Natural Gas Ventures
a
New Natural Gas Company
www.NaturalGasVentures.com
Disclaimer: None of the information contained within
this website constitutes a recommendation, solicitation or offer by our company
or related companies, to buy or sell any
securities, or provide any accounting, financial, investment, legal, or
securities advice or services.
_______________________________________________________
Natural
Gas Ventures, a start-up natural gas company, is seeking to raise $20 million to:
* acquire multiple natural gas leases (in a Southern U.S. state) with proven natural gas reserves
of approximtely 750 Bcf (reservoir
engineers study available)
* one well, nearly completed
* start and complete two new natural gas wells
Our
preliminary estimates and Pro Forma indicate the $20 million will be returned in
less than three years through the sale of natural gas we produce.
To date, we have secured several natural gas leases (via option) with proven natural gas reserves of 150 Bcf.
Natural Gas Ventures is a new company that will also be focused on:
Acquisitions
of natural
gas reserves and midstream
assets:
We are presently negotiating for acquisitions of multiple natural gas leases containing
well over 750 Bcf of proven natural
gas reserves.
Acquisitions
of midstream
assets
Our acquisition of the natural gas leases with the 750 Bcf of natural gas reserves will generate
__________barrels of natural gas liquids sales/year through installation of a natural
gas
processing plant.
Exploration
and Production of our own natural
gas reserves and
acquisitions of other midstream
oil and gas and upstream
oil and gas assets.
Exploiting
our acquired natural
gas reserves and supplies through development of cogeneration,
gas to
power and trigeneration plants with
executed Power
Purchase Agreements or Energy
Service Agreements to large commercial and industrial
end users. Company will also seek to serve commercial and industrial clients
providing “demand side management” solutions with our natural gas assets
as well as clients seeking lower greenhouse gas emissions.
Our
E&P strategy will be built on organic growth "through the drillbit."
We plan to utilize > 75% of planned E&P capital allocated to
natural gas drilling in our first year, producing our own natural gas.
Adding
significant natural
gas reserves at low acquisition costs.
Our Midstream
business unit will provide marketing and gas gathering services for our Exploration
and Production business.
Company's strategy built on the Company's Recipe for Success:
The Right People doing the right things,
acquiring the right assets, and doing so with lower lifting and production costs
than our competitors.
More specifically, one of our goals is to become a leader in the natural gas
sector in terms of having
one of the lowest lifting
costs per Mcfe of natural gas production ~ $1.00/Mcfe or less along with a
Finding & Development
Costs of no more than
$1.00/Mcfe.
Goals and Objectives:
First and foremost, we seek to return our investor's money and capital returned within 3 years as well as passing through the related tax credits to our investor(s).
Our business model is to acquire natural gas reserves and midstream assets. There are several reasons why we believe this will be a formidable and highly successful enterprise. First and foremost, there is an abundance of natural gas in the U.S. Natural gas has 40% fewer greenhouse gas emissions than other fossil fuels and zero mercury emissions. The EPA is now requiring many industrial customers (including utilities that own "central power plants") to begin reporting their greenhouse gas emissions. The EPA is now in the early stages of regulating greenhouse gas emissions. In addition, the EPA has started enforcement actions at multiple industrial facilities and seeking to close the company's power plants due to excessive greenhouse gas emissions.
We believe that old, inefficient central power plants will not be economic to operate - particularly after the EPA ramps up regulations requiring utilities to reduce greenhouse gas emissions at their central power plants - and/or a greenhouse gas emissions tax (also referred to as "cap and trade") is adopted. We plan to exploit the abundance of natural gas, and use our own natural gas as the fuel of choice for fueling our own strategically-located "decentralized energy" or "dispersed generation" cogeneration, gas to power and trigeneration plants.
Initially, we will focus on the acquisitions of natural gas assets, natural gas reserves and midstream assets and in producing oil & natural gas formations in Texas. Our first acquisition has one natural gas well that is in excess of 10,000 ft in a natural gas play with 150 Bcf of proven natural gas reserves.
Company:
The
company is reviewing several “vehicles” for securing capital, including
corporation type, state of incorporation as well as use of Master Limited
Partnerships (MLPs) for acquisitions of natural gas assets,
natural gas
reserves and midstream
assets.
Once we have acquired the natural gas
reserves and started natural gas
production, we plan to begin execution of Phase 2 of our business model wherein we will
start developing multiple cogeneration,
demand side management,
gas to
power and trigeneration
projects for large commercial and industrial clients, utilizing our own
natural gas as the fuel. These solutions will be developed in strategic locations and financed
via Power
Purchase Agreements (PPAs)
or Energy
Service Agreements.
Business Model:
Background: Consider this, in 1988, there was no Chesapeake Gas company, and today, less than 22 years after their start-up, they are now the #1 natural gas company in terms of natural gas reserves owned. Today, Chesapeake owns interests in approximately 44,100 producing wells with proved reserves of 14.2 (nearly 23,000 net) trillion cubic feet of natural gas equivalent.
Our company will be a successful natural gas company whose success is measured in terms of the "triple bottom line" (TBL, 3BL) which consists of the 3P's: profit, people and planet. Our success will be determined by the metrics of: financial, social and environmental performance of our company over a specified period of time. We believe that a company's true measure of success produces a TBL that incorporates the full cost involved in doing business. This business philosophy will separate us from the other competing companies and enable us to quickly become a leading natural gas company - with a focus on the industry's midstream sector.
Our company's business model is to gather, treat, process, transport, and market natural gas and natural gas liquids (NGLs). This will be accomplished through a "buy and build" and acquisition of existing midstream assets. We will buy and build in strategic greenfield locations. We also plan to and acquire conventional and unconventional natural gas reserves, through discovering/exploration, acquisitions of natural gas leases, natural gas reserves and natural gas assets of other companies and developing/producing natural gas in strategic locations that are located "onshore" in the United States. This includes acquisitions of stranded gas.
