Energy Matters

U.S. Department of Energy, Industrial Technologies Program

Fall 2009 - Vol. 1, Iss. 1

Success in Industry 

Frito Lay 10

Mesabi Nugget 10

States & Utilities Corner

Incentives In Your State 11

Activities In Your State 12

Tools of the Trade

INDEED 12 

Research & Development

Nanotechnology 14

Markets & Trends

Industry Trends 16

Ask the Energy Expert

Boiler Combustion Control 19

International 22

Funding Resources 22

Look for Us... 22

Program Contacts 22

Also in This Issue

Metalcasting Solutions for Warfighter Readiness

by Dean Hutchins, Defense Logistics Agency, and Thornton White, Advanced Technology Institute 

Metalcastings are integral to the readiness and performance of every Department of 

Defense (DOD) weapons system. Because many of the weapons systems currently in 

place were introduced into service many years ago, the Defense Logistics...

READ MORE, PAGE 6

Waxman-Markey Calls for Innovative

Industry Solutions

On June 26, 2009, the U.S. House of Representatives passed H.R. 2454, otherwise 

known as the American Clean Energy and Security Act of 2009 or the Waxman-Markey 

bill. Although significant changes could be made to H.R. 2454 before it...

READ MORE, PAGE 7

Answering the Call

The Industrial Technologies Program (ITP) of the U.S. Department of Energy (DOE) 

not only leads the national effort to transform U.S. industrial energy use, but also stands 

poised to answer the call to action set forth by the American Recovery and....

ITP Invites Companies to Save Energy Now

Several years ago, Congress called upon the U.S. Department of Energy (DOE) to 

help lead the nation toward a clean-energy future by promoting greater strides toward 

industrial energy efficiency. The trick, however, was to design an approach that...

READ MORE, PAGE 4

Features

READ MORE, PAGE 2
ENERGY MATTERS / FALL 2009

2

Several years ago, Congress called upon the U.S. Department of Energy (DOE) to help lead the nation toward a cleanenergy future by promoting greater strides toward industrial 

energy efficiency. The trick, however, was to design an approach 

that would emphasize both the need for and the value of 

better energy management while still encouraging increased 

productivity. The solution put forward under section 106 of 

the Energy Policy Act of 2005 (Pub. L. No. 109-58, 42 U.S.C. 

§15811) was to give the Secretary of Energy the directive to 

reduce industrial energy intensity (energy consumed per unit 

of production) by 2.5 percent between 2007 and 2016 through 

voluntary agreements. DOE’s Industrial Technologies Program 

(ITP) embraced this charge and ran with it, setting a goal to 

reduce industrial energy intensity 25 percent over the next 10 

years (25 in 10).

Recognizing that the most effective way to achieve that goal 

would be through the establishment and enhancement of strategic 

partnerships, ITP is now partnering with industry, utilities, states, 

universities, and other stakeholders in the newly launched Save 

Energy Now LEADER initiative—a new component of the 

existing and successful Save Energy Now program. Through the 

basic Save Energy Now program, companies nationwide have 

partnered with DOE to participate in no-cost energy assessments 

and use ITP tools and training to reduce their energy use and 

lower their operating costs. Over 2,000 plants received energy 

assessments under the Save Energy Now program from 2006 

to 2009.1 Those assessments yielded $1.3 billion in identified 

cost savings,2 119 trillion Btu (natural gas) in identified energy 

savings,3 and 11.2 million metric tons of identified CO2 savings.4

ITP Invites Companies to Save Energy Now

Moving ahead, the Save Energy Now LEADER initiative 

provides an opportunity for forward-thinking companies to make 

a voluntary commitment to achieve an aggressive 25-percent 

reduction in energy intensity over 10 years in exchange for 

priority access to a range of DOE services, including technical 

assistance, identification of financial incentives, and the provision 

of high-level public recognition. Participating companies are 

asked to sign a Save Energy Now LEADER Pledge to mark the 

voluntary commitment. 

Russ Wanke (Vice President and General Manager, Thilmany 

Papers) pledges to be a Save Energy Now LEADER.

Features

 

Midwest Industrial Energy Efficiency Exchange

On September 9–10, Midwest industrial manufacturers with energy 

efficiency projects joined companies with the resources needed to 

implement those projects in Detroit, Michigan, to participate in the 

Midwest Industrial Energy Efficiency Exchange. The Midwest Exchange 

demonstrated the importance of partnerships on lowering industrial 

energy intensity in the region.

On September 9, participants heard welcoming remarks from Michigan 

Governor Jennifer M. Granholm, who discussed the importance 

of industry in the region. Next, 35 companies received awards for 

reducing their energy consumption by more than 15 percent (Energy 

Champions) and 7.5 percent (Energy Savers) after participating in an 

Energy Savings Assessment. Participants also took part in technology 

demonstrations from Apogee Technology Inc., Argonne National 

Laboratory, Caterpillar, Cummins, Energy Industries of Ohio, Gas 

Technology Institute, Oak Ridge National Laboratory, OG Technologies, 

Swagelok, and Waukesha. 

The next day, industry participants learned of the technical and 

financial assistance available at local, regional, and national levels, 

including DOE’s Loan Guarantee Program. They also heard from 

industrial participants who have achieved cost- and energy-savings, as 

well as industry executives who have made energy efficiency a priority. 

The crux of the morning sessions was the Save Energy Now LEADER 

Pledge signing event, which included 11 industrial manufacturers from 

the Midwest. The afternoon brought about a session where panelists 

discussed how partnering with other companies, such as ITP or Focus 

on Energy, has helped them make energy-efficiency improvements in 

their plants and achieve actual energy- and cost-savings. At the same 

time, industrial manufacturers met with resource providers to gauge 

how they could work together to improve the energy efficiency of their 

facilities. Results will be tracked to calculate how many Btus were saved 

as a direct result of the Midwest Exchange. Data will be released in a 

later report.
ENERGY MATTERS / FALL 2009

3

Industry leaders from across the Midwest region attended the Midwest Industrial Energy Efficiency Exchange.

The Save Energy Now LEADER program is now up and running 

with 11 companies5 having already committed by signing the 

Pledge at the Midwest Industrial Energy Efficiency Exchange 

in Detroit, Michigan (see box on previous page), with more 

companies continuing to sign on as the program moves forward. 

Demonstrating the positive potential impact of the program, a 

25-percent reduction in energy for the 11 businesses that signed 

up at the Midwest Exchange alone could lead to approximately 

$3.58 billion in cost savings6 and the retention of over 46,000 

jobs.7

The commitments made by Save Energy Now LEADER 

Companies will also help to advance progress toward goals 

established in the American Recovery and Reinvestment Act

of 2009 by stimulating manufacturing facilities to undertake 

energy-management projects that reduce energy expenses 

and free up capital for reinvestment to help create jobs. These 

same commitments also establish a corporate culture of energy 

efficiency, yielding cost savings through energy-use reductions, 

as well as corresponding reductions in carbon emissions. The cost 

savings translate into job retention, job creation, and increased 

financial stability for the industrial manufacturing sector—a 

sector of the economy that has been a mainstay employer for 

many middle-income Americans. 

Interested companies can find more information at the Save 

Energy Now LEADER Web site, http://www.eere.energy.gov/

industry/saveenergynow/leader.html, or can e-mail the program at 

SaveEnergyNow@ee.doe.gov. 

