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Co-generation power
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