Save Energy NowEnergy Savings Assessments

Bob Gemmer, U.S. Department of EnergyIndustrial Technologies Program (ITP)

Texas Technology ShowcaseGalveston, TexasDecember 7, 2006

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Outline

•Outline of Save Energy Now

•Energy Savings AssessmentsOverviewImplementation

•Partnerships and Outreach

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Global Energy Challenges

•National energy security: Global oiland gas reserves are in unstable areas andflexible alternatives are not readily available

•Economic security: Rising prices hurtAmerica’s ability to remain competitive inthe global market place

•Global Warming: Global concernsregarding carbon emissions and climatechange are forcing industries andgovernments to rethink their strategieson energy fuels

$pe

rM

illio

nB

tu$

per

Bar

rel

Natural Gas Prices, Henry Hub 1994-2007

Oil Prices, West TX Intermediate 1948-2007

0

20

40

60

80

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

0

5

10

15

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

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Projected Energy UseTotal U.S. Energy Production vs. Consumption,

2000-2020

0

20

40

60

80

100

120

140

2000 2005 2010 2015 2020

Qua

drill

ion

Btu

per

year

Total U.S. Production

Total U.S. Consumption

Source: Energy Information Administration projections

CriticalGap

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Current U.S. Policy Environment• Increased Public Awareness of Energy Issues• Immediate Opportunity

– Implementation of Energy Policy Act 2005 (EPACT)–Congress may consider additional measures

• General U.S. Approach–Public/Private Partnerships--Engage business wherever

possible•Building America•Building Energy Codes Program•Energy Star•Save Energy Now Program

–Leading by Example•Federal Energy Management Program

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“Easy Ways to Save Energy”Campaign Four activities were started in 2006 to

respond to supply shortages andskyrocketing natural gas prices:

1. Energy Hog campaign–Public Service Announcements

2. Energy Savers tips to help homeowners save energy3. Federal Energy Management Program (FEMP) energy

saving teams4. Industrial Technologies Program (ITP)

“Save Energy Now”

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Industry: Critical to National Energy Policy•Uses more energy than any other single sector; >1/3 of U.S.

energy consumption

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

•Accounts for more than 35% of U.S.natural gas demand

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

•Energy is key to economic growth indomestic manufacturing

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

Industry33.4%

Transportation27.2%

Commercial17.9%Residential

21.5%

2002 Energy Use

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ChemicalsPaper & WoodMetalsNon MetallicPetroleum RefiningFood Processing

PlasticsFabricated Metal ProductsTransportation EquipmentMachineryComputer & ElectronicProductsElectrical EquipmentPrintingConstruction

RawMaterials

Oil & GasFeedstocks

6.5 Quads

MiningForestryFarmingOil & GasExtraction

NaturalResourceExtractionIndustries

Process &MaterialsIndustries

Fabrication& AssemblyIndustries

Heavy Energy Use in Process Industries*

BulkCommodityProducts

RetailMarkets

3.9 Quads 5.9 Quads25.5 Quads**

* 1998 estimates based primarily on MECS and AER dataIncludes electricity generation, transmission, and distribution losses

** Includes 6.5 Q oil & gas feedstocks

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The Context“America’s businesses, factories, and manufacturingfacilities use massive amounts of energy. To help themduring this period of tightening supply and rising costs, ourDepartment is sending teams of qualified efficiency expertsto 200 of the nation’s most energy-intensive factories. OurEnergy Saving Teams will work with on-site managers onways to conserve energy and use it more efficiently.”

Secretary of Energy BodmanNational Press Club

October 3, 2005

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The Industrial Technologies Program (ITP)Delivering technologysolutions to make Americanindustry the global leader inhigh-impact, clean, efficient,energy technologies andpractices.

