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At least 289 records · Page 16

Direct flue gas capture for algae cultivation and subsequent valorization: evaluating life cycle emissions and costs

Algae cultivation and processing is an important pathway under discussion within the broader CO 2 capture and utilization umbrella. Here, we discuss the results of a life-cycle analysis and techno-economic analysis of a pilot-scale photobioreactor that uses flue gas directly from natural gas or biogas combustion at 3–5% CO 2 concentration. The system requires minimal freshwater use as it has been successfully run with industrial wastewater and has a much smaller areal footprint compared with open pond cultivation. Introducing the flue gas directly to the photobioreactor avoids the need for CO 2 separation and pressurization, which is undertaken in many other algae cultivation systems. For the end-use of the biomass, the default case assumes conversion of algae to liquid fuels via hydrothermal liquefaction. The results indicate that the pilot-scale system has a higher cost, and comparable greenhouse gas emissions compared to pond-based systems, especially as the grid is anticipated to evolve to a lower carbon intensity. The costs of algae biofuel production range from $\$12–16$ per GGE at the current pilot scale. Depending on whether the source of the carbon is fossil or biogenic, the net emissions are 68 g CO 2 e per MJ and −4 g CO 2 e per MJ respectively. If the marine algae species is used instead of the freshwater species, it offers an additional 16 g CO 2 e per MJ carbon fixation in the form of calcium carbonate. The findings point to broadly desirable trends in GHG emissions and costs, while the discussion aims to shed light on areas that could further improve the scalability of the system.

20 FOSSIL-FUELED POWER PLANTS↗

Smart Phone Application to Compute Annual Solar Production of One Panel of a Plug-and-Play Solar Appliance (Cooperative Research and Development Final Report, CRADA Number CRD-19-00832)

The primary goal of the project is to develop a smart phone application (App) that will be available in both the Apple App Store and the Android store that displays results from the NREL's photovoltaic application, PVWatts Calculator, an application that estimates the energy production and cost of energy of grid-connected PV energy systems, and that will provide quick-response changes based on the orientation of the smart phone by the end user.

14 SOLAR ENERGY↗

Unique nanotechnology converts carbon dioxide to valuable products

Carbon capture and management are increasing challenges associated with global warming. Current commercial-scale carbon dioxide (CO 2 ) capture technologies are associated with a heavy economic penalty – they require at least one-third of the plant’s steam and power to operate. The objective of this project was to develop and test an innovative nanotechnology that can utilize CO 2 , from coal-based power systems or other industrial sources, as the primary feedstock to produce commercially valuable products to potentially offset the cost of CO 2 capture. The scope of this project includes conversion of CO 2 to nanomaterials using two unique amino acids in synthetic flue gases and the completion of a process design and techno-economic and lifecycle analyses to demonstrate the economic feasibility and environmental impact of the developed technology. The International Energy Agency predicts that fossil fuels will continue to play a significant role in meeting global energy demand. The goal of the research is to lead to an affordable and transformational CO 2 capture and reuse technology that will reduce the release of CO 2 thereby reducing global climate variability and its enormous impact on our daily lives.

01 COAL, LIGNITE, AND PEAT↗

System and technoeconomic analysis of solar thermochemical hydrogen production

Hydrogen is a promising energy carrier that can be obtained from various feedstocks using renewable energy sources. Direct solar thermochemical hydrogen (STCH) production by water splitting can utilize the full spectrum of solar radiation and has the potential to achieve high solar energy conversion efficiencies. Currently STCH research areas focus on material discovery. This paper evaluates the performance of various STCH materials in the context of a system platform to assess techno-economic benefits and gaps in the path to STCH scale-up. Additionally, to analyze the hydrogen production cost, a concentrating solar thermal (CST) system is introduced as a platform for integrating STCH materials and accommodating generalized thermochemical processes. The thermochemical process is based on a two-step STCH cycle using metal oxide that consists of a high temperature step for metal oxide reduction, followed by an oxidation step for water splitting at a lower temperature. A preferred configuration is to have the high temperature step occurring in a directly irradiated solar receiver reactor. To this end, we conceptualized a receiver design and associated solar field layout and investigated STCH operational boundaries, component costs and sensitivity parameters on the $2/kgH 2 goal of hydrogen production. The study explored system-related variables and factors associated with scaling up. The CST platform allows more comprehensive studies that encompass aspects of STCH materials and systems such as cost, hydrogen productivity and replacement frequency, alongside other system components like heliostat field, tower, and potential receiver costs.

