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Co-generation power

Inputs, Costs & Commodities · Energy & power cost

What it is

Carbon black production releases large volumes of hot tail gas, which can be burned to raise steam and generate electricity. A plant can therefore be a meaningful power producer alongside its main product

The power is used captively or sold to the grid

Impact on industries

  • Converts a waste stream into a second revenue line at essentially zero incremental fuel cost, materially improving plant economics
  • Captive power reduces exposure to grid tariffs across the whole operation, and surplus can be sold
  • Power revenue depends on tariffs and open-access rules that vary by state and can be changed administratively
  • It makes carbon black plant economics genuinely dual-product, so comparing producers on carbon black margin alone is misleading

Industries affected