HomeMy WebLinkAboutKotzebue HR and Ammonia Power Cycle AppKotzebue Electric Association
November 10th, 2008
Proposal for
Renewable Energy Fund
Alaska Energy Authority Grant
Ammonia Power Cycle Waste Heat Recovery System
The purpose of this proposal is to reduce diesel consumption for electricity by 93,000
gallons a year and diesel consumption for heating by 90,300 gallons a year by taking
advantage of all available waste heat emitted from Kotzebue Electric’s three Electro
Motive Diesel turbines. This will be done by installing heat recovery units on the exhaust
stacks. The thermal energy captured in the exhaust stacks and jacket water system will
circulate through an Ammonia Power Cycle, APC, to generate 162kWe and from there
supply heat to a district heating system and Absorption Ice Maker. The existing
absorption chiller consists of outdated technology so Energy Concepts will simultaneously
update this system while installing the APC.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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TABLE OF CONTENTS
1. Applicant Information ______________________________________________________________ 4
1.1. Applicant Point of Contact _________________________________________________________ 4
1.2. Applicant Minimum Requirement __________________________________________________ 5
2. Project Summary __________________________________________________________________ 6
2.1. Project Type ____________________________________________________________________ 6
2.2. Project Description ______________________________________________________________ 6
2.3. Project Budget Overview __________________________________________________________ 7
2.4. Project Benefit __________________________________________________________________ 9
2.5. Project Cost & Benefit Summary ____________________________________________________ 9
3. Project Management Plan __________________________________________________________ 11
3.1. Project Manager ________________________________________________________________ 11
3.2. Project Schedule________________________________________________________________ 15
3.3. Project Milestones ______________________________________________________________ 15
3.4. Project Resources _______________________________________________________________ 15
3.5. Project Communications _________________________________________________________ 20
3.6. Project Risk ____________________________________________________________________ 20
4. Project Description and Tasks _______________________________________________________ 21
4.1. Proposed Energy Resource _______________________________________________________ 21
4.2. Existing Energy System __________________________________________________________ 26
4.3. Proposed System _______________________________________________________________ 28
4.4. Proposed New System Costs ______________________________________________________ 37
5. Project Benefit ___________________________________________________________________ 45
6. Grant Budget ____________________________________________________________________ 46
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 3 of 48
LIST OF FIGURES
Figure 1: Brad Reeve Bio _______________________________________________________________ 12
Figure 2: Katherine Keith Bio ___________________________________________________________ 14
Figure 3: Craig Thompson Bio ___________________________________________________________ 17
Figure 4: Don Erickson Bio _____________________________________________________________ 19
Figure 5: The Chena Chiller ORC _________________________________________________________ 22
Figure 7: ElectraTherm schematic depicting an ORC _________________________________________ 23
Figure 6: ElectraTherm's Green Machine __________________________________________________ 23
Figure 8: KEA Power Plant One Line ______________________________________________________ 27
Figure 9: Cain HRSR ___________________________________________________________________ 29
Figure 10: Cain HRSR Schematic _________________________________________________________ 30
Figure 11: Cain HRSR Assembly Schematics _______________________________________________ 31
Figure 12: Cain HRSR Performance Data __________________________________________________ 32
Figure 14: Kotzebue Load Profile – 2004 __________________________________________________ 34
Figure 13: Typical Hourly Electrical Output from Diesel Plant _________________________________ 34
Figure 15: KEA Ammonia Power Cycle Flow Chart __________________________________________ 36
Figure 16: KEA Board Resolution ________________________________________________________ 48
LIST OF TABLES
Table 1: Cost Share ............................................................................................................................... 7
Table 2: Construction Cost Estimate ..................................................................................................... 8
Table 3: Project Quarterly Schedule .................................................................................................... 15
Table 4: Projected Available Thermal Energy ....................................................................................... 33
Table 5: Thermal Energy Calculations Based on Demand on Diesel Plant ............................................. 35
Table 6: Budget Form .......................................................................................................................... 46
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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1. Applicant Information
Kotzebue Electric Association
Po Box 44
Kotzebue, Alaska
99752
Phone: (907) 442-3491
Fax: (907) 442-2482
1.1. Applicant Point of Contact
Katherine Keith
Project Manager
Po Box 44
Kotzebue, Alaska
99752
k_keith@kea.coop
Work: (907) 442-3491
Cell: (651) 332-0584
Fax: (907) 442-2482
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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1.2. Applicant Minimum
Requirement
1.2.1. As an Applicant, we are an electric utility holding a certificate of public
convenience and necessity under AS 42.05
1.2.2. Attached to this application is formal approval and endorsement for its project by its
board of directors, executive management, or other governing authority. If a
collaborative grouping, a formal approval from each participants governing
authority is necessary.
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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2. Project Summary
2.1. Project Type
This is an efficiency/waste heat recovery project which will capture waste heat
from the jacket water and exhaust from the existing diesel turbines and in doing
so will generate electricity using an ammonia power cycle. The remaining
thermal energy will be utilized in an existing district heating system.
