THE SOURCE - Winter 2016 - 18


Natural Gas Prime Movers (1-5 MW)
2000

Annual Unit Sales

Gas Engines

1500

Gas Turbines

1000
500
0
1990

2000

2010

2015

Source: Diesel & Gas Turbine Worldwide

industrial turbine technologies.
Microturbines offer different CHP attributes
compared to natural gas engines, with
the potential for lower maintenance
requirements, simpler heat recovery, and
lower emissions. There are currently over
300 microturbine CHP sites in the U.S., with
nearly 75 MW total capacity.
Fuel cells are another leading category
of smaller natural gas CHP power
generation devices. Unlike engines and
turbines, fuel cells are electrochemical
conversion systems that can generate
electricity and byproduct waste heat
from natural gas. Fuel cells can achieve
high power generation efficiency, very

low emissions, and quiet operation, but
they carry a higher first-cost premium
compared to engine and turbine
products.
Introduced in 1991, the first
commercial fuel cell was based on a
phosphoric acid fuel cell developed by
United Technologies. That technology
is available today from Doosan Fuel Cell
America, with a flagship 440 kilowatts
(kW) product. Other leading fuel cell
providers include FuelCell Energy,
which pioneered the commercial use of
molten carbonate fuel cell technology,
and Bloom Energy, which pioneered the
commercial use of solid oxide fuel cell
technology. There are about 140 natural
gas fuel cell CHP sites in the U.S., with
nearly 60 MW of total capacity.
Micro-CHP Making Strides
There are efforts worldwide to
commercialize micro-CHP systems,
which provide heat and electricity to
households and businesses. There is no
universal upper size limit for micro-CHP,
but they are generally 50-100 kW and
smaller systems.
Significant progress has been made
in Japan with engine-based systems
and, more recently, with fuel cell
micro-CHP products. Europe has also
been advancing the commercial use of
micro-CHP. In the U.S., high equipment
costs have hampered growth, but the
technology holds great promise for
utilities and consumers.

18	 THE SOURCE | THE VOICE AND CHOICE OF PUBLIC GAS

"Energy efficiency advocates have
strong interest, and utilities are looking
at the technology as a load-growth
opportunity," said Tim Kingston, senior
engineer at GTI.
The big challenge for micro-CHP
market adoption continues to be the
initial equipment investment cost. In
2013, GTI published an in-depth study
of micro-CHP, which concluded that,
for micro-CHP to gain market traction
beyond niche markets, the equipment
cost needed to be reduced to between
$2,000/kW and $4,000/kW. Otherwise,
electrical efficiencies needed to be
increased to offset high capital costs.
With the potential entry into the
market by A.O. Smith Corporation,
a global water heating technology
company, there is optimism about
the future of micro-CHP in the U.S.
The company is field testing multiple
systems in light commercial applications
"We believe that A.O. Smith's entry
into the market is key, because they
bring a well-established national sales
and service infrastructure, partnered
with a strategic engine manufacturer,
into the marketplace," said Kingston. "It
could be a game changer."
Activity is heating up in the North
American micro-CHP market, including
companies looking to introduce engine,
microturbine, fuel cell, and Stirling
engine offerings. Continued efforts are
needed to evaluate these technologies
and enable evolution towards higher
efficiency and lower first costs to ensure
a solid customer value proposition.
Incorporating the benefit of
power reliability enhances the value
proposition for CHP. Natural gas is
playing an increasing role in homes
and businesses that are installing
onsite standby emergency generators.
For example, a large number of
homeowners are installing 5-20 kW
natural gas engine generators for the
comfort and security of having standby
power. These units can help address
intermittent electricity reliability issues
as well as more enduring outages due
to flooding, ice damage to power lines,
and other major events. There is a need
to capture the power reliability value of
CHP systems, including ensuring codes
and standards understand the role of



Table of Contents for the Digital Edition of THE SOURCE - Winter 2016

First Person
APGA Events
Industry Update: Furnace Rule Report
The Future of Natural Gas in Zero Energy Building Design
Bringing Success to Succession in the Utility World
Taking a Fresh Look at Distributed Generation and CHP
Why Energy Codes Matter and How They Impact Your Utility
Environmental Group and Utility Work Together
Legislative Outlook
The Pipeline
Marketing Matters
At Last
Advertisers’ Index/ Advertiser.com
THE SOURCE - Winter 2016 - bellyband1
THE SOURCE - Winter 2016 - bellyband2
THE SOURCE - Winter 2016 - cover1
THE SOURCE - Winter 2016 - cover2
THE SOURCE - Winter 2016 - 3
THE SOURCE - Winter 2016 - 4
THE SOURCE - Winter 2016 - 5
THE SOURCE - Winter 2016 - 6
THE SOURCE - Winter 2016 - First Person
THE SOURCE - Winter 2016 - APGA Events
THE SOURCE - Winter 2016 - 9
THE SOURCE - Winter 2016 - Industry Update: Furnace Rule Report
THE SOURCE - Winter 2016 - The Future of Natural Gas in Zero Energy Building Design
THE SOURCE - Winter 2016 - 12
THE SOURCE - Winter 2016 - 13
THE SOURCE - Winter 2016 - Bringing Success to Succession in the Utility World
THE SOURCE - Winter 2016 - 15
THE SOURCE - Winter 2016 - Taking a Fresh Look at Distributed Generation and CHP
THE SOURCE - Winter 2016 - 17
THE SOURCE - Winter 2016 - 18
THE SOURCE - Winter 2016 - 19
THE SOURCE - Winter 2016 - Why Energy Codes Matter and How They Impact Your Utility
THE SOURCE - Winter 2016 - 21
THE SOURCE - Winter 2016 - Environmental Group and Utility Work Together
THE SOURCE - Winter 2016 - 23
THE SOURCE - Winter 2016 - Legislative Outlook
THE SOURCE - Winter 2016 - 25
THE SOURCE - Winter 2016 - The Pipeline
THE SOURCE - Winter 2016 - Marketing Matters
THE SOURCE - Winter 2016 - 28
THE SOURCE - Winter 2016 - 29
THE SOURCE - Winter 2016 - 30
THE SOURCE - Winter 2016 - Advertisers’ Index/ Advertiser.com
THE SOURCE - Winter 2016 - cover4
THE SOURCE - Winter 2016 - outsert1
THE SOURCE - Winter 2016 - outsert2
THE SOURCE - Winter 2016 - outsert3
THE SOURCE - Winter 2016 - outsert4
https://www.nxtbook.com/naylor/PGAQ/PGAQ0218
https://www.nxtbook.com/naylor/PGAQ/PGAQ0118
https://www.nxtbook.com/naylor/PGAQ/PGAQ0417
https://www.nxtbook.com/naylor/PGAQ/PGAQ0317
https://www.nxtbook.com/naylor/PGAQ/PGAQ0217
https://www.nxtbook.com/naylor/PGAQ/PGAQ0117
https://www.nxtbook.com/naylor/PGAQ/PGAQ0416
https://www.nxtbook.com/naylor/PGAQ/PGAQ0316
https://www.nxtbook.com/naylor/PGAQ/PGAQ0216
https://www.nxtbook.com/naylor/PGAQ/PGAQ0116
https://www.nxtbook.com/naylor/PGAQ/PGAQ0415
https://www.nxtbook.com/naylor/PGAQ/PGAQ0315
https://www.nxtbook.com/naylor/PGAQ/PGAQ0215
https://www.nxtbook.com/naylor/PGAQ/PGAQ0115
https://www.nxtbookmedia.com