COGENERATION AND DISTRIBUTED RESOURCES

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					    COGENERATION AND
 DISTRIBUTED RESOURCES

            Professor Akhtar Kalam
              Victoria University


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* A secure supply of power and
heat is of paramount importance,
and it must be provided at the
lowest possible cost.
* The privatisation of the
electricity supply industry has
brought competition in to the
market place for electricity supply
and buyers.
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  EcoGeneration in Australia
    Based on industry growth trends and current
    government initiatives, by 2010 EcoGeneration
    should almost double to represent approximately
    14 per cent (7000 MW) of total installed
    generation capacity in Australia compared to 7.8
    per cent (3390 MW) at the end of 1999 (AEA’s
    estimate). Of this total, renewables should
    quadruple form 530 MW to approximately 2100
    MW by 2010. Non-renewable EcoGeneration
    should increase by some 70 per cent to
    approximately 4900 MW. These growth rates
    reflect international trends where ecologically
    sustainable power production technologies are
    recording by far the highest growth rates.
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EcoGeneration: EcoGeneration includes
cogeneration, renewables, waste-to-energy
and distributed generation technologies.
EcoGeneration is a natural grouping of
environmentally sustainable energy delivery
technologies as they offer similar benefits
and face similar challenges in the National
Electricity Market.



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Cogeneration (also known as combined heat
and power - CHP): Cogeneration involves the
production of combined heat and power. Heat
that would otherwise be wasted is recovered
and used in commercial and industrial
applications. Cogeneration is typically two to
three times more efficient than major
conventional, coal-fired, centralised power
stations. On average it produces one-third the
greenhouse gas emissions of conventional
power production.


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Renewable generation: Renewable
generated power produces no net
greenhouse emissions. Includes power
generated from natural resources such
as biomass, hydro, wind, solar and
tidal. It also includes power generated
using certain wastes.




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Waste-to-energy: This is electricity
produced using waste fuels, some of
which may otherwise cause local
environmental challenges. A number
of waste fuels are deemed to be
renewable including: cane residue
(bagasse) from the sugar industry;
sludge gas from sewage treatment
plants; and methane from landfill sites.
Fossil fuel-based waste streams
include coal waste methane, refinery
waste gases and coal tailings.
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Distributed generation: This is power
generation generally located close to
where it is consumed, for example,
supplying electricity on-site or over-
the-fence. Also referred to as
decentralised, embedded or localised
generation. Can be as small as a 1 kWe
solar photovoltaic system, or even
larger than a 450 MW industrial on-site
cogeneration system.

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 Embedded generation: This refers
to smaller-scale generators that
are connected to electricity
distribution networks. This is in
contrast to large-scale coal-fired
generators that are connected to
very high voltage electricity
transmission networks.

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           THE TECHNOLOGY
     Cogeneration - is essentially a
  philosophy. It describes the use of
     technology, that combines the
generation of heat (Mechanical energy)
 and electricity (Electrical energy) in a
    single unit in a way that is more
   efficient than producing heat and
  electricity separately in boiler plant
        and at the power station.
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In other words, cogeneration is the
energy process whereby waste heat,
produced during the generation of
electricity, is utilised for steam raising
or heating. This is no different than
any other power stations. The only
difference being that the waste heat
from the electricity generating plant is
harnessed & made used of rather than
being thrown away in the form of
Waste Heat.
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The mechanical energy can be used
for any mechanical application such as
driving       motors,      compressors,
extruders, etc. The electrical energy
can be used to meet in-house demand
and any surplus sold back to the
electricity grid. The thermal energy can
be converted to steam or hot water for
process application, or for drying
purposes.
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In brown coal and gas fired power
stations, 28% to 35% of the energy in
the fuel is converted to electricity, the
other 65% to 72% becomes heat which
must be disposed of. In cogeneration,
both the recovered heat and the
electricity or mechanical energy are
used, so efficiency increases to 70% to
82% depending on the prime mover
used. This utilisation is well over twice
that of a large conventional power
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station.
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    WASTE HEAT


STEAM                Hot Water
(Industrial Process)       (Space heating
                     in a commercial
                     building or district
                     heating scheme)
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    CONVENTIONAL PLANT

             WASTE  HEAT rejected to the
             environment

             Capturing  this will result in η of 90%
             to be achieved
                 • cf. 36% (Conventional plant)
                 • 52% (Combined Cycle Gas
                   Turbine)

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The economics of cogeneration
schemes are most compelling for
organisations with a high heat
requirement. Units range from as
little as 20kW to hundreds of MW
and can be linked to public and
commercial buildings, industrial
sites and community heating
schemes.

