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Application of industrial heat pumps
Proven applications in 2012 for Megawatt+
Heatpumps within a technical, commercial and
sustainable framework



Dave Pearson, Director of Innovation, Star Refrigeration Ltd
Philippe Nellissen, Product Manager Industrial applications,
Emerson Climate Technologies GmbH
Emerson Is a Leader in Its Core Global
    Businesses & Markets




              #1 AC & DC Power Systems                     #1 Control Valves                          #1 Compressors
              #1 OEM Embedded Power                        #1 Measurement Devices                     #1 Controls
              #1 Precision Cooling Systems                 #1 Wireless Devices
              #1 Access & Control (KVM)
              #1 Power Switching & Controls




          2011
    US $24.2 Billion
        in Sales
                                   #1 Alternators                               #1 Food Waste Disposer
                                   #1 Fluid Control                             #1 Plumbing Tools
                                   #1 Ultrasonic Welding                        #1 Wet/Dry Vacuums
                                                                                #1 Mobile Point-of-Care Carts

2
Emerson Climate Technologies
    Core Offerings & Key Brands




     Residential Heating           Commercial Heating                  Commercial &                   Electronic Services
     & Air Conditioning             & Air Conditioning             Industrial Refrigeration               & Solutions
     Technologies that deliver      High-quality, reliable and     Proven refrigeration solutions        Facility design,
    indoor comfort and reduce    energy efficient HVAC solutions             to protect             commissioning and energy
           energy costs                  for every type                 and safeguard food          management, including 24/7
                                         of work space                 and the environment              energy monitoring


                           Sales                   2011 Sales                                $4.0B



3
Star Refrigeration

    Largest in                 350+
                 Est. 1970
       UK                    employees




4
Where’s the value for Industrial Heat Pumps ?

               Heat                   Heat
               Source                Needs

             Equipment               End-User
             Capability                Vision



                         Return On
                        Investment

5
Source and Need: How does it work?




    Other sources ?

       High temperature (high pressure) needed
       Low pressure ratio capability (two-stage) needed
6
The compressor is the engine of the application


  Single
  Screw
Technology



       61.5 bar std
     operating point-
          99°C




 7
Our Working fluid is R717 Ammonia
     GWP
     2000


     1500


     1000


      500


        0
            R134a   R407C   R410A   R717


8
The limits of any application - pressure
    Same Temperature as Hot Water Boiler

      61.5 Bar




                            99°C
9
Factors affecting economic viability
        Investment; likely 10x cost of a gas burner
        Operating cost – spare parts (remember the Red line
         analogy!)
         – An emerging market but little life cycle data over 10 years
        Reliability
         – Uptime is crucial (a heatpump can’t save money if it isn’t operating)
        ROI
         – Complex assessment - hourly energy cost variances
         – Options for power company rebates if managed connection accepted
        COP > Elec price/gas price
         – OPEX SAVING FOR CAPEX PAYBACK


10
Factors affecting economic viability
      Heat      Cost of        Cost of                      Capital                  Cost Gas      Cost of Heatpump       Break Even
                                           COPb COPh                Utilisation
     Demand       Gas        Electricity                     cost                    Heating                Q                Point
       kW       €/kWh          €/kWh                        €/KW     hrs/pa           €/pa                €/pa               Years
      1000       0.030          0.080       0.8      3       350       4000          150,000            106,667              8.08

 Heat Demand Cost of Gas Cost of Electricity COPb   COPh   Capital cost Utilisation Cost Gas Heating Cost of Heatpump Q Break Even Point
      kW       €/kWh          €/kWh                          €/KW        hrs/pa           €/pa               €/pa            Years
     1000       0.030          0.080          0.8    3        350          4000          150000            106667             8.08
     1000
     1000
                0.030
                0.030
                               0.080
                               0.080
                                    A simple model of
                                              0.8
                                              0.8
                                                     3
                                                     3
                                                              333
                                                              316
                                                                           4000
                                                                           4000
                                                                                         150000
                                                                                         150000
                                                                                                           106667
                                                                                                           106667
                                                                                                                              7.67
                                                                                                                              7.29
     1000
     1000
                0.030
                0.030
                               0.080
                               0.080 • Cost   0.8
                                              0.8
                                                     3
                                                     3
                                                              300
                                                              285
                                                                           4000
                                                                           4000
                                                                                         150000
                                                                                         150000
                                                                                                           106667
                                                                                                           106667
                                                                                                                              6.92
                                                                                                                              6.58

                                     • Utility price
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000
     1000
                0.030
                0.030
                               0.080
                               0.080 • Efficiency
                                              0.8
                                              0.8
                                                     3
                                                     3
                                                              285
                                                              285
                                                                           4000
                                                                           4000
                                                                                         150000
                                                                                         150000
                                                                                                           106667
                                                                                                           106667
                                                                                                                              6.58
                                                                                                                              6.58

                                     • Break Even Point
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58
     1000       0.030          0.080          0.8    3        285          4000          150000            106667             6.58



11
Factors affecting economic viability
      Heat     Cost of     Cost of                 Capital                 Cost Gas   Cost of Heatpump   Break Even
                                       COPb COPh             Utilisation
     Demand     Gas      Electricity                 Cost                  Heating             Q            Point
       kW      €/kWh       €/kWh                    €/kW      hrs/pa        €/pa             €/pa           Years
      1000     0.030       0.080       0.8   3      350        4000                                         8.08
                                                                           150,000        106,667

