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Q 1 CHP A process plant has an annual electricity bill of 6 9 , 6 4 5 and an annual gas bill of 7
Q
CHP
A process plant has an annual electricity bill of and an annual gas bill of
The owners of the plant are considering installing a CHP combined heat and power unit
comprising a sixcylinder Mercedes gas engine with waste heat recovery WHR to meet the
heat and electricity demands.
Data:
Existing gas boiler efficiency LHV
Nominal electric output of CHP unit
Net electric LHV heat rate of CHP unit
Usable heat output from unit
Electricity tariff
Natural gas tariff
Installed cost of CHP unit
O&M operating and maintenance cost of CHP unit
Discount rate per year
The economic life of the CHP unit years
Annual escalation rate for gas, electricity and O&M per year
Draw a labelled 'heat balance diagram' for the CHP unit. Prepare an annual 'balance of energy
demand' diagram comparing the existing and proposed energy supply options and hence
determine the annual capacity factor for the CHP unit. Given the above technoeconomic data
assess the engineering economic viability of the project and based on your analysis, make a
recommendation.
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