CHP and Academic Facilities:

overcoming challenges and

finding opportunities

Partners:

April 16, 2019

Thank you to our partners

Thank you to our partners

Speakers▪ Carlos Gamarra, P.E., CEM

Assistant DirectorSouthcentral CHP TAP

▪ Lance LindleyMechanical EngineerJacobs

▪ Jimmy Gresham, LEED GADirector of FacilitiesWesleyan University

Agenda

▪ CHP Overview

▪ CHP Markets and Trends

▪ CHP Lessons Learned by Jacobs

▪ Case Study: Wesleyan University

▪ Working with the CHP TAP to Assess Project Opportunity

▪ Q&A

CHP Markets and Trends

Carlos Gamarra, P.E.,CEM - Assistant Director SC CHP TAP

DOE CHP Deployment

Program Contactswww.energy.gov/CHPTAP

Tarla T. Toomer, Ph.D.CHP Deployment Manager

Office of Energy Efficiency and

Renewable Energy

U.S. Department of Energy

Tarla.Toomer@ee.doe.gov

Patti GarlandDOE CHP TAP Coordinator [contractor]

Office of Energy Efficiency and

Renewable Energy

U.S. Department of Energy

Patricia.Garland@ee.doe.gov

DOE CHP Technical Assistance Partnerships (CHP TAPs)

DOE CHP Technical Assistance

Partnerships (CHP TAPs)• End User Engagement

Partner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses.

• Stakeholder EngagementEngage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation’s resilient grid. CHP TAPs provide fact-based, non-biased education to advance sound CHP programs and policies.

• Technical ServicesAs leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation.

www.energy.gov/chp

CHP Overview

CHP: A Key Part of Our Energy Future

▪ 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:

o Space Heating / Cooling

o Process Heating / Cooling

o Dehumidification

CHP provides efficient, clean, reliable, affordable energy – today and for the

future.

Source: www.energy.gov/chp

CHP System Schematic

Prime MoverReciprocating Engines

Combustion Turbines

Microturbines

Steam Turbines

Fuel Cells

ORC turbine

ElectricityOn-Site Consumption

Sold to Utility

FuelNatural Gas

Propane

Biogas

Landfill Gas

Coal

Steam

Waste Products

Others

Generator

Heat Recovery

ThermalSteam

Hot Water

Space Heating

Process Heating

Space Cooling

Process Cooling

Refrigeration

Dehumidification

Common CHP Technologies and

Capacity Ranges

What Are the Benefits of CHP?

▪ CHP is more efficient than separate generation of electricity and heating/cooling

▪ Higher efficiency translates to lower operating costs (but requires capital investment)

▪ Higher efficiency reduces emissions of pollutants

▪ CHP can also increase energy reliability and enhance power quality

▪ Onsite energy generation can reduce grid congestion and avoid distribution costs

The State of CHP

Existing CHP Installations in the

U.S.

Slide prepared on 5-30-17

Total CHP by Application

Slide prepared on 5-30-17

Total CHP by State

CHP Additions by Application (2013-2016)

*This includes 91 expansions to existing CHP systems

Slide prepared on 5-30-17

CHP Additions by State (2013-2016)

Slide prepared on 5-30-17

*This includes 91 expansions to existing CHP systems

CHP Markets and

Trends

Total CHP Installations per Year

CHP Cumulative Capacity

per Year

Average Size of CHP

Installations per Year

Total CHP Installations - 2000 to 2016N

umbe

r of

Sit

es

Average Number of Installations per

Year by State - 2000 to 2016

CHP Activity in the

Southcentral Region

CHP by Prime Mover - Southcentral

Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016)

Prime Mover Type # of CHP Systems Capacity (MW)

Boiler/Steam Turbine 73 4,225

Combined Cycle 46 18,417

Combustion Turbine 59 3,065

Fuel Cell 1 0.3

Microturbine 4 4

Reciprocating Engine 39 106

Waste Heat to Power 8 69

Other 1 6

Total 231 25,892

Top Applications by CHP Capacity (MW)

