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105 records · Page 6

A Technical and Economic Assessment of LWR Flexible Operation for Generation and Demand Balancing to Optimize Plant Revenue

With increased penetration of subsidized variable renewable energy (VRE) resources and competition from low natural gas prices, existing light water reactor (LWR) nuclear power plants (NPPs) are struggling to remain economically competitive. This work examines the potential economic competitiveness of various thermal energy storage (TES) technologies when coupled directly or indirectly with a NPP. To highlight their relative economic competitiveness, we contrast several energy storage solutions in stochastic dispatch optimization. We leverage data from recent work analyzing a range of TES technologies with varying capital costs, performance, and technology readiness level (TRL) to establish our case. We explore inserting these technologies into an electricity market with existing nuclear generation and large projected variable renewable energy (VRE) penetration. Although these technologies' projected capital costs may make them unlikely candidates in their current state, this analysis demonstrates a high-fidelity techno-economic analysis of energy storage. Furthermore, as the projected cost of energy storage technologies evolves, this analysis sets a precedent for similar future investigations. One region with projected trends that may be unfavorable for existing nuclear capacity is the New York Independent System Operator (NYISO) market. New York state’s baseload generation has been historically provided by fossil-fired and nuclear assets. However, amid economic pressures from subsidized VREs and low natural gas prices, the state has recently deactivated Indian Point nuclear power plant units 2 and 3. Furthermore, the state plans to meet its zero-emission generation target by 2040 by replacing fossil-fired capacity with significant investments in VRE resources like wind and solar photovoltaic (PV) and battery storage. Increased intermittent resource penetration lowers the baseload power requirement, adding further economic pressure to the state’s three remaining NPPs still in operation. With three NPPs still in operation in New York, this work analyzes potential economic benefits to NPPs on the New York grid when directly or indirectly coupled with various TES technologies. This work requires two modeling steps to analyze the potential economic benefits of various system configurations of the TES directly or indirectly coupled with nuclear. First, this analysis leverages capacity expansion modeling by experts at the Electric Power Research Institute (EPRI). Using their deterministic capacity expansion model, U.S. Regional Economy, Greenhouse Gas, and Energy (US-REGEN), EPRI analysts evaluated the capacity and generation evolution of the New York state energy market under four projection scenarios. These four projection scenarios were developed to represent the potential evolution of the capacity and generation in NYISO from 2015 to 2050 under various economic, technology, and policy constraints. The results from these capacity expansion models are then used as boundary conditions in the second modeling step. The second modeling step uses the Holistic Energy Resource Optimization Network (HERON) for a set of stochastic techno-economic analyses (STEAs) to investigate the potential increase in the economic viability of various configurations of the TES. With no current capacity expansion capabilities, HERON takes the data generated from US-REGEN for 2050 to generate synthetic load, solar, and wind data. Then HERON economically optimizes the capacity and dispatch of the various TES configurations. The potential economic benefit is the differential net present value (NPV) of the TES configurations from the no-TES baseline. As a stochastic techno-economic analysis package, HERON introduces uncertainty into the economic metrics, while US-REGEN trades resolution for reduced computational complexity. Using HERON also allows the modeling of direct thermal coupling, a feature not common in capacity and dispatch models. As expected, with high capital costs, the costs of introducing energy storage for all the technologies considered outweighed the potential economic benefit of this strategy for flexible plant operation. The benefit of this analysis is primarily in demonstrating a workflow that examines innovative solutions to increase NPP revenue via TES coupling. HERON’s stochastic capacity and dispatch optimization process used in this work has proven an effective tool in observing and evaluating the impact of introducing storage technologies in a grid energy system.

25 ENERGY STORAGE↗

On the Path to SunShot. Advancing Concentrating Solar Power Technology, Performance, and Dispatchability

This report examines the remaining challenges to achieving the competitive concentrating solar power (CSP) costs and large-scale deployment envisioned under the U.S. Department of Energy's SunShot Initiative. Although CSP costs continue to decline toward SunShot targets, CSP acceptance and deployment have been hindered by inexpensive photovoltaics (PV). However, a recent analysis found that thermal energy storage (TES) could increase CSP's value--based on combined operational and capacity benefits--by up to 6 cents/kWh compared to variable-generation PV, under a 40% renewable portfolio standard in California. Thus, the high grid value of CSP-TES must be considered when evaluating renewable energy options. An assessment of net system cost accounts for the difference between the costs of adding new generation and the avoided cost from displacing other resources providing the same level of energy and reliability. The net system costs of several CSP configurations are compared with the net system costs of conventional natural-gas-fired combustion-turbine (CT) and combined-cycle plants. At today's low natural gas prices and carbon emission costs, the economics suggest a peaking configuration for CSP. However, with high natural gas prices and emission costs, each of the CSP configurations compares favorably against the conventional alternatives, and systems with intermediate to high capacity factors become the preferred alternatives. Another analysis compares net system costs for three configurations of CSP versus PV with batteries and PV with CTs. Under current technology costs, the least-expensive option is a combination of PV and CTs. However, under future cost assumptions, the optimal configuration of CSP becomes the most cost-effective option.

14 SOLAR ENERGY↗

Scale and Regionality of Nonelectric Markets for U.S. Nuclear Light Water Reactors

