# Presentation: 932285

## Industrial Energy Efficiency:The Strategic Solution

- Industrial Technologies
- Office of Energy Efficiency and Renewable Energy
- U.S. Department of Energy

**Notes:**
OIT is the principal DOE organization responsible for the development, validation, and dissemination of advanced, energy-efficient technologies and practices for U.S. industry.

OIT is located within the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.

## Newly Expanded Portfolio of Resources

**Notes:**
Fuel Cells: In January 2002, President Bush unveiled a partnership with the U.S. auto industry to develop fuel cell technology by 2010.  That’s the focus of our FreedomCAR and Vehicle Technologies program. (more rapid turnover than industrial machinery)
Buildings:  Our Buildings Technologies program is increasing building efficiency by improving the building envelope, electronic controls for whole building systems, and standards for the appliances (e.g., washers).
Wind and Hydropower: Renewables cut oil imports. Our Wind and Hydropower Technologies program is working with these industries and helping users take advantage of these clean, renewable energy sources. 
Geothermal:  If you’re located in the right place, you might be able to use geotherrmal energy for heat and power. Our Geothermal Technologies program can help.
Solar: Our Solar Energy Technology program is working with photovoltaics and technologies for improved use of solar heat and power. Great educational material. 
Combined Heat & Power: Distributed Energy and Electricity Reliability program is working on legislation, identifying best local strategies, and improving accessibility.
Biomass: Focus on power, fuel, and bioproducts. Black liquor gasification technology holds promise to make the forest products industry a net energy producer.
Hydrogen: Secretary Abraham (11/02) announced a new initiative toward a hydrogen-based economy.  Hydrogen, Fuel Cells, and Infrastructure program works with Vehicles on fuel cells and other key development needs.  
Other programs include Federal Energy Management (to improve EE in government—the single biggest energy user) and Weatherization and Intergovernmental program (easing the energy burden on economically disadvantaged); OIT can help you work with any program.

## Projected Energy Use

- Source: EIA projections

**Total U.S. Energy Production vs. Consumption,**** 2000-2020**

- 0

- 20

- 40

- 60

- 80

- 100

- 120

- 140

- 2000

- 2005

- 2010

- 2015

- 2020

- Quadrillion Btu per year

- Total U.S. Production

- Total U.S. Consumption

- Source: EIA projections

- CriticalGap

**Notes:**
Why are we concerned with energy?  The United States uses more energy than it produces, which has negative impacts on our economy and energy security.
The gap between our total energy use and production creates a trade deficit and adversely affects our economy.
We’d like to see the economy grow, and we believe that energy efficiency can help us get us there!

## Why Work with Industry?

**Notes:**
Industry is the largest energy-using sector, so it’s a good place to look for opportunities to save energy.

OIT works with industry to improve energy efficiency.
These improvements yield a range of benefits that improve a company’s bottom line (listed at lower left of slide).
At the aggregate levels, all these improvement help achieve National goals for the economy, the environment, and National security.

## Delivering Technology Solutions

**Partnerships**

**Collaborative R&D**

**Technology Delivery**

- Energy-intensive industries (IOF)
- Crosscutting Technologies
- Grand Challenges

- Assessments
- Training & Tools
- Technology Demonstrations

**Notes:**
OIT works through collaborative partnerships with industry to develop and deploy technologies and practices that promote energy efficiency.
To maximize effectiveness, we use a partnership approach (two-way partnership with industry, suppliers, universities, national labs, others). 
Collaborative R&D:  We invest about $100 million annually in collaborative, cost-shared partnerships that conduct R&D on promising technologies to meet the priority needs of industry.
Partners spread the costs and risks of R&D
Partnerships bring together expertise, experience, resources, and facilities  to accelerate the pace of technology advances. 
Technology Delivery:  To get today’s energy-efficient technologies and best energy management practices into use on the plant floor, we also conduct a range of outreach and partnership activities such as training, assessments, and demonstrations  (more on this later).
_______________________________________________________________
Each of the areas mentioned in this slide is further explained in the following slides.

## Industries of the Future

*Focus on energy-intensive industries...*

- EIA, 1998

*...**and cross-cutting   **       industries: *

- Sensors & Automation
- Advanced Materials
- Combustion
- Industrial Energy Systems

**Notes:**
OIT’s Industries of the Future strategy focuses on some of the most energy-intensive industries and supporting industries.
Energy-intensive industries are important to our economy:
Energy-intensive industries supply more than 90% of the materials used in our finished products.
Each job in our energy-intensive basic industries is estimated to generate 4 additional jobs in supporting industries and downstream economic activities.
OIT also supports R&D on technologies in wide use throughout industry—improvements in these cross-cutting technologies can yield large benefits throughout all industry.

