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Combined Heat and Power plants – carbon AND cost saving? Daman Ranby – Director Ashley Allsop – Head of Sustainability Overview Increasing Fuel Costs Part L of the Building Regulations 2010 Corporate Social Responsibility Energy Reduction Initiatives Marketing Opportunities The Bottom Line! Combined Heat & Power – The Basics A “Generator” of Electricity & Hot Water For Reciprocating Engines: • Fuels - Natural Gas, Bio Oil & Bio Gas • Electrical Power Outputs up to to 10MW 100% Fuel >30% Electricity Engine <20% Losses 50% Heat Combined Heat & Power – The Basics Combined Heat & Power – The Basics 930kWe Output CHP Combined Heat & Power – The Basics 5.7MWe Output CHP Combined Heat & Power – The Basics The UK Electricity Grid Mix <45% Efficient Grid Electricity Generation produces 0.517Kg/CO2/kWh Expensive Energy 10pence/kWh 100% Fuel Power Station Mix 50% Electricity Grid Losses 45% Electricity Waste Heat Combined Heat & Power – The Basics “The basic principle of CHP is that you generate high cost electricity using low cost gas with less emissions” Combined Heat & Power – The Basics CHP Gas Boiler & Grid 20Kg CO2 100KW Heat Heat Demand 100KW Heat 25Kg CO2 20Kg CO2 100KW Power Power Demand 100KW Power 52Kg CO2 10Kg CO2 Total 50Kg CO2 50KW Losses 150KW Losses Included Total 77Kg CO2 When to Consider CHP 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! How CHP Integrates Into Your Factory 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 Base Heating Load Hot Water Load CHP CHPHours OperationCHP Extended Hours Time Case Study - Background 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 - Plant CHP Plant Gas Input 2500kW Electrical Power 930kWe Thermal Output 1300kWt Installed cost, approx. £1m Case Study - Fuel Fuel Inputs Natural Gas – 2500 kW x 8000 hours = 20,000 MWh Cost of Gas Used = 20,000 MWh x 3.5p = £700k 100% Fuel Case Study - Outputs Outputs Electricity 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 Heat 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 0.165 = £17k Case Study - Maintenance Operating Costs Maintenance 7,440 MWh x 1.5p = £111k p.a. CHP down time costs? Case Study - Returns Financial Summary Per Annum Gas Input £700k Maintenance £111k Electricity (£744k) Heat Output (£364k) Less CCL (£53k) Total Approx. Saving (£350,000) Case Study Case Study - Investment Capital £1M Savings p.a. (£350k) Total Approx. Payback 2.8 years Return on Investment ROI 35% CO2 Traditional Route 5,905 tons CO2 produced by CHP 3,960 tons Pros & Cons Over-sizing Plant Reduced operating hours Life Time Costs, Servicing, Shutdowns Good Quality CHP - CHPQA – CCL Exempt Attracts Enhanced Capital Allowances And Finally…..! Correctly Designed CHP will – • Reduce CO2 emissions • Reduce running costs • Promote CSR • Improve the bottom line! Questions Daman Ranby Office 01159 758595 Mobile 07871 545566 Email [email protected] Useful websites and Documents Useful websites: www.chpa.co.uk; www.carbontrust.co.uk www.CIBSE.co.uk CIBSE AM12 GPG388