This study assesses existing and potential industries that could conceivably be directly coupled to existing nuclear reactors. The goal is to identify the scale, location, and accessibility of the candidate industrial-product markets, as well as process feedstocks that are available near the plants to establish new industries. For example, CO 2 as a feedstock can be combined with H 2 to produce formic acid (FA), transportation fuels, and lubricants. These new plants can be entirely supported with the heat and electricity provided by a nearby NPP. The potential demand for nonelectric industrial products was assessed by documenting current and possible growth of nonelectricity product markets considered. This assessment used DOE- and industry-supported tools, data, and projections to capture regional industrial market opportunities. Electricity-capacity markets that reward large and reliable generators, such as NPPs, were considered because the electricity market will likely continue to be an important revenue source to NPPs. The key is to balance the needs of energy customers so as to optimize revenue for the affiliated energy customers or partners. In most cases, flexible plant energy delivery and power generation for the grid will require either energy storage or a stock of intermediate products to sustain the industrial customers when the NPP dispatches electricity to the grid. A diverse mix of temperate regions with operating NPPs around the U.S.—representing a variety of operating markets, local generation mix, and seasonal climates—were chosen for this market study. Both current and future market opportunities for candidate industrial-product markets surrounding these NPPs were studied. Figure 2 illustrates the regions chosen for this study. The success of developing nonelectric industrial-product markets as alternative revenue-generating sources for LWRs depends, not only on demand from growing existing markets, such as petroleum refining and NH 3 production, but also on the development of new markets such as light-duty (LD) and heavy-duty (HD) hydrogen FCEVs, synfuels, chemical production, biofuels, metal refining, injection of hydrogen into NG pipelines for gas power-generating units, FA, polymers, and close-coupled industrial heat applications, all of which can significantly increase demand relative to current levels while decarbonizing energy sectors. This study also presents a sample analysis of the economics of hydrogen production in an area of Minnesota, considering the capital and operating costs of a hydrogen plant as well as the local market demand for hydrogen. It includes some assumptions on electricity-grid pricing, showing how hydrogen could be integrated with an NPP and be competitive with the incumbent hydrogen-production process, steam methane reforming (SMR). The objectives of this study include: Provide U.S. NPP operators a robust sampling of the market demand location, scale, and accessibility (including storage and transportation) of the wide variety of industrial-product choices that can be produced using nuclear thermal energy and electricity proximate to a subset of U.S. NPPs to inform the industry of the potential opportunity; show examples and trade-off analyses of how U.S. LWR operators can access these markets, including storage and transportation of industrial products to their intended markets; and present a general analysis example for one industrial product (hydrogen) in one region (Minnesota area), including production, storage, and transportation, to show how nuclear-hybrid integrated energy systems (IESs) could access local markets and improve the profitability of an NPP.

03 NATURAL GAS↗

Southwest Wind Power R&D Test Site Development at the National Wind Technology Center (CRADA CRD-12-00472 Final Report)

Southwest Windpower, Inc. (SWWP) has been designing and distributing small wind turbines for more than 22 years and is the recognized global leader in the design, manufacturing and distribution of small wind systems (400-3000 watts). The company has been a pioneer in the development of wind technology and has built and shipped more than 170,000 wind turbines to over 120 countries worldwide. Headquartered in Flagstaff AZ, SWWP has sales representatives in over 88 countries. Applications for SWWP systems include residential homes, commercial properties, micro grids, remote cabins, telecom transmitters, offshore platforms, water pumping and sailboats. In addition, U.S. Department of Defense uses SWWP’s products in Forward Operating Bases (FOB’s), USGS uses them for remote monitoring of glacier movements and the CIA uses them to provide power seismic monitoring. Today, SWWP plans development of new technologies to address distributed energy market needs and become even more aggressive in international markets. This strategy includes extensive Research, Development, Demonstration & Deployment (RDD&D) activities to improve existing production line into more simple, reliable, and cost-effective wind turbine systems. Important part of such activities is the field testing of the new systems, which should provide: (i) validation of the reliable operation of hardware and software; (ii) validation of numerical models of the system and its components; (iii) field comparison of various control and optimization strategies; (iv) customized reliability testing; (v) customized monitoring and analysis testing; and (vi) IEC certification testing (vii) filed demonstration of system performance and reliability. Such field testing facility should encompass multiple towers and appropriate data acquisition systems. SWWP is exploring to move part of the engineering department to Colorado, and execute its RDD&D strategies in this new location. Partnership with NREL will provide great insights into SWWP’s RDD&D processes and more efficient commercialization by utilizing NWTC as the field testing site, and working close with NREL personnel. NWTC is ideally suited to strain the design. NREL is very experienced with customized and IEC testing. During this project, Southwest Windpower aims to improve the value proposition of distributed renewable energy, and make it a competitive choice in the energy markets. As of today, more then 170,000 small wind turbines, manufactured in the U.S., are installed in more then 180 countries. With the improved value proposition, Southwest Windpower wants to create and address new market needs, substantially increase its sales domestically and internationally, which should have positive impact on the creation of American jobs, competitiveness of U.S. economy, export or U.S. products, and the use of renewable energy.

17 WIND ENERGY↗

Integration of Superconducting Magnetic Energy Storage (SMES) Systems Optimized with Second-Generation, High-Temperature Superconducting (2G-HTS) Technology with a Major Fossil-Fueled Asset

Utility companies and fossil fueled generation assets are seeking combinations of “hybrid energy storage” to allow power to be provided in advance of, and to otherwise complement, peaking natural gas-fired generation. American Maglev Technology of Florida Inc. (AMT) learned during the Phase I program based on interactions with NRG Energy (NRG) that energy storage such as superconducting magnetic energy storage (SMES) can qualify as a Black Start unit in most markets, ensuring orderly re-start of grid operations and fossil fueled power plants and serving as an important asset of hybrid energy storage technology. In conjunction with the University of Houston (UH), AMT and NRG are working together to scale up low-cost, high- efficiency, second-generation high-temperature superconducting (2G-HTS) technology for deployment across several markets, with a primary focus on the commercial development of utility grid-scale SMES (g-SMES) systems. Ultimately the program confirmed that the novel g-SMES design can meet the performance and financial requirements of the fossil power plant industry, while exhibiting continuous grid-voltage regulation; cost-effective, peak-hour energy storage with almost infinite life; increased input/output efficiency; and the capability to undergo millions of charging cycles, without degradation, representing a significant improvement over lithium ion and other conventional storage technologies. We believe wide scale deployment of this technology is feasible and practical when compared to the higher life cycle cost and relatively short lifespan of chemical batteries. Based on these findings, the future for deployment of SMES at many fossil-fueled power plants exceeding 100MW capability is bright. Further de-risking g-SMES technology would pave the way for the construction of a subscale prototype. Eventually, scaled-down versions of SMES are expected to be competitive with the multi-billion-dollar lithium-ion market for a wide range of commercial, industrial, and transportation uses. There is long-term potential for commercialization and widespread deployment of this disruptive technology, which would spawn a new worldwide supply chain and create domestic, high-tech manufacturing jobs in the green industry.