      Heat     Cost of     Cost of                 Capital                 Cost Gas   Cost of Heatpump   Break Even
                                       COPb COPh             Utilisation
     Demand      Gas     Electricity                 Cost                  Heating             Q            Point
       kW      €/kWh       €/kWh                    €/kW      hrs/pa         €/pa            €/pa           Years
      1000      0.030       0.080      0.8   3       350       4000         150000         106667           8.08
      1000      0.030       0.080      0.8   3       333       4000         150000         106667           7.67
      1000      0.030       0.080      0.8   3       316       4000         150000         106667           7.29
      1000      0.030       0.080      0.8   3       300       4000         150000         106667           6.92
      1000      0.030       0.080      0.8   3       285       4000         150000         106667           6.58
      1000      0.030       0.080      0.8   3       285       4000         150000         106667           6.58

                                          8 Years B.E.P!
                                         Make it cheaper?

              But lowering the cost by 5% “ 4times” makes
12                           little difference.
Factors affecting economic viability
      Heat    Cost of     Cost of                 Capital                 Cost Gas   Cost of Heatpump   Break Even
     Demand     Gas     Electricity   COPb COPh     cost    Utilisation   Heating             Q            Point
       kW     €/kWh       €/kWh                    €/kW      hrs/pa         €/pa            €/pa           Years
      1000     0.030       0.080      0.8    3      350        4000        150000         106667           8.08
      1000     0.030       0.080      0.8   3.1     350        4000        150000         103226           7.48
      1000     0.030       0.080      0.8   3.2     350        4000        150000         100000           7.00
      1000     0.030       0.080      0.8   3.3     350        4000        150000          96970           6.60
      1000     0.030       0.080      0.8   3.4     350        4000        150000          94118           6.26
      1000     0.030       0.080 8 Years B.E.P!
                                      0.8   3.5     350        4000        150000          91429           5.98
      1000
      1000
               0.030
               0.030
                          Make it better – higher COP!
                           0.080
                           0.080
                                      0.8
                                      0.8
                                            3.6
                                            3.7
                                                    350
                                                    350
                                                               4000
                                                               4000
                                                                           150000
                                                                           150000
                                                                                           88889
                                                                                           86486
                                                                                                           5.73
                                                                                                           5.51
      1000     0.030       0.080      0.8   3.8     350        4000        150000          84211           5.32
      1000     0.030       0.080      0.8   3.9     350        4000        150000          82051           5.15
      Increasing the COP by 50% halves the B.E.P. And
      1000
      1000
               0.030
               0.030
                           0.080
                           0.080
                                      0.8
                                      0.8
                                             4
                                            4.1
                                                    350
                                                    350
                                                               4000
                                                               4000
                                                                           150000
                                                                           150000
                                                                                           80000
                                                                                           78049
                                                                                                           5.00
                                                                                                           4.86
      1000
      1000
               0.030
               0.030
                     can be easy to do.
                           0.080
                           0.080
                                      0.8
                                      0.8
                                            4.2
                                            4.3
                                                    350
                                                    350
                                                               4000
                                                               4000
                                                                           150000
                                                                           150000
                                                                                           76190
                                                                                           74419
                                                                                                           4.74
                                                                                                           4.63
      1000     0.030       0.080      0.8   4.4     350        4000        150000          72727           4.53
      1000     0.030       0.080      0.8   4.5     350        4000        150000          71111           4.44
      1000     0.030       0.080      0.8   4.6     350        4000        150000          69565           4.35




13
Factors affecting economic viability
      Heat    Cost of     Cost of                 Capital                 Cost Gas   Cost of Heatpump   Break Even
     Demand     Gas     Electricity   COPb COPh     cost    Utilisation   Heating             Q            Point
       kW     €/kWh       €/kWh                    €/kW      hrs/pa        €/pa             €/pa           Years
      1000     0.030       0.080       0.8   3      350        4000       150000          106667           8.08
      1000     0.030       0.084       0.8   3      350        4000       150000          112000           9.21
      1000     0.030       0.088       0.8   3      350        4000       150000          117600          10.80
      1000     0.030       0.093       0.8   3      350        4000       150000          123480          13.20
      1000     0.030       0.097       0.8   3      350        4000       150000          129654          17.20
      1000     0.030       0.102       0.8   3      350        4000       150000          136137          25.25
      1000     0.030       0.107       0.8   3      350        4000       150000          142944          49.60
      1000     0.030       0.113       0.8   3      350        4000       150000          150091            NA
      1000     0.030       0.118       0.8   3      350        4000       150000          157595            NA
      1000     0.030        The Dooms Day Scenario
                           0.124       0.8   3      350        4000       150000          165475            NA
      1000     0.030       0.130       0.8   3      350        4000       150000          173749            NA
      1000     0.030     widening Gas vs. Electricity price
                           0.137       0.8   3      350        4000       150000          182436            NA
      1000     0.030       0.144       0.8   3      350        4000       150000          191558            NA
      1000     0.030       0.151       0.8   3      350        4000       150000          201136            NA
      1000     0.030       0.158       0.8   3      350        4000       150000          211193            NA
      1000     0.030       0.166
                                      Time to go to the Pub!
                                       0.8   3      350        4000       150000          221752            NA
      1000     0.030       0.175       0.8   3      350        4000       150000          232840            NA