2.2. Project Description
In order to effectively reduce the amount of diesel consumption in KEA’s power
plant, thermal energy must be utilized to the fullest. In order to do so, heat from
both the jacket water system and the exhaust heat should be captured. KEA
currently utilizes roughly one third of the available thermal energy which
originates from the jacket water system. The exhaust will be captured via HRSR
stack heat exchangers, manufactured by Cain Industries. Waste heat absorbed
into the existing 50/50 glycol loop can generate net 162 kW electricity from an
Ammonia Power Cycle, designed by Energy Concepts. The recovered heat will
also be utilized in an updated ammonia absorption ice maker and an extended
district heating system.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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2.3. Project Budget Overview
The total project cost is $1,215,627. Energy Concepts, as a project partner, has
committed to $300,000 in material and in kind contributions. Kotzebue Electric
Association has committed to $20,000 in administrative in-kind contributions. The
remaining $915,627 is the requested amount in this grant funding round.
Table 1: Cost Share
Energy Concepts Absorption Chiller Upgrade In Kind $65,000
Kotzebue Electric Association Administration and Engineering In Kind $20,000
COST SHARE TOTAL $300,000
Total Project Cost: $1,215,627 Cost Share Total: $300,000 Percentage Cost Share: 25%
Energy Concepts Ammonia Cycle Power Plant In Kind $215,000
Kotzebue Electric Association, Inc.
Ammonia Power Cycle & Waste Heat Recovery System
Cost Share 11/10/08
Organization Cost Share Item Type Amount
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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Table 2: Construction Cost Estimate
Ammonia Power Cycle Plant $25,000
District Heating $15,000
SUBTOTAL $55,000
Ammonia Power Cycle Plant $10,000
SUBTOTAL $50,000
Administration $10,000
Three Cain HRSRs $234,052
Installation (20% Equipment Cost) $47,000
Shipping (20% Equipment Cost) $47,000
SUBTOTAL $338,052
Administration $10,000
Ammonia Power Cycle Plant $225,000
Electronics/SCADA Integration $100,000
Balance of Plant $50,000
1 MW Radiator $100,000
Installation (20% APC Cost) $43,000
Shipping (20% Equipment Cost) $75,000
SUBTOTAL $603,000
Equipment $65,000
Installation (20% Equipment Cost) $13,000
Shipping (20% Equipment Cost) $13,000
SUBTOTAL $91,000
Administration $10,000
Equipment $14,300
Installation $30,000
Shipping $14,275
SUBTOTAL $68,575
SUBTOTAL $10,000
$1,215,627
Kotzebue Electric Association, Inc.
Construction Cost Estimate
Task One: Design
Stack Heat $15,000
Task Two: Permitting
Task Three: Stack Heat Recovery
Stack Heat $40,000
TOTAL PROJECT COSTS
Task Four: Ammonia Power Cycle Plant
Task Five: Ice Maker Upgrade
Task Seven: Reporting
Combined Projects $10,000
Task Six: District Heating System Expansion
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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2.4. Project Benefit
The proposed project will help stabilize energy costs, providing long term socio-
economic benefits to Kotzebue.
Alaska is a large state geographically with a very small population. In terms of
energy this means huge distances between utilities with minimal loads. Most of
Alaska is not accessible by roads. Access for most rural villages is by air or water,
making energy costs extremely high – as much 250% above the national
average. In 2007, the average cost of power in Anchorage-Fairbanks-Juneau for
residential customers was 10 cents/kWh, whereas in rural communities, the
average residential cost of power is $0.42/kWh for 2007. In Alaska, ninety utilities
service 187 rural communities. Approximately 70,000 people, or 13% of the state’s
population, live in communities whose primary source of electricity is diesel fuel.
These communities are characteristically small (populations of 400 or less), remote
and accessible only by air or by seasonal barge service. Efforts need to continue
attempts to alleviate the burden in these communities of continued dependence
on diesel fuel.
In Kotzebue, 2008 residential power rates increased to $.48/kWh from $.39/kWh in
2007. The high cost of energy is forcing residents to choose between leaving
village life behind in order to relocate to larger cities in search of affordable living.
The anticipated benefits of this project are many; primary among these is
reducing the negative impact of the cost of energy by providing a renewable
energy option and increasing overall diesel efficiency. This technology will be
able to be utilized in other villages across Alaska. Once successfully installed and
demonstrated in Kotzebue, the way will be paved for others.
2.5. Project Cost & Benefit
Summary
2.5.1. Total Project Cost:
$1,215,627
2.5.2. Grant Funds Requested in this Application:
$915,627
2.5.3. Other Funds To Be Provided:
$300,000
2.5.4. Total Grant Costs (Sum of 2.5.2 and 2.5.3):
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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$1.215,627
2.5.5. Estimated Benefit (Savings):
$950,317/year ( $406,410-value of displaced electricity; $543,907- value of thermal
energy1)
1 Based upon October 2008 prices of $6.00/gallon
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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3. Project Management Plan
3.1. Project Manager
KEA will be responsible for producing and maintaining all project schedules and
budgets and handling all major procurements. Brad Reeve, KEA General
Manager, and Katherine Keith, KEA Project Manager, will oversee all engineering,
procurement and construction and will coordinate all system installations and
integration. Once systems are installed, KEA will ensure that operations and
maintenance training is provided to personnel.