Where economic and practical, we will then "upgrade" our natural gas by using as a fuel wherein we will transport our natural gas to our large commercial and industrial client's applications, and their cogeneration, demand side management, gas to power, trigeneration plants or fueling our customers fleets of "compressed natural gas" vehicles.
The State of Texas is our initial focus due to the lawsuit of the EPA against the State of Texas, wherein the EPA is seeking to close 18 coal-fired power plants in Texas, due to excessive Greenhouse Gas Emissions. Texas' electric grid has already been operating at near-peak capacity due to the abnormally high temperatures this summer (2011), and the electric grid operator has warned of potential blackouts as a result as well as enacted emergency load curtailment. This makes Texas' large commercial and industrial customers ideal candidates for our cogeneration and trigeneration energy systems, fueled by our own natural gas reserves.
Our company's Founder has developed a one-and-only marketing model that will strategically position our company for many years of success and allow us to favorably compete with the industry's leading natural gas companies. Our marketing strategy provides us with not only a commanding presence, but a "dominating" internet presence that will generate the results to accomplish our goals as we will exploit the relatively inexpensive price of natural gas by upgrading it through our cogeneration, demand side management, gas to power, trigeneration solutions at our client's locations.
Please read the Publication below, titled: The Advantages of Cogeneration and Trigeneration by our Company's Founder and Chairman, which was published in several energy magazines.
Marketing Model and Natural Gas Acquisitions Strategy:
Our business development strategy was first developed by our company's Founder, shortly after graduation from Baylor University with his MBA in 1995 when he began securing many of the industry-leading midstream oil and gas and upstream oil and gas internet addresses, also called URLs.
Since most business, business transactions, marketing, business development and new business opportunities involve the internet, ownership of "the" industry-leading internet address for a particular product or service, generates new business opportunities, which includes receiving one of the first emails or phone calls from companies and individuals wanting to sell their oil and natural gas assets, or to make an investment in an oil and natural gas company or particular oil and natural gas prospect. Our company's Founder and Chairman has seen firsthand the "strategic value" and importance that owning "the" category domain name provides a number of benefits, which include;
website traffic
natural and "organic" type-in traffic
interested/potential clients
asset acquisition opportunities
enhanced name recall
easy-to-remember website address
brand and company credibility that would otherwise take years to build
All
of which makes the start-up of the "next Chesapeake" a much easier
task.
As many of our company's Chairman's internet addresses (now owned by his family
trust) were acquired at/near the beginning of the internet "Gold
Rush," these sites "naturally" rank at the top, or near the top
of Google's search returns when searching for the respective word or
phrase.
For example, when searching for "natural gas assets" today (July 20, 2011) on Google, our related website: www.NaturalGasAssets.com is found on Google's 1st page of returns in the #4 position and ahead of other oil and natural gas company sites (including news stories/articles about other oil and natural gas companies) including; Tenaska Energy, Denbury Resources, ExxonMobil and El Paso Pipeline.
Many of our available sites/URLs that rank on Google's 1st page of returns include;
www.PowerPurchaseAgreement.com
Other available "industry-leading" sites - but not presently found on
Google's 1st page of returns - as these URLs are only "re-directing"
to our other sites, and not presently a "dedicated" website or, have
not yet been optimized for Google - include;
www.NaturalGasAcquisitions.com
Once
we have commenced day-to-day operations and started our natural gas
acquisitions, we will begin updating and optimizing all of these sites (which
will be leased to the Company for $10.00/year and while our company's Founder
and Chairman serves in this capacity) which will then be focused on our
company's business model.
What are Master Limited Partnerships?
Master Limited Partnership (MLPs) are limited partnerships that are publicly traded on a securities exchange.
MLPs
combine
the tax benefits of Limited Partnerships with the liquidity and
protection/oversight of a publicly traded security.
Master Limited Partnerships are limited by regulation to apply to specific businesses - most notably - natural resources, including; oil and natural gas extraction and transportation.
To
qualify for MLP status, a partnership must generate at least 90 percent of its
income from "qualifying" sources/resources. For many Master Limited
Partnerships, this includes activities related to the production, processing or
transportation of oil, natural gas and coal.
Master
Limited Partnerships pay their investors through Quarterly Required Distributions
or QRDs. The amount of the QRDs is stated in the contract between the Limited
Partners (the investors) and the General Partner (the managers). Failure of the
General Partner to pay the quarterly required distributions constitutes a
default of the MLP Agreement.
Because
of the stringent provisions on Master Limited Partnerships and the QRD, the
majority of all Master Limited Partnerships are pipeline businesses, and natural
gas companies engaged in the "midstream" oil and natural gas sector,
which generated a reliable and steady income from the oil and natural gas
sector.
Because
MLPs are a partnership, there is no corporate income tax at either the state or
federal level. The Limited Partners (investors) are able to record a
pro-rated share of the investment in the Master Limited Partnership's
depreciation on their personal income tax filings which further reduces their
(that year's) tax liabilities. This is the primary benefit of Master Limited
Partnerships and provides MLPs relatively inexpensive funding and capital costs.
In
most new Master
Limited Partnerships, the General Partner starts out with a small stake or
position in the company - typically in the 2% to 5% range. However, the
MLP receives "incentive distributions" from the net income after the Quarterly
Required Distributions. As the incentive distributions are normally paid
in the form of increased equity claims this allows the General Partner to attain
an increasingly greater percentage of ownership in the company over time.
Power Purchase Agreements:
highlights from www.PowerPurchaseAgreement.com
What
is a Power
Purchase Agreement?
A Power
Purchase Agreement is a legal agreement wherein our clients agree to
buy either the power (electricity) or the power and energy (hot water, steam
and/or chilled water for air-conditioning) - or both - directly from us, for a
term of 10 to 20 years, where we have installed, own and operate our solar
energy systems.
In nearly
every case, once we have installed our solar energy systems at our client's
facility, we can immediately reduce our (commercial) client's
electricity expenses by 10% over what they were paying for their power
electricity from their electric utility.
The right
Power
Purchase Agreement (PPA) may save your company hundreds of thousands, and
possibly millions of dollars over the term of the agreement.
