DOE and Dow Join Forces to Save Energy Now
From the Spring 2006 issue of Energy Matters
For the past decade, Dow Chemical Company has been making energy performance improvements that save a substantial amount of money as well as energy. Dow set a goal in 1994 to improve its energy use by 20% by 2005. The company exceeded that goal, reducing its overall energy intensity by 22% last year. That translates to cumulative savings of over 900 trillion Btu and more than $4 billion.
So why is a company with a well-established energy management program like Dow's participating in the U.S. Department of Energy's (DOE) Save Energy Now initiative? Both Dow and DOE have a common energy management goal—to lead by example.
"We operate in a global marketplace in which competitors have access to energy and raw materials at a fraction of U.S. costs," says John Dearborn, Global Vice President for Energy at Dow. "In this environment, energy efficiency is critical to the global competitiveness of any energy-intensive manufacturer. By participating in the DOE assessments, Dow aims to lead by example among other industrial energy consumers. Energy efficiency is a win-win for the environment and the economy." He adds that all American energy consumers need to be part of the solution.
Through a strong corporate energy management program, Dow has reduced its energy intensity by more than 20% in about 10 years (data courtesy of Dow Chemical Company).
Beginning with Energy Efficiency
Energy efficiency at Dow began with the company founders, when Herbert H. Dow teamed with George Westinghouse to develop one of the first generators for industrial cogeneration, improving a manufacturing process that depends heavily on the efficient use of energy. Energy efficiency is still important at Dow, because the company uses petroleum and natural gas as fuel and raw material for thousands of products considered to be essential to our daily lives, such as plastics, automobile tires, home insulation, and pharmaceuticals.
Today, Dow has annual sales of $46 billion and employs 42,000 people worldwide. Because of its size and scope, it is one of the largest consumers of energy in the United States.
"Dow aims to lead by example among other industrial energy consumers."
—John Dearborn,
Global VP for Energy, Dow
Becoming an Industry Leader
Effective energy management continues to be a top priority at Dow, which has set an even more aggressive energy management goal for 2015 than the one for 2005. Overseeing Dow's energy management program is Joe Almaguer, Global Energy Efficiency Leader at the Dow Energy Systems Technology Center in Texas.
Almaguer leads energy efficiency teams and networks throughout the company to identify energy-saving improvement opportunities, develop long-term plans, and implement efficiency and conservation projects. That kind of strategic energy planning has enabled Dow to achieve substantial energy savings over the last decade. Among the actions taken were upgrading and optimizing power plants and manufacturing facilities, minimizing process waste, using energy-efficient manufacturing technologies where practical, and increasing energy capture from by-products such as hydrogen.
Almaguer recognizes the connection between Dow's goals and the DOE resources that can help achieve them. "DOE has put a lot of effort into developing energy best practices for industry," Almaguer says. "We have knowledge and tools. DOE has knowledge and tools. It makes sense that we collaborate and work together to continue to improve energy efficiency, not only in our manufacturing facilities, but in the industry as a whole."
Forming a Partnership with DOE
DOE's Industrial Technologies Program (ITP) launched its Save Energy Now initiative in 2005 to support a DOE national campaign, "Easy Ways to Save Energy," and to improve the energy efficiency of American businesses, factories, and manufacturing facilities.
Almaguer notes that Dow saw an opportunity in Save Energy Now to explore additional avenues to save energy and to advance the company's energy management leadership goals. Dow was one of the first six companies selected for a DOE Energy Savings Assessment (ESA) because of its interest and past success in setting an example in energy management. In the past year, the company hosted a steam system assessment at its Freeport, Texas, facility, and another at the St. Charles, Louisiana, site. In February 2006, a steam system assessment was completed at the South Charleston, West Virginia, site, and additional assessments are scheduled for sites in Freeport and Seadrift, Texas; St. Charles and Plaquemine, Louisiana; and Ludington and Midland, Michigan.
Assessing Energy Efficiency
At the Dow Freeport facility, three areas for improvement were targeted during the assessment: steam generation, steam utilization, and insulation. Experts from the phenol/acetone manufacturing facility, including plant engineers and technicians, attended. The training also included a field visit to view equipment.
A plant model was built using the DOE-developed Steam System Assessment Tool (SSAT). This tool allows analysts to develop approximate models of real steam systems. SSAT can then be used to quantify opportunities for energy, cost, and emissions savings.
During the assessment, various steam processing projects were evaluated. These included steam generation and acquisition options as well as improvements in steam venting. Recommended improvements included replacing the plant's steam turbine with an electric motor to reduce venting and improve boiler efficiency. The potential energy cost savings were estimated at $508,000 per year.
Hosting Groundbreaking Training
Between October 2005 and February 2006, Dow worked with DOE to pilot innovative methods of enhancing delivery of ITP BestPractices training through directed Webcasts. During the Web cast training sessions for Dow, DOE representatives demonstrated the software tools used to assess opportunities for savings at energy-intensive industrial facilities.
More than 200 Dow engineers, representing sites throughout the United States and elsewhere, participated in the 14 Webcast sessions. The ITP BestPractices tools demonstrated included these:
- Plant Energy Profiler (ChemPEP)
- Steam Systems Tool Suite
- Process Heating Assessment & Survey Tool (PHAST)
In addition to participating in the Webcast series, Dow will host two 1-day, in-depth steam system assessment training sessions this year, conducted by DOE in Freeport, Texas, and at Union Carbide St. Charles Operations sites in Hahnville, Louisiana.
"By hosting these training sessions in Freeport and at the St. Charles Operations sites, we will be bringing the sessions right into the heart of where industry folks are located and drawing in not just Dow but the surrounding industrial community members," Almaguer says. "This makes it more convenient and less expensive for those interested in participating to learn how they can reduce energy consumption at their manufacturing sites."
Incorporating Energy Management
DOE's experience in working with large companies like Dow has led to guidelines on leadership in energy management best practices. Those best practices are captured in Dow's corporate energy management (CEM) program.
CEM refers to best practices that place the accountability for a company's energy management at the corporate level, rather than at the level of plant managers and engineers. CEM takes a synergistic approach in that it involves many areas of business activity, including accounting, marketing, and other areas not traditionally concerned with energy management. You can read more about how to save energy with a corporate energy management program by visiting ITP's BestPractices Corporate Energy Management Web page. (PDF 407 KB) Download Adobe Reader.
Like Dow, which is leading by example to save energy and money, you can also help to set the pace for a company-wide approach to energy management. Here are additional recommendations and resources to help you get started.
- Learn about plant energy assessments
- Take advantage of ITP BestPractices resources to improve your plant's energy efficiency
- Review ITP BestPractices case studies to learn how other companies are achieving successes
- Partner with ITP to create greater awareness or host events to Save Energy Now
- Sign up for a Webcast or a training session near you.
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