The State of CHP: Alabama

The information in this document provides a general overview of the state of CHP in Alabama, with data on current installations, technical potential, and economics available for CHP. For help with questions about specific CHP opportunities in Alabama, please consult with the Southeast CHP Technical Assistance Partnership.

CHP Technical Installed CHP CHP Economics CHP Partners Potential Alabama Installed Base of CHP

U.S. DOE Combined Heat and Power Installation Database

Capacity Sector Installations (MW) Industrial 29 3,122 Commercial/Institutional 6 127 Other 5 22 Total 40 3,271

The Southeast CHP Technical Assistance Partnership has compiled information on certain illustrative CHP projects in Alabama. You can access these by visiting the Department of Energy’s CHP Project Profiles Database.

Alabama CHP by Application Alabama CHP Capacity (MW) by Fuel Type

1,400 1,309 21 198 MW 41 MW 195 MW 1,200 18 15 1,000 941 15 851 470 MW Biomass 800 12 Coal 600 9 Oil: 9 Capacity (MW) Capacity 6 Number of Sites MW 400 6 4 Natural 3 3 3 Gas 200 2 116 2 3 1 1 22 8 13 0.8 10 1 Oil 0 0 Waste

Wood

Capacity (MW) Sites 2,358 MW

Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016) Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016)

Alabama CHP by Size Range Alabama CHP by Technology 3,168 2,062 3,200 24 2,100 26 28 21 1,800 24

2,400 18 1,500 20 1,162 1,200 16

1,600 12 900 12 Capacity (MW)

600 6 8 of Number Sites

Capacity (MW) Capacity 7 6 Number of Sites 3 300 2 2 4 800 6 1 4 43 0.1 1 2 0 0 1 1 0.03 0.1 3 18 82 0 0 <50 kW 50 - 500 500 - 1,000 1 - 5 MW 5 - 20 MW ≥20 MW kW kW

Capacity (MW) Sites

Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016) Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016)

Combined Heat and Power (CHP) – sometimes referred to as cogeneration – is an efficient and clean approach to generating on-site electric power and useful thermal energy from a single fuel source. The State of CHP: Alabama

CHP Technical Installed CHP CHP Economics CHP Partners Potential Alabama Technical Potential for New CHP Installations

U.S. DOE Analysis: Combined Heat and Power (CHP) Technical Potential in the United States Potential Potential Sector Sites Capacity (MW) Industrial 1,030 1,634 Commercial/Institutional 3,482 1,143 Total 4,512 2,777

Alabama Technical Potential (MW) for Industrial CHP Applications

500 455 300 262

400 240 341 169 300 180 127 109 200 164 106 120 84

Capacity (MW) Capacity 78 128 118 111 105 Number of Sites 53 86 100 66 59 60 18 24 0 0

Capacity (MW) Sites

Source: U.S. Department of Energy, Combined Heat and Power (CHP) Technical Potential in the United States, March 2016.

Technical Potential by CHP Size Range for Top Five Industrial Sectors

50-500 kW 0.5 - 1 MW 1 - 5 MW 5 - 20 MW >20 MW Total

Total Application Sites MW Sites MW Sites MW Sites MW Sites MW Total MW Sites Chemicals 56 10 18 13 35 74 13 113 5 245 127 455 Primary Metals 54 11 19 13 21 45 11 134 4 138 109 341 Textiles 34 6 12 10 25 50 5 45 2 53 78 164 Lumber and Wood 191 38 45 31 24 48 2 11 0 0 262 128 Paper 31 8 7 5 11 24 2 19 2 63 53 118 Other Industrial 274 47 51 35 61 142 13 125 2 78 401 428 Total 640 119 152 107 177 384 46 448 15 575 1,030 1,634

Source: U.S. Department of Energy, Combined Heat and Power (CHP) Technical Potential in the United States, March 2016.

Alabama Technical Potential (MW) for Commercial/Institutional CHP Applications 350 1,317 1400 305 300 1200

250 237 1000 817 200 800

150 131 138 600 116 Capacity (MW) Capacity Number of Sites 100 295 400 277 60 194 50 49 198 127 162 50 77 29 28 200 18 0 0

Capacity (MW) Sites

Source: U.S. Department of Energy, Combined Heat and Power (CHP) Technical Potential in the United States, March 2016.

