The emissions of greenhouse gases need to decrease rapidly over the coming decades. Sweden has set the target to achieve net zero emissions by 2045. The industrial sector plays a crucial role in that conversion by reducing its energy needs and to convert from fossil fuels to renewables.
This conversion will require a more robust and reliable energy system were todays centralized system has been supplemented by small decentralized production facilities. To produce heat and power closer to the consumers means less transmission losses. Small scale combined heat and power (CHP) production based on biofuels or excess heat could be a solution to reduce greenhouse gas emissions.
The purpose of this paper is to evaluate the possibility for a mid-size Swedish industrial company to produce its own base load of heat and power with a conventional Rankine cycle. Also to evaluate the production costs depending on the size of the plant.
The work has consisted of data collection from different manufacturers of steam turbines and steam boilers, a calculation model has been made in Excel to compare different plant sizes and in different operating scenarios. Economical evaluations has been made with the Pay-off method and the net present value method (NPV).
The result shows that production costs for facilities with steam turbines in the size range of 10 – 100 kWel is well below the price of bought electricity and district heating. The economical evaluation generally shows on short pay-off times and positive NPV.
A comparison of the CHP plants shows that the electric efficiency is low and the total efficiency sometimes can be lower than for the existing heat supplier of the company. This means that a switch to local CHP will have a negative impact from a system perspective, because of the increased use of primary energy resources.
There is many parameters that affects the performance of a CHP plant but the most crucial is the operation time. To have a continuous operation over a major part of the year has a great impact on the economic performance. The low electric efficiency means that the major part of the savings gets on the heat production. This means that the CHP plant should be dimensioned to replace primarily the heat requirement.