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The U.S. Department of Energy’s 

Office of Energy Efficiency and 

Renewable Energy (EERE) invests 

in a diverse portfolio of energy 

technologies in order to achieve 

a stronger economy, a cleaner 

environment, and greater energy 

independence for America. 

The Industrial Technologies 

Program (ITP), part of EERE, 

works in collaboration with U.S. 

industry to develop technologies 

and practices that improve 

industrial energy efficiency and 

environmental performance. 

ITP’s work to further the reach 

of combined heat and power 

technologies supports EERE goals. 

For more information, contact: 

EERE Information Center

1-877-EERE-INF (1-877-337-

3463)

www.eere.energy.gov/industry

Industrial Technologies Program

Office of Energy Efficiency and 

Renewable Energy

U.S. Department of Energy

1000 Independence Ave., SW

Washington, DC 20585

CHP: The Time Is Now............................................................ 1
�

Market Solutions for a Sustainable Future...................................2
 

Potential for CHP Across the United States .................................3
 

DOE’s CHP Program ............................................................... 4
�

Accelerated CHP Research and Development ..............................4
 

Technology Demonstrations ........................................................4
 

Aggressive Market Transformation Efforts ...................................4
 

A Pathway to Sustainability .........................................................5
 

A Decade of Progress ............................................................6
�

Technology Research and Development ......................................7
 

Advanced Reciprocating Engine Systems (ARES)...............7
 

Advanced Industrial Gas Turbines ......................................8
 

Microturbines ..................................................................... 9
 

Fuel Cells ......................................................................... 10
 

Thermally Activated Technologies (TATs)..........................11
 

Integrated Energy Systems (IES)................................................12
 

Transforming the Marketplace for CHP......................................14
 

Clean Energy Application Centers:
 

Offering Real Solutions to Local Energy Problems ...........14
 

CHP Market Assessments:
 

Building the Case for CHP................................................16
 

Helping End Users Access CHP Technologies..................16
 

Education and Outreach....................................................17
 

Eliminating Regulatory and Institutional Barriers..............18
 

Support of Emerging CHP Markets
 

and Opportunity Fuels ......................................................19
 

Promoting Critical Infrastructure Resiliency .....................20
 

Partnerships With Industry and Market Sector Networks ...........22
 

Strategies for Continued Success....................................... 24
�

CHP Research and Development ......................................25
 

Technology Demonstrations .............................................26
 

Market Transformation and
 

Clean Energy Application Centers ....................................27
 

A Vision for the Future With CHP ........................................ 28
�
1

CHP: The Time is Now

As America embarks on a bold new energy 

strategy, CHP is poised to deliver immediate 

economic and climate benefits.

Combined heat and power (CHP) technology holds enormous potential 

to improve the nation’s energy security and reduce greenhouse gas (GHG) 

emissions. CHP supports our move to a clean energy economy and the creation 

of green jobs. The Department of Energy (DOE) has long championed CHP 

technologies and is now prepared to harness the full power of CHP to help the 

nation meet its energy and climate goals. 

CHP solutions provide efficient, reliable, and more affordable power for 

businesses and institutions. CHP is now installed at more than 3,500 commercial, 

industrial, and institutional facilities across the nation, improving energy 

efficiency, ensuring environmental quality, promoting economic growth, and 

fostering a more robust energy infrastructure. CHP systems today represent 85 

gigawatts (GW) – or almost 9 percent – of the nation’s total electricity capacity. 

CHP produced 506 billion kilowatt-hours (kWh) of electricity in 2006 – more 

than 12 percent of total power generation for that year.

Through continued research, development, and outreach, DOE and its 

partners could help to dramatically increase CHP’s share of U.S. electricity 

generating capacity. Expanded use of CHP will help meet national energy, 

economic, and environmental goals. A recent study by Oak 

Ridge National Laboratory has found that significant benefits 

would accrue by raising the CHP share to 20 percent. To reach 

20 percent, the Department of Energy commits to 

the following:

• Develop and deploy more energy-efficient CHP 

turbines, reciprocating engines, microturbines, fuel 

cells, heat pumps, thermally activated technologies, 

waste heat recovery technologies, and integrated CHP 

systems that are fully integrated with customer facilities 

and compatible with existing electric transmission and 

distribution systems. 

• Demonstrate CHP technologies in collaboration with 

private and public organizations to emphasize longterm validation and to reduce investment risk for 

developers and end users.

What is CHP?

CHP	is	an	integrated	set	of	

technologies	for	the	simultaneous,	

on-site	production	of	electricity		

and	heat.	

CHP	is	energy	efficient,	making	

use	of	heat	produced	during	power	

generation	and	avoiding	generation	

and	transmission	losses.	

6,851

5,890

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2006 2030

Reduction

in emissions

with 20%

CHP

CO (MMT) Emissions 2

Source:	ORNL	2008

CHP Can Avoid 60 Percent of the Potential Growth in 

Carbon Dioxide Emissions Between 2006 and 2030
CHP: The Time is Now 

•		 Transform the market by promoting and publicizing the national 

benefits of CHP and reducing barriers to full market deployment. 

This strategic approach is essential today to address the technical and market 

challenges inhibiting widespread adoption of CHP. A balanced set of policies, 

incentives, business models, and investments will stimulate sustained CHP 

growth and support the nation’s new energy agenda. 

CHP in 2030 

DOE leads a national program 

that includes a robust portfolio 

of technology research and 

development, demonstrations, and 

market transformation initiatives to 

advance CHP as a well-recognized 

means to simultaneously create 

green jobs, reduce GHG emissions, 

improve energy efficiency and 

maximize the competitiveness of 		

U.S. industry. 

Market Solutions for a Sustainable Future 

Combined heat and power systems provide effective, efficient, reliable, and less 

costly power to businesses across the nation. CHP has proven to: 

•		 Significantly reduce CO2

 emissions through greater energy efficiency 

• Increase production efficiency, reducing business costs 

• Provide local energy solutions and green-collar jobs throughout 

the United States 

• Relieve grid congestion and improve energy security 

If the United States were to adopt high-deployment policies and achieve 20 

percent of electricity generation from CHP by 2030, the nation could save 

an estimated 5.3 quadrillion Btu (quads) of fuel annually, the equivalent of 

nearly half the total energy currently consumed by U.S. households per year.1 

Through 2030, such policies could also generate $234 billion in new technology 

investments2 and create nearly 1 million technical jobs throughout the United 

States.3 CO2 emissions could be reduced by more than 800 million metric tons 

(MMT) per year, an emissions 

impact similar to taking more than 

half of current passenger vehicles 

off the road.4 

2

Benefits of 

CHP Growth
� 2006 2030 

CHP Capacity 85 GW 241 GW

Annual Fuel Savings 1.9 quads 5.3 quads

Total Annual CO  2 Reduction 248 MMT 848 MMT

Cars Taken off Road (Equivalent) 45 million 154 million

Source: ORNL 2008 	 	

		 1	 

		 2	 

3	 

		 4	 

Based on EIA AEO 2008 figure of 11.58 QBtu consumed in the residential sector in 2005. 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
 

Based on assumed cost of $1,500 per kilowatt-hour installed. 	 	 	 	 	 	 	 	 	
 

Based on four jobs created for every $1 million in capital investment. 	 	 	 	 	 	 	 	 	 	 	 
 

Based on Bureau of Transportation Statistics figure of 251 million registered passenger vehicles in 2006. 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
 
3

CHP must be intelligently integrated into the national energy portfolio. Key 

industrial, commercial, and institutional markets for CHP must be targeted 

for development. Through research, development, and 

deployment of CHP components and integrated systems, 

these markets will grow to sustainably meet local needs and 

achieve national energy goals.

CHP Markets Today

Source:	EEA,	Inc.		

CHP	Installation	Database

Potential for CHP Across 

the United States

• Industrial facilities offer major opportunities for CHP 

to enhance the energy efficiency of manufacturing 

operations, such as those used for chemical, refining, 

ethanol, pulp and paper, food processing, and glass manufacturing plants.

• Institutional facilities such as colleges and universities, hospitals, 

prisons, federal facilities and military bases provide cost-effective and 

energy-efficient CHP opportunities.

• Commercial buildings such 

as hotels, airports, high-tech 

campuses, large office buildings, 

and nursing homes, are excellent 

candidates for CHP.

• District energy sites offer 

major opportunities for CHP 

deployment.

• Municipal use of CHP is a 

growing market, including 

wastewater treatment facilities 

and K-12 schools. 

• Residential CHP systems 

represent an opportunity to 

cost-effectively provide power 

and heat for multi-family housing and planned communities.

