Fall 2004 

Edition 

In this Issue: 

Page 2: 

B 

Green Power Purchases 

and Generation: Staples, 

Inc. and FPL Group 

Page 5: 

Assistance Meeting Your 

Green Power Goals: 

EPA’s Green Power 

Partnership and WRI’s 

Green Power Market 

D 

Page 7: 

Encouraging the Use of 

Combined Heat and 

Power: and 

NiSource 

Page 10: 

Demonstrating the Benefits 

of CHP: 

Partnership 

Page 12: 

Announce New GHG 

Reduction Targets 

Leaders Partners: 

Johnson Controls, Inc. 

Noble Corporation 

Oracle Corporation 

Featuring Clean Energy 

i 

This editi 

. 

Energy? 

Both 

i 

i 

l 

. 

reaking Barriers to 

evelopment Group 

Caterpillar 

EPA’s CHP 

Climate Leaders Partners 

Welcome New Climate 

This edition of Carbon Copy features act ons Climate Leaders Partners are taking 

to reduce GHG emissions through the use of green power and combined heat and 

power systems. on also highlights a few of EPA’s Clean Energy 

Programs as well as the World Resources Institute’s Green Power Market 

Development Group. One of the EPA’s clean energy programs, the Combined 

Heat and Power Partnership works with industry, states and local governments, 

universities, and other institutional users to facilitate the development of efficient 

combined heat and power projects. Another one of the EPA’s clean energy 

programs, the Green Power Partnership, enlists commercial, nonprofit, and public 

organizations to purchase green power as a portion of their electricity needs. 

Climate Leaders Partners have access to many of the tools and services provided 

by these programs. More information on EPA ‘s Clean Energy resources can be 

found on the web at www.epa.gov/cleanenergy 

What do Climate Leaders Partners Need to Know about Clean 

Clean energy plays an important role in reducing GHG emissions. The purchase of 

green power and the use of CHP systems can be a very effective approach to 

achieving GHG reductions. Depending on their electricity market, consumers may 

have the choice to buy green power directly from a supplier, to participate in 

“green pricing” programs, or to buy Renewable Energy Certificates (RECs). 

of these options can provide a company with an innovative approach to meeting a 

GHG reduction target. Another opportun ty to achieve GHG reductions is through 

the installation of CHP systems. In addit on to providing environmental benefits, 

these systems also increase fuel efficiency and enhance electricity reliability. 

Protocols on how Climate Leaders Partners measure GHG benefits from green 

power and RECs are under development. Climate Leaders Partners should 

consult the Climate Leaders GHG Inventory Protocol Guidance on Direct 

Emissions from Stationary Combustion Sources as well as the Guidance on 

Indirect Emissions from Purchases/Sa es of Electricity/Steam for methods on 

estimating their emissions from CHP systems. The protocols are available on our 

website, www.epa.gov/climateleaders 

Carbon Copy 1 

Breaking Barriers to Green 

Power Purchases and 

Generation 

Climate Leaders Partners Staples and FPL 

Group demonstrate how to take advantage 

of both sides of the Green Power Market: 

Demand and Supply. Staples demonstrates 

how an innovative use of Renewable Energy 

Certificate (RECs) and solar power can 

meet a renewable energy goal. FPL 

demonstrates a leading utility’s commitment 

to clean energy production. 

Developing an Integrated 

Renewable Energy Strategy 

Staples, Inc. invented the office superstore 

concept in 1986 

and today is the 

world’s largest 

office products 

retailer. With 

60,000 associates, the company is 

committed to making it easy to buy a wide 

range of office products, including supplies, 

technology, furniture, and business services. 

With 2003 sales of $13 billion, Staples 

serves consumers and businesses ranging 

from home-based businesses to Fortune 

500 companies in the US, Belgium, Canada, 

France, Germany, Italy, the Netherlands, 

Portugal, Spain, Sweden, and the United 

Kingdom. Headquartered outside of Boston, 

Staples operates approximately 1,600 office 

superstores and also serves its customers 

through mail order catalog, e-commerce and 

contract businesses. More company 

information is available at www.staples.com 

Staples joined Climate Leaders in 2003. 

Their commitment to reduce their 

environmental impact is evidenced by their 

four cornerstones of environmental 

commitment: 

x Purchase and promotion of products 

containing post consumer recycled 

materials 

x Recycling initiatives 

x Energy conservation and renewable 

power procurement 

x Environmental education for 

associates and customers 

To achieve their renewable power 

procurement goal, Staples pursued two 

innovative approaches, the purchase of 

Renewable Energy Certificates (RECs), and 

onsite solar energy generation. 

