Heat source and application-dependent levelized cost of decarbonized heat
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Gilbert, Tristan↗
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The value of integrating a geothermal district heating system into a microgrid
As electrical grids increasingly rely on variable renewable energy, maintaining reliability and cost efficiency becomes more complex. To address these challenges, this study analyzed the integration of geothermal district heating as a grid-responsive thermal resource within a microgrid in Tuttle, Oklahoma. Building energy modeling using EnergyPlus estimated annual district heating demand at 2.9 GWh, with a peak load of 2.8 MW th . Techno-economic analyses were conducted to meet the heating demand under three geothermal scenarios, varying by production depth, flow rate, and thermal output, each supplemented by natural gas peaking boilers. In parallel, equivalent electrical load profiles were developed using typical coefficients of performance (COPs) for air-source heat pumps and electric boilers to establish an electrified baseline scenario. A complete end-use electrical load profile was also developed for the microgrid using Cambium dataset. The modeling results demonstrated reliable and economic operation of the geothermal systems over 30 years, with COPs ranging from 2.6 to 8.9 and the lowest levelized heating cost at $\$$54.6/MWh. Geothermal integration reduced electricity consumption by up to 94.7 % compared to the non-geothermal base case, yielding annual energy savings of up to $\$$803 k. Avoided grid costs ranged from $\$$65 k–$\$$147 k per year, with individual events avoiding up to $\$$4,863 per hour. Grid-responsive operation further reduced wholesale energy costs by 53–56 %. These findings demonstrate geothermal heating, traditionally treated as a non-grid-responsive thermal resource, can be reconfigured to support dynamic grid services, offering a scalable pathway to enhance reliability and reduce costs in renewable-rich microgrids and district heating networks.
15 GEOTHERMAL ENERGY↗
Optimizing Cornell’s future geothermal district heating performance through systems engineering and simulation
Cornell University’s intention to lower its carbon footprint has motivated this engineering evaluation of using low-temperature geothermal energy to supply heat to the campus district energy system. Optimal selection and operation of heat pumps can significantly improve system performance. To support this analysis, we model the quantitative relationships between heat pump configurations and source flow, supply and distribution temperatures, facility heating design options, output heat generation, and carbon abatement outcomes. A systems approach is used for analysis, troubleshooting, and improvement of the model. The result of this effort is a dynamic tool that appropriately responds to hourly thermal demand and communicates energy response for techno-economic analysis. Simulations indicate that a single well-pair in the local Basement Contact Zone reservoir can satisfy almost 68% of annual thermal demand at nearly 20 MWth average capacity while remaining financially competitive compared to conventional heating with levelized cost of heating (LCOH) as low as $4.55/MMBTU ($15.53/MWh th ). A direct-use scheme with heat pump augmentation provided more carbon abatement and 50 to 150% more annual heat supply than one without augmentation. Exploration of three and four well-pair scenarios prove the capability to achieve 50 MW th baseload heating capacity with competitive LCOH and significant carbon reductions.
15 GEOTHERMAL ENERGY↗
Renewable Thermal Energy Systems Designed for Industrial Process Solutions in Multiple Industries
Industrial decarbonization is a key area that must be accelerated, to foster the removal of fossil fuels from the provision of heat, especially at low temperatures less than 300 degrees C. This paper looks at the results of two case studies for understanding the economics and potential for renewable thermal energy systems (RTES), particularly in hybrid configurations to provide industrial process heat (IPH). The first case study looks at heat pumps for district heating, and the second, the use of linear Fresnel collectors (LFCs) coupled with phase change material (PCM) thermal energy storage (TES) for direct steam generation (DSG). Using district heat as an input for the heat pump, three cases were run harvesting energy from ambient water (5 degrees C), sewage water (20 degrees C), and a solar collector (35 degrees C). Accounting for elevated costs of infrastructure for each heat source, the levelized cost of heat (LCOH) of the first case study ranged from $4-$15 per million British Thermal Units (MMBTU). For the second case study modeling LFCs with PCM and TES, the results show that a LCOH of $9-$15 per MMBTU is possible, depending on the direct normal irradiance.
