cospp20130910-dl
TRANSCRIPT
-
WORLD ALLIANCE FOR DECENTRALIZED ENERGY
In Association With
CO
GEN
ER
ATIO
N &
ON
SIT
E P
OW
ER
PR
OD
UC
TIO
NSe
pte
mb
er-O
cto
be
r 2013
September-October 2013
DENMARKS CLEVER USE OF COGEN IN EUROPES CONTINUALLY EVOLVING ENERGY MARKET n ITS BOOM TIME FOR THE SERVICING AND MAINTENANCE
OF INDUSTRIAL GAS TURBINES n SOUTH KOREAN PETROCHEMCIAL FACILITY BENEFITS BY FIRING ITS COGENERATION PLANT WITH A WASTE BY-PRODUCT
n ONE COMPANY HAS TAKEN A REVOLUTIONARY APPROACH TO HYDROGEN FUEL CELLS
WW
W.C
OSP
P.CO
M
ASEAN looks to decentralized energy
to meet demand
1309cospp_C1 1 9/9/13 11:25 AM
-
Online and On the Go Cogeneration On-site Power Production is the media you need to stay updated with the cogeneration and
cleaner, effcient distributed energy industry.
STAY UPDATEDwww.cospp.com
Easy Access, Rich Media Improves Readers Digital Experience:
!!"!!!!!
!!"!!!!!
!!!!!!!!!
!!!!!!!!!!!
!!!!!!""
Nearly 2/3 of our readers are already subscribed to our digital magazine, the new digital edition
will make a difference in your business AND the business of cleaner energy.
So get the most of our magazine and subscribe online!
The new digital edition will make a difference in your business
AND the business of cleaner energy. So stayed updated with COSPP!
1309cospp_C2 2 9/9/13 11:25 AM
-
For more information, enter 1 at COSPP.hotims.com
1309cospp_1 1 9/9/13 11:26 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com2
Contents Volume 14 Number 5September-October 2013
16
16 Launch then learn: On-site power development in ASEAN The impetus behind decentralized energy development in the ASEAN region is gathering pace. We look at the many opportunities that exist in helping to secure supply,
counterbalanced by the challenges that remain.
By Elisa Wood
22 Denmarks smart use of cogeneration Denmark is acknowledged as a frontrunner in forming adopting liberalized rules and regulations in its energy sector. It also ranks high in its innovative use of its large CHP feet.
This is perfectly by Skagen Varmevrk, a district heating company.
By Anders Ahnger, Bent Iversen and Mikael Frejman
28 Futures bright for IGT service & maintenance sector Stable growth is predicted for the global power plant services and maintenance market over the next fve years. We fnd out if this is refected in the services and maintenance
market serving the decentralized energy market, in particular the industrial gas
turbines (IGT).
By Dr. Heather Johnstone
34 CHP at petrochemical site: Fuel fexibility makes sense Heavy-duty gas turbines can enable CHP plants to burn process by-products that might otherwise be a liability. We present the design and operational experience of one such
CHP facility at a petrochemical complex, located in South Korea.
By Yoon-Ho Lee, Michel Moliere and Heung-Yub Ahn
38 A revolutionary approach to hydrogen fuel cell technology A UK-based clean energy frms revolutionary approach to hydrogen fuel cell technology, translates into cheaper, smaller and more durable fuel cells We explore the science behind
the technology.
By Dr. Andrew Creeth
Features
WORLD ALLIANCE FOR DECENTRALIZED ENERGY
In Association With
September-October 2013
DENMARKS CLEVER USE OF COGEN IN EUROPES CONTINUALLY EVOLVING ENERGY MARKET n ITS BOOM TIME FOR THE SERVICING AND MAINTENANCE
OF INDUSTRIAL GAS TURBINES n SOUTH KOREAN PETROCHEMCIAL FACILITY BENEFITS BY FIRING ITS COGENERATION PLANT WITH A WASTE BY-PRODUCT
n ONE COMPANY HAS TAKEN A REVOLUTIONARY APPROACH TO HYDROGEN FUEL CELLS
ASEAN looks to decentralized energy
to meet demand
Cover photograph: A bustling street at night in Bangkok. In the ASEAN region, Thailand is
seen as leading the charge in decentralized energy development
to secure supply and meet power demand. See the feature article
staring on p.16. PHOTO: SUPERSTOCK
1309cospp_2 2 9/9/13 11:26 AM
-
www.cospp.com
ISSN 14690349
Chairman: Frank T. Lauinger
President/CEO: Robert F. Biolchini
Chief Financial Offcer: Mark C. Wilmoth
Group Publisher: Glenn Ensor
Associate Publisher: Dr. Heather Johnstone
Managing Editor: Dr. Jacob Klimstra
Production Editor: Mukund Pandit
Consulting Editor: David Sweet
Contributing Editor Steve Hodgson
Design: Kajal Patel
Production Coordinator: Kimberlee Smith
Sales Manager: Natasha Cole
Advertising:
Natasha Cole on +1 713 621 9720
Editorial/News:
e-mail: [email protected]
Published by PennWell International Ltd,
The Water Tower,
Gunpowder Mill, Powdermill Lane,
Waltham Abbey, Essex EN9 1BN, UK
Tel: +44 1992 656 600
Fax: +44 1992 656 700
e-mail: [email protected]
Web: www.cospp.com
Published in association with the World Alliance for Decentralized Energy (WADE)
2013 PennWell International Publications Ltd. All rights reserved. No part of this publication may be reproduced in any form or by any means, whether electronic, mechanical or otherwise including photocopying, recording or any information storage or retrieval system without the prior written consent of the Publishers. While every attempt is made to ensure the accuracy of the information contained in this magazine, neither the Publishers, Editors nor the authors accept any liability for errors or omissions. Opinions expressed in this publication are not necessarily those of the Publishers or Editor.
Subscriptions: Copies of the magazine are circulated free to qualifed professionals who complete one of the printed circulation forms included in the magazine. Extra copies of these forms may be obtained from the publishers. The magazine may also be obtained on subscription; the price for one year (six issues) is US$133 in Europe, US$153 elsewhere, including air mail postage. Digital copies are available at US$60. To start a subscription call Omeda Communications at +1 847 559 7330. Cogeneration and On-Site Power Production is published six times a year by Pennwell Corp., The Water Tower, Gunpowder Mill, Powdermill Lane, Waltham Abbey, Essex EN9 1BN, UK, and distributed in the USA by SPP at 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: send address changes to Cogeneration and On-Site Power Production, c/o P.O. Box 437, Emigsville, PA 17318.
Reprints: If you would like to have a recent article reprinted for a conference or for use as marketing tool, please contact Rhonda Brown. Email: [email protected]. Tel +1 866 879 9144, extn 194 or direct line +1 219-878-6094.
Printed in the UK by Williams Press Ltd on elemental chlorine-free paper from sustainable forests.
Member, BPA Worldwide
www.cospp.com
22 28
38
4 Editors Letter
6 Insight
8 WADE Comment
10 News update
42 WADE pages
47 Diary
Regulars
1309cospp_3 3 9/9/13 11:26 AM
-
Editors Letter
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com4
Equations and opinions
A magazine such as Cogeneration
& On-Site Power Production
(COSPP) is supposed to have
value. That means it should
serve you, its readers, with useful content.
Value can originate from the pleasure of
reading interesting stories, from information
on products and suppliers, and from useful
knowledge about local power generators.
However, business life is so hectic these days
and so much information is offered constantly,
that a tendency exists to skip all nice to know
information and to concentrate only on need
to know information. The big question always
is, what is nice and what is needed?
I remember the time as a young engineer, I
tried to read almost any magazine and book
on engineering that I could get my hands on. I
hoped all that information would help me fnd
the right answers, and even the right questions.
I had and still have a very high esteem for
people who have the skill to write an article.
But it often took a lot of effort to understand
the content and the associated value of the
articles.
Only when I started to carry out my own
technical research did the situation change.
It is very peculiar, but when you are urgently
looking for an answer, digesting literature can
happen quickly. It appears that the brain can
automatically select what is needed and
ignore what can be skipped. Nevertheless, the
right literature has to exist, and COSPP has and
will play an important role in this.
The big question now is, what should a
good article for COSPP look like. Recently, a
friendly and helpful experienced engineer
told me that using formulas in an article
would immediately turn off the bulk of modern
readers. Many people are apparently allergic
to mathematics.
