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 amounts 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.