Gas-Fired Distributed

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 Acknowledgments

This first edition of Gas-Fired Distributed Energy Resource Technology Characterizations was
prepared through a collaboration of the National Renewable Energy Laboratory (NREL), the
Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) and
the Gas Research Institute (GRI). Overall project management for this multiyear effort was
provided by Larry Goldstein (Energy Analysis Office, NREL) with funding support from Susan
Holte (DOE EERE). Contributions were made by the following authors:

Introduction and Overview

Larry Goldstein, National Renewable Energy Laboratory
Bruce Hedman, Energy and Environmental Analysis, Inc.
Dave Knowles, Antares Group, Inc.

Reciprocating Engines
Bruce Hedman, Energy and Environmental Analysis, Inc.
Dave Knowles, Antares Group, Inc.

Small Gas Turbine Systems

Bruce Hedman, Energy and Environmental Analysis, Inc.
Steven I. Freedman, Technical Consultant
Dave Knowles, Antares Group, Inc.

Microturbine Systems
Bruce Hedman, Energy and Environmental Analysis, Inc.
Steven I. Freedman, Technical Consultant
Dave Knowles, Antares Group, Inc.

Fuel Cell Systems

Bruce Hedman, Energy and Environmental Analysis, Inc.
Richard Woods, Technical Consultant
Dave Knowles, Antares Group, Inc.

Small Steam Turbine Systems

Bruce Hedman, Energy and Environmental Analysis, Inc.
Steven I. Freedman, Technical Consultant
Dave Knowles, Antares Group, Inc.

Stirling Engine Systems

Dave Knowles, Antares Group, Inc.
Bruce Hedman, Energy and Environmental Analysis, Inc.

Financial Evaluations
Tom Schweizer, Princeton Energy Resources International

Gas-Fired Distributed Energy Resource Technology Characterizations

October 2003 – Page i
The Gas Research Institute assigned the Gas Technology Institute (GTI) responsibility for a
major collaborative role in developing and shaping this report. Critical review of draft material
and contributions to the report content were provided by the following GTI staff, managed by
Director John Kelly, Distributed Energy Resources:

Reciprocating Engines: Kevin Olsen, Todd Kollross, and William Staats.

Small Gas Turbines: Kevin Olsen, Todd Kollross, Greg Rouse, and William Staats.
Microturbines: Kevin Olsen, Todd Kollross, Greg Rouse, William Staats, and Richard
Sweetser (EXERGY Partners Corp.).
Fuel Cells: Mark Richards, Robert Remick, Leonard Marianowski, Charles Berry, and
William Staats.
Small Steam Turbines: Greg Rouse and William Staats.
Stirling Engines: William Staats.

In addition to the named reviewers above, the project manager and authors wish to thank and
acknowledge the contributions of the numerous invited peer reviewers that participated in an
Internet-based review of the six technology characterizations and the individuals that attended
the technical workshop and provided additional comment and review. Also, we would like to
recognize Princeton Energy Resources International’s Tom Schweizer and John Rezaiyan for
their added critical review of all the technology characterization drafts and DOE EERE’s Debbie
Haught and Pat Hoffman for their many recommendations and contributions during the various
stages of document development and peer review.

Document preparation and editing, as well as critical technical review, were performed by staff
at NREL, including Larry Goldstein, Bill Babiuch, and Eldon Boes of the Energy Analysis
Office; and Michelle Kubik of Communications.

Gas-Fired Distributed Energy Resource Technology Characterizations

October 2003 – Page ii
 Table of Contents
Acknowledgments i
List of Figures vii
List of Tables viii

1. Introduction and Overview 1-1

1.1 Project Background 1-1
1.2 Technology Characterization Approach 1-1
1.3 DER Power-Generation Applications 1-2
1.4 Gas-Fired DER Applications and Markets 1-5
1.5 Technology Overview 1-5
1.5 Document Overview 1-9

2. Reciprocating Engines 2-1

1.0 Overview 2-1
2.0 Applications 2-2
2.1 Power-Only 2-3
2.2 Combined Heat and Power 2-4
3.0 Technology Description 2-6
3.1 Basic Process and Components 2-6
3.2 Types of Reciprocating Engines 2-7
3.3 Design Characteristics 2-12
4.0 Cost and Performance Characteristics 2-13
4.1 System Performance 2-13
4.2 Combined Heat and Power Performance 2-16
4.3 Performance and Efficiency Enhancements 2-18
4.4 Capital Cost 2-18
4.5 Maintenance 2-21
4.6 Fuels 2-22
4.7 Availability and Life 2-25
5.0 Emission Characteristics 2-26
5.1 Control Options 2-26
5.2 System Emissions 2-30
6.0 Key Technology Objectives 2-31
7.0 Advanced Technology Projections 2-34
8.0 References 2-41

3. Small Gas Turbine Systems 3-1

1.0 Overview 3-1
2.0 Applications 3-2
2.1 Power-Only 3-2
2.2 Combined Heat and Power 3-3
3.0 Technology Description 3-5
3.1 Basic Process and Components 3-5
3.2 Types of Gas Turbines 3-6
3.3 Design Characteristics 3-6
4.0 Cost and Performance Characteristics 3-7
4.1 System Performance 3-8
4.2 Combined Heat and Power Performance 3-13

Gas-Fired Distributed Energy Resource Technology Characterizations

October 2003 – Page iii
 4.3 Performance and Efficiency Enhancements 3-15
4.4 Capital Cost 3-16
4.5 Maintenance 3-20
4.6 Fuels 3-21
4.7 Availability and Life 3-22
5.0 Emission Characteristics 3-22
5.1 Control Options 3-23
5.2 System Emissions 3-26
6.0 Key Technology Objectives 3-27
7.0 Advanced Technology Projections 3-32
8.0 References 3-39

4. Microturbine Systems 4-1

1.0 Overview 4-1
2.0 Applications 4-1
2.1 Power-Only 4-2
2.2 Combined Heat and Power 4-3
3.0 Technology Description 4-4
3.1 Basic Process and Components 4-4
3.2 Types of Microturbines 4-4
3.3 Design Characteristics 4-8
4.0 Cost and Performance Characteristics 4-9
4.1 System Performance 4-9
4.2 Combined Heat and Power Performance 4-17
4.3 Performance and Efficiency Enhancements 4-18
4.4 Capital Cost 4-20
4.5 Maintenance 4-23
4.6 Fuels 4-24
4.7 Availability and Life 4-25
5.0 Emission Characteristics 4-25
5.1 Control Options 4-25
5.2 System Emissions 4-27
6.0 Key Technology Objectives 4-27
7.0 Advanced Technology Projections 4-31
8.0 References 4-40

5. Fuel Cell Systems 5-1

1.0 Overview 5-1
2.0 Applications 5-2
2.1 Power-Only 5-3
2.2 Combined Heat and Power 5-4
3.0 Technology Description 5-4
3.1 Basic Process and Components 5-5
3.2 Types of Fuel Cells 5-9
3.3 Design Characteristics 5-12
4.0 Cost and Performance Characteristics 5-13
4.1 System Performance 5-13
4.2 Combined Heat and Power Performance 5-18
4.3 Performance and Efficiency Enhancements 5-19
4.4 Capital Cost 5-19
4.5 Maintenance 5-21
Gas-Fired Distributed Energy Resource Technology Characterizations
October 2003 – Page iv
 4.6 Fuels 5-23
4.7 Availability and Life 5-23
5.0 Emission Characteristics 5-24
5.1 Control Options 5-24
5.2 System Emissions 5-24
6.0 Key Technology Objectives 5-25
7.0 Advanced Technology Projections 5-28
8.0 References 5-37

6. Small Steam Turbine Systems 6-1

1.0 Overview 6-1
2.0 Applications 6-1
2.1 Power-Only 6-2
2.2 Combined Heat and Power 6-2
3.0 Technology Description 6-4
3.1 Basic Process and Components 6-4
3.2 Types of Steam Turbines 6-6
3.3 Design Characteristics 6-8
4.0 Cost and Performance Characteristics 6-9
4.1 System Performance 6-9
4.2 Combined Heat and Power Performance 6-11
4.3 Performance and Efficiency Enhancements 6-11
4.4 Capital Cost 6-12
4.5 Maintenance 6-13
4.6 Fuels 6-13
4.7 Availability and Life 6-13
5.0 Emission Characteristics 6-14
5.1 Control Options 6-14
5.2 System Emissions 6-16
6.0 Key Technology Objectives 6-16
7.0 Advanced Technology Projections 6-17

7. Financial Evaluations 7-1

1.1 Introduction 7-1
1.2 Calculation of Levelized Cost of Energy 7-1
1.3 Gas Price Assumptions 7-2
1.4 Overview of Results 7-3
1.5 Calculation of COE with Constant Gas Prices 7-3

8. Appendix – Stirling Engine Systems 8-1

1.0 Overview 8-1
2.0 Applications 8-2
2.1 Power-Only 8-2
2.2 Combined Heat and Power 8-3
3.0 Technology Description 8-3
3.1 Basic Process and Components 8-3
3.2 Types of Stirling Engines 8-6
3.3 Design Characteristics 8-7
4.0 Cost and Performance Characteristics 8-8
4.1 System Performance 8-10
4.2 Combined Heat and Power Performance 8-10
Gas-Fired Distributed Energy Resource Technology Characterizations
October 2003 – Page v
 4.3 Performance and Efficiency Enhancements 8-10
4.4 Capital Cost 8-12
4.5 Maintenance 8-13
4.6 Fuels 8-14
4.7 Availability and Life 8-14
5.0 Emission Characteristics 8-15
5.1 Control Options 8-15
5.2 System Emissions 8-15
6.0 Key Technology Objectives 8-15
7.0 Advanced Technology Projections 8-16

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October 2003 – Page vi
 List of Figures
2. Reciprocating Engines 2-1
Figure 1: Existing Reciprocating Engine CHP – 801 MW at 1,055 sites 2-5
Figure 2: Part-Load Efficiency Performance (Spark-Ignition Engines) 2-15
Figure 3: Closed-Loop Heat-Recovery System 2-17

3. Small Gas Turbine Systems 3-1

Figure 1: Existing Simple-Cycle Gas Turbine CHP – 9,854 MW at 359 sites 3-4
Figure 2: Components of a Simple-Cycle Gas Turbine 3-5
Figure 3: Part-Load Power Performance 3-11
Figure 4: Ambient Temperature Effects on Performance 3-12
Figure 5: Altitude Effects on Power Output 3-12
Figure 6: Heat Recovery from a Gas Turbine 3-13
Figure 7: Effect of HRSG Stack Temperature on Total CHP Efficiency 3-14
Figure 8: Turbine Generator Package Costs by Size 3-17

4. Microturbine Systems 4-1

Figure 1: Microturbine-Based CHP System (Single-Shaft Design) 4-5
Figure 2: Typical Microturbine Efficiency as a Function of Compressor Pressure Ratio
and Turbine Inlet Temperature 4-13
Figure 3: Microturbine Specific Power as a Function of Compressor Pressure Ratio
and Turbine Inlet Temperature 4-14
Figure 4: Microturbine Part-Load Efficiency 4-15
Figure 5: Ambient Temperature Effects on Microturbine Performance 4-16
Figure 6: Altitude Effects on Microturbine Power Output 4-17
Figure 7: Microturbine Efficiency as a Function of Recuperator Effectiveness 4-19
Figure 8: Efficiency Comparison of Microturbines w/ Metallic and Ceramic Turbines 4-29
Figure 9: Specific Power Comparison of Microturbines w/ Metallic and Ceramic Turbines 4-29

5. Fuel Cell Systems 5-1

Figure 1: Fuel Cell Electrochemical Process 5-5
Figure 2: Effect of Operating Temperature on Fuel Cell Efficiency 5-7
Figure 3: Part-Load Efficiency Performance 5-18

6. Small Steam Turbine Systems 6-1

Figure 1: Existing Boiler/Steam Turbine CHP Capacity by Industry – 19,062 MW/582 sites 6-3
Figure 2: Existing Boiler/Steam Turbine CHP Capacity by Boiler Fuel Type –
19,062 MW/582 sites 6-3
Figure 3: Components of a Boiler/Steam Turbine System 6-5
Figure 4: Noncondensing (Back-Pressure) Steam Turbine 6-6
Figure 5: Extraction Steam Turbine 6-7

8. Appendix – Sitrling Engine Systems 8-1

Figure 1: Stirling Engine Fundamentals 8-3
Figure 2: Carnot Cycle Compared to the Stirling Engine 8-4
Figure 3: STM 4-120 PowerUnit Pacaged DG System 8-5
Figure 4: STM 4-120 Kinematic Stirling Engine Core 8-6
Figure 5: Stirling Engine Efficiency 8-11
Figure 6: Environmental Performance at Part-Load Conditions 8-11
Gas-Fired Distributed Energy Resource Technology Characterizations
October 2003 – Page vii
 List of Tables
1. Introduction and Overview 1-1
Table 1: Applications and Markets for Gas-fired DG Technologies 1-5
Table 2: Comparison of DG Technologies 1-8

2. Reciprocating Engines 2-1

Table 1: Reciprocating Engine Types by Speed (Available MW Ratings) 2-11
Table 2: Reciprocating Engine Systems – Typical Performance Parameters (2003) 2-14
Table 3: Estimated Capital Cost for Typical Reciprocating Engine-Generators in
Grid-Interconnected Power-Only Applications (2003) 2-20
Table 4: Estimated Capital Cost for Typical Reciprocating Engine-Generators in
Grid-Interconnected CHP Applications (2003) 2-21
Table 5: Representative Overhaul Intervals for Reciprocating Engines in Base-load Service 2-22
Table 6: Typical Natural Gas-Fuel Reciprocating Engine O&M Costs 2-22
Table 7: Major Constituents of Gaseous Fuels 2-24
Table 8: Representative NO x Emissions from Reciprocating Engines
(Without Add-on Controls) 2-26
Table 9: NO x Emissions versus Efficiency Tradeoff Example 2-28
Table 10: Reciprocating Engine Emissions Characteristics
(Without Exhaust-Control Options) 2-30
Table 11: Current and Advanced Reciprocating Engine System Characteristics 2-36

3. Small Gas Turbine Systems 3-1

Table 1: Gas Turbine Systems – Typical Performance Parameters 3-9
Table 2: Power Requirements for Natural Gas Compression 3-10
Table 3: Estimated Capital Cost for Typical Gas Turbine Systems in
Grid-Interconnected CHP Applications (2003) 3-18
Table 4: Estimated Capital Cost for Typical Gas Turbine Systems in
Grid-Interconnected Power-Only Applications (2003) 3-19
Table 5: Typical Gas Turbine (Non-fuel) O&M Costs (2003) 3-20
Table 6: Gas Turbine Emission Characteristics (Without Exhaust-Control Options) 3-27
Table 7: Current and Advanced Combustion Turbine Characteristics 3-35

4. Microturbine Systems 4-1

Table 1: Microturbine Systems – Typical Performance Parameters 4-11
Table 2: Estimated Capital Cost for Typical Microturbine Generator Systems in
Grid-Interconnected CHP Applications (2003) 4-22
Table 3: Estimated Capital Cost for Typical Microturbine Generator Systems in
Grid-Interconnected Power-Only Applications (2003) 4-23
Table 4: Microturbine Emission Characteristics
Table 5: Projected Microturbine Evolution Through 2030 4-34
Table 6: Current and Advanced Microturbine System Characteristics 4-35

5. Fuel Cell Systems 5-1

Table 1: Characteristics of Major Fuel Cell Types 5-10
Table 2: Fuel Cell Systems – Typical Performance Parameters (2003) 5-15
Table 3: Estimated Capital Cost for Typical Fuel Cell Systems in
Grid-Interconnected CHP Applications (2003 $/kW) 5-21
Table 4: Typical Fuel Cell Systems (Non-fuel) O&M Costs (2003) 5-22

Gas-Fired Distributed Energy Resource Technology Characterizations

October 2003 – Page viii
Table 5: Fuel Cell Emission Characteristics (without Additional Controls) 5-25
Table 6: Projected Fuel Cell Evolution Through 2030 5-30
Table 7: Current and Advanced Fuel Cell System Characteristics 5-31

6. Small Steam Turbine Systems 6-1

Table 1: Boiler/Steam Turbine Systems – Typical Performance Parameters (2003) 6-10
Table 2: Typical Boiler Emissions Ranges 6-16
Table 3: Current and Advanced Steam Turbine System Characteristics 6-18

7. Financial Evaluations 7-1

Table 1: Example Calculation of Levelized COE (for 70kW Microturbines) 7-1
Table 2: Delivered Industrial Gas Prices Used in Cost of Energy Estimates 7-2
Table 3: Cost of Energy Trends for Selected Distributed Gas Technologies in
CHP Applications 7-3
Table 4: Cost of Energy Trends for Distributed Technologies 7-4
Table 5: Cost of Energy Trends for Selected Distributed Technologies,
Assuming Constant Gas Prices 7-4

8. Appendix – Stirling Engine Systems 8-1

Table 1: Stirling Engine System – Expected Performance Parameters (2003) 8-9
Table 2: Estimated Capital Cost for Stirling Engine in Grid-Parallel
CHP Applications (2003) 8-13
Table 3: Stirling Engine Emission Characteristics 8-15
Table 4: Projected Stirling Evolution Through 2030 8-17
Table 5: Current and Advanced Stirlineg Engine CHP System Characteristics 8-18

Gas-Fired Distributed Energy Resource Technology Characterizations

October 2003 – Page ix
 1. Introduction and Overview

1.1 Project Background

The U. S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy
(EERE) is directing substantial programs in the development and encouragement of new energy
technologies. Among them are renewable energy and distributed energy resource technologies.
As part of its ongoing effort to document the status and potential of these technologies, DOE
EERE directed the National Renewable Energy Laboratory to lead an effort to develop and
publish Distributed Energy Technology Characterizations (TCs) that would provide both the
department and energy community with a consistent and objective set of cost and performance
data in prospective electric-power generation applications in the United States. Toward that
goal, DOE/EERE – joined by the Electric Power Research Institute (EPRI) – published the
Renewable Energy Technology Characterizations in December 1997.