Renewable Energy Certificates 

Staples initially considered a traditional 

renewable power purchase from a utility to 

increase their use of renewables from less 

than 2% to 5% in 2003. However, 

challenges such as administrative 

complexities, high transaction costs, lack of 

product options and competition in many 

markets, inability to aggregate total load and 

leverage purchase, and dealing with over 

200 utilities/ESCOs led Staples to take a 

different approach. 

Staples investigated RECs as an alternative 

option. RECs represent the renewable 

attributes of a specific quantity of renewable 

energy. After evaluating various renewable 

energy options, Staples decided that a REC 

purchase was simpler than a direct 

renewable energy purchase, while providing 

the same environmental benefits. Through 

their involvement with the World Resources 

Institute’s Green Power Market 

Development Group, Staples purchased 46 

million kilowatt hours per year of RECs, 

becoming part of the largest REC deal in the 

United States. This purchase allowed 

Staples to double their 2003 goal, and 

renewable power now accounts for ten 

percent of their total U.S. power 

requirements. The RECs purchased by 

Staples are generated by wind, biomass and 

landfill gas resources. 

Carbon Copy 2 
Staples’ purchase of 46 million kilowatt 

hours per year is equivalent to the 

annual power consumption of more 

than 4,000 homes. 

Staples derived a number of benefits from 

the REC purchase, including: 

x Lower cost due to leveraged pricing 

through aggregated loads and more 

open competition 

x Greater variety of renewable options 

x Simplified transactions – one contract 

and one bill, with no change in utility 

provider vs. potentially 200+ different 

contracts, bills, and renewal dates 

x Exceeding corporate GHG targets 

Staples estimates that their REC purchase 

avoids the release of approximately 34 

million pounds of the greenhouse gas 

carbon dioxide into the atmosphere per 

year, relative to national average power 

plant emissions, which is equivalent to 

avoiding the emissions of more than 2,800 

cars per year. 

This purchase supports Staples’ 

environmental commitments and corporate 

social responsibility goals, reduces the 

company’s corporate GHG footprint and 

impact on climate change, reduces 

operating expenses associated with 

purchased power, and provides Staples with 

a competitive advantage. 

Solar Services Model 

Staples’ historic view of building and owning 

onsite solar energy was that it had a high 

initial cost, poor return on investment, and 

other technologies and strategies could 

generate similar GHG benefits and better 

rates of return. As an alternative to this 

option, SunEdison, a local utility, proposed 

to Staples the “Solar Services Model.” In 

the solar services model Staples would act 

as a "host" for the PV system, which would 

be owned and operated by SunEdison. 

Staples buys the distributed power 

generated off of the system via a long term 

purchased power agreement at or below the 

bundled price off of the grid. The solar 

services model involves 4 different entities: 

Staples, BP Solar, Socially Responsible 

Investors and SunEdison. BP Solar provides 

the technical expertise and product for the 

installation, the investors have an appetite 

for the accelerated depreciation and tax 

benefits of owning the system, and 

SunEdison facilitates the agreement. 

Staples cost effectively added solar to


their portfolio 


This approach allows Staples to costeffectively add solar to their portfolio. 

Staples also benefits by using the solar 

portion of their load as a hedge against 

future fuel surcharges. Further, Staples 

derives load shedding benefits from a facility 

which is already very energy efficient, and 

saves money. Finally, the company can 

claim the GHG emissions offsets associated 

with that portion of the load being generated 

from solar. 

The risk to parties is minimized as a result of 

this agreement. Staples can assign the 

rights to the purchased power agreement to 

a future tenant or landlord and this mitigates 

risk to Staples. BP Solar guarantees that a 

certain number of kilowatt-hours are 

generated through their array, and if there is 

a shortfall, BP Solar pays their investors for 

the difference. The solar services model 

provides a cost per kWh at or below cost of 

power off the grid, and the opportunity for 

Staples to integrate solar into their overall 

renewable energy strategy at an affordable 

cost. 

Providing a Green Power Supply 

Climate Leaders Partner 

FPL Group is the nation’s 

largest developer, owner, 

and operator of windCarbon Copy 3 
powered generating plants, and one of the 

largest providers of electricity-related 

services in the country. 

