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How does Combined Heat and Power work?

March 2, 2016

Contact Smeaton Wood Energy for a free Feasibility Study to understand how CHP can benefit your Business. Fully Funded packages available removing risk and bringing immediate savings.

 

CHP plant technology is nothing new. The reason that cogeneration is now becoming a highly attractive prospect is down to a few factors; Growing Electricity Prices, Falling Gas Prices and reductions in CHP plant delivery costs.

 

The technology itself is fairly simple. At the heart of the CHP plant is a mains gas powered electricity generator. The Combined Heat and Power generator is a combination of the gas powered engine and a generator unit. The engine turns the generator to produce reliable electricity for use onsite. The process of running the engine also creates huge amounts of heat. A Combined Heat and Power plant specialises in capturing this heat so that it can be utilised to supply heat/steam to a facility or process. The term for generating heat and power simultaneously is Cogeneration.

 

By utilising onsite generated electricity a business can reduce its exposure to expensive grid supplied electricity. Additionally by utilising the heat generated in the cogeneration process delivers excellent efficiency, meaning significant savings, delivering excellent returns on a CHP plant investment (a payback of 2 - 5 years is possible, depending on the application). Contact Smeaton Wood Energy to understand how cogeneration could benefit your business with our free feasibility study.

Will CHP work for my Business?

 

Combined Heat and Power has a number of applications however certain categories of business should see greater rewards than others. Usually, ideal organisations for a CHP plant are those that demand a constant and high heat and electricity demand. This allows the Combined Heat and Power unit to run at capacity for longer, maximising savings and therefore returns (a payback of 2 - 5 years is possible, depending on the application). Examples of such organisations are: Large Hotels, Leisure Centres, Manufacturing, Hospitals, Care Homes, Dairies, Food Processing, Large Offices, Museums, Shopping Centres, etc.

 

Don’t worry about space, CHP units are highly space efficient and with their weather proof containers they can even be sited outside if needed. Due to the pods being unfounded, in most cases planning consent is not required. Cogeneration plants have even been installed on the roofs of facilities.

 

 

CHP Funding Options

 

There are a number of approaches to procuring a Cogeneration plant:

  1. Capital Purchase: We can supply a turnkey quotation that will include all elements required to get a CHP plant up and running. We will also provide a maintenance contract so that you have full peace of mind that your investment will work to its full potential. By procuring via this route a business can take full advantage of the Enhanced Capital Allowances available on Combined Heat and Power.
     

  2. Discounted Energy Purchase: Many businesses either don’t have the working capital available to invest in a CHP unit or they would prefer not to invest in items outside of their core business. This is where our innovative Discounted Energy Purchase package becomes applicable. We will install, operate and maintain the Combined Heat and Power plant at our expense and risk. In return we will sell the business the generated electricity at much reduced rate compared to the grid supplied rates. This brings instant and significant savings as well as removing any risk from the benefiting business. To see if your business would qualify please contact Smeaton Wood Energy.
     

  3. Hire Purchase: Smeaton Wood Energy can arrange for an unsecured Hire Purchase package so that the cost of the CHP installation can be spread over time. By spreading the cost of the kit over 5-7 years, the Combined Heat and Power package should provide an immediate net benefit.

 

Why should my business install CHP now?

 

Put simply the energy market is currently in a state of flux. Gas prices are as low as they have been for some time and energy prices are higher than ever. This creates a perfect opportunity for CHP plants to operate at their full economic potential. Effectively a business can utilise the low gas prices to offset the expensive electricity prices. Not only this, the life of the CHP plant is circa 15 years and so the business can provide long-term energy security.

 

Please see the graph below supplied by EON which presents their forecast electricity costs:

 

 

 

If you would like a free feasibility study for your business please don’t hesitate to contact Smeaton Wood Energy today.