As a follow-up, DOE EERE – joined by the Gas Research Institute – is now publishing this
document, Gas-Fired Distributed Energy Resource Technology Characterizations. The Gas
Research Institute (GRI) has long had a considerable program of R&D aimed at developing
commercially viable natural-gas-fired distributed generation systems and transitioning them to
commercial partners. Because of this R&D, DOE invited GRI to collaborate on this report, and
GRI designated its primary contractor, the Gas Technology Institute, as technical reviewer of the
technology characterization chapters.

This report describes the current status and future potential of six natural gas-fired distributed
energy resource technologies through the year 2030. The six DER power technologies are:

§ Reciprocating engines
§ Small industrial gas turbines (1 MW to 40 MW)
§ Microturbines
§ Small steam turbines
§ Fuel Cells
§ Stirling engines

While these technologies are capable of utilizing a variety of fuels in a range of applications, the
focus for these characterizations are in electric power and combined heat and power (CHP)
applications using natural gas.

1.2 Technology Characterization Approach

A three-step approach was used to develop the TCs. In the first step, the best available
information was compiled by the authors, based on their knowledge and experience from years
of direct involvement in distributed energy, and then reviewed by experts to produce a set of six
draft distributed energy TCs. The next step involved extensive peer review of the TCs data. An
initial peer review was conducted over the Internet using a password-protected Web site during a
three-month period. Invited participants were asked to provide detailed review of one or several
TCs based on their areas of expertise. Reviewers included technology manufacturers, equipment

Gas-Fired Distributed Energy Resource Technology Characterizations

Introduction and Overview – Page 1-1
packagers, component manufacturers, end users, industry associations, researchers, and
independent consultants. After the Internet peer review, the TCs were revised to reflect the
comments received. In the third step, the revised TCs were then used as a basis for detailed
discussions in a series of small, follow-up technical workshops organized by NREL, which
involved the TC authors and selected outside reviewers. The workshops focused on three areas
of the TC: the current status of the technology, the key technology objectives, and the cost and
performance expectations for the technology. The resulting discussions were then used to again
modify the TCs providing a consensus viewpoint.

1.3 DER Power-Generation Applications

DER power-generating systems range in size and capacity from a few kilowatts up to 50 MW.
They comprise a portfolio of technologies that can be located at or near the location where the
energy is used. DER technologies provide opportunities for greater local control of electricity
delivery and consumption. They also enable more efficient utilization of waste heat in combined
heat and power (CHP) applications – boosting efficiency and lowering emissions. CHP systems
provide electricity, hot water, heat for industrial processes, space heating and cooling,
refrigeration, and humidity control to improve indoor air quality and comfort. DER technologies
are playing an increasingly important role in the nation's energy portfolio, providing a portion or
all of the power needs to a wide variety of users. There are many different potential applications
including base-load power, peaking power where on-site generation is used to reduce the demand
charges imposed by the electric utility, back-up power, remote power, power quality, and CHP,
providing both electricity and thermal needs to the site. Usually, customers own the small-scale,
on-site power generators, or they may be owned and operated by a third party.

The following is a list of potential distributed generation applications that are amenable to the
natural gas-fired distributed generation (DG) technologies characterized in this document.

Power-Only Applications
Backup Power
Backup or standby power systems are required by fire and safety codes for such applications as
hospitals, elevators, and water pumping. Backup power also is an economic choice for
customers with high forced outage costs such as telecommunications, retail, and certain process
industries. The backup power system is typically the simplest distributed generation system,
providing power only when the primary source is out of service or falters in its voltage or
frequency. DG technology characteristics important for backup power include:

• Low capital costs

• Black start capability
• High reliability
• Low fixed maintenance costs

Because of the relatively low number of operating hours required for backup power applications,
efficiency, emissions, and variable maintenance costs are not usually major factors in technology
selection.

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Introduction and Overview – Page 1-2
Base-load/Remote Power
Continuous on-site power generation without heat recovery can be a cost-effective option for
commercial and industrial applications in high electric price areas or in specialized situations,
such as remote sites or availability of low cost (or no cost) waste fuels. Important DG
technology characteristics for base-load power-only include:

• High electric efficiency

• Low maintenance costs (variable)
• Low emissions (depending on location)
• High reliability
• Multi-fuel capability

Demand Response Peaking

On-site generating systems can be used in coordinated peak-shaving programs with servicing
utilities. Under such arrangements, the utility offers capacity and/or commodity payments for
very limited hours of use. These programs typically require as few as 50 hours/year to as many
as 400 hours/year. Important DG technology characteristics for demand response programs
include:

• Low installed cost

• Low maintenance costs (fixed)
• Quick startup

Customer Peaking
Customer-driven peak shaving can be used to reduce utility demand charges, defer retail
electricity purchases during high-price periods, or to secure more competitive power contracts
from energy service providers by smoothing site demand or by allowing interruptible service.
Operating hours for customer-driven peaking are usually between 200 to 3,000 hours a year.
Important DG technology characteristics for peaking power applications include:

• Low installed cost

• Low maintenance costs (fixed)
• Quick startup
• High electric efficiency (important for systems with operating hours in the higher end of
the range)

Premium Power
Premium power is an emerging market for distributed generation systems. These systems either
provide high-quality power to sensitive-load customers at a higher level of reliability and/or
higher power quality than is typically available from the grid. Such systems also may serve to
clean up negative effects that the customer’s own load may have on power quality for
neighboring customers. The growing use of sensitive electronic equipment is making control of
power quality much more important in today's market. Current DG premium power approaches

Gas-Fired Distributed Energy Resource Technology Characterizations

Introduction and Overview – Page 1-3
employ on-site generation as the primary power source and the grid as back-up (as compared to
emergency or standby generation). Important DG technology characteristics for active premium
power applications include:

• High efficiency
• Low maintenance costs
• High reliability
• Clean power output
• Low emissions

Utility-Based Grid Support

Distributed generation can be used by an electric utility to provide ancillary services at the
transmission and distribution (T&D) level, or to replace or defer T&D investments. The market
for ancillary services is still unfolding, but services that distributed generation could provide
include spinning reserves, voltage and frequency support to enhance local area reliability and
power quality, and reactive power control. The critical DG technology characteristics vary,
depending on applications, but often include:

• Low installed cost

• Low maintenance costs (fixed)
• High reliability

Combined Heat and Power Applications

Combined Heat and Power

End users with significant thermal and power needs can generate both thermal and electrical
energy in a single combined heat and power system located at or near the facility. CHP, also
called cogeneration, can substantially increase the efficiency of energy utilization, resulting in
lower operating costs for the user and potential reductions in emissions of criteria pollutants and
CO2. Heat can generally be recovered in the form of hot water or steam, or the hot exhaust from
the system can be used directly for applications such as process heating or drying (e.g., grain
drying, brick drying or greenhouses). The waste heat also can be used to drive thermally
activated equipment, such as absorption chillers for cooling or desiccant wheel regeneration for
dehumidification. Annual operating hours for CHP systems are typically 6,000 or more.
Important DG technology characteristics for CHP include:

• High useable thermal output (resulting in high overall efficiency)

• Low maintenance costs (variable)
• Low emissions
• High reliability

CHP has been traditionally applied by larger industrial users with high steam and power
demands (chemicals, paper, refining) and by smaller, institutional applications (universities,
hospitals). A large potential also exists for smaller CHP systems in light industrial and
commercial applications.

Gas-Fired Distributed Energy Resource Technology Characterizations

Introduction and Overview – Page 1-4
1.4 Gas-Fired DER Applications and Markets

The distributed generation technologies characterized in this document can meet the needs of a
wide range of users in the applications described above in the residential, commercial, and
industrial sectors. Decision makers at all levels need to be aware of the comparative
performance and costs of each technology option, as well as the applications where they are best
suited. The following table summarizes the applicability of the DG technologies profiled in this
document to the major applications and markets:

Table 1. Applications and Markets for Gas-fired DG Technologies

Standby Baseload Demand Customer Premium Utility Combined Applicable Market

DG Power Power Response Peak Power Grid Heat and Sectors
Technologies Only Peaking Shaving Support Power1
Reciprocating Commercial
Engines r r r r r r r Buildings, Light
(50 kW to 5 Industrial, Utility
MW) Grid (larger units),
Waste Fuels
Gas Turbines Large Commercial,
(500 kW to 50 r r r r r Institutional,
MW) Industrial, Utility
Grid, Waste Fuels
Steam Institutional
Turbines r r r Buildings/Campuses,
(500 kW to Industrial, Waste
100 MW) Fuels

Microturbines Commercial
(30 kW to 250 r r r r r r Buildings, Light
kW) r Industrial, Waste
Fuels

Fuel Cells Residential,

(5 kW to 2 r r r r Commercial, Light
MW) Industrial

1.5 Technology Overview

While each of the characterized technologies is discussed in detail in this document, the
following provides an overview of their current status and applications.

Reciprocating Engines
Reciprocating internal combustion engines represent a widespread and mature technology for
power generation. Reciprocating engines are used for all types of power generation, from small
portable gensets to larger industrial engines that power generators of several megawatts. Spark
ignition engines for power generation use natural gas as the preferred fuel – although they can be
set up to run on propane or gasoline. Diesel-cycle, compression ignition engines operate on
1
Thermal energy is in the form of steam from gas and steam turbines; the other characterized technologies produce
thermal energy in the form of hot water or low-pressure steam.

Gas-Fired Distributed Energy Resource Technology Characterizations

Introduction and Overview – Page 1-5
diesel fuel or heavy oil, or can be set up in a dual-fuel configuration that can burn primarily
natural gas with a small amount of diesel pilot fuel. Reciprocating engines offer low first cost,
easy start-up, proven reliability when properly maintained, and good load-following
characteristics. Drawbacks of reciprocating engines include relatively high noise levels,
relatively high air emissions, and the need for regular maintenance. The emissions profiles of
reciprocating engines have been improved significantly in recent years by the use of exhaust
catalysts and through better design and control of the combustion process. Gas-fired
reciprocating engines are well suited for packaged CHP in commercial and light industrial
applications of less than 5 MW. Smaller engine systems produce hot water. Larger systems can
be designed to produce low-pressure steam.

Gas Turbines
Gas turbines for distributed generation applications are an established technology in sizes from
several hundred kilowatts up to about 50 MW. Gas turbines produce high-quality heat that can be
used to generate steam for on-site use or for additional power generation (combined-cycle
configuration). Gas turbines can be set up to burn natural gas, a variety of petroleum fuels or can
have a dual-fuel configuration. Gas turbine emissions can be controlled to very low levels using
water or steam injection, advanced dry combustion techniques, or exhaust treatment such as
selective catalytic reduction (SCR). Maintenance costs per unit of power output are among the
lowest of DG technology options. Low maintenance and high-quality waste heat make gas
turbines an excellent match for industrial or commercial CHP applications larger than 5 MW.
Technical and economic improvements in small turbine technology are pushing the economic
range into smaller sizes as well.

An important advantage of CHP using gas turbines is the high-quality waste heat available in the
exhaust gas. The high-temperature exhaust gas is suitable for generating high-pressure steam,
making gas turbines a preferred CHP technology for many industrial processes. In simple cycle
gas turbines, hot exhaust gas can be used directly in a process or by adding a heat-recovery steam
generator (HRSG) that uses the exhaust heat to generate steam or hot water. Because gas turbine
exhaust is oxygen-rich, it can support additional combustion through supplementary firing. A
duct burner can be fitted within the HRSG to increase the steam production at lower-heating-
value efficiencies of 90% and greater.

Steam Turbines
Steam turbines convert steam energy into shaft power and are one of the most versatile and
oldest prime mover technologies used to drive generators or mechanical machinery. The
capacity of steam turbines can range from fractional horsepower to several hundred MW for
large utility power plants. A steam turbine is captive to a separate heat source and does not
directly convert a fuel source to electric energy. Steam turbines require a source of high-pressure
steam that is produced in a boiler or heat recovery steam generator (HRSG). Boiler fuels can
include fossil fuels such as coal, oil, or natural gas or renewable fuels like wood or municipal
waste. Most of the electricity in the United States is generated by conventional steam turbine
power plants. Steam turbine CHP systems are primarily used in industrial processes where solid
or waste fuels are readily available for boiler use. In CHP applications, steam is extracted from

Gas-Fired Distributed Energy Resource Technology Characterizations

Introduction and Overview – Page 1-6
the steam turbine and used directly in a process or for district heating, or it can be converted to
other forms of thermal energy including hot water or chilled water.

Microturbines
Microturbines are very small combustion turbines that are currently offered in a size range of 30
kW to 250 kW. Microturbine technology has evolved from the technology used in automotive
and truck turbochargers and auxiliary power units for airplanes and tanks. Several companies
have developed commercial microturbine products and are in the early stages of market entry. A
number of other competitors are developing systems and planning to enter the market within the
next few years. In the typical configuration, the turbine shaft, spinning at up to 100,000 rpm,
drives a high-speed generator. The generator’s high-frequency output is converted to the 60 Hz
power used in the United States by sophisticated power electronics controls. Electrical
efficiencies of 23-26% are achieved by employing a recuperator that transfers heat energy from
the exhaust stream back into the combustion air stream. Microturbines are compact and
lightweight, with few moving parts. Many designs are air-cooled and some even use air
bearings, thereby eliminating the cooling water and lube oil systems.

Low-emission combustion systems, which provide emissions performance approaching that of

larger gas turbines, are being demonstrated. Microturbines’ potential for low emissions, reduced
maintenance, and simplicity promises to make on-site generation much more competitive in the
30 to 300 kW size range characterized by commercial buildings or light industrial applications.
Microturbines for CHP duty are typically designed to recover hot water or low-pressure steam.

Fuel Cells
Fuel cells produce power electrochemically, more like batteries than conventional generating
systems. Unlike storage batteries, however – which produce power from stored chemicals – fuel
cells produce power when hydrogen fuel is delivered to the cathode of the cell, and oxygen in air
is delivered to the anode. The resultant chemical reactions at each electrode create a stream of
electrons (or direct current) in the electric circuit external to the cell. The hydrogen fuel can
come from a variety of sources, but the most economic is steam reforming of natural gas – a
chemical process that strips the hydrogen from both the fuel and the steam. Several different
liquid and solid media that can be used inside fuel cells – phosphoric acid (PAFC), molten
carbonate (MCFC), solid oxide (SOFC), and proton exchange membrane (PEMFC). Each of
these media comprises a distinct fuel cell technology with its own performance characteristics
and development schedule. PAFCs are in early commercial market development now, with 200
kW units delivered to more than120 customers worldwide. The PEMFC and MCFC
technologies are now in early market introduction and demonstration. SOFC units are in
development and testing. Fuel cells promise higher efficiency than generation technologies
based on heat engine prime movers. In addition, fuel cells are inherently quiet and extremely
clean running. Similar to microturbines, fuel cells require power electronics to convert direct
current to 60-Hz alternating current. Many fuel cell technologies are modular and capable of
application in small commercial and even residential markets; other technology operates at high
temperatures in larger sized systems that would be well suited to industrial CHP applications.

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Introduction and Overview – Page 1-7
Table 2 summarizes the characteristics of each technology.

