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____________________________________________________________
ApplicationofWasteHeatRecoveryGeneration
at
GreatRiverEnergys
CoalCreekStation
Applicant:CalnetixInc.
PrincipalInvestigator:ShamimImani
(DirectorofEngineering,Calnetix,Inc)
Date:April1,2009
AmountRequested:
StepOne:$80,000
StepTwo:$250,000
______________________________________________________________________
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1
TableofContents
1. Abstract
2. Projectsummary
3.
Projectdescription
4. Standardsofsuccess
5. Background
6. Qualifications
7. ValuetoNorthDakota
8. Management
9.
Timetable
10. Budget
11. Matchingfunds
12. TaxLiabilityAffidavit
13. ConfidentialInformation
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2
1.Abstract
Improvingpowerplantefficiencythroughrecoveryofwasteheatisnotanewconcept,butrecentpolicyand
regulatoryshifts(efficiencyandemissionsmandates,renewableportfoliostandards,carbontrading)and
technologicalimprovementsaretrendingtoimprovetheeconomicsofrecoveringthisheat.
Calnetix,Incmanufacturesa100110kWewasteheatrecoverygenerator(WHG100)thatprovidessuperior
conversionofwasteheattoelectricity(16%netvs.competitorsat812%)duetoitshighspeedgeneratorandnon
contactmagneticbearings.Itsmodulardesignallowsrepetitivemanufacturing,andacostthattypicallyprovides
ROIoflessthanthreeyears.CalnetixintendstouseitscurrenttechnologytoscaleuptheWHG100unitto1
2MWe.Itbelievesthatdeployingthislargerunitatlignitepowerplantscouldprovideaneconomicalwayof
improvingplantefficiency,therebyhelpingtokeeplignitecoaleconomicalandcompetitiveasafuelintothefuture.
CalnetixiscurrentlyworkingtoobtainDepartmentofEnergy(DOE)fundingforamultiphaseprogram,locatedin
NorthDakota,todevelopandcommercializethislargerunit.CalnetixseeksthesupportoftheLigniteResearch
Council(LRC)fortheinitialvalidationphaseofthisprogramasfollows:
Objective:Identifyusablewasteheatsourceswithinalignitepowerplant,validatetheyaresufficienttopower
multiple12MWeunits,anddemonstratethetechnicalviabilityofgeneratingelectricityfromonesuchsource
usingCalnetixscurrentWHG100unit.
ExpectedResults:ValidationofwasteheatsourcesatGREsCoalCreekplantwhichcouldsupportmultiple1
2MWeunits,andsuccessfuldemonstrationof100kWeelectricitygenerationfromonesuchwasteheatsource.
Duration:22months.
Totalprojectcost:Spreadovertwosteps:
Studytoidentifyandquantifyheatsources,andvalidatetheviabilityofconnectingtheCalnetixunitto
thesesources.Totalcostis$161,250ofwhichCalnetixseeks$80,000(50%)fromtheLRC.
InstallandruntheCalnetixWHG100demounitforproofofconcept.Totalcostisestimatedat$735,495of
whichCalnetixseeksamaximumof$250,000fromtheLRC.LRCfundingofthisstepisconditionalupon
StepOnevalidationbeingsuccessful,anduponfundingbeingmadeavailablefromtheDOE.
Participants:Calnetix,GreatRiverEnergyandHDREngineering.
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2.ProjectSummary
Overview
Calnetixisseekingtodevelopandwithin36monthscommercializea12MWewasteheatrecovery
generator,for
application
to
low
temperature
heat
sources
at
thermal
power
plants
and
industrial
facilities.
Calnetixbelievesthatawasteheatrecoverygeneratorofthispowerrangewouldhavevaluetothe
ligniteindustry.Giventhelowerthermaloutputoflignitecoal,itismorechallengingforlignite
powerplantstomeetincreasinglystringentemissionsrequirementsandthecostofvariouscarbon
limitationor
pricing
mandates.
To
the
extent
that
waste
heat
recovery
can
reduce
the
emissions
per
MWhfromlignitepowerplants,atanattractiveinstalledcapitalcost,thiswillkeeplignite
competitive,economicalandmaintainitsrelevanceaspartofthenationsenergyneeds.
ThislargerunitwillbebaseduponCalnetixsexistingWHG100organicrankinecycleproductionunit,
andisintendedtosharethesmallerunitsmodular,standardized,andfactorymanufactured
approach.Calnetix
believes
this
approach
will
allow
it
to
keep
the
installed
cost
of
the
unit
at
an
estimated$2,500/kW,lowerthanthecustombuiltsolutionsthatarecurrentlytheindustrystandard.
Calnetixbelievesthislowcostapproachwillprovideincreasingvalueasthepriceforemittingcarbon
dioxideandfittingnewpollutioncontrolstoplantsincrease(seefollowingillustration):
3
Value
Breakeven
point
Increasingcostovertime
WasteHeat
Generator
CapitalCost
Combined
-Fuel price increases
-Emissions regulations
-RPS
-CO2 costs
Value/Payback
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CalnetixiscurrentlyworkingtoobtainDepartmentofEnergy(DOE)fundingforamultiphase
program,basedinNorthDakota,todevelopandcommercializea12MWeunit.Thiswillbe
approximatelya36monthprocessfrominitialdesignworktocommercialmanufacture,andbesplit
intothe
following
phases:
1. TechnicalvalidationandWHG100proofofconceptdemonstration.
2. Largeunitdevelopmentandlabtesting.
3. Largeunitfieldtesting.
4. Commercializationandmanufacture.
TheendgoalofthisprogramistovolumeproducethislargerwasteheatrecoveryunitinNorth
Dakota.Althoughtheunitwilllikelybesoldandappliednationallyandinternationally,itisexpected
thatthedemonstrationtestingandinitialcommercialinstallationswillbeintheNorthDakotaregion,
includingonlignitepowerplants.
Calnetixseeks
the
support
of
the
Lignite
Research
Council
for
Phase
One
of
this
overall
program,
i.e.
initialtechnicalvalidationandWHG100proofofconceptdemonstration.Thisisavitalfirstphasein
theoverallfourphasecommercializationplan.
Objective
TheobjectivesoftheprojectforwhichCalnetixseeksLRCsupport(i.e.PhaseOneoftheoverallfour
phaseDOE
program)
are:
StepOne:togetherwithGreatRiverEnergyandHDREngineering, toidentifyusablelow
temperaturewasteheatsourceswithinalignitepowerplant,andtheoreticallyvalidatethat
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sufficientusablewasteheatexists,andcanbeeconomicallyaccessed,fromoneormoreof
thesesourcestopowermultipleCalnetix12MWeunits;
StepTwo:
install
acurrent
Calnetix
WHG100
unit
at
one
such
heat
source,
and
demonstrate
the
technicalviabilityofgeneratingelectricityfromit.
StepOnewilltaketheformofaformalstudyandwrittenreportledbyHDREngineering(Lead:Dave
Schmitz),withsupportfromGreatRiverEnergy(lead:CharlieBullinger)andCalnetixengineers.The
anticipatedcontentsofthestudyareexplainedinfurtherdetailinSection3 ofthisApplication
(ProjectDescription).
The
total
cost
of
Step
One
is
estimated
at
$161,250,
of
which
Calnetix
is
seeking$80,000(50%)fromtheLRC.CalnetixhasmadeaninitialsitevisittoGREsCoalCreekStation,
andidentifiedfourlowtemperaturewasteheatstreams(sootblowerdrain,fluegas,flyashand
scrubbersludge)aspotentiallyviablesourcesforelectricitygeneration.ThisStepOnestudyaimsto
confirmtheseinitialfindings,determinetheamountofpotentialwasteheat,available,assessthe
technicalviabilityofgeneratingpowerfromthesesourcesandmakeanestimateoftheamountof
electricalpower
potentially
available.
