September 1998
The Official Newsletter of International District Energy Association Volume 14 Number 2
Vice President Al Gore Joins Rep. Bob Matsui to Announce the Introduction of Energy Efficient Technology Tax Act
Joined by Vice President Al Gore, Rep. Robert Matsui (D-CA) announced the introduction of legislation providing tax incentives to begin addressing global climate change. The Energy Efficient Technology Tax Act is the tax incentive portion of the Clinton Administration's nine point plan announced last fall to help reduce global warming.
"If there is any one principle we have come to recognize from all of the studies of global climate change, it is the critical role played by the individual and each business, and the accumulated impact they make upon the environment," Matsui said. "This legislation is one of the first attempts to make improvements on the micro-level of global warming: by encouraging individuals and businesses to adopt environmentally friendly technologies in order to help address the overall problem."
The Energy Efficient Technology Tax Act provides for $3.6 billion in tax incentives over five years to encourage energy efficiency and help develop low-carbon energy sources, saving American families and businesses money in reduced energy costs. The initiative covers the four major carbon-emitting sectors of the economy -- buildings, industry, transportation, and electricity.
As part of the Industry section of the Act, a tax credit for combined
heat and power (CHP) systems is listed. "To encourage and accelerate
investment in CHP equipment, a 10 percent tax credit would be provided for
investments in CHP systems that meet certain energy efficiency requirements.
The credit would apply to property placed in service between January 1,
1999 and December 31, 2003."
Edison Mission Energy Developing Cogeneration Plant in Turkey
Edision Mission Energy is developing a 180-MW combined-cycle gas turbine
cogeneration plant in a suburb of Instanbul, Turkey, to supply electricity
to the local grid and heat for 14,000 residential homes. Doga Enerji, as
the project is called, will be the first district heating plant in the country.
Thomassen Power Systems is supplying three Frame 6B gas turbines for the
project. Overseas Private Investment Corp. has committed more than $135
million in support.
Energy Council Encourages Renewable Energies
At their meeting on May 11, the Energy Ministers of the European Union
adopted a Resolution which supports the principles of the White Paper for
Renewable Energies presented by the European Commission in December 1997.
The Council welcomed the target to double the market share of renewables
from 6% today to 12% in 2010 as a "useful orientation."
August Sets Global Temperature Record
August 1998 was the warmest August on record globally, the
Commerce Department's National Oceanic and Atmospheric Administration announced
on September 10. The average global temperature (land and sea) for the month
was 61.4° Fahrenheit, which is 1.3° above the long- term mean of
60.1° for August. The long-term mean is based on data from 1880 to 1997.
Nationally, the months from January through August have been the fifth wettest and fourth warmest months on record. For the year to date, the nation has had 22.77 inches of precipitation. The normal for the period is 20.05 inches.
NOAA's National Climatic Data Center is the world's largest active archive
of weather data. The preliminary temperature and precipitation rankings
are available from the center by calling: 828-271-4800 or visiting their
web site at: www.ncdc.noaa.gov/ol/document library/cvb.html.
Trigen St. Louis Installing 15 MW Combined Heat and Power Project
Trigen Energy Corporation announced that it has ordered
equipment and begun construction of a 15 megawatt combined heat and power
plant to provide 95% of the steam needs of Trigen's St. Louis 135 steam
system customers. The $13.5 million investment in downtown St. Louis will
end the losses the system has suffered and will also greatly improve air
quality. The plant consists of two 5.2 megawatt Solar Turbines and 4.6 megawatts
of backpressure steam turbines from Trigen Ewing.
The state-of-the-art combined heat and power plant will operate with over twice the efficiency of average U.S. generation and this efficiency makes it possible for Trigen to sell electric power to the wholesale power market. The plant will expand Trigen's revenue by roughly $2.8 million per year from initial power sales and will reduce fuel use for steam production and fixed operating costs. The project will also enable construction of a further 20 megawatts of peaking power using the steam in condensing turbines.