Endnotes

1

U.S. Department of Energy, Energy Efficiency & Renewable Energy, Save Energy 

Now results page, September 16, 2009 update, Source: http://apps1.eere.energy.gov/

industry/saveenergynow/partners/results.cfm

2

U.S. Department of Energy, Energy Efficiency & Renewable Energy, Save Energy 

Now results page, September 16, 2009 update, Source: http://apps1.eere.energy.gov/

industry/saveenergynow/partners/results.cfm

3

U.S. Department of Energy, Energy Efficiency & Renewable Energy, Save Energy 

Now results page, September 16, 2009 update, Source: http://apps1.eere.energy.gov/

industry/saveenergynow/partners/results.cfm

4

U.S. Department of Energy, Energy Efficiency & Renewable Energy, Save Energy 

Now results page, September 16, 2009 update, Source: http://apps1.eere.energy.gov/

industry/saveenergynow/partners/results.cfm

5

Companies that signed the Save Energy Now LEADER Pledge at the Midwest 

Industrial Energy Efficiency Exchange on September 10, 2009 in Detroit, Michigan 

are 3M (St. Paul, MN), Briggs & Stratton (Wauwatosa, WI), Didion Milling (Johnson 

Creek, WI), The Dow Chemical Company (Midland, MI), Flambeau River Papers (Park 

Falls, WI), Manitowoc Grey Iron Foundry (Manitowoc, WI), Owens Corning (Toledo, 

OH), Quad/Graphics, Incorporated (Sussex, WI), Thilmany Papers (Kaukana, WI), 

Neenah Foundry (Neenah, WI), and ThyssenKrupp Waupaca (Waupaca, WI).

6

Energy cost data is gathered directly from the businesses in question when possible. 

When not possible, that data is calculated by determining annual energy consumption 

and then extrapolating this energy consumption into an energy cost figure using data 

from the Energy Information Administration (EIA). Energy cost savings are then 

calculated by multiplying total annual energy consumption by 25 percent.

7

Estimating job retention is done by dividing the value of energy savings by the cost to 

employ one employee within that industry. This is represented by the following: [Jobs 

Created or Retained = Energy Cost Reduction / Annual Cost of One Employee] The 

cost of implementing the energy conservation measures is not included because it is not 

always clear as to who will provide the funding and what other businesses received the 

benefits of the energy conservation.
ENERGY MATTERS / FALL 2009

4

The Industrial Technologies Program (ITP) of the U.S. 

Department of Energy (DOE) not 

only leads the national effort to 

transform U.S. industrial energy 

use, but also stands poised to 

answer the call to action set forth 

by the American Recovery and 

Reinvestment Act of 2009 (ARRA). 

ITP focuses on job creation, the 

advancement and training of 

our current workforce, and the 

development of America’s future 

industrial workforce. 

In support of ARRA, ITP is not 

only assisting industry to overcome 

many of the barriers it often faces 

when considering energy-efficient 

improvements, such as capital costs 

and payback period, but is also encouraging industry to create 

green-collar jobs. ITP has released approximately $156 billion in 

ARRA funds; because of this, industry has been able to apply for 

projects that seek to deploy energy-efficient technologies in areas 

of combined heat and power (or cogeneration), district energy, 

waste-energy recovery, and efficient industrial equipment. 

Chosen applicants were required to identify the number of new 

jobs that were created (both directly and indirectly) in relation 

to Year One of the project, as well as the number of long-term 

jobs that would result from the project. The net effect of these 

projects will increase U.S. national energy security, provide 

near-term job opportunities in the manufacturing and construction 

industries, and provide long-term job opportunities for those 

responsible for the operation and maintenance of the new 

technologies. 

Training 

Infrastructure

ITP already has the necessary training and professional 

development infrastructure in place to address the widely 

heralded creation of green-collar jobs. This infrastructure 

positively impacts the education of the country’s current and 

future workforce. One example is demonstrated through the 

program’s Industrial Assessment Centers (IACs).

Answering the Call

ARRA Spurs Job Creation across Industry

As part of the program’s Save Energy Now Initiative, IACs 

utilize engineering faculty and university students to provide 

free-of-cost energy, waste, and productivity assessments for 

small- to medium-sized manufacturers across the country.

This program has the added benefit of exposing and training 

graduate and undergraduate students in industrial assessment 

and energy system management techniques and often results 

in IAC graduates pursuing careers related to energy efficiency.

Table 3 details the number of IAC students who participated in 

and departed the program from fiscal year 2004 through 2008. 

Figure 1 illustrates the various fields that graduates entered after 

departing the program.

 These assessments serve as an example of how investments 

made in energy efficiency are creating a new class of green jobs, 

in addition to reducing industrial energy intensity and lowering 

carbon emissions.

How to Get Involved

ITP offers system-wide and component-specific training and 

education programs on corporate energy management, plant 

management, and technical activities to help enable U.S. industry 

to run its facilities more efficiently. ITP-sponsored training is 

offered throughout the year and around the country. 

ITP releases approximately $156B in ARRA funds, providing growth 

and enhancement potential to industry’s workforce
ENERGY MATTERS / FALL 2009

5

Sources

“Recovery Act: Deployment of Combined Heat and Power (CHP) Systems, District Energy Systems, Waste Energy Recovery Systems, and Efficient Industrial Equipment.” This 

document describes DOE funding announcement “ Recovery Act: Deployment of Combined Heat and Power (CHP) Systems, District Energy Systems, Waste Energy Recovery 

Systems, and Efficient Industrial Equipment DE-FOA-0000044.” http://www1.eere.energy.gov/industry/pdfs/de-foa-00000044_chp.pdf.

IAC Forum. http://www.iacforum.org/iac/metrics.jsp.

 Consulting 

 Manufacturing 

 Energy 

 Design and construction 

 Other 

 Electric power 

 Government 

 Research and development 

 Academia

22%

17%

16%

12%

12% 

8%

6%

5% 3%

Figure 1. Professional Affiliation of Students with Jobs 

or Job Offers upon Departure 

Table 1. Assessments Completed and Program Participation by Fiscal Year 

Number of 

Assessments 

Completed

Participating 

Students

FY 2004 76 423

FY 2005 60 403

FY 2006 75 339

FY 2007 60 296

FY 2008 64 255

FY 2009 

(to date) 59 224

Source: IAC Forum. http://www.iacforum.org/iac/metrics.jsp.
ENERGY MATTERS / FALL 2009

6

Metalcasting Solutions for Warfighter Readiness

Contributed by Dean Hutchins, Program Manager, Defense Logistics Agency, 

and Thornton White, American Metalcasting Consortium Program Manager, 

Advanced Technology Institute

Metalcastings are integral to the readiness and performance of every Department of Defense (DOD) weapon system. 

Because many of the weapons systems currently in place were 

introduced into service many years ago, the Defense Logistics 

Agency (DLA) and its supply centers have been facing numerous 

challenges in procuring castings to support the aging—yet 

capable and widely-used—military systems. Contributing factors 

such as old technical data, broken supply chains, the inability 

to know whether an assembly contained a casting, diminishing 

sources, procurement in small lots, and lost tooling have resulted 

in long production lead times, high costs, and poor quality, 

affecting the Defense Supply Centers’ ability to effectively 

procure cast repair parts for fielded weapon systems. 

The American Metalcasting Consortium (AMC) proposed 

solutions to DLA that included developing and applying 

innovative technologies and new processes for the procurement, 

manufacture, and design of castings. Implementing these 

proposed solutions would enable DLA to provide rapid support of 

cast spare parts to the armed forces. AMC’s strategic direction is 

to ensure a reliable casting supply chain that will rapidly provide 

high-quality, cost-effective cast parts to DLA for aging weapon 

systems. 

AMC and its participating industry, government, and academic 

partners represent every facet of the casting procurement supply 

chain. AMC combines the best and brightest minds from the 

metalcasting industry, its technical associations, and leading 

metalcasting research universities to support DLA’s objectives of 

procuring cost-effective spare parts on time and with increased 

reliability. 