Collaborative R&D

•Energy-intensiveProcess Technologies

•CrosscuttingTechnologies

Technology Delivery•Assessments

•Training & Tools

•TechnologyDemonstrations

Partnerships

ITP Mobilized Existing Capabilities

• Suite of respected software toolsfor assessing plant systems

• Established training programs

• Cadre of Qualified Specialists invarious assessment tools/systems

• Network of university-basedIndustrial Assessment Centers (IACs)

• In-depth experience in conducting plant energy assessments

• Strong partnerships and high credibility with influentialcompanies in the manufacturing sector

Secretary Bodman at theCaterpillar Tractor ESA

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Assessments Build on Existing Resources

•Internet Info Resources

–ITP and BestPractices Websites

•Communications Tools

–Energy Matters

–ITP E-Bulletin

•EERE Info Center 877-337-3463

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What’s New?Plant Energy Profiler (PEP) Tool

INPUTS

•Plant description

•Utility supply data –electricity, fuel &steam

•Energy consumingsystem information

•Scorecardresponses

OUTPUTS•Overall picture of

plant energy use•Summary of energy

cost distributions•Preliminary

assessment &comparison

•Areas or energyefficiencyimprovement

•Energy cost reductionpotential

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Save Energy NowA DOE Activity to Help Industry

Save Energy and MoneyConduct energy savings assessments

of the most energy-intensive U.S. plants

•Work with partners to create awarenessand find energy savings solutions

•Disseminate energy savings information &tools to 50,000 plants to help reduce naturalgas and electricity use.

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Save Energy NowGoals:• Encourage industry to voluntarily

reduce its energy usage in a periodof tight supplies by working withAmerica’s largest energy-intensiveplants

• Create momentum to significantlyimprove energy efficiency practicesthroughout the manufacturingsector

Energy Savings AssessmentsOverview

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Plant Energy Assessments

•Over 120 assessments underway or completed

Plant wide assessments (comprehensive)

Targeted system assessments (quick focused)

•Annual savings opportunities identified: > $250 million

•Average identified energy savings per plant: 10-15%

•Annual savings implemented ~$30 million

Small/Medium Plant Assessments

• Plants with energy consumption $100,000to $2 million

• Over 500 assessments per year

• Average plant savings: 4.2 billion Btus(about $21,000)

• Conducted by industrial assessmentcenters at 26 universities

Large Plant Assessments

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Energy Savings Assessments• Assessments of targeted industrial systems by

Qualified Specialist using the DOE software tools

–Focus is on training as much as doing anenergy assessment

• Energy Savings Assessment Report identifiespotential energy and cost savings

• Plants selected by DOE based on several factors,including:–The plant’s energy consumption–The company’s intention to include other

similar plants within their company

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115,636

6,802

226,737

104,299

0

50,000

100,000

150,000

200,000

250,000

Relatively Few Plants Use the Most EnergyU.S. Manufacturing Plants: By Size

SmallPlants

<$100KAnnualEnergyCosts

Mid-SizePlants

$100K-$2M

LargePlants>$2M

Nu

mb

ero

fU

.S.P

lan

ts

AllU.S. Plants

1998 EIA MECS

Percent ofTotal Industrial Energy

Small &Medium

47%Large53%

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Energy Savings Teams• Teams Composed of DOE Qualified Energy Experts and Plant Personnel• Teams will focus on steam generation. process heating, compressed air,

pumps or fans• Plant personnel and affiliates will be trained on DOE efficiency tools

ProcessHeating

38%

Steam35%

Other4%Electro-chemical

2%

Process Cooling1%

MotorSystems

12%

Facilities 8%

Note: Does not include off-site losses

ManufacturingEnergy Use byType of System

(%)

Energy Savings AssessmentsImplementation

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Application

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Application Status

•As of 12/04/06–198 Applications have been received (after

elimination of spurious applications)–105 exceed the 1 trillion Btu/year threshold–60 have natural gas consumption in excess

of 1 trillion Btu/year

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All Industrial Plants Get Assistance•For plants applying who do not meet the criteria

for an Energy Savings Assessment, otherassistance will be offered such as:–Industrial Assessment Center assessment–Personalized phone consultation to address

energy efficiency in their plant–Self assessment tools–Information products, DOE software tools and

training

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•190 Energy Savings Assessments completed (out of 200)

•With 164 assessments reporting:

– Total potential natural gas savings of 42 trillion Btu per year –equal to 580,000U.S. homes

– Total cost savings potential identified = over $405 million per year

“While [Dow] has been aleader in energyefficiency, with DOE’shelp, we found yet morecost-effectiveopportunities to saveprecious energy.”

John Dearborn,Global Business VP, Energy, Dow

Energy Savings Assessment Status (12/04/06)

Total Energy SavingsBy 2008, the Assessments of2006 will annually save theenergy carried by 10 LNGtankers.

