Economic Synergies Between Stranded Natural Gas and Cryptocurrency Mining
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What is Stranded Gas?

Stranded gas is natural gas that is located in a remote location where there is no existing infrastructure to transport the gas to a market. In many cases, stranded gas is either vented or flared, which is not only wasteful but also harmful to the environment (methane is one of the most potent GHGs with a global warming potential that is estimated to be more than 20 times greater than that of carbon dioxide over a 100-year time horizon).

One potential solution to this problem is to use the stranded gas to create electrical power. This is done by using the natural gas as the fuel for a reciprocating engine-based generator. The electricity produced can then be fed into the power grid or it could be consumed locally.

With stranded gas, it is quite probable that the site is remote enough that it is not economical to get the electricity to the grid. Therefore, the electricity needs to be consumed locally.

There are probably infinite number of uses for locally generated power (e.g., power the oilfield equipment running the site, power a greenhouse, power an industrial site, powering a car charging station, etc.) but one of the solutions that Collicutt has developed recently centers around cryptocurrency mining.

Challenges

Cryptocurrency mining uses a lot of electrical power and it usually gets this power from the local electrical grid. This can be challenging for a few major reasons:

  1. Grid power can be very costly for the mining companies
  2. It can add “unnecessary” load to the power grid which may be straining to fulfill demand (depending on the location and time of the year)
  3. The grid power may be relying on fossil fuels like coal to create their power which only exacerbates GHG emissions and other pollutants

Collicutt’s Solution

Working with a few of our customers, Collicutt has developed a power generation solution for crypto mining companies. As part of this process, we:

  1. Determine the electrical load requirements for the crypto mining operation
  2. Evaluate the gas composition of the stranded gas
  3. Design a custom tuned reciprocating engine and generator based on these parameters
  4. Containerize the solution to protect it from the elements and from vandalization
  5. Provide a remote monitoring solution so the system can be monitored via the web
  6. Provide lifecycle maintenance and support for the system

Take Action

The resulting solutions provide a more economical power source for crypto mining enterprises that concurrently reduce greenhouse gas emissions from methane, reduce GHG and other pollutants from grid power, and reduce overall grid power requirements.

If you and your team are looking to either more effectively use your stranded natural gas or for a more economical and environmentally friendly power source for your crypto mining system, this approach may offer a viable solution.

 

For more information on this or any other power generation solution, contact us via email or at the number below:

888.682.6888 or info@collicutt.com

 

For more News, click HERE.

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Challenges of Green Power Microgrids
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The transition to green power sources such as solar and wind energy is becoming increasingly important as the world works to reduce its dependence on fossil fuels and mitigate the impacts of climate change. However, the integration of green power into microgrids, can be challenging. In this article, we will discuss some of the challenges of green power and why traditional power generators are still required to ensure a stable microgrid solution.

Challenge #1: Intermittency

Green power can’t always guarantee continuous power. For example, solar and wind power, are dependent on weather conditions, and their output can fluctuate greatly. This can make it difficult to predict and match the power demand of the microgrid, leading to power outages and a lack of reliability.

One of the ways to overcome this challenge is through energy storage solutions such as batteries. Batteries can store excess energy when it is available and release it when it is needed. However, this brings its own set of challenges. Current energy storage technologies are still relatively expensive, and the cost of energy storage is still a barrier to adoption.

Challenge #2: Low-Capacity Factor

The capacity factor is a measure of how much of a power plant’s potential power generation is actually used. For example, a power plant with a capacity factor of 50% means that it is only generating power for half of the time. Green power sources such as solar and wind have relatively low-capacity factors because they rely on weather conditions, which can greatly affect their output. This can make it difficult to depend on green power as the primary source of energy in a microgrid. With this, additional traditional power generators are required to ensure a stable microgrid solution.

Challenge #3: Cost

The cost of green power, particularly wind and solar, has been decreasing significantly in recent years, however, it is still more expensive than traditional power generation for two reasons:

  1. Low capacity factor: E.g. a 5MW solar farm may have a capacity factor 30-40%, meaning 60-70% of the time, the plant may be generating little to no power.
  2. There needs to be a backup power, or energy storage, solution for the low capacity hours increasing the overall cost of green power.

The microgrid design needs to be optimized to balance the green power supply with traditional power supply while keeping the overall cost as low as possible. The cost-effectiveness of a microgrid will depend on the specific conditions and requirements of the microgrid, and it is important to work with experts to evaluate the various options and find the most cost-effective solution.