Government

DLA supplies America’s military services with the critical 

resources needed to accomplish their mission. They manage the 

AMC partnership effort among the supply centers, selected DOD 

sites, industry, and research universities to ensure best-value 

solutions in cast replacement parts for America’s warfighter.

Industry

The four leading metalcasting industry associations—the 

American Foundry Society, North American Die Casting 

Association, Non-Ferrous Founders’ Society, and Steel Founders’ 

Society of America—and their member foundries strengthen 

the casting supply chain by ensuring that AMC research is 

relevant and that the resulting technology breakthroughs are 

quickly implemented industrywide. A team of casting engineers 

is providing direct technical and procurement support to DLA’s 

supply centers. The Advanced Technology Institute, a recognized 

leader in applied research and commercialization, provides 

program management of AMC.
ENERGY MATTERS / FALL 2009

7

Universities

America’s premier metalcasting research universities are 

developing new technologies that will produce high-quality, costeffective metalcastings while reducing the overall administrative 

and procurement lead times for replacement parts in older 

weapons, as well as new parts for developing weapon systems.

AMC’s Castings for Improved Readiness Program is sponsored by the Defense 

Logistics Agency, Ft. Belvoir, Virginia.

AMC’s Castings for Improved Defense Readiness Program is sponsored by 

the Armaments Research and Development Engineering Center, Picatinny, New 

Jersey, and by Benet Laboratories, Watervliet, New York.

For more information, contact Thornton White, AMC Program Manager, at 

whitet@aticorp.org.

• Improved Casting-Procurement Processes: Implemented 

at DLA’s Defense Supply Centers, these improved castingprocurement processes eliminate the need for unnecessary 

engineering support requests

• Linking Solicitations to Existing Tooling and Capable 

Foundries: Reduces costs by an average of 13% and lead times 

by an average of 12 weeks from the previous procurement

• Digital Reference Image Standards for Aluminum and Steel 

Castings: Reduces inspection costs and times by up to 50%

• Rapid Tooling Technology: Reduces tooling manufacturing 

time by up to 75%, in addition to outperforming traditional 

tooling by 500% 

• Modeling and Simulation: Improves performance and 

reduces weight time (up to 30%) and design time (up to 75%) 

• Casting Conversions: Designed for performance and 

production improvements 

• High-Performance Cast Steels: Cost-effective replacement 

of titanium

• New Heat-Treatment Processes and Materials for Steel 

Welds: Improves corrosion resistance by more than 80% 

• Continuous One-Step Process for Metal Matrix 

Composites: Reduces weight and improves wear resistance 

and ballistic performance.

Highlights of AMC’s Research Efforts

Waxman-Markey Calls for Innovative

Industry Solutions

On June 26, 2009, the U.S. House of Representatives passed H.R. 2454, otherwise known as the American Clean Energy 

and Security Act of 2009 or the Waxman-Markey bill. Although 

significant changes could be made to H.R. 2454 before it clears 

the Senate and becomes law, the current version of the bill will 

significantly impact industrial sectors across the United States. 

Title III of the bill, designated “Reducing Global Warming 

Pollution,” will likely have the greatest influence in shifting the 

industrial sector’s behavior away from “business as usual.” 

Emissions Regulations and Targets

Title III will compel heavy emitters of greenhouse gasses (GHGs) 

to reduce their emissions. The list of regulated GHGs include 

carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), 

hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur 

hexafluoride (SF6), and nitrogen trifluoride (NF3). The bill will 

directly regulate electricity generators, natural gas distribution 

companies, petroleum producers and importers, large industrial 

businesses (defined as those that qualify for an ITP EnergySaving Assessment by consuming more than 300 billion Btu 

annually; e.g., chemical manufacturers, aluminum smelters, 

carpet and flooring manufacturers, small engine manufacturers, 

and paper mills) with high emissions (more than 25,000 metric 

tons per year—equivalent to the annual emissions from the 

energy consumed in 12,000 homes), and other specific GHG 

emitters. 

Emissions regulations will be facilitated through a cap-and-trade 

system. The cap-and-trade model provides the total pool of GHG 

emitters with a set number of credits that corresponds to a certain 

level of emissions. These credits will be divided among the GHG 

emitters and are to be used to cover any GHG emissions.

GHG emitters who are able to cost-effectively reduce their 

emissions, leaving them with extra credits remaining after 
ENERGY MATTERS / FALL 2009

8

covering all of their own emissions, will be permitted to sell 

those extra credits to emitters who were not able to costeffectively reduce their own GHG emissions and do not have 

enough credits. There will be a regulated market for these credits 

that will set the price. GHG emitters who do not have enough 

credits to cover their emissions will be fined for emissions over 

the credits possessed. H.R. 2454 seeks to cut national GHG 

emissions through cap-and-trade to 3 percent below 2005 levels 

in 2012 and 83 percent below 2005 levels in 2050.

Industrial Sector 

Allowances

Of the listed GHGs, CO2, an 

emissions byproduct of burning 

fossil fuels, will be the most costly to 

the industrial sector due to the high 

levels of energy consumption by 

many industrial businesses. The vast 

majority of industrial businesses, 

however, will not be directly 

regulated. They will instead feel the 

impact of the bill as CO2-emissionsregulated energy suppliers pass the 

cost of regulation through to their 

industrial customers.

Due to the large impact of H.R. 

2454 on industrial businesses, 

Congress built in a relief valve to 

help the businesses that would be 

disproportionately hampered by this 

bill. Crucial energy-intensive and 

trade-exposed businesses will be 

given emissions allowances that will 

help them stay in business during the 

near-term and provide them with the time needed to update their 

processes and technologies in order to better cope with GHG 

regulation. Allowances will be given to businesses within eligible 

industries based on the amount of goods they produce. These 

allowances can be sold on the GHG emissions market to cover 

the cost of higher-priced energy and energy-efficiency upgrades.

One of the most important goals of providing the allowances is to 

prevent carbon leakage, thus protecting U.S. businesses and jobs 

from being taken by foreign countries. Carbon leakage occurs 

when carbon regulations in one region force energy-intensive 

businesses to move to other regions where there are fewer or no 

carbon regulations. In addition to forcing businesses from the 

region, carbon leakage does not reduce global carbon emissions 

because the same level of emissions is resulting from the 

businesses’ new locations. Although protecting U.S. businesses 

and jobs from being forced out of the country is an important 

goal of providing allowances to energy- and trade-intensive 

industries, other aims of providing allowances include helping 

businesses innovate to reduce energy consumption and invest in 

energy-efficient technologies.

Providing Allowances

Allowances will be provided to businesses within industrial 

sectors, given the sector in 

which they belong meets certain 

eligibility criteria regarding energy 

intensity, GHG intensity, and trade 

intensity. An industry is eligible 

for allowances if it is proven to be 

energy- or GHG-intensive and trade 

intensive. The standard energyand GHG-intensity threshold for 

allowances is 5 percent, while the 

threshold for trade intensity is 15 

percent. Additionally, an industry 

can also qualify for allowances if 

it has either an energy- or GHGintensity over 20 percent. See box 

(left) for information on calculating 

energy, GHG, and trade intensities.

Table 1 displays information on 

various industries—specifically, 

their energy intensity, trade 

intensity, and whether or not they 

were eligible for rebate—based 

upon data from 2007. GHG 

intensities are not included in this 

table because of insufficient data.

A list of all eligible industries will be provided to industry no 

later than June 30, 2011. Additionally, subindustries within 

ineligible industries will have a chance to prove that they are 

eligible for allowances. Updates to the list will first occur by 

February 2013 and then once every four years thereafter. As 

industries become more or less energy-, GHG-, and tradeintensive, they will be added or removed from the list.

