New Energy Efficient Technologies in Industry

1. New Energy Efficient Technologies in Industry Ernst Worrell Environmental Energy Technologies Division Lawrence Berkeley National Laboratory, Berkeley Western Regional Air Partnership Air Pollution Prevention Forum, May 31st, 2000

2. Introduction • Industry is one of the the largest energy consumers worldwide and in the U.S. (37% of U.S. primary energy consumption) • Industrial activities contribute considerably or are the main contributors to emission of many criteria pollutants • Integrated policies to improve energy efficiency and reduce pollution are important to: • reduce the negative environmental impact of many industrial activities • reduce the contribution to greenhouse gas emissions • reduce the energy, waste treatment and permitting costs • improve the productivity and ‘bottom-line’ of industry • Important to find synergetic approaches, that meet all of the above criteria

3. Industrial Energy Use & Emissions

4. Overview of U.S. Steel Industry • Steel industry is consumes 6% of industrial energy consumption and produces about 8% of industrial CO2 emissions • It is also a large source of pollutant emissions (EDF-ranking) • The U.S. steel industry is currently one the world’s largest • 14 integrated steel companies operating 20 integrated steel mills with 40 blast furnaces • ~60% of US production in 1994 • Primary Specific Energy Consumption 22.3 MBtu/ton • 85 secondary steel companies operating 122 ‘mini mills’ with 226 electric arc furnaces • ~40% of US production in 1994 • Primary Specific Energy Consumption 10.2 MBtu/ton • Many opportunities exist for energy efficiency improvement and pollution prevention

5. Benchmarking of Steel Energy Use Specific Energy Consumption (GJ/tonne)

6. Adoption of Continuous Casting in Selected Countries, 1970-1995

7. Energy Efficiency Opportunities • U.S. steel industry is less energy efficient than in other industrialized countries, suggesting the existence of opportunities for energy efficiency improvement • Technical inventory of practices and technologies for energy efficiency improvement • Inventory, or ‘bottom-up’ approach allows assessment of pollution prevention and productivity benefits • Inventory found nearly 50 practices and technologies • Economic analysis of the measures finds a economic potential for energy efficiency improvement of 18%, reducing CO2 emissions by 19%, assuming a payback period of 3 years or less • Many practices and technologies have multiple benefits

8. Scrap Preheating Scrap Preheating (Fuchs Optimized Retrofit Furnace) Although recycling of steel reduces energy consumption, the efficiency of the electric furnace can be further improved by preheating the incoming scrap, using the hot flue gases of the furnace Electricity savings are estimated at 120 kWh/ton steel (~20%) While investments are estimated at 6 $/ton steel, the reduced operation costs (-4.50 $/ton), result in a payback period of 1 year The other benefits are improved productivity (reduced tap-to-tap times), improved yield, reduced electrode consumption, and reduced flue gas volume (reduced gas cleaning costs)

9. Thin Slab Casting • Thin slab casting integrates casting and hot rolling, reducing the capital costs and energy use dramatically • Thin slab casting reduces primary energy consumption by 3 to 5 GJ/tonne steel, saving up to 170 kg C/tonne steel • Steel production costs are reduced by 25-36$/tonne, or 10% of production costs • Several U.S. plants use the technology, potentials exist for greater use • Reduced material losses and emissions

10. Energy-Efficient Technologies Are A Huge Resource • Very large gains in energy efficiency--and other measures of productivity--will continue to come from advances in technology • Opportunities exist in all sectors for greater efficiency of devices and systems • Technical potential exists in all countries to reduce current energy demand significantly using off-the-shelf technology • A more open international trading system will speed the transfer of these technologies among countries, and the pace of R&D

11. Large Potential in Current and Emerging Energy-Efficient Technologies • Gaps between current practice and currently available best practice shows large potential for efficiency improvements • Project to assess emerging industrial technologies by LBNL and ACEEE, funded by PG&E, EPA, NYSERDA, NEEA, DOE, Iowa Energy Center • Selected 50 key emerging industrial technologies that may provide continued large efficiency improvements in the future, out of a total inventory of 200 • Emerging technologies are currently under development, demonstration or, if commercial, occupy less than 5% of market potential

12. Emerging Energy-Efficient Industrial Technologies N.B. This is intended only to indicate the range of technologies to be investigated further, and is not a final list of those that will be included in the analysis.

