PART III: INDUSTRIAL ENERGY EFFICIENCY MANAGEMENT



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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy PART III: INDUSTRIAL ENERGY EFFICIENCY MANAGEMENT

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy This page in the original is blank.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy INDUSTRIAL ENERGY EFFICIENCY STRATEGIES: INTEGRATING THE GOALS OF INDUSTRIAL COMPETITIVENESS, ENERGY EFFICIENCY AND ENVIRONMENTAL PROTECTION: CASE STUDY FOR METALLURGY Jan Szargut Polish Academy of Sciences Technical University of Silesia Gliwice, Poland ABSTRACT The main causes of the excessive consumption of energy are discussed: the thermodynamic imperfection (irreversibility) of production processes, insufficient utilization of waste energy, incorrect exploitation of production and consumption installations, excessive fraction of energy-consuming products in the industrial production and export profile, insufficient utilization of secondary raw materials obtained from used products, and low efficiency of energy consumers (cars, refrigerators, buildings). The influence of energy consumption on environmental problems is also discussed. The main metallurgical processes influencing the consumption of energy and ecological losses are described. Possibilities for improving energy management in the metallurgy industry are presented from the point of view of Polish metallurgy: improvement of recuperation for metallurgical furnaces, installation of waste-heat boilers, utilization of excessive waste heat by external consumers (e.g. for district heating), application of microprocessors for the improvement of processes, widespread introduction of continuous casting of steel, introduction of expansion turbines for blast-furnace gas, and utilization of converter gas. 1. INTRODUCTION The consumption of energy in Polish industry is too high. Among the energy-consuming branches of industry, the most important is metallurgy, which is responsible for the consumption of ~35 % of primary energy used for industrial production. The reduction of energy consumption can create positive economic effects and a decrease in environmental pollution. Every unit of energy consumed results in a direct or indirect increase in the emission of harmful pollutants.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy 2. MAIN FACTORS INFLUENCING THE CONSUMPTION OF ENERGY Seven main factors responsible for excessive consumption of energy are named below. The thermodynamic imperfection of production processes This factor causes the devaluation of energy, i.e. losses of energy quality. Thermodynamic imperfection is inevitable, but it should be counteracted within the limits of economic profitability and technological possibilities. Every energy devaluation expressed, e.g. by means of energy losses, increases the consumption of primary energy. An important method of decreasing these losses consists in the improvement of the structure of energy systems and mainly in the introduction of combined processes enabling us to shorten the chain of thermodynamic transformations. Well-known examples can be mentioned: the cogeneration of heat and electricity, the cogeneration of heat and cold, and the cogeneration of heat and some materials. Insufficient utilization of waste energy The production of waste energy discharged to the environment is also inevitable, especially in thermal processes, but very often the quality of waste energy carriers is sufficiently high and therefore makes possible their additional utilization. Two main utilization methods can be mentioned. The internal utilization for the process delivering waste energy is most effective, because in this case the demand for utilized energy coincides with the supply, and the effects of utilization can be greater than the amount of utilized energy. For example, the fuel energy economy due to recuperation is 3-4 times greater than the amount of heat transferred in the recuperator. The external utilization of waste energy is more difficult, because the differences between the supply and demand cause a temporary surplus or deficit of the utilized energy. Insufficient efficiency of the consumers of final useful energy (cars, electric lamps, TV receivers, refrigerators, buildings) Efficiency improvements at the point of energy use can bring about a great energy economy. However, financial requirements associated with the mass production of improved products are substantial. Inefficient operation of production and utilization appliances The quality of operation can be improved by better training of the staff, by better organization of the production processes, by introduction of microprocessors controlling the operation, and by means of financial incentives for correct management.