How Microgrids can Help meet Food & Beverage Industry Needs while Lowering Costs
The food & beverage industry has specific energy demands for electricity and thermal energy, including hot water needs for processes such as pasteurization or hot-filling. Because it directly impacts the bottom line, energy cost reduction is vital for the industry’s profitability. Equally important is ensuring a reliable power supply to maintain seamless daily operations and business continuity. Without consistent power, production disruptions and product spoilage can lead to immediate revenue loss.
Microgrid solutions are well suited for reducing energy costs and improving the industry’s carbon footprint by efficiently and reliably combining heat and power from distributed energy resources (DERs). The following use case – created with dedicated microgrid simulation software – showcases how a Jenbacher microgrid solution from INNIO Group can help the industry reduce energy costs and add resiliency while achieving sustainability targets.
A simulated example of a microgrid setup
In this specific case, we combine a natural gas-powered Jenbacher combined heat and power (CHP) genset with rooftop photovoltaic (PV) panels and a battery energy storage system (BESS). The BESS enhances the use of PV and the CHP system to efficiently decrease utility imports during peak periods.
With our microgrid setup, operating at 89% total efficiency, the CHP system provides hot water for the customer’s processing needs. Although the microgrid operates in conjunction with the utility, it provides 90% of the customer’s overall energy needs. In addition, it can operate independent of the grid in island mode. The boiler remains integrated but operates at a reduced output, as a substantial portion of hot water is now produced by the Jenbacher CHP unit. With the BESS, self-consumption improves, reducing reliance on the utility during peak demand periods. The entire microgrid is managed by a Jenbacher microgrid controller, which helps optimize energy savings through renewable energy integration.
Without a microgrid to cover the customer’s electrical needs, all energy must be purchased from the utility, and no backup generation is available. Hot water and steam demands are covered by natural gas-fired hot water boilers, resulting in a higher cost of $0.138 per kWh1, or an annual energy expense of $2.32 million. Thus, the levelized costs of energy generated by the microgrid are $0.117 per kWh1, with annual energy costs totaling $1.57 million.
Savings and amortization
Cogeneration of heat and electricity from a gas-powered genset in combination with solar panels enables continued operation during grid outages, reduces operating expenses (OPEX) by 32%, and cuts CO2 emissions by 26%. Integrating a BESS further enhances dispatch flexibility and provides greater stability during grid outages. With the Jenbacher microgrid solution, annual savings of $750,000 can be realized.
Simulation results indicate that this microgrid investment will pay for itself in five to six years. In the U.S., microgrid operators may qualify for additional tax incentives under the Inflation Reduction Act (IRA), potentially reducing the payback period to three to four years.
The Jenbacher microgrid solution
INNIO Group provides innovative digital solutions that enable our customers to control, manage, and optimize their energy assets and lower their carbon footprint. For instance, we continue the legacy of the Jenbacher master controller with our new Jenbacher microgrid controller. It integrates a wide selection of DERs such as renewables and storage devices while helping to ensure high power reliability and plant uptime.
Microgrids can be connected to the grid or operated independently in island mode, where our microgrid controller prioritizes power reliability. Additionally, our intelligent energy management solution myPlant Optimization accurately assesses a plant’s operational requirements, improving the customer’s overall balance sheet. This optional offering takes a holistic approach by using artificial intelligence (AI) to improve the operational efficiency of the entire plant portfolio – from engine and heat pump to heat storage and the PV system – while taking operational requirements and annual targets into account.
Microgrids meet environmental targets without sacrificing resilience. Powered by renewable gases – or hydrogen as it becomes more commercially viable – gas engines offer a dispatchable solution that balances resilience and sustainability in a DER system. As a result, both gas gensets and CHP units play a crucial role as DERs, providing secure, economical, and green energy when renewables are unavailable, while further supporting the adoption of renewable energy resources.
More on microgrids
The business case2 described above is illustrative only, and projects must be evaluated on a case-by-case basis. For instance, not all projects need to have energy storage, and a PV installation might not make sense for some customers. INNIO Group is pleased to provide individual business case simulations to explore each specific microgrid project.
Discover key insights in our full Business Case Simulation: https://bit.ly/4i2OEYp
Sponsored by:
