Applying cogeneration in a company IMPROVING ENERGY EFFICIENCY IN SMALL AND MEDIUM SIZED COMPANIES WITH COMBINED HEAT AND POWER PRODUCTION. Guide for entrepreneurs
Can investment in combined heat and power production be beneficial for your company? Rising energy prices make the costs associated with its use are becoming increasingly important in the structure of Polish enterprises operating costs. This shift in approach to energy use in enterprises is also affected by more conscious attitude of society that sees adverse changes in the environment. Recent investment projects implemented to increase both economic and environmental sustainability of energy supply in companies have proved that an effective way to improve energy efficiency is an installation of combined heat and power energy sources. The technology offers a local supply of both heat and electricity from one source. Examples of technology are cogeneration units or Organic Rankin Cycle (ORC) units. A special application is used for the ORC units; these are best suitable in applications where a different medium to water is preferable and the source of heat is biomass. Through replacing external sources of energy with cogeneration, investors can achieve up to 35% annual energy savings. The cost savings can be even higher, conditional upon the mix of heat and electricity consumption. Furthermore, the produced electricity can be fed into the grid, which might generate another source of income for the investor. As a result, investments generally have a simple payback period of 3 8 years. The purpose of this brochure is to provide basic information on investments in cogeneration and generating significant energy savings at a level not less than 20%. It has been prepared on the basis of investments implemented in Poland and the Czech Republic. What companies can benefit the most from installation of combined heat and power production? Suitable applications for the technology are in any business that requires large amounts of both heat and electricity, such as wellness centers, medical facilities, paper industry, chemical industry, food industry and municipal energy supply. ORC units can be easily installed and deliver decent benefits in firms in the timber industry with wood waste suitable for use in heat boilers. Examples of investment projects in cogeneration implemented by small and medium companies Installation of ORC unit Supply of heat and electricity in a wood processing firm The project consisted of an installation of an ORC unit Tri-O-Gen WB-1 with 150kWe and a wood chips boiler RTU 1.16 MW. The wood chips are a byproduct of the company business. The investor receives green bonus for the electricity produced. The simple payback period is 7.5 years. 1 044 000 EUR Final energy: heat 5 555MWh annually Electricity 920MWh annually Installation of ORC unit Supply of heat and electricity in a wood processing firm
Installation of CHP unit Health centre The project consisted of an installation of 2 CHP units Tedom T30 with 30 kwe and 62 kwt each. Energy from this source replaced heat and electricity delivered externally. This lead to a reduction in energy consumption by about 28% and costs by approx. 50% and a simple payback period of 5 years. 105 000 EUR 28% 30 000 EUR annually Installation of CHP unit Hotel The project consisted of an installation of 2 CHP units Tedom T30 with 30 kwe and 62 kwt each. Energy from this source replaced the local heat boiler and electricity delivered externally. This lead to a reduction in energy consumption by about 20% and costs by approx. 20% and a simple payback period of 6.3 years. 90 000 EUR 20% 20 000 EUR annually Installation of CHP unit in Health centre Savings 30 000 EUR annually Installation of CHP unit in Hotel Savings 20 000 EUR annually
Installation of CHP unit Greenhouse The project consisted of an installation of a natural gas fuelled CHP unit in a greenhouse where flowers are grown. The CHP unit provides electricity (mainly for lighting) and heat to the greenhouse. The new cogeneration unit will allow the company to increase its production capacity by 11%, and result in primary energy savings of 26% when compared with the separate generation of heat and electricity from natural gas. The simple payback period is 3 years. 757 000 EUR 26% 240 000 EUR annually Installation of CHP unit in Greenhouse Savings 240 000 EUR annually
Financing of investments in cogeneration and ORC technologies in the field of combined electricity and heat production. Investments in installations of cogeneration or ORC units by small and medium companies are eligible for financing within the PolSEFF 2 programme under the condition they deliver minimum 20% increase in energy efficiency. As these investment are most often complex it is recommended that the investor follows the PolSEFF 2 standard financing procedure. A detailed description of this procedure can be found on the PolSEFF 2 website in the How to apply pages. Benefits of using the PolSEFF 2 programme to finance cogeneration and ORC investments. Being an entrepreneur, you may receive the following benefits by participating in the programme: Annual energy savings of at least 20% A grant of 10% or 15% of the loan amount used to finance the eligible elements of the project. 15% is granted under investments that require full energy audits of buildings. Free support of Certified Energy Experts who assist in completing the required application forms and conduct the required technical and financial evaluation of the project. The experts also provide energy audits and verify that the investments qualify for financing.
PolSEFF 2 the programme for financing energy efficiency investments in small and medium enterprises. PolSEFF 2 is the second edition of the successful Polish Sustainable Energy Financing Facility programme developed by the European Bank for Reconstruction and Development. It is implemented as a part of the NF Programme, which is operated by the National Fund for Environmental Protection and Water Management and with support of the European Union. PolSEFF 2 is a EUR 200 million credit line made available to participating banks. The banks then offer loans to SMEs for financing energy efficiency investments. More information about the PolSEFF2 programme is available at http://www.polseff2.org/en. Contact: PolSEFF 2 OFFICE ul. Orzycka 27, 3rd Floor 02-583 Warsaw, Poland Tel. +48 22 395 51 20 Fax +48 22 395 51 23 email: helpline@polseff.org www.polseff2.org WE SUPPORT AND FINANCE THE IMPROVEMENT OF ENERGY EFFICIENCY IN YOUR COMPANY