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The Positive Environmental
and Economical Impact of
CHP
CHP Environmental Impact
Background:
CHP
technology
TOTAL OUTPUT = 86%
14% Waste Heat
Exhaust at 140C
100% Fuel Input
Simple
Cycle
Combined
Cycle
Trigen
Cycle
28% Electric Power
18% Power (Steam
Turbines ) or Sweet
Water
40% Chilled & Hot
Water
By capturing and utilizing heat that would
otherwise be wasted from the production of
electricity, CHP systems require less fuel than
equivalent separate heat and power systems to
produce the same amount of energy.
Because less fuel is combusted, greenhouse
gas emissions, such as carbon dioxide (CO2),
as well as criteria air pollutants like nitrogen
oxides (NOx) are reduced.
Reduced
Greenhouse
Gas Emissions
Reduced CO2
Emissions
Output
CO2 emissions output from power and
thermal energy generation:
New cogeneration plants in the USA are subject to an
Environmental Protection Agency (EPA) permit process
designed to meet National Ambient Air Quality Standards
(NAAQS).
Alarming
Increase of
Carbon Dioxide
Emissions
across the
Middle East
Reduced
Nitrogen Oxide
Emissions
Utilizing CHP reduces Nitrogen oxides that:
- are one of the main ingredients
involved in the formation of ground-
level ozone, which can trigger serious
respiratory problems.
- contribute to formation of acid rain.
- contribute to nutrient overload that
deteriorates water quality.
- contribute to global warming (Nitrous
oxide has about 310 times the effect on
global warming than carbon dioxide).
ATMOSPHERIC LIFETIMEGAS
50-200 yearsCarbon dioxide
(CO2)
120 yearsNitrous Oxide (N2O)
Nearly 70 percent of U.S. greenhouse gas emissions
come from generating electricity and heat (another 20
percent comes from cars), and the estimates of CHP's
potential are dramatic.
CHP Major Role
in reducing
Global
Warming
In December 2008, Oak Ridge National Laboratory
estimated that if CHP generated 20 percent of the US
nation's power capacity by 2030—Germany, Japan and
China have already reached or exceeded that goal, and
Denmark generates 50 percent of its power by CHP—the
technology would eliminate 848 million tons of carbon
dioxide emissions. That's like removing 154 million cars
from the road.
Goal: Turn London into the World's Greenest
City with its 7.5 million people.
Strategy: Adopt a radical climate action plan to
cut Carbon Emissions by 60% within 20
Years in the battle against global
warming.
Plan: The plan aims to slash carbon output
by reducing demand and wastage.
Action Plan: A big part of the action plan aims to
switch over one quarter of the city's
power supply from the old and
inefficient national grid to locally-
generated electricity using far more
efficient combined heat and power
plants (CHP).
Case Study:
Applying CHP
for a greener
London
Source: Thomson Reuters 2007
CHP Economical Impact
The high efficiency of CHP technology can result in
energy savings when compared to conventional,
separately purchased power and onsite thermal energy
systems.
Reduced
Energy Costs Dan Reicher, US Assistant Secretary of Energy for Energy
Efficiency and Renewables, said in a speech at the House of
Commons in the year 2000 that the scale of things in the
US makes the energy waste from conventional power
stations a big scandal, adding that the two-thirds of fuel
energy wasted as discarded heat at large power stations is
sufficient to provide all the energy needs of Japan.
72%
generation
losses
Energy Supply Company
CHP Plant
28% power generated
8% (of 28%)
lost in
transmission
only
26%
of the energy consumed
reaches the consumer
100%
energy
units
consumed
Conventional
Utility Plant
14%
Losses after generation
and usable heat
recovery
46% power generated
40% thermal energy
100% energy
units consumed
86%
of the energy consumed
reaches the consumer
CHP can be installed in place of boilers or
chillers in new construction projects, or when
major HVAC equipment needs to be replaced
or updated.Offset Capital
Costs
The rapid increase of the air conditioning equipment
penetration to the Mediterranean markets has
added considerable loads to the electricity networks,
which often marginally cover the electricity needs
during peak load periods. It is therefore essential to
provide alternative solutions to the capacity increase
and one of them is the use of absorption chillers for
cooling, through CHP systems.
CHP can provide a hedge against unstable energy
prices by allowing the end user to supply its own
power during times when prices for electricity are very
high.
In addition, a CHP system can be configured to
accept a variety of feedstock (e.g., natural gas,
biogas, coal, biomass) for fuel; therefore, a facility
could build in fuel switching capabilities to hedge
against high fuel prices.
Hedge against
Volatile Energy
Prices
(1) Reduction in diesel-, bunker fuel- or coal-
generated electricity consumption would lead to a
decrease in petroleum/coal imports and national
foreign exchange expenditure.
(2) Increased industry competitiveness would improve
economic performance and could lead to an
increase in the national income.
(3) Supporting CHP technologies encourages and
permits active participation of private and public
sectors.
Macroeconomic
Level
Food Industry:
CHP is an appropriate technology for the food industry,
which invariably requires both heat and power in its processes.
Saudi Arabia Economy:
According to a June 2008 report by Facts Global Energy, some
200,000 to 250,000 bbl/d of crude is being burned directly for
power generation in Saudi Arabia. (It is to be noted that most
of the electric load is for thermal applications).
If CHP were in place, Saudi Arabia would be consuming 30%
of this number of barrels (i.e. only 67 thousand bbl/d) to
generate the same equivalent output of electrical and thermal
energy.
