Texas Combined Heat and Power Initiative commends potential reduced costs and other benefits of expedited air permitting available for on-site power production using cogeneration in Texas. CHP systems provide reductions in power plant air emissions and water use.

The State of Texas has taken action to cut red tape for combined heat and power systems.  The action was taken by the Texas Commission on Environmental Quality (TCEQ) when they approved a new permit by rule (PBR) for combined heat and power systems (CHP) that is expected to reduce regulatory delays and eliminate some equipment cost associated with CHP systems. The TCEQ action was in response to legislation passed by the 82nd Texas Legislature and championed by the Texas Combined Heat and Power Initiative (TXCHPI). The TCEQ actions is expected to spur additional CHP usage and further establish Texas as the nation’s leader in electricity produced through combined heat and power operations - also known as cogeneration. Combined heat and power is the simultaneous production of electricity and heat from a single fuel source.

The new TCEQ’s PBR recognizes the energy efficiency benefits of CHP and creates a quicker path for attaining air permit compliance for systems up to 15 megawatts (MW). A report prepared by the Public Utility Commission of Texas has identified that more than 7,000MW of potential CHP can be economically developed in this size range over the next ten years at commercial and industrial sites such as hospitals, data centers, nursing homes, hotels, chemical manufacturers, paper manufacturers and oil refineries. Interest in CHP has been buoyed by recent news that the Olympic Village and several sporting venues in London are being powered by these systems.

CHP is onsite electric generation with the heat energy produced during generation captured and used to heat and cool buildings, to generate additional power or to complete a manufacturing process. The systems are extremely efficient and reduce on-site fuel costs and off-site power plant pollutants. CHP also uses very little water and implementing more CHP will help reduce the great amount of water consumed during the production of electricity. 

With a total capacity of about 17,000 MW, Texas has the largest fleet of CHP and cogeneration facilities of any state in the nation consistently generating approximately about 20% of the electricity in the state. This is roughly four times the amount of energy produced in Texas by wind power. CHP systems are readily available and most all component parts are manufactured and engineered in Texas and the U.S. 

Paul Cauduro, Executive Director for the TXCHPI stated.  “The new air permit for CHP is a positive step for those that want to reduce energy costs and generate their own reliable and secure power using natural gas engines and turbines. This comes at a time when Texas needs CHP now more than ever because these systems reduce strain on the ERCOT grid and provide reductions in power plant air emissions and water use. The new permit should help usher in more of this effective, economical and environmentally-sensible energy option for Texas; and create plenty of jobs along the way. This will be the topic of much discussion at CHP2012”

CHP industry professionals will meet at CHP2012, the nation’s only conference and trade show dedicated to the cogeneration, trigeneration and waste heat recovery industry, at the Westchase Marriott in Houston beginning Monday, October 15.  www.CHP2012.com

The Texas Combined Heat & Power Initiative (TXCHPI) is a non-profit association of business interests that supports clean, energy-efficient, CHP technology applications in industrial, commercial and institutional settings. TXCHPI champions CHP as the most effective, economical and environmentally sensible energy option for Texas.  Find more information at the website www.texaschpi.org. 

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