The TotalGEN methodology adds another evaluation metric – an outside entity assumes most of the risk traditional associated with a capital project including project financing, construction, operations, and offtake distribution. This transfer of risk means that evaluation priorities shifts to an assessment of potential benefits and the plant’s appetite for undertaking the project.
Potential financial benefits:
Energy costs savings
Lower carbon intensity scores
Elimination of the cost and risk associated with plant boiler operation and maintenance
Potential financial upside from sale of power produced in excess of the plant's needs
The plant’s appetite for undertaking a project of this magnitude depends of its unique circumstances.
In a Plant Assessment engagement, the TotalGEN Team baselines the following information:
• Baseline plant performance measures
• Cost/gallon of ethanol produced
• Energy cost/gallon of ethanol produced
• Current energy consumption
• Short and long term energy costs
• Life cycle cost of boiler operation and maintenance
• The plant’s carbon market revenue potential
• The wholesale/retail power market in the plant’s locale
• Permit and licensing challenges in the plant’s locale
With this baseline established, the TotalGEN Team constructs a model that provides those metrics under a CHP scenario. Using the baseline data, the team configures a CHP installation and calculates the baseline metrics results achieved by the CHP.
The TotalGEN Team compiles this data into a CHP Assessment Report with recommendations and supporting information from the model as well as sample out-take agreements. With this information in hand, plant management and board members can complete their evaluation of the CHP fit for their facility.