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Excessive consumption of materials in production processes The production of all materials is accompanied by an immediate and indirect energy consumption. Two aspects should be taken into account: an excessive amount of materials contained within the finished product and an excessive amount of waste material appearing during the production processes. The content of materials in finished products can be reduced by better design and by the application of better materials. Production wastes can be decreased by means of changes in the production technology and by means of the recycling of scrap material. Economy in the processing of materials can create a huge indirect energy economy. Insufficient utilization of recycled materials obtained from discarded products Recycled products should be regarded as renewable sources of materials and energy. Their utilization can distinctly decrease the consumption of energy associated with the production of some materials (e.g. of aluminum, paper, steel, etc.). Incorrect structure of industry resulting in excessive fabrication of energy-consuming products Excessive production of products such as steel and coke can mainly be caused by two factors. The first is military production. The second is the insufficient quality of industrial products. If a country does not produce competitive industrial products, fit for export, it is forced to deliver for export energy-consuming materials and semi-finished products that are eliminated from the production in developed countries, mainly because of ecological reasons. 3. ENVIRONMENTAL IMPACT OF THE ENERGY CONSUMING PROCESSES Production processes form a complicated network of mutually connected technological processes. The emission of deleterious waste products appears in all the links of the technological network. Hence undesirable ecological effects resulting from the fabrication of a particular product appear not only in the last step of the production process, but also in the preceding steps, especially those producing energy carriers (production of electricity, heat, secondary fuels). The cumulative indices of deleterious emissions burdening a particular product can be calculated (1) by means of a set of balance equations, or (2) by means of the sequence method, analyzing the subsequent steps of production processes, backward from the ready product to the primary raw materials and fuels. All the effects of energy conservation should be analyzed by means of cumulative indices, because only in this way are all the effects taken into account.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy 4. POTENTIAL FOR REDUCTION OF ENERGY CONSUMPTION IN POLISH METALLURGY Improvement of recuperation Utilization of combustion gases from industrial furnaces for the preheating of combustion reactants is one of the most effective methods of energy conservation. The amount of the economized chemical energy is 3-4 times greater than the amount of the transferred heat. This effect results from a simultaneous reduction of the temperature and of the amount of combustion gases discharged to the environment. The analysis of the state of recuperation in the Polish metallurgy and machine-building industry has been presented in [1]. About 30 % of operating recuperators do not warrant any economical effect because of their fouling and leakage of flues. About 50 % of recuperators are smaller than the optimal size. The improvement of recuperation could warrant an additional energy conservation at the level of 4500 TJ/year. For the improvement of recuperation the following would be desirable: introduction of a modular design of steel-tube recuperators and the elaboration of typical modules, establishment of a specialized manufacturer producing modules of steel-tube convection recuperators and typical radiative recuperators, and elimination of technically unjustifiable leakage of furnaces and flues. The heat transfer area in recuperators is limited mainly by the disposable chimney draft. The size of recuperators can be increased if forced draft is introduced [4]. The combustion gas fan can be protected from too high a temperature by means of recirculation of combustion gases ( Fig. 1 ). Increased fuel economy and economic effect could be obtained in this case. If the volume of the recuperator were too great (e.g. in the case of the utilization of combustion gases from Cowper stoves, with the temperature 175-350ºC), an indirect heat transfer to the combustion air can be applied by means of an intermediate heat carrier, e.g. oil. Instead of one great recuperator, two more convenient smaller heat exchangers can be installed in this case. Also, the long-distance transmission of heat recovered from combustion gases can be realized by means of an intermediate heat carrier, e.g. oil. Autonomous preheating of combustion reactants A separate combustion chamber supplied with low-quality fuel can warrant economy of high-quality fuel in the main installation. For example, the calorific value of blast furnace gas is very low in modern processes (~60MJ/kmol). Such a gas cannot be applied in Cowper