08 HYDROGEN↗

Hydrogen Production Cost with Alkaline Electrolysis

Rigorous stakeholder-vetted techno-economic analysis was performed to assess the cost of hydrogen (H 2 ) produced using state-of-the-art Liquid Alkaline (LA) electrolysis. Projected high-volume, untaxed levelized cost of hydrogen (LCOH) range from 2020US $\$ 1.84$ to $\$ 2.88$/kg-H 2 depending on technology year, process design, and electrolyzer project scale, assuming an electricity price of $\$ 0.03$/kWh. The total installed capital cost for a LA electrolysis plant was estimated from bottom-up stack and installed cost models that account for purchased equipment, installation costs, site preparation, and general overhead costs. For this study, the LA electrolysis plant is assumed to be a stick-built, greenfield project developed by an EPC firm with electrolysis stacks purchased directly from an electrolysis stack manufacturer. The price of the electrolysis stacks is based on a bottom-up cost assessment with business markup for the electrolysis company fabricator. Methods from the Hydrogen Analysis (H 2 A) production model, a peer-reviewed national laboratory-developed discounted cash flow model, were used to calculate the LCOH production in 2020$/kg-H 2 . The baseline electricity price case ($\$ 0.03$/kWh) corresponds to average wholesale electricity prices currently possible in U.S. markets with plentiful wind. Similar low-cost electricity pricing is possible from solar Power Purchase Agreements (PPA) although these prices are typically limited by renewable energy capacity factors.

08 HYDROGEN↗

Production of Uranium from Seawater Using a Novel Polymer Adsorbent – Process Development and Cost Analysis (Final Scientific/Technical Report SBIR Phase II)

Research in developing techniques for extracting uranium from seawater is of considerable current interest. One reason which drives scientists to develop techniques of sequestering uranium from ocean is the prediction that the land-based uranium reserves would be depleted by the end of this century based on the current production rate. Uranium exists in seawater at a very low concentration (about 3 ppb) and as highly stable uranyl tris-carbonato complexes, primarily in the form Ca 2 [UO 2 (CO 3 ) 3 ]. Because of the enormous volume of seawater, the total amount of uranium in ocean is estimated to be a thousand times greater than the land-based uranium resources. As early as 1964, the idea of extracting uranium from seawater was discussed by Davies et al. in a Nature paper. In the past decades, many different materials were tested to evaluate their ability for sequestering uranium from seawater. Among them, amidoxime and carboxylate containing polymer fiber adsorbents appear most promising because of their high uranium adsorption capacity and stability in seawater. The carboxylate groups are necessary to make the polymer adsorbent hydrophilic whereas the amidoxime groups provide strong coordination sites for uranyl ions. Moreover, according to theoretical analysis, the adsorbability of uranium may involve synergistic effects of both amidoxime and carboxyl groups in the fiber adsorbent.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

