Driving efficiency returns
Having carried out an audit and rightsized and connected your assets, you are in a position to drive major efficiency gains across equipment including motors, drives, vehicle fleets, heat exchangers and heat pumps.
These gains can be achieved through discrete asset optimization projects or via an overarching program at plant or enterprise level.
Although capital expenditure will likely be required, there may be opportunities for projects and programs to be significantly self-funded through reductions in energy costs.
Five of the 10 actions listed in the Energy Efficiency Movement’s Industrial Energy Efficiency Playbook are directly concerned with improving the efficiency of equipment and fleets.
These measures generally look to replace existing assets with more efficient ones, upgrading to technologies that have lower losses and can thus reduce emissions.
Action 4: Using high-efficiency motors
The carbon impact
The annual global carbon reductions that could be delivered by 2025 just by using higher-efficiency motors range from 90 to 126 MtCO2e, or up to 0.25% of global emissions caused by human activities. By 2030, these reductions could increase to between 300 and 450 MtCO2e per annum, or up to 0.9% of global emissions. At fleet level, a moderate-ambition replacement program could cut energy consumption from motors 5% by 2025 and 10% by 2030. Under a high-ambition scenario, the reductions could equal 7% by 2025 and 15% by 2030.
Why do it?
If you run an industrial enterprise then around two thirds of your electricity consumption—and your electricity-related carbon emissions--likely relates to powering motors in pumps, fans, compressors and other equipment. If the 300 million-plus industrial electric motor-driven systems operating today were replaced with optimized, high-efficiency versions, worldwide electricity consumption could be cut by up to 10%. The Energy Efficiency Movement estimates the global commercial and industrial sectors could save up to $68.8 billion a year by 2030 from improved motor efficiency and reduced electricity use. Note that many high-efficiency motor-driven systems require the use of a variable speed drive.
Building the business plan
- Allow for up to a 40% price differential between less and more efficient motors.
- Consult equipment suppliers for help in calculating payback times. These can be under a year.
- Assume that any variable speed drives will already be optimally efficient.
- Build a business plan that addresses the oldest and least efficient motors first.
Next steps
- Create an inventory of electric motors in pumps, heating and ventilation systems and so on.
- Assess the sizing and efficiency of your motors. International efficiency (IE) standards for motors range from ‘standard’ (IE1) to ‘super-premium’ (IE4). An emerging IE5 standard has 20% lower losses than IE4.
- Investigate advances in motor technology. A 110 kW IE5 synchronous reluctance motor and drive package, for example, costs a little over $2,000 more than an IE3 package but could deliver more than $75,000 in savings over a 15-year lifespan.
- Ensure any new motor purchases have the highest efficiency possible.
Action 5: Using variable speed drives
The carbon impact
The annual global carbon reductions that could be delivered by 2025 just by using variable speed drives in industrial and commercial applications ranges from 40 to 70 MtCO2e, or around 0.1% of global emissions from human activities. By 2030, these reductions could increase to between 141 and 188 MtCO2e per annum, or around 0.4% of global emissions. At fleet level, a moderate ambition program could cut the energy consumption of electric motor-driven systems by 4.8% by 2025 and 9.6% by 2030. Under a high-ambition scenario, the reductions could equal 6.3% by 2025 and 12.8% by 2030.
Why do it?
Less than a third of industrial drives have variable speeds that adjust the power consumption—and emissions—to the load required. This level could be roughly doubled in most industrial settings, not only cutting electricity costs and emissions but also saving on maintenance and reducing downtime by helping the drives last longer.
Building the business plan
- For maximum effectiveness, a variable speed drive upgrade plan should be carried out alongside a wider high-efficiency motor replacement program.
- Bear in mind not all drives may be suited to variable speed. Get expert advice on upgrading your drive estate.
- Variable speed drive savings and payback times are sensitive to electricity costs, so make sure realistic power price forecasts are built into your plan.
Next steps
- Scope the variable speed upgrade opportunity within your drive estate.
- Investigate likely long-term power pricing trends to model savings accurately.
- Focus upgrade efforts on drives that have variable loads, such as driving fans or pumps, or where torque is largely independent from speed, for example in escalators or hoists.
Action 6: Electrifying industrial vehicle fleets
The carbon impact
Road transport is a clear contributor to climate change and fleet electrification reduces emissions under all scenarios. However, the exact emissions reductions that can be achieved through fleet electrification will depend on a number of variables, such as the emissions intensity of the grid. In 2020, global emissions from heavy trucks and light duty vehicles amounted to 5,068 MtCO2e. A 30% reduction in emissions due to electrification could save 1,560 MtCO2e, or around 2.9% of global emissions from human activities by 2025. At fleet level, electric vehicles (EVs) can cut emissions by about 17% on traditional grids and 30% on electricity from mostly renewable sources. By 2050, the reduction in emissions could amount to 70% under a decarbonized grid scenario.
