As one of the most mature distributed generation segments, the industrial combined heat and power (CHP) market is capturing renewed interest across all regions. Deployed at small- or large-scale at extraction, processing, and manufacturing sites, industrial CHP systems produce electricity while also capturing heat that would otherwise be treated as waste. Industrial facilities that utilize CHP systems have the additional benefit of producing thermal energy that can be used as heat, converted to electricity, or converted to cooling when coupled with an adsorption chiller while taking advantage of low-cost fuels.
North America, Western Europe, and Eastern Europe accounted for 80% of installed capacity worldwide in 2012, but the diversity in fuel use, technology, and end users makes the industrial CHP market highly dynamic across all continents. Although high capital costs and variability across sites restrict market growth, the expansion of low-cost natural gas is lowering the barriers to greater CHP adoption. Driven by concerns about grid reliability, meeting demand for electricity, improving grid efficiency, and reducing greenhouse gas emissions, governments around the world are focusing on increasing subsidies and other incentives for the adoption of industrial CHP systems. Navigant Research forecasts that total installed industrial CHP capacity will grow from 317.9 GW in 2013 to 483.7 GW in 2023 globally under a base scenario.
This Navigant Research report analyzes the global market potential for industrial CHP systems for a range of industrial applications – refineries, pulp and paper mills, food processing facilities, etc. – using technologies such as turbines, internal combustion engines, fuel cells, and Organic Rankine Cycle (ORC) engines. The study includes in-depth assessments of 10 leading countries for the installation of industrial CHP systems and provides an outlook for increased fuel switching to natural gas. Global market forecasts for installed capacity and revenue, segmented by region, country, and scenario, extend through 2023. The report also examines the key market drivers and barriers related to industrial CHP and the main industry players engaged in this market.
Key Questions Addressed:
- What is the current and projected installed capacity for industrial CHP worldwide?
- Which countries offer high growth potential for industrial CHP?
- Which addressable markets offer the most attractive opportunities for industrial CHP?
- What are the key market and policy drivers for industrial CHP?
- What impact will natural gas have on the growth outlook for the industrial CHP market?
Who needs this report?
- Utilities
- Engineering, procurement, and consulting (EPC) firms
- Professional services firms
- Component hardware and software vendors
- Industrial facility operators
- Natural gas producers and marketers
- Government agencies
- Investor community
Table of Contents
1. Executive Summary
1.1 Market Overview
1.2 Key Trends
1.3 Market Forecast
2. Market Issues
2.1 Industrial CHP Market Overview
2.1.1 Industrial CHP Characteristics
2.1.2 Industrial CHP Benefits
2.2 Industrial CHP in the Global Energy Markets
2.2.1 Regional Distribution
2.2.2 Key Markets
2.2.2.1 United States
2.2.2.2 Russia
2.2.2.3 Germany
2.2.2.4 China
2.2.2.5 Rest of World
2.3 Addressable Markets
2.3.1 Global Refining Industry
2.3.2 Oil & Gas Extraction
2.3.3 Pulp and Paper
2.3.4 Food Processing
2.3.5 Industrial Parks
2.4 Emerging Market Drivers for Industrial CHP
2.4.1 Emissions Regulations
2.4.1.1 Input-Based Regulations
2.4.1.2 Output-Based Regulations
2.4.2 Changing Outlook for Natural Gas Supply and Price
2.4.2.1 Natural Gas Prices
2.4.2.1.1. North America
2.4.2.1.2. Europe
2.4.2.1.3. Asia Pacific
2.4.2.2 Changing Spark Spreads
2.4.2.3 Alternatives to Natural Gas
2.4.3 Industrial Electricity Demand and Economic Growth
2.4.4 Policy Support
2.4.4.1 Financial and Fiscal Support
2.4.4.2 Utility Supply Obligations
2.4.4.3 Local Infrastructure and Heat Planning
2.4.4.4 Climate Change Mitigation
2.4.4.5 Interconnection Measures
2.4.4.6 Capacity Building
2.4.5 Fuel Flexibility
2.4.6 Corporate Social Responsibility
2.5 Barriers to Increased Industrial CHP
2.5.1 Capital Constraints
2.5.2 High Maintenance Requirements and Running Costs
2.5.2.1 System Durability and Service Networks
2.5.2.2 Operation and Maintenance Costs
2.5.3 Low Electricity Price
2.5.4 Utility Resistance
2.5.5 Policy Uncertainty
3. Technology Issues
3.1 Industrial CHP Technology Overview
3.2 Topping versus Bottoming Systems
3.2.1 Topping System
3.2.2 Bottoming System
3.2.3 Additional Applications for Waste Heat
3.3 Prime Movers
3.3.1 Prime Mover Segmentation
3.3.2 Installed Costs
3.3.3 Efficiencies and Emissions Profiles
3.3.4 Turbines vs. Gensets
3.3.5 Prime Mover Innovations
3.3.5.1 Reciprocating Engine Gensets
3.3.5.2 Turbines
3.3.5.3 Fuel Cells
3.4 Components
3.4.1 Heat Recovery Device
3.4.2 Utility Interface
3.4.3 Controls
3.4.4 Automation
3.5 Fuel Innovations
3.5.1 Natural Gas
3.5.1.1 Gas Turbines with HRSG
3.5.1.2 CCGTs
3.5.2 Opportunity Fuels
4. Key Industry Players
4.1 Key Industry Player Overview
4.2 Company Profiles
4.2.1 2G CENERGY Power Systems Technologies, Inc.
