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Title: Top 10 Sup


1
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2
Energy Background
  • Rising Costs Price Volatility
  • Fuel Supplies Less Reliable
  • Weather Concerns
  • Instability in Oil Producing Nations
  • High Demand
  • Greenhouse Gas Issues

3
Managing Your (Rising) Energy Costs
  • Energy Costs have risen dramatically over the
    past couple of years
  • Commodity Pricing (without transmission charges)
  • Crude Oil NYMEX Crude Futures around 67/bbl
    for January 2006 delivery. Average prices for
    2001 were around 22/bbl
  • Natural Gas NYMEX Futures around 12.50/MMBtu
    (1.25 per therm) for October delivery. Average
    industrial user pricing for 2001 was 5.1/ MMBtu
    (0.51/therm) and 3.91/MMBtu (0.39/therm) for
    2002.
  • Electricity New Jersey Industrial User Average
    Pricing for June 2005 - 0.987/kWh, June 2004 -
    0.836

Source Energy Information Administration
Website (www.eia.doe.gov)
4
Future Energy Pricing Uncertain
  • Forecasts for the near term future are trending
    upward
  • Tight refinery capacity makes it difficult to
    predict the next event that could impact pricing
  • Rising energy costs erode profits for companies

Crude Oil Spot Prices
Natural Gas Futures
Source Energy Information Administration
Website (www.eia.doe.gov)
5
Where does our energy come from?
  • Understanding the risks associated with fuel
    supply requires and understanding of where fuel
    comes from.

6
Top 10 Suppliers of U.S. Crude Oil Imports for
2004
Source Energy Information Administration
Website (www.eia.doe.gov)
7
Risks to Crude Supply
  • Approximately 2.4 million Barrels per day or 24
    of imported crude oil comes from the Persian Gulf
  • Venezuela and Nigeria produced approximately 2.4
    million barrels per day or 24 of imported crude
  • Nearly 48 of imported crude comes from regions
    of risk due to political instability

Source Energy Information Administration
Website (www.eia.doe.gov)
8
Refinery Capacity
  • World Demand is at an all-time high due to
    economic growth over the past couple of decades
  • US demand is at all time high. Lack of
    investment in new refinery capacity has caused
    production bottleneck
  • Hurricanes - Katrina Rita have highlighted the
    risks to Gulf of Mexico Production and Refining
    Facilities

9
Natural Gas Imports/Exports
  • In 2004, approximately 15 of US gas consumption
    was from imports, mostly from Canada.
  • Demand for natural gas is increasing beyond North
    American production rates, so LNG imports are
    growing. Trinidad, Algeria, Qatar and Nigeria
    provided 95 of LNG imports from 2000-2004.
  • Continued increases in demand will tax the
    capacity of transcontinental pipelines, requiring
    increased LNG imports to meet demand in
    northeastern US.

Source Energy Information Administration
Website (www.eia.doe.gov)
10
US Electric Generation Fuel Sources
Source Energy Information Agency Quickstats
(http//www.eia.doe.gov/neic/quickfacts/quickelctr
ic.htm)
11
So here we are
  • Todays energy crisis is different than that of
    the mid 1970s, which turned out to be a short
    term event.
  • Increased demand for crude oil and natural gas
    will be met by foreign sources
  • US continues to lack a comprehensive energy
    strategy to reduce dependence on foreign
    supplies, therefore
  • Reliability and pricing concerns of our energy
    supply will likely be with us for the long haul
  • So what can you do about it?

12
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13
Before you get started
  • Get upper management involved. You cannot
    succeed without senior management support for an
    energy reduction program (formal program that has
    targets in senior management objectives
    Novartis recently signed off on Kyoto Protocol
    5 reduction in greenhouse gases from 1990 levels
    by 2008 2012)
  • Collaborate with others in your industry. This
    will allow you to take advantage of the ideas and
    lessons learned by others. (PMON, NJPFEUG,
    NJLEUC, NJAEE)
  • Engage different user groups (maintenance,
    manufacturing, environmental, others) on site to
    brainstorm opportunities. This is especially
    important for sites where manufacturing
    operations are energy intensive.