StepTwowillinvolvedetailedsiteandinstallationanalysis,engineeringandconstructionworkto
installtheCalnetixwasteheatunitonsite,andongoingmonitoringandresultsanalysis.Thetotal
costofthisstepisestimatedat$735,500.
PartofthescopeofStepOneistounderstandthehighlevelcostsforthisinstallation,including
equipmentmodifications.ThecostsofStepTwomayneedtoberevisedfollowingthecompletionof
theStepOnestudy.However,Calnetixseeksamaximumof$250,000fromtheLRCforStepTwoasa
nottoexceedamount,evenifthetotalcostsofthisstependupbeinghigher.
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CalnetixalsorequeststhatfundingofStepTwobemadeconditionaluponCalnetixreceivingDOE
fundingforthecompletedevelopmentofthelargerunitoverthefourphasesoutlineabove.
AlthoughCalnetix
seeks
the
LRCs
conditional
approval
for
funding
Step
Two,
if
DOE
funding
is
not
received,Calnetixwillnotrequestordrawdownthesefunds.
FurtherProjectBackground
Calnetix(www.calnetix.com)istheworldleaderinthedevelopmentandmanufactureofhighspeed,
highefficiencypermanentmagnetmotorsandgenerators,withassociatedmagneticbearingsand
highfrequency
power
electronics.
Its
products
and
capabilities
range
from
2kW
to
10MW,
and
it
has
aparticularspecialtyindistributedpowergenerationfromwasteenergy,suchaswasteheat,waste
gasesandunusedkineticenergy(e.g.shipturbochargershafts).
Calnetixproducesa125kWegross/100110kWenetwasteheatrecoverygenerator(WHG100)that
utilizesaclosedlooporganicrankinecycle.Thisinvolvesutilizingheataslowas250Ftogasifyalow
boilingpoint
refrigerant,
passing
the
gas
across
aturbine
wheel
attached
to
agenerator
to
produce
electricity,reliquefyingthegasusingacondenser,andpumpingittotheheatsourceagainto
completethecycle,asshowninthefollowingdiagram:
6
Expander
Evaporator
Receiver
HeatSourceMin2.8MBTU/H
Generates
125kw
Economizer
EvaporativeCondenser
http://www.calnetix.com/http://www.calnetix.com/ -
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Typicalapplicationsincludeexhaustheatfromgasturbinesandinternalcombustionengines,
industrialboilers,andflarestacks.CalnetixsWHG100canutilizeapproximately625700kWofheat
inputtogenerate100110kWenetelectricity(outputvariesbasedonenvironmentalconditionsand
wasteheat
extraction
schemes).
The
unit
is
factory
built
and
pre
packaged
as
aplug
and
play
solutionrequiringonlytheinstallationofaheatexchangerandcondensingsource,andconnection
totheelectricalgrid.Thisisincontrasttoothercommerciallyavailablewasteheatrecoveryunits,
whicharecustomdesignedandengineeredforeachsite.Thecurrentunitispicturedbelow:
TheWHG100issuitableforsmallerindustrialanddistributedgenerationapplications,andinstalled
costistypicallyinthe$2500/kWrange.
However,Calnetixbelievesthatasignificantopportunityexiststorecoverlowgradewasteheatfrom
largerapplicationssuchasthermalpowerplantsandlargeindustrialfacilities.Asignificantamount
ofwasteheatisemittedbytheselargefacilitiesatlowertemperatureswhereitisnotfeasibleto
installsteamturbines.ThesetemperaturesareideallysuitedforrefrigerantbasedOrganicRankine
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Cyclegenerators,andcouldprovidesubstantialadditionalpowerwithoutusinganyadditionalfuelor
creatinganyadditionalemissions.
Estimated Annual US Industrial Heat Output (MW) by Temperature
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
1800-1900
1700-1800
1600-1700
1500-1600
1400-1500
1300-1400
1200-1300
1100-1200
1000-1100
900-1000
800-900
700-800
600-700
500-600
400-500
300-400
200-300
100-200
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Calnetixhasfullownershipofthisgeneratortechnologyforwasteheatrecovery,andintendstouse
theFrame2generatorasthebasistoscaleupitsWHG100unitto12MW.Itwillapplythesame
technicalapproachandmodularmanufacturingphilosophy,suchthatthelargerunitcanalsooffera
standardizedplug
and
play
approach
in
order
to
reduce
the
on
site
engineering
cost
and
lead
time
necessaryforapplyingittothevariouswasteheatsources.ThisisincontrastwithotherORCunitsof
thissizewhicharecustombuiltforeachjob.
CalnetixthereforeaimstocreatesomethingthatcanberolledouttotheindustryatacostperkW
comparabletoitsWHG100unit,anddeployedinscalequickly.Forthelignitepowerindustry,this
couldprovide
aviable
approach
to
reducing
its
net
emissions,
improving
efficiency
in
acost
effective
manner.
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3.ProjectDescription
Whyistheprojectneeded?
Calnetixbelievesthatthecombinedcostsoffuturecarbontaxes(cap&trade),pollutioncompliance
costsand
renewable
portfolio
standards
will
either
increase
the
cost
of
power
generation
using
lignite,ordecreasetherelativeattractivenessoflignitegenerationvs.otherrenewablealternatives.
Acosteffectivewasteheatrecoveryoption,whichimprovestheefficiencyoflignitegenerationand
hasthepotentialtogeneratecarboncreditsand/orelectricitythatqualifiesunderrenewable
portfoliostandards,shouldthereforebebeneficialandattractiveforlignitepowerproducers.
Thereare
six
Lignite
Coal
power
plants
in
North
Dakota1
with
anet
summer
generation
capacity
of
3920MWe.2Accordingtoa2004studypublishedbytheCommissionforEnvironmentalCooperation,
theseplantsgenerateapproximately29.6mMWhofelectricityannually.3Assumingthefollowing:
anaverageplantefficiencyof33%;
oftheremaining67%ofwastedenergy,10%ofthisisintheformofrecoverablewaste
heat;4
anetheattoelectricityconversion16%(thecurrentefficiencyofCalnetixsWHG100which
Calnetixbelievescanbereplicatedinthelargerunit),
couldgenerateanextra915,000MWhofelectricityfromthewasteheatattheseplantswithout
additionalfuelcostsoremissionspenalties.5
1TakenfromTheStoryofLignite,publishedbytheLigniteEnergyCouncil.
22006datasuppliedbytheEnergyInformationAdministration.
3NorthAmericanPowerPlantAirEmissions,CommissionforEnvironmentalCooperation,2004.
4DerivedbyCalnetixfollowingitstourofCoalCreekPowerPlantNovember2008.
5Seetableatpage26belowforfurtherdetail.
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Awasteheatrecoveryunitmayalsocontributetothegoalsof2007NorthDakotalegislationH.B.
1506,whichestablishesanobjectivethat10%ofallretailelectricitysoldinthestatebeobtained
fromrenewableenergyandrecycledenergy(includingwasteheat)by2015.Totheextentthatthe
equipmentreduces
carbon
dioxide
emissions
per
MWh,
it
should
also
provide
acost
saving
to
utilities(intheformoflowercarboncostsperMWh)undertherecentlyproposedObama
Administrationcapandtradeprogram. Atanestimatedcostof$13.70/tonofCO2,6utilizationof
wasteheatrecoveryonlignitepowerplantsinNorthDakotacouldprovideasavingofapproximately
$16m/year.7
Objective
Theobjectivesoftheprojectare:
StepOne:togetherwithGreatRiverEnergyandHDREngineering,toidentifyusablelow
temperaturewasteheatsourceswithinalignitepowerplant,andtheoreticallyvalidatethat
sufficientusablewasteheatexists,andcanbeaccessed,fromoneormoreofthesesourcesto
powermultiple
Calnetixs
planned
12MWe
units;
StepTwo:installacurrentCalnetixWHG100atonesuchheatsource,anddemonstratethe
technicalviabilityofgeneratingelectricityfromit.