To ensure that industries do not simply maintain their status quo 

operations in order to remain eligible, the benefits of being on the 

list begin to decline in 2026. For instance, in 2026, industries will 

be allocated 90 percent of previous allowances. Each subsequent 

year, the allocation drops by 10 percent until it bottoms out in 

Determining Allowance Eligibility

For an industrial sector to be eligible for 

emissions allowances it must pass either the 

standard energy-intensity or GHG-intensity test, 

as well as the trade-intensity test.

 Standard Energy-Intensity Test:

Energy Expenditures / Value of Product 

Shipments ≥ 5%

 Standard GHG-Intensity Test:

20 x Tons of CO2-equalivent GHG / Value of 

Product Shipments ≥ 5%

 Trade-Intensity Test:

(Value of Imports + Value of Exports) / (Value of 

Imports + Value of Product Shipments) ≥ 15%

For highly energy- or GHG-intensive industries, industrial 

sectors can also qualify for eligibility if either their energyor GHG-intensity is greater than 20 percent, regardless of 

their trade intensity. 
ENERGY MATTERS / FALL 2009

9

Table 1. Allowance Eligibility, by Industry

Industry Energy Intensity Trade Intensity Eligible for 

Rebate

Breakfast Cereal Manufacturing 2% 12% No

Sawmills 3% 32% No

Plastic Bottle Manufacturing 4% 10% No

Glass Container Manufacturing 14% 20% Yes

Iron and Steel Mills 6% 32% Yes

Primary Aluminum Production 20% 62% Yes

Iron Foundries 6% 15% Yes

Electronic Computer Manufacturing 0% 57% No

Automobile Manufacturing 0% 78% No

Aircraft Manufacturing 0% 67% No

Sources: U.S. Census Bureau, 2007 Economic Census (July 2009), www.census.gov/econ/census07/; U.S. International 

Trade Commission, DataWeb, (April 2009), http://dataweb.usitc.gov/; and Library of Congress, H.R. 2454: American Clean 

Energy and Security Act of 2009 (Engrossed as Agreed to or Passed by House; June 2009), www.thomas.gov.

2035. This structure allows businesses the time to improve their 

energy efficiency and trade vulnerability and to reduce their GHG 

emissions before fully feeling the impact of legislation.

Moving Ahead

The next step in the process is for the Senate to hold a hearing 

for H.R. 2454. On July 7, 2009, the bill was placed on the Senate 

General Orders calendar as Order Number 97. The final impact 

on the industrial sector depends on whether or not the Senate 

passes the bill, and what changes are made to H.R. 2454 if it 

passes. At this point, the outcome is only up to speculation.

If the bill does pass and looks similar to what was approved by 

the House of Representatives, there will certainly be significant 

changes ahead for all U.S. citizens in regard to how energy is 

produced and consumed. The U.S. industrial sector will also be 

required to change its operations practices and move toward more 

efficient uses of energy to stay competitive both domestically and 

globally. In the near-term, allowances will be made for energyintensive industries; in the long-term, however, all industries 

will have to innovate and develop novel solutions to energyconsumption challenges.

Sources

Library of Congress, H.R. 2454: American Clean Energy and Security Act of 2009 

(Engrossed as Agreed to or Passed by House), June 2009. www.thomas.gov

Pew Center on Global Climate Change, At a Glance: American Clean Energy and 

Security Act of 2009, July 2009. www.pewclimate.org/docUploads/Waxman-Markeyshort-summary-revised-June26.pdf.

Pew Center on Global Climate Change, Distribution of Allowances under the ACES 

Act, August 2009. www.pewclimate.org/docUploads/policy-memo-allowancedistribution-under-waxman-markey.pdf.

U.S. Census Bureau, 2007 Economic Census, July 2009. www.census.gov/econ/

census07/.

U.S. International Trade Commission, DataWeb, April 2009. www.dataweb.usitc.gov/.

U.S. Senate, Calendar of Business, September 9, 2009. www.gpoaccess.gov/calendars/

senate/index.html.
ENERGY MATTERS / FALL 2009

10

The Frito-Lay manufacturing facility in Killingly, Connecticut, has officially unplugged itself from the 

Northeast power grid, thanks to the installation of a stateof-the-art combined heat and power (CHP) 

co-generation system. This new system allows 

the plant to generate its own electric power, 

providing almost 100 percent of the plant’s 

electricity requirements. To make the most 

out of the new system, the facility will also 

convert the waste heat generated on site into 

steam, helping Frito-Lay manufacture its snack 

products onsite. The implementation of this 

new system not only provides relief to the 

Northeast by reducing the significant load on the 

heavily congested regional power grid, but also 

helps the site lessen its environmental footprint by reducing its 

carbon dioxide and nitrous oxide emissions, which contribute to 

greenhouse gases. 

Success in Industry

Frito-Lay Goes off the Grid 

Thanks to New Energy-Efficient Technology

The proven benefits resulting from the launch of the new CHP 

co-generation system at the Frito-Lay facility are an important 

step toward investing in sustainable business practices and 

transforming the way in which U.S. industry uses 

energy. This new system has the potential to help 

U.S. industry achieve a sustainable future by enabling 

other plants to become more energy-efficient and 

minimize their environmental impact.

The U.S. Department of Energy’s Office of Energy 

Efficiency and Renewable Energy cofunded the infield demonstration programs of the CHP applications 

through the Industrial Technologies Program. The 

official ribbon-cutting ceremony for the CHP project 

took place on August 12, 2009, while the 12-month 

data-evaluation period began on May 1, 2009. Full operation 

of the CHP system was achieved during the week of March 23, 

2009. Gains from this project will be reported in a future issue.

New Energy-Efficient Process Helps Revitalize 

Small Minnesota Town

Hoyt Lakes, Minnesota, is a small, quiet community where everyone knows one another. That close-knit feel made it 

particularly difficult when the nearby 

LTV Steel Mining Company shut 

down in 2001, putting over 1,400 

people from the region out of work. 

The town’s fortune changed for 

the better, however, when the new, 

innovative, and highly energy-efficient 

Ironmaking Technology Mark Three 

(or ITmk3®) process was developed 

by Kobe Steel, Ltd. The development 

of this new process paved the way for 

a series of investments and projects that are now providing hope 

for the small town. 

A pilot-scale operation of the new process, supported by the 

U.S. Department of Energy’s Industrial Technologies Program, 

proved its technical and commercial viability, resulting in a 

decision by Steel Dynamics, Inc. to build its new Mesabi Nugget 

ironmaking plant in Hoyt Lakes. Construction of the new plant 

began in January 2007 and is expected to be completed in the 

fall of 2009. The project has created work for approximately 500 

construction workers and will also 

provide permanent jobs to about 65 

workers when the plant is completed. 

The new approach of the ITmk3®

process has the potential to 

revolutionize ironmaking by utilizing 

methods that consume 30 percent less 

energy than those of blast furnaces. 

A remarkable benefit of this new 

energy-efficient process can be seen 

with the large amount of time saved 

in the critical iron-making stages of reduction, melting, and 

slag removal, which now occur in only 10 minutes, as opposed 

to hours when using the traditional blast-furnace process. 

Additionally, this method significantly reduces the amount of 

process-associated pollutants and greenhouse gas emissions, 

helping to tackle the problem of climate change.

Copyright © Missabefan
ENERGY MATTERS / FALL 2009

11

I

n 2008, the Industrial Technologies Program (ITP) developed 

the State Incentives and Resource Database (depicted below)—a 

comprehensive state-by-state database that contains links to 

information on the financial and technical incentive programs 

offered to help improve the energy efficiency of commercial 

and industrial operations. The database is searchable by state, 

assistance type, energy type, organization type, and program 

name, and is updated biannually to ensure that new programs 

are added, old information is deleted, and Web site links are 

updated. 

