Combined Heat and Power Technologies Have a Proven Potential to Benefit Future Energy Production

Combined Heat and Power: A Two for One Deal

What if electricity and heat could be generated simultaneously? Think about energy generation on a small scale, like your household. Imagine if the same source that powered your lights and turned on your television would also heat your water and home. This two for one deal-type of energy generation would maximize energy efficiency, as well as cut down on the amount of wasted energy and high energy prices. Now imagine if we could apply this technology to have an impact on a larger scale, like industrial sites or commercial buildings. The possibilities in monetary savings and environmental impact are great.

Pictured is a CHP Process Flow Diagram. CHP systems can operate at efficiency levels as high as 80%; almost double the amount of traditional methods. While the technology is heavily used in industrial, commercial, and institutional settings, it is slowly breaking its way into other large industries, such as urban centers and university campuses throughout the United States. Photo courtesy of U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy.

The idea of higher efficiency and lower cost by way of fewer steps is enticing. The Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) has taken this energy-saving idea and run with it. Through the DOE’s Combined Heat and Power (CHP) program, the cogeneration of heat and electricity has been taken to the streets with the support of research, market transformations, and a strong foundation of integrated energy systems.

Industrial Sized Savings

This idea of a one-stop shop is improving traditional industrial power systems. Current power plants pump fuel through a boiler and a turbine to create electricity and heat, which yields 35 percent electricity with 65 percent waste heat. This means that more than two-thirds of the fuel used to produce energy in the U.S. is lost in excess heat. This type of power generation is neither cost nor energy efficient for industries or their consumers.

What if the waste heat that escapes during energy generation could be recycled and used toward heat and electricity production? By decreasing this 65 percent loss in energy, there would be an increase in efficiency not only for energy systems, but for taxpayers. This is where CHP comes into play.

CHP is a technology that uses one fuel source to create both electricity and heat. This has a lot of potential to improve energy security and reduce greenhouse gas emissions. By making use of heat produced during power generation, CHP remains energy efficient by avoiding generation and transmission losses. CHP technologies are now installed in more than 3,500 commercial, industrial, and institutional facilities in the United States, representing about 9 percent of the nation’s total electricity capacity.

What are its benefits?

CHP provides positive benefits in the following four ways: it will reduce consumer and industrial costs, enhance energy security, increase energy efficiency, and reduce emissions.

So what exactly can CHP do for you? According to a report by Oak Ridge National Laboratory, increasing the amount of energy generated by using CHP can create nearly 1 million new jobs, cut CO₂ emissions equivalent to taking 154 million cars off the road, and attract $234 billion dollars in private investments.

Philadelphia's Shipyard, pictured above, is home to the Mid-Atlantic RAC. The Center's main objective is to promote CHP, waste heat recovery, clean energy technologies and practices, and offer regional assistance for specific projects. Photo courtesy of U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy.

There is no denying the benefits of CHP. The projected cost reduction for U.S. ratepayers from including CHP in existing technologies exceeds $500 billion through 2035. Not to mention CHP systems are not limited to implementation in electric units, but can be applied to thousands of existing district energy systems, industrial facilities, colleges, universities, and hospitals.

The Heart of CHP Projects

Even though CHP technologies have a proven potential to benefit future energy production, the journey can’t stop with the technology itself. To guarantee that the benefits of CHP yield tangible results, it is DOE’s responsibility to create marketable opportunities. The Clean Energy Application Centers, formerly called the CHP Regional Application Centers (RACs), have a primary role in transferring these benefits into the market.

DOE established the CHP Centers to offer local, individualized solutions to customers on specific CHP projects. The Centers also provide end-user education and outreach, and lead initiatives to educate state policymakers and regulators.

Since their inception, the Centers have successfully accomplished the following:

• Informed prospective CHP users about the benefits and applications of CHP for specific markets
• Supported CHP project development by conducting feasibility studies, analyzing permitting issues, and assessing applicable rates
• Promoted CHP as an effective, clean energy solution to state policymakers and educated these audiences on overcoming barriers to widespread adoption of CHP

The Centers have engaged in more than 125 end-user focused workshops that aim to improve understanding and application of CHP throughout industries in the United States. These workshops target over 9,000 participants including system manufacturers, installers, architects, building engineers and operators, project developers, financiers, and policymakers. The workshops and marketing services provided are led by collaborative partnerships between universities, research organizations, and non-profit organizations. Having these groups play the role of what could be considered a “helpline” for CHP users allows for smoother transition of the technology into the marketplace.

The Centers are split into eight regions - Northwest, Pacific, Intermountain, Midwest, Gulf Coast, Southeast, Mid-Atlantic, and Northeast - that have supported more than 350 projects. The Centers’ efforts of promoting and applying CHP technologies have avoided the emission of more than 7.7 million tons of CO₂ into the atmosphere.

By setting up eight different regional sectors throughout the United States, the Centers ensure all CHP users have access to technology support, which makes for a smooth transition of CHP technologies. Photo courtesy of U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy.

In addition to promoting CHP and its deployment, the Centers also provide education and outreach that addresses distributed energy opportunities on college campuses, in communities and other applications. The ninth and newest addition to the existing centers - the International District Energy Association (IDEA) Center - is using workshops, webinars, seminars, and training to expand visibility for CHP and related technologies in the distributed energy marketplace.

Vision for the Future

The CHP Centers are supporting DOE’s mission to help the nation advance its energy security and economic goals. These Centers pursue a strategic approach that involves developing and deploying more energy-efficient CHP technologies, and validating their performance to achieve its goals. This balanced approach between research and development and market transformation of CHP technologies will allow DOE to deliver significant returns on taxpayers’ investment, such as high quality jobs, enhanced domestic manufacturing, and abating climate change.
To read more please visit, http://www1.eere.energy.gov/industry/distributedenergy/index.html.