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The use of a cogeneration system would lead to higher energy efficiencies. The U.S. has seen declined interest before 1978 and renewed interest since then due to the enactment of PURPA. This paper discusses the working principles and cost-effect of cogeneration. Based on an economic analysis, this paper proposes an application of a high reward, low risk cogeneration system for a small food processing plant. Sensitivity analyses are performed, which can be used by site managers to determine a suitable configuration and appropriate operating mode. A system similar to the proposed system appears to have the greatest potential for future use in industrial and commercial applications.