Combined heat and power (CHP) integrates the production of usable heat and power (electricity), in one single, highly efficient process. CHP generates electricity whilst also capturing usable heat that is produced in this process. This contrasts with conventional ways of generating electricity where vast amount of heat is simply wasted. In today's coal and gas fired power stations, up to two thirds of the overall energy consumed is lost in this way, often seen as a cloud of steam rising from cooling towers. 
  
Benefits of CHP
CHP provides the following direct benefits:
· minimum 10% energy savings, but typical markedly higher
· cost savings of between 15% and 40% over electricity sourced from the grid and heat generated by on-site boilers
· minimum 10% CO2 savings for good quality natural gas CHP in comparison to conventional forms of energy generation
· high overall efficiency ? up to 80% or more at the point of use
· additional guarantee of continuity in energy supplies for operator & consumer
proven and reliable technology with established supplier base