High Temperature Erosion Modeling in Particle Based CSP Systems

1. Introduction. Wear and erosion damage of materials from solid particle and surface interactions is a major issue in various industries. Although more common in mining and oil and gas production, erosion is becoming a critical issue in renewable technologies as well such as particle based concentrated solar thermal power (CSP) systems. In particle based CSP systems, solid particles are used to absorb solar energy and as thermal storage. However, these particles may cause significant amount of wear to system components while through the system at high temperatures. This damage can be costly, and therefore, requires a greater understanding of solid particle erosion in CSP systems. Throughout the years, models and tools have been developed to predict and control erosion in industries such as oil and gas production. However, these erosion models and erosion prediction tools have been mainly developed based on erosion data for much higher velocities and lower temperatures, i.e. the operating conditions for which the existing models have been built are not pertinent to those expected in CSP system. It is known that erosion depends on many factors such as material properties, erodent particle properties, and particle impact speed and angle. However, the effect of temperature on erosion is not vastly investigated. In this work, a temperature-based correlation is introduced that will be used to modify the existing erosion models to predict erosion rates at velocities and temperatures relevant to Gen3 CSP systems. The existing models are first validated against erosion experiments run at low temperatures and low velocities. Subsequently, a temperature correction term is developed that can extend the existing models to high temperatures, based on the available experimental data showing the effect of temperature on impact erosion. 2. Erosion Models. Continuing sequence of impacts from solid particles on surfaces would result in loss of material due to mechanical interaction between solid surface and particles. Erosion equations have been developed to predict erosion under different conditions and erosion mechanism, including cutting and deformation erosion. These models are mainly either mechanistic, empirical, and semi-mechanistic models, when the latter combine the theory of the erosion mechanism and particle motion with the available experimental data. One of the first empirical correlation was introduced by American Petroleum Institute (API) Recommended Practice (RP) 14E [1]. This correlation was very conservative, and several improved empirical and semi-mechanistic equations were developed in the years following. More recently, the models introduced by Erosion/Corrosion Research Center (E/CRC) at the University of Tulsa and Arabnejad. et al. [2] are frequently used in the literature and industry, as they account for many parameters affecting erosion including particle impact speed and angle, material density and hardness, and particle size and shape. However, both these models were developed based on data at relatively high velocities and also do not take into account any mechanical changes in material associated with thermal cycling at high temperatures. 3. Erosion Prediction at High Temperatures. In this work, the accuracy of Arabnejad et al. model and E/CRC model is investigated to predict impact erosion at conditions relevant to Gen3 CSP systems. Two significant deviations expected in Gen3 systems compared to operating conditions used to build these models are particle impact velocities and system temperature. As a first step, the performance of these models was validated at low velocities and temperatures. Impact erosion experiments were conducted on SS316 coupons using HSP 40/70 ceramic particles. Assuming particle rate of 1 kg/s/m, 0.0254 m of particle curtain thickness, and particle velocity of 1.5 m/s in the system, an overall erosion of 0.59 mm/year was calculated. The experimental results were subsequently compared to those from computational simulations and erosion of 0.47 mm/year was obtained using the Arabnejad et al. model. The results indicated that the models work well at low velocities and low temperature conditions. To account for temperature effect, a mathematical correlation was developed using data published by DUCOM [3] for Inconel 600 eroded by alumina particles at high velocities. The correlation was applied to both Arabnejad et. al model and the E/CRC model. The prediction results from these modified models were within 20% of this experimental data. Predictions of of erosion by the modified E/CRC model at three different temperatures are made. Similar to the calculation at low temperature, a typical CSP system with 1 kg/s/m of particle flow rate per unit length of the particle curtain and a curtain thickness of 0.0254 m is assumed. The annual thickness loss calculations were run for different particle impact velocities, assuming a uniform particle impact area equal to the cross-sectional area of the curtain (particle-particle interactions and dispersion of particles are not considered in obtaining the results). It is observed that erosion increases exponentially as temperature increases. Furthermore, it is also noted that, erosion changes non-linearly with impact velocity. Currently, experiments are also being conducted to measure erosion of SS316 at 800 ºC with HSP 40/70 particles at low impact velocities. We expect to use the results from high temperature testing to further improve the temperature correlation function. Similar models are also being developed for abrasion erosion resulting from particle sliding along the surfaces as well as attrition from particle to particle and particle to surface interactions. References. [1] Institute, A. P. (1991). API Recommended Practice for Design and Installation of Offshore Production Platform Piping System, API RP 14E. [2] Arabnejad, H., Mansouri, A., Shirazi, S. A., and McLaury, B. S. (2015a). Development of mechanistic erosion equation for solid particles. Wear, 332–333, 1044–1050. http://doi.org/10.1016/j.wear.2015.01.031. [3] https://ducom.com/high-temperature-erosion-evaluating-sample-wear/

