In CHP plants, the residual heat that is produced as a by-product of the electricity generation is captured and used instead of being discarded. This results in a highly efficient use of fuel and a significantly reduced level of CO2 emissions when compared to the separate generation of electricity and heat in power stations and heat-only boilers.
Generating heat and electricity together through CHP is one way of making our energy production more efficient6. It can be used whenever electricity is generated through combustion of a fuel, including all types of biomass and biogas electricity generation.
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6 http://chp.decc.gov.uk/cms/what-is-chp/