Cogeneration in the Forest Products Industry January 2008
- Slides: 17
Cogeneration in the Forest Products Industry January 2008 by Phil Zirngibl
What is Cogeneration? • Cogeneration is the production of electrical energy and another form of useful energy, such as heat or steam, through the sequential use of energy. • Cogeneration is also often referred to as Combined Heat and Power or “CHP”. Source: US DOE 2
Cogeneration – how much in the U. S. ? • CHP generation represents 9% of electricity generation capacity in the US. • The Forest Products, Chemical and Oil Refining industries combined represent ~90% of the total CHP generation in the U. S. manufacturing sector. • The majority of cogeneration in the Forest Products Industry is from renewable fuels (biomass). Source: US DOE, Midwest CHP Center 3
Forest Products Industry ü Represented primarily by two groups; paper and lumber ü Meets more than half its energy requirements through highly efficient cogeneration processes. ü Since 1972: § Has increased energy self-sufficiency from 40 to 60% § Utilizes nearly 85% renewable resources for onsite generation § Reduced total energy usage by 30% § Reduced purchased energy by 53% Source: AF&PA 4
Common Cogeneration Terms • STG = Steam Turbine mechanically coupled to a Generator • GTG = Gas Turbine mechanically coupled to a Generator • WHRB = Waste Heat Recovery Boiler • Combined Cycle GTG = GTG with a WHRB combined with STG • Simple Cycle GTG = Stand alone GTG • Heat Rate = Amount of fuel (in btu’s) required to generate one Kwh of electricity. Commonly expressed in btu/kwh. 5
Types of cogeneration in the Forest Product Industry Number of facilities with cogeneration Approx 75% of existing cogeneration facilities are in the Paper Products Business Source: MECS 1998 6
Cogeneration from Steam Boilers in Forest Products Plants (paper) Green Power Wood-based biomass Waste Wood Boiler Steam Turbine High pressure steam Generator Recovery Boiler Lignin Low pressure steam To manufacturing process requirements Typical heat rate ~ 4, 500 btu/kwh or 76% efficient 7
Typical Coal-fired utility generation Power Steam Turbine Boiler Coal High pressure steam Generator Low pressure steam Condenser Typical heat rate ~ 10, 000 btu/kwh or 34% efficient 8
Typical utility Combined Cycle GTG Power Gas Turbine Generator Hot Gas Natural Gas Steam Turbine Waste Heat Recovery Boiler High pressure steam Generator Low pressure steam Typical heat rate ~ 7, 000 btu/kwh or 49% efficient Condenser 9
Typical Simple Cycle GTG Power Gas Turbine Generator Hot Gas Natural Gas Exhaust Typical heat rate ~ 12, 000 btu/kwh or 28% efficient 10
Typical Heat Rates Typical Heat Rate (btu/kwh) Industrial cogeneration is significantly more efficient that other typical types of commercial electricity generation. . . Utility Scale 11
Cogeneration – Advantages/Issues Advantages: • More efficient than commercial generation despite lack of scale. • Potential to increase renewable generation (esp. in Forest Products Industry) • Provides a reduction in GHG emissions. • Provides advantages of distributed generation (avoids issues w/constrained transmission system). • Potential for advantageous tax treatments • Continued development supported by provisions of the Energy Independence and Security Act of 2007 Issues: • Cogenerated renewable electricity from older installations not valued the same as from newer installations. • Cogenerated renewable electricity must be sold to be eligible for Sec 45 Fed Tax Credit. • Most recent version of Lieberman-Warner Climate Security Act of 2007 doesn’t recognize value of cogeneration. . . in fact, penalizes facilities with cogeneration. 12
Green Power Green(Renewable) Power = Brown Power + REC* *REC = Renewable Energy Credit (renewable attributes of Green Power) 13
State RPS 14
U. S. Electricity Generation by Fuel Total = 4, 065 Million MWH/yr * Source US DOE Oct ‘ 07 15
Renewable Electricity Generation by type Total US Electric Generation by Fuel* Solar Wind Geothermal MSW/LFG Woody Biomass * Source US DOE Oct ‘ 07 16
Renewable Electricity Generation from biomass GP generates ~ 8% of the electricity generated from woody biomass in the US. . . GP Generation from Woody Biomass U. S. generation from Woody Biomass Wood Waste Total US Electric Generation by Fuel* Blk Liquor Solar Wind Geothermal MSW/LFG ~ 8% Woody Biomass 38. 7 MM MWH/yr * Source US DOE 17
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