How Cogeneration is a Viable Combined Heat and Power (CHP) Solution

Also known as distributed generation, recycled energy, or combined heat and power (CHP), cogeneration is a viable way to save on your business’ operational costs while reducing carbon emissions and energy waste. Cogeneration also helps to ensure energy resiliency – the ability to continue operating in the event of an emergency or natural disaster.

Cogeneration involves the production of two or more forms of energy, e.g., heat and power, where one source – namely, heat – would normally be wasted to provide another source. Sources of heat energy, for example, include biomass or even methane.

What Can You Save?

Providing a reliable, off-grid power that can reduce energy costs on multiple fronts, CHP has the potential to achieve up to 80% efficiency in some cases. The additional benefit comes from energy created that would normally be lost during the power generation process.

CHP also adds little cost to development and maintenance. For even greater efficiency, options are may even be available for tri-generation – the production of heat, cooling and power!

How Do You Know If You Could Benefit From Cogeneration?

Companies that could benefit from purchasing a cogeneration plan include those that:

  • Want to take advantage of state and utility incentives;
  • Operate more than 3,000 hours per year;
  • Are planning an expansion, upgrade or new construction.

Organizations in the industrial, critical infrastructure, higher education, or aerospace industries, for example, would benefit from CHP. Cogeneration can be used in commercial buildings, manufacturing facilities, college campuses, military bases, and more. Sunnyvale, California-based Network Appliance, Inc., for example, saves $300,000 a year by using a one megawatt natural-gas powered generation system for all their air conditioning needs.

Why Should Your Organization Consider CHP?

Not only could cogeneration save you money, but it also puts you on the right path to meet Federal, State and Municipal mandates to reduce energy consumption. New York City, a leader in sustainability, has an 80% carbon reduction objective to be met by 2050. The city has moved towards energy use caps for buildings to keep things progressing toward that goal.

Cogeneration supports broader sustainability objectives, potentially saving the equivalent of 150 million metric tons of carbon dioxide – the equivalent of that generated by 25 million motor vehicles. CPH is also expected to create $40 billion to $80 billion in new capital investments.

If you are interested in investigating cogeneration or other ways to improve energy efficiency, contact Donelly Mechanical, an Engie Company.

Back to Blog