Combined heat and power (CHP) systems are gaining popularity because they allow users to substantially reduce electricity and heating costs. The result is achieved by adding electricity-generating devices such as a gas turbine, free piston Sterling engine, thermoelectric module, and even a steam generator into conventional heating systems.

 

In 2019, the average efficiency of natural gas power in the US was [3,412/7,822], i.e around 44%, and that of coal power, about 32%. This means that 56% and 68% of the thermal energy of burned natural gas or coal were wasted. In CHP, almost all thermal energy of combusted natural gas, which is not converted to electricity, is delivered to a boiler and is used for actual heating. Also, virtually none of CHP's power is wasted during transmission and distribution contrary to conventional grid power, where around 5% of generated power is wasted that way. 

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AG-Cycle will make residential, commercial, or industrial CHP systems 2.5 more efficient. It is enough to substitute CHP's authentic burner gun with AG-Burner to attain the result. Regarding CHPs utilizing conventional, internally fired micro gas turbine generators, the most straightforward solution is to modify the conventional, internally fired gas turbine to its externally fired modification by substituting the gas turbine's original burner with a high-temperature heat exchanger. Alternatively, AG-burner may be retrofitted into an internally fired gas turbine. Still, such an option is expected to incur substantial R&D expenses, which doesn't make much sense because the weight of most stationary CHP systems is usually not important.    

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Several companies currently either manufacture or develop CHP systems or their components. For example, Micro Turbine Technology B.V. manufactures residential and commercial CHPs utilizing a 3 kW gas-turbine generator. Samad Power produces CHP based on a 3 kW gas turbine. Microgen Engine Corporation manufactures a 1 kW Stirling engine for several CHP manufacturers. Qnergy manufactures a 7 kW Stirling engine for CHP and other applications with a claimed efficiency of 30%. Smarter Alloys is testing a waste heat engine based on shape memory alloy technology.

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It is important to stress that oil and natural gas manufactures are proponents of CHP solutions for individual households because CHPs enable manufacturers to get a direct access to consumers by supplying them with natural gas and heating oil for electricity production. That is the smart strategy to recoup for the demand reduction which the industry undergoes due to the proliferation of electric vehicles. This strategy benefits both sides, the companies and households.