Cogeneration and coal gasification - An opportunity for utility/industrial synergy

This paper discusses what cogeneration offers in energy savings and environmental and economic benefits over the separate production of process steam and purchased electricity. Combined cycle cogeneration systems in particular provide significant economic and environmental benefits. The cooperation between utilities and industry will increase the likelihood of the development of cogeneration as a means to control the fuels/energy cost component of finished goods. Methods mentioned for utilities to pursue in cogeneration opportunities include identifying specific industrial process steam requirements; implementing studies with industrials to assess various cogeneration options; exploring ownership and financial structure options with selected industrials, emphasizing unregulated venture approaches; and working actively with state regulatory commissions to educate these agencies and clarify their policies concerning avoided cost and other PURPA influences that will encourage cogeneration.