PGW offers several energy options for businesses in addition to embracing new and evolving technologies:
How CHP Works
CHP—also known as cogeneration—simultaneously produces electricity and useful thermal energy from a single fuel source: natural gas. This integrated system captures and repurposes waste heat that would otherwise be lost, significantly improving overall efficiency.
- Reduces reliance on the electric grid by partially offsetting electricity purchases.
- Captures waste heat to produce steam or hot water for HVAC systems and domestic use.
- Absorption chillers can convert captured heat into cooling, supporting year-round climate control.
- Increases energy efficiency and reduces emissions compared to traditional separate heating and power systems.
CHP Efficiency & Key Benefits
- Superior Efficiency: Traditional power plants operate at about 40% efficiency, losing much of the energy during generation and transmission. CHP systems, by contrast, can achieve up to 85% efficiency by generating electricity on-site and using the waste heat—more than twice as efficient as grid-supplied electricity.
- Lower Operating Costs: CHP can significantly reduce both electricity and heating costs, making it an ideal solution for facilities with steady thermal demands and a smart investment in long-term economic sustainability.
- Resilience & Reliability: On-site generation enhances energy security by reducing dependence on the electric grid and providing backup power during outages.
- Environmental Benefits: By maximizing fuel use and minimizing waste, CHP systems lower overall energy consumption and greenhouse gas emissions.
Ideal Applications for CHP
CHP is a practical and effective energy solution for facilities with consistent heating and cooling needs, including:
- Hospitals, universities, and research institutions
- Hotels, office buildings, and fitness centers
- Industrial manufacturers, food processing facilities, and chemical plants
- Other commercial operations with year-round thermal loads
Incentives for Micro-CHP (mCHP) Systems
PGW has successfully supported customers in implementing 30+ CHP projects across Philadelphia. We're committed to helping businesses reduce energy costs, improve reliability, and contribute to a more sustainable city.
To support customers in adopting efficient energy solutions, PGW offers incentives for qualified micro-CHP installations. If your facility is considering CHP, contact our team to learn more about eligibility and program details: MajorAccounts.Hotline@pgworks.com
Curious about how CHP works or if it’s the right fit for your facility? We're here to help.
- Download our CHP Handout for a detailed overview
- Contact us at MajorAccounts.Hotline@pgworks.com to schedule a personalized evaluation
In October 2023, President Joe Biden and public officials from across Pennsylvania visited Philadelphia to announce a $7 billion federal investment in America's first Clean Hydrogen Hubs. One of the seven hubs selected was the Mid-Atlantic Clean Hydrogen Hub (MACH2).
As part of the MACH2 initiative, PGW has partnered with the City of Philadelphia, local unions, industry leaders, educational institutions, and regional organizations to create a robust hydrogen ecosystem connecting producers and consumers across Delaware, Southern New Jersey, and Southeastern Pennsylvania.
Backed by a $750 million federal grant, the MACH2 consortium will unlock an estimated $3 billion in total regional investment. This transformative funding is expected to create and retain between 13,000 and 20,000 well-paying jobs, catalyzing a new regional economy rooted in clean energy and low-carbon innovation.
"Given its potential to help address the climate crisis, enhance energy security and resilience, and create economic value, interest in producing and using clean hydrogen is intensifying both in the United States and abroad. Zero- and low-carbon hydrogen is a key part of a comprehensive portfolio of solutions to achieve a sustainable and equitable clean energy future."- U.S. Department of Energy
The Role of Clean Hydrogen
Clean hydrogen offers a wide range of benefits and potential uses:
- Can deliver up to 10% in economy-wide emissions reductions by 2050
- Projected to create 100,000 jobs by 2030
- Plays a vital role in decarbonizing energy systems
While natural gas remains the cleanest fossil fuel, blending it with decarbonized gases like hydrogen can further accelerate progress toward carbon neutrality. Hydrogen is a lightweight, versatile fuel that can be extracted from natural gas and blended into existing natural gas distribution systems to help meet local energy needs.
Moreover, hydrogen’s emissions can be captured and reused to power wind turbines, gas turbines, or other forms of clean energy infrastructure, further reducing the carbon footprint.
