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Combined Heat and Power plants – carbon AND cost saving? Daman Ranby – Director Ashley Allsop – Head of Sustainability.

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Presentation on theme: "Combined Heat and Power plants – carbon AND cost saving? Daman Ranby – Director Ashley Allsop – Head of Sustainability."— Presentation transcript:

1 Combined Heat and Power plants – carbon AND cost saving? Daman Ranby – Director Ashley Allsop – Head of Sustainability

2 Increasing Fuel Costs Part L of the Building Regulations 2010 Corporate Social Responsibility Energy Reduction Initiatives Marketing Opportunities The Bottom Line! Overview

3 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 Engine 100% Fuel >30% Electricity 50% Heat <20% Losses

4 Combined Heat & Power – The Basics

5 930kWe Output CHP

6 Combined Heat & Power – The Basics 5.7MWe Output CHP

7 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 Heat

8 The basic principle of CHP is that you generate high cost electricity using low cost gas with less emissions Combined Heat & Power – The Basics

9 Heat Demand 100KW Power Power Demand 100KW Power 100KW Heat 50KW Losses150KW Losses CHPGas Boiler & Grid 25Kg CO2 52Kg CO2 Included 20Kg CO2 10Kg CO2 Total 50Kg CO2 Total 77Kg CO2

10 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

11 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

12 Base Heating Load CHP Hours Hot Water Load Time CHP Hours CHP Operation Extended

13 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

14 CHP Plant Gas Input 2500kW Electrical Power 930kWe Thermal Output 1300kWt Installed cost, approx. £1m Case Study - Plant

15 Fuel Inputs Natural 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

16 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 = £17k Case Study - Outputs Electricity Heat

17 Operating Costs Maintenance 7,440 MWh x 1.5p = £111k p.a. CHP down time costs? Case Study - Maintenance

18 Financial Summary Per Annum Gas Input£700k Maintenance £111k Electricity(£744k) Heat Output(£364k) Less CCL(£53k) Total Approx. Saving(£350,000) Case Study - Returns

19 Case Study - Investment Capital£1M Savings p.a. (£350k) Total Approx. Payback2.8 years Return on Investment ROI35% CO2 Traditional Route 5,905 tons CO2 produced by CHP 3,960 tons Case Study

20 Over-sizing Plant Reduced operating hours Life Time Costs, Servicing, Shutdowns Good Quality CHP - CHPQA – CCL Exempt Attracts Enhanced Capital Allowances Pros & Cons

21 Correctly Designed CHP will – Reduce CO2 emissions Reduce running costs Promote CSR Improve the bottom line! And Finally…..!

22 Daman Ranby Office Mobile Questions Useful websites and Documents Useful websites: CIBSE AM12 GPG388


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