KEA has a staff of 15 full time employees including the General Manager, a
mechanical engineer, power plant operators, diesel mechanics, electrical
technicians, trained linemen, and administrative staff. Brad Reeve, KEA General
Manager since 1988, has extensive business, construction, and management
experience of projects and programs in rural Alaska. Mr. Reeve has overseen the
installation of major power generation units as well as power distribution
upgrades. He has also managed the installation multiple wind turbine generators
and their integration into the KEA utility power grid. Katherine Keith, KEA Project
Manager, has extensive background in Renewable Energy Engineering.
In the application of wind energy technology, KEA has become a regional center
of engineering and technical expertise and often provides other small village
utilities with support and training.
The vitae of key personnel are included below.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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3.2. Project Schedule
Table 3: Project Quarterly Schedule
3.3. Project Milestones
Project Design Completion 3/1/09
Piping and Mechanical Installation 7/1/09
APC Delivery 8/1/09
HRSR Delivery 8/1/09
Electrical and Instrumentation Installation 10/1/09
Commissioning 11/1/09
3.4. Project Resources
3.4.1. Personnel/Partners
Thompson Engineering
KEA also has long-time associations with contracting firms who provide
engineering, legal, and financial services to KEA. One such company is
Thompson Engineering Co., Inc. Thompson Engineering has been KEA’s engineers
of record since 1989. Thompson Engineering has extensive experience in power
generation, transmission, and distribution; power studies and electric utility
planning; industrial/commercial power distribution and control; pipelines; oil and
fuel facilities; waste heat recovery; generators; construction management in
Arctic environments; contract engineering management; etc. Thompson
Engineering has a staff of three employees including two professional electrical
engineers, and one administrative/technical assistant. Thompson Engineering is
located at 721 Sesame St. Suite 2B, Anchorage, Alaska 99503, Phone: 907-562-
1552, Fax: 907-562-1530.
Stack Heat Ammonia Power Cycle Ice Maker District Heating
Task 1Design Q1 Q1 Q1 Q1
Task 2Permitting Q1/Q2 Q1/Q2 n/a n/a
Task 3‐6 Procurement Q2 Q2 Q2 Q2
Task 3‐6 Installation Q3 Q3 Q3 Q3
Task 7 Reporting Q4 Q4 Q4 Q4
Kotzebue Electric Association
Project Quarterly Schedule
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Renewable Energy Fund Grant
November 10th 2008
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3.5. Project Communications
KEA will schedule monthly meetings with Energy Concepts and Cain Industries to
ensure proper communication is in place. KEA will work closely with them to
make sure that the project schedule is followed and that high quality products
are delivered. KEA will provide quarterly reports, and any additionally requested
reports to the Alaska Energy Authority (AEA). KEA will submit reports directly to
AEA. In addition public presentations on project progress will be given at city
meeting and conferences. Informational brochures and other publications will
be produced for the general public.
3.6. Project Risk
The risks associated with this project are technological in nature. Both stack heat
recovery and power generation using waste heat are newer technologies.
However, both companies- Energy Concepts and Cain Industries- have a proven
track record in their respective fields. KEA is confident that a decision to work
with these companies is well-founded. The key to facing this risk will be in
forecasting where these challenges exist and having a strongly networked team
of experts who are capable of providing pertinent advice- if needed.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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4. Project Description and Tasks
4.1. Proposed Energy Resource
Due to the high cost of thermal energy ($43/MMBtu), Kotzebue Electric
Association already has an extensive waste heat recovery system in place. KEA
utilizes two engine jacket cooling systems. The primary engine jacket water
system from each engine is tied to a common loop system where the heat is
captured in plate-fin heat exchangers. When any of the EMDs is running glycol
circulates at roughly 1100 gpm. When a Caterpillar Gen Set is running an
additional 350 gpm is being circulated. The entire system consists of
approximately 25,000 gallons of a 50/50 glycol mix.
Air box heat is dissipated by a four pass after-cooler system for the three EMD
710s. The heat is tied into a common radiator loop system. This is a low
temperature system used to reduce NOx emissions on the EMDs.
The jacket water system supplies heat to the KEA power plant, shops and office
buildings, the city water lines, and to an absorption chiller designed by Energy
Concept’s. KEA’s absorption chiller is powered by 165F jacket water from the
diesel generators. The system utilizes a three pressure ammonia water absorption
cycle. This system is capable of producing 10 tons of flake ice a day.
The average daily thermal load is 15,000 kWh/Day. This is broken down into daily
average as follows:
District Heating
Office Building: 977 kWh/day
Power Plant: 4088 kWh/day
Warm Storage: 2064 kWh/day
Linemen Shop: 444 kWh/day
Absorption Chiller: 34 kWh/day
City Water System: 7307 kWh/day
The diesel generators produce roughly over 19,000,000 kWh/yr of thermal energy
while KEA consumes 5,500,000 kWh/yr. This leaves 13,500,000 kWh/yr of available
thermal energy from engine jacket water alone. Utilizing the stack heat will
provide an additional 15,000,000 kWh/yr of thermal energy.