Methodology
StepOneinvolvesidentifyingallpossibleheatsourceswithinalignitepowerplantincluding
identifyingheatsourcesthatindirectlyaffecttheoperationoftheplant(e.g.,lignitedrying,
6PriceestimatedbyPointCarbon(industryanalystseewww.pointcarbon,com)astheassumedcost/tonof
CO2emissionsallowancesunderthebudgetsubmittedtoCongressFeb26,2009.7Seetablebelowatpage27.
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limestoneproduction,scrubberequipmentandprocesses).TheCoalCreekplantwillbeusedforthis
purpose.ThisStepalsoinvolves:
validating,using
Calnetixs
assumed
net
heat
to
electricity
conversion
of
16%,
that
the
temperatureandflowofthewasteheatattheidentifiedsourcesissufficienttopower
multiple12MWeunits;
identifyingifthereareanysignificanttechnicalissuesthatwouldeitherprecludeinstallation
ofwasteheatrecoveryatanyofthesourcesormakeaninstallationuneconomic;
studyingtheeffectsofremovingtheheatfromtheperspectiveofcomponentandoverall
powerplant
energy
balance/performance;
identifyinganypotentialsafetyissuesthatwouldneedaddressingwithinthecontextof
installingandrunningawasteheatrecoveryunitatthevarioussites.
AsitespecificanalysiswillbeconductedbyconstructinganEPCbudgettoincludenecessaryitems
andaccessoriesforalargeunitinstallation,suchasspecifyingtheheatexchangers,condensersand
pipingthatwouldberequiredtocompleteaninstallationatthemostpromisingofthewasteheat
sources.
CalnetixwillcommissionHDREngineeringtoundertakemuchofthisanalysistogetherwith
engineersfromCalnetixandGRE.ThespecificHDRdeliverablesunderthiscommissionareas
follows:
Sitevisittoobtaindata,reviewconceptsandreviewexistingplantequipmentforpotential
utilization. ThiswillinvolveHDRpersonnelonsitetoreviewlocationofheatsourcesand
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PerformancemodelingoftheexistingfacilitybeforeandaftertheadditionoftheWHG
installation(including
potential
parasitic
loads
required
to
support
the
installation).
Discussionswithapplicableindustryvendorstoassesstechnicalsuitabilityandcostofthe
proposedplantmodifications.
Identificationofpotentialtechnicalandenvironmentalrisksandriskmitigationstrategies.
Developmentofprocessflowdiagramstoidentifybalanceofsystem.
Developmentofhighlevelcostestimatefortotalinstallation,includingequipment
modificationsandgeneratorpricingaspredictedbyCalnetix.
Developmentofafeasibilitystudyreportdescribingthepotentialfortheproposed
installationandincludingtheresultsofalloftheaboveactivities.
InStepTwo,thevalidityofCalnetixtechnologyforlignitepowerplantswillbedemonstratedby
installingandrunningaCalnetixWHG100wasteheatrecoverygeneratoratGREsCoalCreekStation
for12months.Thequantityofelectricitygeneratedwillbetrackedwithrespecttoruntime,
maintenance,andotherfactorsinordertoestimatetheanticipatedreturnoninvestmentfromthe
largerunit.ThisstepwillallowCalnetixtoassesstheperformance,costandbenefitsoftheunit
relativetotheidentifiedwasteheatsources,andobtainreallifetechnicaldatawhichwillbe
relevanttothedevelopmentofthelargerunit. Throughaninternetconnection,Calnetixwillalso
havethecapabilitytomonitorremotelyfromitsFloridafacility.
Followingcompletionofthedemonstration(i.e.after12months),CalnetixandGRE,inconsultation
withtheLRC,willmakeadeterminationoftheongoinguseoftheunit.Thiscouldincludecontinued
demonstrationoftheunitatCoalCreek,makingtheunitavailableforinstallationanddemonstration
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atafacilityoperatedbyanotherLRCmember,orsaleoftheunitinordertomakeapartialrefundto
theLRCofgrantmonies.
Anticipatedresults
ItisanticipatedthatcompletionofStepOne(initialvalidation)willprovidehighlevelandconceptual
confirmationoftheviabilityofinstallinglargerwasteheatgeneratorsatlignitepowerplants.Should
thestudyresultsindicateotherwise,theStepTwo(demonstration)willnotbepursued,minimizing
theLRCsfinancialexposure.
Assumingthat
Step
Two
proceeds,
it
is
anticipated
to
demonstrate
the
technical
viability
of
generatingelectricityfromwasteheatsourcesatalignitepowerplant,highlightanytechnicaland
practicalissueswithinstallationandrunningthatmaynothavebeenanticipatedatthefeasibility
stage,andprovideareallifedemonstrationtoattracttheinterestandsupportofotherparticipants
intheligniteindustry.
Facilities,resources,
and
techniques
to
be
used
GreatRiverEnergyhasbeenverygenerousinallowingCalnetixtouseitsCoalCreekStationasa
demonstrationsite,andtheuseandservicesofitsengineersandotherpersonnel.CharlieBullinger
willactasleadcontactatGRE.
CalnetixwillalsousetheservicesofHDREngineeringasengineeringconsultantsonissuesrelatingto
wasteheat
capture
from
the
plant
and
general
installation
issues.
Dave
Schmitz
will
act
as
lead
contactatHDR.
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Calnetixwillalsouseitsowninternalengineersandbusinessdevelopmentpersonneltoworkwith
GREandHDRontheproject.CalnetixpersonnelGordonFoster(BusinessDevelopmentManager),
ShamimImani(DirectorofEngineering)andChuckTaylor(PresidentofApplicationEngineering)will
actas
leads
from
Calnetix.
Environmentalandeconomicimpactsoftheprojectwhiletheprojectisunderway
Anytieinswillbeoptimallyplannedtobedoneduringplannedplantshutdownssothatimpactto
plantoperationswillbeminimal. Therewillbenodisruptionoftheplantoperationsduringthe
feasibilitystudyanddemonstrationsteps.
Ultimatetechnologicalandeconomicimpacts
BasedonthepreliminaryinvestigationconductedatCoalCreek,thereisanticipatedtobeatleast
200MWofextractablewasteheatavailableforconversiontoelectricityattheCoalCreekStation.
AssumingthenetheattoelectricityconversionrateofCalnetixscurrentWHG100of16%,anextra
32MWofelectricitycouldtheoreticallybegeneratedatCoalCreek.Thiswouldimprovetheoverall
efficiencyof
the
plant
by
approximately
2.5%.
Asnotedabove,8therearesixLigniteCoalpowerplantsinNorthDakotathatgenerate
approximately29.6mMWhofelectricityannually.Calnetixbelievesthatusingitssystem,anextra
915,000MWhofelectricitycouldbegeneratedfromthewasteheatattheseplantswithout
additionalfuelcostsoremissionspenalties.AwasteheatrecoveryunitmayalsocontributetoNorth
DakotasRPS
goals,
and
could
also
provide
value
(in
the
form
of
lower
carbon
costs
per
MWh)
to
utilitiesundertherecentlyproposedObamaAdministrationcapandtradeprogram.
8Seepage10above.
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Onanationalscale,thepotentialbenefitsoflowtemperaturewasteheatrecoveryaresignificant.