Table 2. Comparison of DG Technologies

Recip Engine Gas Turbine Steam Turbine Microturbine Fuel Cells

Technology Status Commercial Commercial Commercial Early entry Early entry/

development

Size (MW) 0.01-5 0.5 - 50 0.05-50 0.03-0.25 0.005-2

2
Electric Efficiency (HHV) 30-37% 22-37% 5 – 15% 23-26% 30-46%

Total CHP Efficiency (HHV) 3 69-78% 65-72 % 80 % 61-67% 65-72%

5
Power-Only installed cost 700-1,000 600-1,400 300-900 1,500-2,300 2,800-4,700
($/kW)4

CHP installed cost ($/kW)3 900-1,400 700-1,900 300-9004 1,700-2,600 3,200-5,500

O&M Cost ($/kWh) 0.008-0.018 0.004-0.01 <0.004 0.013-0.02 0.020.04

Availability > 96% >98% Near 100% 95% 90%

Equipment Life (years) 20 20 >25 10 10

Fuel pressure (psi) 1-65 (may 100-500 (may n/a 55-90 (may 0.5-45
require fuel require fuel require fuel
compressor) compressor) compressor)

Fuels natural gas, natural gas, all natural gas, hydrogen,

biogas, liquid biogas, biogas natural gas
fuels distillate oil

NOx Emissions 0.2-6 0.8-2.4 Function of 0.5-1.25 <0.1

6
boiler missions
(lb/MWh)

Uses for Heat Recovery hot water, low direct heat, LP-HP steam, direct heat, hot hot water, low
pressure hot water, LP- district heating water, low pressure steam
steam, district HP steam, pressure steam
heating district heating

Thermal Output (Btu/kWh) 7 3,200-5,600 3,200-6,800 1,000-50,000 4,500-6,500 1,800-4,200

2
Except where noted, the efficiencies quoted in this report are based on higher heating value (HHV), which includes
the heat of condensation of the water vapor in the combustion products. In engineering and scientific literature, the
lower heating value (LHV – which does not include the heat of condensation of the water vapor in the combustion
products) is often used. The HHV is greater than the LHV by approximately 10% with natural gas as the fuel (i.e.,
50% LHV efficiency is equivalent to 45% HHV efficiency). HHV efficiencies are about 8% greater than LHV
efficiencies for oil (liquid petroleum products) and 5% for coal. The report specifically indicates the few instances
where it uses lower heating values.
3
Total CHP Efficiency = (net electric power generated + net thermal energy recovered)/total CHP system fuel input
4
Total installed cost estimates for “typical” system installations. Commercially available system costs are based on
published manufacturers’ equipment costs to the end-user and estimated installation costs for a typical installation
with minimal site preparation. Equipment costs for market entry systems are based on manufacturer market entry
target prices and typical installation costs for similarly sized commercially available systems. Mature market costs
would be expected to be lower.
5
Steam turbine costs are based on installation of turbine systems only; boiler and steam systems costs are not
included.
6
Emissions are based on system-out emissions without exhaust gas cleanup.
7
Thermal output is based on recoverable thermal energy available per kWh of power generated

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Introduction and Overview – Page 1-8
1.6 Document Overview

Five gas-fired distributed power system technologies (reciprocating engines, small industrial gas
turbines, microturbines, small steam turbines and fuel cells) have been characterized in the five
main chapters of this document. Also included in the appendix – as an example of an emerging
technology first entering the initial stages of commercialization – is the Stirling engine
technology characterization. All data for the Stirling engine TC was provided by its only current
developer, STM POWER, INC.

Each technology characterization chapter has the following organization:

1.0 Overview (general discussion of the technology history and status).

2.0 Applications (power-only and CHP applications for the technology).
3.0 Technology Description (describes the basic operation and design characteristics of the
technology).
4.0 Cost and Performance Characteristics (provides primary data tables on current system cost
and performance).
5.0 Emission Characteristics (data tables on emissions and control options).
6.0 Key Technology Objectives (research and development pathways following a business-as-
usual approach).
7.0 Advanced Technology Projection (projected cost and performance parameters to 2030). As a
cautionary note, the projected cost and performance data provided in Section 7 is not based
on market studies. Engineering judgment has been used to estimate the size of the market for
each technology.

Several technology characterizations also contain Section 8, which lists additional references and
Web sites relating to the technology. However, this section is not included in every TC.

A financial chapter (Chapter 7) provides estimates of levelized cost of energy.

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Introduction and Overview – Page 1-9
 2. Reciprocating Engines

1.0 Overview

Reciprocating internal combustion engines are a widespread and widely known technology.
North American production exceeds 35 million units per year for automobiles, trucks,
construction and mining equipment, marine propulsion, lawn care, and a diverse set of power
generation applications. A variety of stationary engine products are available for a range of
power-generation market applications and duty cycles, including standby and emergency power,
peaking service, intermediate and base-load power, and combined heat and power (CHP).
Reciprocating engines are available for electrical power generation applications using many
different fuel sources in sizes ranging from a few kilowatts to more than 15 MW in individual
applications.

There are two basic types of reciprocating engines – spark ignition (SI) and compression ignition
(CI). Spark ignition engines for power generation use natural gas as the preferred fuel, although
they can be set up to run on propane, gasoline, or special gases such as landfill, flare, and
digester gas. Compression ignition engines (often called diesel engines) operate on diesel fuel or
heavy (residual) oil, or they can be set up to run in a dual-fuel configuration that burns primarily
natural gas with a small amount of diesel pilot fuel for ignition.

Diesel engines have historically been the most popular type of reciprocating engine for both
small and large power-generation applications. However, in the United States and other
industrialized nations, diesel engines are increasingly restricted to emergency standby or limited
duty-cycle service because of air emission concerns. As a result, the natural gas-fueled SI engine
is now the engine of choice for the higher-duty-cycle stationary power market (more than 500
hr/yr) and is the primary focus of this report. Natural gas-fueled reciprocating engines are
commercially available in sizes ranging from 10 kW to 7 MW.

Current generation natural gas engines offer low first-cost, fast start-up, proven reliability when
properly maintained; excellent load-following characteristics, and significant heat-recovery
potential. Electric efficiencies of natural gas engines range from 28% LHV1 for stoichiometric
engines2 smaller than 100 kW to more than 40% LHV for larger lean-burn engines3 (> 2 MW).
Waste heat can be recovered from the engine exhaust and from the engine cooling systems to

1
LHV stands for lower heating value. Most of the efficiencies quoted in this report are based on higher heating
value (HHV) fuel consumption, which includes the heat of condensation of the water vapor in the combustion
products. In engineering and scientific literature, the lower heating value (LHV), which does not include the heat of
condensation of the water vapor in the combustion products, is often used. The HHV is greater than the LHV by
approximately 10% with natural gas as the fuel (i.e., 50% LHV efficiency is equivalent to 45% HHV efficiency).
HHV fuel consumption is about 6-8% greater for oil (liquid petroleum products) and 5% for coal.
2
Stoichiometric engines are designed to burn the chemically correct proportions of fuel and air needed for complete
combustion, i.e., there is no excess fuel or oxygen after combustion.
3
In lean-burn engines, the fuel-air mixture contains more air than is needed for complete combustion. A rich-burn
engine is a common term for a stoichiometric engine, where the air-to-fuel ration is maintained at or near the correct
level for complete combustion.

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produce either hot water or low-pressure steam for CHP applications. Overall, CHP system
efficiencies (electricity and useful thermal energy) of 70% to 80% are routinely achieved with
natural gas-engine systems in applications with electrical and heat loads appropriately in balance.

Reciprocating engine technology has improved dramatically in the past three decades, driven by
environmental and economic pressures for power density improvements (more output per unit of
engine displacement), increased fuel efficiency, and reduced emissions. Computer systems and
software have greatly advanced reciprocating engine design and control, accelerating advanced
engine designs and making possible more precise control and diagnostic monitoring of engine
operation. Stationary engine manufacturers and worldwide engine R&D firms continue to drive
advanced engine technology, including accelerating the diffusion of technology and concepts
from the automotive market to the stationary engine market.

The emissions signature of natural gas SI engines, in particular, has improved significantly in the
past decade through better design and control of the combustion process and through the use of
catalytic treatment of exhaust gases. Advanced lean-burn natural gas engines are available that
produce untreated NOx levels as low as 50 ppmv @ 15% reference O2 (dry basis).

2.0 Applications

Reciprocating engines are well suited to a variety of distributed generation applications and are
widely used in the United States and Europe in power-only – as well as combined heat and
power (CHP) – configurations in the industrial, commercial, and institutional market sectors.
The widespread use of reciprocating engines in stationary applications in the United States is
supported by a highly developed sales and service infrastructure. Reciprocating engines start
quickly, follow load well, have good part-load efficiencies, maintain efficiency and output at
increasing altitude and ambient conditions, and generally have high reliabilities. In many cases,
multiple reciprocating engine generating sets are used to ensure overall plant capacity and
maintain high levels of reliability and availability. Reciprocating engines have higher electrical
efficiencies, and thus lower fuel-related operating costs, than gas turbines of comparable size. In
addition, the first costs of reciprocating engine generator sets are generally lower than gas
turbine gensets up to 3-5 MW output range. Reciprocating engine maintenance costs per kW-hr
are generally higher than equivalent-sized gas turbines, but the engine maintenance often can be
performed by in-house staff or provided by local service organizations.

Potential distributed generation applications for reciprocating engines include standby, peak
shaving, grid support, and CHP applications in which engine waste heat is utilized to produce hot
water, low-pressure steam, or chilled water through waste-heat-fired absorption chillers.
Reciprocating engines also are used extensively as direct mechanical drives in applications such
as water pumping, air and gas compression, and chilling/refrigeration.

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2.1 Power-Only

Standby Power

Standby power systems are required by fire and safety codes for hospitals, elevator loads, and
water pumping. The standby genset is typically the simplest distributed generation system,
providing power only when the primary source is out of service or falters in its voltage or
frequency. This application typically requires low capital cost, minimal installation costs, black-
start capability (ability to start when the grid supply is interrupted), and grid-isolated operation.
Due to the relatively low number of operating hours typically required in standby power
applications, efficiency, emissions, and variable maintenance costs are not major factors in
technology selection. Installation typically requires a concrete pad and possibly an enclosure or
building, controls, and transfer switch appropriate to the application. Multiple units may be
used, depending on the size and priorities assigned to the loads that are being protected. Diesel
engines are highly preferred for standby power due to their low capital cost, rapid start-up
capability (within 10 seconds), and excellent load-following (transient response) characteristics.
Standby applications range from a few kW to very large capacities (up to 10 MW) in industrial
or utility applications. However, most are high-speed units under 2 MW. Diesel engines
typically can be installed in standby applications without being required to meet strict emissions
standards, although operation is limited to a certain number of hours per year (generally 300 to
500 hours). Standby applications are not considered priority applications for natural gas-fueled
engines.

Peak Shaving

In certain areas, customers and utilities are using on-site power generation to reduce the cost of
peak load power. Peak shaving is beneficial to customers who have poor load factors and/or
high electricity provider demand charges. Typically, peak shaving does not involve heat
recovery, but heat recovery may be cost effective if the peak period is more than about 2,000
hours/year. Since low equipment cost and high reliability are the primary requirements,
reciprocating engines are ideal for many peak-shaving applications. Emissions may be an issue
if the annual number of operating hours is high or the operating facility is located in a non-
attainment area. Where peak shaving can be combined with another function, such as standby or
emergency power, the economics are considerably enhanced.

There are three possible peak-shaving strategies. First, customers can independently optimize
the use of purchased versus generated power under the applicable rate structures. Under this
strategy, on-site generation would operate during the utility-defined, more costly peak periods.
This creates an operating strategy that can vary, depending on the tariff, from 900 to as many as
3,500 hours/year. Second, some utilities offer coordinated peak-shaving programs in which the
utility offers payments for limited hours of use upon request from the utility. This strategy
typically requires 50 to 400 hours/year of operation. Third, for customers that purchase power
competitively on the open market, there is an opportunity to peak shave from the hourly
competitive price or to select competitive power supply contracts that are interruptible. In the
competitive market application, the hours of operation would probably be closer to the reduced
hours of the coordinated utility model than the independent peak shaving of a published tariff.

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Reciprocating Engines – Page 2-3
The optimal technology configuration and the need to take into account the value of standby
power capability differ markedly among these operating strategies.

Grid Support

There are many utility owned-and-operated reciprocating engine generating systems in the
United States and abroad. The primary applications in the United States have used relatively
large diesel or natural gas engines for peaking or intermediate load service at municipal utilities
and electric cooperatives. It should be noted that electric utilities often use reciprocating engines
at large power plants for plant or grid black-start capabilities. However, a growing number of
reciprocating engines now are being placed by utilities at substations to provide incremental
peaking capacity and grid support. Such installations can defer the need for T&D system
expansion, provide temporary peaking capacity within constrained areas, or be used for system
power factor correction and voltage support, thereby reducing costs for both customers and the
utility company. Both diesel engines and natural gas engines are suitable for such service, but the
low duty cycle of most grid support applications allows, and often favors, the use of lower-cost
diesel units in many areas. A number of stationary engine manufacturers and packagers offer
mobile engine generator units (both diesel and natural gas) of various sizes (up to about 2 MW)
that can be used in one location during a period of high peak demand and then moved by truck to
another location for the following period, often within the same operating season.

2.2 Combined Heat and Power

While the use of reciprocating engines is expected to grow in both grid support and customer
peak-shaving applications, the most prevalent on-site generation application for natural gas SI
engines has traditionally been CHP. This trend is likely to continue due to the cost effectiveness
of heat recovery and growing government recognition of the benefits of CHP. The economics of
natural gas engines in on-site generation applications are enhanced by effective use of the
thermal energy contained in the exhaust gas and cooling systems, which is generally equal to
60% to 70% of the input fuel energy.

There are four sources of usable waste heat from a reciprocating engine: exhaust gas, engine
jacket cooling water, lube oil cooling water, and charge air cooling. Heat is generally recovered
in the form of hot water or low-pressure steam (<30 psig). Medium pressure steam (up to about
150 psig) can be generated from the engine’s high-temperature exhaust gas, but the hot exhaust
gas contains only about one-half of the available thermal energy from a reciprocating engine
resulting in correspondingly lower overall system efficiency. Some industrial CHP applications
use the engine exhaust gas directly for process drying. Generally, the hot water and low-pressure
steam produced by reciprocating engine CHP systems is appropriate for low temperature
(<240ºF) process needs, space heating, potable water heating, and to drive absorption chillers
that provide cold water for process cooling, air conditioning, or refrigeration.

There were an estimated 1,055 engine-based CHP systems operating in the United States in
2000, representing more than 800 MW of electric power capacity as shown in Figure 1. Facility
capacities range from 30 kW to more than 40 MW, with many larger facilities comprised of

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Reciprocating Engines – Page 2-4
multiple units. Reciprocating engine CHP is installed in a variety of applications, with spark-
ignited engines fueled by natural gas or other gaseous fuels representing 84% of the installed
reciprocating engine CHP capacity in the United States.

Figure 1. Existing Reciprocating Engine CHP – 801 MW at 1,055 sites

Other
Industrial
155 MW
Other
Commercial Universities
186 MW 100 MW

Hospitals
95 MW
Chemicals
Processing
36 MW
Office
Water
Buildings Food
Treatment
57 MW Processing
92 MW
79 MW

Source: Energy and Environmental Analysis, Inc., CHP Database - 2000

The thermal loads most amenable to engine-driven CHP systems in commercial/institutional

buildings are space heating and hot water requirements. The simplest thermal load to supply is
hot water. As shown in Figure 1, primary applications for CHP in the commercial/institutional
sectors are building types with relatively high and coincident electric and hot water demand,
such as colleges and universities, hospitals and nursing homes, and lodging. Office buildings –
and certain warehousing and mercantile/service applications – can be economically feasible CHP
applications if their space heating needs occur at the same time as their electrical needs.
Technology development efforts targeted at heat-activated cooling/refrigeration and thermally
regenerated desiccants are designed to expand the application of engine-driven CHP by
increasing the thermal energy loads in certain building types. Use of CHP thermal output for
absorption cooling and/or desiccant dehumidification could increase the market potential and
improve the economics of CHP systems in existing CHP markets, such as schools, lodging,
nursing homes, and hospitals. Use of these advanced technologies in applications such as
restaurants, supermarkets, and refrigerated warehouses would provide base thermal loads that
could further open these markets to CHP.

A typical commercial application for reciprocating engine CHP is a hospital or health-care

facility with a 1 MW base-load electric demand. In such an application, multiple 200 to 300 kW
natural gas engine-generator sets could be utilized to meet the electric demand. Approximately
1.6 MW thermal (MWth) of hot water would be recovered from engine exhaust and engine

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cooling systems to provide space heating and domestic hot water to the facility and to drive
absorption chillers for space conditioning during summer months. Overall efficiency of this
type of CHP system can approach 80%.

As shown in Figure 1, engine-driven CHP also is being used in a variety of industrial

applications where hot water or low-pressure steam is required for process needs or space
heating. A typical industrial application for CHP would be at a food-processing plant with a 2
MW natural gas engine-driven CHP system comprised of multiple 500 to 800 kW engine
generators. The system would meet the base-load power requirement of the facility and
approximately 2.2 MWth low-pressure steam for process heating and/or space conditioning.
Overall efficiency for a CHP system of this type may approach 75%.

3.0 Technology Description

3.1 Basic Process and Components

There are two primary reciprocating engine designs relevant to stationary power generation
applications – the spark ignition Otto-cycle engine and the compression ignition Diesel-cycle
engine. The essential mechanical components of Otto-cycle and Diesel-cycle engines are the
same. Both have cylindrical combustion chambers, in which closely fitting pistons travel the
length of the cylinders. The pistons are connected to a crankshaft by connecting rods that
transform the linear motion of the pistons into the rotary motion of the crankshaft. Most engines
have multiple cylinders that power a single crankshaft.

The primary difference between the Otto and Diesel cycles is the method of igniting the fuel.
Otto-cycle engines use a spark plug to ignite the premixed air-fuel mixture after it is introduced
into the cylinder. Diesel-cycle engines compress the air introduced into the cylinder to a high
pressure, raising its temperature above the auto-ignition temperature of the fuel, which is then
injected into the cylinder at high pressure.