More must be done to reach the ambitious — yet attainable — 

goals for combined heat and power. The future is bright for CHP — but 

much will depend on our ability to overcome technical and institutional 

barriers. 

CHP: The Time is Now

= <1,000 MW

= 1,000 - 3,000 MW

= 3,000 - 8,000 MW

= >8,000 MW

CHP Technical Potential
4

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	

	 	 	 	

	 	 	 	 	 	

	 	

	 	 	 	 	 	

	 	

	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	 	 	 	

	 	 	

	 	

	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	

	 	 	 	

		

DOE’s CHP Program 

Partnerships 

Make It Possible 

DOE partners with numerous other 

organizations and institutions to 

develop and deploy critical CHP and 

distributed energy resources. 

• American Council for an Energy 

Efficient Economy (ACEEE) 

• Argonne National Laboratory 

• California Energy Commission 

(CEC) 

• International District Energy 

Association (IDEA) 

• National Energy Technology 

Laboratory (NETL) 

• New York State Energy Research 

and Development Authority 

(NYSERDA) 

• Northeast-Midwest Institute 

(NEMW) 

• Oak Ridge National Laboratory 

(ORNL) 

• World Alliance for Decentralized 

Energy (WADE) 

• U.S. Clean Heat and Power 

Association (USCHPA) 

• U.S. Department of Housing and 

Urban Development (HUD) 

• U.S. Environmental Protection 

Agency (EPA) 

Global energy demand, volatile energy prices, and climate change are driving a renewed 

national commitment to energy efficiency and renewable energy. Combined heat and 

power (CHP) provides a cost-effective, near-term opportunity to improve our nation’s 

energy, environmental, and economic future. The Department of Energy is leading the 

national effort to generate 20 percent of U.S. electricity with CHP by 2030. 

In response to a challenge by the CHP industry to achieve more than 90 GW of CHP 

capacity by 2010 5

, the Department established an active program of CHP research, 

development, and deployment. The program has aggressively led development of 

CHP markets and technologies, addressed regulatory and institutional barriers, and 

raised awareness about opportunities for CHP. 

Accelerated CHP Research and Development 

DOE is committed to further expanding CHP markets by working to: 

•		 Research and develop component technology to maximize energy efficiency, 

optimize fuel flexibility, and minimize waste streams 

•		 Address end-use sectors with high or growing energy use or with 

significant opportunities to improve energy efficiency with CHP 

•		 Improve combustion systems that use renewable biogas/biomass 

fuels without sacrificing reliability, availability, maintainability, 

or durability (RAMD) 

Technology Demonstrations 

DOE is working to promote installations of innovative technologies and 

applications that offer the greatest potential for replication. Through private 

and public sector collaborative efforts, the Department is conducting fullscale demonstrations of CHP systems in high-potential, high-profile sectors, at 

industrial sites, colleges and universities, district energy sites, municipal facilities, 

and commercial and residential buildings. 

Aggressive Market Transformation Efforts 

DOE’s Clean Energy Application Centers, formerly known as the Regional 

Application Centers (RACs), provide education, awareness, training, and outreach 

on CHP, waste heat recovery, and district energy systems. These services include 

on-site analyses to help businesses, facility managers, and building engineers 

determine the most cost-effective applications for CHP and waste heat recovery. 

The Centers also provide technical support to policy development efforts by 

DOE, state governments, and other organizations. The national labs provide 

program support and technical guidance to all Centers. 

5	 USCHPA, National CHP Roadmap: Doubling Combined Heat and Power Capacity in the United States by 2010 (2001). 
5

A Pathway to Sustainability

Through research and development, 

partnerships, education, and outreach, DOE 

has helped to dramatically increase the CHP 

share of U.S. electricity generating capacity. 

1998

CHP Federal-State

Partnership Begins

The CHP Roadmap set the national agenda for:

 More efficient CHP components and integrated

energy systems (IES)

 Market transformation with the support of

CHP Regional Application Centers (RACs)

 Key partnerships with federal and state governments,

national laboratories, industry, international

associations, and NGOs

46 GW Installed CHP

7% of U.S. Capacity

2009

A Strong Foundation

Today, about 3,500 CHP sites provide more than 85 GW of electricity,

reducing U.S. energy use by more than 1.8% and avoiding 248 million

metric tons (MMT) of CO2 annually. DOE’s CHP accomplishments include:

 Increased reciprocating engine efficiency to 44% and

significantly reduced emissions

 Improved ultra-lean burn gas turbines and microturbines with

38% efficiency and reduced emissions

 Promoted and installed integrated energy systems (IES) with

70% combined system efficiency

 Co-sponsored 125 CHP training workshops and 350 CHP installations

85 GW Installed CHP

9% of U.S. Capacity

2030 AND BEYOND

A Bright Future for CHP

Providing 20% of the nation’s electricity from CHP by 2030 will:

 Save an estimated 5.3 quadrillion Btu of fuel annually, nearly half of all

energy now consumed by U.S. households per year

 Reduce annual CO2 emissions by more than 800 MMT

 Cumulatively generate $234 billion in new investments and create

nearly 1 million highly skilled technical jobs throughout the country

241 GW Installed CHP

20% of U.S. Capacity
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	

	 	 	

A Decade of Progress 

Over the past 10 years, DOE has built a solid 

foundation for a robust CHP marketplace. 

By aligning with key partners, our program has produced innovative 

technologies and spearheaded market-transforming projects. In addition, 

our commercialization activities and Clean Energy Application Centers have 

expanded CHP, waste heat recovery, and district energy outreach, education, and 

market deployment. Because of these partnership efforts, the United States now 

boasts more than 3,500 CHP, waste heat recovery, and district energy systems 

installed—actively saving energy and reducing emissions. 

Historically, DOE’s Combined Heat and Power Program has had four primary 

elements: 

•		Technology research and development 

— Advanced reciprocating engine systems (ARES) 

— Advanced industrial gas turbines 

— Microturbines 

— Fuel cells 

— Thermally activated technologies (TATs) 

•		Integrated energy systems (IES) research, development, 

and deployment 

•		Market transformation through project support, 

education, and outreach
	

•		Public-private partnerships 

6

The Ritz-Carlton San Francisco, the city’s highest-rated hotel, planned to lower 

energy consumption and reduce energy expenses by installing a combined cooling, 

heating, and power (CCHP) package from UTC Power Company, with support from 

DOE. Fueled with natural gas, the 240 kW Pure Comfort microturbine system has 

saved the Ritz-Carlton about $120,000 per year in electricity—enough to power 

200 average American households. The hotel realized a payback period of less than 

three years, due in part to financial incentives from the California Self-Generation 

Incentive Program (SGIP). 

THE RITZ-CARLTON

Photo courtesy of UTC 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	

	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	

 

 

 

A Decade of Progress 

Through Technology R&D 

The Rio Hotel in Las Vegas, Nevada, 

has a 4.9 MW CHP system powered 

by Caterpillar natural gas-fueled 

reciprocating engines. The system went 

online in May 2004. Energy cost savings 

have been about $1.5 million per year, 

providing five years payback for project 

owners and investors. 

THE RIO HOTEL 

Technology Research 

and Development 

Technology research and development (R&D) projects are the essential 

building blocks of DOE’s CHP program. Aiming to improve efficiency, 

lower emissions, and facilitate market opportunities, DOE has focused on 

gas-fired, advanced reciprocating engine systems; industrial gas turbines; 

microturbines; fuel cells; and thermally activated technologies. 

Advanced Reciprocating Engine Systems (ARES) 

The ARES program focuses on improving reciprocating engines (pistondriven electrical power generation systems) in the 0.5–5 MW range. In 

collaboration with national laboratories, university research centers and 

private companies, DOE has improved medium-speed natural gas engines 

for distributed energy applications. Current research aims to increase their 

energy efficiency from about 36 percent to 50 percent, reduce nitrogen 

oxide (NOx) emissions from 1 gram per horsepower-hour to 0.1 gram, 

and reduce operating and maintenance costs by 10 percent. The program 

has made great progress in these areas, paving the way for more costcompetitive equipment. 

Our researchers have tested engines and produced analytical computer 

models to upgrade engines, pistons, piston rings, and cylinder liners and to 

improve ignition systems and reduce friction. They have achieved a more 

comprehensive understanding of ignition systems, especially at the point 

of ignition and the beginning of the power cycle. As a result, they have 

designed, developed, tested, and produced advanced reciprocating engines 

that approach DOE performance targets for industrial and commercial 

applications. A number of these engine systems have been installed at 

commercial sites. 

