&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

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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

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 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

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    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
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