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No. Co-generation just increases the overall efficiency.

In normal central heating systems a large quantity of heat is lost in the exhaust gas. The flame heats an exchanger which warms the air circulating through the furnace.

In a co-generating plant the flame heats a sink on a thermal-electric device (usually a sterling driven generator). The "cold" side of the device is then cooled by the air circulating through the device.

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