Projects
Industrial Energy Audits
Energy Auditing in the Industrial Market
Through partnerships with both private and public organizations,
the ERC strives to improve the efficiency of energy use in the industrial
sector. For over ten years, the ERC has performed energy audits
and assessments at over one hundred industrial sites from plastics
manufacturers to corrugated box companies. The ERC advocates proven
operational and maintenance cost reduction strategies, while exploring
the viability of emerging technologies for improving energy efficiency
and process improvement.
In addition to evaluating the way energy is utilized
within a facility, the ERC has a dedicated team promoting on-site
electrical generation. By recovering heat from power generation
equipment, fuel utilization efficiencies can easily surpass traditional
utility power sources.
Many of our efforts in the industrial market are
sponsored by governmental agencies, including the Illinois Department
of Commerce and Community Affairs (IL-DCCA), the City of Chicago
and the U.S. Department of Energy (US-DOE). They recognize that
energy is a critical component in any manufacturing process and
that improving energy efficiency directly impacts the vitality and
competitiveness of the industrial economy in local, national and
global markets. In recent years, many programs have focused on key
industrial sectors prominent in the U.S. and for which energy is
a significant input. Such areas are recognized by the US-DOE as
Industries of the Future.
Plastics Manufacturing
The Energy Resources Center (ERC) has expanded energy conservation
efforts into the industrial market. In 1996, the Illinois Department
of Commerce and Community Affairs provided a grant to investigate
energy conservation opportunities in the plastics industry (SIC
308). Although energy costs are historically not among the highest
concerns of the plastics process, they are becoming more of an issue.
Profit margins in the U.S. plastics industry are typically around
4 percent. Costs are of critical importance to a company in a low
profit margin industry.
Five energy audits were completed as part of the
one-year study. The following chart shows the average breakdown
of energy use within the industry.
Energy costs make up between 1 and 5 percent of
total costs to a plastic company. Appropriate energy conservation
measures provide the plant manager with risk-free cost reductions
that increase profits. Energy conservation measures are worth considering
since, appropriate energy conservation measures are good financial
investments. In some cases they can result in internal rates of
return exceeding 100%.
Air compressor-related energy conservation measures
offer the best return on investment The aggregate Internal Rate
of Return (IRR) measure is calculated to be 6 percent at five years
and 25 percent at the ten year duration mark. For energy conservation
measures most likely to be adopted (those with paybacks of two years
or less) the internal rate of return varies from 19 percent to 100
percent.
Metal Fastener Manufacturing
Following the Plastics study, ERC continued its investigation of
energy conservation in the industrial market by pursuing the Metal
Fastener Manufacturing industry (SIC 3452). The metal fastener industry
in Illinois is significant. Illinois is home to 151 metal fastener
plants representing 16 percent of the 941 metal fastener plants
found across the country.
Five energy audits were completed as part of the
one-year study. The following chart shows the average breakdown
of energy use within the industry.
Metal fastener plants typically use about half
of their electric consumption for machine drive, although the audited
plants in Illinois used between 70 and 80 percent. Process Heating
by the industry consumes about 13 percent of all electricity. Industries
in most other materials fabrication activities have less over all
demand for electricity.
Audits revealed three general areas where the
metal fastener companies could save energy, installation of energy
efficient motors, installation of natural gas-driven air compressors,
and installation of up-to-date lighting fixtures. The audited plants
did not use natural gas in any production processes so the energy-saving
recommendations focus on ways to reduce electric consumption. Recommendations
with regard to maintenance and system reliability were also included
as part of the study.
For more information on The ERC's work with the
plastics industry or with the metal fasteners industry, contact:
Andrew Sheaffer,
Research Engineer
Tel. (312) 413-3615
Email sheaffer@uic.edu
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