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy stoves without enrichment with high-quality fuel. The enrichment would be not necessary after introduction of the autonomous preheating of combustion reactants. The energy economy of high quality fuel would be more than two times greater in comparison with the energy consumption within the autonomous preheater. This method could be also applied for utilization of top gases from shaft furnaces in copper metallurgy. Jet convection chamber for the preliminary preheating of the rolling charge This type has been introduced in western and Japanese steel plants ( Fig. 2 ). Owing to the installation of a combustion gas fan, this system also enables us to increase the size of a recuperator. The charge is usually preheated to 150-220ºC, and the attained fuel economy is 8-12 %. The jet chamber can be applied not only for the sake of fuel conservation, but also for technological reasons if the heating furnace is supplied simultaneously with cold and hot charge. The equalization of the initial charge temperature is more important than the fuel conservation, because according to our calculations [5] a similar economic effect of fuel conservation can be attained by means of an increased size of a recuperator with a forced draft ( Fig. 1 ). Installation of waste-heat boilers This is reasonable only in the case when the internal utilization of waste heat to meet the needs of the analyzed process is not possible or not sufficient. In iron metallurgy, a waste-heat boiler may be installed for the open-hearth furnaces, steel converters, sinter plants, heating furnaces, and cooling of hot rolling products. Important possibilities also appear in copper metallurgy for anode and cathode smelting furnaces. In this case, waste-heat boilers should be installed between a furnace and a recuperator because it causes solidification of liquid dust in the radiative chamber of the boiler. Usually the heat carrier produced in waste heat boilers cannot be fully utilized within the metallurgical plant. The heat carrier from waste-heat boilers can be utilized in a district heating system, but in this case the demand for heat depends on the season of year. In Japanese steel plants the excessive steam from waste-heat boilers is utilized in a central power plant for electricity production. Waste-heat boilers can supplement utilization of combustion gases from heating furnaces, because the temperature of combustion gases at the outlet of recuperators is usually more than 400ºC. One waste-heat boiler can be installed for more than one furnace in this case. For the Polish metallurgy plants, a typical design of waste-heat boilers would be desirable. The introduction of new applications of waste-heat boilers, e.g. for cooling of the hot rolled charge, would be of interest. Evaporative cooling of furnace elements These have been introduced mainly for open-hearth furnaces, but these furnaces are being phased out. The attempts to introduce evaporative cooling of elements of blast-furnace have not given any positive results. Evaporative cooling of skid rails in pusher furnaces can offer good effects.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Continuous casting of steel Continuous casting reduces significantly the energy consumption in steel plants, because it eliminates the soaking pits and the blooming mill with their great energy consumption. The broader introduction of continuous casting is very important for modernization of Polish metallurgy. Utilization of converter gas In the largest Polish steel plant, the steel converters are equipped with relatively small waste-heat boilers because the utilization of unburned converter gas has been planned. However, the installation of converter gas storage has not yet successfully operated. In this case the utilization of the converter gas could bring about the conservation of 5-8 % of gaseous fuels delivered to the mentioned plant. Expansion turbines for blast furnace gas An elevated pressure inside the blast furnace warrants the increased capacity of the process, but throttling of blast furnace gas implies an unnecessary energy loss. Also, in a Polish steel plant an elevated pressure occurs in blast furnaces, but expansion turbines have not yet been introduced. The most interesting possibilities are wet turbines not requiring any preheating of the gas before expansion. A system of dry dust precipitators and dry turbines is also very interesting, because it does not decrease the gas temperature during the dust extraction. Such a system with bag filters operates in Japan [2]. The initial gas temperature before expansion amounts to 100-150º C, and the power of the dry expansion turbine is 40-50 % greater in comparison with a wet turbine. Air enrichment with oxygen for heating furnaces Enrichment can be profitable if an excess of oxygen appears in the plant. Because of the application of oxygen in blast furnaces, some excess oxygen production capacity can appear. Full utilization of the production capacity results only in slight increase in operating costs. Hence the cost of the excess oxygen can be relatively small, and the conservation of fuel in heating furnaces by means of air enrichment can be profitable. Improvement of management of metallurgical furnaces This is very important from the energy conservation point of view as well as cost reduction and environmental protection. Three main conditions should be fulfilled for this purpose:

