Last week the White House issued an Executive Order calling for 40 GW of new CHP capacity by 2020:
The Executive Order on Accelerating Investment in Industrial Energy Efficiency (also known as combined heat and power (CHP) or cogeneration) calls for federal agencies (including the Departments of Energy, Commerce and Agriculture), States, industrial companies and utilities to coordinate policies to encourage investment in CHP facilities with a goal of achieving 40,000 MW of new CHP generating capacity in the U.S. by 2020. Among other provisions, the Order calls for (i) set asides for CHP under emissions allowance trading program state implementation plans, grants, and loans and (ii) recognition of the emissions benefits of highly efficient energy generation technologies like CHP to provide compliance options under power and industrial sector regulations. By one estimate, this could create $40 billion to $80 billion in new capital investment in U.S. manufacturing facilities.
*Combined heat and power (CHP), also known as cogeneration, is an efficient, clean and reliable means of generating power and thermal energy (such as steam) from a single fuel source, including natural gas, coal, biogas and biomass.