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How CHP will facilitate the energy transition

Combined heat and power (CHP) is a high-efficiency system that produces both electricity and thermal heat from a single fuel source. The waste heat from the production of electricity is captured and used to produce steam or hot water that can be used in industrial processes, or for heating or cooling.

What role does CHP play in energy transition?

Although coal and oil have been used as fuel for CHP plants, gas fuel in turbines or engines is preferred today because it produces significantly fewer greenhouse gas emissions and can deliver efficiencies up to 95 percent. Cleaner fuels, such as green hydrogen, syngas, biofuels and biomass, provide a zero-carbon or net-zero future for CHP plants.

 

Why is CHP relevant to industry and heat supply?

Combined heat and power (CHP) provides an energy-efficient and lower-carbon source of electricity and thermal heat. This is made possible because total plant efficiency can reach 95 percent in engine-based systems and 90 percent in turbine-based systems. Thermal heat from CHP plants is commonly used to power district heating systems, thereby significantly lowering the CO2 intensity of home heating. These efficiencies also are impactful in industrial settings, given that nearly two-thirds of the energy consumed by industry is used to generate process heat and cooling. CHP plants can deliver considerable efficiency and emission-reduction benefits, as well as cost savings.

CHP plants also provide resiliency and flexibility for all types of industrial facilities, as well as institutions such as hospitals and multi-family developments, and other users, including data centers and utilities. Engine-based CHP solutions are ideal for industrial customers with power-to-heat ratio higher than 0.8, while turbine-based solutions are preferred for industrial users with power-to-heat ratios lower than 0.8.

Learn more about CHP

The investors we are speaking with understand that CHP, with the use of clean zero-carbon fuels, can be an important element in the design of the energy systems of the future.

Dr. Tilman Tütken, Head of Sales Power Plants, Europe at MAN Energy Solutions

 


What challenges does CHP present?

The principal challenge for combined heat and power is the link between electricity and waste heat production. Any mismatch between electricity demand and process heat demand must be anticipated when designing the system to ensure an appropriate offtake option is available. This can be achieved by connecting the plant’s electricity and heat output to neighboring networks. For heat, this can be a city’s district heating system and, for electricity, to a local power grid. Another solution is to incorporate storage, such as a hot water storage tank for excess thermal output and battery electric storage systems for excess electricity.

Learn more about implementing CHP

95
%
fuel efficiency achieved in CHP plants
23
%
is the share to be contributed by CHP plants toward Europe’s 2030 CO2 reduction target
120
TWh
is the target annual energy generation of CHP systems in Germany by 2025

How does CHP generation add to energy efficiency?

The municipal energy supplier of Schwäbisch Hall, Germany has deployed two MAN Energy Solutions gas engines to replace older, less efficient engines at one of its CHP plants. Each engine has a capacity of 7.5 MW of electricity and 7.5 MW of heating capacity – more than double the capacity of the engines they replaced.

The Stuttgart-Gaisburg CHP power plant operated by Energie Baden-Württemberg (EnBW) includes three MAN Energy Solutions gas engines that supply a combined 31.2 MW of electricity and up to 30 MW of district heating, providing flexibility to respond to market signals.

Learn more about CHP in practice