Maximizing Efficiency and Sustainability: Why It's Time to Upgrade Your Energy Systems with CHP and EaaS

Power generators are critical to the reliable operation of numerous facilities, providing essential backup power, primary energy, or thermal energy to ensure continuous operations. Like all machinery, however, generators have a limited field life and eventually need to be replaced or upgraded. Whether due to the end of their useful life or even if they still have remaining field life, many facility owners are faced with the decision to modernize their systems. Over time, components wear out, efficiency decreases, and maintenance costs increase. When generators approach the end of their life cycle, owners often have two options: replace the aging equipment with a similar model or explore more advanced solutions that offer enhanced benefits.

Although replacing existing generators with similar models may seem like a straightforward solution, transitioning to Combined Heat and Power (CHP) offers long-term advantages that go beyond simply replacing like-for-like equipment. CHP provides superior energy efficiency, cost savings, and environmental benefits, making it an ideal option not only when a generator reaches the end of its life but also when its remaining useful life could be better utilized for a more sustainable and cost-effective solution.

CHP systems are particularly beneficial across various sectors, including hospitals, where uninterrupted power and thermal energy are critical; higher education institutions, which need reliable, cost-efficient energy for campus operations; industrial facilities that rely on robust power and heat for production; refineries and LNG terminals, where high energy demands must be met with efficiency and minimal environmental impact; and urban downtown cores, which require dependable and scalable energy to support infrastructure, commercial buildings, and public services.

Other examples include data centers, which demand constant and reliable energy to maintain critical IT infrastructure; hotel and resort complexes, where operational efficiency directly impacts the bottom line; large-scale residential developments, which can benefit from shared energy resources; and government facilities, which often require resilient energy systems to ensure continuity during emergencies.

By adopting CHP, these sectors can modernize their energy systems, reduce operating costs, increase reliability, and meet stringent sustainability goals while creating long-term value. Generators remain a cornerstone of energy systems but integrating them with innovative technologies like CHP ensures they remain effective, efficient, and future-ready.

The field life of generators varies by type:

• Diesel Generators: 20-30 years or 10,000-30,000 operating hours
• Natural Gas Generators: 20-25 years or 10,000-20,000 operating hours
• Gas Turbine Generators: 20-30 years or 25,000-50,000 operating hours
• Steam Turbine Generators: 30-50 years or more, depending on maintenance and operation
• Biomass Generators: 15-25 years
• Microturbines: 10-15 years or 40,000-80,000 operating hours
• Fuel Cells: 5-15 years or 20,000-40,000 operating hours

Even if existing generators still have field life remaining, converting them to CHP offers significant advantages. While these generators may have the potential for a few more years of operation, the efficiency improvements provided by CHP can result in long-term cost savings, energy resilience, and environmental benefits that outweigh the continuation of their conventional use.

What is CHP

CHP is an advanced technology that simultaneously generates electricity and captures waste heat produced during the electricity generation process for use in heating, cooling, or industrial processes. By utilizing both electricity and thermal energy from the same fuel source, CHP systems can achieve overall efficiencies of 80% or more, compared to traditional systems, which typically have efficiencies of 30-50%. This dual-use of fuel maximizes energy production and reduces overall fuel consumption.

Converting to CHP allows for the simultaneous production of electricity and heat, which improves system efficiency significantly. The captured heat can be used for various purposes, such as space heating, water heating, or even industrial processes that require thermal energy. This increase in overall system efficiency results in reduced fuel consumption and lower utility bills, even if the generator is not at the end of its life.

Moreover, existing generators, including natural gas, diesel, and biomass units, can often be retrofitted for CHP applications without the need for complete replacement. This allows businesses to leverage their existing infrastructure while upgrading to a more energy-efficient system. This can also extend the useful life of the generator by optimizing its performance.

Who Knew? Heat Can Be Turned into Cool with CHP!

An often-overlooked benefit of CHP, although counterintuitive, is its ability to convert thermal energy (heat) into cooling which enhances the versatility and efficiency of the system. This is typically achieved through a combined cooling, heat, and power (CCHP) system, also known as a trigeneration system.

In a trigeneration system, an absorption chiller plays a key role in converting waste heat into cooling. This process works through a heat-driven refrigeration cycle rather than the conventional electric-powered compressor-based system found in most air conditioning units. The absorption chiller uses a refrigerant (often water or lithium bromide) and a heat source, such as the waste heat produced by the generator, to drive the cooling process.

