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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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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Customized Rental Solution!
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One of our customers in Beverly Hills was doing a major office renovation and they required temporary electric power for the duration of the work. This seemed like a simple enough request for our rental group to handle but there were some challenges that had to be addressed!

The Challenge

The challenges were generally centered around the constraints of the job site and included:

  1. The temporary generator could not be parked on the street due to city bylaws
  2. The only other available locations for a temporary generator came with their own challenges:
    • A very small underground parking stall with extremely tight access and inadequate ventilation to allow an engine to run for an extended period of time
    • The top of a parking structure which would require a crane to lift it into place
  3. Noise restrictions were in place due to the proximity to other businesses
  4. California  has some of the strictest emissions requirements and building code requirements in North America. This means that power generation equipment must be able to meet the strictest emission standards and must be designed to handle earthquakes which are also common to California

 

The Solution

Our rental team worked with the customer to determine the potential power demand that they would experience during their office renovation. Once our team understood this requirement, we began to look at our rental fleet and selected a few potential options. From these options we narrowed down the selection to a rental unit that was the correct size, met the noise restrictions, and met the emissions requirements.

We then worked with our customer to provide a temporary venting solution for the generator exhaust. This had to meet the local building code requirements as well as the exhaust venting specifications for the generator. Once this was done, our rental team coordinated the generator drop off and set-up (props to our delivery team for backing this unit into place!) ensuring that our customer had the electric power they needed for the duration of their office building renovation project!

 

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

1-888-682-6888 or info@collicutt.com

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Data Center Expansion
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One of our data center customers in southern California had recently been experiencing an increase in demand so they began expanding their center’s capacity. As the number of data servers increased, their requirement for emergency back up power was also increasing. Unreliable power is the biggest threat a data center can face! Power quality issues can cause equipment failure, downtime, data corruption or data loss, none of which are acceptable outcomes. So, this requirement to upgrade their emergency generators was critical!

Because Collicutt has been providing service work for them and their existing 2250kW generators for a number of years, we sat down with them to understand the challenge that they were facing.

The Design Challenge

Our customer had a few design constraints that needed to be solved. They obviously had a emergency power shortage but they also had the following issues that had to be addressed:

  • Size restrictions with their facility limited the footprint of the generators that they could use
  • California  has some of the strictest emissions requirements and building code requirements in North America. This means that power generation equipment must be able to meet the strictest emission standards and must be designed to handle earthquakes which are also common to California
  • Noise restrictions due to the proximity to other businesses
  • An existing generator that was no longer up to code and could not be made compliant
  • Switchgear upgrade project running concurrently with the generator upgrades
  • Programming to ensure paralleling of the units worked seamlessly with all the upgrades underway

The Solution

For the first unit they required, we designed and provided a custom 2250kw standby generator with a level 2 sound attenuated enclosure and a 3540 gallon subbase fuel tank. The fuel tank is UL142 double walled with secondary containment and rested just beneath the generator base. The enclosure had fixed intake louvers and a vertical discharge plenum to help hamper excessive noise to protect surrounding businesses. The enclosure was custom made with aluminum side and roof panels to ensure a non-corrosive housing designed for prolonged life. We also provided a critical grade silencer to quiet the large generators exhaust to meet city noise restrictions.

When the trucks showed up on site with the first generator and all its components, the customer’s crane company was a “no-show” due to equipment failure. As the old saying goes, “time is money” and a data center construction site is no exception. Collicutt was able to call on one of our crane contractors and get them out to site on short notice. They were able to successfully offload all of the equipment and maintain the schedule!

Our customer has now placed an order for a second 2250kW with the same basic specifications. Collicutt will be removing their non-compliant generator to make room for this second 2250kW. We will also assist them in selling the non-compliant unit using our  surplus equipment website and sales team.

In addition to this, we we able to provide paralleling programming and implementation so that when the new generators are installed and the switchgear upgrades are completed, they will be able to parallel these two new units with their existing generators.

This solution will provide them with high quality emergency power for years to come helping to guarantee their customers have secure data and data processing regardless of inevitable utility power outages.

 

 

 

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

1-888-682-6888 or info@collicutt.com

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Collicutt Energy Services Expands its Territory as Alberta’s Distributor for MTU/Rolls Royce Power Systems
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Collicutt Energy Services Expands its Territory as Alberta’s Distributor for MTU/Rolls Royce Power Systems

Collicutt Energy Services has signed an agreement with MTU/Rolls Royce Power Systems to expand its territory to distribute MTU systems and product lines in Alberta starting June 1, 2021.  This includes natural gas power generation and oil & gas engines.

A subsidiary of Rolls-Royce, MTU Onsite Energy Corp. is one of the top power system manufacturers globally and has been serving the oil and gas industry for over 70 years with the highest standards in durability, reliability and technological expertise. MTU series of diesel engines offer exceptional efficiency and durability to meet the rigorous demands of industry operations. In addition, MTU engines meet and exceed worldwide emission standards with optimum fuel economy, designed by leading-edge engineers pioneering emissions policies.

Along with the entire line of MTU Series of engines, Collicutt Energy Services adds the Detroit Diesel Series 60 engine line to its robust solution-based products and services. The MTU 1000, 1100, 1300, 1500, 1600, 2000 and 4000 engine series cover a power range of 75-3010 kW and 101-4036 bhp.

MTU’s complete range of products includes diesel engines and systems for:

  • Power units for mechanical and hydraulic drives for rotary tables, draw works, mud pumps and other well services
  • Generator sets for electric drilling rigs for rotary tables, draw works and mud pumps
  • Generator sets for continuous duty and prime power
  • Fracturing units
  • Nitrogen vaporizing/generating units
  • Cement pumps
  • Blenders
  • Coil tubing

The partnership with MTU allows Collicutt Energy Services to broaden services to a larger geographical area while aligning its sales and service team with the forefront of industry innovation and advancement.

As an MTU parts and service provider, Collicutt Energy Services’ trained technicians uphold exacting maintenance and warranty requirements to ensure productivity, safety and efficiency in the harshest of conditions. As a result, the company’s customer base will benefit from streamlined sales, service and warranty work on new and existing oil and gas equipment, reducing costly downtime and safety risk.

This cooperative distributorship with MTU/Rolls Royce Power Systems first began in California in 2015 and now allows the company to maintain elevated supply and serviceability in Alberta’s abundant oil and gas industry.

Collicutt MTU Announcement – June 2021

Check out our announcement on EnergyNow and the BOE Report. 

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