States & Utilities Corner

Access to Financial and Technical 

Energy-Efficiency Assistance In Your State

As of August 2009, the database holds 2,759 resource entries 

offered by local utilities, states, and nonprofit groups that can 

be utilized by commercial and industrial sectors. To learn more 

about the database and to find technical and financial resources for 

reducing your energy use, visit http://www1.eere.energy.gov/industry/

states/state_activities/incentive_search.asp.
ENERGY MATTERS / FALL 2009

12

The Industrial Technologies Program (ITP) Partnership Development & Deployment Team is engaged in outreach, 

support, and collaboration on industrial energy efficiency with 

each of the 50 states.

State Activities Web pages were developed by ITP to offer the 

public easy access to the industrial profile of each state, including 

information on relevant industrial, economic, and energy 

indicators. For ease of use, the site includes interactive maps 

that illustrate where ITP assessments, trainings, and technology 

projects have taken place across each state. Clicking on the 

informational links provides details about each project and its 

results. The site also provides contact points within each state for 

local energy-efficiency resource and assessment centers, as well 

as experts.

This information and data is valuable to ITP, its partners, and the 

general public for identifying potential project allies, learning 

about new technology deployment in your state, or contacting 

a local assessment center to learn more about getting a trained 

professional to conduct an assessment in your plant. The site also 

ranks the states based on population, gross domestic product, and 

energy consumption.

Visit the State Activities site to see a snapshot of your state’s 

industrial profile.

The Industrial Energy Efficiency Directory (INDEED) Web site is designed as a publicly accessible resource that 

delivers energy-efficient technology and process options to 

industry. The INDEED concept stems from needs expressed 

by industry to create a repository of commercially available 

equipment and systems that best achieves energy efficiency 

within industrial facilities and that accelerates the deployment 

of these technologies and systems. INDEED provides key 

information that plant managers need for deciding which 

technologies meet the energy efficiency goals obtained from the 

installation and use of new equipment.

Tools of the Trade

INDEED

Industry Expresses Need for Resources; ITP Delivers

The INDEED Concept

The objective of the INDEED Web site is to provide plant 

managers with useful resources information for assessing their 

energy efficiency needs and offer valuable solutions. INDEED 

comprises four interactive areas—an equipment directory, case 

study directory, software tools page, and blog forum—as well as 

a helpful list of resources and a collection of useful links. 

To maximize the success of INDEED, ITP has designed the site 

to appeal primarily to companies/plant managers. Companies/

plant managers will access INDEED in search of energy-savings 

options and will discover information on new technologies and 

Industrial Activities In Your State
ENERGY MATTERS / FALL 2009

13

BestPractice options while there. Moreover, they will be able to 

share their opinions on a case study or experience with a specific 

technology via the blog forum, allowing others to learn and 

benefit from such discussions.

Provided below are brief descriptions of INDEED’s interactive 

areas:

•	 Equipment Directory: The equipment directory provides 

users with access to a market directory of energy-efficient 

technologies, their projected energy savings and carbon 

dioxide emissions reduction, and manufacturing and 

installation information. 

•	 Case Study Directory: The case study directory provides 

industry with access to success stories of efficiencyimprovement projects and energy savings that have been 

implemented by companies across various industries. 

•	 Software Tools: The software tools page provides users with 

access to tools that can help identify energy- and emissionreduction opportunities at their industrial facilities. Links for 

obtaining these free software tools are provided as well. 

•	 Blog Forum: The blog forum enables users to discuss 

industry-related energy efficiency topics, learn about and 

share tips on managing energy at industrial facilities, and 

share guidelines on energy-efficient implementation. Users 

have the ability to suggest energy efficiency topics and 

contribute to the forum discussions.

In addition to these features, INDEED offers a Resources page, 

which directs users toward financial and technical resources 

and education and training programs, and a Links repository, 

which provides users with a collection of useful Web sites from 

which they can obtain additional information on various federal 

agencies, energy organizations, and industrial organizations.

The following groups will reap the benefits of INDEED’s many 

features:

• Companies/plant managers/energy managers

• Users seeking data on the commercially available equipment 

and systems that can best achieve energy efficiency, reduce 

energy intensity, and maximize return on investment

• Facilities that could benefit from equipment location and 

installation information, as well as from the blog forum 

for discussions on project financing and energy efficiency 

implementation

• Individuals, various consortia, and associations interested 

in ITP programs and initiatives, energy-efficient-technology 

options, technology-deployment information and models, 

and industry case studies.

The INDEED Web site performs the following functions:

• Encourages discussion on industrial topics and preeminent 

equipment and systems that are commercially available

• Facilitates access to energy-efficient technology 

implementation, technical and financing opportunities, and a 

directory of equipment

• Results in the deployment of the best energy-efficient options 

available to industry.

See what’s new with INDEED at http://www.indeed.govtools.us/.
ENERGY MATTERS / FALL 2009

14

Paving the Way for Nanotechnology

Nanotechnology can be described as the identification and/or development of materials with specific properties on 

the nanoscale (less than 100 nanometers). These materials are 

then produced as scaled-up bulk materials or are integrated into 

existing or new products such that the sought properties remain 

on the macroscale. Nanotechnology has been and remains a basic 

science problem, identifying useful and new nanoscale properties. 

However, in the last two decades, the basic concepts and research 

have been developed into industrial and other commercial 

applications. With these developments come new requirements 

to refine more properties to greater extents, integrate them into 

more existing and new products, and to identify further areas for 

development and exploitation. 

With their commercial applications come related health, 

environmental, and regulatory concerns. Due to their extremely 

small size, nanomaterials have a propensity to migrate from 

their original application. Thus, there are concerns about 

ingesting or absorbing these materials, as well as what effect 

they will have on plant and animal life. With such a wide variety 

of products and applications, the health and environmental 

issues cannot be universally and finally resolved. Problems, 

however, can be identified and combated before they grow large 

enough to threaten the industry and present investment with 

careful planning that includes continued study of the potential 

problems, flexibility in products and business decisions, and 

risk management. As in any area of new development and 

regulation, a stable, predictable landscape is generally preferred 

to encourage continued investment.

The following regulatory and accreditation schemes are being 

developed in response to questions that remain over unknown, 

undiscovered, adverse impacts of nanotechnology:

• The U.S. Environmental Protection Agency has issued 

recommendations (though no requirements) for reducing the 

risks associated with nanotechnology

• The United States will develop regulations, which are likely 

more than five years away

• Businesses and associations are proactively developing 

accreditation schemes to avoid and prevent any bad actions

• The European Union is developing regulations applicable 

to nanomaterials, such as the Registration, Evaluation, 

Authorisation and Restriction of Chemicals regulation 

(2006). 

Examples of Industrial Uses 

for Nanotechnology

• Coatings and binders for improving the strengthand wear-resistance in engine parts or breaks in 

automotive applications

• Conductors (liquids or solids) and insulators for lowweight high-energy-density batteries or hydrogen 

fuel cell applications

• Conductors for heat dissipation in electronics, or 

heat capture and conversion for industrial energyefficiency improvement

• Selective, adaptive bonding materials for use in 

packaging

• Inks and display technology for electronics

• Structural materials (high-strength low-weight) for 

wind power components.