University, laboratory, and private companies throughout the United States 

that have participated in ARES research with DOE include: 

•		Caterpillar • Cummins 

• Dresser Waukesha • Ohio State University 

• Argonne National Laboratory • Purdue University 

• Colorado State University • University of Southern California 

• Massachusetts Institute • University of Tennessee 

of Technology • University of Texas 

• Michigan Technology University • West Virginia University 

• Oak Ridge National Laboratory 

7
8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	

	 	 	 	 	 		

	 	 	 	 	

	 	 	 	 		

	 	 	 	 	

	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	

A Decade of Progress 

Through Technology R&D 

Cutaway Illustration of Mercury 50 Recuperated 

Gas Turbine, Courtesy of Solar Turbines 

PCI Catalytic Pilot Burners, Courtesy of Precision 

Combustion, Inc. 

The Veterans Administration Medical 

Center in San Diego, California, recently 

replaced two Saturn 1210 kWe turbines 

with a Mercury 50 recuperated gas turbine, 

enabling the hospital to generate $4.2 

million in emissions offset credits. 

Veterans Administration Medical Center, San Diego, 

Photo Courtesy of Solar Turbines 

Advanced Industrial Gas Turbines 

DOE aims to enhance the performance of gas turbines for applications up 

to 20 MW. Its research on advanced materials, particularly composite ceramics 

and thermal barrier coatings, is helping to achieve this objective. In addition, 

R&D on low-emission technologies is improving the combustion systems 

by reducing NOx and carbon monoxide (CO) emissions without adversely 

affecting turbine performance. 

With DOE support, Solar Turbines has successfully developed its Mercury 50 

gas turbine, targeted to meet the rapidly growing demand for highly efficient, 

environmentally superior turbine-based power systems. The Mercury 50 

turbine uses an ultra-lean pre-mix combustor design to reduce NOx to 5 parts 

per million by volume (ppmv). 

The following companies and laboratories are among those that have 

participated in DOE projects: 

Alzeta Corporation

Developed a novel, stabilized combustion 

technology for industrial gas turbines 

Catalytica Combustion Systems Inc.

Extended the longevity of the catalyst for use with 

turbines and lowered the cost of emissions prevention 

General Electric 

Led a team of researchers to develop and test advanced industrial 

gas turbine components made from ceramic matrix composites 

for shrouds and combustor liners 

Honeywell Engines and Systems

Developed an innovative, fuel-flexible, air-staged, catalytic 

gas turbine combustion system with closed-loop control 

Precision Combustion Inc. 

Developed a novel catalytic pilot burner and combustor for 

ultra-low NOx industrial gas turbines 

Solar Turbines Incorporated

Developed a fully integrated combustion system with 

advanced materials for the Mercury 50 gas turbine 

combustion system 

Oak Ridge National Laboratory (ORNL) 

Developed enabling materials technologies, such as advanced 

ceramics and environmental barrier coatings, to increase 

temperatures, reduce emissions, and protect components 

from the combustion environment 

Lawrence Berkeley National Laboratory (LBNL) 

Developed fuel-flexible, low-swirl injectors (LSI) for industrial 

turbines and microturbines to reduce operating and maintenance

costs and emissions, and improve reliability and performance 
 

 

 

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	

	 	 	

A Decade of Progress 

Through Technology R&D 

Microturbines 

DOE’s support of microturbine R&D has aided the development of a 40 percent 

efficient and low-emission turbine system. These systems offer the industrial sector new 

choices and innovative power solutions. Key accomplishments in the last decade include: 

Courtesy of Capstone Turbine Corporation •		Development of advanced microturbine technology 

by five private companies: Capstone, General Electric, 

Ingersoll Rand, Solar Turbines Incorporated, and UTC 

•		 Materials research focused on ceramics 

and metallic alloys, conducted by Oak Ridge 

National Laboratory 

•		Testing and validation by the University 

of California-Irvine and Southern California 

Edison
	

•		 Simulation of microturbines installed in 

rural applications, in consultation with the 

National Rural Electric Cooperative Association (NRECA)
	

•		Demonstration of more efficient microturbine technology at a number of
	

commercial, industrial, and institutional 

locations throughout the United States. 

DOE’s microturbine 

demonstration projects have 

provided measurable benefits. 

Courtesy of UTC 

Faith Plating in Los Angeles, California, is one of the largest 

platers of remanufactured bumpers in the world. Since 1918, 

Faith Plating has plated automobile and motorcycle parts for 

many manufacturers. To better manage energy costs and ensure 

a reliable supply of electricity and hot water, Faith Plating 

installed a CHP system in 2001. 

The system of four Capstone Model C30 microturbines and 

Unifin gas-to-hot-water heat exchanger saves the company 

between 63 and 280 million Btu each month. This equates to 

roughly $55,000 of savings each year, providing a payback 

period of about four years. In addition to the energy savings, the 

system avoids more than 300,000 pounds of CO2 each year. 

FAITH 

PLATING 

9
10

 

 

 

 

 

 

 

 

 

 

 

A Decade of Progress 

Through Technology R&D 

Fuel Cells 

DOE has collaborated on fuel cell CHP development with “premium power” 

end users, such as data centers, computer chip manufacturers, chemical plants, 

and credit card processors. The Verizon Data Center project illustrates successful 

product-to-market achievement. 

The 292,000-square-foot Verizon Telecommunications Switching Center in 

Garden City, New York, makes use of multiple CHP sources to provide 16 

million Btu of useful thermal energy and 38,000 Btu of electricity. The system 

provides greater than 50 percent efficiency and avoids 11.1 million pounds 

of CO2 emissions each year. The combination of a dual-fuel reciprocating 

engine and seven base-loaded fuel cells serves most of the facility’s 2.7 MW 

requirement. The system allows optimal functioning at all 

times or goes into island mode, minimizing reliance on 

utility-provided power. 

This CHP system provides 

99.999% power reliability— 

a critical requirement for data centers. 
 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	 	 	

	 	

	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	

	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	

	 	 	

	 	 	 	 	

	 	 	 	 	 		

	 	 	 	 		

	 	 	 	 	 	

	 	 	

	 	 	 	

	 	 	

	 	 	 	 	

	 	 	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	

	 	 	 	 	 	 		

	 	

A Decade of Progress 

Through Technology R&D 

Thermally Activated Technologies (TATs) 

Over the past two decades, DOE has worked with industry to develop on-site, 

thermally activated energy conversion technologies, often classified as TATs. 

These encompass a diverse portfolio of equipment types that transform thermal 

energy into useful heating, cooling, humidity control, thermal storage, and 

shaft/electrical power. TAT systems enable customers to directly reduce peak 

electricity demand and simultaneously provide load leveling of both gas and 

electricity. TATs are essential to CHP-integrated systems—they maximize energy 

savings and economic return. No other heating, cooling, and humidity control 

technologies have as great a potential for addressing U.S. electric utility peak 

demand critical issues as do TATs. 

Key TAT program areas include: 

•		Absorption chiller, chiller/heater, and heat pump technologies 

•		 Solid and liquid desiccant ventilation air quality (VAQ) 

technologies, including: 

— Thermal energy recovery and recycling technologies 

with enhanced heat and mass exchangers 

— Thermal storage and thermal management technologies 

— Advanced heat-driven power cycles (such as Organic Rankine 

Cycles and Stirling Engines) 

— Two R&D 100 award winning products (SEMCO Revolution 

and Trane CDQ) 

•		Gas engine-driven rooftop heat pump technologies 

Gas Engine Heat Pump in Operation, Courtesy of Southwest Gas 

Gas Engine Heat Pump in Lab Testing, 

Courtesy of ORNL 

SEMCO 

Revolution Air 

Conditioner — 

2005 R&D 100 

Award Winner 

Developed with 

DOE funding 

and technical contributions by 

ORNL’s Engineering Science and 

Technology Division, the SEMCO 

Revolution air conditioner 

is a rooftop unit that can 

independently control humidity and temperature 

while delivering outdoor air into commercial 

and institutional buildings. The Revolution 

is more compact, cost effective, and energy 

efficient than conventional air-conditioning 

hardware packages. The Revolution’s flexibility 

allows building operators to easily comply 

with building ventilation codes, maintain 

proper indoor humidity levels, and better 

control mold and mildew. 

Trane CDQ — 

2006 R&D 100 

Award Winner 

The Trane CDQ is 

an airconditioningdehumidification 

device that controls 

the temperature and humidity of 

building interior spaces. With DOE 

funding and technical support 

provided by ORNL’s Engineering 

Science and Technology Division, 

Trane and ORNL designed the Trane CDQ to control 

ambient air to 45-60 percent relative humidity, which 

is important for libraries, schools, offices, and most 

importantly, hospitals. Unlike other air conditioning 

and dehumidifying units, the Trane CDQ effectively 

controls humidity without adding heat to the 

space conditioning system. A number of medical 

institutions throughout the U.S. have installed the 

device with successful results. 

