Combined heat and power systems, also commonly known as
cogeneration or CHP systems, are an increasingly popular and highly efficient energy solution for industrial and commercial settings. Cogeneration is the process through which heat and electricity are concurrently produced through the consumption of the same fuel source. Compared to single-generation systems that boast an efficiency of between 30–50%, a cogeneration system’s efficiency can be upwards of 95%, leading to significant cost savings over the long term. For facilities that need both electricity and heat regularly, CHP systems offer a clear advantage over traditional generators and separate heating equipment.
How CHP Systems Work
CHP systems are effective because electricity generation naturally produces usable heat alongside power. In single-generation systems, this heat is treated as a waste product to be managed. CHP systems turn this on its head and instead capture that excess heat to be distributed throughout the facility. CHP systems can be fueled by much the same sources as traditional generators, be that natural gas, diesel, or other fuels commonly used in commercial power systems. Where they differ is in the implementation of the heat exchanger that captures thermal energy for separate use. At GenTech, CHP systems are designed around how a facility actually operates, ensuring the system aligns with both electrical demand and heat usage.
Efficiency and Environmental Benefits
The capture of thermal energy necessarily makes a CHP system far more efficient than a traditional generator. Rather than necessitating a separate system for the purposes of heating and cooling—and with it even more nonrenewable fossil fuels—a CHP system takes care of both needs at once from the same fuel source by making use of the thermal energy that would have been produced anyway. This makes these systems between 80–90% efficient.
This approach reduces fuel use, minimizes waste heat, and lowers greenhouse gas emissions, making CHP systems an important part of many sustainability plans.
In addition to lowering emissions, CHP systems can reduce strain on the electrical grid by generating power onsite. This localized production helps improve overall grid resilience while minimizing transmission losses that occur when electricity travels long distances from centralized power plants.
Economic Considerations and Incentives
Carbonization will only become more expensive as time goes on, and as regulations tighten in favor of environmental protection and sustainability. At the same time, many industries continue to depend on fossil fuels and will not become fully renewable in the near future. Even so, increased efficiency and sustainability-focused practices limit environmental harm and improve operational performance.
In many areas, installing a CHP system may also qualify organizations for tax incentives or rebates, helping offset upfront costs and shorten the payback period.
Beyond incentives, CHP systems can protect organizations from volatile energy prices by reducing reliance on purchased electricity. For facilities where downtime is costly, the ability to maintain operations during grid outages adds another layer of financial and operational value.
Why Choose GenTech for Your Cogeneration System
GenTech provides custom power generation solutions, including CHP systems designed to meet the real-world demands of industrial and commercial facilities. Our team offers comprehensive services that start with a detailed energy assessment and extend through design, installation, and ongoing support.
Each project is approached with a focus on reliability, efficiency, and long-term performance—not one-size-fits-all solutions.
Cogeneration is an attractive option for industrial producers, hospitals, data centers, manufacturing facilities, and other energy-intensive operations. With the right CHP system in place, organizations can improve efficiency, control energy costs, and strengthen operational reliability.
Partner with GenTech for Sustainable, Efficient Power
Regardless of industry, a business can save a significant amount of money and commit more readily to sustainable practices through the installation of a cogeneration system. GenTech USA supports clients with a full range of power generation services, from CHP systems to backup power and long-term system support.
Contact
GenTech today to learn how a cogeneration or CHP solution can improve your facility’s energy efficiency, reduce long-term costs, and support your sustainability goals.