FPL Group, Inc. is a nationally known 

organization focused on energy-related 

products and services. The Company 

includes Florida Power & Light Company 

(FPL), the largest electricity provider in 

Florida, and FPL Energy, LLC, the 

unregulated arm of FPL Group providing 

electric generation in 26 states. As one of 

the nation’s largest providers of electricityrelated services, FPL Group is committed to 

meeting the demand for cost-effective 

production of electric power while 

sustaining, protecting and enhancing the 

environment. In 2002 FPL Group ranked first 

out of 28 major electric utilities surveyed in 

an environmental assessment conducted by 

Innovest, an independent advisory group. 

FPL also received a 2001 Program 

Champion Award for their reuse activities 

from the Environmental Protection Agency’s 

WasteWise program, the third time they 

have received this honor. 

FPL Energy is the nation’s largest 

developer, owner, and operator of 

wind-powered generating plants, 

producing approximately 40 percent of 

all wind-generated energy in the U.S. 

FPL Group is meeting future energy needs 

through the construction of clean generating 

assets including natural gas-fired, simple 

and combined cycle generation, and 

renewable generation. FPL Energy is 

currently a major wholesale power 

generator, operating plants fueled by wind, 

hydro, natural gas, solar, and biomass. It is 

the nation’s largest developer, owner, and 

operator of wind-powered generating plants, 

producing approximately 40 percent of all 

wind-generated energy in the country. FPL 

Energy wind generation includes 43 projects 

generating over 2700 net-MW of wind 

across 15 states, including the largest wind 

farm in the west: the Stateline Energy 

Center on the Oregon-Washington border. 

FPL Energy’s non-emitting generation 

assets also include 370 MW of hydroelectric 

power and the operation of the two largest 

solar plants in the world, the Solar Electric 

Generating Stations in California’s Mojave 

Desert. 

Over the last two decades, DSM 

projects have enabled FPL to avoid the 

construction of six new power plants 

Other efforts utilized by FPL Group to 

reduce GHG emissions include introducing a 

green power program for FPL customers 

and expanding Demand Side Management 

(DSM) projects that improve the energy 

efficiency of FPL customers. The programs 

include a Web-based home energy survey 

available at www.fpl.com to help customers 

understand how they are using power and 

find ways to maximize energy efficiency in 

their homes. This encourages customers — 

often via rebates — to adopt high-efficiency 

heating, ventilation, air conditioning, lighting, 

window treatments and roof and ceiling 

insulation. FPL also offers a voluntary “OnCall” program where customers elect to 

have FPL briefly interrupt some of their 

electric appliances for short periods during 

times of high electricity demand in exchange 

for credits on their bill. 

Over the last two decades, DSM projects 

have enabled FPL to avoid the construction 

of six new power plants in Florida. Internal 

fuel switching and DSM efficiency measures 

are also important in the reduction of 

greenhouse gas (GHG) emissions. Through 

continued efficiency improvements, the 

utility has reduced its operating and 

maintenance costs per kWh by 40 percent 

since 1990. FPL Group presents a fine 

example of how an investment in green 

power supply is economically beneficial, 

both to the company and its customers. 

More information about FPL can be found 

on the web at www.fpl.com. 

Carbon Copy 4 
Assistance Meeting Green 

Power Goals: EPA’s Green 

Power Partnership and WRI’s 

Green Power Market 

Development Group 

EPA’s Green Power Partnership 

In 2001 EPA launched the Green Power 

Partnership to assist and promote 

organizations that 

commit to using 

green power for a 

portion of their 

electricity needs. 

The innovative, collaborative nature of this 

voluntary program gives interested 

organizations access to EPA resources that 

highlight the value and reduce the 

transaction costs of green power. 

Commercial, industrial, and public sector 

organizations interested in becoming Green 

Power Partners pledge to procure an 

amount of renewable energy proportional to 

their annual electricity use. Partners may 

use any combination of direct green power 

purchase, renewable energy certificates or 

on-site generation to fulfill their obligation. 

Benefits of the Partnership 

The Green Power Partnership aims to 

expand awareness and use of renewable 

energy by providing information, support, 

and recognition for those organizations 

making green power a significant part of 

their energy choice. Green Power Partners 

enjoy the following benefits and services: 

Information & Support—A full range of 

program support services and materials, 

including technical information on buying 

green power, case studies, and a 

purchasing toolkit. Partners also have 

access to current market information, 

sample procurement RFPs, and guidance 

on product comparison. 

