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Maximizing Efficiency with Combined Heat and Power Plants

Explore how Combined Heat and Power (CHP) plants can save costs and reduce carbon emissions. Learn the basics, when to consider CHP, integration into facilities, operational insights, case studies, and more.

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Maximizing Efficiency with Combined Heat and Power Plants

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  1. Combined Heat and Power plants – carbon AND cost saving? Daman Ranby – Director Ashley Allsop – Head of Sustainability

  2. Overview Increasing Fuel Costs Part L of the Building Regulations 2010 Corporate Social Responsibility Energy Reduction Initiatives Marketing Opportunities The Bottom Line!

  3. Combined Heat & Power – The Basics • A “Generator” of Electricity & Hot Water • For Reciprocating Engines: • Fuels - Natural Gas, Bio Oil & Bio Gas • Electrical Power Outputs up to to 10MW >30% Electricity Engine 100% Fuel 50% Heat <20% Losses

  4. Combined Heat & Power – The Basics

  5. Combined Heat & Power – The Basics 930kWe Output CHP

  6. Combined Heat & Power – The Basics 5.7MWe Output CHP

  7. Power Station Mix Grid Losses 50% Electricity 45% Electricity 100% Fuel Combined Heat & Power – The Basics The UK Electricity Grid Mix <45% Efficient Grid Electricity Generation produces 0.517Kg/CO2/kWh Expensive Energy 10pence/kWh Waste Heat

  8. Combined Heat & Power – The Basics “The basic principle of CHP is that you generate high cost electricity using low cost gas with less emissions”

  9. Power Demand Heat Demand Combined Heat & Power – The Basics CHP Gas Boiler & Grid 100KW Heat 20Kg CO2 100KW Heat 25Kg CO2 100KW Power 20Kg CO2 52Kg CO2 100KW Power 50KW Losses 150KW Losses 10Kg CO2 Included Total 50Kg CO2 Total 77Kg CO2

  10. When to Consider CHP At the beginning of a project Installing new boiler plant. Replacing/refurbishing existing plant. Reviewing electricity supply. Reviewing standby electrical generation capacity or plant. Creating Heat Islands – Consider your neighbours!

  11. How CHP Integrates Into Your Factory Island or Synchronised Mode Single/Modular Lead CHP covering base heat profile Usually Heat Led Additional plant space Acoustic treatment of plant spaces Piping Modifications

  12. CHP Operation Extended CHP Hours CHP Hours Base Heating Load Hot Water Load Time

  13. Case Study - Background Feasibility Study completed Need for replacement steam boiler plant Site hot water demand 8000 Litres per hour Electricity demand always above 800KVA Site operation 24/7 CHP allowed to run 8000 hours per year Capital Purchase agreed

  14. Case Study - Plant CHP Plant Gas Input 2500kW Electrical Power 930kWe Thermal Output 1300kWt Installed cost, approx. £1m

  15. Case Study - Fuel Fuel Inputs Natural Gas – 2500 kW x 8000 hours = 20,000 MWh Cost of Gas Used = 20,000 MWh x 3.5p = £700k 100% Fuel

  16. Case Study - Outputs Outputs 8000 hours x 930kWe = 7,440 MWh Value of Electricity Produced = 7,440 MWh x 10p = £744k Climate Change Levy Avoided 7,440 MWh x 0.485p = £36k 8000 hours x 1300kWt = 10,400 MWh Value of Heat Produced = 10,400 MWh x 3.5p = £364k Climate Change Levy Avoided 10,400 MWh x 0.165 = £17k Electricity Heat

  17. Case Study - Maintenance Operating Costs Maintenance 7,440 MWh x 1.5p = £111k p.a. CHP down time costs?

  18. Case Study - Returns Financial Summary Per Annum Gas Input £700k Maintenance £111k Electricity (£744k) Heat Output (£364k) Less CCL (£53k) Total Approx. Saving (£350,000)

  19. Case Study Case Study - Investment Capital £1M Savings p.a. (£350k) Total Approx. Payback 2.8 years Return on Investment ROI 35% CO2 Traditional Route 5,905 tons CO2 produced by CHP 3,960 tons

  20. Pros & Cons Over-sizing Plant Reduced operating hours Life Time Costs, Servicing, Shutdowns Good Quality CHP - CHPQA – CCL Exempt Attracts Enhanced Capital Allowances

  21. And Finally…..! • Correctly Designed CHP will – • Reduce CO2 emissions • Reduce running costs • Promote CSR • Improve the bottom line!

  22. Questions Daman Ranby Office 01159 758595 Mobile 07871 545566 Email daman.ranby@shipway.co.uk Useful websites and Documents Useful websites: www.chpa.co.uk; www.carbontrust.co.uk www.CIBSE.co.uk CIBSE AM12 GPG388

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