1. What is CHP & Why do we need it in Michigan?
April 30, 2015
Jim Leidel Director of Clean Energy Systems Oakland University

2. Outline of Discussion What is CHP the Opportunity of CHP:
(a new look at an tried and true technology)
What does CHP look like
Project feasibility basics: the spark spread
Why CHP in Michigan?
Multiple benefits to CHP
Oakland University CHP & MicroGrid
Questions ?

3. Combined Heat and Power combined efficiency is dramatically increased
30-40%
75-85%
80-90%
combined efficiency is dramatically increased

4. Benefits of CHP to the Host
Additional heating capacity
“New” equipment replacing aging systems
Backup electrical power
Lower carbon footprint
Diversified energy options for supply
Energy independence
Grid Reliability
Cost savings drives the whole opportunity

5. Benefits of CHP to the Grid
Replace retiring base-load coal generation
Reduce transmission losses
Lower carbon footprint (with natural gas)
Highest efficiency possible
Added Reliability

6. 8% 3% 3%
23%
23%
40%

7. Michigan Energy Flow
Mich flag
2.9 Quad
year

8. Quad
year
Consumers & BP Logos

9. U.S. Electric Power Energy Flow

10. What does CHP look like?

12. Gas Turbine Generator Set
FUEL MANIFOLD
TERMINAL BOX
DIGITAL
CONTROL
PANEL
AIR
INLET
AXIAL EXHAUST
ACCESSORY
REDUCTION GEARBOX
GENERATOR
CUSTOMER
CONNECTION
BOX
This is Taurus 60 gas turbine generator set that shows all the main components ……. Axial exhaust, fuel manifold, air inlet …… accessory reduction gearbox ……. the generator, terminal box …… digital control panel and the customer connection box.
VPIPG 12

13. Combined Heat and Power System Combustion Gas Turbine
EXHAUST
SILENCER
EXHAUST
BYPASS
SILENCER
DIVERTER
VALVE
AIR INLET
FILTER
HEAT
RECOVERY
STEAM
GENERATOR
(HRSG)
GENERATOR
PROCESS
STEAM
GAS
TURBINE
SUPPLE-
MENTARY
BURNER 13

14. Gas Turbine Cogeneration Facility 14

15. Industrial CHP Food Processing Pharmaceutical Pulp and Paper
Manufacturing
This Centaur 40 generator set is used for standby power at a hospital.
VPIPG 15

16. Industrial CHP Refinery / Oil Hospitals Universities Utilities
This Centaur 40 generator set is used for standby power at a hospital.
VPIPG 16

17. University of Michigan
45.2 MW CHP Application

18. Lorin Industries
3.2 MW CHP Application

19. Eastern Michigan University
3.5 MW CHP Application
Taurus 60

21. JHP Pharmaceuticals
4.6 MW Gas Turbine CHP

24. Ferris State University
1.0 MW CHP
Kawasaki Turbine

26. Is CHP Applicable?
Spark Spread

28. Unit Cost of Natural Gas

32. Why do we need CHP?

33. COAL RETIREMENTS: BEGINNING OF THE END
The US coal fleet is entering an unprecedented period of retirements, as the industry faces a three-pronged assault from low gas prices, an aging fleet, and stringent environmental compliance.
• Old age: numerous units are today approaching 50+ years of operation.
• Cheap gas: sub-$4/MMBtu Henry Hub gas will hit coal units twice – first, by reducing wholesale power prices; and second, by bringing combine-cycle gas turbines (CCGTs) into the base-load power mix, encroaching on sales of coal-fired electricity.
• Environmental regulations: standards laid out by the US Environmental Protection Agency (EPA) will force generators to decide whether to invest in expensive environmental controls.