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy improvement of the technical state of furnaces, e.g. elimination of unjustifiable leakage, better equipment with measurement instruments, and better preparation of the staff, and sometimes a change of its mentality. German experience has shown that the systematic checking of furnace operation brings about the conservation of ~10 % of fuel use. The next step should be the introduction of microprocessors for reasonable regulation of fuel distribution between the zones of continuously operating furnaces or between the phases of periodically operating furnaces. Also important is the regulation of the air-fuel ratio, regulation of the pressure inside the furnace, etc. 5. CONCLUSIONS The goals of industrial competitiveness can be attained by means of reduction of production costs without harming product quality. The production costs should include reasonably estimated costs of environmental damage. In the Polish metallurgical industry, there are many possibilities to improve energy management that will be economically and environmentally advantageous, but these improvements need great capital expenditures. It should be stressed that the problem of energy conservation should have priority over installation of pollution control equipment at energy conversion plants because the reduction of energy use is always accompanied by reduced emission of pollution.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy REFERENCES 1. Evaluation of the operating recuperators and comparative analysis (in Polish)—research report of the Institute of Thermal Technology of the Technical University of Silesia, Gliwice, 1983. 2. Matasaka S., et al.: Dry-type top pressure recovery generating plant. Trans ISIJ 23 (1983), B-156. 3. Szargut J.: Thermodynamic and economic analysis in industrial energetics (in Polish). WNT, Warsaw 1983. 4. Szargut J., Koziol J.: Recuperators with a forced draft. Gas-Wärme-International (in press). 5. Szargut J., Zientek A.: Optimization of the waste-gas jet chamber and recuperator for the continuous heating furnace. Archiwum Hutnictwa (in press). 6. Szargut J.: Strategy of the improvement of energy management (in Polish). Energetyka 1991, No 9, 309/313.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Fig. 1. Recuperator with forced draft and recirculation of combustion gases Fig. 2. Heating furnace with convection jet chamber

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy choice from existing technical options. It is distinct from new technology development. Industrial energy conservation programs focus primarily on choosing from available technology options. Efficiency improvement is driven by two distinct forces: technological progress, which is the long-term trend, and cost optimization, which is the short term response to price swings. 3. TECHNOLOGICAL PROGRESS Thermodynamic limits—setting the targets For every process we can compute a theoretical work requirement. The ratio of this to the actual work potential consumed is the true thermodynamic efficiency. This calculation tells us that even for the “best” processes, the thermodynamic efficiency is remarkably low. For example, the efficiency of producing oxygen by separating it from air is 20-30%, and the efficiency of producing ethylene, the prime petrochemical building block, is 15-25%. These low efficiencies provide the margin from which gains are carved . Tracking energy intensity's fall Data align fairly well with thermodynamic efficiency. Those with more margin for improvement like chemicals and paper have shown more improvement [4]. Improvement in energy intensity 1972-1985 (% per year) steel 2.10 chemicals 3.40 paper 4.70 petroleum 2.50 Learning curves—growing our way to lower energy intensity Most technological progress in the industries which dominate energy use, such as the ones cited above, comes as a series of small steps and small decisions. This is broadly referred to as “learning”. In most manufacturing processes, for each doubling of cumulative production, total processing costs, including energy, drop by about 20%. Often energy savings are merely a byproduct of changes made to improve quality or safety, to increase productivity, or to reduce emissions. This relation has been found to hold for processes as diverse as aircraft manufacture and the production of polyethylene.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy The learning curve does not depend on increasing energy costs. For example, as shown by Fig. 1, substantial gains in energy efficiency were made during the 1950s and 1960s with energy prices flat and in some cases falling. Figure 1 follows a key commodity, ethylene, and tracks the energy efficiency of new plants offered by The Lummus Company, an engineering contractor (5). The gains trace to a mix of sources, for example: more efficient turbines and compressors from suppliers, adjustment of the purification sequence by engineering contractors, improvements in computerized control by operating companies, and more heat recovery everywhere, by common consent. The net result was a 60% drop in energy use in new facilities over a 35-year period. Note that despite the large efficiency gains, a major opportunity for improvement remains; energy use is still about four times the thermodynamic minimum. The driving force behind “learning curve” progress is the desire for a competitive