New Jersey is setting aside US$3.2 million in federal stimulus funds for projects at state-owned facilities and institutions to build combined heat and power (CHP) plants, a move that could allow colleges and state agencies to benefit from substantial energy savings.

CHP is viewed by state officials as a way of generating more electricity and increasing the reliability of the grid, while producing less greenhouse gas emissions than conventional fossil fuel plants.

In 2010, the state agency and the New Jersey Economic Development Authority jointly allocated $18 million to fund six CHP projects, but one of the grant recipients dropped out and money became available to partially fund projects at state facilities.

The funded projects included two casinos, a Newark brewery, a nutritional products manufacturer, a hospital in Princeton and Ocean County College.

New Jersey’s Energy Master Plan calls for the development of at least 1500 MW of CHP by 2020 to help meet the state’s power needs.

To-date, most CHP plants have been installed at industrial facilities, particularly those with big energy loads.

For more Cogeneration/CHP news click here.