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January 31, 2007 4:00 AM PST

'Power plants' in the basement heat up

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A Massachusetts company next month will release a combination power generator and space heater, a system that can cut down on electricity bills, according to backers--at least while the heat is running.

Climate Energy was formed in the year 2000 to bring "micro-combined heat and power," or micro-CHP, to consumers in the U.S.

Combined heat and power systems, already available for industry and large buildings, are designed to harvest what is normally wasted heat during the process of power generation. As fuel is burned to make electricity, the resulting heat is captured and piped through a home's existing hot-air heating system.

Climate Energy's system is designed around a Honda internal combustion engine that burns natural gas to generate electricity. A heat exchanger feeds any captured heat to a furnace, which then distributes the hot air.

If sized right, the combined heat and power unit can heat a home during the cold months of the year and slash a home's electricity bills, according to the company's president and CEO, Eric Guyer.

Guyer said Climate Energy's micro-CHP system is trying to take well-understood co-generation, or on-site, power generation technology and make it fit into the average home.

"There are all kinds of co-generation technologies, but nothing on the micro scale," said Guyer. "That's the big untapped market."

He estimates that central heating systems are installed in about 4 million houses every year in the U.S.

Customers who have been beta testing the system in Massachusetts end up with comparatively tiny electric charges of a few dollars in winter months, Guyer said.

That's because the power generated in their homes--about 1.2 kilowatts--offsets their monthly, grid-delivered electricity and is subtracted from their bill. If the power produced exceeds the electrical needs at a given moment, the meter runs backward as power is fed back onto the grid.

Bernard Malin of Braintree, Mass., has had a Climate Energy system in place since last winter. The combined heat and power system is taking a "chunk" out of his electrical bill, something he's still monitoring.

Photos of Micro-CHP system

But Malin noted that there are other benefits, including on-site power generation and a very efficient heating unit.

"The key here is I'm getting the benefit of electricity but, because it's an integrated system, I'm producing heat more efficiently, and I'm not calling for heat as much," he said.

"Just think of the heat that's generated at a (local) power plant--it's going up the smoke stack. I'm using it to heat my house. Nothing goes to waste," he said.

Malin added that the Climate Energy system provides a slow, steady airflow, which allows him to keep his thermostat set lower than his previous furnace, which tended to spike up and down.

Greener than the grid
At $13,500, the cost of the system is roughly twice what somebody would pay for a high-end furnace, Guyer said. But he calculates that people can save $800 to $1,000 a year on electricity, which means the payback would be quicker than conventional heating.

Climate Energy is also hoping to tap into growing environmental concerns.

Combined heat and power systems are very efficient; about 90 percent of the energy is utilized either in heat or electricity.

Because of its high efficiency, the micro-combined heat and power system qualified for a utility-sponsored incentive program. Keyspan Energy Delivery, which serves Massachusetts and other eastern U.S. regions, offers a $2,000 rebate because the system fits into its efficiency programs, according to the company.

Local power generation also gives people a back-up system, he added. And an Internet connection allows for remote maintenance and diagnostics.

Residential combined heat and power systems are further along outside the United States.

In the United Kingdom, there are at least four micro-combined heat and power systems already available, according to the Cogen Europe industry association, which calculates that more than half of the U.K.'s households are suitable.

Systems in Europe are often designed to look and operate like an appliance, placed under a kitchen counter, for example, rather than tucked in a basement.

Because of its efficiency, a micro-CHP system can reduce a household's greenhouse gas emissions by 25 percent, according to the U.K.'s Micropower Council.

Climate Energy's Guyer noted that 30,000 micro-combined heat and power units have been installed in Japan in the past few years.

He compared micro-CHP to hybrid cars, which rely on existing technologies. And much like a hybrid car, micro-CHP systems don't compromise performance; the only difference a micro-CHP should introduce is a smaller electric bill.

Later this year, the company plans to release a version that warms up water, rather than air, for heating.

"It's not a big question of whether the technology is viable," he said. "It's really a question of whether we can get it out there with the right price and few bugs."

Malin said that installers from the local power company didn't have any problem installing the Climate Energy system.

He didn't have to pay for the system since it was installed for testing purposes. But viewed over the life of the product, which can be 20 years, he said the higher price tag would be worth it, particularly for people with high electricity rates.

