Included in this article was information regarding the benefits, whether or not CHP is a good fit, and how to get started working with an experienced CHP contractor. Below, we’ve summarized the article for our readers, but you can check out the full story here.

CHP Benefits

The benefits of CHP are wide ranging; advantages of combined heat and power include, utility savings, environmentally friendly(reduction in pollution), independent electricity output and as Marcia Karr professional engineer (P.E.) at Engineer in a Pocket LLP, puts it, having acquired substantial experience working on technology selection and proper sizing for CHP projects in multiple capacities over the years.

“For every $1 we put into energy, we normally get about 50 cents worth of work,” she said. “But, with CHP, that same dollar offers about 75 cents worth of work, thereby saving your customers about 25 percent on their utility costs.”

Is CHP A Good Fit & For Who?

“A CHP/HVAC contractor needs to understand the importance and process of design

build contracting versus typical bid work,” said (our very own) Nolan Hill, CEO of Highland West Energy in Idaho Falls, Idaho. “Every project that we have been involved with has had a significant amount of engineering work or input. This means both providing information and system solutions to P.E.[s] in the engineering process and also during in the installation.”

Hill goes onto to say that a working knowledge of CHP and engine operations can be learned over a period of time, but a contractor must be willing and able to step in and learn the basics of electrical. Additionally, Karr follows this by explaining, “ A good CHP system must operate 85 percent of the time or more, delivering electricity and useful thermal energy.”

“The best applications for CHP are those facilities with thermal loads all year,” Karr said. “Examples of the best commercial buildings include hotels, multifamily apartments, commercial kitchens, YMCA and health clubs with pools, and data centers with cooling loads all year. Having hot and/or chilled water loads all year allows for the maximum energy saving performance.”

TAP Programs

For experienced and interested contractors there are an assortment of opportunities, like the DOE Technical DOE Technical Assistance Partnership (TAP) program is proving to be an excellent resource.

According to Hill, this program, which is spread out across the country is a great resource for teaching the ins and outs of CHP development.

“You can also glean information from the CHP Association and EPA.gov/CHP,”

The Bottom Line

Though CHP isn’t for everyone quite yet. There are some things to consider, but the numerous benefits of CHP greatly outweigh the disadvantages of this energy technology system. It’s important to understand that when investing in CHP, it’s just that, an investment. Every investment takes a lot of money up front and continual upkeep to maintain productivity. However, even with the initial investment and overall upkeep Highland West Energy’s current clients are seeing 35 percent energy savings and over 50 percent reduction in CO2, NOx, and SOx emissions.

Proving that not only is CHP good for the environment, but it’s also good for your bottom line.

The post HWE Featured As CHP Expert! appeared first on Highland West Energy.

The Business Energy Investment Tax Credit, or ITC is a federal corporate tax credit that can be claimed by commercial, industrial, agricultural and utility companies. The ITC gives rebates of 30% for solar, fuel cell and wind energy systems. In February of 2018 the Bipartisan Budget Act of 2018 returned the ITC for some other forms of technology that used to receive credit. This means that there is now a 10% rebate for geothermal, microturbine and combined heat and power systems.

There are some limits to the ITC. First, the system must be built by the taxpayer or the taxpayer must be the first to use the equipment. Next, all the equipment must meet the quality and performance rules that are in effect when the equipment is bought. This means that rules can change so the taxpayer must educate themselves on current rules. Lastly, the system must be up and running in the year that the credit is first collected.

Energy Systems Covered by ITC

It is important to know which energy systems the investment tax credit covers. There are around sixteen categories including municipal solid waste, renewable fuels, and solar heat. All the valid systems can be gathered into six major groups. The Department of Energy’s website, arranges these groups as follows:

• Solar Technologies—These systems have equipment that uses solar energy to heat, cool or provide electricity. Examples are solar water and space heat, solar thermal electric, and solar thermal process heat. Some solar lighting also works for the ITC, but passive solar systems and solar pool-heating systems are not valid. The rebate amount for valid solar systems at this time is 30% but as of 12/31/20 it will drop to 26%. On 12/31/21 it will fall to 22%. Then on 12/31/22, and all future years it will be at 10%.
• Fuel Cells—For a place to be valid it must have fuel cells, “with a minimum capacity of 0.5 kilowatt (kW) that have an electricity-only generation efficiency of 30% or higher”. The rebate for fuel cells is like the rebate amount as solar systems. Right now, the credit is 30% of all costs with no maximum credit, but there is a cap of $1,500 per 0.5 kW of space. The 30% rebate will last until 12/31/20 when it will drop to 26%. Then it will drop down to 22% from 12/31/21 through 12/31/22. After that, it will no longer be available.
• Small Wind Turbines—All small wind turbines must meet “The American Wind Energy Association Small Wind Turbine Performance and Safety Standard” or the “International Electrotechnical Commission” standard and performance requirements. Also, small wind locations must have wind turbines up to 100 kW in size. Small wind turbines have the same rebate of 30% as fuel cells and the credit drops the same amount over the same time frame.
• Geothermal Systems—To get the ITC one of these places must have, “geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit”. The tax credit for these systems is set at 10% with no credit limit. But, unlike solar systems, fuel cells, and small wind turbines geothermal systems keep the same 10% credit with no listed end date.There is one exception to this, geothermal heat pumps end as of 12/31/22.
• Microturbines—Places which have microturbines with up to two megawatts (MW) of space are valid for ITC if they have an electricity-only generation effectiveness of 26% or higher. The tax credit of these systems is equal to 10% of costs with no limit. But there is a cap of $200 per kW of space. The 10% credit stays with no changes until 12/31/22 when it ends and is no longer valid.
• Combined Heat and Power (CHP)—Systems that have up to 50 MW capacities and that beat 60% energy productivity are usually present at valid CHP places. Depending on the size of the system and its limits the energy use requirement can change. For example, CHP systems that use biomass for at least 90% of its energy source do not have a productivity requirement. The tax credit for CHP is 10% of costs and there is no limit. The credit will remain at 10% until it is no longer valid as of 12/31/22. Depending on the size of the system the full 10% credit may not be due and instead a partial credit may be applied.

