Petroleum and natural gas are the two most common fuels consumed by the industrial sector (Table 4.2). In 2006, integrated steelmakers produced roughly 43 percent of raw steel, while EAF operations produced the remaining 57 percent. For example, it does not include the cost of policy or program implementation, as is done in great detail in the CEF study (IWG, 2000; see Appendix E-1 of that study). All rights reserved. Paris: Organisation for Economic Cooperation and Development (OECD)/IEA. (2004). Yield losses reduce the overall energy efficiency of steelmaking. Thus, the level of energy efficiency improvement anticipated in the year 2020 relative to today could be large. Capital market barriers can inhibit efficiency purchases. Ceiling fans are a great way to conserve electricity year-round. With a base use of 32,800 GWh forecast for 2016, the study estimates that 4970 GWh of electricity use (i.e., 15.1 percent) could be eliminated by economic efficiency investments—that is, investments that are cost-competitive with supply-side options. McKinsey and Company (2007, p. 47) postulates that “the economics of smaller facilities (<5 MW) are less attractive and offer diminished potential for additional energy savings beyond business as usual gains. The highest estimate is a range of 1.40 to 3.28 quads in 2020 (23 to 54 percent of projected energy consumption in this industry) published in a DOE (2006b) report. It excludes electricity inputs from on-site cogeneration or generation from combustible fuels since that energy is counted under generating fuel such as coal. Assessors include trained engineers and students. Davidson, P.R. October. Over the next 20 to 30 years, steel may be replaced by carbon-fiberreinforced materials, especially as carbon nanotube materials develop. The Clean Energy Future study (IWG, 2000) estimated that a 19 percent improvement in energy efficiency was economically attractive, and the McKinsey and Company (2007) study concluded that a 21 percent improvement in energy use was feasible based on commercially available and commercially attractive technologies—with an estimated IRR of at least 10 percent. In the United States, firms can face fiscal policies unfavorable to investments in end-use efficiency. Renewable Energy System Grants: $2,500 minimum. External benefits and costs are difficult to value quantitatively, and this inhibits industrial plant managers from investing in greenhouse gas mitigation and other pollution-abatement measures. 2009b. Strategic Plan. According to that report, membrane separation is the most widely applicable of all technologies for reducing the energy of separation processes in the petroleum, chemical, and forest products industries (Nenoff et al., 2006; Banerjee et al., 2008). Available at http://www.eia.doe.gov/emeu/efficiency/mecs_trend_9802/ mecs_trend9802.html. The obvious targets are the most energy-consuming processes. The industrial sector needs advanced materials that resist corrosion, degradation, and deformation at high temperatures and pressures; inferential sensors, controls, and automation, with. DOE’s approach involves automated monitoring to gather data, automated data analysis, automated feedback and control, and effective communication among the components. Annual Review of Energy and the Environment 26:303-329. B. Metz, O.R. 2002. Sovacool and M.A. Although, in theory, firms might be expected to borrow capital any time that a profitable investment opportunity presents itself, in practice firms often ration capital—that is, they impose internal limits on capital investment. Most of the savings had estimated payback periods of less than 2 years. Available at http://www.worldsteel.org/?action=stats_search. hNational Renewable Energy Laboratory, 2002. Incomplete and imperfect information is an impediment to the diffusion of energy-efficient industrial technologies and practices, such as CHP systems, materials substitution, recycling, and changes in manufacture and design. This assessment is based on 16 DOE Industrial Technologies Program (ITP) portfolio technologies (0.58 quad of savings) and five additional R&D technologies from the Chemical Bandwidth Study (0.52 quad of savings). Washington, D.C.: DOE. Commercial installations such as hospitals and hotels could also benefit from CHP. Energy efficiency in the U.S. cement industry improved steadily during the 1970s and 1980s as wet kilns were replaced by more modern facilities (Figure 4.7). These savings, if fully implemented, could reduce CO2 emissions by 4.04 million metric tons annually. Found insideEssentially, it provides the ability to pay for energy efficiency improvements and renewable energy projects by creating a ... For example, when speaking to their bank, most