Energy conservation and efficiency improvement is the preferred way to reduce costs and emissions in the industrial field

1. The independent report "Handbook on Energy Efficiency in Industry" highlights 10 current initiatives to help the industrial sector to save energy and increase efficiency

2. Energy efficiency will significantly reduce energy costs and emissions in the short and medium term while ensuring productivity

3. Industry is the world's largest consumer of electricity, natural gas and coal, accounting for 42% of total electricity demand

With rising energy costs and climate issues becoming more urgent, businesses around the world are under pressure like never before. A new report from the Energy Efficiency Initiative shows that improving energy efficiency in the industrial sector is one of the fastest and most effective ways for companies to reduce energy costs and greenhouse gas emissions. Energy Efficiency Action is a global forum of around 200 companies and organizations to share insights, best practices and commitments towards a more energy-efficient world.

Energy conservation and efficiency improvement is the preferred way to reduce costs and emissions in the industrial field

Kevin Lane, Senior Program Manager for Energy Efficiency at the International Energy Agency, said:

Energy efficiency is a win-win for both business and the climate. While industry needs to address climate change on all fronts, such as increasing the use of renewable energy, investing in low-carbon processes, and developing circular business models, energy efficiency as a business-focused opportunity has the best prospects for short-term emissions reductions. The 10 initiatives covered in this report are known to be cost-effective resources that can be deployed quickly and at scale, helping businesses turn climate ambition into tangible action.

According to the International Energy Agency, industry is the world's largest consumer of electricity, natural gas and coal, accounting for 42% of total electricity demand, equivalent to more than 34 exajoules of energy. 1 Among the world's five largest energy consumers (United States, China, India, Russia and Japan), the steel, chemical and petrochemical industries are the largest energy consumers. In the current inflationary environment, this type of energy consumption comes with high costs. According to the International Energy Agency, these energy consumption also generated 9 billion tonnes of carbon dioxide emissions, equivalent to 45% of total direct end-user emissions in 2021.

Respondents to the report include ABB, Alfa Laval, DHL Group, the International Energy Agency, Microsoft and ETH Zurich. They made a wide range of recommendations, including conducting energy audits and sizing industrial equipment to avoid wasted energy. Migrating data from on-premise servers to the cloud can save around 90% of the energy consumption of IT systems. 2 Accelerating the transition away from fossil fuels through the electrification of industrial fleets, the conversion of gas boilers to heat pumps, or the use of well-maintained heat exchangers can also help improve energy efficiency.

Further initiatives include installing sensors and real-time digital energy monitoring systems to find "ghost assets" that also consume electricity in standby mode, while digital twins can simulate energy efficiency without interrupting production. Adopting smart building solutions to control power systems, lighting, blinds, and heating, ventilation, and air conditioning (HVAC) systems will also help industrial facilities achieve energy savings.

The report also recommends:

The installation of a frequency converter can increase the energy efficiency of the motor drive system by up to 30 percent, resulting in immediate cost reduction benefits. Global electricity consumption could be reduced by up to 10% if the more than 300 million industrial motor drive systems currently in operation were replaced with optimized, high-efficiency motors.

Existing energy-efficiency solutions can help the industrial sector mitigate climate change and reduce energy costs without impacting performance and productivity. With the advancement of energy-saving and efficiency-enhancing technologies in recent years, the potential for improvement in the industrial sector is huge and mature. This important report points out ways for business leaders to reduce energy use and reduce energy costs while ensuring continued operations, beyond cost savings through shutdowns.

NOTE: THE INDUSTRIAL ENERGY EFFICIENCY HANDBOOK IS JOINTLY PRODUCED BY THE ENERGY CONSERVATION AND EFFICIENCY ACTION, AND THE COPYRIGHT AND INTERPRETATION RIGHTS OF THE REPORT BELONG TO REUTERS EVENTS, 2022.

ABB is a technology leader in electrical and automation that is enabling a more sustainable and efficient future. ABB integrates engineering experience and software technology into solutions that optimize manufacturing, transportation, energy and operations. With more than 130 years of excellence, ABB's approximately 105,000 employees around the world are committed to driving innovation and accelerating industrial transformation.www.abb.com

Energy Efficiency Actions

It is a global initiative that brings together like-minded stakeholders to take innovative action to build a more energy-efficient world. The initiative was launched by ABB in 2021 and has received a positive response from the industry, with around 200 companies joining the initiative as of November 2022.

Energy conservation and efficiency improvement is the preferred way to reduce costs and emissions in the industrial field

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