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Scoring a Touchdown for Cogen Plant

Goal Line LP

Introduction

At PurEnergy, we specialize in optimizing energy assets to achieve peak performance and profitability. This case study highlights our recent success with a cogeneration plant and ice complex thermal host in Southern California. Faced with operational and financial challenges, we implemented a series of strategic improvements that significantly enhanced the plant’s efficiency and profitability.

Key Actions and Outcomes

1. Constructing a Supplemental Cooling Tower

  • Challenge: The plant’s capacity was limited by its existing cooling infrastructure.
  • Solution: We constructed a supplemental cooling tower to increase the plant’s cooling capacity.
  • Outcome: This addition allowed the plant to operate at higher capacities, increasing overall production and revenue.

2. Maximizing the Capacity Factor Bonus

  • Challenge: The plant was not fully leveraging the capacity factor bonus available under its power purchase agreement.
  • Solution: We optimized operations to maximize the capacity factor bonus.
  • Outcome: Enhanced operational efficiency resulted in higher bonus payments, boosting the plant’s revenue.

3. Optimizing Run Time through Cycling

  • Challenge: Inefficient startup times were reducing the plant’s operational effectiveness.
  • Solution: We began cycling operations to optimize run time and reduced startup time by half an hour.
  • Outcome: Improved startup efficiency led to better utilization of the plant’s capabilities and increased output.

4. Negotiating a New Gas Supply Contract

  • Challenge: The existing gas supply contract was not cost-effective.
  • Solution: We negotiated a new gas supply contract with more favorable terms.
  • Outcome: Reduced fuel costs improved the plant’s profitability.

5. Demineralizing Cooling Tower Water

  • Challenge: High water usage and maintenance costs were impacting the plant’s efficiency.
  • Solution: We demineralized the cooling tower water to reduce these costs.
  • Outcome: Lower water usage and maintenance expenses enhanced the plant’s operational efficiency.

6. Negotiating Lower Sewer Charges

  • Challenge: Sewer charges imposed by the water district were a significant expense.
  • Solution: We negotiated lower sewer charges with the water district.
  • Outcome: Reduced sewer costs contributed to overall cost savings and improved the plant’s financial health.

7. Reducing Property Insurance Costs

  • Challenge: High property insurance costs were affecting the plant’s profitability.
  • Solution: We renegotiated the plant’s property insurance to obtain lower rates.
  • Outcome: Lower insurance costs further enhanced the plant’s profitability.

Conclusion

Through strategic enhancements and operational optimizations, PurEnergy transformed the performance of the SoCal cogeneration plant and ice complex thermal host. Our efforts resulted in increased capacity, reduced costs, and improved profitability. This case study exemplifies PurEnergy’s commitment to delivering innovative solutions and exceptional value to our clients in the energy sector.