Italy produces approximately 4,520,000 tons of pasta annually, which is about 67% of its total productive potential. As factories need electric and thermal energy simultaneously, combined heat and power (CHP) systems are the most suitable. This paper describes a feasibility study of a CHP plant in a pasta factory in Italy while analyzing energy saving and environmental benefits. Commercially available CHP systems suitable for the power range of energy demand in pasta production use reciprocating engines or gas turbines. This study demonstrates how their use can reduce both energy costs and CO2 equivalent greenhouse gas emission in the environment. An economic analysis was performed following the methodology set out by Italian National Agency for Technology, Energy and Environment (ENEA) based on a discounted cash flow (DCF) method called "Valore Attuale Netto" (VAN), which uses a cash flow based on the saving of energy when using different energy processes. (c) 2006 Elsevier Ltd. All rights reserved.