## Grand Challenges Tackle Big Issues

- Address an important defined technical goal
- Focus on issues that are technically complex and lack previous solutions
- Involve high-risk, high-return R&D
- Require public-private partnerships
- Integrate smaller projects
- Promise large energy and environmental benefits

*Through an open, competitive solicitation process, OIT will award cost-shared funding to selected projects that*

**Notes:**
OIT awards cost-shared funding for big R&D projects that can make a real difference.  

A Grand Challenge is an important technical problem facing an industry or group of industries that, if solved, holds the potential to produce large improvements in energy efficiency, environmental performance, or product yield.
Grand Challenges entail high-risk, high-return R&D
Grand Challenges are awarded through a competitive solicitation process.
They may be specific to one industry or cross-cutting.

___________________________________________________________
Grand Challenges require public-private partnerships consisting of one or more companies, states, national labs, and/or universities.
Grand Challenges may incorporate many smaller projects, all integrated by a central project team.

## Technology Delivery

**Software Tools & Training**Training in practices and software to improve the energy performance of plant systems
**Industrial Assessment Centers**No-cost assessments provided to eligible **small & mid-size plants** by university-based teams
**Plant-wide Assessments**Up to $100K in EERE funds competitively awarded to **large plants** through an open solicitation process. Cost-shared funding pays for third-party analysis.

**Technology****Demonstrations**OIT solicits proposals to install and field-test emerging technologies.
**Replication**OIT works with plants and industry associations to replicate energy savings.

**Notes:**
OIT is more than R&D. We want to help industry apply energy-efficient practices and technologies today. 
We have some quick, low-budget ways your plant can identify opportunities for energy savings:
Free software tools for improving the energy efficiency of your motor, pump, steam, compressed air, and process heating systems
Training in the use of these tools is available through many of our partnerships
No-cost energy assessments are provided to eligible small and mid-size plans by our university-based Industrial Assessment Centers
Our Plant-wide Assessments require a substantial cost share, but these professional assessments often identify millions ($) in potential savings.
Some plants may find that a technology just emerging from R&D could solve some long-term problem at their facility. These plants can apply for cost-shared funding to demonstrate an emerging technology.
To make a real impact, we work with companies to replicate energy savings achieved at one plant to their other plants and across the industry. 

## Tools Available on Our Web Site or via Links

**Motor Master +****  ** Assists in energy-efficient motor selection and management.
**Pumping System Assessment****Tool**   Helps assess the efficiency of pumping system operations.
**Steam System Scoping Tool**   Profiles and grades large steam system operations and management to find opportunities.
**Steam System Assessment Tool**   Assesses potential benefits of specific steam system improvements.

**Air Master+**   Provides comprehensive information on assessing compressed air systems.
**3EPlus Insulation Assessment Tool**   Calculates most economical insulation thickness under various operating conditions.
**ASDMaster**   Helps determine the economic feasibility of adjustable speed drive applications.
**Process Heating Assessment and Survey Tool**   Models energy use and ways to improve performance.

**Notes:**
We now offer eight different software tools to help your plant identify savings opportunities and operate more efficiently.

OIT also offers a range of training opportunities for plant personnel, including:
Basic introductions to specific plant systems (pumps, motors, etc.)
How and when to apply the various software tools.
Training courses can be arranged through our Regional Offices.

___________________________________________________________
Web site and regional office contact info provided later in this presentation

## Industrial Assessment Centers (IACs)

- ~240 students in training each year
- Average savings per assessment inFY 2001:  $72,426

- Nearly $2 billion in energy savings
- $1.1 billion in waste and productivity savings
- 467 trillion Btus saved

**Cumulative Program Benefits: 1977-2001**

- Teams of engineering faculty and students from 26 university-based IACs around the country conduct no-cost, on-site industrial assessments at eligible facilities.