14
Before you get started
  • There are many resources to help you develop your
    plan. Two good resources are
  • Energy Star (www.energystar.gov)
  • US Department of Energy Energy Efficiency and
    Renewable Energy (http//www.eere.energy.gov/)
  • Both websites have good information on strategies
    and case studies to learn from
  • If you lack the resources, time or expertise,
    consider engaging a consultant with expertise in
    energy reduction programs

15
Energy Star Steps for Energy Reduction Program
  • Make a Commitment - Organizations seeing the
    financial returns from superior energy management
    continuously strive to improve their energy
    performance. Their success is based on regularly
    assessing energy performance and implementing
    steps to increase energy efficiency.
  • Assess Performance - Understanding current and
    past energy use is how many organizations
    identify opportunities to improve energy
    performance and gain financial benefits.

Source Energy Star Website (http//energystar.go
v/index.cfm?cguidelines.guidelines_index)
16
Energy Star Steps for Energy Reduction Program
cont..
  • Set Goals - Performance goals drive energy
    management activities and promote continuous
    improvement. Setting clear and measurable goals
    is critical for understanding intended results,
    developing effective strategies, and reaping
    financial gains.
  • Create Action Plan - With goals in place, your
    organization is now poised to develop a roadmap
    to improve energy performance.

Source Energy Star Website (http//energystar.go
v/index.cfm?cguidelines.guidelines_index)
17
Energy Star Steps for Energy Reduction Program
cont..
  • Implement Action Plan - People can make or break
    an energy program. Gaining the support and
    cooperation of key people at different levels
    within the organization is an important factor
    for successful implementation of the action plan
    in many organizations.
  • Evaluate Progress - Evaluating progress includes
    formal review of both energy use data and the
    activities carried out as part of the action plan
    as compared to your performance goals.

Source Energy Star Website (http//energystar.go
v/index.cfm?cguidelines.guidelines_index)
18
Energy Star Steps for Energy Reduction Program
cont..
  • Recognize Achievement - Providing and seeking
    recognition for energy management achievements is
    a proven step for sustaining momentum and support
    for your program. (Novartis uses HSE success
    stories and Energy Awards.)
  • Reassess As you move forward with your plan,
    changes in your site or the energy marketplace
    should be considered, and adjustments made to
    your plan to keep it appropriate.

Source Energy Star Website (http//energystar.go
v/index.cfm?cguidelines.guidelines_index)
19
Strategies
start with how your facilities are currently
operating
  • Collect data on consumption utility company
    bills, internal distribution metering. Look at
    the past couple of years to determine trends and
    identify areas of opportunity. Tracking will be
    important to identify opportunities, establish a
    base case for financial analysis of energy
    opportunities and verify savings, identify
    metering deficiencies early and how information
    should be presented early on.
  • Many facilities have sophisticated Building
    Management Systems that could be better utilized
    to reduce energy consumption. System integrators
    are typically not tasked to provide optimal
    operating programming up front, and, over time
    individuals may have altered programming for
    convenience. Take a systematic approach, as each
    opportunity arises, see where else it can be
    applied in a campus environment.

20
Strategies
start with how your facilities are currently
operating
  • Maintenance of systems properly maintained
    systems utilize less energy to perform the same
    work.
  • Look at your Building Management Systems
  • Check space temperature setpoints. Verify that
    they are acceptable. Adjust as required to
    reduce energy consumption while maintaining
    comfort.
  • Check calibration of key parameters like outside
    and interior temperature sensors. Also check
    flow meters and differential pressure sensors
    where a central chiller plant is supplying
    multiple
  • Verify that time of day/week occupied/unoccupied
    settings are correct and functional
  • Optimize start/stop of systems

21
Strategies
start with how your facilities are currently
operating
  • Make sure that you change HVAC filters regularly
    added pressure drop increase to fan energy.
    Novartis has standardized on an extended bag
    filter that fits most air handlers, reducing
    change-out frequency and pressure drop
  • Perform vibration analysis on all equipment 5 HP
    and above (less for critical systems). Novartis
    performs this as part of commissioning to avoid
    inheriting problems, and routinely so as to shift
    from preventative to predictive maintenance.
    Before / after repair testing demonstrates energy
    savings.
  • Evaluate chiller plants, compressed air systems
    and boilers using third parties specializing in
    these systems.

