Alternatives to Industrial Cogeneration: A Pinch Technology Perspective

Abstract

Pinch Technology studies across a broad spectrum of processes confirm that existing plants typically consume 15-40% more thermal energy than they should. Consequently, many cogeneration schemes have been based on thermal requirements and characteristics that are inconsistent with a properly designed and integrated process. Pinch Technology studies also frequently identify projects, based on conventional technology, that require lower capital outlays, achieve more rapid paybacks, and entail less risk than those associated with proposed cogeneration projects. Cogeneration schemes that survive the scrutiny of Pinch Technology are often smaller -- but invariably more cost-effective -- than those being contemplated or now being operated. Most importantly, only the results of such a study truly enable the process operator to evaluate the relative merits of cogeneration and other options for reducing operating costs. Recognizing that cogeneration will, at times, be an appropriate part of an industrial process, utilities have an opportunity to work with their industrial customers using Pinch Technology to insure that the alternatives are properly defined and well understood. Recent case study results show that such cooperation can often yield sounder capital investment decisions and lower operating costs for the industrial operator and load-building and load-retention opportunities for the utility.