And yes, I agree with him: a formula by itself
is like a magic sentence, a charm, but can
lead to irritations. A good article is therefore not
based on formulas. However, good articles
can feature technical equations that illustrate
relationships between quantities. If the author
has explained what the background of the
equation is and how it can be used, preferably
with a diagram illustrating the relationship,
it can be an eye opener. Equations can, for
example, help you to calculate the fnancial
benefts of on-site power generation. Physical
relationships can also tell you why electricity
supply systems beneft from local generation.
Therefore, dear prospective authors, please
do not hesitate to insert helpful equations in
your articles. Good articles are more than an
opinion: good articles explain and teach.
Why am I writing this? It is partly a result of
being happy with a magazine dedicated to
distributed generation-related subjects, but
also partly due to some irritation. During recent
discussions with policy makers in Brussels on
the benefts of local generation, they told me
that what I said was nothing more than an
opinion. In order to get support for my opinion,
I had to show them that a large proportion of
the population supported me. When I tried
to explain that my reasoning was based on
scientifcally-proven facts, they still answered:
That is only your opinion.
One sees the same thing happening in
discussion groups on Linked-In and other
social media. Solid knowledge is replaced by
feelings and opinions. Fortunately, we have
this magazine, in which we can exchange
valuable information and help to provide
useful knowledge for further expansion and
optimization of cogeneration and on-site
power production.
Jacob Klimstra
Managing Editor
P.S. Dont forget to visit www.cospp.com to
see regular news updates, the current issue
of the magazine in full, and an archive of
articles from previous issues. Its the same
website address to sign-up for our fortnightly
e-newsletter too.
Dr. Jacob Klimstra
1309cospp_4 4 9/9/13 11:26 AM
-
The 2MW-class OP16 gas turbine is sophisticated in its
simplicity a robust design for extreme reliability;
featuring a unique all-radial conguration,
efcient ow path and advanced metallurgy.
CogenerationOil & Gas Onshore/OffshoreMarine Auxiliary Power
Robust Reliable Radial design Compact & lightweight
U LT R A LO W E M I S S I O N S
F L E X I B L E F U E L O P T I O N S
H I G H E S T E F F I C I E N C Y I N C L A S S
H I G H T E M P E R AT U R E C L E A N E X H A U S T G A S
LO W M A I N T E N A N C E CO S T
H I G H AVA I L A B I L I T Y
The OP16 is available in single and multiple installations, suitable for continuous or standby duty. Supplied as a standard package, congured to all climatic conditions and operations. Operates well on renewable bio fuels in addition to traditional liquid & gas fuels.
I N S TA L L AT I O N
E A S Y T R A N S P O R TAT I O N
OP16 generator sets providing
combined heat and power for
Winter Olympic Games,
Sochi, Russia 2014
OPRA!GLOBAL CUSTOMER SERVICES GLGLGLOBAL CUSTOMER SERVICES OBAL CUSTOBAL CUSTOBAL CUSTGLOBAL CUSTOMER SERVICES OBAL CUSTSOBAL CUSTGLOBAL CUSTOMER SERVICES OMER SERVICES OMER SERVICES OMER SERVICES SGLOBAL CUSTOMER SERVICES OMER SERVICES OMER SERVICES OMER SERVICES OMER SERVICES GLOBAL CUSTOMER SERVICES GLOBAL CUSTOMER SERVICES OMER SERVICES S LONG TERM SERVICE AGREEMENTS,LONG TERM SERVICE AGREEMENTS, LLONG TERM SERVICE AGREEMENTS, ONG TERM SERVICE AONG TERM SERVICE AONG TERM SERVICE AONG TERM SERVICE AONG TERM SERVICE AONG TERM SERVICE ASONG TERM SERVICE AONG TERM SERVICE ALONG TERM SERVICE AGREEMENTS, TONG TERM SERVICE AGREEMENTS,ONG TERM SERVICE AONG TERM SERVICE ALONG TERM SERVICE AGREEMENTS, ONG TERM SERVICE AONG TERM SERVICE AGREEMENTS,GREEMENTS,GREEMENTS,GREEMENTS,GREEMENTS,GREEMENTS,GREEMENTS,ENTSS,,
24-HR-ON CALL, RENTAL OPTIONSNS24-HR-ON CALL, RENTAL OPTIONS24-HR-ON CALL, RENTAL OPTIONS24-HR-ON C24-HR-ON C24-HR-ON C24-HR-ON C24-HR-ON C24-HR-ON CALL, RENTAL OPTIONS24-HR-ON C24-HR-ON CALL, RENTAL OPTIONS24-HR-ON CALL, RENTAL OPTIONSALL, RENTALL, RENTALL, RENTALL, RENTALL, RENTALL, RENTALL, RENTALL, RENTAL OPTIONSAL OPTIONS24-HR-ON CALL, RENTAL OPTIONSAL OPTIONSAL OPTIONSAL OPTIONS24-HR-ON CALL, RENTAL OPTIONSSNNNNSNNSS
31 (0) 74 245 21 21
WWW.OPRATURBINES.COM
T U R B I N E S
For more information, enter 2 at COSPP.hotims.com
1309cospp_5 5 9/9/13 11:26 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com6
Insight
Building cathedrals gives way to mass- produced power sources
Among three themes
recently asserted by
energy guru Amory Lovins
as affecting the US energy
scene is that momentum is shifting,
not just from fossil-fuelled power plants
to renewables, but from centralized to
distributed generation.
Writing in the summer issue of
its Solutions Journal, Lovins, the
cofounder and now Chairman
Emeritus of the infuential Rocky
Mountain Institute, likens traditional
power station development projects to
building a cathedral, and distributed
generation units to mass-produced,
manufactured products. He is talking
mainly about solar photovoltaic (PV)
panels, but the analogy works almost
as well for slightly larger distributed
generation technologies, including
CHP.
The point has been made before
that although the emergence of utility-
scale large wind farms garner a great
deal of attention, the parallel growth
of building-integrated solar panels,
CHP schemes feeding industrial sites
and commercial buildings, and new
district energy schemes, is more
a revolution in size, location and
ownership of generating plant than
simply from fossil fuels to renewable
sources of energy.
With giant forest fres threatening
power (and water) transmission to
the city of San Francisco at the time
of writing, the need for population
centres and industry to be less reliant
on remote, centralized electricity
generation is emphasized further. US
power grids tend to be highly reliable,
but the consequences of occasional
failure can be enormous.
Lovins other two themes are that
progress is fnally being made in terms
of the effciency with which energy is
used, both in buildings and in cars;
and that renewable projects of all sizes
are making serious gains, not only in
world-leading Germany but also in
the US. Lovins sees total US electricity
consumption steadily shrinking in the
future, rather than following traditional
growth patterns as spending on utility
energy-effciency programmes grows
to serious levels.
Meanwhile, prices of solar power
units have fallen to a point where the
technology can undercut power even
from modern gas-fred power plants.
Solar power accounted, says Lovins,
for 49% of new generating capacity
added to US grids in the frst quarter
of this year.
While new cathedrals take lots of
money and time to build, Chinese
PV panel factories are churning
out products 24/7 and solar power
prices are falling steadily. But its not
all about size and number of units
Lovins suggests that local ownership
patterns are crucial too. Denmarks
30-year transition from centralized
coal-fred power plants to distributed
wind and cogeneration plants came
about partly because most of these
units are owned either by local
farmers or communities. Likewise,
half of the renewables schemes in
Germany are owned by its citizens or
communities.
Aside from renewables, district
energy schemes are usually owned,
if not operated by, local government
units with a brief to lower energy costs
for their own buildings and, in some
cases, for publicly-owned housing,
alongside local business premises.
Operators of campus-based schemes
are in direct control of their own
energy costs.
Its certainly true, particularly in
Europe, that over recent years the
green agenda has favoured the
development of electricity-generating
renewables much more than energy
effciency, even though the impact
using (and generating) energy at
higher effciencies can have a similar
impact on carbon emissions. And
small-scale, high-effciency plants are
more easily fnanced, quicker to build,
and deliver considerable to benefts
to electricity grids.
This last advantage is diffcult to
quantify or monetize, but operators
of power grids fed from multiple
small sources with a variety of
technologies have a more resilient
power distribution system. Citizens
of San Francisco may be about to
experience the opposite of this.
Lovins is not complacent, though,
suggesting that the battle for what
he calls a more effcient, diverse,
distributed, renewable electricity
system is far from won. Plenty of
barriers still need to be dismantled to
enable the full transformation.
