CLP Energy is a division of The CLP Group, LLC, which has been providing equipment financing and project development services to customers on an international level for over fourteen years.  As cogeneration opportunities have increased, company resources were allocated to CLP Energy to support this business segment.  Most recent activities include various roof top mounted NG units on commercial buildings in coastal cities in California.

•    Site survey and system design
•    Existing relationships with engine genset manufacturer/distributors
•    Existing relationships with industry finance sources
•    Installation and startup
•    Introduction to maintenance providers

Cogeneration (Combined Heat and Power) is the simultaneous production of power (electricity) and useful thermal energy (heat) from a single power source.  The typical cogeneration system includes an engine which converts fuel (natural gas) into mechanical energy, a generator which converts the mechanical energy into electrical energy, a heat recovery system which converts the waste heat into therms and various system control devices.  In this way, cogeneration significantly reduces the sites reliance on the public utility grid, reduces the total cost of utility and reduces harmful emissions into the environment.
Advantages:

•    Cogeneration is very reliable.  Electricity can be produced twenty-four hours per day – not just when the sun shines or the wind blows

•    Cogeneration is a hedge against local utility Brown-outs.  Local utilities have already warned customers about summer power outages due to grid congestion

•    Footprint.  A one megawatt solar array requires approximately eight acres of land while a one megawatt cogeneration system and heat exchanger can easily be housed in a thirty foot square area.

•    Environmental benefits.  Cogeneration systems emit 60% less Co2 into the air per kilowatt hour of electricity produced than traditional coal fired (public utility) plants 

•    Reduced cost.  The cost per kilowatt hour of electricity produced (natural gas and maintenance) is approximately 50% less than the prevailing public utility rates   

•    Federal and state incentives.  Cogeneration qualifies for a 10% Federal Investment Tax Credit (ITC) and the system can be depreciated 100% (after applying the ITC) against taxable income in the year placed in service.  State incentives, including SGIP are also under consideration

Natural gas (NG) is the cleanest, safest and most useful of energy sources today.  NG in its purest form is essentially Methane (CH4) and has useful bi-products such as Propane and Butane that can be further refined and sold separately.  While coal is a major fuel for electric power, NG is the fastest growing fuel.  More than 90% of the power plants to be built in the next twenty years will likely be fueled by NG.  NG is also likely to be the primary fuel for distributed power generators – mini power plants that would be sited close to where the electricity is needed.

Advantages:

•    Lower harmful emissions.  A coal fired power plant emits two pounds (2.0 lbs) of CO2 into the air per kilowatt of electricity produced while a NG power plant emits only eight-tenths (.8lbs) of CO2 per kilowatt hour of electricity produced

•    More efficient.  The Heat Rate of a NG fired power plant is more efficient than a coal fired power plant (8,000 verses 10,000).  Therefore, when the delta in generated cost per kilowatt hour of electricity between coal fired power plants and NG fired power plants is less than $1.00, a NG fired plants becomes a more compelling alternative.  The cost to generate a kilowatt hour of electricity using coal verses NG is approximately $3.25 and $4.00, respectively. 

•    Low commodity price.  NG is currently trading at approximately $4.00 per MBTU’s.  Users can purchase options to lock in the commodity price at favorable levels.

•    Production, storage and distribution.  Innovations in technology have decreased the cost of NG production and increased drilling efficiency.  NG storage is no longer regulated by the federal government and therefore storage facilities can be built for commercial use.  Over the past five years, over one thousand miles of new Intrastate and interstate pipelines have been built across the country to support the growth in NG usage.

•    Availability.  The Department of Energy recently released information that shows the United States has over a one hundred year supply of NG.  This information was buoyed by the discovery of two large NG wells in Pennsylvania and in North Dakota.