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Combined Heat and Power

Advantages of CHP

What excites us here at Ecoliving is helping organisations and businesses reduce energy costs and carbon, turning today’s energy costs into a new revenue stream for tomorrow. We specialise in implementing energy savings and delivering the best possible return on investment.

Who can benefit from CHP?

Companies which can benefit most from the advantages of CHP tend to fall into one or more of these categories;

  • Require high or low temperature heat
  • Could utilise heat to create additional revenue
  • Don’t currently generate electricity on site

For example, a company has a production process and/or building that requires materials/ingredients or the environment to be heated for: 

Plant nursery benefitting from the advantages of chp

  • Drying
  • Melting
  • Washing
  • Space heating
  • Chemical reaction
  • Steaming

Production Process Examples

A few examples of how different industries may use heating for a number of different processes:

  • Farmer rearing chickens may need space heating for rearing sheds
  • Animal feed factory requiring steam to pelletise the product
  • Drinks bottling plant needs to heat water to clean bottles
  • Heating greenhouses for growing crops
  • Drying waste to reduce transport and or landfill costs
  • Drying chicken manure for transporting and sale as bi-product
  • Drying paper crumble to make animal bedding

Advantages & Benefits of CHP

Combined Heat and Power systems provide a number of valuable benefits that can help to improve the energy efficiency of businesses, cutting the overall energy costs and providing additional income. Here are a few examples of typical benefits from adding a CHP system:

  • A Combined Heat and Power system with a renewable heat source:
    • Attracts the government’s Renewable Heat Incentive (RHI) for a 20 year income stream
    • Electricity is also generated and used on-site or sold back to the grid or a third party.
  • A Combined Heat and Power system with gas – particularly where there is a high heat and electrical demand can substantially reduce energy costs.

Typical CHP System Payback

CHP System payback varies depending on the application and any additional infrastructure required. Typically with CHP we are seeing payback periods of around 3 years and sometimes shorter.

e.g. 1.2 megawatt Biomass CHP with drying equipment and shed costing £1.2m will pay back in approximately 3-4 years. This includes fuel costs, RHI and ROCS income but excludes any income derived from sales of the dried product.

CHP System Funding

Banks tend to be comfortable with lending for these projects, fully funded options are also available where the funder will collect the RHI and ROCS income.