How Manufacturers Can Reduce Industrial Energy Costs
Industrial energy consumption is a big part of every organization’s monthly expenditure, but it’s not money well spent. Any inefficiency on an industrial scale adds up quickly and the energy demands of the industrial sector are massive; here’s how facility managers and decision-makers can reduce their energy costs.
Overview: Industrial Sector Energy Consumption
The industrial sector accounted for more than a third of all end-use energy consumption in the United State in 2021. Between 35-33% of all energy consumed in the US is dedicated to industrial applications, typically broken down into four categories:
Manufacturing (81% of industrial sector energy consumption)
Mining – 9%
Construction – 6%
Agriculture – 3%
Within the manufacturing sector, chemical manufacturing and production facilities consume 37% of the 19.44 Btus needed in 2018, followed by petroleum and coal products at 22% (think DEF, plastics, and the thousands of petroleum-based retail products available), paper products (11%), and primary metals (8%).
How Much Energy Do Factories Use?
The number varies based on subsector, seasonality, and other variables, but the most established figure has been established at 95.1 kWh of electricity and roughly 536,500 Btu of natural gas per year. This amount of power is generated by a mix of energy sources. Coal has seen its contribution declined precipitously since 1950, yielding 1.04 quadrillion Btu in 2021. Today, the top three sources of energy in the US industrial section are:
Natural gas
Petroleum
Electricity (grid-sourced)
How to Reduce Energy Waste
No country wastes as much energy as the United States. A 2013 study found that the US has a 42% energy efficiency rate; as much as 58% of all energy produced is wasted. In the manufacturing world, roughly 30% of all energy purchased is waste.
To meet corporate sustainability goals and improve your bottom line, develop the sort of in-house energy initiatives that can have a positive impact in relatively little time. There are several ways to improve energy consumption in industrial sector facilities:
Create an Energy Leadership Team
Empower one or a small group of employees to explore, investigate, and implement energy-efficient fixtures and practices are your facility. Consider typing a financial incentive to the project that rewards active, aggressive action and always schedule monitoring sessions and meetings to ensure progress is being made.
Hire an Energy Consultant
Work with your facility manager to find a trustworthy energy consulting firm to take a detailed look at opportunities to improve energy efficiency. This is especially useful for businesses with a recorded history of energy consumption over time and a budget with which to make necessary improvements to processes and fixtures based on the specialist’s recommendations.
Experiment with Load-shedding
Most industrial sector facilities already practice load-shedding or scheduled production shutdowns, utilize combined heat and power, and other energy-efficient fixtures or practices. Research ways to reduce the energy spike associated with equipment startup or times of peak demand, be it the time of day, time of the month, or time of year.
Tackle the Most Wasteful Equipment First
Certain pieces of equipment are more wasteful than others and should be addressed first. Air compressors, for instance, are notoriously inefficient. Poorly designed or maintained air compressors waste approximately $3.2 billion per year in the US.
Address Your HVAC System
Commercial HVAC systems are a prime opportunity to reduce energy waste. Invest in automated building systems that can control HVAC systems, improve air intake and circulation, and make general maintenance a priority. Repairs and proper insulation can reduce HVAC energy consumption by 30% or more.
Learn How To Improve Your Industrial Energy Consumption
Working with an experienced energy specialist can provide immediate energy savings and prioritize your future energy efficiency initiatives. Learn how Keen Technical Solutions can lower your energy costs and free up your budget to make lucrative investments in other areas of your business. Contact an energy consultant today.