Industrial Distributed Energy Industry Profile

The U.S. Manufacturing sector accounts for 83% of the total existing U.S. combined heat and power (CHP) capacity. The largest energy consuming industrial sectors account for the largest share of CHP capacity; namely: Chemicals (30%), Petroleum Refining (17%), and Paper Products (15%). Food and Metals manufacturing also hold a significant share, accounting for (8%) and (5%) respectively. Together, these 5 energy intensive industries represent three quarters of the U.S CHP capacity.

Existing Combined Heat and Power (CHP) Capacity (2006) 83.5 gigawatts (GW)

Combined Heat and Power (CHP) involves the sequential process of producing and utilizing electricity and thermal energy from a single fuel. CHP is widely recognized to save energy and costs, while reducing carbon dioxide (CO₂) and other pollutants. CHP is a realistic, near-term option for large energy efficiency improvements and significant CO₂ reductions.

While CHP is a well-established practice in large industrial processes with sizable electricity and thermal loads, analyses indicate a largely untapped potential exists for applications less than 50 megawatts (MW) in electrical demand. Increased CHP deployment can help contribute to:

A 25% reduction in U.S. industrial energy intensity by 2017
An 18% reduction in U.S. carbon intensity by 2012

Industrial demand accounts for approximately one-third of U.S. energy and represents significant opportunities for energy savings. Relative to the separate generation of electricity and heat, CHP is one of the most effective, commercially available alternatives for accomplishing sizable near-term energy savings and corresponding greenhouse gas (GHG) reductions. A fully developed CHP market can lower energy consumption, offset imported oil, create job opportunities and improve the overall economic competitiveness of the United States.