Erving Paper Mills: Cogeneration Economic Feasibility Study
ETE was retained by a paper mill in central Massachusetts that was studying the replacement of its boiler with a cogeneration system fueled primarily with Compressed Natural Gas (CNG). ETE modeled several potential future price scenarios for input natural gas prices, retail electricity prices, and revenues from the sale of MA Alternative Energy Credits (AECs). The analysis also reviewed the benefit of dual fuel capabilities in the turbine as well as the ability to burn propane in the duct burner. These scenarios helped frame the potential spark spread from cogeneration as well as the benefit of tri-fuel capabilities for additional fuel security and price stability. After extensive study, Erving moved ahead with the construction of a cogeneration system with the capability to run in island mode.
ETE assisted Erving in its contract negotiation with the CNG supplier by providing rigorous analysis of wholesale natural gas spot price trends at CNG take stations to devise strategies to limit exposure to price spikes due to winter pipeline constraints in New England. ETE also used publicly available information to estimate the non-fuel costs of CNG delivery.