When the plant goes on line in the second quarter of 1999, it will generate
nearly 40% of the district energy system's steam requirements with waste
heat from the gas turbine generators. Adding fuel to the exhaust gas and
duct firing in the heat recovery boilers will produce an additional 55%
of the steam at close to 100% efficiency. The high-pressure steam will then
pass through backpressure turbines supplied by Trigen's Ewing Power division,
which will increase electric output by roughly 50% over the gas turbine
generation. The steam will emerge with sufficient pressure to feed the 22
miles of underground steam pipe through which Trigen St. Louis heats most
of the downtown buildings. Trigen St. Louis will offer discounts on summer
use of the steam to encourage thermally driven chilling that cuts electric
peak loads and further reduces customer's costs for energy.
The project will reduce emissions of nitrous oxides and sulfuric oxides
at the site by nearly 3 million pounds per year. Carbon dioxide emissions,
which are greenhouse gasses and responsible for global warming, will be
cut in half relative to separately producing the steam in one boiler and
electricity elsewhere.
Calendar
of
Events
10th Annual IDEA Distribution Workshop
September 23-25, 1998
Fort Lee Hilton, Fort Lee, NJ
Contact: IDEA, (202) 429-5111
13th Annual IDEA Cooling Conference
October 7-9, 1998
Williamsburg Woodlands, Williamsburg, VA
Contact: IDEA, (202) 429-5111
5th Annual COGEN Europe Conference & Exhibition
November 26-27, 1998
The Sheraton Hotel, Brussels
Contact: COGEN Europe,
+32 2 772 8290
European District Heating & Cooling Week
February 8-14, 1999
Finlandia House, Helsinski
Contact: EuroHeat & Power, unichal, +32 2 779 9279
12th Annual College/University Conference
February 10-12, 1999
Chateau Sonesta,
New Orleans, LA
Contact: IDEA, (202) 429-5111
90th Annual IDEA Conference & Trade Show
June 12-15, 1999
Boston Park Plaza Hotel & Castle, Boston, MA
Contact: IDEA, (202) 429-5111
Unicom Thermal Technologies Restructures
Donald A. Petkus, senior vice president of Unicom Corporation and Commonwealth Edison (ComEd) and president and chief executive officer of UT Holdings, Inc., retired as of June 30, 1998. John P. Mitola was appointed vice president and general manager and assumed leadership of the restructured subsidiary, Unicom Thermal Technologies, Inc.
John Mitola has been a member of Unicom/ComEd in various capacities since 1990. He has been with Unicom Thermal since the company's inception in August 1993 and served as the company's development vice president prior to his appointment to vice president and general manager.
In support of the restructuring of Unicom Thermal, a revised organization
was announced. The following individuals were appointed to new positions
--Scott Blumeyer as director of Chicago area development, Frank Duffy as
director of distribution construction and governmental affairs, Greg Rice
as director of finance and accounting, John Schinter as director of national
engineering and construction, Mark Strutz as general manager of Chicago
operations and construction, and Jeanne Yoss as director of national development.
In addition, Sylvia McIvor has rejoined
Unicom Thermal as their marketing manager.
Nalco Chemical Company Annonces Acquisitions of United Chemasia and Inland Aqua-Tech
IDEA Member Nalco Chemical Company announced the acquisitions of United Chemasia Sdn. Bhd and of the water treatment chemicals business of Inland Aqua-Tech. Terms were not disclosed.
Based in Penang, Malaysia, United Chemasia provides water treatment products and services to middle market customers such as the palm oil, electronics, food and beverage, light industrial and office building industries throughout the country. Annual sales are approximately US $2 million.
Based in Spokane, Washington, Inland Aqua-Tech is a supplier of middle
market water treatment products and services to industries such as textile
plants, computer chip manufacturers, food and beverage plants, hospitals,
office buildings and light industrial businesses. Annual sales are approximately
$2.5 million.