14 SOLAR ENERGY↗

In Silico Screening of CO 2 –Dipeptide Interactions for Bioinspired Carbon Capture

Carbon capture, sequestration and utilization offers a viable solution for reducing the total amount of atmospheric CO 2 concentrations. On an industrial scale, amine-based solvents are extensively employed for CO 2 capture through chemisorption. Nevertheless, this method is marked by the high cost associated with solvent regeneration, high vapor pressure, and the corrosive and toxic attributes of by-products, such as nitrosamines. An alternative approach is the biomimicry of sustainable materials that have strong affinity and selectivity for CO 2 . Bioinspired approaches, such as those based on naturally occurring amino acids, have been proposed for direct air capture methodologies. In this study, we present a database consisting of 960 dipeptide molecular structures, composed of the 20 naturally occurring amino acids. Furthermore, those structures were analyzed with a novel computational workflow presented in this work that considers certain interaction sites that determine CO 2 affinity. Density functional theory (DFT) and symmetry-adapted perturbation theory (SAPT) computations were performed for the calculation of CO 2 interaction energies, which allowed to limit our search space to 400 unique dipeptide structures. Using this computational workflow, we provide statistical insights into dipeptides and their affinity for CO 2 binding, as well as design principles that can further enhance CO 2 capture through cooperative binding.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

ChatHPC: Building the Foundations for a Productive and Trustworthy AI-Assisted HPC Ecosystem

ChatHPC democratizes large language models for the high-performance computing (HPC) community by providing the infrastructure, ecosystem, and knowledge needed to apply modern generative AI technologies to rapidly create specific capabilities for critical HPC components while using relatively modest computational resources. Our divide-and-conquer approach focuses on creating a collection of reliable, highly specialized, and optimized AI assistants for HPC based on the cost-effective and fast Code Llama fine-tuning processes and expert supervision. We target major components of the HPC software stack, including programming models, runtimes, I/O, tooling, and math libraries. Thanks to AI, ChatHPC provides a more productive HPC ecosystem by boosting important tasks related to portability, parallelization, optimization, scalability, and instrumentation, among others. With relatively small datasets (on the order of KB), the AI assistants, which are created in a few minutes by using one node with two NVIDIA H100 GPUs and the ChatHPC library, can create new capabilities with Meta’s 7-billion parameter Code Llama base model to produce high-quality software with a level of trustworthiness of up to 90% higher than the 1.8-trillion parameter OpenAI ChatGPT-4o model for critical programming tasks in the HPC software stack.

Young, Aaron [ORNL] (ORCID:0000000254484667)↗

Hybrid-Energy-Powered Electrochemical Ocean Alkalinity Enhancement Model: Plant Operation, Cost, and Profitability

Electrochemical ocean alkalinity enhancement is a form of marine carbon dioxide removal, a rapidly growing industry that is powered by efficient onshore or offshore energy sources. As more and larger deployments are being planned, it is important to consider how variable energy sources like tidal energy can impact plant performance and costs. An open-source Python-based generalizable model for electrodialysis-based ocean alkalinity enhancement has been developed that can capture key system-level insights of the electrochemistry, ocean chemistry, acid disposal, and co-product creation of these plants under various conditions. The model additionally accounts for hybrid energy system performance profiles and costs via the National Laboratory of the Rockies’ H2Integrate tool. The model was used to analyze an example theoretical plant deployment in North Admiralty Inlet, including how the plant is impacted by the available energy sources in the region and the scale at which plant costs are covered by the co-products it generates, such as recycled concrete aggregates, without requiring carbon credits. The results show that the example plant could be profitable without carbon credits at commercial scales of 100,000 to 1 million tons of carbon dioxide removal per year, so long as it uses low-cost electricity sources and either sells acid or recovers recycled concrete aggregates with about 1 molar acid concentrations, though more research is needed to confirm these results.

