Combined Heat and Power Project, Shelton, CT

O’Brien & Gere was retained to conduct a feasibility study, preliminary design and financial analysis for implementing combined heat and power (CHP) application. Project was comprised of six 250 kW microturbines, combined with an external heat recovery system designed to transfer heat to a process fluid used in production. at a manufacturing facility in Shelton CT. The proposed system, when implemented, would achieve total system efficiency of 63%.

The scope of work consisted of:

• Supplemental engineering to confirm the limits of work for the project and to establish the standard of quality for the Turn-Key proposal.
• Prepare applications for the Connecticut Department of Public Utilities, United Illuminating interconnect and Department of Environmental Protection operating permit for a new air emissions source.
• Develop engineering documentation to support the applications.
• Develop project life cycle analysis (10 years) including sensitivity analysis.

This study, secured a $ 750,000 Grant from the Connecticut Department of Public Utilities and identified the following incentives for this project:

• Federal energy tax credit $ 307,200
• Depreciation tax credits totaling $ 870,000.
• Gas transmission rebate totaling $ 385,352.

These incentives combined with electrical and thermal savings offset the capital and operational costs to provide an internal rate of return of 36% and generate cumulative savings of over $ 9,000,000 after ten years of operation.