20 FOSSIL-FUELED POWER PLANTS↗

A comparison study on trading behavior and profit distribution in local energy transaction games

With the increasing integration of distributed energy resources, localized peer-to-peer energy transactions are receiving more attention since they could absorb more distributed renewables locally and stabilize the power grid. To better study the trading behavior and provide guidance for a viable local market design, different game-theoretical frameworks including cooperative and non-cooperative games are established and compared here. For the cooperative grand coalition, the maximum social welfare is guaranteed, the Shapley value and bargaining based approaches are implemented for further profit redistribution. It is shown that the asymmetrical bargaining power can be critical in the final payment clearing and it is equivalent to the Shapley value allocation if prosumers bargain based on their marginal contributions. Non-cooperative trading is formulated by using a Stackelberg bilevel model in which the upper level has the privilege in internal price setting. However, system optimum is not obtained due to competition, and the selfish leader could take away 89% of the collective benefit by price-gap based arbitraging. Aiming for a long-lasting trading market, a virtual benevolent leader and a uniform price structure in which purchase price equals selling price are tested. Experimental results indicate that maximum social welfare and a fairer profit allocation can be achieved with a uniform price structure, regardless of the selfish or benevolent attitude.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Quantifying the Value of Hydropower in the Electric Grid: Final Report

The report summarizes research to Quantify the Value of Hydropower in the Electric Grid. This 3-year DOE study focused on defining value of hydropower assets in a changing electric grid. Methods are described for valuation and planning of pumped storage and conventional hydropower. The project team conducted plant case studies, electric system modeling, market analysis, cost data gathering, and evaluations of operating strategies and constraints. Five other reports detailing these research results are available a project website, www.epri.com/hydrogrid. With increasing deployment of wind and solar renewable generation, many owners, operators, and developers of hydropower have recognized the opportunity to provide more flexibility and ancillary services to the electric grid. To quantify value of services, this study focused on the Western Electric Coordinating Council region. A security-constrained, unit commitment and economic dispatch model was used to quantify the role of hydropower for several future energy scenarios up to 2020. This hourly production simulation considered transmission requirements to deliver energy, including future expansion plans. Both energy and ancillary service values were considered. Addressing specifically the quantification of pumped storage value, no single value stream dominated predicted plant contributions in various energy futures. Modeling confirmed that service value depends greatly on location and on competition with other available grid support resources. In this summary, ten different value streams related to hydropower are described. These fell into three categories; operational improvements, new technologies, and electricity market opportunities. Of these ten, the study was able to quantify a monetary value in six by applying both present day and future scenarios for operating the electric grid. This study confirmed that hydropower resources across the United States contribute significantly to operation of the grid in terms of energy, capacity, and ancillary services. Many potential improvements to existing hydropower plants were found to be cost-effective. Pumped storage is the most likely form of large new hydro asset expansions in the U.S. however, justifying investments in new pumped storage plants remains very challenging with current electricity market economics. Even over a wide range of possible energy futures, up to 2020, no energy future was found to bring quantifiable revenues sufficient to cover estimated costs of plant construction. Value streams not quantified in this study may provide a different cost-benefit balance and an economic tipping point for hydro. Future studies are essential in the quest to quantify the full potential value. Additional research should consider the value of services provided by advanced storage hydropower and pumped storage at smaller time steps for integration of variable renewable resources, and should include all possible value streams such as capacity value and portfolio benefits i.e.; reducing cycling on traditional generation.

13 HYDRO ENERGY↗

Modular Undersea Compressed Air Energy Storage (UCAES) System

This project has been devoted to the design, optimization, and cost analysis of a unique power plant with integral energy storage. The proposed facility combines a novel underwater compressed air energy storage (UCAES) system with a customized gas turbine generator, providing exceptional power management and overall efficiency. Unlike conventional CAES, opportunities for underwater storage are plentiful and proximal to the power grid. The UCAES system provides coastal and island communities a practical means for managing the volatility of large-scale wind and solar power resources. The result is higher renewable energy absorption and improved electrical reliability with reduced fossil fuel consumption. The UCAES power plant is composed of three major subsystems: The underwater air containment system (ACS), the air transport pipe (ATP), and the land-based power conversion system (PCS). The underwater ACS is made up of modular concrete shell units, structurally optimized for minimal material usage while employing conventional production methods and equipment. Each shell is designed to receive and control loose fill or gravel, serving as the ballast. The static nature of the final structures make them an asset to marine habitats and includes features intended to permit safe and cost-effective deployment. The ATP Connects the ACS modules to each other and to the on-land power conversion system and utilizes high density polyethylene (HDPE) pipe for low cost and long life. The PCS Houses the turbine-generator ‘expander modules’, with peak capacity of 12.3 MWe each, engineered from existing gas turbine equipment and includes electrically driven commercial 3-stage intercooled centrifugal compressors, each nominally drawing 6.6 MWe when matching the turbine flow requirements. The subsystems listed above are designed with the intent to serve as building-blocks to achieve a peak power output rating in the 40 to 120 MWe range, with 0.25 to 4 hours of energy storage capacity. The modular facility with integral energy storage provides some remarkable transient maneuvers and load-following features unachievable by competing technologies. The system can operate as a dispatchable power plant with a fuel-to-electric efficiency over 41%; substantially better that the average existing Hawaiian peak power generation assets. Optimal efficiency can be maintained while load-following due to modular PCS design and is operable with a range of liquid or gaseous fuels while meeting the most stringent California (CARB) emission standards. The system can operate as a peaking energy plant in discharge mode. Power ramp-up equivalent to 215% of continuous load rating within 1 second accomplished by simply turning off the electric compressor(s). Contrarily, the system can offer energy absorption during periods of grid surplus generation. The electric compressors may be sequenced on to absorb power within seconds. More moderate transitions are easily achieved with standard compressor control functions. The system offers unique features as compared to energy storage systems. ‘Round-trip efficiency’, as calculated by industry standard methods, is in the 90% range. The PCS equipment has a mean-time between overhauls of 80,000 hours, with maintenance costs of less than $0.005/kW-hr of electricity delivered. The underwater ACS structures and piping employ materials and designs specified to achieve a 75 year life. With the underwater containment modules qualified as a marine habitat, there would be no decommissioning costs. In conjunction with the engineering work invested in the design of the UCAES power plant, Brayton Energy has employed a team of manufacturing specialists, marine construction engineers, and power industry experts to create a comprehensive economic model that captures the many site-related variables and configuration options. The cost results and methodology have been validated by suppliers, engineers, and deployment specialists through a detailed case study on Hawaii. While creation of the parametric cost model was based on inputs specific to Hawaii, the proposed construction and deployment steps were chosen to be general enough to allow extrapolation across locations world-wide. Analysis of the proposed system shows it to be a viable option and addresses the principal challenges described by the Department of Energy by offering competitive costs, validated safety and reliability, consideration of the regulatory environment, and utilization of industry accepted practices and equipment. The UCAES system is recommended for immediate consideration in Hawaii. Estimation of time to complete planning, design, and construction of the facility is anticipated to take 3 to 5 years. Other coastal and island communities world-wide should realize similar benefits; as the results presented in this report are considered generally transferable to other locations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Economic Assessment of Hydrogen Technologies Participating in California Electricity Markets