Peer Exchange—A network of green power 

providers, other Green Power Partners, and 

related local and national environmental 

organizations is at partners’ disposal. 

Public Recognition—National recognition, 

through EPA awards and press 

announcements, is provided. EPA also 

works with partners to customize their 

communications plans and coordinate local 

and regional promotions. A link from the 

Green Power Partnership web site to your 

organization is provided as well as EPA web 

site recognition as a Partner and 

collaborative environmental leader. 

Partnership Logo—Partners have access 

to the Green Power Partnership logo for use 

in advertisements and other consumer and 

media materials. 

How to Join 

Each Partner Commits to: 

x Signing a one-page Letter of Intent 

x Choosing a green power supplier, 

green-tag marketer or on-site 

generation option 

x Procuring/generating an amount of 

renewable energy that is proportional 

to annual electricity use 

x Reviewing and reporting their green 

power commitment annually to EPA 

Commitment Levels 

Commitments are proportional to a Partner’s 

electricity consumption. The chart below 

shows the minimum required Partner 

commitment to green power. In addition, half 

of the minimum commitment must be met 

through new renewable energy resources. 

Annual Electricity 

Usage (kWh) 

>100,000,000 

Green Power Partnership 

Minimum Commitment 

2% 

< 100,000,000 3% 

< 10,000,000 6% 

< 1,000,000 10% 

< 100,000 15% 

Carbon Copy 5 
Interested in Learning More? 

For more information about the Green 

Power Partnership, visit the Web site at 

www.epa.gov/greenpower or call Kurt 

Johnson at (202) 343-9231 or Matt Clouse 

at (202) 343-9004. 

World Resources Institute’s Green 

Power Market Development Group 

Convened in 2000 by 

the World Resources 

Institute (WRI), the 

Green Power Market 

Development Group is a 

unique commercial and 

industrial partnership 

dedicated to building 

corporate markets for green power. The 

Group is transforming energy markets to 

enable corporate buyers to diversify their 

energy portfolios with green power and 

reduce their impact on climate change. The 

Group seeks to develop 1,000 megawatts of 

new, cost-competitive green power by 2010 

– enough energy to power 750,000 homes. 

The Group corporate partners are Alcoa 

Inc., Cargill Dow LLC, Delphi Corporation, 

The Dow Chemical Company, DuPont, 

FedEx Kinko's, General Motors, IBM, 

Interface, Johnson & Johnson, Pitney 

Bowes, and Staples. 

Activities 

The Group is pursuing several types of 

green power opportunities: electricity and 

heat from renewable resources, and “clean” 

energy technologies such as hydrogen fuel 

cells. The Group promotes the long-term 

viability of the green power market by: 

i.	 Increasing the attractiveness of 

green power to corporate energy 

users. The Group is reducing the cost 

of green power by aggregating its 

purchasing power and by developing 

innovative purchasing models and 

products. 

ii.	 Increasing corporate buyer 

awareness & capacity. The Group is 

increasing corporate energy 

managers’ understanding of green 

power technologies, economics, and 

markets in order to facilitate green 

power purchases. It has developed 

analytical tools such as the Green 

Power Analysis Tool and shares 

lessons learned through its Corporate 

Guide to Green Power Markets series. 

iii.	 Communicating policies that reduce 

market barriers to renewable 

energy. Based on experiences in the 

marketplace, Group members have 

raised awareness of public policies 

that reduce the barriers to green 

power. Activities include giving Hill 

briefings and publishing policy papers. 

iv.	 Replicating Group successes. The 

Group is sharing strategies & lessons 

learned with large energy users 

outside of the Group including other 

companies, large building owners, and 

government agencies. It also shares 

tools for completing green power 

purchases including draft contract 

language and guidelines for writing 

request for proposals (RFPs). 

Benefits of partnership 

The collaboration provides many benefits to 

Group partners including: 

x Accelerated process of learning about 

corporate green power markets; 

x Analyses of green power products, 

suppliers, projects, and incentives; 

x Access to a network of energy and 

environmental managers experienced 

with green power; 

x Shared strategies and lessons 

learned; 

x Opportunities to aggregate purchases 

and thereby reduce costs; and 

x Public recognition for green power 

purchases and investments. 

Carbon Copy 6 
Successes to date 

To date, all twelve Group members and WRI 

have participated in green power projects 

and purchases totaling 123 MW. These 

purchases have occurred at 250 facilities 

across 22 states and the District of 

Columbia. 

