Cogeneration-- a Feasibility Screening Tool

Union University
References

Technical Issues
Fuel cost in $/mmBtu
Electrical cost in cents/kwh
Operating hours/year
Electric load in MW
Steam load in '000 lbs/hr
Steam Pressure requirement in psig

1. Turbo Steam (http://www.turbosteam.com)

2. Armstrong's Energy Management Council (1994) (http://www.armstrong-intl.com)
3. Solar Turbines Inc. (http://esolar.cat.com)
4. DOE (www.eren.doe.gov/der/chp/screeningtool.html)
5. http://www.cogen.org/Downloadables/Projects/EDUCOGEN_Cogen_Guide.pdf
6. http://www.energy.rochester.edu/cogen/chpguide.htm
7. http://www.eere.energy.gov/consumerinfo/refbriefs/ea6.html
8. http://www.aceee.org/energy/chp.htm
9. http://www.aceee.org/pubs/ie022.pdf
10. http://www.eere.energy.gov/femp/techassist/pdf/chicago_prince.pdf
Range of feasibility
from
to
Average
3
6
4.5
5
8
6.5
6000
8760
7380
1
10
5.5
10
100
55
10
80
45

Political Issues

Utility friendly?
State is on board with this technology?

Environmental Issues

Air permit restriction? New Source? NOx limited?

QF analysis and application from DOE

Ready for Next Step?

Please select one of the following tabs:

1. Gas Turbine tab for Gas Turbine Analysis, or
2. Steam Turbine tab for Steam Turbine Analysis, or
3. Recip Engine tab for Reciprocating Engine Analysis.

ol

//www.armstrong-intl.com)

GEN_Cogen_Guide.pdf

o_prince.pdf

Gas Turbine Cogeneration Feasibility and Economic Analyses

1.
2.
3.
4.
5.
6.
7.
8.
9.

What is the average electric load?

What is the average purchased power cost?
What is the average steam load?
What is the average purchased fuel cost?
What is the average total operating hours?
What is the average new purchased power as a result of the cogen unit?
What is the standby charge of power as a result of the cogen unit?
What is the O&M cost of a gas turbine?
Recommended based load for the cogeneration unit

Variable Input (All Are Required)

4000 kw
7.5 cents/kwh
20000 lbs/hr
4 $/mmBtu
8760 hrs/year
7.5 cents/kwh
10 $ per kw.mo
0.004 $ per kwh
4000 kw

***********************************************************************************************************************************************
Assumptions:
The following assumptions, which are standard, have been made. Change if better information is available
Electric load factor
80 %
Steam load factor
80 %
Shaft efficiency
35 %
Electrical capacity factor (ave kw output for the period per system kw capacity)
90 %
Thermal capacity factor (ave pph steam output for the period /system capacity)
95 %
Installed cost of the cogeneration unit
1100 $/kw
***********************************************************************************************************************************************
Calculations:
The following calculations have been performed from the above given data

Annual electric cost

Peak demand
Annual fuel cost

$
$

2,628,000
5000 kw
963,600

Cost without cogen option

3,591,600

Total Site's electrical requirement

Fuel input
Electrical output
Steam output
Installed cost
Cost of fuel
supplemental cost of electricity
Cost of standby power
O&M cost
Supplemental boiler fuel

$
$
$
$
$
$

35,040,000
307,431
35,040,000
15,952
4,400,000
1,424,746
480,000
140,160
72,337

Annual cogen operating cost

2,117,243

Economics:

Net savings
Simple Payback
ROI

1,474,357 per year

3.0 years
21

Environmental:

CO2 gas emission avoided

kwh
mmbtu
kwh
pph

13,403 metric tons /yr

Sensitivity Analysis for Gas Turbine Cogeneration Option

$4,100,000
$3,600,000
Operating
Cost
$3,100,000
$2,600,000
$2,100,000
$1,600,000
$1,100,000
$600,000
$100,000

Please select Steam Turbine tab to continue the analysis.

3.5
Payback Period (yrs)
3
2.5
2
1.5
1
0.5
0

Sensitivity Analysis of G

$4,000,000
$3,500,000
$3,000,000
Cost $2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000

c Analyses

l Are Required)

$ per kw.mo

******************************
tter information is available.

(range of 600 to 1500)

******************************

3.0

21

3.0

21

to generate electricity

metric tons /yr

Sensitivity Analysis of Gas Turbine Cogeneration Option

00
00
00
00
00
00
00
00

25
20
15
10
5
0

Return on Investment (%)

Steam Turbine Cogeneration Feasibility and Economic Analyse

1. What is the average electric load?
2. What is the average purchased power cost?
3. What is the average steam load?
4. What is the average purchased fuel cost?
5. What is the average total operating hours?
6. What is the average new purchased power as a result of the cogen unit?
7. What is the standby charge of power as a result of the cogen unit?
8. What is the O&M cost of a gas turbine?
9. What is the base load of the cogen unit?
10. What is the steam flow allocated to the steam turbine?

***********************************************************************************************************************************************
Assumptions:
The following assumptions, which are standard, have been made. Change if better information is availabe
Electric load factor
Steam load factor
Shaft efficiency
Electrical capacity factor (ave kw output for the period per system kw capacity)
Thermal capacity factor (ave pph steam output for the period per system capacity)
Installed cost of cogeneration unit
Steam-to-power rating
***********************************************************************************************************************************************
Calculations:
The following calculations have been performed from the above given data
Annual electric cost
Peak demand
Annual fuel cost
Cost without cogen option
Site's total electrical requirement
unit's power output
Fuel input
Electrical output
Steam output
Installed cost
Cost of fuel
Supplemental cost of electricity
Supplemental cost of steam
Cost of standby power
O&M cost

Economics:

Annual cogen operating cost

Net savings
Simple Payback
ROI

Environmental:

CO2 gas emission avoided

Sensitivity Analysis for Steam Turbine Cogeneration Option

$7,000,000

Sensitivity Analysis of Stea

$7,000,000
Payback Period (yrs)

$6,000,000
Operating Cost
$5,000,000

2.5

$4,000,000

1.5

$3,000,000

$3,000,000

$2,000,000

0.5

$2,000,000

$1,000,000

$1,000,000

Please select Recip Engine tab to continue with the analysis.