advantage, i.e. lower cost, economic efficiency. Energy efficiency is one component of economic efficiency, but it is rarely a dominant one. For the overall manufacturing sector, capital and labor costs are roughly 20 times as great. A key element in “learning” is a growing industry, one that replaces old facilities and offers continual opportunities to test improved technology. If one inputs the 20% “learning rule” to a spreadsheet and looks at expected yearly cost reduction, growth rate turns out to be as important as age: Cost Reduction (% per year)   Year from start Growth Rate 10.00 20.00 30.00 50.00 3 % 4.00 2.30 1.70 1.30 6 % 4.50 3.10 2.40 2.00 9 % 5.10 4.10 3.20 2.90 12 % 5.70 5.20 4.10 3.80 A factor in the ethylene success story is its high (5% to 10% per year) growth through most of the 1955 to 1990 period.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy An example of how scientific discovery interacts with “learning” is polyethylene. Polyethylene began its commercial life in the early 1940s with a very high-pressure (1200 atmospheres) process. The high-pressure process saw continual improvement such that the energy required to produce a pound of polyethylene was cut in half in about 25 years. Meanwhile, two European chemists made some fundamental discoveries that led to a radically new production process that utilized a solvent and operated at low pressure. This in turn led to Union Carbide' s development in the 1970s of the low-pressure gas-phase process. It uses only 15% of the energy of the original high-pressure process. The new process is simpler, much lower cost, and safer. It even yields a stronger polymer. Sometimes the “learning curve” progress is really the byproduct of major scientific discovery in unrelated areas. Quantum physics and the invention of the transistor led to microprocessors and modern computers. The industrial fallout is extremely broad. Low-cost microelectronics permits more efficient industrial control systems as diverse as robots in laboratory analysis and excess air measurement in furnaces. Perhaps more important, it revolutionized industry's capability to explore for better processes. In the ethylene process improvement example above, engineering contractors assigned much more credit to enhanced calculation capability than to all bench scale R&D. 4. COST OPTIMIZATION A Trade of Capital for Energy Industry chooses its processes and products largely on the basis of cost. Energy is just one of the cost components, with capital equipment being a component that it can be traded against. If one spends more on equipment, less energy is needed. The curves that plot the overall cost of a production process versus energy use are gentle in the region of the optimum. (See Fig. 2.) Thus a great deal of trading can occur with relatively small impact on total cost. As the price of energy goes up, industry is driven by logic to substitute capital. This is a major cause of the efficiency gains we saw in 1975-1985. When energy prices rise, as currently is happening when the former Eastern Bloc countries move to a market economy, this pattern repeats. This is optimization within existing technology. The trade between capital and energy is surprisingly clearly defined for certain kinds of operations. For example, a four-fold rise in the relative price of energy will cause the following reduction in energy use, assuming the owners adjust their design to the economic optimum [6]: Unrecovered energy in heat exchange 50-75% Distillation reflux above the minimum 50-60% Piping pressure drop 70%

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy At first glance Figure 2 is puzzling. Note that between half the optimum pressure drop and twice the optimum the total price stays within a few percent of that at the optimum. The reason for this is that for an optimum piping system, the annualized energy cost for piping pressure drop is only about 1/7 the annualized cost of the pipe. Piping is an extreme case of capital cost dominating energy cost. However it illustrates one of the reasons why there is a long timelag in industry's adjustment to energy price increases. The energy saving would easily justify the incremental cost of going to a larger pipe size in a new facility —but it would not justify the cost of replacing the existing piping system in an existing plant with a slightly larger one. Industry is constrained by existing facilities and can only economically change them as a part of orderly capital replacement. What Happpened in the Late 1970s and Early 1980s in U.S. Companies? Historically U.S. companies have not had “energy conservation programs.” Energy conservation was just part of expected good design. Saving energy was no different than reducing maintenance costs or labor costs. In general, industrial facilities are dominated by capital costs (which includes maintenance and depreciation), and hence it receives most of our attention. What we saw in 1974 and again in 1979 was a sudden increase in energy costs. What this meant was that our designs were no longer close to optimum and a major readjustment was needed. Energy efficiency improvement became a major focal point for most large industrial