concentrated solar thermal↗
Renewable Thermal Energy Systems Designed for Industrial Process Solutions in Multiple Industries: Preprint
Industrial decarbonization is a key area that must be accelerated, to foster the removal of fossil fuels from the provision of heat, especially at low temperatures less than 300 degrees C. This paper looks at the results of two case studies for understanding the economics and potential for renewable thermal energy systems (RTES), particularly in hybrid configurations to provide industrial process heat (IPH). The first case study looks at heat pumps for district heating, and the second, the use of linear Fresnel collectors (LFCs) coupled with phase change material (PCM) thermal energy storage (TES) for direct steam generation (DSG). Using district heat as an input for the heat pump, three cases were run harvesting energy from ambient water (5 degrees C), sewage water (20 degrees C), and a solar collector (35 degrees C). Accounting for elevated costs of infrastructure for each heat source, the levelized cost of heat (LCOH) of the first case study ranged from $4-$10 per million British Thermal Units (MMBTU). For the second case study modeling LFCs with PCM and TES, the results show that a LCOH of $9-$15 per MMBTU is possible, depending on the direct normal irradiance.
concentrated solar thermal↗
Markets and Economics for Thermal Power Extraction from Nuclear Power Plants Aiding the Decarbonization of Industrial Processes
This report analyzes the domestic industrial heat markets which may be plausible for using heat extracted from existing LWRs, contributing to the decarbonization of industry. It conceptualizes ideas for a future energy park centered around an LWR with various participating synergistic industries with extensive heat and material integrations with the LWR. It also presents comparison calculations for energy storage options and the levelized cost of heat from an LWR versus the levelized cost of heat from a conventional natural gas boiler and shows under what circumstances heat from LWRs is competitive with and beats natural gas.
22 GENERAL STUDIES OF NUCLEAR REACTORS↗
Dynamic optimization with flexible heat integration of a solar parabolic trough collector plant with thermal energy storage used for industrial process heat
There is an increasing need to reduce fossil fuel consumption used for industrial process heat to slow the effects of climate change. Using solar thermal heat is a viable way to replace fossil fuel use, but solar industrial process heat plants have limited implementation due to large upfront costs and inefficiencies from the inherent variability from solar energy. Having more flexible and optimized control over these plants can enable them to be more efficient. Here in this work, a solar industrial process heat plant with thermal energy storage that can flexibly collect and deliver heat to two industrial processes (flexible heat integration) is dynamically modeled with control setpoints found by a dynamic optimization method. The optimized case can increase the solar efficiency of the plant by 7.5% on average relative to a base case. The results show that it is best to collect heat at lower temperatures for all but ideal solar conditions, only medium to high quality heat should be stored in large quantities, and exchanging heat with a lower temperature heat sink is generally more efficient. The optimized case is able to reduce the levelized cost of heat of the plant to $31.83/MWh th compared to a base case value of $34.10/MWh th . The optimized case can reduce emissions by 22.2% compared to a plant which uses only natural gas. This work shows that dynamic optimization with flexible heat integration can be a cost-effective way to increase efficiency so that more of these types of plants can be implemented.