AccordingtotheDOE,thereisapproximately26Quadsor8.5millionGWhofrecoverablewasteheat
peryearavailableintheUnitedStatesfromthermalpowerplantsandindustrialprocesses.9The
wasteheat
from
thermal
power
plants
exceeds
the
energy
annually
consumed
by
the
U.S.
transportationsector.10
Assuming20%ofthiswasteheatwasaccessedatanetconversionrateof
16%wouldimplygenerationofapproximately272,000GWhofelectricityfromrecoveryofthis
wasteheat,equaltoapproximately7%ofUSgridcapacity.11
WasteHeatbySector:DOEThermallyActivatedTechnologies,TechnologyRoadmap;May2003
ProducingsufficientCalnetixunitstosupply10%ofthispotentialmarket(2501.5MWeunitsper
yearfor10years)isestimatedtocreateaNorthDakotabasedbusinessgeneratingrevenuesofover
$950mperannumandemployinginexcessof500workers.12
9DOEThermallyActivatedTechnologies,TechnologyRoadmap;May2003.
10DOEThermallyActivatedTechnologies,TechnologyRoadmap;May2003.
11USGridcapacityequaltoapproximately4.16mGWh;EnergyInformationAdministrationElectricPower
Monthly,December2008.12
CalnetixestimatesbasedoncurrentWHG100costsandproductionstaffing.
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4.StandardsofSuccess
StepOne
Validatingthatthereisabasictechnicalandeconomicfeasibility/justificationforusingwasteheat
fromalignite
power
plant,
and
sufficient
quantities
of
waste
heat
exist,
to
generate
electricity
using
multipleCalnetix12MWeorganicrankinecyclewasteheatrecoverygenerators.Sufficientevidence
thatCalnetixshouldproceedwithStepTwo(sitedemonstration).
StepTwo
GenerationofreliableandconsistentpowerfromawasteheatsourceatGREsCoalCreekStation
withno
fundamental
technical
issues.
Basic
economic
validation
of
the
application.
Sufficient
evidencethatCalnetixshouldcontinuewithdevelopmentofa12MWeunit.
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5.Background.
Priorworkrelatedtotheprojectconductedbytheapplicantandotherparticipantsincludes:
(a) developmentoftheCalnetixWHG100wasteheatgenerator;
(b) studyand
conceptual
design
of
a1.5MWe
waste
heat
generator
suitable
for
power
plant
applications;
(c) internalCalnetixstudyontheapplicationofwasteheatrecoverytolignitepowerplantsto
assessmarketsizingandindustryviability;and
(d) November2008sitevisittoGreatRiverEnergysCoalCreekStation.
Developmentof
Calnetix
Waste
Heat
Generator:
CalnetixsWHG100wasteheatgeneratorwasdevelopedasanefficientmeansofconvertingwaste
heataslowas200Fintoelectricity.Figure1illustratestheworkingsoftheunit(numberscorrespond
tothedescriptionsbelow):
1. TheunitemploysanorganicrankinecycleclosedloopinwhichR245fa(nonflammable,
biodegradablerefrigerant
manufactured
by
Honeywell)
is
exposed
to
the
waste
heat
source
andchangesfromliquidtosuperheatedgas.
2. Thispressurizedgasisusedtospinaturbinewheelcoupledtoahighspeedgenerator
spinningbetween20,00030,000rpm,producingelectricity.
3. Afterexitingtheturbine,thegasispassedthroughaneconomizerwhereaportionofits
heatisstrippedoutandusedtopreheattheliquidrefrigerantatanotherpointofthecycle
(seestep
5below).
4. Thegasisroutedthroughacondensertoloweritstemperatureandreturnittoitsliquid
state.
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5. Toincreasesystemefficiency,theliquidrefrigerantisroutedtoaneconomizer(exposingit
tothegasifiedrefrigerantexitingtheturbine),increasingitstemperaturebeforereexposing
ittothewasteheatsource,regasifyingitandrepeatingthecycle.
Expander
Receiver
Evaporator
HeatSourceMin2.8MBTU/H
Generates
125kw
Economizer
EvaporativeCondenser
(1)
(2)
(4)
(3)
(5)
Figure1:CalnetixWHG100Cycle
Understandardconditions,theWHG100canutilize625700kWofheatinputtogenerate100
110kWenetelectricity.Thisnetoutputtypicallyvariesinthisrangebasedonenvironmental
conditionsandinstallationconfiguration.
TheheartoftheCalnetixunitistheintegratedexpander/generatormodule. Themoduleis
comprisedof
aturbo
expander,
high
speed
permanent
magnet
generator,
magnetic
bearing
system,
andhousingwithturbonozzlecone. Figure2belowshowsacutawayofthemodule.Themoduleis
designedsotherefrigerantflowsthroughtheunit(fromrighttoleftinthefigure).Therefrigerant
flowsaroundtheturbonozzleconeandisexpandedovertheturbineimpeller,whichtogetherwith
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theresultingpressuredropthroughtheexpander,causestheturbineanddirectlycoupledgenerator
tospinupto30,000rpm.Thegeneratorisdirectlyexposedtotheexpandedrefrigerantforcooling
beforeitexitsthroughtheoutlet.Thebenefitofthisdesignisthatthegeneratordoesnotrequireits
owncooling
system
with
apump
to
circulate
coolant,
thereby
optimizing
the
efficiency
of
the
system.
Themagneticbearingsalsocontributetosystemefficiencyasthereisnocontactandthusnofriction
betweentherotatingcomponentandthebearings.Atsuchhighrotationalspeed,conventional
bearingswouldrequirefrequentmaintenanceandreplacementduetocontactwear.
Figure2 CalnetixIntegratedExpander/GeneratorModule
Calnetixutilizesasmarthighswitchingfrequencyrectifierandinvertersystemtoconverttheenergy
ofthe
generator
to
grid
voltage
and
frequency.
The
Calnetix
smart
rectifier/inverter
system
is
able
to
compensateforthevariedspeedofthegeneratorbasedonvaryingwasteheatloadconditions,thus
alwaysenablingthesystemtorunatitsmostefficientpoint.Competitorproductscanonlyrunata
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fixedspeedandemployagearboxbetweentheturbineandgenerator,resultinginalessefficient
systemduetothelackofspeedoptimizationcapabilityandthelossesofthegearbox.
Figure3shows
the
WHG100
as
manufactured
at
the
Calnetix
production
facility.
The
unit
includes
all
functionalitynecessaryoutsideoftheheatexchangerandcondenser.
Figure3CalnetixWHG100
Figure4showsastandardpackagedunit(i.e.20ftcontainerintowhichtheWHG100hasbeen
fitted)inatypicalapplication. Here,methanefromawastewatertreatmentfacilityisbeing
combustedand
the
heat
energy
is
converted
to
electricity.
On
top
of
the
container
is
the
combustor
alongwiththeheatexchangerthatexchangesthecombustedexhaustgaswiththerefrigerant.
Behindthecontainer(totherightinthebottomphoto)istheevaporativecondenser.
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Figure4ApplicationofCalnetixWHG100wasteheatrecoverygenerator
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ThepackagedunitpicturedaboveisthesametypeofunitthatwouldbeinstalledatCoalCreekfor
theStepTwodemonstration,andtheCoalCreekinstallationwouldlikelyhaveasimilarconfiguration
andlayout.
TheprimaryadvantageoftheWHG100,andCalnetixsdesignandmanufacturingapproach,isits
modulardesignandfactorybasedproduction.Thisallowsastandardizedproductwithresultant
costandqualityadvantages,aswellasprepackagedasaplugandplayunitrequiringonlythe
installationofheatexchangerandcondensingsource,andconnectiontothegrid. Other
commerciallyavailablewasteheatrecoveryunitsarecustomdesignedforeachinstallation,which
involvesconsiderable
time
and
costs
related
to
custom
engineering.
