New Energy Efficient Technologies in Industry

1
New Energy Efficient Technologies in Industry

• Ernst Worrell
• Environmental Energy Technologies Division
• Lawrence Berkeley National Laboratory, Berkeley
• Western Regional Air Partnership
• Air Pollution Prevention Forum, May 31st, 2000

2
Introduction

• Industry is one of the the largest energy
  consumers worldwide and in the U.S. (37 of U.S.
  primary energy consumption)
• Industrial activities contribute considerably or
  are the main contributors to emission of many
  criteria pollutants
• Integrated policies to improve energy efficiency
  and reduce pollution are important to
• reduce the negative environmental impact of many
  industrial activities
• reduce the contribution to greenhouse gas
  emissions
• reduce the energy, waste treatment and permitting
  costs
• improve the productivity and bottom-line of
  industry
• Important to find synergetic approaches, that
  meet all of the above criteria

3
Industrial Energy Use Emissions
4
Overview of U.S. Steel Industry

• Steel industry is consumes 6 of industrial
  energy consumption and produces about 8 of
  industrial CO2 emissions
• It is also a large source of pollutant emissions
  (EDF-ranking)
• The U.S. steel industry is currently one the
  worlds largest
• 14 integrated steel companies operating 20
  integrated steel mills with 40 blast furnaces
• 60 of US production in 1994
• Primary Specific Energy Consumption 22.3 MBtu/ton
  
• 85 secondary steel companies operating 122 mini
  mills with 226 electric arc furnaces
• 40 of US production in 1994
• Primary Specific Energy Consumption 10.2 MBtu/ton
  
• Many opportunities exist for energy efficiency
  improvement and pollution prevention

5
Benchmarking of Steel Energy Use
Specific Energy Consumption (GJ/tonne)
6
Adoption of Continuous Casting in Selected
Countries, 1970-1995
7
Energy Efficiency Opportunities

• U.S. steel industry is less energy efficient than
  in other industrialized countries, suggesting the
  existence of opportunities for energy efficiency
  improvement
• Technical inventory of practices and technologies
  for energy efficiency improvement
• Inventory, or bottom-up approach allows
  assessment of pollution prevention and
  productivity benefits
• Inventory found nearly 50 practices and
  technologies
• Economic analysis of the measures finds a
  economic potential for energy efficiency
  improvement of 18, reducing CO2 emissions by
  19, assuming a payback period of 3 years or less
• Many practices and technologies have multiple
  benefits

8
Scrap Preheating

• Scrap Preheating (Fuchs Optimized Retrofit
  Furnace)
• Although recycling of steel reduces energy
  consumption, the efficiency of the electric
  furnace can be further improved by preheating the
  incoming scrap, using the hot flue gases of the
  furnace
• Electricity savings are estimated at 120 kWh/ton
  steel (20)
• While investments are estimated at 6 /ton steel,
  the reduced operation costs (-4.50 /ton), result
  in a payback period of 1 year
• The other benefits are improved productivity
  (reduced tap-to-tap times), improved yield,
  reduced electrode consumption, and reduced flue
  gas volume (reduced gas cleaning costs)

9
Thin Slab Casting

• Thin slab casting integrates casting and hot
  rolling, reducing the capital costs and energy
  use dramatically
• Thin slab casting reduces primary energy
  consumption by 3 to 5 GJ/tonne steel, saving up
  to 170 kg C/tonne steel
• Steel production costs are reduced by
  25-36/tonne, or 10 of production costs
• Several U.S. plants use
• the technology, potentials
• exist for greater use
• Reduced material
• losses and emissions

10
Energy-Efficient Technologies Are A Huge Resource

• Very large gains in energy efficiency--and other
  measures of productivity--will continue to come
  from advances in technology
• Opportunities exist in all sectors for greater
  efficiency of devices and systems
• Technical potential exists in all countries to
  reduce current energy demand significantly using
  off-the-shelf technology
• A more open international trading system will
  speed the transfer of these technologies among
  countries, and the pace of RD

11
Large Potential in Current and Emerging
Energy-Efficient Technologies

• Gaps between current practice and currently
  available best practice shows large potential for
  efficiency improvements
• Project to assess emerging industrial
  technologies by LBNL and ACEEE, funded by PGE,
  EPA, NYSERDA, NEEA, DOE, Iowa Energy Center
• Selected 50 key emerging industrial technologies
  that may provide continued large efficiency
  improvements in the future, out of a total
  inventory of 200
• Emerging technologies are currently under
  development, demonstration or, if commercial,
  occupy less than 5 of market potential

