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Appendix D Quantifying CHP Benefits

The following is a recommended procedure for district staff to include the benefits of combined heat and power (CHP) toward compliance with the emission level of central station power plants equipped with BACT. This credit cannot be used to avoid satisfying district BACT requirements or in quantifying an emission offset credit.

The credit for CHP is given to those installations that meet the following criteria: 1) design to achieve a minimum efficiency of 60% in the conversion of the energy in the fossil fuel to electricity and process heat; 2) design to achieve an annual average efficiency of 75% in the conversion of the energy in the fossil fuel to electricity and process heat; and 3) BACT requirements are satisfied for the size and class of electrical generation technology. In addition, efficiency determinations do not include time periods for startup, shutdown, and when the facility is not operated.

If all the above qualifications are satisfied, credit should be granted in form of allowing the process heat be added to the total energy production at the facility at the rate of 1 MWh for each 3.4 million Btu of process heat.

Lb/MW-hr = emissions (lb/hr) / [MW (electrical) + MW (process heat)]

EXAMPLE

Project with fuel input of 16 MW provides 5 MW of electrical output and an equivalent process heat requirement of 7 MW. The process heat requirement can dip to 5 MW. Emissions are at 5 ppmv at 15% O2 or 0.25 lb/MW-hr.

Minimum overall efficiency: 62% Average overall efficiency: 75% Lb/MW-hr: 0.25 Lb/MW-hr with CHP credit: 0.1

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