Cogeneration or Combined Heat & Power (CHP)

This technology is also known as decentralised energy. It is classified as the production of two useful forms of energy normally in the form of electricity, hot water or steam.

The electricity is generated usually from a gas turbine. Gas as a fuel source is commonly cheaper than mains supply and can be natural gas, biogas or in appropriate instances biomass. The turbine provides direct electricity to a facility and simultaneously heat for other processes such as hot water consumption or air conditioning (trigeneration).

The economic and environmental benefits for a business or industrial facility are considerable due to efficient nature of this technology. Carbon dioxide emissions from your businesses direct consumption will be reduced by up to two thirds on average when compared to coal fired power stations.

Facilities that would most benefit from a cogeneration plant are those requiring large amounts of energy for hot water, steam, heating, ventilation and cooling (HVAC) or a combination of all.

SHGL will review the electricity demand profile of your building to determine when the peak consumption occurs as well as the energy capacity of existing plant equipment. This information will determine the capacity of the cogeneration system that will service your requirements.

We recommend that cogeneration systems only run during the peak and shoulder periods for maximum economic returns. An additional advantage of undertaking a range of efficiency measures will be that your cogeneration system could produce excess energy allowing your business to sell that power into the grid at peak or shoulder rates.

Cogeneration will feature prominently in Australia's and the worlds carbon emission reduction strategies due to its ability for uncomplicated installation and very generous return on investment.