We are delighted to have been sent, (and publish) the following press release, which we believe is very good news for existing AD Plant owners, and also those considering jumping into the AD Renewable energy business.
If you are not quite sure what a CHP Unit is, let me just tell you that it stands for Combined Heat and Power Unit. If that still means nothing let me tell you that you are not alone! The renewable energy sector badly needs to come up some new ways of describing what CHP is!
Putting the jargon to one side. This CHP Unit takes the heat which, without it, would go into one of those cooling systems you see on the top of biogas power containers, you know those ISO Containers which contain those gas engines (electrical power generators) which hum away all day and night. It converts that heat in a heat exchanger, into hot water.
The hot water produced is the piped to a place where it can be used. That can be anything from heating the domestic radiators in homes, to providing hot water for an industrial process in a factory.
With a CHP Unit, farmers can heat their own greenhouses, and barns, seeing an immediate reduction in their fuel bills, or export the hot water through pipes to neighbours. So, if the CHP Unit investment cost is low enough, the profitability of biogas plants will be improved wherever they are installed. This new CHP technology appears to fit all the technical requirements, so its uptake will depend on the price to buy these CHP Units.
PRESS RELEASE: 24 April 2015
New ENER-G biogas CHP technology warms up cash returns on small scale anaerobic digestion
ENER-G has turned up the heat on the anaerobic digestion market by launching a new sub 200kwth CHP unit that maximises financial returns on both the highest rate Renewable Heat Incentive (RHI) and Feed in Tariffs (FIT).
This will help to stem the shortfall from FIT digression following the 20% reduction in FIT rates last year and ongoing tariff reductions. ENER-G says that its new biogas CHP technology makes small scale anaerobic digestion viable for a wider customer base, particularly smaller farms and dairies, as well as industrial processors.
The new ENER-G E200 biogas CHP unit provides a thermal output of 195kWth (qualifying for the highest rate RHI of 7.5p per kWth), together with an electrical output of 205kWe - at a total efficiency rating of 77.1%.
"Our UK design team have packed a mighty heat punch of 40.7% efficiency into the new E200, without compromising on high electrical efficiency of 37.6%," said ENER-G's Laurence Stephenson. "The heat efficiency for a unit of this size is unmatched in the market, which is critical in boosting RHI returns to bridge the shortfall from dwindling FIT rates.
"It will accelerate the pay back on investment - making anaerobic digestion feasible for smaller farms and other sites. This could provide a valuable lifeline for dairies, which are under huge financial pressure from falling milk prices."
ENER-G's UK R&D team has achieved the high thermal output by using a high efficiency turbo-charged MAN engine and then reducing the cooling level of exhaust gases to achieve a sub 200kWth heat output that falls below the threshold for highest rate RHI.
The higher rate of RHI payment, available only to sub 200 kWth sites, provides customers with an extra 1.6p per kWth compared to the next tariff band for sub 600kWth sites. This provides a guaranteed income over 20 years that increases with inflation.
FiTs are payable on electricity generated from a CHP unit of this size at the highest current rate of 10.13p per kWh..
At current rates, a typical farm or dairy operating the E200 on a 24-hour cycle at 92% availability would receive annual payments of £167,361 for FITs and £117,866 for RHI - amounting to a total guaranteed 20-year income of up to £5.7 million. This would be around £455,340 more than the lifetime income from the lower band RHI tariff.
Government grants of up to £10,000 are available to UK farmers to undertake anaerobic digestion feasibility studies.
Laurence Stephenson added: "Many pre-accredited anaerobic digestion projects are stalling because of finance issues, particularly due to FIT digression. But with guaranteed higher rate returns from RHI, a typical small scale anaerobic digestion project should offer a payback within four years, providing a guaranteed profit stream thereafter. ENER-G's maintenance package guarantees a minimum 92% availability of power and heat production - providing added certainty in negotiating finance".Further information is availabe at: www.energ.co.uk/chp
The ENER-G CHP system can be supplied in a container on a 'plug and play' basis - simplifying and speeding up the commissioning process, which must take place within 12 months of pre-accreditation approval.
For the past 30 years ENER-G has been European market leader in small scale CHP (4kWe to over 10MWe). The company has developed over 170MW of biogas power generation from AD, landfill, and associated gases. ENER-G provides a complete package - from design and manufacture of CHP systems - to installation, commissioning and finance - through to maintenance and service via its national engineering team. It also supplies pre-treatment technology required to clean and dry biogas from digestion processes, such as effluent and AD.
We would love to hear about your experiences with biogas plant CHP generally, and specifically for this and any other Anaerobic Digester Sites, of which you are aware. Just add a comment, and we will publish your non-spammy comments.
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