Technologies and Policies to Increase Energy Efficiency in IndustryIndustrial Sector Primary Energy UseIndustrial Sector CO2 EmissionsImportance of Industrial SectorIndustrial Sector Energy Use by Sub-SectorBut Isn’t Industry Already Efficient?Where Is All This Potential?California Industrial Energy Efficiency PotentialEnergy-Efficiency Technologies and Measures for IndustryOptions for Reaching Industrial GHG Emission Reduction GoalsPolicies and Programs to Improve Energy Efficiency and Reduce GHG EmissionsIndustrial Energy Efficiency and GHG Emissions Reduction ProgramsIndustrial Target-Setting Supporting Policies and ProgramsIndustrial Target-Setting ProgramsIndustrial Sectors in Target-Setting ProgramsNetherlands Long-Term Agreements on Energy EfficiencySlide 17UK Climate Change AgreementsSlide 19China’s Top-1000 Enterprise ProgramSlide 21Corporate GHG Mitigation TargetsConclusionsContact InformationSourcesTechnologies and Policies to Increase Energy Efficiency in IndustryPresentation for the American Physical Society’s Forum on Physics and SocietyPhysics of Sustainable Energy: Using Energy Efficiently and Producing It RenewablyMarch 1, 2008Lynn PriceEnergy Analysis DepartmentEnvironmental Energy Technologies DivisionLawrence Berkeley National LaboratoryIndustrial Sector Primary Energy UseIndustrial Sector CO2 EmissionsImportance of Industrial SectorNote: industry includes agricultureSources: de la Rue du Can and Price, 2008; Murtishaw et al., 2005; Price et al., 2006; US EIA, 2007; NBS, 2005Industrial Sector Energy Use by Sub-SectorSources: IEA, 2007; Murtishaw et al., 2005But Isn’t Industry Already Efficient?Sector Savings PotentialChemicals and petrochemicals 13-16%Iron and steel 9-40%Cement 11-40%Pulp and paper 15-18%Aluminium 6-8%Sources: IPCC, 2007; IEA, 2007Plus savings in improved motor and steam systems, increased use of combined heat and power, process integration, increased recycling,and energy recovery…Leads to a global estimate of industrial efficiency potential of 19-32% of industrial CO2 emissions and 7-12% of total global CO2 emissions7Where Is All This Potential? Includes alternative fuelsSource: IEA, 2007Energy Use Per Ton Cement Clinker ProducedChemical and Petrochemical IndustryCalifornia Industrial Energy Efficiency PotentialKEMA study:•Identified 127 electricity and 36 natural gas energy-efficiency technologies and measures for the manufacturing sector•Economic potential of ~ 4.4 MMtCO2e through 2016•~ 2.0 MMtCO2e from electricity•~ 2.4 MMtCO2e from natural gas•Savings from baseline of 15% for electricity and 13% for natural gasEnergy-Efficiency Technologies and Measures for Industry•US EPA Energy Star for Industry Program—Petroleum refining: 90—Pharmaceuticals: 102—Food processing: 150—Cement: 40—Glass: 114—Breweries: 45—Auto assembly: 93—Petrochemicals: 100•US DOE Industrial Technologies Program—~ 90 new technologies “for today” for aluminum, chemicals, forest products, glass, metal casting, plastics, mining, petroleum refining, steel—Energy-efficient technologies for industrial systems (motors, steam, compressed air, etc.)Options for Reaching Industrial GHG Emission Reduction GoalsSource: IPCC, 2007Policies and Programs to Improve Energy Efficiency and Reduce GHG Emissions•Regulations/Standards•Energy or CO2 Taxes•Emissions Trading•Agreements/Target-Setting•Reporting•Benchmarking•Audits/Assessments•Information Dissemination and DemonstrationIndustrial Energy Efficiency and GHG Emissions Reduction ProgramsTarget-setting programs•Industrial sector target-setting programs are common: over 20 national-level, target-based industrial sector programs identified•Range from voluntary to mandatory•Include targets for either industrial sub-sectors or industrial facilities•Based on signed agreements committing upper management to reaching targets•Some include energy or GHG taxes, some include emissions trading•Supporting policies and programs are essential for assisting industry in reaching targetsIndustrial Target-Setting Supporting Policies and Programs •Information on energy efficiency and GHG emissions mitigation options•Energy audits, assessments, benchmarking•Assistance in preparing inventories, identifying opportunities, developing energy-saving plans, energy management•Financial assistance and incentives •Government and public recognition•Relief from additional regulations or exemptions from regulations •Reduced or avoided energy/GHG taxes•Penalties for non-compliance: stricter environmental permitting, penalty fees, energy or CO2 tax•Emissions tradingIndustrial Target-Setting Programs•Netherlands•20% energy efficiency improvement by 2000 (1989 baseline)•Long-Term Agreements: contracts between the Dutch Minister for Economic Affairs and associations representing 29 industrial sectors (1250 firms) representing 90% of industrial energy consumption•U.K.•20% CO2 emissions reduction by 2010 (1990 baseline)•Climate Change Agreements: Government signed agreements with either industrial sector associations or individual companies representing 44 sectors (about 5,000 companies and 10,000 facilities) responsible for 90% of energy-intensive industry•China•20% reduction of energy use per unit of GDP by 2010 (2005 baseline)•Top-1000 Energy-Consuming Enterprises: contracts between Provincial governments and 1000 enterprises representing 48% of industrial energy consumption and 30% of total energy consumption in ChinaIndustrial Sectors in Target-Setting ProgramsU.K.Climate Change AgreementsNetherlandsLong-Term AgreementsChina Top-1000 ProgramCement Cement Construction materialsIron and steel Iron and steel Iron and steelChemicals Chemicals ChemicalsAluminium Non-ferrous metals Non-ferrous metalsPaper Paper PaperTextiles Textiles TextilesGlass GlassRubber Rubber processingBrewing Beer breweriesLime Plastics Coal miningSemiconductors Dairy Petroleum/petrochemicalsFoundries Sugar Electric powerPlus 30 more sectors… Plus 17 more sectors…Netherlands Long-Term Agreements on Energy EfficiencyGoal: increase industrial energy efficiency by 20% between 1989 and 2000•Novem approached industry sector, signed letter of intent•Inventory of viable energy-efficiency improvement measures•Target-setting agreement signed•Energy Saving Plan developed•Annual monitoring Supporting Policies and Programs•Subsidies•Energy investment tax reduction •Information