Combined Heat and Power (CHP), or Cogeneration is a thermodynamically efficient use of fuel that simultaneously produces double or triple energy, for power, heat or cooling, from a single source. In conventional power generation, some energy is discarded as waste heat released into the environment through cooling towers, flue gas, or other ways. CHP captures this thermal energy and puts it to productive use.

CHP systems may be driven by an engine or a turbine and can utilize a wide range of gas fuels, including natural gas, pipeline gas, propane, and biogas. They can output the energy generated as electricity, hot water and steam, chilled water for cooling or direct heat.



CHP advantages compared to conventional electricity and thermal energy production:

High Efficiency Fuel Usage

  • With efficiency reaching 85%, CHP can more than double the rates of conventional power generation, making it the most efficient option [and a powerful strategy for optimizing usage of scarce fossil fuels].
  • Distributive Power. With energy generated on-site, clients avoid transmission and distribution losses occurring when electricity travels over power lines, which average roughly 10% for conventional plants.

Economic Benefits

  • CHP can save facilities considerable money on their energy bills due to its high efficiency, and it can provide.
    a hedge against electricity cost increases.
  • CHP systems generally use natural gas which is typically cheaper than purchased electricity.
  • Protection against risk—CHP onsite generation and improved reliability can prevent the loss of revenue streams due to the interruption of grid-supplied power or interruption in the event of a disaster.
  • Reduced exposure to electricity rate increases. Also, CHP systems can be configured to run on a variety of fuel sources, enabling facilities to hedge against a particular fuel type increase.
  • CHP can reduce the cost of replacing heating equipment.

Increased Reliability

  • CHP helps to meet peak demand requirements, bringing more reliability and flexibility to the power transmission network as the most major applications, are high-energy-demand centres.
  • Unreliable electricity service represents a quantifiable business, safety, and health risk for some
    companies and organizations. CHP is an on-site generation resource and can be designed to support continued operations in the event of a disaster or grid disruption by continuing to provide reliable electricity.

Environmentally Friendly

  • Because less fuel is burned to produce each unit of energy output and because transmission and distribution losses are avoided, CHP greenhouse gas emissions are nearly one-third of those for pure power plants.
  • According to the USA EPA, a 5MW natural gas CHP facility can reduce total emissions to 23 kTons/yr, compared to those of a conventional power generation plant, which are 45 kTons/yr.

Increased Government/Public Partnership

  • Considering CHP advantages to distribution network/grid the US Department of Energy has set an aggressive goal of increasing CHP’s share of generation capacity to 20% of by the year 2030. As such various federal as well as state departments has released programs incentivizing CHP plant adoption and development.

Wide Applications

  • CHP is an effective solution for a wide range of applications, particularly where efficiency and sustainability are an objective. Common CHP applications include: office or residential buildings, malls and IT parks, data centres, airports, hospitals, schools and universities, and manufacturing facilities. More specifically, process industries such as petrochemical, fertilizer, pharmaceutical, food and brewery, chemical, paper, textile, ceramic, and automotive, can benefit significantly from CHP.