United Kingdom Energy Review Positive News for CHP
The Government of the United Kingdom's Review of Energy Sources for Power Stations has re-affirmed its commitment to boosting the use of combined heat and power. In a parallel statement to the release of the Government's conclusions, the President of the Board of Trade, Margaret Beckett MP said, "We hope that good quality combined heat and power...schemes will be proposed."
According to Combined Heat and Power Association of the United Kingdom
this is a clear signal to the market of the Government's determination to
put energy policy onto a more sustainable basis. Commenting, CHPA Director
David Green said: "The position taken on CHP in the review is welcome.
It will enable the industry to continue to invest in reducing industrial
and domestic energy bills -- as well as improving the environment."
We hope you will join us in
welcoming the following new
members of IDEA!
Ed Tirello
Managing Director
BT Alex Brown
130 Liberty Street, Mail Stop 2102
New York, NY 10006
212-250-2826
212-669-0801 fax
E-mail: ed.j.tirello@btalexbrown.com
Referred by: McGraw Hill
Barbara Coletti
Vice President
BT Alex Brown
130 Liberty Street, Mail Stop 2102
New York, NY 10006
212-250-2039
212-669-0801 fax
Referred by: McGraw Hill
William M. Greenwood, P.E.
President/CEO
The Greenwood Partnership, Ltd.
263 McLaws Circle, Suite 200
Williamsburg, VA 23185
757-253-1620
757-253-5939 fax
E-mail: bill@tgp.com
Kenneth J. Aupperle
Vice President
Team Associates Inc.
5935 Buford Highway, Suite 200
Norcross, GA 30071
423-490-1554
423-899-8424 fax
E-mail: kjaupperle@aol.com
Stephen M. Eber
Vice President Project Development
KeySpan Energy Management
30 Jericho Executive Plaza, Suite 200C
Jericho, NY 11753
516-876-1804
516-876-8910 fax
E-mail: EberS@kem.keyspanmgt.com
Electric Power Industry Restructuring: Fuel Suppliers Face New Challenges in Competitive Electricity Markets
Restructuring of the electric power industry could lead to widespread changes including early retirement of some nuclear power units, closure of less competitive coal mines, and an increased share of natural gas to generate electricity, according to an analysis released by the Energy Information Administration (EIA) in a new report, Challenges of Electric Power Industry Restructuring for Fuel Suppliers.
Restructuring will change the financial risks faced by the industries that supply the fuels used to generate electricity and place new demands on their supply and transportation systems. EIA conducted an analysis of the possible impacts competition in the electricity generation markets could have on the fuel supply industries.
- In its quantitative analysis of likely impacts on fuel supply industries, EIA prepared a range of scenario cases, based on different assumptions about key electricity and energy variables. Some of the key results are:
- In competitive electricity markets, natural gas will likely capture most of the market for new generating capacity.
- Nuclear-powered generation capacity is projected to decline as a result of retirements and lack of new construction.
- Higher demand for natural gas for electricity generation in a competitive environment leads to higher gas prices than would be expected with no competition. Competition also results in slightly lower coal prices.
- Unless required by policies, the restructured electricity market will
not stimulate renewable energy technologies. If policies require increased use of renewables, average electricity prices will increase slightly.
This report is available on EIA's Internet Site at: www.eia.doe.gov/cneaf/
electricity/chg_str_fuel/chg_str_fuel.pdf
Did You Know...
that according to the Eurostat's statistics for the EU
and the year 1994 (the latest available), the share of co-generated electricity
in total electricity generation was 8.9%; the leading countries were: the
Netherlands with 39.6%, Denmark with 32.9%, and Finland with 31.0%,
and
- that, according to the same statistics, the share of co-generated heat in total heat demand was 10.4%; the leading countries were Finland with 62.9%, Denmark with 29.0%, and Sweden with 19.4%.
Total average efficiency of all CHP plants was 76%.
