The ultimate guide to and trigeneration technology

The resource for companies seeking further information on cogeneration and trigeneration technology.

[email protected] www.gastoday.com.au Contents

Exhaust gas Peak boiler

Fuel gas

Heat exchanger

Heat Buffer consumer

Electrical energy

3 10 14

Cogeneration and trigeneration: an explanation 3

The benefits of cogeneration and trigeneration 5

How to choose the right cogeneration and trigeneration technology 8

Cogeneration and trigeneration - which engine to choose? 9

Types of engines available 10

Engines at a glance 11

Cogeneration and trigeneration in action 12

Checklist when purchasing an engine 16

Frequently Asked Questions 17

Featured supplier 18

Directory 19

About the publishers 20

This guide is designed for use by companies operating in ’s industry who are interested in investigating the benefits of cogeneration and trigeneration technology. This technology is growing in popularity due to its economic and production efficiency, and its positive impact on carbon emissions. This free resource includes information on the technology, the many benefits associated with its use, different engine types available, key considerations when deciding which engine to buy, important questions to ask when considering the best application, and a directory of suppliers.

The ultimate guide to cogeneration and trigeneration technology 2 Cogeneration and trigeneration: an explanation

ogeneration, or combined heat and power (CHP), simultaneously produces useful heat and electricity from a single fuel source. The system consists of a , Can electricity generator and a heat exchanger. Trigeneration, or combined cooling, heat and power (CCHP), is the production of three useful energies – heat, power and chilled water for air conditioning or refrigeration. An absorption chiller is linked to the CHP to use the waste heat for cooling. This onsite process avoids generation of high levels of greenhouse gas emissions that usually result from centralised coal-fired power generation and transmission inefficiencies.

Exhaust gas Peak boiler

Fuel gas

Heat exchanger

Heat Buffer consumer

Electrical energy

A cogeneration system (courtesy of Clarke Energy).

Exhaust gas Peak boiler

Fuel gas Cooling tower

Absorption chiller Refrigeration Heat exchanger consumer

Buffer

Heat consumer

Electrical energy SUPPORTER A trigeneration system (Courtesy of Clarke Energy).

The ultimate guide to cogeneration and trigeneration technology 3 [continued]

The gas engine’s hot exhaust gas can also be recycled using an absorption chiller. Up to 80 per cent of the thermal production of the cogeneration plant can then be converted to chilled water, resulting in constant utilisation and the increased efficiency of the cogeneration plant. The majority of cogeneration and trigeneration facilities installed in Australia use natural gas, as it is a cleaner and more efficient use of energy sources. It is readily available, cheaper to source, and is employed for small and large scale, or industrial applications. According to the Clean Energy Council’s (CEC) website, as well as electricity, cogeneration and trigeneration plants can produce: • Hot water • Space heating • Space cooling (with the use of an absorption chiller) • Dry air (with the use of a desiccant) • Hot air and steam for industrial head processes. The CEC’s website also advises that cogeneration and trigeneration are best suited to sites with a large heating and/or cooling load. The CEC lists potential users of cogeneration and trigeneration: • Hospitals • Educational facilities, universities and TAFE • Hotels, cinemas and hospitality venues • Industrial and manufacturing facilities, including breweries and dairies • Government offices of local, state and federal agencies • Residential areas • Airports and public utilities • Data centres.

SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 4 The benefits of cogeneration and trigeneration

ith the increase in use of natural gas in Australia’s short- and medium-term power generation future, cogeneration and trigeneration technologies will play Wa vital role in energy efficiency and emission reductions. These technologies are also important because of their versatility – they can increase the efficiencies of renewable as well as fossil fuel energy sources, and are suited for small, medium and large-scale applications. Distribution efficiency According to the CEC’s website, demand for electricity in Australia is predicted to grow by nearly 50 per cent between now and 2030. As a result, the CEC projects that Australia needs to spend at least $100 billion during the next decade to expand its power infrastructure. To meet these targets, the CEC predicts that in New South Wales and QLD network charges for consumers will increase by up to 66 per cent by 2015, with similar increases likely in other states and territories.

