Energy Efficiency and the US Heavy Industry

Posted: Jun, 21 - 2010

Published: Jun, 22 - 2010

Format: application/pdf

No Of Pages: 6 pages

Language: English

Abstract

The United States has a sizable Heavy Industry and it plays an important role in the economy. Unfortunately, the Heavy Industry is highly dependent on the expensive and difficult to procure fossil fuel.

The industrial sector in the U.S. consumes about a third of the energy produced in the country. This amounts to a whooping 30 quadrillion BTUs per year and includes losses in transmission. The manufacturing sector accounts for most of the industrial demand, where energy is used as both fuel and feedstock.

As energy prices rise world-wide, manufacturers with energy intensive processes are responding by increasing the efficiency of their operations and even shifting a proportion of their energy intensive processes outside the country.

Even with growing efficiency in the production process, the U.S. Heavy Industry struggles to remain globally competitive. Relying excessively on natural gas for power generation adds to the energy supply demand imbalance, exacerbates already high volatility in price, and impacts cost of energy intensive manufacturing.

This whitepaper takes a look at the energy consumption of the Heavy Industry, especially industries like chemical, iron and steel, paper and pulp, and mining. It tries to find answers in energy efficiency, particularly energy efficient transformers. The whitepaper notes the legislative compulsion for energy efficient transformers and analyzes the cost advantage.

The whitepaper then looks at Pacific Crest Transformers offerings in this scenario of raising energy costs and notes how Pacific Crest Transformers with nearly a century of experience is probably one of the few companies with the largest domain expertise in manufacturing customized, environmentally friendly, energy efficient transformers.

Introduction

'Heavy Industry' is a rather amorphous term. According to Wikipedia, Heavy Industry signifies the production of goods that are either heavy in weight or in the processes leading to their production. Examples of such industries include steel, chemical, mining, and construction equipment, machinery.

The United States is the largest consumer of energy in the world, using 94.9 quadrillion BTUs in 2009 and heavy industry in the United States accounts for about 31% of all energy consumption, significantly more than any other sector of the economy. Seven energy-intensive industries use three-fourths of this power; these are aluminum, chemicals, forest products, glass, metal casting, mining, and steel. All these heavy industries are also under tremendous pressure to reduce their huge dependence on expensive non renewable energy.

But does the Heavy Industry have to carry the dubious record of being the highest energy consumer in the country? A recent study by the European Commission thinks not. The study estimates that the United States has the potential to save about 45 TWh energy per year, through use of energy efficient transformers. Even a 0.01 percent gain in the average efficiency of utility transformers installed in the U.S. in a single year, can save as much as 2.9 Twh energy.

The environmental benefits of energy-efficient transformers are also significant and the study by the European Commission believes transformers could well emerge as a major focus for energy efficient initiatives in the industry.