- Southcentral

Top Applications Number of

Systems - Southcentral

Where are the Southcentral

Opportunities for Industrial CHP? (13,222 MW of CHP potential at 5,669 sites)

Where are the Southcentral

Opportunities for Commercial CHP? (10,637 MW of CHP Potential at 27,426 sites)

Where are the CHP Opportunities in

Texas? (14,062 MW of CHP Potential at 20,855 sites)

33JACOBS

COMBINED HEAT AND POWERLessons Learned from the Implementation of Projects Across the Country

Lance Lindley | Mechanical Engineer, Jacobs Energy & Power Solutions

34JACOBS 34

Background

• Perspective from:

– Successes

– Bumps and bruises

– Failures to launch

• Not a CHP 101 discussion

• Addressed toward privately-owned CHP, not utility side

• Names changed to protect the innocent

35JACOBS

Lesson #1CHP is not for everyone!

Industrial Enhanced Oil Recovery

20 MW CHP

36JACOBS 36

CHP is not for everyone

Big Idea

• Understand your project drivers

• Accept that the right answer might be:

– Yes!

– Maybe later

– No

– Never!

37JACOBS 37

CHP is not:

• A means to beat your utility at

their own game

• Always the cleanest form of

electricity

• A universal solution

• Fast, cheap or easy!

38JACOBS 38

CHP might be right when:

• Coincident thermal and electrical demands

• Consistent thermal demand baseline

• Electricity is expensive, fuel is cheap

• Resiliency is in play

• Financial and policy incentives exist

• Sustainability is a goal

– GHG goals

– Eliminate coal

39JACOBS

Lesson #2CHP projects require

intense due diligence!

The University of Texas at Austin

32 MW CHP

40JACOBS 40

CHP projects require intense due diligence

Big Idea

– EARLY is when to do

the project right

– Do your homework

– Ask the right

questions

– Consider every step of

development

– Be realistic with input

and results

41JACOBS 41

Invest in a rigorous and detailed study

• Detailed thermodynamic model

– Quality (hourly, metered) data

– Caution re: future projections

– Mindful of parasitic loads

– Explore and optimize:

• Economizers

• Inlet air cooling

• Condensate pre-heaters

• Low grade heat recovery

• Water usage

42JACOBS 42

Invest in a rigorous and detailed study

• Understand requirements of CFO & Finance

• Sensitivities

• Value for carbon/GHG?

• Full project cost– Construction

– Permitting

– Utility

interconnect

– Design

– Existing

conditions

– Permits

– Owner

contingency

– Commissioning

– Training

– Project

management

43JACOBS 43

Application

Case Study– University of Minnesota

• LCC Savings – $94M

• GHG Savings – 35,700 tons annually

Application– Understand financial metrics

necessary for approval

– Growing into a project is risky

– A screening study is a starting point, but additional due diligence warranted

44JACOBS

Lesson #3CHP projects take time. Lots of time.

Longer than you expect. Plus more.

University of Oklahoma

15 MW CHP

45JACOBS 45

CHP projects take time

Big Idea– Understand the steps of developing a CHP opportunity

– Have reasonable expectations

– Create schedule margin

– You are not always in control

46JACOBS 46

Application

Case Studies

Application– EPA permitting = 9-12 months

– ISO permitting = 9-24 months (before paralleling)

– Equipment procurement = 12+ months

– Set realistic expectations for all stakeholders

– Time = $$$

– Beware of project fatigue

47JACOBS 47

Steps in Development

IdeaApproval

Design

Construction

Closeout

48JACOBS

Lesson #4Consider safety in design

and operations.

