In rural and small-town South Africa, many agribusinesses and food & beverage manufacturers continue to rely on aging coal-fired boilers for steam generation and an unreliable, coal-heavy, and an often-constrained local grid for electricity. These traditional energy systems once considered the backbone of South Africa's industrial economy, now present major financial and environmental challenges.
Volatile coal prices, diminishing coal quality, aging boilers, recurring and unpredictable electricity outages, and the increasing pressure to reduce carbon emissions, especially for exporters, are forcing businesses to find cleaner, more efficient energy solutions. One such solution is Combined Heat and Power (CHP) using Guascor Energy gas engines fueled by LPG, a technology that offers significant efficiency gains, cost savings, and energy security.
The efficiency of LPG-based CHP lies in its ability to both generate electricity and recover heat for productive use. Unlike coal boilers that convert only around 50% of their fuel into steam, or Eskom’s coal-fired power stations that operate at just 30-35% efficiency, CHP systems can achieve over 85% total efficiency. This is because Guascor gas engines can capture and utilize the heat that would otherwise be lost, making them a far more effective means of energy conversion.
For businesses that require both electricity and thermal energy for both heating and cooling, such as dairy processors, abattoirs, wine cellars, feed mills and fruit & vegetable cold rooms and packhouses, this dual benefit translates into significant operational advantages.
One of the most immediate advantages of switching to LPG-based CHP is the replacement of outdated coal boilers and the unreliable power supply from the local grid. The South African power grid, which relies very heavily on coal, suffers from high carbon emissions and frequent outages and load reduction, which disrupts operations and forces businesses to rely on costly and inefficient diesel generators.
By using LPG-based CHP, businesses can produce their own reliable power while simultaneously generating steam or hot water for production processes, with the added advantage of using absorption chillers to convert waste heat into cooling for refrigeration. This not only enhances energy independence but also reduces reliance on expensive and polluting backup systems.
Rural abattoirs provide a clear example of how LPG-based CHP can transform industrial energy use. Meat processing facilities require substantial amounts of both hot water and refrigeration, making them well-suited to the advantages of CHP. Guascor gas engines, fueled by LPG, can supply the electricity needed for processing and cooling while simultaneously providing hot water for sterilization and cleaning, eliminating the need for coal boilers. Similarly, wine cellars and distilleries, which require both heat for distillation and cooling for fermentation, can leverage CHP’s waste heat recovery to power absorption chillers, further reducing electricity demand. By integrating LPG-based CHP, these industries can significantly lower operational costs while ensuring more sustainable energy consumption.
The improved availability of LPG in South Africa adds to the viability of CHP as a practical alternative to coal and diesel. Unlike other alternative energy sources that may be difficult to source in rural areas, LPG is now widely available and offers better quality and more stable pricing than coal. It burns cleaner, producing up to 70% lower carbon emissions than coal and significantly reducing particulate emissions and maintenance costs associated with soot, ash, and Sulphur buildup in boilers. This transition not only benefits individual businesses but also contributes to broader efforts to reduce reliance on low quality coal and move towards cleaner energy solutions.
For agribusinesses that operate seasonally, such as export fruit packhouses and associated cold storage facilities, LPG-based CHP provides additional benefits over other energy options. Unlike solar PV with battery storage, which requires a consistent year-round energy demand to justify the high initial investment, LPG-based CHP can be used flexibly. Businesses can scale power production according to their needs, running the system at full capacity during peak harvest and processing months while reducing usage during off-seasons. This ability to adapt energy generation to operational requirements makes CHP a particularly attractive option for industries with fluctuating demand.
The scalability of Guascor Energy gas engines further supports the adoption of LPG CHP across a range of agribusinesses. With engine capacities ranging from 180kW to 2MW, these systems can be tailored to fit operations of varied sizes, from small dairy and meat processors to large-scale food manufacturing plants. This flexibility allows businesses to optimize their energy generation and avoid the inefficiencies of over- or under-sizing power systems. It also means that businesses can gradually expand their CHP capacity as their energy needs grow, providing an energy solution that evolves with operational demands.
Comparing LPG-based CHP to alternatives highlights its advantages in specific applications. While solar PV with battery storage is an excellent option for businesses with consistent, year-round electricity demand, it might not be as well-suited for operations that require on-demand steam or highly seasonal energy use. The efficiency of CHP in converting fuel to both electricity and heat makes it a superior choice for businesses that need thermal energy alongside power.
The transition from coal-fired energy systems to LPG-based CHP is not just an environmental imperative but also a smart economic decision. By eliminating outdated coal boilers and unreliable grid electricity, agribusinesses and food & beverage manufacturers can significantly reduce energy costs and improve operational efficiency. With the availability of LPG and the high efficiency of Guascor gas engines, CHP offers a practical solution that meets the specific needs of rural industries. As businesses look to future-proofing their operations, investing in LPG-based CHP is a crucial step towards energy security, cost efficiency, and sustainability.
To learn more about how LPG-based CHP can transform your agribusiness, contact us today for expert guidance or read our latest article on our partnership with Guascor Energy and how their advanced gas engines are driving sustainable energy solutions.
