CHP: An Efficient Energy Solution
CHP: An Efficient Energy Solution 2015 APGA Annual Conference
John Zuk VP of Sales & Marketing Philadelphia Gas Works
Today’s Agenda • Combined Heat and Power (CHP) • What is CHP? • How Does it Work? • Why CHP Makes Sense • Environmental / Other Benefits • Natural Gas Stability • PGW’s Success Story • How does CHP affect APGA?
What is CHP? • Combined Heat and Power (CHP) is the sequential or simultaneous production of two different forms of useful energy – electrical and thermal • Single, primary energy source • Single, integrated system
How Does it Work?
Why CHP Makes Sense • Waste heat recovery increase overall efficiency For same output:
an efficiency of 47% versus 85% *Comparable with results from the DOE. Information obtained from Energy Solutions Center (ESC)
Environmental Benefits • CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy • Natural gas is the cleanest burning fossil fuel • Carbon dioxide (CO2), nitrogen oxides (NOx) and sulfur dioxide (SO2) emissions are significantly reduced • According to the U.S. Department of Energy (DOE), the current fleet of CHP systems reduces U.S. carbon dioxide emissions by 240 million metric tons
Other Benefits • There is an abundant supply of natural gas – 90 to 95% comes from the US • Offers better control over your energy and operating costs • Affordable community energy – CHP can provide communities with reasonably priced energy
Natural Gas Stability
PGW’s CoGen Rate • Based on annual usage of 18,000 mcf (customers will vary)
PGW Leads by Example • PGW Headquarters • 200kw on‐site microturbine • Reliable system with 99.99% uptime • Received various grants to help fund the project: • Green Energy Works! Grant • PGW approved for $465,000 grant • PECO Act 129 Grant • $178,000 since installation
PGW Results • Total operating savings are conservatively over ~$200,000 each year • Estimated simple payback – 3.6 years • Estimated Life Cycle Savings based on recorded energy usage ‐ $2.59 million over 20 years • ROI – 29% • The unit is producing electricity at $.06/kWh compared to PECO ~$.14/kWh • Resulting electric cost savings each year are ~$104,000
• Demonstrative case study – first of its kind in Philadelphia
Overcoming Obstacles • What type of obstacles are we facing? • Decision maker – need a company advocate • Resisting changes • Capital costs •
PGW’s Incentive Program
How does CHP affect APGA? • CHP promotes the growth of natural gas • Provides a steady load across the year instead of only during the heating months • Continuous load > heating load
• Positive image for natural gas industry, APGA and the gas community
800 Montgomery Avenue, Philadelphia, PA 19122 www.pgworks.com
Questions? John Zuk VP of Marketing & Sales Philadelphia Gas Works [email protected] 215.684.6725
John Zuk VP of Sales & Marketing Philadelphia Gas Works
Today’s Agenda • Combined Heat and Power (CHP) • What is CHP? • How Does it Work? • Why CHP Makes Sense • Environmental / Other Benefits • Natural Gas Stability • PGW’s Success Story • How does CHP affect APGA?
What is CHP? • Combined Heat and Power (CHP) is the sequential or simultaneous production of two different forms of useful energy – electrical and thermal • Single, primary energy source • Single, integrated system
How Does it Work?
Why CHP Makes Sense • Waste heat recovery increase overall efficiency For same output:
an efficiency of 47% versus 85% *Comparable with results from the DOE. Information obtained from Energy Solutions Center (ESC)
Environmental Benefits • CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy • Natural gas is the cleanest burning fossil fuel • Carbon dioxide (CO2), nitrogen oxides (NOx) and sulfur dioxide (SO2) emissions are significantly reduced • According to the U.S. Department of Energy (DOE), the current fleet of CHP systems reduces U.S. carbon dioxide emissions by 240 million metric tons
Other Benefits • There is an abundant supply of natural gas – 90 to 95% comes from the US • Offers better control over your energy and operating costs • Affordable community energy – CHP can provide communities with reasonably priced energy
Natural Gas Stability
PGW’s CoGen Rate • Based on annual usage of 18,000 mcf (customers will vary)
PGW Leads by Example • PGW Headquarters • 200kw on‐site microturbine • Reliable system with 99.99% uptime • Received various grants to help fund the project: • Green Energy Works! Grant • PGW approved for $465,000 grant • PECO Act 129 Grant • $178,000 since installation
PGW Results • Total operating savings are conservatively over ~$200,000 each year • Estimated simple payback – 3.6 years • Estimated Life Cycle Savings based on recorded energy usage ‐ $2.59 million over 20 years • ROI – 29% • The unit is producing electricity at $.06/kWh compared to PECO ~$.14/kWh • Resulting electric cost savings each year are ~$104,000
• Demonstrative case study – first of its kind in Philadelphia
Overcoming Obstacles • What type of obstacles are we facing? • Decision maker – need a company advocate • Resisting changes • Capital costs •
PGW’s Incentive Program
How does CHP affect APGA? • CHP promotes the growth of natural gas • Provides a steady load across the year instead of only during the heating months • Continuous load > heating load
• Positive image for natural gas industry, APGA and the gas community
800 Montgomery Avenue, Philadelphia, PA 19122 www.pgworks.com
Questions? John Zuk VP of Marketing & Sales Philadelphia Gas Works [email protected] 215.684.6725