$6,000,000
$5,000,000
Cost $4,000,000

n Feasibility and Economic Analyses

Variable Input (All Are Required)
4,000 kw
7.5 cents/kwh
80,000 lbs/hr
4 $/mmBtu
8,760 hrs/year
7.5 cents/khw
10 $ per kw.mo
0.002 $ per kwh
3000 kw
66000 pph

*************************************************************
e been made. Change if better information is availabe.
80 %
80 %
30 %
90 %
95 %
700 $/kw
22 pph/kw

range of 500 - 700

*************************************************************
m the above given data
$
$

2,628,000 per year

5000 kw
3,854,400 per year

6,482,400 per year

$
$
$
$
$
$
$
$

35,040,000 kwh/yr
3000 kw
298,891 mmbtu
23,652,000 kwh
66,000 pph
2,100,000
3,854,400
854,100
254,390
600,000
52,560
5,615,450
866,950 per year
2.4 years
27

to generate electricity

90% cogeneration availability

2.4222861398
2.4222861398

27
27

7,881 metric tons /yr

Sensitivity Analysis of Steam Turbine Cogeneration Option

$7,000,000

30

$6,000,000

25

$5,000,000

20

Cost $4,000,000

15

$3,000,000

10

$2,000,000

$1,000,000

Return on Investment (%)

Reciprocating Engine Cogeneration Feasibility and Economic Analyses

1. What is the average electric load?
2. What is the base load of the cogen unit?
2. What is the average purchased power cost?
3. What is the average steam flow?
4. What is the average purchased fuel cost?
5. What is the average total operating hours?
6. What is the average new purchased power as a result of the cogen unit?
7. What is the standby charge of power as a result of the cogen unit?
8. What is the O&M cost of a gas turbine?

Variable Input (All Are Required)

4,000 kw
1000 kw
7.5 cents/kwh
20,000 pph
4 $/mmBtu
8,760 hrs/year
7.5 cents/kwh
10 $ per kw.mo
0.009 $ per kwh

***********************************************************************************************************************************************
Assumptions:
The following assumptions, which are standard, have been made. Change if better information is available
Electric load factor
Steam load factor
Shaft efficiency
Electrical capacity factor (ave kw output for the period per system kw capacity)
Thermal capacity factor (ave pph steam output for the period per system capacity
Installed cost
percent system availability per year

80 %
80 %
40 %
90 %
95 %
1000 $/kw
90 %

***********************************************************************************************************************************************
Calculations:
The following calculations have been performed from the above given data
Annual electric cost
Annual fuel cost

$
$

2,628,000
963,600

Cost without cogen option

3,591,600

$
$
$
$
$
$

67,251 mmbtu/yr
8,760,000 kwh
3,490 pph
1,000,000
1,017,683
1,971,000
120,000
78,840
15,824

Fuel input
Electrical output
Steam generated
Installed cost
Cost of fuel
supplemental cost of electricity
Cost of standby power
O&M cost
Supplemental boiler fuel

Economics:

Environmental:

Annual cogen operating cost

Net savings
Simple Payback
ROI
CO2 gas emission avoided

$
$

3,203,347
388,253 per year
2.6 years
25
3,530 metric tons /yr

Sensitivity Analysis for Recip Engine Cogeneration Option

$3,800,000
$3,300,000
Operating Cost
$2,800,000
$2,300,000
$1,800,000
$1,300,000
$800,000
$300,000

3
2.5
2
1.5
1
0.5
0

Payback Period (yrs)

Sensitivity Analysis of Recip En

$3,800,000
$3,300,000
$2,800,000
Cost $2,300,000
$1,800,000
$1,300,000
$800,000
$300,000

Please select ROI tab to review the Return on Investments of the 3 cogeneration technologies

mic Analyses

Are Required)

$ per kw.mo

*****************************
ter information is available.

range of 800 to 2000

*****************************

to generate electricity

2.57564
0

metric tons /yr

25
25

vity Analysis of Recip Engine Cogeneration Option

30
25
20
15
10
5
0

Return on Investment (%)

Return on Investment Calculations

Average net savings per year
Less cost of depreciation
Income before tax
Less income tax costs (@ 31%)
Net income per year (average)
Incremental capital required
Return-on-Investment (RoI)

$
$
$
$
$
$

Gas Turbine Option

1,474,357
(110,000)
1,364,357
(422,951)
941,406
4,400,000
21

$
$
$
$
$
$

Steam Turbine Option

866,950
(52,500)
814,450
(252,479)
561,970
2,100,000
27

Cogeneration Technology
Economic Consideration
$1,000,000
$900,000
$800,000
Investment
Cost
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-

30
25
20
15
10
5
0

Return on Investment (%)

ment Calculations
$
$
$
$
$
$

Recip Engine Option

388,253
(25,000)
363,253
(112,608)
250,645
1,000,000
25

Environmental Benefits
Greenhouse Gas Emission Equivalent acres of
Reduction Metric Tons CO2 Trees to be planted
Gas Turbine
13,403
2,949
Steam Turbine
7,881
1,734
Recip Engine
3,530
777