&EPA United States Environmental Protection Agency Industrial Environmental Research Laboratory Cincinnati OH 45268 Research and Development EPA-600/S7-82-017 August 1982 Project Summary An Assessment of Central- Station Cogeneration Systems for Industrial Complexes N. B. Hilsen, G. R. Fletcher, D. L Kelley, J. S. Tiller, S. W. Day, M. E. Denen, and B. L Blaney This project assesses the potential for central-station cogeneration system development based on an analysis of the economic, environmental, energy effi- ciency and social impacts of such sys- tems. In this study the cogeneration sys- tem consists of a utility-sized power plant which supplies both the electrical and steam needs of a number of nearby industries. Such a system can result in increased energy efficiency, reduced pollutants, and reduced overall cost. A number of methodological approaches, including environmental impact analysis, cost-benefit analysis, and social impact analysis were used to investigate issues relevant to cogeneration system devel- opment. This Project Summary was developed by EPA's Industrial Environmental Re- search Laboratory, Cincinnati, OH, to announce key findings of the research project that is fully documented in a sep- arate report of the same title (see Project Report ordering information at back). Introduction The type of cogeneration system con- sidered in this report is one in which a large utility power plant supplies both electricity and steam to a group of local industries. The industries are located within a few kilometers of each other. The study compares such a system with one in which electricity and process steam are supplied from separate energy sources. The latter, decentralized energy supply system, is called a "conventional energy system" Figure 1 shows two hypothetical sys- tems which were compared in depth in this project. Six, 909 Mg/day (1000 TPD) chlorine-caustic soda plants are to be supplied with a total of 660 MW of electrical power and 363 kg/sec (2,880,000 Ib/hr) of steam at 303 kPa (30 psig) and 288 °C (550 °F). In the conventional energy system this energy is supplied by a 1100 MW(e) power plant and six industrial boilers. In the Co- generation system most of the electricity and all of the steam is supplied from the power plant, while additional electricity is supplied from another power plant in the utility's grid. (The dashed lines in the Figure bound those parts of the cogener- ation system which are located in close proximity.) The idealized industrial complex which was analyzed in depth in the project con- sists only of chlorine-caustic soda plants. Pulp and paper mills, textile mills and phosphoric acid plants, were originally considered for possible inclusion. The most important characteristics of these industries are the quantity and quality of steam required. In general, these indus- tries use large amounts of electrical energy, as well as steam at pressures below 3450 kPa (500 psiy. Although the study focussed on coal-fired utility power plants, the economic and social impacts ------- of using nuclear power were also consid- ered. Industrial boilers were assumed to be coal-fired. The energy analysis included compar- ing the total energy consumption of the cogeneration system and the conven- tional energy systems. A computer model was developed to calculate the significant operating parameters of both systems. The energy system included boilers, turbines, generators and piping. Energy use by the air pollution control system employed on coal-fired boilers was also included in the analysis. A cost-benefit analysis determined the economic viability of the cogenera- tion system. A computer program called Model for Assessment of Integrated Energy Systems (MAIWS)*, was used to compare costs of the cogeneration and conventional energy systems. A sensitivity analysis on factors which ef- fect the cost of system energy produc- tion was also made. The factors included power plant and industrial boiler capa- city, fuel type, nuclear reactor type, fuel costs, and steam transport distance. The study considered the following environmental impacts for industrial boiler and coal-fired power plants: (1) air emissions, (2) water consumption, (3) solid waste production, and (4) water quality. The costs of different types of air pollution and water pollution control systems were also compared. An analysis was made to determine how wastewater treatment costs could be reduced in industrial complexes which incorporate several different types of industries. The recycling of wastes, as well as using wastes from one industry to treat those from another was considered. The study determined both capital, and operation and mainte- nance (O & M) cost savings for these two options. The study identified the institutional constraints on developing and operating a central-plant cogeneration system and analyzed the socioeconomic impacts which would occur from such concen- trated industrial development. Major im- pacts that would be caused by demo- graphic changes in the host community during the construction and operation of a cogeneration system were estimated. (For example, the influx of construction workers and their families may put a strain on the local school system.) The study also identified general policies and siting considerations which might miti- gate undesirable impacts due to large demographic changes. Since this study considered a hypo- thetical system, the quantitative results