Exhaust gas

Bypass

Fuel gas

Hot water Heat User

Electricity

Distributed energy (courtesy of Clarke Energy).

Cogeneration and trigeneration provide distributed power generation at or near the point of consumption, so generation of electricity close to the end user helps to reduce losses associated with transmission. Heat from the combustion process can be captured as hot water and used for heating close to the source of generation. This therefore stabilises the grid by reducing the need for expensive extensions to the grid, and also minimises the impact of rising electricity prices and reduces transmission losses.

Energy efficiency Maximising the output of an energy source is essential to improving energy efficiencies, and this is the key principal of cogeneration and trigeneration technologies. The CEC states that cogeneration and trigeneration’s simultaneous production of electrical power SUPPORTER and thermal energy achieves greater energy efficiency (70–90 per cent) than conventional systems producing power and heat separately (35 per cent). The CEC also states that coal-fired power plants are typically only 30 per cent efficient in converting the energy of the fuel into electricity, with the majority of the energy lost as waste heat. However, if the waste heat is used – either for direct use or for energy generation – energy efficiencies of 70 per cent and above are achieved. The success

The ultimate guide to cogeneration and trigeneration technology 5 [continued]

of cogeneration and trigeneration technology is due to this lowering of energy waste through transmission, as well as the benefit of it being a decentralised energy, (electricity produced onsite or nearby). Costs associated with providing power and heat to a facility is also therefore reduced.

Natural gas supply 100%

Mechanical energy 42% Thermal energy 58% HE 1

HE 2

HE 3

HE 4

Diagram key: HE 1 – Mixture intercooler HE 2 – Oil exchange heater HE 3 – Engine jacket water heat exchanger HE 4 – Exhaust gas heat exchanger Usable electrical energy Loss Usable thermal energy 40% 10% 50%

Electrical efficiency and energy loss in a CHP system (courtesy of Clarke Energy).

Reduction in greenhouse gas emissions Not only is the technology an efficient use of energy and lowers electricity costs, it also reduces carbon emissions, which is of significant benefit to companies following the introduction of the carbon pricing scheme, as well as an increased national focus on the environment and Australia’s carbon footprint. The CEC states that cogeneration and trigeneration power plants have a third of the emissions associated with producing electricity from coal power plants, as well as increased energy efficiency. There are also voluntary energy efficiency ratings systems in place in Australia to encourage emission savings in properties, such as the National Australian Built Environmental Rating System (NABERS) and the Council of Australia’s Green Star system. SUPPORTER Both systems encourage optimal environmental outcomes, however, the difference between the two is that the NABERS system rates the operational performance of existing buildings, whereas the Green Star system evaluates the environmental design, construction and performance of buildings at the design, construction or operational phase.

The ultimate guide to cogeneration and trigeneration technology 6 [continued]

The Green Star system rewards outcomes, rather than individual technologies – for example, the ‘Greenhouse gas emissions’ credit rewards buildings for operating with reduced greenhouse gas emissions, and many projects have employed cogneration and tri-generation technology to contribute toward this end goal. Another credit is the ‘Peak load reduction’ credit which rewards buildings that reduce peak electrical demand. This can be done through on-site generation which also includes cogeneration and trigeneration systems. Both systems encourage optimal environmental outcomes, however the difference betweent the two is that the NABERS system rates the operational performance of existing buildings, whereas the Green Star program rates the design and construction of planned buildings and can award certifications for the submission process.

An economical and environmental alternative to conventional refrigeration Trigeneration, or CHPC, has an absorption chiller that is linked to the CHP to generate chilled water for air conditioning or refrigeration. This means that no harmful chemical pollutants exist, since water is used as the refrigerant, and during the peak summer period there is lower electrical usage. Absorption chillers can produce refrigeration using hot water, steam, or direct heat via combustion. The benefits of absorption based refrigeration are clear – it is inexpensive, during the colder months the generated heat can be used for heating, and there are low operating costs.

