Joe Leo, Ethanol Producer Magazine
FOR GENERATIONS: Ethanol plants are considering combined-heat-and-power projects to increase efficiency and revenue. But before any energy is generated on-site, a few factors should be addressed. STOCK PHOTO
Summary
With the recent explosion of plant expansion projects in the ethanol industry, many producers likely are considering construction of combined-heat-and-power (CHP) projects and other alternative forms of power generation to supplement the steam available at their plants. Interest is high in CHP projects in particular, as they provide the most direct benefits to ethanol producers. Current regulatory regimes, however, present several obstacles.
CHP facilities use natural gas to fire a turbine, which generates electricity. The byproduct of this process is heat, which can be used to create steam for an industrial facility, such as an ethanol plant. According to the U.S. Department of Energy, separately producing heat and power has an efficiency of about 45 percent, while CHP can operate at 80 percent or greater, offsetting fuel and utility emissions, while lowering the carbon intensity score and saving money. This renewable energy generation also can continue to support energy independence, which has been a hallmark of the ethanol industry since the turn of the century. But, as with all new technologies, inherent and long-standing advantages of the status quo must be combated to expand CHP implementation.
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