Cogeneration (also combined heat and power, CHP) is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat.
All thermal power plants emit a certain amount of heat during electricity generation. This can be released into the natural environment through cooling towers, flue gas, or by other means. By contrast, CHP captures some or all of the by-product heat for heating purposes, either very close to the plant, or—especially in Scandinavia and eastern Europe—as hot water for district heating with temperatures ranging from approximately 80 to 130 °C. This is also called Combined Heat and Power District Heating or CHPDH. Small CHP plants are an example of decentralized energy.
Cogeneration was practiced in some of the earliest installations of electrical generation. Before central stations distributed power, industries generating their own power used exhaust steam for process heating. Large office and apartment buildings, hotels and stores commonly generated their own power and used waste steam for building heat. Because of the economies and high cost of early purchased power, these combined heat and power operations continued for many years after utility electricity became available. Cogeneration is still common in pulp and paper mills, refineries and chemical plants.
In the United States, Con Edison distributes 66 billion kilograms of 350 °F/180 °C steam each year through its seven cogeneration plants to 100,000 buildings in Manhattan—the biggest steam district in the United States. The peak delivery is 10 million pounds per hour (corresponding to approx. 2.5 GW).
Other major cogeneration companies in the United States include Recycled Energy Development and leading advocates include Tom Casten and Amory Lovins.
By-product heat at moderate temperatures (212-356°F/100-180°C) can also be used in absorption chillers for cooling. A plant producing electricity, heat and cold is sometimes called trigeneration or more generally polygeneration plant. Cogeneration is a thermodynamically efficient use of fuel. In separate production of electricity, some energy must be rejected as waste heat, but in cogeneration this thermal energy is put to good use.
Read more about Cogeneration: Overview, Types of Plants, Heat Recovery Steam Generators, Costs