14
Factors affecting economic viability
      Heat    Cost of     Cost of                 Capital                 Cost Gas   Cost of Heatpump   Break Even
     Demand     Gas     Electricity   COPb COPh     cost    Utilisation   Heating             Q            Point
       kW     €/kWh       €/kWh                    €/kW      hrs/pa        €/pa             €/pa           Years
      1000     0.030       0.080      0.8   3       350        4000       150000          106667           8.08
      1000     0.032       0.084      0.8   3       350        4000       157500          112000           7.69
      1000     0.033       0.088      0.8   3       350        4000       165375          117600           7.33
      1000     0.035       0.093      0.8   3       350        4000       173644          123480           6.98
      1000     0.036       0.097      0.8   3       350        4000       182326          129654           6.64
      1000     0.038       0.102      0.8   3       350        4000       191442          136137           6.33
      1000     0.040       0.107      0.8   3       350        4000       201014          142944           6.03
      1000     0.042       0.113      0.8   3       350        4000       211065          150091           5.74
      1000     0.044       0.118      0.8   3       350        4000       221618          157595           5.47
      1000     0.047       0.124      0.8   3       350        4000       232699          165475           5.21
      1000     0.049       0.130      0.8   3       350        4000       244334          173749           4.96
      1000     0.051       0.137      0.8   3       350        4000       256551          182436           4.72
      1000     0.054       0.144      0.8   3       350        4000       269378          191558           4.50
      1000     0.057       0.151      0.8   3       350        4000       282847          201136           4.28
      1000     0.059       0.158      0.8   3       350        4000       296990          211193           4.08
      1000     0.062       0.166      0.8   3       350        4000       311839          221752           3.89
      1000     0.065       0.175      0.8   3       350        4000       327431          232840           3.70


                  Rising Energy Cost Gas & Electricity price
15
Factors affecting economic viability
      Heat Cost of Cost of            Capital                Cost     Cost of HP
                            COPb COPh         Utilisation                        BEP     NPV (10 yr)*       NPV (15 yr)*
     Demand Gas Electricity            cost               Gas Heating     Q
                                                                                                            (∑ savings -
       kW    €/kWh   €/kWh                €/kW     hrs/pa     €/pa      €/pa     Years (∑ savings - cost)
                                                                                                                cost)
      1000   0.030   0.080    0.8    3     350      4000     150000    106667    8.08       83,333 €         300,000 €
      1000   0.032   0.084    0.8   3.1    350      4200     165375    113806    6.79      165,685 €         423,528 €
      1000   0.033   0.088    0.8   3.2    350      4410     182326    121551    5.76      257,753 €         561,630 €
      1000   0.035   0.093    0.8   3.3    350      4631     201014    129949    4.93      360,657 €         715,985 €
      1000   0.036   0.097    0.8   3.4    350      4862     221618    139055    4.24      475,637 €         888,455 €
      1000   0.038   0.102    0.8   3.5    350      5105     244334    148928    3.67      604,067 €        1,081,100 €
      1000   0.040   0.107    0.8   3.6    350      5360     269378    159632    3.19      747,468 €        1,296,202 €
      1000   0.042   0.113    0.8   3.7    350      5628     296990    171237    2.78      907,524 €        1,536,286 €
      1000   0.044   Rising Energy Cost Gas & Electricity price
                     0.118    0.8   3.8    350      5910     327431    183821    2.44     1,086,102 €       1,804,153 €
      1000   0.047   0.124    0.8   3.9    350      6205     360993    197466    2.14     1,285,267 €       2,102,900 €
      1000   0.049   Improving COP and increasing utilisation
                     0.130    0.8    4     350      6516     397995    212264    1.88     1,507,308 €       2,435,963 €
      1000
      1000
             0.051
             0.054
                     0.137
                     0.144
                              0.8
                              0.8
                                 B.E.P – 1.03 years.
                                    4.1
                                    4.2
                                           350
                                           350
                                                    6841
                                                    7183
                                                             438789
                                                             483765
                                                                       228313
                                                                       245722
                                                                                 1.66
                                                                                 1.47
                                                                                          1,754,761 €
                                                                                          2,030,431 €
                                                                                                            2,807,141 €
                                                                                                            3,220,646 €
      1000   0.057    And significant Net Present Value > €3M
                     0.151    0.8   4.3    350      7543     533351    264608    1.30     2,337,427 €       3,681,141 €
      1000   0.059   0.158    0.8   4.4    350      7920     588019    285100    1.16     2,679,191 €       4,193,786 €
      1000   0.062   0.166    0.8   4.5    350      8316     648291    307338    1.03     3,059,532 €       4,764,298 €