TheWHG100hasalsobeendesignedtobematchedtovaryingapplicationsincludingdifferentheat
sources(liquidorgaseous),ordifferentcondensersmanufacturedbythirdparties(airorwater
cooled).Combiningastandardizedproducttoexistingthirdpartcomponentsalsoallowsforoverall
reductionininstallationcostsandleadtimes.
StudyandConceptualDesignofaLargerUnit
ThecurrentCalnetixunitcanbeinstalledinparallel(i.e.unitspackagedtogetherusingcommon
pipingandcontrolsandutilizingasingleheatexchangerandcondenser)toextractheatsourcesthat
areoverthecapacityofoneunit. However,duetospaceandotherfactorssuchaspressuredrop
withinpiping,itisnotfeasibletoparallelmorethanaboutfiveunits.Inaddition,manyheatsources
frompower
plants
and
large
industrial
facilities
would
support
multi
MW
installations.
Inordertoextractlargerwasteheatsourceswithinpowerplantsandlargerindustrialapplications
moreefficiently,aswellasaddresslargerindustrialandutilitywasteheatsourceswithoutparalleling
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dozensofsmallerunits,Calnetixbelievesitisoptimaltodevelopalargerunitinthe1to2MWe
range.
Thecurrent
low
temperature
ORC
solutions
in
this
power
range
are
all
custom
built
and
installed
usingfixedspeedorgearedgenerators,whichresultsinlarge,expensiveandrelativelyinefficient
installations.Calnetixbelievesthatatthislargerpowerrange,thereissignificantadvantagein
keepingthesamehighspeed,modular,factorybuiltplugandplaydesignphilosophyasthecurrent
WHG100productionunit,inordertoreducetheengineeringcostandleadtimenecessaryforonsite
applicationtothevariouswasteheatsources.
Calnetixhasundertakenconceptualdesignandengineeringworkonthislargerunit,including
preliminaryanalysisof:
ORCcycleanalysisandrefrigerant
Usabletemperatureranges
Poweroutput
Expanderandgeneratordesignandspecification
Heatexchangerandcondenserspecifications
Developmenttimeline
Cost+ROI/Payback
Aschematicoftheconceptualdesignfromthisworkissetforthbelow.Thisdesignwouldbeusedas
thebasisforthephysicaldevelopmentofthelargeunit,forwhichCalnetixisseekingfundingfrom
theDOE.
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28ft20ft
17ft
Figure5.ConceptualDesignof1.5MWCalnetixWasteHeatRecoveryUnit
InternalCalnetixStudyOnTheApplicationOfWasteHeatRecoveryToLignitePowerPlants
CalnetixestimatesthatlignitepowerplantsinNorthDakotacouldpotentiallygenerateanadditional
915GWhofemissionsfreeelectricitybyrecoveringlowgradewasteheat.Thistranslatesintoa3%
improvementinoverallefficiency.Thisfigureassumesthattheaveragelignitepowerplantis33%
efficientandthatoftheremaining67%wastedenergy,10%ofthisisrecoverablewasteheatwhich
canbeconvertedintoelectricityat16%netefficiency.Thetablebelowliststhemajorligniteplants
intheNorthDakota,alongwithestimatedoutput,efficiency,andrecoverablewasteheat.Amore
detailedstudywillberequiredtorefinetheseestimates.
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Potential Waste Heat at North Dakota Lignit e Coal Plants
Net Waste ORC
Generation Assumed % Energy Extractable Waste Heat Potential
Power Plant (MWh) (1) Efficiency (MWh) % of waste energy MWh (MWh) (2)
Antelope Valley Station 6,317,269 33% 12,825,970 10% 1,282,597 205,216
Coyote Station 3,060,200 33% 6,213,133 10% 621,313 99,410
Leland Olds Station 4,576,988 33% 9,292,673 10% 929,267 148,683
Milton R. Young Station 5,117,272 33% 10,389,613 10% 1,038,961 166,234
Coal Creek Station 8,559,089 33% 17,377,544 10% 1,737,754 278,041
Heskett Station 523,027 33% 1,061,903 10% 106,190 16,990
Total 28,153,845 57,160,837 5,716,084 914,573
(1) CEC, North American Power Plant Air Emissions, 2004
(2) Assumes 16% ORC efficiency
Theimprovement
in
efficiency
would
have
both
economic
and
environmental
benefits.
Generation
ofelectricityfromwasteheat,andthenetefficiencygainsfromit,couldbeusedtogeneratethe
sameamountofelectricityusinglessfuel,ormoreelectricityforthesamefuelinput.Eitherway,
therewouldbeaneconomicandemissionsbenefitfromusinglessfueltogenerateagivenamount
ofelectricity.Calnetixestimatesthatusingwasteheatgeneration,andmaintainingcurrentpower
output,ligniteplantsinNorthDakotacouldcollectivelyreduceCO2emissionsby1,200,000tonsper
yearas
well
as
meaningfully
reduce
emissions
of
SO2,
NOx,
and
Mercury.
The
table
below
lists
the
emissionsprofileofeachligniteplantandthepotentialemissionsbenefitofwasteheatrecoveryat
currentpoweroutputs.
Potential Emissions Savings f rom Waste Heat Recovery
ORC
Potential Emissions (lbs/MWh) (1) Annual Savings (tons)
Power Plant (MWh) CO2 SO2 Nox Mercury CO2 SO2 Nox Mercury
Antelope Valley Station 205,216 2,447.2 4.1 4.1 63.7 251,100 419 425 6,535
Coyote Station 99,410 2,572.1 8.1 7.9 98.5 127,845 401 395 4,895
Leland Olds Station 148,683 2,462.9 20.5 4.8 70.6 183,094 1,524 359 5,248
Mil ton R. Young Station 166,234 2,411.8 11.1 9.0 98.1 200,463 919 750 8,153
Coal Creek Station 278,041 2,640.5 7.6 3.0 98.6 367,083 1,062 413 13,705
Heskett Station 16,990 2,500.0 5.0 5.0 90.0 21,238 42 42 765
Total 914,573 2,505.7 9.4 5.7 86.6 1,150,823 4,368 2,384 39,300
(1) Emissions data from EPA emissions tracking system; Calnetix estimates used for Heskeet Station
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Therearetwomaineconomicbenefits.Thefirstbenefitrelatestocostsavingsfromlowercoalusage,
withsavingsestimatedat$20/MWh.Thisrepresentstheestimatedmarginalcostofpower
generation(i.e.,
before
distribution
and
transmission
costs).
The
second
benefit
relates
to
potential
costsavingsfromafuturecarboncredittradingsystem.TheObamaAdministrationisproposinga
planthatwouldrequireUSindustriestobuyacarboncredit(equaltoonetonofCO2emitted)for
everytonofemissions.PointCarbon,anindustryresearchgroup,hasestimatedthattheObamaplan
wouldcover80%ofUSbusinessesandresultinapriceof$13$20pertonofCO2.13
Forpowerplant
operatorsinNorthDakota,thiswouldtranslateintohundredsofmillionsofdollarsofadditionalcost.
Calnetixestimatesthatthroughutilizingwasteheatrecovery,NorthDakotasligniteplantscould
savecloseto$35millionperyearfromlowercoalusageandlowercarbonemissions.Thisis
estimatedonfuelsavingsaloneanddoesnottakeintoaccounttheavoidedcapitalcostfrom
creatingnewcoalfiredcapacityatapotentiallyhighercostperkWhthanawasteheatsolution.The
analysisisshowninthetablebelow.
