Transcript Slide 1
Industrial Technologies Program
Presentation to States Energy Advisory Board U.S. Department of Energy July 26 2006
Overview
• • Industrial Energy Context The Industrial Technologies Program’s (ITP’s) Focus • • •
Results & Highlights
Save Energy Now Initiative State Outreach & Resources 2
Industrial Energy Context
3
Global Energy Challenges Require Innovative Solutions
• • • • Growth in demand for limited resources have increased prices and market volatility, impacting national energy security, economic security, and environmental quality
National energy security
: Global oil and gas reserves are in unstable areas and
Natural Gas Prices, Henry Hub 1994-2007 15 10
flexible alternatives are not readily available.
Economic security
: Rising prices hurt America’s ability to remain competitive in the global market place.
Global Warming:
Global concerns regarding carbon emissions and climate change are forcing industries and governments to rethink their strategies on energy fuels.
0 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 Oil Prices, West TX Intermediate 1948-2007 80 60 40 5 20 0
Consideration of these challenges has
19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07
led the US government to reevaluate how it can most effectively respond.
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Industry: Critical to National Energy Picture
Industry is the
2004 Energy Use*
largest energy using
100.3 Quads
sector
• • • 37% of U.S. natural gas demand Transportation 28% 29% of U.S. electricity demand Commercial 18% 30% of U.S. greenhouse gas emissions Industry Residential 21% 33% • Uses more energy than any one of the other G8 nations *Includes electricity losses
7.8
0.9
7.3
0.7
3.3
0.7
1.9
1.6
1.4
4.1
3.8
(Quadrillion Btu)
Chemicals Aluminum Petroleum Refining Fabricated Metals Forest Products Plastic & Rubber Iron & Steel Food Processing Non-Metallic Minerals Non-Mfg Other Mfg.
Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS 5
Challenge for Energy-Intensive Industries
• Volatile energy prices • Industry concern about natural gas costs and supply • Influence of the emerging economies on competitive landscape and energy and raw materials prices • Difficulty for process industries to make needed investments in R&D and commercialization • Potential for “game-changing” scientific advances to transform industries
Natural Gas Prices, Henry Hub, LA
Dollars per Million Btu 6
ITP’s Focus
7
The Industrial Technologies Program (ITP)
Delivering Technology Solutions
Collaborative R&D
• Energy-intensive Process Technologies • Crosscutting Technologies
Partnerships Technology Delivery
• Assessments • Training & Tools 8
ITP R&D Areas: Focus on Energy Efficiency
Industrial Reaction and Separation
Develop technologies for efficient reaction and separation processes
• Oxidation Processes • Microchannel Reactors • Hybrid Distillation • Alternative Processes • Advanced Water Removal
335 Trillion Btu/yr in 2020
High Temperature Processes
Develop energy efficient high-temperature process technologies for producing metals and non-metallic minerals
• Advanced Metal Heating and Reheating • Advanced Melting • Efficient Heat Treating • High Efficiency Calcining • Next-Generation Steelmaking
470 Trillion Btu/yr in 2020
Energy Conversion Systems
Develop high efficiency steam generation and combustion technologies and improved energy recovery technologies
• Thermal Transport Systems • Super Boiler • Ultra-High Efficiency Furnace • Waste Heat Recovery
570 Trillion Btu/yr in 2020
Fabrication and Infrastructure
Develop energy efficient technologies for making near net-shape finished products from basic materials
• Near Net Shape Casting and Forming • Energy Efficient and Safe Extraction Operations • Inferential Process Control for Product Quality • Ultra-hard Materials • Joining and Assembly
250 Trillion Btu/yr in 2020
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Emerging Technologies: Super (Industrial) Boiler
• • •
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 with 94% efficiency/7 ppm Units Save 500 trillion Btu/year Reduce carbon emissions by 27 Tg (0.4% of U.S. total emissions)
Built and installed pilot scale boilers at GTI
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Technology Delivery: Annual Energy Savings
Energy Savings By Year FY 2000-2012
By Activity Type
2012
700 600 500 400 300 200
IACs ESAs
100 0 20 00 20 02 20 04 20 06 20 08 20 10 20 12 By 2012: • Save 2% of US total natural gas • Meet 67% of President’s Carbon Reduction goal • Save $12.5 billion of energy costs from today
By Fuel Type
Natural Gas Electricity
Tools & Training Qualified Specialists
EPAct Voluntary Program Coal Fuel Oil Diesel LPG Other 11
ITP Technology Delivery Strategy
Goals:
• By 2012, help 50,000 plants assess their energy savings opportunities and implement strategies to achieve 2.5% energy savings.
