It’s not a sexy technology like growing fuel from algae or concentrated solar power, but combined heat and power (CHP) technology will likely be a growth industry in the coming years.

Capturing heat that is produced onsite should be as obvious as turning off unneeded lights, but we’ve only seriously taken concept that to heart recently, too. The heat, which is a byproduct of fossil fuel combustion or fuel cell power generation, can be turned into electricity or used it to warm buildings or water. CHP systems can be up to 80 percent energy efficient, more than double the effectiveness of standalone fossil fuel generators.

Since it leverages existing power generation (instead of replacing it with emerging technology), CHP can be easier, and more cost-effective to install at existing facilities. Conservative organizations also feel safer installing something with a long history of proven reliability.

CHP contractors might be seeing government agencies repeatedly showing up on their caller ID. Local governments that invest in CHP projects are also eligible for stimulus grant money. CHP is included in the $3.2 billion available to states, cities and counties as part of the grants for energy efficiency initiatives under the American Recovery and Reinvestment Act.

In addition to the stimulus carrot, congress is considering a stick to force utilities to become more energy efficient. Under a bill being drafted in the House of Representatives, utilities would be required to achieve energy savings of between 10 and 15 percent by 2020. As with the grant money, CHP projects are considered energy saving investments, under the proposed legislation.

CHP, which is sometimes referred to as cogeneration (as in producing both heat and power), was responsible for 8 percent of global electricity generation in 2008, a number that should reach double figures soon.

While reducing your carbon footprint with CHP won’t be as prominent as adding solar panels (and of course you can do both), it may win your organization a nice plaque from the EPA.