firms. Separate staff groups were created. Site energy coordinators were designated. Energy workshops were held for the coordinators. Special energy courses were created and widely taught within companies to bring the broader engineering team on board. Special energy reviews were held on all projects. Energy improvement and energy capital reporting were set up as routine activities within different divisions. A competition developed with those divisions that showed little improvement and little effort receiving “negative grades”—or at least receiving little praise. The result of all this was that energy projects took on a special meaning in both the engineering and management communities. Projects that didn't meet financial hurdles were not approved, but the willingness to “push out the envelope” and take some technical risks was much higher. The engineering contractors responded with a mix of technology for facilities that would be cost competitive in the high energy price environment of the next decade. Much of this technology was latent from the prior decades of low energy prices, but some was fresh and developed as a result of new tools like low-cost computer simulation of processes. Equipment suppliers also saw energy efficiency as the battleground and responded. Some of the response was obvious, for example more turbine stages. Other reaction was less so, like the substitution of carefully structured sheet metal to replace perforated trays in distillation columns.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy REFERENCES 1. “Process Energy Conservation,” D. E. Steinmeyer , in Kirk Other Encyclopedia of Chemical Technology, Supplement Volume pp. 669-697 , John Wiley , 1984 . 2. Energy Conservation in the Process Industries, W. F. Kenney , Academic Press , 1984 . 3. “Learn From Energy Conservation,” D. E. Steinmeyer , Hydrocarbon Processing, August, 1990 , pp. 57-59 . 4. Energy Efficiency: How Far Can We Go?, R. G. Carlsmith , W. U. Chandler , J. E. McMahon , and D. J. Santini , Oak Ridge National Laboratory , U.S. Dept. of Energy , 1990 . 5. Personal communication , Charles Sumner , The Lummus Company , 1990 . 6. “Take Your Pick: Capital or Energy,” D. E. Steinmeyer , in Chemtech , March 1982 , pp. 188-192 .

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Fig. 1 Ethylene plant competition has traditionally been fought by the engineering contractors in the area of low energy per pound of ethylene. This competition has produced a dramatic reduction in use as shown by the curve above (based on The Lummus Company).

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Fig. 2 The shape of the total cost curve is very ‘gentle' near the optimum--the low point on the curve. The shape of this curve depends on the ratio of energy costs to capital costs. For piping the ratio is extremely low (about 1 to 7). The result is the low impact of energy optimization on total cost, shown above.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy U.S. ELECTRICITY TECHNOLOGIES John F. Kaslow Electric Power Research Institute Palo Alto, California, USA ABSTRACT The subject of U.S. Electric Technologies is a broad one since it encompasses existing supply, delivery, and end-use technologies as well as emerging and transitional technologies. This paper focuses on the Electric Power Research Institute's efforts in efficiency and productivity improvements in the total electric system and its attempts to broaden the array of options. Though efficiency and productivity are not truly synonymous, they are quite closely related in many respects, and both have significant economic and environmental implications for the electric system. I would like to introduce two additional thoughts at the outset: (1) technology, in my view, will be the fuel to drive the engine of a sustainable energy future, and (2) electricity will play an increasingly important role in meeting total energy needs in a manner most compatible with protecting the global environment. 1. THE ELECTRIC POWER RESEARCH INSTITUTE (EPRI) EPRI is a voluntary, nonprofit research organization founded almost 20 years ago to undertake collaborative research for the electric utility industry in the United States. Participation is broad based with some 680 member utilities, ranging from very large to quite small. In 1991, EPRI membership represented roughly 70% of the electric energy sold in the U.S. EPRI's mission is to discover, develop, and deliver advances in science and technology for the benefit of its member utilities, their customers, and society as a whole. EPRI's research is conducted in six major divisions: Generation and Storage, Nuclear Power, Environment, Electrical Systems, Customer Systems, and Exploratory Research. This paper focuses on only a small portion of that research. I would also mention in passing a new dimension of EPRI that may be of future interest to electric utilities beyond the U.S. To date, EPRI's R & D efforts have been undertaken principally for and with results generally available only to U.S. utilities who support the research through their annual dues. For a limited number of special projects and programs, specific research results have been available to utilities outside the U.S. based on various cost-sharing and other in-kind arrangements. Interest in broader participation expressed by some offshore utilities led to recent approval by the EPRI board of a Pilot International Affiliates Program, under which up to five non-U.S. utilities could participate in