Most hydrogen today is produced via steam-methane reforming, a process that uses high-temperature steam to extract hydrogen from natural gas. While this method requires substantial investment and infrastructure, it has the potential to significantly cut greenhouse gas emissions if paired with carbon capture and other clean technologies.
President Biden committed the United States to the following carbon reduction targets:
- 50% reduction in economy-wide net greenhouse gas emissions by 2030 (from 2005 levels)
- 100% carbon pollution-free electricity by 2035
- Net-zero carbon emissions across the economy by 2050
How Natural Gas Cooling Works
These systems harness natural gas to drive the cooling process, delivering powerful performance while reducing reliance on the electric grid. They provide a high-efficiency alternative to conventional electric chillers by using natural gas to power the refrigeration cycle, rather than electricity-driven compressors.
Key Benefits of Natural Gas Cooling
- Electric Grid Relief: Significantly reduces electrical demand and consumption by shifting cooling loads to natural gas—helping to ease strain on Philadelphia’s electric grid.
- High-Efficiency Performance: Delivers effective cooling with lower energy waste.
- Lower Operating Costs: Natural gas typically costs less than electricity, offering the potential for substantial energy savings.
- Enhanced Reliability: Natural gas systems are less vulnerable to power outages, ensuring uninterrupted cooling during peak usage periods.
PGW’s Commitment to Smarter Cooling
At PGW, we’re committed to delivering innovative energy solutions that meet your facility’s cooling needs while supporting a more resilient and sustainable energy future for Philadelphia.
By adopting natural gas cooling systems, businesses can lower operational costs, reduce environmental impact, and contribute to electric grid stability citywide.
To discover how natural gas cooling can benefit your facility, contact us today at: MajorAccounts.Hotline@pgworks.com
How Natural Gas Heat Pumps Work
Unlike traditional electric heat pumps, GHPs are powered primarily by natural gas, significantly lowering electricity demand while delivering year-round comfort.
- A natural gas-powered engine drives the system’s compressor, replacing electric motors and reducing operating costs.
- GHPs offer high efficiency in both heating and cooling modes.
- They deliver reliable performance in extreme temperatures, making them especially effective during Philadelphia’s coldest months.
Key Benefits of GHPs
- Grid Resiliency: With many Philadelphia buildings facing electrical capacity constraints, GHPs help free up grid demand by operating on natural gas—an alternative that supports system-wide reliability.
- Lower Operating Costs: Natural gas typically costs less per BTU than electricity, providing long-term savings on energy bills.
- Smaller Carbon Footprint: By consuming natural gas directly on-site, GHPs avoid the energy losses associated with electricity transmission and distribution.
- All-Weather Performance: Unlike traditional electric heat pumps that lose efficiency in low temperatures, GHPs remain effective and efficient—even in freezing conditions.
Ideal Applications for GHPs
Natural Gas Heat Pumps are well-suited for:
- Multifamily and commercial buildings with limited electrical capacity
- Schools, hospitals, and offices seeking reliable, energy-efficient HVAC systems
- Retrofit projects where upgrading electric infrastructure is cost-prohibitive
- Businesses planning HVAC system upgrades with a focus on cost and performance
PGW is committed to helping customers explore GHP solutions that reduce energy costs, improve efficiency, and ease the load on Philadelphia’s electrical infrastructure.
- Download our GHP Handout for more information
- Contact us at MajorAccounts.Hotline@pgworks.com to schedule a consultation or site evaluation
In August 2022, PGW received budget approval from the Philadelphia Gas Commission to explore the feasibility of a network geothermal pilot within PGW’s service territory.
What is Network Geothermal?
Network geothermal is a renewable energy system that uses underground wells, piping, and heat pumps to transfer heat between buildings and the Earth. In the winter, it draws warmth from the ground to heat buildings. In the summer, it removes indoor heat and returns it underground to cool spaces. This clean energy comes from a combination of solar radiation and the Earth’s internal heat, offering a sustainable way to heat and cool buildings and produce hot water.
What Determines a Successful Pilot?
To assess whether network geothermal is a viable addition to PGW’s energy offerings, the pilot will evaluate several key factors:
- Cost to customers
- Benefits to customers
- Customer and community feedback
- Reduction in greenhouse gas emissions
- Potential billing structures
- Scalability and future expansion potential
