Combined Heat and Power Market Potential for Opportunity Fuels
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Combined Heat and Power Market Potential for Opportunity Fuels August 2004 By Resource Dynamics Corporation Table of Contents Introduction.………………………………………………………………………………..…………. ..1-1 Project Objectives.………………………………………………………………………….………..1-1 Approach…………………………………………………………………………………………..…1-1 Report Organization….………………………………………………………………………………1-2 The Opportunity Fuels………………………………………………………………………………….2-1 The Biomass Fuels……………………………….…………………………………………………..2-4 Anaerobic Digester Gas………………………………………………………………………… 2-5 Biomass Gas……………………………………………………………………………………..2-9 Black Liquor……………………………………………………………………………………2-12 Crop Residues…………………………………………………………………………………..2-13 Ethanol………………………………………………………………………………………….2-15 Food Processing Waste…………………………………………………………………………2-16 Landfill Gas………………………………………………………………………………… ….2-18 Municipal Solid Waste and Refuse Derived Fuel…………………………………………… ...2-19 Sludge Waste………………………………………………………………………………… ...2-21 Wood and Wood Waste………………………………………………………………………...2-22 Industrial Process Waste and Byproducts…………………………………………………………..2-25 Blast Furnace Gas………………………………………………………………………………2-25 Coke………………………………………………………………………………………… ….2-26 Coke Oven Gas…………………………………………………………………………..……..2-28 Industrial VOC’s………………………………………………………………………..………2-29 Textile Waste……………………………………………………………………………..…….2-31 Fossil Fuel Derivatives………………………………………………………………...……………2-32 Coalbed Methane……………………………………………………………….………………2-32 Wellhead Gas…………………………………………………………………………………...2-34 Processed Opportunity Fuels……………………………………………………………………..…2-36 Orimulsion………………………………………………………………………………… …...2-36 Tire-Derived Fuel………………………………………………………………………… ……2-38 Summary of Fuel Attributes and Performance……………………………………………………...2-41 Chapter 2 Summary.………………………………………………………………………………...2-45 DER Technologies for Opportunity Fuels…………………………………………………..…………3-1 Steam Turbines……………………………………………………………………………………….3-1 Combustion Turbines………………………………………………………………………………...3-6 Reciprocating Engines…………………………………………………………………………..….. .3-9 Microturbines…………………………………………………………………………………… ….3-12 Fuel Cells…………………………………………………………………………………………... 3-15 Chapter 3 Summary…………………………………………………………………………………3-17 Availability and Technical Potential………………………….………………………………………..4-1 Anaerobic Digester Gas……………………………………………………………………………. ..4-1 Biomass Gas………………………………………………………………………………………….4-6 Coalbed Methane………………………………………………………………………………… ….4-8 Landfill Gas………………………………………………………………………………………....4-11 Tire-Derived Fuel…………………………………………………………………………………...4-13 Wellhead Gas…………………………………………………………………………………… ….4-15 Wood (Forest Residues / Harvested Wood)……………………….………………………………..4-17 Wood (Urban Wood Waste)……………………………………….………………………………..4-19 Chapter 4 Summary…………………………………………………………………………………4-22 Current Projects and Future Prospects………………………………………………………………..5-1 i Anaerobic Digester Gas…………………………………………………………………………… ...5-1 Biomass Gas……………………………………………………………………………………….…5-3 Coalbed Methane………………………………………………………………………………… ….5-5 Landfill Gas…………………………………………………………………………………………..5-6 Tire-Derived Fuel…………………………………………………………………………………….5-7 Wellhead Gas…………………………………………………………………………………… …...5-8 Wood and Wood Waste………………………………………………………………………… …...5-9 Chapter 5 Summary…………………………………………………………………………………5-10 ii List of Tables Table 2-1. Coal and TDF: Fuel Analysis by Weight Percent…...………………………………………2-38 Table 2-2. Opportunity Fuel Performance Matrix……………………………………………………....2-42 Table 3-1. Equipment and Maintenance Average Costs………………………………... ……………...3-18 Table 4-1. WWTPs Capable of ADG Projects with Technical Potential………………………………...4-2 Table 4-2. Potential MW Production from Cow and Pig Farms Large Enough for DER Projects………4-4 Table 4-3. Biomass Availability and Technical Potential by State………………………………… ……4-6 Table 4-4. Underground Mines and Coal Production by State…………………………………… ……..4-9 Table 4-5. Number of Landfills, Waste in Place, and Potential Capacity for New LFG Projects… …...4-11 Table 4-6. United States Oil and Gas Wells, by State…………………………………………………..4-14 Table 4-7. Harvested Wood Availability and Technical Potential…………………………………...…4-17 Table 4-8. Urban Wood Waste Availability and Technical Potential……………………………… …..4-19 Table 4-9. Estimated Potential Thermal and Electric Capacity for the Opportunity Fuels……………..4-22 List of Figures Figure 2-1. Flowchart of Biomass Fuels for DER/CHP Applications…………………………………....2-2 Figure 2-2. The Biomass Fuels…………………………………………………………………………...2-4 Figure 2-3. The Anaerobic Digestion Process: Converting Waste to Energy…… ……………………....2-5 Figure 2-4. A Combined Cycle Gasification System………………………………… ……………….