Since 1997, the European Union (EU) has been creating a legal and regulatory framework for the encouragement of cogeneration as an instrumental and accessible tool in its effort to promote energy efficiency and a sustainable future. Cogeneration – the generation of both heat and electricity in one plant using the same fuel – relies on “recycling” excess heat energy which would normally be vented out as exhaust. Combined heat and power (CHP) plants offer significant reductions in energy losses and have achieved production efficiencies as high as 95%, compared with a world wide average of about 34% in electricity-only plants.