11
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	

Integrated Energy Systems 

With more than 150 beds, the Dell 

Children’s Medical Center in Austin, Texas, 

uses an on-site 4.6 MW Mercury 50 

recuperated gas turbine generator set from 

Solar Turbines to meet hospital process 

loads, including chilled water for thermal 

energy storage (TES) and steam for heating 

and other process needs. The Burns & 

McDonnell-designed CHP system allows 

the hospital to operate at 70 percent fuel 

efficiency and to dispatch excess electricity 

onto the grid after its own needs are met. 

In addition, the Dell Children’s Medical 

Center is the first hospital in the world 

to achieve LEED Platinum certification, 

thanks, in part, to the CHP system. 

DELL CHILDREN’S 

MEDICAL CENTER 

Photo Courtesy of Solar Turbines 

A&P Supermarket, Mt. Kisco, NY, Courtesy of UTC 

Integrated Energy Systems (IES) 

One of DOE’s major R&D goals over the last 10 years has been to 

demonstrate the feasibility of IES in new customer classes, helping them 

achieve up to 80 percent efficiency and customer payback in less than four 

years, assuming commercial-scale production. To develop IES, researchers 

combine dissimilar subsystems so that they can work together to provide 

higher efficiency and lower cost than if they were operated individually. 

As a result of previous DOE R&D support, integrated energy systems 

are now on the market with pre-manufactured or off-the-shelf capabilities, 

allowing systems to be scaled up or down in size or configured to serve a 

variety of applications. Such DOE-sponsored IES are often called “plug 

and play” systems—that is, they are designed into a package system off-site, 

installed and turned on with a minimum of on-site design and installation 

support, and replicated at numerous other sites at a reduced cost. Researchers 

conducted both technical and market analyses on each of the three projects 

that follow to assess their technical, design, and market feasibility. 

A renovated A&P supermarket in Mt. Kisco, New York, is utilizing a UTC 

Power PureComfortCHP system, commissioned in January 2005. The system 

is pre-engineered to properly combine four 60 kWe microturbines and a 

double-effect absorption chiller driven by the microturbine exhaust heat. The 

system includes a diverter valve to bypass the exhaust flow around the chiller 

when additional chilling capacity is not required or desired. The store’s loads 

include electrical power for lighting, motors, electronics, seasonal space cooling 

or heating, refrigeration, and dehumidification. 

The PureComfort equipment, developed with 

DOE financial support, has proven its value. The A&P 

system now operates at about 80% efficiency with 

annual energy savings of $130,000, while producing 

40% fewer CO2 and 90% fewer NOx emissions. 

The Domain Industrial Park modular CHP system, located in North Austin, 

Texas, incorporates a 4.6 MW Centaur 50 combustion turbine manufactured 

by Solar Turbines, that directly fires a 2,600 refrigeration ton (RT) Broad 

absorption chiller. This CHP system, engineered by Burns & McDonnell, 

employs pre-manufactured or off-the-shelf components, which cost the 

industrial park less and will significantly lower the cost of replicating similar 

on-site generation systems at other locations. The CHP system at the Domain 

12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	

	 	 	 	

	 	 	 		

	 	

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	

	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	

	 	 	 	

	 	 	 	 	

	 	 	 	 	

Integrated Energy Systems 

was delivered in two sections and assembled with seven welds. This basic 

package, which produces electricity, heat, and cooling for the industrial park, 

has served as a prototype for the CHP system installed at the Dell Children’s 

Medical Center. 

The Fort Bragg Army Base in Fayetteville, North Carolina, began an energy 

partnership with Honeywell in 1997 that has helped reduce its total energy 

costs by more than 25 percent. Honeywell’s CHP plant, powered by a 5 

MW Taurus 60 gas turbine from Solar Turbines, features dual use of turbine 

exhaust, modulating between exhaust-firing an absorption chiller to produce 

chilled water for air conditioning and feeding a heat recovery steam generator 

for serving heat loads. By recycling waste heat, system efficiency has risen to 

70 percent, about double the efficiency of central station power plants—and 

the project is estimated to save the 

fort about $1.8 million per year. 

The large turbine that drives the 

CHP system has improved Fort 

Bragg’s abilities to manage electric 

consumption and has helped the 

installation operate as an “island” 

during prolonged electrical outages 

on the main grid. 

Domain Industrial Park, Courtesy of Solar Turbines 

Fort Bragg Army Base, Courtesy of Honeywell 

IES Expands CHP Markets 

DOE has made a concerted effort to target non-traditional market sectors for CHP use—including hospitals, schools, 

and hotels. Its efforts to deploy and demonstrate integrated CHP components and systems in these sectors have 

produced a positive return on investment, and shown that public-private partnerships can produce market results. 

Successful projects include: 

Eastern Maine Medical 

Rhode Island, installed a UTC 

Butler Hospital in Providence, 

Center in Bangor, Maine, 

installed a 5 MW Centaur 50 

110-ton absorption chiller. 

Pure Comfort system with 

gas turbine from Solar Turbines, 

which generates 24,000 pounds 

per hour of steam and drives a 500-ton absorption
 

East Hartford High School chiller.
 

in East Hartford, Connecticut,
 

installed a UTC Pure Comfort
 

system with a 110-ton absorption
 

chiller.
 Photo Courtesy of UTC 

13
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	

	 	

	 	 	 	 	

	 	 	 	 	

	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	

	 	 	

	 	 	 	 	 	 	 	

	 	 	

 

	 	 	 	

 

 

 

 	 	

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	 	 	

	 	

 

Transforming the Marketplace for CHP 

UNIVERSITY OF MISSOURI 

CHP District Energy System, University of Missouri at Columbia, 

Courtesy of IDEA 

Recent Clean 

Energy Application 

Center Activities 

The Pacific Center recently 

teamed up with Sempra Energy to 

hold workshops on CHP used in the 

food sector and for reliability and 

premium power. 

The Northwest Center recently 

hosted a working session with 

the Northwest Pulp and Paper 

Association and member mills 

to discuss a broadly coordinated 

effort to improve mill efficiency and 

maximize CHP power production. 

The Mid-Atlantic Center led efforts 

in the state of Maryland to develop a 

Model Distributed Generation Tariff. 

The Gulf Coast Center has 

recently published three reports: CHP 

Potential Using Texas Agricultural 

Wastes; Biodiesel Emissions 

Report: NOx Emissions Rates for 

Reciprocating Engine Generator 

Using Biodiesel Fuels; and NOx 

Emissions Impacts from Widespread 

Deployment of CHP in Houston. 

Transforming the Marketplace for CHP 

DOE’s extensive market transformation initiatives are reducing market 

barriers and creating market pull. They have positioned CHP technologies 

and practices to be in demand by numerous industries, chosen by project 

developers and builders, and readily available from manufacturers. By 

supporting the Clean Energy Application Centers, formerly called the CHP 

Regional Application Centers (RACs), and other outreach efforts, DOE 

has expanded the reach of CHP waste heat recovery, and district heating 

technologies in the United States and pursued new sectors for use. 

Clean Energy Application Centers: 

Offering Real Solutions to Local Energy Problems 

DOE established the CHP RACs to offer local, individualized solutions to 

customers on specific CHP projects. The re-named Clean Energy Application 

Centers also provide end-user education and outreach and lead initiatives to 

educate state policymakers and regulators. 

Since their formation, the RACs and now the Centers have capably 

accomplished the following: 

•		Informed prospective CHP users about the benefits and 

applications of CHP for specific targeted markets and about 

the resources and incentives available to facilitate CHP, waste 

heat recovery, and district energy projects (websites, workshops, 

and training) 

• Supported CHP project development by conducting project 

feasibility studies, analyzing permitting issues, and assessing applicable tariffs/rates through technical and financial analyses 

• Promoted CHP as an effective, clean energy solution to 

state policymakers and regulators and educated these audiences 

on barriers to widespread adoption of CHP 

The Centers provide services throughout the United States and are led by a 

collaborative partnership of universities, research organizations, and non-profit 

organizations. By targeting specific regions, the Centers can educate local 

end-user groups, build effective partnerships, and address the wide range of 

regulatory and permitting requirements imposed on CHP systems by various 

states and utilities. The Clean Energy Application Centers are able to respond 

to their customers’ individual needs with specific knowledge on the relevant 

issues for local project development. 

