Combined Heat & Power (CHP)

Propane-powered CHP systems deliver high-efficiency, on-site electricity and thermal energy that reduce waste, lower emissions, strengthen energy resilience, and drive long-term cost savings for commercial and industrial facilities.

CHP

One System. Two Outputs. Greater Efficiency.

With on-site propane storage, CHP systems operate independently of the grid or alongside it. By generating electricity and capturing usable heat for space and water heating, they achieve significantly higher total efficiency than conventional power generation. Select configurations also offer black start capability, keeping facilities operational during outages or severe weather.

High Total System Efficiency

Generate electricity and capture usable heat from one fuel source, achieving up to 80% efficiency.

Low Total Energy Costs

Reduced reliance on the grid, lower demand charges, and improved long-term cost predictability.

Grid-Independent Energy

On-site fuel storage and black start capability enable grid-independent operation during outages.

Scalable Infrastructure

Wide range of system sizes with modular, redundant configurations — no major grid upgrades required.

High Total System Efficiency

Generate electricity and capture usable heat from one fuel source, achieving up to 80% efficiency.

Low Total Energy Costs

Reduced reliance on the grid, lower demand charges, and improved long-term cost predictability.

Grid-Independent Energy

On-site fuel storage and black start capability enable grid-independent operation during outages.

Scalable Infrastructure

Wide range of system sizes with modular, redundant configurations — no major grid upgrades required.

Turn Energy Challenges Into a Funded Opportunity

Through the Alternative Technology Demonstration & Research Program, qualifying businesses can earn compensation for incorporating propane-powered cooling, Combined Heat & Power (CHP), or solid oxide fuel cells (SOFC) into their operations — while contributing valuable real-world performance data.

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Is CHP Right for Your Facility?

Energy demand, thermal load, and resiliency requirements vary across facilities. Propane CHP systems can be configured as prime power, standby power, or as part of a hybrid microgrid strategy — depending on operational goals. Below are typical CHP configurations based on facility size and operational needs.

CHP System Applications by Scale

APPLICATION SCALE TYPICAL FACILITY TYPES TYPICAL ELECTRICAL OUTPUT RANGE THERMAL OUTPUT TYPE OPERATING MODE MODULARITY
Small Commercial Offices, retail, restaurants, clinics, municipal buildings 5 kW – 150 kW Domestic hot water, light space heating Grid-parallel or standby support Single-unit systems
Mid-Scale Commercial Multifamily, hospitality, healthcare, senior living, campus-style buildings 150 kW – 1 MW Space heating, hot water, process heat Grid-parallel, peak shaving, limited island mode Multi-unit scalable systems
Large / Industrial Manufacturing, food processing, district energy, large campuses, distribution centers MW+ Continuous process heat, district heating, steam Prime power, microgrid integration, island mode capable Fully modular, expandable arrays

Application Scale: Small Commercial
Typical Facility Types: Offices, retail, restaurants, clinics, municipal buildings
Typical Electrical Output Range: 5 kW – 150 kW
Thermal Output Type: Domestic hot water, light space heating
Operating Mode: Grid-parallel or standby support
Modularity: Single-unit systems
Application Scale: Mid-Scale Commercial
Typical Facility Types: Multifamily, hospitality, healthcare, senior living, campus-style buildings
Typical Electrical Output Range: 150 kW – 1 MW
Thermal Output Type: Space heating, hot water, process heat
Operating Mode: Grid-parallel, peak shaving, limited island mode
Modularity: Multi-unit scalable systems
Application Scale: Large / Industrial
Typical Facility Types: Manufacturing, food processing, district energy, large campuses, distribution centers
Typical Electrical Output Range: MW+
Thermal Output Type: Continuous process heat, district heating, steam
Operating Mode: Prime power, microgrid integration, island mode capable
Modularity: Fully modular, expandable arrays
propane tank Decorative diamond-shaped image used in promotional banner.

Build Your CHP Energy Strategy

Every CHP project has unique electrical and thermal demands. Connect with a propane power generation expert to evaluate load requirements and determine how a propane CHP solution can deliver efficiency, resilience, and long-term cost control. We can also connect you with qualified manufacturers and implementation partners to support deployment.

Schedule a Meeting

California’s Benbow Inn Uses Propane for Reliable, Clean Power

In remote Garberville, California, the Benbow Historic Inn is utilizing propane and combined heat and power (CHP) equipment to ensure that their operations run smoothly and uninterrupted to provide the ultimate guest experience.

Propane Powers More Than CHPs

Propane supports a full range of power generation solutions, including prime and standby power, microgrids, combined heat and power (CHP), EV charging, and mobile power. Together, these applications help facilities plan for resilience, improve efficiency, and maintain control across changing energy demands.

Explore Propane Power Solutions