Most forging shops started using natural gas fired furnaces to heat the parts to be forged. With the use of induction heating the parts are heated faster, with more control, semi-automatically, more efficiently, with less decarb and much less scale. Induction heating is a much better system to heat billets with less wasted energy. It is possible to use the natural gas to generate electricity and use this electricity to power and operate the induction heating systems. The generating system can range from a few kilowatts to many megawatts with a turbine generating system. We will investigate the cost and payback time for this type of system. With the generation of your own electricity the problem of electrical noise on the electrical line from the induction heating would be eliminated for 3(rd),5(th) and 7(th) harmonics electrical noise. The heat from the generating system can be used for other purposes, this is called cogeneration. The heat could be used to generate steam to run the forging hammers or heat the office buildings or used in an absorption type of cooling system. With fuel cell just around the corner, this will further increase the efficiency of the system and could further reduce the cost.