The Centers have worked with a number of states and regions to establish 

policies and incentive programs that address barriers to CHP. 

14
15

RAC and Clean Energy 

Application Center 

Accomplishments

Northwest

Pacific

Intermountain

Midwest

Gulf Coast

Southeast

Northeast

MidAtlantic

Connecticut, with support from the Northeast Center, has established a 

Distributed Energy Incentive Program to encourage CHP installations in the 

state. In addition, the state’s Renewable Portfolio Standard offers direct incentives 

for CHP in congested areas and provides both investment and production tax 

credits.

The Western Governors Association (WGA) Clean and Diversified Energy 

Initiative recognizes the potential benefits and market opportunities of CHP 

in the western states and developed a portfolio of policies to accelerate CHP 

deployment. The Intermountain Center has shown the WGA how CHP can 

and should play a key role in the region’s energy future.

North Carolina, with the support from the Southeast Center, enacted a 

Renewable Energy and Energy Efficiency Portfolio Standard (REPS) that 

requires all investor-owned utilities to generate 12.5 percent of retail electricity 

sales in 2020 from clean energy resources, including efficiency measures and 

CHP.

Utah created an energy-efficiency strategy that identifies specific proposals for 

removing barriers and promoting alternative fuel- and waste-heat-based CHP 

systems.

Maryland sponsored workshops on interconnection and standby power for 

policymakers and project developers, providing a strong basis for the state’s 

recently enacted EmPOWER Maryland goals for energy efficiency and peak 

power reduction.

•	Supported	more	than	350	projects,	

representing	1.3	GW	of	CHP	installed		

or	in	development

•	Avoided	more	than	7.7	million	tons	of	

CO2

,	equivalent	to	planting	1.9	million	

acres	of	trees	and	removing	1.2	million	

cars	from	the	road

•	Held	more	than	120	end-user-focused	workshops	for	about	9,000	individuals	

across	all	market	sectors,	including	municipal,	healthcare,	federal	and	state	

government,	manufacturing,	commercial	buildings,	multi-family	housing,	

agriculture,	wastewater	treatment	facilities,	and	infrastructure	security

CONANT H.S.

At	the	Conant	High	School	in	Hoffman	

Estates,	Illinois,	the	Midwest Center 

performed	engineering	modeling	

to	supplement	architectural	and	

engineering	analysis,	and	recommended	

an	engine-based	CHP	system	to	provide	

heat	recovery	for	absorption	cooling,	

process	heating,	and	hot	water.	The	

school	board	considered	CHP	in	the	

school’s	detailed	engineering	design,	

following	Center	recommendations.	

The	project	includes	two	385	kW	

Caterpillar	engines	and	two	300-ton	

York	absorption	chillers.

Transforming the Marketplace for CHP
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 		

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	

Transforming the Marketplace for CHP 

IES Webcast 

ETHAN ALLEN 

The Ethan Allen Furniture Factory in 

Beecher Falls, Vermont, planned to 

close because of its high energy costs. 

The Northeast Center recommended 

replacing the factory’s steam engine with 

a steam turbine powered by a biomassfired boiler to save the factory 10 percent 

of its energy costs with a three-year 

payback. The factory owners accepted the 

Center’s recommendations, and with the 

support and joint funding from the states 

of Vermont and New Hampshire and 

the Vermont Electric Cooperative Utility, 

the Ethan Allen Furniture Factory has 

remained open, saving 500 jobs. 

CHP Market Assessments: Building the Case for CHP 

Transforming the market requires building a business case for CHP. That is 

why DOE supports market assessments and analyses of CHP market potential 

in diverse sectors, such as supermarkets, restaurants, and health care facilities; 

industrial sites, including chemical, food processing, and pharmaceutical plants; 

hotels and motels; and new commercial and institutional buildings and facilities. 

Many of these DOE-sponsored market assessments have led to the design, 

development, and installation of CHP components and systems throughout the 

nation. These systems are now providing efficiency and cost benefits to hospitals, 

schools, university campuses, commercial and industrial sites, military installations, 

wastewater treatment facilities, office buildings, and farms. 

DOE has developed outreach materials promoting these assessments. A fourhour webcast featured the integrated energy systems installed at the A&P 

Supermarket in Mt. Kisco, New York; the Domain Industrial Park in Austin, 

Texas; and Fort Bragg in Fayetteville, North Carolina. DOE has used these 

examples to show that CHP is one of the most cost-effective technologies on the 

market for achieving near-term results in energy efficiency, emissions reductions, 

performance, and reliability. 

Helping End Users Access CHP Technologies 

DOE has developed a range of tools to address CHP market development and 

the educational needs of end users, product developers, project managers, and 

policymakers. Among these tools are databases, software, guidebooks, and policy 

documents, including: 

•		 CHP Project Installation Database, which tracks installed 

CHP projects in all end-use sectors for all fifty states 

• CHP Economic Evaluation Software Tool, which allows 

project developers and end users to determine the cost 

effectiveness of CHP projects in industrial, commercial, 

and institutional facilities
	

• CHP Resource Guide, produced by the 

Midwest Center, to provide project 

assessment and evaluation guidance, 

regulatory and policy information, and other 

analytical tools for potential CHP project 

developers and installers. This Resource 

Guide has been downloaded more than 

10,000 times from the Center website.
	 In Partnership with

the US DOE

Prepared by: 

Midwest CHP Application Center University of Illinois at Chicago 

Energy Resources Center 

and 

Avalon Consulting, Inc.

Combined Heat & Power (CHP)

Resource Guide

Total Energy Systems (TES)

Integrated Energy Systems (IES)

T

Buildings Cooling, Heating and P Buildings Cooling, Heating and Power (BCHP)

Cooling, Heating and Power for Buildings (C ower for Buildings (CHPB)

Tri­generation (T ri­generation (Trigen)

Cooling, Heating and P Cooling, Heating and Power (CHP)

Cogeneration (Cogen)

otal Energy Systems (TES)

Integrated Energy Systems (IES)

ower (BCH

Cooling, Heating and P H B

T rigen)

ower (CH

Cogeneration (Cogen)

September 2005 

• Distributed Generation Operational Reliability and 

Availability Database, which tracks large CHP projects in 

operation throughout the country 

16
 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	

	 	 	

	 	 	 	 	 	 	

	 	 	

	 	 	 	 	 	 	

Transforming the Marketplace for CHP 

• CHP Emissions/Credit Calculator, which provides detailed assessment 

tools for estimating the emissions impacts of CHP projects 

• Existing Commercial and Industrial Boiler Database, which 

inventories over 150,000 industrial and commercial boilers in the 

U.S. that use almost 40 percent of all energy consumed in these sectors; 

such energy use could be met in part by CHP 

• Air Permitting Screening Tool for gas turbine CHP systems in the 

southern states 

• College and University CHP Database, which screens college and 

university campus sites and ranks their potential for CHP use 

• Combined Heat and Power Education and Outreach Guide to 

State and Federal Government, which equips policymakers and 

others to make informed decisions on CHP 

These are just a few of the many technical and educational tools available to those 

interested in installing CHP throughout the nation. Find these tools and more 

information at www.eere.energy.gov/industry/distributedenergy/. 

Education and Outreach 

The RACs—now the Clean Energy Application Centers—have led or been 

engaged in more than 125 end-user focused workshops designed to improve 

the understanding and application of CHP in sites across all market sectors. 

More than 9,000 individuals participated in sessions across the country. 

Participants have included component and system manufacturers, installers, 

architects, building engineers and operators, project developers, financiers, and 

policymakers. Discussion topics have included the following: 

•		Waste heat recovery 

• Save Energy Now (SEN) CHP opportunities in industrial, 

manufacturing, commercial, and institutional facilities 

• CHP for food processing plants 

• CHP for the forest products industry 

• Ethanol produced with CHP 

• Hospital CHP systems 

• Wastewater treatment plants powered with CHP 

• Anaerobic digesters for dairy farms 

• CHP installed at schools, colleges, 

and universities
	

• CHP for critical infrastructure resiliency 

• Premium power 

• Municipal CHP systems 

• District energy systems with CHP 

Top: Veterans Administration Medical Center, 

Courtesy of Solar Turbines 

Center: University of North Carolina at Chapel 

Hill, Courtesy of IDEA 

Bottom: University of Texas at Austin, Courtesy 

of IDEA 

17
18

DOE has also supported the development of the CHP Vision and CHP 

Roadmap; annual conferences and workshops on CHP; updates to annual CHP 

action plans; and bi-annual peer reviews, which inform the public about DOE’s 

CHP research, development, and deployment efforts. 