The Group and individual members have 

emerged as top corporate buyers for a 

number of renewable energy products. For 

instance, in September 2003, the Group 

completed the largest aggregate corporate 

purchase of renewable energy certificates 

ever in the United States. Climate Leaders 

Partner Johnson & Johnson is one of the top 

corporate users of wind and solar power. 

GM, also a Climate Leaders Partner, has 

become the largest non-utility corporate end 

user of landfill gas for thermal energy in the 

country. Furthermore, Dow and GM are 

collaborating in the largest hydrogen fuel cell 

deal in history. 

Working together, the Group is fulfilling its 

vision of overcoming key economic, market, 

and policy barriers facing green power and 

is charting a course for a clean energy future 

in the U.S. 

For more information on the Green Power 

Market Development Group, please visit its 

web site at www.thegreenpowergroup.org or 

contact: 

Jennifer Layke 

Director, Business Engagement 

World Resources Institute 

202-729-7657 

jennifer@wri.org 

Craig Hanson 

Senior Associate 

World Resources Institute 

202-729-7624 

chanson@wri.org 

Benefits of Combined Heat 

and Power 

Climate Leaders Partners Caterpillar and 

NiSource are actively implementing 

Combined Heat and Power for its costeffectiveness and environmental benefits. 

Seizing the Opportunity for Cost

Savings and Environmental

Benefits 

Caterpillar joined Climate Leaders in 2003. 

For more than 75 years, Caterpillar Inc. has 

been building the world's infrastructure, and 

in partnership with Caterpillar dealers, is 

striving to drive positive and sustainable 

change in every continent. A Fortune 100 

company, Caterpillar is the world's leading 

manufacturer of construction and mining 

equipment, diesel and natural gas engines, 

and industrial gas turbines. The company is 

a technology leader in construction, 

transportation, mining, forestry, energy, 

logistics, electronics, financing, and electric 

power generation. Caterpillar invested more 

than $665 million in research and 

technology in 2003 and the company's 

employees have earned more than 2,400 

patents in the past five years. Caterpillar 

products and components are manufactured 

in 49 U.S. facilities and in 58 other locations 

around the globe. 

In addition to being a Climate Leaders 

Partner, Caterpillar has a long-standing 

commitment to protecting and preserving the 

environment. The company plays an active 

role in organizations including the Global 

Mining Initiative, Tropical Forest Foundation, 

World Business Council for Sustainable 

Development and others. But Caterpillar 

isn’t just talking about the environment- it is 

also taking action at its own facilities. 

Caterpillar’s Aurora, Illinois plant is a 350­

acre site that houses Caterpillar’s Wheel 

Loaders & Excavators Division. The 2700­

Carbon Copy 7 
employee facility started operations in 1958 

and covers over 4 million square feet of 

manufacturing area. The plant was an 

excellent candidate for cogeneration, or 

combined heat and power (CHP), for a 

number of reasons, including: 

x Aging coal boilers, baghouse, and coal 

elevators 

x Obsolete parts and controls 

x Inefficient and unreliable 

x Significant expenses needed ($6-9 

million) to upgrade coal boilers 

In addition to the aging physical plant, 

electricity deregulation in Illinois offered the 

plant a choice: stay with the incumbent 

utility, switch to an alternative retail electric 

supplier, or generate some or all of its own 

power. If the plant switched to an alternative 

supplier, it would have been assessed a 

Customer Transition Charge (CTC) of up to 

two cents per kilowatt-hour by its utility to 

recover stranded costs. Self-generation, 

however, avoided the higher cost of 

electricity, the CTC, as well as unplanned 

outages and other volatility. It was clearly 

the best choice. 

A turnkey installation was performed by 

Caterpillar subsidiary Solar Turbines 

Incorporated, which included engineering, 

procurement, construction, project 

management, and commissioning. The 

main installation consists of two Solar 

Taurus TM 70 Gas Turbine generator sets 

and two Deltak Heat Recovery Steam 

Generators. The Taurus gas turbine 

generator sets have the following 

specifications: 

x ISO rated at 7.5 MW each for a total of 

15 MW 

x Dual fuel capacity 

x SoLoNOx (Solar’s low emission, dry 

combustion technology) 

x Evaporative coolers option 

The Deltak boilers provide a total of almost 

300,000 lbs/hr of steam to supplement 

60,000 lbs/hr of free steam generated by the 

turbines. The rest of the installation 

included general plant upgrades, including 

three Enerflex gas compressors, new 

breakers, switchgear and protective 

relaying, synchronization panel and 

distribution power meters, and upgraded 

controls on existing gas/oil fired boilers. 

