Turn waste into wealth with CHP

What’s invisible, odorless, and could save you millions of dollars every year?

What’s invisible, odorless, and could save you millions of dollars every year? 

The answer is heat. 

In a traditional clean or renewable natural gas, hydrogen, propane, or biogas engine, up to two-thirds of energy is lost as heat in the combustion process. At the same time, facilities often shell out thousands of dollars every year for natural gas to heat water, cool systems, and more. 

By simply capturing your wasted heat for your natural gas applications, you can kill two birds with one stone: you boost system efficiency and cost-effectiveness while reducing your natural gas costs at the same time. This is the core concept behind combined heat and power (CHP) systems. 

But what exactly is CHP and how the heck does it work?

The ABC’s of CHP 

CHP, also known as cogeneration or cogen, is an integrated energy system in which both electricity and useful thermal energy are generated from a single fuel source. In a CHP system, the waste heat is recovered and used as thermal energy for hot water, steam, and heating and cooling purposes.

Combined heat and power (CHP) systems date back to Thomas Edison himself. In 1882, Edison built the first American commercial central power plant, which produced electricity and used waste steam to heat neighboring buildings. Fast forward to today, CHP remains an effective energy efficiency strategy across a wide range of applications: In fact, more than 81 gigawatts of CHP capacity exists at roughly 4,400 sites in the U.S. and surrounding territories. 

Traditional CHP systems are typically made up of three main components: an engine or combustion turbine, generator, and heat recovery unit. Fuel powers the engine or turbine to turn the generator, which in turn produces electricity for onsite use. The residual heat from the engine or turbine is captured by the heat recovery unit and is converted into useful thermal energy, often as steam or hot water.

While roughly 70% of U.S. CHP systems are powered by clean or renewable natural gas, a wide range of other fuels can be used, such as hydrogen, propane, and biomass. There is also ongoing research and development for the use of renewable fuels like renewable natural gas, biogas, and biomass in CHP applications.

CHP is used in a wide variety of applications, from heating and cooling in multifamily residential units to large industrial processes and municipal waste treatment plants. It’s also commonly used in hospitals, laundries, hotels, and other commercial entities. 

Saving millions with CHP 

Because it captures and converts heat that would otherwise be wasted into usable thermal energy, a CHP system is a higher efficiency alternative to traditional generation. A typical CHP system has an efficiency of up to 85%, which far outshines the roughly 45% efficiency of a typical natural gas plant. This increased efficiency creates environmental and cost savings benefits: Organizations can achieve the same operational goals with less natural gas, reducing carbon emissions as well as energy costs.

In fact, we see average combined electricity and natural gas savings reach close to $2 million per year. Multiply that by a lifecycle of 20 years and you’re looking at a whopping $40 million in savings with CHP! 

As a source of onsite power and heat, a CHP system lowers a facility’s dependence on the electric grid, which directly translates to reduced utility bills and protection against rising electricity costs. It also can act as a reliable source of backup power during grid outages.

CHP is also very flexible, as it can be implemented using different technologies. As a tried-and-true energy efficiency strategy, system installation tends to be relatively straightforward.

CHP + Solar & Battery Energy Storage

When combining the efficiency and savings benefits of CHP with the benefits of solar, we see savings and payback periods improve considerably. Solar can also be paired with battery energy storage to manage peak energy demand and offsets demand charges that often account for more than half of a facility's energy spend. More than savings, this combination of mature technologies can provide the essential backup power that allows a facility to remain online through prolonged grid outages. 

Here at Promise Energy, we specialize in energy management solutions for complex energy systems. As every facility has unique energy needs, our holistic approach and broad technology experience, ensures our clients access the combined benefits of all available solutions. The first step to solving this riddle for your facility is by simply requesting a comprehensive energy analysis.  

Big returns for big electricity spenders 

Do you spend a combined $150,000 per year or more on electricity and natural gas at your facility? Do you run processes 24/7 or have a high need for hot water, steam, or cold storage? 

If so, CHP is likely the answer! By investing in an onsite CHP system, you can slash gas and electricity costs, ramp up system energy efficiency, and gain a reliable onsite energy source - all by simply capturing your system’s waste heat. 

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Ready to get started? Contact Promise Energy to be matched with a dedicated energy expert who can provide a holistic assessment of your potential energy system savings. 

At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.