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Industrial Technologies Program State Energy Advisory Board Meeting Arlington, VA November 16-18, 2005 Jacques Beaudry-Losique, Program Manager Industrial Technologies Program, EERE U.S. Department of Energy Overview Industrial Energy Context

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Industrial Technologies Program

State Energy Advisory Board Meeting

Arlington, VA

November 16-18, 2005

Jacques Beaudry-Losique, Program Manager

Industrial Technologies Program, EEREU.S. Department of Energy


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Overview

  • Industrial Energy Context

  • The Industrial Technologies Program’s (ITP’s) Focus

  • Results & Highlights

  • Save Energy Now Initiative

  • State Outreach & Resources



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Industry: Critical to National Energy Policy

2004 Energy Use*

  • Uses more energy than any other single sector; >1/3 of U.S. energy consumption

  • Accounts for more than 40% of U.S.natural gas demand

  • Accounts for 28% of U.S. electricity demand

  • Produces approximately 30% of U.S greenhouse gas emissions

Transportation

27.9%

Industry

33.6%

Commercial

17.4%

Residential 21.1%

*Includes electricity losses

Source: DOE/EIA Monthly Energy Review 2004 (preliminary)


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U.S. Energy Consumption by Industry

8000

All Energy

Natural Gas

6000

Natural Gas Liquids

Other

Trillion Btu

Computers

4000

Plastics

Glass

Fabricated Metals

Transport Equip.

2000

Mining

0

Petroleum &

Forest

Food &

Other

Chemicals

Iron & Steel

Aluminum

Coal Products

Products

Beverage

(1,922 TBtu NG)

Source: 1998 Manufacturing Energy Consumption Survey (MECS)


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U. S. Consumption of Natural GasBy Sector, 2004

Transportation 0.7 Quads

Industrial 8.8 Quads

Power 5.5 Quads

Commercial 3.1 Quads

Residential 5.0 Quads

Industry > 40% of total U.S. Natural Gas Use

Source: DOE/EIA Monthly Energy Review 2004 (preliminary)


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Challenges for Energy-Intensive Industries

  • International technology/cost competition

  • Uncertain environmental constraints

  • Limited access to LT investment capital

  • Uncertain long-term economics

  • Natural gas prices and supply

    • Henry Hub spot price on November 8 2005, was $11.89/MMBtu

  • “Many companies have been unable to pass higher energy costs on to their customers, which has sharply reduced their profit margins” National Energy Policy, pages 2-4



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The Industrial Technologies Program (ITP)

Delivering Technology Solutions

Collaborative R&D

  • Energy-intensiveProcess Technologies

  • Crosscutting Technologies

Technology Delivery

Partnerships

  • Assessments

  • Training & Tools


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Types of R&D Supported by ITP

Process specific

  • Hybrid Distillation

  • Process Intensification

Crosscutting

  • Iso-thermal Melting

  • Advanced Water Removal

  • High-Efficiency Pulping

  • Inferential-based Process Control

  • Advanced Thermo- Electric Materials

  • Super Boiler

  • Ultra-Hard Materials

  • Natural Gas Alternatives

Other

Trillion Btu

Computers

  • Next Generation Steel-making

Plastics

Glass

Fabricated Metals

Transport Equip.

Mining


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Emerging Topic: Fuel/Feedstock Flexibility

Total Nat Gas Displacement(1012 Btu)

ITP Strategies

  • Near-Term (0 – 2 years):

  • Redirect TD to pursue natural gas saving opportunities via:

    • Technology and market assessments

    • Application guides explaining opportunities, implementation strategies, permitting issues, etc.

    • Training and education

  • Longer-Term (>2 years):Significant process changes and permitting required

    • Explore opportunities in FE and other EERE technologies

    • Conduct applied R&D for industrial applications


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Technology Delivery Resources

  • DOE-supported energy assessments (IAC,CTA,PWA)

  • Qualified specialists

  • Energy efficiency trainingfor plant staff

  • Energy analysis software tools

  • Case studies and information

877-337-3463

www.eere.energy.gov/bestpractices www.energysavers.gov/industry

Info Center:

Websites:


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Technology Delivery Focus

Percent of Total Industrial Energy

U.S. Manufacturing Plants: By Size

Small &

Medium

47%

Number of U.S. Plants

Large

53%

Focus of CTA, PWA Teams

Focus of IAC Teams

Small Plants<$100K

Mid-Size Plants$100K-$2M

Large Plants>$2M

Category:Annual EnergyCosts

All U.S. Plants

1998 EIA MECS



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Annual energy savings of 121 trillion Btu (87 commercial technologies currently tracked)

Cumulative energy savings of 2.6 Quads since 1976

Cumulative production costsavings of $16.5 billionsince 1976

Initiated tracking of 11 new commercialized technologies

2002 Program Results


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Enhancement of Aluminum Alloy Forgings through Rapid Preheating of Billets

Imaging Ahead of Mining

Smart Screening Systems

Advanced Glass Furnace Model

Four “R&D 100” Award Winners in 2004


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Chemicals through 1/11/06 ~ $10 million Preheating of Billets

SBIR through 12/2/05 ~ $10 million

Materials for EE Completed ~ $ 7.6 million

Industrial Assessment Centers through 1/24/06 ~ $ 6 million

Materials (Labs) Completed ~ $ 5 million

Innovative Energy Systems through 1/25/06 ~ $ 4 million

Inventions & Innov. Completed ~ $ 2 million

FY2006 ITP RD&D Solicitations


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Save Energy Now initiative Preheating of Billets


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“Save Energy Now” Initiative Preheating of BilletsGoals:

  • Encourage industry to voluntarily reduce its energy usage in a period of tight supplies by working with America’s largest energy-intensive plants

  • Create momentum to significantly improve energy efficiency practices throughout the manufacturing sector


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Energy Savings Assessments Preheating of Billets

  • 200 assessments of targeted industrial systems

  • Assessments done by teams composed of DOE Qualified Energy Experts and plant personnel

  • Teams will focus on either steam generation or process heating

  • Plant personnel and affiliates will be trained on DOE efficient tools

  • ESA Report identifies potential energy and cost savings

Other4%

Facilities 8%

Electrochemical - 2%

ProcessCooling1%

Manufacturing Energy Use by Type of System (%)

Steam 35%

Motor Systems 12%

Process Heating 38%

Note: Does not include off-site losses


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Robust Partnerships to Reach Plants Preheating of Billets

  • Allied Partners

  • States

  • Utilities

  • Equipment Suppliers & Service Companies

  • Trade Associations

  • Replication within Industrial Companies


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For the Latest Information Preheating of Billets …

Save Energy Now Website www.eere.energy.gov/industry/saveenergynow

EERE Information Center - Call: 1-877-337-3463


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State Outreach & Resources Preheating of Billets


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Selected State and ITP Accomplishments Preheating of Billets

  • Texas Technology Showcase

  • Ohio Technology Showcase

  • California Energy Fairs

  • Saving Water; Saving Energy in Colorado

  • Nevada Mining Energy Solutions Event

  • Western US Food Processing Efficiency Initiative



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Accelerating State and ITP Results Preheating of Billets

  • Leverage market players (e.g., utilities, ITP Allied Partners, Qualified Specialists, and regional groups such as the Northwest Energy Efficiency Alliance)

  • Deliver SEP special projects through largest energy consuming plants

  • Facilitate cross-pollination of activities and results across corporate facilities

  • Increase awareness of ITP emerging technologies and commercialization capabilities

  • Develop common impacts tracking system and metrics

  • Strategically communicate successes to right audiences


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