Industrial Energy Efficiency - The Strategic Solution

Industrial Energy Efficiency: The Strategic Solution Industrial Technologies Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Projected Energy Use Total U.S. Energy Production vs. Consumption, 2000-2020 140 Total U.S. Consumption Quadrillion Btu per year 120 100 80 60 40 20 0 2000 Total U.S. Production Critical Gap 2005 2010 2015 2020 Source: EIA projections Source: EIA projections Why Work with Industry? The U.S. Industrial Sector Matters • 33.5 quadrillion Btu – 35% of total U.S. 2001 energy use (EIA) • 2006 teragrams CO2 emissions – 30% of total U.S. 1999 emissions (Dept. of State) • Over $130 billion in purchased energy costs (EIA) • 34,922 manufacturing facilities with 100 or more employees • On average, each facility with 100 or more employees uses as much energy as 5,000 U.S. homes (Dept. of Commerce and EIA) EERE Industrial Technologies program (ITP) Mission Statement • ITP seeks to improve the energy intensity of the U.S. industrial sector through a coordinated program of research and development, validation, and dissemination of energy efficiency technologies and operating practices. EERE Industrial Technologies program (ITP) Mission Statement, continued • ITP partners with industry, its equipment manufacturers, and its many stakeholders to reduce our Nation’s reliance on foreign energy sources, reduce environmental impacts, increase the use of renewable energy sources, improve competitiveness, and improve the quality of life for American workers, families and communities. Our Premise • Energy efficiency improvements are enabled by the development of new technology • Innovative process technology in energyintensive manufacturing can produce significant efficiency gains • R&D investment is critical for new efficient process technology • Industry may be underinvesting in new process R&D Our Focus: Major Energy-Intensive Industries Industrial Energy Intensity vs. Energy Consumption 1000 Energy Intensity (Thousand Btu/$ GDP) Energy-Intensive Industries Petroleum 100 Primary Metals Paper Mining Textiles/Apparel Chemicals Nonmetallic Minerals Food Processing Wood 10 Tobacco/Beverages Plastics/ Rubber Printing Miscellaneous Electrical Furniture Fabricated Metals Transportation Machinery and Computers Leather 1 10 100 1000 Energy Consumption (Trillion Btu) 10000 Sources: EIA 2001, 1998 Manufacturing Energy Consumption Survey; U.S. DOE 2002, Energy and Environmental Profile of the U.S. Mining Industry R&D Intensity in Manufacturing 1986-1998 R&D Funding as a % of Net Sales 16 14 Computers Pharmaceuticals 12 Percent 10 8 6 4 Electronics Scientific Equipment Communication Equipment Manufacturing Avg. Energy- Stone, Clay, & Glass Paper & Products Petroleum Refining Primary Metals 2 0 ] Intensive Industries 86 88 90 92 94 96 19 19 19 19 19 19 Source: NSF 2002, Research and Development in Industry 19 98 Industries of the Future Focus on energy-intensive industries… …and cross-cutting industries: • Sensors & Automation • Advanced Materials • Combustion • Industrial Energy Systems EIA, 1998 Current Situation • U.S. manufacturers face intense global competition • Energy-intensive industries – low profit margins • Large capital investments required for new technology development & commercialization • Capital stock turnover is slow • Severe private under-investment in efficiency R&D • Changing workforce must be flexible and information nimble • High technical and financial risk inhibit investment in efficient process technology What is Climate VISION? • Climate VISION (Voluntary Innovative Sector Initiatives: Opportunities Now). – Presidential initiative launched in February 2003. – Voluntary public-private partnership designed to pursue cost-effective strategies to reduce the growth of greenhouse gas (GHG) emissions. • The program assists industry by working with trade associations and other groups. • Climate VISION links this objective with technology development, commercialization, and commercial implementation activities supported by the private sector and the Climate VISION Strategic Thrusts • Work with industry groups to identify/implement near-term cost-effective opportunities. • Develop cross-sector projects for reducing greenhouse gas emissions • Develop bridges to accelerate investment