To summarize KEA currently utilizes 5,500,000 kWh/yr and has a remaining
28,500,000 kWh/yr to generate electricity or expand the district heating system.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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Waste Heat Power Plant Manufacturers
Numerous manufactures have designed units which will generate electricity using
a certain temperature differential. The heat source could geothermal water,
exhaust heat, or solar panels for example. The heat sink could be a source of
cold water or air. A few manufacturers are detailed below. KEA chooses to
work with Energy Concepts because of their proven track record of success and
follow through in Alaska, especially bush Alaska. UTC, while capable of providing
an excellent unit, was unable to provide KEA with a quote. ElectraTherm has not
been able to successfully complete a pilot project.
United Technologies Corporation
United Technologies designed the 225kW turbine in order to specifically meet the
needs of smaller remote communities. It extracts heat from an available source
and generates electrical power using an Organic Rankine cycle.
The turbine uses readily available Carrier Refrigeration commercial centrifugal
chiller components and hardware in order to reduce upfront capital costs and
increase availability of system components in rural settings. The working fluid is a
non-chlorinated R245fa which circulates through a closed cycle system within the
power plant. Shell and tube exchangers are used for the evaporator and
condenser.
The benefits of this system include:
Zero-fuel input costs
Zero carbon footprint
Remote monitoring is possible
Units are inter-connectable
Low electricity generation cost
One PureCycle® 225 is capable of supplying 1870MWhrs of power and requires
an input of 8000btu/hour to provide a net power of 225kW.
Figure 5: The Chena Chiller ORC
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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United Technologies successfully installed two 200kW Chena Chillers in August
2007. These units get thermal energy from the local geothermal resource and
use a nearby river as a heat sink. A 120F temperature differential is required to
sustain power generation. More specifically, Chena Hot Springs uses:
Heat source: Tin = 164 °F Tout = 130 °F Flow rate: 530 gpm
Heat sink: Tin = 40 °F Tout = 50 °F Flow rate: 1614 gpm
ElectraTherm, Inc.
Like United Technologies, ElectraTherm uses Organic Rankine Cycle technology
to generate electricity using waste heat. Where UTC only produces one 225 kW
unit, ElectraTherm systems are scalable and modular: beginning as small at 30
kW and can be as large as 500 kW. This would allow this technology to be used
to help small rural Alaskan villages reduce diesel
consumption and the cost per kWh.
Like UTC there are no emissions and no fuel inputs
other than heat. ElectraTherm uses off-the-shelf
components in a simple design to reduce cost and
increase system availability. Figure 11 depicts
ElectraTherm’s schematic which is available on their
brochure.
Figure 7: ElectraTherm schematic depicting an ORC
Figure 6: ElectraTherm's Green
Machine
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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4.2. Existing Energy System
4.2.1. Basic Configuration of Existing Energy System
The diesel generator plant is located about 4.5 miles from the wind turbine site,
with an existing feeder line (voltage 12.5 kV, 3 phase) capable of carrying up to
2.5 MW. Power for the KEA grid is generated by the diesel generators at 4,160V
and stepped up through transformers to 12,500 VAC, three-phase, three-wire for
distribution throughout the town.
The existing power grid has the following electrical characteristics:
Grid Voltage: 12.5 kV
Frequency: 60 Hz ± 0.5 Hz
Efficiency: 14.5 kWh/gal
Power Factor: 0.92 lagging
Average load: 2500 kW
Maximum Load: 3700 kW
Minimum Load : 1700 kW
Diesel Powered Generators:
Unit 10: 3080 kW EMD 710 series (20 cylinder)
Unit 9: 2600 kW EMD 645 series (16 cylinder)
Unit 14: 2800 kW EMD 710 series (16 cylinder)
Unit 7: 1025 kW 3516 series Cat (16 cylinder, 1200 rpm) Restricted to 1000kW
Unit 11: 1025 kW 3512 series Cat (12 cylinder, 1800 rpm) Restricted to 900kW
Unit 12: 1025 kW 3512 series Cat (12 cylinder, 1800 rpm) Restricted to 810kW
Wind Turbines
15 Entegrity Turbines: 65kW each
1 North Wind 100: 100kW each
1 Vestas: 65 kW each
The generating plant one line diagram is provided below.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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Figure 8: KEA Power Plant One Line
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4.3. Proposed System
4.3.1. System Design
Stack heat recovery has not been met with much success in Alaska. To date
there is only one system, Red Dog Mine, with uses stack heat successfully. Up until
now there have been mechanical problems with the heat exchangers
themselves which have caused damage to the power plant, such as corrosion.
However, technological advances have addressed these problems effectively
making stack heat recovery a viable option.