For more information on the Green Star Program CLICK HERE and for more information on NABERS CLICK HERE

SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 7 How to choose the right cogeneration and trigeneration technology:

Ensure that there is an OEM (original equipment manufacturer) 1. presence in Australia It is important to have technical back up, original spare parts, and servicing by competent, factory-trained service technicians all on hand in case you need support. Ensure that there is proven technology and performance in your 2. country Make sure you investigate all reference points and see that the equipment works in the climatic conditions, and that there is proven equipment reliability. Investigate the market share, and the number of installations in your 3. country If the OEM has a greater percentage of market share and proven equipment installation experience, it usually suggests they are competitive, reliable, and factory supported. Assess the level of availability and reliability guarantees – and at what 4. cost Some OEMs will provide levels of availability and reliability that are inflated, stretched and thrown in with the price. The lowest cost to get the best availability and reliability is not worth the saving when the equipment fails to operate as expected. Lowest cost is not always best. Will this equipment have the best operational efficiency for your 5. purposes? Ensure that the overall system has been designed properly and efficiency is being maximised, giving you the output values of electricity, heat and cooling that you expected. Will delivery of the equipment fit in with your program and schedule? 6. Some OEMs quote inaccurate delivery dates which means late installation and startup. Generally the building will have a practical completion date with damages that can be affected by late delivery. Assess the financial strength of the OEM 7. It is important that the OEM will be around in 10-20 years to provide parts, people and service. Ensure that the OEM signs-off on the installation compliance 8. The OEMs are the only ones who can responsibly provide assured confirmation that the installation of the system is compliant and that you will get the right performance and outputs. SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 8 Cogeneration and trigeneration: which engine to choose?

he optimisation of a cogeneration or trigeneration plant is essential to achieve the highest level of efficiency. One of the key elements of a plant is load maximisation, Twhich ensures as much waste heat is consumed to attain the highest efficiency. Cogeneration and trigeneration plants are typically used on a continuous basis as opposed to standby applications. The design of a continuously operating plant is far more demanding than a standby plant, and heavier loading wear and tear tolerance with high availability is a primary design consideration. Depending on the technology selected – either gas turbine or reciprocating engine – the application of load to the system may need to be controlled. That control can take many forms, either load application control or support from the main power grid. The type of facility, budget, and efficiency targets will all be taken into account, and your OEM will provide consultation, advice and the support you need to make the right choice in engine.

Other tips on deciding which engine is right for you: 1. Is there national service support available from the OEM, including an adequate range of spare parts for my installation? 2. Are there training programs available from the OEM for my staff? 3. What are the ‘whole of life’ costs involved, including gas consumption and costs, as well as service costs? 4. Where are the service technicians located? 5. Is there performance suitability for my application? 6. Is the engine reliable and resilient? 7. Check the availability of design, operations and maintenance documentation.

SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 9 Types of engines available

he cogeneration and trigeneration gas engine is connected to the alternator which creates electrical power for export. The cooling water circuits of the engine are Tfirst linked to a plate heat exchanger which facilitates the transfer of hot water to an external hot water circuit, typically on a 70/90°C flow/return basis. Any excess heat should be dumped using adjacent heat dump radiators to facilitate the correct operation of the engine. The engine, alternator and a plate heat exchanger are all mounted on a skid for ease of transportation. The module is then typically located within a building and ideally with individual acoustic enclosures to reduce the escape of noise and to protect operators and service engineers.

Featured engine: GE The Jenbacher gas engine is designed to run solely on different types of gas, and for different types of applications. This focus on gaseous fuels leads to the highest levels of generator efficiency and reliability on the market.

GE’s Jenbacher Type 4 Gas Engine.

Benefits • High electrical and thermal efficiency for maximum return on investment • Robust, flexible design with high reliability on difficult gases • Available as containerised ‘plug-and-play’ units for quick installation.