Reciprocating engines are further categorized by crankshaft speed (rpm), operating cycle (2- or
4-stroke), and whether turbocharging is used. These engines also are categorized by their
original design purpose – automotive, truck, industrial, locomotive, or marine. Many automotive
engine models are used in hundreds of small-scale stationary power, CHP, irrigation, and chiller
applications. These engines are generally low-cost, due to large production volumes. However,
unless these engines are conservatively rated, they have limited durability. Truck engines have
the cost benefit of production volume, are designed for long life (e.g., 1 million miles), and offer
longer durability than automotive engines in stationary applications. A number of truck engines
are available as stationary engines. Engines intended for industrial use are designed for
durability and for a wide range of mechanical drive and electric power applications. Their sizes
range from 20 kW to more than 7 MW, including industrialized truck engines in the 200 to 600
kW range and industrially applied marine and locomotive engines above 1 MW.

Both the spark-ignition and the diesel 4-stroke engines, most prevalent in stationary power-
generation applications complete a power cycle in four strokes of the piston within the cylinder:

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Reciprocating Engines – Page 2-6
1. Intake stroke – introduction of air or fuel-air mixture into the cylinder.

2. Compression stroke – compression of air or fuel-air mixture within the cylinder. In diesel
engines, the fuel is injected near the end of the compression stroke (often referred to as top
dead center or TDC), and ignited by the high temperature of the compressed air in the
cylinder. In spark-ignition engines, the compressed fuel-air mixture is ignited by an ignition
source, such as a spark plug, at or near TDC.

3. Power stroke – acceleration of the piston due to the expansion of the hot, high-pressure
combustion gases, and

4. Exhaust stroke – expulsion of combustion products from the cylinder through the exhaust
valve.

3.2 Types of Reciprocating Engines

Natural Gas Spark-Ignition Engines – Spark-ignition engines use spark plugs, with a carefully
controlled high-intensity spark, to ignite a compressed fuel-air mixture within the cylinder. In
the United States, natural gas is the predominant spark-ignition engine fuel used in electricity
generation and CHP applications. Other gaseous and volatile liquid fuels, ranging from landfill
gas to propane to gasoline, can be used with the proper fuel system, engine compression ratio,
and tuning. American manufacturers began to develop large natural gas engines for the
burgeoning natural gas transmission industry after World War II. Smaller engines were
developed (or converted from diesel engine blocks) for gas gathering and other stationary
applications as the natural gas infrastructure developed. Natural gas engines for power
generation applications are primarily 4-stroke engines, available in sizes up to 7 MW.

Two ignition techniques are employed with natural gas spark-ignition engines, depending on
engine size:

• In open-chamber engines, the spark plug tip is exposed in the combustion chamber of the
cylinder, directly igniting the compressed fuel-air mixture. Open chamber ignition is typical
of engines that operate near the stoichiometric air/fuel ratio or with moderately lean fuel-air
mixtures.

• Precombustion-chamber engines use a staged combustion process, in which the spark plug is
housed in a small chamber in the cylinder head. This chamber is charged with a rich mixture
of fuel and air, which, upon ignition, expands into the main combustion chamber in the
cylinder acting as a high-energy torch. This technique provides sufficient ignition energy to
ignite the very lean fuel-air mixtures used in large-bore (large piston diameter) engines.

The simplest natural gas engines operate with natural aspiration of air and fuel into the cylinder
(via a carburetor or other mixer) by the suction of the intake stroke. High-performance natural
gas engines are turbocharged to force more air into the cylinders, allowing a corresponding

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increase of fuel to increase engine output. Natural gas spark-ignition engines operate at modest
compression ratios (compared with diesel engines) in the range of 9:1 to 12:1, depending on
engine design and turbocharging. The use of higher compression ratios could lead to auto-
ignition of the fuel, resulting in engine knock, which can cause serious engine damage.4

By using high-energy ignition technology, very lean fuel-air mixtures can be burned in natural
gas engines, lowering peak temperatures within the cylinders and resulting in reduced NOx
emissions. The lean-burn approach in reciprocating engines is analogous to dry low-NOx
combustors in gas turbines. All major natural gas engine manufacturers offer lean-burn, low-
emission models and are engaged in R&D to further improve their performance.

Natural gas spark-ignition engines are typically less efficient than diesel engines because of their
lower compression ratios. However, large, high-performance lean-burn engine efficiencies
approach those of diesel engines of the same size. Natural gas engine efficiencies range from
about 28% (LHV) for engines smaller than 50 kW, to 40% (LHV) for the larger high-
performance, lean-burn engines. Lean-burn engines tuned for maximum efficiency may emit
more than twice as much NOx as the same engine tuned for minimum NOx. Tuning for low NOx
typically results in a sacrifice of 1 to 1.5 percentage points in electric-generating efficiency from
the highest level achievable.

Many natural gas spark-ignition engines are derived from diesel engines, i.e., they are built using
the same block, crankshaft, main bearings, camshaft, and connecting rods as the diesel engine.
However, natural gas spark-ignition engines operate at lower brake mean effective pressure
(BMEP) and peak pressure levels to prevent knock.5 Due to the derating effects from lower
BMEP, the spark-ignition versions of diesel engines often produce only 60% to 80% of the
power output of the parent diesel engine. Manufacturers often enlarge cylinder bore about 5% to
10% to increase the power, but this is only partial compensation for reduced BMEP.
Consequently, the $/kW capital costs of natural gas spark-ignition engines are generally higher
than the diesel engines from which they were derived. However, by operating at lower cylinder
pressure and bearing loads, as well as in the cleaner combustion environment of natural gas,
spark ignition engines generally offer the benefits of extended component life and lower
emissions than their diesel parents.

Diesel Engines – Compression ignition diesel engines are among the most efficient simple-cycle,
power-generation options on the market. Efficiency levels increase with engine size and range
from about 32% (LHV) for small high-speed diesels up to 45% to 50% (LHV) for the large-bore,
slow-speed engines. High-speed diesel engines (1,000 to 3,600 rpm) are available up to about 4
MW in size. Low-speed diesels (60 to 275 rpm) are available as large as 80 MW.

4
“Knock” is produced by explosive auto-ignition of a portion of the fuel in the cylinder due to compression and
heating of the gas mixture ahead of the flame front. The terms “knock” and “detonation” are often used
interchangeably.
5
Brake mean effective pressure (BMEP) can be regarded as the “average” cylinder pressure on the piston during the
power stroke and is a measure of the specific loads on the engine. BMEP is generally an indication of how well the
engine utilizes total cylinder displacement in creating useful work.

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Diesel engines typically require compression ratios of 12:1 to 17:1 to heat the cylinder air to a
temperature that will auto-ignite the injected fuel. The quality of fuel injection significantly
affects diesel-engine operating characteristics, fuel efficiency, and emissions. Fine atomization
and good fuel dispersion by the injectors are essential for rapid ignition, ideal combustion, and
emissions control. Manufacturers are increasingly moving toward electronically controlled,
high-pressure injection systems that provide more precise calibration and control of fuel delivery
and accurate injection timing.

Depending on the engine and fuel quality, diesel engines produce 5 to 20 times as much NOx (on
a ppmv basis) as lean-burn natural gas engines. Diesel engines also produce assorted heavy
hydrocarbons and particulate emissions. However, diesel engines produce significantly less CO
(carbon monoxide) than lean-burn gas engines. The NOx emissions from diesels burning heavy
fuel oil are typically 25% to 30% higher than diesels using distillate oil. Common NOx control
techniques include delayed fuel injection, exhaust gas recirculation, water injection, fuel-water
emulsification, and compression ratio and turbocharger modifications – all designed to eliminate
hot spots and reduce the flame temperature within the cylinder. In addition, an increasing
number of larger diesel engines are equipped with selective catalytic reduction (SCR) and
oxidation catalyst systems for post-combustion emissions reduction.

High-speed diesel engines generally require high-quality fuel oil with good combustion
properties. No. 1 and No. 2 distillate oil comprise the standard diesel fuels. Low sulfur distillate
is preferred for minimizing SO2 emissions. High-speed diesels are not suited to burning oil
heavier than light distillates. Lower-quality heavy fuel oil burns too slowly and contains
contaminants that would cause excessive wear in high-speed diesel engines. Many medium- and
low-speed diesels are designed to burn heavier oils, including low-grade residual oil (Bunker C
oil).

Dual-Fuel Engines – Dual-fuel engines are diesel-cycle compression ignition engines

predominantly fueled by natural gas with a small percentage of diesel oil used as a “pilot” fuel.
Compression heating auto-ignites the pilot fuel and initiates combustion of the main fuel-air
mixture. Pilot fuel minimum requirements can range from 1% to 20% of total fuel input. Dual-
fuel operation is a combination of Diesel- and Otto-cycle operation, approaching the Otto cycle
more closely at low pilot-fuel percentages. Most dual-fuel engines can be switched between
dual-fuel and 100% diesel operation while the engine is operating at any output level. In general,
due to lower diesel oil use, NOx, smoke, and particulate emissions are lower for dual-fuel
engines than for straight diesel operation, particularly at full load. Particulate emissions are
reduced in line with the percentage reduction in diesel oil consumption, while the level of NOx
reduction depends on combustion characteristics (see Emissions section). However, CO and
unburned hydrocarbon emissions are often higher as a result of incomplete combustion. High
first costs and maintenance costs – plus added operational complexity of dual-fuel engines –
generally are barriers or a deterrent to consumer deployment.

There are three basic types of dual-fuel engines:

Conventional, low-pressure, gas-injection engines typically require about 5% to 10% pilot fuel
and may be derated to about 80% to 95% of the rated diesel capacity to avoid knock. The

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minimum pilot-fuel requirement is generally set by the turndown ratio of the diesel fuel-injection
system (limited by the smallest amount of fuel that the injection system can normally supply).
Conventional diesel injectors cannot reliably turn down to less than 5% to 6% of the full-load
injection rate. Natural gas input is controlled at each cylinder by injecting gas before the air
intake valves open. NOx emissions of conventional dual-fuel engines are generally in the 3.5 to
6.0 g/bhp-hr range (compared to lean-burn natural gas engines with NOx emissions in the 0.5 to
2.0 g/bhp-hr range).

High-pressure gas-injection engines attempt to reduce derating by injecting natural gas at high
pressures (3,600 to 5,100 psig) directly into the main combustion chamber while the pilot fuel is
injected. However, the parasitic power required for gas compression can be as high as 4% to 7%
of the rated power output – partly offsetting the benefit of reduced derating. This technology has
not proved particularly popular because of this issue and the cost of additional equipment
required for high-pressure gas injection. Pilot-fuel consumption is typically 3% to 8%, and NOx
emissions are generally in the 3.5 to 6.0 g/bhp-hr range.

Micropilot prechamber engines are similar to spark-ignition precombustion-chamber engines in

that the pilot fuel injected into a prechamber provides a high-energy torch that ignites the very
lean, compressed fuel-air mixture in the cylinder. Leaner mixtures than those of spark-ignition
engines are achievable because the energy provided by the diesel-fueled micropilot chamber is
higher than that obtained with a spark-ignition prechamber. Micropilot dual-fuel engines with
1% pilot fuel can operate at or near diesel engine compression ratios and BMEPs; so little, if any,
derating occurs. In this case, the high power density and low $/kW cost advantage of the
original diesel engine are retained, and engine efficiency at 75% to 100% of full load is close to
that of the diesel engine. NOx and other emissions are comparable to those of lean-burn, spark-
ignition prechamber engines (NOx emissions in the 0.5 to 2.0 g/bhp-hr range). These engines
must be equipped with conventional diesel fuel injectors in order to operate on 100% diesel.

Several independent developers and engine manufacturers are testing and commercializing dual-
fuel retrofit kits for converting existing diesel engines to dual-fuel operation. The level of
sophistication of these kits varies widely, and some require major engine modifications.
Derating, efficiencies, and emissions also vary widely and have yet to be fully tested or certified.
However, dual-fuel conversions are not expected to be as low in emissions as dedicated natural
gas engines. In addition, manufacturers may not honor warranties on engines that have been
retrofitted by an independent third party.

Engine-Speed Classifications – Reciprocating engines are classified as high-, medium-, or low-

speed. Table 1 presents the standard speed ranges in each class and the types and sizes of
engines available. Engine-driven electric generators typically must run at fixed (or synchronous)
speeds and maintain a constant 50 or 60 Hertz (Hz) frequency, which dictates the required engine
operating speed (i.e., a 60 Hz generator driven by a high-speed engine would require engine
speeds of 1,200, 1,800 or 3,600 rpm in contrast to a 50 Hz generator, which requires engine
speeds of 1,000, 1,500 or 3,000 rpm)

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 Table 1. Reciprocating Engine Types by Speed (Available MW Ratings)

Speed Engine Stoic/ Rich Lean Burn, Dual Fuel Diesel

Classification Speed, Burn, Spark Spark Ignition
rpm Ignition6

High Speed 1,000 - 600 0.01 - 1.5 MW 0.15 - 3.0 MW 1.0 - 3.5 MW7 0.01 - 3.5 MW
Medium Speed 275 - 1,000 None 1.0 - 7.0 MW 1.0 - 25 MW 0.5 - 35 MW
Low Speed 60 - 275 None None 2.0 - 65 MW 2.0 - 80 MW

Source: SFA Pacific, Inc., “Reciprocating Engines for Stationary Power Generation”

The specific power output of engines is proportional to engine speed, affording high-speed
engines the highest output per unit of displacement (cylinder size) and the highest power density.
Consequently, high-speed engines generally have the lowest $/kW production costs. However,
the cost benefits of high-speed engines must be weighed against other factors. Smaller high-
speed engines tend to have lower efficiencies than larger-bore, slower engines, due in part to the
higher surface area to volume ratios of small cylinders, which result in higher heat losses. Also,
high-speed engines tend to have higher wear rates, resulting in shorter periods between both
minor and major overhauls. These factors often are less important than capital cost for limited
duty cycle applications, such as standby and emergency.

Medium-speed stationary power engines are largely derived from marine and locomotive
engines. Medium-speed engines are costlier and heavier, but generally more efficient and
durable than high-speed engines.

Because of their massive physical size, capital cost, and lengthy fabrication times, low-speed
engines are increasingly being displaced by medium- and high-speed engines as the primary
choice for stationary power applications.

Load Service Ratings – Reciprocating engine manufacturers typically assign one of three power
ratings to engines, depending on the intended load service:

• Standby – continuous full or cycling load for a relatively short duration (usually less than
100 hours per year) – maximum power output rating

• Prime – continuous operation for an unlimited time (except for normal maintenance
shutdowns), but with regular variations in load – 80% to 85% of the standby rating

• Base-load – continuous full-load operation for an unlimited time (except for normal
maintenance shutdowns) – 70% to 75% of the standby rating.

6
Stoichiometric or rich-burn combustion is required for the use of three-way catalytic converters for emissions
control.
7
Micropilot, prechamber dual-fuel engines.

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3.3 Design Characteristics

The features that affect the use of reciprocating engines for CHP and other distributed generation
applications include:

Size range: Natural gas reciprocating engines are available in sizes from 10
kW to more than 7 MW and can be matched to the electric demand
of many end users (institutional, commercial, and industrial).

Thermal output: Reciprocating engines can produce hot water and low-pressure
steam for a variety of combined heat and power applications.

Fast start-up: In peaking or emergency power applications, reciprocating engines

can quickly supply electricity on demand. The fast start-up
capability of reciprocating engines allows timely resumption of the
system following a maintenance procedure.

Black-start capability: In the event of an electric utility outage, reciprocating engines can
be started with minimal auxiliary power requirements. Generally
only batteries or a compressed air source is required for starting.

Availability: Reciprocating engines have typically demonstrated availability in

excess of 96% in stationary power generation applications.

Part-load operation: The high part-load efficiency of reciprocating engines ensures

economical operation in electric-load-following applications.

High altitude: Modern reciprocating engines generally maintain emissions and

efficiency capability at altitudes up to 5,000 feet.

High ambient Modern reciprocating engines generally maintain emissions and

temperature: efficiency capability at ambient temperatures up to 110°F,
depending on fuel source.

Reliability and life: Reciprocating engines have proven to be reliable power generators,
given proper maintenance.

Emissions: Diesel engines have relatively high emissions levels of NOx and
particulates. However, natural gas spark ignition engines have
better emissions profiles and can be sited in most nonattainment
areas.

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4.0 Cost and Performance Characteristics

This section describes the cost and performance of natural gas reciprocating engine systems for
two primary applications. The first is for systems designed to produce power only. Systems
configured for this purpose could be used in a variety of the applications described in Section 2,
including standby power, peaking, and grid support. The second configuration discussed in this
section is combined heat and power (CHP), where additional equipment is added to the basic
engine to allow recovery and subsequent use of jacket cooling and exhaust heat in industrial
processes or commercial buildings. While CHP systems have many of the characteristics of
power-only systems, they have additional complexity and require design tradeoffs that are
described in this section.

