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ASME PTC 46 • EPA CHP Partnership • Section 48 ITC High-Efficiency Cogeneration Engine

Commercial Combined Heat & Power (CHP) Microturbine & HRSG Sizer

Model commercial and campus microturbine cogeneration systems paired with Heat Recovery Steam Generators (HRSG) or hydronic recovery exchangers. Compute net electric generation, high-temperature exhaust heat recovery (15–150 psig steam or 180°F hydronic hot water), overall system efficiency (75%–85%), spark spread economics, avoided grid carbon, and Section 48 ITC tax credit yields.

Microturbine & Fuel Parameters

Engine Specs
500 kW
100 kW (Micro) 1,000 kW (1 MW) 2,000 kW (2 MW)
30.0%
24% (Unrecuperated) 30% (Recuperated Standard) 36% (Advanced)
8,000 hrs (91%)
2,000 hrs (Peak Shaving) 6,500 hrs (1-Shift) 8,760 hrs (Continuous 24/7)

HRSG & Heat Recovery Specs

Thermal Side
78%
80%

Utility Tariffs & Section 48 ITC

Economics

Live Microturbine & HRSG Thermodynamic Flow

● REAL-TIME COMBINED CYCLE
Air/Fuel Combustion → Microturbine Expansion → Power Generator Exhaust Flue Gas → HRSG Steam / Hot Water Tube Bundle
Annual Electric 4.00 GWh On-site generated
HRSG Heat Recov 2,850 lb/hr 2.75 MMBtu/hr
Total Efficiency 79.2% EPA High CHP
Net Annual Savings $385,400 Payback: 3.6 yrs

Cogeneration Thermodynamic & Life-Cycle Financial Audit ASHRAE 90.1 • 20-Year Horizon

Turbine Fuel Input Rate (HHV): 5.69 MMBtu/hr
HRSG Exhaust Heat Recovery Rate: 2.80 MMBtu/hr (81 Boiler HP)
Displaced Natural Gas in Standalone Boiler: 28,000 MMBtu/year
Avoided Electricity Utility Purchases: $720,000 / year
Displaced Boiler Thermal Fuel Value: $210,000 / year
Incremental Microturbine Fuel Cost: -$341,400 / year
Turbine Maintenance & Overhaul Reserve ($0.02/kWh): -$80,000 / year
Gross Project CapEx & Net Section 48 ITC Cost: $1,400,000 Gross → $840,000 Net (40% ITC)
Net Scope 1 & 2 GHG Emission Reduction: -1,240 Metric Tonnes CO2e/yr
20-Year Cumulative Net Present Value (NPV @ 7%): $3,245,000 (IRR: 44.5%)
Section 48 ITC Cogeneration Eligibility Standard

Combined Heat and Power (CHP) property qualifies for Section 48 Investment Tax Credits under IRC § 48(a)(3)(A)(v) if the system produces at least 20% of its total useful energy in electrical form and at least 20% in useful thermal form, with a total system efficiency exceeding 60%. With our microturbine + HRSG configuration running at 75%–85% total efficiency, the project fully qualifies for the 30% base ITC plus potential 10% Energy Community and 10% Domestic Content bonuses.