Cogeneration, or combined heat and power (CHP) has been a critical efficiency option for companies operating in the oil and natural gas sector. Generating the process steam and electricity that is frequently needed at our facilities simultaneously can yield efficiency rates far above the separate generation of electricity and steam. According to the EPA:

“The CHP system can produce the same electrical and thermal output at 75% fuel conversion efficiency as compared to 49% for separate heat and power. This is a 50% gain in overall efficiency, resulting in a 35% fuel savings.”

The oil and natural gas industry has invested heavily in CHP. According to the DOE, in 2001, the refining industry was the third largest co-generator in the manufacturing sector. In 1980 our industry had about 1.2 GW (gigawatts) of total CHP-based generating capacity. As of 2005, companies operating in the oil and gas sector had nearly 9.4 GW of capacity - greater than the electricity generating capacity of seventeen U.S. states.