Kotzebue Electric Association has been working with Cain Industries to install the
appropriate units in the KEA power plant. Exhaust stack temperatures out the
stack reach approximately 500-600F. This is lower than is typically expected due
to the presence of EMD’s aftermarket after cooler which is required by the EPA for
emission reduction. A minimum of 300F is needed to avoid the formation of
sulfuric acid in the stacks.
One independent horizontal heat recovery unit will be placed in each of the
three EMD 710 stacks. This will give KEA a total of three units. The recovered heat
will be transferred to the 50/50 glycol/water loop via heat exchanger. Cain’s
HRSR units feature a full port exhaust gas bypass with blanket wrap insulation and
stainless steel finned tubes which have an access door for each of inspection and
cleaning. There is a Liquid Temperature Control Assembly which automates the
temperature of the 50/50 glycol/water loop by modulating the exhaust bypass.
The HRSR will take a liquid flow rate of 250 gpm which will be split off from the
existing jacket water flow of at least 1100 gpm. Running the EMDs year round at
85% load will provide KEA with 12,649 MMBtus. This is equivalent to $543,907
savings per year (at $43/MMBtu2).
2 Based on October 2008 prices of $6.00/gallon
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Renewable Energy Fund Grant
November 10th 2008
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Figure 9: Cain HRSR
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Figure 10: Cain HRSR Schematic
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Figure 11: Cain HRSR Assembly Schematics
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Figure 12: Cain HRSR Performance Data
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The thermal energy source for the APC will be the engine jacket cooling system.
The heat in the 50/50 glycol/water mix after cycling through the engine radiator,
after cooler, and exhaust stack heat will pass through the APC. The cooling
supply for the APC will be provided in the winter by the city water system and a 1
MW air cooler. In the summer the cooling will be provided by the existing BAC
evaporative cooler. This will increase efficiency and optimize operational time.
One of the city’s water loops is routed through the KEA power plant. This system
extracts heat from the jacket water system to maintain the city loop potable
water. This system is currently used during the winter months to keep the four city
water loops at approximately 65 F from approximately November – April. KEA will
work with the city to utilize the water system in the summer months to act as the
heat sink for the APC generation system. Winter time temperatures are often sub
zero so there will be no difficultly generating the necessary temperature
differential.
KEA’s existing generators can produce an average of 14.5 kWh per gallon of
diesel. As of August 2008, KEA purchased diesel at $4.37/gallon. Energy
Concept’s Absorption Power Cycle is capable of producing a net 162 kW.
Assuming an availability of 95% one APC would produce 1,348MWh which could
save approximately 93,000 gallons of fuel per year. This would equate to an
annual savings of $406,410. The APC requires a thermal input of 1800 kWth (6.14
MMBtu/hr) for optimum efficiency. There is sufficient thermal energy in KEA’s
existing system which produces around 60,000 MMBtu/year, while KEA currently
uses only 13,001 MMBtus/year.
Table 4: Projected Available Thermal Energy34
As can be seen by Table 4, while diesel generation is above 1500 kW there will be
sufficient energy to allow the APC to operate at optimum efficiency. Even during
periods of peak wind the diesel generators rarely produce less than 1500 kW. The
below graph shows there is less than 100 hours/year when the city load is less than
1500 kW.
3 Jacket water calculation based on theoretical calculations.
4 Stack heat calculations based on modeling provided by Cain Industries.
KEA Available Thermal Energy at Given Electrical Loads
Generation Jacket Water Stack Heat Total
kW MMBtu/hr MMBtu/hr MMBtu/hr
1000 3.41 0.7 4.11
1500 5.1 0.9 6
2000 6.82 1.3 8.12
2500 8.5 1.44 9.94
3000 10.2 1.58 11.78
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November 10th 2008
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Figure 14: Kotzebue Load Profile – 2004
Figure 13: Typical Hourly Electrical Output from Diesel Plant
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November 10th 2008
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Table 5: Thermal Energy Calculations Based on Demand on Diesel Plant
The above table lays out the available electrical loads and the correlating thermal
energy output based up on the calculations from Table 4. The glycol which exits the APC
will be at 165F which is more than sufficient to then to meet the demand from the district
heating system.
Average Electrical
Load
Thermal Energy
Output
Existing Thermal
Demand
Availability for
APC
kW MMBtu/hr MMBtu/hr MMBtu/hr
Jan 2700 10.86 3.13 7.73
Feb 2900 11.5 2.59 8.91
March 2600 10.25 2.65 7.60
April 2250 9.03 2.03 7.00
May 2400 9.75 0.58 9.17
June 2250 9.03 0.28 8.75
July 2250 9.03 0.18 8.85
Aug 2250 9.03 0.24 8.79
Sept 2250 9.03 0.34 8.69
Oct 2250 9.03 0.81 8.22
Nov 2500 9.94 2.13 7.81
Dec. 2800 11 3.08 7.92
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November 10th 2008
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Figure 15: KEA Ammonia Power Cycle Flow Chart
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After we have captured all potential heat and generated all potential electricity,
the remaining thermal energy will be put into an expanded district heating
system. This will include, but is not limited to, a new IRA building and a city
operated swimming pool. KEA has already utilized roughly one third of the
available thermal energy in the existing district heating system.
