Cogeneration – also known as COGEN or Combined Heat and Power (CHP) – is one of the most effective approaches to energy conservation, as it produces two types of energy at once: electric power and thermal energy.
When power plants burn fuel to drive electric generators, they produce tremendous amounts of heat along with the electricity. This heat, usually equaling up to 67% of the energy content of the fuel used, is often wasted into the atmosphere.
End users of the electricity – such as manufacturers, office buildings, and hospitals – purchase the electricity from the local utility, and then make their own heat (steam) on-site by burning fuel in a boiler. This is called “separate heat and power”.
Instead, you can choose to generate your own electricity on-site, and use the heat byproduct to create steam heat. When you provide both electric power and heat from a single source, it’s called combined heat and power, CHP, or cogeneration. Instead of paying twice, first for electricity, and then for heat, you only pay once for electricity.
Separate heat and power systems are often only 33% efficient, since up to 67% of the fuel energy is wasted in unused heat. Typically, even the most efficient power plants achieve no more than 60% energy efficiency. But CHP systems can achieve efficiencies of 80% or higher. CHP also saves on power losses, which is the electricity lost during delivery to a distant location. Line losses are typically 4% to 10% of the electricity produced.
Recently, owners and managers of commercial buildings have discovered that COGEN is a reliable, cost-effective source of energy for heating and cooling, which is the single highest operating expense in most buildings.
Cogeneration systems in commercial office buildings are also typically connected to an absorption chiller that provides cooling for the HVAC system. The absorption chiller, powered by thermal energy, replaces a traditional chiller powered by electricity. The cogeneration system also heats water for use in the building.
COGEN is becoming an attractive option in more industries thanks to improved technologies that are more efficient, more reliable and cheaper to maintain than ever before.
Cogeneration is also higher in energy efficiency than conventional thermal generation because it reuses heat. Energy that would otherwise be wasted is now put to work.
Most Hospitals, Manufacturers, Hotels, Data Centers, Campuses, Aquatic Centers, and High Rise Residential buildings are perfect candidates for Cogeneration.
To date, we have facilitated over $150 million in Cogeneration projects. And we are experts in obtaining and utilizing Federal and State Financial incentives to help clients install COGEN systems for little or NO out-of-pocket expense.
1) ESCO: We work with ESCO (Energy Supply Corporations) who understand Cogeneration usage.
2) No termination charges and no volume restrictions: Most energy supply companies have bandwidth provisions and termination clauses in their contracts. When they install a Cogen system on site, their supply purchase volume for electricity goes down, and their gas volume goes up. In many supply agreements, this would violate volume and usage parameters, and the customer would pay a much higher rate. However, we negotiate agreements with 3rd party supply companies (whom we work with) for our clients so there are no termination charges and no volume restrictions.
3) Constant Flow Gas Rate: We also secure a Constant Flow gas rate for the Cogen system, resulting in a lower price per therm for gas – typically 15- 20% lower than the utility rate.
• Increase cashflow with a HUGE reduction in energy costs by 40% – 65%.
• Huge Federal and State Government incentives to buy COGEN systems.
• Peace of mind with a back-up source of power: Never lose power again, and no more interruptions.
• Back-up chilling powers your AC even if your chiller goes down.
• Decrease in net operating expenses.
• Increased building value.
• Clean Power: Saves the planet with green energy technology and lowers CO2 emissions by 47%.
• Extended equipment life.
• Better quality power: This means no power surges and less W&T on Chillers, Motors, Boilers, and other equipment.
• Lowers gas costs by 15%, and offers 90% efficient vs. 35%.
• Excellent for air conditioning, cooling, steam, hot water, and pool heating