With a correctly sized CHP unit, you could cut your organisation’s costs and carbon emissions
Combined Heat and Power (CHP), also known as cogeneration, uses fuel to produce electricity. It’s a highly efficient solution, with several benefits for your organisation. Did you know that it can also help you to reduce your overall carbon usage?
This is achieved through efficient fuel use and reduced transmission losses. By using gas more efficiently than it would be utilised in conventional heat generation through a boiler, CHP units can help to reduce your overall running costs and carbon emissions.
To increase efficiency, CHP utilises a significant portion of the heat generated during electricity production. For every 100 units of fuel input, a CHP unit operating at 80% efficiency provides 40 units of electricity and 45 units of heat – depending on unit size. To generate the same output, a conventional gas boiler combined with grid electricity would require 145 units of energy input. It’s here that we usually see a cost and/or carbon reduction– because a lower primary energy input is needed to power CHP.
To secure this for the long term, however, maintaining the electrical efficiency of your CHP unit is paramount. This is highest when it’s constantly running at full capacity. So, your unit should be sized to ensure that this can occur as much as possible.
Sizing your CHP unit should be based on a realistic assessment of your heat and electricity requirements. This should take both your daily and annual usage into account. When your heat and electricity requirements are roughly the same, your CHP unit will be most effective – both ecologically and financially.
The reduction in CO₂ emissions achieved through CHP only becomes clear when compared to a building which utilises a conventional heating system. To meet emissions targets set by building codes and standards, calculating this requires the use of agency-approved software.
The algorithms used in this software are not precise enough to be used for sizing a CHP plant. It can be used to calculate a theoretical carbon reduction. But, if this were carried out, the CHP system would be vastly oversized – and perform inefficiently. It’s crucial therefore that your compliance check is based on a precisely sized plant.
The benefits of your CHP unit’s efficiency don’t end with carbon savings. By choosing CHP instead of reinvesting in a traditional boiler, you could see significant long-term cost reduction.
We’ve already seen that CHP requires less primary fuel input to run than a conventional boiler, which naturally means you may spend less on energy. But its dual outputs could also mean you’ll save on your electricity bill in the long term.
As we explored in our Economics of CHP guide, with a conventional boiler, you’d need to input fuel to produce heat. You’d also still need to import electricity from the grid to power your business.
However, with CHP, you’ll be able to generate both heat and power simultaneously from a singular fuel input. This means you won’t need to import electricity separately – potentially cutting your costs hugely over your CHP unit’s lifetime. So, by investing in an efficient CHP unit, you could not only secure long-term carbon savings – you could also secure cost savings to boost your business.
We’ve seen the carbon savings you could achieve with a natural gas CHP. It shouldn’t be forgotten, however, that future energy trends will include a hydrogen mix.
CHPs should be designed to be future-ready, in preparation for grid changes – including 100% hydrogen. With our supply partners, we’ve ensured that we can provide CHP solutions which come with dual gas trains. This allows your current fuel (like natural gas, biogas or LPG) to be mixed with hydrogen at a blend that suits both your local supply and net zero aspirations.
If you’re interested in reducing your organisation’s costs and carbon emissions, our team of CHP experts can help. We have over 35 years of experience delivering CHP solutions worldwide, and over 200 years of experience as energy sector leaders.
With our seven-step pathway designed to support you at every stage of your asset’s lifetime – from initial idea to long-term maintenance – we’re here to help you to balance the demands of planet and profit. To speak to our team about deploying CHP, complete our simple form and tell us more about your requirements.
Sign up to receive regular updates on:
By submitting your details you agree to process your personal data by Centrica Business Solutions as described on the Privacy Policy. Centrica Business Solutions will send you a regular newsletter and other marketing material we believe is relevant. You will be able to opt out of communications from us at any time.
