Leaders from the Field: The Dow Chemical Company

Leaders from the Field.  The following is a short interview with Joe Almaguer, Global Energy Efficiency and Conservation Leader for the Dow Chemical Company.  Interviews included in Leaders from the Field are intended to shed light on energy efficiency and energy-related activities that are currently shaping strategic initiatives in leading American manufacturers.

How long has Dow Chemical been committed to energy efficiency and what are the company’s most significant accomplishments in this regard? 

The Dow Chemical Co. has a long rich heritage in its pursuit and commitment to energy efficiency dating back to the early 1900s, when Herbert H. Dow collaborated with George Westinghouse on high efficiency power plant designs to drive Dow's energy intensive chemical processes.  That tradition continues today. 

In 1990, Dow initiated a process of formalizing and institutionalizing its energy management system, and in 1994 the company made a public commitment to reduce its energy intensity (energy consumed to produce a pound of product) by 20 percent over the next 10 years. The results of this long-term, intentional approach have greatly benefited the bottom line: 

Since 1990:

• manufacturing energy intensity has been improved by 38 percent

Since 1994:

• Cumulative Energy Savings = Approx 1,700 Trillion Btu’s
• Cost Savings (avoided fuel) = Over $ 9 Billion
• Cumulative avoided CO2 emissions of ~ 90 Million MT

Having exceeded the goal at the conclusion of 2005, Dow is now in partnership with the U.S. Department of Energy’s Save Energy Now LEADER initiative, pursuing an additional 25 percent improvement in energy intensity across all of its manufacturing operations. 

Dow Chemical is a Save Energy Now LEADER company. How has Dow Chemical been able to benefit or use this initiative to improve energy efficiency? 

Fundamentally, Dow believes that improving the efficiency with which energy is used is key to making US manufacturing more competitive, increasing energy security and reducing emissions.  This corporate belief aligns perfectly with the intent and purpose of the Save Energy Now LEADER initiative, so becoming a Charter LEADER Company was a natural fit for Dow.   And, although Dow has utilized and relied on its comprehensive energy management system to drive and achieve its energy efficiency goals,  collaborating on and leveraging best practices and tools being made available by DOE and other LEADER companies only makes our system more effective and successful. 

Through our participation in Save Energy Now LEADER Webinars and training/discussion sessions, we are sharing, discussing and learning better ways of managing energy and increasing its productivity.  In addition, as a Save Energy Now LEADER Company, we are working collaboratively with DOE to conduct energy management demonstrations under the "Superior Energy Performance" program in two of our U.S. plants — our Texas City Operations in Texas, and our Institute Manufacturing Site in West Virginia — along with a demonstration under its international version "Global Superior Energy Performance" at one of our facilities in Latin America. 

In what other industrial energy efficiency programs or initiatives does Dow Chemical participate? 

We are very fortunate in the U.S. that there are a number of organizations, both government and non-government, whose mission and goal is to advance energy efficiency programs across the various energy consuming sectors.  Dow is happy to be an active participant in many of these organizations to help realize our national energy efficiency goals. 

A couple of initiatives we are particularly excited about is the work being done by the U.S. Council for Energy Efficient Manufacturing (US CEEM) on the Superior Energy Performance Program (SEP) and the development of an international standard for Energy Management, 50001, by the International Standards Organization.  SEP, which incorporates into its model both the need for a comprehensive energy management system via compliance with ISO 50001 and enhanced energy performance, has great potential in helping a wide range of energy users either begin or advance in their energy efficiency journey. 

About Joe Almaguer

Joe Almaguer, Global Energy Efficiency and Conservation Leader for the Dow Chemical Company, oversees the ongoing development and implementation of Dow’s Corporate Energy Management System, where he has worked for 32 years.  

He is an active member of several Industry/Government/NGO collaborative energy initiatives including the US Council for Energy Efficient Manufacturing, Superior Energy Performance Program and Texas Industries of the Future whose aim is to promote energy efficiency and conservation throughout the industry.  Joe Almaguer is also a participating Energy Expert on the US Technical Advisory Group (TAG) to PC 242 – ISO Energy Management Standard.