The UK Government must use its low carbon industrial strategy to secure 140,000 jobs in the cogeneration sector of the economy.

A new report, commissioned by the CHPA, shows that there are 5,000 people employed directly in the combined heat and power industry in the UK. These span manufacturing, maintenance, design and plant operation. An estimated further 25,000 UK jobs are associated with the supply chain for the cogeneration industry.

In addition, the UK manufacturing sites, which have their energy needs met by combined heat and power plant, employ 116,000 people. There is currently just over 5 GW of installed CHP plant in the UK.

"There is massive employment potential in reaching the government's target of 10 GW of installed cogeneration capacity by 2010," says Graham Meeks, director of the CHPA. "Sadly, there is little appetite for building new plant at the moment because of the uncertainty concerning the future of current support mechanisms namely Climate Change Levy exemption."

"The government has a great opportunity in the forthcoming Budget to secure not only the current jobs in the CHP sector but, by doubling the existing cogeneration capacity in the UK in the next few years, having a direct impact on creating new jobs."