"These gas systems burn really clean, so virtually nothing breaks. So you can really justify it with a little bit of saving on the electric bill," Malin said. "And just having a little bit more (energy) independence away from everybody else is really nice."

See more CNET content tagged:
Combined Heat and Power, power generation, electricity, heat, Massachusetts

Add a Comment (Log in or register) 82 comments
I like where this idea is heading.
by jamie.p.walsh January 31, 2007 6:50 AM PST
Eventually, homes will be constructed with various supplemental energy/heating systems that could help alleviate their dependence on the grid.
Reply to this comment
You're barking up the wrong tree
by tundraboy January 31, 2007 10:48 AM PST
Dependence on the grid isn't the problem. Dependence on
carbon-spewing fuels, primarily of the fossil variety, is.
View all 2 replies
Bush should offer subsidies on this!
by StanJasek January 31, 2007 7:03 AM PST
The poorly laid out and uncreative Energy Independence plans of George W.Bush, should have includued substantail tax credits and subsidies for this mini-CHP technology and other distributed generation technologies versus the continuing support for the ethanol "heavy" plans.

Combine the min-CHP with a solar/PV system and consumers will be FREE from the enslavement of the monopoly electric utilities. Distributed Generation(DG) is getting a huge boost with the mini-CHP.

Efficiency and cycle efficiency are key to saving energy and money. The mini CHP with 90% cycle efficency is going to be a huge market winner. Bring'em on!
Reply to this comment
Get Free
by phrogdriver71 January 31, 2007 8:02 AM PST
Hey Stan,

If you want to get free....join the Amish since they don't use any
electricty. It's not just the "W"s plan but also the responsibility of
congress.....oh yeah....and the voting public!
Free?
by sbwinn January 31, 2007 9:09 AM PST
First of all, the 90% efficiency was for gas heaters not a gas
operated engine. This thing will produce energy and use the
heat by-product to warm up the house. When a heater is just a
heater it can be up to 90% efficient. When this thing is
generating electricity (which is really the whole point) it won't be
anywhere near that.

It would be very nice of Bush or any other government figure to
offer subsidies / rebates on something like this. I think it might
be a little too expensively for them to afford personally though.
So they would have to do what government always does, stick a
gun to someone's head and force them to give up their money
so someone else can get a cheaper energy appliance.

If mini-CHP technology turns out great energy savings for its
owners, people will be running to it on their own. If on the other
hand, they prefer to not have dishwasher noise 24/7 and an
inflated gas bill, they might wait for something else to come
along.
View reply
Disaagree, but only in part ...
by Too Old For IT February 2, 2007 9:31 AM PST
My fear is not so much enslavement by the monopoly electric utilities.

I am truly afraid of some Islamic mullah or caliphate deciding that the good citizens of the United States need to fork over the Jizyah tax (as if we don't already via bloated oil prices!!), and our foreign-oil addicted government is too weak to say ?no?.
No...
by FutureGuy January 31, 2007 7:20 AM PST
you are talking about Bush remember. I don't think the oil companies would approve, they would rather have that money as tax rebates.
Reply to this comment
I predicted this years ago...
by Below Meigh January 31, 2007 7:21 AM PST
and just wait until the Japanese industry gets into it (ie Honda, Fujitsu HI,...).
Imagine a unit that recycles water (into potable or steam systems), waste (into fuel and inert potting matter) and heat into home system power plant. Heating, cooling, waste-recycler and electricity. All consumer friendly or partially-serviceable.
Companies like Lennox should see that the homeowner needs to be independent from the grid and local sewage, municipalities.
Reply to this comment
err, say what?
by sanenazok January 31, 2007 4:34 PM PST
potting matter? Are you nuts? Go ahead, YOU can do that. Once I put "something" down the drain I don't want it in my house no more. Sorry, waste purification is too complex for a home-based unit. Plus how would that generate electricity to make the home efficient from the grid? Purifying water takes a ton of chemicals and energy, not to mention open space.