in advanced, cutting-edge technology through R&D Energy-Related CO2 Emissions by Energy-Intensive Industries All End Uses Energy-Intensive Industries Delivering Technology Solutions Collaborative R&D • Energy-intensive industries (IOF) • Crosscutting Technologies • Grand Challenges Technology Delivery Partnerships • Assessments • Training & Tools • Technology Demonstrations Grand Challenges Target Gaps High Current Energy Consumption Energy Losses Grand Challenge Opportunity Opportunity for Energy Improvement Zero Practical Minimum Grand Challenges Tackle Big Issues Through an open, competitive solicitation process, OIT will award cost-shared funding to selected projects that   Address an important defined technical goal Focus on issues that are technically complex and lack previous solutions     Involve high-risk, high-return R&D Require public-private partnerships Integrate smaller projects Promise large energy and environmental benefits Mid- and Long-Term Opportunities: 2010-2020 Grand Challenges • Advanced Reactions/ Separations • Alternative Primary Metal Reduction • Cokeless Iron Making • Biomass Gasification Innovative Energy Systems • Process Integration • Waste Heat Recovery Cross-cutting Technology • Combustion Systems • Sensors and Controls Industries of the Future • Competitive U.S. manufacturing sector • 30-35% energy intensity improvement goal • Combined Heat & Power • Materials Black Liquor Gasification: Importance to Program Goals Pulp Biorefinery Today (Kraft Mill) Purchased Energy Paper Products Pulp Biorefinery of the Future Bioenergy Purchased Energy •Paper Products •Electricity •Chemical Derivatives from Lignin and Syngas Bioenergy Mesabi Nugget A revolutionary new steelmaking process uses one-step furnace operation to produce high-quality iron using substantially less energy than conventional processes. The process under development eliminates the need for the coke oven plant, which is a significant source of emissions (Nox, Sox, and particulates) in steel making. Technology reduces by 29% the total energy used per ton of steel produced (at 70% scrap usage). Mesabi Nugget LLC Ferrous Resources, LLC IronUnits LLC Midrex Technologies North Shore Mining Company Carbothermic Reduction • Three stage reactor carbothermic reduction of alumina is an alternative to the traditional HallHeroult process • Potential to reduce energy consumption 30+%, capital 50+% and the environmental costs of producing aluminum • Lower-cost aluminum would improve the aluminum industry's penetration into other markets Alcoa, Incorporated Elkem ASA Research Carnegie Mellon University Isothermal Melting Process (ITM) • Metal to Hearth Pump Bay Heating Bay Charge Bay Process • • Treatment Bay • Solid Aluminum Demonstrate ITM on a technically and commercially viable scale Saves half the energy and emissions associated with conventional melting Excellent metal quality that exhibits low dissolved gas & suspended solids Significantly reduced dross formation Apogee Technology, Incorporated Commonwealth Aluminum Drexel University Mesoporous Membranes for Olefin Separations • Membrane-based technology to separate olefinic mixtures from light gas by-products Olefin Mixture Capillary Condensation • Could replace cryogenic distillation throughout the olefins industry • Decreases CO2 emissions by 24%, cuts energy use by 40%, and increases capacity by 50% Membranes Condensable gases Los Alamos National Laboratory BP Amoco Corporation MEDAL Air Liquide Nanomaterials By Design The ability to employ scientific principles in deliberately creating structures with nanoscale features (e.g., size, architecture) that deliver unique functionality and utility for target applications Mid-Term Opportunity: Super (Industrial) Boiler (2010) U.S. Industrial Boilers: • Largest industrial energy application; 6 quadrillion Btu (quads)/year • Over 30,000 large boilers (75% over 30 years old) • All manufacturing sectors U.S. Opportunity: • Accelerate replacement of aging boilers • Save 500 trillion Btu/year • Reduce carbon emissions by 27 Tg (0.4% of U.S. total emissions) Pilot Unit Super Boiler at Gas Technology Institute Mid-Term Opportunity: – High Efficiency Process Heater • Key technologies being developed: – Ultra-low-emissions burner (< 10 ppm NOx) – Advanced, high efficiency