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Title: Feasibility of a small central cogenerated energy facility. Energy management memorandum TM-82-6A

Technical Report ·
OSTI ID:6867018

The thermal-economic feasibility of a small cogenerated energy facility designed to serve several industries in the Stockyards area was investigated. Cogeneration options included two dual-fuel diesels and two gas turbines, all with waste heat boilers, and five fired boilers. Fuels included natural gas, and for the fired-boiler cases, also low-sulphur coal and municipal refuse. For coal and refuse, the option of steam only without cogeneration was also assessed. The fired-boiler cogeneration systems employed back-pressure steam turbines. The refuse-fired cases utilized modular incinerators. The options provided for a wide range of steam and electrical capacities, 8500 to 52,400 lbm/hr and 0 to 9.9 MW (e), respectively. Deficient steam was assumed generated independently in existing equipment. Excess electrical power over that which could be displaced was assumed sold to Commonwealth Edison Company under PURPA (Public Utility Regulatory Policies Act). The facility was assumed operated by a mutually owned corporation formed by the cogenerated power users. The economic analysis was predicated on currently applicable energy-investment tax credits and accelerated depreciation for a January 1985 startup date. Results indicated that the best alternative was the modular-incinerator cogeneration system. However, the rate of return on investment (ROI) was found to be only 12.1% relative to general inflation and after taxes, whereas it was felt at least 18% is needed for a clearly viable system. If all of the alternatives are considered to operate at full available capacity in an expanded system, then the same refuse plant is again most optimal. Further, the ROI is increased to 15.6%. While this investment is considered marginal, alternative financing employing leveraging can make the venture more attractive.

Research Organization:
Illinois Inst. of Tech., Chicago (USA). Dept. of Mechanical Engineering
DOE Contract Number:
FG02-80CS40337
OSTI ID:
6867018
Report Number(s):
DOE/CS/40337-6; ON: DE83005083
Resource Relation:
Other Information: Portions of document are illegible
Country of Publication:
United States
Language:
English