Steam Digest 2001

ReliableSystemsandCombinedHeatandPower
1
Reliable Systems and
Combined Heat and
Power
David Jaber, (formerly with) Alliance to Save Energy
Richard Vetterick, TRC Energy
ABSTRACT
Leading industrial companies and institutions are
forever seeking new and better ways to reduce
their expenses, reduce waste, meet environmental
standards, and, in general, improve their bottom-
line. One approach to achieving all of these goals
is a 100 year-old concept, cogeneration or com-
bined heat and power. Efficiency of cogeneration
systems can reach 80 to 85 percent. Benefits of
this throughout the plant include reliability en-
hancements and cost and emission reductions. Co-
generation schemes and systems can be modified
to the plant design. The applicability of cogen-
eration to an industrial plant depends on the varia-
tions in steam and energy required for operation
on both daily and yearly scales.
Cogeneration is receiving increased attention due
to newer technologies that are making cogenera-
tion opportunities available to smaller-sized ther-
mal plants. Combined with electric utility de-
regulation opportunities, this is causing many in-
dustrial decision-makers to seriously consider co-
generation for their manufacturing plants. The
advent of energy service companies has made fi-
nancing of cogeneration projects attractive, help-
ing to guarantee an acceptable return on invest-
ment.
Whether steam is created through cogeneration or
separate generation, many opportunities exist to
improve performance and productivity in steam
generation, distribution, and recovery. These op-
portunities are captured by the systems approach
promoted by programs such as the Department of
Energys (DOE) Steam BestPractices.
INTRODUCTION
Industrial and institutional plants need thermal en-
ergy, generally as steam, for manufacturing pro-
cesses and heating. They also need electric power
for motors, lighting, compressed air, and air con-
ditioning. Traditionally, these fundamental needs
are met separately. Steam is produced with in-
dustrial boilers and electricity is purchased from a
local utility company. However, these needs can
be met at the same time with cogeneration, using
the same heat source and on a regional scale, greatly
increasing the overall efficiency of energy gen-
eration.
Cogeneration is the concurrent production of elec-
trical power and thermal energy from the same
heat source. Large steam users commonly take
advantage of cogeneration by using high pressure
steam with a back pressure turbine to generate
electricity, and extract lower pressure steam from
the turbine exhaust for their process needs. This
approach provides reliable energy while reducing
their electric utility bills and providing thermal
energy for industrial processes.
The steam turbine generators used by electric utili-
ties require moderately high steam pressures and
temperatures, with levels ranging as high as 4,400
psig. and 1,100 F respectively. This is expanded
down to approximately 20 to 25 in Hg vacuum
and 90 F to 100 F in the condenser, where the
latent heat of vaporization is removed and dis-
charged to the atmosphere, lakes, or rivers. In-
dustrial processes are typically smaller systems us-
ing lower pressure and temperature levels, rang-
ing down from approximately 1,000 psig. and 750
F to 150 psig. and 366 F (saturation tempera-
ture). The lowest heat intensity level processes
are steam heating systems where pressures and tem-
peratures of 15 psig. and 250 F are frequently
utilized.
THE BEST OF BOTH WORLDS:
COGENERATION
The steam generation cycle alone has a typical
thermal efficiency of approximately 80 percent,
depending on system loads, the fuel utilized, and
the heat traps designed into the back-end of the
boiler. Industrial boilers and utility boilers can
achieve these efficiency levels while producing
steam for their respective applications. Note that
this efficiency level does not take into account the
efficiency of the applications using the process
steam or the efficiency of the steam distribution
system.
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Most utility thermo-electric steam power plants
operate in the range from 30 to 40 percent effi-
ciency depending on the throttle pressure and tem-
perature, the number of reheater loops, the num-
ber of feedwater heaters utilized, and the type of
heat traps utilized on the boiler. The gas turbine
driven electric generator has historically operated
in the high 20 to 30 percent range, but with todays
high gas temperatures and compressor outlet pres-
sures, the efficiency is ranging upwards of 35 per-
cent. The latest utility power plant designs utiliz-
ing a combined cycle (a form of cogeneration)
have high heat intensity gas power turbines ex-
hausting into heat recovery boilers. Steam from
these boilers then feeds a moderate heat intensity
steam turbine generator. The combined operating
efficiencies are in the 55 to 58 percent efficiency
range. There are prototype designs being tested
that exceed 60 percent.