22
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23
Start with the biggest users of energy
your buildings
  • Determine where your buildings are operating
    relative to similar buildings. Energy Star
    Portfolio Manager can help, however labs and
    manufacturing buildings have not been
    benchmarked. Labs 21 (http//www.labs21century.go
    v/toolkit/benchmarking.htm) can help with
    laboratories and clean rooms
  • Use auditing tools to identify opportunities to
    improve energy performance
  • Take care not to delay starting obvious
    initiatives (maintenance, BMS system adjustment)
    while waiting for a comprehensive review, which
    may take up to a year depending on the size of
    your facility.

24
Look at your Building Management Systems
  • Check space temperature setpoints. Verify that
    they are acceptable. Adjust as required to
    reduce energy consumption while maintaining
    comfort.
  • Verify that time of day/week occupied/unoccupied
    settings are correct and functional. Utilize
    intelligent programs to start/stop and sequence
    systems

25
Facility Renovations, Expansions and Contraction
  • In the past, projects were performed only
    considering the additional energy needs of the
    project
  • Where it makes sense, larger projects can provide
    a good opportunity to increase the energy
    effectiveness of a facility. Increases to
    on-site energy generation can be considered to
    meet capacity and increase efficiency.
  • Architectural Masterplans should be complemented
    with an Energy Master Plan. The Energy
    Masterplan should maximize the return on
    investment of systems utilizing energy.
    Lifecycle costing of systems should be performed
    to verify the true low cost system. Novartis is
    performing energy modeling of new facilities.
  • Some sites are reducing the number of buildings
    or changing from manufacturing to office,
    lowering energy demand. This can lead to
    oversized and potentially inefficient on site
    energy plants. Novartis recently reduced energy
    consumption by converting old labs and
    manufacturing space to office space.

26
Energy Reduction Program
  • Take advantage of rebates to buy more efficient
    equipment in your construction projects.
  • Replace older, less efficient equipment.
  • Look at replacement options like for like
    replacement may not improve efficiency as much as
    technology change.
  • Upgrade controls and sequence of operations
  • Take advantage of incentive s for renovation
    and new projects NJ Smart Start Program

27
NJ Smart Start Program
  • Incentive program for utilizing equipment meeting
    efficiency requirements see NJ Smart Start
    website for details (http//www.njsmartstartbuildi
    ngs.com).
  • Design Support
  • Design Incentive s
  • Brainstorming Session (Up to 1000)
  • Energy Simulation Incentive (0.10/sq.ft. up to
    50,000 sq.ft., 0.03/sq.ft. for area over 50K
    sq.ft.)
  • Measure Design Incentives for incremental cost of
    design of more complicated energy saving measure
    for Lighting (Max 2,000), HVAC and Envelope (Max
    2500), and Motors and Other (Max 500)
  • Electric Chillers Water-cooled chillers (12 -
    170 per ton), Air-cooled chillers (8 - 52 per
    ton)
  • Gas Cooling Gas absorption chillers (185-450
    per ton), Gas Engine-Driven Chillers (Calculated
    through Custom Measure Path)

Source New Jersey Smart Start Program Website
(www.njsmartstartbuildings.com)
28
NJ Smart Start Program cont
  • Desiccant Systems (1.00 per cfm - gas or
    electric)
  • Electric Unitary HVAC
  • Unitary AC and split systems (73 - 92 per ton)
  • Air-to-air heat pumps (73 - 92 per ton)
  • Water-source heat pumps (81 per ton)
  • Packaged terminal AC HP (65 per ton)
  • Central DX AC Systems (40 - 72 per ton)
  • Dual Enthalpy Economizer Controls (250)
  • Ground Source Heat Pumps Closed Loop Open Loop
    (370 per ton)
  • Gas Heating Gas-fired boilers 4000 MBH (1.00
    - 2.00 per MBH), Gas-fired boilers 4000 MBH
    (Calculated through Custom Measure Path), Gas
    Furnaces (300 per unit)

