**Abstract**

The energy supply side for a large oil, gas, refinery, or petrochemical facility is designed to provide the site with sufficient heating, cooling, and power utilities requirements. Reducing capital and operating costs from energy supply side is essential to maximize the value added from the industrial facility. Thus, optimization solutions are often developed to optimize industrial utility design and operation, reduce costs while improving the overall system's efficiency and inevitably reducing CO2 emission. Our topic in the chapter is related to a new methodology that aims to identify the optimum design and operation of the energy supply side of a new industrial facility. One major cause for utility design inefficiency is the fact that in a typical project setup, there are different project teams handling the design of the utility supply side and process design independently. This often results in high capital cost, and lower operating efficiency. The potential improvement expected from the optimum design compared with a typical design case for a new industrial facility is over 15% from base-case life cycle cost. This chapter also covers several examples to explain the concept and expected benefits from applying a new Combined Heat and Power (CHP) optimization solution during new project design.

**Keywords:** CHP, steam system optimization, system's efficiency, GHG emission reduction, steam and power optimum design, industrial utility system, grassroot facility