Caterpillar projects energy savings of


$2 million per year as a result of the 


CHP installation 


As a result of the installation, Caterpillar’s 

Aurora facility has realized many benefits. 

The plant now has state-of-the art CHP 

technology, higher overall efficiency, the 

latest air pollution controls, and remote 

monitoring and diagnostics. Caterpillar 

projects energy savings of $2 million per 

year as a result, in addition to avoiding the 

CTC and eliminating unplanned outages. 

Finally, from 2000-2002, the plant reduced 

air emissions significantly: NOx by 47 

percent, SOx by 72 percent, and CO2 by 72 

percent. 

Caterpillar saw the opportunity to not only 

upgrade plant technology, but also to realize 

cost savings and environmental benefits. 

For more information about Caterpillar, visit 

www.cat.com. For more information about 

Solar Turbines, visit www.solarturbines.com. 

CHP in Smaller Applications 

NiSource, Inc, a Fortune 500 holding 

company with headquarters in Merrillville 

Ind., joined Climate Leaders in 2004. 

NiSource’s core operating companies 

engage in natural gas transmission, storage 

and distribution, as well as electric 

generation, transmission and distribution. 

NiSource operating companies deliver 

energy to 3.7 million customers located 

within the high-demand energy corridor 

stretching from the Gulf Coast through the 

Midwest to New England. 

Carbon Copy 8 
Thanks to NiSource Energy Technologies 

(NET), a subsidiary of NiSource Inc., 

combined heat and power systems are 

showing up in previously unlikely locations. 

NET markets and sells distributed power 

generation systems to commercial and small 

industrial customers. These small, on-site 

generating systems enhance power quality, 

improve reliability and operate with or 

without the local electric grid. The company 

is focused on targeting early adopters of 

distributed technology. Below we profile 

NET’s combined heat and power 

installations at a hotel, a YMCA, and a steel 

processing center. 

Hilton Garden Inn, Chesterton, Indiana 

NiSource Energy Technologies installed a 

combined heat and power distributed 

generation system at the Hilton Garden Inn 

in Chesterton, Indiana. The installation of 

this advanced technology is the first step of 

a larger Department of Energy contract to 

develop a modular-packaged Integrated 

Energy System (IES) for the hotel/motel 

industry. 

The IES, which generates electricity for the 

hotel, initially includes three 30-kilowatt 

microturbines, heat recovery heat 

exchangers, and an advanced control 

system. The waste heat is utilized to 

supplement heat for the water supply, spa, 

and swimming pool, as well as provide 

space heat for the hotel’s common areas. 

The microturbines, housed in a separate 

building on the hotel’s property, currently 

generate approximately half of the four-story 

hotel’s average electrical load requirement. 

Key Benefits: 

x Increased reliability for a portion of the 

Hilton’s critical systems, with back up 

generation. 

x Environmental advantages. 

x Energy efficiency through the use of 

by-product heat to supplement the 

building’s hot water and heating 

requirements, which reduces the 

amount of fuel needed and energy 

wasted. 

x Energy management flexibility, since 

the customer can often generate a 

portion of their own electricity needs. 

x More predictable power costs, since 

distributed generation systems can 

reduce exposure to the volatile power 

market. 

Breeden YMCA, Angola, Indiana 

In December of 2002, a 120 kW 

microturbine-based combined heat and 

power (CHP) system went into full service at 

the Breeden YMCA facility located in 

Angola, Indiana. The CHP system includes 

two Capstone® C60 microturbines, one 

Unifin heat exchanger, and a novel thermal 

priority control scheme that has assisted in 

reaching system efficiencies of 64.7%. 

