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New CEE notes for industry: stricter requirements for waste heat recovery

On August 30, 2024, three new Energy Savings Certificates (CEE) notes dedicated to manufacturers were published in the Journal Officiel. Focusing on waste heat recovery, they introduce major changes in eligibility criteria and performance monitoring. Find out how to meet these new requirements, to optimize and get financing for your energy performance.

Worker checking an installation in a factory

The new CEE notes: a focus on renewable heat

Reminder: CEE notes, what are we talking about? CEE notes are official documents describing standardized energy-saving operations eligible for financing. They aim to facilitate and encourage the implementation of energy-saving actions in various sectors, including industry. Each note corresponds to a specific energy efficiency action.

The three new CEE notes published this year (IND-UT-137, IND-UT-138 and IND-UT-139) are part of an approach to recovering waste heat, i.e. heat generated on your industrial site by an installation whose primary purpose is something else. Often under-exploited, waste heat recovery offers enormous advantages in terms of energy efficiency, reduced energy costs and environmental impact, since it involves capturing calorific power already produced for reuse.

CEE notes in brief:

  • IND-UT-137 : Implementation of a heat pump(s) system in temperature enhancement of recovered waste heat
  • IND-UT-138 : Conversion of waste heat into electricity or compressed air
  • IND-UT-139 : Waste heat storage system

Good to know: these new plugs are mutually incompatible and cannot be combined with other existing plugs such as IND-BA-112, IND-UT-103, IND-UT-117 and IND-UT-118. So make sure you choose the right plug for your project.

A significant evolution of industrial CEE

Since their creation, CEE have mainly financed equipment purchases based on standardized calculations. Energy savings were estimated on the basis of average assumptions, with no verification of actual performance after installation. While simple to implement, this system had its limitations: equipment was not always optimally sized or used, reducing its actual efficiency.

The new CEE notes mark a break with this approach. They no longer simply finance the purchase of equipment, but require in-depth design work and rigorous performance monitoring. This evolution is reflected in two major changes:

1- More detailed preliminary studies

  • In-depth technical documentation required prior to installation
  • Precise specifications for study deliverables
  • Detailed calculations of sizing and expected performance
  • Mandatory analysis of project profitability
  • Increased need to work with specialized design offices

2- Tougher control of results

  • Performance monitoring over 9 years - an unprecedented duration for CEE
  • Actual measurements replace theoretical estimates
  • Installation of specific metering systems
  • Requirement to retain data for controls
  • Risk of non-payment of CEE in the event of underperformance

This new approach aims to guarantee the real effectiveness of funded projects. It involves greater initial investment in studies and monitoring, but ensures better design and sustainable performance of installations.

Zoom on each CEE note

IND-UT-139: fatal heat storage, an emblematic example of this evolution

This note concerns the installation of a fixed fatal heat storage system connected to the heat distribution network.

Key points:

  • Waste heat recovered ≤ 16 GWh/year
  • Storage system comprising one or more thermal batteries

The sizing study must include:

  • A complete balance sheet of thermal rejects and heat requirements
  • An analysis of time lags between production and consumption
  • Precise technical specifications: charging and discharging power; system efficiency; cycle frequency
  • The expected impact on energy consumption

Implementation criteria:

  • Scrupulously respect the specifications of the preliminary study
  • Integrate a metrology system enabling continuous performance recording over 9 years, as well as the provision of data in the event of an inspection

Financial aspects:

  • EWC financing provides funding for the in-depth study and part of the system to be installed. Concrete example: a 10,000 L storage (2 cycles/day, 80% efficiency) generates around €15,000 in CEE

IND-UT-138 : Converting waste heat into electricity or compressed air

This note applies to the implementation of a system to recover waste heat for conversion into electricity or compressed air for on-site self-consumption.

Key points:

  • Gross heat recovered < 16 GWh/year
  • Excluding back-up equipment and production for sale to a third party

The study must include:

  • Detailed assessment of the waste heat deposit
  • Conversion efficiency calculations
  • The analysis of on-site self-consumption
  • Technical justification for sizing

Implementation criteria:

  • Strict compliance with the preliminary study
  • Implementation of a metering system
  • Recording of production data over 9 years

IND-UT-137: Heat pumps for waste heat recovery

This note concerns the installation of air-to-air, air-to-water or water-to-water heat pumps (PACs), using waste heat as a cold source.

Key points:

  • "Hot" thermal power ≤ 2 MW
  • Minimum COP to be respected depending on the type of heat pump
  • Refrigerant with Global Warming Potential (GWP) < 150

The study must detail:

  • The characterization of the fatal heat source
  • The precise sizing of the heat pump
  • Expected performance calculations (COP)
  • Analysis of seasonal variations

Implementation criteria:

  • Respect for the study's technical specifications
  • Installation of a continuous performance monitoring system
  • Data preservation for 9 years

The Fonds Chaleur: a complement to CEE to finance your projects

Alongside CEE, the Fonds Chaleur, which celebrated its 15th anniversary this year, remains a major scheme for financing renewable heat projects. Managed by ADEME since 2009, it aims to accelerate the production of renewable and recovered heat in France.

The Fonds Chaleur finances projects to produce heat from:

  • Renewable energies (solar thermal, geothermal, biomass and biogas)
  • Recovered energy
  • Or a combination of both

It is possible to combine Fonds Chaleur aid with CEE, and thus obtain a higher envelope to finance your energy optimization projects. ADEME adjusts the amount of aid according to the expected CEE premiums, so that the gross payback time on investment remains greater than 2 years after subsidy.

Note: Certain standard CEE heat recovery operations, such as those on cooling towers, chillers and air compressors, are eligible for this scheme because they have a payback time of over 2 years.

However, cumulation requires particular care in selecting the technical solutions to be implemented, as well as the associated financing mechanisms. Our recommendation: enlist the support of experts who have mastered these two aspects.

Case study: heat recovery in the dairy industry

How can an integrated approach, combining technical expertise and financial engineering, lead to the installation of an efficient facility? Illustration with a project recently carried out by LEMON ENERGY.

A major dairy group wanted to invest in more energy-efficient technologies and enhance the quality of its infant and clinical nutrition products. The objective was to install a heat recovery system on its milk drying towers. Our turnkey approach covered the entire process, from initial study to financial package and commissioning.

The various stages:

  1. In-depth analysis : Every industry is unique, so we analyzed the group's specific needs to propose solutions perfectly aligned with their energy and economic objectives. Various scenarios using performance simulations were studied, based on different assumptions about future production levels and technologies.
  2. Close collaboration : We worked hand-in-hand with the site's engineering teams, to develop performance calculation algorithms linked to regulation.
  3. Financing expertise : Our team prepared and submitted the grant application to ADEME, in order to obtain the maximum financial envelope.

The results : the project benefited from a subsidy covering 70% of the CAPEX and enabled a reduction in greenhouse gas emissions of 4000 tCO2eq per year.

The new CEE sheets, combined with the Fonds Chaleur, thus offer manufacturers a new opportunity to recover their waste heat and improve their energy performance. In this increasingly demanding context, thanks to its expertise in financial engineering LEMON ENERGY can help you optimize the energy and economic benefits of your project. Contact us today for a personalized assessment of your renewable heat opportunities.