Patrick Barrett
Manager, Distributed Generation
Electric Power North America
Caterpillar Inc.
Efficient Enterprises
Powering American Industry
Washington DC
June 23, 2009
Advantages of Hiring UIUX Design Service Providers for Your Business
Combined Heat & Power, Energy Efficiency & Renewable Energy
1. Combined Heat & Power
Energy Efficiency & Renewable Energy
Patrick Barrett Efficient Enterprises
Manager, Distributed Generation Powering American Industry
Electric Power North America Washington DC
Caterpillar Inc. June 23, 2009
Caterpillar: Non-Confidential
2. Is this Tomorrow’s World?
Domestic Reserves in Decline
$7.00+ a Gallon Gasoline
Rise in Energy Poverty
60% CO2 Reduction
By 2050
Unsecured Energy Supply
20% gap in Electricity Generation vs. Demand
Caterpillar: Non-Confidential
Source: dti White Paper, “Meeting the Energy Challenge”, May 2007
3. Today’s Perspective:
Rejected Energy From Electric Generation Is Equal to All of the Oil
Imported to the US Every Year
“The energy lost in the United States from
wasted heat in the utility sector is greater
than the total energy use of Japan”.
DOE Energy Information Administration Annual Energy Review 2007
Caterpillar: Non-Confidential
4. Challenge: Rejected Energy & Wasted Heat
Can it be Captured & Used?
Yes, Through the Combined Heat & Power (CHP) Process
Caterpillar G16CM34 installed in Bramming
Denmark
80%+ Efficiency vs. 45% Efficiency
Caterpillar: Non-Confidential
5. What If CHP Represented 20% of US Generating
Capacity in 2030?
20 %
Same as Taking
61% of U.S. Car
Fleet Off of the
Road
20 % of U.S. Electricity Generating Capacity 240,900 MW
Annual Energy Savings 5.3 Quads
Annual CO2 Reduction 848 MMT
Annual Carbon Reduction 231 MMT
Number of Car Equivalents Taken Off Road 154 million
Source: ORNL
Caterpillar: Non-Confidential
6. Combined Heat & Power – Our Challenge
Where is the U.S. in Comparison to Other Countries?
Caterpillar: Non-Confidential
7. Combined Heat & Power – Barriers
Where is Support Needed on the Path to 20% Capacity in 2030?
These Determine
Key Support Barrier Hurdle Rate – and
“Investment
Decisions”
Incentives –
“As Good As Base” Business Model rate structure
Lower Cost, Better Technologies Energy Prices
DOE - “Better Ingredients and new Recipes” (electrical vs fuel)
Tax Policy –
Drive “Green” Capital Investment e.g. depreciation
Grid Transformation Grid Connections
Smart Grid – Distributed Energy New standards
Environmental –
Capture CO2 Benefits Recognition - Incentives 20% CHP capacity avoids
Caterpillar: Non-Confidential 60% CO2 Growth in 2030
8. Tomorrow’s World – Our Challenge
Support for Technologies That Deliver Prosperity
CHP Integration
ARES
System & Controls
CAT G3520
Component Technology R&D Productivity
- “The Cookie Ingredients” Growth
Jobs
- Applications for Engines,
Turbines & Thermal Tech
CHP Integration for Industry
- “The Cookie Recipe”
- Cost – Reliability – Optimization
- Target Industries - Chemicals,
Refining, Food Processing Competitive Low CO2
Caterpillar: Non-Confidential Security
9. Combined Heat & Power (CHP)
Forward Support – Next Steps
Technology
“R&D Funding
To Improve & Deploy
Technologies; and to
Lower Costs”
- DOE ITP
Business Productivity Support
Growth
Attractiveness Jobs
Commitment to Promote
Deployment of CHP to DOE
Incentives to Make CHP
CHP Vision & 2030 Plan
Profitable to the Utility
- Education
Business
- Customers
- ARRA
-Tax Credits
- DOE to State
- Depreciation
- DOE Advise Competitive Low CO2
Security
Caterpillar: Non-Confidential
10. CHP – 2030 Grand Challenge
Help us Fill in the Steps
6 Months 2010 2020 2030
ctics
Finding
rt Ta
Profitable
Business Models
p o
Sup
Developing
op Key
evel
Better
Technologies D
Addressing
Customer and
Public Needs
Overcoming
Inertia
Attracting
Resources
Developing
better public Caterpillar – Your Partner in Sustainability
policy
Caterpillar: Non-Confidential
11. Thank You –
Questions – Discussion - Contacts
THANKS to:
- DOE’s ORNL CHP Report; Dec. 1, 2008
- Vestal Tutterow and the Alliance to Save Energy
And YOU for your Attendance Today
Vestal Tutterow Paul Bostrom
Sr. Program Manager, Industrial Associate, Industrial Program
Program Alliance to Save Energy
Alliance to Save Energy (202) 530-2210
(202) 530-2241 PBostrom@ase.org
VTutterow@ase.org
Bob Gemmer Stephen Goguen
DOE Industrial Technologies Program DOE Industrial Technologies Program
Robert.Gemmer@ee.doe.gov stephen.goguen@ee.doe.gov
Clay Thompson Jason Lynn
Caterpillar Government Affairs Caterpillar Governmental Affairs
Caterpillar Inc. Caterpillar Inc.
(202) 466-0662 (202) 466-0670
Caterpillar: Non-Confidential Thompson_Clay@cat.com Lynn_Jason_M@cat.com