hybrid energy↗

Development of a Techno-Economic Analysis Framework for a Solar Thermochemical Fuel Production Process

Synthetic liquid fuels can provide a drop-in substitute for fossil-based fuels in sectors such as aviation and maritime, where electrification is not a viable option due to the need for high specific energy density. However, for these alternative fuels to be adopted at a commercial scale, their price must be competitive compared to their fossil-based counterparts. The reverse water-gas shift (RWGS) reaction offers a promising pathway, using hydrogen (sourced from electrolysis) and carbon dioxide as the feed and reacting to produce syngas - a mixture of H2 and CO at a specific ratio. Syngas is a useful precursor that can be converted into fuels and chemicals via known downstream processes, such as liquid transportation fuels via Fischer-Tropsch (FT) synthesis. The RWGS reaction is currently not applied in commercial scale, unlike the rest of the components in the process chain (electrolyzers and syngas-to-fuel synthesis units). The RWGS reaction poses several challenges due to its restrictive thermodynamics. Being an equimolar reaction, high temperatures and a large excess of H2 are needed to achieve reasonable CO2 conversion at equilibrium. This has detrimental effects on practical process implementation and the quality of syngas that can be produced, with direct effect on the energy and capital requirements, as well as the need for expensive downstream separation. In this work, we are proposing to develop a new concentrating solar thermal (CST) compatible RWGS reactor, performing the reaction in a 2-step chemical looping process using metal oxide at a temperature range of 600-800 degrees Celsius. By decoupling the reactor from the solar receiver, the Generation 3 (Gen3) CST technology could be utilized, together with its proposed thermal energy storage (TES) technology, benefitting from a good match to the required temperatures. CST technology is a viable option for supplying the heat that could be rapidly deployed in scale, thus being a good match to the gas-to-liquid (GTL) process which requires a large minimal scale to be commercially viable. The integration of TES with CST also allows operating the plant at large annual capacity factors and avoids multiple shutdown/startup cycles, thus fitting into the steady-state operation mode that most GTL processes require. The main innovation in the proposed design hinges on a countercurrent reaction design using a packed bed reactor. In 2019 Metcalfe et al. showed the benefits of countercurrent species exchange could be realized in a redox chemical-looping processes, by storing the favorable countercurrent chemical potential profiles in a packed bed of non-stoichiometric oxide. Metcalfe et al. applied this breakthrough concept to the WGS reaction, which is conventionally a co-feed catalytic process, showing a dramatic improvement. Bulfin et al. (2023) performed a similar proof-of-concept demonstration for the RWGS reaction using CeO2, achieving cumulative and peak CO2 conversions of 88% and 95%, respectively, compared to a thermodynamic limit of 58% for the co-feed catalytic process at the same conditions. In our new REGENLOOP project, we are developing a reactor prototype from the heat-exchange packed bed reactor-type, a commonly used reactor in the chemical industry. The endothermic heat of reduction will be supplied to the reactor using CST, while the same heat transfer fluid (HTF) mechanism will be used to extract the exothermic heat of oxidation. An array of multiple reactors is used to supply constant high-purity CO stream, that is then mixed with H2 from electrolysis to produce a high-purity syngas at the required composition. By removing the CO-CO2 separation after the RWGS process, significant energy and cost reduction can be achieved. A physics-based TEA framework is currently being developed, covering all the major plant processes, from the solar collection through storage, chemical looping RWGS, GTL, and auxiliary unit operations, up to the liquid hydrocarbon product. This modeling framework will utilize reduced-order models for the chemical looping RWGS and TES, CST modeling using SolarPILOT, and Aspen Plus for the GTL. By using this combined physics-based approach, the effects of design/operating parameters on the performance and cost can be elucidated. In our presentation, the modeling framework will be presented in detail, including preliminary cost predictions of using this plant configuration under a few selected relevant case studies. This study will be used to identify the major cost drivers, informing further system design and optimization needed to chart the way for a commercially viable pathway.

