Industrial Cogeneration--What it is, How it Works, Its Potential.

This is a report on the role that cogeneration can play in our Nations efforts to conserve valuable energy resources. The cogeneration of power and heat can be employed by both industry and utilities. Since these two sectors account for about half of the fuel consumed in the United States, their acceptance of this technology can assist in accomplishing the national goals of using fuels more efficiently and decreasing the use of imported fuels. This study was undertaken because of indications that the private sector faces many constraints which limit the acceptance of cogeneration technology. Moreover, the Federal Government is one of the influential forces which can encourage greater acceptance of cogeneration. This report sets forth the characteristics of cogeneration, the factors involved in its application, and the policy option and strategy which we believe should be considered by Federal and State agencies to encourage greater cogeneration development. The report recognizes that cogeneration is very complex and interrelated with other issues such as economics, fuel availability, and environmental considerations. This report will be useful to the Congress, the executive branch, State agencies, and private industries and utilities in working together to overcome the constraints that cogeneration faces. We are also aware that several Congressmen have expressed interest in the subject, and there is an indication that some are interested in moving forward with legislation in this area. Author