CHP for Businesses: The Benefits of Combined Heat and Power

Graphic illustrating the structure of CHP (cogeneration) system.

Photo: energy.gov

The advantages of micro combined heat and power systems offer businesses of all sizes substantial energy efficiency and lowered operating expenses. Is a CHP system right for you? Learn more about the benefits of incorporating this technology into your facility.

What is Combined Heat and Power?

The term CHP describes an exciting technology that generates electricity and captures heat to provide thermal energy. In most cases, that energy is used to produce steam or hot water. Depending on the facility, steam or hot water is then for heating, cooling, or industrial processes. In some applications, such as hospitality, it can also provide hot water.

The two most common CHP configurations are:

  • Combustion turbine with a heat recovery element

  • Steam boiler with a steam turbine

Energy Recovery with Combined Heat and Power

Energy waste is a common problem in any facility. According to some estimates by the EPA, as much as two-thirds of the energy produced in electricity generation is wasted. Most of that waste is in the form of heat, which is discharged into the atmosphere.

Delivering energy is also an issue. Electricity is lost during distribution from electrical grids. CHPs eliminate both problems by capturing that escaping heat and also producing energy on-site.

Most Common CHP Applications

Today, more than 4,440 facilities in the United States utilize CHP technology. Keen Technical Solutions work with AO Smith to bring a micro CHP system to northern Michigan. The Grand Traverse Resort and Spa’s 2017 CHP unit project generates 30 kW of power and an additional 60 kW of heat to support hot water production to support guest and spa needs. The CHP system is just one part of the Resort’s multi-faceted efforts to operate sustainably.

The Benefits of CHP Systems

CHPs achieve efficiencies of roughly 60-80% in energy production. Depending on the facility and application, some CHP systems achieve 90% efficiency, a considerable improvement on fossil fuel plants, which average closer to 33% in the United States.

Averages from different CHP systems highlight how different systems offer different efficiencies.

  • Combustion turbine: 65-70%

  • Fuel cell: 55-80%

  • Microturbine: 60-70%

  • Reciprocating engine: 75-80%

  • Steam turbine: 80%

Energy savings equate to financial savings, of course.  CHPs reduce energy bills, reduces wear and tear on HVAC systems by lowering their workload, reduce the risk of downtime due to power outages, natural disasters, and less exposure to variable energy rates.

Bring CHP Technology to Your Facility

Trust the energy efficiency experts at Keen Technical Solutions to provide the information and resources you need to evaluate combined heat and power systems for your facility. We’ll provide energy-saving estimates, find financial incentives and rebates to reduce upfront costs and handle installation suited to your timeline and your schedule. Contact us today to learn how Keen Technical Solutions can help your business grow.

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