Features • Optimised combustion for maximum efficiency • Turbocharger bypass evens out extreme operating conditions • High-performance, long-life spark plug for reliable operation • Knocking control compensates for methane number fluctuation • LEANOX® lean burn control ensures minimal emissions • Compact engine control with integrated network synchronisation. SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 10 Engines at a glance

Below are some examples of engines available for cogeneration and trigeneration projects, however, it is recommended you contact your local service provider to discuss the best option for your specific site.

Supplier Engine Type Capacity Extras Clarke GE Jenbacher Type-2 Either 249 kWe or See previous page. Energy Engine 330 kWe GE Jenbacher Type-3 500–1,063 kWe • Turbocharger ensures homogenous mixture at low gas Engine pressures J312 GS • High flexibility due to two-stage mixture cooling. J316 GS J320 GS GE Jenbacher Type-4 800–1,500 kWe • High-power turbocharger allows optimal operation at Engine higher air intake temperature and altitude. J412 GS J416 GS J420 GS GE Jenbacher Type-6 1.8 to 4.4 MW • Highest levels of electrical efficiency and reliability Engine • Pre-chamber combustion ensures maximum efficiency J612 GS • Turbocharger bypass evens out extreme operating J616 GS conditions J620 GS • External dry exhaust manifold ensures long cylinder head J624 GS life • Selective knocking control for each cylinder ensures optimal protection • Installed base globally is a total of approximately 13,000 units generating approx. 16,000,000 kWe • Installed base in Australia of 255 units generating 4,610 kWe. GE Jenbacher Type 9 9.5 MW • Top in its class electrical efficiency level of 48.7 per cent Engine - J920 FleXtra • High power density at low investment costs • Stable power output and efficiency at high ambient conditions • Quick start-up for grid stabilisation • Fast and easy installation • Designed for ease maintainability • Full plant flexibility with any multiple-engine installation • Combined heat and power solution with 90 per cent efficiency and more. MTU MTU Detroit Diesel 772 kWe– 2145 Detroit Series 4000 Gas kWe Diesel (772 - 2145 kWel) Series 400 Gas 116-420 kWe (116 – 420 kWe)

The ultimate guide to cogeneration and trigeneration technology 11 Cogeneration and trigeneration in action

Case Study 1: Perth Airport Domestic Terminal, trigeneration plant

Capacity Engine Type Manufacturer Packager 4,000 kWe + 2 x 2,000 GE Jenbacher Clarke Energy 3,916 kWt + kWe JMS 616 3,516 kWr GSN.L

The system will incorporate two 2 MWe high-efficiency gas engines, two absorption chillers and associated high- voltage switchgear, and will be configured for 24 hour, seven days a week operation to provide back-up power during grid network outages. It will use gas to generate electricity and heat to power the air-conditioning for both the new domestic terminal and its adjacent international terminal. The plant is expected to reduce the airport’s greenhouse gas emissions by 55 per cent. One of two GE Jenbacher Type 6 gas engines installed by Source: Clarke Energy Clarke Energy at the Perth Airport.

Case Study 2: Rooty Hill RSL, trigeneration plant

Capacity Engine Type Manufacturer Packager 1,063 kWe + GE Jenbacher GE Jenbacher Caps Australia 916 kWr JMS 320 GS-N.L

The GE Jenbacher JMS 320 engine will operate during peak and shoulder periods, turning on when power prices increase during the day and turning off when energy prices revert to off-peak rates later in the evening. In the case of a blackout, the trigeneration power plant, including the absorption chiller for air-conditioning, will power the entire site using a demand management system. A challenge faced in the development of the project was that the gas supply to the Rooty Hill RSL was not sufficient to power the intended trigeneration system. This could have been overcome by upgrading the gas flow to the RSL, but this would have dramatically increased the overall cost of the project. Instead, it was decided that the best course of SUPPORTER action would be to install a more sensitive engine model, able to produce energy with the gas supply as it was. The system cost a total of $4.5 million and is expected to reduce Rooty Hill RSL’s carbon emissions by up to 50 per cent. Source: Clarke Energy

The ultimate guide to cogeneration and trigeneration technology 12 [continued]