As the electric sector evolves and increasing amounts of variable renewable generation are installed on the system, there are greater needs for system flexibility and sufficient capacity, and greater concern for overgeneration from renewable sources not well matched in time with electric loads. Hydrogen systems have the potential to support the grid in each of these areas. However, limited information is available about the economic competitiveness of hydrogen system configurations. This paper quantifies the value for hydrogen energy storage and demand response systems to participate in select California wholesale electricity markets using 2012 data. For hydrogen systems and conventional storage systems (e.g., pumped hydro, batteries), the yearly revenues from energy, ancillary service, and capacity markets are compared to the yearly cost to establish economic competitiveness. Hydrogen systems can present a positive value proposition for current markets. Three main findings include: (1) For hydrogen systems participating in California electricity markets, producing and selling hydrogen was found to be much more valuable than producing and storing hydrogen to later produce electricity; therefore systems should focus on producing and selling hydrogen and opportunistically providing ancillary services and arbitrage. (2) Tighter integration with electricity markets generates greater revenues (i.e., systems that participate in multiple markets receive the highest revenue). (3) More storage capacity, in excess of what is required to provide diurnal shifting, does not increase competitiveness in current California wholesale energy markets. As more variable renewable generation is installed, the importance of long duration storage may become apparent in the energy price or through additional markets, but currently, there is not a sufficiently large price differential between days to generate enough revenue to offset the cost of additional storage. Future work will involve expanding to consider later year data and multiple regions to establish more generalized results.

25 ENERGY STORAGE↗

Case Study: Hybrid Carbon Conversion Using Low-Carbon Energy Sources in Coal-Producing States

The demand for more carbon efficient power sources and a decrease in natural gas prices has decreased the desire for coal power. This decrease in demand has led to massive job losses in coal mining regions over the past decade. The purpose of this project is to develop a hybrid energy system utilizing both a coal power plant and advanced reactor, which is competitive with natural gas by improving on profitability and decreasing carbon emissions. This report details the problem with a summary of the impact on the coal industry and the availability of renewable energy sources in the Appalachian region. Because of the geography of the region, variable renewable energy sources are not available without significant size and siting restrictions. However, biomass in the form of wood waste is abundant and can be used as a carbon neutral energy source. Combining biomass and coal processing, in addition to thermal power plants, can increase system profits and efficiency by providing peaking power and conversion opportunities for secondary markets. The electric load is based on publicly available demand data from Appalachian Power, which services the western Virginia and southern West Virginia in the Appalachian region. The demand information is combined by service, normalized, and scaled to an average demand of 1000 kW, which will be the basis for sizing the hybrid energy system. A traditional screening curve analysis for a coal plant and advanced reactor shows that the least cost design varies significantly based on the assumed discount rate and capital recovery period. An optimization program to size the design in TEAL based on the load curve gives 10 optimal designs, all with a negative resulting net present value (NPV) and a coal plant capacity of less than 15%. Including profits from selling captured carbon at a flat rate results in a positive NPV; however, the coal capacity factor only increases to about 40%. There are limitations with this optimization as well since the price of CO2 is likely to decrease as more is sold to the conversion market. The suggested design will combine coal power, an advanced reactor, and coal and biomass coprocessing to produce a variety of products that can be sold to the conversion market while increasing system efficiency. The analysis of conversion pathways for coal and biomass reveals that multiple options will need to be included in the analysis to produce the optimal system design. Three systems will be optimized and compared to determine the best design based on the figures of merit of total NPV and cost of carbon avoided. The first system will include a coal power plant and an advanced reactor that will sell electricity to the grid to meet demand and sell captured carbon to the conversion market. The second system adds a high-temperature steam electrolysis plant, which will utilize electricity during times of low demand to produce hydrogen and sell it to the conversion market. The third system adds biomass and coal processing with options for hydrocarbon oils, syngas to be produced for the conversion market, and electricity generation to power components within the system or provide peaking power. This analysis will be based on a new approach that combines traditional screening curve methods with a dispatch algorithm that optimizes the system based on the opportunity cost of different production options. The resulting optimization algorithm should provide results with less processing time than HERON’s decision tree method. The results from this analysis will determine an optimal design and reinforce the benefits of coal power when used in a hybrid energy system. The initial results show that the addition of a secondary market for carbon sales could result in a positive NPV and increases the capacity factor of the coal plant as compared to a design with only sales to the electricity market. The addition of more markets and additional coal consumption from biomass coprocessing could increase NPV further, replace carbon in other markets through the sale of biomass-derived hydrocarbons, and demonstrate the value of coal power technology.