Texas A&M University

43.5 MW CHP

49JACOBS 49

Plant safety

Big Idea

– Take safety seriously

– Safety is a cultural topic

– Take a leadership role

OSHA Guidance

– 29 CFR 1910.269

– 29 CFR 1926 Subpart V

50JACOBS 50

Design tips

Safety Hazards in a Power Plant– Electrical safety

– Machine safety

– Working at elevation

– Excavation work

– Lifting operations

– Confined spaces

– Chemical hazards

– High temperature piping and ductwork

– Vehicle movement

– Control of contractors

51JACOBS

Lesson #5CHP plants don’t have to be ugly.

But don’t make them pretty first.

University of California Santa Cruz

5 MW CHP

52JACOBS 52

Plant Aesthetics

Big Idea

– Design from inside to out

– The engineer gets to drive!

– PFDs yield systems to plan

around

– Consider O&M and traffic flow

– Plan around noise, drift and

emissions

53JACOBS

Parting Shots:6. Natural gas compressors.

You don’t want one.

7. Project delivery; choose wisely.

8. Permitting: Go local, start early.

9. Startup is not automatic, give it time and have understanding

Oregon State University

6.5 MW CHP

Blue + Gold = Green.

A Utility Reduction ProgramReview of Multi-Year Capital Improvement Plan that is Focused on Sustainability.

By: Jimmy Gresham, Director of Facilities Operations

Texas Wesleyan University

Project Goals

• Realize operating utility cost reductions

• Minimize impact on future fluctuations in utility costs

• Address a large portion of deferred maintenance

• Improve security, comfort, lighting, and aesthetics

• Create new infrastructure capacity and redundancy

• Maximize utility incentives to enhance projects

• Reputation & Engagement

Distribution of Campus Utilities

• Extension of CHW & HW piping to McFadden Sci.

Center & Martin Hall

• Replacement of CHW & HW valves

• Removal of tertiary bldg. pumps

• Replacement of primary pumps & installation of

redundant systems

• Air and Water balancing

• Modifications to main electrical switchgear

Utility Generation and Mechanical System

Upgrades

• Installed a natural gas fired 800kW Combined Heat &

Power (CHP) system

• Additional 250 tons of cooling capacity through an

absorption chiller with additional cooling tower

• New plate and frame heat exchanger

• New boilers with redundant systems

• Replacement of variable frequency drives (VFD’s) on

all large air handlers and motors

• Equipment re-commissioning

Water & Power Conservation

• Replaced 1,290 plumbing fixtures including: toilets,

urinals, faucets, and showerheads

• All irrigation systems are centrally monitored and

adjusted for optimal conservation

• Upgraded 1,559 interior and exterior lighting fixtures

with LED fixtures

• Reduced computer power consumption with a comp.

load management tool

• Improved Building Automation Controls (BAS)

installed in 16 Bldgs.

Operation & Maintenance

• Learning curve for technicians, absorption chiller and

generator

• Attend generator manufacturer training

• Utilize service contract for scheduled maintenance

• Log daily similar to a chiller

• Staff preformed maintenance

• Oil changes

• Spark plug changes

• Coolant changes/purging

• Review controls making changes as needed

Sustainability & Energy Management

• 2017 Recipient of Energy Solutions Center’s (ESC) Partnership

Award for Innovative Energy Solutions

• The Partnership Award is an honor reserved for those energy users that

have worked with their energy utility system to implement an innovative,

energy-efficient natural gas strategy or solution.

• 2016 Recipient of Fort Worth’s Smart Water Conservations

Partner Award

• In recognition of our commitment to achieve and maintain water efficiency

in operations, through process refinement & fixture retrofits.

