Руслан Делідон — 18.02.2026
A cogeneration plant is a business response to an unstable power grid, high tariffs, and the risk of process shutdowns. When electricity becomes scarce and heat becomes an expensive resource, combined energy production ceases to be an “alternative” and becomes basic infrastructure. In this article, we will examine what a cogeneration plant is, how it operates, the types and capacities available, its associated costs, and how to determine whether it meets the specific needs of your business.
A cogeneration plant is a system for the simultaneous production of electrical and thermal energy from a single fuel source. In practice, this means that the enterprise receives not only electricity generation, but also useful heat, which is used for heating, hot water supply or technological processes.
In short, a cogeneration plant is a way to extract the maximum energy from every cubic metre of gas or tonne of biomass. That is why cogeneration of heat and electricity is considered one of the most efficient forms of combined generation.
For more details on the principles and solutions, please refer to the page Cogeneration plant.
In practice, a cogeneration plant is a complex engineering system in which each element works to increase overall efficiency. The key idea is not simply to generate electricity, but to maximise the use of all the energy in the fuel.
Fuel (natural gas, biogas or other gas-containing resource) is fed into an internal combustion engine or turbine. During combustion, mechanical energy is produced, which rotates the generator shaft and is converted into electricity generation. But the process does not end there. Up to 60% of the fuel’s energy is extracted in the form of heat in the exhaust gases, engine cooling system and lubricant.
Through a system of heat exchangers, this heat is extracted and used to heat buildings, heat water or for technological processes. This is how combined energy production is implemented, where electricity and heat are produced simultaneously from a single source. This is where energy cogeneration begins.
For biogas projects, the system is equipped with a gas purification unit. Before being fed into the engine, biogas undergoes dehumidification and desulphurisation. That is why the preparation of raw materials for biogas and the quality of gas directly affect the engine’s service life and the stable operation of the entire cogeneration plant.
For biogas projects, a key stage is preparing raw materials for biogas. More details on this are provided in articles.
The most common solution is a gas piston cogeneration unit. It works well under variable loads, starts up quickly, and is optimal for most businesses. Gas turbine systems are used at large facilities with constant loads, while microturbine systems are used for compact solutions.
The most commonly used is a natural gas cogeneration plant. For the agricultural sector and food industry, cogeneration plants running on biogas produced from waste are becoming increasingly relevant. More details about biogas production for cogeneration.
Modern cogeneration stations can be containerised, modular, stationary or mobile. This allows solutions to be integrated into both industrial areas and temporary facilities.
Small installations — up to 1 MW — are the most popular for businesses:
Cogeneration plants over 1,000 kW are used in both industry and energy projects.
Gas piston cogeneration units are the most versatile and common type for businesses. They combine relatively low capital costs, high efficiency, and flexibility in handling loads.
The main advantage of gas piston systems is their ability to operate efficiently under variable consumption conditions. This is critically important for shopping centres, agricultural enterprises, logistics hubs, and manufacturing facilities, as loads fluctuate significantly throughout the day and year.
In addition, cogeneration gas piston units are manufactured for specific types of fuel — natural gas or biogas. These are different series of engines with different components and fuel systems, taking into account different gas consumption volumes and operating pressures. That is why most of ProEnergy’s cogeneration projects are based on gas piston equipment selected for the actual fuel conditions of the facility. With proper operation and regular maintenance, the engine’s service life reaches tens of thousands of motor hours, ensuring stable and predictable operation for many years.
“Gas piston KGU is the optimal choice for businesses that want to quickly achieve autonomy without excessive investment,” ProEnergy engineers admit.
A natural gas cogeneration plant is the most common option for implementing CHP in Ukraine. The reason is simple: the gas infrastructure already exists, and gas itself provides a stable fuel composition, which has a positive effect on equipment resources.
For businesses, this means predictable economics and faster project start-up. In most cases, connecting to the gas network requires significantly less investment than building a full-fledged biogas complex. That is why gas KGU are often used as the first step in the transition to an autonomous energy supply.
In wartime conditions, such decisions have become particularly relevant. Companies with their own cogeneration facilities were able to continue operating even during mass power cuts. For more details, see the article The advantages of cogeneration in wartime.
One of the implemented cases is a metalworking enterprise with a 1 MW cogeneration plant. The project provided the enterprise with its own electricity and heat generation for technological processes, reduced its dependence on centralised energy supply, and increased the stability of production.
More details: an implemented cogeneration project for a metalworking enterprise.
Another case study involves a woodworking enterprise for which a cogeneration plant became the solution for uninterrupted operation in conditions of unstable energy supply. In-house generation made it possible to cover the basic energy needs of production and effectively use heat in technological processes.
Detailed description of the project: cogeneration plant for a woodworking factory.
The price of a cogeneration plant depends on its capacity, fuel type and configuration. On average:
To find out how much it will cost to design, install and connect a turnkey solution to meet the energy needs of your business, please submit a request on our website.
Before purchasing a cogeneration plant, it is important to assess electricity and heat consumption, available fuel, operating mode, and scaling prospects. This is where Pro-Energy’s design process begins.
Download the checklist “Is KGU right for my business?“ free of charge to analyse the real needs of your business.
A cogeneration plant is not just a piece of equipment, but a strategic solution. It ensures reduced energy costs, stability and control at a time when energy has become a critical resource.
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