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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 • The Industrial Technologies Program’s (ITP’s) Focus • Results & Highlights • Save Energy Now Initiative • State Outreach & Resources 2 Industrial Energy Context 3 Industry: Critical to National Energy Policy • 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 2004 Energy Use* Transportation 27.9% Industry 33.6% • Accounts for 28% of U.S. electricity demand • Produces approximately 30% of U.S greenhouse gas emissions Residential 21.1% Commercial 17.4% *Includes electricity losses Source: DOE/EIA Monthly Energy Review 2004 (preliminary) 4 U.S. Energy Consumption by Industry 8000 Trillion Btu All Energy 6000 Natural Gas Natural Gas Liquids Computers 4000 2000 Plastics Glass Fabricated Metals Transport Equip. Mining 0 Petroleum & Chemicals Forest Iron & Steel Food & Coal Products Products Beverage Source: 1998 Manufacturing Energy Consumption Survey (MECS) Other Aluminum Other (1,922 TBtu NG) 5 U. S. Consumption of Natural Gas By 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) 6 Challenges for Energy-Intensive Industries • International technology/cost competition • Uncertain environmental constraints • Limited access to LT investment capital • Uncertain long-term economics Industrial NG Prices • Natural gas prices and supply Henry Hub spot price on November 8 2005, was $11.89/MMBtu • “Many companies have been unable to pass higher energy costs on to their customers, which has sharply reduced their profit margins” National Energy Policy, pages 2-4 NG Cost ($/MMBTU) – 10.0 8.0 6.0 4.0 2.0 0.0 1999 2001 US NG Prices 2003 2005YTD WV NG Prices 7 ITP’s Focus 8 The Industrial Technologies Program (ITP) Delivering Technology Solutions Collaborative R&D • Energy-intensive Process Technologies • Crosscutting Technologies Technology Delivery Partnerships • Assessments • Training & Tools 9 Types of R&D Supported by ITP Process specific • Hybrid Distillation • Process Intensification 8000 • Advanced Water Removal • High-Efficiency Pulping 6000 Trillion Btu • Iso-thermal Melting Other • Next Generation Steel-making 4000 Computers Plastics Glass Fabricated Metals 2000 Crosscutting • Inferential-based Process Control • Advanced ThermoElectric Materials • Super Boiler • Ultra-Hard Materials • Natural Gas Alternatives Transport Equip. Mining 0 Petroleum & Chemicals Coal Products Forest Products Iron & Steel Food & Beverage Aluminum Other Manufacturing 10 Emerging Topic: Fuel/Feedstock Flexibility 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 Total Nat Gas Displacement(1012 Btu) Near Term (<6 mnnth) Mid Term (6 mnnth – 2 yrs) Long Term (>2 yrs) TOTAL -- -- 700 700 Process 100 200 1,380 1,680 Boiler 200 750 800 1,750 TOTAL 300 950 2,880 4,130 Application Feedstock 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 11 Technology Delivery Resources • DOE-supported energy assessments (IAC,CTA,PWA) • Qualified specialists • Energy efficiency training for plant staff • Energy analysis software tools • Case studies and information Info Center: 877-337-3463 Websites: www.eere.energy.gov/bestpractices www.energysavers.gov/industry 12 Technology Delivery Focus U.S. Manufacturing Plants: By Size Number of U.S. Plants 250,000 226,737 Percent of Total Industrial Energy 200,000 Small & Medium 47% 150,000 104,299 115,636 100,000 Large 53% 50,000 6,802 Focus of IAC Teams Focus of CTA, PWA Teams 0 Category: Annual Energy Costs Small Mid-Size Large AllUS BP Plants Total All Plants U.S. Plants Plants <$100K $100K-$2M >$2M Small Plants IAC Plants Plants Plants 1998 EIA MECS 13 Results and Highlights 14 2002 Program Results • Annual energy savings of 121 trillion Btu (87 commercial technologies currently tracked) • Cumulative energy savings of 2.6 Quads since 1976 • Cumulative production cost savings of $16.5 billion since 1976 • Initiated tracking of 11 new commercialized technologies 15 Four “R&D 100” Award Winners in 2004 • Enhancement of Aluminum Alloy Forgings through Rapid Preheating of Billets • Imaging Ahead of Mining • Smart Screening Systems • Advanced Glass Furnace Model 16 FY2006 ITP RD&D Solicitations • Chemicals through 1/11/06 ~ $10 million • 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) ~ $ 5 million Completed • Innovative Energy Systems through 1/25/06 ~ $ 4 million • Inventions & Innov. ~ $ 2 million Completed 17 Save Energy Now initiative 18 “Save Energy Now” Initiative Goals: • 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 19 Energy Savings Assessments • • • • • 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 Electrochemical - 2% Other 4% Facilities 8% Process Cooling 1% Motor Systems 12% Note: Does not include off-site losses Steam 35% Process Heating 38% Manufacturing Energy Use by Type of System (%) 20 Robust Partnerships to Reach Plants • • • • Allied Partners States Utilities Equipment Suppliers & Service Companies • Trade Associations • Replication within Industrial Companies 21 For the Latest Information … Save Energy Now Website www.eere.energy.gov/industry/saveenergynow EERE Information Center - Call: 1-877-337-3463 22 State Outreach & Resources 23 Selected State and ITP Accomplishments • 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 24 Recent SEP Special Project Industrial Awards 25 Accelerating State and ITP Results • 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 26