01 COAL, LIGNITE, AND PEAT↗

Modeling and Experimental Validation of a Direct-Contact Counter-Flow Fluidized Bed Heat Exchanger for Thermal Energy Storage (TES) Applications

Particle-based thermal energy storage (TES) systems are an emerging energy storage technology. The technological advances have reduced costs, making TES more competitive and reliable in the marketplace but an efficient and reliable operation is heavily dependent on coherent heat transfer between air to particles or vice versa. The particle-based TES technologies provide an intermediate system that can store energy for short (0-10 h), long (10-200 h) and seasonal (> 200 h) timescales. The TES systems store energy by converting electricity to thermal energy; electricity can be directly sourced intermittent generation technologies and/or the grid, helping manage peak loads and other mismatches in supply and demand. The overall efficiency of the TES system depends on the performance of system components (particle storage silos and particle transfer mechanism etc.). The particle heat exchanger is one of the key system components that affects the system efficiency. The pressurized fluidized bed heat exchanger (PFB HX) performance is challenging to predict due to the chaotic behavior of particle and fluid interaction. This research presents a computational study of a novel direct-contact, counter-flow and air-to-particles PFB HX, that contributes in advancing the particle-based long-duration TES technologies. For the current analysis an unsteady Eulerian-Eulerian CFD model was developed and validated against experiments performed at the National Laboratory of the Rockies for two particle sizes (600 ..mu..m and 825 ..mu..m ). Following validation, parametric simulations were conducted to evaluate the effects of interphase drag models (Syamlal-O'Brien and Gidaspow), particle size, bed height and the influence of a frictional-viscosity term on hydrodynamics and heat transfer between the air & particles. The key findings from the analysis are: (1) for the studied operating window Syamlal-O'Brien provides superior agreement with measured gas temperatures (errors generally < 10%) while Gidaspow shows large deviations for the coarse particle case; (2) model predictions are most sensitive in the lower 0.2 m above the air distributor where bubble initiation and local mixing dominate interphase heat transfer; (3) representation of the distributor (number of inlet ports) materially affects predicted local mixing and temperature stratification; and (4) the Eulerian-Eulerian framework reproduces bulk thermal trends but shows regime dependent limitations for coarse particles, motivating mesoscale informed closures for scale-up analysis for future studies. These results provide validated guidance for drag selection and distributor design in particle-based thermal energy storage applications. Collectively, the validated model and parametric results quantify key drivers of PHB-HX performance and provide practical guidance for design and optimization. The results provide confidence in the model predictability and provide a step forward to improve on heat exchange performance. The demonstrated performance and modeling approach support the deployment and further development of this novel PHB-HX concept for robust, particle-based long-duration thermal energy storage systems.

25 ENERGY STORAGE↗

Extended Low Load Boiler Operation to Improve Performance and Economics of an Existing Coal Fired Power Plant (Final Report)

The overall goal is to improve the performance and economics of existing coal fired power plants by extending low load boiler operation to lower loads than is currently achievable. The objective of this program is to develop and validate sensor hardware and analytical algorithms to lower plant operating expenses (OPEX) for the currently operating pulverized coal utility boiler fleet. Coal fired utility boilers are increasingly under grid dispatch pressure. In some cases, the coal fired cost of generation is noncompetitive with respect to natural gas generation and subsidized renewable sources. To remain profitable and remain fully compliant with existing environmental regulations, the installed coal fired fleet must find technologies which allow it to move into a more flexible cyclic load dispatch model. Today the installed coal fired utility fleet must be cost of generation competitive, fully emissions compliant, and responsive to the variability inherent in renewable energy generation sources. In the Phase I of the project, GE Steam Power, Inc. (GE) performed modeling of different operating scenarios for low load operation using an existing full plant dynamic model developed for a 660MW steam power plant. Sensors and analytic algorithms to enable a stable and steady coal supply for low load pulverizer operation were identified and tested at the Pulverizer Development Facility (PDF) at GE’s Clean Energy Center in Bloomfield, Connecticut. Sensors and analytic algorithms to enable stable combustion for low load operation were identified and tested at the 15 MWth Industrial Scale Burner facility (ISBF) at GE’s Clean Energy Center. A concept was developed to test the sensors and control algorithms, down selected after testing, at a full-scale coal fired power plant. A budget estimate was then developed, and the concept was implemented at an existing utility power plant. The specific objectives of the experimental work were to: • Identify and select sensors and analytic algorithms for monitoring coal pulverizer operation at lower loads to provide stable operation and appropriate coal fineness at lower coal throughput; Identify and select sensors and analytic algorithms for a Boiler Flame Stability Monitor to better balance air and fuel at each burner. This enables a reduction in a coal boiler’s safe low load power level while maintaining stable flame characteristics; Develop a concept in Phase I for low load operation of a full-scale power plant and develop a budget estimate for testing and execute the test plan at an existing plant in Phase II; Validate the capability of the extended low load boiler system to extend the minimum load operating point in a safe and reliable manner on an existing full-scale utility boiler. At the completion of this experimental study, GE has developed a set of sensors and analytic algorithms, down selected after testing, that have the potential to enable safe low load operation of a utility boiler. GE has also identified a host site for testing these identified sensors and analytic algorithms. GE has generated a full set of deliverables that provide sufficient information to proceed with the next step of testing at a host site. This includes a potential host site and budget estimate for concept testing at host site. In the Phase II of the project, a series of field tests were completed to validate the extended low load boiler operation, which consisted of detailed engineering, installation, commissioning, and testing the additional sensors and analytics for the coal-fired combustion system on an existing full-scale utility boiler. The optimization work has been supported by the host plant and endorsed by their engineering and operation staff.