Simultaneously,
having the wrong or poorly drafted PPA can cost your company thousands or
millions of dollars. You wouldn't consult a brain surgeon to treat your child's
broken bone! Selecting the wrong attorneys, law firm or team to promulgate or
re-negotiate your Power Purchase Agreement can leave you "powerless"
and penniless - and still requiring the skills and expertise of competent and
qualified professionals to resolve the situation.
Because a
Power
Purchase Agreement is at the "heart" and underlying
foundation of our projects, we can help your business with the selection and
oversight of PPA's.
We can
help your city or community create a Municipal
Utility District or Public
Utility District that may then qualify for our very competitively
priced energy and electricity rates. Now is the time for cities, municipal and
governmental clients to consider having our company install one of our renewable
power and energy systems that will generate "clean" power and energy,
lower costs, and avoid the coming electricity shortages and grid congestion
problems!
Products
and services provided by us include the following power and energy project
development services:
·
Project Engineering Feasibility & Economic Analysis Studies
·
Engineering, Procurement and Construction
·
Environmental Engineering & Permitting
·
Project Funding & Financing Options; including Equity
Investment, Debt Financing, Lease and Municipal Lease
·
Shared/Guaranteed Savings Program with No Capital Investment from
Qualified Clients
·
Project Commissioning
·
3rd Party Ownership and Project Development
·
Long-term Service Agreements
·
Operations & Maintenance
·
Green Tag (Renewable Energy Credit, Carbon Dioxide Credits,
Emission Reduction Credits) Brokerage Services; Application and Permitting
Plentiful and Clean, Natural Gas as a Strategic Energy Substitute and Clean Fuel
Resource:
EIA and others now estimate that American has an abundance of natural gas. Others have declared that America has as much as natural gas reserves as 2 OPEC's oil reserves! And, some industry-insiders have quietly stated that America may have as much as 200 years of natural gas reserves, rivaling America's abundance of coal reserves. What this means is that we have a temporary bubble or excess supply of natural gas. Until demand catches up with supply, there are a number of opportunities for capturing large commercial and industrial customers. This will be accomplished via "transporting" our company's natural gas to these end-users for their natural gas applications and technologies. These natural gas applications and technologies include onsite cogeneration and trigeneration plants and demand side management solutions.
American-produced natural gas helps reduce America's reliance on foreign oil. America's natural gas is a strategic fuel that is increasingly being used as a clean fuel with 1/2 the carbon emissions and other greenhouse gas emissions responsible for global warming and climate change compared with coal, gasoline and diesel fuels. Natural gas has ZERO mercury emissions which is a serious problem for other fossil fuels, particularly coal.
Natural gas is ideally positioned as the fuel of choice for "fuel switching" - wherein natural gas can completely replace 1 for 1 (on an mmbtu basis) energy and fuel supplies from foreign countries. This includes the gasoline and diesel fuels that are refined from oil at refineries where that oil was purchased from OPEC or other foreign countries. Natural gas produced in the USA can fuel cars, trucks, 18 wheelers that have had their diesel engines or gasoline engines, updated to natural gas engines or their fuel systems updated to "compressed natural gas." Even trains and ships can run on clean-burning natural gas through "diesel to natural gas" conversions.
Natural gas competes with other fuels on an mmbtu basis including "clean coal" or "pulverized coal" and also on an mmbtu basis when competing against gasoline and diesel fuels. When natural gas competes with diesel and gasoline, natural gas is sold like gasoline and diesel, on a per-gallon basis. Right now, in Texas, natural gas vehicles, trucks and 18 wheelers fueled by compressed natural gas, pay, on average, about $1.74/gallon equivalent - or less than half the price of gasoline and diesel fuels.
There are outside factors - some significant - that will impact crude oil supplies and prices. These include: political, geopolitical and social developments in the Middle East as well as increasing demand in markets in Asia and Europe, and to the extent that the members of OPEC (Organization of Petroleum Exporting Countries) and other oil exporting countries are able to manage oil supplies through export quotas. America's natural gas prices are determined NOT by "export quotas" or (illegal) cartels like OPEC, but by America's supply and demand for natural gas as well as imports of liquefied natural gas. In addition, weather can play a significant role in the demand for natural gas.
Management
Team:
Proven management team: led by by Monty Goodell, a veteran of the energy, natural gas and utility sector with more than 25 years in the natural gas and utility sectors. He has developed a dynamic and highly creative business strategy that generates new acquisition opportunities and deal flow. In addition, he is the recipient of multiple sales, marketing and business development awards including the 1st Place Company Sales Award in the Annual Who's Who sales competition while at Entex (now CenterPoint Energy.) In 2007, Monty founded the Renewable Energy Institute, a non-profit company that advocates for American energy and renewable energy solutions. He has been involved with multiple cogeneration, trigeneration and demand side management projects utilizing natural gas as the fuel of choice dealing with large commercial, industrial and utility clients. While at Entex (now CenterPoint Energy) he was responsible for managing the 42 largest industrial accounts in two divisions with annual revenues in excess of $220 million. And, he successfully converted a major cement plant in Texas from using coal from Wyoming (PRB) to natural gas.
Monty has extensive experience in the oil and natural gas industry - "from the wellhead to the burner-tip" including acquisitions, gathering and processing, environmental compliance (including emissions compliance from oil and natural gas facilities),
Mr. Goodell wears many hats in the early stages at Natural Gas Ventures while leading the company and assembling the company's management team. He presently oversees all aspects of the company's operations, including oversight of the company's properties/leases, geology, title searches, signing of right of ways, preparation of environmental reports (learned during his > 6 years at Lone Star Gas/ENSERCH and TXU as an Environmental Specialist) surveying, and balance of information required to obtain drilling permits in Texas. Monty will deal directly with the Texas RRC in Austin insuring the drilling permits are approved quickly. Once the drilling starts you will find Monty on location managing all aspects of the drilling and completion operations. He will be very involved at the natural gas leases and drilling sites from the start to completion of every new project, working hard to protect the investors that put their trust and capital into Natural Gas Ventures.
