Dow has long recognized that energy efficiency and conservation ideas can come from anywhere. Its Waste Reduction Always Pays (WRAP) initiative has given awards to employees who have come up with ideas for reprocessing waste into raw materials. Since its inception in 1986, 395 WRAP projects have accounted for the reduction of 8 trillion Btus of energy.

Results

Key examples of the energy saving opportunities realized through Dow's Energy Efficiency and Conservation Management System include:

• Combined heat and power -- Almost 85 percent of Dow's electricity in the United States and 70 percent worldwide is now produced through cogeneration. Cogeneration can use up to 40 percent less fuel than conventional power generation.

• Improved process efficiency -- For example, the Ethylene Dichloride/Vinyl Chloride Monomer business unit has improved the efficiency of its furnaces, both reducing fuel use and increasing the conversion rate from raw material to final product. They also reduced steam consumption by optimizing steam and distillation systems as well as increasing energy recovery from systems already in place. Overall energy savings from these projects exceeded $5.8 million in 2004.

• Automatic controls -- Wherever possible automatic controls are used to ensure that machinery is operating at optimum efficiency. For example, at the Dow site in Boehlen, Germany, steam production was decreased by improved pressure and flow control and improved steam load shedding on the steam distribution system. This project reduced fuel oil purchases by $2.3 million per year.

• Energy efficient equipment -- The most energy-efficient designs are selected for new equipment. For example, at Dow's Seadrift site, an existing air compressor was improved with a new compressor wheel design that is much more energy efficient.
The result was reduced consumption of fuel gas to the gas turbine used to drive the compressor. The old machine consumed about 8,000 pounds per hour of fuel gas for maximum airflow. The new machine reduced the fuel consumption to about 6,000 pounds per hour. The annual fuel savings is estimated to be $3.2 million per year.

• Energy recovery from waste -- At Dow's Freeport, TX site, hydrogen is being recovered from chlorine production and used for burning in boilers to generate steam and power. This power displaced about 1 million MM Btus of purchased gas per year. Costs savings experienced are approximately $7 million per year.

Dow exceeded its 2005 goal by achieving a 22 percent reduction in energy intensity. Over 10 years it saved approximately 900 trillion Btus -- enough to power 8 million homes for a full year (see Figure 2).

Lessons Learned

Fred Moore says that the two keys to Dow's success in driving down its energy intensity have been pursuing energy efficiency opportunities with the same aggressive implementation as other business goals because they do save money, and engaging with external partners.

• Aggressive implementation -- Whether it be Six Sigma type projects, operations optimization, or major process and systems upgrades, aggressive pursuit of energy efficiency goals has enabled Dow to keep capturing savings from efficiency improvements. Moore stresses that solutions that work in one place are quickly implemented across the whole company driven by leadership commitment to achieve energy goals and strong tools for identifying where energy efficiency improvements could create value, Moore notes that "people who think they have picked all the low hanging fruit just aren't looking hard enough." Indeed, after consistently achieving energy intensity improvements for eighteen years the company is still finding energy efficiency investments that payback over two years.

• External engagement -- Dow notes that if the US GDP grew at an average 3 percent rate and that the nation were to improve its energy efficiency by 25 percent between 2005 and 2015, the nation would save the oil equivalent of all the Persian Gulf imports in the 2005 base year. Dow has set such an aggressive goal for itself, targeting a 25 percent improvement in energy efficiency between 2005 and 2015. To make a true impact in the areas of energy efficiency and conservation, Dow leaders believe that the company must engage with customers, industry partners, governments and other experts, to share its technology and to contribute to dialogue on energy issues. Dow supports the call for tougher policies to curb energy consumption by U.S. industry sectors.