Small nuclear reactors align well with the small heat-capacity needs for many European process industries. Combined heat and power (CHP) reactors can support the EU low-carbon society goals while providing stability in production and cost. High temperature reactor technologies are well suited for the production of "high value" heat by producing temperatures of 200-550 degrees C. However, little is known about the market potential or economic competitiveness of these reactors in future European cogeneration markets. This study shows that the greatest potential is in chemical/petroleum, paper, metal, and bioenergy markets with small capacities (50-250 MWth). Target market costs for coal-CHP and natural gas-CHP were determined to range from 60-100 (sic)/MWh and 95-208 (sic)/MWh, respectively. Costs for "heat-only" ranges from 30-60 (sic)/MWh based on gas boilers. Parametric analysis was used to create a cost breakdown (capital, operations and maintenance, fuel, and decommissioning) for an equivalent nuclear CHP that could compete against coal-CHP and natural gas-CHP. Sensitivity analysis showed that reactor capital costs and the costs of capital had the largest influence on competitiveness. In summary, the opportunities for nuclear CHP are highest in natural gas-CHP markets; however the benefits for CO2 reduction were greatest against coal-CHP. (C) 2012 Elsevier Ltd. All rights reserved.