Pilot project directly connecting cogeneration unit to natural gas well launches in the Czech Republic

A pioneering energy project has kicked off in Borkovany, near Brno, marking a first in the Czech Republic: the direct integration of cogeneration units with a natural gas well, which has the advantage of conserving capacity in the gas distribution network, reducing costs associated with ancillary services, and making direct use of domestic energy resources.

The electricity generated by the CHP unit will be used primarily in the provision of balancing services, thus helping to stabilise the transmission system in the Czech Republic. As coal is phased out, it is being increasingly replaced by gas sources in the Czech energy sector. This shift also extends to balancing services.

The initiative is a collaboration between MND, the largest Czech oil and gas extraction company, and GENTEC CHP, a leading manufacturer of cogeneration units. MND is already in discussions with international energy partners on the further application of this project.

"Energy security and the modernisation of the Czech energy sector are top priorities for me as Minister for Industry and Trade. Over the past three years, we have achieved a great deal – we have moved forward with the tender to complete the nuclear power plant in Dukovany, made numerous investments in renewable energy sources, introduced modern legislation that allows for initiatives such as energy sharing, and reduced our reliance on Russian resources. Since taking office, I have embraced this agenda. I intend to pursue legislative changes, diversify energy sources and comprehensively develop and upgrade the country’s energy sector. So I am delighted to be here in Borkovany today to launch a unique project that will work towards stabilising the transmission system in the Czech Republic and demonstrate how we can use domestic gas resources efficiently," said Lukáš Vlček, Minister for Industry and Trade.

"In recent years, MND has turned to new areas of business as we explore opportunities in high-potential segments of the 21st-century energy industry. One of the most promising projects we are currently working on is the use of gas directly from our probes to balance the Czech power grid. We hope to push ahead in this direction in the future – including abroad," added Jana Hamršmídová, Energy Director, MND.

"This is the first time we have been involved in directly connecting a cogeneration unit to a natural gas well. This pilot project underscores the critical role played by cogeneration units in the safe transition of Czech energy away from coal. nterest in integrating gas CHP units into balancing services and flexibility market is experiencing tremendous growth. We have other similar projects in the pipeline in the Czech Republic with a combined capacity of more than 30 MW. This trend clearly signals that gas will be a key resource gradually replacing coal, which is being phased out, both in relation to balancing services and across the entire energy landscape. If the Czech Republic is to successfully decarbonise, gas needs to play a pivotal role. In this sense, we must capitalise on a strategic advantage we have over some other countries: well-established district heating systems. These should be more intensively integrated into the provision of ancillary services in the electricity market via cogeneration units, electric boilers, and heat pumps. This is a swift and workable solution. Cogeneration units are highly efficient, can be quickly built and commissioned, reach full operational capability within two minutes, and are classified as a sustainable source due to their low emissions. By 2035 alone, it is feasible to install up to 1.5 GW of new cogeneration capacity and thus make a significant contribution to the phase-out of coal-fired generation," noted Václav Klein, CEO, GENTEC CHP.

Six CHP units + the most powerful gas well in the Czech Republic

The pilot energy project comprises six cogeneration units with a total capacity of 3,000 kW. These are situated in close proximity to the Borkovany II Production Centre, to which they are directly connected. The primary natural gas source at this facility is Klobouky 3, currently the most productive gas well at MND and the Czech Republic in general, which runs to a depth of over 2,800 metres and taps gas from all the probes in Borkovany. This field is currently the most prolific, with daily production of 70,000 cubic metres of gas.

The main advantage of connecting the gas well directly to the cogeneration unit is that this means independence from the distribution system, resulting in lower operating costs. CHP units take gas and turn it into electricity, which is then used for the flexibility market, for balancing the transmission system, and for trading electricity in the markets.

MND plans to establish a standalone aggregation unit for energy resources, serving flexibility markets and providing ancillary services to the grid. This unit will be developed in tandem with another G2P installation. When completed, together they will become MND’s first aggregation unit.

The installation in Borkovany is the first of its kind and there are already plans for further development. MND and GENTEC CHP are working on other energy projects that have the potential to contribute to the advancement of modern energy infrastructure, with plans to introduce similar technologies abroad.

How CHP units work

• Cogeneration (or CHP) units produce both electricity and heat by burning gas (or biomethane or hydrogen).
• The cogeneration process delivers up to 90% efficiency and a fuel saving of 30% compared to single-product generation.
• CHP units are capable of reaching full production capacity in just two minutes.
• CHP units are quick to set up – while a nuclear reactor takes 15–20 years to build and a steam plant 5–8 years, the construction time for a CHP unit is 1–2 years.
• CHP units are not dependent on the weather and maintain a stable supply even during grid outages.

How the transmission system works

• The transmission system needs to maintain a balance between electricity generation and consumption at all times.
• In the Czech Republic, the transmission system is operated by ČEPS, which manages the transmission of electricity from producers to distributors and keeps the entire network balanced.
• Imbalances caused by downtime at installations or by spikes or troughs in consumption can cause grid problems and outages. ČEPS compensates for these by purchasing energy from aggregators.
• Cogeneration units are among the fastest and most flexible sources of grid stabilisation.
• The units in Borkovany will help to achieve grid stability and increase energy security.