4.3.2. Land Ownership
The land sited for the APC is owned by Kotzebue Electric Association and will not
be the cause for any conflict, delay, or additional expense.
4.3.3. Permits
Alaska Department of Environmental Conservation - Air Quality Permit
Installing exhaust stack heat recovery units will alter the exit temperature of the
stack and reduce it from roughly 600F to 325F. KEA is restricted by our current air
permit to maintain a temperature of at least 250F in order to avoid the formation
of sulfuric acid in the stack. Each stack will need to be source tested to ensure
that there is not a pollutant emission increase.
4.3.4. Environmental
There are no associated environmental obstacles seen with this technology.
4.4. Proposed New System Costs
4.4.1. Project Development Cost
$1,215,627
4.4.2. Project Operating and Maintenance Costs
$.015/kWh5 which projects out to an annual cost of $20,222.
4.4.3. Power Purchase/Sale
n/a
4.4.4. Cost Worksheet
5 Projected by Gwen Holdmann with reference to Chena Hot Spring’s United
Technologies 225 kW Organic Rankine Cycle Unit.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 38 of 48
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Waste Heat from Diesel Generators
Unit depends on project type (e.g. wind speed, hydropower output, biomass fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the rail belt grid, leave this section blank)
i. Number of generators/boilers/other 6
ii. Rated capacity of generators/boilers/other (#7-1,135 kW); (#15-2,865 kW); (#10-3,080 kW) (#11-1,000 kW);
(#12-850 kW); (#14-2,865 kW)
iii. Generator/boilers/other type (#7-CAT 3516); (#15-EMD 16-710); (#10-EMD 20-710) (#11-CAT 3512);
(#12-CAT 3512); (#14-EMD 16-710)
iv. Age of generators/boilers/other (#7-1987); (#15-1983); (#10-1992) (#11-1992);
(#12-1992); (#14-1994)
v. Efficiency of generators/boilers/other 14.5 kWh/gallon
b) Annual O&M cost
i. Annual O&M cost for labor $36,390 in ’07
ii. Annual O&M cost for non-labor $43,142 in ’07
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] 21,000,000 kWh per year
ii. Fuel usage (if system is part of the Rail belt grid, leave this section blank
Diesel [gal] 1,400,000 gallons per year
Other
iii. Peak Load 3700 kW
iv. Average Load 2500 kW
v. Minimum Load 1700 kW
vi. Efficiency 14.5 kWh/gallon
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] n/a
ii. Electricity [kWh] n/a
iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] n/a
vi. Other n/a
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 39 of 48
3. Proposed System Design
a) Installed capacity 162 kWe and 423 kWth
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu] 12,649 MMBtu
ii. Electricity [kWh] 1,348,164 kWh
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
4. Project Cost
a) Total capital cost of new system $1,215,627
b) Development cost
c) Annual O&M cost of new system $20,222
d) Annual fuel cost n/a
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 93,000 gallons
ii. Heat 90,350 gallons
iii. Transportation
b) Price of displaced fuel $950,317
c) Other economic benefits n/a
d) Amount of Alaska public benefits n/a
6. Power Purchase/Sales Price
a) Price for power purchase/sale n/a
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 7.8 over a ten year project period
Payback 1.3 years
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 40 of 48
4.4.5. Business Plan
Kotzebue Electric Association is a known wind industry leader whose knowledge
has been relied upon for operations and maintenance on renewable energy
systems. KEA already has in place standard protocols for operations and
maintenance which have been successful in Kotzebue. To further guarantee
optimum performance KEA will create a business plan using templates created
by the Alaska Department of Commerce and Economic Development to
enhance KEAs existing business plan.
4.4.6. Analysis and Recommendations
Kotzebue Electric Association has created a Cost of Energy Reduction Plan,
CERP, which collectively addresses many aspects of our current energy crisis. The
CERP is detailed here to provide a more complete picture of how the proposed
project fits into KEAs ‘big picture’.
4.4.6.1. Increased Wind Capacity
4.4.6.1.1. Objective
Kotzebue Electric Association’s current wind plant has an installed
capacity of 1.14MW which provides the city of Kotzebue with 1.2 million
kilowatt-hours. This meets roughly 8% of the community’s electrical
demand and displaces an average of 140,000 gallons per year. KEA is
planning to increase the installed capacity to 4.59 MW by fall of 2010 in
order to further reduce diesel dependency.
4.4.6.1.2. Benefits
There is no doubt of the urgency to reduce diesel dependency.
Kotzebue’s current load averages 2.7 MW. A 4.59 MW wind plant will
exceed the electrical demand of Kotzebue. In addition to electricity,
thermal energy needs also to be addressed. When the wind allows the
turbines to operate near capacity excess electricity, will be ‘dumped’ into
thermal loads which can then be used for space and water heating in the
homes and businesses of Kotzebue. The overall goal will be to drastically
reduce diesel consumption both for electric and thermal generation.