Potential Economic Benefit
ORC
Potential Efficiency Gains CO2 Savings Total
Power Plant (MWh) Cost/kWh Savings/yr ($) $/Carbon credit Emission (tons) Savings/yr ($) Savings ($)
Antelope Valley Station 205,216 0.020 4,104,311 13.70 251,100 3,440,074 7,544,385
Coyote Station 99,410 0.020 1,988,203 13.70 127,845 1,751,470 3,739,672
Leland Olds Station 148,683 0.020 2,973,655 13.70 183,094 2,508,383 5,482,038
Milton R. Young Station 166,234 0.020 3,324,676 13.70 200,463 2,746,342 6,071,018
Coal Creek Station 278,041 0.020 5,560,814 13.70 367,083 5,029,043 10,589,858
Heskett Station 16,990 0.020 339,809 13.70 21,238 290,962 630,771
Total 914,573 18,291,468 1,150,823 15,766,273 34,057,741
13Forabovepurposes,Calnetixhasused$13.70/ton,thepriceassumedbyPointCarbonasthecostpertonof
CO2emissionsin2012undertheObamaAdministrationFebruary2009capandtradeproposal.
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SiteVisittoGREsCoalCreekStation
SetoutbelowisasummaryofthetourtakenofCoalCreekStationinUnderwood,NorthDakota,mid
November2008,
by
representatives
of
Calnetix.
Calnetix
was
hosted
by
Charlie
Bullinger
from
GRE.
CoalCreekwascommissionedin197980andisownedandoperatedbyGreatRiverEnergy.The
planthasatotalgenerationcapacityof1,200MWandconsumesapproximately22,000tonsoflignite
coalperday.Setoutbelowarethesummaryfindingsfromthevisitastheyapplytoapotential
wasteheatrecoveryapplication.
1. Sootblowerdrain: Steamtocleantheliningoftheboilersystemismoreimportantto
ligniteplantsversusothercoalplantsandsignificantsteamdrainisavailableatover400F
withabout15,000lb/hrfor600MWplant.Thiscouldbeconvertedtoelectricpower.
2. Fluegas: Assumingpowerplantefficiencyofaround30%,30%oftheinputenergyis
dissipatedthrough
the
chimney.
The
flue
gas
temperature
is
around
350F
with
aflow
of
about1.8Macfm. Thiswasteheatisbeingcooleddowninawetscrubbersystemto170F.
AtCoalCreek,aCalnetixwasteheatrecoverysystemcouldpotentiallycaptureabout60MW
ofelectricpowerfromthisheatsource. Acloserstudywillbeconductedtoidentifythe
challengesofinstallingheatexchangerstothisheatsource.
3. Flyash:Flyashiscollectedafterthehightemperaturefiringpointintheboilerandmixed
withsometypeofliquidtotransfer.Thetemperatureoftheflyashisabove300F.This
couldbeagreatheatsourceforaCalnetixwasteheatgenerator.
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4. Other: Scrubbersludgehasalsobeenidentifiedasapossiblesourceofheat.Althoughthe
temperatureisaround200Forlower,thisheatcanbeutilizedasaprewarmerofthe
organicfluid.
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6.Qualifications
Calnetix
Establishedin1998,CalnetixInc(www.calnetix.com) designs,manufactures,andmarketsinnovative
powergeneration
products
that
help
customers
save
energy
and
money.
Calnetix
is
headquartered
inSouthernCaliforniawithmanufacturingfacilitiesinCaliforniaandFlorida. Calnetixhasaglobal
OEMcustomerbaseincludingShell,Honeywell,BritishPetroleumandMitsubishiHeavyIndustries.
Calnetixscoretechnologiesincludehighspeedpermanentmagnetmotorsandgenerators,magnetic
bearings,powerelectronics,turbinesandexpandersusedtodevelopsolutionsforcustomers
includingend
use
solutions
such
as
microturbines
and
waste
heat
recovery
units.
Calnetix
has
an
experiencedmanagementteamwithover100yearsofcombinedexperiencerelevanttowasteheat
andgasopportunities.Calnetixowns100%ofitskeyIP,includingtradesecrets,manufacturing
processes,and12patents.
ApplicantRepresentative:GordonFoster(BusinessDevelopmentManager)
Gordonhas
over
eight
years
experience
in
business
development
related
to
the
energy
and
alternativeenergyindustry. HeholdsaMastersofBusinessAdministrationdegreefromthe
AndersonSchoolofManagement(UCLA)andaMastersofScienceaswellasBachelorsofScience
degreeinMechanicalEngineeringfromTexasTechUniversityinLubbock,Texas.
PrincipalInvestigator:ShamimImani(DirectorofEngineering)
Shamimhas
over
10
years
of
experience
in
the
industry
developing
energy
related
products.
He
has
workedextensivelywithandledmanydevelopmentsincludingflywheelsystems,turbochargers
(automotiveandmarine),expanders,compressorsandmicroturbines.HeholdsaMastersofScience
inElectricalEngineeringfromUniversityofCalifornia,LosAngeles(UCLA)andaBachelorsofScience
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degreeinElectricalEngineeringfromCaliforniaStatePolytechnicUniversity,Pomona(CalPoly,
Pomona)andhaspublishednumeroustechnicalpapers.
ChuckTaylor(PresidentofApplicationEngineering)
Chuckhasover30yearsexperienceinIndustrialRefrigerationbothonthecontractingsideand
ontheengineeringside.HehasaBachelorsDegreeinMechanicalEngineering,aMasters
DegreeinBusinessAdministrationandislicensedasaprofessionalengineerin38states.
PriortojoiningCalnetix,ChuckfoundedandranhisownrefrigerationengineeringfirmCRT
Design.PriortoCRT,hespent20yearswithTheStellarGroupinJacksonville,Florida,Under
Chucksleadership,Stellarrefrigerationdoubledinsizetobecomethelargestindustrial
refrigerationDesign/BuildfirmintheU.S.
GreatRiverEnergy
Great
River
Energy
(www.greatriverenergy.com)
is
a
generation
and
transmission
(G&T)
cooperative
thatprovideswholesaleelectricserviceto28distributioncoopsthatservemorethan620,000
members.Itownsmorethan4,500milesoftransmissionpowerlinesandownsorcoownsmore
than100transmissionsubstationsinMinnesota,NorthDakotaandWisconsin.
CharlieBullinger(SeniorPrincipalEngineer)
CharliehasbeenwithGreatRiverEnergysince1977,currentlyholdingthepositionofSenior
PrincipalEngineerinDryFining,Marketing,andEPRIR&D. HeisaProfessionalEngineerregisteredin
boththeStateofNorthDakotaaswellastheStateofMinnesota. CharlieholdsaBachelorsof
SciencedegreeinMechanicalEngineeringfromtheNorthDakotaStateUniversity.
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RichardGarmin(EngineeringProjectManager)
RichpossesseseighteenyearsofUtilityExperience. HeiscurrentlyEngineeringProjectMangerfor
approximately$500MinprojectscenteredinCentralNorthDakota,currentlyfocusedona$150M
Scrubberinstallation
project
as
well
as
a$150M
turbine
generator
project
at
the
Stanton
Station.
PriortoGRE,RichworkedatPacifiCorpsWyodakplantasaLeadMaintenanceEngineer.Heholdsa
MastersofBusinessAdministrationandProjectManagementdegreefromtheUniversityofMary,
andaBachelorsofSciencedegreeinMechanicalEngineeringfromtheSouthDakotaSchoolofMines
&Technology.
HDR
HDR(www.hdrinc.com)isanemployeeownedarchitectural,engineeringandconsultingfirmthat
helpsclientsmanagecomplexprojectsandmakesounddecisions.HDRhasmorethan900staff
dedicatedtoPowerandenergyprojects.HDRhashelpeddesignandconstructefficientand
economicalpowerplantsformorethan90years.Asaleaderinrenewablepowerindustry,HDRhas
beeninvolvedwiththedevelopmentofmorethan16,000MWofwindenergy.