**Notes:**
Remember that we offer two types of Assessments. The IACs target small and mid-size plants and attract students to the energy engineering field.
Engineering students and faculty pay a 1-2 day visit to the plant to analyze operations, then recommend opportunities to save energy, increase productivity, and prevent pollution.
Many recommendations involve no-cost or low-cost actions.
Check out the IAC database on the Web. By identifying plants similar to yours, you can see the types of efficiency and productivity improvements most often recommended.   www.oit.doe.gov/iac 
IAC students gain hands-on experience in auditing industrial operations and processes—experience that can jump-start their engineering careers. 
________________________________________________________________
750 assessment days of service to be provided to manufacturers in FY 2003
Assessments are confidential and plants are under no obligation to act on the recommendations—yet many facilities realize attractive returns.

## Plant-wide Assessments (PWAs)

- Anchor Glass Container

- MetLab

- Utica Corporation

- Weyerhaeuser

- $3,459,000.

- $1,638,000.

- $518,000.

- $1,880,000.

- $3,100,000.

- Akzo Nobel

- $1,170,000.

- Bayer

- $1,478,000.

- Corning

- $25,920,000.

- Appleton Paper

- Inland

- $9,500,000.

- Caraustar

- $1,280,000.

- Boise Cascade

- $707,000.

- AMCAST

- $3,600,000.

- Alcoa

- $1,072,000.

- Neville Chemical

- $75,000.

- Rohm & Haas

- $1,090,000.

- 3M

- $1,094,000.

- WR Grace

- $840,000.

- Ford

- $3,280,000.

- Georgia Pacific

- $5,000,000.

**Annual Savings****Opportunities Identified**

**Notes:**
Plant-wide Assessments are for larger plants. They involve cost-sharing and full-fledged professional assessments that yield substantial savings.
EERE awards up to $100K to plants selected through a competitive solicitation process.
The plant selects the third-party assessment team.
Summary reports are published to promote replication of savings. Although this program has only been in place a few years, some plants are already seeing measurable results.
________________________________________________________________
Proprietary information is fully protected.
Note that this slide shows the values of potential savings based on opportunities identified.

## Technology Demonstrations 

- Mitigate risks associated with first use of technologies
- Provide verified performance data to ease hurdle of new technology acceptance
- Document realized savings

- OIT solicits proposals from industrial companies interested in demonstrating an emerging technology that promotesenergy efficiency.
- Requires matching private cost-share in cash or in kind
- Time frame: up to 3 years

***Results***

**Notes:**
To help emerging technologies gain acceptance in industrial applications, OIT provides cost-shared funding for demonstrations. 
Applicants are encouraged to propose teaming arrangement to include technology developers and a commercialization partner
Verification and validation studies are carried out for all demonstrations of emerging technologies.
_________________________________________________________
Preference is given to technologies developed under IOF partnerships
Award of funding does not imply government commitment to follow-on activities.
The last solicitation offered up to $600,000 per award.

## Replicating Savings

**Notes:**
The key to really making a difference is replication.

To ratchet up impacts from a single plant, we help large companies develop corporate replication plans. 
If you can’t be in that little yellow circle next time, make sure your company gets in that big blue one; be among the first to realize the savings and become a leader in energy efficiency for your industry.
Respond to our Plant-wide Assessment solicitation, attend a showcase, get involved!
__________________________________________________________
To extend benefits across the industry, we’re developing case studies and working with trade associations to promote the findings.
 Example:   Alcoa was enthusiastic about results from its plant-wide assessment in Lafayette, IN.  The company is now conducting internal energy assessments at 10 more plants over the next year. The first of these internal assessments identified an estimated $7 million a year in potential energy savings.

## Gateways to EERE Technologies

- Energy Efficiency & Renewable Energy

**EERE Allied Partnerships**

**EERE Showcases**

**State Partnerships**

**Notes:**
You have many ways to gain access to our technologies and services at the local level.
To expand industry’s accessibility to our products and services, we have formed Allied Partnerships with a number of organizations that have existing ties to industrial companies. 
EERE has also begun to establish much closer working relationships with State organizations pursuing energy technology RD&D.  Many states have established their own IOF programs to achieve local benefits.
Finally, to give industry an opportunity to see the latest energy efficiency technologies and practices in action, we periodically conduct technology showcases geared to specific industries.

## EERE Allied Partners:

- Enrich existing services to industrial plants by delivering EERE tools, training, information, technologies, and other opportunities for energy savings.
- Expand industry’s access to EERE products and services.
- Work with EERE to develop casestudies, training seminars, softwaretools, conference sessions, etc.

