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White House Sets Goal of 40 Gigawatts of New Combined Heat and Power (CHP) Capacity by 2020

WASHINGTON, D.C. (August 30, 2012) - The American Chemistry Council (ACC) issued the following statement in response to the Obama Administration's release of an Executive Order calling for greater industrial energy efficiency and a national goal to deploy 40 GW of new combined heat and power (CHP) capacity by 2020.

"The American Chemistry Council welcomes today's Executive Order that recognizes the important contribution of CHP in improving energy efficiency and easing the major transition underway in America's electricity sector. The President's CHP goal is ambitious, and represents about a 50 percent increase in deployed CHP capacity."

"Expansion of CHP capacity can make American manufacturers more competitive in the global economy and can stretch our nation's natural gas supplies that benefit a wide variety of industries across the country."

"In addition to the goal of new CHP capacity, the Executive Order incorporates a number of other industrial efficiency initiatives, including better coordination by federal agencies with states to more carefully consider CHP projects in the development of State Implementation Plans and encourage new investment in industrial efficiency; and employing 'output based approaches' in power and industrial sector regulations, which will advantage technologies like CHP over less efficient energy generation systems."

The business of chemistry is a leader and innovator in industrial energy efficiency, including CHP, also known as cogeneration. Chemical makers and many other manufacturers use natural gas to create two forms of energy-steam and electricity-for industrial facilities. Known as CHP, this energy is generated close to where it is needed, so little is lost in transmission. CHP can produce energy twice as efficiently as older coal-burning electric utilities.

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