RogerW.Nagel,P.E.
Rogerpossessesoverseventeenyearsofexperienceinthedevelopmentanddesignofpower
generationandcogenerationprojects.Hehasbeeninvolvedwiththedesignofcombinedcycleand
conventionalsteamplantsfueledwithgas,gasifiedLNG,oil,coal,pondfines,landfillgasand
petroleumcoke.Experienceincludesinvolvementwithfeasibilitystudies,proformaanalyses,
thermalcycle
design,
system
design,
equipment
specification
and
technical
equipment
contract
administration.
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DavidP.Schmitz,P.E.RegionalPowerProgramManager
Davidhasover35yearsofexperiencewithBasinElectricPowerCooperativewherehisrolesincluded
plantengineer,
project
engineer,
project
coordinator,
project
manager,
manager
of
engineering,
and
VPofengineeringandconstruction.Experienceincludesoperations,engineeringandconstructionof
largeligniteandPRBfueledpowerplants,engineeringandconstructionofhighvoltagetransmission
linesandsubstations,andcombustionturbineunits,planningandexpansionofmicrowaveandfiber
optictelecommunicationssystemsandkeyrolesinacquisitionandsubsequentmodificationstothe
GreatPlainsSynfuelsplant.Hismostrecentprojectwasworkingonthedevelopmentofanewlarge
baseload
power
plant
with
primary
emphasis
on
site
and
technology
selection
(especially
IGCC
vs
SCPCandcarboncapture)anddevelopmentofapermittingstrategy.
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7.ValuetoNorthDakota.
Assumingtheprojectisfullyfunded,Calnetixanticipatesthattheresultsofthedemonstrationwill
showtechnicalviabilityof,andmarketopportunityfor,lowtemperaturewasteheatrecoveryat
lignitepower
plants.
These
results
will
be
vital
in
allowing
Calnetix
to
further
develop
and
commercializeitslargerunit.Theycouldalsobeusedbytheligniteindustrytoshowaneconomically
feasiblewayofimprovingplantefficiencyanddecreasingnetemissions.
BasedonthepreliminaryinvestigationconductedatCoalCreek,Calnetixestimatesthatatleast
200MWofextractablewasteheatisavailableforconversiontoelectricityattheplant.Assumingthe
samenet
heat
to
electricity
conversion
rate
of
16%
of
Calnetixs
current
100kWe
unit,
which
should
beabletobereplicatedinthelargerunit,anextra32MWofelectricitycouldpotentiallybe
generatedatCoalCreekbyinstallingthelargerwasteheatunits.Thiswouldimprovetheoverall
efficiencyoftheplantbyapproximately2.5%.
Assetoutabove,therearesixLigniteCoalpowerplantsinNorthDakota,whichCalnetixestimates
couldderive
an
additional
915,000
MWh
of
electricity
from
installation
of
waste
heat
units
without
additionalfuelcostsoremissionspenalties.14
AwasteheatrecoveryunitmayalsocontributetotheNorthDakotaRPSobjectives,andprovide
potentialcostsavingsundertheObamaAdministrationsrecentlyintroducedcarboncapandtrade
proposal. Atanestimatedcostof$13.70/tonofCO2,utilizationofwasteheatrecoveryonlignite
powerplants
in
North
Dakota
could
provide
asaving
of
approximately
$16m/year
under
this
proposal.15
14Seepage10above.
15Seepage10above.
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Calnetixbelievestheaboveefficiencyandsavingsbenefitscouldassistinkeepinglignitecoal
economicalandcompetitiveasafuelsourceintothefuture.
Calnetixalso
intends
to
produce
the
larger
waste
heat
unit
in
North
Dakota,
and
estimates
that
(subjecttofunding)initialcommercialproductionunitsshouldbecommerciallyavailablewithin36
months.Asnotedabove,Calnetixcalculatesthatapproximately272,000GWhcouldbegenerated
annuallyfromwasteheatsourcesfromthermalpowerplantsandindustrialprocessesintheUS
alone.16
ProducingsufficientCalnetixunitstosupply10%ofthispotentialmarket(2501.5MWeunits
peryearfor10years)isestimatedtocreateaNorthDakotabasedbusinessgeneratingrevenuesof
over$950m
per
annum
and
employing
in
excess
of
500
workers.17
16Seepage16above.
17CalnetixestimatesbasedoncurrentWHG100costsandproductionstaffing.
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8.Management.
Calnetixwillassignaprojectmanagertoensurethattasksarecarriedoutonschedule,andthatthe
objectivessetforthhereinwillbemetwithinthe22monthsallotted.Thisprojectmanagerwill
coordinateactivities
by
HDR
Engineering,
Great
River
Energy,
as
well
as
those
activities
internal
to
Calnetix. Theprojectmanagerwillalsomonitorthebudgetfortheprogramtoensureagainst
overruns.
AsdetailedinSection3(ProjectDescription),StepOneentailsasixteenweekprocesstoidentifyand
quantifyheatsources,andvalidatethetechnicalviabilityofconnectingtheCalnetixunittothese
sources.This
step
primarily
involves
the
project
manager
coordinating
with
HDR
Engineering
to
ensureexecutiononthespecifictasksasoutlinedbelow.
Sitevisittoobtaindata,reviewconceptsandreviewexistingplantequipmentforpotential
utilization.
PerformancemodelingoftheexistingfacilitybeforeandaftertheadditionoftheWHG
installationassuming1to2MW.
Identificationoftechnicalrisksandriskmitigationstrategies.
Developmentofcostestimatefortotalinstallation,includingallequipmentmodifications
andgeneratorpricingaspredictedbyCalnetix.
Developmentofahighlevelconceptualonelinediagramtorepresenttherequirementsfor
theelectricaltieinfornewgeneration.
Developmentofafeasibilitystudyreportdescribingtheproposedinstallationandincluding
theresultsofalloftheaboveactivities.
WithinStepOne,therearefourevaluationpoints(monthlyreviewmeetingstotrackprogress).
Thesewillbeledbytheprojectmanagerwhoshallensurethatappropriatemilestonesarebeingmet.
Duringthesereviews,anynecessaryadjustmentswillbemadetothetasks,especiallyasthetasks
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identifiedmaynotoccursequentially. Itwillalsobethetaskoftheprojectmanagertoensurethe
feasibilitystudyreportisissuedontimeasthereportwillbethebasisofproceedingwithStepTwo.
StepTwoinvolvesinstallingandrunningthe100kWeCalnetixdemounitforproofofconcept.This
willinvolvecoordinatingtheinstallationoftheunitonsite,followedbycontinuedmonitoringofthe
unitonceoperational.
Regardinginstallation,theCalnetixprojectmanagerwillcoordinatewithHDR,GREandinternal
Calnetixengineerstodevelopaninstallationandsiteconstructionplanandschedule.Appointment
ofsubcontractorsshallbemadeinconsultationwithGREanditisanticipatedthatinstallation
progresswillbemonitoredbyGREwithfrequentsitevisitsbyCalnetixpersonnelduringthisperiod.
Duringthetestingphase,theunitwillbecontinuouslymonitoredinrealtimebyCalnetixfromits
facilityinFlorida(theunitwillhaveitsownIPaddressandcandownloaddatainrealtimeonsite).
ThisinformationwillalsobeavailabletoGREandHDR.Ifnecessary,reviewmeetingswillbecalled.
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MaintenanceontheunitduringthetestingphasewillbecarriedoutbyCalnetixoroneofits
authorizeddistributorsinaccordancewiththeprescribedmaintenanceschedulesfortheWHG100.