During normal operation, the system 

operates in sync with the electric grid. In 

2003, the 120 kW CHP system provided 

629,820 kWh of electricity, or 45.8% of the 

total electricity used by the YMCA. Should 

the utility grid experience a power outage, 

the microturbine CHP system will 

automatically disconnect from the grid, 

operate in stand-alone mode and power the 

critical loads in the building. As a result of 

their high electric service system reliability, 

the Breeden YMCA now serves as a 

disaster relief center – a facility open to 

serve the public even during utility power 

outages. Another benefit of the system is the 

hot exhaust from the microturbines, which 

passes through a heat exchanger that 

transfers up to 750,000 btu/hr of thermal 

energy from the exhaust gas to the 

building’s hot water heating loop (190 o

F hot 

water). The heat exchanger is piped in prior 

to the existing boilers, making the recycled 

heat from the CHP system the first priority 

heat source. The existing facility boilers 

only have to operate on extremely cold days 

when the building requires more heat than is 

available from the microturbines. An added 

Carbon Copy 9 
benefit of this system is that during the 

summer months, the facility boilers do not 

turn on, which keeps the mechanical room 

from overheating – a problem experienced 

prior to installing the CHP system. 

Key Benefits 

x Provides increased electric reliability. 

x YMCA now serves as a disaster relief 

center. 

x Reduces the amount of atmospheric 

pollutants (NOX) per kWh produced by 

90%, compared to the local coal-fired 

power plant. 

x Provides a real-time educational tool 

for the Tri-State University in the area 

of alternative energy sources. 

x Reduces both energy consumption 

and total energy costs. 

x Allows the YMCA to stabilize energy 

costs and minimize exposure to 

energy price fluctuations. 

Stripco Inc. Steel Processing Center, 

Osceola, Indiana 

NiSource Energy Technologies installed a 

combined heat and power (CHP) distributed 

generation system at Stripco located in 

Osceola, Indiana. The CHP system uses 

one 60 kW microturbine and heat 

exchangers that use natural gas to generate 

electricity to the building. In addition, the 

system’s by-product heat supplements the 

heat for various work stations within the 

plant and the office building. The recovered 

heat energy from the micro turbine displaces 

a large portion of the current electrical 

heating requirements needed to maintain 

the mill oil temperature. It can provide 

limited power back-up to administration 

building in the event of an extended 

electrical grid power failure. 

Key Benefits: 

x Reduced annual energy costs by 

approximately $60,000. 

x Provides additional environmental 


benefits for Stripco Inc. 


x Creates improved gas load profile, 


allowing for increased gas price 


options. 


x Promotes innovation and cross 

community educational opportunities 

by being the early adopter of new 

state-of-the-art technology. 

x Produces a high heat utilization factor 

x Provides back-up power for the plant 

and administration building during an 

outage. 

x Eliminates lost sales due to outage 

down time. 

x Improves worker productivity and plant 

safety. 

x Improves final product quality due to 

ability to raise the oil temperature on a 

consistent basis. 

These projects demonstrate the numerous 

benefits of installing CHP, not just for large 

industrial companies, but also for smaller 

facilities. These systems provide not only 

cost and energy savings, but also 

environmental benefits, power reliability and 

other community benefits. For more 

information about NiSource, visit 

www.nisource.com. 

Encouraging cost-effective CHP 

Projects: the EPA’s CHP 

Partnership 

CHP offers energy 

and environmental 

benefits over 

electric-only 

systems in both central power generation 

and distributed generation applications. CHP 

achieves increased efficiency in fuel use, 

reduced emissions of air pollutants and 

greenhouse gases, and enhanced reliability 

of the electrical grid. CHP can be used with 

a variety of technologies for industrial, 

Carbon Copy 10 
commercial and even residential 

applications. 

What is Combined Heat and Power? 

CHP is the sequential or simultaneous 

generation of two different forms of useful 

energy – mechanical and thermal - from a 

single primary energy source in a single, 

integrated system. CHP systems usually 

consist of a prime mover, a generator, a 

heat recovery system, and electrical 

interconnections configured into an 

integrated whole. The prime mover is any 

engine used to convert fuel to shaft power or 

mechanical energy. The generator converts 

the mechanical energy into electricity. The 

heat recovery system captures and converts 

the energy in the prime mover’s exhaust into 

useful thermal energy. The mechanical 

energy from the prime mover is most often 

used to drive a generator for producing 

electricity, but may also drive rotating 

equipment such as compressors, pumps 

and fans. The thermal energy from the heat 

recovery system can be used either for 

direct process applications or indirectly to 

produce steam, hot water, hot air for drying 

or chilled water for process cooling. 

By combining the electrical and thermal 

energy generation in one process, CHP 

systems can achieve overall effective 

electrical efficiencies of 50-70% as 

compared with an average 33% efficiency 

for simple electric generation. CHP requires 

at least 35% less fuel than traditional 

electricity and steam production. 