                                                                                *Assumes zero bank interest
                                                                                 Investment = 350,000 €
16
Factors affecting economic viability
   Heat Cost of Cost of            Capital                Cost     Cost of HP
                         COPb COPh         Utilisation                        BEP    NPV (10 yr)*       NPV (15 yr)*
  Demand Gas Electricity            cost               Gas Heating     Q
                                                                                                        (∑ savings -
    kW    €/kWh   €/kWh                 €/kW    hrs/pa     €/pa      €/pa    Years (∑ savings - cost)
                                                                                                            cost)
   1000   0.030   0.080    0.8     3    350      4000     150000    106667   8.08       83,333 €         300,000 €
   1000   0.031   0.082    0.8   3.05   350      4080     156060    109157   7.46      119,033 €         353,549 €
   1000   0.031   0.083    0.8    3.1   350      4162     162365    111735   6.91      156,299 €         409,448 €
   1000   0.032   0.085    0.8   3.15   350      4245     168924    114404   6.42      195,206 €         467,808 €
   1000   0.032   0.087    0.8    3.2   350      4330     175749    117166   5.97      235,830 €         528,745 €
   1000   0.033   0.088    0.8   3.25   350      4416     182849    120024   5.57      278,251 €         592,376 €
   1000   0.034   0.090    0.8    3.3   350      4505     190236    122981   5.20      322,552 €         658,829 €
   1000   0.034   0.092    0.8   3.35   350      4595     197922    126040   4.87      368,821 €         728,231 €
   1000   0.035   0.094    0.8    3.4   350      4687     205918    129203   4.56      417,145 €         800,717 €
   1000   0.036   0.096    0.8   3.45   350      4780     214237    132475   4.28      467,619 €         876,429 €
   1000   0.037   0.098    0.8    3.5   350      4876     222892    135858   4.02      520,341 €         955,511 €
   1000   0.037   0.099    0.8   3.55   350      4973     231897    139356   3.78      575,410 €        1,038,116 €
   1000   0.038   0.101    0.8    3.6   350      5073     241266    142972   3.56      632,934 €        1,124,401 €
   1000   0.039   0.103    0.8   3.65   350      5174     251013    146711   3.36      693,021 €        1,214,531 €
   1000   0.040   0.106    0.8    3.7   350      5278     261154    150575   3.17      755,786 €        1,308,678 €
   1000   0.040   0.108    0.8   3.75   350      5383     271704    154570   2.99      821,347 €        1,407,021 €

Moderate Fuel Cost rises, Good Application Fit,                              * assumes zero bank interest
                                                                             Investment             € 350,000
            Moderate Utilisation                                             ROI (NPV/Inv)/10             13.5%
17     A very attractive NPV and ROI
Factors affecting economic viability
      All in one graph
    COP=3                                8.5
                                                                                                         5% Utilisation increase
Gas= 0.03 €/kW                           8.0
Elec= 0.08 €/kW                                                                                          5% Gas Increase
                                         7.5
   4000 hr/yr                                                                                            5% Gas and Electricity Increase
                                         7.0
                                                                                                         0.1 COP, 5 % Gas and Electricity, Utilisation Increase
                                         6.5
                                                                                                         0.05 COP, 2% Gas and Electricity, Utilisation Increase
                                         6.0
                                                                                                         2 % Gas and Electricity, Utilisation Increase
                                         5.5
              Breakeven Point in Years




                                                                                                                                                 COP=3
                                         5.0
                                                                                                                                                 Gas= 0.062 €/kW
                                                                                      COP=3
                                         4.5                                          Gas= 0.0404 €/kW
                                                                                                                                                 Elec= 0.166 €/kW
                                                                                      Elec= 0.108 €/kW                                           4000 hr/yr
                                         4.0
                                                                                      5383 hr/yr
                                         3.5 COP=3
                                                                                                                                                  COP=3
                                         3.0 Gas= 0.03 €/kW                                                                                       Gas= 0.062 €/kW
                                               Elec= 0.08 €/kW                                                                                    Elec= 0.08 €/kW
                                         2.5 8316 hr/yr
                                                                   COP=3.75                                                                       4000 hr/yr
                                         2.0                       Gas= 0.04 04€/kW
                                                                   Elec= 0.108 €/kW
                                         1.5
                                                                   5383hr/yr
                                                                                                                                                    COP=4.5
                                         1.0                                                                                                        Gas= 0.062 €/kW
                                         0.5                                                                                                        Elec= 0.166 €/kW
                                                                                                                                                    8316 hr/yr
                                         0.0
                                           0.030           0.035         0.040             0.045         0.050          0.055           0.060            0.065
                                                                                             Gas Price €/kWh

18
Already developed tool for optimised
     installations-Optimised COP




19
Case Studies
     From several hundred kW to Several MW
        Actual (8 actual projects = 30MW supply)
         –   District Heating @ Drammen
         –   Chocolate Factory @ Nestlé
         –   Emerson Compressor Plant
         –   See more @ www.neatpumps.com


        Potential
         – LARGE CHEMICAL PRODUCER
         – POWER STATION OPTIMISATION
         – FRACTIONAL DISTILLATION PLANT




20
Case Studies
     From several hundred kW to Several MW
                            16000

                            14000

                            12000
                                                                #3                  #2
      HEATING CAPACITY kW




                            10000

                            8000

                            6000

                            4000

                            2000
                                                                                   #1
                               0
                                    60   65   70        75         80         85   90    95
                                                   HOT WATER TEMPERATURE °C


21
The world’s largest ammonia heatpump?
                                       14 MW, 90°C, District heating
                                       3 x 2 stage 4.6 MW Systems




                             COPheating = 3.0
     Evaporating temp. 2 C                  Condensing temp. 89 C
        Sea water 8 to 4 C                District heating water 60 – 90 C



22
Physical arrangement


          Water intake pipe
                              New District heating plant




23
COPh 3.3   COPh 3.0   COPh 2.8




24
Factory manufacturing




25
Drammen building




26
Operating data collection



                                 Total Heating     12726 kW
                                 Total Abs Power    3996 kW
                                 Total Cooling      8730 kW


                                  COPh                3.18
                                             (59C to 85C)




27
Nestlé Halifax, England.
                                      1.6 MW, 61°C, Process heating
                                      2 x 1 stage 0.8 MW Systems




                           COPheating = 3.39
     Evaporating temp. -5 C                Condensing temp. 60 C
       Glycol/water 5 to 0 C             Process heating water 12 – 60 C



28
Food Factory Heating System




29
Emerson Compressor Factory




                                   Test
                                   Lab
      Process                     Cooling
     Equipment                    330kW
      Heating                       3C
       490kW
        65C