4.1 System Performance

Table 2 provides an overview of performance characteristics and cost of typical natural gas
spark-ignition engine systems commercially available in 2003. Performance characteristics are
shown in the top portion of the table and apply to both power-only and CHP applications. Total
installed cost estimates are provided for both applications. The size range included in the table,
100 kW to 5 MW, covers the majority of the market applications for engine-driven power-only
and CHP applications. The heat rates and efficiencies shown were taken from manufacturers’
specifications and industry publications. Available thermal energy was calculated from
published data on engine exhaust temperatures and engine jacket and lube system coolant flows.
CHP thermal recovery estimates are based on producing hot water for process or space-heating
needs.

As shown in the table, 50% to 60% of the waste heat from engine systems is recovered from
jacket cooling water and after-cooler/lube oil cooling systems at temperatures too low to produce
steam. This lower-temperature characteristic is generally less critical in commercial/institutional
applications, where hot water is a common thermal need. Steam can be produced from the
exhaust heat if required (maximum pressures in the range of 150 psig). Whether steam based or
hot water based, if the building or process thermal requirement is less than the amount of usable
recoverable heat, the excess heat much be rejected to atmosphere, and the total CHP system
efficiency drops accordingly. An alternate operating strategy decreases generator output to match
the thermal demand.

The data in the table show that electrical efficiency increases as engine size becomes larger. As
electrical efficiency increases, the absolute quantity of thermal energy available to produce
useful thermal energy decreases per unit of power output, and the ratio of power to heat for the
CHP system generally increases. The ratio of power to heat impacts project economics and may
affect the decisions that customers make in terms of CHP acceptance, sizing, and the desirability
of selling power.

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 Table 2. Reciprocating Engine Systems – Typical Performance Parameters (2003)

Cost and Performance Characteristics8 System System System System System

1 2 3 4 5
Nominal Capacity (kW) 100 300 1,000 3,000 5,000
Engine Characteristics
Engine Combustion Rich Lean Lean Lean Lean
Electrical Efficiency (%), LHV 33 34 38 39 41
Electric Heat Rate (Btu/kWh), HHV9 11,500 10,967 10,035 9,700 9,213
Electrical Efficiency (%), HHV 30 31 34 35 37
Fuel Input (MMBtu/hr) 1.15 3.29 10.05 29.1 46.1
Engine Speed (rpm) 1,800 1,800 1,200 900 720
Installed Cost – Power Only (2003 $/kW) 1,030 790 720 710 695
Installed Cost – CHP (2003 $/kW)10 1,350 1,160 945 935 890
O&M Costs, (2003 $/kWh) 0.018 0.013 0.009 0.009 0.008
Required Fuel Gas Pressure (psig) <3 18 3-43 43 65
CHP Characteristics
Exhaust Flow (1,000 lb/hr) 1.0 3.5 12.4 48.4 75.6
Exhaust Temperature (°F) 1,060 1,057 914 707 745
Heat Available - Exhaust (MMBtu/hr)11 0.29 0.89 2.11 5.48 9.63
Heat Available – High Temp Cooling (MMBtu/hr)12 0.27 0.63 1.59 4.37 7.04
Heat Available – Low Temp Cooling (MMBtu/hr)13 0 0.12 0.85 1.22 1.38
Total Heat Recovered (MMBtu/hr)14 0.56 1.52 3.70 9.84 16.66
Total Heat Recovered (kW equivalent) 164 445 1,084 2,884 4,883
Form of Recovered Heat Hot H20 Hot H20 Hot H20 Hot H20 Hot H20
Total CHP Efficiency (%)15 78 77 71 69 73
Heat/Fuel Ratio16 0.49 0.46 0.37 0.34 0.36
Power/Heat Ratio17 0.61 0.67 0.92 1.04 1.02
Net Heat Rate (Btu/kWh)18 4,500 4,641 5,422 5,599 5,049
Source: EEA estimates of characteristics for “typical” commercially available natural gas engine gensets.

8
Data based on manufacturer specifications for: MAN 150 kW – 100 kW; Cummins GSK19G – 300 kW; Cummins
QSV91G – 1 MW; Caterpillar G3616 LE – 3 MW; Wartsila 18V34SG – 5 MW. Energy use and exhaust flows
normalized to nominal system sizes.
9
All engine manufacturers quote heat rates in terms of the lower heating value (LHV) of the fuel. However the
purchase price of fuels on an energy basis is typically measured on a higher heating value basis (HHV). For natural
gas, the average HHV is 1030 Btu/kWh and the average LHV is 930 Btu/kWh – about a 10% difference.
10
Installed costs based on CHP system producing hot water from exhaust heat recovery (250°F exhaust outlet from
heat recovery heat exchanger) and high temperature cooling loop
11
Heat available from exhaust heat recovery assumes an exhaust gas outlet temperature from the heat-recovery unit
of 250°F
12
High-temperature cooling includes jacket cooling and medium temperature after-cooler cooling systems, if
applicable – outlet water temperature 190 to 210°F
13
Low-temperature cooling includes lube oil cooling and low-temperature after-cooler cooling systems – outlet
water temperature 110 to 130°F
14
Total Heat Recovered includes exhaust heat recovery and high temperature cooling heat recovery
15
Total CHP Efficiency = (net electric power generated + net thermal energy available)/total engine fuel input
16
Heat/Fuel Ratio = Thermal output (total heat recovered MMBtu/hr) as a fraction of fuel input (MMBtu/hr)
17
Power/Heat Ratio = (CHP electric power output (Btu equivalent))/useful thermal output (Btu)
18
Net Heat Rate = (Total fuel input to the CHP system – fuel normally used to generate the same amount of thermal
output as the CHP system thermal output, assuming efficiency of 80%)/CHP electric output (kW).

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Part-Load Performance

In power generation and CHP applications, reciprocating engines generally drive synchronous
generators at constant speed to produce steady alternating current (AC) power. As load is
reduced, the heat rate of spark-ignition engines increases and efficiency decreases. Figure 2
shows the part-load efficiency curve for a typical lean-burn natural gas engine. The efficiency at
50% load is approximately 8% to 10% less than full-load efficiency. As the load decreases
further, the curve becomes steeper. While gas engines compare favorably to gas turbines, which
typically experience efficiency decreases of 15% to 25% at half-load conditions. Diesel engines
exhibit more favorable part-load characteristics than spark-ignition engines. The efficiency
curve for diesel engines is comparatively flat between 50% and 100% load.

Figure 2. Part-Load Efficiency Performance (Spark-Ignition Engines)

40%

38%

36%
Efficiency (%) (HHV)

34%

32%

30%

28%

26%

24%
20% 30% 40% 50% 60% 70% 80% 90% 100% 110%
Percent Load (%)

Note: Graph data based on Caterpillar G3616 LE engine specifications

Effects of Ambient Conditions on Performance

Reciprocating engines are generally rated at ISO conditions of 77°F and 0.987 atmospheres (1
bar) pressure. Like gas turbines, reciprocating engine performance – both output and efficiency
– degrades with the increase of ambient temperature or site elevation. While the effect on gas
turbines can be significant, it is less so on engines. As a rule-of-thumb, reciprocating engine
power is reduced by approximately 4% per 1,000 feet of altitude above 1,000 feet, while
efficiency decreases about 1% for every 1,000 feet of altitude. Both engine power and efficiency
typically decrease 2% for every 10°F above 110°F. However, each engine model has its own
performance characteristics, which depend on engine-design features, such as turbocharger and
intercooler selection.

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4.2 Combined Heat and Power Performance

The engine portion of a CHP system generally remains the same as that found in power-only
configurations. This section focuses on the heat-recovery system and its performance
characteristics.

Heat Recovery

The economics of engines in on-site power generation applications often depend on effective use
of the thermal energy contained in the exhaust gas and cooling systems, which generally
represents 60% to 70% of the input fuel energy. Most of the waste heat is available in the engine
exhaust and jacket water coolant, while smaller amounts can be recovered from the lube oil
cooler and the charge air after-cooler (if so equipped). The most common use of this heat is to
generate hot water or low-pressure steam for process use or for space heating, domestic hot
water, or absorption cooling. However, the engine exhaust gases also can be used as a source of
direct energy for drying or other direct-heating processes.

In typical engines, heat in the jacket water or coolant accounts for up to 30% of the energy input
and is capable of producing 200°F to 210°F hot water. Some engines, such as those with high-
pressure or ebullient cooling systems, can operate with water jacket temperatures up to 265°F.
Engine exhaust heat represents 30% to 50% of the available waste heat. Exhaust temperatures of
850°F to 1,200°F are typical. By recovering heat from the cooling systems and exhaust,
approximately 70% to 80% of the fuel's energy can be effectively utilized to produce both power
and useful thermal energy.

Closed-loop cooling systems – The most common method of recovering engine heat is the
closed-loop cooling system as shown in Figure 3. These systems are designed to cool the engine
by forced circulation of a coolant through engine passages and an external heat exchanger. A
means of removing excess heat, such as a radiator or cooling tower, is typically required to allow
for rejection of the engine heat that is not utilized by the process. If a means of removing excess
heat is not installed, at times when the process needs less heat, the engine genset electrical output
will need to be reduced to a level where system coolant temperatures can be safely maintained
for proper engine operation. Closed-loop water-cooling systems can operate at coolant
temperatures from 190°F to 250°F. Depending on engine and CHP system requirements, the
lube oil cooling and turbocharger after-cooling may be either separate or from part of the jacket
water-cooling system.

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 Figure 3. Closed-Loop Heat-Recovery System

Customer Heat
Exchanger Exhaust

Engine
Heat
Recovery Gear
Excess Heat Box
Exchanger
T
Oil Cooler

Jacket W ater

Ebullient Cooling Systems – Ebullient cooling systems cool the engine by natural circulation of a
boiling coolant through the engine. This type of cooling system is typically used in conjunction
with exhaust heat recovery to produce low-pressure steam. Cooling water is introduced at the
bottom of the engine where the transferred heat begins to boil the coolant, generating two-phase
flow. The formation of bubbles lowers the density of the coolant, causing a natural circulation to
the top of the engine.

The coolant at the engine outlet is maintained at saturated steam conditions that are usually
limited by the heat available to 250°F and a maximum of 15 psig. Inlet cooling water is also
near saturation conditions and is generally only 2°F to 3°F below the outlet temperature. The
uniform temperature throughout the coolant circuit extends engine life and contributes to
improved combustion efficiencies.

Exhaust Heat Recovery – Exhaust heat is typically used to generate hot water at about 230°F or
low-pressure steam (up to 150 psig). Only a portion of the exhaust heat can be recovered, since
exhaust gas temperatures are generally kept above 250°F to 350°F to prevent the corrosive
effects of condensation in the exhaust piping.

Exhaust heat recovery can be independent of the engine cooling system or coupled with it. For
example, hot water from the engine cooling can be used as feed-water or feed-water preheat to
the exhaust recovery unit. In a typical district-heating system, jacket water cooling, lube oil
cooling, single-stage after-cooling, and exhaust gas heat recovery are all integrated for steam
and/or hot water production.

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4.3 Performance and Efficiency Enhancements

Brake Mean Effective Pressure (BMEP) and Engine Speed

Engine power is related to engine speed and the Brake Mean Effective Pressure (BMEP) during
the power stroke. Reciprocating engines can produce more power from a given displacement
volume (cubic inches or liters) by increasing engine speed and/or the pressure inside the engine’s
cylinders. BMEP can be regarded as an “average” cylinder pressure on the piston during engine
operation, and is an indication of the specific load on an engine. Engine manufacturers often
include BMEP values in their product specifications. Typical BMEP values are as high as 230
psig for large natural gas engines and 350 psig for diesel engines. Corresponding peak
combustion pressures are about 1,750 psig and 2,600 psig, respectively. High BMEP levels
indicate high specific power output, and generally result in improved efficiency and lower
specific capital costs and maintenance costs.

BMEP can be increased by introducing larger volumes of combustion air and fuel into the engine
cylinders through improved turbocharging, improved after-cooling, and reduced pressure losses
through improved air-passage design. These factors all increase air charge density and raise
peak combustion pressures, translating into higher BMEP levels. However, higher BMEP
increases thermal and mechanical stresses within the engine combustion chamber and drive-train
components, along with a potential increase in the tendency for detonation, depending on fuel
type. Proper design and testing is required to ensure continued engine durability and reliability.

Turbocharging

Essentially, all modern industrial engines above 300 kW are turbocharged to achieve higher
power densities. A turbocharger is basically a turbine-driven intake air compressor. The hot,
high-velocity exhaust gases leaving the engine cylinders power the turbine. Very large engines
typically are equipped with two large or four small turbochargers. On a carbureted engine,
turbocharging forces more air and fuel into the cylinders, increasing engine output. On a fuel-
injected engine, the mass of fuel injected must be increased in proportion to the increased air
input. Cylinder pressure and temperature normally increase as a result of turbocharging,
increasing the tendency for detonation for both spark ignition and dual-fuel engines and
requiring a careful balance between compression ratio and turbocharger boost level.
Turbochargers normally boost inlet air pressure by a factor of 3 to 4. A wide range of
turbocharger designs and models is used. Heat exchangers (called after-coolers or inter-coolers)
are often used to cool the combustion air exiting the turbocharger compressor to keep the
temperature of the air to the engine under a specified limit and to increase the air density.

4.4 Capital Cost

This section provides estimates for the installed cost of natural gas spark-ignited, reciprocating
engine-driven generators. Two configurations are presented: power-only and CHP. Capital
costs (equipment and installation) are estimated for the five typical engine genset systems
ranging from 100 kW to 5 MW for each configuration. These are “typical” budgetary price
levels to the end user. Installed costs can vary significantly depending on the scope of the plant
equipment, geographical area, competitive market conditions, special site requirements,

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emissions control requirements, prevailing labor rates, and whether the installation is a new or
retrofit application.

In general, engine gensets do not show the economies of scale that are typical when costing
industrial equipment of different sizes. Smaller genset packages are often less costly on a
specific cost basis ($/kW) than larger gensets. Smaller engines typically run at a higher speed
(rpm) than larger engines and often are adaptations of high-production-volume automotive or
truck engines. These two factors combine to make the small engines cost less than larger,
slower-speed engines.

The basic genset package consists of an engine connected directly to a generator without a
gearbox. In countries where 60 Hz power is required, the gensets run at speeds that are multiples
of 60 – typically 1,800 rpm for smaller engines and 900 or 720 rpm for large engines. In areas
where 50 Hz power is used, such as Europe and parts of Japan, the engines run at speeds that are
multiples of 50 – typically 1,500 rpm for smaller high-speed engines. The smaller engines are
skid-mounted with a basic genset control system, fuel system, radiator, radiator fan, and starting
system. Some smaller packages come with an enclosure, integrated heat-recovery system, and
basic electric-paralleling equipment. The cost of the basic engine genset package plus the cost
for added systems needed for the particular application or site comprise the total equipment cost.
The total installed cost includes total equipment cost, plus installation labor and materials
(including site work), engineering, project management (including licensing, insurance,
commissioning, and startup), and contingency.

Table 3 provides cost estimates for current power-only systems. The estimates are based on a
simple installation with minimal site preparation required. These cost estimates are for base-load
or extended peaking operation and include provisions for grid interconnection and paralleling.
The package costs are intended to reflect a generic representation of popular engines in each size
category. The engines all have low emission, lean-burn technology (with the exception of the
100 kW system, which is a rich burn engine that would require a three-way catalyst in most
urban installations). The interconnect/electrical costs reflect the costs of paralleling a
synchronous generator, although many 100 kW packages available today use induction
generators that are simpler and less costly to parallel.19 However, induction generators cannot
operate isolated from the grid and will not provide power to the site when the grid is down.
Labor/materials represent the labor cost for the civil, mechanical, and electrical work – as well as
materials such as ductwork, piping, and wiring – and is estimated to range from 35% of the total
equipment cost for smaller engines to 20% for the largest. Project and construction management
also includes general contractor markup and bonding, as well as performance guarantees, and is
estimated to range from 10% of the total equipment cost for small engines to 8% for the largest
engines. Engineering and permitting fees are estimated to range from 5% to 8% of the total
equipment cost depending on engine size. Contingency is assumed to be 5% of the total
equipment cost in all cases.

19
Reciprocating Engines for Stationary Power Generation: Technology, Products, Players, and Business Issues,
GRI, Chicago, IL and EPRIGEN, Palo Alto, CA: 1999. GRI-99/0271, EPRI TR-113894.

