Transcript Document

West Virginia: Opportunities to
Capture Waste Energy
Presentation to Senate Committee on Economic Development
Dick Munson, Recycled Energy Development
January 15, 2008
1/15/08
RED | the new green
1
www.recycled-energy.com
Recycled Energy Development
 $1.5 billion of equity. Eager to invest in West
Virginia, with $200 million of clean energy projects
already under discussion.
 Goal is to reduce greenhouse gas emissions
profitably.
 Helps industries slash energy costs, increase their
competitiveness, maintain and create jobs.
 Avoids line losses and transmission additions.
 RED principals have built more than 250 power
plants, costing more than $2 billion and producing
more than 10,000 megawatts.
1/15/08
RED | the new green
2
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.
1/15/08
RED | the new green
 Capturing waste heat -- energy recycling – could
generate 200,000 megawatts – equal to output of
400 coal plants.
www.recycled-energy.com
3
Rising Electricity Costs
 Important difference between today’s average power
cost and the cost of building future power plants.
TVA and Ontario are tackling with Standard Offers.
 Clean Air Interstate Regulations (CAIR) and mercury
rules will add $550-850/kw for existing plants.
 Average WV coal plant is 45 years old. New plants
cost $2,500/kw, up from $800/kw in late 1990s.
 Fuel costs are 3-5 times above 1990 levels, and
long-term contracts now below the spot market.
 Pending expenses: transmission expansion,
greenhouse-gas reductions (carbon credits of
$20/ton would add 2 cents/kwh).
1/15/08
RED | the new green
4
www.recycled-energy.com
What is Energy Recycling?
Converting industrial waste energy to heat and power:
 Exhaust heat from any industrial process or power
generation,
 Industrial tail gas that would otherwise be flared,
incinerated or vented,
 Pressure drop in any gas.
Recycling waste heat from power generation:
 Local combined heat and power (CHP) plants
recycle byproduct heat to displace the boiler fuel of
nearby thermal users.
1/15/08
RED | the new green
5
www.recycled-energy.com
Conventional Central Generation
Pollution
67% Total
Waste
Line Losses
9-20%
Fuel
100%
33%
delivered
electricity
Power Plant
T&D and
Transformers
6
RED | the new green
www.recycled-energy.com
Combined Heat and Power (CHP)
Pollution
10% Waste Heat, no T&D loss
Electricity
Fuel
100%
CHP Plants
90%
Steam
Chilled
Water
(At or near thermal users)
7
RED | the new green
www.recycled-energy.com
Recycled Energy
(At user sites)
No Added Pollution
10% Waste Heat
25%
Electricity
Waste Energy
100%
65%
Steam
Steam Generator
Back-pressure
Turbine
Generator
8
RED | the new green
www.recycled-energy.com
96 MW Generated from Coke
Oven’s Waste Heat (Mittal Steel)
1/15/08
RED | the new green
9
www.recycled-energy.com
Costs per Delivered MWh
Fuel
Emissions
Other Ops
Amortization
$140
$ per delivered MWH
$120
$100
$80
$60
$40
$20
RED | the new green
c.
Re
He
at
Tu
rb
.
BP
CC
G
T
CH
P
ga
s
T
CC
G
G
T
Co
al
IC
G
1/15/08
Co
nv
.
($20)
co
al
$0
www.recycled-energy.com
10
Energy Security Act Encourages
Recycled Energy
(signed by President Bush on December 19, 2007)
 Defines clean energy as power plants converting at
least 60% of the fuel’s potential energy to useful
thermal energy, electricity, mechanical energy,
chemical output, or any combination thereof.
 Provides $10/megawatt-hour grant for first three
years of electricity produced from clean energy
projects.
 Orders Environmental Protection Agency to create a
waste-energy inventory.
1/15/08
RED | the new green
11
www.recycled-energy.com
West Virginia’s Draft Clean Energy
Standard Offer Program (CESOP)
West Virginia could encourage development of recycled
energy and other clean technologies with a 'Clean
Energy Standard Offer Program' (CESOP)
 Offer 20-year CESOP contracts for electricity
generated by qualifying clean technology facilities, as
defined in Subtitle D of the 2007 Energy Act.
 Pay roughly 80% of the cost of delivering power
from new coal plants. Obtain a discount against
current best deal for new power.
 Embrace opportunity to capture waste heat from
West Virginia’s energy-intensive industries. Increase
the competitiveness of those industries.
1/15/08
RED | the new green
12
www.recycled-energy.com
Thank you
Dick Munson
Senior Vice President, Recycled Energy Development
[email protected]
630/590-6035
1/15/08
RED | the new green
13
www.recycled-energy.com