People in the News
Schuerger Leaves District Energy St. Paul
Matt Schuerger, Executive Vice President of District Energy St. Paul,
has left the company as of September 1 after 13 years with them. He has
moved to Italy for a year so his wife can attend school. According to Anders
Rydaker, President of District Energy St. Paul, Matt "has played a
significant role in the success of both our heating and cooling companies
and all that we have accomplished for our customers and the St. Paul community."
All of us at IDEA wish Matt success in his future ventures.
Richardson Sworn in as U.S. Energy Secretary
United Nations Ambassador, Bill Richardson, has been sworn in as U.S.
Energy Secretary after Senate Energy Committee leaders cleared his appoint-ment.
Richardson assumed his new duties as head of the Department of Energy
on August 24, but continues to serve as Washington's U.N. Ambassador until
his replacement is confirmed. Richardson will maintain the U.N. position
for the short-term and devote his energy to both jobs. The Senate Foreign
Relations Committee hasn't yet scheduled a hearing on the nomination of
Richard Holbrooke as Richardson's replacement at the United Nations.
Boiler and Pressure Vessel Accidents and Deaths Increase in 1997
The total number of deaths and accidents in the United States and Canada last year involving boiler and pressure vessels increased dramatically, according to the 1997 Incident Report released by The National Board of Boiler and Pressure Vessel Inspectors.
The National Board reports that the number of deaths recorded increased by 80%, the highest on record since 24 were reported in 1988. The number of accidents also jumped an alarming 18% from last year, however, the total number of injuries remained fairly constant.
There was a total of 18 boiler/pressure-vessel deaths in 1997. This compares with 10 fatalities reported in 1996. In 1997, there was a total of 2,455 accidents or an increase of 369 accidents from 1996.
Of the 18 deaths reported, 12 were caused by human error. Two deaths as of this time remain under investigation and are considered to be of undetermined causes.
Of all the human error categories in the 1997 Incident Report, low water condition continues to be the leading cause of accidents with a 25% increase reported between 1996 (958 accidents) and 1997 (1,198 accidents). Although low water condition accidents were down appreciably in the power boiler (38%) and heating boiler (32%) object categories, water heating boiler accidents increased by 480%.
Despite the 1997 increase in deaths and accidents, there are some encouraging
results to report. The number of operator error/poor maintenance accidents
is down 32% from 1996. Despite the substantial increase in accidents, the
total number of injuries decreased. In the 1997 report, a total of 75 injuries
resulted from 2,456 accidents, or 1 injury for every 33 accidents. The 1996
report revealed 78 injuries from 2,087 accidents, or 1 injury for every
27 accidents.
Chicago District Cooling Plant Exceeds Cooling Specifications
IDEA Member Unicom Thermal Technologies' second district cooling plant, at Franklin & Van Buren Streets in Chicago, Illinois produces 125,000-ton hours of ice storage to meet the needs of a 30,000-ton central chilled-water system serving local downtown office buildings and hotels. The Baltimore Aircoil (BAC) Ice Chiller Engineered Thermal Storage System takes advantage of low off-peak electrical rates to generate and store more than 10.5-million pounds of ice per day, using multiple ice-on-coil bundles stacked in modules three-wide and six-high in the facility's concrete storage tank.
The Franklin & Van Buren plant is the largest (125,000-ton hours)
of three plants operated by Unicom in the downtown Chicago district. The
other plants are located at State & Adams Streets (66,000-ton hours),
and Columbus & Randolph Streets (67,980-ton hours) -- a combined capacity
of 258,980-ton hours.
Mark Your Calendars...
IDEA 90th Annual
Conference and Trade Show
June 12-15, 1999
District Energy & The Environment:
Preparing To Enter A New Millennium
District Energy Now is a monthly publication of the
International District Energy Association.
Marie Williams, Editor
Barbara Erickson, Graphic Designer
All copy and correspondence should be sent to:
1200 19th Street, N.W., Suite 300
Washington, DC 20036-2422
(202) 429-5111 phone
(202) 429-5113 fax
e-mail: idea@dc.sba.com
http://www.energy.rochester.edu/idea