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Www.midwestcleanenergy.org Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18,

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Presentation on theme: "Www.midwestcleanenergy.org Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18,"— Presentation transcript:

1 Combined Heat & Power (CHP) Opportunities for Hospital Facilities Iowa Society of Healthcare Engineers (ISHE) September 18, 2014 Cliff Haefke

2 o Increase overall energy efficiency and reduce utility bill expenditures? o Reduce carbon emissions? o Increase energy reliability, decrease reliance on the grid, and support grid T&D? o Show more energy savings and reduce more emissions than comparably sized PV and wind technologies? o Support nation’s energy goals and is commercially available today? The Answer?CHP 6 What technology can…

3 o Healthcare organizations spend > $6.5B annually o Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals o For-profit hospitals can raise their earnings per share 1¢ by reducing energy 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 - p://www.energystar.gov/ia/business/chal enge/learn_more/Healthcare.pdf 2)DOE CHP Installation Database 3)US News’ Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY Presbyterian, NYU Langone, Indiana University) 7

4 US DOE CHP Technical Assistance Partnerships (TAPs) o U.S. DOE CHP Technical Assistance Partnerships (TAPs) originally established in 2001 byU.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: 8

5 DOE CHP Technical Assistance Partnerships (CH P TAPs) MIDWEST PACIFIC Terry Clapham California Center for Sustainable Energy org Gene Kogan California Center for Sustainable Energy DOE CHP Technical Assistance Partnerships (TAPs): Program Contacts Dave Sjoding Washington State University Cliff Haefke University of Illinois at Chicago John Cuttica University of Illinois at Chicago ·­ · SOUTHWEST Christine Brinker Southwest Energy Efficiency Project Claudia Tighe CHP Deployment Lead Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Phone: Jamey Evans Project Officer. Golden Field Office Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Phone: jam Patti Welesko Garland CHP Technical Support Coordinator DOE CHP TAPs Coordinator Oak Ridge National Laboratory Supporting. Office of Energy Efficiency Supporting. Office of Energy and Renewable Energy U.S. Department of Energy Phone: NORTHEAST Tom Bourgeois Pace University Beka Kosanovic University of Massachusetts Amherst Jim Freihaut The Pennsylvania State University jdf I SOUTHEAST Isaac Panzarella North Carolina State University Ted Bronson Power Equipment Associates Efficiency and Renewable Energy Phone:

6 o CHP: The Concept o CHP: The Business Case o CHP Project Profiles o Next Steps & Incentives Outline 10

7 Fuel Utilization by U.S. Utility Sector Source: 11

8 CHP: A Key Part of Our Energy Future o Form of Distributed Generation (DG) o An integrated system o 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: s/chp_clean_energy_solution.pdf 12

9 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

10 Emerging Drivers for CHP o Benefits of CHP recognized by policymakers o 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 by environmental drivers o Energy resiliency and critical infrastructure DOE / EPA CHP Report (8/2012) Executive Order: office/2012/08/30/executive-order-accelerating- investment-industrial-energy-efficiencyhttp://www.whitehouse.gov/the-press- Report: rgy/pdfs/chp_clean_energy_solution.pdf ht p://www1.eere.energy.gov/manufacturing/distributedene 14

11 CHP Is Used at the Point of Demand 4,200 CHP Sites (2012) 82,400 MW – installed capacity Saves 1.8 quads of fuel each year Avoids 241 M metric tons of CO 2 each year 87% of capacity – industrial 71% of capacity – natural gas fired Source: ICF International

12 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 cooling plant Favorable Characteristics for CHP Applications 16 o Future central plant replacement and/or upgrades o Future facility expansion or new construction projects o EE measures already implemented o Access to nearby renewable fuels o Facility energy champion

13 Over 200 hospitals are using CHP today… Source: ICF CHP Installation Database, State# SitesCapacity (MW) AR18.5 AZ21.7 CA CT FL724.9 HI31.5 IA45.5 IL IN23.5 MA MD115.0 ME25.1 MI611.6 MN430.1 MO15.0 State# SitesCapacity (MW) MS14.2 NC25.8 NH29.2 NJ811.1 NV11.0 NY OH32.2 PA RI730.1 TN23.5 TX772.4 VA33.2 VT20.5 WI711.7

14 o 212 facilities generating MW CHP Systems (#)CHP Gen Capacity (MW) Existing CHP Installations in U.S. Hospitals 18 Boiler / Steam Turbine Combined Cycle Gas Turbine Recip Engine Fuel Cell Microturbine Other Waste Heat Boiler / Steam Turbine Combined Cycle Gas Turbine Recip Engine Fuel Cell Microturbine Other Waste Heat Source: ICF CHP Installation Database, 2013

15 o Sizes TYPICALLY range from 100s of kWs to several MWs (depending on 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 System Configurations 19 Source: HospitalGuidebook_ pdf HospitalGuidebook_1 907.pdf

16 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 of emergency Emergency Generators vs. CHP 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

17 o Reduces energy costs o Increases energy efficiency, helps manage costs, 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