However, modern industrial steam-electric cogen-
eration systems can boost overall thermal effi-
ciency levels to an enviable 80 to 85 percent by
recapturing enough waste heat from electricity-
producing gas turbines to meet a portion of the
industrial process requirements.[1] Typical non-
industrial cogeneration users are college and uni-
versity campuses, hospitals, municipal heating
systems, and large commercial buildings. In ad-
dition to achieving high system thermal efficiency,
steam-electric cogeneration systems can, if de-
signed properly:
Enhance the reliability of the power supply
with on-site generating capacity to support op-
erations during utility and electrical distribu-
tion line upsets.
Reduce fuel costs by 15 to 20 percent by ex-
tracting more energy from the fuel when op-
erating in the cogeneration format.
Reduce or eliminate power purchases.
Reduce overall emission levels from lower fuel
use.
Potentially provide additional revenue through
sale of excess power to a district energy sys-
tem or the utility electric grid.
Maintain the high reliability of the single
boiler process steam system by utilizing
supplemental firing.
In terms of emissions and dollar savings, the dif-
ference between cogeneration and separate steam
and electricity generation can be significant. Typi-
cally, cogeneration cuts fuel costs (which can range
from 30 to 40 percent of the selling price of power)
by increasing the amount of salable product
per unit of energy.
OUTLOOK
Cogeneration represents over half of all new power
plant capacity built in North America in the last
10 years. This includes utilities and independent
power producers (IPPs) as well as cogeneration
by industrial companies and institutions. As of
1994, it accounted for 6 percent of total U.S. elec-
tricity-generating capacity. Of the electricity ac-
tually generated, 9 percent came from cogenera-
tion.
Deregulation of the electricity market could open
the door for renewed growth in cogeneration, but
lots of potential utility and permitting-barriers still
remain. Lower demand for electricity and in-
creased utility resistance to industrial cogenera-
tion are expected to diminish the prospects of see-
ing any new incentives for installing cogenera-
tion.[2] However, utility deregulation and increas-
ing concern about climate change are raising ques-
tions relative to the long-term availability and re-
liability of conventional power. These concerns
and the availability of new low-cost generating
technologies have piqued the interest of indus-
trial and commercial customers with high ther-
mal loads, high electricity rates, or both.
The deregulation opportunity is expected to
present itself in two important areas: increased
competition and increased marketability of
low cost cogeneration-produced electricity.
Increased competition in the electric market
will result in lower electricity rates, which
could make it more difficult for cogeneration
projects to compete with larger utility com-
panies. Again, this difficulty will vary across
the country as electricity rates vary. Market-
ability of cogenerated power will increase
because cogenerators will be able to sell ex-
cess power to customers other than their lo-
cal utility. That means industrial cogenerators
will be able to sell electricity to the public, to
other industrials, to power brokers, and to
distribution companies by wheeling it to them
Steam Digest 2001
ReliableSystemsandCombinedHeatandPower
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through the local utilitys distribution system.
Retail wheeling will be especially attractive
in areas with very high electricity rates.
TYPES OF COGENERATION SYSTEMS[3]
There are three basic types of cogeneration sys-
tems, categorized by the prime mover of the
system: engine-based, steam turbine-based, and
gas turbine-based. Each is briefly characterized
below.
Engine-based System Engine-based System Engine-based System Engine-based System Engine-based System
Engine-based systems use an internal combustion
engine to power a generator. Waste heat is re-
claimed by sending exhaust to a steam generator,
and by extracting heat from the engine and oil
cooling systems. Since engine-based systems are
only capable of producing low-pressure steam, they
cannot be used by industries requiring pressure
over 30 psig.
Of the three major types of cogeneration, engine-
based systems possess the highest power-to-steam
ratio.
Power-to-steam ratio: > 1.
Size range: 10 kW 16 MW; Typical size: 1
MW.
Usable fuels: Gasoline and oil.
Unfortunately, engine-based cogeneration systems
suffer from frequent breakdowns, thereby raising
their operating and management costs, and increas-
ing the costs of firm power back-up from local
utilities. However, they have fairly low capital
costs, simple operating and repair procedures, and
good load-following ability. In terms of emis-
sions, diesel engines produce substantial amounts
of nitrous oxide (NO
x
) and particulates while natu-
ral gas engines emit unburned hydrocarbons. Both
types, however, emit low amounts of carbon mon-
oxide (CO) and sulfur dioxide (SO
2
).
Steam T Steam T Steam T Steam T Steam Turbine-based System urbine-based System urbine-based System urbine-based System urbine-based System
The steam turbine-based system relies on a con-
ventional boiler to generate high-pressure steam.
The high-pressure steam is then expanded across
a high pressure turbine and the exhaust is routed
to the process steam header. The high-pressure
turbine generates electricity while functioning sim-
ply as a pressure reducing valve, providing the
desired steam conditions to the process or heating
system. The electrical power is generated at very
high levels of thermal efficiency (95 to 96 per-
cent) as there are no losses to the condenser. This
is referred to as a backpressure turbine (see Fig-
ure 1).
