Raley’s To Save $50,000+ Per Store/Year On Energy

Apr 15, 2003

By George Anderson

Raley’s and Hess Microgen (division of Amerada Hess) announced the successful test of an on-site combined heat and power (CHP) or cogeneration system that the parties predict will save the chain $50,000 per year per store in energy costs.

According to the Hess Microgen web site, cogeneration “is the production of two or more forms of energy from a single fuel source. In the case of Hess Microgen units, electricity, heating and/or chilling are the energy products produced from a single fuel source such as natural gas.”

The combination of energy products are “applied to meeting a facility’s energy requirements, efficiencies far in excess of utility-provided power can be obtained, making cogeneration a more efficient, economical, and environmentally friendly source of power.”

Ed Estberg, senior director of facilities for Raley’s said in a prepared statement, “Grocery stores operate on thin margins, so gaining cost savings at this level for a single store is truly remarkable. The Hess Microgen system and commercial offering represent an unprecedented opportunity for grocers to offset rising energy bills.”

Hess Microgren says all equipment is assembled in its factory and delivered on a prefabricated skid for easy on-site installation.

Moderator’s Comment: What are your thoughts on cogeneration/CHP?
In what other ways are retailers finding innovative solutions (supply channel,
facility management etc.) to improve efficiency and create better performance
and bottom line results?

Cogeneration/CHP may not be the ultimate answer but any
system that promises to reduce costs, protect product and creating less havoc
on the environment is worth taking a look at. [George
Anderson – Moderator

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