In general, cogeneration economics derive from burning a waste product that otherwise must be disposed of, often at substantial cost. Electricity generated can be used to reduce purchased power costs.
Steam is available for heat or other in-plant uses, or it can be sold to neighboring customers.
Cogeneration technology can benefit a wide range of business types as described below. Although many are able to sell some or all of their wood waste, its value is much higher as a fuel for cogeneration to replace purchased power. See the Buchanan Flooring case study. Cogeneration can perform the pressure reduction function while also producing valuable electricity. As in the previous discussion, a cogeneration system can function as the pressure reducer while producing electricity.