Leading Supermarket Retailer Reduces Energy Costs with CHP

The Challenge

As one of the UK’s largest supermarket retailers, the company sought ways to generate and consume energy more efficiently while reducing operating costs and supporting carbon-reduction objectives. Distribution warehouses were a particular focus, as maintaining consistent temperatures across large facilities can be both energy-intensive and costly. Following the evaluation of energy opportunities across its operations, one of the retailer’s larger warehouse facilities was identified as a candidate for energy optimization.

The Solution

Centrica Business Solutions delivered a multi-faceted energy solution centered around a containerized 1.5 MW combined heat and power (CHP) system utilizing an MTU generator set. The system was designed to provide on-site electricity while supplying hot water and supporting facility heating requirements.
To support the warehouse’s refrigeration needs, the solution also incorporated a specialized exhaust gas heat exchanger designed for this application. The recovered heat is used to drive an ammonia chiller that produces chilled water for the distribution facility, helping support temperature-controlled operations.

The Result

The solution is projected to deliver approximately $500,000 in annual cost savings while displacing an estimated 11,637 MWh of grid-supplied electricity each year. The project is also expected to reduce annual emissions by approximately 5,775 metric tons of CO2.
In addition to reducing energy costs, the project provides a model that can be evaluated for deployment at other warehouse facilities across the retailer’s portfolio. The collaboration also creates opportunities to explore future initiatives related to energy consumption, conservation, and generation.