sc aee mar03

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Creating Value from Steam Pressure “HEAT-FIRST CHP”: FINDING THE FREE ELECTRIC POWER IN YOUR STEAM PLANT Presented to AEE 2003 Annual Expo and Conference The Business of Energy Management in California San Dimas, CA March 20, 2003 Sean Casten Chief Executive Officer 161 Industrial Blvd. Turners Falls, MA 01376 www.turbosteam.com

The relationship between heat and power production: 4 observations : 

The relationship between heat and power production: 4 observations It is physically impossible to make electricity without also making heat – failure to recover this heat only serves only to increase the cost of power production. 92% of the power made in the U.S. is made without recovering this heat. The power industry is thus the only industry in which consumers can make a product more cleanly, cheaply and efficiently than industry professionals. Every CHP installation reduces the need for less-efficient, dirtier generation on the grid, leading to a net reduction in fuel combustion and a net reduction in energy costs, as well as increasing local power reliability.

The proof: Steady centralization of power generation is directly responsible for its steadily eroding efficiency. : 

The proof: Steady centralization of power generation is directly responsible for its steadily eroding efficiency. The Costs of Failure (U.S. only) ~$100 billion too much money spent on energy each year Over 1 billion too many tons of CO2 emitted from low-efficiency power generation each year.

The first choice a prospective CHP user must consider is which “flavor” of CHP is most appropriate.: 

The first choice a prospective CHP user must consider is which “flavor” of CHP is most appropriate. “Power-first” design: prime mover + heat recovery Recovered thermal energy displaces boiler fuel, reducing the delivered cost of electricity. Focus is electricity with steam as a byproduct Usually designed to maximize power output, then recover as much heat as is economically feasible. “Heat first” designs: steam boiler + power recovery Recovered electricity displaces purchased electricity, reducing the cost of steam. Focus is on thermal with electricity as a byproduct Usually designed to maximize thermal output, then recover as much electricity as is economically feasible.

Technical summary of “heat first CHP”: typical steam plant design: 

Technical summary of “heat first CHP”: typical steam plant design Boiler Fuel Feed water H.P. steam Header High pressure steam process load Medium pressure steam process load Low pressure steam process load Pressure Reducing Valve (PRV) PRV

Our turbine-generators deliver the same pressure drop as a PRV – but produce useful electricity in the process.: 

Our turbine-generators deliver the same pressure drop as a PRV – but produce useful electricity in the process. Low Pressure steam out Electricity High Pressure steam in Note that this generator is sized to the thermal rather than electric load (thus “heat-first”)

We have installed 95 systems in the U.S., and 155 worldwide.: 

>10,000 kW 5001 – 10000 kW 1001 – 5000 kW 501 – 1000 kW 1 – 500 kW We have installed 95 systems in the U.S., and 155 worldwide. Non-U.S. 17 countries 60 installations 36,000 kW

By reducing steam costs, Turbosteam solutions create financial benefits and plant design flexibility.: 

By reducing steam costs, Turbosteam solutions create financial benefits and plant design flexibility. Retail Electricity Rate “All-In Cost of Generated Heat” Cost of delivered thermal energy before power recovery Cost of delivered boiler fuel Where note 2 applies, plants develop substantial downstream flexibility, since steam-driven equipment – e.g., dryers, chillers, etc. – becomes more cost-effective than direct-fueled alternatives.

How to calculate the cost of power generation from backpressure turbine-generators.: 

How to calculate the cost of power generation from backpressure turbine-generators. Thermodynamics 1st Law Balance Efficiency Compare: this is nearly 3X the efficiency of the U.S. power grid.

In actual operation, BP electricity looks free… or better (data from Middlebury College) : 

In actual operation, BP electricity looks free… or better (data from Middlebury College) TG Set #2 Installed TG Set #3 Installed

The opportunity for heat-first CHP is entirely a function of a given facility’s thermal load.: 

The opportunity for heat-first CHP is entirely a function of a given facility’s thermal load. Recover electric power from existing pressure reduction stations Sized to downstream thermal load Maximize value by increasing thermal loads or pressure drop Create pressure reduction opportunities in existing steam networks Increase boiler pressures – design and/or operating Reduce steam utilization pressure (often possible due to existing safety factors) Convert mismatches in thermal generation and consumption into electricity Condense steam generated in waste-disposal boilers (sawdust boilers, thermal oxidizers, etc.) Recover steam energy from existing vents

Sample installation: Morning Star Packing Company (California): 

Sample installation: Morning Star Packing Company (California) Tomato processor – produces 40% of tomato paste used in U.S. during 3 month operating season Startup: 1995 (2 systems), 1999 (3rd system) High pressure boilers produce steam for tomato cookers PRV replacement + boiler pressure increase Turbosteam systems generate 3,000 kW, reduces steam costs by $2.50/Mlb, reduces CO2 emissions by 2,700 tons/year. Plant completely insulated from CA power crisis in 2000 >60% Project ROA

Sample installation: Brattleboro Kiln Dry (Vermont): 

Sample installation: Brattleboro Kiln Dry (Vermont) Largest custom-lumber dryer in New England Startup: 1989 Sawdust-fired boiler converts millwaste into steam which is used to heat on-site lumber kilns PRV replacement Turbosteam system generates 380 kW, reduces steam costs by $1.75/Mlb, reduces CO2 emissions by 570 tons/year 35% Project ROA

We have also been able to find opportunities throughout the industrial, commercial and institutional market. : 

We have also been able to find opportunities throughout the industrial, commercial and institutional market. Turbosteam’s installations: Chemical/Pharmaceuticals 22 Food processing 21 District Energy 20 Lumber & Wood Products 18 Petroleum/Gas Processing 17 Colleges & Universities 12 Commercial Buildings 8 Pulp & Paper Mills 6 Hospitals 6 Military Bases 5 Waste-to-Energy 3 Textiles 1 Prisons 1 Auto manufacturing 1 KEY Industrial Commercial Institutional

So is there an opportunity in your facility? : 

So is there an opportunity in your facility? Typical Values Extreme Values Target Financial Return <2 years simple payback Above-market returns and/or Non-financial drivers