The main goal of this research is to resolve an organization's dilemma regarding whether to adopt a cogeneration system or to replace a conventional diesel steam boiler with a boiler fueled by natural gas. We analytically calculate the total expected initial setup and operational costs under the two models, and determine which model is
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Natural gas therefore becomes an attractive "transition" fuel, as the energy supply moves away from polluting sources such as coal and nuclear sources and towards cleaner, renewable technologies. Natural gas can be used as a fuel in conventional steam boiler generators, like other fossil fuels.
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