are not directly applicable to other Co- generation systems. However, the me- thodology used to analyze these hypo- thetical systems should be applicable to real ones and the observed trends lead to important general conclusions about the benefits and drawbacks of cogeneration development. Findings and Conclusions Both benefits and problems were found with central-station cogeneration systems. But with proper design, most significant problems can be overcome. Energy Efficiency Impacts As expected, fuel savings occurred when switching from the conventional to a cogenerating energy supply system. For the case study considered here, fos- sil fuel consumption was reduced by 1 5 percent (assuming that industrial boilers in the conventional energy system oper- ate at 80% efficiency). The efficiency of the central-station power plant increased from 32% to 57% when it was convert- ed to the cogeneration mode. Energy production efficiency of the whole sys- tem (including supplementary utility ca- pacity) increased from 46% to 54%. Economic Impacts Costs for construction, O&M, and fuel for the conventional energy and Co- generation systems were evaluated. Table 1 presents the capital costs and the first year O&M and fuel costs for both systems. Fuel savings achieved by using cogeneration offset the incremen- tal costs of the cogeneration system Conventional Energy System 12.4 TJ/hr (11,800 Mbtu/hr) 660 Mw £ 1 Industry 5450 Mg/day (6000 TPD) C/2 Stea \363i (2,88 Boiler m kg/sec 0.000 Ib/hr) Cogeneration System 12.4 TJ/hr Utility Steam (Crossover) I" 367 kg/se Condensate '906~Mw ~' Industry 5450Mg/day C/2 . 660 Mw Figure 1. Hypothetical energy systems compared in study. Table 1. Comparison of System Costs (Millions of 1977 Dollars) A B •Previously developed by Oak Ridge National Laboratories. Cost component Capital First year O&M First year fuel Conventional System 538.2 21.9 129.8 Cogeneration System 560.8 22.0 109.1 Net B - A 22.6 0.1 -20.7 ------- after less than 2 years of operation. In terms of 1977 dollars, the 30-year life cycle net present value (NPV) of choos- ing the cogeneration system was $ 234.5 M, or approximately ten times the addi- tional capital costs. The economic sensitivity analysis showed that final costs and discount rates have the greatest influence on NPV of the cogeneration system. Next in im- portance are the capital and O&M costs of utility power plants and industrial boilers. Capital and O&M costs of cool- ing towers, piping, and pollution control equipment have much less influence on NPV. Environmental Impacts Reduced coal consumption in industrial complexes which have central-station cogeneration systems reduces the pro- duction of environmentally harmful resi- duals, and has the potential for reducing pollution control costs. However, high emission densities may occur at the site of the industrial complex causing local environmental problems. For the cogeneration system analyzed in this report, substantial reductions in criteria pollutant emissions occurred from those generated by the conven- tional energy system. Pollutant reduc- tions are listed in Table 2. Total reduc- tion in air pollution control costs was approximately $7M. Compared with a conventional system, a cogeneration system reduces water consumption because of its increased efficiency. Total water requirements for the industrial complex will depend on the industries located there. From a national viewpoint, significant amounts of water can be saved. However, there is the pos- sibility that water demands from a par- ticular cogeneration system and indus- trial complex will be so high that signifi- cant demands on the local water supply will occur. Coal-fired cogeneration systems will use substantial amounts of land for dis- posal of solid waste. However, land de- voted to the disposal of solid waste is reduced in comparison with a conven- tional energy system by the percentage increase in efficiency. If flue gas desul- furization is used for control of sulfur ox- ides emissions, the reduction in land re- quired is important because the land committed for disposal of flue gas desul- furization solid waste cannot be used for any other purpose until the land has been properly reclaimed. Table 2. Annual Residual Reductions (Kg/Yr) Air Pollutants Particulates 8.2 x 1Q5 Sulfur Oxides 3.6 x 106 Nitrogen Oxides 3.2 x 706 Carbon monoxide 8.6 x 10s Hydrocarbons 4.1 x 10s Solid Waste* Ash and flue gas desulfurization (FGD) sorbent 1.8 x 108 Ash and fluidized bed combustion (FBC) sorbent 2.7 x 108 *Reduction in solid waste was calculated for each of two different SO2 reduction options The advantages of centralizing waste- water treatment facilities are an impor- tant indirect impact of cogeneration which result from the close proximity of different industries. The financial bene- fits are small compared to the savings from energy efficiency improvements; however, they are significant when com- pared to pollution control costs. For in- stance, combining wastewater treat- ment facilities of a 909 Mg/day (1000 ton per day) pulp and paper mill with a 189 Mg/day (208 ton per day) carpet mill would result in $980,000 in capital cost savings and $495,200 in annual O&M costs (1977 dollars). Four other similar combinations of industries were analyzed in the report to determine the financial benefits of combined waste- water treatment. Institutional and Social Impacts The social impacts of cogeneration are inversely related to