ww w .mi d w e s tcl e an e nerg y . o rg Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18, 2014 Cliff Haefke
Www.midwestcleanenergy.org Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18,
Dec 14, 2015
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
www.midwestcleanenergy.org
Combined Heat & Power (CHP) Opportunities for Hospital Facilities
Iowa Society of Healthcare Engineers (ISHE)
September 18, 2014
Cliff Haefke
o Increase overall energy efficiency and reduce utility bill expenditures?
o Reduce carbon emissions?
o Increase energy reliability, decrease reliance on the grid, andsupport grid T&D?
o Show more energy savings and reduce more emissions thancomparably sized PV and wind technologies?
o Support nation’s energy goals and is commercially available today?
The Answer?
CHP6
What technology can…
o Healthcare organizations spend > $6.5B annually
o Every $1 a non-profit healthcare organization saves on energy isequivalent to generating $20 in new revenues for hospitals
o For-profit hospitals can raise their earnings per share 1¢ by reducingenergy costs just 5%
o CHP systems can reduce energy costs and carbon emissions
o CHP systems can maintain hospitals’ power and heat during man- made and natural disasters
o 200+ hospitals operate CHP systems today
o 7 of Top 16 U.S. hospitals use CHP according to US News
Why CHP in Hospitals?
1)ENERGY STAR - http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf2) DOE CHP Installation Database
3)US News’ 2013-2014 Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY Presbyterian, NYU Langone, Indiana University)
7
US DOE CHP TechnicalAssistance Partnerships
(TAPs)o U.S. DOE CHP Technical Assistance Partnerships (TAPs) originally established in 2001 by U.S. DOE and ORNL to support DOE CHP Challenge (formally known as RACs and CEACs)
o Today the 7 TAPs promote the use of CHP, District Energy, and Waste Heat to Power Technologies
o Strategy: provide a technology outreach program to end users, policy, utility, and industry stakeholders focused on:
– Market analysis & evaluation
– Education & outreach
– Technical assistance
o Midwest Website: www.midwestCHPTAP.org
8
DOE CHP Technical Assistance Partnerships (CH P TAPs)
MIDWESTwww.midwestCHPTAP.org
PACIFICwww.pacificCHPTAP.org
Terry ClaphamCalifornia Center for Sustainable Energy 858-244-4872terry.clapham@energycenter. org
Gene KoganCalifornia Center for Sustainable Energy [email protected]
DOE CHP TechnicalAssistancePartnerships (TAPs):Program Contacts
Dave SjodingWashington State University [email protected] .edu Cliff Haefke
University of Illinois at Chicago312-355-3476
John CutticaUniversity of Illinois at Chicago [email protected]
· ·•SOUTHWEST
www.southwestCHPTAP.or
Christine BrinkerSouthwest Energy Efficiency Project [email protected]
Claudia TigheCHP Deployment LeadOffice of Energy Efficiency andRenewable EnergyU.S. Department of EnergyPhone: 202-287-1 899E-mail: [email protected]
Jamey EvansProject Officer. Golden Field OfficeOffice of Energy Efficiency andRenewable EnergyU.S. Department of EnergyPhone: 720-356-1536E-mail: jam [email protected]
Patti Welesko Garland
CHP Technical Support Coordinato r DOE CHP TAPs CoordinatorOak Ridge National Laboratory
Supporting. Office of Energy Efficiency Supporting. Office of Energyand Renewable EnergyU.S. Department of EnergyPhone: 202-586-3753E-mail: [email protected]
NORTHEASTwww.northeastCHPTAP.org
Tom Bourgeois Pace University [email protected] KosanovicUniversity of Massachusetts Amherst [email protected]
Jim FreihautThe Pennsylvania State University 814-863-0083jdf I I @psu.edu
SOUTHEASTwww.southeastCHPTAP.org
Isaac PanzarellaNorth Carolina State University [email protected]
Ted Bronson
Power Equipment AssociatesEfficiency and Renewable EnergyPhone: 630-248-8778E-mail: [email protected]
o CHP: The Concept
o CHP: The Business Case
o CHP Project Profiles
o Next Steps & Incentives
Outline
10
Fuel Utilization by U.S. Utility Sector
Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf
11
CHP: A Key Part of Our Energy Futureo Form of Distributed
Generation (DG)
o An integrated systemo Located at or near a
building / facility
o Provides at least a portion of the electrical load and
o Uses thermal energy for:
– Space Heating / Cooling
– Process Heating / Cooling
– Dehumidification
CHP provides efficient, clean,
reliable, affordable energy – today and
for the future.
Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdf s/chp_clean_energy_solution.pdf
12
CHP Technology Components
Prime Mover
Reciprocating Engines Combustion
Turbines Microturbines
Steam Turbines Fuel
Cells
Electricity
On-Site Consumption
Sold to Utility
Fuel
Natural Gas Propane Biogas
Landfill Gas Coal
Steam Waste Products
Others
Generator
Heat Exchanger
Thermal
Steam Hot Water
Space Heating Process Heating Space Cooling
Process Cooling Dehumidification
13
Emerging Drivers for CHP
o Benefits of CHP recognized by
policymakerso 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
o State Portfolio Standards (RPS, EEPS, Tax Incentives, Grants, standby rates, etc.
o Favorable outlook for natural gas supply and price in North America
o Opportunities created byenvironmental drivers
o Energy resiliency and criticalinfrastructure
DOE / EPA CHP Report (8/2012)
Executive Order: http://www.whitehouse.gov/the-press- office/2012/08/30/executive-order-accelerating-
investment-industrial-energy-efficiencyReport: http://www1.eere.energy.gov/manufacturing/distr
ibutedene rgy/pdfs/chp_clean_energy_solution.pdf
14
CHP Is Used at the Point of Demand4,200 CHP Sites
(2012)
82,400 MW –installed capacity
Saves 1.8 quads of fuel each year
Avoids 241 M metric tons of CO2 each year
87% of capacity – industrial
71% of capacity – natural gas firedSource: ICF International
o Concern about energy costs
o Concern about power reliability
o Concern about sustainability and environmental impacts
o Long hours of operation
o Existing thermal loads
o Central heating and coolingplant
Favorable Characteristics forCHP Applications
16
o Future central plant replacement and/or upgrades
o Future facility expansion ornew construction
projects
o EE measures alreadyimplemented
o Access to nearby renewable fuels
o Facility energy champion
Over 200 hospitals are using CHP today…
Source: ICF CHP Installation Database, 2013
17
State # Sites Capacity (MW)
AR 1 8.5
AZ 2 1.7
CA 50 170.8
CT 12 28.5
FL 7 24.9
HI 3 1.5
IA 4 5.5
IL 13 41.4
IN 2 3.5
MA 9 108.8
MD 1 15.0
ME 2 5.1
MI 6 11.6
MN 4 30.1
MO 1 5.0
State # Sites Capacity (MW)
MS 1 4.2
NC 2 5.8
NH 2 9.2
NJ 8 11.1
NV 1 1.0
NY 39 56.1
OH 3 2.2
PA 11 83.9
RI 7 30.1
TN 2 3.5
TX 7 72.4
VA 3 3.2
VT 2 0.5
WI 7 11.7
o 212 facilities generating 756.6 MW
CHP Systems (#) CHP Gen Capacity (MW)
Existing CHP Installations inU.S. Hospitals
18
Boiler / SteamTurbine CombinedCycleGas Turbine
Recip Engine
Fuel Cell
Microturbine
Other
Waste Heat
Boiler / Steam Turbine CombinedCycleGas Turbine
Recip Engine
Fuel Cell
Microturbine
Other
Waste Heat
Source: ICF CHP Installation Database, 2013
o Sizes TYPICALLY range from 100s of kWs to several MWs (dependingon facility size and usually below 10 MW)
o Common CHP prime mover types in hospitals are reciprocating engines, combustion turbines, and/or steam turbines (mostly fueled by natural gas)
o Most hospital CHP systems are sized for the thermal load requirements with the resulting electric power generated used to first offset the power purchased from the utility grid (excess power can be sold to the utility)
o CHP systems do not replace the need for emergency generator sets to meet the “life critical loads” of a hospital
– Can reduce the number and capacity of the emergency generators
– Can increase the total electric reliability for the hospital
Typical Hospital CHP SystemConfigurations
19Source:
http://www.midwestcleanenergy.org/Archive/pdfs/US HospitalGuidebook_111907.pdf
Emergency Generators
o Minimum requirement, sized to meet “life critical loads
o Hospitals are installing larger generators to protect more and more hospital loads
o Diesel fueled – high emissions & limited amount of stored fuel (hours versus days of operation)
o Not designed or capable of continuous operation for long periods of time – rarely operates
o Financial payback only in times ofemergency
Emergency Generators vs.