Steve Hodgson
Contributing Editor
Steve Hodgson
1309cospp_6 6 9/9/13 11:26 AM
-
Marine Engines & Systems Power Plants Turbomachinery After Sales
Discover the power of MANs gas technology
MAN Diesel & Turbos new dual-fuel engines provide a reliable source of power whenever needed.
They can be activated rapidly, taking just ten minutes from start-up to maximum output.
Because they run on gas, diesel or heavy fuel oil (HFO), you can take advantage of the growing
availability easily
upgraded to dual-fuel engines by our service teams around the world. And you can count on
MAN Diesel & Turbos legendary quality and service.
With tailored solutions based on our range of dual-fuel engines, we have the answer to your power
generation needs. Find out more at
mad-w
ewerbu
bung.
ng.de
de
BLUEFIREENABLESGREATER
FLEXIBILITY
For more information, enter 3 at COSPP.hotims.com
1309cospp_7 7 9/9/13 11:26 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com8
Comment
Given that gridlock in
the US Congress and
on the energy policy
scene in Washington
seems to be a semi-permanent state,
a great deal of the activity has been
shifted to the states that are not as
politically tied in knots.
The energy supply problems
experienced in the Northeast of
the US require immediate action to
make sure that the electric grid is
more resilient in the event another
weather event akin to Hurricane
Sandy should strike the region,
and cannot wait for the gridlock in
Washington to be resolved. Thus,
much of the work on policies and
programmes that can provide a
solution has shifted to these states.
That is why the most recent
meeting of the National Association
of Regulatory Utility Commissioners
(NARUC) was of great interest to
policy makers, as well as those
seeking creative solutions and
actions to the energy policy gridlock.
NARUC brings together energy
regulators from around the US, as well
as representatives from international
regulatory bodies for a dialogue on
the issues of the day. The Summer
Meeting included a great deal of
discussion of subjects relevant to the
decentralized energy community,
such as microgrids, integration of
renewable energy resources and
distributed generation.
Of particular interest was a
discussion on the Implications of
Distributed Energy Resources on
Regulatory Policies that addressed
a report from the Critical Consumer
Issues Forum (CCIF), a group that
brings together state regulators,
consumer advocates and utilities.
As the cost of solar PV has
dropped precipitously and rooftop
installations have soared, this has
given rise to a number of concerns
about the impact on the utility
business model, especially where
these distributed resources are
allowed to be net metered with the
grid. While distributed generation
offers a number of system and
customer benefts, such as
providing a cleaner source of power
generation and a more diversifed
portfolio of generation assets that
can provide greater system reliability
and security, many utilities view this
as a competitive threat. The CCIF
report identifed 21 principles in the
areas of fnancial and regulatory
issues; market development and
deployment issues; consumer issues;
and safety, reliability and system
planning issues. One of the fnancial
and regulatory principles states:
DER incentives should be based
on clear policy objectives and
periodically reevaluated based
on market conditions. Once the
underlying policy objectives are
met or as the technologies become
cost-competitive or cost-prohibitive,
such incentives should be modifed
or discontinued.
The report further clarifes that
incentives include any net metering
arrangement that provides benefts
exceeding the underlying value of
the energy received from that DER.
Interestingly, just days before the
NARUC session, Fitch, which provides
credit ratings and analyses of
utilities, sounded the warning bells
over net metering in a report that
states that the destabilization of the
power markets in Spain from feed-in
tariffs and net metering incentives is
a cautionary tale for the US.
So with existing incentives for
distributed generation under fre from
regulators, consumer advocates,
utilities and rating agencies, the
future of net metering is uncertain,
even though these policies are
proven solutions to creating a more
diverse and robust energy delivery
system that can respond to storms
and other events. CHP systems are
typically either ineligible for net
metering or severely restricted in
how they may participate. If we want
to be ready for the next Hurricane
Sandy, the states would be wiser to
consider how to expand incentives
so that all distributed resources can
participate, rather than engage in a
dialogue on their demise.
David Sweet
Executive Director, WADE
David Sweet
Gridlock and the grid
1309cospp_8 8 9/9/13 11:26 AM
-
CAT, CATERPILLAR, their respective logos, Caterpillar Yellow, the Power Edge trade dress, as well as
corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
2013 Caterpillar. All Rights Reserved.
With Cat Gas Power Systems
Visit us at catgaspower.com
Heavy drought conditions in rapidly growing So Paulo, Brazil, required that the citys
supplier, chose a Cat combined heat and power system to meet the energy demands of So
Paulos corporate towers while recovering waste engine heat to cool the very buildings
they power. Our generator sets provide non-stop electrical energy with two times the
function theyre reliable in power, sustainable in design.
GAS-FUELED PRODUCTS. PEOPLE-FUELED SUPPORT.
For more information, enter 4 at COSPP.hotims.com
1309cospp_9 9 9/9/13 11:26 AM
-
News
Send your news to Cogeneration and On-Site Power Production: e-mail: [email protected]
News
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com10
The UKs frst carbon neutral
laboratory is to be built at
the University of Nottingham
in England and is set to cost
around $24m.
A project team including
contractor Morgan Sindall and
project manager Gleeds will
start construction of the 4500
sq m facility this autumn and
the laboratory is to powered by
renewable sources including
solar power and sustainable
biomass.
The GlaxoSmithKline Carbon
Neutral Laboratory of Sustain-
able Chemistry will provide
chemistry laboratory facilities
for 100 researchers and is be-
ing part-funded by GlaxoSmith-
Kline. It is expected that the
laboratory will become carbon
neutral after 25 years of opera-
tion.
The university claims that
excess energy created by the
building will provide enough
carbon credits over 25 years to
pay back the carbon used in
its construction.
UKS FIRST CARBON NEUTRAL LABORATORY ANNOUNCED
A research report by the
American Council for an
Energy Effcient Economy
states that utilities could
reap substantial benefts
by investing in and encour-
aging new combined heat
and power systems.
It says the major benefts
CHP offers to utilities include
cost-effectiveness, fast de-
ployment, and loss avoid-
ance and reduced strain on
transmission and distribu-
tion systems.
The report states that
policy and regulatory
changes that would allow
or encourage utilities to take
advantage of these ben-
efts include establishing an
energy effciency resource
standard or other portfolio
standard that prioritizes CHP
as a critical resource, and
allowing utilities to earn cost
recovery and economic re-
turns on investments in CHP,
as allowed for other genera-
tion resources.
The report also advises
encouragement of utili-
ties to offer dedicated CHP
programmes within overall
energy effciency program-
ming, and offering perfor-
mance incentives for excep-
tional effciency results.
Report urges utilities to invest in CHP technology
GE, Nexterra and the University
of British Columbia (UBC) have
combined to produce the frst
renewable waste combined
heat and power system in
North America.
The system involves taking
wood fuel and converting it to
synthetic gas, which is burned
to produce heat. GE asked
Nexterra to produce a syngas
that burns cleanly enough
to fuel its Jenbacher high-
effciency internal combustion
engines, and that is the core
process at the centre of the
facility.
Combining Nexterras
proprietary gasifcation and
syngas conditioning process
with the Jenbacher creates a
system capable of producing
both heat and electricity.
Nexterra spent four years
at its facility in Kamloops
developing a way to crack tars
from syngas. After more than
5000 hours of successful small-
scale trials, GE and Nexterra
approached UBC to host a
larger demonstration project.
Dubbed the Bioenergy
Research and Demonstration
Facility, the equipment is
housed in a solid wood
building on UBCs Vancouver
campus. Fuelled by renewable
syngas, the Jenbacher can
generate 2 MW of electricity
and 3 MW of thermal energy,
enough to displace up to
12% of UBCs natural gas
consumption.
Once the system logs
more runtime, GE said that
it will begin promoting
the cogeneration system
worldwide.
GE is now working with
Nexterra to explore the use of
syngas from other renewable
sources, such as biosolids from
sewage treatment plants, to
fuel the Jenbacher.
GE IN INNOVATIVE PARTNERSHIP IN VANCOUVER
A new accident and
emergency department is to
be facilitated with on-site and
combined heat and power
technology.
Balfour Beatty Engineering
Services has signed a 14m
($21m) contract with North
West London Hospitals NHS
Trust to construct the facility in
Harrow.
The building has been
designed to be highly
sustainable and features
such as a rooftop bio-diversity
garden and an array of power
providing photo-voltaic cells,
in tandem with the combined
heat and power unit.