Research & Development 
ENERGY MATTERS / FALL 2009

15

In the last couple of years, nanotechnology was predicted to 

see large increases in domestic and international investment, 

many-fold increases in market size, and uncounted new business 

opportunities. The economic downturn has affected the industry, 

reducing its predicted growth to simply sizeable amounts. Due 

to the large number of applications spanning multiple industries 

and the large upside to nanotechnology developments, the area’s 

potential is just as strong as any other emerging, developing 

technology. Currently, the crucial business decisions include 

the questions of where and how much to invest limited research 

and development resources across a growing list of promising 

applications and discoveries. In June 2007, the U.S. Department 

of Energy’s (DOE’s) Industrial Technologies Program (ITP) 

hosted a workshop where industry experts, scientists, and 

engineers gathered to review research and development and 

business developments in nanotechnology to decide which 

would provide the greatest energy efficiency and productivity 

improvements in the next 5 to 10 years. 

The following areas were considered to be worth the most 

investment and focus:

•	 Catalysis: Catalysis is key to the chemicals, petroleum, and 

refining industries. Its benefits include lower-temperature 

reactions and reduction of byproducts, which saves energy 

and reduces emissions and other wastes

•	 Coatings: Coatings are low-friction, low-drag, and selflubricating surfaces that have potential in many industries, 

including construction, mining, manufacturing, and 

automobiles

•	 Lightweight Materials: The addition of nanomaterials can 

maintain or reduce weight, while maintaining key properties 

like strength and durability

•	 Material Modification: These developments enhance a 

variety of properties, including ultrahardness and wearresistance

•	 Separations: Applicable to a wide variety of industries, 

separations will provide an alternative to water- and energyintense distillation and evaporative processes

•	 Thermal Management: Thermal management has the 

potential to provide superior heat-transfer fluids, substrates 

and coatings, or a flip-side of low-conductivity materials as 

barriers or in other applications

•	 Thin Films: Thin films provide a variety of flexible, lowweight heat-recovery (e.g., thermoelectric) or energy-storage 

applications.

In addition to the performance improvements, the development 

of new products and markets, and the related competitive 

advantages from these, the workshop generated a calculation of 

annual energy savings estimated at more than 1.0 quadrillion 

Btus from the application of nanotechnology in the chemicals, 

refining, and forest products industries. 

ITP—through its Nanomanufacturing platform—and DOE’s 

Office of Science—through its Materials Science platform—offer 

solicitations and other joint funding opportunities.

Additional Readings on Nanotechnology

Nanomanufacturing for Energy Efficiency, Workshop Report 

(ITP, December 2007)

Estimated Energy Savings and Financial Impacts of 

Nanomaterials by Design on Selected Applications in the 

Chemical Industry (Los Alamos National Laboratory, 2006)

The Nanotech Report (Lux Research, 2006)

International Nanotechnology Development in 2003: Country, 

Institution, and Technology Field Analysis Based on USPTO 

Patent Database (National Science Foundation, 2004)

Chemical Industry R&D Roadmap for Nanomaterials by Design

(Chemical Industry Vision2020 Technology Partnership /

Energetics, 2003)
ENERGY MATTERS / FALL 2009

16

Industry Trends

The following sections detail current trends in the industrial sector with regard to workforce, energy intensity, and carbon 

pricing.

Workforce

Examining the workforce data provided by the Bureau of Labor 

Statistics, Figure 1 shows the manufacturing industries (in 

decreasing order) by total number of employees, as of the third 

quarter of 2009. 

Since the fourth quarter of 2008, the Transportation Equipment 

Manufacturing and Fabricated Metal Product Manufacturing 

sectors have lost enough employees to be surpassed by the Food 

Manufacturing sector (see Figure 2).

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

Food

Transportation

Fabricated Metal

Electronics

Machinery

Chemical

Plastics

Miscellaneous

Printing

Paper

Nonmetallic

Furniture

Electrical

Wood

Primary Metal

Tobacco

Apparel

Textile Products

Textile Mills

Petroleum

Leather

Employess (thousands)

Figure 1. Manufacturing Industries by Total Employees (Q3* 2009) 1,469.7 1,338.4 1,294.4 1,135.6 999.9809.2629.3 591.0 518.4406.2 403.4 382.9 370.5 361.1 358.0 189.2 166.8 125.7 121.9 113.731.5

*Q3 2009 data based on July numbers only

Figure 2. Total Employees, Selected Industries

1200.0

1250.0

1300.0

1350.0

1400.0

1450.0

1500.0

1550.0

1600.0

1650.0

1700.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3*

2008 2009

Total Employees (thousands) Food Manufacturing Fabricated Metal Product

Manufacturing

Transportation Equipment

Manufacturing

*Q3 2009 data based on July numbers only

Table 1. Change in Unemployment (Q1 2008–Q3 2009*)

Transportation 14.8% Plastics 5.1%

Furniture 14.6% Electrical 4.8%

Wood 10.7% Chemical 4.3%

Electronics 8.8% Petroleum 2.2%

Primary Metal 8.4% Food 2.0%

Machinery 6.4% Nonmetallic 1.8%

Miscellaneous 5.9% Tobacco -4.1% *

Q3 2009 data based on July numbers only.

2008 2009

Food

Tobacco

Wood

Petroleum

Chemical

Plastics

Nonmetallic

Primary Metal

Machinery

Electronics

Electrical

Transportation

Furniture

Miscellaneous

Figure 3. Manufacturing Industries Unemployment

0.0

5.0

10.0

15.0

20.0

25.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3*

Unemployment by Sector (%) *Q3 2009 data based on July numbers only

Figure 3. Manufacturing Industries Unemployment

Figure 1. Manufacturing Industries by Total Employees (Q3* 2009)

Examining the unemployment rate over the same period, the 

average industry wide increased from 5.4 percent to 11.5 percent. 

The Furniture and Related Product Manufacturing, Transportation 

Equipment Manufacturing, and Wood Product Manufacturing 

sectors have seen double digit increases in unemployment, while 

the Beverage and Tobacco Product Manufacturing has seen a 

decrease in unemployment of more than four percent (see Table 1 

and Figure 3).

Figure 2. Total Employees, Selected Industries

*

Q3 2009 data based on July numbers only.

*

Q3 2009 data based on July numbers only.

*

Q3 2009 data based on July numbers only.

Markets & Trends
ENERGY MATTERS / FALL 2009

17

Energy Intensity

Energy intensity for a given industry, as reported by the Energy 

Information Administration, is calculated based on the total 

consumption of energy in Btus divided by the total value of 

shipments (in 2006 U.S. dollars). The Manufacturing Energy 

Consumption Survey (MECS) provides the basis for these 

calculations. Prior to 1994, the MECS was carried out every three 

years and the industry categories were based on the Standard 

Industrial Classification System. Beginning in 1998, the MECS 

was carried out every four years and has been based on the North 

American Industry Classification System. While the crosswalk 

of sectors between the two classification systems is not 1:1, the 

trends presented here are roughly approximate. The value-ofshipments data is still being compiled for the 2006 MECS and 

resulting energy-intensity data will be presented when it becomes 

available.

Most industries showed an increase in energy intensity from 

the 1991 and 1994 surveys to the 1998 survey. The majority 

of the highest-intensity industries (petroleum, paper, primary 

metal, chemical, and wood products) decreased their energy 

intensity between the 1998 and 2002 surveys, as did half of the 

lowest-intensity industries (fabricated metal, tobacco, furniture, 

machinery, transportation, apparel, and miscellaneous). Textile 

mills, food, plastics, textile products, electrical, leather, printing, 

and electronics all showed an increase between the 1998 and 

2002 surveys.

Figure 5. Least Energy-Intense Industries

0

5

10

15

20

25

30

Intensity (thousand Btu/$2006)

Industry

Paper Petroleum Primary

Metal

Nonmetallic Chemical Textile

Mills

Wood

1991

1994

1998

2002

2006

Food

Plastics

Textile Products

Electrical

Fabricated Metal

Leather

Printing

Tobacco

Furniture

Machinery

Transportation

Apparel

Miscellaneous

Electronic

In

s

tensity (thousand Btu/$2006)

0

0.5

1

1.5

2

2.5

3

Industry

1991

1994

1998

2002

2006

*

2006 data is based off of value of shipments from 2007 Economic Census, the 

remaining data is from MECS.