Overcoming These Challenges

To overcome these challenges and ensure a stable microgrid solution, traditional power generators such as natural gas and diesel generators can be used to supplement the power generated by green power sources. These traditional power generators can provide a reliable and consistent source of power, which can help balance out the fluctuations in power output from green power sources. Additionally, these traditional generators are usually able to respond quickly to changes in power demand and can act as a backup power source if the green power sources are not able to meet the demand. These traditional sources of power can also be used to reduce a company’s environmental impact if fuel blending with biogas is used for the natural gas generator or HVO is used for the diesel generator.

Biogas and Fuel Blending
  • One of the main benefits of fuel blending is that it allows for the reduction of greenhouse gas emissions. Biogas, which is produced from the decomposition of organic matter, is a renewable source of energy that is considered to be carbon neutral. When it is blended with natural gas, which is a fossil fuel, the overall carbon footprint of the fuel is reduced. This can be particularly beneficial for organizations that are looking to reduce their environmental impact and meet sustainability goals.
HVO, or Hydrotreated Vegetable Oil
  • This is a renewable diesel fuel that offers a number of benefits when compared to traditional diesel fuel. It is made from biomass sources such as vegetable oils and animal fats, and can be used in any diesel engine without modification. HVO produces significantly less emissions than diesel fuel, including fewer greenhouse gases and particulate matter. Additionally, it has a higher cetane number than regular diesel, resulting in improved engine performance and fuel economy. It also has a lower sulfur content which is a beneficial for maintenance of vehicles. Overall, using HVO as a diesel fuel alternative can lead to a more sustainable and efficient transportation system.

Conclusion

While green power sources offer some environmental benefits, their integration into microgrids can be challenging due to their intermittency and low capacity factor. Traditional power generators, such as natural gas and diesel generators, may still be required to ensure a stable microgrid solution. However, cost needs to be carefully considered when integrating the two sources together. Traditional power generators can provide a reliable and consistent source of power, which can help to balance out the fluctuations in power output from green power sources. As previously mentioned, it’s important for organizations to work with experts to evaluate the options and find the most cost-effective and stable microgrid solution.

Learn more about Microgrids HERE.

 

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Microgrid Control Systems
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What is a Microgrid?

A microgrid is a localized group of electricity sources and loads that can operate independently of the traditional centralized power grid. They can include a variety of different power sources and can even integrate renewable energy resources into the grid.

Some of these power sources include:

  • Solar arrays
  • Wind turbines
  • Fuel cells
  • Hydrogen powered generators
  • Batteries, etc.

Microgrids are becoming increasingly popular as they offer several benefits.

 

 

Benefits

  • Increased energy efficiency
  • Improved reliability (removing yourself from inherently unstable and expensive utility power grid)
  • Reduced carbon footprint

Because of the complexity of managing all of the power sources on the microgrid and ensuring they work seamlessly, one of the key elements of a microgrid is its control system. This control system is responsible for managing the flow of electricity between different generation sources and loads.

Once of the most widely used control systems for microgrids is the microgrid controller (MGC). This is a specialized computer system that monitors and controls the microgrid’s operations. The MGC uses advanced algorithms and control strategies to optimize the performance of the microgrid. It also ensures that it meets the energy needs of the loads while also providing grid support services.

Collicutt Energy Services (Collicutt), is a leading provider of microgrid control solutions that leverage the advanced MTU Onsite Energy products. Our microgrid control solutions are designed to provide our customer with a high level of control, flexibility and reliability. Our team of experts uses state-of-the-art technology and advanced algorithms to optimize the performance of the microgrid to ensure that it meets the energy needs of the loads, while also providing grid support services.

One of the key advantages of our microgrid control solutions is that they are based on the MTU Onsite Energy products, which are known for their reliability, efficiency, and flexibility. MTU Onsite Energy products are designed to meet the highest standards of performance and are certified for use in a wide range of applications.

In addition to microgrid control, Collicutt also offers a wide range of services to support our customers including sales, services, parts and rentals. Our knowledgeable and experienced team is available to assist you in every step of your microgrid project, from concept to commissioning and beyond.

Conclusion

A microgrid control system solution is a critical component of a microgrid system and Collicutt provides reliable, efficient and flexible microgrid control solutions using MTU Onsite Energy products. Our solutions are designed to provide high level of control and flexibility which enables the microgrid to optimize its performance and provide grid support services. Our team is always available to assist in every step.

 

Want to learn more? Read about some of the challenges of green microgrids here.

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Post-Secondary Institution Project
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Background

Red Deer Polytechnic is a post-secondary institution located in Red Deer, Alberta that has been in operation since 1964.

