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ALEO Diesel Generators & Microgrid Case Study:Turning Associated Gas into Reliable Power

In remote oilfield projects, stable power supply is essential for smooth operations. These sites are often far from the main grid, with high electricity demands and equipment that cannot tolerate outages. At the same time, associated petroleum gas generated during oil extraction is often vented or flared if it cannot be fully utilized. This leads to wasted energy, environmental pollution, and safety risks.

In a real-world project in Kazakhstan, ALEO provided a comprehensive energy solution by deploying gas generators integrated with a microgrid system. The solution converted associated gas into reliable, continuous electricity for the site.

Project Background: Challenges at the Oilfield

Remote Location and High Reliability Needs

Oilfields are typically located in isolated areas with limited grid access. Pumps, compressors, control systems, lighting, and living facilities all require continuous power. Any interruption could cause production downtime, equipment damage, and safety hazards.

Underutilized Associated Gas

Associated gas is a byproduct of oil extraction. Without industrial recovery systems, it is often vented or flared. This not only wastes valuable energy but also contributes to greenhouse gas emissions.

Environmental and Safety Concerns

Direct flaring increases pollution and fire risks. Reducing open flames, improving energy use, and maintaining safety are top priorities. The client needed a solution addressing stable power, resource efficiency, and site safety.

Solution Approach: Gas Generators in Action

Converting Associated Gas into Electricity

ALEO’s approach leveraged available associated gas as fuel for gas generators, turning potential waste into usable electricity.

Powering Production and Living Areas

Generated electricity supported production equipment, control systems, lighting, and residential facilities—critical for remote oilfield operations.

Reducing Waste and Boosting Efficiency

Unlike flaring or venting, converting associated gas into electricity maximizes energy efficiency, lowers operational costs, and supports sustainable practices.

Microgrid Integration: Beyond Standalone Generators

Enhanced System Stability

Single generators can struggle with fluctuating loads. Integrating multiple generators into a microgrid ensures consistent power for both production and residential areas.

Gas Generators as Primary Power Source

In this project, gas generators served as the main power supply. They converted on-site associated gas into long-term, cost-effective electricity.

Diesel Generators as Backup

Diesel generators acted as backup or supplementary power. If gas supply was unstable or load surged unexpectedly, diesel units quickly supported the system, adding redundancy and reliability.

Smart Microgrid Control for Efficiency

The microgrid control system dynamically adjusted generator operation based on load demand. This reduced fuel waste, prevented unnecessary wear, and optimized overall performance.

Project Execution: From Assessment to Commissioning

Site Assessment

The team evaluated electricity demand, equipment types, operating hours, gas composition and pressure, ambient conditions, and installation space to design the generator system and microgrid.

Generator and Microgrid Design

Generators were selected to match load requirements. Backup diesel units, parallel operation capabilities, remote monitoring, and future microgrid expansion were incorporated.

Installation and Commissioning

Generators, fuel lines, electrical connections, and control systems were installed and tested under real load conditions, ensuring reliable operation.

Operation and Maintenance

Continuous monitoring of generator status, load fluctuations, and gas supply ensured timely maintenance, reduced downtime, and maintained system stability.

Project Benefits: What the Client Achieved

  • Stable Power Supply – Reliable electricity for production equipment, control systems, and living areas.
  • Increased Gas Utilization – Previously wasted associated gas was transformed into usable energy.
  • Lower Environmental and Safety Risks – Reduced flaring, lower emissions, minimized fire hazards.
  • Foundation for Future Expansion – Supports additional generators, energy storage, and renewable integration.

Extended Applications of ALEO Solutions

  • Oilfields and Extraction Sites – Associated gas utilization and off-grid power solutions.
  • Mining and Quarries – Diesel or gas generator microgrids for crushing, conveying, and site lighting.
  • Industrial Parks – Coordinated multi-generator systems for load management and energy optimization.
  • Data Centers and Hospitals – Diesel generators as critical backup for uninterrupted operations.
  • Remote Off-Grid Projects – Standalone generator microgrids for long-term energy independence.

ALEO Project Insights

Successful industrial power projects require more than just generators. Key lessons include:

  • Evaluate available fuel sources: associated gas, natural gas, or diesel.
  • Consider load characteristics, including startup surges and fluctuations.
  • Ensure backup power and multi-unit coordination.
  • Integrate microgrid controls for seamless generator, storage, and load management.
  • Design systems for continuous operation, not just short-term solutions.

Conclusion

This Kazakhstan oilfield case demonstrates that generators are more than backup equipment—they are central to the energy system. ALEO delivers not just gas and diesel generators, but complete microgrid solutions tailored to site conditions. Whether for oilfields, mines, industrial parks, or remote off-grid locations, reliable, efficient, and safe power is essential for uninterrupted operations.

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FAQ

About generator

Q1: Why are some generators on the market with the same power rating much cheaper than yours?

ALEO: Please be very careful. The industry is rife with “refurbished machines” or “fake brand machines” (especially from certain regions). They repaint used engines to sell as new or pass off standby power as prime power. ALEO guarantees 100% genuine new machines, with serial numbers verifiable in the factory system, and we provide load test videos for verification.

