Combined Heat and Power (CHP)
What is CHP?
CHP, sometimes know as co-generation, is literally the ability to generate your own heat and power in one process and from one fuel source.
The activity of generating electricity almost always produces heat as a by-product. The source of the generation is generally many miles distant and the heat is normally vented to the air. Over recent years, the development of high-efficiency, purpose built, gas-fueled generator sets have changed the dynamics of this equation providing the possibility of placing a gas-fired generator set onsite and generating your own power. You can benefit from much reduced electricity costs and the captured heat is used for heating and hot water or other uses such as steam.
Combined Heat and Power (CHP) has been around for a long time, what is different now?
The Spark Spread.
The spark spread is the difference between the wholesale market price of electricity and its cost of production using natural gas.
Natural gas prices are at historic lows. There are abundant supplies and a high degree of competition in the market. In contrast, electricity prices continue to be impacted by non-commodity costs that, along with other non-energy costs, now form close to 65% of UK electricity bills. No matter how low commodity element of electricity prices goes, retail prices do not drop correspondingly.
This means it is now considerably cheaper to generate your own electricity than acquire it from the grid. By doing so, you eliminate and/or reduce many accompanying overheads such as transmission charges, losses, and capacity costs.
On site natural gas CHP plants convert natural gas as the primary energy source into electricity and heat. The energy is produced exactly where it is needed creating a highly efficient generation system. They provide a secure, cost effective energy supply, that is easy to maintain and manage.
Clean: On site energy generation using a natural gas generator (CHP)can save up to 40 percent in primary energy and produces up to 60 percent less CO2 emissions than conventional energy producers. The combustion of natural gas produces the lowest CO2 emissions compared to other fuels, as well as no soot emissions.
Post Covid, businesses are looking at methods of reducing costs and increasing business resilience. Generating your own power and heat is a great first step. The design, supply, and installation of an optimal generation system to ensure maximum benefit to meet the requirements of your site.
Design, supply and optimisation of on-site CHP ‘gas fueled generation
- Substantial reductions in electricity costs
- Reduced costs for heat and hot water
- Rapid Return on Investment (ROI)
- Environmentally friendly technology
- Full site evaluation confirms site viability
- Full installation and maintenance
Combined Heat and Power’ generators have changed the landscape of the energy industry by reducing carbon and generating huge savings and/or income for their owners. Essentially, they utilise the cheaper cost of gas (typically 2 – 4 pence per kilowatt hour (kWH) to generate expensive electrical power (typically 12-18p/kWh). The heat which is usually lost at power stations is recaptured and can be used for either space heating or hot water requirements of the building. Dramatically reducing energy costs and in many cases generating income. These are particularly useful in businesses with high hot water demand or year-round process heat requirement and can suit a wide range of commercial buildings..