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Cogeneration has a very wide
application in the industrial and
commercial sectors, and also in
public institutions. In the industrial
sector     potential     exists     in
manufacturing             (petroleum,
chemical, food and beverage,
textiles, paper, iron and steel,
motor vehicles, glass and clay),
mining and forestry.

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20




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There are two obvious times to
consider         investing       in
cogeneration: first, when existing
boiler capacity needs to be
replaced and second, when new
buildings are being planned.
Hospitals, for example are already
being designed to include a
cogeneration       system     from
inception.
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Once the economics have been
worked out and the investment
has been made, financial savings
quickly offset the initial additional
costs incurred, giving a payback
in as little as two or three years.
The life of a cogeneration system
can exceed fifteen years, so the
savings accrue long after the
initial capital costs have been
recouped.
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Cogeneration cycles
    TOPPING
    BOTTOMING
    COMBINED-CYCLE




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In a topping-cycle system,
fuel is burned to generate
electricity;  the     thermal
energy exhausted from this
process is then used either
in an industrial application
or for space heating.
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In a bottoming-cycle
system, the waste heat is
recovered from an industrial
process application and
used to generate electricity.


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Combined-cycle systems
generally use a topping-cycle gas
turbine; the exhaust gases are
then used in a bottoming-cycle
steam turbine to generate more
electricity and process thermal
energy. Heat pumps may also be
used with a cogeneration system
to upgrade low-temperature heat
for process use.
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Cogeneration plants vary widely in size and
packaged micro-cogen units in the size
range 20kW to 60kW are commercially
available for suitable office buildings,
restaurants, hotels, etc. For units below
800kW, diesel and gas engines are the most
common type of prime motor. From
approximately 800kW to 10MW, gas turbines
or large reciprocating engines can be used.
Steam cycles (steam turbines) can also be
used especially in coal, waste gas or
biomass fired cogeneration systems. For
applications above 10MW, gas and steam
turbines are generally used.
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THE MARKET
The recent privatisation of the electricity
supply industry (ESI), together with a
number of business and technical changes,
have provided new impetus to the
development of cogeneration. It is not these
factors alone that are providing renewed
interest in cogeneration, but their
conjunction at this time. Taken together, the
factors provide a window of opportunity for
the exploitation of cogeneration. The
development of cogeneration has increased
since the restructure of the ESI, but there is
still a long way to go to catch on to the rest
of the world. Cogeneration and Distributed Resources
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HEAT AND POWER
PRODUCTION - A BRIEF
HISTORY



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    Cogeneration is not a new idea
       Old days  Factories  Had their own
        power stations  Supplied their own Heat
        + Power
       1965  66% of the electricity consumed in
        the UK paper industry was generated on-
        site from COGEN schemes
       1990  66% went down to 20%
                                                   Grid systems (CEGB)  reliable supply + real lower prices


           REASONS
            (acted against Cogeneration
             in the last 2 decades  decline)      Development in Boiler plants

                                                   Relatively cheap oil




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The Situation Today
    Recent years  Renaissance
    1990  privatisation of ESI 
    competition
     Gas used for generation  
    Since 1989  1500MWe of new
    COGEN capacity (U.K.)


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    ADVANTAGES
       Efficient way of converting primary fuel to
        useful energy
       Process Industries benefit viz. commercial
        + Environmental sectors
       Targets have been set by Governments
        and this will depend on:
             Future gas and electricity prices
             Development in electricity trading

             Environmental pressures




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               The Future
    INDUSTRY TODAY:
       Market Driven energy market
       Needs specific legislation

       COGEN CAN BECOME A DRIVING
        FORCE




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In total contrast to coal, gas can be
moved relatively easily and without
impacting     on    the     environment.
Therefore, the engineering case for
gas-fired cogeneration meeting local
heat and power needs is very strong.
There might well be seen a reversal of
the trends of the last 60 years, with the
use of the Grid declining and heat and
power production being combined
close to the point of need.
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WHY                   COGENERATION
NOW?
    Regardless of the engineering case
    for cogeneration, it will not "take off"
    unless it is economically attractive.
    The two fundamental parameters that
    dominate commercial viability are:-
    (a) primary fuel costs;
    (b) the capital costs of cogeneration
    schemes.

