Combined heat and power (CHP) systems are gaining popularity because they allow users to substantially reduce cost of electricity and heating. 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 system.

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, around 32%. This means that 56% and 68% of thermal energy of burned natural gas or coal, accordingly, 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 any residential, commercial, or industrial CHP systems 2.5 more efficient. To attain the result it is enough to substitute CHP’s authentic burner gun with AG-Burner. Regarding CHPs utilizing conventional, internally fired micro gas turbine generators, the most straightforward solution is to modify conventional, internally fired gas turbine to its externally fired modification by substituting gas turbine’s original burner with a high-temperature heat exchanger. Alternatively, AG-burner may be retrofitted into a internally fired gas turbine, but such an option is expected to incur substantial R&D expenses, which might not make sense doing, because weight of most stationary CHP systems is usually not important.

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Several companies are currently either manufacture, or develop CHP systems or their components. For example, Micro Turbine Technology B.V. manufactures residential and commercial CHPs utilizing 3 kW gas-turbine generator. Samad Power produces CHP based on 3 kW gas turbine. Microgen Engine Corporation manufactures 1 kW Stirling engine for several CHP manufactures. Qnergy produces 7 kW Stirling engine for CHP and other applications with claimed efficiency of 30%. Smarter Alloys is currently testing a waste heat engine based on shape memory alloys 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 the manufactures getting a direct access to consumers by supplying to them natural gas and heating oil for electricity production. That is the smart strategy to recoup for demand reduction the industry undergoes due to proliferation of electric vehicles. This strategy benefits both sides, the companies and households.