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March 19, 2010
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SITUATION
Industrial energy use accounts for 37% of global energy use and is the source of more than 10 billion tons of CO2e emissions annually, or 20% of anthropogenic emissions. Industrial energy use has grown about 2% each year since 1975 according to the IPCC and is projected to continue increasing under business-as-usual scenarios.
Industrial energy use accounts for 37% of global energy use and is the source of more than 10 billion tons of CO2e emissions annually, or 20% of anthropogenic emissions. Industrial energy use has grown about 2% each year since 1975 according to the IPCC and is projected to continue increasing under business-as-usual scenarios.
At a 2% annual growth rate, energy-related emissions from industry will reach 18.1 billion tons of CO2e in 2020 and contribute significantly to rising concentrations of atmospheric CO2e that lead to catastrophic global climate change.
About half of current industrial energy consumption can be attributed to the iron, steel, and chemical production sectors. Much of the growth in industrial energy demand has come from emerging economies. China accounts for about 80% of the growth in the last twenty five years and is the world’s largest producer of iron, steel, ammonia, and cement, according to IEA 2007 data.
OBJECTIVE
Energy is a substantial part of industry costs, which makes efficiency technologies attractive to businesses. Harvesting of waste heat for energy and recycling of materials, for instance, can both improve the bottom line while reducing energy consumption and associated emissions. In many cases steps taken to reduce industrial energy use can be achieved at a negative cost.
Energy is a substantial part of industry costs, which makes efficiency technologies attractive to businesses. Harvesting of waste heat for energy and recycling of materials, for instance, can both improve the bottom line while reducing energy consumption and associated emissions. In many cases steps taken to reduce industrial energy use can be achieved at a negative cost.
There are a number of approaches to reducing industrial energy use:
- Adoption of renewable and cleaner fuel sources
- Heat and power recovery
- Increased energy efficiency
- Materials efficiency and recycling
- Carbon capture and storage
Combined, the IEA estimates mitigation potential for CO2e from these measures to be approximately 5.4 billion tons annually by 2050. The potential to achieve these reductions in a shorter timeframe, by 2020, will depend on the ability to accelerate adoption of efficiency measures and low-carbon technology in these sectors.
Market-based Approaches
Energy savings are available in almost all segments but involve an upfront investment; hence one of the biggest challenges to be addressed is financing. The global recession has made financing more difficult but this is likely a short-term hurdle. As financial institutions look for new classes of investments, industrial efficiency could be a promising if positioned correctly.
The industrial sector has experienced limited innovation around energy efficiency and low-carbon technologies, in comparison to the energy sector, and represents a nascent market. Lack of information is a market-inhibitor. Successful efficiency projects need to be showcased and opportunities for savings highlighted.
Also, without guarantees, such as those offered by Energy Services Companies (ESCOs), industries may understandably be nervous about investments in energy efficiency. Examples can help address this; guarantees may be required in some cases.
INDUSTRY RESPONSIBLE FOR 37% OF ENERGY USE
Energy use in the industrial sector is estimated at greater than 10 billion tons of CO2e each year...
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OPTIONS TO REDUCE EMISSIONS EXIST
Energy-use accounts for more than half of industrial emission, the high cost of energy consumptions can be viewed as incentive to lower use, emissions and costs. This can be achieved by lowering...
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INDUSTRY ENERGY USE RISING
Industrial energy use has been rising for decades alongside increasing populations and economic growth.
Read more > Source: IEA, 2007INTELLIGENCE