Looks like your idea is a "little" different from this one inasmuch as your idea is impossible and pointless while this is an actual product that works.
View reply
FIAT TOTEM
by MKenzie January 31, 2007 7:22 AM PST
Sound like the Fiat totem, that used the Fiat 124 engine, and was available back in 1979.
Reply to this comment
minor correction
by iconoklast February 18, 2008 8:26 PM PST
The base engine Fiat used was the 127 unit. This engine uses much more conservative timing and induction porting to gain economy. The 124 was designed for performance rather than economy.
Micro-CHP great, but.....
by jjaser January 31, 2007 7:57 AM PST
Home heating is perhaps the only case of extremely efficient use of fuel- a a common natural gas furnace/boiler runs well in excess of 90% efficency. The proposed system uses natural gas to create electricity not really novel, but is cool from a distributed generation perspective. However, an internal combustion engine in my basement doesn't seem to be much of a breakthrough- just packaging. Now if it gasified your garbage and junk-wood into fuel-gas and ran off that, well that would be something.
Reply to this comment
Probably the next step
by ben::zen January 31, 2007 9:00 AM PST
Well, it's not really viable right now, but soon, that should be possible. Garbage compaction and fuel production rolled into one? Intriguing idea, especially if organic plastics are developed. Right now, it takes hundreds of years for plastic bottles to decompose, but once we develop easier methods, and safer materials, the technology will become availiable.
View reply
What about power outtages?
by TV James January 31, 2007 8:06 AM PST
Does it work when the power is out? That is, if the power company that provides power to the house goes dark, will this unit, since it burns natural gas, continue to function and produce electricity?

That alone would be a huge selling point for me, being a Puget Sound Energy customer. I'm tired of the power outtages.
Reply to this comment
Backup power mode
by climateguy January 31, 2007 12:20 PM PST
As the article suggests, the system is designed to run as a backup power source in the event of a grid outage. In this mode, the system can generate 2.0 KW. This is not typically enough to supply a whole home with power, but it is enough to run some really important loads, such as your heating system, a well or sump pump, refrigerator, and some lights. Enough to protect the structure and its occupants when there is no grid power.

The advantage of this system over a larger backup only generator is that this system will pay for itself instead of sitting unused 99+% of the time.
Some questions
by IanrJ January 31, 2007 8:09 AM PST
This system uses natural gas, so how is this cost incorporated in the "savings". Yes it reduces electricity bills, but what effect does it have on gas usage versus the normal gas furnace? In short does the honda combustion engine use more or less gas than a normal gas furnace?
Also: Presumably, in winter, the Honda natural gas powered engine gets quite a work out. WHat's the life cycle of sunch and engine and what's the cost of eventual replacement?
ANother Question: What's the noise level associated with a combustion engine in the basement? I have friends with back up engines for electricity, but these are always located OUTSIDE of the house. Any issues here?
Thanks
Reply to this comment
some answers
by mlamonica January 31, 2007 8:26 AM PST
From talking the company and a customer, I can take a stab at answering some of these. It's not clear that your gas usage will go down dramatically, but the heating unit itself (separate from the power generator) is very high efficiency. Also, the generator creates heat, which means in theory the heating unit shouldn't work as hard.
Don't know about the projected life of the Honda engine but clearly heating units are designed for a long time.
The customer I spoke to said he can hear the generator working. Noise level on the order of a dish washer.
View all 2 replies
Solar Power
by bucks777 January 31, 2007 8:51 AM PST
There is another similar company using Solar Energy that rents the system so there is no large cash out lay (just a deposit)
http://www.clickaudit.com/goto/?18961 The cost is the one Biggest Problems why more people are not using this Technology and maybe they have the answer.
Reply to this comment
That solar setup is 80% less powerful
by Sparky672 January 31, 2007 9:01 AM PST
What is the physical size of Solar system that can put out 1.2 KW,
the same as this home generator?

That would be bigger than your house.

I clicked your link and found out that that solar system puts out
only 250 Watts during peak or one fifth the power of the Honda
generator in the article.
View reply
Not as much $aving for some states.
by Sparky672 January 31, 2007 9:10 AM PST
quoting article: "That's because the power generated in their
homes--about 1.2 kilowatts--offsets their monthly, grid-
delivered electricity and is subtracted from their bill. If the power
produced exceeds the electrical needs at a given moment, the
meter runs backward as power is fed back onto the grid."

This is just not true for states like Illinois where you are not
allowed to tie into the grid directly. If you want to do something
like this, the law states that you are not allowed to run your
meter backwards. You have to install a second meter to track
outgoing power separate from incoming.

Because in Illinois, they only pay back a fraction per KW-hr of
what they charge you to use a KW-hr.

In other words, if you're not home using the power you're
generating, you're not offsetting the charges on a 1 to 1 basis.
It's still great if you don't have to purchase any power but you
won't be making as much money as you would have paid them
for the same amount of power. I don't have the exact figures
but they only pay you something like 25% of what they would
have charged you for the same amount of power.