DOE produces numerous educational and outreach materials on CHP to 

improve national and international understanding of CHP technologies, markets, 

and policies. These materials include case studies, technology and project fact 

sheets, exhibits, websites, and webcasts or webinars.

CHP databases 

provide “go-to” 

resources for end 

users

DOE	and	Oak	Ridge	National	

Laboratory	(ORNL)	have	supported	

two	major	databases.	The	Combined	

Heat	and	Power	Installation	

Database	is	maintained	by	Energy	

&	Environmental	Analysis,	an	

ICF	International	Company.	The	

database	is	continually	updated	with	

information	on	CHP	installations	

across	all	end-use	sectors	(www.

eea-inc.com/chpdata/index.html).	

The	Database	of	State	Incentives	for	

Renewables	&	Efficiency	(DSIRE)—	

at	www.dsireusa.org—tracks	state	

permitting	rules	and	regulations	that	

affect	CHP	development.	

Eliminating Regulatory and Institutional Barriers

CHP projects often face barriers in the form of environmental permitting 

regulations, utility interconnection and tariff practices, and air quality standards. 

Through extensive research, DOE has produced numerous analyses of these 

issues at the federal, state, and local levels. DOE’s efforts to eliminate these 

barriers include the following: 

• DOE performs analyses on output-based air quality regulations that support CHP deployment. 

• DOE supports the Database of State Incentives for 

Renewables & Efficiency (DSIRE), which tracks state 

permitting rules and regulations that enhance or impede 

CHP development throughout the country. 

• DOE has provided technical support to many states as 

they initiated regulatory proceedings or passed legislation 

to address barriers to CHP, including energy portfolio 

standards (EPS) and Energy Efficiency Resource 

Standards (EERS). 

• DOE has provided technical analyses of state Renewable 

Portfolio Standards (RPS), which require electric utilities 

and other retail electric providers to supply a specified 

minimum amount of customer loads with electricity 

from renewable energy sources and/or CHP.

Midwest CHP Application Center Assists in 

Development of DG Interconnect Rules in Illinois

The	Illinois	Commerce	Commission	recently	adopted	a	statewide	interconnect	policy	for	distributed	

generation	(DG)	projects,	which	was	produced	with	the	help	of	the	Midwest	Center.	The	policy	

standardizes	the	technical	requirements	for	DG	and	CHP	equipment	and	provides	“fast-track”	

reviews	for	DG	and	CHP	projects.	The	Center	took	a	lead	role	in	coordinating	and	providing	

technical	input	on	behalf	of	the	cogeneration	and	CHP	industries.	The	Midwest	Center	has	also	held	

three	public	utility	commission	forums	over	the	past	six	years	to	help	inform	the	commissioners	

about	DG	and	CHP	regulatory	issues,	interconnection,	standby	tariffs,	and	state	economic	impacts.

Transforming the Marketplace for CHP 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

 

 

 

 

 

 

 

 

Transforming the Marketplace for CHP 

Support of Emerging CHP Markets and Opportunity Fuels 

An opportunity fuel is one that has the potential to be used economically 

for power generation, but has not traditionally been used for this purpose. 

Opportunity fuels are usually inferior to conventional fossil fuels, but—under the 

right conditions—can provide a cheap and reliable alternative. 

Opportunity fuels include a vast range of common by-products, wastes, and 

other process derivatives. Examples are anaerobic digester gas, biomass, biomass 

gas, black liquor, blast furnace gas, coalbed methane, coke oven gas, crop 

residues, food processing waste, industrial volatile organic compounds (VOCs), 

landfill gas, municipal solid waste, orimulsion, petroleum coke, sludge waste, 

textile water, tire-derived fuel, wellhead gas, wood, and wood waste. 

With the price volatility of fossil fuels and the need for more environmentally 

responsible energy sources, opportunity fuels are gaining market share. In 

addition, renewable portfolio standards, public benefit funding, and other 

renewable incentives have spurred investment in some opportunity fuels, 

particularly those fueled by biomass. 

CHP Takes Advantage of These Fuels 

Opportunity fuels can be used efficiently by many CHP systems and 

components, including microturbines, steam turbine engines, reciprocating 

engines, fuel cells, and combustion turbines. DOE supported initial research 

efforts on CHP use of opportunity fuels, particularly anaerobic digester gas 

and landfill gas. Additional research and successful deployment efforts have 

confirmed that these fuels hold great promise for further improving the 

economics of CHP. 

“[CHP] is great because technically the water is a waste stream 

for us, and the biogas is another 

waste stream. If you have the 

ability to use that kind of free fuel 

source, it really would make no 

sense not to take advantage of it.” 

—Hillary Mizia, New Belgium Brewery 

The New Belgium Brewery in Fort Collins, Colorado, is the third largest 

brewery in the state and the fifth largest craft brewery in the nation. In 2003, 

the brewery installed a 290 kW CHP system with heat recovery to generate 

thermal energy. Biogas from the brewering wastewater is combined with 

autolyzed yeast to fuel the CHP system. Energy savings have resulted in a 

three-year payback for the project. Although DOE did not provide financing 

for this project, its success has been cataloged and used by the CHP 

Application Centers to illustrate a cost-effective CHP installation. 

NEW BELGIUM BREWERY 

19
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		 	 	 	

Transforming the Marketplace for CHP 

INA ROAD 

“This plant has been 

producing reliable electricity 

and heat for more than 25 

years, and with the quality of 

the equipment we have, there’s 

no reason why it couldn’t 

continue for another 25.” 

—Gary Blomstrom,
�

Plant Supervisor,
�

Ina Road Water Pollution Control Facility
�

More than 6,800 municipal/industrial wastewater treatment plants could 

potentially benefit from using anaerobic digester gas, as well as more than 7,000 

dairy farms and 11,000 hog farms, for a total electric generation capacity of 

more than 6 GW. About 425 landfills currently participate in landfill-gas-toenergy projects, of which about 315 produce electricity (1.1 GW). More than 

1,000 additional landfills offer CHP potential, which could add 3–4 GW.6 

A well-designed CHP system powered by digester gas offers many potential 

benefits including: 

•		Displacing fossil fuels that would have been purchased to meet 

the facility’s thermal needs 

• Producing power at a reduced cost 

• Reducing greenhouse gas emissions 

• Enhancing power reliability at the treatment plant 

At the Ina Road Water Pollution Control Facility in Tucson, Arizona, CHP 

is being used in conjunction with the anaerobic digester for the municipal 

wastewater treatment system. Biogas flow from the digester 

is used in the CHP system to generate electricity and thermal 

energy for the facility. The facility installed seven 650-kW 

Dresser Waukesha engines with heat recovery and a 950-ton 

absorption chiller, saving the facility more than $1.2 million 

annually while operating at 65 percent efficiency. The local 

government hopes to expand its CHP system to 6–8 MW 

from its current 3.3 MW. Although the Ina Road facility 

did not receive DOE funding, it is used as a successful case 

study during RAC education and outreach meetings. 

Promoting Critical Infrastructure Resiliency 

A healthy electric energy infrastructure is one of the defining characteristics 

of the modern U.S. global economy. It drives our telecommunications, 

transportation, food and water supply, banking and finance, manufacturing, 

and public health systems. The Northeast blackout in 2003 and hurricanes 

Katrina and Rita in 2005 illustrated how disruptions in power service can reach 

into many other sectors and underscored the need for resiliency. In emergency 

situations, demand-side approaches such as CHP can ensure continuity of the 

reliable energy service required for economic stability, emergency response, 

and continued operation of critical infrastructures. CHP offers an essential 

component of an overall risk mitigation strategy, and thus a number of CHP 

Application Centers have provided project and policy support on this issue to 

CHP end users in their regions. 

6	 Resource Dynamics Corporation, Opportunity Fuels and Combined Heat and Power: A Market Assessment (August 2006). 

20
	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

 

Transforming the Marketplace for CHP 

The hospital has been 

a “success story” for 

CHP in the Southeast, 

its resiliency highlighted 

at numerous DOE 

and CHP Application 

Center events. 

The Mississippi Baptist Medical Center in Jackson, Mississippi, 

is a 624-bed, full-service urban hospital with a medical staff of 497 and 

3,000 employees. Its large electricity and steam requirements, centralized 

physical plant, and small daily variations in energy requirements led the 

hospital to invest in a CHP system. The hospital installed a Centaur 50 

gas turbine generator set from Solar Turbines with a waste heat recovery 

boiler and steam absorption chiller as part of the package. The initial 

system cost $4.2 million, and was designed to meet more than 70 percent 

of the hospital’s electricity requirements, 95 percent of its 

steam load, and 75 percent of its cooling load. Payback was 

achieved in 6.3 years. 