14 SOLAR ENERGY↗
Design-Point Techno-Economics of Brayton Cycle PTES for Combined Heat and Power
Pumped thermal energy storage (PTES) systems are grid batteries that use heat pumps to create both hot and cold thermal energy stores when there is excess electricity and then use a power cycle to convert the thermal energy into electricity when there is demand for electricity. In normal operation, Joule–Brayton PTES discharges low-grade heat at temperatures useful for thermal energy consumers like district and industrial heating. Furthermore, PTES designs, like conventional combined heat and power (CHP) technology, can be modified to sacrifice some round-trip efficiency (RTE) to increase the temperature of heat rejection. Here, this paper uses design-point performance and cost models that provide a detailed understanding of the efficiency and cost tradeoffs of rejecting heat at various temperatures in ideal-gas Brayton PTES configurations. First, we keep the heat rejection in its nominal location in the PTES system: in the discharge cycle after the low-pressure exit of the recuperator before the cold-storage heat exchanger. Next, we move the heat rejection to the discharge turbine exit. We define design-point metrics that isolate both the cost and performance penalty associated with the hotter heat rejection and attribute it exclusively to the heat economic metrics. Finally, we estimate the performance of electric heater technology to generate heat at equivalent temperatures. We find that the levelized cost of heat (LCOH), including the cost of thermal energy storage (TES) buffering the PTES and heat off-taker, compares favorably versus electric technologies and is less than the cost of natural gas for low temperature scenarios and competitive with the cost of natural gas in some regions of the contiguous U.S. in high temperature scenarios.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Design-Point Techno-Economics of Brayton Cycle PTES for Combined Heat and Power
Pumped thermal energy storage (PTES) systems are grid batteries that use heat pumps to create both hot and cold thermal energy stores when there is excess electricity and then use a power cycle to convert the thermal energy into electricity when there is demand for electricity. In normal operation, Joule-Brayton PTES discharges low-grade heat at temperatures useful for thermal energy consumers like district and industrial heating. Furthermore, PTES designs, like conventional combined heat and power (CHP) technology, can be modified to sacrifice some round-trip efficiency RTE to increase the temperature of heat rejection. This paper uses design-point performance and cost models that provide a detailed understanding of the efficiency and cost trade-offs of rejecting heat at various temperatures in ideal-gas Brayton PTES configurations. First, we keep the heat rejection in its nominal location in the PTES system: in the discharge cycle after the low-pressure exit of the recuperator before the cold-storage heat exchanger. Next, we move the heat rejection to the discharge turbine exit. We define design-point metrics that isolate both the cost and performance penalty associated with the hotter heat rejection and attribute it exclusively to the heat economic metrics. Finally, we estimate the performance of electric heater technology to generate heat at equivalent temperatures. We find that the levelized cost of heat, including the cost of thermal energy storage (TES) buffering the PTES and heat off-taker, compares favorable versus electric technologies and is less than the cost of natural gas for low temperature scenarios and competitive with the cost of natural gas in some regions of the contiguous United States in high temperature scenarios.
CHP↗
Simulating a solar parabolic trough collector plant used for industrial process heat using an optimized operating scheme that utilizes flexible heat integration
This study focuses on the modeling and simulation of a novel design and operation of a solar industrial process heat (SIPH) plant that uses a parabolic trough collector system for generating process heat. The SIPH plant incorporates flexible heat integration (FHI) by having two options for heat sinks as well as a flexible collection temperature for the heat transfer fluid. Leveraging the degrees of freedom created by FHI allows an optimized operating scheme to be created which maximizes the solar heat delivered to the industrial processes. Yearly results for a 27 MW-t plant located in Salt Lake City, UT are simulated for a base case and a case utilizing optimized FHI. For the main process temperature case presented, FHI increases the total solar share by 13.0% and reduces the levelized cost of heat of the SIPH plant by 10.4% relative to the base case. Furthermore, three case study days are presented which highlight how FHI maximizes solar share, specifically during mornings, afternoons, and days with intermittent solar conditions. An environmental analysis is also performed showing that the SIPH plant can reduce harmful emissions by 15.4% for the base case and 17.4% for the FHI case compared to a plant that only utilizes a natural gas furnace for process heat. Overall, the work thoroughly explores an effective operating scheme for a SIPH plant, helping to make it more economical and environmentally beneficial.