people start with their “regular banker,” who may limit their ... Isothermal melting of aluminum involves the use of immersion heaters in multiple heating bays, allowing electricity to be converted to heat that is conducted directly to the molten metal. The use of ceramic or mixed-composition membranes is one of the most active approaches to address these limitations. However, these savings estimates are calculated on a relative basis. Opportunities to Improve Energy Efficiency and Reduce Greenhouse Gas Emissions in the U.S. The National Renewable Energy Laboratory (NREL) is the nation's premier laboratory for renewable energy research and development and a leading laboratory for energy efficiency R&D. NREL is managed by Midwest Research Institute and Battelle. Paris, France: IEA. Freeman, L.G. steam, process heat, pump); 460 people have been certified in this way. EIA. This potential is vividly illustrated by the Save Energy Now assessments run by the ITP. Shareholder activism, good corporate governance, and reputation management are other potential drivers of energy efficiency in industry. August. Material Matters The right color roof is important, but a light roof made from the wrong materials is not going to outperform a dark roof made with the right material (and vice versa.) Regional organizations include: Northeast Energy Efficiency Partnership, Southeast Energy Efficiency Alliance, Midwest Energy Efficiency Alliance, Southwest Energy Efficiency Project, or the Northwest Energy Efficiency Alliance. FIGURE 4.5 Energy consumption in the U.S. steel industry per ton of steel shipped, 1950–2006. Climate Change Technology Program—Technology Options for the Near and Long Term. However, only 5 of the 19 technologies identified are related to CHP technologies (i.e., advanced cogeneration, steam-injected gas turbine, gas turbine process heater, gas turbine drying, and fuel cells), resulting in an estimated technical energy efficiency potential in industry of about 4.4 quads. Evaluate the Economics of Energy Efficiency Projects. California Industrial Existing Construction Energy Efficiency Potential Study, Volumes 1 and 2. Data available at http://www.census.gov/mcd/asmhome.html. Energy efficiency deteriorated during the 1990s, rising by approximately 10 percent per ton, as both the fall in energy prices and the increased demand for cement caused some of the less efficient manufacturing units to be redeployed. Found inside – Page 32Without monitoring it will be very difficult to convince management that energy efficiency projects are ... CD-ROM and website: Company examples (See Appendix A) for examples from companies that participated in the GERIAP project on ... These investments are estimated by McKinsey and Company (2007) to generate $30–$55 billion in increased earnings, before interest and taxes, by 2020; this earnings growth would, in turn, generate a $210–$385 billion increase in the market value of industrial companies. The petroleum industry consumes about 60 percent of the 2.4 quads of energy used each year in all industrial distillation processes. Productivity benefits of industrial energy efficiency measures. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2020 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the . Shown are the estimated savings in industrial energy costs identified by the DOE’s Save Energy Now assessments in 2006. 3221. The levels of penetration of this technology depend on the availability and prices of natural gas as well as government policies. ...or use these buttons to go back to the previous chapter or skip to the next one. Governing confusion: How statutes, fiscal policy, and regulations impede clean energy technologies. As a result, industrial energy demand in OECD countries was anticipated to grow only 0.6 percent annually. Hessenwald School in Weiterstadt, Germany, is an example of energy-efficient, contemporary architecture that offers a new teaching and pedagogical model. Despite CHP’s overall air emission benefits, modifications to a plant’s industrial exhaust system may trigger federal or state review of the plant’s air permits, which can inhibit some plant managers from pursuing CHP. A variety of organic materials such as cellulose acetate, nylon, and polyamide have been used for reverse osmosis membranes. Three studies have estimated the potential for energy savings in the cement industry. Industrial Wireless Technology for the 21st Century. The first demonstration of a prototype industrial “super. See http://www.physorg.com/news4221.html. For some energy-intensive products, energy for fuel and power needs and feedstocks account for up to 85 percent of total production costs. R&D opportunities suggest the possibility of further energy efficiency improvements to industrial steam and process heating. The potential for CHP is greatest in areas that have high electricity prices (tied to natural gas prices), availability natural gas, and large industrial and commercial thermal loads—most characteristic of the northeastern and southwestern United States. The development of manufacturing procedures that enabled production of 115 nickel aluminide rolls for installation and testing. 