Power-to-steam ratios: 0.1-0.2.
Usable fuels: Gas, coal, oil, natural gas,
biomass, wood, municipal solid waste, or
industrial waste.
Size range: 10 kW 400 MW, Typical
size: 10 MW.
Back-Pressure Steam T Back-Pressure Steam T Back-Pressure Steam T Back-Pressure Steam T Back-Pressure Steam Turbine-Systems urbine-Systems urbine-Systems urbine-Systems urbine-Systems
These systems are good producers of heat, but low
power producers. Therefore, they are particularly
useful where large amounts of steam (a large ther-
mal load) and moderate amounts of electricity (a
low electric load) are needed. This system also
allows for large electrical drive motors to be re-
Figure 1: Boiler with Backpressure Turbine
Figure 2: Gas Turbine with Heat Recovery Steam
Generator
Steam Digest 2001
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placed with back-pressure turbine drives, thereby
replacing electrical consumption with steam at ap-
proximately 90 percent efficiency. The steam tur-
bine drives are durable, reliable, and good load-
followers. Overall emissions depends on the fuel
used to fire the boiler. Coal and biomass produce
NO
x
, SO
x
, and particulates, while oil and natural
gas produce CO and NO
x
.
Gas T Gas T Gas T Gas T Gas Turbine-based System urbine-based System urbine-based System urbine-based System urbine-based System
Gas turbine systems use a conventional combus-
tion turbine to generate electricity. After electric-
ity is generated, the exhaust from the gas turbine
is fed to a thermal process, such as a heat recovery
steam generator, to produce steam (Figure 2).
Power-to-steam ratios: 0.6 - 1.0.
Usable fuels: natural gas and oil.
Size range: .02 MW - 300 MW
Typical size: 5 MW.
Gas turbines efficiently produce power, steam, and
heat in concert and are, therefore, very attractive
for cogeneration uses. However they require a
high-quality fuel, are poor load-followers, and
their technical complexity requires specially-
trained staff to maintain them. In place of in-
facility staff, smaller units can be offered with
maintenance contracts and spare units kept avail-
able for quick changeouts.
Various elements of these systems can be com-
bined depending on power and steam needs. For
example, a combined-cycle gas turbine system
could divert available steam to turn a steam tur-
bine for more electricity, which can boost the
power-to-steam ratio to the 1.5 range. Thus, when
the process thermal load is down, the steam can
be used for peaking power.
IS COGENERATION RIGHT FOR YOU?
With todays technology developments in small
gas turbines, along with the use of supplemental
firing to support thermal peak loads swings, co-
generation is an economical and practical choice
for small energy users as well as the large process
industry users. As cogeneration attracts a larger
base of applications, potential for improved en-
ergy efficiency and reduced environmental pollu-
tion increases. The DOE recently launched the
Industrial Combined Heat and Power (CHP) Ini-
tiative to further enhance the adoption of cogen-
eration and related systems.
Characteristics of Facilities W Characteristics of Facilities W Characteristics of Facilities W Characteristics of Facilities W Characteristics of Facilities Well- ell- ell- ell- ell-
Suited for Cogeneration Suited for Cogeneration Suited for Cogeneration Suited for Cogeneration Suited for Cogeneration
Industries that use consistent, simultaneous quan-
tities of both electricity and steam with relatively
high energy costs are the best candidates for co-
generation adoption. These often include food
processing, chemical manufacturing, primary
metals, commercial laundries, drywall manufac-
turers, and paper mills. Demand for both steam
and electricity should be year-round and have an
acceptable mix of loads over the course of a day.
The key to success of these systems is the ability
to match the size and loads of the combined elec-
tric and steam systems.
This [cogeneration] project is an important step
in increasing the overall efficiency and cost effec-
tiveness of the operation at the Hawkins Point
Plant. -John Davis, Millennium Chemical
A perfect fit is not likely to happen, and the sys-
tem must be properly sized and engineered to
achieve maximum efficiency, reliability, and op-
erability. Numerous combined cycles have looked
quite good on paper, only to fall short of their
goal because the load requirements of the two sys-
tems didnt match as planned. Options in proper
management of steam facilities include:
Business as usual.
Maintaining the status quo with imple-
mentation of best maintenance and op-
eration practices.
Upgrading to a cogeneration system.
Outsourcing energy decisions to a third-
party such as an energy services company.
Websites with more information on cogeneration
include www.oit.doe.gov/chpchallenge and
www.nemw.org/uschpa.