The Mississippi Baptist Medical Center CHP system 

showed its value when Hurricane Katrina struck. More than 

2.5 million residents were without power for a number of 

days. The hospital remained open, treating a high volume 

of patients and providing clothing, food, and housing for 

displaced patients during the first night of the disaster. In 

addition, the hospital operated a full-time day care to allow employees to 

focus on patient care. With the support of its CHP system, the Mississippi 

Baptist Medical Center was the only hospital in the metropolitan area to 

be nearly 100 percent operational during the hurricane. 

Life-Saving Reliability 

21
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Transforming the Marketplace for CHP 

EPA CHP Partnership 

The Partnership works to raise 

awareness in the effective use of 

CHP, especially in market sectors 

where there has been historically 

limited use. The Partnership 

provides technical support to all 

public and private industry sectors 

with its current focus sectors being 

municipal wastewater treatment 

facilities, data centers, utilities, 

and tribal casinos. 

Partnerships With Industry 

and Market Sector Networks 

A key outcome of the DOE CHP program over the last decade has been 

the success of partnerships with CHP stakeholders. DOE has developed 

partnerships with diverse organizations at all levels, including the U.S. 

Environmental Protection Agency (EPA), the U.S. Clean Heat and Power 

Association (USCHPA), the International District Energy Association (IDEA), 

and the World Alliance for Decentralized Energy (WADE), as well as 

• Private clean energy companies 

• Technology developers 

• Commercial builders and developers 

• State governments across the country 

These partnerships continue to move CHP into the mainstream of industrial, 

commercial, institutional, and district energy applications. 

Since its formation in 1909, the 

International District Energy 

Association (IDEA) has served as 

a principal industry advocate and 

management resource for owners, 

operators, developers, and suppliers of district heating and cooling systems in 

cities, campuses, bases, and healthcare facilities. Today, with over 1,200 members 

in 26 countries, IDEA continues to organize high-quality technical conferences 

that inform, connect, and advance the industry toward higher energy efficiency 

and lower carbon emissions through innovation and investment in scalable 

sustainable solutions. With the support of the U.S. Department of Energy, 

NYSERDA: A Key Partnership 

One of DOE’s key partners is the New York State Energy Research and Development 

Authority (NYSERDA), which operates a successful CHP and clean DG research, 

development, and deployment program. NYSERDA supports development and 

demonstration of CHP systems throughout all end-use sectors. It also collects and 

analyzes project performance data, conducts market studies, and supports the Northeast 

CHP Regional Application Center. The NYSERDA-DOE partnership evaluates CHP 

project proposals and shares lessons learned through conferences, workshops, and other activities. This partnership 

has provided value to New York residents and to energy professionals across the country. NYSERDA projects have led to 

electric demand reduction, higher fuel efficiency, emissions reduction, lower energy costs, job creation, 

and increased product sales. 
IDEA performs industry research and market analysis to foster high impact 

projects and help transform the U.S. energy industry. IDEA was an active 

participant in the original Vision and Roadmap process and has continued to 

partner with DOE on CHP efforts across the country.

The U.S. Clean Heat and Power Association (USCHPA), formerly the U.S. 

Combined Heat and Power Association, serves as the primary advocacy 

organization for the CHP industry. USCHPA activities at the national and 

state level helped get key CHP provisions into the Energy Policy Act of 2005 

(EPACT05) and the Energy Independence and Security Act of 2007 (EISA), 

as well as the 10 percent investment tax credit included in the Emergency 

Economic Stabilization Act of 2008. In addition, the association has worked 

with the CHP Regional Application Centers to support CHP market 

transformation efforts in a number of states, including California, 

Connecticut, and Ohio.

DOE is actively engaged in the work of 

the World Alliance for Decentralized 

Energy (WADE), which supports the 

worldwide development of decentralized, 

distributed energy generation around 

the globe, through financial support of technical analysis on CHP technologies, 

markets, regulatory issues, education, outreach, and market deployment.

Transforming the Marketplace for CHP

23

International Reach

DOE’s	market	transformation	efforts	

have	reached	to	European	and	

other	countries	who	are	part	of	

the	international	distributed	and	

decentralized	energy	community.	

Through	its	partnership	with	

DOE,	the	CHP	program	of	the	

International	Energy	Agency	(IEA)	

conducts	research	and	analysis	

of	CHP	markets	and	deployment	

efforts	around	the	world	and	

has	used	lessons	learned	from	

U.S.	research,	development,	and	

deployment	efforts	to	recommend	

market	transformation	activities	and	

policies	that	will	lead	to	new	CHP	

installations	worldwide.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 	 	 	

	 	 	 	

	 	 	 	 	

	 	 	 	

	 	 	

		

	 	

	 	

	 	 	 	

	 	 	 	

	 	 	

	 	 	 	 	 		

	 	 	

	 	 	

	 	

CHP in 2030: 

Strategies for Continued Success 

CHP’s Significant 

Potential 

If 20 percent of electricity generation 

capacity—about 240,900 MW per 

year—comes from CHP by 2030, 

the United States will see: 

•	 Reduced annual energy 

consumption—about 

5,300 trillion Btu/year 

•	 Total annual CO2 reduction— 

848 MMT 

•	 Total annual carbon reduction— 

231 MMT 

•	 Acres of forest saved— 

189 million acres 

•	 Number of cars taken off the 

road—154 million 

•	 Leveraged additional private 

investments—$234 billion 

•	 New jobs created—1 million 

Source: ORNL 2008 

Achieving 20 percent of U.S. generating capacity through CHP will accomplish 

key national objectives. CHP will: 

•		Reduce the amount of fossil fuels needed to meet U.S. electricity 

and thermal demands 

•		 Mitigate the growth of GHG emissions associated with expected 

economic and energy demand growth 

•		Improve the competitiveness of U.S. businesses 

•		Assist in managing challenges in the electricity sector such as 

uncertainties about electricity supply and grid constraints 

•		Improve infrastructure security and resiliency against natural and 

man-made disasters 

•		Increase utilization of renewable and other opportunity fuels 

Commercially available CHP technologies currently provide approximately 85 

GW of U.S. generating capacity. Achieving 20 percent of U.S. generating capacity 

requires that the use of CHP increase to 241 GW by 2030, which is greater than 

historic growth rates. Achieving this level will require significant technology 

development and product improvements, proven performance and reliability at 

full-scale in a robust demonstration project portfolio, expansion of CHP into 

under-exploited markets, and strategic outreach and partnerships to address 

market and regulatory barriers inhibiting optimum CHP market development. 

With more aggressive development and deployment of CHP, the United States 

has the potential to save energy, improve the environment, create jobs and 

improve the economy. 

DOE has adopted a strategic approach 

for CHP technology development, 20% 

performance validation, and market 

transformation. The program 

substantially enhances the total value 

proposition of CHP in the context 

of market needs and barriers and 

positions CHP as a realistic solution to 

major energy and environmental issues 

confronting the nation. 

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CHP in 2003: Strategies for Continued Success 

DOE is advancing the technologies needed to achieve the goals of rapid 

expansion of CHP and reduced environmental impacts of energy production. 

DOE’s multi-year program for combined heat and power is a balanced strategic 

portfolio of technology development, performance validation, and market 

transformation projects and activities for the CHP industry. This program targets 

three critical size application ranges—large CHP (>20 MW), mid-size CHP (1-20 

MW) and small CHP (<1 MW). DOE is working with key private- and publicsector partners to leverage DOE resources in these three major application 

ranges with strategic activities that address the unique characteristics of each: 

•		Research and Development – Maximize energy efficiency, lower 

emissions, reduce component and system costs, optimize fuel 

flexibility, and minimize waste streams 

•		 Technology Demonstrations – Reduce technical risk and validate 

full-scale performance in targeted applications and untapped 

markets 

•		Market Transformation – Reduce barriers that are due to 

regulatory frameworks, inefficient business models, and lack of 

awareness by key constituents and stakeholders 

CHP Research and Development 

Past and current DOE CHP research and development (R&D) programs 

have focused on development of advanced distributed generation prime 

movers, such as gas turbines and engines. The Advanced Reciprocating 

Engine Systems (ARES) program is a competitively funded, multipleparticipant effort involving DOE, Caterpillar, Cummins, and Dresser 

Waukesha Engine. To fully realize the potential of CHP, DOE will continue 

to support R&D in partnership with equipment manufacturers, national 

laboratories, universities, and end users. The strategic technology development 

emphasis is on achieving sizable improvements in energy efficiency and GHG 

emissions though a systems-based approach that reduces installation costs by 

lowering fuel supply and price risk, improving flexible fuel capabilities, and 

facilitating innovative capture and use of waste energy streams. 

