1. GE Gas Engines. NARUC Winter Meeting - 2013. Jonathan Hesener. Regional
Sales Director. GE Gas Engines. North America. Combined Heat and Power ...
Combined Heat and Power (CHP) & Waste Heat to Power (WHP) GE Gas Engines
Jonathan Hesener Regional Sales Director GE Gas Engines North America
1 GE Gas Engines NARUC Winter Meeting - 2013
What is our path forward?
Today
Tomorrow
2 GE Gas Engines NARUC Winter Meeting - 2013
What is our path forward? Fast Green Today
• Moderate to strong global economic growth • Post-Kyoto international climate agreement reached • Clean tech industry rapidly expands • Renewables flourish 3 GE Gas Engines NARUC Winter Meeting - 2013
What is our path forward? Today
Slow Brown • Weak global economic growth • Weak commodity and fuel prices • Economic concerns take priority over global environment • Protectionism increases • Unconventional gas supplies disappoint 4 GE Gas Engines NARUC Winter Meeting - 2013
What is our path forward? Fast Blue Today
• Global economic growth regains strength • Commodity and fuel prices stabilize • Moderate clean energy technology innovation • Natural gas flourishes
5 GE Gas Engines NARUC Winter Meeting - 2013
What Fast Blue may mean in the US Rethinking the role of gas
“Bridge Fuel” …Old Way
“Destination Fuel” …New Way
• Role of gas temporary ‘bridge’ to low carbon economy
• Role of gas key long term solution to achieving a low carbon economy
• Gas supply constrained
• Gas supplies abundant
• Many countries facing future of high import dependency
• Countries facing a more secure energy future
• Development was driven mainly by project economics
• CHP and Waste Heat to Power (WHP) development driven by energy infrastructure dynamics
© General Electric
6 GE Gas Engines NARUC Winter Meeting - 2013
We are prepared for a Fast Blue world GE Aero 16MW-100MW Jenbacher gas engines 335kW to 8.7MW
Waukesha gas engines 119kW to 3.6MW
Clean CycleTM 125kW
© General Electric
7 GE Energy Gas Engines USCHPA Annual Meeting – October 2011
Fuel Flexibility and Tailor-Made Solutions Coal mine gas
Waste Heat to Power
Landfill gas
Sewage gas
Oilfield applications (AP gas)
Island mode
Special gases
Cogeneration (Natural gas) Greenhouse applications
Biogas 8 GE Gas Engines NARUC Winter Meeting - 2013
GE’s definition of “Cogeneration”
CHP and WHP are part of the same family 9 GE Gas Engines NARUC Winter Meeting - 2013
CHP and WHP in the US Existing CHP & WHP Segment • 85 GW installed at 3,364 sites • 10% of total U.S. generating capacity (12% of generation) • 1.9 QBTU’s of fuel use saved per year • 240 Mtons of CO2 emissions eliminated annually US CHP/WHP Segment Potential by Industry and Size Class
Technical Potential for CHP & WHP
80
In Megawatts, MW
64
• 132 GW (64 GW industrial, 68 GW commercial)
60
• 47% (62 GW) is found in sites between 1 – 20 MW in output size
40
• 1 – 20 MW is GE Jenbacher focus
20
68 >20 MW
5 - 20 MW
>20 MW 1 - 5 MW 5 - 20 MW
1 - 5 MW
50 - 1000 kW
50 - 1000 kW
0
Industrial ICF International 1 GW (Gigawatt) = 1000 MW (Megawatt)
Commercial
10 GE Gas Engines NARUC Winter Meeting - 2013
Technical Opportunities for CHP & WHP Top Sectors, 1 – 20 MW Textiles 4% Primary Metals 4% Petroleum Refining 4%
Chemicals 39%
Industrial 36 GW
Data Centers 2% Multifamily Buildings 4% Other 5%
Commercial 30 GW
Hotels 6%
Other 21%
Commercial Buildings 44%
Prisons 7% Paper 15%
Food 13%
Govt. Buildings 8%
Top States, 1 – 20 MW Michigan 3%
Other 48%
New York 4% Wisconsin 4% Georgia 4% Illinois 5% North Carolina 5% Pennsylvania 5%
College/Universities 11%
Hospitals 13%
Other 48%
Ohio 3% Illinois 4%
Industrial 36 GW
Pennsylvania 6% Texas 8%
Ohio 6%
Commercial 30 GW
New Jersey 4%
California 8%
Florida 6% Texas 6% ICF International 1 GW (Gigawatt) = 1000 MW (Megawatt)
California 11%
New York 12%
11 GE Gas Engines NARUC Winter Meeting - 2013
Project Economics and Spark Spread
Venty Velocity Suite – 02.27.12
Darker colors represent higher electric rates (¢/kWh) 12 GE Gas Engines NARUC Winter Meeting - 2013
CHP project economics…payback Payback Analysis, Varying the Price of Natural Gas & Electricity Engines Sizes for Electrical Load
Electricity Price, $/kWh
Natural Gas Price, $/MMBtu
$0.06 $0.07 $0.08 $0.09 $0.10 $0.11 $0.12 $0.13 $0.14 $0.15
$5 9.1 5.2 3.6 2.8 2.3 1.9 1.6 1.4 1.3 1.2
$6 16.2 6.9 4.4 3.2 2.5 2.1 1.8 1.6 1.4 1.2
$7 72.5 10.3 5.5 3.8 2.9 2.3 1.9 1.7 1.5 1.3
$8 -29.2 20.4 7.6 4.6 3.3 2.6 2.1 1.8 1.6 1.4
$9 -12.2 945.4 11.8 6.0 4.0 3.0 2.4 2.0 1.7 1.5
$10 -7.7 -21.3 27.5 8.4 4.9 3.5 2.7 2.2 1.9 1.6
$11 -5.6 -10.5 -85.7 14.0 6.5 4.2 3.1 2.5 2.0 1.7
$12 -4.4 -7.0 -16.8 42.3 9.3 5.3 3.7 2.8 2.3 1.9
$13 -3.6 -5.2 -9.3 -41.0 17.0 7.0 4.4 3.2 2.5 2.1
$14 -3.1 -4.2 -6.4 -13.8 91.7 10.6 5.6 3.8 2.9 2.3
Greater than 5-year payback Less than 5-year payback
13 GE Gas Engines NARUC Winter Meeting - 2013
www.dresserwaukesha.com www.gejenbacher.com www.geheatrecovery.com
Jonathan Hesener Regional Sales Director GE Gas Engines, North America 14 +1 518GE 227 Gas5806 Engines
[email protected] NARUC Winter Meeting - 2013