Tesoro Petroleum

Tesoro Petroleum

22-MW CHP Application

Quick Facts:

LOCATION: Salt Lake City, Utah

TOTAL PROJECT COST: $25,000,000

MONTHLY ENERGY BILL SAVINGS: $200,000

EQUIPMENT: 2 Solar Titan Turbines and 2

Rentech Heat Recovery Steam Generators

FUEL: Natural Gas & Refinery Fuel Gas

USE OF THERMAL ENERGY: Steam Generation

FACILITY SIZE: 145 Acres, 200 employees

FACILITY PEAK LOAD: 15 MW

FACILITY AVERAGE LOAD: 14 MW

CHP IN OPERATION SINCE: May 2004

ENVIRONMENTAL BENEFITS: Greenhouse gas emissions reduced by more than 500 tons per year

Site Description:

Constructed in 1908 and operated under the UTOCO and Amoco brand names, the Salt Lake City refinery was acquired by San Antonio based Tesoro Petroleum Corporation in September 2001. Tesoro Petroleum Corporation, a Fortune 500 Company, is an independent refiner and marketer of petroleum products and provider of marine logistics services. The 55,000-barrel per day Salt Lake plant serves the growing hub of the Intermountain West. The refinery produces

gasoline, diesel fuel, and propane that are sold into the high-growth markets of Utah and Idaho. The refinery also supplies jet fuel to Salt Lake City International Airport and the U.S. Air Force bases in Utah and Idaho. The Tesoro refinery is an active participant in the Salt Lake City Green Team, a community group that was organized to look at long-term ways to protect the environment and make Salt Lake a more sustainable community.

Reasons for CHP:

Reducing operating costs was one of the primary drivers for building the cogeneration facility. Tesoro’s cost to generate electricity depends largely on the cost of natural gas. Currently they can produce energy for $35 to $40 per MW which has enabled Tesoro to save $200,000 per month on its energy bill. Additionally, they sell $300,000 of energy per month to Utah Power, making a monthly net improvement to its operations of $500,000. Improving reliability of its power supply was another key driver. The refinery is located in Utah Power’s rapidly expanding load center where investment in transmission infrastructure has not kept up with demand. This resulted in power outages that were disruptive to the refineries 24/7 operations. Other important drivers included the need to replace vintage 1940’s boilers and a desire to be more efficient and environmentally

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