The building work is due to
be completed next April.
LONDON HOSPITAL DEPARTMENT TO BE POWERED ON-SITE
1309cospp_10 10 9/9/13 11:26 AM
-
News
www.cospp.com Cogeneration & OnSite Power Production | September-October 2013 11
Mitigate Arc-Flash Hazards
When Safety Matters
Learn more about arc- ash solutions at
www.selinc.com/mcc.
SEL-849 Motor
Management Relay
SEL-751A Feeder
Protection Relay
Arc-Flash Detector
Manufacturing engineers and maintenance staff
strive to achieve the highest level of safety while
increasing productivity. The possibility of an arc- ash
event occurring inside of switchgear or motor control
centers (MCCs) is a constant concern.
Protect your personnel and equipment with the new
SEL-849 Motor Management Relay and SEL-751A
Feeder Protection Relay. Innovative arc- ash detec-
tion with combined light and current sensing achieves
industry-leading reaction times and eliminates false
trips.
With SELs ten-year, no-questions-asked warranty and
products made in the U.S.A., you can depend on us
to maximize uptime while keeping your most valued
assets safe.
For more information, enter 5 at COSPP.hotims.com
As part of the drive for
greater energy effciency,
Saudi Aramco has signed
three new energy conversion
agreements with a Japanese-
Saudi consortium to build and
operate cogeneration power
plants in the kingdom.
The agreements for the
cogeneration plants were
signed with Marubeni Corp.
and JGC Corp. of Japan
and Saudi Aljomaih Energy &
Water Co.
The plants will generate
a total of 900 MW of power
and 1500 tonnes of steam per
hour when they commence
operation in 2016 at the
companys facilities at Abqaiq,
Hawiya and Ras Tanura
(pictured right).
Aramco did not disclose
the value of the deals but
said it would hold a 50%
stake in the plants, which will
have a thermal effciency of
more than 80%, compared
with conventional generation
thermal effciency of 40-50%.
JAPANESE-SAUDI CONSORTIUM TO BUILD COGEN PLANTS
Siemens has won an order to
deliver eight SGT-800 industrial
gas turbines to supply heat
and power for the $20bn Yamal
liqufed natural gas production
plant in Siberia.
Located onshore, the Yamal
cogeneration plant will power
the giant LNG project, which
develops and liquefes the
abundant wet gas ressouces
of the Yamal-Nenets regional.
The order was placed by
Technopromexport (TPE), a
Russian engineering company
wholly-owned by Rostec State
Corporation. TPE had previously
won an EPC contract in a
competitive tender process
to build the Yamal LNG power
plant with an electric capacity
of 376 MW, reports Gas to Power
Journal.
Siemens scope of
supply includes the design,
manufacture, factory testing,
delivery, installation and
commissioning of eight SGT-
800 industrial gas turbines, four
of which equipped with waste
head recovery units, and nine
additional step-up transformers.
SIEMENS SECURES DEAL TO EQUIP SIBERIAN LNG PROJECT
1309cospp_11 11 9/9/13 11:26 AM
-
News
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com12
Trans Gulf has emerged from
a rigorous process to win the
contract to develop Empowers
new district cooling (DC) plant
at the Business Bay complex
(pictured) in Dubai, UAE.
Construction Weekly reports
senior vice-president of
projects at the company, S.G.
Thiyagarajan, as saying that
the process was very tough.
Trans Gulf was chosen
ahead of several major MEP
contractors as its experience
in developing other local DC
plants proving vital to securing
the $42m contract.
Trans Gulfs experience
in district cooling plants
includes the operation and
maintenance of Business
Bays District Cooling Plant
2 and Dubai Health Care
Citys DCP, as well as the
reticulation works, operation
and maintenance of Business
Bays District Cooling Plant 3.
The project will involve the
construction of one building
with a built-up area of almost
9,500m and will have a total
capacity of 43,750 refrigeration
tonnes (RT).
The facility will be the frst
district cooling plant in the
region to be built in line with
green building principles,
and to follow the guidelines of
treated sewage effuent and
thermal energy storage.
The project is expected to
be completed in mid-2014.
The 2013 DOE Western
Regional Dialogue Meeting on
Industrial Energy Effciency and
Combined Heat and Power will
take place in Salt Lake City, in
the US, on October 29.
This one-day dialogue
meeting will focus on the
potential for increased
industrial energy effciency in
the region.
It will also push for successful
industrial and CHP policy
approaches, innovative policy
options, and opportunities to
work together to achieve the
many benefts of industrial
energy effciency and CHP.
The meeting builds on the
August 30, 2012, Executive
Order: Accelerating Investment
in Industrial Energy Effciency,
which sets a goal of 40 GW of
new, cost-effective industrial
CHP in the US by 2020.
It also calls for developing
and implementing state
best practice policies and
investment models that
address the multiple barriers
to industrial energy effciency
and CHP.
The European Investment
Bank (EIB) has issued the
largest ever climate bond in
the European Union.
The $857m (650m) funds
from the Climate Awareness
Bond are earmarked for
projects within the felds of
renewable energy and energy
effciency.
These include wind,
hydropower, wave, tidal, solar
and geothermal projects and
effciency schemes such as
district heating, cogeneration,
building insulation, energy
loss reduction in transmission
and distribution, and
equipment replacement with
signifcant energy effciency
improvements. The bank said
the bond generated strong
demand among a series of
investors genuinely interested
in the socially responsible
features of the transaction,
adding new investors to EIBs
distribution, particularly in the
Benelux, Germany and France,
which accounted for around
80% of fnal allocations.
Asset managers, insurance
companies and pension
funds provided more than half
of distribution by investor type.
The European Union and
the EIB have both made
climate change mitigation
and adaptation a top policy
priority.
Weltec Biopower has won
its frst contract in Belgium,
having been requested by
NPG Energy to set up a biogas
combined heat and power
plant in the Limburg region.
The 2.4-MW plant will power
around 5000 households and
is set to go live in spring 2014.
The 19 GWh that will be
generated every year will be
consumed by the Spin-group
BV, which needs the electricity
for its production facilities
in which special carpet
yarns are manufactured in a
demanding polymerisation
process.
The plant concept ensures
effciency in all areas. The
generated heat will be utilised
directly on site: the digestate
will be extracted directly from
the 2000m3 second-stage-
digester in order to be dried
with the entire heat produced
by the plant and the dry
fertiliser will then be sold to fruit
and winegrowers across the
border.
A highly effcient mix from
grease separators and a pre-
mixed, ready-to-use substrate
will account for another major
portion of the input. Apart from
plant residue, this mix will also
contain fats and vegetable
waste. Additionally, the two
bioreactors of a capacity of
4700m3 each will be fed with
soap water from biodiesel
production and cereals prune.
This substrate mix is typical
for Belgium, where biogas
digesters have always been
charged with diverse mixtures.
WINNING BIDDER ANNOUNCED FOR DUBAI DISTRICT COOLING PLANT
EVENT CALLS FOR CHP POLICY PUSH EUROPEAN BANK SEEKS TO PROMOTE EFFICIENCY WITH $857M BOND
BIOGAS CHP DEAL MARKS WELTECS FIRST CONTRACT IN BELGIUM
1309cospp_12 12 9/9/13 11:26 AM
-
News
For more information, enter 6 at COSPP.hotims.com
SOFT START ...
... STRONG PERFORMANCE.
SIPOS 5
THE INTELLIGENT ACTUATOR
Combining soft start technology with precise control and power, the SIPOS 5 effectively operates your valve into and out of the end position. The best way to protect your valve and to extend its durability. Your benets: low maintenance and reduced life cycle costs.
SIPOS 5 for long-term, no compromise solutions.
Leading in intelligent actuation
hammer / cavitation
control
SIPOS Aktorik GmbH
Im Erlet 2 .. Germany www.sipos.de
Email: [email protected]
Phone: +49 9187 9227-0
Fax: +49 9187 9227-5111
The Shanghai Tower, which
will be Chinas tallest building
when fnally completed next
year, is using on-site power and
cogeneration to power its vast
operation.
Topping out ceremonies
were held this month to mark
the completion of the core
structure of the tower, when the
last beam was placed on top
of the 632-metre (2073-foot)
building designed by global
design and architecture frm
Gensler.
Wind turbines located
directly beneath the parapet
generate on-site power for the
upper foors of the building,
with a 2130kW natural gas-fred
cogeneration system on site
providing electricity and heat
energy to the lower foors.
