By About Northern Power Systems. Northern Power Systems designs, builds, and installs highly reliable, state-of-the-art power solutions for industrial, commercial, government, and not-for-profit customers using a full range of thoroughly tested technolog
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The advanced 1-megawatt system - believed to be the first of its kind in California - will produce basic and standby electricity to run the bottling lines, as well as hot water for Pokka's pasteurization processes. The new on-site power system for the bottling facility, which is located approximately 50 miles from San Francisco in Marin County, is expected to pay for itself in energy savings in approximately two years.
The turnkey cogeneration system consists of a natural gas-fired generator and a sophisticated heat recovery process, to convert waste heat from electricity generation equipment and exhaust into the hot water necessary for pasteurization. The system, scheduled for installation in August, will deliver approximately 70% of Pokka's electricity and 30% of its hot water needs. It will also include advanced power electronics and controls designed to protect the bottler's automated production lines from utility blackouts, and other power failures or disruptions.
Northern said that, once the system is fully operational, this advanced cogeneration system will reduce Pokka's annual energy bill by over $800,000.
These savings more than offset the large increase in power-related costs that resulted from last summer's energy crisis in California. The system is expected to produce electricity at an average cost of 6 cents per kilowatt-hour, compared to current utility rates of close to 15 cents per kilowatt-hour. By recovering the waste heat from the generator, and using it to produce hot water, the system will also reduce the facility's boiler gas bill by 25%. In addition, the cogeneration system will contribute to savings by minimizing plant downtime and product spoilage resulting from utility power outages.
Northern's cogeneration power system for Pokka is also considered a "green" system. In recovering waste heat, the system's overall fuel efficiency rises to more than 75%, compared to typical efficiencies of 30-35% from utility-produced power. Such increased efficiency thus reduces greenhouse gas emissions by up to 45%. These higher fuel efficiencies also qualify Pokka's new system for a $600,000 incentive rebate from the Self-Generation Incentive Program of the California Public Utility Commission (CPUC). This program was put in place in 2001 to encourage on-site generation to reduce peak demand and avoid rolling blackouts such as those experienced during the state's most recent energy crisis. For Pokka, the $600,000 CPUC incentive rebate reduces its capital investment by 30% and lowers the installation's payback to about two years.
Pokka selected Northern, a leader in distributed, alternative and renewable power systems, to build this innovative system to ensure that its plant stays up and running 24/7, in light of continuing uncertainties over the availability and reliability of utility power. In the last two years, Pokka has experienced 24 utility power outages and disruptions, including a six-hour power failure in March of this year. Such power outages result in lost output, product spoilage, supply chain scheduling disruptions, and employee safety concerns.
Northern Power's advanced control system will protect Pokka's lines from most if not all of these outages and their related costs. In normal operation, the system will run in tandem with the utility grid to supply power to the plant. In the event of an outage, the control system will seamlessly transfer the plant's critical operations from the utility to the on-site generation system. By isolating the plant's critical operations from the utility grid, Northern's system will keep Pokka's main operating capabilities up and running - without interruption - right through a grid failure.
"While we want to believe that the energy situation of the past two years was an aberration," said Dan Hancock, Pokka USA's vice president of operations, "we cannot run our business on such hope. The power losses - both in past years and as recently as just last month - dramatized for us the critical need to implement a plan for ensuring reliable, quality power at stable and reasonable prices. Northern's system will ensure that these needs are met, making it an extremely sound investment, a necessary step in maintaining the quality of our products and a good example of how Pokka's commitment to being 'green' can also be cost-effective."
Jito Coleman, president and CEO of Northern, stated, "We are fortunate to work with a company whose people not only recognize the importance of power reliability for business security, but can also appreciate the growing need to be environmentally conscious. All of us at Northern are happy to help Pokka reach its goals through the turnkey design and installation of this innovative cogeneration system."
About Pokka USA. Pokka USA is a contract bottling facility owned by Pokka Corp., a Japanese food and beverage company.