Combined Heat and Power (CHP) equipment is the term for equipment that generates heat and electricity from one fuel source. The CHP equipment market is growing due to increasing demand for green energy, cost savings, energy efficiency, emission reduction, industrial growth, infrastructure development, R&D and reliable power supply.
Key Growth Drivers and Opportunities
Growing Focus to Reduce Carbon Emission: As businesses and governments look for cleaner and better energy the market for cogeneration equipment is growing and that’s mainly due to the focus on reducing carbon emissions. By using waste heat from power generation cogeneration (CHP) systems increase energy efficiency and consume less fuel and emit less greenhouse gases. The environmental benefits of cogeneration systems are even more when using renewable fuels like hydrogen, biogas and biomass.
Challenges
The cogeneration equipment has some challenges such as high upfront costs, tricky installation, needing a lot of space, and relying on a steady fuel supply. These factors can make it tough for smaller facilities or areas with less infrastructure to get on board.
Innovation and Expansion
CHP Systems from Catalyst Power Provide Significant Cost and Emission Savings
In January 2025, Cogeneration systems, also referred to as combined heat and power systems, are now available and serviced in Connecticut and Massachusetts by Catalyst Power Holdings LLC, an independent integrated provider of retail energy and cleaner energy solutions for the commercial and industrial sector.
By recovering otherwise lost thermal energy to provide on-site heating or cooling, cogeneration systems may achieve over 90% thermal efficiency and concurrently create heat and electricity from the same energy source. Small and mid-sized businesses in New York and New Jersey have benefited from the installation of Catalyst Power’s cogeneration systems thanks to the joint venture with cogeneration expert OHA Power that was announced last year.
The World’s First 1.8 MW Dry Combustion Cogeneration System Powered Entirely by Hydrogen was Unveiled by Kawasaki
In September 2023, Sales of the GPB17MMX, a 1.8 MW class gas turbine cogeneration system featuring the first combustor in the world that can run entirely on hydrogen, have begun, according to Kawasaki Heavy Industries, Ltd.
Technical issues including a marked rise in NOx*2 emissions and burner overheating arise from generator sets that run on hydrogen fuel because it burns quicker and at a higher temperature than natural gas.
Inventive Sparks, Expanding Markets
The key players operating in the Cogeneration equipment market include, Siemens, GE Healthcare, Solar Turbines Incorporated, Kawasaki Heavy Industries, Ltd., 2G ENERGY, INC., and others. Cogeneration equipment manufacturers should prioritize technological innovation, market diversification, and sustainable solutions in order to flourish. This includes pursuing a range of industries and geographical areas, increasing their use of renewable energy sources, and improving energy efficiency.
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