As we complete our management team, we stress the fact that we want all of our company's employee's think and act like an owner. To accomplish this, we plan to reward and encourage our employees through equity ownership in Natural Gas Ventures. All of our full-time employees will receive "equity grants" in new acquisitions.
Monty is a graduate of the Hankamer School of Business at Baylor University with a Master's degree in International Business and a B.A. in Economics from Texas State University.
Contact
information:
Mont Goodell II, MBA
Email: info@NaturalGasVentures.com
The
Advantages of Cogeneration and Trigeneration
By: Monty Goodell, MBA
Owners of commercial buildings and commercial businesses are increasingly seeking ways to use energy more efficiently. This is a direct result of dramatically increasing electric rates, decreased power reliability (blackouts, brownouts, rolling blackouts, and other power interruptions), as well as competitive and economic pressures to cut expenses, increase air quality, and reduce emissions of air pollutants and greenhouse gases. The Kyoto Protocol, while not ratified in the United States, continues to be a major driver in much of the rest of the world. In the United States, "ecogeneration" is becoming a preferred method to produce a company’s or facility’s power and energy requirements.
Ecogeneration defines the optimization of economic and ecological benefits in the power generation process. Ecogeneration produces huge savings for our environment through the reduction, or even elimination, of pollution associated with power and energy production. Additionally, ecogeneration appeals to our customers’ economic bottom line by providing them with significant fuel and electrical savings.
Energy technologies that fall under ecogeneration include: wind, solar, geothermal, hydrogen fuel, hydrogen fuel cells, soybean diesel fuels, ocean/tidal power, waste to energy/waste to fuel and waste to watts, combined cycle, district energy, cogeneration, trigeneration, and even quadgeneration power plants.
There are two major ecogeneration initiatives and technologies that we will discuss in this article — cogeneration and the newer technology, trigeneration. Trigeneration is one of the most attractive options, and is even more efficient and economically rewarding than its cousin, cogeneration.
Cogeneration, also known as combined heat and power (CHP), is the simultaneous production of electricity and useful heat, usually in the form of either hot water or steam, from one primary fuel, such as natural gas. While not necessarily defined correctly, cogeneration has also been referred to as district energy, total energy, combined cycle, and simply cogen.
Cogeneration has been mostly a technology used in the utilities and industrial marketplace.
Trigeneration, as the name implies, refers to three energies, and is defined as the simultaneous production of heat and power, just like cogeneration, except trigeneration takes cogeneration one step further by also producing chilled water for air conditioning or process use with the addition of absorption or adsorption chillers. Trigeneration, also referred to as CHCP (combined heating, cooling and power), BCHP (building cooling, heating and power) and integrated energy systems, permits even greater operational flexibility at businesses with demand for energy in the form of heating and cooling. Just as a cogeneration power plant captures and makes use of the waste heat, absorption or adsorption chillers capture the waste (or rejected) heat and produce chilled water.
Trigeneration systems are found in commercial applications typically where there is a need for air conditioning or chilled water by the customer.
When a trigeneration power system is installed on-site, that is, where the electrical and thermal energy is needed by the customer so that the electrical energy does not have to be transported hundreds of miles away, and the thermal energy is fully utilized, system efficiencies can reach and surpass 90 percent.
How Trigeneration Works: The Trigeneration Process
On-site trigeneration plants are much more efficient, economically sound,
and environmentally friendly than typical central power plants. Because of
this, customers’ energy expenses are significantly lower, and the
associated pollution is also much less than if the customer had an energy
system supplied with electricity from the grid, along with water heaters and
boiler systems on-site. Trigeneration's superior efficiencies surpass even
the latest state-of-the-art combined cycle cogeneration power plants by up
to 50 percent. Coupled with a four-pipe system, hot water/steam and chilled
water can be produced simultaneously for circulation throughout the building
or campus (which would be referred to as a district energy system).
And size is not an impediment, since trigeneration systems can be installed, for example, in small commercial settings, such as restaurants, hotels, schools, office buildings, and shopping centers, to large applications such as petrochemical plants, refineries, and in a city's downtown area, providing the energy requirements for multiple buildings. And it will still provide system efficiencies of 90 percent.
History
Of Cogeneration Technology
Many people know that Thomas Edison built the first commercial power plant.
However, most people do not know that Edison's first commercial power plant
known as the "Pearl Street Station," built in 1882 in Lower
Manhattan, New York, was also a cogeneration power plant!
Because cogeneration and trigeneration continue to be the most efficient method of generating electrical and thermal energy, in terms of energy output, the U.S. Department of Energy (DOE) has called for the doubling of electrical power generated from cogeneration power plants — from the existing 46 GW (one gigawatt = 1,000 MW) to 92 GW by the year 2010. When this goal is reached, cogeneration will represent about 14 percent of the total U.S. generating capacity of electricity. The American Council for an Energy-Efficient Economy (ACEEE) estimates that an additional 95 GW of cogeneration capacity could be added between 2010-2020, resulting in 29 percent of total U.S. electric power generation being produced through cogeneration. Europe is also dramatically increasing the number of cogeneration power plants over the next decade.
And the historical basis and success of cogeneration has been the foundational basis for expanding the efficiencies of cogeneration to trigeneration and even quadgeneration, with each new increase in energies recovered resulting in higher efficiencies and lower fuel/energy costs and fewer related emissions.
President Bush's
National Energy Plan
In the United States, President George W. Bush's National Energy Plan
recognizes the efficiency of cogeneration technologies — and it plays an
important role in meeting national energy objectives and maintaining comfort
and safety in commercial and office buildings. Released in May 2001, the
president's National Energy Plan states:
A family of technologies known as combined heat and power (CHP) can achieve efficiencies of 80 percent or more. In addition to environmental benefits, cogeneration projects offer efficiency and cost savings in a variety of settings, including industrial boilers, energy systems, and small building scale applications. At industrial facilities alone, there is potential for an additional 124,000 MW of efficient power from gas-fired cogeneration, which could result in annual emissions reductions of 614,000 tons of NOx emissions and 44 million tons of carbon equivalent. Cogeneration is also one of a group of clean, highly reliable, distributed energy technologies that reduce the amount of electricity lost in transmission while eliminating the need to construct expensive power lines to transmit power from large central power plants.
