The Top Industries Benefiting from CHP in the UK

In today’s energy landscape, efficiency, resilience, and sustainability are no longer optional, they are business-critical. That’s why Combined Heat and Power (CHP) remains a leading solution across the UK. CHP systems generate electricity on site and capture the heat that would normally be wasted, delivering overall efficiencies of 80–90% compared with around 50% for conventional generation.

For organisations facing high energy bills and pressure to decarbonise operations, CHP provides a proven solution. While CHP alone cannot deliver full decarbonisation, it plays an important role when combined with renewable energy sources and low-carbon fuels. Some sectors stand out as especially well-suited to reap the rewards. Here are the top UK industries benefiting from CHP today and why your business might be next.

Healthcare: Powering Hospitals and the NHS

Hospitals operate 24/7, with constant demand for lighting, heating, sterilisation, and hot water. This makes healthcare facilities some of the UK’s most energy-intensive sites. Many NHS Trusts have already invested in CHP systems to reduce costs and strengthen operational resilience.

By producing heat and power onsite, CHP helps hospitals:

• Cut millions in energy spend over project lifetimes
• Improve the reliability of energy supply alongside other technologies

Support the NHS Net Zero plan when combined with renewable resources and low-carbon technologies

Food & Beverage: Energy for Processing and Production

Food and drink manufacturers rely on constant supplies of electricity and heat for pasteurisation, cooking, sterilisation, and cleaning. In a sector where margins are tight, CHP provides both cost stability and operational efficiency.

CHP also allows businesses to:

• Reduce dependency on volatile grid prices
• Use waste heat for drying, cleaning, and hot water
• Make better use of fuel by capturing heat that would otherwise be wasted

Anaerobic Digestion (AD) Plants: Turning Waste into Power

AD plants are one of the most natural partners for CHP. The digestion process produces biogas, which can be used directly in CHP engines. This generates electricity for on-site operations or export, while waste heat supports digester temperature control, drying processes, or even district heating schemes.

For AD operators, CHP delivers:

• Energy self-sufficiency by converting biogas into reliable power
• New revenue streams, for example from exporting surplus electricity or upgrading biogas into biomethane and capturing CO₂ for reuse
• Efficient use of waste heat, boosting overall plant efficiency
• Stronger sustainability outcomes, with renewable CHP supporting the circular economy

Ultimately, CHP transforms biogas into maximum value, making AD plants one of the top industries for CHP deployment.

Data Centres: Meeting Energy and Cooling Demands

Data centres are among the fastest-growing energy users in the UK. With servers running 24/7, electricity consumption is vast, and ensuring a stable supply is mission-critical. At the same time, cooling requirements add to their already high energy demand.

By installing CHP, data centres can:

• Lower electricity costs through efficient on-site generation
• Ensure security of supply, protecting against grid constraints or outages
• Recycle waste heat into absorption chillers for efficient cooling
• Strengthen sustainability plans by reducing reliance on grid electricity

As demand for digital services grows, data centres that embrace CHP can stay ahead on both cost control and energy resilience.

Industrial & Chemical Processing: Powering Heavy Industry

Chemical plants, paper mills, and other energy-intensive manufacturers are long-time adopters of CHP. These facilities require both electricity and high-grade steam, exactly what CHP delivers.

Key benefits for industry include:

• Lower production costs
• Reduced exposure to energy market price volatility
• Improved competitiveness in global markets

Is CHP Right for Your Organisation?

If your business faces high energy bills, operates long hours, or requires a reliable energy supply, CHP could be the solution. Whether you’re a hospital, food manufacturer, AD operator, or data centre, CHP provides proven efficiency, resilience, and long-term cost savings.

CHP can also play an important role in supporting wider decarbonisation strategies when combined with renewable energy sources or future low-carbon fuels such as hydrogen or biogas.

Contact our team to explore how CHP could reduce your energy costs and strengthen your sustainability plans.