Meanwhile, the towers
outer skin insulates the
building, reducing energy
use for heating and cooling.
The towers spiralling parapet
collects rainwater, which is
used for the towers heating
and air conditioning systems.
Overall, the $2.2bn Shanghai
Towers sustainable strategies
will reduce the buildings
carbon footprint by 34 000
metric tonnes per year.
CHINAS TALLEST BUILDING REACHES
DIZZY ENERGY EFFICIENCY HEIGHTS
The New York Hilton has
completed a new green
roof system and installed a
cogeneration system, both
designed to reduce the hotels
overall carbon footprint.
The 16 000-square-foot
green roof system was installed
by Xero Flor America and is
located on the hotels ffth
foor rooftop setback on the
buildings West 53rd Street side.
The system represents a major
investment by Hilton New York
to beneft efforts in carbon
capture, energy conservation,
and reduction of the Urban
Heat Island effect.
The installation of a highly-
effcient, environmentally-
friendly cogeneration system
also situated on the hotels ffth
foor roof setback, will provide
in excess of 50% of the hotels
electrical power and over
40% of its steam consumption
for heating and hot water
requirements.
As the largest hotel in New
York City with 1981 rooms, Hilton
New York consumes over 23
million kW hours of electricity
per year.
MANHATTANS LARGEST HOTEL
COMPLETES COGEN INSTALLATION
1309cospp_13 13 9/9/13 11:26 AM
-
News
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com14
Fortum has inaugurated the
largest biomass combined
heat and power plant in Latvia.
The plant is located in
Jelgava and will generate an
electrical capacity of 23 MW
and heat capacity 45 MW.
The inauguration ceremony
will be attended by the
Presidents of both Latvia and
Finland, and the Ambassador
of Finland to Latvia.
The plant is to use wood
chips as fuel and will provide
up to 85% of Jelgavas district
heating capacity.
Meanwhile, French
engineering giant Alstom is to
supply fue gas cleaning and
a heat recovery system at the
new $158m Tekniska Verkin
waste-to-energy cogeneration
plant in Sweden.
The CHP plant is to be run
by the state-owned waste
management and biogas
producer in the city of Linkping,
Sweden and is set to generate
80MW of power.
Alstoms fue gas cleaning
system is being used to achieve
EU level emissions.
The system includes an
Alstom NID semi-dry cleaning
step that injects lime and
activated carbon to clean fue
gas. The fue gas then goes
through a scrubber to remove
more emissions and recover
heat.
The other suppliers on the
new power plant are Fincantieri
Cantieri Navali Italiani, which will
supply the turbine, and German
Fisia Babcock Environment,
supplying the boiler. The
new plant is to be ready for
commissioning in 2016.
FORTUM INAUGURATES LATVIAS
LARGEST BIOMASS PLANT
Bharathi Indian Polar Station,
the scientifc research facility
located in the Antarctic Circle,
is being powered by combined
heat and power technology
since becoming operational
last year.
The facility (pictured), which
is comprised of shipping
containers, uses three
combined heat and power
units, fueled by kerosene, to
generate heat and power.
Commissioned by Indias
National Center For Antarctic
And Ocean Research and
designed by Hamburg-based
BOF Architekten, the new
station is located Larsmann Hills
section of northeast Antarctica.
The treaty that governs
international research stations
on the continent stipulate
that the structure must have
the ability to be completely
disassembled and removed
from the frigid landscape
without leaving a trace, so the
designers immediate turned
to shipping containers as
their building medium, reports
EarthTechling.
Built on stilts, the Bharathi
Polar Station has three foors,
comprised of 134 shipping
containers. The containers,
which were prefabricated in
Germany, are interlocked and
covered by an insulated skin
and outer shell.
Inside the facility are 24
single and double rooms, a
kitchen, dining room, library,
ftness room, offces, lounge,
and an operating theatre
along with laboratories, storage
areas, assorted technical
spaces, and a workshop.
Nippon Paper Industries
USAs expanded biomass
cogeneration plant is fnally
set to go online in October in
Washington State.
The plant will create steam
to make paper and generate
20 MW of electricity for the mill
and for sale.
That includes hydraulic
equipment, valves, fuel lines
and a snakelike mass of
external piping that carries
water, steam and air between
the boiler and the mill.
Main components include a
30-foot cooling tower, 110-foot
boiler and a 115-foot cone-
shaped wood-waste-fuel silo.
Also being tested is a truck
dump that lifts vehicles flled
with biomass high in the air
tractor, trailer and all and
dumps the wood waste out the
back.
The project has survived
appeals before the state
Shoreline Hearings Board and
Thurston County Superior Court
that began before construction
commenced in June 2011.
Opponents have been
concerned about air pollution,
though the company has
maintained and the Olympic
Region Clean Air Agency has
agreed that Nippon has
fulflled all state and federal
pollution-control laws.
The cost of the new plant
originally was estimated at
$71m but it rose to $85m due to
higher-than-expected costs for
the cooling tower and redesign
of the fuel silo and foundation.
INDIAS ANTARCTIC POLAR STATION
POWERED BY THREE CHP UNITS
DATE SET FOR NIPPON BIOMASS PLANT TO GO OPERATIONAL
1309cospp_14 14 9/9/13 11:26 AM
-
News
For more information, enter 8 at COSPP.hotims.com For more information, enter 7 at COSPP.hotims.com
ARE STRAY ELECTRICALCURRENTS DESTROYING
YOUR MACHINERY?
www.tedomengines.com, [email protected], +420 483 363 642
Power range: 80 - 210 kW
Fuels: NG, Biogas, LPG,
Diesel, Biodiesel and others
ENGINES AND GENERATOR SETS
Reliable heart for your
cogeneration unit
The Mexican government
has unveiled a bill that would
open up more opportunities for
cogeneration to fourish in the
country.
While the bill is mainly
concerned with changing the
Mexican constitution to let it
partner with private companies
to fnd and produce oil and
gas in a country, it also seeks
to liberalise Mexicos electricity
sector by allowing private frms
to produce and sell electricity
to consumers.
A third of Mexicos electricity
is generated by private frms
under a cogeneration plan
where they produce power
for themselves and sell the
extra to the state electric
utility.
If the legislation passes it
will continue to encourage an
environment where combined
heat and power can grow.
The move would end the
monopoly of the Federal
Electricity Commission, poten-
tially lowering electricity prices
for companies and residents.
The bill now goes to Mexicos
congress.
The conservative opposition
has said it would support the
proposals, giving Pea Nietos
Institutional Revolutionary Party
the two-thirds majority it will
need to pass the constitutional
changes.
NEW MEXICAN LEGISLATION COULD OPEN UP FRESH COGEN OPPORTUNITIES
Rhode Island-based Toray
Plastics in the US is to build a
$22.7m cogen system at its
Kingstown campus (pictured).
Toray is keen to avoid
the damage caused by
disruptive weather events and
associated power outages.
Toray already operates a
cogeneration system that
supplies continuous power
to its Lumirror polyester flm
division, which sustains
manufacturing production
even during severe weather
events and enables the frm
to provide uninterrupted
customer service.
The new system is expected
to be operational by March
next year. It will be dedicated
to powering production on-site
for the Torayfan polypropylene
flm division and other sites
around the property.
The companys decision
to build a new cogeneration
unit is supported by the
Rhode Island Public Utilities
Commission and National
Grid, which supplies 100%
of the electricity distributed
to Toray beyond Torays own
cogenerated electricity.
US PLASTIC MANUFACTURER TORAY TO UTILISE CHP AT CAMPUS
1309cospp_15 15 9/9/13 11:26 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com16
ASEANs decentralized energy sector
The impetus behind decentralized energy development in the ASEAN
region is gathering pace. Elisa Wood looks at the many opportunities
that exist, counterbalanced by the challenges that remain.
Building on-site generation
in ASEAN
Distributed generation can help to serve remote locations in ASEAN where fuel delivery is diffcult Credit: Iris Scherer
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com16
Launch and learn:
1309cospp_16 16 9/9/13 11:26 AM
-
www.cospp.com Cogeneration & OnSite Power Production | September-October 2013 17
ASEANs decentralized energy sector
A launch and
learn strategy is
not the kind Chip
Bottone favours
when he participates in
an energy project in a
new country. The CEO of
US-based FuelCell Energy
would rather understand the
market before venturing into
untried territory. He would
prefer learn and launch.