 320000kg CO2

30
Case Studies #1 Boiler make up
        LARGE CHEMICAL PRODUCER (total loss steam use)
                                       Process


                                                    Cooling

     Heating




31
Case Studies #1 Boiler make up
        LARGE CHEMICAL PRODUCER (total loss steam use)
                     20,000 l/hr of make up 24/7/365
                     10C to 90C = 80K pre-heat
                     =1887 kW demand
                     =€817,600 / year
                                                       Cooling

     Heating
                     Even pre-heating to 60C
                     = 50K pre-heat = €511k / year




32
Case Studies #2 Flue gas systems
        CHP plant




33
Case Studies #2 Flue gas systems

         Fluegas 32°C

                                               80°C
                               Neatpump
                        30°C
                                               District
                                               Heating



 Fluegas 120°C                                 50°C
                        51°C
                                 Electricity
                                COPh: 5.5



34
Case Studies #2 Flue gas systems
        CHP plant
         Heat available at varying temperatures
         Can be boosted to 90C
         Allows heat recovery even when District return water is “warm”

         10,000kW @ COPh = 5.5 and gas @ €0.03 and elec @ €0.09

         With gas, efficiency 80%, 10MW, 8000hrs costs
         €3.0M per year

         With Electricity, efficiency 95% and COPh = 5.5, 10MW, 8000hrs costs
         €1.38M per year (and the flue gas cooling costs are removed)
         Saving €1.62M per year
         B.E.P for €3M Neatpump = 1.85 years
35
Case Studies #3 Ethanol Distillation
        88.9 Billion liters of ethanol produced per year world wide
        Generally accepted this has a negative energy yield
         – more energy used in production than eventual combustion!




36
Case Studies #3 Ethanol Distillation




                               R. Katzen, P.W. Madson and G.D. Moon, Jr
                             KATZEN International, Inc., Cincinnati, Ohio, USA
37
Case Studies #3 Ethanol Distillation
     10MW heat
     12.5MW gas
       @80% η

                                            Cooling
                              COPh > 6.0
                              1.66MW elec
                              3.22MW gas
                                @50% η


     Heating



38
Conclusions

      Find
      Observe
      Control
      Utility
      Satisfaction
39
Thank You
        Ir MM Philippe Nellissen                     Dave Pearson
          – philippe.nellissen@emerson.com                 – dpearson@star-ref.co.uk
          – +32476943481                                   – +447976607746


                              Visit our respective Websites
                                    – www.emersonclimate.eu
                                    – www.star-ref.co.uk
                              Our Industrial Heat Pump website
                                  – www.neatpump.com




40

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Achema industrial heat pumps v6

