Industrial Technologies Program

State Energy Advisory Board MeetingArlington, VA

November 16-18, 2005

Jacques Beaudry-Losique, Program Manager Industrial Technologies Program, EERE

U.S. Department of Energy

2

Overview• Industrial Energy Context

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

• Results & Highlights

• Save Energy Now Initiative

• State Outreach & Resources

3

Industrial Energy Context

4

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

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

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

Industry33.6%

Transportation27.9%

Commercial17.4%

Residential 21.1%

2004 Energy Use*

*Includes electricity losses

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

5

U.S. Energy Consumption by Industry

Source: 1998 Manufacturing Energy Consumption Survey (MECS)

Tril

lion

Btu

Other

Computers

PlasticsGlass

Fabricated MetalsTransport

Equip.

Mining

0

2000

4000

6000

8000

Petroleum &Coal Products

Chemicals ForestProducts

Iron & Steel Food &Beverage

Aluminum Other(1,922 TBtu NG)

All Energy

Natural Gas

Natural Gas Liquids

6

U. S. Consumption of Natural GasBy Sector, 2004

Transportation 0.7 Quads

Power 5.5 Quads

Commercial 3.1 Quads

Residential 5.0 Quads

Industrial 8.8 Quads

Industry > 40% of total U.S. Natural Gas UseSource: DOE/EIA Monthly Energy Review 2004 (preliminary)

7

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

0.0

2.0

4.0

6.0

8.0

10.0

NG

Co

st

($/M

MB

TU

)

1999 2001 2003 2005YTD

Industrial NG Prices

US NG Prices WV NG Prices

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ITP’s Focus

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The Industrial Technologies Program (ITP)

Collaborative R&D

Technology Delivery

Partnerships

• Energy-intensiveProcess Technologies

• Crosscutting Technologies

• Assessments

• Training & Tools

Delivering Technology Solutions

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0

2000

4000

6000

8000

Petroleum &Coal Products

Chemicals ForestProducts

Iron & Steel Food &Beverage

Aluminum OtherManufacturing

Tri

llio

n B

tu

• Next Generation Steel-making

• Advanced Water Removal

• High-Efficiency Pulping

• Hybrid Distillation• Process Intensification

Crosscutting

Other

Computers

Plastics

Glass

Fabricated Metals

Transport Equip.

Mining

• Inferential-based Process Control

• Advanced Thermo- Electric Materials

• Super Boiler• Ultra-Hard Materials• Natural Gas

Alternatives

• Iso-thermal Melting

Process specific

Types of R&D Supported by ITP

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Emerging Topic: Fuel/Feedstock Flexibility

Application

Near Term

(<6 mnnth)

Mid Term

(6 mnnth – 2 yrs)

Long Term

(>2 yrs) TOTAL

Feedstock -- -- 700 700

Process 100 200 1,380 1,680

Boiler 200 750 800 1,750

TOTAL 300 950 2,880 4,130

Total Nat Gas Displacement(1012 Btu)

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

ITP Strategies

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

• Qualified specialists

• Energy efficiency trainingfor plant staff

• Energy analysis software tools

• Case studies and information

Websites:

877-337-3463www.eere.energy.gov/bestpractices www.energysavers.gov/industry

Technology Delivery Resources

Info Center:

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Technology Delivery Focus U.S. Manufacturing Plants: By Size

Small Plants

<$100K

Category:Annual EnergyCosts

Mid-Size Plants

$100K-$2M

Large Plants>$2M

Nu

mb

er o

f U

.S.

Pla

nts

1998 EIA MECS

All U.S. Plants

Percent of Total Industrial Energy

Small &Medium

47%

Large53%

Focus of IAC Teams

Focus of CTA, PWA Teams

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Results and Highlights

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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 billionsince 1976

• Initiated tracking of 11 new commercialized technologies

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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

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• Chemicals through 1/11/06 ~ $10 million

• SBIR through 12/2/05 ~ $10 million

• Materials for EECompleted ~ $ 7.6 million

• Industrial Assessment Centersthrough 1/24/06 ~ $ 6 million

• Materials (Labs)Completed ~ $ 5 million

• Innovative Energy Systemsthrough 1/25/06 ~ $ 4 million

• Inventions & Innov. Completed ~ $ 2 million

FY2006 ITP RD&D Solicitations

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Save Energy Now initiative

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“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

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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

Note: Does not include off-site losses

Manufacturing Energy Use by Type of System

(%)Process Heating

38%

Steam 35%

Other4%Electrochemical - 2%

ProcessCooling

1%

Motor Systems

12%

Facilities 8%

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Robust Partnerships to Reach Plants• Allied Partners• States• Utilities• Equipment Suppliers & Service

Companies• Trade Associations• Replication within Industrial

Companies

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For the Latest Information …

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

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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

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Recent SEP Special Project Industrial Awards

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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