But he knew this would be
impossible in Indonesia, a
member of the Association
of Southeast Asian Nations
(ASEAN). These countries
Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar,
the Philippines, Singapore,
Thailand and Vietnam
can be the land of both
opportunity and frustration for
international decentralized
energy companies. Doing
business here often requires
a pioneering spirit and a
measure of patience. So what
drew Bottone to Indonesia?
What we saw in Indonesia
was a fairly big population
150 million people. They had
inadequate infrastructure in
terms of electricity. They had
a growing middle class. They
did have natural resources, he
says. But Bottone adds, They
also had lot of things that are
not helpful, like corruption and
disorganization.
With long-time South Korean
partner POSCO Energy, FuelCell
Energy launched its Indonesia
project in 2011, as the frst
commercial stationary fuel cell
power plant in Southeast Asia
outside of South Korea. The
partners chose a highly visible
location to create a showcase
project that would capture
attention Ancol Dreamland,
a waterpark resort and major
tourist destination in Jakarta.
Two years later the 300 kW
combined heat and power
(CHP) plant is still not in
operation, at the time of the
writing of this article, but is in
the fnal construction phase.
Bottone estimates the same
project would take six to nine
months to complete in the US.
Still the partners
accomplished their goal: It
was meant to demonstrate
how to interconnect to the grid,
what the economics are, what
all the approval processes
are, what all the permitting
processes are because they
dont have established policy
as other more developed
countries have, he says.
Welcome to the ASEAN
countries where the potential
for decentralized energy is
vast but not easy to capture
because of bureaucracy, lack
of clear rules, and sometimes
a dearth of infrastructure and
skilled workers.
Growing demand and
blackouts
Decentralized energy or
distributed generation,
particularly from clean
energy, remains a nascent
undertaking in much of the
region.
On-site generation or
distributed generation is not
commonly implemented in
ASEAN member countries,
which still focus on centralized
generation, says Beni Suryadi,
energy policy analyst at the
ASEAN Centre for Energy.
But there is no question that
the region could beneft from
more on-site power. Anywhere
there are transmission and
distribution grid inadequacies
market opportunities for
distributed generation open
up. And the ASEAN countries
have their share of grid
inadequacies.
Consider, for example, May
2013. Forty per cent of Luzon
Island in the Philippines lost
power, including metropolitan
Manila, because of power
plant failures. Thailand
experienced its largest
blackout on record in its 14
southern provinces following
a lightning strike, and Vietnam
saw a 10-hour blackout in
22 provinces, including Ho
Chi Minh City because of
damage to a transmission line,
according to press reports.
Such events are not unusual
because the countries have
not updated or expanded
their power infrastructure
quickly enough. The result is
a tremendous amount of
brownouts and blackouts and
tremendous loss of quality of
power, says Sridhar Samudrala,
an assistant professor at SUNY
Delhi USA and president &
CEO of International Energy
Consulting Co.
Meanwhile, the population
and economies are expanding
and demanding more energy;
some areas are becoming
electrifed for the frst time.
ASEAN is the fourth most
populated block in the world
behind China, India and the
European Union. Its middle
class is growing, and expected
to become 65% of the total
population by 2030, up from
only 24% in 2010, according
to a report by Dubai-based
investment frm, the Abraaj
Group, which invests in
emerging economies.
Further, the report says, its
population is young and will
increasingly demand more
consumer goods. The region
already has healthy growth
in gross domestic product:
5.7% for 2012 and a predicted
5.5% for 2013, according to
the International Monetary
Fund.
All of these changes
and growth require more
electrifcation. And in some
areas, demand is dramatically
outstripping supply. For
example, in Myanmar about
75% of the population is still
without access to electricity,
and the government says
that supply is only about
half of projected demand,
according to a report
Electricity in Myanmar:
The Missing Prerequisite for
Development, by the Harvard
Kennedy School Ash Center for
Democratic Governance and
Innovation and the Rajawali
Foundation Institute for Asia.
So with blackouts rampant
and central grids slow to
improve, it is no surprise
that decentralized energy is
growing at what Samudrala
described as an exponential
pace.
The current grid is unable
to expand at the level of
growth in the ASEAN countries
and therefore the industrial,
commercial, and residential
customers are opting for small-
scale generation and creating
mini grids, he says.
Coal use to grow
Electric reliability is one reason
for the ASEAN countries to
pursue advanced distributed
generation; environmental
concerns are another.
Fossil fuels account for 74%
of the regions generation,
and about 22% comes from
combustible biomass and
waste that is ineffcient and
environmentally unsustainable,
Distributed generation is not
commonly implemented in ASEAN
member countries, which still focus
on centralized generation. But
there is no question that the
region could beneft from more
on-site power
1309cospp_17 17 9/9/13 11:27 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com18
ASEANs decentralized energy sector
according to research by
Melissa Low, energy analyst
at the National University of
Singapores Energy Studies
Institute.
Demand for coal has grown
fastest over the last decade in
Malaysia. Indonesia, Thailand
and Vietnam also are large
coal consumers, according
to the US Energy Information
Administrations (EIA)
International Outlook 2013.
The coming years are
expected to bring even more
use of coal in the ASEAN
countries, even as developed
nations like the US begin to
curb its use. The EIA forecasts
an annual increase in coal
consumption of 2.4%. Several
new, large coal-fred plants, of
at least 1 GW, are coming on
line, particularly in Malaysia,
Indonesia and Vietnam. In
Vietnam alone, 36 GW of coal-
fred generation is expected
to be installed by 2020 and
76 GW by 2030.
Another fossil fuel important
to the region is diesel.
The region relies on diesel
generators to overcome its
reliability problems. However,
this option can be expensive.
For example, in Myanmar
diesel prices were about
$1/litre in early 2012, which
is the equivalent of $0.30 to
$0.35/kWh or fve or six times
the average price charged
by the government utility for
electricity, according to the
HarvardRajawali report.
While diesel can be
expensive, it is also important
to the region because it
can mean the difference in
ASEAN countries between
power or no power, and brings
signifcant changes in quality
of life and business operations,
particularly in remote outposts.
For countries like Myanmar
and Cambodia and remote
Indonesia this option is still on
the table, Suryadi says. He adds
that great effort is being made
to install renewable energy as
a substitute, but capital costs
and lack of infrastructure
remain as barriers.
In a case study, MTU Onsite
Energy describes better
schooling for children and
a rise in small businesses
installation in the Indonesian
city of Fakfak, following
installation of its MTU Series
1600 engines. Fakfak, which
has a population of 69,000
people, is separated from
other communities by poorly
maintained mountain roads,
had relied on power from
neighbouring towns, which
meant blackouts were the
norm. The local MTU generators
now maintain Fakfaks
2.4 MWh peak demand.
Countries like Vietnam,
Lao PDR, India, Myanmar,
Philippines, Pakistan and others
generate a lot of electricity from
diesel, as the grid is unreliable.
The private sector companies
simply cannot rely on the grid
and they are converting to
alternative and renewable
energy as an option to offset
the diesel energy prices,
confrms Samudrala
Renewable goals
Indeed, several of the countries
have set renewable energy
goals. Thailand, which has
the most advanced energy
infrastructure in the region,
recently announced a new
renewable energy goal to
build 3000 MW of solar by 2021.
The country expects feed-in
tariffs (FITs) for distributed
solar to spur about 1000 MW
of new development. The FIT
is designed to attract 200 MW
of rooftop solar by the end
of this year and 800 MW of
community ground-mounted
solar by the end of 2014.
Thailand has a goal to
expand its renewable energy
from 6.3 GW in 2011 to
20.5 GW, so that renewables
make up 29% of total
generating capacity by 2030.
Hydroelectricity now accounts
for about 5% of generation, and
non-hydroelectric renewables
(mostly biomass and biogas)
2%, according to the EIA.
Thailand is the furthest
along among the ASEAN
when it comes to introducing
on-site generation, according
to Suryadi.
Its progress stems back to
the governments introduction
of the Small Power Producer
(SPP) programme in 1992, and
Very Small Power Producer
(VSPP) programme in 2001.
Under the programmes,
the state-owned Electricity
Generation Authority of
Thailand (Egat) was required
to purchase power from small
cogeneration or renewable
projects. Most of the resulting
projects were developed by
local companies to fulfl their
own energy needs.