*

2006 data is based off of value of shipments from 2007 Economic Census, the 

remaining data is from MECS.

Figure 4. Most Energy-Intense Industries
ENERGY MATTERS / FALL 2009

18

Table 2. Price of Carbon

Date Price

Jan 2, 2004 $0.98

Jan 3, 2005 $1.75

Jan 3, 2006 $1.70

Jan 2, 2007 $3.75

Jan 2, 2008 $1.90

Jan 2, 2009 $1.65

Source: The Chicago Climate Exchange,

www.chicagoclimatex.com/market/data/daily.jsf.

Price of Carbon

The price of carbon, or carbon emissions, is often given as the 

price per metric ton of carbon dioxide. The data presented here is 

provided by the Chicago Climate Exchange, which reported an 

initial value of $0.98 per metric ton on December 13, 2003. 

By the start of 2007, the price was almost up to $4.00, and 

by 2008, the price jumped up to almost $8.00 ($7.40 on May 

30, 2008). The large and continued decrease in carbon prices 

since that peak has caused speculation and worry about the 

prospects for investment in carbon sequestration and capture and 

alternatives to high-carbon-emission technologies and industries.

2009

2008

2007

Figure 1. Price of Carbon

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

D

ollars per metric ton C

O2

January

February

March

April

May

June

July

August

September

October

NovemberDecember

Figure 6. Price of Carbon

Source: The Chicago Climate Exchange, www.chicagoclimatex.com/market/data/daily.jsf.
ENERGY MATTERS / FALL 2009

19

Dear Energy Expert:

My plant is looking for recommendations for achieving 

boiler combustion control more efficiently. Do you have 

any suggestions?

When investigating steam systems, the boiler is one of the primary targets for energy-efficiency improvement. There 

are many tools used in the evaluation and management of boiler 

performance. One of the most useful tools is boiler efficiency. 

Boiler efficiency describes the fraction of fuel energy that is 

converted into useful steam energy. Of course, the fuel input 

energy that is not converted into useful steam energy represents 

the losses of the boiler operation. Boiler investigations generally 

examine the losses by identifying the avenues of loss, measuring 

the individual loss, and developing a strategy for loss reduction. 

There are many avenues of loss encountered in boiler operations. 

Typically, the dominant loss is associated with energy leaving the 

boiler with combustion gases. The temperature of exhaust gases 

is an indication of their energy content. Ensuring that the heattransfer surfaces of the boiler are clean is a major point of focus 

for managing the thermal energy in exhaust gases. Energy can 

be recovered from exhaust gases by transferring thermal energy 

from the high-temperature gases to boiler feedwater, or to the 

combustion air entering the boiler.

Another aspect of exhaust-gas energy management, which is the 

focus here, is combustion management. It should be noted that 

the temperature- and combustion-related attributes of exhaust 

gases are interrelated—they combine to represent the stack loss 

of the boiler. Again, this is typically the dominant loss for the 

boiler. Stack loss is dependent on the operating characteristics of 

the boiler, the equipment installed, and the type of fuel burned in 

the boiler. Stack loss generally ranges from as much as 30 percent 

for a green-wood-fired boiler, to 18 percent for a typical naturalgas-fired boiler, to 12 percent for an oil-fired boiler, to as low as 

9 percent for a coal-fired boiler. It must be pointed out that the 

stack-loss range is wide for any given fuel. 

To address your question, we will examine the combustion of 

a simple fuel—methane (CH4). The chemical equation for the 

reaction of methane with oxygen (O2) is presented below: 

In a perfect world, methane will react with oxygen to release 

energy and form carbon dioxide and water. In this perfect 

arrangement, each molecule of fuel would find the exact amount 

of oxygen needed to cause complete combustion. In the case of 

methane, one molecule of methane must find two molecules of 

oxygen in order to produce a complete reaction. 

In the real world, however, the combustion process does not 

proceed in a perfect manner. A fuel molecule may encounter less 

oxygen than is required for complete combustion. The result will 

be partial combustion; the exhaust gases will then contain some 

unreacted fuel and some partially reacted fuel. Generally, these 

unburned fuel components are in the form of carbon monoxide 

(CO), hydrogen (H2), and other fuel components that may include 

the fully unreacted fuel source, which in this case is methane. 

When unburned fuel is found to be part of the combustion 

products, a portion of the fuel that was purchased is consequently 

discharged from the system, unused. It is also important to note 

that unburned fuel can accumulate to a point where a safety 

hazard could result. Unburned fuel can burn in a part of the 

boiler not designed for combustion—under certain conditions, 

the materials can even explode. Additionally, these chemicals are 

typically toxic in nature, presenting health and environmental 

hazards. 

Unburned fuel presents negative safety, health, environmental, 

and economic impacts to the boiler operations. As a result, it 

is imperative to manage the combustion process in order to 

maintain these components at minimum levels. Fortunately, 

the complex interrelations of the combustion process can be 

managed with two fairly simple principles. The first principle of 

combustion management is based in the fact that unreacted fuel 

components are undesirable in the exhaust gases of the boiler, but 

the presence of unreacted oxygen presents minimal safety, health, 

and environmental concerns. Furthermore, as long as the burner 

is appropriately mixing the oxygen and fuel, the presence of extra 

oxygen in the combustion zone essentially ensures that all of 

the fuel will react completely. The fan energy required to move 

ambient air into the combustion zone is generally minimal when 

compared to the cost of fuel. 

Ask the Energy Expert

Boiler Combustion Control

CH4 + 2O2 → αCO2 + βH2O + γCO + δH2 + εCH4 + ζO2 }

Energy Release

CH4 + 2O2 → CO2 + 2H2O }

Energy Release
ENERGY MATTERS / FALL 2009

20

Combustion management principle number one, stated simply, 

is provide more oxygen than you theoretically need to ensure 

that all of the fuel burns up. As a result, when combustion 

management principle number one is applied to the example 

chemical reaction, rather than two molecules of oxygen being 

supplied for every one molecule of methane, each molecule of 

methane may be provided three or four molecules of oxygen. 

This will ensure that all of the fuel is burned. The extra oxygen 

that is added to the combustion zone, however, enters at ambient 

temperature, and it exits the boiler at flue-gas temperature. The 

flue-gas temperature of a typical boiler could be anywhere in the 

300°F to 500°F range. As a result, the extra oxygen could have 

entered the boiler at 70°F and exit at 400°F. The extra oxygen 

reached this temperature by receiving fuel energy—in other 

words, fuel was purchased to heat the extra oxygen. Additionally, 

ambient air contains almost four molecules of nitrogen (3.76 to 

be exact) for every one molecule of oxygen. As a result, every 

amount of excess air brings with it a huge amount of nitrogen. 

This nitrogen enters at ambient temperature and receives fuel 

energy to exit the boiler at flue-gas temperature. 

This brings us to combustion management principle number 

two—do not use too much oxygen. In other words, combustion 

management requires that extra oxygen be provided to the 

combustion zone in order to ensure that all of the fuel is reacted; 

however, the amount of extra oxygen must be minimized to 

reduce energy loss. The critical measurements required to manage 

the combustion loss are the flue-gas oxygen content and the fluegas combustibles concentration. The flue-gas oxygen content is 

measured to allow the combustion air flow to be modified to meet 

a set point. Combustibles concentrations are measured to identify 

the minimum practical oxygen concentration. It should be noted 

that combustibles concentrations can be elevated even though 

excess oxygen is provided to the combustion zone. This situation 

is typically indicative of a burner failure. A primary function of 

a burner is to mix the air and fuel thoroughly to ensure complete 

combustion. If a burner component has failed or is improperly 

adjusted, the mixing process can be ineffective. This can result 

in unburned fuel and excess oxygen. Combustibles concentration 

values vary based on fuel type, operating conditions, and burners. 

