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COMBINED HEAT AND POWER (CHP) AS A
VIABLE CLIMATE MITIGATION STRATEGY
Lisa Martin, March 1, 2010
THESIS: CHP is currently a technically
viable source of energy to be exploited
using current technologies. CHP can
play a significant role in reducing carbon
emissions in the near term.
MALS 4020
How does CHP Work?
Before CHP
Notice how
most of the
energy is
vented off
as waste
heat.
Including
line loss,
most of the
energy
potential is
lost.
Recycled Energy Development: http://www.recycled-energy.com/main/cogeneration.html
How does CHP Work?
Using CHP
By recycling
waste heat
through a
boiler,
chiller or
direct
thermal
heat usage,
most of the
energy is
used; less
is wasted.
Recycled Energy Development: http://www.recycled-energy.com/main/cogeneration.html
CHP has the potential to dramatically reduce
energy consumption and lower GHG
emissions.
US currently has an
energy efficiency rate of
13%
Recapturing waste energy
could boost efficiency to
87%
Boosting industrial and
energy sector efficiency
could cut total energy
demand by 23% by 2020
Aggressive CHP
technology adoption
could reduce GHG
emissions by 100 million
metric tons a year
CHP technology could
provide the USA with 20%
of its stationary (non-
vehicular) power needs.
A review of the literature found
A number of barriers are slowing the
spread of more widespread CHP use
 Regulatory
 Single greatest hurdle
 Monopolistic & regulated
utilities currently have
economic disincentive to not
promote efficiency
 There are significant costs
imposed by utilities on
companies wishing to use
CHP technology
 Energy delivery systems must
begin to reorient itself
towards a more distributed
energy system.
Renewables also need a more
distributed system; CHP
adoption will help usher in
needed regulatory and
distribution requirements.
 Initial Cost Barriers
 Plant modifications will cost 520
billion dollars over 10 years.
 Payback on initial investment in
upgraded facilities will save 1.2
trillion dollars in energy costs.
 Financing mechanism must be
developed.
Research Approach
 Power Generators
and large
industrial facilities
do not have an
extensive
presence in the
literature. Why?
What do THEY
have to say about
CHP?
 I would survey
segments of these
industries to assess
reasons for lack of
CHP adoption, and
try to determine
under what
circumstances they
would embrace
these technologies?
THE CHEAPEST AND EASIEST ENERGY FOR THE USA TO EXPLOIT IS THAT
WHICH WE ARE CURRENTLY THROWING AWAY.
Add this to your list of climate mitigation strategies. It
deserves serious policy attention.CHP

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Combined heat and_power_

  • 1. COMBINED HEAT AND POWER (CHP) AS A VIABLE CLIMATE MITIGATION STRATEGY Lisa Martin, March 1, 2010 THESIS: CHP is currently a technically viable source of energy to be exploited using current technologies. CHP can play a significant role in reducing carbon emissions in the near term. MALS 4020
  • 2. How does CHP Work? Before CHP Notice how most of the energy is vented off as waste heat. Including line loss, most of the energy potential is lost. Recycled Energy Development: http://www.recycled-energy.com/main/cogeneration.html
  • 3. How does CHP Work? Using CHP By recycling waste heat through a boiler, chiller or direct thermal heat usage, most of the energy is used; less is wasted. Recycled Energy Development: http://www.recycled-energy.com/main/cogeneration.html
  • 4. CHP has the potential to dramatically reduce energy consumption and lower GHG emissions. US currently has an energy efficiency rate of 13% Recapturing waste energy could boost efficiency to 87% Boosting industrial and energy sector efficiency could cut total energy demand by 23% by 2020 Aggressive CHP technology adoption could reduce GHG emissions by 100 million metric tons a year CHP technology could provide the USA with 20% of its stationary (non- vehicular) power needs. A review of the literature found
  • 5. A number of barriers are slowing the spread of more widespread CHP use  Regulatory  Single greatest hurdle  Monopolistic & regulated utilities currently have economic disincentive to not promote efficiency  There are significant costs imposed by utilities on companies wishing to use CHP technology  Energy delivery systems must begin to reorient itself towards a more distributed energy system. Renewables also need a more distributed system; CHP adoption will help usher in needed regulatory and distribution requirements.  Initial Cost Barriers  Plant modifications will cost 520 billion dollars over 10 years.  Payback on initial investment in upgraded facilities will save 1.2 trillion dollars in energy costs.  Financing mechanism must be developed.
  • 6. Research Approach  Power Generators and large industrial facilities do not have an extensive presence in the literature. Why? What do THEY have to say about CHP?  I would survey segments of these industries to assess reasons for lack of CHP adoption, and try to determine under what circumstances they would embrace these technologies?
  • 7. THE CHEAPEST AND EASIEST ENERGY FOR THE USA TO EXPLOIT IS THAT WHICH WE ARE CURRENTLY THROWING AWAY. Add this to your list of climate mitigation strategies. It deserves serious policy attention.CHP