New York packager swiches to cogeneration. [Seal-Kap Packagers Inc. , Queens]

A New York City manufacturer's approval from the city and permission from Consolidated Edison (Con Ed) for small-scale cogeneration is seen as a pioneer effort in establishing some independence from the utility. Seal-Kap's project of generating its own electric power and part of its boiler requirements was necessary if the company was to remain an urban manufacturer after the price of standby electricity became prohibitive. Con Ed objects to urban on-site cogeneration as environmentally unsound, contrary to oil-independence goals, and costly to other utility customers. The completed system at Seal-Kap has suffered a few brief outages, but energy savings to date indicate a 3.5-year payback. Although the company must upgrade some of its older equipment and faces uncertain oil prices and availability, they feel this is justified by the opportunity to keep their neighborhood location and trained loyal employees, as well as a degree of self-sufficiency. (DCK)