The potential of distributive technologies in meeting future energy demand and reducing greenhouse gas emissions are enormous. However, improvements in efficiency and a reduction in capital cost are essential for them to be competitive against conventional energy sources. Natural gas microturbines are an example of distributive technologies that are growing in popularity among commercial and industrial energy consumers. This paper analyzes the cost of energy produced by a natural gas microturbine compared to electrical energy purchased from the existing electrical grid. It also assesses the cost effectiveness of using a natural gas microturbine as a combined heat and power system on a small chemical manufacturing company in Atlantic Canada.