Chemical production is highly dependent on natural gas, the primary fuel source for most CHP systems. Furthermore, chemical manufacturers consumed approximately 36% of the U.S. natural gas supply both as fuel and process feedstocks. In terms of natural gas for fuel use, 55% is consumed as boiler fuel (with just over half of that used in CHP/cogeneration boilers and the remaining amount used in conventional boilers) and 40% is used for direct process inputs (primarily process heating). The remaining portion is composed of non-process uses such as facility HVAC and conventional electricity production. Cogeneration and self-generation of electricity are important
in this industry, with 31% of net electricity consumption produced through cogeneration processes in 2002.

Given that Alcor’s business model allows it to manufacture and install a CHP system at a fraction of the cost of competing systems, we can make projects that were previously considered “economically unfeasible” profitable for both Alcor and the host.