Presentation to the Annual

1

• Presentation to the Annual
• Energy Efficiency Forum

Jacques Beaudry-Losique, Program Manager
Industrial Technologies Program, EERE U.S.
Department of Energy June 13, 2006
2
Overview

• Industrial Energy Context
• ITP Program Role
• ITP RD
• ITP Technology Delivery
• ITP Results
• How We Can Work Together

3
Industrial Energy Context
4
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 andgas
  reserves are in unstable areas andflexible
  alternatives are not readily available.
• Economic security Rising prices hurtAmericas
  ability to remain competitive inthe global
  market place.
• Global Warming Global concernsregarding carbon
  emissions and climatechange are forcing
  industries and governmentsto rethink their
  strategies on energy fuels.

Natural Gas Prices, Henry Hub 1994-2007
per Million Btu
Oil Prices, West TX Intermediate 1948-2007
per Barrel
Consideration of these challenges hasled the US
government to reevaluate how it can most
effectively respond .
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Energy Security Is a National Priority Industry
Is an Important Component

• The EPACT 2005
• Sec 106 The Secretary shall publicizevoluntary
  agreements reduction of energy intensity by not
  less than 2.5 each year through 2016.
• Sec 902 The Secretary shall conduct energy
  research, development, demonstrationincreasing
  the efficiency of all energy intensive sectors,
  promoting diversity of energy supply, decreasing
  the environmental impact
• The Secretary shall publish measurable cost and
  goals, with each annual budget submission in the
  following areas Energy efficiency for
  buildings, energy-consuming industries, and
  vehicles.
• Sec 911 The Secretary shall conduct energy
  efficiency research, development,
  demonstrationSuch programs shall (A)
  Increasing the energy efficiency of vehicles,
  buildings, and industrial processes(B) Reducing
  the demand of the United States for energy

American Competitiveness Initiative Americas
economic strength and global leadership dependin
scientific and technological developments and to
apply these developments to the real world.
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Challenges for Energy-Intensive Industries

• Volatile energy prices
• Industry concern about naturalgas costs and
  volatility
• Influence of the emergingeconomies on
  competitive landscape and energy and raw
  materials prices
• Difficulty for process industries to make needed
  investments in RD and commercialization
• Potential for game-changing scientific advances
  (e.g. nanotechnology) to transform industries

Natural Gas Prices, Henry Hub, LA
Dollars per Million Btu
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Industry Critical to National Energy Picture
(Quadrillion Btu)
Industry is the largest energy using sector
2004 Energy Use 100.3 Quads

• 37 of U.S. naturalgas demand
• 29 of U.S. electricity demand
• 30 of U.S. greenhouse gas emissions
• Uses more energy than any one of the other G8
  nations

Industry 33
Transportation 28
Japan Total Energy Consumption - 22.4 Quads
Commercial 18
Residential 21
Includes electricity losses
Source DOE/EIA Monthly Energy Review 2004
(preliminary) and estimates extrapolated from
MECS
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ITP Program Role
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ITP Directly Supports DOE Strategic Goals
DOE Strategic Goals
Industrial Technologies Program
Mission
ENERGY SECURITY Goal 1.1 Energy Diversity
Increase our energy options and reduce dependence
on foreign fuel supplies, thereby reducing
vulnerability to disruption and increasing the
flexibility of the market to meet U.S.
needs. Goal 1.2 Environmental Impacts of Energy
Reduce greenhouse gas emissions and other
environmental impacts (water use, land use,
criteria pollutants) from energy production
use. Goal 1.4 Energy Productivity Improve the
energy efficiency of the U.S. economy.
Enhance national energy security,
competitiveness, and environmental quality by
transforming the way U.S. industry uses energy.
Vision
An American industry that is the global leader in
high-impact, clean, efficient, and flexible
energy technologies and practices.
ITP Program Elements

• Energy Intensive Process RD
• Fuel and Feedstock Flexibility
• Technology Delivery

SCIENTIFIC DISCOVERY Goal 3.3 Research
Integration Integrate basic and applied
research to accelerate innovation and to create
transformational solutions for U.S. energy needs.
MANAGEMENT EXCELLENCE
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ITP Plays a Unique and Critical Role
ITP is the sole Federal program focused on
reducing energy demand in industry. It supports
near- and long-term energy security.