• Presentation of Program Implementation at: 2017 TAPPA Annual

Conference & 2016 IDEA Campus Energy Conference

• Project coverage in the Fort Worth Star Telegram & Fort Worth

Business Press

Looking Ahead

• Expand CP’s utility distribution to University’s

residence halls and dinning facility

• Maximize CHP’s capabilities for power, CHW, & HW

production

Working with the

CHP TAP to Assess

Project Opportunity

CHP TAP Role: Technical Assistance

▪ High level assessment to determine if site shows potential for a CHP project

◦ Qualitative Analysis– Energy Consumption & Costs

– Estimated Energy Savings & Payback

– CHP System Sizing

◦ Quantitative Analysis– Understanding project drivers

– Understanding site peculiarities

DOE TAP CHP Screening AnalysisAnnual Energy Consumption

Base Case CHP Case

Purchased Electricty, kWh 88,250,160 5,534,150

Generated Electricity, kWh 0 82,716,010

On-site Thermal, MMBtu 426,000 18,872

CHP Thermal, MMBtu 0 407,128

Boiler Fuel, MMBtu 532,500 23,590

CHP Fuel, MMBtu 0 969,845

Total Fuel, MMBtu 532,500 993,435

Annual Operating Costs

Purchased Electricity, $ $7,060,013 $1,104,460

Standby Power, $ $0 $0

On-site Thermal Fuel, $ $3,195,000 $141,539

CHP Fuel, $ $0 $5,819,071

Incremental O&M, $ $0 $744,444

Total Operating Costs, $ $10,255,013 $7,809,514

Simple Payback

Annual Operating Savings, $ $2,445,499

Total Installed Costs, $/kW $1,400

Total Installed Costs, $/k $12,990,000

Simple Payback, Years 5.3

Operating Costs to Generate

Fuel Costs, $/kWh $0.070

Thermal Credit, $/kWh ($0.037)

Incremental O&M, $/kWh $0.009

Total Operating Costs to Generate, $/kWh $0.042

▪ Do you pay more than $.06/kWh on average for

electricity (including generation, transmission and distribution)?

▪ Are you concerned about the impact of current or future energy

costs

on your operations?

▪ Are you concerned about power reliability?

What if the power goes out for 5 minutes… for 1 hour?

▪ Does your facility operate for more than 3,000 hours per year?

▪ Do you have thermal loads throughout the year?

(including steam, hot water, chilled water, hot air, etc.)

Screening Questions

▪ Does your facility have an existing central plant?

▪ Do you expect to replace, upgrade, or retrofit central plant equipment within the next 3-5 years?

▪ Do you anticipate a facility expansion or new construction project within the next 3-5 years?

▪ Have you already implemented energy efficiency measures and still have high energy costs?

▪ Are you interested in reducing your facility's impact on the environment?

▪ Do you have access to on-site or nearby biomass resources? (i.e., landfill gas, farm manure, food processing waste, etc.)

Screening Questions (cont.)

CHP Project Resources

Good Primer Report DOE CHP Technologies

Fact Sheet Series

www.eere.energy.gov/chpwww.energy.gov/chp-technologies

CHP Project Resources

DOE CHP Installation Database

(List of all known

CHP systems in U.S.)

Low-Cost CHP Screening and Other Technical Assistance from

the CHP TAP

energy.gov/chp-installs

energy.gov/CHPTAP

71

CHP Project Resources

DOE Project Profile Database

energy.gov/chp-projects

EPA dCHPP (CHP Policies and Incentives Database

https://www.epa.gov/chp/dchpp-

chp-policies-and-incentives-

database

Summary▪ CHP gets the most out of a fuel source, enabling

◦ High overall utilization efficiencies

◦ Reduced environmental footprint

◦ Reduced operating costs

▪ CHP can be used in different strategies, including critical infrastructure resiliency and emergency planning

▪ Proven technologies are commercially available and cover a full range of sizes and applications

Questions?

▪ Carlos Gamarra, P.E., CEMAssistant DirectorSouthcentral CHP TAPcgamarra@harcresearch.org

▪ Lance LindleyMechanical EngineerJacobsLance.Lindley@jacobs.com

▪ Jimmy Gresham, LEED GADirector of FacilitiesWesleyan Universityjgresham@txwes.edu

Thank you

Slides and recording will be shared this same week

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