Abstract
The goal of this study is to investigate how co-operation between industry and district heating companies can improve profitability of biofueled cogenerative investments in small to medium-sized applications. Currently advanced biomass gasification and gas turbine combined cycle has been found to be a promising cogenerative conversion technology for the recovery of heat present in biomass fuel. Increased biofuel based cogenerative power production in the future is clearly dependent on the improvement of both performance and investment costs of new high performance technology, and on the nature of policy instruments designed to promote the technology. The use of biofuels for cogeneration on a large scale is focused mainly on forest industry sites, where considerable quantities of biomass are available. While cogeneration provides several environmental benefits by making use of waste heat and waste products, air pollution is a concern any time fossil fuels or biomass are burned.