Price volatility. Supply uncertainty. How fuel flexibility reduces onsite power risk.

Author

Mainspring Energy

The risks of powering companies and communities are growing, as are the consequences of getting it wrong. Energy costs are rising. Fuel supplies are increasingly subject to disruption. And the timelines to secure the power needed to meet project deadlines are getting shorter. 

For a growing number of utilities, data centers, manufacturers, and industrial operators, onsite generation is the solution to these challenges. But the ability to produce power independently while the grid is expanded isn’t enough on its own. Onsite generation that runs on a single fuel remains exposed to the same price volatility risk and supply uncertainty that drives decisions to produce onsite power in the first place. 

Genuine fuel flexibility means the ability to switch fuels—instantly—maintain full power output after the switch, and alternate between fuels without performance penalties, manual intervention, or expensive additional capacity.

What does true fuel flexibility actually mean?

Fuel flexibility is the answer to those risks. Fuel flexibility is the ability of a power generator to switch seamlessly and without performance degradation from one fuel to another, be it natural gas, propane, hydrogen, or any other gaseous fuel. While the definition is straightforward, how generators actually deliver fuel flexibility is more complicated than most realize, and these nuances make a meaningful difference to capital expenses, operational costs, and resilience. The goal should be true fuel flexibility, not just the ability to operate using different fuels. 

Running on alternative fuels and genuine fuel flexibility are two different things. Genuine fuel flexibility means the ability to switch fuels—instantly—maintain full power output after the switch, and alternate between fuels without performance penalties, manual intervention, or expensive additional capacity.

Built for a single fuel.

Most power generation is developed for one fuel. To operate on multiple fuels with dynamic switching and at full nameplate performance requires flexibility to be designed in from the start. Technology design is the foundation of fuel flexibility. Most power generation technologies today like engines, turbines, and fuel cells face this limitation at the heart of their design.

When a capacity problem becomes a financial problem. 

If switching to an alternate fuel leads to a drop in output, what was a fuel problem quickly becomes a capacity and financial problem. For example, a facility requiring 10 MW of reliable capacity will need to fill that gap by installing an additional 3 MW of generating equipment to ensure it has the output it needs when fuel sources change. Even if the alternate fuel is cheap and readily available, the additional generating capacity required to compensate for the drop in production is not.  

What happens when the gas stops flowing?

A specific scenario illustrates the tangible value fuel flexibility provides. Natural gas powers most onsite generation, but securing a firm, uninterruptible supply can be expensive, and even firm contracts don’t guarantee delivery during peak demand, extreme weather, or a dramatic price spike. Without fuel flexibility, the facility faces an operational or financial crisis, maybe both. 

But with genuine fuel flexibility, the facility automatically switches to run on propane, biogas, or hydrogen with no drop in output. When natural gas supplies are restored or prices decline, the facility switches back to its primary fuel. There’s no need for emergency fuel procurement or to run backup diesel generators that threaten air permits. With true fuel flexibility, there’s no interruption to operations or downtime.  

Until recently, selecting a generator meant making a bet that a specific fuel would be available and affordable for decades. But a generator that adapts seamlessly to use a variety of fuels changes that calculation.

A hedge against an uncertain future.

Operational continuity matters to all facilities. Manufacturers can’t afford to have production stop, and data centers face financial penalties and loss of customers for even brief outages. 

Genuine fuel flexibility changes the risk calculus of investing in onsite generation. Until recently, selecting a generator meant making a bet that a specific fuel would be available and affordable for decades. But a generator that adapts seamlessly to use a variety of fuels changes that calculation. The fuel landscape will continue to evolve. With true fuel flexibility, your power generator won’t have to. 

First Principles

Subscribe to receive our latest perspectives.