Source New Jersey Smart Start Program Website
(www.njsmartstartbuildings.com)
29
NJ Smart Start Program cont
  • Variable Frequency Drives Variable air volume
    (65 - 155 per hp), Chilled-water pumps (60 per
    hp)
  • Natural Gas Water Heating Gas water heaters 50
    gallons (50 per unit), Gas-fired booster water
    heaters 50 gallons (1.00 - 2.00 per MBH),
    Gas-fired booster water heaters (17 - 35 per
    MBH)
  • Premium Motors Three-phase motors (45 - 700
    per motor)
  • Prescriptive Lighting
  • T-5 and T-8 lamps with electronic ballast in
    existing facilities (10 - 20 per fixture)
  • Hard-wired compact fluorescent (25 - 30 per
    fixture)
  • Metal halide w/pulse start (45 per fixture)
  • LED Exit signs (20 per fixture)
  • T-5 and T-8 High Bay Fixtures (New Fixtures
    meeting requirement 8.1 on application)50 per
    fixture
  • T-5 and T-8 High Bay Fixtures (New Fixtures
    meeting requirement 8.2 on application) 75 per
    fixture

Source New Jersey Smart Start Program Website
(www.njsmartstartbuildings.com)
30
NJ Smart Start Program cont
  • LED Traffic Signal Lamps
  • Lighting Controls
  • Occupancy Sensors Wall mounted (20 per
    control), Remote mounted (35 per control),
    Daylight dimmers (25 per fixture controlled),
    Occupancy controlled hi-low fluorescent controls
    (25 per fixture controlled)
  • HID or Fluorescent Hi-Bay Controls Occupancy
    hi-low (75 per fixture controlled), Daylight
    dimming (75 per fixture controlled)

Source New Jersey Smart Start Program Website
(www.njsmartstartbuildings.com)
31
NJ Smart Start Program cont
  • Other Equipment Incentives
  • Performance Lighting (1.00 per watt per square
    foot below program incentive threshold, currently
    20 more energy efficient than ASHRAE 90.1-1999
    for New Construction and Major Renovation and 10
    more energy efficient than ASHRAE 90.1-1999 for
    Existing Facilities.)
  • Custom electric and gas equipment incentives (not
    prescriptive)
  • Equipment is based on type, efficiency, size,
    and application and is evaluated on a
    case-by-case basis. Contact your utility for
    details.

Source New Jersey Smart Start Program Website
(www.njsmartstartbuildings.com)
32
Manufacturing
  • Manufacturing processes tend to be very energy
    intensive. There may be an opportunity to shift
    work to have more energy intensive operations on
    off-hours with lower electric rate
  • Work with representatives of manufacturing to
    identify opportunities to reduce energy usage.
    They will resist, so be prepared to encourage
    them with potential energy savings
  • Minimize air exchange rates. Novartis has been
    able to reduce air exchange rates in pilot plants
    and lab buildings by carefully considering
    requirements and working with all stakeholders
    well in advance.

33
Site Energy Generation
  • Once you have look at your buildings, focus on
    your on site energy generation
  • Boiler Plant
  • Chiller Plant
  • Compressed Air Plant
  • Cogeneration
  • Tools for Maximizing Plant Efficiency

34
Boiler Plants
  • Regularly test boiler efficiency tune and
    adjust to maximize efficiency
  • Tune boilers to specified excess air levels.
    Utilize O2 trim control where possible
  • Consider back pressure turbines for reducing
    pressures for larger quantities of steam
  • Evaluate flue gas economizer and blowdown heat
    recovery
  • Evaluate water treatment program bad water
    treatment reduces heat transfer efficiency
  • Load matching operate at best efficiency point
  • Replace oversized equipment with appropriate
    boiler sizing to avoid unnecessary cycling and
    low load operation
  • Multi-fuel capability also consider alternate
    renewable fuels (like biofuels)
  • Steam Trap Maintenance
  • Verify that steam traps are operating properly,
    repair or replace malfunctioning traps.
  • Consider remote monitoring capability
  • Novartis commissioned a steam trap survey which
    identified 5 of traps at the East Hanover site
    were plugged or passing steam (industry average
    is around 10). The energy savings more than
    offset the repairs and the cost of the survey