14 SOLAR ENERGY↗
Chapter 3: Power Conversion Technologies: The Advent of Power-to-Gas, Power-to-Liquid, and Power-to-Heat
Decreasing levelized costs of renewable electricity coupled with expanding deployment are enabling a rapid reduction in the carbon intensity of the electrical grid. However, this transition is occurring more slowly in other sectors, including transportation and manufacturing. Power-to-X technologies provide a means to accelerate this transition in those sectors by converting renewable electricity into chemical energy and heat. In this chapter, we provide an overview of the existing and emerging Power-to-X technologies covering the production of methane (hydrogen is covered in Chapter 5) (i.e. Power-to-Gas), chemicals and fuels (e.g. ammonia, carbon monoxide, ethylene, methanol, ethanol, and formic acid), and heat (e.g. for industrial and building applications); discuss the overarching and technology-specific challenges and opportunities; and highlight the implications of deployment of Power-to-X technologies on power generation. We emphasize that Power-to-X technologies do exist today at various stages of development and commercialization and that a transition to lower carbon intensity for the transportation and manufacturing sectors is possible, but it requires immense growth of the electrical grid and appropriate systems design and operations.
ENERGY PLANNING, POLICY, AND ECONOMY↗
Socio-Techno-Economic Feasibility of Deep Geothermal with EGS for Residential District Heating in the Northeastern United States
In this paper, we present socio-techno-economic simulation results for enhanced geothermal system (EGS) district heating systems in the northeastern United States. We applied the geospatial Distributed Geothermal Market Demand (dGeo) tool coupled with GEOPHIRES to evaluate the feasibility of geothermal deep direct-use, utilizing EGS reservoirs for providing residential heating with district heating systems. The results were combined with JEDI results to assess social impacts. Simulation results assuming doublet EGS reservoirs with target production temperature of 80 degrees C and newly constructed district heating systems indicate a wide range in system levelized cost of heat (LCOH) values ranging from ~$15/MMBtu to over $1,000/MMBtu, with most the attractive regions urban areas with high total thermal demand and high thermal demand density. We estimate about 60 GWth in potential installed capacity with LCOH values under $50/MMBtu and 100 GWth in potential capacity with LCOH values under $100/MMBtu, respectively.
15 GEOTHERMAL ENERGY↗
Economic solution for low carbon process heat: A horizontal, compact high temperature gas reactor
In 2018, nuclear energy generated 55% of United States’ and one third of the world’s carbon free electricity, making nuclear energy a key tool in efforts to mitigate climate change before 2050. However, the current nuclear technology, light water reactors (LWRs), is limited to 300°C, so it cannot be used to decarbonize industrial process heat which accounts for 12% of US greenhouse gas emissions. High temperature gas reactors (HTGRs) can meet the high temperature demand with carbon free nuclear heat. The estimated cost of HTGRs, such as the Next Generation Nuclear Plant (NGNP), are even higher than state-of-the-art LWRs. In this paper, we expanded our nuclear cost estimating tool to include HTGRs and find that the NGNP overnight capital costs were 32% higher than an advanced LWR per unit capacity. The higher cost will naturally result in larger risk to cost overrun as recently experienced by larger LWRs in western nations. With a design-to-build mindset to minimize cost and construction risk, we introduce the horizontal, compact HTGR (HC-HTGR). The reactor core and steam generator are mounted horizontally on rails and in-line with one another, decreasing the size of the reactor building relative to the power capacity four times when compared to traditional HTGRs. The HC-HTGR reduced overnight civil structure costs by 42%, indirect costs by 38%, and total capital costs by 20% from NGNP. We discussed the required engineering of new systems for the HC-HTGR including vessel supports, the reactor cavity cooling system, and steam generator design. Finally, we estimated the fuel and operations costs of the HC-HTGR, and a survey of low-carbon industrial process heat technology showed the HC-HTGR can deliver a highly competitive levelized cost of heat in the range of $6.13–12.48/GJ.
