Cogeneration or CHP combined heat and power is the simultaneous production of electricity and heat using a single fuel such as natural gas, although a variety of fuels can be used refer to Cogeneration capacity by primary fuel. The heat produced from the electricity generating process for example from the exhaust systems of a gas turbine is captured and utilised to produce high and low level steam. The steam can be used as a heat source for both industrial and domestic purposes and can be used in steam turbines to generate additional electricity combined cycle power. Cogeneration for onsite power and heat is well established overseas, especially in Scandinavian countries. Its use is gradually increasing in Australia, although optimistic forecasts of rapid implementation and growth in the last couple of years have yet to be realised.

Website: http://www.aph.gov.au/library/pubs/rn/1998-99/99rn21.htm