• By 2012, get 50 of our participating companies that own some of the largest energy-consuming plants to commit to at least a 2.5% annual reduction in energy intensity (per EPAct 106).
Manufacturing Energy Use Strategies
Large 58%
5-15% savings potential
Small 5% Mid Size 37%
10-30% savings potential
2002 EIA MECS 1) Deliver energy management tools and resources (technology and best operating practices) to manufacturing plants.
• By 2015, the majority of U.S. industrial companies have embraced best energy management practices (measured through MECS).
2) Leverage public/private sector to deliver resources. 3) Establish DOE-company agreements with appropriate recognition (EPAct 106).
4) Accelerate private investment in energy efficiency and energy-efficient technologies.
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ITP Technology Delivery Channels
Products & Services
• • •
DOE Experts Information Center Website States, Partners and Qualified Specialists Energy Service Companies Medium Plant Outreach: IACs and MEPs EPAct industry commitments & recognition
All Plants
Large Plants Medium and Small Plants
Increase results and accelerate implementation
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Results and Highlights
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Accomplishments
• More than 170 commercialized technologies to date • Nearly 5 quads of energy saved since program inception; 366 trillion Btu in 2004 alone* • 17
R&D 100
awards since 2000; 39 awards since 1991 • Over 13,000 U.S. manufacturing plants impacted through Technology Delivery efforts** • More than 150 patents issued under ITP-sponsored R&D 1994 –2005.
*Source: 2006 IMPACTS Report **ITP has provided assistance, in the form of tools, training, assessments or consultations to these plants.
Benefit Assessment Process
•
ITP is the only EERE Program that has voluntarily elected to evaluate R&D results through retrospective study.
•
Despite inherent challenges in tracking, ITP has assessed impacts for >20 years. Though imperfect, improvements are ongoing.
•
A 2001 review by the National Research Council, NAS, determined that the
“industrial programs are cost-effective and have produced significant energy, environmental, and productivity benefits…”
and
“the non-energy economic benefits—such as improved productivity —that are achieved by some of these technologies often far exceed the energy savings…”
15
Save Energy Now initiative
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Energy Savings Assessment Status (7/20/06)
• 130 Energy Savings Assessments completed (out of 200 planned this year) • Results of 86 assessments have identified a total potential natural gas savings of
25 trillion Btu per year
– equal to 350,000 US homes • 6 month follow-up to estimate implementation in progress
Completed Assessments Scheduled Assessments
As of July 24, 2006
Secretary Bodman (right) at the Caterpillar Tractor Energy Savings Assessment “While [Dow] has been a leader in energy efficiency, with DOE’s help, we found yet more cost effective opportunities to save precious energy.” John Dearborn, 17
2007 Energy Savings Assessments
Target 260 ESAs in Calendar Year 2007
– Compare to 200 in Calendar Year 2006
Expanded outreach
– Communications to 3,500 large energy using plants – Trade associations
Greater cost share
– 3 rd parties able to cost share up to 10 ESAs – Additional cost shared ESAs available to applicants
More energy system types
– Compressed air, pump and fan systems
Increase implementation and replication
– Continual follow-up by ITP field team – Publicity and case studies for companies replicating –
Recognition program for high implementers
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State Outreach & Resources
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Selected State and ITP Accomplishments
• • • • • • • Joint Save Energy Now outreach 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 20
Update on current partnership efforts
• Recent state industrial solicitation focused on encouraging proposals to: – leverage and accelerate Save Energy Now results through cost shared Energy Savings Assessments and follow-up implementation with plants which have received an ESA.
– form multi-state collaborations to build on varying strengths of state industrial partnerships – bring forth ideas for accelerating fuel flexibility technology commercialization – bring forth innovative ideas to accelerate industrial energy efficiency technologies (e.g., financing, loans, etc.) 21
Accelerating State and ITP Results
• Cooperate to drive strategic initiatives such as Save Energy Now and Energy Flexibility/Gasification • Leverage market players (e.g., utilities, ITP Allied Partners, Qualified Specialists, and regional groups such as the Northwest Energy Efficiency Alliance) • Focus efforts toward largest energy consuming facilities (2%/60% rule) • Increase awareness of ITP emerging technologies and commercialization opportunities • Strategically communicate to state level policy-makers • Develop and agree on standard impact tracking systems and metrics
Are we jointly having as much impact as we can?
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