Co-generation: users interested, cautious

Several studies have concluded that co-generation, an old process receiving renewed interest, offers large energy savings to individual companies and the nation as a whole. Dow Chemical's study estimated the savings available by producing electric power from waste streams and by pumping process steam from a central power station to industrial plants. According to Dow, the costs of building new generating facilities could be saved while maintaining consumption levels. Thermo Electron's study results were even more optimistic. In-plant power generation by either the bottoming or topping cycle are already in use in the paper, chemical, and petroleum refining industries, all of which are steam-intensive. Utilities, reluctant to buy power from plants for economic, supply, and regulatory reasons, may be encouraged by Carter's energy proposal to require the purchase but allow utilities to include capital costs in their rate base and claim income tax credits. A milder requirement for a case-by-case review of selling arrangements was suggested by Senator Hart of Colorado. Co-generation systems are recommended for plants paying over two cents per kWh, having a production capacity exceeding one megawatt, and operating a minimum of two shifts a day for five days. Optimum conditions would be a continuous operation. (DCK)