35
Existing Chiller Plants
  • Utilize controls system to optimize operation of
    chillers
  • Base load most efficient units
  • Consider replacement of older, less efficient
    equipment
  • Consider diversification of fuels, with a mix of
    electric, steam (absorption or turbine) and gas
    fired to hedge against changes in fuel costs and
    to avoid time of day and demand charges
  • Employ some metrics to determine if chiller plant
    is running optimally throughout the cooling
    season, and to direct maintenance activities in
    the winter months. GE Betz offers a program
    called Chiller Check for a fee.

36
New Chiller Plants
  • Do not oversize the plant unnecessarily.
    Operating chillers at partial load can reduce
    efficiency. Select module sizes to maximize
    loading based on anticipated load profiles, while
    also considering redundancy
  • Consider diversification of fuels, with a mix of
    electric, steam (absorption or turbine) and/or
    gas fired absorption to hedge against changes in
    fuel costs and to avoid time of day and demand
    charges
  • Consider the use of heat machines, or comparable
    equipment, to take waste heat from the condenser
    and utilize it for free heating in reheat or
    other lower temperature systems
  • Consider the use of thermal storage systems to
    reduce plant size. This strategy will minimize
    time of day and demand charges.
  • Optimize your chilled water distribution system
    to minimize pumping costs
  • Utilize VFD control for chillers, pumps and
    cooling tower fans
  • Utilize controls system to optimize operation of
    chillers
  • Base load most efficient units

37
Compressed Air Systems
  • Compressed air systems - Assess the efficiency of
    the compressed air plant. Older plants that have
    been incrementally enlarged may operate
    inefficiently. Consider strategies to address
  • Compressors controlled from a central controller
    to maximize efficiency
  • Enlarging the compressed air receiver to reduce
    run time for compressors
  • Pressure and demand matching
  • Perform regular inspections of system to verify
    the leakage is minimized. When possible, add
    manual and/or automated valves to shut off air
    flow when user equipment is shut-off. This is
    particularly important with packaging equipment
  • Interconnecting separated systems, where
    possible, to minimize the number of compressors
    required to operate
  • As with all other systems good maintenance will
    go a long way to improving performance of the
    system

38
Optimize Utilization of On Site Generation Assets
  • Model each on-site utility generation system to
    develop operating scenarios that maximize plant
    efficiency
  • Know the implications of changes to fuel prices
    on selection of generation equipment to run
  • Weather plays a part non-process HVAC loads are
    typically proportional to outside temperature.
    This may allow you to model your systems as a
    function of outdoor conditions giving operators
    the most efficient operating configuration in
    advance

39
Buying Your Energy
  • Strategies Buy your energy smarter
  • Bid energy contracts beware of entering into
    long-term contracts at peak price points
  • Take advantage of buying power. Aggregate your
    facilities to buy energy in larger quantities to
    reduce price.
  • Be part of an energy buying consortium to buy
    energy with others, particularly if you dont
    have an energy manager tracking the market
  • Consider longer term buying horizon to gain some
    surety of pricing. Novartis is working toward a
    24 month rolling buying horizon.

40
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41
Requirements
  • Provide sufficient capacity (electric / thermal)
  • Assure reliability (normal grid / outages)
  • Achieve Cost savings
  • Minimize Cost volatility
  • Meet or exceed emission standards
  • Earn LEED credits

42
Key Particulars
  • Baseload Cogeneration Sized to the Thermal
  • Peak Power Purchase from Grid Conventional/
    Renewable Electric Energy Blend
  • Demand Response / Standby Generation
  • On-Site Renewable supply where feasible and
    economical
  • Hybrid (Multi-Fuel) Cooling/ Heating Systems

43
Integrated Electric Supply Approach
  • 1 Wholesale generators
  • 2-4 Transmission owners
  • 5-6 LDC
  • 7 Consumer
  • On-site generator
  • Energy Services
  • Provider