14 SOLAR ENERGY↗

Robust bidding strategy for aggregation of distributed prosumers in flexiramp market

Distributed prosumers (DPs) are the grid customers that own energy production/storage assets. Due to the flexibility and fast response of their assets, they can procure ancillary service products (ASP) in the wholesale market. An appealing ASP offered by California ISO in the real-time market (RTM) is flexiramp for which market participants do not submit direct offers, and the compensation is based on their energy opportunity costs. Here in this report, we propose a bidding strategy model for DP aggregator participation in the RTM considering energy and flexiramp. First, we develop a risk-averse optimization to determine the optimal energy and reserve product to trade in day-ahead market while considering proper amounts of flexiramp to trade in the RTM. In the RTM, to obtain optimal amounts of energy and flexiramp, the aggregator must submit hourly multi-level price-quantity energy bids for multiple RTM intervals with 15 min time-steps. On this basis, we propose a robust hourly economic bidding strategy model that determines the optimal energy bids in the RTM. We develop an adjustable robust counterpart of the model to address the RTM energy and flexiramp price uncertainties. The simulation results justify the efficacy of our proposed framework in gaining profits from the wholesale market.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Final Report on Aerosol Pretreatment Technology Performance and Benchmarking

Solvent-based post-combustion CO 2 capture (PCC) technology remains one of the leading methods to combat global CO 2 emissions produced from large-scale coal-fired power production. Advanced solventbased PCC technology has made significant improvements in design and performance that reduce capital and operating costs to enable its commercial use. Key to low cost, manageable logistics, and environmentally safe operation of solvent-based PCC technology are minimal solvent losses from the process through the treated gas stream exiting PCC plant absorbers. High flue gas aerosol particle concentrations (>10 5 particles/cm 3 ) for particles in the range of 70-200 nm have been shown to cause significant amine solvent losses for solvent-based PCC processes through several mechanisms including absorption of solvent and water into growing aerosol particles. Flue gas aerosol pretreatment technology is the only realistic and economically attractive method to reduce very high aerosol particle concentrations (>10 7 particles/cm 3 ) to enable solvent-based PCC for existing power plants lacking sufficient particle removal systems, such as baghouses. The overall goal of this project was to design, construct, independently test, and evaluate three flue gas aerosol pretreatment technologies identified to significantly reduce high aerosol particle concentrations (>10 7 particles/cm 3 ) in the 70-200 nm particle size range: (1) a novel, high-velocity water injection spray concept developed by RWE and tested by Linde, (2) an innovative electrostatic precipitator (ESP) device with optimized operating conditions developed by Washington University in St. Louis (WUSTL), and (3) a non-regenerative sorbent-based filter technology developed by InnoSepra for SO x and NO x removal from coal-fired power plant flue gas. Each technology has been validated with tests on 500-1000 scfm of actual coal-fired flue gas and evaluated in terms of particle removal efficiency (%), cost competitiveness, and environmental impact. Aerosol measurements were performed upstream and downstream of each aerosol reduction unit during independent testing of each technology using advanced instrumentation and analytical methods provided by WUSTL. To perform aerosol measurements, isokinetic probes were inserted into flanged pipes attached to the flue gas piping, and a small suction pump was used to sample gas containing aerosol particles. Aerosol particle number concentrations (# particles/cm 3 ) and size distributions were then measured using a scanning mobility particle sizer (SMPS, TSI Inc.) for very fine particles (<1,000 nm) and a particle counter manufactured by GRIMM for particles larger than 1,000 nm. This report summarizes the aerosol removal performance results from pilot scale testing of each technology. Performance results have been benchmarked against pre-defined targets and other flue gas aerosol pretreatment technologies with documented performance. Linde Gas North America LLC has been the prime contractor to DOE responsible for overall project management and provided the design for the high-velocity water spray-based aerosol removal technology based on a design concept developed by the German utility company RWE.

