Energy Outlook: Federal Perspective. Jacques Beaudry-Losique Office of Energy Efficiency and Renewable Energy December 6, 2006

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1 Energy Outlook: Federal Perspective Jacques Beaudry-Losique Office of Energy Efficiency and Renewable Energy December 6, 2006

2 Global Energy Challenges National energy security: Global oil and gas reserves are in unstable areas and flexible alternatives are not readily available Economic security: Rising prices hurt America s ability to remain competitive in the global market place Global Warming: Global concerns regarding carbon emissions and climate change are forcing industries and governments to rethink their strategies on energy fuels $ per Million Btu $ per Barrel Natural Gas Prices, Henry Hub Oil Prices, West TX Intermediate

3 Industry: Critical to U.S. Energy Picture 2004 Energy Use* Quads (Quadrillion Btu) Transportation 28% Industry 33% Chemicals Petroleum Refining Forest Products Commercial 18% Residential 21% Iron & Steel Food Processing Aluminum Non-Mfg. *Includes electricity losses 5.9 Other Mfg. Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS

4 Delivering Technology Solutions Collaborative R&D Energy-intensive Process Technologies Crosscutting Technologies Partnerships Technology Delivery Assessments Training & Tools Best practices information

5 Focus on Energy Efficiency Industrial Reaction and Separation Develop technologies for efficient reaction and separation processes Oxidation Processes Microchannel Reactors Hybrid Distillation Alternative Processes Advanced Water Removal High Temperature Processes Develop energy efficient high-temperature process technologies for producing metals and non-metallic minerals Advanced Metal Heating and Reheating Advanced Melting Efficient Heat Treating High Efficiency Calcining Next-Generation Steelmaking Energy Conversion Systems Develop high efficiency steam generation and combustion technologies and improved energy recovery technologies Thermal Transport Systems Super Boiler Ultra-High Efficiency Furnace Waste Heat Recovery Fabrication and Infrastructure Develop energy efficient technologies for making near net-shape finished products from basic materials Near Net Shape Casting and Forming Energy Efficient and Safe Extraction Inferential Process Control for Product Quality Ultra-hard Materials Joining and Assembly

6 Emerging Technology: SuperBoiler Project Description: Gas-fired package boiler using innovative concepts in burner, heat transfer, heat recovery & control Licensed to Cleaver-Brooks Technical Objectives 94% efficiency (from 70-83%) <5 ppm NOx (from ppm) Status Continuing Field Demonstration No. 1 (Alabama) Field Demonstration No. 2 (California): Fabrication of 300-HP two-stage boiler underway and beginning pre-testing at Cleaver-Brooks manufacturing facility

7 Eight R&D 100 Awards in 2006 Isothermal Melting (ITM) Process for Aluminum Multiport Dryer TMA 6301 and TMA 4701 Cast Austenitic Steels Alloys Resistant to Metal Dusting HotEye Steel Bar Inspection Laser-Ultrasonic Web Stiffness Data Transmission System for Mining Metal Infusion Surface Treatment

8 Fuel Flexibility Fuel flexibility is the ability to substitute the consumption of one fuel for another. This could include switching to lower-cost fossil fuels, renewables, and waste materials Boiler plant at DOE s Savannah River Site co-fires coal and biomass. Wheelabrator Waste-to-Energy Facility, Baltimore, Maryland Tennessee Eastman Coal Gasification Plant, Kingsport, Tennessee

9 Increase Fuel Flexibility Switch between Natural Gas or Distillate Oil and Electricity Coal-Based Gas Firing Biomass Municipal Solid Waste Biomass-Based Gas Firing Direct Biomass Firing From Natural Gas to Residual Oil or Petroleum Coke Alternative Feedstocks

10 Save Energy Now 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 Our Energy Saving Teams will work with on-site managers on ways to conserve energy and use it more efficiently. Secretary of Energy Bodman October 3, 2005

11 Large Plants Offer Focus for Outreach Industrial energy consumption is highly concentrated Thousands of U.S. Plants U.S. Manufacturing Plants & Energy Use By Size Small Mid-Size <25 BBtu Large BBtu >500 BBtu Annual Energy Consumption 18,000 12,000 6,000 0 Trillion Btu per Year 4,000 large energy users (LEUs) consume 58% of all industrial energy Large and mid-size plants combined account for >90% of manufacturing energy use ITP maintains an LEU contact database

12 Save Energy Now: Energy Savings Assessments Gather Preliminary Data Conduct Plant Visit Analyze & Report Results Follow-up Train Plant Staff Teams composed of DOE Energy Experts (Qualified Specialists) and plant personnel Teams focus on steam generation and process heating, but also consider compressed air, pump, and fan systems Plant personnel and affiliates are trained on DOE software tools

13 Energy Savings Assessment Results 190 Energy Savings Assessments completed (out of 200) With 164 assessments reporting: Potential natural gas savings of 42 trillion Btu/year -- equal to 580,000 U.S. homes Identified potential cost savings = > $405 million/year Carbon emission reduction potential = 0.75 MMTCE/year 6-month follow-up completed on 42 plants Over 60% implementation in 6 months! While [Dow] has been a leader in energy efficiency, with DOE s help, we found yet more cost-effective opportunities to save precious energy. John Dearborn, Global Business VP for Energy Dow

14 Energy Savings Assessment Results 2 4 years Modify steam turbine operation Use oxygen for combustion Change process steam use 9 mo. 2 years 15% Heat feed water with boiler blowdown Lower excess oxygen Flue gas heat recovery 5% 40% > 4 years Install CHP system Fuel switching technologies 40% < 9 months Improve insulation Implement steam trap program Clean heat transfer surfaces

15 Total Energy Savings By 2008, the assessments of 2006 will annually save the energy carried by 10 LNG tankers.

16 On-line Plant Energy Profiler QuickPEP OUTPUTS INPUTS Plant description Utility supply data electricity, fuel & steam Energy consuming system information Scorecard responses Overall picture of plant energy use Summary of energy cost distributions Preliminary assessment & comparison Areas for energy efficiency improvement Energy cost reduction potential

17 Industry: Standards & Certification Program Work with industry to develop industrial energy management standards Third-party validation and certification Four comprehensive levels Supply chain Corporate Plant System

18 Technology Delivery Activities for immediate market impact Information Tools Website Process Heating Information Center Steam Systems Tip Sheets Plant Energy Profiler Case studies Motors & Pumps Webcasts Fans Assessments Emerging Technologies Energy Savings Assessments Training Basic Industrial Assessment Centers Advanced Qualified Specialist

19 Don t Miss Out Visit our booth in the Exhibit Hall Call the EERE Information Center at 877-EERE-INF to request publications or technical assistance Visit our website Apply for an Energy Savings Assessment at your plant in 2007 Process heating Steam Compressed air Pumps Fan systems