Presentation on theme: "1 RED | the new greenwww.recycled-energy.com 1/15/08 West Virginia: Opportunities to Capture Waste Energy Presentation to Senate Committee on Economic."— Presentation transcript:
1 RED | the new greenwww.recycled-energy.com 1/15/08 West Virginia: Opportunities to Capture Waste Energy Presentation to Senate Committee on Economic Development Dick Munson, Recycled Energy Development January 15, 2008
2 RED | the new greenwww.recycled-energy.com 1/15/08 Recycled Energy Development $1.5 billion of equity. Eager to invest in West Virginia, with $200 million of clean energy projects already under discussion. Goal is to reduce greenhouse gas emissions profitably. Helps industries slash energy costs, increase their competitiveness, maintain and create jobs. Avoids line losses and transmission additions. RED principals have built more than 250 power plants, costing more than $2 billion and producing more than 10,000 megawatts.
3 RED | the new greenwww.recycled-energy.com 1/15/08 Inefficient Power System Three units of fuel are used to generate each unit of power – 33 percent efficiency. Efficiency has not improved since President Eisenhower. Thomas Edison’s power plants achieved 50% efficiency by capturing excess heat to warm nearby buildings. U.S. is an international laggard. Germany, Japan, and other industrialized countries capture heat and power at more than twice the U.S. rate. Capturing waste heat -- energy recycling – could generate 200,000 megawatts – equal to output of 400 coal plants.
4 RED | the new greenwww.recycled-energy.com 1/15/08 Rising Electricity Costs Important difference between today’s average power cost and the cost of building future power plants. TVA and Ontario are tackling with Standard Offers. Clean Air Interstate Regulations (CAIR) and mercury rules will add $550-850/kw for existing plants. Average WV coal plant is 45 years old. New plants cost $2,500/kw, up from $800/kw in late 1990s. Fuel costs are 3-5 times above 1990 levels, and long-term contracts now below the spot market. Pending expenses: transmission expansion, greenhouse-gas reductions (carbon credits of $20/ton would add 2 cents/kwh).
5 RED | the new greenwww.recycled-energy.com 1/15/08 What is Energy Recycling? Converting industrial waste energy to heat and power: Exhaust heat from any industrial process or power generation, Industrial tail gas that would otherwise be flared, incinerated or vented, Pressure drop in any gas. Recycling waste heat from power generation: Local combined heat and power (CHP) plants recycle byproduct heat to displace the boiler fuel of nearby thermal users.
6 RED | the new greenwww.recycled-energy.com Conventional Central Generation Fuel 100% 33% delivered electricity Power Plant T&D and Transformers Pollution 67% Total Waste Line Losses 9-20%
7 RED | the new greenwww.recycled-energy.com Combined Heat and Power (CHP) Fuel 100% Steam Electricity Chilled Water 90% 10% Waste Heat, no T&D loss Pollution (At or near thermal users) CHP Plants
8 RED | the new greenwww.recycled-energy.com Recycled Energy (At user sites) Waste Energy 100% 10% Waste Heat Steam Generator 65% Steam 25% Electricity Back-pressure Turbine Generator No Added Pollution
9 RED | the new greenwww.recycled-energy.com 1/15/08 96 MW Generated from Coke Oven’s Waste Heat (Mittal Steel)
10 RED | the new greenwww.recycled-energy.com 1/15/08
11 RED | the new greenwww.recycled-energy.com 1/15/08 Energy Security Act Encourages Recycled Energy (signed by President Bush on December 19, 2007) Defines clean energy as power plants converting at least 60% of the fuel’s potential energy to useful thermal energy, electricity, mechanical energy, chemical output, or any combination thereof. Provides $10/megawatt-hour grant for first three years of electricity produced from clean energy projects. Orders Environmental Protection Agency to create a waste-energy inventory.
12 RED | the new greenwww.recycled-energy.com 1/15/08 West Virginia’s Draft Clean Energy Standard Offer Program (CESOP) West Virginia could encourage development of recycled energy and other clean technologies with a 'Clean Energy Standard Offer Program' (CESOP) Offer 20-year CESOP contracts for electricity generated by qualifying clean technology facilities, as defined in Subtitle D of the 2007 Energy Act. Pay roughly 80% of the cost of delivering power from new coal plants. Obtain a discount against current best deal for new power. Embrace opportunity to capture waste heat from West Virginia’s energy-intensive industries. Increase the competitiveness of those industries.
13 RED | the new greenwww.recycled-energy.com 1/15/08 Thank you Dick Munson Senior Vice President, Recycled Energy Development email@example.com 630/590-6035