Benefits of the Investment Tax Credit on Combined Heat and Power Systems

In the months and years leading up to December of 2016 the investment tax credit had helped to support the growth of combined heat and power across the country. But, in December of 2016 the ITC for CHP ended which stopped the 10% credit that was given to companies who were using or installing CHP energy systems. So, when Congress passed the 2018 budget act which returned the ITC for CHP it was approved of by many in the energy field. Utility companies, developers and end-users started taking a closer look at how much the finances of CHP developments had improved. Especially since CHP projects can take advantage of the credit as long as they start construction by the end of 2021.

There are a lot of benefits of combined heat and power. CHP makes both electricity and heat from one source while using local fuel. This makes it two times as effective as older power generation methods CHP also lets companies work separate from the electrical grid. This means that they use less energy and can keep working even in bad weather where power may be lost on the grid. By restarting the 10% credit, companies can save money, increase their reliability and reduce their energy use all while improving our nation’s energy independence and economic success.

The investment tax credit for combined heat and power is not the only factor boosting the CHP market. The new tax law lowered the corporate tax rate to 21% and allows a 100% write-off of capital investments in the first year, both of which help increase after-tax internal rates of return (IRR) for CHP investments. On top of all these incentives, it’s also important to remember that CHP allows a company to become energy independent which will prevent possible power outages that can affect production. Since time is money, no company wants to lose revenue because of a power outage. When you take all these incentives and factor in the low and stable costs of natural gas and the steady increases in electrical rates, the positives of investing in CHP systems have never looked so good.

Photo by LEMUR on Unsplash

The post The Tax Benefits of Investing in Combined Heat and Power appeared first on Highland West Energy.

How The City of Missoula Took Waste Gas and Turned It Into Something More.

Quick Facts:

• – 2G Agenitor 206  Biogas CHP
• – Electric Output: 220 kW
• – Commissioned June 2018 
• – Hours of operation over 2,000
• – Fuel: Biogas and Natural gas
•  – Fully Containerized
•  – Factory Tested
•  – Plug and Play Ready
•  – CHP: Highland West Energy

In 2016 The City of Missoula placed an RFQ for a system to turn their wasted biogas from the wastewater treatment plant into something more usable. They wanted to be efficient in how they processed waste. in 2017 Highland West Energy was awarded the Combined Heat and Power (CHP) portion of the RFQ to effectively use the biogas to produce heat and electricity for the facility via the Yanmar Biogas Cogeneration Package (Biogas CP). In working with Morrison-Maerle Engineers out of Helen, MT, we were able to come up with an effective design and system for The City. This Co-generation system has been running since the end of June 2018, providing significant heat and electricity for their facility.

Photo Cred: Morrison-Maerle

The post The Sweet Smell of Renewable CHP Energy. appeared first on Highland West Energy.

Even though we are unable to see most air pollution with the naked eye, doesn’t mean it’s not there. So what exactly is air pollution? According the National Institute of Environmental Health Sciences, air pollution can be broken down into two categories, indoor and outdoor air pollution.

Examples of outdoor air pollution, include:

• Fine particles produced by the burning of fossil fuels (i.e. the coal and petroleum used in energy production)
• Noxious gases (sulfur dioxide, nitrogen oxides, carbon monoxide, chemical vapors, etc.)
• Ground-level ozone (a reactive form of oxygen and a primary component of urban smog)
• Tobacco Smoke

Examples of indoor air pollution, include:

• Gases (carbon monoxide, radon, etc.)
• Household products and chemicals
• Building materials (asbestos, formaldehyde, lead, etc.)
• Outdoor indoor allergens (cockroach and mouse dropping, etc.)
• Tobacco smoke
• Mold and pollen

This article discusses largely discusses outdoor air pollution and how it affects our health, our environment, and how combined heat and power (CHP) can reduce in power plant emissions.

What Causes Air Pollution?

