Congress Promotes Waste Heat Recovery With A 26% Federal Investment Tax Credit
After years of lobbying, the waste heat to power industry achieved a very important milestone through a national waste heat recovery incentive which is sure to lead to some big green energy changes in the near future.
On December 21, 2020, the United States congress approved the Consolidated Appropriations Act, 2021. The recently adopted act includes a 26% investment tax credit (ITC) for “Waste Energy Recovery Property.” While combined heat and power (CHP) has previously received support through various incentives, this is the first nationally supported incentive for installing waste heat to power (WHP) technology.
Since the introduction of renewable energy technologies such as solar and wind, investment tax credits have been successfully used to speed up development by lowering costs. With the recently passed Consolidated Appropriations Act, operators looking to implement waste heat recovery technologies will be able to do so with the help of an attractive ITC.
This opens up opportunities across the nation in all industries from metal manufacturing and pharmaceutical production to wastewater treatment and oil refining. Simply said, this was a big step toward achieving important sustainable and energy efficiency milestones in the United States.
In the United States, nearly 70% of applied energy is lost due to various inefficiencies, this lost energy is commonly referred to as waste heat. Traditionally, this heat was not at high enough temperatures to be economical for power generation. However, with recent advancements in WHP technology heat sources as low as 140°F can be used to generate power. Not only can this waste heat be harnessed to generate emission-free power, but the ORC (Organic Rankine Cycle) process used to convert this heat into power comes with several other benefits, a few can be found here.
With the adoption of Consolidated Appropriates Act, 2021 – ElectraTherm is well positioned to lead the waste heat to power movement with our simple and reliable ORC solutions that just became even more practical. If your processes generate heat greater than 140°F, then there’s an opportunity that you can leverage a waste heat recovery system to generate profitable power at only 74% of what it would have cost you just a month ago.
Pair this with an already attractive payback period and you could see a return on your investment in as little as 2-3 years. Plus, our product’s 20-year design life grants you a significant income stream for decades to come.
To see if your project is covered, please reach out to a member of our sales team here.
“Waste energy recovery property” is defined as any property that “generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity.”
This ITC applies to projects with a capacity limit of 50 MW and that commence construction between January 1, 2021 and December 31, 2023. Projects that commence construction in 2021 and 2022 are eligible for a 26% credit while those that commence construction in 2023 are eligible for a 22% credit.
For a full list the latest state and federal incentives and rebates visit the Database of State Incentives for Renewables & Efficiency (DSIRE).
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ElectraTherm by BITZER Group provides world-class waste heat recovery solutions by utilizing the Organic Rankine Cycle along with proprietary technologies to convert low-temperature heat into clean power. ElectraTherm’s simple and effective solutions generate clean electricity, boost efficiency, reduce energy costs, and decrease emissions – with no additional fuel consumption or change to existing processes.
The combined advantage of ElectraTherm’s engineering along with the value of being supported by BITZER, the world’s largest independent manufacturer of refrigeration compressors which boasts close to 3,500 global employees and average annual sales approaching $1 billion, allows the ElectraTherm team to dedicate all their energy to the advancement of waste heat recovery technology in the marketplace.
ElectraTherm’s Power+ Generator turns waste heat into usable thermal and clean electricity while offseting the cooling load. The Active Cooler acts as a cooling to power generator, using the same cycle to provide zero power cooling with the ability to generate power, it is the only cooler of it’s kind in the world. Both of ElectraTherm’s solutions reduce emissions and energy costs while providing a baseload power / cooling supply. Taking advantage of waste heat is not only profitable, but practical. Allowing companies to benefit from a more circular economy while achieving sustainability goals.
To learn more about ElectraTherm, click here.