Global CHP sector to grow to $30bn and expand to emerging markets

Global revenue from industrial combined heat and power will grow from last year’s figure of $19.7bn to $29.8bn in 2023, according to a new report.

CHP

The study by US firm Navigant Research says that this growth will come of the back of renewed interest in the technology, which it says has “stagnated in countries like the US and Russia in recent years”.

Currently, the industrial CHP market represents just under 6 per cent of global installed electricity generating capacity. In 2012, North America and Europe accounted for 80 per cent of global installed industrial CHP capacity, but Navigant is predicting its spread to reach other regions.

“Driven by concerns about grid reliability, meeting demand for electricity, improving grid efficiency, and reducing greenhouse gas emissions, many governments are increasing subsidies and other incentives for the adoption of industrial CHP systems,” says Navigant.

The company’s principal research analyst, Mackinnon Lawrence, said: “While currently installed industrial combined heat and power capacity is mostly concentrated in energy-consuming economies that have large industrial processing and manufacturing bases, growth in emerging markets, along with the expansion of refinery assets to serve these markets, represents an attractive opportunity.

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