ALEO: Absolutely. This is a core advantage of our EPIOR Gas Generator Sets. Our units have excellent adaptability to Associated Petroleum Gas (APG). Generating electricity from this waste gas brings your fuel cost to near zero and solves environmental emission issues, offering an extremely high ROI.

ALEO: If you need Standby Power for data centers or hospitals to prevent outages, choose Diesel, as it starts quickly and handles load spikes well. If you need Continuous Power for mines or oil fields running 24/7 and have a gas source, choose Gas, as it has extremely low operating costs and a longer lifespan.

ALEO: For data centers, we offer specialized Fast-Start Diesel Gensets. They are optimized for Block Loading, capable of starting and taking load within seconds. Combined with our paralleling system, we can achieve N+1 redundancy, ensuring 99.99% power reliability.

ALEO: Yes. For high-power units above 1000kW, we recommend using High Voltage Generators (10.5kV). This allows direct connection to the HV grid, avoiding high current losses and heating from low-voltage transmission, and saving you the cost of expensive LV cables and transformers.

ALEO: We offer Containerized Generator Sets. They are “plug-and-play” with high protection ratings, featuring built-in cooling, silencing, lighting, and fire suppression systems. You can place them directly on an outdoor concrete pad; they are weatherproof and dustproof, perfect for mines or field sites.

ALEO: Absolutely. We have a dedicated Biogas Series designed with special anti-corrosion treatment for impurities like hydrogen sulfide found in biogas. Combined with a Combined Heat and Power (CHP) system, you can generate electricity and recover waste heat for fermenter insulation, achieving a total thermal efficiency of over 80%.

ALEO: To be honest, high-horsepower imported engines (like Perkins or MTU) are in short supply globally. Typically, the engine lead time alone is 2-3 months, so with assembly and testing, the total delivery time is usually 5-6 months. If a supplier promises immediate stock, it is likely a refurbished machine or old inventory.

ALEO: We recommend a “Solar-Diesel-Storage” Microgrid Solution. Use solar power during the day and battery storage at night, with the diesel generator running only as a backup during cloudy days or when batteries are depleted. Our control system automatically manages these three energy sources to minimize diesel consumption.

ALEO: We can provide Installation Guidance Services. We can dispatch senior engineers to the site or guide your local team via remote video link. Additionally, our designs are highly modular (especially containerized units), requiring only cable and fuel pipe connections onsite, significantly reducing the technical requirements for local installation personnel.

About transformer

Q1: Our project is in a high-rise commercial building in the city center with strict fire safety requirements. Should we use an oil-immersed or dry-type transformer?

ALEO: For this scenario, you must use a Dry-type transformer. While oil-immersed types are cheaper, they pose fire risks and potential leakage, making them unsuitable for crowded indoor areas. Our SCB series Cast Resin Dry-type Transformers are flame-retardant, fire-resistant, and maintenance-free, fully complying with safety codes for high-rise buildings.

ALEO: Our standard configuration uses Copper Windings. Although aluminum is cheaper, copper is far superior in short-circuit resistance, mechanical strength, and corrosion resistance. Especially for your industrial scenarios with fluctuating loads, copper windings ensure a stable service life of 20-30 years, offering better long-term value.

ALEO: A standard transformer would indeed likely fail. For high altitudes, we need to design for enhanced external insulation and temperature rise correction. Our products are specially designed for high-altitude environments with increased creepage distance to ensure no breakdown or overheating occurs in the thin air.

ALEO: This is a very professional question. Traditional oil transformers are indeed prone to tank leakage during long-distance sea transport. To prevent this, we use a Sealed Corrugated Tank structure and conduct strict leakage tests before shipment. For extra-large capacity transformers, we include spare seals and oil refilling tools with the shipment to ensure reliability.

ALEO: Yes, we can. Although we focus on distribution transformers under 35kV, leveraging China’s strong supply chain, we are fully capable of supplying 110kV or even 220kV high-voltage power transformers. We have successful export cases to developed countries like the USA and Japan, fully complying with international IEC standards.

ALEO: It is mainly constrained by the supply of Silicon Steel Sheets and Copper. High-permeability quality silicon steel sheets are particularly tight globally. However, we have long-term agreements with upstream steel mills for priority production, usually allowing us to deliver 15-20 days faster than the industry average.

ALEO: We can equip the transformer with an On-Load Tap Changer (OLTC). While standard off-load tap changers require a power outage to switch gears, an OLTC can adjust voltage automatically or manually while the transformer is under load, ensuring the output voltage stays consistently within your required range.

ALEO: Yes. The core of an Amorphous Metal transformer uses special materials, reducing its No-load loss by about 70% compared to traditional silicon steel transformers. If your equipment has long standby times or low average load rates, the electricity savings over 2-3 years will cover the slightly higher initial cost.

ALEO: No problem, this is our strength. We can provide a Prefabricated Substation, where the transformer, high-voltage Ring Main Unit (RMU), and low-voltage switchgear are pre-assembled and tested in the factory, then shipped as a single container. You simply need to connect the cables upon arrival, cutting onsite construction time in half.

ALEO: Yes. We are aware that Europe will mandatorily phase out equipment containing SF6 greenhouse gases by 2026-2027. We have launched Eco-friendly Ring Main Units (RMU) that use dry air or nitrogen instead of SF6, fully complying with the latest EU environmental regulations.

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