Technical Potential by CHP Size Range for Top Five Commercial/Institutional Sectors

50-500 kW 0.5 - 1 MW 1 - 5 MW 5 - 20 MW >20 MW Total

Total Application Sites MW Sites MW Sites MW Sites MW Sites MW Total MW Sites College/Univ. 33 8 8 5 21 48 10 93 5 151 77 305 Commercial Buildings 878 44 351 140 88 53 0 0 0 0 1,317 237 Hospitals 58 16 28 19 38 76 3 19 0 0 127 131 Schools 226 80 47 31 4 4 0 0 0 0 277 116 Government Buildings 176 23 6 4 9 13 3 20 0 0 194 60 Other Comm./Inst. 1,411 176 55 32 18 27 6 60 0 0 1,490 294 Total 2,782 347 495 231 178 221 22 192 5 151 3,482 1,143

Source: U.S. Department of Energy, Combined Heat and Power (CHP) Technical Potential in the United States, March 2016.

CHP Technical Installed CHP CHP Economics CHP Partners Potential Alabama CHP Economics

The most important indicators for CHP economics are electricity and gas prices. For most potential CHP installations, natural gas and electricity rates for host facilities will fall within the range of average commercial and industrial prices. Lower energy prices may be possible for large CHP applications.

Alabama Natural Gas Prices

Alabama Average Gas Prices - 2016 Alabama Average Natural Gas Prices - 2011-2016 $14.00 AL Price U.S. Price Sector ($/MMBtu) ($/MMBtu) $12.00 Citygate* 3.40 3.75 $10.00 Industrial 3.53 3.39 $8.00

Commercial 10.68 7.22 $6.00 $/MMBtu Source: U.S. Energy Information Administration, “Natural Gas $4.00 Prices”, https://www.eia.gov/dnav/ng/ng_pri_sum_dcu_SAL_a.htm $2.00 The EIA industrial natural gas price is a full tariff rate, $0.00 and most large consumers are purchasing gas 2011 2012 2013 2014 2015 2016 commodities from marketers at a lower rate. Citygate Industrial Commercial Alabama Electricity Prices

Alabama Average Electricity Prices - 2016 Alabama Average Electricity Prices - 2011-2016 12 U.S. Price Sector AL Price (¢/kWh) 10 (¢/kWh) Industrial 6.08 6.75 8 Commercial 11.12 10.37 6

Source: U.S. Energy Information Administration, “Electricity Data ¢/kWh 4 Browser”, https://www.eia.gov/electricity/data.cfm 2 Electricity rates can vary greatly by utility and facility size range. The rates below from EIA represent general 0 2011 2012 2013 2014 2015 2016 averages; individual facility rates may vary. Industrial Commercial

Alabama Average Delivered Electricity Prices by Utility Alabama Electricity Prices – Heat Map Industrial Commercial Average Price Price Price** Utility (¢/kWh) (¢/kWh) (¢/kWh) North Alabama Elec Coop 8.84 11.92 10.38 Sand Mountain Elec Coop 7.46 11.79 9.62 City of Florence 7.31 10.48 8.89 Joe Wheeler Elec Corp 5.76 11.83 8.80 Franklin Elec Coop 7.06 10.51 8.78 Alabama Power Co 6.14 11.13 8.64 City of Athens 6.86 10.37 8.61 City of Huntsville 6.83 9.37 8.10

Source: U.S. Energy Information Administration, “Annual retail price of electricity by utility”, https://www.eia.gov/electricity/data.cfm

*Citygate is a point or measuring station at which a distributing gas utility receives gas from a NG pipeline company or transmission system. Alabama Power / Florence / Franklin / Athens / Huntsville / Joe Wheeler **Average of commercial and industrial electricity prices as reported Sand Mountain Electric Coop by EIA. North Alabama Electric Coop

CHP Technical Installed CHP CHP Economics CHPCHP Economics Partners Potential Department of Energy CHP Partnerships

Southeast CHP Technical Assistance Partnership

Southeast CHP TAP Director: Isaac Panzarella Phone: 919-515-0354 Email: [email protected]

CHP for Resiliency Accelerator

The U.S. DOE is collaborating with a group of cities, states, and utilities who are actively pursuing CHP as a consideration in resiliency planning for critical infrastructure in their jurisdictions. This has included defining resiliency, identifying critical infrastructure, and assessing CHP opportunities. This process is being documented in a Resiliency Planning Tool. For more information: CHP for Resiliency Accelerator Website.

• Currently, there are no CHP for Resiliency Accelerator partners in Alabama.