A Comparative Study of the Economic Feasibility of Employing CHP Systems in Different Industrial Manufacturing Applications
Chad A. Wheeley, Pedro J. Mago, Rogelio Luck
DOI: 10.4236/epe.2011.35079   PDF    HTML     4,757 Downloads   8,412 Views   Citations


Extensive research work including multiple methodologies and numerous simulations have been completed in order to determine the economic effectiveness of employing CHP at commercial and residential sites. In contrast to the above, very few attempts have been made to develop methodologies to study the feasibility of CHP systems at industrial manufacturing facilities. As a result, practical opportunities for CHP at industrial sites are often not realized or even investigated. It follows that there is a need in the CHP related literature for an analysis that is explicit and yet general enough to determine the economic viability and potential for success of CHP systems at industrial manufacturing facilities. Therefore, the purpose of this paper is to clearly outline a methodology to determine the economic effectiveness of installation and operation of a CHP system at industrial facilities that have a need for space or process heating in the form of steam. The effect on the CHP system economic performance of several parameters, such as the project payback, internal rate of return, net present value, etc., are considered in the proposed methodology. The applicability and generality of the methodology is illustrated by examples including four different manufacturing facilities. The effects of the variability of factors such as annual facility operational hours during which both process heat and electricity are needed, facility average hourly thermal load, cost of utility supplied electricity, and CHP fuel type and associated fuel cost, on the outcome of the economic analysis are also examined.

Share and Cite:

C. Wheeley, P. Mago and R. Luck, "A Comparative Study of the Economic Feasibility of Employing CHP Systems in Different Industrial Manufacturing Applications," Energy and Power Engineering, Vol. 3 No. 5, 2011, pp. 630-640. doi: 10.4236/epe.2011.35079.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] J. J. Cuttica and C.Haefke, “Combined Heat and Power (CHP): Is It Right for Your Facility?” 2009. http://www1.eere.energy.gov/industry/pdfs/webcast_2009-0514_chp_in_facilities.pdf
[2] R. Graves, B. K. Hodge and L. M. Chamra, “The Spark Spread as a Measure of Economic Viability for a Com- bined Heating and Power Application with Ideal Loading Conditions,” Proceedings of the ASME 2008 2nd Con- ference on Energy Sustainability, Jacksonville, 10-14 Au- gust 2008, Paper No. ES2008-54203, pp. 167-171.
[3] A. Smith, N. Fumo and P. Mago, “Spark Spread—A Scree- ning Parameter for Combined Heating and Power Sys- tems,” Applied Energy, Vol. 88, No. 2, 2011, pp. 1494- 1499. doi:10.1016/j.apenergy.2010.11.004
[4] M. Ellis and B.Gunes, “Status of Fuel Cell Systems for Combined Heat and Power Applications in Buildings,” ASHRA Transactions, Vol. 108, 2002, pp. 108-111.
[5] G. Zimmer, “Modeling and Simulation of Steam Turbine Processes: Individual Models for Individual Tasks,” Ma- thematical and Computer Modeling of Dynamical Systems, Vol. 14, No. 6, 2008, pp. 469-493. doi:10.1080/13873950802384001
[6] U.S. Department of Energy, “Steam System Assessment Tool (SSAT),” 2010. http://www1.eere.energy.gov/industry/bestpractices/software.html
[7] Resource Dynamics Corporation, “Combined Heat and Power Market Potential for Opportunity Fuels,” 2004. http://www1.eere.energy.gov/library/
[8] R. Zogg, K. Roth and J. Brodrick, “Using CHP Systems in Commercial Buildings,” ASHRAE Journal, Vol. 47, No. 9, 2005, pp. 33-36.
[9] F. A. Al-Sulaiman, F. Hamdullahpur and I. Dincer, “Trigeneration: A Comprehensive Review Based on Prime Movers,” International Journal of Energy Research, Vol. 35, No. 3, 2010, pp. 233-258. doi:10.1002/er.1687
[10] H. Ghaebi, M. Amidpour, S. Karimkashi and O. Rezayan, “Energy, Exergy and Thermoeconomic Analysis of a Combined Cooling, Heating and Power (CCHP) System with Gas Turbine Prime Mover,” International Journal of Energy Research, Vol. 35, No. 8, 2010, pp. 697-709. doi:10.1002/er.1721
[11] E. Cardona, A. Piacentino and F. Cardona, “Matching Economical, Energetic and Environmental Benefits: An Analysis for Hybrid CHCP-Heat Pump Systems,” Energy Conversion and Management, Vol. 47, No. 20, 2006, pp. 3530-3542. doi:10.1016/j.enconman.2006.02.027
[12] P. J. Mago, N. Fumo and L. M. Chamra, “Performance Analysis of CCHP and CHP Systems Operating Follow- ing the Thermal and Electric Load,” International Jour- nal of Energy Research, Vol. 33, No. 9, 2009, pp. 852- 864. doi:10.1002/er.1526
[13] P. J. Mago, A. Hueffed and L. M. Chamra, “A review on Energy, Economical, and Environmental Benefits of the Use of CHP Systems for Small Commercial Buildings for the North American Climate,” International Journal of Energy Research, Vol. 33, No. 14, 2009, pp. 1252-1265. doi:10.1002/er.1630
[14] A. A. Jalalzadeh-Azar, “A Comparison of Electrical- and Thermal-Load-Following CHP Systems,” ASHRAE Transac- tions, Vol. 110, 2004, pp. 85-94.
[15] A. K. Hueffed and P. J. Mago, “Influence of Prime Mover Size and Operational Strategy on the Performance of Com- bined Cooling, Heating, and Power Systems under Diffe- rent Cost Structures,” Journal of Power and Energy, Vol. 224, No. 5, 2010, pp. 591-605.
[16] H. Cho, S. Eksioglu, R. Luck and L. M. Chamra, “Opera- tion of Micro-CHP System Using an Optimal Energy Dispatch Algorithm,” Proceedings of the ASME 2008 2nd Conference on Energy Sustainability, Jacksonville, 10-14 August 2008, pp. 747-754.
[17] C. Wheeley and P. J. Mago, “A Methodology to Conduct a Combined Heating and Power System Assessment and Feasibility Study for Industrial Manufacturing Facilities,” ASME International Mechanical Engineering Congress and Exposition (IMECE2011), Denver, 11-17 November 2011, Paper No. IMECE2011-62299.
[18] U. S. Environmental Protection Agency Combined Heat and Power Partnership, “EPA Catalog of CHP Technolo- gies,” 2008. http://www.epa.gov/chp/basic/catalog.html

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.