  • 1. Application of industrial heat pumps Proven applications in 2012 for Megawatt+ Heatpumps within a technical, commercial and sustainable framework Dave Pearson, Director of Innovation, Star Refrigeration Ltd Philippe Nellissen, Product Manager Industrial applications, Emerson Climate Technologies GmbH
  • 2. Emerson Is a Leader in Its Core Global Businesses & Markets #1 AC & DC Power Systems #1 Control Valves #1 Compressors #1 OEM Embedded Power #1 Measurement Devices #1 Controls #1 Precision Cooling Systems #1 Wireless Devices #1 Access & Control (KVM) #1 Power Switching & Controls 2011 US $24.2 Billion in Sales #1 Alternators #1 Food Waste Disposer #1 Fluid Control #1 Plumbing Tools #1 Ultrasonic Welding #1 Wet/Dry Vacuums #1 Mobile Point-of-Care Carts 2
  • 3. Emerson Climate Technologies Core Offerings & Key Brands Residential Heating Commercial Heating Commercial & Electronic Services & Air Conditioning & Air Conditioning Industrial Refrigeration & Solutions Technologies that deliver High-quality, reliable and Proven refrigeration solutions Facility design, indoor comfort and reduce energy efficient HVAC solutions to protect commissioning and energy energy costs for every type and safeguard food management, including 24/7 of work space and the environment energy monitoring Sales 2011 Sales $4.0B 3
  • 4. Star Refrigeration Largest in 350+ Est. 1970 UK employees 4
  • 5. Where’s the value for Industrial Heat Pumps ? Heat Heat Source Needs Equipment End-User Capability Vision Return On Investment 5
  • 6. Source and Need: How does it work? Other sources ?  High temperature (high pressure) needed  Low pressure ratio capability (two-stage) needed 6
  • 7. The compressor is the engine of the application Single Screw Technology 61.5 bar std operating point- 99°C 7
  • 8. Our Working fluid is R717 Ammonia GWP 2000 1500 1000 500 0 R134a R407C R410A R717 8
  • 9. The limits of any application - pressure Same Temperature as Hot Water Boiler 61.5 Bar 99°C 9
  • 10. Factors affecting economic viability  Investment; likely 10x cost of a gas burner  Operating cost – spare parts (remember the Red line analogy!) – An emerging market but little life cycle data over 10 years  Reliability – Uptime is crucial (a heatpump can’t save money if it isn’t operating)  ROI – Complex assessment - hourly energy cost variances – Options for power company rebates if managed connection accepted  COP > Elec price/gas price – OPEX SAVING FOR CAPEX PAYBACK 10
  • 11. Factors affecting economic viability Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even COPb COPh Utilisation Demand Gas Electricity cost Heating Q Point kW €/kWh €/kWh €/KW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150,000 106,667 8.08 Heat Demand Cost of Gas Cost of Electricity COPb COPh Capital cost Utilisation Cost Gas Heating Cost of Heatpump Q Break Even Point kW €/kWh €/kWh €/KW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 1000 1000 0.030 0.030 0.080 0.080 A simple model of 0.8 0.8 3 3 333 316 4000 4000 150000 150000 106667 106667 7.67 7.29 1000 1000 0.030 0.030 0.080 0.080 • Cost 0.8 0.8 3 3 300 285 4000 4000 150000 150000 106667 106667 6.92 6.58 • Utility price 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 1000 0.030 0.030 0.080 0.080 • Efficiency 0.8 0.8 3 3 285 285 4000 4000 150000 150000 106667 106667 6.58 6.58 • Break Even Point 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 11
  • 12. Factors affecting economic viability Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even COPb COPh Utilisation Demand Gas Electricity Cost Heating Q Point kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 8.08 150,000 106,667 Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even COPb COPh Utilisation Demand Gas Electricity Cost Heating Q Point kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 1000 0.030 0.080 0.8 3 333 4000 150000 106667 7.67 1000 0.030 0.080 0.8 3 316 4000 150000 106667 7.29 1000 0.030 0.080 0.8 3 300 4000 150000 106667 6.92 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 1000 0.030 0.080 0.8 3 285 4000 150000 106667 6.58 8 Years B.E.P! Make it cheaper? But lowering the cost by 5% “ 4times” makes 12 little difference.
  • 13. Factors affecting economic viability Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even Demand Gas Electricity COPb COPh cost Utilisation Heating Q Point kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 1000 0.030 0.080 0.8 3.1 350 4000 150000 103226 7.48 1000 0.030 0.080 0.8 3.2 350 4000 150000 100000 7.00 1000 0.030 0.080 0.8 3.3 350 4000 150000 96970 6.60 1000 0.030 0.080 0.8 3.4 350 4000 150000 94118 6.26 1000 0.030 0.080 8 Years B.E.P! 0.8 3.5 350 4000 150000 91429 5.98 1000 1000 0.030 0.030 Make it better – higher COP! 0.080 0.080 0.8 0.8 3.6 3.7 350 350 4000 4000 150000 150000 88889 86486 5.73 5.51 1000 0.030 0.080 0.8 3.8 350 4000 150000 84211 5.32 1000 0.030 0.080 0.8 3.9 350 4000 150000 82051 5.15 Increasing the COP by 50% halves the B.E.P. And 1000 1000 0.030 0.030 0.080 0.080 0.8 0.8 4 4.1 350 350 4000 4000 150000 150000 80000 78049 5.00 4.86 1000 1000 0.030 0.030 can be easy to do. 0.080 0.080 0.8 0.8 4.2 4.3 350 350 4000 4000 150000 150000 76190 74419 4.74 4.63 1000 0.030 0.080 0.8 4.4 350 4000 150000 72727 4.53 1000 0.030 0.080 0.8 4.5 350 4000 150000 71111 4.44 1000 0.030 0.080 0.8 4.6 350 4000 150000 69565 4.35 13
