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Combined heat and power (CHP) systems (also known as CHP) generate electricity (and/or mechanical energy) and thermal energy in a single, integrated system. This contrasts with common practice where electricity is generated at a central power plant, and on-site heating and cooling equipment is used to meet non-electric energy requirements. The significant increase in efficiency with CHP resulting in lower fuel consumption compared with separate generation of heat and power is inline with Government direction in reducing greenhouse gas emissions. This book therefore, study the potential of CHP programs in Malaysian Pulp and Paper Industry and then rank the best CHP technologies available to be implemented. The analysis on the cost effectiveness of CHP will be performed in three case studies using software called RETScreen. The priority of available CHP options were weighed according to the pay back period (PBP), internal rate of return (IRR), net present value (NPV) and also the greenhouse gas (GHG) emission reduction cost. As a conclusion, industries with similar facilities as the case studes can view the potential of CHP and then apply the technology in their plant.