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Combined Heat & Power (CHP) Opportunities for Hospital Facilities

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Presentation on theme: "Combined Heat & Power (CHP) Opportunities for Hospital Facilities"— Presentation transcript:

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

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

3 Why CHP in Hospitals? Healthcare organizations spend > $6.5B annually Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals For-profit hospitals can raise their earnings per share 1¢ by reducing energy costs just 5% CHP systems can reduce energy costs and carbon emissions CHP systems can maintain hospitals’ power and heat during man- made and natural disasters 200+ hospitals operate CHP systems today 7 of Top 16 U.S. hospitals use CHP according to US News ENERGY STAR - DOE CHP Installation Database 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 Assistance Partnerships (TAPs)
US DOE CHP Technical Assistance Partnerships (TAPs) 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) Today the 7 TAPs promote the use of CHP, District Energy, and Waste Heat to Power Technologies 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)
NORTHEAST MIDWEST Tom Bourgeois Pace University John Cuttica University of Illinois at Chicago Dave Sjoding Washington State University .edu Beka Kosanovic University of Massachusetts Amherst Cliff Haefke University of Illinois at Chicago PACIFIC Terry Clapham California Center for Sustainable Energy org Gene Kogan California Center for Sustainable Energy Jim Freihaut The Pennsylvania State University jdf I ·­·• SOUTHEAST SOUTHWEST Christine Brinker Southwest Energy Efficiency Project Isaac Panzarella North Carolina State University DOE CHP Technical Claudia Tighe Jamey Evans Patti Welesko Garland Ted Bronson CHP Deployment Lead Project Officer. Golden Field Office CHP Technical Support Coordinator DOE CHP TAPs Coordinator Assistance Office of Energy Efficiency and Office of Energy Efficiency and Oak Ridge National Laboratory Power Equipment Associates Renewable Energy Renewable Energy Supporting. Office of Energy Efficiency Supporting. Office of Energy Partnerships (TAPs): U.S. Department of Energy U.S. Department of Energy and Renewable Energy Efficiency and Renewable Energy Program Contacts Phone: Phone: U.S. Department of Energy Phone: jam Phone:

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

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

8 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: Space Heating / Cooling Process Heating / Cooling Dehumidification CHP provides efficient, clean, reliable, affordable energy – today and for the future. 12 Source: s/chp_clean_energy_solution.pdf

9 CHP Technology Components
Prime Mover Electricity Fuel Generator Natural Gas Propane Biogas Landfill Gas Coal Steam Waste Products Others Reciprocating Engines Combustion Turbines Microturbines Steam Turbines Fuel Cells On-Site Consumption Sold to Utility Thermal Steam Hot Water Space Heating Process Heating Space Cooling Process Cooling Dehumidification Heat Exchanger 13

10 Emerging Drivers for CHP
o Benefits of CHP recognized by policymakers DOE / EPA CHP Report (8/2012) 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 State Portfolio Standards (RPS, EEPS, Tax Incentives, Grants, standby rates, etc. Favorable outlook for natural gas supply and price in North America Opportunities created by environmental drivers Energy resiliency and critical infrastructure Executive Order: office/2012/08/30/executive-order-accelerating- investment-industrial-energy-efficiency Report: rgy/pdfs/chp_clean_energy_solution.pdf 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 CO2 each year 87% of capacity – industrial 71% of capacity – natural gas fired Source: ICF International

12 Favorable Characteristics for CHP Applications
Concern about energy costs Concern about power reliability Concern about sustainability and environmental impacts Long hours of operation Existing thermal loads Central heating and cooling plant Future central plant replacement and/or upgrades Future facility expansion or new construction projects EE measures already implemented Access to nearby renewable fuels Facility energy champion 16

13 Over 200 hospitals are using CHP today…
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 3.5 MA 9 108.8 MD 15.0 ME 5.1 MI 6 11.6 MN 30.1 MO 5.0 State # Sites Capacity (MW) MS 1 4.2 NC 2 5.8 NH 9.2 NJ 8 11.1 NV 1.0 NY 39 56.1 OH 3 2.2 PA 11 83.9 RI 7 30.1 TN 3.5 TX 72.4 VA 3.2 VT 0.5 WI 11.7 Source: ICF CHP Installation Database, 2013 17

14 Existing CHP Installations in U.S. Hospitals
o 212 facilities generating MW CHP Systems (#) CHP Gen Capacity (MW) 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 18 Source: ICF CHP Installation Database, 2013