Case Study 3: Queensland Children’s Hospital, trigeneration

Capacity Engine Type Manufacturer Packager 4,864 kWe + 2 x GE GE Jenbacher AE Smith, trained by Clarke Hot Water + Jenbacher Energy Chilled Water JMS 616 GS- N.L

The new hospital will be a modern, technologically advanced facility, focusing on supporting the needs of its patients. The high efficiency trigeneration system will also require gas gensets to operate in grid parallel mode and provide island power during grid outages. The trigeneration plant will generate approximately 5 MW electrical output from two GE Jenbacher engines, and both engine HT circuits thermal energy and exhaust gas thermal energy will be recovered to provide high temperature hot water to the hospital hot water system and absorption chillers which will generate chilled water for the hospital’s air conditioning system. Hospitals are naturally very high energy consumers, with usage taking a number of forms including: • Electricity is needed to power the lighting and equipment • Hot water for cleaning and general use • Steam for sterilisation and cleaning • Cooling for refrigeration, freezing and air conditioning systems. These energy usages can be produced at high efficiency with the support of a cogeneration or trigeneration facility. Source: Clarke Energy

SUPPORTER

A Clarke Energy gas engine installation, typical of those installed in cogeneration and trigeneration projects in Australia

The ultimate guide to cogeneration and trigeneration technology 13 [continued]

Case Study 4: 101 Miller St, North Sydney

Capacity Engine Type Manufacturer Packager Peak Electrical: 2 x 1,166 kW MTU Detroit Diesel Cogent Energy 2,332 kW at 0.8 MTU Australia power factor Series 4000 Peak Cooling: 1,500 kW

Cogent Energy designed and installed a state-of-the-art cogeneration plant at 101 Miller Street, North Sydney, and the system has been in operation since 1 November 2008. This large commercial building comprises premium office space and shops. Each engine is coupled to a 750 kW Thermax exhaust absorption chiller, which is fully integrated into the building’s chilled and condenser water systems. The plant is set up to operate either in grid parallel import or island mode and operates automatically during the peak and shoulder demand periods or during grid outages as emergency backup. Source: Cogent Energy

Cogent’s engine installation at 101 Miller Street, North Sydney. SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 14 [continued]

Case Study 5: Little Creatures Brewery, Geelong, VIC

Capacity Manufacturer Packager Up to 10 GWh of electricity SEVA Energie Simons Green Energy per year Up to 11 GWh of thermal energy per year

Simons Green Energy was engaged to design, supply, install and maintain a 1,200 kW natural gas fired cogeneration system to provide a large portion of the brewery’s electricity and hot water demand. The electricity generated by the cogeneration system is cheaper and cleaner than coal fired grid supplied electricity, thereby providing substantial costs savings and carbon emission reductions. The cogeneration system consists of two units (800kWe and 400 kWe) with engines, generator sets, controls and heat recovery systems all housed inside purpose built enclosures. Simons Green Energy’s cogeneration systems will provide power to the brew-house, with “free” heating and steam for the brewery’s numerous process heating applications, reducing energy costs and cutting carbon emissions for over 20 years. Source: Simons Green Energy

The Little Creatures Brewery, Geelong, Victoria. SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 15 Checklist when purchasing an engine

Is there a local presence of the OEM? Is the major equipment distributor financially stable? Is there the availability of long term service and maintenance agreements from the OEM? Has the OEM installed this engine before? If so, how many, where, and who were the customers? Parts holdings – where, how many? Is support available to your staff and company? Is there assured quality installation, not just a cheap price? Has a risk evaluation been completed for the project? Have you completed all reference checks? Have you organised a warranty for the equipment being used?

SUPPORTER

The ultimate guide to cogeneration and trigeneration technology 16 Frequently Asked Questions

Am I maximising financial savings by investing in cogeneration and 1. trigeneration technology? The OEM should have the tools to model the financial expenditure and the subsequent savings, and it is worthwhile investigating whether you are able to receive green star credits for investing in this technology. Engaging the OEM for all system design and construct within the plant room will increase overall confidence.