**Notes:**
Our Allied Partners further expand our accessibility to industry.

Over 50 active EERE Allied Partners provide industry with opportunities to participate in showcases, training, state partnerships, R&D, technology demonstrations, commercialization activities, plant assessments, etc. 
Individually negotiated agreements are tailored to the interests and strengths of each partner
Allied Partners may include any organization that can help deliver EERE products, services, and programs in a professional manner:
Private companies
Industrial or professional associations
Non-government organizations
Utilities
Equipment producers and suppliers
Universities

## Serve as an information pipeline between EERE and industry
Provide access to emerging EERE technologies and practices
Help industries tap into National Labs and other Federal R&D resources
Build alliances among key industries in the state 
Work with Regional Offices to address industry needs

- Serve as an information pipeline between EERE and industry
- Provide access to emerging EERE technologies and practices
- Help industries tap into National Labs and other Federal R&D resources
- Build alliances among key industries in the state
- Work with Regional Offices to address industry needs

- State Partnerships

**Notes:**
Participation in EERE State Partnerships enhances access to a wide range of energy-efficient and renewable energy technologies.

Participation also provides ready access to other information and tools--not to mention technology showcases (more on those in a minute).
Networking through EERE State Partnerships fosters the formation of valuable new alliances.
The information pipeline has a two-way flow:
State issues flow through regional offices to inform EERE HQ
At the same time, EERE products and services are made available to address state needs 

## EERE Showcases

- Public events to highlight the benefits of energy efficiency and renewable energy technologies and practices. Goal: Replicate savings.

- Plant tours featuring*** advanced technology demonstrations*** under real-use conditions
- Results of ***plant-wide energy and productivity assessments***
***Presentations*** on emerging technologies and best practices

**Host Benefits**
- Access to emerging technology, tools, and assistance
- Energy and productivity savings
- Community recognition

*Elements may include:*

**Notes:**
Showcases now provide access to a broader range of technologies (all EERE) and partnership opportunities.

Our showcases highlight best practices and energy-efficient as well as renewable energy technologies for specific industries. 
Showcases are a great opportunity to see the latest techniques and technologies in action.
Host plants are pleased with the savings they have found through the assessments and in preparing for the showcases. 

The director of operations for one of the steel companies hosting the Pittsburgh Showcase remarked:
“The expertise that OIT brings is invaluable. They helped us pinpoint projects with a short payback that we might otherwise have overlooked. It’s a good partnership.”  -- Howard Snyder, Technical Director of Operations, Weirton Steel

## How to Access the Program

- David Godfrey
- 404-562-0568
- _Boston _
- Scott Hutchins
- 617-565-9765

- _Chicago_
- Brian Olsen
- 312-886-8579
- _Denver _
- Jack Jenkins
- 303-275-4824
- Sandy Glatt
- 303 275-4857

- _Seattle _
- Chris Cockrill
-  816-873-3299

- _Philadelphia _
- Joe Barrett
- 215-656-6957

**Regional Offices**

**EERE Clearinghouse**

**800-DOE-3732**

**Visit our Web site:**** www.oit.doe.gov**

**Notes:**
EERE's six regional offices are the regional liaisons for EERE programs.

Our six regional offices are a key access point for all that OIT and EERE have to offer.
Take advantage of this resource.  The regional offices have close relationships with state and local government agencies, regional industries, and other stakeholders to promote the adoption of EERE technologies. 
They provide project management and technology deployment. 
Stay in touch with your Regional Office to find out what projects are underway in your region and what new opportunities are coming to your area (training, showcases, etc)

## Resources & Information

- Fact Sheets
- Newsletters
- Tip Sheets
- Brochures
- Reports
- SoftwareDecision Tools
- Data

**Clearinghouse**

**Notes:**
Message:  The OIT Clearinghouse provides a single point of contact for inquiries, tools, publications, and other information.

Technical assistance: experts in a variety of industrial plant systems are available to answer questions on optimal matching and integration of plant system components

## Visit Our Web Sites:

- www.oit.doe.gov

- www.eere.energy.gov

**Notes:**
Copy down this web address.  This is a goldmine of information.

Click on Best Practices for tip sheets, case studies, training opportunities, software tools, and databases that can help your plant save energy right now.
Go to one of our specific energy-intensive industry pages for information on solicitations, R&D partnering opportunities, emerging technologies, and publications particular to the industry.
You’ll also want to check out our enabling technology pages for the latest in combustion, advanced materials, and sensors and controls.
This is an information-rich site. Most folks who visit find themselves going back again and again.