  • 14. Factors affecting economic viability Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even Demand Gas Electricity COPb COPh cost Utilisation Heating Q Point kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 1000 0.030 0.084 0.8 3 350 4000 150000 112000 9.21 1000 0.030 0.088 0.8 3 350 4000 150000 117600 10.80 1000 0.030 0.093 0.8 3 350 4000 150000 123480 13.20 1000 0.030 0.097 0.8 3 350 4000 150000 129654 17.20 1000 0.030 0.102 0.8 3 350 4000 150000 136137 25.25 1000 0.030 0.107 0.8 3 350 4000 150000 142944 49.60 1000 0.030 0.113 0.8 3 350 4000 150000 150091 NA 1000 0.030 0.118 0.8 3 350 4000 150000 157595 NA 1000 0.030 The Dooms Day Scenario 0.124 0.8 3 350 4000 150000 165475 NA 1000 0.030 0.130 0.8 3 350 4000 150000 173749 NA 1000 0.030 widening Gas vs. Electricity price 0.137 0.8 3 350 4000 150000 182436 NA 1000 0.030 0.144 0.8 3 350 4000 150000 191558 NA 1000 0.030 0.151 0.8 3 350 4000 150000 201136 NA 1000 0.030 0.158 0.8 3 350 4000 150000 211193 NA 1000 0.030 0.166 Time to go to the Pub! 0.8 3 350 4000 150000 221752 NA 1000 0.030 0.175 0.8 3 350 4000 150000 232840 NA 14
  • 15. Factors affecting economic viability Heat Cost of Cost of Capital Cost Gas Cost of Heatpump Break Even Demand Gas Electricity COPb COPh cost Utilisation Heating Q Point kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 1000 0.032 0.084 0.8 3 350 4000 157500 112000 7.69 1000 0.033 0.088 0.8 3 350 4000 165375 117600 7.33 1000 0.035 0.093 0.8 3 350 4000 173644 123480 6.98 1000 0.036 0.097 0.8 3 350 4000 182326 129654 6.64 1000 0.038 0.102 0.8 3 350 4000 191442 136137 6.33 1000 0.040 0.107 0.8 3 350 4000 201014 142944 6.03 1000 0.042 0.113 0.8 3 350 4000 211065 150091 5.74 1000 0.044 0.118 0.8 3 350 4000 221618 157595 5.47 1000 0.047 0.124 0.8 3 350 4000 232699 165475 5.21 1000 0.049 0.130 0.8 3 350 4000 244334 173749 4.96 1000 0.051 0.137 0.8 3 350 4000 256551 182436 4.72 1000 0.054 0.144 0.8 3 350 4000 269378 191558 4.50 1000 0.057 0.151 0.8 3 350 4000 282847 201136 4.28 1000 0.059 0.158 0.8 3 350 4000 296990 211193 4.08 1000 0.062 0.166 0.8 3 350 4000 311839 221752 3.89 1000 0.065 0.175 0.8 3 350 4000 327431 232840 3.70 Rising Energy Cost Gas & Electricity price 15
  • 16. Factors affecting economic viability Heat Cost of Cost of Capital Cost Cost of HP COPb COPh Utilisation BEP NPV (10 yr)* NPV (15 yr)* Demand Gas Electricity cost Gas Heating Q (∑ savings - kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years (∑ savings - cost) cost) 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 83,333 € 300,000 € 1000 0.032 0.084 0.8 3.1 350 4200 165375 113806 6.79 165,685 € 423,528 € 1000 0.033 0.088 0.8 3.2 350 4410 182326 121551 5.76 257,753 € 561,630 € 1000 0.035 0.093 0.8 3.3 350 4631 201014 129949 4.93 360,657 € 715,985 € 1000 0.036 0.097 0.8 3.4 350 4862 221618 139055 4.24 475,637 € 888,455 € 1000 0.038 0.102 0.8 3.5 350 5105 244334 148928 3.67 604,067 € 1,081,100 € 1000 0.040 0.107 0.8 3.6 350 5360 269378 159632 3.19 747,468 € 1,296,202 € 1000 0.042 0.113 0.8 3.7 350 5628 296990 171237 2.78 907,524 € 1,536,286 € 1000 0.044 Rising Energy Cost Gas & Electricity price 0.118 0.8 3.8 350 5910 327431 183821 2.44 1,086,102 € 1,804,153 € 1000 0.047 0.124 0.8 3.9 350 6205 360993 197466 2.14 1,285,267 € 2,102,900 € 1000 0.049 Improving COP and increasing utilisation 0.130 0.8 4 350 6516 397995 212264 1.88 1,507,308 € 2,435,963 € 1000 1000 0.051 0.054 0.137 0.144 0.8 0.8 B.E.P – 1.03 years. 4.1 4.2 350 350 6841 7183 438789 483765 228313 245722 1.66 1.47 1,754,761 € 2,030,431 € 2,807,141 € 3,220,646 € 1000 0.057 And significant Net Present Value > €3M 0.151 0.8 4.3 350 7543 533351 264608 1.30 2,337,427 € 3,681,141 € 1000 0.059 0.158 0.8 4.4 350 7920 588019 285100 1.16 2,679,191 € 4,193,786 € 1000 0.062 0.166 0.8 4.5 350 8316 648291 307338 1.03 3,059,532 € 4,764,298 € *Assumes zero bank interest Investment = 350,000 € 16
  • 17. Factors affecting economic viability Heat Cost of Cost of Capital Cost Cost of HP COPb COPh Utilisation BEP NPV (10 yr)* NPV (15 yr)* Demand Gas Electricity cost Gas Heating Q (∑ savings - kW €/kWh €/kWh €/kW hrs/pa €/pa €/pa Years (∑ savings - cost) cost) 1000 0.030 0.080 0.8 3 350 4000 150000 106667 8.08 83,333 € 300,000 € 1000 0.031 0.082 0.8 3.05 350 4080 156060 109157 7.46 119,033 € 353,549 € 1000 0.031 0.083 0.8 3.1 350 4162 162365 111735 6.91 156,299 € 409,448 € 1000 0.032 0.085 0.8 3.15 350 4245 168924 114404 6.42 195,206 € 467,808 € 1000 0.032 0.087 0.8 3.2 350 4330 175749 117166 5.97 235,830 € 528,745 € 1000 0.033 0.088 0.8 3.25 350 4416 182849 120024 5.57 278,251 € 592,376 € 1000 0.034 0.090 0.8 3.3 350 4505 190236 122981 5.20 322,552 € 658,829 € 1000 0.034 0.092 0.8 3.35 350 4595 