Decarbonization potential of regional combined heat and power development

Industrial decarbonization is a significant challenge to national net zero goals. Combined heat and power (CHP) technologies provide a means by which industrial facilities can achieve greater energy efficiency and decrease carbon emissions through cogenerating electric power and process heat. Regions possessing sufficient population density and manufacturing capacity have significant technical potential for industrial CHP development and can experience economic and environmental benefits. However, CHP implementation costs and the complexity of projects represent significant barriers to deployment with successful implementation often relying on government incentives to achieve economic feasibility. In this research, a framework is developed to evaluate the economic feasibility and environmental viability of various CHP technical potential under the various market penetration scenarios. A case study for a region in the United Sates is presented to highlight the efficacy of the framework. Projected CHP generating capacity of the region is calculated using commercial and industrial specific capacity factors. Comprehensive CHP engineering and cost data are integrated with regional economic transaction data. Then, comparative CHP application analysis is performed to determine which configuration could have the greatest regional economic and environmental impacts. Results indicated that investment in industrial topping cycle CHP to achieve the maximum technical potential generating capacity would have the greatest regional impacts resulting in $20 billion of economic outputs, creating 89,000 jobs, and avoiding approximately 3.2 million metric tons of carbon dioxide emissions. Results from this and similar research may be used by policymakers and administrators to assess potential investments in industrial decarbonization technologies and pathways.