01 COAL, LIGNITE, AND PEAT↗

Restoration Hydro: A Watershed Approach to Standard Modular New Hydropower

The objectives of FOA DE- FOA-0001836- “Standard Modular Hydropower” included designing a standardized, modular, and environmentally compatible hydropower schematic for implementation in greenfield sites that generate up to 10 MW of capacity. Utilizing funds competitively awarded under DOE’s Water Power Technologies Office, the Natel Energy team developed a concept for modular new stream reach (NSR) hydropower that incorporates multi species upstream and downstream fish passage, improved river channel connectivity, and recreational modules. The in-stream design of the collective modules minimized site specific design and maximized the opportunities for modularity. Financial data was also presented using actual costs from regional suppliers, with figures provided in 2022 dollars. While the project team did not address potential permitting process improvements, the site selection criteria did consider established barriers to hydropower development such as tribal and preserved lands, interconnection proximity, and endangered species to exclude or deprioritize. The project’s design schematic met the objectives of the FOA, and presented a unique solution that targets alluvial pockets as natural features for sustainable development. Natel’s concept also incorporated the company's fish-safe Restoration Hydro Turbine for safe downstream passage, while featuring a rock arch that integrates fish passage, water, recreation, and grade control modules (including sediment). Alignment with the Department of Energy Office of Energy Efficiency and Renewable Energy (EERE) “Innovative Design Concepts for Standard Modular Hydropower and Pumped-Storage Hydropower” Program: According to the Hydropower Vision (DOE, 2016), approximately 16 GW of hydropower growth is possible with the development of technology solutions that balance efficiency, economics, and environmental sustainability. The desired outcome of the SMH program is transformational innovation specifically in the site identification, conceptual, and detailed design phases of technology development lifecycles (DOE, 2018). In developing the SMH design schematic, the team aimed to address the opportunities outlined in the Vision through an inverted design philosophy; rather than singularly prioritizing efficiency and power production, the team focused on integrating hydropower with restoration of degraded streams to optimal ecosystem function and provision of exceptional recreation value as design criteria. To achieve this, Restoration Hydro incorporates the principles of nature-based engineering (WWAP, 2018) and biomimicry (Biomimicry NL.) to strategically deploy complementary combinations of permanent, semi-permanent, and ephemeral low-head structures - such as natural and engineered log jams - that harness geomorphological and hydrological processes at the landscape-scale. Primary applications of Restoration Hydro include: 1) restoration of degraded watersheds’ natural ecological function and enhancement of hydrological connectivity; and 2) creation of associated co-benefits to hydro production, including increased groundwater recharge, improved sediment transport and management, improved water security and water quality. Restoration Hydro projects build upon proven watershed restoration engineering techniques by integrating hydropower turbines into low-head structures using innovative and evolving civil works concepts that facilitate fish and sediment passage, and in some cases create additional revenue-generating recreational opportunities. Powering low-head structures creates a directly monetizable layer of economic value in the form of flexible, reliable, renewable energy on top of the already high-value water, environmental and recreational benefits of watershed and river restoration. The approach aims to create a virtuous, self-reinforcing cycle whereby Restoration Hydro projects support the scaling of ecosystem restoration activities, creating a water-energy-carbon multiplier effect that, through the principles of adaptive change management: 1) improves the resilience of landscapes and downstream population centers for changing hydrological cycles; 2) creates a reliable energy resource that facilitates the integration of intermittent renewable power sources into grids; and 3) supports climate change mitigation through grid decarbonization and enhanced ecosystem carbon capture and retention.

13 HYDRO ENERGY↗

Potential State Regulatory Pathways to Facilitate Low-Carbon Fuels

States and the federal government are increasingly engaged in the challenges around decarbonizing the electric grid. In particular, regulators, consumers, stakeholders, and utilities recognize the need to carefully consider the role natural gas will play in a decarbonized future. A variety of technology and policy options to reduce greenhouse gas emissions associated with natural gas use are available, including energy efficiency programs, demand reduction tools, strategic electrification, and strategies to reduce emissions from natural gas production, transportation, and consumption. Low-carbon fuels – mainly renewable natural gas (RNG) and clean hydrogen – are being considered an important component of decarbonization goals. RNG and hydrogen may be able to meaningfully reduce emissions from processes independent of geologic natural gas, displacing emissions of methane, a powerful greenhouse gas. Although RNG and hydrogen are not cost-competitive today with geologic natural gas and are smaller in scale and potential than other decarbonization options, they can be explored as potential critical tools to decarbonize sectors that are difficult to electrify or shift off of natural gas entirely, such as air travel, industrial processes, maritime transport, long-distance trucking, space heating on cold days, and railroads (Nadel, 2022). The role of this report is to provide informational context for state utility regulators to understand the impacts of and challenges associated with broader integration of low-carbon fuels, followed by examples of state regulatory actions taken to date to facilitate the development of low-carbon fuels. Setting clear guidance to calculate the environmental benefits of low-carbon fuels and continuing federal and state investments in research and development to reduce costs relative to fossil fuels will be important steps to take to signal the desire to grow the market for these fuels. State public utility commissions may play a key role in setting regulatory frameworks for low-carbon fuels and ensuring that ratepayer funds, if utilized, are done so to further the public interest. This report is intended to summarize decisions that states have made to date on low-carbon fuels. In the spirit of understanding the current market and sharing information, this report provides success stories, and lessons learned across states as regulators implement varying strategies to achieve decarbonization objectives while maintaining their focus on affordability, safety, and reliability of the energy system. The report begins with an introduction of the role of natural gas in the U.S. economy (Section I) and background information on natural gas use, decarbonization, and low-carbon fuels (Section II). Next, the report describes the current market by discussing the scale of current production, emissions intensity, resource potential, and costs of low-carbon fuels compared to geologic natural gas (Section III). Following these sections, the report describes four strategies states have employed to facilitate low-carbon fuels: opening exploratory dockets, approving voluntary tariffs for customers, approving interconnection tariffs for producers, and considering portfolio-wide procurement targets (Section IV). This section lists states that have taken actions in each category, citing utility filings, commission decisions, stakeholder comments, and other relevant sources. Finally, the report concludes with suggested questions regulators may wish to consider regarding low-carbon fuels, in the interest of preparing to make decisions in the future (Section V). These questions include: Are there existing regulatory or technical barriers to voluntary purchases of low-carbon fuels? Can customers work with utilities to procure low-carbon fuels; are producers able to interconnect projects without significant barriers to entry? Should the infrastructure and/or commodity costs of low-carbon fuels be socialized among all ratepayers, or borne solely by the large commercial and industrial (C&I) customers currently driving the market? Should regulated natural gas and/or electric utilities own and operate low-carbon fuel production? How should regulators consider the unique decarbonization potential of low-carbon fuels, particularly for hard-to-abate sectors, in decision-making? Is additional direction or clarity from state policymakers needed? What no-regrets approaches can help facilitate both near-term RNG development and long-term development of hydrogen and other zero-carbon fuels? We collectively wish to express our gratitude to the U.S. Department of Energy, Office of Fossil Energy and Carbon Management, for supporting this report and other technical assistance resources for state regulators on natural gas topics. State regulators operate under a variety of policy environments, and states have vastly different types of energy resources, infrastructure, and customers. While there is no optimal regulatory, policy, or technological solution that will be successful in every state, state regulators can benefit by exchanging lessons learned with their peers across the country. We look forward to continued engagement with our fellow commissioners, commission staff, NARUC, the U.S. Department of Energy, and other stakeholders to develop sound regulation in the public interest.

