Cogeneration, or the combination of heat and power (CHP), is the use of a heat engine or power station to simultaneously generate both electricity and useful heat.
All engines emit a certain amount of heat during electricity generation, but while the electricity is always used, the heat is typically unused and treated as waste. Typically it is released into the environment through cooling towers or by other means.
Cogeneration technology allows this waste heat by-product to be re-used in boilers and dryers, saving a substantial amount of fuel. By producing both electrical and thermal energy at the same time, cogeneration technology produces more energy from a single fuel source.
This process is the best technology for energy conservation.