the size of the host community. Large host communities have a greater capacity to accommodate the cogeneration system needs than small communities. A cogeneration sys- tem located in a sufficiently large com- munity would induce a moderately posi- tive rate of economic growth. Changes in small host communities arising from cogeneration system construction may be so large and so sudden that the changes will be detrimental. One factor which was an important determinant of social impacts on com- munities of any size was the degree to which industrial and power plant con- struction were coordinated. A properly phased construction schedule can reduce peak adverse impacts by 20% to 50%. Only slightly larger social impacts aris- ing from demographic changes will occur if a nuclear plant is constructed instead of a coal-fired plant. This difference is principally due to higher labor demands during nuclear power plant construction. Recommendations Cogeneration System Planning and Design Energy efficiency is optimized when industries locate as close as possible to utility power plants. The power plant should maximize the amount of low pressure steam extracted for industrial use. Industrial processes should be de- signed with process steam requirements which easily interface with the cogener- ation system. Steam extracted for industrial use should not exceed 6.9 MPa (1000 psi) or 430 °C (800 °F). The minimum pres- sure of transported steam should be 700 kPa (100 psi) and at saturated condi- tions. Industries should require large quantities of low pressure steam to ob- tain maximum system efficiencies. The industries should condense the steam and return it to the power plant for reuse. In-plant generation of steam would be an economically better approach when distances between industries and utilities exceed several kilometers. The specific distance depends on technical and eco- nomic factors of each individual system. Centralization of other facilities (e.g. air pollution control and wastewater treatment) should be undertaken when possible. Industrial cositing should be particularly sought when opportunities exist for waste products from one indus- try to be used as raw materials for another. The host community for the cogenera- tion system in this study should have greater than 30,000 employees in a population of 100,000 to avoid signifi- cant negative social impacts. The con- struction schedule should be closely managed in order to reduce the extra de- mands on public facilities. In particular, manpower planning should minimize the need for new workers. Strict housing regulations should be used to control .short-term housing problems. US. GOVERNMENT PRINTING OFFICE: 1982-559-017/0772 ------- Further Research and Program Development Cogeneration systems have the po- tential for producing energy savings and environmental benefits which coincide with federal energy and environmental goals. However, each proposed system must be analyzed on a case-by-case basis. The authors of the study recom- mend the development of programs to provide incentives and guidelines for en- vironmentally safe cogeneration systems. Site-specific impact analyses of hypo- thetical cogeneration systems located in communities with different characteris- tics could be conducted using ambient air quality modeling, social impact analy- sis, and institutional barrier identifica- tion and evaluation. Two areas which are particularly in need of further study are: (1) reduced cost of pollution control through centralized treatment facilities which utilize process or power plant waste heat, and (2) land use impacts of pollution control alternatives (e.g. fluid- ized bed combustion) which produce large quantities of solid wastes. Although the impacts of each system will be site- specific, a series of case studies should be made to obtain impact trends. An overall environmental study should be performed to examine the impact of environmental regulations on cogenera- tion development and to study the im- pact of formulating environmental stan- dards which encourage proper siting of cogeneration systems. The use of ex- tracted heat for industrial processes, and the use of cogenerated heat for dis- trict heating and cooling, and for agricul- tural and aquacultural applications could be incorporated in any future research and environmental policy development. A detailed guidebook on the use of power plant or process waste heat for wastewater treatment is also recom- mended. N. B. Hilsen, G. R. Fletcher, D. L. Kelley, J. S. Tiller, and S. W. Day are with Georgia Institute of Technology, Atlanta, GA 30332; the EPA authors M. E. Denen and B. L. Blaney (also the EPA Project Officer, see below) are with the Industrial Environmental Research Laboratory, Cincinnati, OH 45268. The complete report, entitled "An Assessment of Central-Station Cogeneration Systems for Industrial Complexes," (Order No. PB 82-232 372; Cost: $18.00, subject to change) will be available only from: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Telephone: 703-487-4650 The EPA Project Officer can be contacted at: Industrial Environmental Research Laboratory U.S. Environmental Protection Agency Cincinnati, OH 45268 United States .Environmental Protection Agency Center for Environmental Research Information Cincinnati OH 45268 Postage and Fees Paid Environmental Protection Agency EPA 335 Official Business Penalty for Private Use $300 RETURN POSTAGE GUARANTEED AGENCY ------- |