12
Emerging Energy-Efficient Industrial Technologies
N.B. This is intended only to indicate the range
of technologies to be investigated further, and
is not a final list of those that will be
included in the analysis.
13
Clean Energy Futures Study

• To produce fully documented scenarios assessing
  how energy efficient and clean energy
  technologies can address key energy and
  environmental challenges of the next century
  while enabling continued economic growth.
• The scenarios are driven by sets of public
  policies and programs that are designed to be
  credible, flexible, and low-cost mechanisms for
  fostering energy technology solutions, with an
  emphasis on climate change issues.
• Two policy scenarios reflecting increased levels
  of national levels of commitment to environmental
  goals
• Moderate scenario national commitment if costs
  can be low
• Advanced scenario nationwide urgency to meet
  goals
• Study is done by 5 national labs with wide review
  committees
• The study is expected to be released in December

14
Overview of Approach - Industry

• Comprehensive energy efficiency policy to address
• Barriers
• Diversity of industrial sector
• Voluntary Agreements used as umbrella policy
• Character of VAs vary by subsector and scenario
• Supported by package of additional policies
• Modeling of technologies and policies using NEMS
• NEMS is the national energy forecasting model
• modeling of policy implications

15
Voluntary Agreements - 1

• Contract between the government (or another
  regulating agency) and a private company,
  association of companies or other institution.
• The private partners may promise to attain
  certain energy efficiency improvement, emission
  reduction target, or at least try to do so.
• The government partner may promise to financially
  support this endeavour, or promise to refrain
  from other regulating activities.
• Great diversity among voluntary approaches,
  ranging from informal programs and
  self-commitment (e.g. individual companies) to
  highly structured approaches

16
Voluntary Agreements - 2

• To be successful, preliminary evaluation of
  Voluntary Agreements showed that
• VAs need to include a clear definition of
  convincing objectives and targets,
• VAs need to have broad coverage and
  participation,
• VAs need to have flexible and cost-effective
  procedures to implement the agreement for both
  industry and government,
• VAs need to include comprehensive monitoring, as
  well have independent third party evaluation

17
Supporting Policies

• Tax rebates (e.g. CCTI)
• Demonstration programs (e.g. NICE3)
• Audits (e.g. IAC-program)
• Challenge programs
• CHP programs
• Labeling programs (Energy Star)
• Waste management for increased recycling (Waste
  Wise)
• RD programs
• ESCO/utility programs (line charges)
• Clean Air Partnership fund/SIPs
• Cap and trade of CO2 emissions (Advanced scenario
  only)

18
Illustrative Policies and Programs

• Moderate Scenario
• Voluntary agreements
• Expanded Assessment Program
• Expanded Challenge programs
• CHP tax credit extended from 2003 to 2020
• Extend standards to all motors
• Clean Air Partnership Funding at currently
  proposed levels
• Line charges expanded to 30 states

• Advanced Scenario
• Same, at higher level
• More Centers and more assessments
• Coverage is extended and budgets are doubled
• Same, combined with other CHP stimulation
  measures
• Same, mandate national motor repair standard
• Extended Clean Air Partnership Funding
• Line charges expanded to 50 states

19
Industry - Policy Scenario Results

• Moderate
• Industrial energy use grows 0.4/year to 37.8
  Quads in 2020 (8 below baseline)
• Aggregate energy intensity falls by 1.5/year
  (compared to 1.1/year in baseline)
• Carbon emissions are 518 MtC in 2020 (10 below
  baseline)
• Reductions in energy demand in steel, paper and
  cement industries
• Light industries largest contributor to growth in
  energy use and emissions

• Advanced
• Industrial energy use reduced by 0.1/year to
  34.3 Quads in 2020 (16 below baseline)
• Aggregate energy intensity falls by 1.8/year
  (compared to 1.1/year in baseline)
• Carbon emissions are 408 MtC in 2020 (29 below
  baseline)
• Strong improvements in steel, paper and cement
  industries less in light industries
• Fuel mix shifts to low carbon fuels (natural gas,
  biomass)

20
Industry Results - Energy Use
21
Overall Results CEF Carbon Emissions
U.S. Carbon Emissions (Mt C)
22
Overall - Key Policies

• Residential Buildings
• efficiency Standards and voluntary programs
• other, space heating and cooling, water heating
• Commercial Buildings
• equipment standards and voluntary programs
• other and lighting
• Transport
• RD, voluntary fuel economy goals, pay-at-the
  pump insurance fees, and domestic cap and trade
  system
• TDI and fuel cell vehicles
• Electricity
• domestic cap and trade, restructuring, tax credit
  for renewables, and RD
• combined cycle, wind, nuclear re-licensing,
  biomass co-firing