Why? They also maintain the power grid, they argue. So they
believe they are entitled to charge more for the electricity.

Illinois started deregulating this month where they have separate
line items on the bill for power and for distribution. I'm not sure
yet how this effects everything else I said.
Reply to this comment
NetMetering
by climateguy January 31, 2007 12:24 PM PST
Most states allow "Net Metering" for renewable energy technologies such as solar and wind. Many other states are adopting the same rules for Micro-CHP systems like the Climate Energy Freewatt system described in the article. Net Metering will give owners of such a system full retail credit anytime they produce more power than they can use.

The Freewatt system is not sized to be a net producer of electricity, but rather to replace a significant portion of the power that you would normally have to purchase from the grid.
View reply
Then there's the rest of us...
by jessadam January 31, 2007 9:29 AM PST
... who live in sunny climes, prefer cooling most of the year, and
would get little use of this product. Here is where solar has the
most potential. If I find the right product, I'd use it with or without
government incentives. Maybe for a change the consumer can drive
the decisions rather than industry lobbyists.
Reply to this comment
Old Idea, New Sales Pitch
by boggart January 31, 2007 9:36 AM PST
This idea has been around for nearly thirty years. The reason it has not caught on is the maths are flawed.
Even if you use free fuel like pig or chicken **** you need an expensive plant to convert it into combustible gas. And the surplus heat from the engine is nowhere near enough to heat a home.
Micro - generation, like wind power is a total non starter. They are a great profit maker for unscrupulous companies who don't care abour accuracy in their sales literature. Solar power has potential but tidal and run of river generation schemes offer the best way forward but can only work with massive public investment. So we have to abandon free market capitalism to save the world.
Which would be two steps forward at once.
BTW watch out for micro-generation based pyramid selling schemes. That' how dodgy the idea is.


http://machiavelli.blog.co.uk/main
Reply to this comment
Thomas Edison
by climateguy January 31, 2007 1:23 PM PST
Combined heat and power has been around since the very first power stations were being built. Even Thomas Edison recognized the inherent waste of producing electricity at low efficiency and throwing away the resulting heat. Typical power plants today throw away enormous amounts heat that could be better utilized.

The heat output from the engine is enough to heat a decent sized home on a moderate day, and provide more than half of the total heat required to a home during the course of the year. Remember that heating equipment is normally sized to meet the demand on the coldest day of the year, most of the time much less heat is needed.
Methane
by Too Old For IT February 2, 2007 9:37 AM PST
The city of Dayton, back around 30 years ago, tried power generation using methane from dump sites and waste treatment.

The biggest problem was that the meters, regulators and pipes rotted in weeks from the highly acidic gas.
Great Idea ....
by ruffrider44 January 31, 2007 9:37 AM PST
but hardly new .. Mechanix Illustrated(May 82) cover page .. a study done by GM .. in the article using then current technology the system would be the same as a 95% efficient furnace(common today) but todays engines/electrical systems are much more efficient... possible savings(35%) or even better. BTW the article was written by a Paul Wiessler .. i tried a Google search but all info was recent .. I too have thought of this system since reading the article .. i also have a 3KVA UPStation power backup... maybe that could be tied in to run electrical without the engine running constantly.. also hot water heat under basement floor .. Hmmmmmmm it might work, Joe
Reply to this comment
Great Idea ....
by ruffrider44 January 31, 2007 9:37 AM PST
but hardly new .. Mechanix Illustrated(May 82) cover page .. a study done by GM .. in the article using then current technology the system would be the same as a 95% efficient furnace(common today) but todays engines/electrical systems are much more efficient... possible savings(35%) or even better. BTW the article was written by a Paul Wiessler .. i tried a Google search but all info was recent .. I too have thought of this system since reading the article .. i also have a 3KVA UPStation power backup... maybe that could be tied in to run electrical without the engine running constantly.. also hot water heat under basement floor .. Hmmmmmmm it might work, Joe
Reply to this comment
How much Natural Gas does it burn, What about propane
by llapanowski January 31, 2007 9:41 AM PST
How much Natural Gas does it burn in relation to say running a high efficiency natural gas furnace?
Is there a propane model available?
Reply to this comment
Gas Usage
by climateguy January 31, 2007 1:28 PM PST
When compared to a 90%+ efficient gas furnace, the gas usage will increase modestly, approximately 5%-7%. However the resulting value of the thousands of kilowatt-hours of electrical production more than offset the cost of that additional gas.

