Preliminary Feasibility Study

CHP (Combined Heat & Power)

 Site Summary

Building Name Client

Address

Postcode

Following on from the site visit carried out by our team to identify the potential for a Combined Heat and
Power installation we have formulated a preliminary feasibility study. This report showcases the
proposed CHP system solution for the dairy and details the advantages of a CHP installation.
Due to the dairy plant ampliation and production increase, the electric and heat installed capacity needs
to be increased to meet the new energy demands.
The biggest part of the energy used into the dairy plant is used in the pasteurisation process, using a
considerable amount of heat and cooling throughout the process.
CHP reveals a good opportunity to mitigate the production costs, supplying electric energy and heat
during the process with an approximate efficiency of 85%.
During dairy plant operation, a constant heat demand is required in the pasteurisation process.
The pasteurisation process requires a constant hot water flow in the region of 90˚C to heat the milk up to
76˚C and 82˚C in the milk and cream plants respectively.
The installation of a CHP unit would fully meet these heating requirements during plant operation.
Providing up to 410 kW on the electric side, a CHP plant can supply up to 486 kW of heat, supplying hot
water at 90˚C through a buffer hot water tank in order to meet the hot water pikes demand.
A simple system of thermostatic mixing valves and controls can be used to achieve the required
temperature in the plants, e.g. 76˚C on milk plant.
The proposed CHP and hot water system schematic can be seen below:

Heat Demand of Pasteurisation Process

Supply Temperature Return Hot Water Flow

Heating (kW)
(˚C) Temperature (˚C) (kg/s)

Milk Plant 76 69 8.1 238

Cream Plant
82 74 0.41 13.6
1
Cream Plant
82 79 0.27 3.4
2
As stated previously an electricity installed capacity increase is needed due to the plant ampliation, a CHP
plant would completely meet the electric needs and provide heat to the pasteurisation process.
The tables below shows the CHP electric and heat performance data:

CHP Electric Performance Data

Electrical Output Power Factor (cos Apparent Power
Voltage (V)
(kW) ϕ) (kVa)
Full load
410 400 0.95 390
(100%
Expected
325 400 0.95 309
Load (80%)

CHP Heat Performance Data

Supply temperature Return Temperature Hot Water Flow (kg/ Heat Generation Fuel Consumption
(˚C) (˚C) S) (kW) (kWh)
Full load
90 70 5.8 486 1,004
(100%
Expected
90 70 5.0 419 828
Load (80%)

The new plant will require at least 350 kVA to attend the expected electric demands. With an average
power factor of 0.95 the CHP plant can supply up to 390kVA and 410kW when operating at full load.
In the pasteurisation process, a constant heat demand of 255kW is needed, the proposed CHP unit can
supply 486kW at full load and 419kW on the expected operating profile.
Thus the CHP unit can completely meet with the electric and heat demands for the new plant.
The below table and graph shows the expected energy cost for both considered solutions:

Substation & Steam Boilers CHP

Consumption Consumption
Cost (£) Cost (£)
(kWh) (kWh)
Electricity 1,220,044 £105,820 244,009 £21,164
Kerosene 3,333,920 £156,744 - -
Natural Gas - - 3,090,096 £123,604
Total 4,553,964 £262,564 3,334,105 £144,768

CHP vs Grid & Kerosene

£25,000

£20,000

£15,000

£10,000

£5,000

£-

JUN-17

SEP-17
APR-17

DEC-17
MAR-17
FEB-17

AUG-17

OCT-17
JAN-17

NOV-17
JUL-17
MAY-17

Grid & Kerosene

CHP

20% of electricity consumption from the grid has been considered alongside the CHP solution. This is for
times of non-production and small electric applications.
In order to provide a good understanding of the long-term benefits of a CHP installation, energy costs
over a 10 year period can be seen in the tables and graph below:
Electrical &
CHP
Steam boiler
2018 £262,564 £144,768
2019 £525,128 £289,536
2020 £787,692 £434,303
2021 £1,050,256 £579,071
2022 £1,312,820 £723,839
2023 £1,575,383 £868,607
2024 £1,837,947 £1,013,375
2025 £2,100,511 £1,158,143
2026 £2,363,075 £1,302,910
2027 £2,625,639 £1,447,678
2028 £2,888,203 £1,592,446

Ten Years Running Cost Analyse

£3,500,000

£3,000,000

£2,500,000

£2,000,000

£1,500,000

£1,000,000

£500,000

£00
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Electrical & Steam boiler CHP

Electrical &
CHP (£) Saving (£)
Steam boiler (£)
Total £2,888,203 £1,592,446 £1,295,757

With the CHP installation, the dairy plant could save up to £1,295,757 compared with a substation and
steam boiler over a 10 year period.
Note: The electric, kerosene and gas costs, were assumed as constant during the 10 years period. With the expected market trends, the costs
The below tables show the expected project costs for both scenarios currently in study.

Substation & Kerosene Steam Boilers

Substation £ 130,000

Kerosene Steam Boilers £ 26,000

Total £ 156,000

CHP

CHP Cost £ 360,000

Heat Distribution System £ 50,000
Gas Network £ 23,000

Total £ 433,000

The cost for a substation and kerosene steam boilers are indicative costs provided during the site visit.
Extra costs such as electrical facilities or heating distribution system may be added on top of these prices.
The CHP costs include the unit, external charge air cooler, controls, project liaison, and commissioning.
The heat distribution system is an indicative price, and this needs an additional feasibility study with all
site plants and measures for the new plant.
The price includes:
 Pipe Work and valves
 Buffer vessel
 Heat meter
 Electric Facilities
The below table shows the expected different energy costs between grid electricity & kerosene and CHP
cost:

Substation & Steam CHP

Saving (£) Saving (%) Project Cost (£) Payback (years)
Boiler energy cost (£) energy Cost (£)
£ 262,564 £ 144,768 £ 117,796 45% £ 433,49600 3.7

The CHP installation could provide savings of 45% against the substation and steam boilers. Also there is
the possibility to move the CHP unit if required in the future.
The CHP plant option has an estimated payback of under 4 years, and going forwards after the point of
payback, the dairy plant could save £117,796 annually.
All energy consumption figures and costs presented in this report are based on assumptions made with the available
information.
The CHP equipment and all heat distribution system costs are based on available information and has been estimated
using guideline prices used for engineering project cost analyses.
In order to produce an accurate price, a site survey and a feasibility study will need to take place.
A site survey and feasibility study will allow understanding of where the CHP plant room will be installed, in order to
estimate all heating pipework, control equipment, electric facilities, installation timeline and any other equipment
needed to meet the dairy heat and electric requirements.
Also an option to use the excess heat output in the CHP, to produce chilled water using an absorption chiller could be
considered as part of the feasibility study, converting the CHP into a trigeneration system.
Other alternatives, such as updating the current electric meter up to the maximum of 300 kVA, and installing a smaller
CHP unit could also be considered.
Consideration can also be given to a regeneration method in the pasteurisation process to reduce the heating and
cooling needs on the process.