COMBINED HEAT AND POWER: THE PROFITABLE SOLUTION TO INDUSTRIAL BOILER MACT COMPLIANCE, 2013 PEERS Conference

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The Environmental Protection Agency’s (EPA) rules regarding Industrial Boiler MACT effective January 2013, will force paper companies that burn coal, oil, biomass to generate thermal energy for paper processing to make critical decisions about the future of their facilities. These mills have four primary options: install emissions controls, retrofit or replace impacted boilers with natural gas firing, shutdown impacted boilers or replace impacted boilers with natural gas fired Combined Heat and Power (CHP). The CHP compliance option offers a profitable solution for MACT compliance because it produces electric power in addition to the required process steam load. This paper presents the technical and economic case for Combined Heat and Power including the unique opportunities for integration with the paper mill’s existing steam and power generating resources. Aspects of CHP project development are discussed including: technical concepts, project economics, financing, permitting and energy contracts.