Looking forward, Thailand
plans to continue to add
more CHP. From 2012 to 2019,
the government forecasts
that Thailand will add about
5100 MW of cogeneration,
with an additional 1368 MW
from 2020 to 2030, according
to Smart/Intelligent Grid
Systems Development and
Deployment, authored by
Samudrala and published
by the World Alliance for
Thai Decentralized Energy
Association.
In the Philippines, the
countrys Energy Regulatory
Commission (ERC) in July
issued new net metering
rules for on-site renewable
installations not exceeding
100 kW. And last year the ERC
approved a FIT for several
renewable energy resources,
including run-of-river hydro,
biomass, wind, and solar. The
fnal solar FIT of 9.69 PhP/kWh
($0.22/kWh) was far lower
than the originally proposed
17.95 PhP/kWh. ERC adjusted
the rate to account for
falling solar panel prices. The
government plans to review
the FIT rates in three years or
when the nation meets the
Department of Energys goals.
The Philippines is striving for
100% renewable generation
within a decade and hopes
to triple its renewable capacity
by 2030; it already gets more
than 50% of its electric supply
from geothermal, biomass and
hydro. The Philippines is the
second largest geothermal
generator, behind the US.
Indonesia, which has
about 43.5 GW of installed
capacity, gets about half of
its power from coal. Nine per
cent of its generation comes
A 300 kW CHP plant will help power Indonesias Ancol Dreamland resort
1309cospp_18 18 9/9/13 11:27 AM
-
www.hitachi-power.com
Intelligent Power Generation Solutions
Hitachi Power Europe supplies up-to-date, efficient
products. We construct and renew power plants.
We deal in condition-based maintenance. Our green
technologies in energy storage and biomass,
for instance are examples of our innovation and
reliability. Intelligent power generation solutions
require know-how and experience. We have them both.
And that has been the case now for over 100 years.
Know-how
needs experience
VGB Congress Power Plants 2013
25 27 September 2013,
Maastricht, Netherlands
Hitachi Power Europe GmbH
Visit us at our stand
For more information, enter 9 at COSPP.hotims.com
1309cospp_19 19 9/9/13 11:27 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com20
ASEANs decentralized energy sector
from hydroelectricity and 5%
from geothermal, putting it
third place worldwide for that
resource. About 70% of the
population has access to
electricity; the government
hopes to expand access to
80% by 2014 and 90% of the
population by 2020.
Indonesia has set up a fast-
track for power generation
development, which includes
10 GW to be completed by 2014
of clean energy sources, such
as natural gas, geothermal
and other renewable energies.
The country also has a FIT for
renewables that offers 15-year
contracts.
Distributed generation can
serve Indonesia in remote
locations where fuel delivery
is diffcult, according to a
report, Distributed Generation:
Indonesia View Point and
Case, by the Coordinating
Ministry of Economic Affairs.
The ministry also points to
non-intermittent decentralized
energy such as small hydro
as way to avert line losses and
improve voltage regulation
and grid stability. Indonesia
already has about 20 mini-
hydro stations in operation,
totalling about 44 kW, and
over 700 kW in various stages
of development. The country
also is pressing forward with
an aggressive concentrating
solar initiative.
The Future
While many of the countries
have renewable energy goals
that can help spur distributed
generation, it remains to be
seen if they can translate
goals into reality. All of these
countries have excellent
renewable energy goals on
paper, Samudrala says.
ASEAN countries are trying
to better their overall power
sector by creating a regional
power grid across member
countries. The goal is to
improve energy supplies so
that the countries can both
meet growing demand and
promote cleaner energy.
Suryadi agrees that the
spirit of the region favours
regional integration as the best
way to cope with its various
energy problems. This does
not mean that the region will
operate as one power entity,
but it is likely to consolidate into
sub-regions to pool indigenous
energy resources.
For example, the Mekong
Area, (Thailand, Cambodia,
Myanmar, Vietnam, Lao PDR)
are now working together to
develop large hydroelectricity,
he adds.
The spirit of energy market
integration will defnitely boost
the installation of on-site
generation in the region, he
says. A more open power
trade regime in the region will
encourage the development
of renewable sources such as
solar, hydro and wind for power
generation through on-site
generation. And hence the
total cost of meeting region-
wide electricity demand will
be reduced.
But Suryadi is not saying
it will be easy. The market
integration in the region
remains a challenging task,
especially to deal with the fast
growth of electricity demand in
all ASEAN member countries.
FuelCell Energys Bottone
sees problems as well. The
good news is that there is
probably demand in those
countries. The bad news is they
are not organized for it yet.
FuelCell Energy, which
manufactures more than
50 MW of fuel cells per year
at its Torrington, Connecticut
plant in the US, has continued
to expand its infuence in Asia.
The company in late 2012
executed a series of strategic
initiatives with POSCO Energy,
including a license agreement
under which POSCO will
manufacture the companys
complete carbonate fuel cell
technology in South Korea and
sell them throughout Asia.
POSCO Energy, Koreas
largest independent
power producer, intends to
produce 140 MW of fuel cell
components annually. The
company expects to begin
manufacturing in early 2015.
But would Bottone tackle
another launch and learn in
the ASEAN region if he had it
to all over again? Yes, he says,
that is the only way policy and
standards will improve and the
regions markets grow. These
Southeast Asian countries
have a need for a renewable
distributed energy strategy,
there is no question. The
question is when.
Elisa Wood is a US-based
freelance writer, who
specializes in energy matters.
This article is available
on line. Please visit
www.cospp.com
21% Coal
71% Natural gas
1% Oil
5% Hydro
2% Other renewables
Thailands electricity generation profle, 2011 The Philippines electricity generation profle, 2011
28% Coal
41.4% Geothermal
15% Natural Gas
3% Fuel Oil
11.4% Hydro
3% Fuel Oil
Several of the countries have set
renewable energy goals. Thailand,
which has the most advanced
energy infrastructure, recently
announced a new renewable
energy goal to build 3000 MW
of solar by 2021
1309cospp_20 20 9/9/13 11:27 AM
-
For more information, enter 10 at COSPP.hotims.com
Customer: Petrochemical plant, Malaysia.
Challenge: Catastrophic failure of a turbine-driven pump.
Result: Elliott shipped a replacement turbine in three weeks to restore production.
C O M P R E S S O R S T U R B I N E S G L O B A L S E R V I C E
EBARA CORPORATIONwww.elliott-turbo.com
They turned to Elliott
when there was no time to lose.The customer turned to Elliott because our resources are global and our response is local. Who will you turn to?
The world turns to Elliott.
1309cospp_21 21 9/9/13 11:27 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com22
In the early 1990s,
Power for a changing
world was a well-known
marketing slogan
used by Wrtsil Power
Plants. Today that slogan
is even more appropriate,
especially in Europe, with
new renewable power
generation, such as wind
and solar, now a signifcant
part of the energy market.
The notable impact of
renewable production
changes many operational
set-ups, and presents new
challenges for the energy
industry. At the same time,
the European Commission
and European Parliament
have set, and will set forth,
energy strategies up to 2020
and 2050 that, in addition to
the use of renewable energy,
focus very much on carbon-
free, environmentally-friendly
power generation, and on
the effcient utilization of
primary fuels. This will involve
a major restructuring of the
conservative European energy
industry and market.
The work around these EU
strategies aims also to give a
well-defned framework, with
harmonized common rules
and regulations for the industry
to be equally applied in all
Member States, thus providing
the basis for investments and
healthy growth in the industry.
In order to fulfl these strategies,
new innovative solutions and
fexible multi-purpose plants
are needed in a transparent,
free-trade market with, to a
large extent, distributed energy
production.
Denmark is acknowledged
as being a frontrunner in
forming its own energy
laws, and at an early stage
adopted very liberalized rules
and regulations for its energy
industry.
Today, the country scores
very high marks for its amount
of installed renewable and
wind production, as well
as for its very effcient CHP
(combined heat and power)
electricity production, with
plants distributed evenly across
the entire country. Skagen
Varmevrk is a typical Danish
district heating company, with
its heat and power production
based to a large extent on a
gas engine plant using three
Denmark has taken a proactive role in adapting to the changing needs of the energy market. The rest of
Europe can learn from its example writes Anders Ahnger, Bent Iversen and Mikael Frejman.