44
Facility Audits and Benchmarking
  • Strategies Audit and Benchmark Your Facilities
  • Use auditing tools from Energy Star, DOE, AEE, or
    other reputable source.
  • Start with big users of energy first.
  • Involve manufacturing and environmental
    compliance representatives
  • Make sure you find all big users of energy.
    Items like thermal oxidizers can use large
    quantities of energy

45
Facility Audits and Benchmarking
  • Once you know where you are develop goals for
    where you want to be, along with a road map for
    getting there.
  • Goals should be achievable and in concert with
    corporate priorities. Timelines must be
    monitored and long term goals adjusted to reflect
    changes in energy use patterns, energy costs and
    changing corporate priorities.
  • Many large companies already have corporate goals
    for energy conservation and emissions reductions.
  • JJ - greenhouse gas emissions 4 reduction
    by 2005 and a 7 reduction by 2010, in absolute
    terms with 1990 as a base year.1
  • Novartis The Group has adopted energy-
    efficiency targets for 200406, calling for each
    business unit to improve energy efficiency by 2
    a year. Half of this reduction, 1 of annual
    consumption, should come from concrete
    energy-saving projects.2 Novartis recently
    signed the Kyoto Protocol thereby committing to
    reducing the companys GHG emissions 5 below
    1990 levels in the time period 2008 - 2012

1 Source JJ Corporate Website Climate
Friendly Energy Policy 2 Source Novartis
Corporate Website Corporate Citizenship
46
Recent Audit Project
  • Example Audit of a 250,000 square foot
    pharmaceutical manufacturing facility with office
    and warehouse space
  • Audited June 2005 Identified opportunities for
    energy savings
  • Direct Fired Thermal Oxidizer - add heat
    recovery to extract waste heat from 1500oF exit
    gas temperature, recovering over 65 of input
    heat
  • Add VFDs to chiller and pumps
  • Revise operation of boiler plant
  • Add 1.2 MW of photovoltaic electric on site
  • Reduce electric consumption over 2,000 MWh per
    year
  • Once changes are implemented, energy savings are
    estimated at approximately 750K per year at
    current utility rates, for an IRR of
    approximately 15
  • Estimated 3,500 metric tons per year reduction in
    CO2 emissions

47
HVAC Controls Systems Upgrades
  • Examples
  • VAV Laboratory Systems with Occupancy Sensors
    reduced airflow (as much as 60 over constant
    volume) reduced energy s
  • VAV system optimization Allow control system to
    adjust AHU discharge temperature to minimize
    reheating
  • Chiller Plant Optimization
  • Monitoring of generation and usage parameters
    interpret trends and adjust operations to address
    changes

48
Below Radar Screen Energy Savings
  • Flywheel UPS vs. Battery UPS
  • Must be combined with reliable backup power
    generator
  • Very reliable link to standby generator
  • Provides sufficient energy ride through time to
    initiate generator start online
  • Environmentally Friendly - Battery free,
    therefore no battery chemicals
  • Reduced maintenance, smaller footprint and much
    less weight
  • Does not require dedicated air conditioning of
    room
  • Saves Energy

49
Efficiency Cost SavingsExample 300 kVA System
  • Battery UPS (avg. 93 efficiency)
  • 15,824 .08/kw X .07 efficiency loss X 300
    kva X 8760hrs/yr
  • .93 efficiency
  • Flywheel UPS (avg. 97 efficiency)
  • 6,502 .08/kw X .03 efficiency loss X 300
    kva X 8760hrs
  • .97 efficiency
  • Energy Cost Savings 9,322 per year, not
    including savings from reduction of HVAC load

50
EPRI Power Quality Study (USA)
2 Yr Study, 300 Sites, 24 Utilities
  • 97.2 under 30 sec.
  • 96.3 under 10 sec.
  • 93.0 Under 2 sec

Yearly Events
51
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52
On Site Generation
  • Disadvantages
  • Increased maintenance
  • Takes up real estate that may be more valuable
    when utilized for manufacturing space
  • Emissions tagged to site
  • Fuel cost not always linked. Cogen economics are
    dependent on relative cost of fuel burned to
    electric utility rates
  • Advantages
  • Base load power needs are provided on site
  • Steam or hot water for facility heating and/or
    cooling provided from waste heat
  • Improved reliability grid backs up on-site
    generator
  • Emissions lower when compared to electricity
    generated by the utility company
  • Economic payback can be achieved