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 Table 3. Estimated Capital Cost for Typical Reciprocating Engine-Generators in
Grid-Interconnected Power-Only Applications (2003)
System System System System System
Cost Component
1 2 3 4 5

Nominal Capacity (kW) 100 300 1,000 3,000 5,000

Cost ($/kW)
Equipment
Genset Package 400 350 370 440 450
Interconnect/Electrical 250 150 100 75 65
Total Equipment 650 500 470 515 515

Labor/Materials 228 175 141 103 103

Total Process Capital 878 675 611 618 618

Project and Construction 66 50 47 40 25

and Management
Engineering and Fees 53 40 38 26 26
Project Contingency 33 25 24 26 26

Total Plant Cost (2003 $/kW) $1,030 $790 $720 $710 $695

Source: Energy and Environmental Analysis, Inc., estimates

Table 4 shows the cost estimates on the same basis for combined heat and power applications.
The CHP systems are assumed to produce hot water, although the multi-megawatt size engines
are capable of producing low-pressure steam. The heat recovery equipment consists of an
exhaust heat exchanger that extracts heat from the exhaust system, a process heat exchanger that
extracts heat from the engine jacket coolant, a circulation pump, a control system, and piping.
The CHP system also requires additional engineering to integrate the system with the on-site
process. Installation costs are generally higher than power-only installations due to increased
project complexity and the higher performance risks associated with system and process
integration. Labor/materials, representing the labor cost for the civil, mechanical, and electrical
work – as well as materials such as ductwork, piping, and wiring – is estimated to range from
55% of the total equipment cost for smaller engines to 35% for the largest CHP installations.
Project and construction management is estimated to be 10% of the total equipment cost for all
engines. Engineering and permitting fees are estimated to range from 10% to 8% of the total
equipment cost depending on engine size. Contingency is assumed to be 5% of the total
equipment cost in all cases.

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 Table 4. Estimated Capital Cost for Typical Reciprocating Engine-Generators in
Grid-Interconnected CHP Applications (2003)
System System System System System
Cost Component
1 2 3 4 5

Nominal Capacity (kW) 100 300 1,000 3,000 5,000

Cost ($/kW)
Equipment
Genset Package 500 350 370 440 450
Heat Recovery incl. 180 90 65 40
Interconnect/Electrical 250 150 100 75 65
Total Equipment 750 680 560 580 555

Labor/Materials 413 306 240 220 210

Total Process Capital 1,163 986 800 800 765

Project and Construction 75 70 56 58 55

and Management
Engineering and Fees 75 70 56 48 44
Project Contingency 38 34 28 28 28

Total Plant Cost (2003 $/kW) $1,350 $1,160 $945 $935 $890

Source: Energy and Environmental Analysis, Inc., estimates

4.5 Maintenance
Maintenance costs vary with engine type, speed, size, and number of cylinders, and typically
include:

• Maintenance labor

• Engine parts and materials, such as oil filters, air filters, spark plugs, gaskets, valves,
piston rings, electronic components, and consumables (such as oil).

• Minor and major overhauls.

Maintenance can be done either by in-house personnel or contracted out to manufacturers,

distributors, or dealers under service contracts. Full maintenance contracts (covering all
recommended service) generally cost 0.7 to 2.0 cents/kWh, depending on engine size, speed,
and service, as well as customer location. Many service contracts now include remote
monitoring of engine performance and condition and allow predictive maintenance. Service
contract rates typically are all-inclusive, including the travel time of technicians on service calls.

Recommended service is comprised of routine short-interval inspections/adjustments and

periodic replacement of engine oil and filter, coolant, and spark plugs (typically at 500 to 2,000

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hours). Oil analysis to monitor engine wear is part of most preventive maintenance programs. A
top-end overhaul, which entails rebuilding cylinder heads and turbochargers, is generally
recommended at between 8,000 and 30,000 hours of operation (see Table 5). A major overhaul
is performed after 30,000 to 72,000 hours of operation and involves piston/liner replacement,
crankshaft inspection, bearings, and seals (Table 5).

Table 5. Representative Overhaul Intervals for Reciprocating Engines in Base-load Service

Time Between Overhauls – (Thousands of Operating Hours)

Engine Speed 720 rpm 900 rpm 1200 rpm 1500 rpm 1800 rpm
Minor Overhaul > 30 15 - 36 24 - 36 10 - 20 8 - 15
Major Overhaul > 60 40 - 72 48 - 60 30 - 50 30 - 36

Source: SFA Pacific, Inc.

The maintenance costs presented in Table 6 are based on engine manufacturer estimates for
service contracts consisting of routine inspections and scheduled overhauls of the engine-
generator set. Costs are based on 8,000 annual operating hours, expressed in terms of annual
electricity generation.

Table 6. Typical Natural Gas-Fuel Reciprocating Engine O&M Costs (2003)

O&M Costs 20 System System System System System

1 2 3 4 5

Nominal Capacity, kW 100 300 800 3,000 5,000

Variable (service contract), $/kWh 0.017 0.012 0.0085 0.0083 0.0079
Fixed, $/kW-yr 10 5 4 1.5 1.1
Fixed, $/kWh @ 8,000 hrs/yr 0.00125 0.00063 0.0005 0.00019 0.00014

Total O&M Costs, (2003 $/kWh) 0.018 0.013 0.009 0.009 0.008

Source: Energy and Environmental Analysis, Inc., estimates

4.6 Fuels

Spark-ignition engines can be operated on a variety of alternative gaseous fuels, including:

• Liquefied petroleum gas (LPG) – propane and butane mixtures.

20
Maintenance costs presented in Table 6 are based on 8,000 operating hours expressed in terms of annual
electricity generation. Fixed costs are based on an interpolation of manufacturers' estimates. The variable
component of the O&M cost represents the inspections and overhaul procedures that are normally conducted by the
prime mover original equipment manufacturer through a service agreement, usually based on hours of operation.

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 • Sour gas – unprocessed natural gas as it comes directly from the gas well.

• Biogas – combustible gases produced from biological degradation of organic wastes,

such as landfill gas, sewage digester gas, and animal waste digester gas.

• Industrial waste gases – flare gases and process off-gases from refineries, chemical
plants, and steel mills.

• Manufactured gases – typically low- and medium-Btu gas produced by gasification or

pyrolysis processes.

Factors that impact the operation of a spark-ignition engine with alternative gaseous fuels
include:

• Volumetric heating value – Since engine fuel is delivered on a volume basis, fuel volume
into the engine increases as heating value decreases, requiring engine derating on fuels
with very low heating value. Derating is more pronounced with naturally aspirated
engines, and may be compensated partly or totally by turbocharging the engine,
depending on air requirements.

• Auto-ignition characteristics and detonation tendency.

• Contaminants that may impact engine component life or engine maintenance, or result in
air pollutant emissions that require additional control measures.

• Hydrogen content, which may require special measures (generally if hydrogen content by
volume is greater than 5%) because of hydrogen’s uniquely high flammability, flame
speed, and heat-release characteristics.

Table 7 compares representative compositions of some of the alternative gaseous fuels to natural
gas. Industrial waste and manufactured gases are not included in the table because their
compositions vary widely, depending on their source. They typically contain significant levels
of H2 and/or CO. Other common constituents are CO2, water vapor, light hydrocarbons, H2S,
and SO2.

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 Table 7. Major Constituents of Gaseous Fuels

Natural LPG Digester Landfill

Gas Gas Gas

Methane, CH4, (%) 80 - 97 0 35 - 65 40 - 60

Ethane, C2H6, (%) 3 - 15 0-2 0 0
Propane, C3H8, (%) 0-3 75 - 97 0 0
Butane, C4H10, (%) 0 - 0.9 0-2 0 0
Higher CxHx, (%) 0 - 0.2 0 - 20 21 0 0
CO2, (%) 0 - 1.8 0 30 - 40 40 - 60
N2, (%) 0 - 14 0 1-2 0 - 13
H2, (%) 0 - 0.1 0 0 0

HHV, (Btu/scf) 830 - 1,075 2,500 300 - 600 350 - 550

Source: SFA Pacific, Inc.; North American Combustion Handbook.

Contaminants are a concern with many waste fuels, specifically acid-gas components (H2S,
halogen acids, hydrogen cyanide); ammonia; salts and other metal-containing compounds;
organic halogen-, sulfur-, nitrogen-, and silicon-containing compounds (siloxanes); and oils. In
combustion, halogen and sulfur compounds form halogen acids, SO2, some SO3, and possibly
H2SO4 emissions. If the exhaust temperature is allowed to drop below the acid dew point in the
exhaust system, the acids also can corrode downstream equipment and greatly shorten lube oil
life. A substantial fraction of any fuel-bound nitrogen will be oxidized into NOx in combustion.
Solid particulates must be kept to very low concentrations to prevent corrosion and erosion of
combustion chamber and turbocharger components. Various fuel-scrubbing, droplet-separation,
and filtration steps will be required if any fuel-contaminant levels exceed manufacturers’
specifications. Landfill gas, in particular, often contains chlorine compounds, sulfur compounds,
organic acids, and silicon compounds, which necessitate pretreatment.

Once alternative fuels are treated and made acceptable for use in engines, their emissions
performance profiles are similar to natural gas-engine performance. Specifically, the low
emissions ratings of lean-burn engines usually can be maintained on alternative fuels.

LPG
LPG is composed primarily of propane and/or butane. Propane can be used in natural gas
engines, with retarding of ignition timing and other appropriate adjustments. LPG is often used
as a back-up fuel where there is a possibility of interruption in the natural gas supply. LPG is
delivered as a vapor to the engine. LPG’s use is limited in high-compression engines because of
its relatively low octane number. In general, LPG for engines contains 95% propane by volume
with an HHV of 2,500 Btu/scf, and with the remaining 5% not heavier than butane. Off-spec
LPG may require cooling to condense out larger volumes of butane or heavier hydrocarbons.

21
High levels of heavier hydrocarbons are found in LPG derived from refinery processing

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High butane content LPG is recommended only for low compression, naturally aspirated
engines. Timing must be retarded significantly to avoid detonation.

Field (Well-head) Gas

Field gas often contains more than 5% by volume of heavy ends (butane and heavier), as well as
water, salts, and H2S and usually requires some scrubbing before use in natural gas engines.
Cooling may be required to reduce the concentrations of butane and heavier components. Field
gas usually contains some propane and is normally used in low compression engines (both
naturally aspirated and turbocharged). Ignition timing is normally retarded to avoid detonation.

Biogas
Biogases (landfill gas and digester gas) are predominantly mixtures of methane and CO2 with
HHV in the range of 300 to 600 Btu/scf. Landfill gas also contains a variety of contaminants, as
discussed earlier. Biogases are produced at near-atmospheric pressure, so they must be
compressed for delivery to the engine. After compression is completed, cooling and scrubbing
(or filtration) are required to remove compressor oil, condensate, and particulates that may have
been entrained in the original gas. Scrubbing with a caustic solution may be required if acid
gases are present. Because of the additional requirements for raw gas treatment, biogas-powered
engine facilities are more costly to build and operate than natural gas-based systems.

Industrial Waste Gases

Industrial waste gases that are common reciprocating engine fuels include refinery gases and
process off-gases. Refinery gases typically contain components such as H2, CO, light
hydrocarbons, H2S, and ammonia, as well as CO2 and N2. Process off-gases may have a wide
variety of compositions. Generally, waste gases are medium- to low-Btu content. Medium-Btu
gases generally can be used without significant engine derating, but derating is usually necessary
with low-Btu gases.

Depending on their origin and contaminants, industrial gases may require pretreatment
comparable to that applied to raw landfill gas. Particulates (e.g., catalyst dust), oils, condensable
gases, water, hydrocarbons heavier than propane, and acid gases (hydrogen sulfide and carbon
dioxide) may all need to be removed from the gas to make it suitable for reciprocating engines.
Process off-gases are usually available at pressures of several atmospheres or higher, which are
generally sufficient for use in an on-site or nearby reciprocating engine facility without further
compression.

4.7 Availability and Life

Although reciprocating engines are generally perceived as maintenance-intensive, they can

provide high levels of availability, even in high-load-factor applications. While natural gas
engine availabilities vary with engine type, speed, and fuel quality, the major engine
manufacturers estimate engine availability to be 96% for continuous duty applications.
Improvements in diagnostics and controls are expected to increase availability to 97.5% over the
planning horizon of this report (2030). The manufacturers also estimate that the forced outage to
scheduled outage rate ratio is currently 2 to 1.

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The use of multiple units or back-up units at a site can further increase the availability and
reliability of the overall cogeneration facility. Some engine manufacturers offer engine
exchange programs or other maintenance options that increase the ability to promptly deliver and
install replacement units on short notice if needed.

The service life of natural gas reciprocating engine systems is estimated to be 20 years – if they
receive several minor and at least one major overhaul during that time. Costs of these overhauls
are included in the nonfuel maintenance estimates presented earlier in the report. The economic
life of natural gas-engine systems is typically assumed to be 20 years.

5.0 Emission Characteristics

Exhaust emissions are the primary environmental concern with reciprocating engines. The
primary pollutants are oxides of nitrogen (NOx), carbon monoxide (CO), and volatile organic
compounds (VOCs - unburned or partially burned non-methane hydrocarbons). Concentrations
of other pollutants, such as oxides of sulfur (SOx) and particulate matter (PM) are primarily
dependent on the fuel used. Emissions of sulfur compounds, primarily SO2, are directly related
to the sulfur content of the fuel. Engines operating on natural gas or distillate oil, which has been
desulfurized in the refinery, emit insignificant levels of SOx. In general, SOx emissions are an
issue only in larger, lower-speed diesel engines firing heavy oils. Particulate matter (PM) can be
an important pollutant for engines that use liquid fuels. Ash and metallic additives in the fuel
and lubricating oil contribute to PM concentrations in the exhaust.

5.1 Control Options

NOx emissions are usually the primary concern with natural gas engines and are a mixture of
(mostly) NO and NO2 in variable proportions. Measurements of NOx are reported as parts per
million by volume, in which both species count equally (e.g., ppmv at 15% O2, dry). Other
common units for reporting NOx in reciprocating engines are specific output-based emission
factors, such as g/hp-hr and g/kW-hr, or as total output rates, such as lb/hr. Among the engine
options without exhaust after-treatment, lean-burn natural gas engines produce the lowest NOx
emissions; and diesel engines produce the highest (Table 8).

Table 8. Representative NOx Emissions from Reciprocating Engines

(Without Add-on Controls)

Engines Efficiency Fuel NOx NOx

Range (ppmv) (g/bhp-hr)
(%, LHV)
Diesel Engines (high-speed 37 to 44 Distillate 450 - 1,350 5 - 14
and medium-speed)
Diesel Engines (high-speed 42 to 48 Heavy Oil 900 - 1,800 9 - 15
and medium-speed)
Lean-Burn, Spark-Ignition 35 to 42 Natural Gas 45 - 150 0.5 - 2
Engine
Source: Energy and Environmental Analysis, Inc., estimates

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The control of peak flame temperature through lean-burn conditions has been the primary
emissions combustion design approach to controlling NOx formation in gas engines. Diesel
engines have higher combustion temperatures and produce more NOx than lean-burn gas
engines, even though the overall diesel engine air/fuel ratio may be very lean. There are three
reasons for this: (1) heterogeneous near-stoichiometric combustion of fuel droplets, (2) the
higher adiabatic flame temperature of distillate fuel, and (3) fuel-bound nitrogen (nitrogen that is
part of an organic component of the fuel). The diesel fuel is atomized as it is injected and
dispersed in the combustion chamber. Combustion largely occurs at near-stoichiometric
conditions at the air-droplet and air-fuel vapor interfaces, resulting in maximum temperatures
and higher NOx formation. In contrast, the lean-premixed homogeneous combustion in lean-burn
gas engines results in lower peak combustion temperatures and lower NOx production.

For any engine there are generally trade-offs between low NOx emissions and high efficiency.
There are also trade-offs between low NOx emissions and emissions of the products of
incomplete combustion (CO and unburned hydrocarbons). There are three main approaches to
these trade-offs that may come into play, depending on regulations and economics. One
approach is to control for lowest NOx accepting a fuel efficiency penalty and possibly higher CO
and hydrocarbon emissions. A second option is finding an optimal balance between emissions
and efficiency. A third option is to design for highest efficiency and use post-combustion
exhaust treatment to control emissions if required for permitting purposes.

NOx control has been the primary focus of emission-control research and development in natural
gas engines in recent years. The following provides a description of the most prominent
emission-control approaches.

Combustion Process Emissions Control

Control of combustion temperature has been the principal focus of combustion process control in
gas engines. Combustion control involves tradeoffs. High temperatures favor complete
combustion of the fuel and low residual unburned hydrocarbons and CO, but high temperatures
also promote NOx formation. Very lean combustion dilutes the combustion process and reduces
combustion temperatures and NOx formation, and it allows for higher compression ratios and
mean effective firing pressures, resulting in higher efficiency. However, if the mixture is too
lean, misfiring and incomplete combustion occur, increasing CO and VOC emissions.

Lean-burn engine technology was developed during the 1980s as a direct response to the need
for low-emission gas engines. Thermal NOx formation is a function of both flame temperature
and residence time. Lean-burn developments reduced combustion temperature in the cylinder
using lean fuel/air mixtures. Lean combustion decreases the fuel/air ratio in the zones where
NOx is produced, so that peak flame temperature is lower than the stoichiometric adiabatic flame
temperature, thereby suppressing thermal NOx formation. More uniform mixing of fuel and air
reduces the incidence of the local peaks in temperature that contribute heavily to NOx emissions.
Many lean-burn gas engines introduce the fuel prior to the engine turbocharger, which provides a
well-mixed, lean fuel-air supply to the combustion chambers. Lean-burn engines generally use
50% to 100% excess air (above stoichiometric). Typical NOx emission rates for lean-burn
natural gas engines are 0.5 to 2.0 g/bhp-hr.