The DOE CHP program emphasizes total energy efficiency and 

corresponding CO2 reductions, utilization of non-fossil fuel energy inputs, 

and system integration on multiple levels, such as CHP systems that are 

integrated with facilities and with energy networks. 

Alumina-Forming Austenitics –

2009 R&D 100 Winner 

A new class of 

heat-resistant 

stainless steel has 

been developed at 

ORNL with DOE 

funding. Alumina 

(Al2O3)-forming austenitic (AFA) 

stainless steels boast an increased 

upper-temperature oxidation, or 

corrosion, limit that is 100 to 400 

degrees Fahrenheit higher than 

that of conventional stainless steels. These new 

alloys deliver this superior oxidation resistance 

with high-temperature strengths approaching that 

of far more expensive nickel-based alloys without 

sacrificing the typical lower cost, formability, 

and weldability of conventional stainless steels. 

These new alloys have applications ranging from 

gas turbines and power plants to chemical and 

petrochemical processing equipment. The photo 

above shows an AFA recuperator air cell to be 

tested at Capstone Turbine Corporation. 

Courtesy of Caterpillar 

Courtesy of Champion 

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CHP in 2003: Strategies for Continued Success

FRITO LAY 

The Frito Lay plant in Killingly, 

Connecticut, processes more than 

500,000 lbs./day of corn and potatoes 

for snack foods. A combustion turbine 

CHP system has been installed in 

order to document energy, emissions, 

reliability, and economic performance in 

this high-growth industrial application. 

The system includes a Solar Turbines 4.6 

MW Centaur 50 natural gas combustion 

turbine generator, with a Rentech heat 

recovery steam generator (HRSG). A 

selective catalytic emission reduction 

(SCR) system meets state and local 

emission requirements. The CHP system 

is designed to provide 100 percent of 

the plant’s power needs and can provide 

over 80 percent of the plant’s current 

maximum steam needs. This project is 

being managed by the Energy Solutions 

Center (ESC) and its member utilities’ 

Distributed Generation Consortium, 

with funding from ORNL/DOE, state 

programs, and host sites. 

Photo courtesy of Solar Turbines 

Future R&D will focus on improving the performance of CHP prime movers, 

including advanced reciprocating engines, gas turbines, and microturbines. 

Research in these technology areas will result in improved energy efficiency, 

enhanced flexible fuel capability, reduced capital and life-cycle costs, and reduced 

emissions. Overall CHP system performance will be enhanced by DOE research 

on improved thermal utilization (chillers, dehumidification), emissions, fuel 

flexibility, novel heat recovery techniques, and the use of advanced materials and 

system controls. 

Expanded application of CHP into new markets places a greater emphasis 

on system integration. DOE will thus develop CHP systems for targeted 

applications in the large, mid-size, and small CHP markets. DOE also will 

research technologies and innovations for integrating CHP into facility-wide 

energy efficiency plans, smart grids, microgrids, and district energy systems. 

Technology Demonstrations 

CHP technology demonstrations are very effective tools for gaining market 

acceptance. DOE is working to promote and publicize installations of innovative 

technologies and applications that offer the greatest potential for replication. As 

noted earlier, key target applications include: 

• Large CHP (>20 MW) 

— Industrial sites 

— Colleges and universities 

— District energy sites 

• Mid-Size CHP (1-20 MW) 

— High growth industrial applications 

— Manufacturing and assembly plants 

— Institutional and municipal facilities 

— Military and government facilities 

— Large commercial sites 

— District energy sites 

• Small CHP (<1 MW) 

— Small commercial buildings 

— Municipal buildings 

— Multi-family buildings 

— Residential buildings 

• Projects in all classes that demonstrate the value to the 

electric utility and/or regional transmission operator 

Support for CHP technologies in new sectors is essential to meeting aggressive 

goals for CHP growth. Thus, DOE demonstrations will be conducted in close 

collaboration with the private sector and other public-sector organizations and 

institutions. 

26
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	

CHP in 2003: Strategies for Continued Success 

Market Transformation and 

Clean Energy Application Centers 

Successful market transformation of CHP requires that DOE clearly 

demonstrate a high degree of transferability and replicability to decision makers 

in market sectors with high growth potential market sectors. Clean Energy 

Application Centers, formerly called CHP Regional Application Centers (RACs), 

present one of the best communications channels for reaching these market 

sectors. DOE is building on RAC expertise and contacts to seek new means of 

influencing decision makers for even more widespread implementation of CHP. 

Through the Clean Energy Application Centers, DOE will continue to provide 

technical expertise and consensus-building support to resolve regulatory and 

institutional barriers that inhibit market penetration. 

The Clean Energy Application Centers will continue to leverage resources and 

partner with key public, private, and non-profit organizations to promote CHP 

technologies and practices, serve as a clearinghouse for local and regional CHP 

resources, and educate state policymakers on CHP benefits and the need to 

address barriers to deployment. 

Section 375 of the Energy Independence and Security Act of 2007 (EISA) 

authorizes the Clean Energy Application Centers to continue carrying out these 

important activities. Specifically, EISA authorizes the Clean Energy Application 

Centers to: 

• Develop and distribute informational materials on 

clean energy technologies
�

• Conduct target market workshops, seminars, 

Internet programs, and other activities to educate end users, 

regulators, and stakeholders 

• Provide and coordinate on-site assessments for 

potential CHP project developers and owners
�

• Offer consulting support to end-use sites considering 

deployment of clean energy technologies 

DOE will continue to support the Clean Energy Application Centers and other 

market transformation initiatives as they address state and regional greenhouse 

gas programs; encourage CHP’s role in state renewable and energy efficiency 

portfolio standards, state incentives, and rebate programs; and support the 

feasibility and application of CHP and waste heat recovery projects. 

Courtesy of Solar Turbines 

27
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A Vision for the Future with CHP 

DOE stands ready to harness the full 

power of CHP and help the nation transform the 

way it consumes energy. 

Our progress to date has demonstrated that widespread deployment of costeffective CHP can help the nation advance its economic and climate goals. 

CHP is now installed at more than 3,500 commercial, industrial, and institutional 

facilities across the nation, improving energy efficiency, preserving environmental 

quality, promoting economic growth, and fostering a more robust energy 

infrastructure. 

The Department of Energy has been integral to this effort and has long 

championed CHP technologies. By leveraging strategic partnerships with key 

industrial and institutional players, the Department has produced cutting-edge 

technologies and spearheaded market-transforming projects, commercialization 

activities, and educational and outreach efforts. Today, DOE continues to 

advance the critical technologies and market transformation activities needed to 

rapidly expand the use of CHP. 

But more can and must be done to tap CHP’s full potential. Despite its successes, 

the Department recognizes that, by adopting high-deployment policies to 

achieve 20 percent of electricity generation from CHP by 2030, the United States 

could save the equivalent of nearly half the total energy currently consumed 

by U.S. households. Through 2030, aggressive policies could also generate $234 

billion in new investments and create nearly 1 million new, highly-skilled technical 

jobs throughout the country while reducing CO2 emissions by more than 800 

MMT per year. 

As America looks forward to a new energy horizon, DOE is primed to lead 

the charge. The Department is pursuing a strategic approach that involves 

developing and deploying more energy-efficient CHP technologies and 

integrated energy systems, demonstrating and promoting these technologies, 

and validating system performance to achieve its goals. Ultimately, this balanced 

approach will allow DOE to seize the clear opportunity afforded by CHP and 

will help the nation create high quality green collar jobs, enhance domestic 

manufacturing competitiveness, and combat climate change. 
29

	 	 	 	 		

	 	 	

For further information, contact:
�

Industrial Technologies Program 

Office of Energy Efficiency and 

Renewable Energy 

U.S. Department of Energy 

1-877-337-3463 

www.eere.energy.gov/industry/distributedenergy/ 
A Strong Energy Portfolio

for a Strong America

Energy efficiency and clean, renewable 

energy will mean a stronger economy, 

a cleaner environment, and greater 

energy independence for America. 

Working with a wide array of state, 

community, industry, and university 

partners, the U.S. Department of 

Energy's Office of Energy Efficiency 

and Renewable Energy invests in a 

diverse portfolio of energy technologies. 

For more information contact:

EERE Information Center 

1­877­EERE­INF (1­877­337­3463) 

www.eere.energy.gov 

Visit the ITP Website at Energy Efficiency &  www.eere.energy.gov/industry Renewable Energy

August	2009