SYSTEMS THINKING
When considering which option to take, systems
thinking offers the most advantageous way to op-
erate a plant. Systems thinking applied to a facil-
ity involves looking at the overall plant resource
and energy consumption and production to deter-
Steam Digest 2001
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mine the areas in greatest need of optimization. It
also applies to looking at systems individually. In
incorporating systems thinking, it is useful to use
The Natural Step (TNS).[4] TNS guides busi-
nesses in developing for their long-term future.
It has a framework based on simple thermody-
namic principles and has developed several tools
as guides. One of these tools, the Compass, en-
tails:
1. Visualizing how you would like to be operat-
ing decades into the future.
2. Assessing your current inputs, outputs, and
operating practices.
3. Formulating a path to help you achieve this
desired level by changing practices, policies,
and operations.
This provides direction to the company as a whole.
The same principle applies to energy systems. First,
visualize how the steam system should be operat-
ing. Second, assess current operation. And third,
identify the areas for improvement and the re-
sources which allow them to be changed.
Cogeneration can be an integral part of the path to
the ideal state of operation. However, the current
state of practices and operations must already be
conducive to making the move to cogeneration.
BESTPRACTICES
Systems thinking and identification of areas of im-
provement can often be difficult. Fortunately, a
clearinghouse of resources has been established for
steam system management. BestPractices Steam
resources, offered by the DOEs Office of Indus-
trial Technology (OIT) in conjunction with the
non-profit Alliance to Save Energy, encourages a
systems perspective that views individual energy-
consuming components as part of a total system,
focusing on the entire plant where significant sav-
ings can be found. Resources include tip sheets,
case studies, lists of training courses, technical ref-
erences and standards, assessment tools, and op-
erational handbooks. These are available on-line
or through the Industries of the Future (IOF)
Clearinghouse.
What is BestPractices? What is BestPractices? What is BestPractices? What is BestPractices? What is BestPractices?
BestPractices brings together the best-available and
emerging technologies, and practices to assist in-
dustries to improve their competitive position, of
which steam is one component. Through the
BestPractices approach, industry has easy access
to both near-term and long-term solutions for
their total manufacturing plant operations today.
Any plant can realize near-term cost-effective
energy savings between 10 to 30 percent in three
to five years. By applying the best technologies
and practices available, industry can:
Prioritize energy efficiency investments
for the greatest return on investment.
Receive training, tools and documents to
help implement projects.
The Industries of the Future Clearinghouse has
more information on how to begin implementa-
tion of best practices.
Participation in BestPractices Steam efforts is open
to steam system operators and managers, devel-
opers and distributors of steam systems equipment,
as well as steam trade and membership organiza-
tions. This active participation ensures that
BestPractices provides tools and resources that are
valuable to industrial steam operators and man-
agers. It also assists steam equipment and service
providers, such as utilities, distributors, manufac-
turers, consulting engineers, and others promot-
ing steam efficiency by serving as a valuable source
of third-party, credible information.
CONCLUSION
With cogeneration achieving efficiency levels over
80 percent, fuel costs and emissions are lowered
and additional profits are available from the sale
of excess power. Advanced design and new tech-
nology has lowered generation capacity tremen-
dously, to the point where even small plants can
feasibly install cogeneration facilities. Cogenera-
tion combined with the energy delivery improve-
ments suggested by BestPractices Steam increases
these benefits even more. However, before in-
stalling a cogeneration system there are several
screening factors to be considered, including in-
dividual thermal profile, initial capital outlay, per-
mitting standards, and readiness to be in the power
Steam Digest 2001
ReliableSystemsandCombinedHeatandPower
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provider business. Existing steam system compo-
nents which support cogeneration equipment must
be running as efficiently as possible. BestPractices
Steam helps prepare industry for future cogenera-
tion. In addition, the same wealth of benefits ac-
crues for improved environmental and economic
performance. While the future of cogeneration in
states deregulation remains hazy, it will continue
to be a powerful generation option.
For more information contact:
Richard Vettrick
TRC Energy
Email: rvettrick@netscape.net
Phone: (330) 864-2549
Web address: www.trc-energy.qpc.com
REFERENCES
1. Steam: Its Generation and Use, 40th Edition,
Babcock & Wilcox, Chap. 2: Thermodynam-
ics of Steam, 1992, Barberton, OH.
2. 1997 Industrial Cogeneration Report, Chap-
ter 2, Gas Research Institute, Chicago, IL.
3. Ibid.
4. TNS is a movement dedicated to helping un-
derstand our social and environmental prob-
lems and moving beyond them by redesigning
our interactions with our surroundings as busi-
nesses, communities, and individuals.