53
On Site Generation
  • Site Electric and Thermal Loads Need to be
    Compatible
  • Equipment typically sized to base load of
    electrical and thermal loads
  • Heat recovered by HRSG is used to displace fuel
    for boiler operations resulting in energy savings
    and a reduction in plant emissions

54
On Site Generation
Reproduced from NJ Clean Energy Program Website
55
On Site Generation
  • Example
  • Take a 1.0 MW Gas Turbine Generator with Heat
    Recovery Steam Generator
  • Assume Implementation Cost About 2.5 Million
  • Level II Incentive 1.00/Watt to Max 30 of
    Project Cost, or 750,000 - Other NJ Smart Start
    Incentives for Balance of Plant
  • Reducing project cost by 30 can take a 10 IRR
    project to 15

56
Larger Scale Cogeneration
  • Pharmaceutical Mfg. Campus 2004 Study Project
    Being Implemented 2005/2006
  • 4.5 MW On-Site Generating Capacity
  • 14,000 PPH Steam from HRSG
  • Implementation Cost Estimate 8 million (Includes
    Ancillary Work Outside of Cogen)
  • NJ Clean Energy CHP Program Rebate estimated at
    1 million
  • Estimated Savings 1.4 million
  • IRR around 15
  • Estimated CO2 Reduction 6,200 Tons/year

57
Small Scale Cogen Sterling Engine
Payback 55KW Stirling Engine Including
Installation, Tax Credit Incentives and OM Costs
Revenue with PPA at 0.05/kWh
58
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59
Renewable Fuel Sources
  • Consider Renewable Fuel Sources
  • Solar photovoltaic
  • Biofuels
  • Digester and Landfill Gas
  • Wind Power
  • Geothermal
  • Waste Stream Recovery
  • Many states have generous incentive programs for
    projects using renewable fuels New Jersey and
    California are leaders

60
Renewable Fuel Sources
  • Solar Photovoltaic Power Generation
  • True renewable fuel source
  • Incentive program in NJ for installation (see
    Chart on next slide)
  • Federal Incentive Tax Credit of 30 of
    implementation cost
  • Generate Solar Renewable Energy Credits which can
    be sold, providing revenue
  • Net Metering Provision in NJ - Systems capacity can reverse the electric meter when site
    demand is less than solar generation, effectively
    selling electricity at the price you pay!

61
Solar Power Incentives
NJ Clean Energy Program Renewable Energy
Financial Incentives
Reproduced from NJ Clean Energy Program Website
62
Solar Renewable Energy Credits (SREC)
  • NJs Renewable Portfolio Standard (RPS) requires
    electricity suppliers provide a percentage of
    their electricity sales from solar generation.
  • 1 SREC 1000 kWh of power generated by solar
    energy
  • You can sell SRECs through NJ SREC Program
  • Values have been averaging between 160 - 178
    per MWh since August 2004
  • ex. 100kW system operating an average of 10
    hours per day for 250 days per year with SREC
    160/MWh (0.16/kWh) would generate SREC sales of
    40,000 per year

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Recent Solar Energy Study
  • Recent Study for Solar Project in California
  • Nominal 1200 kW Ground Mounted Tracking System
  • Implementation Cost Approximately 8 Million
    Before Incentives, Tax Credits
  • Incentives and Tax Credits Reduce Implementation
    Cost by Approximately 3.5 Million
  • Estimated savings of 1.9 Million kWh per year
  • Estimated IRR of Over 13, not including SRECS

64
Summing Up
  • You can improve your energy performance by
  • Operating your existing facilities more
    effectively by maintaining and tuning existing
    systems
  • Developing and Implementing and Energy Reduction
    Program
  • Auditing and Benchmarking Your Facilities
  • Taking Advantage of Incentive Programs to
    Implement Efficiency Upgrades
  • Optimize Operation of On Site Generation Assets
  • Educating Colleagues About Ways They Can Help
  • Making Energy Efficient Operations Part of Your
    Job

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