Red Deer Polytechnic installed a 1MW CHP to reduce their utility costs, while reducing their carbon footprint as well.

 

Combined heat and power (CHP) is the simultaneous generation of power and heat from a single fuel source, allowing system efficiencies of up to 93%.

 

Company Name: Red Deer Polytechnic

Building Type: Post-Secondary Institution

Location: Red Deer, Alberta

Power System Installed: 1MW CHP System

 

 

The Solution

Collicutt Energy was hired to design and build the 1MW CHP system that was then installed in the building in 2018.

  • This unit helps lower the institution’s utility costs. Thermal energy is captured from the engine jacket water and the engine exhaust.
  • The unit produces 1,007kW of electricity and as much as 1,054kW of thermal energy. When all heat is consumed the grid intensity of power generated is 0.24kg/kWh, 55% less than current average Alberta grid intensity.

System Sizing

The system size was determined based on the baseline electrical and thermal load.

This ensured that all the electricity and as much of the heat produced would be effectively utilized by the building.

System Manufacturing

Once Collicutt completed the engineering and design, the CHP system was manufactured at Collicutt’s 80,000ft2 facility in Red Deer.

A walk-in style enclosure was selected allowing routine maintenance and inspection to be conducted comfortably even in outside conditions as low as -40⁰C.

 

The plant has been running for 3 years and just recently had a top end overhaul completed.

 

Check out another case study about how we helped a recreation center lower the building’s carbon footprint HERE.

Check out our LinkedIn page for daily posts.

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California Faces Multiple Increased Risks for Power Outages
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The state of California is known to be near, if not at the top of the list when it comes to most power outages in the United States. The most common causes of California power outages are related to extreme weather. California is prone to extreme heat, droughts, winds and deadly wildfires and this year is no exception as this extreme weather is predicted to hit California once again.

With that being said, it’s vital that you are prepared for both planned and unplanned power outages. Unfortunately, as most of you know, there are still global supply chain issues, resulting in lead times that are longer than expected. Therefore, if you’re looking to be proactive versus reactive, start planning now. We can help with all your power generation needs!

To assist in your preparation, we have prepared a list of factors to be aware of that could increase the risk of power outages this summer:

  1. Extreme Heat

During the hot summers that California encounters, more people use power to cool down their homes and business; this greatly increases power demand. When this heat is combined with adverse weather conditions that could reduce output from other power sources, system operators may also be forced to use emergency procedures to prevent catastrophic grid failures and extended outages. In addition to that, the extreme heat will cause electrical equipment to fail.

  1. Drought

In relation to California’s hot temperatures, droughts may also increase the risk of a power outage as they can strain the electricity supply. Hydroelectricity is another energy source that California highly depends on and if its reservoirs run low – likely due to extreme heat – there will be a significant drop in hydroelectric generation. With this drop in energy production, the chances of an electricity shortages rises.

  1. Wind

Extreme heat coupled with drought conditions gets exponentially worse when extreme winds come into play. This is what California is faced with every year when the Santa Ana winds start blowing or when the state is hit with the fierce Diablo Winds. Beside knocking out power, these winds can cause power line breakages which will spark wildfires.

  1. Wildfire Season

Summer and early fall in California tend to also be referred to as “wildfire season”.  Wildfires are devastating, unpredictable and they move extremely quickly. They can destroy transmission lines and electrical infrastructure which results in power outages that may last days or weeks.

  1. Planned De-Energization Events – Public Safety Power Shutoffs (PSPSs)

PSPSs are a newer, more proactive solution where utility companies shut off power during extreme and dangerous weather conditions to reduce the changes of wildfires breaking out in high-risk areas.  Numerous high-risk areas have been identified in California and, for that reason, these events are anything but out of the ordinary for California residents and businesses.

  1. Supply Shortages

As mentioned above, hot California summers can result in low electricity generation. At the same time, electricity demand peaks during periods of extreme heat as, people tend to use their air conditioning all at the same time. Because of this, the grid will be challenged and will struggle to meet the energy demands.

All these factors listed above, substantially increase the risk of power outages. We know that, in today’s world, the majority of industries and businesses rely on electricity to be operational and to provide their goods and services to their customer base. Therefore, these hazards cannot be ignored. We want to ensure that you and your businesses are safe, with the ability to still maximize your uptime. We can support you by maintaining your existing generators, upgrading you to a new generator where it makes sense, or providing backup power generation solutions.

Contact us for more information. Our team is always happy to help!