Since the 1930s approximately two-thirds of all the fuel used to make electricity in the U.S. is generally wasted by central power plants in the form of unused thermal energy in the electrical generation process. While there have been impressive energy efficiency gains in other sectors of the economy since the oil price shocks of the 1970s, the average efficiency of power generation in this country has remained around 27 to 35 percent for nearly 70 years. The use of cogeneration and trigeneration can significantly improve that efficiency.
Pollution
Associated With Inefficient Power Plants
Currently, power plants in the U.S. have been cited for producing two-thirds
of its annual sulphur dioxide emissions, one-quarter of the nitrogen oxide
emissions, one-third of mercury emissions, and one-third of carbon dioxide
emissions. These resulting pollutants produce serious environmental and
health consequences, including:
Increased sick days in areas with high urban smog levels.
Lung problems in the young and old, including increased rates of asthma and chronic bronchitis.
Global climate change.
Urban haze and smog.
Acid rain.
Acidification of lakes, streams, rivers, and oceans.
Dead and dying lakes, stream, rivers, and wildlife in and near these areas.
"Curing" the problems associated with inefficient electrical power generation begins with pollution prevention. The choices are clear — we must stop wasting energy and start increasing the efficiency of power generation facilities. Instead of building inefficient, wasteful, pollution-generating central power plants owned by utility companies, where the thermal energy is wasted, we need to start building efficient, on-site power plants where the heat energy can be utilized. These on-site cogeneration, trigeneration, and quadgeneration power and energy systems are also referred to as "distributed generation" or "distributed energy" technologies. They can be installed easily and affordably, and they operate economically throughout their life cycle.
The U.S. Environmental Protection Agency (EPA) understands that resolving these problems must start with pollution prevention, which equates to using fewer energy resources to produce goods and services. The National Energy Plan includes four specific recommendations to promote CHP, three of which were directed to EPA for action:
Promotion of CHP through flexible environmental permitting.
Issuing of guidelines to encourage development of highly efficient and low-emissions CHP.
Promotion of the use of CHP at abandoned brownfield industrial and commercial sites.
As a follow-up to those recommendations, EPA joined with 18 Fortune 500 companies, city and state governments, and nonprofit organizations in February 2002 in Washington, DC, to announce the EPA Combined Heat and Power Partnership (CHPP). The CHPP aims to advance CHP as a more efficient, clean, and reliable alternative to conventional electricity generation. This initiative now boasts nearly 50 partners, including state and local regulators, end users, project developers, and equipment suppliers.
Clean
On-Site Power For Commercial And Industrial Customers
Distributed generation locates smaller and more efficient power plants where
the power and thermal energy is actually needed. These on-site power systems
are also called "inside the fence" power systems and are designed
and engineered to maximize the customer's power and energy requirements.
The DOE’s Energy Information Administration (EIA) recently sponsored a study to estimate the potential of cogeneration installations in the U.S. According to their study, there are 1,431,805 buildings in the United States that are suitable for on-site cogeneration power systems (most of these are actually better suited for trigeneration) requiring a capacity of 77,281 MW. At an average of $1 million per MW, this translates into a $77,281,000,000 market opportunity. That's over $77 billion in the U.S. alone. Trigeneration would be an even greater market opportunity as this study focused on applications where thermal energy load was in the form of steam or hot water, and does not take into consideration use of thermal technologies, such as absorption/adsorption chillers or desiccant dehumidification, as part of the potential for the building's thermal load.
When absorption/adsorption chillers are added to a cogeneration system, it is now referred to as a trigeneration system. Therefore, the total market potential in the study could be significantly higher than the 77,281 MW when considering the opportunity for trigeneration applications. The study also estimates the total existing capacity of cogeneration installations in the U.S. to be only about 4,930 MW, and that over 70 percent of the existing facilities are under 1 MW and are powered by small reciprocating engines.
Even quadgeneration is a possibility, taking trigeneration one further step, producing four energies from one process. By extracting most, if not all, of the available heat from the power/energy generation process, end users obtain the most efficient, optimized energy system. But the efficiency gains are wasted if the recovered waste heat is not put to work or the existing boilers or water heaters displaced, reduced, or eliminate entirely. This is why it is absolutely critical that a thorough and complete feasibility study is done to determine a properly sized on-site energy system, and that conventional systems are either eliminated, compensated for, or integrated into the new energy system.
It should go without saying, but if the facility that installs a trigeneration system does not replace or reduce other systems, there can be a net loss of efficiency. If the facility does not offset the net efficiency gains of the new trigeneration system by reducing, displacing, or eliminating the existing water heaters/boilers load, then the facility will not have an optimized installation and therefore will not profit to the extent it could have had the feasibility and design studies been properly conducted.
Trigeneration
Takes Lead Over Cogeneration Due To Superior Efficiency
A trigeneration system consists of a cogeneration plant, and either
absorption or adsorption chillers that produce chilled water by making use
of some of the waste heat recovered from the cogeneration power plant.
Figure 1. Schematic presentation of a gas turbine-based trigeneration facility.
While
cooling can be provided by electric-driven compression chillers, low quality
heat (i.e., low temperature, low pressure) that is not used by the
cogeneration power plant can be used to drive the absorption or adsorption
chillers so that the overall primary energy consumption is reduced.
Trigeneration power plants with absorption and/or adsorption chillers have gained acceptance due to their capability of not only integrating with cogeneration systems but also because they can operate with industrial waste heat streams that can be fairly substantial. The benefit of power generation with absorption or adsorption cooling can be realized through the following example that compares it with a power generation system with conventional electric-driven compression systems.
Assume in this example a factory needs 1 MW of electricity and 500 refrigeration tons (RT). (Defintion: A refrigeration ton or RT is defined as the transfer of heat at the rate of 3.52 kW, which is roughly the rate of cooling obtained by melting ice at the rate of one ton per day.)