…2-9 Figure 2-5. Crops - almost any type of crop produces residues that can be used as a fuel…… ………..2-13 Figure 2-6. Municipal Solid Waste - the source of MSW and LFG fuels……………………………....2-19 Figure 2-7. Wood Waste Recycling Yard……………………………………………………………….2-22 Figure 2-8. Coalbed Methane Collection Process……………………………………………… ………2-32 Figure 2-9. The Orinoco Belt - the world's largest reserve of bitumen, used to make Orimulsion……..2-36 Figure 2-10. Tire Piles - The Main Source of Tire-Derived Fuel…………………………………….…2-39 Figure 3-1. The Steam Turbine Cycle……………………………………………………………… ……3-2 Figure 3-2. Combustion Turbine System (with intercooler)………………………………………… …..3-7 Figure 3-3. Schematic of an Otto (spark-ignition) Reciprocating Engine with Heat Recovery.…… …..3-10 Figure 3-4. Microturbine System with Recuperator…………………………………………………….3-12 Figure 3-5. Fuel Cell Schematic……………………………………………………………………… ...3-16 Figure 4-1. Potential MW for WWTP ADG Projects by State……………………………………… ..…4-4 Figure 4-2. Potential MW for Animal Farm ADG Projects by State………………………….……… …4-6 Figure 4-3. Estimated Biomass Reserves by State…………………………………….…………… ……4-8 Figure 4-4. Estimated CBM MW Potential, by State………………………………………………… ...4-10 Figure 4-5. Estimated Potential Electric Capacity for New LFG Projects, By State………………… ...4-12 Figure 4-6. United States Distribution of Scrap Tires…………………………………………………..4-14 Figure 4-7. Number of Oil and Gas Wells By State……………………….……………………………4-16 Figure 4-8. Harvested Wood Fuel Availability By State………………………………………………..4-18 Figure 4-9. Urban Wood Waste Availability By State………………………………………………….4-20 Figure 5-1. 200 kW ADG Fuel Cell in Portland, Oregon………………………………………………...5-2 Figure 5-2. The Different Types of Gasifiers……………………………………………………… ….…5-4 Figure 5-3. The Exeter Energy Facility burns 100 percent tire-derived fuel……………………………..5-7 Figure 5-4. Microturbines can even provide power to offshore wells…………………………………....5-9 iii Abstract The purpose of this report is to determine the best opportunity fuel(s) for distributed energy resources and combined heat and power (DER/CHP) applications, examine the DER/CHP technologies that can use them, and assess the potential market impacts of opportunity fueled DER/CHP applications. Opportunity fuels can be a cheap and reliable alternative to fossil fuels, and are likely to gain in market share as there is an increase in the price of fossil fuels and the need for environment-friendly energy sources. The first section of this report is an introduction explaining project objectives and approach. The second section of this report introduces the various opportunity fuels. Current status, technology, economics, market condition, and environmental issues associated with each fuel are discussed. Availability, cost, and installed capacity data are also included where available. After each fuel is analyzed, the eight opportunity fuels with the most DER/CHP potential are chosen for further evaluation. These eight fuels are anaerobic digester gas, biomass gas, coalbed methane, landfill gas, tire-derived fuel, wellhead gas, wood (forest residue), and wood (urban wood waste). The third section of this report discusses the prime mover technologies required to utilize these fuels. The CHP/DG technologies considered in this report include reciprocating engines, microturbines, combustion turbines, steam turbines (and associated boiler systems) and fuel cells. The technologies that are required when using opportunity fuels, such as gasifiers, are also considered. For each technology, the following information is collected and analyzed: history and status in the marketplace, operation, emissions controls, efficiency, equipment costs and modifications for each opportunity fuel, maintenance costs and issues with opportunity fuels, and common applications. From the information gathered, a set of cost, performance, efficiency, and emissions data is developed for each generator type consuming a particular opportunity fuel. The fourth section of this report analyzes availability and technical market potential of each fuel in detail, and the fifth section discusses the current status and future outlook for each fuel. From this, the top 5-6 opportunity fuels for DER/CHP applications are selected. These fuels are anaerobic digester gas, biomass gas, landfill gas, and wood waste. Combined Heat and Power Market Potential for Opportunity Fuels 1 Introduction An opportunity fuel is any type of fuel that is not widely used, but has the potential to be an economically viable source of power generation. Opportunity fuels are typically unconventional, and usually derived from some sort of waste or byproduct. Most of the time, opportunity fuels are inferior in one way or another to conventional fossil fuels, but this is to be expected. After all, the widespread use of coal, petroleum, and natural gas as fuel sources is not a random coincidence – they are plentiful resources with high heating values and easy combustibility