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USING COGENERATION IN YOUR FACILITY

Cogeneration using on-site energy content can present significant energy cost savings. The energy to transport electricity to your facility, while convenient, can have a high delivery cost. With energy costs on the rise, it may be time to look at better usage of fuels you currently have on site.
Using Cogeneration in Your Facility
 HOW CAN COGENERATION SAVE ME MONEY?

Facility-based cogeneration systems can convert 70 to 90 percent of the energy in the fuel you burn into alternate energy for use in various parts of your facility. Return on initial investment can be in as little as two or three years depending on your energy profile and utility cost. This return comes in the form of recovery of heat and/or the production of electricity. The savings can be as much as 35% of your annual energy costs.


HOW IS A TYPICAL COGENERATION SYSTEM SET UP?

Cogeneration typically consists of a system to include a prime mover, which turns a generator and, in turn, produces electricity and heat. A heat recovery system then delivers energy to the facility loads. Examples of uses for this heat may be absorption chillers, boilers, or manufacturing processes. Recognized as an efficient method of utilizing energy for years, cogeneration was considered practical for large installations, but not so much for smaller facilities. Today, cogeneration can be feasible in applications as small as 300kW.

The prime mover for the generator may be a natural gas engine, a diesel engine, or a turbine. Fuels such as pipeline natural gas, diesel, or methane gas may be used as a primary fuel. The differences vary between prime movers with regard to the heat rejection available for recovery, but as much as 90% of the heat content in the original fuel can be put to use. For this reason, the United States Department of Energy has established a goal to double cogeneration capacity in the U.S. by 2010.


DECIDING IF COGENERATION IS RIGHT FOR YOUR FACILITY

Here are a few qualifiers to determine if cogeneration might benefit your facility:

  • Have you taken reasonable steps to increase efficiency of energy usage? If so, this could help reduce the initial capital cost of the cogeneration system required.
  • For facilities with 1,000kW plant load and larger, the cogeneration system could provide proportionately greater savings.
  • If your facility has a consistent heat load of 1 million Btu or more, this heat could be used for most any heat load in your facility that you currently fuel with purchased electricity or gas.
  • Cogeneration for your plant is more feasible if the combined heat/power load demands are simultaneous for at least six months per year.
  • Are the local electric utility rates high in relation to natural gas prices? The greater the difference in equivalent Btu, the greater chance that cogeneration would be feasible in your plant.
  • Will your facility sufficiently house and support delivery of the cogeneration capacity? Integration of both the electrical and mechanical systems should be considered.
  • If electrical power to your facility is unreliable, cogeneration with redundancy is a “known source” and can provide power from on-site fuel during utility outages or for processes during which electrical interruption is not acceptable.


RETURN ON INVESTMENT

Your current energy costs are likely a known value. Stowers can help you determine if cogeneration will benefit your facility, but here are a few things to consider during your evaluation:

  • The base cost of electricity from the local electric utility.
  • Demand charges from your local electric utility.
  • Cost of natural gas to your facility.
  • The number of hours you anticipate running the cogeneration system each year.
  • How will the excess heat produced by the generation system be utilized?
  • Initial cost of the cogeneration system.
  • Maintenance costs for the cogeneration system.
  • Cost of money over the determined investment period.
  • Depreciation costs for the cogeneration system.


LEED CERTIFICATION

Cogeneration can be a component of LEED certification. You may also want to check on any available subsidies or savings based on reducing the environmental impact of your facility.


WANT TO KNOW MORE?

Please contact your Stowers Power Systems Sales Representative if you have questions concerning the purchase of generator sets for stimulus-funded projects.


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