2. Industrial Technologies Program State Energy Advisory Board Meeting Arlington, VA November 16-18, 2005 Jacques Beaudry-Losique, Program Manager Industrial Technologies Program, EERE U.S. Department of Energy

3. 2 Overview Industrial Energy Context The Industrial Technologies Program’s (ITP’s) Focus Results & Highlights Save Energy Now Initiative State Outreach & Resources

4. 3 Industrial Energy Context

5. 4 Industry: Critical to National Energy Policy Uses more energy than any other single sector; >1/3 of U.S. energy consumption Accounts for more than 40% of U.S. natural gas demand Accounts for 28% of U.S. electricity demand Produces approximately 30% of U.S greenhouse gas emissions Industry 33.6% Transportation 27.9% Commercial 17.4% Residential 21.1% 2004 Energy Use* * Includes electricity losses Source: DOE/EIA Monthly Energy Review 2004 (preliminary)

6. 5 U.S. Energy Consumption by Industry Source: 1998 Manufacturing Energy Consumption Survey (MECS) Trillion Btu Other Computers Plastics Glass Fabricated Metals Transport Equip. Mining 0 2000 4000 6000 8000 Petroleum & Coal Products Chemicals Forest Products Iron & Steel Food & Beverage Aluminum Other (1,922 TBtu NG) All Energy Natural Gas Natural Gas Liquids

7. 6 U. S. Consumption of Natural Gas By Sector, 2004 Transportation 0.7 Quads Power 5.5 Quads Commercial 3.1 Quads Residential 5.0 Quads Industrial 8.8 Quads Industry > 40% of total U.S. Natural Gas Use Source: DOE/EIA Monthly Energy Review 2004 (preliminary)

8. 7 Challenges for Energy-Intensive Industries International technology/cost competition Uncertain environmental constraints Limited access to LT investment capital Uncertain long-term economics Natural gas prices and supply –Henry Hub spot price on November 8 2005, was $11.89/MMBtu “Many companies have been unable to pass higher energy costs on to their customers, which has sharply reduced their profit margins” National Energy Policy, pages 2-4

9. 8 ITP’s Focus

10. 9 The Industrial Technologies Program (ITP) Collaborative R&D Technology Delivery Partnerships Energy-intensive Process Technologies Crosscutting Technologies Assessments Training & Tools Delivering Technology Solutions

11. 10 Trillion Btu Next Generation Steel-making Advanced Water Removal High-Efficiency Pulping Hybrid Distillation Process Intensification Crosscutting Other Computers Plastics Glass Fabricated Metals Transport Equip. Mining Inferential-based Process Control Advanced Thermo- Electric Materials Super Boiler Ultra-Hard Materials Natural Gas Alternatives Iso-thermal Melting Process specific Types of R&D Supported by ITP

12. 11 Emerging Topic: Fuel/Feedstock Flexibility Application Near Term (<6 mnnth) Mid Term (6 mnnth – 2 yrs) Long Term (>2 yrs)TOTAL Feedstock -- 700 Process 1002001,3801,680 Boiler 2007508001,750 TOTAL 3009502,8804,130 Total Nat Gas Displacement(10 12 Btu) Near-Term (0 – 2 years): Redirect TD to pursue natural gas saving opportunities via: –Technology and market assessments –Application guides explaining opportunities, implementation strategies, permitting issues, etc. –Training and education Longer-Term (>2 years): Significant process changes and permitting required –Explore opportunities in FE and other EERE technologies –Conduct applied R&D for industrial applications ITP Strategies

13. 12 DOE-supported energy assessments (IAC,CTA,PWA) Qualified specialists Energy efficiency training for plant staff Energy analysis software tools Case studies and information Websites: 877-337-3463 www.eere.energy.gov/bestpractices www.energysavers.gov/industry Technology Delivery Resources Info Center:

14. 13 Technology Delivery Focus U.S. Manufacturing Plants: By Size Small Plants <$100K Category: Annual Energy Costs Mid-Size Plants $100K-$2M Large Plants >$2M Number of U.S. Plants 1998 EIA MECS All U.S. Plants Percent of Total Industrial Energy Small & Medium 47% Large 53% Focus of IAC Teams Focus of CTA, PWA Teams

15. 14 Results and Highlights

16. 15 2002 Program Results Annual energy savings of 121 trillion Btu (87 commercial technologies currently tracked) Cumulative energy savings of 2.6 Quads since 1976 Cumulative production cost savings of $16.5 billion since 1976 Initiated tracking of 11 new commercialized technologies

17. 16 Four “R&D 100” Award Winners in 2004 Enhancement of Aluminum Alloy Forgings through Rapid Preheating of Billets Imaging Ahead of Mining Smart Screening Systems Advanced Glass Furnace Model

18. 17 Chemicalsthrough 1/11/06~ $10 million SBIR through 12/2/05~ $10 million Materials for EECompleted~ $ 7.6 million Industrial Assessment Centers through 1/24/06 ~ $ 6 million Materials (Labs)Completed ~ $ 5 million Innovative Energy Systems through 1/25/06 ~ $ 4 million Inventions & Innov.Completed ~ $ 2 million FY2006 ITP RD&D Solicitations

19. 18 Save Energy Now initiative

20. 19 “Save Energy Now” Initiative Goals: Encourage industry to voluntarily reduce its energy usage in a period of tight supplies by working with America’s largest energy-intensive plants Create momentum to significantly improve energy efficiency practices throughout the manufacturing sector

21. 20 Energy Savings Assessments 200 assessments of targeted industrial systems Assessments done by teams composed of DOE Qualified Energy Experts and plant personnel Teams will focus on either steam generation or process heating Plant personnel and affiliates will be trained on DOE efficient tools ESA Report identifies potential energy and cost savings Note: Does not include off-site losses Manufacturing Energy Use by Type of System (%) Process Heating 38% Steam 35% Other 4% Electrochemical - 2% Process Cooling 1% Motor Systems 12% Facilities 8%

22. 21 Robust Partnerships to Reach Plants Allied Partners States Utilities Equipment Suppliers & Service Companies Trade Associations Replication within Industrial Companies

23. 22 For the Latest Information … Save Energy Now Website www.eere.energy.gov/industry/saveenergynow www.eere.energy.gov/industry/saveenergynow EERE Information Center - Call: 1-877-337-3463

24. 23 State Outreach & Resources

25. 24 Selected State and ITP Accomplishments Texas Technology Showcase Ohio Technology Showcase California Energy Fairs Saving Water; Saving Energy in Colorado Nevada Mining Energy Solutions Event Western US Food Processing Efficiency Initiative

26. 25 Recent SEP Special Project Industrial Awards

27. 26 Accelerating State and ITP Results Leverage market players (e.g., utilities, ITP Allied Partners, Qualified Specialists, and regional groups such as the Northwest Energy Efficiency Alliance) Deliver SEP special projects through largest energy consuming plants Facilitate cross-pollination of activities and results across corporate facilities Increase awareness of ITP emerging technologies and commercialization capabilities Develop common impacts tracking system and metrics Strategically communicate successes to right audiences