02/01/2021 04:30 AM EST. Thus, taking full advantage of the heat-recovery savings may require other major upgrades. 2006d. Found inside – Page 25This program has proven its effectiveness and value . Let me show you some quick examples on these charts that detail the benefits of the facilities . For the sake of time , I will just focus on the cost savings . However, some energy efficiency improvements might not reduce energy consumption overall. This project will make the farm energy self-sufficient. 1990. Although in its fully optimized form this approach would probably be practical only with the construction of altogether new columns, side reboilers are one currently used approximation of this process. A new American Society for Health Care Engineering (ASHE) monograph, "Reducing Operational Costs Through Energy Efficiency: Tips, Best Practices, and Case Studies from Energy Star . Cement Industry Mid-1990s Clinker Factors by Region and Subregion. Paper presented at the 2008 PAPERCON Conference, May 4-7, Dallas, Texas. In the DOE-sponsored study Scenarios for a Clean Energy Future (CEF), prepared by the Interlaboratory Working Group on Energy-Efficient and Clean Energy Technologies (IWG), a portfolio of advanced policies3 was estimated to reduce energy consumption in the industrial sector by 16.6 percent relative to a business-as-usual (BAU) forecast, at no net cost to the economy (IWG, 2000; see also Brown et al., 2001, and Worrell and Price, 2001). 2006 Annual Survey of Manufacturers (ASM). This factor has added about 6 percent to energy use, most of this effect occurring after the recession in the early 1990s. About 5 quads, or 21 percent of this total, was for nonfuel uses of coal, gas, and oil—for example, the use of oil refining by-products in asphalt, natural gas employed as a feedstock for petrochemicals, and petroleum coke used in the production of steel (EIA, 2009b). The company’s goal for the next 10 years is an additional 25 percent. The energy saved by this project is enough to power 2.5 homes for a year. By comparing the energy intensity of manufacturing across 13 countries that are members of the International Energy Agency (IEA), Schipper (2004, p. 18) provides a glimpse into the relative efficiency of U.S. manufacturing. See http://www.hwsdesalination.com/index.htm, http://www.energyrecovery.com/ and http://www.membranes-amta.org/amta_media/pdfs/6_MembraneDesalinationCosts.pdf. (Drying uses 20 percent less energy, and evaporation uses 60 percent less.) : Sandia National Laboratories. In the papermaking industry, a fiberoptic sensor measures paper basis weight to improve wet-end control in papermaking and to make paper of a uniform basis weight and higher quality. NRC (National Research Council). King, D. 2006. Industrial facilities can eliminate some energy-intensive steps by implementing direct manufacturing processes, thereby reducing energy use, avoiding emissions, and enhancing productivity. Real-time, continuous emissions monitors are available to measure common compounds as well as ones that are not typically measured, such as formaldehyde or ammonia, to better control overall operations. Energy Efficiency Project Financing. Applying savings at these percentages to the latest BAU forecast of energy consumption in 2020 (based on the EIA, 2008) results in savings estimates of 0.14, 0.21, and 0.08 quad, respectively. Hundreds of such units are now in use. Through the Energy Efficiency and Clean Technology Training Program ( PON 3981 ), NYSERDA supports a variety of projects across the state providing training and experience to workers in clean energy industries. Yet blast furnace operation uses nearly 40 percent of all the energy consumed by the iron and steel industry. Examples on initiatives and projects in the sector. Based on an inventory of motor systems conducted in 1998 (Xenergy, Inc., 1998), it is estimated that industrial motor energy use could be reduced by 11–18 percent if facility managers undertook all cost-effective applications of mature, proven efficiency technologies and practices. 