Quarterlyreports
on
unit
performance,
as
well
as
the
final
report,
will
be
prepared
by
Calnetix
and
distributedamongthepartiesincludingtheLRCaccordingtothechecklistandtimetablebelow.
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9.Timetable.
Theproposedtimelinefortheprojectissetforthbelow. Theprojectisdividedintotwostepsandis
basedontheassumptionthatLRCfundingwillbemadeavailablebytheendofMay2009inorderto
commencethe
project
by
June
1.
StepOneinvolvestheidentificationandvalidationofwasteheatsources. Thedetailsregardingthe
stepscanbefoundintheProjectDescriptionsectionabove. Theprojectedtimelineis16weeks
therebyplacingthecompletiondateattheendofSeptember.
Twomonths
into
Step
One,
areport
will
be
submitted
to
track
the
progress
of
the
study
including
an
updateonanyforeseeablechangesinthefuturetimeline. AttheendofStepOne,aninterimreport
willbesubmittedwiththestudyresultsand,shouldstudyresultssupportproceedingtothenext
phase,arequesttofundStepTwo.Shouldthestudyresultsnotsupportproceedingwiththedemo,
thereportsubmittedattheendofSeptemberwillbethefinalreport.
Step
Two
involves
the
demonstration
of
the
Calnetix
WHG100
demo
unit.
The
unit
will
be
run
for
12
monthscontinuouslyinordertovalidatetheconcept.Thescheduleisbasedontheassumptionthat
fundsfromtheDOEwillbemadeavailablebyNovember1,allowingCalnetixtostartontheactivity.
Oncefundingisavailable,equipmentwillbepurchasedwithanexpectedleadtimeoftwomonths
forreceipt.Oncetheequipmentisreceived,itisanticipatedtheinstallationprocesswilltakeanother
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twomonths.Basedonthistimeline,thedemonstrationcanstartfunctioningbythebeginningof
March2010.Duringthe12monthdemonstrationperiod,eachquarteraprogressreportwillbe
submitted,followedbyafinalreportthatwillbegeneratedbasedonthedatagatheredthroughout
thosetwelve
months.
Followingcompletionofthedemonstration(i.e.after12months),CalnetixandGRE,inconsultation
withtheLRC,willmakeadeterminationoftheongoinguseoftheunit.Thiscouldincludecontinued
demonstrationoftheunitatCoalCreek,makingtheunitavailableforinstallationanddemonstration
atafacilityoperatedbyanotherLRCmember,orsaleoftheunitinordertomakeapartialrefundto
theLRC
of
grant
monies.
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10.Budget
ThebudgetforStepOneisacombinationofanottoexceedestimateof$80,000forengineering
consultingservicesprovidedtoCalnetixbyHDREngineering,directcostsincurredbyCalnetixin
supportingthe
project
and
providing
engineering
services
for
design
and
installation
of
apotential
largeunit,andinkindcontributionsfromGREofsalariedpersonnelwhowillbespendingtimeand
resourcesontheproject.Thebudgetusesastandardengineeringhourlyrateof$165/hourfor
CalnetixandGREresources.
AbreakdownofthesecostsinrelationtoStepOneisasfollows:
WasteHeat
Recovery
for
Lignite
Power
Plants
Step
One
Identification
&
Validation
Direct
2009 Responsibility Resource Hours Inkind Cost Duration
Kickoffmeeting Calnetix 2 10 $1,650 1day
GRE 2 10 $1,650
HDR fixed
SitevisittoCoalCreektoobtaindata Calnetix 3 20 $3,300 2days
GRE 2 20 $3,300
HDR fixed
Reviewmeetings Calnetix 2 20 $3,300 1dayea.
GRE 2 20 $3,300
HDR fixed
FacilityandWHRPerformanceModeling Calnetix 50 $8,250 1to2mo
HDR fixed
RiskIdentification HDR fixed 2weeks
ProcessFlowdiagrams HDR fixed 1to2mo
CostEstimate Calnetix 50 $8,250 1to2mo
HDR fixed
ProgressReport Calnetix 20 $3,300 7Aug
HDR fixed
Interim
Report
(to
wrap
up
Step
1) Calnetix 30 $4,950 16
Oct
Administration(includingtraveletc) Calnetix $20,000
GRE $20,000
HDR fixed
Totalinkind 50 $28,250
TotalDirect(includesHDRnottoexceed$80,000) $133,000
GrandTotal $161,250
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ThebudgetforSteptwoisacombinationofhardware/equipmentcosts,onsiteinstallationcostsand
additionalengineeringfromHDRandcontributionsfromCalnetixandGRE,usingthesame
assumptionsregardingCalnetixandGREhourlycostsasStepOne.
AbreakdownofStepTwocostsisasfollows:
WasteHeatRecoveryforLigniteCoalFiredPlantsStepTwo Demonstration
Direct
Responsibility Hours Inkind Cost Duration
Step2 Demonstration
Install100kWunit,heatexchangersonsite Calnetix $501,195 4mo
Testperiodfor12months GRE 520 $85,800
Monitor2
hoursper
day
Calnetix 520 $85,800
Monitor2
hoursper
day
Interimreports Calnetix 80 $13,200 4reports
FinalReport Calnetix 40 $6,600 29Apr
Administration Calnetix 100 $16,500
GRE 160 $26,400
Totalinkind $112,200
TotalDirectCost $623,295
GrandTotal $735,495
TherequestedStepOnegrantof$80,000willprimarilysupportthecostsofHDREngineering,and
CalnetixandGREwillmeettheirowncosts.TherequestedStepTwograntof(nottoexceed)
$250,000willpayaportionofthecapitalequipmentcostsrelatedtothedemonstrationalongside
matchingfundsfromtheDepartmentofEnergy.
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ThefundingrequestedisnecessarytoachievetheprojectsobjectivesaswithoutLRCsupport,itis
unlikelythatCalnetixwouldseektoundertakeperformancemodelingofitsunit,orundertake
demonstrationtesting,atalignitepowerplant.Inaddition,withoutLRCsupport,Calnetixanticipates
thatcommercialization
of
the
larger
unit
would
be
delayed
and
may
potentially
not
be
designed
in
a
formsuitableforinstallationatthermalpowerplants.
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11.Matchingfunds
AtStepOne,Calnetixhasobtainedanottoexceedquoteof$80,000fromHDREngineeringaspart
ofan
overall
estimated
cost
of
$161,250.
The
remaining
funds
will
be
provided
by
the
direct
resourcesofCalnetix(engineeringandadministration), andinkindresourcesofGRE(engineering,
plantaccessandadministration)whoshallbeinvolvedintheprojectonadaytodaybasis.Assigning
thesepersonneltothisprojectrepresentsoutofpocketandopportunitycostsforCalnetixandGRE.
If,foranyreason,theoverallcostsoftheproject(includingexpensesofHDREngineering)aregreater
thantheestimated$161,250setforthinthisapplication,Calnetixwillpaythedifferencedirectlyin
orderto
ensure
that
this
step
is
completed.
AtStepTwo,matchingfundswillbeprovidedbytheDOEfundingcurrentlybeingsoughtbyCalnetix,
aswellasfurtherdirectresourcesprovidedbyCalnetixandinkindcontributionsfromGRE.In
addition,CalnetixshallapplymostfavorednationpricingtotheWHG100demonstrationunittobe
installedonsite,suchthatiftheunitisbeingsuppliedtoanothercustomerofCalnetixatapriceless
thanthat
set
forth
in
this
application
such
price
shall
also
be
applied
when
supplying
that
unit
to
the
project.
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12.TaxLiabilityAffidavit
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13.ConfidentialInformation.
N/A
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