03 NATURAL GAS↗

Field Validation of Thermoelectric Generation System at Holcim Cement Plant in Alpena, Michigan

Executive Summary Project Background The Industrial Technology Validation (ITV) program aims to identify and demonstrate the performance of new, emerging, and underutilized energy-saving technologies in the industrial sector to help inform decisions to help accelerate their commercialization and deployment, as well as to help make industries more competitive. This ITV demonstration evaluated a thermoelectric generation (TEG) technology at a cement plant, aiming to reduce energy demand in the cement industry. A median cement plant consumes 5.73 million British thermal units per ton of clinker production (resulting in 0.838 metric tons of carbon dioxide [CO₂] emissions per ton of clinker) (Boyd and Zhang 2011, EPA 2021), equivalent to approximately 6.9 trillion British thermal units (TBtu) per year in energy consumption at a cement plant producing 3,300 tons of clinker per day.¹ Collaborating with Holcim, Advanced Thermovoltaic Systems (ATS) developed and deployed a pilot-scale thermoelectric power system to efficiently capture and convert waste heat to electricity. The system leverages the Seebeck effect to convert temperature differences on two sides of semiconductor cartridges into electrical power (ScienceDirect, n.d.). This generation is realized with minimal moving parts compared to existing waste-heat-to-generation solutions and allows capture from heat sources with temperatures as low as 150°C. This project aimed to validate a scalable solution applicable for capturing medium-temperature waste heat, including ambient losses from other high-temperature processes, and high-temperature sources less suitable for other waste-heat-to-power solutions. By recovering this otherwise wasted heat, this project intends to validate improvements to overall process efficiency through reduction in purchased electricity, thereby reducing operational costs while enhancing resiliency and competitiveness. Description and Scope This study evaluated the performance of a TEG system from ATS as a solution to convert waste heat into useful power at a Holcim cement plant in Alpena, Michigan. This plant is a fully integrated cement plant that has been operating since 1907. The facility operates continuously (24/7/365) with approximately 250 employees and five long dry kilns, yielding a total production capacity of 7,852 tons of cement per day (EPA 2023). Currently, the Alpena plant uses waste heat boilers to convert waste heat from the exhaust of each kiln into steam, which drives steam turbine generators. The ATS TEG is being evaluated for its potential to supplement the steam turbines by capturing the remaining lower grade heat. This technology is also being considered for other Holcim plants where steam turbines are not a viable option. ATS installed a pilot-scale TEG unit with an array of 582 individual thermoelectric semiconductor cartridges, of which 573 were operational. The cartridges are sandwiched between 48 hot plates and 49 cold plates. Each cartridge is designed to generate 20 watts (W) of gross power at a hot-side temperature of 240°C and cold-side temperature of 20°C. As such, the total gross generation capacity of the installed system is 11.5 kilowatts (kW) at design conditions. The system configuration for the evaluation was designed to prioritize convenience of installation and minimize disruption to production at the site, while ensuring that the heat required can be obtained for evaluating the TEG system at various operational conditions. To accomplish this, a portion of the steam supplied to Alpena’s steam turbine generation system was diverted to be used as the heat source for the TEG system, while water was supplied to the cold side of the system from nearby Lake Huron. This configuration was designed for the evaluation of the pilot-scale system to assess the performance at different conditions. A commercial-scale system will likely vary from the pilot system depending on typical configurations, including both scale and application. Future commercial applications of the ATS system would involve integrating the system into the exhaust from kiln preheaters, clinker coolers, or radiant heat capture from kiln shells for the heat source. For the cold source, a range of cooling solutions can be considered, including a mechanical cooling system, depending on the location and the application. To increase the generation capacity for commercial applications, the technology provider is working toward developing a commercial-scale TEG system, which would combine multiple TEG units (each similar in design to the pilot system) together. The scope of this evaluation includes the pilot-scale TEG system and all impacted equipment including pumps, controllers, and power handling equipment. Study Objectives The evaluation's goal was to assess the potential of the ATS TEG system to generate useful electrical power by capturing waste heat from cement production kilns. The objectives of this study are to evaluate and verify the following claims made by ATS regarding the pilot-scale system installed at the Holcim Alpena plant. The following design parameters and claims are also outlined in Table ES- 1 and Table ES- 2: • Gross Power: The thermoelectric system converts heat into power to create gross power, the total measured power generated by the system. The 573 active cartridge pilot-scale system is expected to generate 11.5 kW of gross power at the designed hot-side temperature of 240°C and cold-side temperature of 20°C. Power production is dependent on the temperature difference between the heat source (ultimately from the waste heat) and cold temperature supply source. • Net Power: The net power is the total usable power provided to the site by the TEG system after deducting parasitic power loads from the gross generated power. Supplementary equipment is required to operate the TEG system including pumps, controllers, and, in certain anticipated applications, mechanical cooling, which introduce parasitic loads to system operation. After deducting the parasitic loads from the gross power generation, ATS anticipates achieving a net power generation of 7.5 kW from the pilot-scale system. • Thermal Efficiency: The thermal efficiency is the percent of the total heat transferred to the TEG system that is converted to gross power. Historically, TEGs have a thermal efficiency of 2%–5% (DOE 2008). Prior industrial-scale TEG systems, such as the E1 TEG offered by Alphabet Energy, operated at an efficiency of 2.5% (Lamonica, 2014). ATS anticipates achieving an average efficiency of 4.8% or higher in converting heat energy to usable electricity. • Cartridge Performance: The TEG system comprises 573 active individual semiconductor cartridges, each of which generates a portion of the total power. Cartridge optimization and selection is an important design consideration for potential future TEG system design performance. Therefore, understanding the distribution of gross power and efficiency within the pilot system is vital to understanding what is achievable. At a design hot-side temperature of 240°C and cold-side temperature of 20°C, ATS anticipates a cartridge performance of 20 W of gross power per cartridge at an efficiency of 4.8% per cartridge. In addition to evaluating the claimed performance of the TEG pilot-scale unit, the study estimated the potential annual impacts of a scaled-up commercial system used to capture kiln waste heat over annual operations. The evaluation estimated the gross and net annual electric generation achievable by capturing heat from the two proposed tap-in points: the kiln exhaust and the clinker cooler exhaust; see Section 2.1 for details. Two use cases were examined: • Holcim Alpena: The Holcim Alpena site consists of long dry kilns with superheater boilers, which differs from