Biomass is organic matter derived from living, or recently living organisms. Biomass can be used as a source of energy and it most often refers to plants or plant-based materials which are not used for food or feed, and are specifically called lignocellulosic biomass. As an energy source,biomass can either be used directly via combustion to produce heat, or indirectly after converting it to various forms of bio fuel.

Cogeneration –¬†Cogeneration or combined heat and power (CHP) is the use of a heat engineor power station to generate electricity and useful heat at the same time. Cogeneration is a thermodynamically efficient use of fuel. In separate production of electricity, some energy must be discarded as waste heat, but in cogeneration some of this thermal energy is put to use. All thermal power plants emit heat during electricity generation, which can be released into the natural environment through cooling towers, flue gas, or by other means. However, CHP uses heat that would be wasted in a conventional power plant, potentially reaching an efficiency of up to 80%.