Cogeneration, also known as combined heat and power(CHP), is the on-site production of multiple types of energy – usually electricity, heat, and/orcooling – from a single source of fuel. This often replaces the traditional methods of acquiring energy, such as purchasing electricity from the power grid and separately burning natural gas or oil in a furnace to produce heat or steam. While the traditional method of purchasing electric energy from a utility is convenient, it can be potentially inefficient and often wastes almost 75% of the energy in the original fuel due to production and transportation losses, according to a new report.
On-site cogen systems convert 70-90% of the energy of the fuel that is burned into useful electricity or heat. Depending on the application, the integration of power and heating/cooling productions into one on-site cogeneration system can often produce savings of up to 35% of total energy expenditures. If your facility is a big energy user, those kinds of savings can pay for installing a cogeneration system in as little as two to three years for some applications.
This report from Cummins explores the potential of cogeneration for your facility, including increases in energy-efficiency, economic and environmental benefits.