Nov 7, 2013

Energy from waste heat a valuable commodity

5 min
The world thrives with energy. More energy means more power, which means more consumption of everything. Why would a country, which loves to supers...

The world thrives with energy. More energy means more power, which means more consumption of everything. Why would a country, which loves to supersize its meals, trucks, and homes, let its most precious commodity – energy – escape and not try to capture it?

Throughout the United States, waste heat is an abundant source of emission-free power that is being overlooked.  Waste heat is a byproduct of industrial processes that is released to the atmosphere through stacks, vents, flares and mechanical equipment.

If captured and used to generate emission-free renewable-equivalent power, waste heat could reinvigorate American manufacturing, create jobs, lower the cost of energy and reduce overall emissions from electric generation, according to Kelsey Southerland, director of government relations for Houston, Texas-based TAS Energy and executive director of Heat is Power Association, the advocacy organization for the waste heat to power (WHP) industry. 

“It's just such a great opportunity for the U.S. that it seems like such a no brainer,” says Southerland who started the Heat is Power Association three years ago. “WHP has the potential to help our industries from shutting down and going overseas by using technology that is made in the U.S. and keeping environmentalist happy with emissions free power.”

What is Waste Heat to Power?

WHP is the process of using recovered waste heat to generate electricity with no combustion and no emissions. Anywhere there is an industrial process that involves transforming raw materials into useful products – steel mills, paper plants, refineries, chemical plants, oil and gas pipelines, and general manufacturing – heat is generated as a byproduct.

This waste heat is produced whenever the operation is running, often 24 hours a day, seven days a week, 365 days a year. If not recovered for reuse as lower temperature process heat or to produce emission free power, the heat will dissipate into the atmosphere, which is a wasted opportunity, according to Southerland.

Waste heat to power systems use the same technologies as geothermal and solar thermal systems to capture heat at the source and convert it into electricity with no combustion and no emissions.

Steam turbine technology has been used for WHP systems since the 1970s. More recently, technologies based on the Organic Rankine Cycle, Kalina Cycle, and the Sterling Engine, proven in the geothermal and solar thermal industries are being used to capture waste heat at lower temperatures and at smaller scales than the more traditional steam cycles used in the power industry.

“Waste heat to power isn’t new, yet it is often overlooked and is underdeveloped,” Southerland says.

Thermoelectrics, high pressure CO2 working fluids and other new developments are creating additional opportunities for waste heat to be converted into useful power. Through the application of these technologies, industrial waste heat is no longer just a byproduct – it is a resource for emission-free electricity, just like traditional renewable energy.

“As a manufacturer of WHP technology, we know there is an incredible opportunity for creating new jobs, generating more emission-free power, and expanding U.S. exports around the world,” says J.T. Grumski, president and CEO of TAS Energy. “It is an economic form of clean energy.”

A Source of Renewable Energy

Heat that is no longer needed in an industrial process is often vented through stacks, released into the air, or, if it contains hazardous gases, burned in a flare. The waste heat requires no other fuel and no combustion to generate power and releases no emissions. Waste heat is the only energy source for this power, not natural gas or any other fossil fuel that may have been used in the industrial process.

Because it is an emission-free, combustion-free resource that is generated around the clock at industrial operations, the Heat is Power Association advocates waste heat be treated as a renewable equivalent resource, according to Southerland.

Fifteen states – California, Colorado, Connecticut, Indian, Louisiana, Maine, Michigan, Minnesota, Nevada, North Dakota, Ohio, Oklahoma, South Dakota, Utah, and West Virginia – have legislative and regulatory policies that treat waste heat as a traditional renewable resource. Additionally, WHP has been endorsed by the National Association of Regulatory Utility Commissioners in their 2013 “Resolution Supporting the Inclusion of Waste-Heat-to-Power Technologies in State and Federal Clean Energy Policies and Programs.”

Why is WHP Not Used More?

Although the resource is abundant and the technology is readily available and proven, waste heat to power continues to be underdeveloped. One of the main reasons is that without government and regulatory support for WHP as an emission-free resource, WHP is forced to compete with conventional sources of power at prices often fewer than 5 cents per kilowatt hour.

“WHP cannot compete with other renewable resources that receive investment and production tax credits, or without access to long term power purchase agreements that many IPPs and traditional renewables have,” Southerland says. “Wind and solar never would have developed without subsidies from the government – it’s same with this technology.”

For instance, since the 2006 inclusion of a federal investment tax credit for solar power in the U.S. tax code, that industry has grown by 800 percent.

Given equal tax treatment, industrial waste heat could provide enough emission-free electricity to power approximately 10 million American homes, provide hundreds of thousands of new American jobs, and support critical U.S. manufacturing industries, according to Southerland.

“Turning waste heat to power would cut pollution and make industry more competitive, yet it is the only clean energy technology that the government does not encourage through tax incentives, putting it at a disadvantage in the marketplace. It’s about time recycled energy was given a fair chance to compete,” says Dick Munson, senior vice president, Recycled Energy Development.

HIP’s Next Move

The Heat is Power Association’s focus includes bringing the global industry together for networking, education, and shared data resources, as well as for a united, consistent and effective advocacy effort for WHP in the United States on the state and federal level.

“On the advocacy front, our efforts include educating policy makers, regulators, and energy and environmental stakeholders about the barriers to deployment of WHP technologies and advocating for fair and equivalent treatment of WHP,” says Southerland.

