POWER PURCHASE AGREEMENTS

CHP | Anaerobic Digestion Plants

Power Purchase Agreements (PPA) 

The 4CleanTech Power Purchase Agreements are a win-win solution for your company. We will fully fund, install, and maintain a Combined Heat & Power Unit (CHP) at your company site from which you simply purchase the generated electricity and/or heat over an agreed term (typically 7-15 years). Not only will this give you significant savings of up to 60%, but it will also allow you to focus on your day-to-day business activities.

Our PPA product offers the following: 

  • Energy savings of up to 60% over 10 years. 

  • No CAPEX (capital expenditure) for the customer 

  • No Climate Change Levy (CCL) payments for natural gas and electricity 

  • A fully funded 4CleanTech Energy Centre is installed at the customer's premises

  • A lower unit price per kWh for heat and electricity 

  • Covering electricity grid connection and costs 

  • Power that is green electricity under the GHG protocol 

  • Price inflation that is linked to the Retail Price Index (RPI) instead of the energy market prices 

CHP-Power Agreement for Anaerobic Digestion Plants (CHP-PA) 

The 4CleanTech CHP-Power Agreement (CHP-PA) is a special solution for anaerobic digestion (AD) plants that require a new CHP (Combined Heat and Power Unit). 

This 4CleanTech offering finances the required CHP unit and includes a servicing and maintenance contract. This is not only financially appealing to the customer, but it also frees the operator from the difficulties of operating the CHP. 

The CHP-PA offers the following: 

  • Delivery and installation of a CHP 

  • Servicing and maintenance contract 

  • Contract length between 5 and 15 years 

  • Costs are charged per hour of use (minimum 6000h per year) 

  • Costs are linked to the RPI (Retail Price Index) 

  • No CAPEX for the customer 

  • Predictable monthly costs 

  • Non-equity binding, CHP-PA ensures liquidity 

 

Turnkey  Solution - An alternative to Power Purchase Agreements 

For customers who do not require a Power Purchase Agreement, 4CleanTech offers its Turnkey Solution. This solution is ideal for customers who would like to own the CHP unit themselves, but do not want to be involved in the planning, installation, and commissioning process.

For a fixed price, 4CleanTech will handle the supply, delivery, design, installation (including planning permissions, grid connection, and CHPQA application) and commissioning of the CHP unit. In addition, the customer is given the option to purchase an additional service and maintenance package for the lifetime of the CHP unit. 

This solution allows the customer to achieve greater savings over the CHP lifetime. Additionally, if the customer is making a taxable profit, the project will most likely be eligible for an Enhanced Capital Allowance. This enables businesses to claim a 100% first year capital allowance on investments on energy efficiency investments against taxable profits during the period of investment. 

Advantages: 

  • The customer owns all equipment 

  • Full financial benefits from energy savings for the customer 

  • Enhanced Capital Allowance 

  • 1 Renewables Obligation Certificates (ROCs) per MWh of electricity from energy from waste (EfW) CHP, 2 ROCs per MWh from dedicated biomass CHP 

  • Avoidance of Climate Change Levy (CCL) for gas and electricity 

  • The CHP can be utilised as a standby generator 

  • Claimable enhanced capital allowance