BOULDER, Colo. — Enabling facilities to achieve efficiencies of up to 85 percent while simultaneously generating electricity and heat, combined heat and power (CHP) is an established method for reducing total energy use in the industrial sector, states Navigant Research. CHP is an energy alternative that provides economic viability and improved competitiveness. According to a report from the research firm, the worldwide capacity of industrial CHP systems will grow at a compound annual growth rate of 30 percent a year from 2014 to 2023.
“Combined heat and power represents slightly less than 6 percent of global installed electricity generating capacity, but it is one of the most mature distributed generation segments,” said Mackinnon Lawrence, research director with Navigant Research. “Although growth in the industrial CHP sector has stagnated in the United States and Russia, the two leading national markets, in recent years, this technology is expected to reach nearly $30 billion in annual market value by 2023.”
The industrial CHP market encompasses a broad range of applications, according to the report, including manufacturing facilities such as pulp and paper mills, steel mills, and packaging plants, processing applications, such as refineries and food and beverage facilities, and resource extraction, such as upstream oil and gas and mining. The diversity in fuel use, technology, and end users makes the industrial CHP market dynamic across all world regions.
Publication date: 5/19/2014