Everything You Need to Know About Combined Heat and Power (CHP)

Combined Heat and Power (CHP) is an increasingly important energy solution for businesses looking for improved efficiency and reduced carbon emissions. CHP is particularly successful for sites with consistent and simultaneous demand for both heat and power, such as factories and large commercial buildings.

As energy costs and sustainability pressures continue to rise, understanding how CHP works and where it delivers the most value is important.

In this article, we’ll explore what CHP is, how the technology works, the key advantages and disadvantages, and the potential savings it can have on a business.

What is CHP?

Combined heat and power is an energy efficiency technology. Combined heat and power (CHP) integrates the production of usable heat and power (electricity) in one efficient process.

Different to other types of energy efficiency technology, combined heat and power (CHP) can capture any heat that is produced in the process, rather than letting the heat energy go to waste. First and foremost, combined heat and power is an energy efficiency technology which provides a means to substantially reduce fuel consumption without compromising on quality, or the reliability of energy supply to consumers.

By producing heat and power simultaneously, CHP can reduce carbon emissions for a business by up to 30%, as it allows any heat requirements to be met that would normally require additional energy.

For many organisations, combined heat and power is the most effective opportunity to reduce energy costs and to improve environmental performance – existing users are typically saving around 20% of their energy costs.

Here’s how CHP works

Here’s How CHP Works

Advantages of Combined Heat and Power

There is no perfect energy source, but combined heat and power (CHP) comes close in the right setting, especially if heat and electricity is in high demand in your business.

Here are some of the direct benefits of combined heat and power:

• High overall energy efficiency of over 80% – unlike traditional power generation, where large amounts of energy are lost as heat, CHP captures and reuses that heat on site.

• Reduces carbon emissions (up to 305) – Because less fuel is required to produce the same useful energy output, CHP can significantly lower CO2 emissions.

• Improved energy reliability and flexibility– CHP systems generate energy on site, reducing dependence on the grid.

• Better energy supply with demand – Many CHP systems can be paired with thermal storage or smart controls, allowing businesses to better match energy generation with real-time heat and power requirements.

• Lower overall energy costs (minimum of 10%) – By increasing efficiency and reducing reliance on purchased electricity, many organisations see meaningful reductions in total energy bills.

Long Term Advantages of Combined Heat and Power

Alongside the direct benefits that combined heat, and power would bring to your business, there are also a range of beneficial outcomes in the long term:

• If the amount that your business is spending on energy is reduced, this can improve the competitiveness of industry and business.

• Security of supply being enhanced will make energy go further through more efficient use of fuel.

• As combined heat and power is flexible and reliable, it can complement and even enhance other forms of energy generation should your business further its renewable energy investment.

• The flexible nature of combined heat and power can be easily stored and later delivered to meet the demand of the user.

• Overall reduced demand across the country in regard to centralised power supply, which reduces the stresses on the electricity grid.

Potential Savings For Your Business

As with all renewable energy technologies, what you’ll be most interested in learning is what an investment in combined heat and power could actually save your business.

Here’s an example calculation for a CHP system running on a renewable woodchip fuel (arborElectroGen45) based on oil fired heating, that illustrates the potential for significant savings:

Income – Electric saving	£38,400
Income – Renewable electricity subsidy (ROCs)	£24,192
Income – Oil saving	£16,400
Income – Renewable Heat subsidy	£49,987
Cost – Fuel cost	£38,400
Cost – maintenance	£15,000
Income – Annual net benefit	£75,579

This is based on being able to use 100% of the generated electricity and heat to offset the existing business running costs.

Renewable electricity generated = 320,000 kWh per annum

Renewable heat generated = 656,000 kWh per annum

How Noble Green Energy can help…

Noble Green Energy are renewable energy specialists that can take care of the whole process for you, so that you can concentrate your efforts where they’re really needed ,your business. From assessing your site for suitability, to the installation and maintenance of a CHP system, Noble Green Energy will be there every step of the way.

If you’re interested in learning more about how combined heat and power could help to reduce your energy consumption, and your energy bills, please get in touch with us today.

Contact our friendly team on 0345 266 0023 or getintouch@noblegreenenergy.co.uk