Combined Heat and Power is the simultaneous production of heat and power in a single thermodynamic process. Almost all cogeneration utilizes hot air (for example; gas turbines) and steam for the process fluid, although certain types of fuel cells also cogenerate.
CHP, also known as co-generation, is a more efficient use of fossil fuel than separate generation methods. In addition to reducing energy consumption, CHP results in decreased emissions of gases associated with global warming (CO2) and atmospheric pollution (NOX and SOX).
Due to the utilisation of heat from electricity generation and the avoidance of transmission losses because electricity is generated on site, CHP typically cuts the primary energy usage in half compared to traditional power generation and heat only boilers.