CHP SystemsCHP Systems
o Sized to meet thermal or electric loads – operates continuously to meet those loads
o Natural gas fueled – low emissions
o Does not replace emergency generator set for “life critical” loads
o Reduces overall size and capacity of emergency generator sets
o Emergency generator sets become backup to the backup; much higher reliability
o Good financial return
20
o Reduces energy costs
o Increases energy efficiency, helps managecosts, maintains jobs, etc.
o Reduces risk of electric grid disruptions &enhances energy reliability
o Provides stability in the face of uncertain electricity prices
21
CHP Benefits to Hospitals
Project Profiles: Example CHP InstallationsExample Scenario CHP Facility
Hospital Utilities Expansion Northwest Community Hospital
Improved ENERGY STAR Building Score ProMedica Health System – Wildwood
Improved LEED Scoring – LEED Platinum Dell Children’s Medical Center of Central Texas
Alternative Financing Jesse Brown VA Medical Center
Addressing Momentary Power Interruptions Lake Forest Hospital
Disaster Relief – Hurricane Katrina Mississippi Baptist Medical Center
Disaster Relief – Super Storm Sandy Danbury Hospital
Disaster Prevention – Snow Storm Presbyterian Homes
Energy Independence Thermal Energy Corporation (TECO)
Energy Independence & Unique Partnerships Gundersen Lutheran Health System (La Crosse)
Energy Independence & Public / Private Partnerships Gundersen Lutheran Health System (Onalaska)
Project Profile:Utilities Expansion
Northwest Community HospitalArlington Heights, IL
Capacity: 4.6 MWFuel: Natural GasPrime Mover: Recip. EnginesInstalled: 1997 / 2005
"We said, ‘Well, if we're going to centralize it all, doesn't it make sense to do a CHP—and generate our own electricity, to reduce our demand load, and then capture the heat of those engines and utilize
all that for heating and/or cooling?' "Charlie Stevenson, Director of Plant Operations
Northwest Community Hospital
"The beauty of this CHP to him was not simply the return for the cogen system, but the fact that these savings would pay for the central energy plant too.”
Joe Sinclair, Ballard Engineering
Project Profile:Alternative Financing
Jesse Brown VA Medical Center Chicago, IL
Capacity: 3.4 MWFuel: Natural GasPrime Mover: Combustion TurbineInstalled: 2003
Energy Systems Group (ESG) raised $13 million funding for design, construction, and installation of the project by creating an owner trust,
which then sold bonds used for financing. In turn, the owner trust contracted with ESG to operate and maintain the CHP system for 25
years.
