Cogeneration is a very cost-efficient means of generating both electricity and thermal energy from the same fuel source. Also known as combined heat and power (CHP), it is a clean, reliable source of power that directly supports some of California's most important industrial and commercial jobs and products.

How It's Different
Conventional power generation is all about burning fuel to produce steam. It is pressure of the steam that actually turns the turbines that generate power, an inefficient process as no more than one-third of the energy of the fuel is converted to the steam pressure that generates electricity. The remainder of the energy is lost "up the stack."

In contrast, cogeneration captures and makes use of excess thermal energy, using it for industrial and domestic heating, commercial production processes and in steam turbines to generate additional electricity. Significantly, cogeneration produces a given amount of electricity and heat with up to 40% less fuel than it takes to produce the electricity and heat separately.


How It Works
Very simply, cogeneration is a process that converts fuel into both thermal and electric energy. The thermal energy may be in the form of steam, hot water, or hot air, or any combination of the three.

A typical cogeneration system consists of an engine and a steam turbine that drives an electrical generator. A heat exchanger recovers excess thermal energy from the engine and/or exhaust gas to produce hot water or steam.

It is this efficient design, stoked by clean-burning natural gas, that makes cogeneration such a potent solution to California power needs. And all with negligible emissions.


Who Uses It
Cogeneration plants are run by cost-conscious private businesses. They produce their own electricity, use the excess thermal energy for heating and sell unused power to local public utility companies or into the market.

In California, cogenerators are spread throughout the state, powering commercial, institutional and industrial facilities. California Cogeneration Council member facilities serve schools, hospitals, food processors, paper mills, steel plants, mining operations and other diverse California businesses.


Benefits
Businesses make the move to cogeneration for many reasons. Chief among them are increasing electric rates and power interruptions, as well as competitive and economic pressure to cut expenses and improve air quality. Whatever the motivation, cogeneration offers energy, environmental and economic benefits:

Cogeneration is Efficient. Cogeneration is one of the least expensive power sources on the market today. By using heat that otherwise would be discarded, cogeneration eliminates the need to burn fuels for the sole purpose of heating. This reduces overall costs of producing electricity and heat because less fuel is consumed.

Cogeneration is Clean. Gas-fired cogeneration is one of the cleanest sources of energy in California. Natural gas is a clean burning fuel, with cogeneration plants having negligible emissions and a long history of providing significant air quality benefits by replacing much dirtier steam-producing boilers.

Cogeneration is Reliable. Cogeneration plants in California have operated dependably for many years and are geographically distributed. As a result, they increase the reliability of the state's electric grid should large utility-owned plants go down or out-of-state power is interrupted.

Cogeneration Conserves Limited Resources. The efficient use of natural gas in cogeneration projects conserves fossil fuel. And with most cogeneration plants located in or near electric load centers, transmission line power loss is minimized. This proximity also saves millions of dollars for new substations and lines.
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