It's important to note that most people who purchase a Freewatt system will be replacing older, much less efficient equipment and as such will see no change or even a reduction in their heating fuel usage.

The system will run on propane as well as natural gas.
Home power generation
by nmoore6676 January 31, 2007 10:17 AM PST
It sounds good, except for the feeding back to the grid. When you install a backup generator a fail safe transfer switch to isolate your system from the grid is mandatory. The rationale is that power crews restoring downed lines could be injured by an unexpectedly energized circuit. The transformer that steps down the high voltage distribution would step up the back fed power. I don't think you would be allowed to feed the power grid.
Reply to this comment
you certainly can...
by Sparky672 January 31, 2007 10:34 AM PST
You are confusing two different systems.

Two things are needed to feed power back onto the grid...

1. Permission from the power company. (and maybe a second
outgoing meter depending on your state's laws)

2. A special synchronizing switch. It's an expensive electronic
box with a switch that syncs the voltage phase of the generator
to the grid before tying it in. <<- This is your new fail-safe
device.

It's the same system you'd install with a windmill generator.

Otherwise you'd be correct. If you just plugged a regular home
generator into the grid, you blow up the generator, your panel,
and maybe something else.
View reply
Not a long term solution
by tundraboy January 31, 2007 10:44 AM PST
Do I want all my neighbors running internal combustion engines
day in and day out spewing pollution and green house gases
into the air? Naaaaah.

Do I want to pay for the infratructure to monitor all these
engines to make sure their emissions controls are being
maintatined properly? Naaaah.

We need to get away from burning fossil fuels. And this doesn't
do it.
Reply to this comment
Medium term solution
by climateguy January 31, 2007 1:37 PM PST
The natural gas driven Freewatt system has a 3-way catalytic converter that produces less emissions on a per kilowatt-hour basis than the electrical grid in aggregate. Also, because so much of the fuel energy is captured for useful purposes, the overall fuel usage is significantly lower than the combination of a power plant and heating system.

Micro-CHP represents a large step in fuel efficiency. It certainly does not eliminate the need to use fossil fuels, however it does use fossil fuels in a much more responsible and efficient way than we are doing today.

It would be great if in the blink of an eye everyone converted to solar heating and electric or if there was a breakthrough in nuclear fusion. However the reality of the near term is that people are going to be replacing their fuel burning heating systems with other fuel burning heating systems and the Freewatt system allows us all to use the fuel that we are going to be burning anyway to get the most value out of it.
Next step in power generation.
by pn235 February 1, 2007 1:53 PM PST
60% of our electrical power is generated by coal burning power plants that are the dirtiest way to produce power we have. If I can reduce that by using natural gas which is the cleanest producer of power than it seems like a good trade-off. Co-generation plants have been around for years because they make good economic sense. Not until the anti-nuke crowd sees the light(sic) will we be able to get away from fossil fuel generated power.
But on a positive note . . .
by tundraboy January 31, 2007 10:53 AM PST
How about if you replace that Honda engine with a fuel cell that
runs on natural gas?
Reply to this comment
because...
by Sparky672 January 31, 2007 11:20 AM PST
quoting: "How about if you replace that Honda engine with a fuel
cell that runs on natural gas?"

Probably because instead of $13,000 for a 1.2 KW device, you'd
be paying several times more for a fuel cell of that size. That
makes this technology impractical for the average home at this
time.

When you compare KW to size, nothing yet comes close to the
practicality of just rotating the shaft of a conventional generator.

Even wind-power which uses the exact same type of generators
are not practical when you compare the size of blades required
to generate the same rotational forces as super-heated steam or
hydro-electric turbines.
What about methane?
by El Kabong January 31, 2007 12:59 PM PST
Any chance the Honda could run using fumes from a farm, landfill, or sewage plant?
Reply to this comment
Heat house with appliances
by dmm January 31, 2007 2:20 PM PST
My kids like to leave on the TV, the PCs, the lights, etc., which of course generates a lot of waste heat. In the winter I don't mind so much, since it just means I'm heating the house with electricity instead of the gas furnace (so it's slightly more expensive). But in the summer....AAAARRRGH!!! TURN OFF THE $#%@!* LIGHTS!
Reply to this comment
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