• Provides immediate relief from natural gas price
  volatility through Energy Savings Assessments at
  some of the largest U.S. plants
• Develops technologies that are commercialized by
  small, entrepreneurial businesses
• Advances basic science to application in
  real-world industrial markets
• Provides hands-on experience for future
  scientists and engineers through university-based
  Industrial Assessment Centers

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Energy Opportunities in the Industrial Sector
More Efficient Operating and Maintenance
Practices Best operating practices can be
disseminated and implemented rapidly at
negligible cost to enhance operating efficiency
in manufacturing facilities in the near- to
mid-term.
Increased Adoption of State-of-the-Art
Technology Improved energy efficiency through
rapid adoption of currently available technology
is the best near to mid-term strategy for better
balancing energy supply and demand.
Fuel and Feedstock Substitution Manufacturers
need the flexibility to adapt to dynamic energy
prices and supply issues.
Development of Advanced Technology Progress
toward long-term national goals for energy and
the environment rely on continuous technology
innovation. The technologies required to address
todays challenges can require a decade or more
to progress from basic science to
commercialization.
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ITP RD
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ITP RD Areas Focus on Energy Efficiency
High Temperature Processes
Industrial Reaction and Separation
Develop energy efficient high-temperature process
technologies for producing metals and
non-metallic minerals
Develop technologies for efficient reaction and
separation processes

• Advanced Metal Heating and Reheating
• Advanced Melting
• Efficient Heat Treating
• High Efficiency Calcining
• Next-Generation Steelmaking

• Oxidation Processes
• Microchannel Reactors
• Hybrid Distillation
• Alternative Processes
• Advanced Water Removal

335 Trillion Btu/yr in 2020
470 Trillion Btu/yr in 2020
Fabrication and Infrastructure
Energy Conversion Systems
Develop high efficiency steam generation and
combustion technologies and improved energy
recovery technologies
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

• Thermal Transport Systems
• Super Boiler
• Ultra-High Efficiency Furnace
• Waste Heat Recovery

570 Trillion Btu/yr in 2020
250 Trillion Btu/yr in 2020
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Technologies That Are Making a Difference
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Technologies that will Make a Difference
1st Mesabi nugget shipment
Superboiler
Nickel Aluminide Transfer Rolls
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Mesabi Nugget

• One-step iron making production process to
  replace three-step operation
• Produce iron feedstocks for all existing iron and
  steel making furnaces (basic oxygen, electric arc
  and foundries)
• Evaluate alternatives for reducing natural gas
  use in process

Pilot-scale demonstration plant
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Super (Industrial) Boiler

• U.S. Industrial Boilers
• Largest industrial energy application6
  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
• 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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Isothermal Melting

• Radically new concept with potential
  torevolutionize the aluminum melting
• Greatly reduces energy input (lt650 Btu/lb. vs.
  2,300 Btu/lb. forconventional melting)
• Low capital and operating costs
• No in-plant emissions
• Improves metal quality
• Reduces yield loss (lt1, vs. 2 to 4 loss in
  conventional melting)
• Requires 1/3 the floor space of conventional
  melting
• Potential energy savings of 63 trillion Btu/year
  in efficiency gains
• Can be used in retrofit applications

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ITP Technology Delivery
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Secretarial Initiative Save Energy Now

• Status
• 200 plants selected in 39 States(14 of
  manufacturing gas useequivalent to 13 million
  typicalUS homes that use natural gas)
• 107 assessments completed as of June 9th, 2006
• Initial results from 61 assessments
• Potential savings over 22.8 trillion Btu
  naturalgas (equivalent to more than 312,000 US
  homes)
• Nearly 196 million/year in energy cost savings
• Seven plants have reported immediate
  implementation of recommended ESA actions,
  leading to a total energy savings of over
  900,000 per year.

Secretary of Energy Samuel W. Bodman
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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 our largest energy-consuming
  plants to commit to a minimum of 2.5 annual
  reduction in energy intensity as part of EPAct
  106.
• By 2015, influence the majority of U.S.
  industrial companies to embrace good energy
  management practices.
• Support U.S. international energy and climate
  agreements

Small 5
Manufacturing EnergyUse
Mid-Size 37
Large 58
10-30 savings potential
5-15 savings potential
2002 EIA MECS
Strategies

• Promote energy management (technology and best
  operating practices) to manufacturing plants.
• Establish DOE-company agreements with appropriate
  recognition (EPAct 106).
• Accelerate private investment in energy
  efficiency and energy-efficient technologies.