Note that industrial vehicle electrification is not expected to be a major contributor to decarbonization in the time horizon used in this guide (up to 2030), because of the time it will take for electric heavy goods vehicles to become cost effective and for companies to replace their fleets. In line with IEA estimates regarding EV impacts on the path to net zero, these effects are expected to increase significantly after 2030. Nevertheless, vehicle electrification can already be of value—in financial and emissions reductions terms—for fleets with a significant proportion of light commercial vehicles.
Why do it?
Transportation generally accounts for 30% of global emissions and road transport around 15%. Electrifying fleets cuts these emissions by up to 30% based on today’s cleanest grids. Electrification also reduces other pollutants, allowing access to low-emissions zones, and cuts costs over the lifetime of a vehicle by reducing exposure to volatile fuel markets. Lifetime costs and vehicle downtime are also reduced through lower servicing and maintenance requirements. Beyond the environmental and cost savings, vehicle electrification provides an important social benefit by reducing levels of airborne pollutants. Research shows vehicle exhaust fumes caused 385,000 premature deaths in 2015 alone, at a cost of $1 trillion.
Source: Energy Efficiency Movement, October 2023
Building the business plan
- Check for incentives, which vary by industry.
- Prioritize light commercial vehicle replacement as this will deliver earlier and greater savings than medium and heavy-duty trucks.
- Indicative savings are 1.7% or $2,775 a year for light commercial vehicles, 1.4% or $3,250 for medium-sized trucks and 1.1% for heavy-duty lorries, at 2021 prices.
Next steps
- Acquire data on current age and composition of fleet, plus annual mileage.
- Model savings under standard and accelerated replacement rates.
- Investigate EV incentive schemes and incorporate them into your calculations.
Action 7: Maintaining efficient heat exchangers
The carbon impact Heat exchangers are used widely across the commercial and industrial sectors, in areas such as building heating and air conditioning, refrigeration, and data center and fuel cell cooling, yet they are rarely maintained adequately. Remarkably, this lack of maintenance alone could account for up to 2.5% of global carbon emissions – roughly the equivalent of the entire airline industry. And new heat exchangers can be up to 25% more efficient than old ones. The Energy Efficiency Movement estimates that the replacement of obsolete heat exchangers in industrial and commercial settings could save between 136 and 339 MtCO2 a year, assuming the new equipment remained well maintained.
Why do it? Energy Efficiency Movement research shows that between 271 and 678 megatons of carbon dioxide were emitted in 2019 as a result of unmaintained heat exchangers in industrial and commercial situations. The mid-point was 474 megatons and 83% of this figure was from industrial users. All of these can be addressed simply and cheaply through the implementation of a regular cleaning regime as part of a planned maintenance program. The introduction of a regular cleaning regime would also result in commensurate savings in energy usage and bills. Mid-range estimates point to annual savings of almost $55.3 billion for industrial and commercial users of heat exchangers. How much industry would save on…
Building the business plan
- Bear in mind that significant financial and carbon emissions savings can be achieved without any capital outlay—all that is needed is a review of maintenance contracts and arrangements to ensure heat exchangers are properly maintained.
- As part of standard asset replacement cycles, seek to upgrade old shell-and-tube heat exchangers with plate technology, which can be 25% more efficient.
- See if it is possible to re-use waste heat in other processes, such as space heating. Up to 50% of industrial energy input is lost as waste heat.
Next steps
- Review current heat exchanger maintenance arrangements and audit the efficiency of your existing assets.
- Assess what proportion of your heat exchanger fleet may be due for renewal and/or upgrading.
- Investigate the possibility of using waste heat in other applications.
Action 8: Switching to heat pumps
The carbon impact Heat pumps are extremely efficient, effectively giving back more energy than you put in to operate them. In time, it is likely that all low-temperature and many mid-temperature industrial applications, such as drying and ethylene processing, will use heat pumps.
Given that the pace of heat pump deployment is subject to factors such as the availability of government incentives, our calculations for potential impact are not bound by dates and are set against forecast 2030 emissions for illustrative purposes. At fleet level, reductions will vary significantly, ranging from 1.2% for an application such as wet corn milling to as much as 52% for ethanol dry milling. Why do it? The generation and use of process heat accounts for just over half of on-site industrial energy use. Heat pumps can be used where there is a need for process heat up to 180 C/356 F. More than 95% of process heat generation comes from fossil fuels, so substituting conventional boilers with heat pumps could help with the decarbonization of a significant proportion of on-site industrial energy use. Heat pumps are already widely used in industries such as timber processing, food and drink manufacturing, chemicals and water treatment and supply, so this is a mature technology that is easy to implement. Heat pumps for space heating and cooling are suitable for both retro-fit and new-build, and they can work alongside existing heating systems in a hybrid arrangement.
Building the business plan
- The payback period for heat pumps is under five years for a wide range of industrial applications.
- The shortest paybacks (from 1.9 to 2.2 years) tend to be found in the chemical sector.
- Research indicates around 27% of commercial floorspace currently heated with fossil fuel systems in the United States could be electrified with a payback of less than 10 years.
Next steps
- Check for incentives, which are widely available in many markets.
- Review all enterprise heating needs, including space heating in offices and warehouses.
- Model savings using best-estimate forecasts of future fossil fuel and electricity prices.