combined heat & power, energy efficiency & renewable energy
DESCRIPTION
Patrick BarrettManager, Distributed GenerationElectric Power North AmericaCaterpillar Inc.Efficient EnterprisesPowering American IndustryWashington DCJune 23, 2009TRANSCRIPT
Caterpillar: Non-Confidential
Combined Heat & PowerCombined Heat & PowerEnergy Efficiency & Renewable EnergyEnergy Efficiency & Renewable Energy
Patrick BarrettManager, Distributed GenerationElectric Power North AmericaCaterpillar Inc.
Efficient EnterprisesPowering American Industry
Washington DC
June 23, 2009
Caterpillar: Non-Confidential
$7.00+ a Gallon Gasoline
20% gap in Electricity Generation vs. Demand
Domestic Reserves in Decline
Unsecured Energy Supply
Rise in Energy Poverty 60% CO2 Reduction
By 2050
Source: dti White Paper, “Meeting the Energy Challenge”, May 2007
Is this Tomorrow’s World?
Caterpillar: Non-Confidential
Today’s Perspective:Rejected Energy From Electric Generation Is Equal to All of the Oil
Imported to the US Every Year
“The energy lost in the United States from wasted heat in the utility sector is greater
than the total energy use of Japan”.DOE Energy Information Administration Annual Energy Review 2007
Caterpillar: Non-Confidential
Challenge: Rejected Energy & Wasted HeatCan it be Captured & Used?
Yes, Through the Combined Heat & Power (CHP) Process
Caterpillar G16CM34 installed in Bramming Denmark
80%+ Efficiency vs. 45% Efficiency
Caterpillar: Non-Confidential
20 % of U.S. Electricity Generating Capacity 240,900 MW
Annual Energy Savings 5.3 Quads
Annual CO2 Reduction 848 MMT
Annual Carbon Reduction 231 MMT
Number of Car Equivalents Taken Off Road 154 million
Source: ORNLSource: ORNL
20 %20 %
What If CHP Represented 20% of US Generating Capacity in 2030?
Same as Taking 61% of U.S. Car Fleet Off of the
Road
Caterpillar: Non-Confidential
Combined Heat & Power – Our ChallengeWhere is the U.S. in Comparison to Other Countries?
Caterpillar: Non-Confidential
Combined Heat & Power – BarriersWhere is Support Needed on the Path to 20% Capacity in 2030?
Tax Policy – e.g. depreciation
Grid ConnectionsNew standards
Energy Prices(electrical vs fuel)
Incentives – rate structure
Environmental – Recognition - Incentives
Barrier
20% CHP capacity avoids 60% CO2 Growth in 2030
Lower Cost, Better TechnologiesDOE - “Better Ingredients and new Recipes”
Key Support
Capture CO2 Benefits
“As Good As Base” Business Model
Drive “Green” Capital Investment
Grid TransformationSmart Grid – Distributed Energy
These Determine Hurdle Rate – and
“Investment Decisions”
Caterpillar: Non-Confidential
Tomorrow’s World – Our ChallengeSupport for Technologies That Deliver Prosperity
ARESCAT G3520
Growth
Security
Jobs
Productivity
Low CO2 Competitive
CHP IntegrationSystem & Controls
Component Technology R&D- “The Cookie Ingredients”- Applications for Engines,
Turbines & Thermal Tech
CHP Integration for Industry- “The Cookie Recipe”- Cost – Reliability – Optimization- Target Industries - Chemicals,
Refining, Food Processing
Caterpillar: Non-Confidential
Combined Heat & Power (CHP)Forward Support – Next Steps
Growth
Security
Jobs
Productivity
Low CO2 Competitive
Business Attractiveness
Incentives to Make CHP Profitable to the Utility
Business- ARRA
- DOE to State- DOE Advise
Support
Commitment to Promote Deployment of CHP to DOE
CHP Vision & 2030 Plan- Education- Customers-Tax Credits
- Depreciation
Technology
“R&D FundingTo Improve & Deploy Technologies; and to
Lower Costs”- DOE ITP
Caterpillar: Non-Confidential
CHP – 2030 Grand ChallengeHelp us Fill in the Steps
2010 2020 2030
Finding Profitable Business Models
Developing Better Technologies
Addressing Customer and Public Needs
Overcoming Inertia
Attracting Resources
Developing better public policy
6 Months
Develop Key Support Tactics
Caterpillar – Your Partner in Sustainability
Caterpillar: Non-Confidential
Thank You – Questions – Discussion - Contacts
Vestal TutterowSr. Program Manager, Industrial ProgramAlliance to Save Energy(202) [email protected]
Paul BostromAssociate, Industrial ProgramAlliance to Save Energy(202) [email protected]
Bob GemmerDOE Industrial Technologies [email protected]
Stephen GoguenDOE Industrial Technologies [email protected]
THANKS to: - DOE’s ORNL CHP Report; Dec. 1, 2008 - Vestal Tutterow and the Alliance to Save Energy
And YOU for your Attendance Today
Clay ThompsonCaterpillar Government AffairsCaterpillar Inc.(202) [email protected]
Jason LynnCaterpillar Governmental AffairsCaterpillar Inc.(202) [email protected]