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Combined Heat & Power Developments In The U.s. - Featuring Vendor Profiles

Cogeneration (also combined heat and power, CHP) is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat.

Conventional power plants emit the heat created as a by-product of electricity generation into the environment through cooling towers, flue gas, or by other means. CHP or a bottoming cycle captures the by-product heat for domestic or industrial heating purposes, either very close to the plant, or - especially in Scandinavia and Eastern Europe - as hot water for district heating with temperatures ranging from approximately 80 to 130 degrees - C. This is also called decentralized energy.

In the United States, Con Edison distributes 30 billion pounds of 350 degrees F/180 degrees C steam each year through its seven cogeneration plants to 100,000 buildings in Manhattan - the biggest steam district in the world. The peak delivery is 10 million pounds per hour (corresponding to approx. 2.5 GW). This steam distribution system is the reason for the steaming manholes often seen in "gritty" New York based movies.

This report takes a look at the combined heat and power developments in the U.S. and major developers involved in this industry.

Table Of Contents :

Executive Summary 5

Introduction to CHP 6
Overview of CHP 6
History 6
CHP Technology 8
CHP Applications 8
Regulatory Issues 9
CHP and District Energy 10
CHP and District Heating 11

CHP in the US 12
Overview 12
Rising Energy Demand in the US and CHP 12
Changing Climate and CHP 14
Environmental Benefits 14
Economic Benefits of CHP for the US 18
Why the CHP Faces Challenges in the US 19
Required R&D 21
Regulations Favoring CHP 22

CHP Regulatory Framework 25
CHP and Regulations 25
Traditional Regulatory Framework 26
Emerging Regulatory Framework 27
Restructuring of Electricity Grids in the US 30
Restructuring Issues in CHP 31

Use of CHP in the US 39
Food Processing 39
Utilities 39
Industrial Use 40
District Energy Systems 41
Government Usage 42
Commercial and Residential Use 42

Case Study: A Look at Micro-Combined Heat and Power 42
Introduction 43
Program Description 43
Looking at the Micro-CHP System 44
Project Status 44
Commercial Potential 44

Case Study: Microturbine/CHP in the US 45
Introduction 45
Electric Utility Emissions and Microturbines 45
Program Description and Achieved Results 46
Final Outcome 47

Case Studies: States with CHP 48
California 48
Hawaii 49
Minnesota 50
New York 50

Major Developer Profiles 52
Acumentrics 52
Capstone Turbine Corporation 52
Energetix 53
Husky Energy 54
Infinia 55
Marathon Engine Systems 56
Plug Power 56
Veolia Environnement SA 57
Yanmar America Corporation 57

Appendix 59

Figures

Figure 1: Efficiency Advantage in a CHP System 10
Figure 2: Increased Efficiency Results in Reduced Carbon Emissions 14
Figure 3: Cost of CO2 Reduction Technologies 16
Figure 4: US Carbon Dioxide Emissions 2006 and 2030 (MMT) 16
Figure 5: Existing CHP in Hawaii 50
Figure 6: Selected Power Outage Costs 59
Figure 7: Power Reliability Concerns 2009 Projections 59
Figure 8: DG/CHP Opportunity in the US 59
Figure 9: How CHP Saves 60
Figure 10: Estimated CHP Potential: 75 GW 60
Figure 11: CHP Technologies 61
Figure 12: Typical Commercial CHP System 61
Figure 13: CHP Forecast 62
Figure 14: Basic CHP Components 62
Figure 15: Conventional Energy System vs CHP 63

Tables

Table 1: Key Restructuring Issues Affecting CHP/DG 31
Table 2: Verified Microturbine and CHP Technologies 46
Table 3: Summary of CHP Technologies 64
Table 4: Typical Cost and Performance Characteristics 65

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