Combined heat and power: How much carbon and energy can manufacturers save?

In this paper we analyze the potential for CHP in US manufacturing. We use typical efficiencies of today's available CHP technologies to estimate the technical potential for the frozen technology case. We find that if manufacturers in 1994 had self-generated all their steam and electric needs with existing cost-effective CHP technologies, they could have reduced carbon equivalent (=12/44 carbon dioxide) emissions by up to 30 million metric tons of carbon (MtC) or nearly 20 percent, and energy use by nearly an Exajoule (EJ). With growth in manufacturing and expected improvements in CHP technologies, this technical potential could be much larger. However, without environmental regulatory reform and innovation-oriented utility restructuring policies, actual CHP installed by US manufacturers could fall far short.