20 FOSSIL-FUELED POWER PLANTS↗

Algae to HEFA : Economics and potential deployment in the United States

Abstract To reach the goals set by the US Department of Energy's Sustainable Aviation Fuel (SAF) Grand Challenge, currently available feedstocks may be insufficient. Giving priority to developing, prototyping and reducing the cost of algal feedstock before investing and lining up locations is important. As the production of algal feedstocks advances, a simplified conversion approach using more mature technologies can help reduce the investment risk for algae‐based fuels. Reducing process complexity to the steps described here [namely, conversion of lipids to HEFA (hydroprocessed esters and fatty acids) fuels and relegating the remainder of the biomass to anaerobic digestion or food/feed production] enables the near‐term production of algal SAF but presents challenging economics depending on achievable cultivation costs and compositional quality. However, these economics can be improved by present‐day policy incentives. With these incentives, the modeled algae‐to‐HEFA pathway could reach a minimum fuel selling price as low as $4.7 per gasoline gallon equivalent depending on the carbon intensity reduction that can be achieved compared with petroleum. Uncertainty about algal feedstock production maturity in the current state of technology and the future will play a large role in determining the economic feasibility of building algae‐to‐HEFA facilities. For example, if immaturity increases the feedstock price by even 10%, SAF production in 2050 is about 58% of the production which could have been achieved with mature feedstock. Additionally, growth in this conversion pathway can be notably boosted through the inclusion of subsidies, and also through higher‐value coproducts or higher lipid yields beyond the scope of the process considered here.

09 BIOMASS FUELS↗

Commercial, industrial, and institutional discount rate estimation for efficiency standards analysis: Sector-level data 1998–2021

Underlying each of the Department of Energy’s (DOE’s) federal appliance and equipment energy conservation standards are a set of complex analyses of the projected costs and benefits of regulation. Any new or amended standard must be designed to achieve significant additional energy conservation, provided that it is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A)). DOE determines economic justification based on whether the benefits exceed the burdens, considering a variety of factors, including the economic impact of the standard on consumers of the product and the savings in lifetime operating cost compared to any increase in price or maintenance expenses (42 U.S.C. 6295(o)(2)(B)). As part of this determination, DOE conducts a Life-Cycle Cost (LCC) analysis, which models the combined impact of appliance first cost and operating cost changes on a representative commercial building sample in order to identify the fraction of customers achieving LCC savings or incurring net cost at the considered efficiency levels. Thus, the commercial discount rate value(s) used to calculate the present value of energy cost savings within the LCC model implicitly plays a role in estimating the economic impact of potential standard levels. This report provides an in-depth discussion of the commercial discount rate estimation process. It is an update to previous reports on estimating commercial discount rates from firm-level financial data (Fujita, 2016). Major topics covered in this report include: Discount rate estimation methods and rationale; -Data sources used and data limitations; -Discount rate distributions for use in standards analysis; -Discount rate estimation methods and distributions specific to the small business subgroup analysis. Going forward, this report will be updated as data allow and analyses necessitate.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Commercial, industrial, and institutional discount rate estimation for efficiency standards analysis: Sector-level data 1998–2022