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As discussed above, an added performance advantage of lean-burn operation is higher output and
higher efficiency resulting from the higher compression ratios. Optimal lean-burn operation
requires sophisticated engine controls to ensure that combustion remains stable and NOx
reduction is maximized while minimizing emissions of CO and VOCs. Table 9 shows data for a
large lean-burn natural gas engine and illustrates the tradeoffs between NOx emissions control
levels and efficiency. To obtain the lowest achievable NOx levels (45 to 50 ppmv), 1.3
efficiency percentage points are lost.

Table 9. NOx Emissions versus Efficiency Tradeoff Example

Engine Characteristics Low NOx High Efficiency

Capacity (MW) 5.2 5.2

Speed (rpm) 720 720
Efficiency, LHV (%) 40.7 42.0
Emissions:
NOx (g/bhp-hr) 0.5 1.1
(ppmv @ 15% O2) 46 92
CO (g/bhp-hr) 2.5 1.5
(ppmv @ 15% O2) 361 227
VOC (g/bhp-hr) 0.7 0.5
(ppmv @ 15% O2) 61 39
Based on engine manufacturer’s data – Wartsila 18V34SG Prechamber Lean-Burn Gas Engine.

Combustion temperature also can be controlled, to some extent, in reciprocating engines by one
or more of the following techniques:

• Retarding ignition timing or fuel injection, thereby reducing peak cylinder pressure and
temperature

• Diluting the fuel-air mixture with recirculated exhaust gases (EGR), which displace some
of the combustion air and contain water vapor that has a relatively high heat capacity and
absorbs some of the heat of combustion

• Introducing water by direct injection or via fuel oil emulsification – evaporation of the
water cools the fuel-air mixture charge

• Reducing the inlet air temperature with a heat exchanger after the turbocharger, or by
inlet air humidification

• Modifying valve timing, compression ratio, turbocharging, and combustion chamber

configuration.

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Water injection and EGR are widely known techniques for diesel engines, and they reduce NOx
emissions by 30% to 60% from uncontrolled levels. The incorporation of water injection and
enhanced EGR into lean-burn gas engines is the focus of ongoing R&D by several engine
manufacturers and are both being pursued as potential options in the Department of Energy’s
Advanced Reciprocating Engine Systems (ARES) program.

Post-Combustion Emissions Control

There are several types of catalytic exhaust gas treatment processes that are applicable to
reciprocating engines:

Three-Way Catalyst – The catalytic three-way conversion process (TWC) is the basic automotive
catalytic converter process that reduces concentrations of all three major criteria pollutants –
NOx, CO, and VOCs. The TWC process is also called nonselective catalytic reduction (NSCR).
NOx and CO reductions are generally greater than 90%, and VOCs are reduced approximately
80% in a new, properly controlled TWC system. Conversion of NOx to N2 and CO and
hydrocarbons to CO2 and H2O will not take place in atmospheres with excess oxygen (the
exhaust gas must contain less than 0.5% O2). Therefore, TWCs are only effective with
stoichiometric or rich-burning engines. Typical “engine out” (i.e., untreated exhaust) NOx
emission factors for rich-burn engines are 10 to 15 g/bhp-hr. NOx emissions with TWC control
can be as low as 0.15 g/bhp-hr; however, catalyst performance may deteriorate over time. The
extent of deterioration depends on the fuel used, oil consumption, and maintenance practices.

Stoichiometric and rich-burn engines have significantly lower efficiency than lean-burn engines.
Periodic replacement of the catalysts in TWC systems also increases maintenance costs by as
much as 25%. TWCs use noble metal catalysts that are vulnerable to poisoning and masking
(fouling), which limits their use to engines operated with clean fuels, such as natural gas or
unleaded gasoline. Also, the engines must use lubricants that do not generate catalyst-poisoning
compounds and have low concentrations of metal-based additives. Unburned fuel, unburned
lube oil, and particulate matter also can foul the catalyst. TWC technology is not applicable to
lean-burn gas engines or diesels.

Selective Catalytic Reduction (SCR) – This technology selectively reduces NOx to N2 in the
presence of a reducing agent. NOx reductions of 80% to more than 90% are achievable with
SCR. Higher reductions are possible with the use of more catalyst, increased reducing agent
feed rates, or utilizing closed loop feedback systems – or a combination of these three
techniques. The two commercially available reducing agents are ammonia (NH3 in anhydrous
liquid form or aqueous solution) and aqueous urea. Urea decomposes in the hot exhaust gas and
SCR reactor, releasing ammonia. Approximately 0.9 to 1.0 moles of ammonia are required per
mole of NOx at the SCR reactor inlet in order to achieve 80% to 90% NOx reduction.

SCR systems add significant installation, operation, and maintenance costs and can severely
impact the economic feasibility of small engine projects. SCR requires on-site storage of urea or
ammonia, a hazardous chemical. In addition ammonia can “slip” through the process unreacted,
contributing to environmental health concerns.

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Oxidation Catalysts – Oxidation catalysts generally are precious metal compounds that promote
oxidation of CO and hydrocarbons to CO2 and H2O in the presence of excess O2. CO and
NMHC conversion levels of 98% to 99% are achievable. Methane conversion may approach
60% to 70%. Oxidation catalysts are now widely used with all types of engines, including diesel
engines. They are being used increasingly with lean-burn gas engines to reduce their relatively
high CO and VOC emissions.

Lean-NOx Catalysts – Lean-NOx catalysts utilize a hydrocarbon (usually the engine fuel) injected
upstream of the catalyst to react with and reduce NOx. While this technique is still under
development, it appears that NOx reduction of 80% and both CO and NMHC emissions
reductions of 60% may be possible. Long-term testing, however, has raised issues about
sustained performance of the catalysts. Current lean-NOx catalysts are prone to poisoning by
both lube oil and fuel sulfur. Both precious-metal and base-metal catalysts are highly intolerant
of sulfur. This technology can significantly increase fuel use – the high NOx output of diesel
engines would require approximately 3% of the engine fuel consumption for the catalyst system.

5.2 System Emissions

Table 10 shows typical emissions for each of the five reciprocating engine systems. The
emissions presented are based on natural gas engine exhaust emissions with no exhaust after-
treatment. System 1, the 100 kW engine, is a high-speed, rich-burn engine.

Table 10. Reciprocating Engine Emissions Characteristics

(Without Exhaust-Control Options*)

Emissions Characteristics22 System System System System System

1 2 3 4 5
Nominal Capacity, (kW) 100 300 1,000 3,000 5,000
Electrical Efficiency, (%) 30 31 34 35 37
Engine Combustion Rich Lean Lean Lean Lean

NOx, (g/bhp-hr) 15 2 1 0.7 0.5

NOx, (ppmv @ 15% O2) 1,100 150 80 60 40
NOx, (lb/MWh) 46 6.2 3.1 2.2 1.6
CO, (g/bhp-hr) 12 2 2 2.5 2.4
CO, (lb/MWh) 37 6.2 6.2 7.8 7.4
VOC, (g/bhp-hr) 0.7 1.0 1.0 1.3 0.5
VOC, (lb/MWh) 2.2 3.1 3.1 4 1.6
CO2, (lb/MWh) 1,345 1,283 1,175 1,135 1,078
For typical natural gas-fueled systems commercially available in 2003. Emissions estimates are for untreated engine
exhaust (no TWC, SCR, or other exhaust clean-up). Estimates are based on manufacturers’ specifications.

22
Characteristics for “typical” commercially available natural gas engine gensets. Data based on: MAN 150 kW –
100 kW; Cummins GSK19G – 300 kW; Cummins QSV91G – 1 MW; Caterpillar G3616 LE – 3 MW; Wartsila
18V34SG - 5 MW

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Use of a TWC system would reduce NOx emissions to 0.15 g/bhp-hr, CO emissions to 0.6 g/bhp-
hr, and VOC emissions to 0.15 g/bhp-hr. Systems 2 through 5 are all lean-burn engines
optimized for low emissions. Use of an oxidation catalyst could reduce CO and VOC emissions
from these engines by 98% to 99%.

With current commercial technology, highest efficiency and lowest NOx are not achieved
simultaneously. Therefore many manufacturers of lean-burn gas engines offer different versions
of an engine – a low NOx version and a high-efficiency version – based on different tuning of the
engine controls and ignition timing. Achieving highest efficiency operation results in conditions
that generally produce twice as much NOx as low NOx versions (e.g., 1.0 g/bhp-hr versus 0.5
g/bhp-hr). Achieving the lowest NOx typically entails sacrifice of 1 to 2 points in efficiency
(e.g., 36% versus 38%). In addition, CO and VOC emissions are generally higher for engines
optimized for minimum NOx.

6.0 Key Technology Objectives

Manufacturers of stationary engines have pursued significant R&D, driven by competition (both
among themselves and from other prime movers) and by environmental pressures. Efforts have
focused on reducing emissions (NOx for gas engines, NOx and particulates for diesels),
increasing engine efficiency and power, reducing engine costs, and extending maintenance
intervals. The pace of technology advances in stationary engines has accelerated with the
adoption of improved combustion techniques, and controls and sensor technologies developed
for automotive and truck engines, as well as the adoption of increasingly stringent emissions
regulations.

The primary research and development goals of natural gas-engine manufacturers include the
following:

• Reduced environmental impact – application of advanced combustion technology and

improved sensors and controls to attain emissions levels comparable to gas turbines (i.e.,
10 ppmv NOx on a 15% O2 basis) without sacrificing fuel efficiency and without exhaust
gas treatment, or alternatively, low-cost exhaust gas treatment for final control of NOx,
CO and VOCs.

• Lower initial engine costs – increases in power densities that result in lower $/kW costs

• Lower operation and maintenance costs – reducing engine wear and complexity,
simplifying required service, extending service intervals, and minimizing
operator/technician attention

• Longer engine life – extending the time between minor and major overhauls

• Higher efficiencies – application of high-temperature materials, engine sensors and

controls, and improved combustion practices

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 • Higher reliability and availability

• Increase heat recovery for CHP applications through utilization of low temperature
cooling circuits and improved thermal management.

Upgrading current natural gas-engine designs and optimizing for emissions and performance are
challenging tasks because of the complex interrelationships among combustion process
variables, operating cycle parameters, engine dynamics, and mechanical designs. The primary
technical issues include increasing BMEP and engine speed, improved engine controls, improved
materials, improved ignition systems, and exhaust gas treatment.

Increasing BMEP and Engine Speed

Increasing BMEP or engine speed increases power output and power density. However,
increasing either parameter taxes the materials and strength of the engine and affects friction and
lubrication demands, wear, efficiency, cooling load, and emissions.

Raising the BMEP increases the peak temperature within the cylinder, unless offset by
techniques to keep temperature under control. Temperature can be controlled by leaning out the
fuel-air mixture further, or by using exhaust gas recirculation or water injection. Hotter
combustion generally provides more complete combustion of the fuel and higher efficiency, but
it increases NOx emissions, reduces spark plug life, may shorten the life of other combustion
chamber components, and decreases effectiveness of lubricants.

Increasing engine speed is often used to increase the output of an existing engine design. The
ability to uprate an existing engine depends on how conservatively the engine block and drive
train initially were designed. Many engines of a particular bore and stroke are already optimized
for a selected speed. Operating at or near their maximum design speeds on a continuous basis
increases engine wear and maintenance and, in some cases, may increase the risk of engine
damage. An engine’s speed cannot be increased beyond a certain dynamic limit without
requiring extensive redesign.

Improved Engine Controls

As the air-fuel ratio and BMEP are increased in high-performance, lean-burn engines, the
operating region between detonation and misfire is narrowed, so that precise control of fuel-air
ratio and ignition timing for each cylinder at the optimum combustion point is essential. Gas
engines operating in the pinch zone between detonation and lean misfiring – where high
efficiency and low emissions are possible – may be at higher risk of damage due to failure of a
critical sensor or control component or shifts in fuel quality (specific heat content). Advanced
electronics enable the individual cylinder ignition control that is essential to operate gas engines
in the pinch zone.

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Advances in this area include improved fuel-injection timing and injection-rate shaping,
improved knock (detonation) sensors, pressure sensors for monitoring peak pressures and BMEP
in individual cylinders, improved ignition systems, and programmable logic control of the engine
for optimal performance under a wide range of conditions, including humidity compensation and
knock detection. Many of these advances were achieved by incorporating new technology from
automotive and truck-engine designs. Such advances include model-based controls, which are
gaining attention for the design of advanced engine control systems and promise highly robust
control strategies that incorporate a high degree of subsystem integration for optimum emissions
and efficiency performance.

Improved Materials

Work is ongoing on new and improved alloys, ceramics, and composite materials for
components (cylinder liners, piston rings, valves, and valve seats) to support the more
demanding engine operating conditions associated with increased output and to reduce
component wear and extend service intervals. Several major engine manufacturers have been
testing silicon nitride valve seats for a number of years. New materials and thermal barriers also
are being incorporated to increase efficiency by reducing energy losses in exhaust ports and
manifolds, and in reducing in-cylinder heat loss.

Improved Ignition Systems

Improving spark plug materials and life remains a major priority of engine manufacturers. As an
example, noble metal spark plugs that are under development have the potential to significantly
extend spark plug life. Electronic ignition allows for improved combustion control. However,
the technologies now available are the result of development efforts for high-speed automotive
engine applications. These technologies are not necessarily designed for the load and pressure
effects that high-speed (1,200 to 1,800 rpm), stationary engines require. Higher compression
ratios and leaner operation will further increase the need for improved ignition systems.
Research to understand the ignition system demands and ignition system dynamics in medium-
speed natural gas engines is needed to achieve optimized ignition systems that will meet
customer expectations for component life and maintenance costs.

Exhaust Gas Treatment

While engine manufacturers continue to improve emissions from gas engines through
combustion control, work also continues on improving the performance and reducing the costs of
exhaust gas after-treatment options. The primary focus for gas engines is the development of
lean-NOx catalysts. As discussed earlier, lean-NOx catalysts utilize a hydrocarbon reducing
agent (usually the engine fuel) injected upstream of the catalyst to reduce NOx. These catalysts
are still under development, but it appears that NOx reduction of 80% and both CO and NMHC
emissions reductions of 60% may be possible. Long-term testing, however, has raised issues
about sustained performance of the catalysts. Current lean-NOx catalysts can be poisoned by
both lube oil and fuel sulfur. Both precious-metal and base-metal catalysts are highly intolerant
of sulfur.

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Another emission-control strategy under investigation involves the use of increased exhaust gas
recirculation (EGR) and a three-way catalyst for NOx reduction23. As described in Section 5 of
this chapter, three-way catalysts efficiently reduce NOx, but the overall exhaust composition
must be within 0.5% of stoichiometric conditions. This requirement prevents the use of air as a
diluent, as is used in current lean-burn engines. The use of EGR to dilute the fuel-air charge
would be similar in principle to lean burn, with recycled exhaust taking the place of excess air to
dilute the intake fuel charge and reduce cylinder temperatures and hot spots. The advantage of
EGR is that a three-way catalyst could then be used to reduce the NOx because the exhaust
mixture would contain little oxygen. This approach, however, would create a new set of
necessary tradeoffs. While dilution with EGR can reduce NOx, there is a limit to the amount of
dilution that can be used – analogous to the lean-burn engine at the lean limit. The amount of
acceptable EGR dilution is usually less than can be achieved with air, so the NOx emissions
produced by the engine are higher; but the emissions could be reduced through the use of the
three-way catalysts, which are a simpler and more cost-effective post-combustion treatment
option than selective catalytic reduction.

Advanced Reciprocating Engine Systems (ARES) Program

A national development program to increase the efficiency and decrease the emissions of
stationary gas engines was initiated by the U.S. Department of Energy and a consortium of
engine manufacturers in 2001. Target goals include 50% electrical efficiency (LHV) and NOx
emissions as low as 0.1 g/bhp-hr. The ARES program is investigating various approaches to
increase BMEP, alternative ignition techniques (including micropilot dual fuel), extension of
lean combustion limits, knock mitigation with water injection, exhaust gas after-treatment, and a
variety of supporting efforts in combustion chamber design, friction reduction techniques, heat
loss reduction, and combustion modeling/simulation.

Gas engines will continue to improve as R&D advances are incorporated into new products.
With the anticipated advanced techniques, materials, and technologies, further improvements in
power densities, efficiencies, emissions, durability, and reliability are expected. However,
evolving environmental regulations and their potential to add significant costs to stationary
engine applications remain as major risks to the competitiveness of stationary engines.

7.0 Advanced Technology Projections

The cost and performance of industrial gas engines have continually improved. Efficiency has
increased, capital costs have fallen, and emissions have declined. Significant private- and
public-sector investment should result in additional incremental, and potentially evolutionary
improvements in the technology during the next 30 years.

23
John T. Kubish, “Evolution of an Engine”. SwRI Fall/Winter 2000 Technology Today, Southwest Research
Institute, San Antonio, Texas

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There are several classes of improvements in gas engines that will increase their attractiveness
for on-site and distributed power generation:

‰ Efficiencies will improve through increasing BMEP and potentially with the use of thermal
barrier coatings. Improved controls will allow very lean combustion that optimizes both
efficiency and emissions. Increased BMEP and engine speed will increase power output and
correspondingly decrease cost per kW of the larger engines.