fired heater (95% thermal efficiency) • Meets most stringent environmental regulations • Field testing in 2005 Alloys for Ethylene Production • Intermetallic and metallic materials to coat the insides of ethylene furnace tubes • Prevention of carburization coke formation in tubes • Longer tube service life, reduced furnace downtime, improved reaction conditions, and energy savings of 420 trillion Btu/year BP Chemicals Exxon Chemical Company Shell Chemical Company Air Products and Chemicals Oak Ridge National Laboratory Plus 6 other industry partners Innovative Energy Systems Challenge  Increase efficiency of energy conversion systems from 60 to 80% Potential Impacts:  Reduce emissions of air pollutants and greenhouse gases by 20% Energy Savings in 2025 = 2,400 Tbtu for All Mfg. (900 Tbtu for Chemicals) Heat Recovery (15-25%) • Recovery of low value heat • Use of waste products Controls (15-20%) • Tools and models for Heat Production (20%) boilers, heat exchange Heat Transfer (20%) • Fuel flexible burners maintenance and • Better energy transport • Modular cogeneration operation In-situ heat generation • Heat upgrade • Reduced heat degradation Systems Engineering (15%) • Advanced energy storage Improved energy management • Heat integration Near-Term Opportunity: Plant Assessments Success Story: Rohm and Haas, Texas • Comprehensive program to improve energy efficiency at a Rohm and Haas plant • Energy efficiency increased 23% on a per pound basis since 1997 • $18 million per year in savings • CO2 emissions reduced by 67,000 tons per year Rohm and Haas Facility Deer Park, Texas • Payback of two years or less Footprint Targets BestPractices Software 48 Losses 94 NAICS 325 Chemicals Footprint 2877 Energy Export 25 3347 3729 Plant NOX Tool Boundary Distribution Facilities/HVAC/ Losses 323 Lighting 123 1277 PHAST Software Equipment Losses 355 2221 Fired Heaters 1099 Other Fuel 53 1164 Steam 1055 Process Cooling 70 Purchased Fuels 3127 64 Central Boilers Combined Heat/Power Electricity 156 3E+ and Steam Scoping Software Steam System Process Awareness Software Use AirMaster Software PSAT Software FSAT Software CHP Efficiency Tool Purchased Electricity 602 148 Electrochemical 136 Compressed Air 129 Motor-Driven 464 Boiler/Power Losses 382 Refrigeration 36 Pumps 120 Fans 55 Mixing 110 Conveyors/Other 14 Losses 1251 MotorMaster+ Software Plant Boundary Motor/System Losses 301 Plant Energy Profiler Tool INPUTS • Plant description • Data from monthly fuel and electric bills • Plant energy “scorecards” Distribution Losses 3 Facilities, HVAC, Lighting & Other - See Note 5 Plant Export OUTPUTS • Where plant energy is going 1191 Other Fuel Process HeatingFired heaters not heat exchange 1229 48 Plant Fuel Purchases 1 Central Boilers & Conventioanal Pow er 1192 48 1082 15 46 Process Cooling Process HeatingThermal Mechanical Drives Vacuum Jets 3127 Waste Heat ? ? ? n n n n • Opportunities for energy savings • Guide to tools and resources by utility area Process Cooling CHP Electrochemical Compressed Air Refigeration 15 0 13 4 12 5 11 1 n n Machine Driven Pumps Fans Mixing Materials Moving Other Materials Processing 37 Boiler & Pow er Losses CHP Losses 47 Internal Losses Plant Energy Profiler tool identifies energy saving opportunity areas Plant-wide Assessments (PWAs) Annual Savings Opportunities Identified Anchor Glass Container $1,638,000. $1,170,000. $1,072,000. $3,600,000. $3,459,000. $1,478,000. $707,000. $1,280,000. $25,920,000. $3,280,000. Georgia Pacific Inland MetLab Neville Chemical $5,000,000. $9,500,000. Akzo Nobel Alcoa AMCAST Appleton Paper Bayer Boise Cascade Caraustar Corning Ford $518,000. $75,000. $1,090,000. $1,880,000. $3,100,000. $840,000. $1,094,000. Rohm & Haas Utica Corporation Weyerhaeuser WR Grace 3M Resources & Information • Fact Sheets Clearinghouse On-call team of 17 professional engineers, scientists, research librarians, energy specialists, and communications information staff • Newsletters • Tip Sheets • Brochures • Reports • Software Decision Tools • Data Voice: 1-800-862-2086 Fax: 360-586-8303 Email: clearinghouse@ee.doe.gov Web: www.oit.doe.gov www.energysavers.gov/industry Positive Impact Manufacturing • Economy - jobs • Education - 21st Century workforce • Resource conservation/recycling • Technology growth • Energy • Environment