FAQs

Will my company be required to fund any part of the system’s development?
No. Alcor, as an Independent Power Producer (IPP), will own and operate the system. The customer is not required to fund the system’s development but will be required to sign a Power Purchase or Lease Agreement with Alcor.

Is CHP a new technology?
No. CHP technology is an established and proven method of delivering reliable distributed energy. In fact, CHP has been installed at over 3,500 commercial, industrial, and institutional facilities across the U.S.

Will my organization save money on its energy bills?
In most cases, Alcor’s customers achieve savings on their bills. Savings are most likely to be realized in regions with high electricity prices or when a customer has a high and coincident thermal load. Project economics can also be helped by the reduction in operating losses attributable to grid failures. For real estate owners with NNN leases, Alcor can pass some or all of the savings back as lease payments to the building owner, increasing rent rolls and building resale value.

Is there a point where a facility is too small to benefit from CHP?
Theoretically, no. However, Alcor’s systems are most appropriate where a customer spends at least $500k per year on their combined utility bills and operates at least 3,000 hours annually.

What is the primary fuel source used in CHP?
In most commercial installations, Alcor’s CHP systems operate on natural gas. But increasingly, Alcor is seeing opportunities to burn alternative fuels like landfill and wastewater methane, stranded wellhead gas, coal bed methane, and biogas. .

What is the risk in installing CHP?
CHP is a mature technology that provides redundancy to conventionally delivered electric and thermal power. The only risk is project economics. Given that the economic risk is borne by Alcor, no real risk exists for Alcor’s customers. .

Is my organization taking a risk by switching to Alcor from my current utilities suppliers?
No. In the vast majority of installations, the grid will be available for backup.  If Alcor’s system needs to be shut down for any reason, the grid will automatically supply our customer’s full power needs. Furthermore, Alcor has successfully installed remote systems where no grid energy is available.

How does Alcor make a profit?
Alcor asks its customers to enter into a Power Purchase Agreement for the supply of their electrical and thermal needs. Alcor is typically able to save its customers money on their current bills while making sufficient margin to allow for the profitable operation of its distributed energy system.

How much room is required to site the equipment?
Although it depends on the size of the energy needs, Alcor’s systems can be sited either inside or outside of the customer’s facility. For example, a 1Mw installation, which would be sited outside a customer’s building, would be the approximate size of a shipping container.

How noisy is Alcor’s CHP equipment?
CHP systems are widely used in environments that demand strict noise abatement such as hospitals, resorts, and universities. The decibel level of Alcor’s systems is typically 55 dB at 25 feet, lower than the dB level of conversational speech.

How long will it take to install once I’ve made a decision to partner with Alcor?
Lead times will be addressed during the project feasibility stage and will typically be between three to six months after a contract has been signed. The biggest factor in determining lead times is permitting, which is determined by local factors.

Do I need to train my people to operate the systems?
No. Alcor has designed its systems to be remotely operated. Each system is configured with remote management, diagnostics, alarms, and triggers. No on-site personnel are required in order to safely and effectively run the equipment.

Why is the Department of Energy promoting CHP?
To quote the DOE, “Combined Heat and Power (CHP) technology holds enormous potential to improve the nation’s energy security and reduce greenhouse gas emissions. CHP supports our move to a clean energy economy and the creation of green jobs….CHP solutions provide efficient, reliable, and more affordable power for businesses and institutions. “

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