“Most air pollution comes from energy use and production,” says John Walke, director of the Clean Air Project, part of the Climate and Clean Air program at NRDC, “burning fossil fuels releases gases and chemicals into the air.” While air pollution is a large contributing factor to climate change, it is also aggravated by the rising temperatures of climate change. “Air pollution in the form of carbon dioxide and methane raises the earth’s temperature,” Walke says. “Another type of air pollution is then worsened by that increased heat: Smog forms when the weather is warmer and there’s more ultraviolet radiation.” Additionally, longer pollen seasons, extreme weather, and increased flooding caused by climate change is also the central cause of higher levels of allergenic air pollutants like mold and pollen.

The Impacts of Air Pollution

Based off of a study by the World Health Organization (WHO), over 91% of the world’s population is living in areas that exceed WHO air quality guidelines. Even though the United States and other countries around the globe are actively working towards better and cleaner air quality, climate change is proving to be an obstacle that we have yet to overcome. However, air pollution, and all its types, has additional detrimental effects to not only our environment, but also to human health. Health conditions caused by air pollution can range from mild cases of allergies to death, as you’ll soon see.

Smog & Soot

Smog and soot both originate from the same place: “Both come from cars and trucks, factories, power plants, incinerators, engines—anything that combusts fossil fuels such as coal, gas, or natural gas,” Walke says.

Smog has been known to be an eye and throat irritant, in addition to causing damage to the lungs and triggering asthma attacks in people who suffer from allergies or asthma. These health conditions are heightened for senior citizens, children, and people who work outside.

Greenhouse Gases

Synonymous with climate change, greenhouse gases or mainly carbon dioxide and methane are the leading cause of the rising temperature of the planet. This in turn creates, rising sea levels, more heat related deaths, extreme weather, and increases the transmission of diseases such as Lyme disease. According to a 2014 EPA study, carbon dioxide was responsible for 81 percent of the country’s total greenhouse gas emissions, and methane made up 11 percent. “Carbon dioxide comes from combusting fossil fuels, and methane comes from natural and industrial sources, including the large amounts that are released during oil and gas drilling,” Walke says. “We emit far larger amounts of carbon dioxide, but methane is significantly more potent, so it’s also very destructive.”

Pollen & Mold

Due to the higher temperatures and extreme weather caused by climate change, more mold and allergens from plants are carried in the air, which can be dangerous to human health. Mold and pollen can create increased allergies and asthma attacks. Some mold is so noxious that it would be detrimental for anyone to breathe in. According to this article from the NRDC,

“Lab and field studies are showing that the more carbon dioxide pollen-producing plants—especially ragweed—are grown in, the bigger they grow and the more pollen they produce,” Knowlton says. “Climate change also extends the pollen production season, and some studies are beginning to suggest that ragweed pollen itself might be becoming a more potent allergen.”

What Can We Do To Reduce Air Pollution?

It doesn’t take a rocket scientist to see that much of the air pollution we face today is man-made. Still, most of the population is not ready to go without the modern conveniences of today, nor should we have to. There are both personal and larger scale options that we can all choose to take responsibility for in order to reduce our overall carbon footprint. Living more consciously, while still enjoying our lifestyle is one of the best gifts that we can give to future generations. Let’s explore how each one of us can help reduce air pollution along with, how combined heat and power can reduce offset air pollution.

How CHP Can Help

As you can see, power plants, engines and industrial sources are the leading cause of air pollution. Power plants that use natural gas are responsible for 40% of air pollution in the United States, that’s almost half of our air pollution! You may be thinking that the best course of action would be to eliminate energy sources fueled by fossil fuels all together, and switch to energy systems like wind and solar, however this would take years to implement- especially if you need energy to power your home, your computer, your cellphone, your business, etc. While wind and solar power are both viable resources for energy production, they are not feasible as stand alone operations. If we are to use such power systems as wind and solar, it needs to be in conjunction with a technology system that reduces air pollution, generates enough power for the world’s energy demands and offers an investment opportunity, this is what CHP can do.

With combined heat and power, up to 98% of the heat generated by power plants is captured, cleaned, and used in the project’s hot water system, absorption chillers, pools, snowmelt, or any number of applications. Essentially, with the use of a CHP system, at least half of the heat and other pollutants that are released into the atmosphere from power plants would be captured into thermal energy. Thus reducing air pollution, while increasing energy production. You can find more information about the benefits of CHP and how it can help save you money and help the environment, here. Alternatively, there are some simple changes you can make in your own personal life to reduce your carbon footprint.

What You Can Do Today

Even if you currently aren’t working on a project or own a business that could benefit from combined heat and power, there are still things that you can do in your personal life to reduce your carbon footprint. The Huffington Post shares seven ideas that you can implement today:

• Stop eating or eat less meat.
• Unplug your devices when you’re not using them.
• Drive less. If you can commute to work via bike or by walking, start doing this at least a couple times a week. This is both good for the environment and your waistline.
• Don’t buy “Fast Fashion”.
• Plant a garden.
• Eat local and organic.
• Line dry your clothes.

The actions and choice we make today, will ultimately affect the future.

Make the choice to live responsibly in both your personal life and with your business.

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