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Fuel Prices
    Most       cogeneration      schemes
    currently being developed are fuelled
    by gas. Until comparatively recently
    the pricing policy, did not encourage
    the    development      of   gas-fired
    electricity generation. It was argued
    that gas was a premium fuel, too
    valuable for this application. This
    view has now changed.
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Capital Cost
    Industrial cogeneration schemes in
    general     utilise  either   reciprocating
    engines or, more commonly now for larger
    installations, gas turbines. Concentration
    here is on gas turbines because they are
    generally preferred for schemes of several
    megawatts. Gas turbine technology has
    been improving rapidly in recent years
    producing more efficient machines. The
    market is developing with more players
    offering a greater range of machines.
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The "Green" Ticket
   Cogeneration can genuinely be labelled a "Green"
   technology. The overall thermodynamic efficiency
   of cogeneration is very high. Further, when gas
   fired, no sulphur dioxide is produced and NOx
   can be effectively controlled either by steam
   injection or dry NOx control through the design of
   burners. Finally, the application of cogeneration
   reduces the production of CO2 compared with the
   grid/boiler approach. Although it is difficult to put
   a value on "green" benefits in money terms, it can
   do no company any harm to be associated with
   environmentally friendly technology.
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Ageing Boiler Plant
     In the fifties and sixties falling
     electricity prices, in real terms,
     encouraged industry to import
     electricity and produce steam and
     hot water in conventional boiler
     plant. Significant amounts of low
     cost, efficient package boilers were
     installed in the 1960's. Much of this
     plant is now reaching the end of its
     useful life. Cogeneration and Distributed Resources
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Security of Supply
    Security of supply can be of paramount
    importance in industrial environments. An
    on-site cogeneration scheme can enhance
    the security of both heat and electricity
    supplies. In particular, it is possible to
    design the electrical connections to
    ensure continuity of supply for the
    complete failure of the Grid. Such
    arrangements can prove most beneficial
    from both commercial and, in certain
    situations, safety viewpoints.

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Cogeneration in Australia
    VICTORIA (SECV) + State Government
    – INCENTIVE PACKAGE - 1987
    SOUTH AUSTRALIA (SAGASCO) –
    Established a COGEN division
    At the end of 1999, cogeneration and
    distribution generation represented
    8.3% of installed capacity.

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Cogeneration data

    No authoritative information is available on
    the extent of non-utility cogeneration and
    power production.
    The best available estimate puts
    cogeneration capacity in Australia at about
    2,200MW, made up of the following
    industries:
           Alumina industry is the most significant industry,
            accounting for 23% of operational capacity, 38% of
            electricity generation and 36% of thermal production

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            Industry             Capacity(MW)         No. of projects
            Alumina              498.5                6
            Sugar                332.1                30
            Paper                271                  9
            Nickel               261                  6
            Chemical             215.7                6
            Misc Manufact        189.7                4
            Oil Refining         183                  4
            Steel                 73.8                3
            Mineral Process       66.9                3
            Health                60                  25
            Water                 20                  6
            Food                  13.2                10
            Building               7.8                7
            Education              7.6                3
            Recreation             2.9                11
            TOTAL                2203.2               133

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              WA is the greatest user of cogeneration by State/Territory accounting for 35% of
              operational capacity, 39% of electricity generation capacity and 32% of thermal
              production


            State                        Capacity (MW)                  No. of projects

            ACT                             0.1                         1

            NSW                          281.9                          18

            NT                           105                            1

            QLD                          413.5                          35

            SA                           215                            25

            TAS                           15.5                          2

            VIC                          409.7                          34

            WA                           762.5                          17

            TOTAL                        2203.2                         133

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            Steam turbine projects accounted for 58% of operational capacity by prime mover
            technology, 57% of electricity generation and 95% of thermal production


              Type                          Capacity (MW)                 No. of projects

              CCGT                          538                           4

              GT                            285.9                         19

              RCP                            77                           53

              FCELL                            0.2                        1

              ST                            1302                          56

              TOTAL                         2203.2                        133




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            Natural gas projects accounted for 56% of operational capacity by primary fuel, 66% of electricity generation and
            38% of thermal production. Renewable generation capacity accounted for 360.3MW of capacity, representing 16.4%
            of total generation capacity

               Fuel Type                    Capacity (MW)                 No. of projects
               Natural Gas                  1224.5                        71
               Bagasse                       332.1                        30
               Coal                          363.5                        8
               Waste Gas                     144.3                        6
               Oil                           109                          2
               Digester Gas                   19.1                        6
               Landfill Gas                    7.1                        2
               Waste Biomass                   2                          1
               LPG                             1.6                        7
               TOTAL                        2203.2                        133

               Renewable                     360.3                        40
               Fossil Fuel                  1842.9                        93
               TOTAL                        2203.2                        133


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            Non-Cogeneration – State/Territory
            State            Capacity (MW)               No. of projects

