Shell Global Solutions

Technical Opportunities for Micro-

Generation
Dr. Ir. J. Verloop
TUDelft
6
th
Annual International Conference
Infrastructure Liberalization speed up or step back?
Preparing for the next phase of telecom and energy reform
2 Shell Global Solutions
Distributed Utilities
World Energy Assessment 2000 (UN, WEC)
The energy sector is undergoing rapid change because of the following trends:
World-wide restructuring of utilities and liberalisation of energy markets
Greater choice for large and small customers
Customer interest in green pricing and the emerging trade in green certificates
Technological innovations in efficiency, demand-side management, transport and
distribution, electronic power handling, and generation
The traditional shape of the electricity system is based on two pillars:
Large remote power stations generating centrally controlled, synchronised alternate
current
A monopoly franchise to finance, build, and operate the system.
These two pillars are undermined by, respectively:
Technological innovations, such as the gas turbine and advanced power electronics
Institutional innovation and price competition.
Liberalisation and new technological development
are democratising the system by decentralising it.
3 Shell Global Solutions
Novel Combustion Engines
External combustors
E.g. Stirling cycle
Multi-fuel
omnivorous - liquid fuel, gas or heat
low calorific fuels: biofuels, landfill gas
waste heat streams
Low emissions (NOx) and low noise
Recent technical progress:
much-improved versions being commercialised by several companies
cost competitive: currently $1000+/kW and prices falling
high efficiency: ~30% electrical, ~80% in CHP mode
4 Shell Global Solutions
Manufacturers
STM Power (Stirling cycle) - 25/55kW built/sold, <$500/kW
predicted (2004);
Enginion (Stirling/Rankine cycle): <6kW, available 2004,
24% efficiency
Tri-o-gen (organic Rankine cycle turbine variant): 175kW,
currently available, 20% efficiency, $1600/kW
Others (WhisperTech, SES, Kockums)
Commercial success more dependent on OEMs plans
for bulk manufacture than on technical merit
5 Shell Global Solutions
Fuel cells
Hydrogen required as fuel
High efficiency
electrical 45-55 %; 85 % including CHP
Very low emissions, zero if pure hydrogen fuel
Large footprint
Clean water as by-product
SOFC/PEMFC both viable technologies currently being
commercialised
Extremely high price (5000 $/kW); slow learning curve
6 Shell Global Solutions
Microturbines
Many manufacturers
Capstone, Bowman, Ingersoll Rand
Gas-fired units 30-100kW
Currently available
High efficiency (30% electrical, 80% CHP)
High quality product; low noise, high reliability
High prices compared with traditional engines
Capstone ~$1500/kW for 30kW unit
Only moderate price drop forecast with increasing volume
Perceived as premium product for high-quality, reliable power
7 Shell Global Solutions
Distributed Energy markets
Residential
(< 25 kW)
Commercial &
SME (< 1 MW)
Small industry
(> 1 MW)
Large industry
(> 50 MW)
Heat
only
CHP Remote
locations
Peak
shaving
Standby
Renewables Fossil Fuels only
Electricity only
replacement
Diesel units
Boilers
(as is)
Microturbines
Stirling engines
Fuel cells
(later)
CCGT (as is)
Wind
Micro-
Hydro
PV
8 Shell Global Solutions
Technical challenges in DE
CHP and heat/cold integration:
high efficiency heat exchangers
direct use of waste heat for space cooling/refrigeration
Energy storage
important in future for guaranteed supply with renewables
essential for continuous power in absence of electrical grid
power conditioning and integration far from simple
Power electronics: reliable, good quality power
Optimal/versatile fuels usage crucial
9 Shell Global Solutions
Typical distributed generation customer
No such thing!
Demands/priorities vary radically:
Savings of cogeneration redistributes margins in value
chain
Commercial success as dependent on business model as
on technology
heat/power ratio
emissions
requirements
space available
noise tolerance
hours of operation
fuels available
different service
requirements
nature of grid connection
local legislation
reliability requirement
10 Shell Global Solutions
Summary
New small scale technologies will extend micro-generation
to new markets (commercial and residential)
Micro-turbines are already commercial for high quality
applications
Novel combustion engines are very promising
Fuel cells probably will come later, but may create large
markets
Commercial success is more dependent on OEMs
plans for bulk manufacture and the right business plan
than on technical merit
11 Shell Global Solutions
Improved turbines under development
PowerNow (organic Rankine cycle), not yet built
MTT Technologies, prototype built and seeking funding for
commercialisation, designed to work with a high efficiency
central heating boiler