Do I understand the benefits of cogeneration and trigeneration? 2. Cogeneration has clear benefits, whereas trigeneration requires more consideration as to whether the system will make a difference to your project. The building type and services installed will affect the benefits, so it is important to conduct thorough research beforehand.

What are the risks to my facility if I install a cogeneration and 3. trigeneration system? Poor design with regard to emergency power rating and a loss of gas when the grid power fails. No OEM performance has guarantees if the OEM is not involved in the early stages.

How is the equipment sized to meet optimum efficiency? 4. There is a careful heat-rate balancing, and with a selection of the most efficient engines in relation to the balance of the plant, optimum efficiency will be assured.

Who is recommended to undertake the installation – an OEM or a 5. building services contractor? An OEM should be involved for generation system design, sizing and installation within the plant room. A services engineer and services installation contractor can undertake all other service interfaces that are external to the plant room.

Do I need a consultant to engineer the installation? 6. Not necessarily for the generation system within the plant room (the OEM can do this) but it is preferred for all other building services interfaces.

What are the best qualities to look for in choosing a company to 7. implement the technology? Select companies who have been there, done that and have full traceable records to show. In other words, an experienced, quality design and construct operator. There needs to be proof of reliable project delivery, the right management processes and proven quality and SUPPORTER occupational health and safety systems.

The ultimate guide to cogeneration and trigeneration technology 17 Featured supplier

larke Energy is the sole authorised distributor and service partner for GE Energy’s gas engine division in Australia, and a growing number of countries across the Cworld. In addition to providing high-efficiency, reliable gas engines, Clarke Energy combines this with the expertise and resources to deliver product support. Whether the supply of a single gas engine generator is required, or a complete turnkey power generation facility, Clarke Energy can meet that need. Value is added by offering an end-to-end service, from initial proposal to reliable long-term maintenance, which has led Clarke Energy to become a multi-national company with operations in ten countries across the globe. Clarke Energy prides itself on integrity, delivering only the highest quality products whilst providing a reliable, accountable and localised service.

Benefits of working with Clarke Energy Clarke Energy provides flexible solutions for gas generation projects. Their services range from the supply of a gas engine generator, through to the complete turnkey installation of a gas powered generation facility. Clarke Energy has a dedicated, top-quality team of sales, , project management, and commissioning and maintenance staff to meet any project’s requirements. They also offer long-term maintenance contracts backed up by a strong balance sheet, giving peace of mind with respect to the long-term performance of the GE gas generation equipment.

Clarke Energy

www.clarke-energy.com

Allan Frederick Business Development Manager

[email protected]

Ph: 08 8290 2100

The ultimate guide to cogeneration and trigeneration technology 18 Directory

Clarke Energy Ph: 08 8290 2100

www.clarke-energy.com

Cogent Energy Ph: 02 9503 5037

www.cogentenergy.com.au

Simons Green Energy Ph: 03 9462 6700

www.simonsgreenenergy.com.au

Cummins Power Generation Ph: 03 9765 3222

www.cumminspower.com

MTU Detroit Ph: 1300 688 338

www.mtudda.com.au

Clean Energy Council www.cleanenergycouncil.org.au

Green Star Ratings System www.gbca.org.au/green-star/

National Australian Built Environmental Rating System (NABERS) www.climatechange.gov.au/government/initiatives/nabers

The ultimate guide to cogeneration and trigeneration technology 19 About the publishers

This guide is a product of and endorsed by Great Southern Press. Great Southern Press, the publisher of Gas Today, was established in 1972 and is a specialist industry publisher providing printed and online information which covers infrastructure, construction, minerals and energy both in Australia and across Asia. As a specialist industry publisher, Great Southern Press understands the needs of business and is highly competent in helping create successful advertising campaigns for companies of all sizes. Our team is committed to the growth of our clients’ businesses and to the overall advancement of the pipeline industry. Great Southern Press builds on traditional publishing values blended with new technology to ensure first rate customer service.

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