THE SOURCE - Fall 2017 - 27

dynamics of natural gas and advance
control technology into a containerized
version of CHP that allows access to
the small and medium CHP market.
Traditionally, the application of CHP
has been restricted to highly efficient
combustion turbines in the 10-50
megawatt size range and large industrial
customers were the only opportunity for
success. But with the new developments
in piston driven engines and plug and
play CHP, the ability to develop the
smaller CHP market and earn desirable
returns has been greatly enhanced.
The concept of CHP is to efficiently
cogenerate thermal and electric energy
that can be used by a customer resulting
in cost savings over conventional
methods. This is accomplished by
capturing the engine's waste heat from
the engine jacket and from the exhaust.
Heat exchangers capture the heat from
these two sources and the host facility
can use the additional energy for its
processes. Steam can also be produced
for more intense heat loads or as in the
case in southern climes, that same heat
can be directed to an absorption chiller
to produce chilled water. Because CHP
systems are able to efficiently extract
a majority of the energy, they can
experience overall efficiencies greater
than 90 percent at the point of use.
Depending on local gas and electricity
pricing, simple paybacks of less than four

years is achievable. Of the approximately
5,000 units that 2G Energy has in service,
the average payback is two to three
years. Additionally, CHP systems can
operate on a variety of gases, including
biogases, if there is a need to incorporate
landfill or anaerobic digester gas to
the mix.
Beyond the financial incentives,
it is hard to argue with the security
and reliability that comes with on-site
generation. Included with each 2G
installation is a 93 percent availability
guarantee, subject to a fully inclusive
service agreement being entered
into. If you consider the prospect of
impacts by hurricanes or winter storms,
a backup diesel generator is only good
for just that, backup. It does not provide
a long-term sustainable process for
business continuity. The natural gas fired
CHP system will allow not only longterm savings, but a source of energy
to continue operation of key business
processes during electric grid outages.
The need for uninterrupted power is a
key factor to many critical manufacturing
operations, but practically a necessity to
food processing and medical facilities.
In a recent evaluation, the efficiency
of CHP again proved its worth. The
project included the installation of
a 1.2 MW generator with hot water
recovery and a delivered gas cost of
$6.00/ MMBtu. The proposed installation

will provide electric service to a hospital
with an equivalent rate of 4.15 cents
per kilowatt hour (kWh) including the
recovery of 2.04 cents/ kWh equivalent
hot water. This rate includes a 1.0 cent
per kWh O&M charge for all ongoing
monitoring, maintenance, and future
overhauls. Incremental volume of gas
throughput for normal operation was
50,000 MMBtu per year. The system
efficiencies vary for the different
applications, but the underdeveloped
niche 2G has been able to target the
50kw to 2 MW sector. 2G machines are
still competitive up to approximately
8-10 MW by the installation of multiple
units in parallel.
For the smaller municipal system that
is struggling to grow or maintain their
current position, the opportunity to add
350,000 therms per year (600 kw unit) for
virtually no investment may be a game
changer. Most municipal systems already
serve one or more of the most obvious
targets. Hospitals, manufacturing, food
processing, and medium to large hotels
are likely candidates because of their need
for reliable service as well as their likely
need for hot or chilled water. In some
cases, the end-user will want to purchase
and own the equipment because of the
opportunity for an above average return
on investment, but through the unique
association between 2G and Distributed
Generation Technologies, LLC (DGT),
third-party financing is available so that
the project may be accomplished with
no capital outlay from customer. DGT is
pleased to facilitate customer-owned
or third-party-owned transactions.
Either way, the local distribution entity
receives the benefit of the increased
gas consumption.
As 2G's utility marketing partner,
Distributed Generation Technologies
will work with municipal and investor
owned gas systems to evaluate, provide
support, and market CHP to their end use
customers. DGT will assist the local gas
system with identification and evaluation
of potential opportunities as well as
facilitate the engagement of third party
financing. For further information and
details, visit and
THE SOURCE | FALL 2017, VOL. 10, ISSUE 1 27

Table of Contents for the Digital Edition of THE SOURCE - Fall 2017

First Person
APGA Events
A Conversation with an APGA Member: Southeast Gas
Update on DOE’s Furnace Rule
The Second Annual NGV Road Rally
Levelized Cost of Energy (LCOE) and How it Affects the Direct-Use of Natural Gas
APGA Strategic Planning: What’s Next?
Growing Revenue Without Capital - Combined Heat and Power
APGA Endorses Leading Home Repair Provider
Legislative Outlook
The Pipeline
Marketing Matters
At Last
THE SOURCE - Fall 2017 - intro
THE SOURCE - Fall 2017 - ebelly1
THE SOURCE - Fall 2017 - ebelly2
THE SOURCE - Fall 2017 - cover1
THE SOURCE - Fall 2017 - cover2
THE SOURCE - Fall 2017 - 3
THE SOURCE - Fall 2017 - 4
THE SOURCE - Fall 2017 - 5
THE SOURCE - Fall 2017 - 6
THE SOURCE - Fall 2017 - 7
THE SOURCE - Fall 2017 - First Person
THE SOURCE - Fall 2017 - 9
THE SOURCE - Fall 2017 - APGA Events
THE SOURCE - Fall 2017 - 11
THE SOURCE - Fall 2017 - A Conversation with an APGA Member: Southeast Gas
THE SOURCE - Fall 2017 - 13
THE SOURCE - Fall 2017 - 14
THE SOURCE - Fall 2017 - 15
THE SOURCE - Fall 2017 - 16
THE SOURCE - Fall 2017 - Update on DOE’s Furnace Rule
THE SOURCE - Fall 2017 - The Second Annual NGV Road Rally
THE SOURCE - Fall 2017 - 19
THE SOURCE - Fall 2017 - Levelized Cost of Energy (LCOE) and How it Affects the Direct-Use of Natural Gas
THE SOURCE - Fall 2017 - 21
THE SOURCE - Fall 2017 - APGA Strategic Planning: What’s Next?
THE SOURCE - Fall 2017 - 23
THE SOURCE - Fall 2017 - 24
THE SOURCE - Fall 2017 - 25
THE SOURCE - Fall 2017 - Growing Revenue Without Capital - Combined Heat and Power
THE SOURCE - Fall 2017 - 27
THE SOURCE - Fall 2017 - APGA Endorses Leading Home Repair Provider
THE SOURCE - Fall 2017 - 29
THE SOURCE - Fall 2017 - Legislative Outlook
THE SOURCE - Fall 2017 - 31
THE SOURCE - Fall 2017 - 32
THE SOURCE - Fall 2017 - 33
THE SOURCE - Fall 2017 - The Pipeline
THE SOURCE - Fall 2017 - 35
THE SOURCE - Fall 2017 - Marketing Matters
THE SOURCE - Fall 2017 - 37
THE SOURCE - Fall 2017 - 38
THE SOURCE - Fall 2017 - 39
THE SOURCE - Fall 2017 - At Last
THE SOURCE - Fall 2017 - 41
THE SOURCE - Fall 2017 - 42
THE SOURCE - Fall 2017 - cover3
THE SOURCE - Fall 2017 - cover4
THE SOURCE - Fall 2017 - outsert1
THE SOURCE - Fall 2017 - outsert2
THE SOURCE - Fall 2017 - outsert3
THE SOURCE - Fall 2017 - outsert4