Combined Heat & Power (CHP)

Combined heat and power (CHP) is an efficient and clean approach to generating electric power and useful thermal energy from a single fuel source. Instead of purchasing electricity from the distribution grid and separately burning fuel in an on-site furnace or boiler to produce thermal energy, an industrial or commercial facility can use combined heat and power to provide both services in one, energy-efficient step. CHP is a clean energy solution that directly addresses a number of national priorities, including improving U.S. competitiveness by:

• Reducing energy operating costs

• increasing energy efficiency

• Reducing greenhouse gas emissions 

• Enhancing our energy infrastructure

• Improving energy security and resiliency 

• Growing” the U.S. economy

 

There are several emerging market drivers contributing to current CHP growth, including lower energy operating costs, CHP-friendly environmental regulations, resiliency initiatives, federal and state policies and incentives, utility support, and project replicability. The drivers that are currently influencing the market growth of CHP are part of a larger recognition of the benefits that CHP provides both to the user and the nation as a whole. CHP can reduce strain on the electric grid and lower greenhouse gas (GHG) and other harmful emissions.

 

CHP can lessen the need for new transmission and distribution infrastructure and uses abundant clean domestic energy sources such as natural gas and biomass. CHP can be utilized in a variety of industrial facilities and commercial buildings with coincident power and thermal loads. Industrial manufacturing facilities that are a good fit for CHP include agriculture, food processing, chemicals, refining and metal manufacturing. For commercial buildings, year-round coincident on-site loads suitable for CHP are present at hospitals, hotels, multifamily buildings, colleges and universities, wastewater treatment plants and military campuses. In addition to industrial and commercial facilities, CHP can also be integrated into municipal energy systems.