Energy Efficiency Impact on Industrial Steam Operations
U.S. industries that use steam systems can easily lessen the impact of the natural gas shortage and escalating prices with simple, low-cost measures that will cut their energy use by at least 10 percent. Even better, virtually all of the efficiency gain comes from techniques with a financial payback of two years or less. Each year, U.S. industry consumes approximately 17.9 quadrillion Btu (quads) of fuel, including 4.03 quads of natural gas for powerhouses that generate steam and electricity.
With natural gas well head prices about 20 percent higher than last year’s, up from about $5 to approximately $6 per million Btus, industry would pay $24.2 billion for powerhouse fuel in 2003, about $4.03 billion more than in 2002. Employing industrial steam efficiency practices will allow industry to save $3.2 billion, or 75 percent of that additional expense.
More than 45 percent of all the fuel burned by U.S. manufacturers is consumed to raise steam, which heats raw materials and treats semi-finished products. Steam also is a power source for equipment, as well as for building heat and electricity generation. Since steam is considered a support function, its costs are often overlooked.
SOURCE: U.S. EIA, Consumers Enbridge Steam Savers Program Results
INDUSTRIAL STEAM BEST PRACTICES: IMPACTS ON NATURAL GAS EXPENSE
| Measures with financial payback of: | Description of Measure | Pct. of Steam Load Avoided | Avoided Fuel Expense* | Payback (Years) |
|---|---|---|---|---|
| One year or less |
|
1.50% | $362.5 | 0.92 |
|
0.95% | 229.6 | 0.83 | |
|
0.63% | 152.2 | 0.21 | |
| Between 1-2 years |
|
2.58% | $623.5 | 1.13 |
|
2.66% | 642.8 | 1.29 | |
|
0.28% | 67.7 | 1.39 | |
|
0.26% | $62.8 | 1.74 | |
|
0.89% | $215.1 | 1.72 | |
| Between 2-3 years |
|
1.07% | $258.6 | 2.34 |
|
0.68% | 164.3 | 2.39 | |
| Over 4 years |
|
1.65% | $398.7 | 4.44 |
| TOTAL | ALL BEST PRACTICES | 13.2% | $3,178 | 1.71 |
*Millions of dollars
A 16.67 percent increase in steam system efficiency could have offset the 2002-2003 jump in powerhouses’ natural gas expenditures, which were driven by a 20 percent price increase. In general, each percent gain in fuel efficiency offsets a greater than proportional increase in fuel price.
Yet industry often overlooks opportunities for steam efficiency. Many firms have tried to cut costs by reducing energy management staff, and most smaller manufacturers have never had dedicated energy management staff. The Alliance to Save Energy notes that this is penny wise and pound foolish because foregoing efficiency leads to unnecessary energy expenses – a particular burden when fuel prices are high. Besides incurring higher energy costs, plants that forego efficiency also pass up gains in productivity, reliability, and safety. And they create more pollution than necessary.
Resources
For additional free materials, call the Steam Clearinghouse toll free at 800-862-2086.
DOE’s BestPractices Steam program identifies exemplary technologies and management practices. The Steam Sourcebook provides a review of steam system operations, the best ways to improve operating costs, tip sheets, and a detailed appendix with contact information for additional references, service suppliers, training opportunities, and more. (www.oit.doe.gov/bestpractices/steam).
