A simple-cycle or combined-cycle plant may incorporate cogeneration – or combined heat and power – capabilities. In this process, a heat recovery steam generator (HRSG) uses heat from natural gas turbine exhaust to produce steam (see description of the combined-cycle process). Some or all of this steam is piped to a customer that uses it in an industrial process or for heating. Depending on the steam needs of the host facility and the local power market, some facilities are also equipped with a steam turbine to obtain combined-cycle efficiency from steam produced in excess of the host facility’s needs. In a different type of cogeneration cycle, the energy of the steam cycle can also be used to operate chillers to produce chilled water. Cogeneration is a cost-effective way to support the energy needs of local industry and one of the most efficient ways to generate electric power.