PHS Consulting - Town Gas CHP Case Study

The manufacture of coke produces town gas as a by-product. This producer sold the town gas above its own needs to local industry. The business was also purchasing significant quantities of electricity and its steam boilers were old and unreliable. It was therefore suggested that higher value may be realised by constructing a combined heat and power (CHP) plant to use all the gas to simultaneously produce steam and electricity, the surplus electricity being sold to the grid.

The project consisted of obtaining proposals from reputable suppliers for the construction and operation of such a plant. To do this the capabilities and requirements of the coke company were carefully examined leading to a tender document which was used to solicit proposals.

The parent company sold the business before discussions got to an advanced stage. However, these proposals were of great value in the business sale negotiations and a Ł7m plant was built by the new owners.