13. Clean Energy Futures Study • To produce fully documented scenarios assessing how energy efficient and clean energy technologies can address key energy and environmental challenges of the next century while enabling continued economic growth. • The scenarios are “driven” by sets of public policies and programs that are designed to be credible, flexible, and low-cost mechanisms for fostering energy technology solutions, with an emphasis on climate change issues. • Two policy scenarios reflecting increased levels of national levels of commitment to environmental goals • Moderate scenario: national commitment if costs can be low • Advanced scenario: nationwide urgency to meet goals • Study is done by 5 national labs with wide review committees • The study is expected to be released in December

14. Overview of Approach - Industry • Comprehensive energy efficiency policy to address • Barriers • Diversity of industrial sector • Voluntary Agreements used as umbrella policy • Character of VAs vary by subsector and scenario • Supported by package of additional policies • Modeling of technologies and policies using NEMS • NEMS is the national energy forecasting model • modeling of policy implications

15. Voluntary Agreements - 1 • Contract between the government (or another regulating agency) and a private company, association of companies or other institution. • The private partners may promise to attain certain energy efficiency improvement, emission reduction target, or at least try to do so. • The government partner may promise to financially support this endeavour, or promise to refrain from other regulating activities. • Great diversity among voluntary approaches, ranging from informal programs and self-commitment (e.g. individual companies) to highly structured approaches

16. Voluntary Agreements - 2 • To be successful, preliminary evaluation of Voluntary Agreements showed that: • VAs need to include a clear definition of convincing objectives and targets, • VAs need to have broad coverage and participation, • VAs need to have flexible and cost-effective procedures to implement the agreement for both industry and government, • VAs need to include comprehensive monitoring, as well have independent third party evaluation

17. Supporting Policies • Tax rebates (e.g. CCTI) • Demonstration programs (e.g. NICE3) • Audits (e.g. IAC-program) • Challenge programs • CHP programs • Labeling programs (Energy Star) • Waste management for increased recycling (Waste Wise) • R&D programs • ESCO/utility programs (‘line charges’) • Clean Air Partnership fund/SIPs • Cap and trade of CO2 emissions (Advanced scenario only)

18. Moderate Scenario Voluntary agreements Expanded Assessment Program Expanded Challenge programs CHP tax credit extended from 2003 to 2020 Extend standards to all motors Clean Air Partnership Funding at currently proposed levels Line charges expanded to 30 states Advanced Scenario Same, at higher level More Centers and more assessments Coverage is extended and budgets are doubled Same, combined with other CHP stimulation measures Same, mandate national motor repair standard Extended Clean Air Partnership Funding Line charges expanded to 50 states Illustrative Policies and Programs

19. Moderate Industrial energy use grows 0.4%/year to 37.8 Quads in 2020 (8% below baseline) Aggregate energy intensity falls by 1.5%/year (compared to 1.1%/year in baseline) Carbon emissions are 518 MtC in 2020 (10% below baseline) Reductions in energy demand in steel, paper and cement industries Light industries largest contributor to growth in energy use and emissions Advanced Industrial energy use reduced by 0.1%/year to 34.3 Quads in 2020 (16% below baseline) Aggregate energy intensity falls by 1.8%/year (compared to 1.1%/year in baseline) Carbon emissions are 408 MtC in 2020 (29% below baseline) Strong improvements in steel, paper and cement industries; less in light industries Fuel mix shifts to low carbon fuels (natural gas, biomass) Industry - Policy Scenario Results

20. Industry Results - Energy Use

21. Overall Results CEF: Carbon Emissions U.S. Carbon Emissions (Mt C)

22. Overall - Key Policies • Residential Buildings • efficiency Standards and voluntary programs • “other”, space heating and cooling, water heating • Commercial Buildings • equipment standards and voluntary programs • “other” and lighting • Transport • R&D, voluntary fuel economy goals, pay-at-the pump insurance fees, and domestic cap and trade system • TDI and fuel cell vehicles • Electricity • domestic cap and trade, restructuring, tax credit for renewables, and R&D • combined cycle, wind, nuclear re-licensing, biomass co-firing