21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗
Geothermal District Heating in the United States: 2021 Update
As of 2021, there are 23 geothermal district heating (GDH) systems in the United States. Most are over 30 years old. This paper presents an overview of GDH development in the United States and the performance of GDH systems over time. Calculations of the estimated levelized cost of heat (LCOH) for existing U.S. GDH systems were made using NREL's GEOPHIRES tool. Estimated LCOH for existing U.S. GDH systems ranges from $15 to $105/MWhth. This paper explores other factors in GDH development such as resource and system size, capacity factor, and the role of policy. U.S. GDH utilization and deployment are compared to worldwide trends. Results show that the market for GDH in the United States has been weak over the past 40 years due to the combination of inexpensive fossil fuel alternatives (mostly natural gas), lack of incentives focused on heating/cooling, and other factors. Future opportunities for increased GDH deployment in the United States related to increased demand for low-carbon heating and cooling solutions (driven by decarbonization goals in the residential, commercial and industrial heating/cooling sectors, and particularly aggressive ones on college campuses) are outlined. Lastly, this paper identifies policy mechanisms that have been implemented in other countries to incentivize GDH (such as financial incentives targeting GDH, geothermal risk reduction mechanisms, carbon prices benefiting low-carbon heat production, and others).
geothermal district heating↗
Techno-economic analysis and environmental benefits of solar industrial process heating based on parabolic trough collectors
In this work, detailed techno-economic and environmental analyses are conducted for employing a 5 MWt parabolic trough-based solar industrial process heat (SIPH) plant in Salt Lake City, Utah. According to the results, an optimum solar multiple of 1.5 was determined, allowing the plant to generate annual thermal energy of 15389.24 MWth with a capacity factor of 35.1% and levelized cost of heat (LCOH) of $\$ 26.3$/MWth. Considering a 30% investment tax credit and a 30% reduction in the total installed cost could reduce the LCOH to $\$ 19.30$/MWth and $\$ 18.52$/MWth, respectively. Employing parabolic trough collectors could avoid emissions of 3,582,422.47 kg, 147.99 kg, 3,341.66 kg, and 14.32 kg for CO 2 , PM, NOx, and SO 2 , respectively per year compared to a natural gas-based plant. Further, it also caused an annual external cost savings of between $\$ 99,900$ and $\$ 357,004$. Including the external costs in the LCOH analysis shows that the SIPH plant is economically competitive with a natural gas-based plant, further demonstrating its value. A further comparison demonstrated the economic superiority of a parabolic trough-driven IPH plant over a photovoltaic-driven electric boiler plant. In summary, with reducing installed costs and providing incentives, parabolic trough-driven IPH plants will be an economically and environmentally viable option.
14 SOLAR ENERGY↗
Cyclic Thermal and Structural Testing of a Hot Particle Storage Bin
Thermal energy storage is a key element in concentrating solar energy systems. In 2017 a Roadmap toward a third-generation system that could meet the SunSHOT goals of 0.06 $/kWe recommended increasing temperatures to > 700° C for heat transfer media to in-crease thermal efficiencies and lower levelized costs of heat. In 2021, the U.S. Department of Energy selected the particle pathway, G3P3, to build a 1 MWt prototype solar tower with 6 MWh thermal energy storage at the NSTTF in Albuquerque, NM. Of the primary components, the falling particle receiver, and particle-to-sCO2 heat exchanger have been demonstrated at the 250 kWt capacity. The storage component is now being demonstrated as part of the G3P3-USA and G3P3-KSA pilot plants. Storage bin liner materials have been demonstrated by KSU in 2016 and 2019. A flowing particle storage container was demonstrated in 2020 by KSU. The testing presented in this work will be the first to test the particle to wall interactions with mono-lithic refractory insulation, and to validate a transient thermal transport model with the unique kinetics of bulk solids in funnel-flow where cooler particles near the walls flow inward toward a hot central flow channel. This work will also de-risk and characterize the specific design of the G3P3-USA storage bin.