197922 126040 4.87 368,821 € 728,231 € 1000 0.035 0.094 0.8 3.4 350 4687 205918 129203 4.56 417,145 € 800,717 € 1000 0.036 0.096 0.8 3.45 350 4780 214237 132475 4.28 467,619 € 876,429 € 1000 0.037 0.098 0.8 3.5 350 4876 222892 135858 4.02 520,341 € 955,511 € 1000 0.037 0.099 0.8 3.55 350 4973 231897 139356 3.78 575,410 € 1,038,116 € 1000 0.038 0.101 0.8 3.6 350 5073 241266 142972 3.56 632,934 € 1,124,401 € 1000 0.039 0.103 0.8 3.65 350 5174 251013 146711 3.36 693,021 € 1,214,531 € 1000 0.040 0.106 0.8 3.7 350 5278 261154 150575 3.17 755,786 € 1,308,678 € 1000 0.040 0.108 0.8 3.75 350 5383 271704 154570 2.99 821,347 € 1,407,021 € Moderate Fuel Cost rises, Good Application Fit, * assumes zero bank interest Investment € 350,000 Moderate Utilisation ROI (NPV/Inv)/10 13.5% 17 A very attractive NPV and ROI
  • 18. Factors affecting economic viability All in one graph COP=3 8.5 5% Utilisation increase Gas= 0.03 €/kW 8.0 Elec= 0.08 €/kW 5% Gas Increase 7.5 4000 hr/yr 5% Gas and Electricity Increase 7.0 0.1 COP, 5 % Gas and Electricity, Utilisation Increase 6.5 0.05 COP, 2% Gas and Electricity, Utilisation Increase 6.0 2 % Gas and Electricity, Utilisation Increase 5.5 Breakeven Point in Years COP=3 5.0 Gas= 0.062 €/kW COP=3 4.5 Gas= 0.0404 €/kW Elec= 0.166 €/kW Elec= 0.108 €/kW 4000 hr/yr 4.0 5383 hr/yr 3.5 COP=3 COP=3 3.0 Gas= 0.03 €/kW Gas= 0.062 €/kW Elec= 0.08 €/kW Elec= 0.08 €/kW 2.5 8316 hr/yr COP=3.75 4000 hr/yr 2.0 Gas= 0.04 04€/kW Elec= 0.108 €/kW 1.5 5383hr/yr COP=4.5 1.0 Gas= 0.062 €/kW 0.5 Elec= 0.166 €/kW 8316 hr/yr 0.0 0.030 0.035 0.040 0.045 0.050 0.055 0.060 0.065 Gas Price €/kWh 18
  • 19. Already developed tool for optimised installations-Optimised COP 19
  • 20. Case Studies From several hundred kW to Several MW  Actual (8 actual projects = 30MW supply) – District Heating @ Drammen – Chocolate Factory @ Nestlé – Emerson Compressor Plant – See more @ www.neatpumps.com  Potential – LARGE CHEMICAL PRODUCER – POWER STATION OPTIMISATION – FRACTIONAL DISTILLATION PLANT 20
  • 21. Case Studies From several hundred kW to Several MW 16000 14000 12000 #3 #2 HEATING CAPACITY kW 10000 8000 6000 4000 2000 #1 0 60 65 70 75 80 85 90 95 HOT WATER TEMPERATURE °C 21
  • 22. The world’s largest ammonia heatpump? 14 MW, 90°C, District heating 3 x 2 stage 4.6 MW Systems COPheating = 3.0 Evaporating temp. 2 C Condensing temp. 89 C Sea water 8 to 4 C District heating water 60 – 90 C 22
  • 23. Physical arrangement Water intake pipe New District heating plant 23
  • 24. COPh 3.3 COPh 3.0 COPh 2.8 24
  • 27. Operating data collection Total Heating 12726 kW Total Abs Power 3996 kW Total Cooling 8730 kW COPh 3.18 (59C to 85C) 27
  • 28. Nestlé Halifax, England. 1.6 MW, 61°C, Process heating 2 x 1 stage 0.8 MW Systems COPheating = 3.39 Evaporating temp. -5 C Condensing temp. 60 C Glycol/water 5 to 0 C Process heating water 12 – 60 C 28
  • 29. Food Factory Heating System 29
  • 30. Emerson Compressor Factory Test Lab Process Cooling Equipment 330kW Heating 3C 490kW 65C 320000kg CO2 30
  • 31. Case Studies #1 Boiler make up  LARGE CHEMICAL PRODUCER (total loss steam use) Process Cooling Heating 31
  • 32. Case Studies #1 Boiler make up  LARGE CHEMICAL PRODUCER (total loss steam use) 20,000 l/hr of make up 24/7/365 10C to 90C = 80K pre-heat =1887 kW demand =€817,600 / year Cooling Heating Even pre-heating to 60C = 50K pre-heat = €511k / year 32
  • 33. Case Studies #2 Flue gas systems  CHP plant 33
  • 34. Case Studies #2 Flue gas systems Fluegas 32°C 80°C Neatpump 30°C District Heating Fluegas 120°C 50°C 51°C Electricity COPh: 5.5 34
  • 35. Case Studies #2 Flue gas systems  CHP plant Heat available at varying temperatures Can be boosted to 90C Allows heat recovery even when District return water is “warm” 10,000kW @ COPh = 5.5 and gas @ €0.03 and elec @ €0.09 With gas, efficiency 80%, 10MW, 8000hrs costs €3.0M per year With Electricity, efficiency 95% and COPh = 5.5, 10MW, 8000hrs costs €1.38M per year (and the flue gas cooling costs are removed) Saving €1.62M per year B.E.P for €3M Neatpump = 1.85 years 35
  • 36. Case Studies #3 Ethanol Distillation  88.9 Billion liters of ethanol produced per year world wide  Generally accepted this has a negative energy yield – more energy used in production than eventual combustion! 36
  • 37. Case Studies #3 Ethanol Distillation R. Katzen, P.W. Madson and G.D. Moon, Jr KATZEN International, Inc., Cincinnati, Ohio, USA 37
  • 38. Case Studies #3 Ethanol Distillation 10MW heat 12.5MW gas @80% η Cooling COPh > 6.0 1.66MW elec 3.22MW gas @50% η Heating 38
  • 39. Conclusions Find Observe Control Utility Satisfaction 39
  • 40. Thank You  Ir MM Philippe Nellissen  Dave Pearson – philippe.nellissen@emerson.com – dpearson@star-ref.co.uk – +32476943481 – +447976607746  Visit our respective Websites – www.emersonclimate.eu – www.star-ref.co.uk  Our Industrial Heat Pump website – www.neatpump.com 40

Editor's Notes

  1. For us, operating pressure is 61.5 BarFor twinscrew the design is 52 bar and the operating is 42 bars (52* 0.9* 0.9)