Increasing Heating Efficiency with Combined Heat and Power
The ATCO Combined Heat and Power (CHP) project focused on installing natural gas-powered CHP units in commercial and institutional buildings in Alberta to improve energy efficiency and reduce greenhouse gas (GHG) emissions. The project was funded through Round 6: Industrial Energy Efficiency in 2013 and deployed CHP units to reduce GHG emissions and improve energy efficiency in commercial and institutional buildings across Alberta.
The CHP units utilize natural gas to simultaneously produce electricity and capture waste heat; this technology is particularly attractive in Alberta due to its adaptability to facilities with year-round heating needs and its potential to utilize the province’s abundant natural gas resources.The CHP systems can achieve 75 to 85 per cent efficiency by capturing the heat generated during electricity production, which would otherwise be wasted, and using it to meet a facility’s heating needs, such as space or water heating. This contrasts with traditional energy systems that separately generate electricity and heat with 30 to 40 per cent efficiencies, which leads to higher energy losses. During the project, four successful CHP installations, varying from 168 kilowattsto 785 kilowatts, were installed for a total of 1,445 kilowatts total capacity, resulting in an estimated annual total of 3,600 tonnes in emissions reduction.
Determining Where CHP is Feasible
The evolution of ATCO’s CHP project highlighted numerous opportunities to capture lessons learned and adapt practices to improve future applications of the technology. Despite challenges related to capital costs, regulatory changes, and market conditions, the project successfully installed CHP units across four locations, including residential complexes, recreation centers, and educational institutions. Through these installations, the project found the technology’s feasibility depends on specific facility configurations, operating parameters and energy consumption profiles. Older facilities or those without central boiler systems may require costly retrofits to integrate the waste heat from CHP units. Additionally, the project found that selecting reliable equipment suppliers and partners with proven experience is essential for successful deployment. These factors are also important for a timely deployment, as equipment procurement, permitting and integration with existing systems require significant lead time.Extended warranty options and proper maintenance are also important to ensure long-term operational efficiency.
What’s next?
Since this projects completion in 2018, CHP technology continues to see steady adoption in Alberta, particularly in industries and institutions with high energy demands, such as manufacturing facilities, educational campuses, and recreation centers. Despite a slower uptake compared to other regions like Europe, CHP was installed in places like Mount Royal University and various recreation centers. ATCO continues to offer CHP, targeting businesses who wish to reduce their emissions and save money in the long run. However, the high upfront capital costs and low electricity prices continue to be challenges for widespread deployment. Incentive programs, financing options and warranties are critical in helping facilities overcome these financial barriers and support further growth.