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Iranian firm awarded contract to produce micro-CHPs on commercial scale

This photo provided by Iran’s Research Institute of Petroleum Industry (RIPI) shows Oil Minister Bijan Namdar Zanganeh speaking at a ceremony for awarding a contract for manufacturing micro-combined heat and power (CHP) systems at RIPI office in Tehran on April 4, 2020.

Iran’s Oil Ministry has awarded a major contract to a domestic company to manufacture micro-combined heat and power (CHP) systems as the country aims to increase efficiency in energy consumption.

Oil Minister Bijan Namdar Zanganeh oversaw the signing of the contract on Saturday between the Research Institute of Petroleum Industry (RIPI) and Aran Energy Systems for production of 85 micro-CHPs in one year.

Micro-CHPs are gas boilers that produce electricity as well as heating and hot water. Experts see a bright future for the systems which are small-size versions of industrial heating systems that generate electricity as a by-product of heating.

The Iranian-made micro-CHPs are planned to be used for an initial period of six months in government offices and non-residential places. That could help the manufacturer to fix troubleshooting issues and reduce the final price of the product for introducing to the households.

The Iranian version of the micro-CHPs will be equipped with modern overhead valve engines (OHV), said Jaber Neshati, an Iranian Oil Ministry official familiar with the process to commercialize the boilers.

Neshati said that the project for obtaining the technology needed for micro-CHPs began in Iran in 2014 when the National Iranian Oil Company and the fuel efficacy department of the Oil Ministry provided the funding and support.

He said the total costs for manufacturing a micro-CHP in Iran would amount to nearly 7,000 euros, adding that once fully commercialized, the final price of the product would be around a fourth of the price of a current European version.

Studies suggest that by 2030, more than one in three heating systems sold in Europe could be a micro-CHP system.

Iran, a leading energy producer in the world, has seen a rapid jump in consumption of natural gas by households and industries over the past years.

The government hopes efficiency schemes could help save as much as possible form a current whopping consumption of nearly 600 million cubic meters of natural gas in winter months by the households.

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