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BC Bugwood Envirochem Services Inc. 4.3 Small-Scale CHP 4.3.1 Understanding CHP Combined Heat and Power (CHP) is a generic term that relates to any system producing both power and useful heat concurrently from the same fuel. This is a very efficient way of using fuel when making power. On the one hand, it is easier and more efficient to capture heat energy from fuels than electrical power. On the other hand, we require power to support our modern lifestyles even though power production from fuel sources is a relatively inefficient process. However, the energy not captured while producing power (the rejected energy) can often be used for its heat value. Consequently, taking the fuel that we would normally use for heat and using it first for electricity generation and then using the output of that process to supply our heat will maximize the available energy. CHP is used to obtain both electricity and heat from the same fuel. The concept of CHP has been known and discussed for decades. Originally it was pursued as co-generation; the use of fuel to meet two purposes in a coordinated system. In particular, co- generation was used industrially where process steam was employed. Steam would be produced at a higher pressure and temperature, passed through a turbine/generator to produce power and then supplied to the industrial process. Where process steam is required, as in pulp and paper mills, such co-generation is highly desirable. Upgrades to add power generation should be encouraged where co-generation has not yet been implemented. A typical industrial process using steam will be capable of supporting relatively large-scale power generation which must be used to displace internal power consumption or supplied to the public power grid. There is a fundamental “disconnect” between electricity consumption and heat consumption within general society. Traditionally, electricity has been produced in large centralized locations and distributed widely on a utility power grid. However, heat energy is typically generated at the point of use on a small scale, most often using fuels distributed from central facilities. The same fuels that are used for heat generation are often also used at centralized power stations. The most interesting observation is that electricity and heat are generally used on a comparable scale. Industrial users will consume both large amounts of power and large amounts of heat. Individual homes will consume small amounts of power and small amounts of heat. Although not exact, there is a relation between the quantities of power consumed and the quantities of heat consumed. Yet, even though small-scale users have a balance between their heat needs and their power needs, the traditional system treats power on a large-scale and heat on a small scale. Given the observation that power is consumed on a scale relative to heat consumption, it becomes clear that there are un-addressed opportunities for small-scale CHP systems. The need exists for systems from individual homes (2-3 kW power, 4-5 GJ heat) to small communities (80 – 100 kW power) to townships (1 – 10 MW power). District heat systems that distribute heat (e.g. through hot water pipes) act similar to power delivery in a defined local area. The power generation portion is termed “distributed generation” and is being recognized in some jurisdictions as beneficial for reducing power losses, stiffening the grid and adding independent investment dollars. 4.3.2 Application of CHP for Bugwood There is a particular advantage to using biomass as a fuel for CHP systems. Biomass is a renewable fuel that reduces dependency on crude oil and natural gas reserves. It can be a low cost energy source where it is a waste stream from another process (sawmills, etc.) or where it Page 38PDF Image | IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS
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