18 Project Profiles: Example CHP Installations Example ScenarioCHP Facility Hospital Utilities ExpansionNorthwest Community Hospital Improved ENERGY STAR Building ScoreProMedica Health System – Wildwood Improved LEED Scoring – LEED PlatinumDell Children’s Medical Center of Central Texas Alternative FinancingJesse Brown VA Medical Center Addressing Momentary Power InterruptionsLake Forest Hospital Disaster Relief – Hurricane KatrinaMississippi Baptist Medical Center Disaster Relief – Super Storm SandyDanbury Hospital Disaster Prevention – Snow StormPresbyterian Homes Energy IndependenceThermal Energy Corporation (TECO) Energy Independence & Unique PartnershipsGundersen Lutheran Health System (La Crosse) Energy Independence & Public / Private PartnershipsGundersen Lutheran Health System (Onalaska)

19 Project Profile: Utilities Expansion Northwest Community Hospital Arlington Heights, IL Capacity: 4.6 MW Fuel: Natural Gas Prime Mover: Recip. Engines Installed: 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

20 Project Profile: Alternative Financing Jesse Brown VA Medical Center Chicago, IL Capacity: 3.4 MW Fuel: Natural Gas Prime Mover: Combustion Turbine Installed: 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.aspxe:http://w.distributedenergy.com/DE/Articles/Chicag

21 Project Profile: Increased ENERGY STAR Building Score ProMedica Health System - Wildwood Toledo, OH Capacity: 130 kW Fuel: Natural Gas Prime Mover: Microturbines Installed: 2013 Benefits include a reduction in annual energy costs and greenhouse gas emissions as well as a higher ENERGY STAR building score Source:

22 Project Profile: LEED Platinum Dell Children’s Medical Center of Central Texas Austin, TX Capacity: 4.6 MW Fuel: Natural Gas Prime Mover: Combustion Turbines Installed: 2009 First healthcare facility in the world to achieve a LEED Platinum certification by the U.S. Green Building Council (USGBC)

23 Project Profile: Addressing Instantaneous Power Interruptions Lake Forest Hospital Lake Forest, IL Capacity: 3.2 MW Fuel: Natural Gas Prime Mover: Recip. Engines Installed: 1997 Annual Instantaneous Power Interruptions were reduced from 50 down to 2 due to CHP installation

24 Project Profile: Disaster Relief, Hurricane Katrina Mississippi Baptist Medical Center Jackson, MS Capacity: 4.2 MW Fuel: Natural Gas Prime Mover: Combustion Turbines Installed: 1991 The independence provided by the CHP system allowed MBMC to continue operation relatively unaffected during Hurricane Katrina in 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: w.southeastcleanenergy.org/resources/reports/CHP-MBMC.pdf

25 Project Profile: Disaster Relief, Super Storm Sandy Danbury Hospital Danbury, Connecticut Capacity: 4.5 MW / 3 MW Standby Fuel: Natural Gas / Diesel Prime Mover: Combustion Turbine / Recip. Engine Backups Installed: 2011 During 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: anbury-Hospital-generates-power-for-its- patients php#photo

26 Project Profile: Addressing ExtendedPower Outages Presbyterian Homes Evanston, IL Capacity: 2.4 MW Fuel: Natural Gas Prime Mover: Recip. Engines Installed: 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

27 Project Profile: 100% Energy Independence Thermal Energy Corporation (TECO) Houston, TX Capacity: 48 MW Fuel: Natural Gas Prime Mover: Comb. Turbines Installed: 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.

28 Project Profile: Energy Independence & Unique Partnerships Gundersen Lutheran & City Brewery La Crosse, IL Capacity: 633 kW Fuel: Biogas Prime Mover: Recip. Engine Installed: 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.

29 Project Profile: Public & Private Partnerships Gundersen Lutheran & County Landfill Onalaska, IL Capacity: 1.2 MW Fuel: Landfill Gas Prime Mover: Recip. Engine Installed: 2011 Instead 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.

30 Advanced Manufacturing Office (AMO)manufacturing.energy.gov 34 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. 3 rd Party review of Engineering Analysis. Review equipment sizing and choices. Review specifications and bids, Limited operational analysis

31 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 CaseCHP Case Purchased Electricty, kWhPurchased Electricty, kWh88,250,1605,534,150 Generated Electricity, kWhGenerated Electricity, kWh082,716,010 On-site Thermal, MMBtu 426,00018,872 CHP Thermal, MMBtu 0407,128 Boiler Fuel, MMBtu532,50023,590 CHP Fuel, MMBtu0969,845 Total Fuel, MMBtu 532,500993,435 Annual Operating Costs Purchased Electricity, $Purchased Electricity, $$7,060,013$1,104,460 Standby Power, $$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 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

32 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 3 rd Party Build-Own-Operators of CHP Opportunities? 36 –How does the July 2014 Iowa Supreme Court Ruling on solar projects impact CHP 3 rd Party Ownership? * Incentives and Financing

33 o Healthcare organizations spend > $6.5B annually o Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals o For-profit hospitals can raise their earnings per share 1¢ by reducing energy 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 - p://www.energystar.gov/ia/business/chal enge/learn_more/Healthcare.pdf 2)DOE CHP Installation Database 3)US News’ Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY Presbyterian, NYU Langone, Indiana University) 37

34 Questions Cliff Haefke (312) A program sponsored by

35 Other Resources o 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 for Hospital Applications (Midwest CEAC) o Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings (DOE/EPA) https://www.ashrae.org/standards-research--technology/advanced-energy-design-guideshttps://www.ashrae.org/standards-research--technology/advanced-energy-design-guides 3- https://www.ashrae.org/standards-research--technology/advanced-energy-design-guideshttps://www.ashrae.org/standards-research--technology/advanced-energy-design-guides


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