Source:http://www.distributedenergy.com/DE/Articles/Chicag o_VA_Hospital_Takes_Control_of_Its_Electrici_1838.aspx
Project Profile:Increased ENERGY STAR Building ScoreProMedica Health System - Wildwood Toledo, OH
Capacity: 130 kWFuel: Natural GasPrime Mover: MicroturbinesInstalled: 2013
Benefits includea reduction in annual
energy costs and greenhouse gas
emissions as well as a higher ENERGY
STAR building score
Source: www.gemenergy.com
Project Profile:LEED Platinum
Dell Children’s Medical Center of Central Texas Austin, TX
Capacity: 4.6 MWFuel: Natural GasPrime Mover: Combustion TurbinesInstalled: 2009First healthcare facility in the
world to achieve a LEED Platinum certification by the U.S. Green
Building Council (USGBC)
Project Profile:Addressing Instantaneous Power InterruptionsLake Forest HospitalLake Forest, IL
Capacity: 3.2 MWFuel: Natural GasPrime Mover: Recip. EnginesInstalled: 1997
Annual Instantaneous Power Interruptions were reduced from
50 down to 2 due to CHP installation
Project Profile:Disaster Relief, Hurricane Katrina
Mississippi Baptist Medical Center Jackson, MS
Capacity: 4.2 MWFuel: Natural GasPrime Mover: Combustion TurbinesInstalled: 1991
The independence provided by the CHP system allowed MBMC to continue operation
relatively unaffected during Hurricane Katrina in 2005. As soon as power reliability
became a factor MBMC performed a load shed, switched off of the power grid, and
continued operation in turbine-only mode. MBMC was the only hospital in the Jackson
metro area to remain nearly 100% operational. After approximately 50 hours, the power
reliability issue was addressed and MBMC connected to the power grid and returned to
normal operation.
Source: http://www.southeastcleanenergy.org/resources/reports/CHP-MBMC.pdf
Project Profile:Disaster Relief, Super Storm Sandy
Danbury HospitalDanbury, Connecticut
Capacity: 4.5 MW / 3 MW StandbyFuel: Natural Gas / DieselPrime Mover: Combustion Turbine / Recip. Engine BackupsInstalled: 2011During the storm, the facility operated without any loss of
power and, despite most of the businesses in the
surrounding area being without power for several days,
Danbury Hospital still had lights and heat. The CHP facility
enabled the hospital to be fully functional during the storm
and continued conducting business and providing the
critical and necessary health care for patients.Source: http://www.newstimes.com/news/article/D anbury-Hospital-generates-power-for-its- patients-1345938.php#photo-829406
Project Profile:Addressing Extended
Power OutagesPresbyterian HomesEvanston, IL
Capacity: 2.4 MWFuel: Natural GasPrime Mover: Recip. EnginesInstalled: 2001
“The environment we provide to elderly adults had everything to do with our decision to pursue
power generation. Loss of power isn’t an option.
Lives depend on it.”- Keith Stohlgren, V/P Operations
“We had no power for nine hours one cold, winter day during an ice storm. The loss of power
forced us to take immediate, aggressive measures to ensure the comfort and safety of
our residents.”– Nancy Heald Tolan, Director of
Facilities Management
Ice storm in winter of 1998 knocked out power for 9 hours.• 600 senior residents were
transferred to safety• CHP installed to avoid future
outages
Project Profile:100% Energy Independence
Thermal Energy Corporation (TECO) Houston, TX
Capacity: 48 MWFuel: Natural GasPrime Mover: Comb. TurbinesInstalled: 2010
TECO operates the largest chilled water district energy system in the U.S. at the largest medical center in the world, the Texas Medical Center.
The CHP system can operate as a baseload system to serve 100% of the TECO plant peak electrical load and 100% of TECO customers’ peak process and
space heating loads.
Project Profile:Energy Independence & Unique Partnerships
Gundersen Lutheran& City BreweryLa Crosse, IL
Capacity: 633 kWFuel: BiogasPrime Mover: Recip. EngineInstalled: 2009
Hospital owns CHP system at local brewery. Heat from CHP system used to heat digester, electricity is sold to utility, and electric sales/credit go to
hospital.
Project Profile:Public & Private Partnerships
Gundersen Lutheran& County LandfillOnalaska, IL
Capacity: 1.2 MWFuel: Landfill GasPrime Mover: Recip. EngineInstalled: 2011Instead of simply generating
electricity at landfill, landfill gas is piped 2 miles to hospital where CHP
system provides all required electricity and thermal energy.
Claim to be first energy independent hospital in U.S.
