Gulf Coast CHP - Future Potential

Future Potential
Nationally for this market, CHP technical growth is expected to be 3,626 MW. Future economic growth is estimated to be 1900 MW in generating capacity and 70,000 tons in cooling capacity.

CHP technical potential

Significant untapped technical potential exists for this market.1 Technical potential is simply the total capacity that is technically feasible. Nationally, technical potential for CHP in this market is estimated at 3,626 MW.1,2 Current installations represent only 18% of this capacity, so a substantial amount is yet to be installed.1

But CHP can be used for more than just power generation. CHP systems may be integrated with process mechanical drives, process cooling equipment, space heating and cooling equipment, liquid pumping equipment and air compressors.1,2

To see a few of the possibilities, go to Case Studies.

CHP economic potential

Economic potential is the technical potential subjected to an economic screening process. Important among the screening criteria are the capital cost of the CHP system (design, equipment and installation), operating and maintenance costs, and the fuel price for the CHP system relative to competing sources of power and heat, otherwise known as the "spark spread".

The spark spread can be critical. The cost of the CHP system fuel has an important impact on whether a project is economic or not. Duel fuel systems or opportunity fuels, such as process gas or landfill gas; offer some stability in times of volatile fuel pricing. In duel fuel systems, if the price of one fuel becomes uneconomic, the CHP system can be switched to a different fuel and continue to be profitable. Every project is unique, so careful screening of projects is imperative. For more on this topic, see Benefits and Challenges.

In 2003, a series of economic screening models were run by Resource Dynamics that examined future CHP potential in various market sectors. For the rubber and plastics market, this study estimates approximately 1900 MW additional economic generating capacity and 70,000 tons of economic cooling capacity.4 Keep in mind that modeling assumptions were made in this study that have an impact on the final results. (See their report (

992 KB) for model input parameters.)

In summary, significant CHP potential exists for the Rubber and Plastics market.

References

1 - The Market and Technical Potential for Combined Heat and Power in the Industrial Sector

(230 KB)

Onsite Sycom (January 2000)
The report describes CHP technologies, CHP current capacity and future technical capacity for the industrial sector in the United States. Also included is a section discussing the factors that fostered or inhibited CHP adoption, along with recommendations to increase CHP implementation in the future.

2 - Assessment of On-Site Power Opportunities in the Industrial Sector

(390 KB)

Onsite Energy (2001)
This report describes the current capacity and remaining technical potential for on-site power generation in the US industrial sector. Results are reported for individual industries, and in some cases, for sub sectors within industries. General economic and environmental benefits of CHP are discussed along with CHP-related initiatives for individual industries.

3 - Combined Heat and Power Installation Database

EEA (2005)
Database provides information on CHP sites by state, including city, site and organization name, business activity, year of installation, prime mover, fuel type and capacity.

4 - Cooling, Heating and Power for Industry: A Market Assessment

(992 KB)

Resource Dynamics (August 2003)
This report analyses the CHP potential (Including cooling applications) for a range of industrial markets using CHP systems up to 50 MW in size. Data modeling allows for identification of the best technology for each industry, and these data are a further modeled under a range of economic scenarios to provide information on the number of potential sites.