2001. IEA (International Energy Agency). For example, assuming that an air-conditioning system produces an average of 200 tons of chilled water a day and the electricity tariff is $0.2262/kWh, a water-cooled air-conditioning system will save you $20,000 of electricity costs monthly as compared to an air-cooled one. Emerging Energy-Efficient Industrial Technologies. The EIA’s Annual Energy Outlook 2008 reduced the 2007 forecast’s projected increase in U.S. industrial energy consumption substantially to reflect the nation’s economic slowdown, rising energy prices, and the passage of the Energy Independence and Security Act of 2007 (P.L. Journal of Physical Chemistry 95:5624-5628. According to the International Energy Outlook 2009, the industrial sector worldwide used 51 percent of the total delivered energy (or 50 percent of the primary energy) in the year 2006, and its demand was projected to grow by an annual rate of 1.4 percent between 2006 and 2030 (EIA, 2009a).1 Before 1973, manufacturing was the largest energy consumer in most member countries of the Organisation for Economic Cooperation and Development (OECD), but in recent years its dominance has subsided as industrial output has slowed, energy efficiency has increased, and other sectors have surged ahead (Schipper, 2004). For example, as part of the 1977 Clean Air Act Amendments (P.L. Advanced technologies with a potential to further improve energy efficiency and reduce carbon emissions include a fluidized bed kiln, advanced comminution technologies, and the substitution of mineral polymers for clinker (Worrell et al., 2004). See http://www.chemicalvision2020.org/alt_feedstocks.html. Available at http://www.state.vt.us/psb/document/ElectricInitiatives/GoldmanVermontPSBpricingworkshop031506.pdf/. Found inside – Page 136... Example The simplest and well-known example for the trade-off between energy service and energy-efficient ... With cost-effective projects and their subsequent successful execution the apparent conflict between development and ... Schaller, M., K.H. Washington, D.C. Fruehan, R.J. 2008. At the same time, the United States has a less energy-intensive manufacturing sectoral structure relative to the other 12 IEA member countries, many of which are big producers of raw materials (e.g., Australia, Canada, the Netherlands, Norway, and Finland).2 Correcting for this difference raises the U.S. energy-intensity index compared with that of other IEA coun-. This chapter describes the progress made to date and the magnitude of the untapped opportunities, which stem both from broader use of current best practices and from a range of possible advances enabled by future innovations. Insofar as the utility does incur extra costs due to the CHP unit, the CHP unit should pay. In 2005, the American Iron and Steel Institute (AISI) announced a goal of using 40 percent less energy per ton of steel in 2025 compared to what was being used in 2003 (AISI, 2005). This has been in collaboration with industrial firms, universities, and national laboratories. New energy-efficient technologies often have longer payback periods than traditional equipment has, and they represent a more serious financial risk, since there is greater uncertainty in future energy prices. Efficient energy use, sometimes simply called energy efficiency, is the goal to reduce the amount of energy required to provide products and services and can also reduce effects of air pollution. For example, although appliance efficiency standards and building codes have increased energy efficiency, consumers could offset these gains by buying larger homes or more and larger appliances. The hurdle rates and other parameters inside the buildings-sector modules of the National Energy Modeling System (NEMS; the energy modeling system used by the U.S. Department of Energy’s Energy Information Administration) were then changed so that the model replicates the energy savings calculated from the CEF spreadsheets (IWG, 2000). LBNL-54036. Washington, D.C.: DOE, Industrial Technologies Program. Loans: Customers can borrow money directly from banks or other lenders to pay for energy efficiency, renewable energy, and other generation projects. (2004) identify potential energy savings of up to 20 percent from the deployment of blended cement technologies. EIA. Additional savings are possible through extending the lifetime of optimum cutting performance in machine tooling. Available at http://www.osti.gov/bridge/servlets/purl/840930-yRKP7T/webviewable/840930.PDF. Negligible or nonexistent, because no alumina-forming, iron-based alloys with properties suitable structural... In recent years, new alloys using thinner steel have led to 25 percent underpinning... Star® designations and other uses factor of 10,500 Btu/kWh energy efficiency projects examples conduct free for... 0.85 kg CO2 per kilogram of cement in the U.S. cement industry: Climate Vision Partnership, sector:! 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