Let us first consider the gas turbine that generates electricity required for the processes as well as the conventional electric-driven compression chiller. With an electricity demand of 0.65 kW/RT, the compression chiller needs 325 kW of electricity to obtain 500 RT of cooling. Therefore, a total of 1,325 kW of electricity must be provided to this factory. If the gas turbine has an efficiency of 30 percent, primary energy consumption would be 4,417 kW.
However, a trigeneration system with absorption or adsorption chillers can provide the same energy service (power and cooling) by consuming only 3,333 kW of primary energy.
In this example, the trigeneration power plant saves about 24.54 percent of the primary energy needed compared to the cogeneration power plant with electric-driven compression chillers. Since many industries and commercial buildings can use combined power and heating/cooling, trigeneration systems have a high potential for industrial and commercial applications. (The above example is courtesy of ASHRAE.)
Trigeneration, when compared to combined-cycle cogeneration, can be up to 50 percent more efficient, further reducing operating costs, fuel expenses, and environmental pollutants.
Trigeneration systems for commercial buildings are very profitable investments for building owners. A new trigeneration system can pay for itself in as little as two years, depending on local electric rates, natural gas (or other fuel) costs, and the load profile of the building. Trigeneration systems help not only the building owner, but also benefit society in a number of ways, including:
Increased power reliability,
Reduced power requirements on the electric grid; and
Reduced dependence on foreign oil.
The on-site trigeneration system can be economically attractive for many types of buildings, including, but not limited to, the following:
Hospitals
Schools, colleges, and universities
Office
buildings
Shopping
centers
Government
facilities
Manufacturing
plants
Data
centers
Nursing
homes
Hotels
Supermarkets
Refrigerated
warehouses
Retail
stores
Restaurants
Theatres
Ice
arenas
Airports
Golf/country
clubs
Casinos
Resorts
Facilities with trigeneration systems use them to produce their own electricity, and use the unused excess (waste) heat for water heating, space heating, air conditioning, process steam, and other thermal needs.
Improved Power Reliability
Economic losses due to power outages in the U.S. have cost American
businesses billions of dollars. The following table shows the economic
impact of power outages on some industries.
Table 1. Economic impact of power outages.
As
we all know, power outages and rolling blackouts are occurring more
frequently than ever before. And they are not happening only in California;
many other states have experienced similar problems. These problems
primarily occur when demand for power exceeds its supply, for example, on
hot days when power demand for cooling systems increases significantly.
Similar situations occur on very cold days when demand for heating becomes
very high. There may also be local areas that are more prone to power
outages because the demand for power exceeds the ability of the local
distribution line to provide the energy. Other times, weather-related storms
knock down power lines and substation transformers.
Cogeneration and trigeneration systems give commercial and industrial end users their own reliable power supply to keep equipment and facilities operating. Plus, they help reduce the load on the power grid and local area lines and, thus, help improve the local community’s power reliability.
Improved
Indoor Environments
Also of increasing interest is the issue of indoor air quality. In order to
prevent the growth of mold, mildew, and bacteria, it is important to keep
humidity in the indoor air to below 60 percent. Cogeneration and
trigeneration systems for buildings can help improve indoor air quality by
supporting the use of a desiccant dehumidification system to dry the air.
Desiccant systems use a material that directly removes moisture from the
air, then use heat, such as that provided by the exhaust gases of the
cogeneration/trigeneration equipment, to regenerate the desiccant. This
provides a very energy efficient and cost effective method of dehumidifying
indoor air, rather that using an air conditioner to "over cool"
the air to remove humidity.
Summary: Advantages Of On-Site Cogeneration And Trigeneration
Cogeneration
and trigeneration are accepted as the most energy-efficient means of
producing electricity and now produce almost 17 percent of the U.S.'
electricity and 15% of electricity globally.
saves
customers up to 50 percent on their energy expenses.
provides
even greater savings to our environment through significantly reduced
emissions associated with power plants.
backed
by environmental organizations such as the Sierra Club and the U.S.
Environmental Protection Agency.
The
U.S. Environmental Protection Agency is promoting the use of more
electricity to be produced through cogeneration power plants. The EPA
recently formed the CHP/Cogeneration Partnership to foster more cogeneration
power plants to meet our nation's electricity demand.
Cogeneration
is a proven technology that has been around for over 100 years. The world's
first power plant designed and built by Thomas Edison in 1882 was a
cogeneration plant. Trigeneration just takes cogeneration one step further.
Two-thirds
of the fuel used to make electricity today in the United States is wasted.
While there have been impressive energy efficiency gains in other sectors of
the economy since the oil price shocks of the 1970s, the average efficiency
of power generation in the United States has stagnated at around 33 percent
since 1960. Cogeneration and trigeneration offer significant efficiency
improvements.
A
new trigeneration power plant may pay for itself in as little as 2-3 years.
It
is important to note that increasing the use of cogeneration and
trigeneration systems is, and has been, one of the best technologies
available for reducing greenhouse gas emissions and other pollutants created
by the typical power plant as well as a means for conserving fuel and
reducing our reliance on foreign oil.
The
Kyoto Protocol, while not being ratified here in the United States, is
moving ahead with ratification throughout the rest of the world. Countries
throughout much of Europe and Asia view cogeneration and trigeneration as
the best energy technologies to meet the stringent emissions requirements of
the Kyoto Protocol.
Primary fuels commonly used in trigeneration include natural gas, oil, diesel fuel, propane, coal, wood, wood-waste, and bio-mass. These "primary" fuels are used to make electricity that is a "secondary" energy. This is why electricity, when compared on a Btu to Btu basis, is typically three to four times more expensive than primary fuels such natural gas.
A typical cogeneration power plant consists of an engine, steam turbine, or combustion turbine that drives an electrical generator. A waste heat exchanger recovers waste heat from the engine and/or exhaust gas to produce hot water or steam for a building. In trigeneration power plants, an absorption or adsorption chiller is added to a cogeneration system to also utilize the waste heat to make chilled water for air conditioning.
