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Two people looking at a glass ceiling.

How to cut costs and meet CO2 targets

With increasing demands to cut costs and CO2 waste, businesses are turning to combined heat and power (CHP) for cheaper more efficient energy supply.

Being in business is becoming tougher. With shareholders demanding healthier profits, you have to find new ways to cut costs – without them having a negative impact on your operation. Then there’s the added pressure of your environmental policies and practices – you’ve got to minimise your carbon footprint. So, what’s the solution? You install a cogeneration system.

It’s a win-win solution

CHP, also known as cogeneration, produces electricity and captures the heat created in the process. This can then be used to provide low-cost heating and hot water. Because of the way it works, CHP plants typically have an overall efficiency of 80% or more. In terms of waste versus energy produced in the UK market, here’s how that compares:

  • CHP = approximately 20% waste
  • Centralised power generation = around 60% waste

Modern combined cycle gas turbine stations = roughly 50% waste modern combined cycle gas turbine stations waste roughly half.’

Is CHP a good fit for your business?

If your building is large and requires a lot of energy, then yes. There are currently around 2,000 individual CHP schemes in the UK providing power to the likes of Premier League football stadiums, luxury hotels, and hospitals.

Buildings suitable for CHP technology include:

  • Schools
  • Leisure centres
  • Retail stores
  • Office buildings
  • Commercial buildings
  • Industrial facilities
  • Universities
  • Hospitals
  • Hotels
  • Data centres

Six reasons why you should consider CHP

A CHP system is a big investment, but the rewards in terms of money and energy saved are worth it.

1. CHP will reduce your costs

Cutting your energy costs is a highly effective way to lower your expenses. The Association of Decentralised Energy says organisations using CHP units can save between 15 and 40% of their electricity costs when compared to power sourced from the grid and heat generated by on-site boilers.

2. CHP will cut your CO2 emissions

CHP units typically provide a minimum of 10% reduction in CO2 emissions when compared to conventional forms of energy generation.

3. CHP gives you options

The thermal energy (either heat or cooling) that a CHP unit produces can be used immediately on site towards the heating demand or captured in storage mechanisms, then delivered later to meet demand.

4. CHP is more reliable

CHP units are housed on site. They can be operated independently from the national grid, making them a secure source of energy and a highly reliable power and heat supply.

5. CHP is the perfect replacement for older systems

The older boiler equipment becomes, the more it costs to maintain. Its heat capacity may also begin to fall short of ongoing requirements for a building, especially if the company grows. Simply replacing the boiler with a new one is one option, but that won’t provide the same savings as a CHP system.

6. CHP can be used in many different industries

CHP is a natural fit for many industries and building types, including food processing plants, hospitals, leisure centres and schools. The thing they all have in common is that they need to keep their operating costs and emissions to a minimum, and that’s where cogeneration units excel.