            ACT                 2                        2

            NSW              162.1                       8

            NT                65.4                       3

            QLD              501.5                       5

            SA                74.5                       6

            TAS                10                        1

            VIC                75.2                      13

            WA                569.3                      9

            TOTAL            1460                        47

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                 Non-Cogeneration – Prime Mover
                 Technology
            Type                 Capacity                       No. of projects
                                 (MW)
            CCGT                 415.9                          4

            GT                   553.5                          19

            RCP                  191.2                          53

            HT                      75                          1

            ST                   224.5                          3

            TOTAL                1460.1                         47

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            Non-Cogeneration – Primary Fuel

            Fuel Type              Capacity (MW)              No. of projects
            Natural Gas            1123.9                     12
            Landfill Gas               94.4                   21
            Water Hydro                75                     10
            Coal      Steam            96.8                   2
            Meth
            Waste Gas                  60                     1
            Oil                        10                     1
            TOTAL                  1460.1                     47


            Renewable                169.4                    31
            Fossil Fuel            1290.7                     16
            TOTAL                  1460.1                     47
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 1999 – 7 Cogen projects totalling 234MW & 10 non-Cogen, grid connected, distributed generation project totalling 295MW were
 committed and under construction. Renewable projects amounted to 13% of the overall total
Plant                            Location                       Type/Fuel                       MW Capacity
COGENERATON
FOSSIL FUEL
Worsley Alumina                  Worsley, WA                    GT/natural gas                  120
Worsley Alumina                  Worsley, WA                    ST/natural gas                   34
Bulwer Island                    Bulwer Is., QLD                CCGT/natural gas                 37
QLD Phosphate                    Mount Isa, QLD                 ST/natural gas                   20
Macquarie Uni                    Nth Ryde, NSW                  RCP/natural gas                   1
                                                                                                212
RENEWABLE
Visy Paper                       Tumut, NSW                     ST/woodwaste                     17
Energy Developments              Wollongong, NSW                RCP/munic.waste                   5
                                                                                                 22
TOTAL COGEN                      1460.1                         47                              234

NON-COGENERATON                  GRID CONNECTED                 DISTRIBUTED
FOSSIL FUEL                                                     GENERATION
Redbank Power Plant              Redbank, NSW                   ST/coal tailings                120
Ladbroke Grove Power             Ladbroke Grove, SA             ST/natural gas                   84
PlantCoast Power Plant
East                             Bairnsdale, VIC                GT/natural gas                   42
                                                                                                246
RENEWABLE
Pacific Power                    Burrinjuck, NSW                HT/water                         15
Stanwell Corporation             Ravenhoe, QLD                  WT/wind                          12
Pacific Power                    Blayney, NSW                   WT/wind                          10
Stanwell Corporation             Koomboloomba, QLD              HT/water                          7
Melbourne Water                  Werribee, VIC                  RCP/digester gas                  2.4
Water Corporation                Subiaco, WA                    RCP/effluent sludge               1.5
Energy Developments              Jacks Gully, NSW               RCP/landfill gas                  1
                                                                                                 48.9
TOTAL COGEN                                                                                     294.9
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Victorian support
    Within five years, it is conservatively
    expected that about 500 MW of
    Victoria's power will be fed into the
    SEC grid from private and public
    cogeneration and renewable energy
    projects, the equivalent to the output
    from one Loy Yang power station
    unit.
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COGENERATION
COMMERCIAL VIABILITY
    It would be irresponsible to give the
    impression that cogeneration offers
    a panacea to all energy problems.
    Commercially viable opportunities
    are still small in number. The main
    factors      influencing  commercial
    viability are dependant on site's heat
    to power ratio and equipment
    utilisation.
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GREENHOUSE EFFECT
    WORLD ENERGY CONSUMPTION 
    1945-90  ELECTRICITY
    CONSUMPTION IN Vic  25 FOLD.
    SIMILAR TRENDS IN OTHER
    PLACES. NOT POSSIBLE TO
    SUSTAIN SUCH GROWTH
     CONSERVATION REQUIRED

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GREENHOUSE EFFEST IS A
   SERIOUS PROBLEM
    AUSTRALIA  MAJOR
    CONTRIBUTOR TO GREENHOUSE
    GASES
       6 TIMES MORE THAN THE WORLD
        AVERAGE RATE
       GREATER THAN BOTH JAPAN & USA
       VICTORIA HAS AN EVEN HIGHER PER
        CAPITA OUTPUT


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  GOAL SET FOR 20% REDUCTION
    IN CO2 EMISSION BY 2010.
    IN GLOBAL SENSE:
    ELECTRICITY CONTRIBUTES 25%
    OF ALL CO2 EMISSIONS
    REPRESENTING 14% OF ALL
    GREENHOUSE GASES GENERATED
    AND VICTORIA IS RESPONSIBLE
    FOR 0.1%.

