A new CHP system was switched on by environment minister Hilary Benn at the site of the newly-created Food and Environment Research Agency (Fera).
Fera, created to help research climate change, food security and environmental sustainability, has set up its main laboratory in York and has installed the 230kWe ENER-G CHP unit, which will save 508 tonnes of CO2 annually and £26,000 per year.
Chris Marsland, technical director for ENER-G, said: 'Fera is not only supporting high-grade research crucial to environmental management, but is also tangibly demonstrating the government's determination to promote wider use of CHP technology'.
The CHP system is driven by a diesel engine converted to use natural gas. The engine drives an alternator that generates the site's electricity requirements.
The project includes a 10-year discount energy purchase contract which involves ENER-G installing, operating and financing the CHP system at no cost to Fera, then contracting the energy produced back to the customer at a discounted rate.
ENER-G said the scheme delivers no ongoing maintenance or aftercare costs and guaranteed capped energy costs for the length of the agreement.
CHP is part of the government's new energy white paper that aims to cut carbon dioxide emissions by 60% before 2050. The government aims to use CHP-generated electricity for at least 15% of government estate consumption by 2010.