34. Nuclear Plants source: US DOE, Energy Information Administration,

35. Hydro-electric sites source: US DOE,
Energy Information Administration,

36. Biomass: wood chip & landfill gas
source: US DOE,
Energy Information Administration,

37. is storage using night time grid power
Pumped hydro
Note: this
is storage using night time grid power
source: US DOE,
Energy Information Administration,

38. also showing major gas pipelines
Nat. Gas
Plants
also showing major gas pipelines
source: US DOE,
Energy Information Administration,

39. Also showing ≥ 345 kV transmission
Coal
Plants
Also showing ≥ 345 kV transmission
source: US DOE,
Energy Information Administration,

40. Upper Peninsula Power Plant Map (all fuels)
Also showing natural gas pipelines (blue)
source: US DOE,
Energy Information Administration,

41. U.S. Electric Power Fuel Source Mix
natural gas
petroleum
coal
renewables
large hydro
nuclear
source: Bloomberg New Energy Finance, “ Medium-term outlook for US power:
2015 = deepest de-carbonization ever”, 8 April

42. U.S. New Capacity Build & Retirements
natural gas
renewables
coal
petroleum
source: Bloomberg New Energy Finance, “ Medium-term outlook for US power:
2015 = deepest de-carbonization ever”, 8 April

43. Regional Grid Operators (ISO’s)
Midwest is MISO & PJM

44. U.S. Coal Plant Retirements by RegionGW
(2016) MISO + PJM = 8 GW
(2015) MISO + PJM = 11 GW
source: Bloomberg New Energy Finance, “ Medium-term outlook for US power:
2015 = deepest de-carbonization ever”, 8 April

45. Utility Scale Generating Units Planned to Retire from Feb 2015 to Jan 2016 (as reported to the DOE)
source: US DOE, EIA, Form EIA-860, “Annual Electric Generator Report” and Form EIA-860M, “Monthly Update to the Annual Electric Generator Report”.

46. CHP Share of Total National Power Generation,
by Country
source: “Combined Heat & Power: Effective Energy Solutions for a Sustainable Future”, Oak Ridge National Laboratory (2008), ORNL/TM-2008/224, (US DOE, EIA, 2008 data)

47. Source: US DOE Report, “The Market and Technical Potential for Combined Heat and Power in the Commercial / Institutional Sector”, prepared by ONSITE SYCOM Energy Corp., (Jan 2000)

48. CHP Share of Total Power Generation,
United States
source: “Combined Heat & Power: Effective Energy Solutions for a Sustainable Future”, Oak Ridge National Laboratory (2008), ORNL/TM-2008/224, (US DOE, EIA data)

49. source: “Combined Heat & Power: Effective Energy Solutions for a Sustainable Future”, Oak Ridge National Laboratory, ORNL/TM-2008/224, McKinsey & Company data, (2008)

50. Oakland University Projects
4.6MW
400kW

51. Overview of an Integrated, Clean Energy Supply Infrastructure
Existing Central Heating Plant

52. Overview of an Integrated, Clean Energy Supply Infrastructure
Four large absorbsion chillers make chilled water from the hot water in summer
Existing 52

53. Overview of an Integrated, Clean Energy Supply Infrastructure
Proposed
new CHP unit

54. Existing electrical with new CHP
Overview of an Integrated, Clean Energy Supply Infrastructure
Existing electrical with new CHP

55. Overview of an Integrated, Clean Energy Supply Infrastructure
Existing diesel backup generators can black start the heating plant on a power failure.

56. “Proposed” wind turbine,
Overview of an Integrated, Clean Energy Supply Infrastructure
“Proposed”
wind turbine,
with third party financing, sells power to OU for a cost savings. No cost to OU.

57. “Proposed“ Detroit Edison owned and operated solar PV array at OU

58. Vision of an OU Clean Energy
Micro-Grid
Multiple solar PV & CHP installations are installed or funded

59. Vision of an OU Clean Energy
Micro-Grid
With data monitoring & academic curricula
Jim Leidel, Director of Clean Energy Systems, 59

60. Impediments to CHP Utility backup / stand-by charges
Time to complete utility interconnections
Emissions regulations & permitting time
Knowledge
Capital Costs / Finance
Competition (alternatives)
Conservation
Electric choice
Relatively cheap electricity

61. Solutions to Help CHP Review and revise utility stand-by charges
Create time limits for utility study & interconnection process
Create time limits for project permitting
Promote CHP
State-wide study of CHP opportunity
Create low interest loan fund?

62. Thank you Questions?
Jim Leidel Director of Clean Energy Systems Oakland University Clean Energy Research Center & OU INC