Here’s how the absorption chiller works:

1. Heat Absorption: Waste heat, usually in the form of steam or hot water, is absorbed by a generator within the chiller. This heat energy causes a refrigerant to vaporize, separating it from a solution (typically lithium bromide and water).
2. Vapor Compression: The vaporized refrigerant is then passed through a condenser, where it is cooled and condensed back into a liquid form. In this stage, the refrigerant releases heat to the surrounding environment.
3. Evaporation and Cooling: The liquid refrigerant is then expanded through an evaporator, where it absorbs heat from the environment (such as a building or industrial space). As the refrigerant evaporates, it cools the air or fluids around it, providing cooling.
4. Regeneration: The refrigerant vapor is then passed through a generator where the cycle begins again. The heat from the generator is continually used to drive the absorption cycle.

Unlike traditional mechanical chillers, which rely on electricity to power compressors, absorption chillers use thermal energy (often from waste heat) to generate cooling. This means that CHP systems can simultaneously generate power, provide heating, and produce cooling all from the same energy source, making them highly efficient and versatile.

This ability to use waste heat for cooling, though seemingly counterintuitive, allows facilities to optimize their energy usage by making the most of the thermal energy that would otherwise be wasted. The system not only provides heating and electricity but also significantly reduces the need for additional electricity-driven cooling, which can be a substantial energy cost for large facilities like hospitals, data centers, and industrial plants.

Advantages of CHP Systems:

1. Lower OPEX Costs: CHP systems significantly reduce operational expenses by improving energy efficiency and reducing reliance on external power sources. The waste heat recovery and simultaneous generation of power and thermal energy reduce fuel consumption and lower utility bills.
2. Higher Efficiency: With an overall efficiency rate of up to 80% or more, CHP systems deliver substantially higher performance than traditional separate heat and power generation systems, which typically have efficiencies of 30-50%. The more energy that can be recovered and reused, the lower the overall energy costs.
3. Fast Recovery of CAPEX: While the initial investment in a CHP system can be higher, the savings in fuel costs, reduced maintenance, and lower energy bills lead to a faster return on investment (ROI). Many CHP systems can pay back the capital expenditure within 3-5 years due to these operational savings.
4. Demand Reduction Minimizing Grid Dependency: By generating both electricity and heat on-site, CHP systems reduce the demand on the electrical grid, providing energy independence and enhancing resilience. This is especially important in areas prone to power outages or for facilities with high energy reliability needs.
5. Reduction of Power Consumption: With CHP, a facility can operate with a smaller amount of purchased electricity, effectively lowering its overall power consumption. This can help mitigate the impact of energy price fluctuations and reduce the environmental footprint.
6. Environmental Benefits and Achieving Sustainability Goals: CHP systems reduce greenhouse gas emissions by improving energy efficiency and reducing the need for fossil fuels. The use of waste heat lowers the carbon footprint and contributes to sustainability goals, helping organizations meet regulatory requirements and corporate responsibility targets.
7. Enhanced Reliability: On-site power generation means that facilities using CHP systems can benefit from a more reliable energy source. This is crucial for mission-critical operations such as hospitals, manufacturing plants, and data centers, where uninterrupted power is necessary for safety and productivity.

Even if a generator has remaining field life, the transition to CHP should be considered for its economic, environmental, and operational benefits. It’s an investment that not only improves the efficiency of existing assets but also future-proofs operations by aligning with sustainability and resilience goals.

Cordia Energy: Your CHP Partner

At Cordia Energy, we specialize in helping owners of existing power generation facilities modernize, monetize, upgrade, or convert their equipment to more efficient, sustainable solutions—whether their generators have remaining field life or require new equipment, upgrades, or expansion. Our expertise lies in providing comprehensive energy solutions without any upfront capital investment, ensuring that businesses can transition to advanced systems while avoiding the large initial costs typically associated with these upgrades.

Energy-as-a-Service (EaaS) is a key mechanism Cordia utilizes to achieve this. EaaS allows businesses to outsource the management and financing of their energy infrastructure, enabling them to benefit from state-of-the-art technologies like Combined Heat and Power (CHP), microgrids, and district energy systems without the burden of any capital expenditures. Clients pay a predictable monthly fee for the energy services provided, instead of purchasing and owning the equipment. This eliminates the large, one-time capital outlay, making it easier for businesses to implement energy-efficient upgrades and improve their overall energy systems.

