CHP Environmentally Optimal

The increase in fuel use efficiency of CHP, combined with the use of alternative fuels translates into reductions in smog-forming emissions and climate change emissions compared to separate heat and power. The table below compares the annual energy and CO2 savings of a 10-megawatt natural gas-fired CHP system with separate heat and power from utility-scale generation sources, including renewables.

This shows that CHP can provide overall energy and CO2 savings on par with comparably sized solar photovoltaics (PV), wind, and natural gas combined cycle, and at a capital cost that is lower than solar and wind and on par with natural gas combined cycle plants.

Compared to the average fossil-based electricity generation, the entire existing base of CHP saves 1.8 Quads of energy annually and eliminates 240 million metric tons of CO2 emissions each year (equivalent to the emissions of over 40 million cars).