| Cogeneration
Cogeneration is the simultaneous production of electricity
and thermal energy such as hot water or steam from a single fuel
source. Often natural gas is used to produce both electricity and
steam. The steam produced is normally required by an associated
or nearby commercial facility, while the electricity generated is
sold to a utility or used within the facility. Cogeneration provides
facilities with greater efficiency, greater reliability and increased
process flexibility than conventional generation methods. Examples
of industries using cogeneration facilities include food processing,
pulp and paper and chemical plants.
Cogeneration Benefits
- Predictable generation (no natural fluctuations)
- Low technology risk using well proven turbine engines
- Operating risk can be minimized through Power Purchase Agreements
matched with gas supply
- Revenues based on long-term agreements
Cogeneration Overview
- 5 natural gas fired co-generation facilities
- Average PPA life of 11.3 years
- Represents 28% of the Fund's operating profit
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