Design, Carbon Emission and Economic Analysis of a Cogeneration System for Garments Group of Industries

Cogeneration is the most efficient and reliable energy supply technology which is being utilized worldwide in individual industries but not in a group of industries. This paper presents a study which has been carried out to check the feasibility and economic viability of Combined Heat and Power Plant (CHP) in a group of industries of garments zone. Heat and power forms of energy are required in existing system. Electricity is supplied by the state grid while heat in the form of steam is generated by the industries individually by diesel fuel fired boiler. Power (electricity) and heat (steam) required in the garments zone (Group of Industries) is 700 kWh/hr and 2100 kg/hr respectively. To fulfill this requirement, CHP and steam distribution system has been designed in this study. Internal rate of return (IRR) has been calculated for different scenario. An industrialist in existing system spends Rs. 3.4/ kg steam and Rs. 6.5/kWh power. By replacing the existing system by the proposed system, IRR is 12% if the industrialist spends the same amount for next ten years to pay for proposed system. If the industrialist paid the same amount with an annual increase of 10% per year (which is actually happening in India) on diesel and electricity for the next ten years, there would be an IRR of 15% even when the steam is provided by the proposed system at Rs. 2.9/ kg. CO 2 emissions are reduced by 85 Tonnes per year as compared to the existing system. The proposed system, therefore, is not only economically viable but also save the environment.