Cogeneration produces a given amount of electric power and heat with 20 to 30 percent less fuel than it takes to produce the electricity and heat separately. Trigeneration produces chilled water in addition to electric power and heat with approximately 50 percent less fuel than it takes to produce electricity, heat, and chilled water separately.
What are CHP Systems?
A CHP System integrates distributed generation (DE) with thermally-activated power and energy technologies for heating and cooling.
CHP Systems are more commonly referred to as "Trigeneration" plants and also referred to as:
Cogeneration plus Absorption Chillers - or - ADsorption Chillers
CHP Systems are also at the center of every District Energy System.
CHP Systems, District Energy Systems, Integrated Energy Systems, or Trigeneration plants, no matter how they are referred, achieve overall, net system energy efficiencies of 80% plus, and several Trigeneration plants are nearing 90% efficiencies nearing almost 300% increased efficiency over power provided by electric utilities and their central power plants"! This means significantly lowered:
energy costs
fuel costs
CHP
Systems achieve these greater energy efficiencies through the conversion of exhaust or reject heat from power generation into needed energy services like cooling and heating of
buildings as well as campuses. This is called "Waste
Heat Recovery" or "Recycled
Energy." Development of "packaged" or "modularized" CHP
Systems for end-use applications, such as commercial and institutional buildings, is
something the founder of our company has been involved with since the mid
1980's.
In the past, Cogeneration
plants have been economically attractive only in sizes above several megawatts. The emergence of a number of small generation technologies, including fuel cells, advanced low emissions engines, and
gas turbines with outputs in the 1000
kW - 5000 kW range, should extend the benefits of Integrated
Energy Systems to a much larger user base, with a consequent increase in national energy and environmental benefits.
For example, the application of CHP Systems(including Absorption Chillers - or - ADsorption Chillers) in commercial buildings could reduce commercial building energy consumption by 30%.
Application of such smaller-scale packaged
CHP Systems provides a major breakthrough in energy efficiency
technology, energy savings as well as reduced greenhouse
gas emissions. And, by locating the power generation at or near the end-user/consumer,
i.e. their facility, building, or campus, the difficulties in siting and building new electric transmission and electric distribution infrastructures to meet today's increasing power demand are minimized.
The most promising markets for Trigeneration
plants, CHP Systems, District
Energy Systems or Integrated
Energy Systems are commercial or institutional buildings, government facilities, and district energy systems that distribute thermal energy to buildings in a college campus, hospital complex, industrial park,
food processing operations, refrigerated warehouses, and also very attractive
for cities.
________________________________________________________________________
What
is a Power Purchase Agreement?
A
Power Purchase Agreement
is a legal agreement wherein our clients agree to buy either the power
(electricity) or the power and energy (hot water, steam and/or chilled water for
air-conditioning) - or both - directly from us, for a term of 10 to 20 years, where we have
installed, own and operate our solar energy systems.
In
nearly every case, once we have installed our solar
energy systems at our client's facility, we can immediately
reduce our (commercial) client's electricity expenses by 10% over what
they were paying for their power electricity from their electric utility.
The
right Power Purchase Agreement,
solar
cogeneration or solar
trigeneration energy solution, may save your company
hundreds of thousands, and possibly millions of dollars over the term of the
agreement.
Simultaneously, having the wrong or poorly drafted PPA can cost your company thousands or millions of dollars. You wouldn't consult a brain surgeon to treat your child's broken bone! Selecting the wrong attorneys, law firm or team to promulgate or re-negotiate your Power Purchase Agreement can leave you "powerless" and penniless - and still requiring the skills and expertise of competent and qualified professionals to resolve the situation.
Because a Power Purchase Agreement is at the "heart" and underlying foundation of our projects, we can help your business with the selection and oversight of PPA's.
We can help your city or community create a Municipal Utility District or Public Utility District that may then qualify for our very competitively priced energy and electricity rates. Now is the time for cities, municipal and governmental clients to consider having our company install one of our renewable power and energy systems that will generate "clean" power and energy, lower costs, and avoid the coming electricity shortages and grid congestion problems!
Products and services provided by us include the following power and energy project development services:
Project Engineering Feasibility & Economic Analysis Studies
Engineering, Procurement and Construction
Environmental Engineering & Permitting
Project Funding & Financing Options; including Equity Investment, Debt Financing, Lease and Municipal Lease
Shared/Guaranteed Savings Program with No Capital Investment from Qualified Clients
Project Commissioning
3rd Party Ownership and Project Development
Long-term Service Agreements
Operations & Maintenance
Green Tag (Renewable Energy Credit, Carbon Dioxide Credits, Emission Reduction Credits) Brokerage Services; Application and Permitting
More About Power Purchase Agreements
A Power Purchase Agreement is "behind" almost every power plant. A PPA is a contract involving the generation and sales of electricity - which is normally developed between the owner of a power plant generating the electricity, and the buyer of the electricity. PPA's can be quite lengthy agreements that may exceed 100 pages in length and take several months to even 1-2 years to finalize.
The
basic information contained in a Power Purchase Agreement
include the
following items:
* Definitions
* Purchase and
Sale of Contracted Capacity and Energy (such as steam, hot
water and chilled water in the case of
trigeneration
plants
* Operation of
the Power Plant
* Financing of
the Power Plant
* Guarantees of
Performance
* Penalties
* Payments
* Force Majeure
* Default and
Early Termination
* Miscellaneous
* T&C's
For more information about Power Purchase Agreements, call or e-mail us today.
Reduce
Your Company's Energy Expenses
and Greenhouse Gas Emissions!
Our onsite
power generation systems could save your business 30% or more - depending
on your present electric utility rates, location and how you use energy.
Reduce your energy costs with our clean power generation systems, either a cogeneration or trigeneration energy system - which we can; design, package/build, own and/or operate. Call us today to discuss how we can engineer a system to meet your company's power and energy requirements. We have the funding resources to make it quick and easy!