888.682.6888 or info@collicutt.com

Find more solutions here!

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Top Power Generation Solutions Provider 2022
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We are excited to share that earlier this month, Energy Tech Review awarded Collicutt their “Top Power Generation Solutions Provider 2022” award! 

 

Top Power Gen Solutions Provider Award

 

With this, Collicutt was asked to interview with Energy Tech Review magazine to share our capabilities and expertise on power generation.

 

Collicutt Energy: The Power Generation Engine Specialists

“Anchored on the philosophy of never saying no to clients, Collicutt Energy offers a complete suite of solutions for all things engine related. The gaining prominence of renewable energy and advancements in power generation and grid modernization technologies – alongside the growing demand for standby powers for a plethora of applications areas – amplifies the need for engine and generator experts such as Collicutt.

“We sell parts, service, and equipment, but boiling it down, we are a solution provider”, says Ryan Krutzfeldt, VP of Operations at Collicutt.”

 

To read the full article, download the case study with the link below!

For more solution options see the following pages:

 

 

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Successfully Overcoming Project Disaster
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The Challenge

In 2019, Collicutt was approached by one of our clients who had just won the electrical design and build contract for a new residential high rise to be built in downtown Los Angeles. Part of that contract included the supply of an emergency backup generator that would provide power for the building during a power grid outage that is so common in California.

Besides the usual backup power requirements for a building of this type, there were a few challenges that made this project unique:

  • This unit was going to be placed on the ninth floor of the building.
  • Once the unit was in place on the ninth floor, the building would be completed around and above it.
  • The crane doing the lifting was being removed immediately following the generator installation to make way for the remaining building construction. This meant that the generator was on the construction schedule’s critical path.
  • Because this building is downtown LA, the logistics surrounding the lift of the generator were very complicated. Traffic restrictions had to be minimized and the lift radius of the crane was restricted due to the surrounding buildings and infrastructure.

The Solution

When the contractor started their design process, they reached out to our team at Collicutt. We worked with them and their engineering teams to understand the building electrical loads, design constraints, construction schedule, and the lifting constraints.

We proposed a customized MTU 12V4000 DS1500 solution complete with:

  • IBC rating (earthquake rated)
  • Rypos DPF and custom mounting rack
  • Custom sound attenuating enclosure
  • Custom tank to meet fire code for a rooftop design in downtown LA

Disaster Strikes!

The project kicked off and proceeded smoothly until the completed unit left our fabrication facility. But then disaster struck!

Shortly after the truck carrying the generator left the fabrication facility, we received news that they drove under an overpass without checking height restrictions and our custom built generator struck that overpass and was totaled in an instant! The only good news was that no one was injured in the accident.

However, we now had a huge problem! We needed to get a new generator built in record time in the middle of one of the worst global supply chain challenges we have seen in recent times. If we failed to get the generator to site before the building crane was dismantled, we would be on the hook for obtaining permits to close roads in downtown LA and assembling a crane capable of lifting a 1500kW generator to the ninth floor of a building that was already constructed!

We immediately placed the order for the new generator and worked with MTU to expedite the build of the generator in any way they could. We also worked with our fabricator and had them build the enclosure and other custom components ahead of time so that they would just have to set the components in place and bolt them down once the generator was ready. To maintain schedule our fabricator’s staff agreed to work around the clock to complete their work once the generator was delivered to them!

Talk about team work!

The Outcome

Although there were many tense moments throughout this build process, we were able to pull our team together and work through supply chain issues and other manufacturing logistics to get the generator produced as quickly as possible.

In addition to this, thankfully, the building construction had been delayed due to unrelated issues so the building crane was still in place to lift our generator!

This left one final challenge that we had to overcome. Much of the building had now been constructed so the options for lifting the generator to the ninth floor were limited. The building crane had limited lifting capacity and it had limited lifting radius due to the proximity of the surrounding buildings and roadways.

To overcome this challenge, we had the generator transported to a riggers yard where we drained the fluids (oil and coolant) and removed the enclosure. We then dismantled the generator package down to it’s frame. This would allow us to lift the frame, engine, alternator, and radiator in individual lifts.

See the photos below for some of the teardown progress:

  1. Completed unit arrived at riggers

2. The enclosure was removed

3. Removal of components began

We transported the components from the riggers yard to the construction site over a two day period and lifted each component starting with the frame. The video below illustrates the tight lifting window that was being navigated:

As each component was lifted, we secured it into place and “rebuilt” the generator package on the ninth floor of the building! After two days of crane picks and placements, we had the generator back together in its final location ready for commissioning and startup! This allowed our client to complete construction of their building and remove the building crane without the generator scope causing any further project delays!