Underlying each of the U.S. Department of Energy’s (DOE’s) federal appliance and equipment energy conservation standards are a set of complex analyses of the projected costs and benefits of regulation. Any new or amended standard must be designed to achieve significant additional energy conservation, provided that it is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A)). DOE determines economic justification based on whether the benefits exceed the burdens, considering a variety of factors, including the economic impact of the standard on consumers of the product and the savings in lifetime operating cost compared to any increase in price or maintenance expenses (42 U.S.C. 6295(o)(2)(B)). As part of this determination, DOE conducts a life-cycle cost (LCC) analysis, which models the combined impact of appliance first cost and operating cost changes on a representative commercial building sample to identify the fraction of customers achieving LCC savings or incurring net cost at the considered efficiency levels. Thus, the commercial discount rate value(s) used to calculate the present value of energy cost savings within the LCC model implicitly plays a role in estimating the economic impact of potential standard levels. This report provides an in-depth discussion of the commercial discount rate estimation process. It is an update to previous reports on estimating commercial discount rates from firm-level and sector-level financial data (e.g., Fujita, 2021, 2016). Major topics covered in this report include the following: -Discount rate estimation methods and rationale -Data sources used and data limitations -Discount rate distributions for use in standards analysis -Discount rate estimation methods and distributions specific to the small business subgroup analysis A version of this analysis was most recently released in 2022. Going forward, this report will be updated as data allow and analyses necessitate.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Commercial, industrial, and institutional discount rate estimation for efficiency standards analysis: Sector-level data 1998–2023

Underlying each of the U.S. Department of Energy’s (DOE’s) federal appliance and equipment energy conservation standards are a set of complex analyses of the projected costs and benefits of regulation. Any new or amended standard must be designed to achieve significant additional energy conservation, provided that it is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A)). DOE determines economic justification based on whether the benefits exceed the burdens, considering a variety of factors, including the economic impact of the standard on consumers of the product and the savings in lifetime operating cost compared to any increase in price or maintenance expenses (42 U.S.C. 6295(o)(2)(B)). As part of this determination, DOE conducts a life-cycle cost (LCC) analysis, which models the combined impact of appliance first cost and operating cost changes on a representative commercial building sample to identify the fraction of customers achieving LCC savings or incurring net cost at the considered efficiency levels. Thus, the commercial discount rate value(s) used to calculate the present value of energy cost savings within the LCC model implicitly plays a role in estimating the economic impact of potential standard levels. This report provides an in-depth discussion of the commercial discount rate estimation process relying on the Capital Asset Pricing Model (CAPM) to estimate a business’ cost of equity, and by adding a risk adjustment factor to the risk-free rate associated with long-term U.S. Treasury bonds to estimate their cost of debt. It is an update to previous reports on estimating commercial discount rates from firm-level and sector-level financial data (e.g., Fujita, 2021, 2016). Major topics covered in this report include the following: • Discount rate estimation methods and rationale • Data sources used and data limitations • Discount rate distributions for use in standards analysis • Discount rate estimation methods and distributions specific to the small business subgroup analysis.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Making coal relevant for small scale applications: Modular gasification for syngas/engine CHP applications in challenging environments

Small-scale coal gasification technology, coupled to a reciprocating engine generator, has the potential for making coal a cost competitive resource for meeting the flexible energy needs and resiliency requirements of utilities across the United States. To maintain grid stability and reliability, electrical generation must be regulated to match the load at the proper voltage and frequency. With the expansion of intermittent sources into the grid, such as wind and solar, frequency and voltage regulation become increasingly important and challenging. This work presents the results of a Front End Engineering Design (FEED) effort to detail the engineering and preliminary economics of a small-scale, air blown, fixed-bed gasification process, operating at near-atmospheric pressure, with gas cleanup to provide syngas and pyrolysis liquid fuels for use in reciprocating engine generators for combined heat and power at the University of Alaska Fairbanks. A very detailed assessment of capital and operating costs allows the evaluation of a levelized cost of electricity of 208.06 $/MWh, which can be reduced through the selling of by-products (steam for heating purposes and pyrolysis liquids to be used for power generation in an existing diesel engine). Here, a combined sensitivity analysis, based on the Monte Carlo approach, has been carried out to evaluate the effects of the uncertainties (capital and operating costs and plant annual availability) on the LCOE.

01 COAL, LIGNITE, AND PEAT↗