PS&S was asked to assess the return-on-investment associated with implementing a cogeneration plant for a pharmaceutical facility in New Jersey. There are multiple benefits to implementing cogeneration by generating electric power on-site while utilizing the thermal energy by-product of the generation process. Adding a cogeneration system can increase a site’s energy efficiency, reduce overall utility costs and reduce overall greenhouse gas emissions.
The feasibility review for a potential cogeneration project begins with a detailed understanding of site electrical and thermal loads and sizing potential equipment. The feasibility analysis also includes understanding of economic factors, incentives and credits and maintenance cost impact. A life-cycle analysis including estimates of costs over the equipment’s expected life is often appropriate for a cogeneration study.
THE PS&S SOLUTION
The first part of the study involved sizing of the cogeneration plant based on site electric and steam demand. Economic calculations were then carried out for options to calculate the payback period based on average utility costs for on-site production versus grid purchase.
The second part of the study involved detailed evaluation for the most favorable turbine configuration. Calculations were based on real-time hourly utility data and a model was constructed to evaluate hour-by-hour savings associated with the operation of the cogeneration plant. The model also considered plant options and available incentives. The model was delivered in a user-friendly format and provided the Client the flexibility of evaluating the impact of various options.