Sment, Jeremy↗
Techno-Economic Analysis for a Potential Geothermal District Heating System in Tuttle, Oklahoma: Preprint
Geothermal deep direct use (DDU) has potential across a wide swath of the United States but is underutilized due to challenging project economics associated with developing a deep geothermal resource for a large-scale and variable heat demand. The National Renewable Energy Laboratory (NREL) and University of Oklahoma evaluated the feasibility of a geothermal district heating (GDH) and cooling system in two schools and 250 houses by utilizing existing oil and gas (O&G) wells in Tuttle, Oklahoma. Heating and cooling demand in the two schools and a typical single-family house were modeled using EnergyPlus building energy simulation software. The modeling results indicated that annual heating demand in two schools and 250 houses is approximately 2.61 GWhth, and cooling demand in the two schools is approximately 2.65 GWhth. In this scope, the techno-economic analysis (TEA) was conducted using the GEOPHIRES tool combined with the TOUGH2 reservoir simulator. The reservoir performance, including geothermal heat production capacity, was modeled by the reservoir simulator TOUGH2. Then, levelized cost of heat (LCOH) was calculated using GEOPHIRES version 3.0, which includes new features such as hourly heat load optimization and peak performance evaluation. Geothermal reservoir temperature was estimated as 90.5 degrees C at a total depth of 3.3 km by the regional average temperature gradient of 22.8 degrees C/km and validated by cation geothermometer calculations. Four production scenarios with two different well configurations and two different heat load profiles have been developed for well flow rates ranging between 3.1 kg/s and 9.3 kg/s. The LCOH of the district heating and cooling system was calculated between $95 and $210/MWh ($28/MMBtu to $62/MMBtu) for four different production scenarios. Typical natural gas prices for residential customers in Oklahoma have ranged from 9 to 19 $/MMBtu over the past decade, which indicates a challenge for deployment of such a GDH system.
deep direct-use↗
Techno-Economic Analysis for a Potential Geothermal District Heating System in Tuttle, Oklahoma
Geothermal deep direct use (DDU) has potential across a wide swath of the United States but is underutilized due to challenging project economics associated with developing a deep geothermal resource for a large-scale and variable heat demand. The National Renewable Energy Laboratory (NREL) and University of Oklahoma evaluated the feasibility of a geothermal district heating (GDH) and cooling system in two schools and 250 houses by utilizing existing oil and gas (O&G) wells in Tuttle, Oklahoma. Heating and cooling demand in the two schools and a typical single-family house were modeled using EnergyPlus building energy simulation software. The modeling results indicated that annual heating demand in two schools and 250 houses is approximately 2.61 GWhth, and cooling demand in the two schools is approximately 2.65 GWhth. In this scope, the techno-economic analysis (TEA) was conducted using the GEOPHIRES tool combined with the TOUGH2 reservoir simulator. The reservoir performance, including geothermal heat production capacity, was modeled by the reservoir simulator TOUGH2. Then, levelized cost of heat (LCOH) was calculated using GEOPHIRES version 3.0, which includes new features such as hourly heat load optimization and peak performance evaluation. Geothermal reservoir temperature was estimated as 90.5 degrees C at a total depth of 3.3 km by the regional average temperature gradient of 22.8 degrees C/km and validated by cation geothermometer calculations. Four production scenarios with two different well configurations and two different heat load profiles have been developed for well flow rates ranging between 3.1 kg/s and 9.3 kg/s. The LCOH of the district heating and cooling system was calculated between $95 and $210/MWh ($28/MMBtu to $62/MMBtu) for four different production scenarios. Typical natural gas prices for residential customers in Oklahoma have ranged from 9 to 19 $/MMBtu over the past decade, which indicates a challenge for deployment of such a GDH system.
deep direct-use↗