23. Other Impacts • Overall • Criteria pollutant emissions are reduced, and air quality is hence improved (only quantified for electricity sector) • Both scenarios reduce U.S. petroleum consumption and hence, imports. This reduces wealth transfers and improves oil security • Development of advanced energy technologies could expand the market share of U.S. companies in the vast global market for efficient and clean technologies • Regional • Reduced coal and oil consumption will have negative consequences for mining, refining and transport industries • Wind and bio-energy would create new employment

24. Conclusions • Industry is a large energy consuming sector in the U.S. and a large emitter of pollutants • Many technologies are available to improve industrial energy efficiency and environmental performance, and more are under development. • U.S. industry has considerable potential for energy efficiency improvement, in the short and long term • Comprehensive energy efficiency, industrial and environmental policies, if well designed, are essential to improve the environmental and energy, as well as economic, performance of U.S. industry

25. Additional Slides With Technology Examples for: Industrial Cogeneration (CHP) Cement Industry Buildings Transportation (not used in presentation)

26. Industrial CHP • Combined Heat and Power (CHP) production or cogeneration has received a lot of renewed attention in the U.S.: “doubling CHP-capacity by 2010” • CHP is traditionally used to generate heat (steam, hot water) and power. Modern forms include direct drives for compressors and preheating, and process applications • Modern gas turbines achieve efficiencies of 35-40% • The average efficiency of power generation in the U.S. has been around 32-33% for the past decades • Studies estimate industrial CHP expansion by 2010 at 30 GW • Large amounts of energy can be saved through CHP, when compared to stand-alone power generation, reducing NOx, SO2 , PM and CO2 emissions

27. Industrial CHP Results - CEF-Study • Installed CHP capacity will likely increase to 4 GW by 2010 and 9 GW by 2020 in the baseline scenario • In the moderate scenario CHP capacity will increase to 14 GW by 2010 and 40 GW by 2020, generating 98 TWh by 2010 and 278 TWh by 2020 • In the advanced scenario CHP capacity will increase to 29 GW by 2010 and 76 GW by 2020, generating 201 TWh by 2010 and 539 TWh by 2020.

28. Cement Industry • 119 plants in 37 states, producing 90 million tons of cement • Although the cement industry consumes only about 2% of industrial energy, it emits about 5% of CO2 emissions • CO2 emissions are due to burning fuels and calcination of limestone • Major environmental impacts are PM, criteria air pollutants, water use and emissions • Cement is produced in two steps; first clinker is made by burning limestone. Secondly, the clinker is mixed with additives to make cement (portland cement is 95% clinker) • Clinker making is the energy intensive production step • Energy efficiency opportunities can be found in using energy efficient equipment, or increasing the use of additives in cement

29. Pre-Calciner Kiln • The U.S. has a very high share of the inefficient wet process kiln (26% of clinker production in 1997) • Pre-calciner kiln is an efficient dry process kiln with preheating of raw materials and pre-calcining limestone at low temperature • Pre-calcination kiln saves 2.4 Mbtu/ton clinker, or 42% • High capital costs are a barrier to implementation • Benefits include: • reduced NOx emissions • reduced water use • increased productivity • increased fuel efficiency • increase use of RDF as fuel

30. Blended Cement • The U.S. cement industry produces mainly portland cement • Portland cement contains 95% clinker, and clinker is responsible for the largest part of energy use and CO2 • In blended cement part of the clinker is replaced by waste materials (e.g. blast furnace slags, fly-ash). • Potentially, up to 65% of the clinker can be replaced in specific cement types, saving up to 45% on energy and CO2 • Almost all countries in the world produce blended cement as a way to reduce energy use and waste production • Blended cement would use ‘wastes’ from other industries like fly-ash, blast furnace slags and other pozzolanic materials

31. Future Potential: Emerging Energy-Efficient Building Technologies Source: Nadel, et al., 1998. Emerging Energy-saving Technologies and Practices for the Building Sector. Washington, D.C.: ACEEE.

32. Future Potential: Emerging Energy-Efficient Transportation Technologies