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Other Impacts

• Overall
• Criteria pollutant emissions are reduced, and air
  quality is hence improved (only quantified for
  electricity sector)
• Both scenarios reduce U.S. petroleum consumption
  and hence, imports. This reduces wealth transfers
  and improves oil security
• Development of advanced energy technologies could
  expand the market share of U.S. companies in the
  vast global market for efficient and clean
  technologies
• Regional
• Reduced coal and oil consumption will have
  negative consequences for mining, refining and
  transport industries
• Wind and bio-energy would create new employment

24
Conclusions

• Industry is a large energy consuming sector in
  the U.S. and a large emitter of pollutants
• Many technologies are available to improve
  industrial energy efficiency and environmental
  performance, and more are under development.
• U.S. industry has considerable potential for
  energy efficiency improvement, in the short and
  long term
• Comprehensive energy efficiency, industrial and
  environmental policies, if well designed, are
  essential to improve the environmental and
  energy, as well as economic, performance of U.S.
  industry

25
Additional Slides

• With Technology Examples for
• Industrial Cogeneration (CHP)
• Cement Industry
• Buildings
• Transportation
• (not used in presentation)

26
Industrial CHP

• Combined Heat and Power (CHP) production or
  cogeneration has received a lot of renewed
  attention in the U.S. doubling CHP-capacity by
  2010
• CHP is traditionally used to generate heat
  (steam, hot water) and power. Modern forms
  include direct drives for compressors and
  preheating, and process applications
• Modern gas turbines achieve efficiencies of
  35-40
• The average efficiency of power generation in the
  U.S. has been around 32-33 for the past decades
• Studies estimate industrial CHP expansion by 2010
  at 30 GW
• Large amounts of energy can be saved through CHP,
  when compared to stand-alone power generation,
  reducing NOx, SO2 , PM and CO2 emissions

27
Industrial CHP Results - CEF-Study

• Installed CHP capacity will likely increase to 4
  GW by 2010 and 9 GW by 2020 in the baseline
  scenario
• In the moderate scenario CHP capacity will
  increase to 14 GW by 2010 and 40 GW by 2020,
  generating 98 TWh by 2010 and 278 TWh by 2020
• In the advanced scenario CHP capacity will
  increase to 29 GW by 2010 and 76 GW by 2020,
  generating 201 TWh by 2010 and 539 TWh by 2020.

28
Cement Industry

• 119 plants in 37 states, producing 90 million
  tons of cement
• Although the cement industry consumes only about
  2 of industrial energy, it emits about 5 of CO2
  emissions
• CO2 emissions are due to burning fuels and
  calcination of limestone
• Major environmental impacts are PM, criteria air
  pollutants, water use and emissions
• Cement is produced in two steps first clinker is
  made by burning limestone. Secondly, the clinker
  is mixed with additives to make cement (portland
  cement is 95 clinker)
• Clinker making is the energy intensive production
  step
• Energy efficiency opportunities can be found in
  using energy efficient equipment, or increasing
  the use of additives in cement

29
Pre-Calciner Kiln

• The U.S. has a very high share of the inefficient
  wet process kiln (26 of clinker production in
  1997)
• Pre-calciner kiln is an efficient dry process
  kiln with preheating of raw materials and
  pre-calcining limestone at low temperature
• Pre-calcination kiln saves 2.4 Mbtu/ton clinker,
  or 42
• High capital costs are a barrier to
  implementation
• Benefits include
• reduced NOx emissions
• reduced water use
• increased productivity
• increased fuel efficiency
• increase use of RDF as fuel

30
Blended Cement

• The U.S. cement industry produces mainly portland
  cement
• Portland cement contains 95 clinker, and clinker
  is responsible for the largest part of energy use
  and CO2
• In blended cement part of the clinker is replaced
  by waste materials (e.g. blast furnace slags,
  fly-ash).
• Potentially, up to 65 of the clinker can be
  replaced in specific cement types, saving up to
  45 on energy and CO2
• Almost all countries in the world produce blended
  cement as a way to reduce energy use and waste
  production
• Blended cement would use wastes from other
  industries like fly-ash, blast furnace slags and
  other pozzolanic materials

31
Future Potential Emerging Energy-Efficient
Building Technologies
Source Nadel, et al., 1998. Emerging
Energy-saving Technologies and Practices for the
Building Sector. Washington, D.C. ACEEE.
32
Future Potential Emerging Energy-Efficient
Transportation Technologies