Combined Heat & Power, Energy Efficiency & Renewable Energy


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Patrick Barrett
Manager, Distributed Generation
Electric Power North America
Caterpillar Inc.

Efficient Enterprises
Powering American Industry
Washington DC
June 23, 2009

Published in: Technology, Business
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Combined Heat & Power, Energy Efficiency & Renewable Energy

  1. 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. 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. 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. 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. 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. 6. Combined Heat & Power – Our Challenge Where is the U.S. in Comparison to Other Countries? Caterpillar: Non-Confidential
  7. 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. 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. 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. 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. 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 Bob Gemmer Stephen Goguen DOE Industrial Technologies Program DOE Industrial Technologies Program Clay Thompson Jason Lynn Caterpillar Government Affairs Caterpillar Governmental Affairs Caterpillar Inc. Caterpillar Inc. (202) 466-0662 (202) 466-0670 Caterpillar: Non-Confidential