A typical natural-gas-fired boiler will operate with combustibles 

concentrations less than 50 parts per million (ppm), while a coalfired boiler may operate with combustibles concentrations greater 

than 200 ppm. Generally, combustibles concentrations less than 

100 ppm are considered negligible in terms of efficiency impact. 

Baseline combustibles concentrations should be established for 

each boiler. 

The principles and measurements used in combustion 

management outlined above indicate that combustion control 

should incorporate flue-gas oxygen measurement, combustibles 

measurement, and active control of combustion airflow. Many 

boilers, however, do not incorporate these factors into the 

control process. Common boiler-control strategies are based 

primarily on steam-pressure control. As the process steam 

demand increases, the steam pressure at the boiler deceases. The 

boiler steam-production controller will measure this decrease in 

pressure and will increase fuel flow to the boiler. In the case of 

a natural-gas-fired boiler, the controller 

will proportionally open the fuel control 

valve. As the fuel flow is increased, the 

combustion air flow must also increase 

in order to maintain safe and efficient 

combustion. 

A very common and simple method of 

accomplishing the control of combustion 

air flow is to mechanically link the 

air-flow control device to the fuel-flow 

control device. This is commonly called 

positioning control because the air-flowcontrol device will have a position that is 

based solely on the position of the fuelflow-control device. It should be noted 

that this control does not incorporate 

any active oxygen or combustibles 

measurements. Oxygen and combustibles 
ENERGY MATTERS / FALL 2009

21

measurements are only taken to establish the position relationship 

between the fuel controller and the air controller. After the 

position relationship is established, oxygen and combustibles 

measurements cease.

Tuning the boiler is the act of reestablishing the position 

relationship between the air and fuel. This tuning activity is 

completed in the same manner the original air-fuel control 

point positions were established. The boiler is operated steadily 

at discrete fuel input positions and the airflow control device 

position is redefined. The boiler will be operated at discrete loads 

throughout the operating range of the unit. While the fuel-flow 

controller is 100-percent open, for example, the position of 

the air-flow controller is adjusted until an appropriate flue-gas 

oxygen content is attained. Combustibles concentrations should 

also be measured to ensure proper burner operation. The position 

relationship exercise is repeated over the operating range of the 

boiler (95-percent load, 90-percent load, down to minimum load). 

This retuning activity should be completed frequently to ensure 

safe and efficient boiler operation.

It should be noted that when positioning control is used, the 

oxygen content cannot be minimized because of many factors. 

One factor influencing the airflow controller position is ambient 

temperature. Ambient temperature is a concern because the 

combustion air fan is basically a constant volume-flow device 

(for a given controller set point). If the position relationship is 

established for a relatively cool inlet-air temperature, the mass 

flow of air into the combustion zone could be dangerously low as 

the inlet air temperature increases. As a result, positioning control 

can only attain moderate efficiency. 

Fuel

Automatic Control

Flue-Gas O2 Content

Positioning Control

Flue-Gas O2 Content

Min.

[%]

Max.

[%]

Min.

[%]

Max.

[%]

Natural Gas 1.50 3.00 3.00 7.00

Number 2 Fuel Oil 2.00 3.00 3.00 7.00

Number 6 Fuel Oil 2.50 3.50 3.50 8.00

Pulverized Coal 2.50 4.00 4.00 7.00

Stoker Coal 3.50 5.00 5.00 8.00

Combustion control can be improved through the use of an 

automatic oxygen trim system. This type of system continuously 

measures flue-gas oxygen content and adjusts the combustion 

air flow to maintain a set point. This type of control can be 

more precise and efficient than positioning control because 

it continually tunes the air-fuel relationship. Combustibles 

measurement and control can be added to allow the oxygen set 

point to be minimized. 

These control strategies take many forms, and there are many 

variations of each; this description only outlines the primary 

composition of the control. Table 1 depicts the expected flue-gas 

oxygen content for common fuels. It should be noted that most 

boilers require higher flue-gas oxygen content at lower loads. 

This generally results from the fact that mixing is compromised 

in the burner at low loads. Additionally, flue-gas oxygen content 

targets will be influenced by additional environmental controls, 

such as nitrogen oxide control. When a boiler is equipped with 

nitrogen oxide control, the minimum oxygen concentrations 

are somewhat higher than in boilers without the nitrogen oxide 

control.

Ask the Energy Expert is an ongoing column designed to provide 

information and solutions for industry’s most pressing questions. 

This issue’s Energy Expert is Dr. Greg Harrell, PhD, PE, of Energy

Management Services in Jefferson City, Tennessee.

Table 1. Typical Flue-Gas Oxygen Content Control Parameters

Data based upon field observations.
ENERGY MATTERS / FALL 2009

22

 

December 2009

1–3: Climate Leaders Conference

7–9: NSF Nanoscience Grantees Conference

January 2010

17–20: 2010 Northwest Food Manufacturing & Packaging Expo

The American Recovery and Reinvestment Act is providing 

$256 million for the following industrial energy-efficiency 

projects:

• $156 million for combined heat and power, district energy 

systems, waste-energy-recovery systems, and efficient industrial 

equipment

• $50 million for improved energy efficiency for information and 

communication technology

• $50 million for advanced materials in support of advanced cleanenergy technologies and energy-intensive processes.

For more details about Recovery Act funding,

• Watch ITP's solicitations Web page

• Sign up to receive e-mail updates from ITP

• Read the ITP news article

• Monitor www.grants.gov and FedConnect

• Checkout the InDEED Web Site.

Recovery Act Funding Opportunities

Look for Us...

ITP Calendar of Events

Industrial Technologies Program Contacts

Click below to request more information about ITP and the services we provide.

 PARTNERSHIP DEVELOPMENT & DEPLOYMENT Jeffrey Walker; jeffrey.walker@ee.doe.gov; (202) 586-5059

 TECHNOLOGY DEVELOPMENT Isaac Chan; isaac.chan@ee.doe.gov; (202) 586-4981

 ENERGY SERVICES DEVELOPMENT James Quinn; james.quinn@ee.doe.gov; (202) 586-5725

Funding Resources

International

Energy Management Standard Development Proceding

The third meeting of ISO PC 242 to develop ISO 50001: Energy 

management requirements and guidance for use, will be held 

this November in London, England. The last meeting was held 

in Rio de Janeiro, Brazil in March 2009 with approximately 

70 delegates from 19 countries in attendance. There are a 

total of 35 countries participating in the development of this 

international standard. The future ISO 50001 will establish a 

framework for industrial plants, commercial facilities or entire 

organizations to manage energy and could influence up to 

60% of the world’s energy use. See the ISO Web site for more 

information. ITP mechanical engineer Paul Scheihing will 

attend.

The United Nations Climate Change Conference will be held 

in Copenhagen, Denmark, December 7 through December 18, 

2009. See COP15 Web site for more information.

The International Energy Agency’s Energy Management

Action Network Workshop will be held in Paris, France, 

on January 26 and 27, 2010. ITP’s Program Manager, Doug 

Kaempf, plans to attend. More information will be available on 

the International Energy Agency’s Web site.

The Alliance to Save Energy is hosting its Energy Efficiency

Global Forum and Exposition in Washington, D.C., May 10 

through 12, 2010. Visit Aliance to Save Energy’s Web site for 

more details. 
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