Transcript Document
Capturing Energy Waste Dick Munson Senior Vice President, Recycled Energy Development, LLC Virtual Energy Conference June 11, 2008 1 RED | the new green www.recycled-energy.com Overview • Energy waste is pervasive. • Focus on supply-side efficiency. Inefficient generation of heat and power is elephant in the room. • See climate change legislation as an economic opportunity. Focus on the profitable reduction of greenhouse-gas emissions. 2 RED | the new green www.recycled-energy.com Homer Simpson’s Power Plant (Springfield, ?) 3 RED | the new green www.recycled-energy.com Real Electric Generation Plant (Craig, CO) Two-thirds of the fuel’s energy is vented to atmosphere. 4 RED | the new green www.recycled-energy.com 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. 5 RED | the new green www.recycled-energy.com Decline of electric-sector efficiency US Electric Industry Fuel-Conversion Efficiency 70% Recovered Energy 60% U.S. Average Electric Only 50% 40% 30% 20% 10% 1990 1980 1970 1960 1950 1940 1930 1920 1910 1900 1890 1880 0% Implications: •US grid less efficient than 100 years ago •We pay too much for electricity so we can emit too much CO2 •$70 billion potential savings if US returned to 1920s model RED | the new green www.recycled-energy.com 6 50% 40% 30% 20% US Electric Power Sector’s CO2 Emissions 10% 00 20 90 19 80 19 70 19 60 19 50 0% 19 Percent of Total US CO2 Emissions Electric Generation’s Increasing Contribution to Domestic CO2 Emissions Year RED | the new green 7 www.recycled-energy.com US Carbon Dioxide Emissions, 2005 Breakdown of Emitting Sources: Other Transport 12% Electricity 42% Cars 19% Thermal 27% Heat & Power; 69% of all fossil fuel CO2 emissions 8 RED | the new green www.recycled-energy.com 220 MW from Steel Smelter’s Waste Energy • Significantly enhances mill’s competitive position. • Annual CO2 savings of 916,000 metric tons/year – more than all grid connected solar worldwide. Courtesy Primary Energy 9 RED | the new green www.recycled-energy.com 44 MW from Silicon Production (Alloy, WV) • $55-million investment • Recycles exhaust into 45 megawatts • More efficient plant will expand production and jobs by 20% • We are taking silicon manufacturing back from China! 10 RED | the new green www.recycled-energy.com Trigeneration in Oklahoma City • 1.2 MW of electric capacity • 17,500 tons of chilled water • 290,000 lbs/hr of steam • 26 downtown customers • Trigen Energy 11 RED | the new green www.recycled-energy.com Efficiencies of Energy Recycling Projects 100% 90% Industrial Waste Heat Recovery (6 Projects) 80% Steam Pressure Recovery (190 Projects) Efficiency 70% 60% 50% Combined Heat & Power (56 Projects) 40% 30% 20% U.S. Delivered Electric Efficiency 10% 00 20 90 19 80 19 70 19 60 19 50 19 40 19 30 19 20 19 10 19 19 00 0% 12 Year RED | the new green www.recycled-energy.com Clean Energy Standard Offer Program (CESOP) • Calculate the true costs of generating and delivering power from new centralized facilities. • Offer 20-year CESOP contracts to anyone delivering clean power for 80% of that cost. • Consumers obtain a discount against current best deal for new power. Utilities keep their customers. 13 RED | the new green www.recycled-energy.com Output-Based Allocations • Provide each electric (and thermal) producer with allowances equal to average emissions. • Every plant must obtain allowances equal to its CO2 emissions – dirty plants purchase extra allowances from clean plants at market rates. • Reduce allowances every year to cut emissions. • Fiscally neutral – dirty generators pay clean generators. • Provides both sticks and carrots – immediate financial incentives to everyone who lowers GHG emissions. 14 RED | the new green www.recycled-energy.com Thank You Dick Munson Recycled Energy Development [email protected] www.recycled-energy.com 15 RED | the new green www.recycled-energy.com