Cogeneration means simultaneous production of two or more types of energy. Normally the generated energy are electricity and heat, but can also mechanical energy and heat(and/or cold).
The aim of cogeneration is that large amount of energy is not lost and take full advantage. Most companies with cogeneration heat required for their production processes, and for that reason they need to generate electric power to fulfill that function. Having cogeneration has its advantages, such as reducing fuel consumption, reduce production costs and less environmental impact.