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               ALTERNATIVES:
    COGENERATION & RENEWABLE
    ENERGY
    REMOTE AREA POWER SUPPLIES
    ENERGY AUDITS
           COGENERATION -- PROVEN
            REDUCTION OF GREENHOUSE GAS
            EMISSION REDUCTIONS


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CALCULATIONS OF POTENTIAL
EMISSION SAVINGS DEPENDS ON:
                HOW MUCH COGEN IS ASSUMED TO BE
                POSSIBLE
                TYPE OF GENERATION BEING DISPLACED BY
                COGENERATION
                HEAT TO POWER RATION AND CAPACITY
                FACTOR OF THE COGENERATORS
    NO AGREED UPON ESTIMATES OF THE
    TECHNICAL AND ECONOMIC POTENTIAL
    FOR CONERATION IN AUSTRALIA


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AVERAGE EMISSIONS SAVINGS WILL
   BE ASSUMED SUCH THAT:

        * RECIPROCATING ENGINE
        COGENERATORS DISPLACES 910
        gCO2/kWh

        * & GAS TURBINE COGENERATORS
        DISPLACES 870 gCO2/kWh



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ASSUME GAS TURBINE COGEN
PLANT TO OPERATE AT
CAPACTITY FACTOR OF 80% AND
RECIPROCATING ENGINE COGEN
PLANT TO OPERATE AT
CAPACTITY FACTOR OF 40%
HEAT TO POWER RATIO = 1.5


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500 MW OF GAS RECIPROCATING
COGENERATOR OPERATION AT A
CAPACITY FACTOR OF 40%, THE ANNUAL
REDUCTION IN CO2 EMISSIONS IS
CALCULATED AS FOLLOWS:

500,000 kW X 8760 h X 40% X 910 g/kWh = 1,600 kt




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1000 MW OF GAS TURBINE
COGENERATOR OPERATING AT A
CAPACITY FACTOR OF 80%:
1,000,000 kW X 8760 h X 80% X 870 g/kWh = 6,100 kt
ONLY CO2 EMISSIONS CONSIDERED!
ANALYSIS SHOULD CONSIDER CH4 &
NOx .
THEREFORE CO2 EMISSION
WILL CHANGE BY FEW %.
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Species         Gas      Gas                  Gas                 Black    Brown
              turbine   engine               boiler               coal      coal
               g/kWh                                             power     power
                                                                 station   station
 CO2           520-       420-                 220                900-     1,160-
               620        650                                     990      1,400

 NOx          0.5-0.6 4-20                    0.26                4-5      6.8-6.9
 CO           0.3-0.6 1.5-2.5                 0.07               0.09-     0.1-0.2
                                                                 0.16
CH4           0.1-0.2 1.5-2.5                 0.07               0.25-     0.03-
                                                                 0.27      0.05
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            CO2 SAVINGS FROM
            COGENERATION
           400 kW GAS TURBINE
     CO2 SAVINGS DUE TO DISPLACED
    ELECTRICITY ARE THE DIFFERENCE
                 BETWEEN
   COAL FIRED POWER STATION EMISSION
          950 g/kWh (BLACK COAL)
     GAS ENGINE EMISSION 530 g/kWh
          NET           420 g/kWh

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   HEAT TO POWER RATIO = 1 (TYPICAL
         GAS FIRED COGENERATOR)
 CO2 SAVINGS DUE TO DISPLACED BOILER
     FUEL ARE FOR 400 X 1.0 = 400 kW
     (THERMAL) OF HEAT              CO2
  EMISSIONS FOR GAS FIRED BOILER ARE
       220 g/kWh (THERMAL) AND THE
   COGENERATOR PLANT GENERATES NO
   ADDITIONAL CO2 IN MEETING THE HEAT
              REQUIREMENTS.
  THEREFORE TOTAL CO2 SAVING IS THUS
 (420 + 220 X 1.0) = 640 g/kWh (ELECTRICAL)

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GAS FIRED COGEN CAPACITY

Country       Cogen                  Generator            Cogen as
              capacity               capacity             % of the
              (MW)                   (MW)                 total
Australia     2082                   41000                5.1%
Japan                                180000               6.5%
UK                                   45000                7.0%
USA                                  745600               8.0%
Netherlands                          15900                29%

Spain                                28420                6.5%
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