The result presented in this paper shows that the Volvo plant can decrease its electricity use by 44% by making the use of electricity more efficient and converting from oil and electricity to district heating for hot tap-water, space heating and cooling. The increased demand of district heating makes investing in a new planned CHP and cooperation between the Volvo plant and the local energy utility production cost fall by 46% at current unit electricity price and by 64% when calculating with a European unit electricity price and investment in an optimised CHP system instead of the planned plant. The study furthermore shows that the global emissions of the greenhouse gas carbon-dioxide will be reduced by 350% a year if the two energy-supply measures are taken and the electricity unit prices are at a European level. (C) 2005 Elsevier Ltd. All rights reserved.