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U.S. Industry Challenged to Become 10% More Energy Efficient

The nonprofit Alliance to Save Energy called on the nation's industrial leaders to reduce energy use and costs by 10% to help ease the burden on the natural gas supply and to avert a price crisis looming over the coming winter's heating season.

The nonprofit Alliance to Save Energy called on the nation's industrial leaders to take the "10 Percent Pledge" to reduce energy use and costs by 10% to help ease the burden on the natural gas supply and to avert a price crisis looming over the coming winter's heating season.

Addressing a recent Capitol Hill briefing exploring near-term solutions to the natural gas crunch, Alliance acting co-president Mark Hopkins called on Congress and the Bush Administration to urge the corporate community to adopt the 10% energy-reduction goal.

"For the last decade or so, low energy prices have lulled American industry into largely overlooking the many easy ways to save energy and improve their bottom lines with energy efficiency. But the natural gas shortage should focus their attention on energy-efficient improvements and 'energy-smart' behaviors that can help bail us out -- just as California consumers and the business community helped turn around the state's energy crisis," Hopkins said.

First, the alliance encourages industrial plant managers to immediately secure an energy audit, which typically will reveal a wealth of no-cost options for saving energy and money. (See free resources below.) The easiest opportunities involve the shut-off of idle equipment and the proper sequencing of equipment start-up. Leaks in steam and compressed air systems drain operating budgets while boosting unnecessary demand for fuel and power. The majority of low-cost improvements have a financial payback of two years or less.

Hopkins cited three specific areas of industrial energy use, in order of greatest savings, that in total provide a 10% savings opportunity:
  1. Powerhouse fuel consumption and purchased steam. Steam, either produced on-site or purchased, plus power generated onsite, represent almost half of industrial fuel consumption. Improvement opportunities include combustion, distribution, heat recovery, and changes in plant operating practices. Current consumption: 8.3 quads; savings potential: 1.0 quad.

  2. Fuel direct to processes and building. Fuels sent directly to process activities and building climate control add up to over one-third of industry consumption. Savings can be found in combustion, heat recovery, insulation, and operating practices. Current consumption: 6.7 quads; savings potential: 0.5 quad.

  3. Purchased electricity. Almost two-thirds of electricity is devoted to motor-driven systems, with the balance going to such things as lighting, controls, and computers. Motor systems offer a 15% reduction opportunity. Current consumption: 2.9 quads; savings potential: 0.4 quad.
"Energy efficiency is the quickest, cheapest, cleanest way to increase our natural gas and other energy supplies. We need a long-term approach to the natural gas shortage, and energy efficiency must be the foundation of our nation's energy policy," Hopkins said. "We may be running short of natural gas, but we will virtually never run out of energy efficiency. It is our nation's inexhaustible energy supply."

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