15 Typical Hospital CHP System Configurations
Sizes TYPICALLY range from 100s of kWs to several MWs (depending on facility size and usually below 10 MW) Common CHP prime mover types in hospitals are reciprocating engines, combustion turbines, and/or steam turbines (mostly fueled by natural gas) 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) 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 19 Source: HospitalGuidebook_ pdf

16 Emergency Generators vs. CHP Systems
Minimum requirement, sized to meet “life critical loads Hospitals are installing larger generators to protect more and more hospital loads Diesel fueled – high emissions & limited amount of stored fuel (hours versus days of operation) Not designed or capable of continuous operation for long periods of time – rarely operates Financial payback only in times of emergency CHP Systems Sized to meet thermal or electric loads – operates continuously to meet those loads Natural gas fueled – low emissions Does not replace emergency generator set for “life critical” loads Reduces overall size and capacity of emergency generator sets Emergency generator sets become backup to the backup; much higher reliability Good financial return

17 CHP Benefits to Hospitals
Reduces energy costs Increases energy efficiency, helps manage costs, maintains jobs, etc. Reduces risk of electric grid disruptions & enhances energy reliability Provides stability in the face of uncertain electricity prices

18 Project Profiles: Example CHP Installations
Example 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)

19 Project Profile: Northwest Community Hospital Arlington Heights, IL
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.aspx

21 Project Profile: ProMedica Health System - Wildwood Toledo, OH
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: Lake Forest Hospital Lake Forest, IL
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: Mississippi Baptist Medical Center Jackson, MS
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:

25 Project Profile: Danbury Hospital Danbury, Connecticut
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: Presbyterian Homes Evanston, IL
Addressing Extended Power 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: Gundersen Lutheran & City Brewery La Crosse, IL
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: Gundersen Lutheran & County Landfill Onalaska, IL
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 CHP TAP Project Development Technical Assistance
Procurement, Operations, Maintenance, Commissioning Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Quick screening questions with spreadsheet payback calculator. Uses available site information. Estimate: savings, Installation costs, simple paybacks, equipment sizing and type. 3rd Party review of Engineering Analysis. Review equipment sizing and choices. Review specifications and bids, Limited operational analysis Advanced Manufacturing Office (AMO) 34 manufacturing.energy.gov

31 DOE TAP CHP Screening Analysis
Annual Energy Consumption Base Case CHP Case Purchased Electricty, kWh 88,250,160 5,534,150 Generated Electricity, kWh 82,716,010 On-site Thermal, MMBtu 426,000 18,872 CHP Thermal, MMBtu 407,128 Boiler Fuel, MMBtu 532,500 23,590 CHP Fuel, MMBtu 969,845 Total Fuel, MMBtu 993,435 Annual Operating Costs Purchased Electricity, $ $7,060,013 $1,104,460 Standby Power, $ $0 On-site Thermal Fuel, $ $3,195,000 $141,539 CHP Fuel, $ $5,819,071 Incremental O&M, $ $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 o High level assessment to determine if site shows potential for a CHP project – Qualitative Analysis Energy Consumption & Costs Estimated Energy Savings & Simply Payback CHP System Sizing Quantitative Analysis Understanding project drivers Understanding site peculiarities

32 Incentives and Financing
10% Federal Investment Tax Credit (ITC) for CHP DOE Better Buildings Challenge, Financial Allies have committed nearly $2B to fund EE projects* Waste Heat Recovery (WHR) is eligible in MidAmerican Energy Efficiency Resource Standard (EERS) 3rd Party Build-Own-Operators of CHP Opportunities? – How does the July 2014 Iowa Supreme Court Ruling on solar projects impact CHP 3rd Party Ownership? *

33 Why CHP in Hospitals? Healthcare organizations spend > $6.5B annually Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals For-profit hospitals can raise their earnings per share 1¢ by reducing energy costs just 5% CHP systems can reduce energy costs and carbon emissions CHP systems can maintain hospitals’ power and heat during man- made and natural disasters 200+ hospitals operate CHP systems today 7 of Top 16 U.S. hospitals use CHP according to US News ENERGY STAR - DOE CHP Installation Database 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)

34 Questions Cliff Haefke (312) 355-3476 chaefk1@uic.edu
A program sponsored by

35 Other Resources Powering the Future of Health Care – Financial and Operational Resilience: A CHP Guide for Massachusetts Hospital Decision Makers (HCWH) Advanced Energy Design Guide for Large Hospitals (ASHRAE) Advanced Energy Design Guide for Small Hospitals and Healthcare Facilities (ASHRAE) Combined Heat & Power (CHP) Resource Guide for Hospital Applications (Midwest CEAC) 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-guides 4 - 39 5 -


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