4.4.6.1.3. Scope of Work:
Adding 3.25 MW of wind will be done by installing five Fuhrlander 650kW
turbines. This will be done in conjunction with the utilities of Nome and
Unalakleet. Larger turbines need to be purchased in batches of ten or
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 41 of 48
more. Combining efforts with these utilities will reduce the overall cost of
shipping, of both the necessary crane and turbines. KEA would like to
begin construction and foundation work in the summer of 2009. The wind
turbines have a lead time of 12 months, allowing for turbine erection in the
spring of 2010.
4.4.6.1.4. Challenges:
At most KEA currently has 50% wind energy on the grid system at any one
time. This allows for a stable and reliable grid. A system which has over
100% wind energy cannot function without considerable creative
measures. One of which is the installation of a VRB Flow Battery which is
designed to absorb any surges caused by wind gusts and provide the
needed frequency control. These design issues are being addressed.
4.4.6.2. Vanadium Red-Ox Flow Battery
4.4.6.2.1. Objective
The installation of a Vanadium Red-Ox Flow Battery Energy Storage
System (VRFB) will increase voltage stability, increase the efficiencies of
operating diesel generators, and capture excess wind energy during
off-peak hours.
4.4.6.2.2. Benefits
The VRFB will benefit KEA’s existing system in three specific ways. Diesel
turbines run most efficiently when operating to the fullest capacity.
Charging the battery, when the generator would otherwise operate
below ideal conditions, will increase overall system efficiency. Secondly,
KEA runs one EMD year round and supplements this with a second CAT
generator when the load demands it. Instead of starting the second
generator, the VRFB will supply the electricity. Normally, the CAT gen set is
run approximately 3,200 hrs per year. This will be reduced to less than 350
hrs per year with the VRFB online. This results to a direct reduction in diesel
consumption. Thirdly, in order to realize the benefits of increasing the level
of wind penetration in Kotzebue, energy storage MUST be utilized. The
simple payback for the VRFB is under three years.
4.4.6.2.3. Scope of Work
Phase one, Initial Design and Engineering, of this system has been funded
and will be completed on October 31st, 2008. Phase Two, summer 2009,
will consist of the construction of an Energy Storage Facility and the
installation of a 600kW/1800kWh system. Phase Three will continue in 2010
and will be sized for the increased wind capacity. The sizing of this system
will most likely be 900kW/1800kWh although the modeling is part of Phase
One which is currently being completed.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 42 of 48
4.4.6.2.4. Challenges
KEA doesn’t expect any major obstacles. However, any newer
technology will have issues to resolve. VRB’s history of proactive O & M
with the University of Alaska, Fairbanks Arctic Energy Technology and
Development Laboratory enables KEA to be confident in VRB’s
commitment to a project in Kotzebue. Communication lines are very
open between project partners and this will continue as construction
proceeds.
4.4.6.3. Waste Heat Recovery and Power
4.4.6.3.1. Objective
The installation of a stack heat recovery unit and an ammonia absorption
cycle waste heat power plant will allow KEA to fully utilize diesel fuel
whenever the diesel turbines are in operation. Only one third of a fuel’s
energy content is used for electricity generation. The remaining two thirds
are turned into thermal energy or ‘waste heat’. KEA currently utilizes one
third in its district heating system, water heating for the city’s water line,
and in the absorption chiller which generates ice for the commercial
fishing industry. The remaining third exits the exhaust stack. A heat
exchanger can be installed in the stack heat to capture this thermal
energy. Energy Concepts has designed a turbine which will generate
150kW from that ‘waste heat’.
4.4.6.3.2. Benefits
The capital cost of this equipment is low relative to the benefits it
provides. The simple payback for a waste heat project of this scope is
under 2 years. This technology could be of great benefit to any village
using diesel turbines.
4.4.6.4. Scope of Work
Only one third of a fuel’s energy content is used for electricity generation.
The remaining two thirds are turned into thermal energy or ‘waste heat’.
KEA currently utilizes one third of that ‘waste heat’ in its district heating
system, water heating for the city’s water line, and in an absorption chiller
(designed by Energy Concepts) which generates ice for the commercial
fishing industry. The remaining third exits the exhaust stack. A heat
exchanger can be installed in the stack heat to capture this thermal
energy. Energy Concepts has designed a turbine which will generate 162
kW from that ‘waste heat’. This turbine will be installed in the summer of
2009. The existing Absorption Chiller consists of outdated technology.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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Energy Concepts will simultaneously update this system while installing the
turbine.
4.4.6.5. Challenges
Stack heat recovery has not been met with much success in Alaska.
There are challenges which need to be addressed but the technology
has evolved to the point where these are not insurmountable, but only
need to be discussed and properly engineered. Waste heat power
generation is also not new technology. Chena Hot Springs Resort has had
very much success with their Organic Rankine Cycle turbine which gets its
heat source from a geothermal reservoir.
4.4.6.6. Solar Thermal
4.4.6.6.1. Objective
In an effort to mitigate the rising costs of home heating KEA will investigate
the success of solar thermal systems. Partnering with NIHA, KEA will install a
total of nine systems spread out in Kotzebue, Deering, Ambler, and
Buckland.