We provide commercial, industrial and utility clients with clean energy and power solutions that provide substantial savings for your company's bottom-line as well as for our environment. Several of our onsite power and energy systems include cogeneration or our advanced trigeneration and even quadgeneration systems.
What is "Trigeneration"?
Trigeneration is the simultaneous production of three forms of energy - typically, Cooling, Heating and Power - from only one fuel input. Put another way, our trigeneration power plants produce three different types of energy for the price of one.
Our company's trigeneration energy systems reach overall system efficiencies of 86% to 93%. Typical "central" power plants, that do not need the heat generated from the combustion and power generation process, are only about 33% efficient.
Trigeneration
Diagram & Description
Trigeneration Power Plants' Have the Highest System
Efficiencies and are
About 300 % More Efficient than Typical Central Power Plants
Trigeneration
plants are installed at locations that can benefit from all
three forms of energy. These types of installations that install trigeneration
energy systems are called "onsite
power generation" also referred to as "decentralized
energy."
One
of our company's principal's first experience with the design and development
of a trigeneration power plant was
the trigeneration power plant
installation at Rice University in 1987 where the trigeneration
development team started out by conducting a "cogeneration"
feasibility study.
The EPC (Engineering
Procurement Construction) contractor installed a 4.0 MW Ruston gas turbine
for the power plant. Rice University selected an EPC company that installed
the trigeneration power plant,
along with waste heat recovery boilers and absorption
chillers. A "waste
heat recovery boiler" captures the heat from the exhaust of the gas
turbine. From there, the recovered energy was converted to chilled water -
originally from (3) Hitachi Absorption
Chillers - 2 were rated at 1,000 tons each, and the third Hitachi
Absorption Chiller was rated at 1,500 tons. The Hitachi absorption
chillers were replaced shortly after their installation by the EPC
company.
The first trigeneration plant at Rice University was so successful, they added a second 5.0 MW trigeneration plant so today, Rice University is now generating about 9.0 MW of electricity, and also producing the cooling and heating the university needs from the trigeneration plant and circulating the trigeneration energy around its campus.
Trigeneration Comparison Chart
Trigeneration's "Super-Efficiency" compared
with other competing technologies
As you can see, there is No Competition for Trigeneration!
Our trigeneration power plants are
the ideal onsite power and energy solution for customers that include: Data
Centers, Hospitals, Universities, Airports, Central Plants, Colleges &
Universities, Dairies, Server Farms, District Heating & Cooling Plants,
Food Processing Plants, Golf/Country Clubs, Government Buildings, Grocery
Stores, Hotels, Manufacturing Plants, Nursing Homes, Office Buildings /
Campuses, Radio Stations, Refrigerated Warehouses, Resorts, Restaurants,
Schools, Server Farms, Shopping Centers, Supermarkets, Television Stations,
Theatres and Military Bases.
We partner and collaborate with other forward thinking companies and communities that are interested in changing the outdated power and energy model of the past - inefficient and highly-polluting central power plants that average 33% efficiency - to a new paradigm and model for the future - community-based cogeneration and trigeneration energy systems at more than 90% efficiency - and therefore provides power and energy at lower prices while significantly reducing and even eliminating typical power plant emissions and greenhouse gas emissions.
Call/email us for more information about community-based cogeneration and trigeneration energy systems or about making your community, hospital, university or other commercial facility a model for the future.
At about 86% to 93% net system efficiency, our trigeneration power plants are about 300% more efficient at providing energy than your current electric utility. That's because the typical electric utility's power plants are only about 33% efficient - they waste 2/3 of the fuel in generating electricity in the enormous amount of waste heat energy that they exhaust through their smokestacks.
Trigeneration is defined as the simultaneous production of three energies: cooling, heating and power. Our trigeneration energy systems use the same amount of fuel in producing three energies that would normally only produce just one type of energy. This means our customers that have our trigeneration power plants have significantly lower energy expenses, and a lower carbon footprint.
Our smallest trigeneration power plant "basic" power plant is a 200 kW trigeneration system.
All of our trigeneration power plants can produce 42 degree F. chilled water (with a 20 degree chilled water option) as well as steam and hot water while generating at least 200 kW of power. We can build trigeneration power plants up to 10 MW and with system efficiencies approaching 100%.
Trigeneration Feasibility
Study and Analysis
Provides a solid basis for moving a new cogeneration or trigeneration project forward. The cost for this depends on the type, location, amount of time we require, and any additional requirements that may be included by the client.
Trigeneration is a technology whose time as come! Particularly for commercial clients who want to decrease their energy expenses and carbon footprint, while increasing energy efficiency and profits. This is possible as our trigeneration power plants surpass 90% net system efficiency.
While most new trigeneration power plants are capable of being fueled with clean natural gas, we are dedicated to ending the use of fossil fuels by providing renewable energy and renewable fuels such as B100 Biodiesel or Biomethane. Simultaneously, we are focused on reducing and eliminating greenhouse gas emissions and carbon dioxide emissions.
In association with the Renewable Energy Institute, affiliate companies and investors, we provide "turnkey" trigeneration power plant development services that range from initial Engineering Feasibility & Economic Analysis Studies through project installation, start-up and commissioning, Operations & Maintenance, and Long Term Service Agreements for the lifetime of our systems.
Trigeneration Technologies' trigeneration energy systems' net system's efficiencies surpass any potential competitor. We guarantee our standard trigeneration power plants will exceed 85% net system efficiency.
Our trigeneration plants can use renewable fuels such as Biomethane, B100 Biodiesel or Dimethyl Ether, instead of fossil fuels to run them. We also offer an optional selective catalytic reduction technology that takes NOx down to "non-detect" without the use of ammonia or urea on our new trigeneration plants.
Our range of services (some provided by affiliate companies or manufacturing suppliers) include:
Design/engineering, Engineering Feasibility and Economic Analysis Studies
Legal
Energy Service Agreements
Power Purchase Agreements
Build
Finance
Own
Operate
Maintain
Long Term Service Agreements