“WHP uses the same technology that is used in geothermal plants and they receive a 30 percent tax credit to use it, but if we put WHP technology on an industrial plant we get no tax credits – it's ridiculous,” Southerland says. “With more coal plants retiring there is going to be a power void and if we need more power, why don't we look at WHP as a clean energy opportunity. Waste heat is power – let’s capture it.”

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Jul 29, 2021

Carbon dioxide removal revenues worth £2bn a year by 2030

Dominic Ellis
4 min
Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades says the UK's National Infrastructure Commission

Carbon dioxide removal revenues could reach £2bn a year by 2030 in the UK with costs per megatonne totalling up to £400 million, according to the National Infrastructure Commission

Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades - although costs are uncertain given removal technologies are in their infancy - and revenues could match that of the UK’s water sector by 2050. The Commission’s analysis suggests engineered removals technologies need to have capacity to remove five to ten megatonnes of carbon dioxide no later than 2030, and between 40 and 100 megatonnes by 2050.

The Commission states technologies fit into two categories: extracting carbon dioxide directly out of the air; and bioenergy with carbon capture technology – processing biomass to recapture carbon dioxide absorbed as the fuel grew. In both cases, the captured CO2 is then stored permanently out of the atmosphere, typically under the seabed.

The report sets out how the engineered removal and storage of carbon dioxide offers the most realistic way to mitigate the final slice of emissions expected to remain by the 2040s from sources that don’t currently have a decarbonisation solution, like aviation and agriculture. 

It stresses that the potential of these technologies is “not an excuse to delay necessary action elsewhere” and cannot replace efforts to reduce emissions from sectors like road transport or power, where removals would be a more expensive alternative.  

The critical role these technologies will play in meeting climate targets means government must rapidly kick start the sector so that it becomes viable by the 2030s, according to the report, which was commissioned by government in November 2020. 

Early movement by the UK to develop the expertise and capacity in greenhouse gas removal technologies could create a comparative advantage, with the prospect of other countries needing to procure the knowledge and skills the UK develops.

The Commission recommends that government should support the development of this new sector in the short term with policies that drive delivery of these technologies and create demand through obligations on polluting industries, which will over time enable a competitive market to develop. Robust independent regulation must also be put in place from the start to help build public and investor confidence.

While the burden of these costs could be shared by different parts of industries required to pay for removals or in part shared with government, the report acknowledges that, over the longer term, the aim should be to have polluting sectors pay for removals they need to reach carbon targets.

Polluting industries are likely to pass a proportion of the costs onto consumers. While those with bigger household expenditures will pay more than those on lower incomes, the report underlines that government will need to identify ways of protecting vulnerable consumers and to decide where in relevant industry supply chains the costs should fall.

Chair of the National Infrastructure Commission, Sir John Armitt, said taking steps to clean our air is something we’re going to have to get used to, just as we already manage our wastewater and household refuse. 

"While engineered removals will not be everyone’s favourite device in the toolkit, they are there for the hardest jobs. And in the overall project of mitigating our impact on the planet for the sake of generations to come, we need every tool we can find," he said.

“But to get close to having the sector operating where and when we need it to, the government needs to get ahead of the game now. The adaptive approach to market building we recommend will create the best environment for emerging technologies to develop quickly and show their worth, avoiding the need for government to pick winners. We know from the dramatic fall in the cost of renewables that this approach works and we must apply the lessons learned to this novel, but necessary, technology.” 

The Intergovernmental Panel on Climate Change and International Energy Agency estimate a global capacity for engineered removals of 2,000 to 16,000 megatonnes of carbon dioxide each year by 2050 will be needed in order to meet global reduction targets. 

Yesterday Summit Carbon Solutions received "a strategic investment" from John Deere to advance a major CCUS project (click here). The project will accelerate decarbonisation efforts across the agriculture industry by enabling the production of low carbon ethanol, resulting in the production of more sustainable food, feed, and fuel. Summit Carbon Solutions has partnered with 31 biorefineries across the Midwest United States to capture and permanently sequester their CO2 emissions.  

Cory Reed, President, Agriculture & Turf Division of John Deere, said: "Carbon neutral ethanol would have a positive impact on the environment and bolster the long-term sustainability of the agriculture industry. The work Summit Carbon Solutions is doing will be critical in delivering on these goals."

McKinsey highlights a number of CCUS methods which can drive CO2 to net zero:

  • Today’s leader: Enhanced oil recovery Among CO2 uses by industry, enhanced oil recovery leads the field. It accounts for around 90 percent of all CO2 usage today
  • Cementing in CO2 for the ages New processes could lock up CO2 permanently in concrete, “storing” CO2 in buildings, sidewalks, or anywhere else concrete is used
  • Carbon neutral fuel for jets Technically, CO2 could be used to create virtually any type of fuel. Through a chemical reaction, CO2 captured from industry can be combined with hydrogen to create synthetic gasoline, jet fuel, and diesel
  • Capturing CO2 from ambient air - anywhere Direct air capture (DAC) could push CO2 emissions into negative territory in a big way
  • The biomass-energy cycle: CO2 neutral or even negative Bioenergy with carbon capture and storage relies on nature to remove CO2 from the atmosphere for use elsewhere

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