Adkins Energy LLC - 5.0 MW CHP Application - Case Study
Quick Facts
LOCATION: Lena, Illinois
MARKET SECTOR: Ethanol Plant
PRIME MOVER:
(1) Solar Gas Turbine
FUEL: Natural Gas
GENERATING CAPACITY: 5.0 MW
HEAT RECOVERY EQUIPMENT:
(1) Victory Heat Recovery Steam Generator with thermal capacity of 25,700 lbs/hr at 125 PSI
HEAT RECOVERY APPLICATION: Building Heat, Process Heat
IMPLEMENTATION COST: $3,000,000
TOTAL ENERGY AND OPERATION SAVINGS: $903,000/yr in energy costs
Simple Payback: 3.3 yrs
SYSTEM Online: August 2002
Project Overview
In August 2002, a 5.0 MW Combined Heat and Power system was installed at Adkins Energy LLC plant to provide electricity and steam to the facility. The CHP system offered energy independence and security to the facility. The CHP system consists of a Solar combustion turbine fueled by natural gas with a maximum steam generating capacity of 25,700 lbs/hr when duct-fired. Today the CHP system provides $903,000 in annual energy savings.
Reasons for CHP
Energy Independence
During the conception of the ethanol plant project, feed mills in the surrounding area were paying as much as $0.17 per kWh (electricity and demand charge combined). Faced with these high electric rates, Adkins Energy evaluated the installation of an on-site electric generating system, and concluded that a CHP system would provide the perfect fit for its energy needs.
Energy Savings
Based on its current natural gas cost of $5.50 per million Btu, Adkins Energy is able to save approximately $903,000 per year. Adkins Energy estimates its break-even point for total energy savings from the CHP system to be at a natural gas price of $8.10 per million Btu. As the system has already paid for itself since being installed in 2002, the facility is able to take advantage of fluctuations in fuel prices and operate the system for approximately 46% of the year to save money.
Energy Reliability
In addition to high electricity prices in northwestern Illinois, the facility also experiences grid outages. Although the CHP system can supply up to approximately 95% of the plant’s electrical power needs, it is parallel connected to the grid to allow the plant to draw electrical power from the grid when needed. When blackouts or grid outages occur, the CHP system is designed to automatically disconnect from the grid and continue to supply the plant with the electricity needed to continue vital operations. This avoids any plant shut down during utility grid outages.
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