Cordia has extensive experience in delivering full-cycle energy solutions, from design to construction, to finance, and then to operation and maintenance. We handle every phase of the project, ensuring that our clients receive the most effective and efficient energy solutions tailored to their specific needs. Our deep expertise in managing the entire lifecycle of energy projects enables us to deliver seamless, reliable, and cost-effective systems that align with clients’ sustainability goals and operational requirements.

Monetization of Energy Systems Cordia also helps clients monetize their existing energy infrastructure by converting aging or underperforming power generation facilities into more profitable assets. By upgrading or converting existing systems to CHP or other energy-efficient technologies, businesses can generate additional revenue streams through energy sales or savings. For example, generating both power and thermal energy through CHP systems can enable facilities to sell excess energy back to the grid or to neighboring businesses, creating new opportunities for profit. This can significantly increase the return on investment (ROI) from their energy assets, while simultaneously improving operational efficiency.

Advantages of Energy-as-a-Service (EaaS) The EaaS model offers several significant benefits to businesses, enabling them to modernize their energy systems without the burden of large capital expenditures:

1. No Upfront Capital Expenditure: Businesses can avoid tying up significant capital in purchasing, installing, or maintaining energy systems. Instead, they pay a predictable monthly fee for the energy services provided. This allows businesses to preserve capital for other investments and operational needs.
2. Access to Advanced Technologies: EaaS makes it possible for businesses to implement the latest technologies, such as CHP, microgrids, and district energy systems, which may otherwise be out of financial reach. These technologies provide improved performance and energy efficiency, resulting in reduced energy consumption and lower costs.
3. Reduced Operational and Maintenance Costs: Cordia manages the operation and maintenance of energy systems under EaaS contracts, reducing the need for businesses to hire additional staff or invest in expensive repairs. This outsourcing of energy management ensures that systems operate optimally without ongoing internal investment.
4. Faster Return on Investment (ROI): With EaaS, businesses experience a faster ROI due to reduced energy costs, streamlined operations, and predictable service fees. This allows businesses to reinvest savings into other areas of their operations.
5. Focus on Core Business Operations: By partnering with Cordia under EaaS, businesses can offload energy management responsibilities and focus on their core business operations without the complexities of energy system design, installation, or maintenance.
6. Environmental and Sustainability Benefits: EaaS solutions, such as CHP, help businesses meet their sustainability goals by reducing carbon footprints and incorporating energy-efficient technologies. This not only supports regulatory compliance but also contributes to global environmental sustainability efforts.
7. Energy Resilience and Independence: By implementing CHP or microgrids, businesses can reduce dependence on the grid and enhance energy security, ensuring that they have a reliable energy source even during grid disruptions. This is particularly important for critical industries like hospitals, data centers, and industrial applications.
8. Seamless Integration of Energy Systems: Cordia’s EaaS agreements are designed to meet the specific needs of each business. Whether it involves upgrading existing equipment, converting to CHP, or integrating a microgrid, Cordia ensures that the energy solution is tailored to the client's operational needs and maximizes their energy potential.

Cordia brings extensive expertise in managing the entire lifecycle of energy projects, from initial design and construction to financing, operation, and maintenance. Our team collaborates closely with clients to assess their energy needs, create tailored systems, oversee the construction process, secure financing, and ensure optimal performance through ongoing maintenance. With a proven track record of delivering turnkey energy solutions, Cordia has successfully served a wide range of industries, including hospitals, higher education institutions, urban infrastructures, data centers, industrial facilities, refineries, and LNG terminals.

As a leader in district energy, Cordia excels in delivering integrated, cost-effective, and sustainable solutions that address today’s business needs while preparing for future energy challenges. By leveraging advanced district energy systems and CHP technologies, Cordia helps organizations reduce energy consumption, lower operating costs, enhance reliability, and meet sustainability targets. Whether it involves modernizing aging equipment, expanding energy infrastructure, or transitioning to more efficient systems, Cordia offers the expertise and financing solutions necessary to achieve these goals.

Through Energy-as-a-Service (EaaS), Cordia simplifies the adoption of advanced energy technologies, enabling businesses to lower energy expenses, boost system reliability, and meet long-term sustainability objectives. Our tailored and flexible solutions allow businesses to upgrade their energy systems cost-effectively, eliminating the need for significant upfront capital investments while driving operational and environmental improvements.

Conclusion What are you waiting for? If you're ready to upgrade, replace, or convert your existing infrastructure, now is the time to act. Modernize your energy systems to enhance efficiency, sustainability, and cost-effectiveness. Contact Richard R. Riopel at [email protected] to further discuss how Cordia can help you transform your energy systems and achieve your goals—without any upfront capital investment.