4.4.6.6.2. Benefits
Modeling done in Ret Screen has shown that the Northwest Arctic Region
can obtain a 50% solar fraction on a properly designed system. Meaning
that solar energy can reduce their current energy use by half. The
payback for solar averages out to be 6-8 years depending on system
design and current energy methods and costs.
4.4.6.6.3. Scope of Work:
Of the nine installed systems, two will consist of evacuated tubes and
these will need to be located in Kotzebue. These tubes have the potential
to be more troublesome, but more advantageous, than their flat panel
counterparts. The tank less water heats (two using propane and two using
electricity). The remaining 3/7 will have storage tanks. Half of the systems
will use an antifreeze looped system and the others will utilize a drain back
system. This combination of techniques will allow NIHA and KEA to
determine what type of system will be most beneficial to residents will
being simple to maintain and operate.
4.4.6.6.4. Challenges
Not many people have experimented with solar thermal in the Arctic.
Cold Climate Housing Research Center has recently installed both an
evacuated tube space heating solar thermal system and a glazed panel
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 44 of 48
water heating solar thermal system in Fairbanks. Each system has its
advantages and disadvantages. The challenge will be in maintaining the
systems and retrieving data. However, the partnership between KEA and
NIHA will ensure this success. There are unique design issues when above
the Arctic Circle. Systems which are perfect in Arizona will not necessarily
be a good match in the Arctic. This study will obtain much needed data,
provide the training and education for potential installers, increase
awareness of solar thermal, and prepare the community for more
installations to follow.
4.4.6.7. Conclusion
By increasing wind capacity, introducing energy storage, and capturing
waste heat for power generation KEA will effectively combat that trends of
rising fuel costs. The projects will require significant capital for development
but when combined these projects will save over 700,000 gallons of diesel
every year.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 45 of 48
5. Project Benefit
5.1. Environmental Benefits
Environmental benefits and impacts of the project are based on reduction of
hydrocarbon use, include reduced potential for fuel spills/contamination
episodes in transport, storage, or use (thus protecting vital water and subsistence
food sources), improved air quality, decreased contribution to global climate
change from fossil fuel use, and decreased coastal erosion due to climate
change.
5.2. Financial Benefits
The avoided cost of diesel, based upon 2008 prices, will be $950,317 per year.
5.3. Non-Income Benefits
Faced with the challenges of high costs, limited local employment options, and
the need to support their families, rural Alaskans are being faced with the choice
of leaving village life behind in order to relocate to larger cities in search of
employment and affordable living. The proposed projects will offer new solutions
for Alaska villages. With more affordable energy in the villages, more of our
region’s households will be able to afford to stay in their communities, promoting
community stability and wellness and helping to stem the tide of rural migration.
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 46 of 48
6. Grant Budget
The total project cost for the Ammonia Power Cycle Waste Heat Recovery System is
$1,215,627 of which $915,627 is requested in grant funds. The remaining $300,000 will be
from in-kind and material contributions from Energy Concepts and Kotzebue Electric
Association. (See Table 1: Cost Share)
The cost estimate can be broken down as follows:
Project engineering, design, permitting, and reporting are expected to cost
$115,000.
The capital cost of the equipment for three CAIN HSRS units, the Ammonia Power
Cycle Plant, the upgraded Ice Maker, and an expanded district heating system
will cost $788,352.
The cost for shipping the above equipment is expected to be $149,275.
Installation and construction costs should run $133,000.
$30,000 is allocated for administrative fees.
Table 6: Budget Form
BUDGET INFORMATION
BUDGET SUMMARY:
Milestone or Task
Federal
Funds State Funds
Local Match
Funds (Cash)
Local
Match
Funds (In‐
Kind)
Other
Funds TOTALS
1 Design and Procurement $55,000 $55,000
2 Permitting $50,000 $50,000
3 Stack Heat $328,052 $10,000 $338,052
4 Ammonia Power Cycle $378,000 $10,000 $215,000 $603,000
5 Ice Maker Upgrade $26,000 $65,000 $91,000
6 District Heating Expansion $68,575 $68,575
7 Reporting $10,000 $10,000
$0 $915,627 $0 $20,000 $280,000 $1,215,627
Milestone # or Task #
BUDGET CATAGORIES:1234567TOTALS
Direct Labor and Benefits $55,000 $10,000 $10,000 $10,000 $10,000 $95,000
Travel, Meals, or Per Diem $0
Equipment $234,052 $475,000 $65,000 $14,300 $788,352
Supplies $0
Contractual Services $50,000 $50,000
Construction Services $47,000 $43,000 $13,000 $30,000 $133,000
Shipping $47,000 $75,000 $13,000 $14,275 $149,275
TOTAL DIRECT CHARGES $55,000 $50,000 $338,052 $603,000 $91,000 $68,575 $10,000 $1,215,627
TOTAL $1,215,627
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
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7. Additional Documentation and
Certification
Kotzebue Electric Association Waste Heat Recovery & Power
Renewable Energy Fund Grant
November 10th 2008
Page 48 of 48
Figure 16: KEA Board Resolution