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Many Opportunities FoundAfter 6 months:

–63 plants haveimplemented projectsworth $9 million/yr

–An additional $117million per year is eitherunderway or planned

–Initial 162 assessmentsare identifying average of$2.5 Million energysavings per plant

< 9 months

•Improveinsulation

•Implementsteam trapprogram

•Clean heattransfersurfaces

9 mo. –2 years

•Heat feed water withboiler blowdown

•Lower excess oxygen

•Flue gas heat recovery

2 –4 years

•Modify steamturbine operation

•Use oxygen forcombustion

•Change processsteam use

> 4 years

•Install CHPsystem

Payback Periods ofRecommended Actions

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ESA Results

Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS

6.2

4.1

1.6

1.9

3.3

7.3

7.8

1.40.9

Industry Energy Use(Quads)

Chemicals

Petroleum Refining

Forest Products

Iron & SteelFood Processing

Aluminum

Non-Mfg.

Other Mfg.

2006

Plants Assessed/Identified Savings

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Energy Savings Assessment ProcessConduct

PlantVisit

Analyze &Report

Results

GatherPreliminaryData

Follow-up

Train Plant Staff

•Teams are DOE Energy Experts and plantpersonnel

•Teams focus on fans, pumps compressors,steam or process heating systems.

•Plant personnel trained on DOE softwaretools

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Assessment Expert spends 3 days on site•Day 1

–Safety briefing, tour plant–Overview of DOE Tool to plant personnel–Agree on potential energy efficiency opportunities to investigate– Initiate Data Collection For Potential Opportunities

•Day 2–Continue data collection–Apply DOE tool to quantify potential opportunities–Plant lead & expert agree on opportunity results

•Day 3–Wrap up tool analyses–Plant lead & expert ensure they agree on opportunity results–Closeout meeting in p.m. to review results

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Save Energy Now –2007250 Assessments in 2007 (200 in 06)

On-Line application againMore energy system typesAdd compressed air, pump, and fan

systems to existing process heating andsteam systems

Publicity & Case Studies for replicationRecognition program being developed

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•Multiple Ways for Plants to Qualify• Plants using >1 Trillion Btu annually (not involved in 06)

•2006 Assessment Plants can participate again•must do different energy system & share the cost ~50%

•Plants <1TBtu can aggregate with other plants to meet 1T Btuthreshold•all plants get assessment (10 max)•must share the cost ~50%

•3rd Parties can apply on behalf of plants•~50% sharing of cost required•utility, state energy office, non-profit consortium, etc .

Save Energy Now –2007

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Give a man a fishand he will eat for

a day

Teach a man tofish

and he will eat fora lifetime

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Save Energy Now Website

Save Energy Now Websitewww.eere.energy.gov/industry/saveenergynow

Partnerships and Outreach

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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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•Utilize a wide variety ofinformation materials, webtools and technicalassistance

•Work with our existingpartners and develop newpartnerships to significantlyincrease our “reach”

“Save Energy Now”Outreach Goal: 50,000 Plants

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Energy MattersBestPractices’8-page quarterlynewsletter provides topical featurestories, guest articles by subject matterexperts, case studies, efficiency tips,and program information. Topics include

•System-level efficiency•Financing energy projects•Selling Projects to Management

Serves as a form of “push communication”to an audience of approximately27,000 plant engineers, managers, and operators, academia, and

government agencies.

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ITP E-BulletinA monthly email update of key programand technology developments of interestto industrial partners, featuring

•Headlines•New ITP Products and Resources•Training•Project Opportunities•Case Studies

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Information, Tools and Training•Tip sheets, case studies, brochures,

technical briefs etc.

•Energy Matters newsletter

•Industrial Technologies Monthly e-bulletin

•Software tools

•Training workshops and webcasts

•Web sites

•New:

– Packets of Information forPlants

– Save Energy Now CD

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•Information on EERE products/services•Unbiased, customized technical andprogrammatic assistance to help achieveindustrial energy savings•Experts help thousands of industries aswell as consultants, vendors, governmentagencies, and others that serve them

Voice:Fax:

Email:

877-337-3463360-236-2023eerecsc@ee.doe.gov

EERE Information Center

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“We must take our clean energytechnologies and replicate,proliferate, and accelerate.”

Andy KarsnerAssistant Secretary

Office of Energy Efficiency and Renewable Energy