Energy-intensive industrial sites in the food processing, pulp & paper, chemicals, metals and oil refining sectors have been traditional hosts for CHP facilities; in fact, these industries represent more than 80% of the total global electric CHP capacities. These plants generally have high process-related thermal requirements not subject to daily and seasonal weather-related fluctuations, so energy is an important part of their business, and operation and maintenance personnel are available and competent to manage CHP systems. In some industries, low-cost fuel sources (i.e. waste streams) are available for use in CHP systems. While industrial systems over 1 MWe make up the bulk of global CHP capacity, many smaller-scale industrial sites have smaller systems, utilising technologies similar to those used in commercial buildings.

The introduction and sizing of CHP in this sector depend on heat and electricity demand, and arrangements with the electric grid (both sales of surplus and purchases of back-up power). The grid can provide back-up power for many CHP plants during maintenance or down times, although different types of industrial facilities have different levels of tolerance for the loss of thermal load. Importantly, the availability and price of natural gas, the fuel of choice for most new industrial CHP systems, will be a key factor in the level of CHP development for the industrial market.  It is expected that in the future, CHP can expand into new industrial applications with further research and demonstration to lower the costs of high-temperature CHP, fuel cell CHP, and micro-turbine CHP.