How Green Energy Can Fuel Economic Recovery

With the U.S. economy continuing to suffer through a serious economic slowdown and unemployment reaching 7.2 percent nationwide (9.1 in Nevada), there is no better time for green energy — specifically measures already passed by Congress — to become a priority in helping fuel economy recovery.

Just one of these measures, the funding of Energy Independence and Security Act (EISA) Section 471, could create up to 7,000 jobs by the end of 2010. In fact, according to the International District Energy Association (IDEA), job creation could start immediately by focusing efforts on "shovel-ready" projects. IDEA has compiled some 62 member projects that are ready to start in 28 states.

Funding EISA Section 471 creates jobs and sustainable benefits.

• It provides near-term economic stimulus, designing and building new clean energy infrastructure.
• It stimulates local economies in the long term by encouraging investments in local energy supplies and sources.
• It reduces costs at public institutions by cutting energy consumption and reducing emissions.
• It stimulates private investment in green infrastructure, providing near-term and long-term benefits.
• It achieves critical environmental and energy goals by reducing demand on local power supplies.

Along with funding EISA Section 471, IDEA recently released green economic stimulus recommendations as part of its energy and environmental policy for the new administration. These recommendations work because they increase economic productivity, result in labor intensive jobs, and reduce the exportation of stimulus dollars. Some highlights from the full brief:

• Loans and Grants for Institutions. The appropriation of $750 million annually for five years has already been authorized for implementing or improving sustainable energy infrastructure, which benefits institutions of higher education, local governments, municipal utilities, and public school districts.

• Waste Energy Recovery Incentives. Sections 451-453 of EISA draw additional attention to the recovery of industrial waste heat so it can be recycled into usable heat and electricity. The provision establishes waste energy recovery grants.

• CHP Investment Tax Credit. The current CHP investment tax credit (ITC) under Section 48 of the Internal Revenue Service Code only makes eligible the first 15 MW of capacity. Increasing the cap to 50 MW would encourage the implementation of many projects that could quickly result in efficiency increases and reduced emissions.

• Tax-Exempt Financing. Currently, the IRS Code allows tax-exempt bonds to be used for “local district heating and cooling facilities.” However, the interpretation needs to include plant facilities, which would encourage the implementation of job-producing, low-carbon energy systems such as thermal energy production equipment.

• Energy Efficiency Resource Standard (EERS). While the definition of ‘renewable’ varies dramatically from state to state, it generally focuses on solar, wind, biomass, and geothermal energy. IDEA recommends EERS include CHP and other forms of waste energy and waste heat recovery to be included within the definition.

Benz Air Engineering Co. specializes in custom-engineered solutions, combining expertise in various distributed control systems and programmable logic controllers for the implementation of energy efficiency projects. More than 230 boilers have been retrofitted throughout the country by Benz Air, typically providing a return on investment in approximately one year.

Recognizing Heat As Energy Can Save Fuel

While most manufacturing operators understand that heat can be recovered from steam boiler blowdown to increase boiler efficiency and reduce fuel consumption, not every operator has considered the significant cost savings. In 2006, the U.S. Department of Energy (DOE) EERE released Steam Tip Sheet #10 to help manufacturers do exactly that.

The tip sheet estimates that a plant — where an 80 percent efficient produces 50,000 pounds per hour (lb/hr) of 150 pounds per square inch gauge (psig) steam, increasing its efficiency to 90 percent with a heat recovery system — could save $68,000 per year (assuming the 2006 fuel cost of $8.00 per million Btu). Benz Air Engineering solutions perform even better.

Case Study: A Condensing Heat Exchanger In Action

After evaluating the boilers at Del Monte Fruit Processing and Packaging Facility in Modesto, California, Benz Air Engineering recommended several improvements to two boilers that were operating at about 82 percent efficiency. One of these recommendations included the installation of a CondiMax Condensing Heat Exchanger, which converts previously wasted heat into energy.

The installation resulted in increased efficiency much higher than the DOE tip sheet. In fact, the heat exchanger reduced stack temperature to less than 100 degrees Fahrenheit while increasing boiler efficiency to greater than 94 percent. The installation also resulted in an energy efficiency rebate, which meant an immediate payback for the plant.

In November, Del Monte also received an award for its energy efficiency management program and sustainability efforts at its Modesto facility during the CMTA/Industrial Environmental Association/Chemical Industry Coalition of California’s Annual Environmental Summit. The two retrofitted boilers were highlighted for their ability to significantly reduce fuel consumption, NOx output, and wasted steam through recycling.

Del Monte Foods is one of the country's largest and most well known producers, distributors and marketers of premium quality, branded food and pet products for the U.S. retail market, generating more than $3.4 billion in net sales in fiscal 2007.