US DOE announces $40 million to be awarded for three CHP R&D, demonstration projects

In Washington, the US Department of Energy announced a Funding Opportunity for up to $40 million in research, development and demonstration of combined heat and power (CHP) systems. Combined Heat and Power technologies—those that co-produce heat and electricity – and District Energy Systems can achieve efficiencies of 80% or better compared to roughly 45% for conventional heat and power production.

Waste recovery systems have the potential to save 17 gigawatts of energy nationwide annually. DOE will provide up to 50% of these cost-shared awards.

The DOE solicitation will seek applications for funding of R&D and demonstration of stationary CHP systems at three power levels. The first level covers “large” systems with greater than 20 MW of electricity output. This area has an estimated total budget of $30 million—$15 million from the DOE. Area 2 has an estimated total budget of $30 million—$15 million in federal funding and covers “medium” size systems between 1 MW and 20 MW. Area 3 has an estimated budget of $20 million—$10 million in DOE cost-share—and covers “small” size systems smaller than 1 MW.

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