Cogeneration (COGEN) is defined as the combined production of two forms of energy (electric or mechanical power plus useful thermal energy) in one technological process. The COGEN is considered worldwide as the major option to achieve considerable energy saving with respect to traditional systems. The heat produced from the electricity generating process is captured and utilized to produce domestic purposes and can be used in steam turbines to generate additional electricity. Facilities with COGEN systems use them to produce their own high and low level steam. Currently, advanced biomass gasification and gas turbine combined cycle has been found to be a promising cogenerative conversion technology for the recovery of heat present in biomass fuel. Increased biofuel based cogenerative power production in the future is clearly dependent on the improvement of both performance and investment costs of new high performance technology, and on the nature of policy instruments designed to promote the technology.