Combined Heat and Power (CHP)

CHP Explained 

During the process of electricity generation, heat is commonly produced as a byproduct. This heat is typically wasted during the conventional processes, making them rather inefficient. Unlike traditional methods, a CHP plant captures this heat so that it can be employed for a range of different purposes, including cooling and absorption refrigeration. Simultaneously, the CHP also produces electricity. CHP units are therefore 40%-50% more efficient than traditional power stations and make a significantly better use of the fuel utilised.  

Benefits of a CHP 

There are several financial benefits when operating a CHP unit. Firstly, for the cost of one fuel input, two sources of energy are generated: electricity and heat. The method of cogeneration is also significantly lower in price than traditional energy importations from the grid while any excess can be sold back to the grid. On average, a CHP's efficiency ranges between 75%- 90% and is therefore up to 40% more efficient than a power station. Unlike traditional power stations, CHP's can also be decentralised and located exactly where they are needed. This further reduces costs by approximately  5%-6%. 

 

 

 

From an environmental point of view, there are fewer carbon emissions with maximum energy savings as cogeneration only requires a single plant instead of two. If heat and electricity are produced separately, carbon emissions are increased by approximately 30%. 

4 CleanTech can tailor-make a solution to suit any location and offer operation and maintenance services that guarantee a high performance. 

PPA 

Through a Power Purchase Agreement (PPA), 4 CleanTech customers can benefit from a zero capital outlay installation of a gas-powered CHP unit. Over an agreed term (typically 7-10 years), the CHP plant will operate on a lower unit price per kWh than is currently paid to the utility supplier. The heat generated as a byproduct will also be sold to the customer at a discount. 

A CHP not only gives the customer a clean energy security over the long term, but also price inflation that is linked to the RPI instead of wider market energy prices.

The CHP can either be installed on the site permanently for the duration of the PPA, or instead be containerised. The containerised system can be relocated to another site at any time through the PPA if desired.

 

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