Skagen Varmevrk successfully manages its heat and power production in Denmarks liberalizedenergy market
CHP and Europes changing energy market
Smart power generation for a changing world
1309cospp_22 22 9/9/13 11:27 AM
-
www.cospp.com Cogeneration & OnSite Power Production | September-October 2013 23
CHP and Europes changing energy market
Wrtsil 28SG generating
sets. This article looks at how
Skagen Varmevrk manages
this plants operations in a
modern liberalized Danish
energy market.
Danish district heating
The very frst district heating
system in Denmark was
established in the city of
Frederiksberg in the early
1900s. This lead was gradually
followed by other cities
across the country, and today
Denmark has more than 500
district heating plants. More
than half of Denmarks energy
consumption for residential
heating is generated by
those district heating plants,
including Skagen Varmevrk.
All Danish district heating
plants are governed by a
district heating law that refects
the present energy policy of
the Danish parliament. These
regulations offer incentives for
energy effciency and, rather
importantly, ensure that the
Treasury Department collects
all the agreed energy taxes.
The law also states that district
heating companies are not
allowed to proft from heat
deliveries to its members.
Skagen Varmevrk began
operations in 1964 with
535 co-operative society
members. The district heat was
generated by a boiler plant
able to operate on fossil and
bio-oils. In 1979, by which time
the number of consumers had
grown to 1050, the municipality
of Skagen commissioned a
waste incineration plant that
was connected to the district
heating system. Fiskernes
Fiskeindustri, a private
company, started the delivery
of waste process heat to the
district heating system in 1982.
Skagen Varmevrk was
connected to the national
gas grid system in 1988,
where a new boiler station,
operating on natural gas
was commissioned. Precisely
ten years later it was time to
commission the fully automatic
combined heat and power
station.
The plant was designed for
automatic mode, enabling
unattended operation outside
normal working hours, when
the command for starting and
stopping the plant is shifted to
the dispatch centre.
Skagen Varmevrk
The company is responsible
for supplying district heating
to the town of Skagen, the
most northern town in Jutland.
In winter, its 8400 inhabitants
enjoy a quiet life with little traffc
and few crowds. However, in the
summertime it is transformed
into a very crowded, and
popular place. This ability to
adapt to the rapid changes in
the surrounding environment
seems also to have become
part of Skagen Varmevrks
business philosophy.
The CHP plant is equipped
with effcient heat recovery
that reaches a total effciency
that exceeds 90%. Even
though the plant is 15 years
old, its performance remains
very good compared to other
modern power plants. The
engines were upgraded a
few years ago to achieve a
higher output and improve
performance.
The plant not only produces
heat for the city and power
for the distribution system
operator, but also actively
participates in the Danish
electricity regulating and
primary reserve/frequency
balancing markets.
To handle these
simultaneous production
requirements effectively, highly
fexible operation, short start-up
and shutdown capability, as
well as operator alertness,
are essential. The plant is,
therefore, equipped with: hot
water boilers operating on
natural gas and prepared for
the possible use of bio-oils and
fuel oils; an electrical hot water
boiler operating in parallel
with the gas engines; and
of course with heat storage
or an accumulator. All these
units allow very fexible and
environmentally-sustainable
production.
In addition to its own
production, a municipal waste
incineration plant and a
nearby industry are delivering
heat to the common Skagen
district heating network. The
waste incineration plant is
run as a baseload plant and
provides stable year-round
heat production. The heat from
the industrial plant is delivered
on a more occasional basis,
refecting the industrys own
schedules and working hours.
One of the three Wrtsil 28SG generating sets that power the CHP plant
Denmark is acknowledged as
being a frontrunner in forming its
own energy laws, and at an early
stage adopted very liberalized
rules and regulations for its
energy industry
1309cospp_23 23 9/9/13 11:27 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com24
CHP and Europes changing energy market
These two additional heat
sources adequately fulfl the
citys minimum heat demand
during the summer period.
Skagen Varmevrk
maintains its plant in good
condition and constantly
develops its operations to
be more effcient. Danes
in general are very energy
conscious and strive always to
utilize the full energy content of
the primary fuel for production.
There are even governmental
rules on how to continuously
improve CHP plant operations,
as well as for how consumers
can save energy.
Recent investments in
the Skagen plant include
new absorption chillers
installed after the exhaust
gas economizers. These
squeeze out even more
heat from the gas engine
exhaust gases to gain total
plant effciencies reaching
greater than 100%, calculated
on the lower heating value.
Furthermore, the heat
storage capacity has been
drastically increased by an
additional heat accumulator
of 350 MWhth to achieve even
greater fexibility for the plant
on the power markets. The
bigger heat storage capacity
between the heat production
and the district heating
network naturally adds
more operational freedom.
Managing production
Like all district heating
companies, Skagen
Varmevrk delivers heat
according to the demand at
the lowest possible cost. The
required heat production,
therefore, provides the
framework within which
electricity can be produced, for
participating in the regulating
and primary reserve markets.
Thus, production planning
demands a good knowledge
of the plants capabilities, as
well as good forecasting of
market behaviour.
All the above mentioned
production units are jointly
utilized in an optimal way,
based upon their specifc
operational characteristics
and upon market conditions
and fuctuations. The plant
operates very much on the
day-ahead estimates of
the heat demand, and the
regulating and frequency
balancing markets.
Depending on the balance
between these two electricity
markets, the running strategy
is somewhat different and
involves co-operation with
the dispatch centre for the
area and the other power
producers.
The predicted heat
consumption is fexibly
managed through the heat
accumulators, and provides
the framework as to how the
gas engines could or should
be run. The varying daily
spot prices on the regulating
and reserve markets have,
of course, an impact on the
running philosophy, and the
goal is always to produce
electricity when the spot prices
are high.
When operating in these
two electricity markets, the gas
engine characteristics prove to
be highly valuable. The primary
reserve market demands
fast starts and stops, and the
engines can cope with that.
In the regulating market, the
engines are run at about
7080% load, where again
the gas engines high and
constant part load effciency is
invaluable.
If it is not worthwhile to run
the engines, the corresponding
heat can be produced by
the gas boiler or even with
the electrical boiler, provided
that the electricity spot prices
and the electrical network
balances are favourable.
The 11 MWe electrical boiler
is designed to have a large
operating window, and can
in that way also participate
in the electricity markets as
a load. The excess electricity
from the renewable energy
production can, therefore, also
be dumped into the electrical
boiler and further into the
heat accumulator. Electricity
production is of course closely
coordinated together with
the electricity operator for the
district or area.
The fgure on p.26 is of
a typical production track
record for the heat production
during a full calendar week.
The diagram shows also the
spot prices on the electricity
markets, the regulating and
power reserve markets, heat
demand and production, as
well as the level of stored heat
in the heat accumulator.
The engines are kept warm
and prepared for an unlimited
Skagen Varmevrks equipment and heat sources
3 x 18-cylinder Wrtsil 28 SG 3 x 4.6 MWe / 19.4 MW
th
4 x gas hot water boiler 46 MWth
Electrical hot water boiler 1 x 11 MWth
Heat import from waste incineration plant
6 MWth (max.)
Heat import from industrial plant
6 MWth (max.)
Heat storage capacity/ hot water accumulator
250 MWhth
The former and new hot water storage units behind the power plant
The plant not only produces heat
for the city and power for the
distribution system operator,
but also actively participates in the
Danish electricity regulating and
primary reserve/frequency
balancing markets
1309cospp_24 24 9/9/13 11:27 AM
-
Valve Solutions for the Worlds Most Demanding Applications
Boiler, condensate and main steam systems. Severe service.
District heating. Process control. Steam conditioning. When
it comes to these and many other complex applications, more
OEMs, utility, industrial, and EPC companies are relying on
CIRCOR Power & Process to provide the highly engineered
valves, systems and services they need to keep their facilities
consistently operating at peak efciency.
Contact us today to nd out how we can collaborate to turn
your most difcult application challenges into opportunities
to improve efciencies and performance.
Excellence in steam, water
and gas control. Worldwide.
www.circorpowerprocess.comFor more information, enter 11 at COSPP.hotims.com
1309cospp_25 25 9/9/13 11:27 AM
-
Cogeneration & OnSite Power Production | September-October 2013 www.cospp.com26
CHP and Europes changing energy market
number of daily starts and stops.
Normally though, as indicated in
the diagram, once or twice a
day is enough. The marginal
cost of the plant, in conjunction
with the electricity spot prices
and possible ancillary service,
forms the operation profle.
Electricity spot prices decrease
at night and the engines
are usually stopped. In this
operational mode, the total
yearly running hours of the
engi