WEST SPRINGFIELD, Mass., May 16, 2016 /PRNewswire/ -- Scuderi Clean Energy (SCE) today announced that its system heat rates can be significantly lower than the traditional power generation systems on the market today.
Today's wholesale electric market is directly related to the cost of natural gas (NG). In the U.S., more and more power generation is being produced by power plants running on NG because it is the cleanest, lowest cost fossil fuel available today, and it is also very abundant. With coal plants under pressure because of environmental concerns and nuclear plants facing additional regulations (notwithstanding the growth of renewables), natural gas is quickly becoming the fuel of choice for electric power generation. As a result, the cost of electricity is directly tied to the cost of natural gas.
In the wholesale electric market, the cost of electricity produced has two basic components – the cost of NG and the efficiency of the generating facility or equipment. Since NG is a commodity, independent power producers (IPP) purchase the gas at basically the same price. This price fluctuates with supply and demand. However, since no one IPP has a significant advantage over other IPPs on the price of the gas, the price of the electricity provided by an IPP simply comes down to the efficiency of that producer's facility.
Efficiency in the power industry is referred to as heat rate. Heat rate represents the amount of energy in the fuel that is needed to produce one unit of electricity. Heat is measured in British Thermal Units (BTU), electricity is measured in Kilowatt Hours (kwh), and heat rate is expressed as btu/kwh. The average heat rate, or implied heat rate, for electricity produced on the grid in New England and New York is 12,000 btu/kwh. A more efficient system would require less energy to produce one unit of electricity. Therefore, any system that has a heat rate lower than the implied heat rate of the grid is considered viable because it can produce the electricity below what it is being sold for in the wholesale market.
The Scuderi Clean Energy system can achieve heat rates as low as 7,500 btu/kwh without the compressed air energy storage (CAES) components. With CAES, the heat rates are anticipated to be below 6,000 btu/kwh.
"Most distributed power systems find it very difficult to compete in the electric wholesale market because they either cannot purchase the fuel at the same low prices as an IPP, or they do not have an efficient enough system to beat the heat rate on the grid. Most CHP systems and standby generators are purchased by an end-user who cannot purchase the fuel at IPP prices," says Nick Scuderi, president of Scuderi Clean Energy.
In addition, a typical CHP or standby generator is designed to follow the load requirements of the end-user. Whenever these systems throttle their output to follow the end-user's requirements, the efficiency of the system is significantly reduced.
"The Scuderi system eliminates all of these issues," he says. "Scuderi Clean Energy will be a market participant, the systems' heat rates are well below the implied heat rates of the grid, and because it functions as both a CHP unit and an IPP, fuel is acquired at the lowest prices possible. Without assuming any of the risks, the customer can realize all of the benefits with the Scuderi system."
About Scuderi Clean Energy
Scuderi Clean Energy, LLC, (SCE) a wholly owned subsidiary of Scuderi Group, Inc., was formed in October 2015 to market Scuderi Engine Technology to the power generation industry. SCE holds a worldwide license on the Scuderi Engine Technology patent portfolio for the power generation industry. The Company currently has over $60 million worth of power projects under contract in Massachusetts and New York. All projects are for power generation utilizing conventional engines with the patented Scuderi control system. For more information, visit www.scudericleanenergy.com.
Scuderi Clean Energy
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SOURCE Scuderi Clean Energy