This also translates into a better economic situation:
70% of crude oil initially burned for power generation can be
exported => increase of annual export of crude from 6.7 million
bbl/d to 6.85 million bbl/d => Notable yearly increase of
national revenues of around 14 Billion Saudi Riyals.
Macroeconomic
Level
The Positive Environmental and Economical Impact of CHP

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The Positive Environmental and Economical Impact of CHP

  • 1. The Positive Environmental and Economical Impact of CHP
  • 3. Background: CHP technology TOTAL OUTPUT = 86% 14% Waste Heat Exhaust at 140C 100% Fuel Input Simple Cycle Combined Cycle Trigen Cycle 28% Electric Power 18% Power (Steam Turbines ) or Sweet Water 40% Chilled & Hot Water
  • 4. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy. Because less fuel is combusted, greenhouse gas emissions, such as carbon dioxide (CO2), as well as criteria air pollutants like nitrogen oxides (NOx) are reduced. Reduced Greenhouse Gas Emissions
  • 5. Reduced CO2 Emissions Output CO2 emissions output from power and thermal energy generation: New cogeneration plants in the USA are subject to an Environmental Protection Agency (EPA) permit process designed to meet National Ambient Air Quality Standards (NAAQS).
  • 7. Reduced Nitrogen Oxide Emissions Utilizing CHP reduces Nitrogen oxides that: - are one of the main ingredients involved in the formation of ground- level ozone, which can trigger serious respiratory problems. - contribute to formation of acid rain. - contribute to nutrient overload that deteriorates water quality. - contribute to global warming (Nitrous oxide has about 310 times the effect on global warming than carbon dioxide). ATMOSPHERIC LIFETIMEGAS 50-200 yearsCarbon dioxide (CO2) 120 yearsNitrous Oxide (N2O)
  • 8. Nearly 70 percent of U.S. greenhouse gas emissions come from generating electricity and heat (another 20 percent comes from cars), and the estimates of CHP's potential are dramatic. CHP Major Role in reducing Global Warming In December 2008, Oak Ridge National Laboratory estimated that if CHP generated 20 percent of the US nation's power capacity by 2030—Germany, Japan and China have already reached or exceeded that goal, and Denmark generates 50 percent of its power by CHP—the technology would eliminate 848 million tons of carbon dioxide emissions. That's like removing 154 million cars from the road.
  • 9. Goal: Turn London into the World's Greenest City with its 7.5 million people. Strategy: Adopt a radical climate action plan to cut Carbon Emissions by 60% within 20 Years in the battle against global warming. Plan: The plan aims to slash carbon output by reducing demand and wastage. Action Plan: A big part of the action plan aims to switch over one quarter of the city's power supply from the old and inefficient national grid to locally- generated electricity using far more efficient combined heat and power plants (CHP). Case Study: Applying CHP for a greener London Source: Thomson Reuters 2007
  • 11. The high efficiency of CHP technology can result in energy savings when compared to conventional, separately purchased power and onsite thermal energy systems. Reduced Energy Costs Dan Reicher, US Assistant Secretary of Energy for Energy Efficiency and Renewables, said in a speech at the House of Commons in the year 2000 that the scale of things in the US makes the energy waste from conventional power stations a big scandal, adding that the two-thirds of fuel energy wasted as discarded heat at large power stations is sufficient to provide all the energy needs of Japan.
  • 12. 72% generation losses Energy Supply Company CHP Plant 28% power generated 8% (of 28%) lost in transmission only 26% of the energy consumed reaches the consumer 100% energy units consumed Conventional Utility Plant 14% Losses after generation and usable heat recovery 46% power generated 40% thermal energy 100% energy units consumed 86% of the energy consumed reaches the consumer
  • 13. CHP can be installed in place of boilers or chillers in new construction projects, or when major HVAC equipment needs to be replaced or updated.Offset Capital Costs The rapid increase of the air conditioning equipment penetration to the Mediterranean markets has added considerable loads to the electricity networks, which often marginally cover the electricity needs during peak load periods. It is therefore essential to provide alternative solutions to the capacity increase and one of them is the use of absorption chillers for cooling, through CHP systems.
  • 14. CHP can provide a hedge against unstable energy prices by allowing the end user to supply its own power during times when prices for electricity are very high. In addition, a CHP system can be configured to accept a variety of feedstock (e.g., natural gas, biogas, coal, biomass) for fuel; therefore, a facility could build in fuel switching capabilities to hedge against high fuel prices. Hedge against Volatile Energy Prices
  • 15. (1) Reduction in diesel-, bunker fuel- or coal- generated electricity consumption would lead to a decrease in petroleum/coal imports and national foreign exchange expenditure. (2) Increased industry competitiveness would improve economic performance and could lead to an increase in the national income. (3) Supporting CHP technologies encourages and permits active participation of private and public sectors. Macroeconomic Level
  • 16. Food Industry: CHP is an appropriate technology for the food industry, which invariably requires both heat and power in its processes. Saudi Arabia Economy: According to a June 2008 report by Facts Global Energy, some 200,000 to 250,000 bbl/d of crude is being burned directly for power generation in Saudi Arabia. (It is to be noted that most of the electric load is for thermal applications). If CHP were in place, Saudi Arabia would be consuming 30% of this number of barrels (i.e. only 67 thousand bbl/d) to generate the same equivalent output of electrical and thermal energy. This also translates into a better economic situation: 70% of crude oil initially burned for power generation can be exported => increase of annual export of crude from 6.7 million bbl/d to 6.85 million bbl/d => Notable yearly increase of national revenues of around 14 Billion Saudi Riyals. Macroeconomic Level