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ITP Technology Delivery Results

• By the end of FY05, we achieved energy savings of
  304 trillion Btu per year (est.) (141
  electricity, 122 natural gas)
• 1.1 of total industrial non-feedstock energy
  (304/26,496)
• 1.3 of total industrial electricity (141/11,171)
• 1.8 of industrial non-feedstock natural gas
  (122/6970)
• In FY05, we spent 15.4 million to achieve gt 225
  million in energy cost savings (115)
• FY2005 Statistics
• Plant wide assessments 9
• IAC assessments 606
• Software tools delivered 3,088 plants
• Training 3,800 participants
• Qualified Specialists 351 certified thru
  FY2005
• Total of 12,877 plants participating through the
  use of software tools, training, and assessments
  (as of September 30, 2005)

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Energy Savings Assessment Results

• Initial results from 36 assessments
• Total natural gas savings identified 11.3
  trillion Btuper year
• Equal to the natural gas consumption of 155,000
  homes
• Total cost savings potential identified 95.6
  million peryear
• Six plants have reported immediate
  implementationwith estimated savings of 824,000

• 2 4 years
• Modify steam turbine operation
• Use oxygen for combustion
• Change process steam use

• gt 4 years
• Install CHP system

• lt 9 months
• Improve insulation
• Implement steam trap program
• Clean heat transfer surfaces

• 9 mo. 2 years
• Heat feed water with boiler blowdown
• Lower excess oxygen
• Flue gas heat recovery

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ITP Technology Delivery Tomorrow
EPAct industry commitments and recognition program
Products Services

• Energy Savings Assessments
• Software Tools
• Training
• Emerging Technologies Information
• Application Guides

Partners and Qualified Specialists
Corporations and Plants
Energy Service Companies
Medium Plant Outreach IACs and MEPs
DOE Team and National Labs
Increase results and accelerate implementation
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ITP Results
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Accomplishments
Benefit Assessment Process

• ITP is the only EERE Program that has voluntarily
  elected to evaluate RD results through
  retrospective study.
• Despite inherent challenges in tracking, ITP has
  assessed impacts for gt20 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 benefitssuch as
  improved productivitythat are achieved by some
  of these technologies often far exceed the energy
  savings

• More than 170commercializedtechnologies to date
• Nearly 5 quads of energy saved since program
  inception 366 trillion Btu in 2004 alone
• 10 RD 100 awards since2000 31 awards since
  1991
• Over 13,000 U.S. manufacturing plants impacted
  through Technology Delivery efforts
• More than 100 patents issued under ITP-sponsored
  RD 1994-2005.

Source 2006 IMPACTS Report ITP has provided
assistance, in the form of tools, training,
assessments or consultations to these plants.
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Technology Delivery Accomplishments in FY2006
so far

• Selected 200 ESA teams for Save Energy Now
  campaign
• Completed 107 ESAs, 93 pending.
• First 61 ESAs have identified over 196 million
  per year in energy cost savings and could reduce
  natural gas consumption over 22.6 trillion Btu
  per year, equivalent to natural gas consumed of
  312,000 typical homes
• Secretary of Energy toured Caterpillar plant in
  April
• Selected and trained 37 Energy Saving Experts
• Created Save Energy Now CD and distributed to
  9,930 people (end users, utilities, suppliers,
  states)
• Conducted 90 training sessions
• Conducted 350 small-to-medium size plant IAC
  assessments
• Launched the Quick Plant Energy Profiler (PEP)
  tool
• Issued the Pump Systems Sourcebook

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How We Can Work Together
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How can we work together?

• Consider and make customers aware of ITP
  commercialized and emerging technologies
• Disseminate ITP BestPractices tools and
  information
• Participate on ITP RD collaboration efforts
• Participate in Save Energy Now
• Apply for an Energy Savings Assessment
  Announcement for Round 2 of ESAs in Fall, 2007
• Sponsor an ITP training workshop with customers

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Resources for Plants to Save Energy

• Energy analysis software tools
• Case studies/tip sheets/manuals
• Energy efficiency trainingfor plant staff
• Qualified software specialists
• DOE-supported energy assessments
• Plant information package CD

877-337-3463 www.eere.energy.gov/industry www.eere
.energy.gov/industry/saveenergynow
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