This project is a great example of; applied expertise, project management, technician talent, and overall teamwork being used to overcome huge challenges!

 

For more information on our power generation services or solutions, contact us via email or at the number below:

888.682.6888 or info@collicutt.com

 

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Collicutt Becomes Alberta’s Distributor for MTU/Rolls-Royce Onsite Energy for Diesel Generators
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Collicutt Energy Services Becomes Alberta’s Distributor of MTU/Rolls-Royce Onsite Energy for Diesel Generators

Collicutt Energy Services is proud to announce that as of January 1, 2022, we are Alberta’s distributor for MTU/Rolls-Royce Onsite Energy for diesel power generation.

This partnership now allows Collicutt to offer our clients both diesel and natural gas power generation options, meeting more client needs by providing them with more variety, reliability and customer assistance.

MTU has over 60 years of power generation expertise along with over 100 years of experience in diesel engine engineering worldwide. That knowledge along with Collicutt’s power generation experience makes this a very strategic partnership.

MTU’s diesel gensets are designed for maximum reliability, featuring low fuel consumption, long service intervals and low emissions to reduce costly downtime. The MTU product portfolio for diesel power generation includes the MTU Series 4000, 2000, 1600, 0080 and 0225 and covers a power range of 27-3,250kW (60 Hz). With mature and reliable design, they are designed to operate in any situation— even in extreme conditions.

The combination of MTU’s product offering with Collicutt’s in-house expertise in power system design, build, and project management, allows Collicutt to deliver a higher standard of power generation service and products throughout Alberta.

In addition to our current solutions, Collicutt is now able to offer more mission-critical solutions along with other applications that include:

  • Data Centers
  • Healthcare and hospitals
  • Sewage and water treatment
  • Hotels
  • Airports
  • Commercial and public buildings
  • Agriculture
  • Aquatic Centers
  • Government buildings
  • Greenhouses
  • Landfills
  • Industrial manufacturing
  • Nuclear power plants
  • Rentals
  • CHP
  • Residential and utilities
  • Power stations

Collicutt continues to lead the power generation industry throughout North America and beyond. Our relationship with MTU/Rolls-Royce Power Systems started in California in 2015 and has continued to grow since. In June of 2021 we also announced the new agreement regarding the distributorship of natural gas power generation and oil & gas engines in Alberta.  This 2022 announcement is quite the milestone as it gives Collicutt the advantage of offering our clients more comprehensive power generation solutions since both natural gas and diesel options can be utilized.

 

Call us for more information at 888.682.6888.

See our News &  Careers page for more announcements and blog posts.

Check out our Equipment site here!

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New Towable Generator Product Line
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Collicutt recently published an article in the BOE Report to announce a new product line of towable generators! We are very excited about this announcement as these units were produced in-house!

The first production of these generators was for two (2) 500kW standby/450 kW prime rated units. Creating these units took a lot of time, effort and research. The units are trailer mounted, 450kW, Tier 4 Final, prime rated, diesel generator packages. They are powered by Scania’s 16L, V8 , engines. A tier 4 final solution is best in class for fuel efficiency and emissions after treatment. These units have a lockable level 1 enclosure for increased security, two voltage outputs (208V & 480V) and so much more.

We polled our in-house experts, external clients, and industry contacts to provide feedback on the standard design, and optional adders that should be part of the build. We believe we created a truly standalone product.

For more details, read our BOE Report article.
Check out our newly designed brochure for more information on the product specifications by downloading the case study below.

Call or email us for more information: 888.682.6888 or info@collicutt.com

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Collicutt’s Focus Is Problem Solving
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Collicutt was recently featured in the November issue of Resource in Focus Magazine!

“As a leading manufacturer of custom power generation equipment, Collicutt Energy’s highly trained and experienced team designs, engineers, and manufactures power solutions, while also working to continually raise the standards for customers, whether repairing, overhauling, servicing or performing preventative maintenance on all brands of engine. Collicutt’s mandate includes offering a wide variety of services while keeping customer downtime to a minimum.

This family-run business has recently experienced exciting growth, including the company’s role as a distributor for products including MTU, Waukesha, Motortech, and Scania – in particular, expanding territory in Alberta as a distributor for MTU/Rolls Royce Power Systems for oil & gas systems and natural gas power generation.”

Learn more about what Collicutt does and how we provide unique solutions to our clients by downloading the full article with the case study link below!

For more solution options see our Services and Solutions pages.

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