The industrial, or manufacturing, sector consumes 8.86 trillion kWh (41%) of the 21.6 kWh of electricity generated globally – more than any other sector.[1] Yet, equipment inefficiencies, thermal and mechanical losses, and poor process designs squander up to 30% of the energy that industry purchases.[2], [3]
“[F]or many years, companies found it easier to focus their lean continuous improvement projects on cutting costs or increasing output…than on efforts to increase energy efficiency,” McKinsey reports.[4] The relatively inexpensive cost of energy, focus on increasing capacity through lean methodologies, and difficulty tracking energy efficiency diminished interest in industrial energy efficiency.[5] However, rising energy costs, high capacity factors, and consumers’ demand corporate sustainability have renewed many companies’ interest in reducing their energy use and spend.[6]
Even if you’ve reduced your energy intensity (the quantity of energy used per unit produced) in recent years, you’re still leaving up to five-sixths of your potential energy savings on the table, McKinsey finds.[7]
That means industrial energy efficiency provides an effective — and potentially untapped — means for reducing your energy expenses up to 32% by improving reliability, decreasing lost production time, slashing waste, minimizing equipment life-cycle costs, and ultimately improving your bottom line. Energy efficiency is particularly cost-effective if you rank among the most energy-intensive industries: petroleum refining; chemicals manufacturing; pulp and paper; food and beverage processing; and plastics manufacturing.
FIGURE 1. The most motor-intensive industries according to the 2012 Manufacturing Energy Consumption Survey.
These industries aren’t just energy intensive, they’re also motor intensive. Motor-driven systems account for 50% (food and beverage) to more than 90% (pulp and paper) of the total electricity consumed by these five.[8] Since industrial motor-driven systems waste, on average, 63.7% of the electricity they consume, motor management provides a cost-effective means to reduce your energy use.[9]
While potential savings vary by industry, pumps and compressed air systems provide the greatest energy-saving opportunities for most motor-intensive industries. Depending on industry, replacing inefficient equipment, adjusting operations to the equipment’s best efficiency point, and/or improving control systems may save up to 50% of your motor energy costs.[10] Download your industry profile to learn more
[1] Oak Ridge National Laboratory & Energetics, Inc., “US Manufacturing Energy Use and Greenhouse Gas Emissions Analysis,” Report # ORNL/TM-2012/504 (2012).
[2] US Department of Energy, Energy Use, Loss & Opportunity Analysis: US Manufacturing & Mining (2004).
[3] Oak Ridge National Laboratory & Energetics, Inc., 2012
[4] N. Roettmer, E. Schaefer, & K. Somers, “Capturing the lean energy efficiency opportunity in industrial and manufacturing operations,” EnergyEfficiency: A compelling global resource (McKinsey, 2010).
[6] Technavio, “Global Industrial Energy-Efficiency Services Market: 2016 –2020,” (December 2016).
[8] Oak Ridge National Laboratory & Energetics, Inc., 2012
[9] Oak Ridge National Laboratory & Energetics, Inc., 2012
[10] Hydraulic Institute and Europump, “Pump Life Cycle Costs: A Guide to LCC Analysis for Pump Systems,” (2001).