What is Cogeneration?
Cogeneration, also known as combined heat and power (CHP), is a highly efficient process that generates electricity and heat simultaneously. By utilizing the waste heat from gas turbines, useful steam or hot water can be generated in a heat exchanger which can then be used in any number of applications, all with no additional fuel consumption. As a result, the overall efficiency of CHP systems can exceed 80%, making CHP one of the most energy-efficient methods of clean power generation.
The Benefits of Cogeneration
By using one fuel source to produce both heat and electricity simultaneously, cogeneration – or CHP – is significantly more efficient and cost effective than traditional power generation. Why? The figures below illustrate the difference.
Cogeneration solutions use a single fuel in a combustion engine, like a gas turbine, to generate electricity. The heat that is created as a result of the process is captured and recycled to provide hot water or steam for other uses—like heating or cooling for the facility. The energy lost can be approximately 13% only.
With traditional power generation, electricity and thermal energy are produced separately using two different processes and fuel sources: one process to generate the electricity and, then another process using an on-site boiler or furnace to generate heat. In such cases, the energy lost is significantly higher.
The Abundant Offer
With an extensive experience in the energy industry and a highly-resourceful team of experts, Abundant is uniquely positioned to provide its clients with the reliable turnkey solution to provide electric and thermal energy to run their businesses.
Based on each client’s business requirements and financial needs, Abundant offers two options for hosting a CHP system.
- Client enters into a Power Purchase Agreement (“PPA”) with AI Renewable at a discounted energy price compared with current energy cost.
- AI Renewable owns the CHP system and is responsible for all capital costs.
- Abundant provides turnkey solution of the CHP system within approximately 12 months from the date of signing the PPA.
- Client takes both electric and thermal energy from the on-site CHP system and makes monthly payment, much lower than the original cost, to AI Renewable for the term of the PPA.
Advantages: Energy Savings | No Capital Investment
| Reliability | Future Cost Certainty
- Client enters into a CHP Turn-Key Agreement with AI Renewable at a fixed amount.
- AI Renewable provides all the development capital.
- Abundant provides turn-key solution of the CHP system in approximately 12 months from the date of signing the Turn-Key Agreement.
- Client purchases the CHP system at Commercial Operation Date (COD) and enters into an Operation & Maintenance Agreement with Abundant.
- Client realizes all savings by utilizing the electrical and thermal energy generated from the CHP system & keeps all the tax benefits.
Advantages: Minimized risk by purchasing the CHP system at COD | Tax benefits | Energy Savings | Reliability