Advanced Manufacturing Office (AMO) manufacturing.energy.gov34
CHP TAP Project Development
Technical Assistance
Screening and Preliminary
Analysis
Feasibility Analysis
Investment Grade Analysis
Procurement, Operations,
Maintenance, Commissioning
Uses available site information.Estimate: savings, Installation costs, simple paybacks, equipment sizing and type.
Quick screening questions with spreadsheet payback calculator.
3rd Party review of Engineering Analysis.Review equipment sizing and choices.
Review specifications and bids,Limited operational analysis
o High level assessment to determine if site shows potential for a CHP project
– Qualitative Analysis
35
• Energy Consumption & Costs
• Estimated Energy Savings &Simply Payback
• CHP System Sizing
– Quantitative Analysis• Understanding project drivers
• Understanding site peculiarities
DOE TAP CHP Screening Analysis
Annual Energy Consumption
Base Case CHP Case
Purchased Electricty, kWh 88,250,160 5,534,150Generated Electricity, kWh 0 82,716,010
On-site Thermal, MMBtu 426,000 18,872
CHP Thermal, MMBtu 0 407,128Boiler Fuel, MMBtu 532,500 23,590CHP Fuel, MMBtu 0 969,845
Total Fuel, MMBtu 532,500 993,435
Annual Operating Costs
Purchased Electricity, $ $7,060,013 $1,104,460Standby Power, $ $0 $0
On-site Thermal Fuel, $ $3,195,000 $141,539
CHP Fuel, $ $0 $5,819,071Incremental O&M, $ $0 $744,444
Total Operating Costs, $ $10,255,013 $7,809,514
Simple Payback
Annual Operating Savings, $ $2,445,499Total Installed Costs, $/kW $1,400Total 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
o 10% Federal Investment Tax Credit (ITC) for CHP
o DOE Better Buildings Challenge, Financial Allies have committed nearly $2B to fund EE projects*
o Waste Heat Recovery (WHR) is eligible in MidAmerican Energy Efficiency Resource Standard (EERS)
o 3rd Party Build-Own-Operators of CHP Opportunities?
36
– How does the July 2014 Iowa Supreme Court Ruling on solar projects impact CHP 3rd Party Ownership?
* http://www4.eere.energy.gov/challenge/allies/financial-allies
Incentives and Financing
o Healthcare organizations spend > $6.5B annually
o Every $1 a non-profit healthcare organization saves on energy isequivalent to generating $20 in new revenues for hospitals
o For-profit hospitals can raise their earnings per share 1¢ by reducingenergy costs just 5%
o CHP systems can reduce energy costs and carbon emissions
o CHP systems can maintain hospitals’ power and heat during man- made and natural disasters
o 200+ hospitals operate CHP systems today
o 7 of Top 16 U.S. hospitals use CHP according to US News
Why CHP in Hospitals?
1)ENERGY STAR - http://www.energystar.gov/ia/business/challenge/learn_more/Healthcare.pdf2) DOE CHP Installation Database3)US News’ 2013-2014 Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY Presbyterian, NYU Langone, Indiana University)
37
Other Resourceso Powering the Future of Health Care – Financial
and Operational Resilience: A CHP Guide for Massachusetts Hospital Decision Makers (HCWH)
o Advanced Energy Design Guide for Large Hospitals (ASHRAE)
o Advanced Energy Design Guide for Small Hospitals and Healthcare Facilities (ASHRAE)
o Combined Heat & Power (CHP) Resource Guide forHospital Applications (Midwest CEAC)
o Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings (DOE/EPA)
1 - http://www.greenribboncommission.org/downloads/CHP_Guide_091013.pdf2 - https://www.ashrae.org/standards-research--technology/advanced-energy-design-guide
s3 - https://www.ashrae.org/standards-research--technology/advanced-energy-design-guide
s4 - http://www.midwestchptap.org/Archive/pdfs/USHospitalGuidebook_111907.pdf5 - http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_for_reliability_guidance.pdf
39
Related Documents
