Policy Implications of Greenhouse Warming Mitigation, Adaptation, and the Science Base (1992) / Chapter Skim
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22 Industrial Energy Management
22 Industrial Energy Management
Pages 248-285
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From page 248... ...
Six industry groups account for more than 70 percent of total primary industrial energy use. These major groups, and their corresponding percentage of total industrial energy consumption, are chemicals (21 percent)
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From page 250... ...
RECENT TRENDS Several recent studies have documented dramatic decreases in the energy intensity of the U.S. manufacturing sector (Ross, 1989a; U.S.
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. 20 ~ 15 7 LL 111 E1 Electricity If:> ~ Wood I \ O Natural Gas I \ 19 Oil · Coal .
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The other factor was improvements in the efficiency of manufacturing processes, resulting in less energy needed per unit of production (Boyd et al., 1987~. The relative importance of structural changes and energy efficiency improvements has been analyzed by the U.S.
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From page 253... ...
The latter study attempted to develop an indicator of aggregate energy efficiency improvements independent of the structural changes noted earlier. The output of each industry group was assumed to remain constant at its 1973 value, whereas its energy intensity followed the actual historical path.
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From page 254... ...
Although the energy price shocks of the 1970s undoubtedly contributed to improvements in energy efficiency, the more significant driving force for energy improvements in the industrial sector appears to have been the long-term changes in basic process technology, which reduce overall production costs as well as energy costs. Thus, even at the relatively low energy prices prior to 1973 and since 1980, manufacturing processes have become increasingly energy efficient.
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From page 255... ...
bA decrease in energy efficiency ratios from 1980 to 1985 indicates an improvement in energy efficiency and thus a positive value for "energy efficiency change." CEstimates of energy efficiency change are calculated from unrounded energy efficiency ratios and may differ from changes calculated from the rounded ratios in columns 1 and 2.
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From page 256... ...
Because of the extraordinary heterogeneity of the industrial sector, this chapter makes no attempt to discuss specific technological measures for AL _ reducing energy use in each of the major industries. Excellent summaries of energy use technologies on an industry-by-industry basis are available elsewhere (e.g., Decision Analysis Corporation, 19901.
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From page 257... ...
is displaced by either oil or natural gas. Based on the average carbon content of fossil fuels, this would yield a CO2 reduction of
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Uncertainty over the long-term availability and price of gas and oil can be expected to inhibit fuel conversions, even where technologically feasible. Emission reduction measures can also include switching from fossil fuels to electricity, which already is occurring to some degree.
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From page 259... ...
Opportunities here range from "housekeeping" improvements, which conserve relatively small amounts of energy at low to negligible cost, to more substantial measures requiring much higher capital investments but with potentially larger energy cost savings. A number of recent studies have addressed potential energy conservation measures for the industrial sector (e.g., Oak Ridge National Laboratory, 1989; Ayres, 1990; Decision Analysis Corporation, 1990~.
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From page 260... ...
The opportunity for energy efficienyv improvements lies principally in single-phase and three-phase ~ J r TABLE 22.4 Breakdown of Electricity Consumption for Motive Power and Possible Efficiency Improvements (example: Germany) 100% electricity consumption 69% for motive power 31% for process heat, lighting, and other 37% for three-phase AC motors All three-phase motors For 60%, electronic control already exists or is not recommended 22.2% of total 32% for DC motors, one-phase AC motors, and small-scale motors For 40%, electronic control is possible 14.8% of total 32% of total Motors already optimized Motors that can be influenced 46.8% of total electricity used for motive power Electronic control Correct size, Savings: 25% high-efficiency motors Savings: 10% SOURCE: International Energy Agency (19891.
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From page 261... ...
Unlike the buildings and transportation sectors, where energy use is concentrated in a relatively small number of processes that have been extensively studied, the enormous diversity and variability of industrial processes remain to be characterized to a similar extent. In particular, there is little publicly available information on the costs of energy conservation measures in the industrial sector.
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From page 262... ...
Cutting/etching Assembling Extruding Heating Space heating Water heating Cooking Process heating Storage Cooling Space cooling Process cooling Storage Physical/chemical transformation Melting Extruding Separating Drying Curing Welding Coating Chemical synthesis Cleaning Lighting, commercial/industrial Information handling Energy management systems Office equipment SOURCE: Ross ~ 1989a)
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From page 263... ...
Note that in both the EPRI and the Ross studies the bulk of the savings comes from the use of more efficient motors, electrical drive systems, and lighting, which constitute the primary uses of electricity in industry. Empirical evidence suggests that for the industrial sector, discount rates of 20 to 30 percent or more, corresponding to payback periods of less than 3 years, are required to stimulate investments in energy efficiency improvements (Ayres, 1990; Ross, 1989a, 1990b)
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From page 264... ...