‰ Emissions will be improved through a combination of combustion improvements and

advanced exhaust gas treatment.

‰ Maintenance costs will be reduced as engine life is extended and maintenance intervals
lengthened through the use of ceramics and other advanced materials, improved lubricants,
and improved engine components.

‰ While there will be much effort to improve high efficiency, lean-burn engines, nearer-term
initiatives will result in more efficient, more durable stoichiometric engines in the smaller
size ranges.

‰ The smaller stationary engines will benefit from the adoption of performance and controls
improvements developed for the transportation markets.

‰ More effective packaging and integration of systems and controls will reduce the cost of
basic engine packages by 10% to 25%. On-site cost of installation will be reduced by greater
standardization of system design and auxiliary components. A modular approach with greater
factory assembly is expected to greatly reduce site costs, particularly for smaller systems.

‰ The cost of installing CHP plants will decline, based on states adopting streamlined siting,
interconnection, and permitting procedures that allow for greater standardization of CHP
components and packages. Electric utility interconnection costs are projected to be reduced
by 50% for systems smaller than 500 kW and by 20% for systems larger than 3 MW.

‰ Engineering, project and construction management, and project contingencies will decline
over time in proportion to the reduction in equipment costs and the need for custom
integration of system components.

Estimates of the future performance of the five gas engine CHP systems previously used as
representative systems are shown in Table 11. The out-year performance projections for 2005,
2010, 2020, and 2030 are based on the technology and learning curve advances contained in the
list above.

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 Table 11. Current and Advanced Reciprocating Engine System Characteristics24

Cost and Performance Projections,

100 kW Gas Engine CHP System – Rich Burn
with Three-Way Catalyst
Year Current 2005 2010 2020 2030
System Size, kW 100 100 100 100 100
Total Installed Cost (2003 $/kW) 1,350 1,300 1,100 1,000 970
O&M Costs (2003 $/kWh) 0.018 0.015 0.013 0.012 0.01
Electrical Heat Rate (Btu/kWh) 11,500 11,187 10,832 10,500 10,035
Electric Efficiency (%) 30 31 32 33 34
Fuel Input (MMBtu/hr) 1.15 1.12 1.08 1.05 1.0
CHP Characteristics
Total CHP Efficiency (%) 78 78 79 79 80
Heat Output (MMBtu/hr) 0.56 0.53 0.51 0.49 0.46
Heat/Fuel Ratio 0.49 0.47 0.47 0.47 0.46
Power/Heat Ratio 0.61 0.64 0.67 0.70 0.74
Net Heat Rate (Btu/kWh) 4,500 4,562 4,457 4,373 4,285
Emissions Characteristics – w/three-way catalyst
NOx (g/bhp-hr) 0.15 0.15 0.1 0.1 0.1
CO (g/bhp-hr) 0.60 0.60 0.50 0.3 0.1
VOC (g/bhp-hr) 0.15 0.15 0.10 0.10 0.10
CO2 (lb/MWh) 1,345 1,308 1,267 1,228 1,174

24
Estimates are based on: MAN 150 kW (stoichiometric with three-way catalyst system)– 100 kW; Cummins
GSK19G – 300 kW; Cummins QSV91G – 1 MW; Caterpillar G3616 LE – 3 MW; Wartsila 18V34SG - 5 MW

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 Table 11 (cont’d.) Current and Advanced Reciprocating Engine System Characteristics

Cost and Performance Projections,

300 kW Gas Engine CHP System – Lean Burn
Year Current 2005 2010 2020 2030
Total Installed Cost (2003 $/kW) 1,160 1,130 1,030 930 900
O&M Costs (2003 $/kWh) 0.013 0.012 0.012 0.010 0.010
Electrical Heat Rate (Btu/kWh) 10,967 10,832 10,498 10,185 9,749
Electric Efficiency (%) 31 32 33 34 35
Fuel Input (MMBtu/hr) 3.3 3.25 3.15 3.06 2.92
CHP Characteristics
Total CHP Efficiency (%) 77 77 77 78 78
Heat Output (MMBtu/hr) 1.52 1.48 1.40 1.35 1.25
Heat/Fuel Ratio 0.46 0.46 0.44 0.44 0.43
Power/Heat Ratio 0.67 0.69 0.73 0.76 0.82
Net Heat Rate (Btu/kWh) 4,641 4,665 4,665 4,560 4,540
Emissions Characteristics – Engine out*
NOx (g/bhp-hr) 2.0 1.5 1.0 0.5 0.1
CO (g/bhp-hr) 2.0 2.0 1.5 1.5 1.0
VOC (g/bhp-hr) 1.0 1.0 1.0 0.75 0.5
CO2 (lb/MWh) 1,283 1,267 1,228 1,192 1,140
*Engine-out emissions could be reduced 90% through the use of SCR for NOx; an oxidation catalyst could reduce
CO and VOC emissions by 98% or more; Exhaust-gas treatment would require an additional capital investment of
$100/kW in the current year, decreasing to $50/kW in 2030.

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 Table 11 (cont’d.) Current and Advanced Reciprocating Engine System Characteristics

Cost and Performance Projections,

1,000 kW Gas Engine CHP System– Lean
Burn
Year Current 2005 2010 2020 2030
Total Installed Cost (2003 $/kW) 940 925 880 840 800
O&M Costs (2003 $/kWh) 0.009 0.009 0.0085 0.0083 0.008
Electrical Heat Rate (Btu/kWh) 10,035 9,611 9,099 8,638 8,222
Electric Efficiency (%) 34 36 38 40 42
Fuel Input (MMBtu/hr) 10.1 9.61 9.10 8.64 8.22
CHP Characteristics
Total CHP Efficiency (%) 71 72 73 73 74
Heat Output (MMBtu/hr) 3.7 3.5 3.2 2.9 2.7
Heat/Fuel Ratio 0.37 0.36 0.35 0.34 0.33
Power/Heat Ratio 0.92 0.97 1.07 1.18 1.26
Net Heat Rate (Btu/kWh) 5,422 5,236 5,099 5,013 4,847
Emissions Characteristics - Engine out*
NOx (g/bhp-hr) 1.0 0.7 0.5 0.25 0.1
CO (g/bhp-hr) 2.0 2.0 1.5 1.5 1.0
VOC (g/bhp-hr) 1.0 1.0 0.7 0.6 0.5
CO2 (lb/MWh) 1,175 1,124 1,065 1,010 962
*Engine-out emissions could be reduced 90% through the use of SCR for NOx; an oxidation catalyst could reduce
CO and VOC emissions by 98% or more; Exhaust-gas treatment would require an additional capital investment of
$100/kW in the current year, decreasing to $50/kW in 2030.

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 Table 11 (cont’d.) Current and Advanced Reciprocating Engine System Characteristics

Cost and Performance Projections,

3,000 kW Gas Engine CHP System– Lean
Burn
Year Current 2005 2010 2020 2030
Total Installed Cost (2003 $/kW) 935 920 870 830 790
O&M Costs (2003 $/kWh) 0.0085 0.0085 0.0083 0.008 0.0075
Electrical Heat Rate (Btu/kWh) 9,700 9,222 8,749 8,322 7,935
Electric Efficiency (%) 35 37 39 41 43
Fuel Input (MMBtu/hr) 29.1 27.7 26.3 25.0 23.8
CHP Characteristics
Total CHP Efficiency (%) 69 71 72 73 74
Heat Output (MMBtu/hr) 9.8 9.5 8.7 8.0 7.4
Heat/Fuel Ratio 0.34 0.34 0.33 0.32 0.31
Power/Heat Ratio 1.04 1.08 1.18 1.28 1.38
Net Heat Rate (Btu/kWh) 5,599 5,263 5,124 4,989 4,852
Emissions Characteristics - Engine out*
NOx (g/bhp-hr) 0.7 0.6 0.5 0.25 0.1
CO (g/bhp-hr) 2.50 2.5 2.0 1.5 1.0
VOC (g/bhp-hr) 1.3 1.3 1.0 0.7 0.5
CO2 (lb/MWh) 1,135 1,079 1,025 974 928
*Engine-out emissions can be reduced 90% through the use of SCR for NOx;an oxidation catalyst can reduce CO
and VOC emissions by 98% or greater; Exhaust-gas treatment would require an additional capital investment of
$100/kW in the current year, declining to $50/kW in 2030.

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 Table 11 (cont’d.) Current and Advanced Reciprocating Engine System Characteristics

Cost and Performance Projections,

5,000 kW Gas Engine CHP System– Lean
Burn
Year Current 2005 2010 2020 2030
Total Installed Cost (2003 $/kW) 890 870 820 790 765
O&M Costs (2003 $/kWh) 0.008 0.008 0.008 0.0078 0.0075
Electrical Heat Rate (Btu/kWh) 9,213 8,749 8,322 7,935 7,582
Electric Efficiency (%) 37 39 41 43 45
Fuel Input (MMBtu/hr) 46.1 43.7 41.6 39.7 37.9
CHP Characteristics
Total CHP Efficiency (%) 73 73 75 76 77
Heat Output (MMBtu/hr) 16.7 15.0 14.0 13.0 12.0
Heat/Fuel Ratio 0.36 0.34 0.34 0.33 0.32
Power/Heat Ratio 1.02 1.14 1.22 1.31 1.42
Net Heat Rate (Btu/kWh) 5,049 4,999 4,822 4,685 4,582
Emissions Characteristics - Engine out*
NOx (g/bhp-hr) 0.5 0.5 0.40 0.25 0.1
CO (g/bhp-hr) 2.40 2.4 2.0 1.5 1.0
VOC (g/bhp-hr) 0.50 0.5 0.5 0.25 0.25
CO2 (lb/MWh) 1,078 1,025 974 928 887
*Engine-out emissions could be reduced 90% through the use of SCR for NOx; an oxidation catalyst could reduce
CO and VOC emissions by 98% or more; Exhaust-gas treatment would require an additional capital investment of
$100/kW in the current year, decreasing to $50/kW in 2030.

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 Table 1. Gas Turbine Systems – Typical Performance Parameters (2003)

Cost and Performance Characteristics3 System 1 System 2 System 3 System 4 System 5

Nominal Capacity (kW) 1,000 5,000 10,000 25,000 40,000
Gas Turbine Characteristics
Electrical Efficiency (%), LHV 24.3 30.1 32.2 38.0 41.0
4
Electric Heat Rate (Btu/kWh), HHV 15,580 12,590 11,765 9,945 9,220
Electrical Efficiency (%), HHV 21.9 27.1 29.0 34.3 37.0
Fuel Input (MMBtu/hr) 15.6 62.9 117.7 248.7 368.8
Installed Cost - Power Only (2003 $/kW) 1,403 779 716 659 592
Installed Cost - CHP (2003 $/kW)5 1,910 1,024 928 800 702
O&M Costs (2003 $/kWh) 0.0096 0.0059 0.0055 0.0049 0.0042
Required Fuel Gas Pressure (psig) 95 160 250 340 435
CHP Characteristics
Exhaust Flow (1,000 lb/hr) 44 162 316 571 954
Turbine Exhaust Temperature (°F) 950 950 915 950 854
HRSG Exhaust Temperature (°F) 320 320 320 320 320
Steam Output (MMBtu/hr) 6.7 25.0 46.5 89.9 127.3
6
Total CHP Efficiency 65 67 69 70 72
7
Heat/Fuel Ratio 0.43 0.40 0.40 0.36 0.35
Power/Heat Ratio8 0.51 0.68 0.73 0.95 1.07
Net Heat Rate (Btu/kWh)9 7,205 6,343 5,953 5,453 5,242
Source: Energy and Environmental Analysis, Inc., estimates for “typical” commercially available turbine systems.

3
Data based on manufacturer specifications for: Solar Turbines Saturn 20 – 1 MW; Solar Turbines Taurus 60 – 5
MW; Solar Turbines Mars 100 – 10 MW; GE LM2500 – 25 MW; GE LM6000 – 40 MW. Energy use and flows
normalized to nominal system sizes (kW).
4
All turbine and engine manufacturers quote heat rates in terms of the lower heating value (LHV) of the fuel. On
the other hand, the purchase price of fuels on an energy basis is typically measured on a higher heating value basis
(HHV). In addition, electric utilities measure power plant heat rates in terms of HHV. For natural gas, the average
heat content of natural gas is 1030 Btu/kWh on an HHV basis and 930 Btu/kWh on an LHV basis – or about a 10%
difference.
5
Installed costs are based on CHP system producing 150 psig saturated steam with an unfired heat recovery steam
generator.
6
Total CHP Efficiency = (net electric generated + net thermal energy recovered)/total gas turbine fuel input.
7
Heat/Fuel Ratio = Thermal output (total heat recovered MMBtu/hr) as a fraction of fuel input (MMBtu/hr).
8
Power/Heat Ratio = (CHP electric power output (Btu equivalent)/ useful steam ouput (Btu).
9
Net Heat Rate = (Total fuel input to the CHP system - fuel normally used to generate the same amount of thermal
output as the CHP system thermal output, assuming efficiency of 80%)/CHP electric output (kW).

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Small Gas Turbine Systems – Page 3-9
8.0 References

Bining, Avtar; California Energy Commission, California Advanced Reciprocating Internal

Combustion Engines Program, USDOE Reciprocating Engines Peer Review, Chicago, IL, April
23-24, 2002.

Bolis, Dave, Cummins; DOE ARES Program, USDOE Reciprocating Engines Peer Review,
Chicago, IL, April 23-24, 2002.

Callahan, Timothy J.; Southwest Research Institute, Reciprocating Engine Technology – Can We
Get There From Here?, USDOE Reciprocating Engines Peer Review, Chicago, IL, April 23-24,
2002.

Callahan, Timothy J.; Southwest Research Institute, Survey of Gas Engine Performance and
Future Trends, 2003 Spring Technical Conference of the ASME Internal Combustion Engine
Division, Salzburg, Austria, May 11-14, 2003.

Caterpillar, Inc., specifications sheet for G3636 LE natural gas engine, March 2003.

Coast Intelligen, Inc., specifications sheet for Model 150-IC genset, January 2003.

Cummins Engine Company, specifications sheet for QSV91G 1200 rpm natural gas engine, January
2002.

Cummins Engine Company, specifications sheet for GSK19G natural gas engine, January 2002.

Dress, Jim; Waukesha Engine, Advanced Natural Gas Reciprocating Engine Program, USDOE
Reciprocating Engines Peer Review, Chicago, IL, April 23-24, 2002.

Energy Nexus Group, Performance and Cost Trajectories of Clean Distributed Generation
Technologies, prepared for The Energy Foundation, May 29, 2002.

French, Timothy; Engine Manufacturers Association, National and State Environmental Issues:
Implications for Reciprocating Engines, USDOE Reciprocating Engines Peer Review, Chicago,
IL, April 23-24, 2002.

Haught, Debbie; U.S. Department of Energy, U.S. Department of Energy’s Advanced Natural
Gas Reciprocating Engine Program, USDOE Reciprocating Engines Peer Review, Chicago, IL,
April 23-24, 2002.

Gerber, Gordon; Caterpillar, Advanced Reciprocating Engine Systems, USDOE Reciprocating

Engines Peer Review, Chicago, IL, April 23-24, 2002.

“North American Diesel Progress,” 24th Annual Engine Yearbook, Volume 69, Number 6, June
2003.

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Reciprocating Engines – Page 2-41
“North American Manufacturing Companies,” North American Combustion Handbook, Second
Edition, 1978.

Malm, Howard; REM Technologies, Air-Fuel Control and Emissions for Gas Engines, White
Paper.

Onsite Energy Corporation, Small Reciprocating Engine Manufacturers and Generator Set
Packagers, prepared for EPRI/GTI, GTI-00/0227, 2000.

Reciprocating Engines for Stationary Power Generation: Technology, Products, Players, and
Business Issues, GRI, Chicago, IL and EPRIGEN, Palo Alto, CA: 1999. GRI-99/0271, EPRI TR-
113894.

Southwest Research Institute, Results of the Advanced Stationary, Reciprocating, Natural Gas
Engine Workshop, San Antonio, TX, January 12-13, 1999.

Wartsila NSD North America, Inc., specification sheet for 18V34SG natural gas engine, January
2002.

Wilhelm, D., SFA Pacific, Inc., Reciprocating Engines for Stationary Power Generation,
Prepared for GRI/EPRI, GRI99/0271/EPRI TR-113894, December 1999.

Reciprocating engine manufacturers/packagers:

Caterpillar, Inc., www.caterpillar.com

Cooper Energy Systems, www.cooperenergy.com

Coast Intelligen, Inc., www.coastintelligen.com

Cummins Engine Company, www.cummins.com

Fairbanks-Morse Engine Company, www.fairbanksmorse.com

Hess Microgen, Inc., www.hessmicrogen.com

Jenbacher Engines, www.jenbacher.com

Kohler Power Systems, www.kohlerpowersystems.com

Tecogen, Inc., www.tecogen.com

Waukesha Engine Inc., www.waukeshaengine.com

Wartsila NSD North America, Inc., www.wartsilausa.com

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