Combined Heat and Power plants – carbon AND cost saving?

Daman Ranby – Director

Ashley Allsop – Head of Sustainability

Increasing Fuel Costs

Part L of the Building Regulations 2010

Corporate Social Responsibility

Energy Reduction Initiatives

Marketing Opportunities

The Bottom Line!

Overview

A “Generator” of Electricity & Hot Water

For Reciprocating Engines:

• Fuels - Natural Gas, Bio Oil & Bio Gas

• Electrical Power Outputs up to to 10MW

Combined Heat & Power – The Basics

Engine100% Fuel >30% Electricity

50% H

eat

<20% Losses

Combined Heat & Power – The Basics

Combined Heat & Power – The Basics

930kWe Output CHP

Combined Heat & Power – The Basics

5.7MWe Output CHP

Combined Heat & Power – The Basics

The UK Electricity Grid Mix <45% Efficient

Grid Electricity Generation produces 0.517Kg/CO2/kWh

Expensive Energy 10pence/kWh

Power Station Mix

100% Fuel 50% Electricity Grid Losses 45% Electricity

Waste H

eat

“The basic principle of CHP is that you generate high cost electricity using low cost gas with less emissions”

Combined Heat & Power – The Basics

Combined Heat & Power – The Basics

Heat Demand

100KW Power Power Demand 100KW Power

100KW Heat 100KW Heat

50KW Losses 150KW Losses

CHP Gas Boiler & Grid

25Kg CO2

52Kg CO2

Included

20Kg CO2

20Kg CO2

10Kg CO2

Total 50Kg CO2 Total 77Kg CO2

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!

When to Consider CHP

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

How CHP Integrates Into Your Factory

Base Heating Load

CHP Hours

Hot Water Load

Time

CHP Hours CHP Operation Extended

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

Case Study - Background

CHP PlantGas Input 2500kW

Electrical Power 930kWe

Thermal Output 1300kWt

Installed cost, approx. £1m

Case Study - Plant

Fuel InputsNatural Gas – 2500 kW x 8000 hours = 20,000 MWh

Cost of Gas Used = 20,000 MWh x 3.5p = £700k

Case Study - Fuel

100% Fuel

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

Case Study - Outputs

Electricity

Heat

Operating Costs

Maintenance 7,440 MWh x 1.5p = £111k p.a.

CHP down time costs?

Case Study - Maintenance

Financial Summary Per AnnumGas Input £700k

Maintenance £111k

Electricity (£744k)

Heat Output (£364k)

Less CCL (£53k)

Total Approx. Saving (£350,000)

Case Study - Returns

Case Study - InvestmentCapital £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

Case Study

Over-sizing Plant

Reduced operating hours

Life Time Costs, Servicing, Shutdowns

Good Quality CHP - CHPQA – CCL Exempt

Attracts Enhanced Capital Allowances

Pros & Cons

Correctly Designed CHP will –

• Reduce CO2 emissions

• Reduce running costs

• Promote CSR

• Improve the bottom line!

And Finally…..!

Daman Ranby

Office 01159 758595

Mobile 07871 545566

Email daman.ranby@shipway.co.uk

Questions

Useful websites and Documents

Useful websites:www.chpa.co.uk;

www.carbontrust.co.ukwww.CIBSE.co.uk

CIBSE AM12GPG388