About the Partnership 

The CHP Partnership is a voluntary program 

designed to foster cost-effective CHP 

projects. Through the Partnership, EPA 

engages the CHP industry, state and local 

governments, and other stakeholders in 

cooperative relationships to expand the use 

of CHP. 

What CHP Tools and Services Does EPA 

Offer? 

EPA is developing tools and services 

designed to facilitate Partners' development 

of CHP projects. The Partnership's tools and 

services fall into five general categories: 

x Market development and 

enhancement. 

x Public recognition of Partners. 

x Outreach and educational tools and 

services. 

x Technical assistance to aid CHP 

project development. 

x Assistance with regulatory policies and 

permitting. 

To assess whether one of your facilities is a 

good candidate for CHP, consider the 

following questions: 

1.	 Do you pay more than $.06/ kWh on 

average for electricity (including 

generation, transmission and 

distribution)? 

2.	 Are you concerned about the impact of 

utility costs on your business or future 

rate increases? 

3.	 Is your facility located in a deregulated 

electricity market? 

4.	 Are you concerned about black-outs? Is 

there a substantial financial impact to 

your business if the power goes out for 

1 hour? For 5 minutes? 

5.	 Does your facility operate for more than 

5000 hours/ year? 

6.	 Do you have a fairly constant thermal 

load (steam, hot water, chilled water, hot 

air, etc.)? 

7.	 Does your facility have an existing 

central plant? 

8.	 Do you plan to replace, upgrade or 

retrofit central plant equipment? 

9.	 Do you have a facility expansion or new 

construction project planned? 

10. Have you already implemented demand 

side management and still have high 

energy costs? 

11. Are you interested in reducing your 

facility’s impact on the environment? 

Carbon Copy 11 
If you have answered “yes” to 3 or more of 

these of these questions, your facility may 

be a good candidate for CHP. The EPA 

CHP Partnership offers free Level 1 

Feasibility analysis services for some 

projects and can make referrals to others 

who perform these types of analyses. For 

more information on this service, please call 

Kim Crossman, Program Manager, EPA 

CHP Partnership at (202) 343-2208 or send 

an email to crossman.kim@epa.gov with 

any questions or for more information on 

technical support services. 

Interested in learning more? 

If you are interested in joining or just 

learning more about the CHP Partnership, 

visit their website at www.epa.gov/chp or 

e-mail chpteam@epa.gov. The team will call 

you to discuss your interests and the 

requirements and benefits of joining the 

CHP Partnership. 

Climate Leaders News: 

The following Climate Leaders Partners 

have recently announced GHG reduction 

goals: 

The Collins Companies of Portland, 

Oregon pledges to reduce total U.S. 

greenhouse gas emissions by 18% from 

2000 to 2010. 

First Environment, Inc. of Riverdale, 

New Jersey pledges to reduce and offset 

their U.S. greenhouse gas emissions to 

achieve zero net emissions by 2008. 

Hasbro, Inc. of Pawtucket, Rhode Island 

pledges to reduce total U.S. greenhouse gas 

emissions by 30% from 2000 to 2007. 

Roche Group US Affiliates of Basel, 

Switzerland pledges to reduce total U.S. 

greenhouse gas emissions by 10% from 

2001 to 2008. 

Climate Leaders welcomes the 

following new Partners: 

Johnson Controls, Inc. 

Milwaukee, Wisconsin 

Johnson Controls, Inc., is a global market 

leader in automotive systems and facility 

management and control. Johnson Controls, 

founded in 1885, has headquarters in 

Milwaukee, Wisconsin and operates in over 

66 countries. Its sales for 2003 totaled $22.6 

billion. 

Noble Corporation 

Sugar Land, Texas 

Noble Corporation, founded in 1921, is a 

leading provider of diversified services for 

the oil and gas industry worldwide. Noble 

performs contract drilling services with a 

growing fleet of premium assets including 

semisubmersibles, drillships, jackups and 

submersible rigs. 

Oracle Corporation 

Redwood Shores, California 

Oracle is the world's second largest 

independent software company, whose 

technology can be found in nearly every 

industry around the world and in the offices 

of 98 of the Fortune 100 companies. Oracle 

is the first software company to develop and 

deploy 100 percent internet-enabled 

enterprise software across its entire product 

line: database, business applications, and 

application development and decision 

support tools. 

Carbon Copy 12