Simonds Intl. invests in CHP plant
In a bid to reduce the cost of energy bills, cutting tool manufacturer Simonds International, headquartered in Fitchburg in Massachusetts, US, is to install a combined heat and power (CHP) congeneration plant to generate electricity and thermal power.
After deciding to install a 100% modular all-in-one and connection-ready congeneration system to save costs and reduce technical risk, Simonds International placed a multimillion dollar order with 2G-Cenergy, a manufacturer of advanced cogeneration CHP systems for biogas, natural gas, sungas and biofuels.
Costing $5.5 million (€4.02 million), the cogeneration system will produce enough electricity to run, heat and cool the Fitchburg plant and will save 150 jobs. The cogeneration process results in overall electrical and thermal efficicneies close to 90% compared to most utility plants operating in the 33% efficiency range.
'This investment will dramatically lower energy costs,' says Simonds International's president Ray Martino. ' This is our biggest plant and corporate headquarters. Simonds also has plants in Michigan, Oregon, Kentucky, Alabama, Germany, Honduras and Brazil. Fitchburg's electric rates are the highest, spending $2 million annually on energy costs just at this plant.'
He continues: 'North Central Massachusetts is the highest for energy rates. There are several disadvantages to operating a business in Massachusetts, including energy costs, and also in the US with the corporate income tax rates higher than in Germany and in other industrialised states.'