Coal, Reciprocating Engines

Vericor Power Systems signs agreement to offer ENER-G reciprocating engine-based CHP systems

MILAN, Italy, June 25, 2002 — Vericor Power Systems has signed a memorandum of agreement with ENER-G PLC, Manchester, England, whereby Vericor will now offer ENER-G’s Combined Heat and Power (CHP) systems based on reciprocating engines. The MOA primarily covers the United States power market, Vericor reported.

“This relationship will enable Vericor to expand from our current aeroderivative gas turbine-based OnsitePower™ solutions in the 0.5- to 3.5-megawatt range to include ENER-G’s Combined Power CHP systems,” said Thomas Bray, President and General Manager of Vericor Power Systems. “Both types of systems are ideal for a variety of customer sites similar to those ENER-G has installed in Europe with industrial companies, hospitals, fitness centers, universities, hotels and office complexes.”

“In fact, the OnsitePower and Combined Power CHP systems nicely complement each other. For example, ENER-G’s reciprocating engine systems are most useful for commercial installations, such as hotel or office campuses, where electricity as well as hot/chilled water is required. Our aeroderivative gas turbine-based systems are best suited for industrial companies who require power and steam. Vericor will work with customers to determine which type of system will best meet their requirements,” Bray added.

ENER-G has long-standing relationships with several leading manufacturers of natural gas spark-ignition reciprocating engines and can provide an optimized solution for each requirement. This equipment is the basis for ENER-G’s CHP systems for applications in the 100-kilowatt to multiple 1-megawatt range.

“ENER-G’s Combined Power CHP systems have been developed and proven over 20 years, more than 600 units installed throughout Europe and over 3,000 years of cumulative operating experience,” said Andrew MacLellan, Director of ENER-G.

“Our approach to CHP installations is unique. We optimize our systems for the lowest life cycle cost through use of only the most reliable equipment components. We combine this expertise with our 24/7 service programs based on unique in-house information technology, thereby offering customers in the United States the highest value and competitive utility rates,” noted MacLellan.

Installation is simple since all ENER-G Combined Power CHP systems are delivered fully packaged with the controls, heat recovery and engine contained within an acoustic enclosure. ENER-G’s third generation on-board Distributed Intellect (DI) control system constantly monitors and manages the generator, 24-hours-a-day, year-round, and is programmed to optimize its operation to suit the demands of each site.

ENER-G’s preventive maintenance approach is simple and is designed to eliminate unplanned interruptions. This is accomplished by automatic daily checks via the DI system which communicates with ENER-G’s command center to upload recorded operating data and, in the event of a problem, it will take appropriate corrective action. Before traveling to a site, ENER-G’s technician can communicate with the system to assess the problem in more detail and, whenever possible, correct and restore the unit remotely.

OnsitePower™

With a more diversified product line, customers can expect greater flexibility and the ability to select the best overall solution from Vericor to meet their energy needs. Vericor will make available its OnsitePower gas turbine and ENER-G CHP reciprocating systems via direct sale, Build-Own-Operate or Turnkey arrangements.

Vericor’s environmentally friendly OnsitePower systems bring power, steam, and hot or chilled water to an industrial or commercial site. The Turnkey solution allows the customer to remain the owner while Vericor handles the complete turnkey project development.

Several customers who have selected Vericor’s OnsitePower solutions include:

* SierraPine, a fiberboard producer, uses two VPS3 gas turbine-generator sets to generate power and heat at a 6-megawatt cogeneration plant on the grounds of its Medford, Ore. manufacturing facility.
* Vericor provided a Turnkey solution that included a VPS3 generator set and a heat recovery steam generator for a 3-megawatt cogeneration facility in Fernley, Nev. The power plant provides power and steam to Quebecor World, Inc., the world’s largest printer and a leading publisher of books, magazines and catalogs.

ENER-G Options

Users have two choices with ENER-G’s onsite cogeneration systems. A system can be purchased with ENER-G’s comprehensive operation and maintenance service agreement provided under a long-term contract. Or users can opt for ENER-G’s Discount Energy Purchase (DEP) service and reap the rewards of improved supplies with lower energy bills.

With DEP, ENER-G funds the installation, taking on all the capital and running costs. Users don’t have to divert capital or take technical or operating risk. Instead a fixed rate is paid for the energy supplied.

The following customers opted for ENER-G’s DEP solution. Electricity generated by the CHP system is sold to each customer, heat generated is made available without charge and all costs of the installation operation are borne by ENER-G:

* David Lloyd Leisure Clubs, one of the U.K.’s leading leisure groups, has ENER-G CHP systems installed at 34 locations. These systems have helped David Lloyd save more than £190,000 in energy costs.
* Shrigley Hall Hotel sits at the edge of the Peak District National Park in the U.K. Cheshire countryside. With little internal space available, ENER-G’s was able to design and install a CHP system that was in keeping with the building’s historic country-mansion style.

ENER-G is a distributed power generation company headquartered in Manchester, England. ENER-G provides clean energy initiatives and visible benefits to the environment. Projects are developed close to the user or onsite for greatest efficiency. Total capacity of ENER-G projects has passed the 100-megawatt mark at the turn of the century – enough to serve 250,000 homes. Unique ideas, advanced technology and investment in research and development are key to the company’s success. Visit ENER-G online at www.energ.co.uk.

Vericor Power Systems LLC, located in Atlanta, Ga., was founded by Honeywell International, Inc. and MTU Aero Engines, GmbH. Vericor markets, sells and supports marine and industrial gas turbines as well as OnsitePower™ turnkey systems and services. Vericor leverages Honeywell and MTU engine technologies, which have been acquired over 50 years and proven by several thousand engines in service recently. Visit Vericor Power Systems on the worldwide web at www.vericor.com.