CHP(Combined Heat and Power): The system that dramatically reduces electricity and gas charges in buildings.
At this time when financial difficulties are increasing, companies, factories, hotels, hospitals, apartments, spas, and large fitness centers need utility cost reduction more than ever. Accend Energy, Inc, specialized in energy saving, has released a product that dramatically reduces electricity and gas charges in buildings.The product is named CHP (Combined Heat and Power). It uses natural gas or biogas to simultaneously generate heat and electricity in a single system. CHP consists of an engine and an electricity generator. When the engine receives natural gas or biogas, it activates the electricity generator where electricity is produced. At the same time, CHP gathers the heat that was produced from the engine during this process and supplies it to space heating , hot water inside buildings, hot water used in laundry, and heat needed for swimming pools and spas.
The history of this CHP goes back to the 19th century. When Edison invented the first electric power plant, this plant generated both heat and electricity at the same time. The Department of Energy of the United States has recognized CHP as the energy generating device that can effectively satisfy the US’s demand for energy for the present and the future.
Already in the United States, CHP is being widely used in many factories, commercial buildings, state and city government buildings, hospitals, hotels, and others, and from these, the amount of carbon dioxide emission in a year has been reduced by roughly 248 million tons. This equals the effect that could be achieved by getting rid of 45 million cars from the streets. Presently in Europe, 20% of the electricity is being supplied by CHP. If in the United States, the company customers install CHP as in Europe, it will achieve the same effect of eliminating 154 million cars in the streets, thereby significantly reducing air pollution in the United States.
According to the Department of Energy in the United States, 88% of CHP’s market is large industrial facilities.These include chemical plants, paper mills, refineries, factories, food processing plants, and metal manufacturing plants.The remaining 12% of the market includes hospitals, schools, universities, nursing home facilities, hotels, commercial buildings, and apartment complexes.The Department of Energy, in order to enhance the dissemination of CHP, divided the U.S. into eight regions and opened CHP distribution center in each region where CHP technical support and training is provided.
Typically, it costs $3,000 to $4,000 per KW to install CHP system. For example, if a building requires 100KW of electricity, it costs $300,000 to $400,000 if CHP 100KW system is installed to meet the building’s electricity demand. Assuming that through this process, the gas and electricity charges are reduced by 30%, it takes at least six years to recover the investment costs. Also, after installing this system in a building, the owner has to consider the cost for this system’s maintenance. For this reason, many building owners hesitate to install it. In the past, company customers who wanted to install CHP bought this system with cash. Recently, a variety of lease programs have been introduced to alleviate the burden of the consumers. Yet, Accend Energy, with U.S. Nasdaq-listed company American DG Energy, has announced a breakthrough business model in which the building landlord can reduce energy costs at no cost. Accend Energy and American DG Energy analyse the amount of electricity and gas being consumed in a building and design CHP system unique for the building. If necessary, Accend Energy and American DG Energy will also provide Chiller, which is a cooling system, at no cost. CHP system can provide 60KW up to 800KW of system capacity, and Chiller can provide 200 tons up to 2000 tons.
Accend Energy and American DG Energy will be responsible for the operation and maintenance after the installation. They will also be responsible for the cost of the gas needed for generating heat and electricity. According to thermal amount of hot water and heat and electricity used, the owner of the building will contract for gas and electricity usage payment that will be 10% less than the price that the existing gas and electricity companies demand. Fifteen years are the standard period for the contract. Therefore, the customer will be able to reduce economic costs only by paying reduced gas and electricity usage bills without having to purchase the system or to pay for the operation and maintenance of the system. Additionally, by generating electricity directly inside the building, it will be possible to produce less carbon dioxide than the existing electricity companies do. The surrounding environment can benefit from less air pollution. Finally, the building will be equipped with emergency gas and electricity backup system because new CHP and Chiller will be installed in the customer’s building in addition to the existing boiler and chiller.
Please contact 562-407-0800 for detailed inquiries.