4.2.2 ABB
4.2.3 Alstom Power
4.2.4 Capstone Turbine Corporation
4.2.5 Caterpillar
4.2.6 Cogenra Solar
4.2.7 Cummins Power Generation
4.2.8 Dalkia
4.2.9 Dongfang Electric Corporation
4.2.10 Dresser-Rand
4.2.11 E.ON
4.2.12 ElectraTherm
4.2.13 ENER-G
4.2.14 GE Power & Water
4.2.15 Metso Corporation
4.2.16 Mitsubishi Heavy Industries, Ltd.
4.2.17 OPRA Turbines BV
4.2.18 Recycled Energy Development, LLC
4.2.19 Rolls Royce International Ltd.
4.2.20 Siemens Energy Sector
4.2.21 Solar Turbines Inc.
4.2.22 Wärtsilä
5. Market Forecasts
5.1 Industrial CHP Forecast Overview
5.1.1 Forecast Methodology
5.1.2 Forecast Scenarios
5.2 Forecast by Scenario
5.3 Forecast by Region
5.3.1 Installed Capacity
5.3.2 Revenue
5.3.3 Market Penetration
5.4 Forecast by Country
5.4.1 Installed Capacity
5.4.2 Revenue
5.4.3 Country Characteristics Driving Industrial CHP
5.4.3.1 Countries with DH
5.4.3.1.1. Russia
5.4.3.1.2. South Korea
5.4.3.1.3. Germany
5.4.3.2 Low Electricity Capacity Margin Countries
5.4.3.2.1. United Kingdom
5.4.3.2.2. Japan
5.4.3.2.3. China
5.4.3.2.4. India
5.4.3.2.5. Brazil
5.4.3.3 Shale Gas Opportunity Countries
5.4.3.3.1. United States
5.4.3.3.2. Canada
5.4.3.4 Reliance on Fossil Fuel Exports
5.5 Conclusions and Recommendations
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Annual New Revenue from Industrial CHP Installations by Region, World Markets:2013-2023
- Total Installed Industrial CHP Capacity by Region, World Markets: 2006-2012
- Share of Total Installed CHP Capacity by Country, World Markets: 2012
- Installed CHP/DH Capacity as Share of Total Generating Capacity by Country, World Markets: 2006-2012
- Fuel Input Share for CHP by Market, Pulp and Paper Industry, United States: 2012
- Average Spot Price of Natural Gas by Country, World Markets: 2001-2012
- Average Installed Cost for Industrial CHP by Configuration, World Markets: 2012
- Annual New Industrial CHP Capacity by Scenario, World Markets: 2013-2023
- Total Installed Industrial CHP Capacity by Region, World Markets: 2013-2023
- Cumulative New Industrial CHP Revenue by Region, World Markets: 2013-2023
- Industrial CHP Share of Total Installed Generating Capacity by Region, World Markets: 2013-2023
- Total Installed Industrial CHP Capacity by Country, World Markets: 2013-2023
- Industrial CHP Capacity Growth by Country, World Markets: 2012-2023
- Cumulative New Industrial CHP Revenue by Country, World Markets: 2013-2023
- Annual New Industrial CHP Capacity by High DH Country, World Markets: 2013-2023
- Annual New Industrial CHP Capacity by Low Electricity Capacity Margin Country, World Markets: 2013-2023
- Annual New Industrial CHP Capacity by Shale Gas Opportunity Country, World Markets: 2013-2023
- Share of Total Installed Industrial CHP Capacity by Application, United States: 2013
- Industrial CO2 Emissions Trends, World Markets: 1990-2010
- Share of Refining Capacity by Region, World Markets: 1965-2010
List of Tables
- Industrial CHP Applications
- Industrial CHP Inputs and Outputs
- Summary of CHP Prime Mover Technologies
- Prime Mover Technology Characteristics
- Summary of Efficiencies and Emissions Profiles by Technology
- Biomass Opportunity Fuels by Type
- Industrial CHP Key Player Value Chain
- Top 15 Natural Gas Export Income as Percentage of GDP, World Markets: 2012
- Annual New Revenue from Industrial CHP Installations by Region, World Markets: 2013-2023
- Total Installed Generation Capacity by Region and Country, All Sources, World Markets: 2006-2023
- Total Installed Industrial CHP Capacity by Region and Country, World Markets: 2006-2012
- Share of Total Installed Industrial CHP Capacity by Country, World Markets: 2012
- Installed CHP/DH Capacity as Share of Total Generating Capacity by Country, World Markets: 2006-2012
- Fuel Input Share for CHP by Market, Pulp and Paper Industry, United States: 2012
- Average Spot Price of Natural Gas by Country, World Markets: 2001-2012
- Average Installed Cost for Industrial CHP by Configuration, World Markets: 2012
- Total Installed Industrial CHP Capacity by Scenario, World Markets: 2013-2023
- Annual New Industrial CHP Capacity by Scenario, World Markets: 2013-2023
- Annual New Industrial CHP Revenue by Scenario, World Markets: 2013-2023
- Cumulative New Industrial CHP Revenue by Scenario, World Markets: 2013-2023
- Total Installed Industrial CHP Capacity by Region, World Markets: 2013-2023
- Annual New Revenue from Industrial CHP Installations by Region, World Markets: 2013-2023
- Cumulative New Industrial CHP Revenue by Region, World Markets: 2013-2023
- Industrial CHP Share of Total Installed Generating Capacity by Region, World Markets: 2013-2023
- Gas Engines and Turbine Niches