy imports – Multiple points of power generation are less subject to catastrophic failure or attack 4/1/14Slide 9

10. Benefits of CHP for U.S. businesses – Reduces energy costs for the user – Reduces risk of electric grid disruptions and enhances energy reliability – Provides stability in the face of uncertain electricity prices Benefits of CHP for the Nation – Improves U.S. manufacturing competitiveness – Offers a low-cost approach to new electricity generation capacity – Provides an immediate path to lower GHG emissions through increased energy efficiency – Lessens the need for new transmission and distribution (T&D) infrastructure and enhances power grid security – Uses abundant clean domestic energy sources – Uses highly skilled American labor and American technology Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf Combined Heat and Power Benefits

11. CHP Case Studies

12. EDED Co-Generation Capacity:(1) 4.5 mW Combustion Turbine Steam heat recovered for all hospital heating needs Produces 60% electrical demand Option for future Steam Turbine Chiller (not installed yet) Premium cost for facility to house CHP Abington Health

13. EDED Utility Operating Cost Prior to Co-Generation: $7 million/yr Net Annual Savings*: $2.25 million/yr Investment Cost:$9.2 million Simple Payback:4.1 Years Financial Incentive (PA Award) $3 million (ACT 129)$3.2 million Abington Health – 4.5 MW CT *Includes Maintenance Cost

14. Five 200kW Capstone micro-turbines packaged in a single container. 300 ton exhaust fired absorption chiller. 5,000 BTU heat exchanger. Facility heating and/or cooling. Expected annual savings of $300,000. Redundant source of electricity. Phoenix Contact Middletown, PA

15. Princeton University The 15 MW CHP plant provides steam and chilled water throughput the campus and is integrated with the wholesale and transmission markets. Provides 100% of heat and hot water requirements and 50% of electrical energy. Through the efficiency of CHP, Princeton has dramatically reduced its fuel use, avoiding over 27,900 metric tons of carbon emissions and making it one of the leading campus energy plants in the country in both efficiency and environmental sustainability. 4/1/14Slide 15

16. Independence Visitor’s Center 6/4/14Slide 16 50,000 sq. ft. facility 75 kW reciprocating engine 20 ton Absorption Chiller Natural gas Roof mounted unit Building LEED certified

17. The Brevoort: Manhattan, NY Residential high rise with natural gas-powered CHP system Four 100 kW CHP units powered all 290 apartments through Sandy Normal occupancy is 720 people. During Sandy, the Brevoort was able to house and provide power to 1,500 people through the storm. “Powered by our CHP system, we were the only building on lower Fifth Avenue able to provide energy and full service to our residents.” - Diane Nardone, President of the Brevoort coop board The Brevoort was able to maintain power for central boilers, domestic water pumps, all elevators and all apartments

18. PGW Headquarters 200 kW Microturbine 40 ton Absorption chiller Four Seasons Hotel 3 – 65 kW Microturbines Domestic hot water PCOM 130 kW Microturbine Additional Local CHP Installations