Nevertheless, opportunities do exist to utilize co-generation more extensively, for example, by using newer gas turbine technology that better matches typical industrial energy demands and provides larger overall fuel savings (Williams et al., 1987~. New financial incentives for co-generation also now exist as a result of the 1978 Public Utility Regulatory Policies Act (PURPA)
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. Co-generation units typically employ either a boiler/steam turbine, combined cycle, or gas turbine to achieve higher overall energy efficiency in comparison with to the separate generation of steam and electricity (Larsen and Williams, 1985~.
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From page 266... ...
Other Conservation Measures A wide variety of other energy-saving measures have been identified in industry-specific studies that focus on the details of industrial processing. Such measures range from improved waste heat recovery at chemical plants to soaking pit enhancements in steel mills to boiler efficiency improvements in the food processing industry, and so on.
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From page 267... ...
4 ~ a) >` O UJ Y m u~ 3 cn 12 FIGURE 22.9 Energy conservation supply curves for (a)
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From page 269... ...
Changes in Process Design To the extent that new industrial process technology continues to reduce the energy intensity of manufacturing, CO2 emissions will decline. As seen earlier, this method of energy reduction appears to be one of the most significant long-term mechanisms for reducing energy use and consequent emissions.
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From page 270... ...
A sustained improvement of 1.5 percent per year in energy efficiency through new process technology would yield a 25 percent decrease in overall industrial energy demand shortly after the turn of the century. The corresponding CO2 reduction would be on the order of 300 Mt/yr, based on current energy use.
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From page 271... ...
Policy measures that can hasten the rate of capital turnover and the introduction of more-energy-efficient process technology can therefore speed the long-term trend in energy efficiency improvements indicated earlier. Related to this, regulatory requirements for process operating permits (i.e., as required by air and water pollution control agencies)
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From page 272... ...
Thus direct government regulation of industrial energy use would be much less effective than price as a means of inducing energy efficiency and other measures that reduce CO2 emissions. Policy instruments likely to be most useful in managing CO2 emissions in industry thus include fuel taxes, regulatory changes to encourage co-generation and other conservation measures, and tax credits or other incentives to induce investments in research, recycling, and new process technology that uses energy more efficiently.
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From page 273... ...
Investment Tax Credits Another method of reducing energy consumption is to change the corporate tax code to encourage quicker capital turnover and investment in more fuel-efficient production processes. This policy would encourage the many industries with old capital equipment and low rates of capital turnover (e.g.,
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From page 275... ...
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From page 276... ...
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From page 279... ...
CONCLUSIONS The major conclusions that emerge with regard to CO2 mitigation measures for the industrial sector are the following: · The industrial sector typically imposes the greatest demand for primary energy, making it (in most cases) the largest contributor to greenhouse gas emissions associated with the use of energy.
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From page 280... ...
. Optimization Sensors and computer M M control Refining L L New hydrocarbon conversion L L Waste heat recovery L L Separations L L Improved catalysts L L Sensors L L Energy management systems L L Aluminum L L Carbothermic reduction of ore L L Carbothermic reduction of alumina L L Aluminum sulfide electrolysis L L Alcoa process L L Permanent anode L L Wetted cathode L L Steel M L Scrap benefication L L Advanced ironmaking processes M L Advanced ore to steel processes L L Advanced scrap to steel processes M L Advanced casting M L Sensors and controls L L Advanced refractories M L
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From page 281... ...
INDUSTRIAL ENERGY MANAGEMENT TABLE 22.10 (continued) 281 Energy Significance Technological Opportunities Near Terma Long Termb Paper M M Chemical pulping M L Paper/fiber recycle L L Mechanical pulping L L Papermaking M L Advanced pulping technologies M L Agriculture M M Increased fertilizer productivity L L Improved tillage L L Improved irrigation L L Animal biotechnology L L Plant biotechnology L L TECHNOLOGICAL AREAS Reject Heat Recovery H M Industrial Combustion H H Fuel flexible furnaces H .
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From page 282... ...
Further study of costs is needed to analyze more rigorously the relationships between industrial energy use and greenhouse gas mitigation measures. · Estimates of the energy savings from energy conservation investments that reduce the use of electricity for manufacturing (via more efficient motors, drives, process technology, and so on)
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From page 283... ...
manufacturing production from energy efficiency improvements: A divisia index approach. The Energy Journal 8~2~:77-96.
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From page 284... ...
1987. Industrial energy conservation and the steel industry of the United States.
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From page 285... ...
1990. Manufacturing Energy Consumption Survey: Changes in Energy Efficiency 1980- 1985.
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