DOE Announces Solicitation for RD&D on Combined Heat and Power System

July 08, 2009

The U.S. Department of Energy (DOE) today announced the issuance of a Funding Opportunity Announcement (FOA) for up to $40 million in research, development and demonstration of combined heat and power (CHP) systems, based on annual appropriations. The Industrial Technologies Program (ITP), part of the Office of Energy Efficiency and Renewable Energy, is DOE's lead organization for CHP Research and Development. ITP is advancing CHP as an efficient energy solution that supports the Obama Administration's strategy of revitalizing the American economy, enhancing the nation's energy security, and combating climate change.

Combined Heat and Power technologies—those that co-produce heat and electricity—can be deployed in industrial, commercial, and residential settings to improve efficiency, control costs, and limit greenhouse gas emissions—making U.S. industry more productive and more competitive. Combined Heat and Power and District Energy Systems can achieve efficiencies of 80% or better compared to roughly 45% for conventional heat and power production. Waste recovery systems have the potential to save 17 gigawatts of energy nationwide annually—this is more than all of the generating capacity for the state of Wisconsin (16.4 GW) and would be half of the generating capacity of Ohio (33.8 GW), which is one of the largest power-generating states.

This FOA will accelerate the development and deployment of CHP technologies and systems to work towards a goal of increasing U.S. electricity generation capacity from CHP. DOE will provide up to 50% of these cost-shared awards.

Specifically, this solicitation will seek applications for funding of research, development and demonstration of stationary CHP systems at three power levels. The first level covers "large" systems with greater than 20 megawatts (MW) of electricity output. This area has an estimated total budget of $30 million—$15 million from the DOE. Area 2 has an estimated total budget of $30 million—$15 million in federal funding and covers "medium" size systems between 1 MW and 20 MW. Area 3 has an estimated budget of $20 million—$10 million in DOE cost-share—and covers "small" size systems smaller than 1 MW.

All levels will seek applications that provide plans to perform research and development focused on increasing the efficiency and reducing GHG emissions of stationary CHP systems. These systems will be able to replace or reduce natural gas usage as well as minimize the energy and cost penalties of meeting emission regulations.

For more information about this funding opportunity, please visit Grants.gov.