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Calor’s renewable BioLPG to propel rockets into space
Calor, the UK’s leading supplier of Liquefied Petroleum Gas (LPG), has agreed an exclusive partnership to see its BioLPG fuel the first full-scale microlauncher rocket developed in Europe.
One of the primary benefits of CHP systems is their ability to achieve much higher efficiency than traditional power generation methods. CHP systems capture and utilise the waste heat generated from the generation process and utilise it for other purposes, such as heating water, producing steam, etc, and can even provide cooling from the heat generated. This can lead to overall efficiencies approaching 90%. Paul Williams, Senior Sales Engineer at Clarke Energy*, explains:
‘This means businesses can use the same fuel to generate both electricity and heat, drastically improving energy efficiency and minimising waste. Reciprocating gas engines have excellent operational performance at variable loads, fluctuating gas conditions, and at high ambient temperatures.’
Frederick Hall of Net Zero Consultants points out that CHP systems, even at a smaller scale, provide a better carbon footprint than relying solely on grid electricity. By generating electricity on-site and utilising the associated heat, businesses can reduce their dependence on external energy providers, lower greenhouse gas emissions, and contribute to the global push for decarbonisation.
For many high-intensity businesses, the financial savings from implementing CHP are compelling. With typical payback periods of around two years, businesses can quickly recover their initial investment. Williams explains that once the asset has paid for itself, the ongoing savings can be substantial. For example, a company investing £1 million in a CHP system could see £500,000 in annual savings, meaning by the end of year two, the system is fully paid off, and by year three, the business has saved half a million pounds in avoided utility costs.
The savings generated from CHP systems can then be reinvested into other sustainability projects, such as solar panels, wind turbines, or expanding production facilities. This allows businesses to further reduce their carbon footprint while continuing to grow and increase their self-sufficiency.
Moreover, high-intensity businesses such as manufacturers and hotels, which have consistent energy needs, are ideal candidates for CHP systems. These industries often have steady, round-the-clock energy demands, making it easier for the system to deliver reliable savings. As Williams explains, CHP systems work best for businesses that maintain a stable energy load, such as a factory running machinery at a consistent rate or a hotel with constant hot water and electricity demands.
Another significant advantage of CHP systems is their flexibility in terms of fuel options and future energy transitions. Currently, many CHP engines can run on LPG*, but they are designed to transition to more sustainable fuels as they become available. For example, companies could switch to biogas, hydrogen, methane-derived fuels, or even BioLPG, which is sustainable, non-fossil fuel, but slightly more expensive.
Williams emphasises that the savings from CHP can help fund these transitions. For instance, after two years, once the CHP system has paid for itself, the savings could be used to invest in greener fuels, thereby future-proofing the business and reducing reliance on fossil fuels. This flexibility enables businesses to adapt to evolving energy markets and environmental regulations while continuing to enjoy the financial and environmental benefits of CHP technology.
In addition to the inherent financial savings, businesses can also take advantage of government schemes designed to encourage the adoption of CHP systems. One such initiative is the Enhanced Capital Allowances (ECA) scheme, which allows businesses to claim up to £1 million against their corporation tax bill for fuel costs associated with CHP systems. Frederick Hall notes that this could equate to a benefit of up to £250,000 in the first year, significantly reducing the financial burden on businesses.
Furthermore, businesses operating good quality CHP systems can benefit from the Climate Change Levy (CCL) exemption on the gas they consume. Though the levy may seem small, when applied to the vast amounts of gas used annually by high-intensity businesses, the savings can be substantial. These government incentives make CHP an even more attractive proposition for businesses looking to reduce both operational costs and their carbon footprint.
CHP systems are particularly well-suited for industries with high and continuous energy needs. Manufacturing plants, vertical farms, hotels, and holiday parks often require significant amounts of electricity and heat, making them ideal candidates for CHP. For instance, hotels benefit from a constant demand for electricity and hot water due to their 24/7 operations, while manufacturing plants with consistent production schedules can maximize the efficiency of their CHP systems.
In summary,
Combined Heat and Power (CHP) systems offer high-intensity businesses a
powerful tool for reducing energy costs, improving efficiency, and cutting
carbon emissions. With rapid payback periods, government incentives, and the
ability to transition to more sustainable fuels over time, CHP represents a
smart, future-proof investment for businesses committed to sustainability and
energy efficiency. Whether it’s a manufacturing plant, a hotel, or a vertical
farm, CHP enables companies to take control of their energy future while
reaping significant financial and environmental rewards.
*Please note, the CHP engines offered by Clarke Energy can only run on LPG if the LPG is HD-5 grade or equivalent. Other types of CHP gas engines can run on standard LPG or BioLPG.
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