the rest of Holcim’s cement plant portfolio and results in lower waste heat temperatures. The study estimates gross and net annual generation using the superheater boiler exhaust and clinker cooler exhaust, based on 2023 operational data. • Typical Installation: Common cement plants have preheater kilns with higher exhaust temperatures than Holcim Alpena across a range of production rates. The study estimates gross and net annual generation using the preheater exhaust and clinker cooler exhaust, with a sensitivity analysis to account for the typical range of preheater exhaust temperatures, clinker cooler exhaust temperatures, and clinker production rates. Methodology The evaluation methodology followed a measurement and verification (M&V) strategy based on the International Performance Measurement and Verification Protocol Option B through comprehensive measurements and analyses of the affected systems. Evaluation data was collected from March 9 to March 11, 2024, the test period of the pilot TEG system. During the test period, in coordination with the ITV team, the ATS team adjusted system operations to capture the range of variability expected for each of the variables pertinent to performance of the system. The methodology consisted of two parts: evaluating the performance of the pilot unit's TEG system and estimating the annual TEG impact in terms of gross and net power based on a given waste heat profile. First, the evaluation of the thermoelectric generation performance of the pilot unit relative to the claims was performed by analyzing the collected test data. Gross power of the pilot TEG system was directly measured. Net power was determined by deducting the measured parasitic power from the gross power. The gross power generation was compared to heat transferred to the system by the working fluid (which was heated by steam generated from the kiln waste heat) to calculate the thermal efficiency achieved by the system. Performance of individual semiconductor cartridges within the pilot array was also assessed in terms of measured gross cartridge power and calculated cartridge thermal efficiency. The second part of the evaluation estimated the annual TEG impacts in terms of gross power and net power (calculated from the difference between gross power and parasitic power). This analysis comprised development of mathematical regression models for gross power and parasitic power, with assessment of each model’s goodness-of-fit characteristics to ensure satisfaction of statistical requirements. The models predicted the gross power generation, the parasitic load based on the temperature difference between the hot working fluid and the cold-side fluid (cold water from Lake Huron) entering the system, the volumetric flow rate of the cold-side fluid at the inlet, and the volumetric flow rate of the hot working fluid at the inlet. The annual impact analysis considered a theoretical commercial-scale system sized to capture the available waste heat at a cement plant, consisting of linked pilot-scale units that receive heat from a theoretical gas-to-working-fluid heat exchanger. To estimate annual impacts at the Alpena plant, the gross power and parasitic power regression models were applied to the arrays in the theoretical commercial-scale system. The heat supplied to the unit was calculated based on the kiln run time, annual production, kiln exhaust waste heat, and clinker cooler waste heat derived from 2023 Holcim Alpena kiln operational data. Net power impacts were calculated by deducting the resulting parasitic power from the estimated gross power. Inputs for the model were generated from a combination of hourly data, assumed design considerations for TEG system scale-up from the pilot-scale unit, and assumptions regarding TEG system operations. This analysis was then used as the basis for estimating annual impacts of typical TEG installation at cement plants, by applying sensitivity analyses to key kiln operational characteristics including kiln preheater exhaust temperatures, cooler clinker exhaust temperatures, and plant daily production rates across a range of expected values. Project Results/Findings Table ES- 2 and Table ES- 2 provide a summary of the operating conditions and evaluation results compared to the stated claims from the technology provider. Key takeaways include: • Gross Power: The peak gross power achieved during the testing period was 10.0 kW, compared to the 11.5 kW expected for 573 active cartridges. The claimed gross power was associated with a target hot side of 240°C; however, the system only received a maximum hot-side mean plate temperature of 212°C during the testing period. • Net Power: The pilot-scale unit exceeded the claims for net power, achieving a peak of 7.7 kW net compared to a claim of 7.5 kW. One factor contributing to the higher achieved net power is the relatively high water pressure available through Lake Huron. The pilot TEG system did not require cold-side pumps during the test, whereas most installations would. This reduced the parasitic loads on the system, ultimately contributing to higher net power relative to the gross power. • Thermal Efficiency: The pilot-scale unit outperformed the claimed efficiency, achieving a peak system efficiency of 5.0% thermal efficiency compared to the stated 4.8%. • Cartridge Performance: To compare cartridge performance against claims, the study focused on the third day of testing, which aimed for conditions closest to the design specifications, with a hot side of 240°C and cold-side exit temperature of 6.4°–30°C. On this day, the mean gross power observed in the cartridges within the TEG array was 18.1 W/cartridge, and the peak performance was 34.7 W/cartridge. The estimated mean cartridge efficiency was 5.2%, and the estimated efficiency at peak gross cartridge power was 10%. The regression models developed for gross power generation and parasitic loads were used to estimate the generation impact for given heat input to the TEG from the working fluid (captured from the waste heat) and from the cold loop (Lake Huron) on an hourly basis for a year of operation. Based on this analysis, installation of a commercial-scale TEG system at the Holcim cement plant in Alpena, Michigan, with a waste heat exchanger of 0.85 effectiveness, would generate up to 391 kW of net power, translating to between 920,000 and 1,800,000 kilowatt-hours (kWh) in net electricity per year. Based on typical grid emissions for Alpena, this would avoid estimated net emissions by 752 metric tons of CO₂ annually.² The sensitivity analysis estimated that typical TEG system installations at cement plants could generate an average of 56–1,040 kW of net power, or between 488,000 and 9,110,000 kWh of net energy. This generation potential is most significantly affected by plant production rates and also influenced by preheater and clinker cooler exhaust temperatures. Applying the national average emission rate, typical commercial-scale installations at Holcim plants are projected to avoid between 182 and 3,401 metric tons of CO₂ annually per site. Table ES- 3 shows a summary of the estimated annual impacts.³ While parasitic loads are significant and vary by application, this analysis assumed the use of heating loop pumps and access to Lake Huron as a cold sink. This setup assumed no need for cooling loop pumps due to the available water pressure at the test site. Applications that require cooling towers or additional equipment are likely to experience higher parasitic loads. Therefore, the study’s estimates are most applicable to scenarios with similar parasitic load configurations—namely, access to a high-pressure cold sink. Applicability to other locations may be limited, as differing conditions could necessitate additional pumps and cooling systems, potentially impacting performance significantly.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