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy one or more of EPRI's strategic program areas for a three-year period. After three years, the merits of this approach will be evaluated. Specific comments in the next sections focus on technologies aimed at improving efficiency and productivity in the three major segments of the electric system: supply, delivery, and end use. 2. ENERGY SUPPLY For at least the next 50 or so years, the United States and the world must realistically depend on a fossil fuel-based energy economy. The issue is not whether coal and other fossil fuels will be used, but rather the efficiency of the technology for their use and how rapidly we can increase reliance on alternative energy sources. One major component of the EPRI R & D program deals with the existing fleet of generating units, and a number of EPRI research programs are directed at improving the efficiency and productivity of existing power plants—fossil, nuclear, and hydroelectric. The design limits of existing plants place boundaries on efficiency. The impediments to achieving design efficiency include new emission control requirements, limitations on operating steam temperatures, turbine deterioration, combustion inefficiencies, and condenser back pressure deviations. From a productivity standpoint, various equipment problems (e.g. boiler tube failures, emission controls, turbine deterioration) and changing fuel characteristics can, and do, result in less than optimum unit availability. EPRI research results have been instrumental in addressing and alleviating many of these sorts of problems, with research results being applied by many utilities in achieving higher unit efficiencies and availability. As older existing power plants face stringent new emission limits, which otherwise might have caused their retirement, EPRI research is helping to provide repowering options, retrofit emission controls, and methods to assist utilities in converting to compliance fuels. As we look to the new generation, there will be substantial additions of gas turbine capacity, both as peaking units and combined cycle units with some capable of retrofit to gas via future coal gasification. EPRI research is focused on providing higher efficiency, higher availability, larger-sized gas turbine technology. Still farther advanced coal-fired technologies are under research and development, including advanced pulverized coal with heat rates under 8000 BTU (kwh), advanced fluid bed, coal gasification, and natural and coal gas-fueled fuel cells. Many believe that energy and environmental factors will result in a renewal of the nuclear option around the turn of the century. With co-funding from several international utility organizations, EPRI is participating in the Advanced Light Water Reactor program with the U.S. Department of Energy and two domestic suppliers.

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy Interest in renewables has a new impetus based on their environmental advantages. Today roughly 8% of the U.S. energy supply comes from renewables. By 2030 a doubling is likely, and some believe the contribution may be as high as 30 to 40%. EPRI has very active programs in an array of renewables technologies. Energy storage remains a high priority goal. The intermittent characteristics of some of the renewable energy forms (solar, wind) make storage almost a necessity if they are to reach their potential. EPRI has participated in the R&D on a major compressed-air storage demonstration a project that recently commenced operation. Battery development continues, as does research on superconductivity. Success in achieving superconductivity at higher temperatures may lead to the ultimate storage concept. 3. ENERGY DELIVERY Some of the more exciting research work is being conducted in the delivery system area, where there is the potential for significant productivity gains. Roughly 8% of electric energy generated is consumed in the supply system without ever getting to the delivery point. EPRI's pioneering research in lower loss distribution (low-voltage) transformers has led to the amorphous core transformer now being widely introduced across the United States. Similar loss reduction opportunities are being sought in the large high-voltage power transformers. As the value of capacity and energy have increased, utilities are also finding loss reduction opportunities via replacing the conductors in transmission and distribution lines. One of EPRI's most promising pursuits in the delivery area is its FACTS program — Flexible AC Transmission System. This program is founded on the development of solid state, power electronic components to replace much slower acting mechanical devices, and the accompanying high speed and more comprehensive communication and controls will permit higher power flows on existing transmission lines and rights of way. Many of the concepts will also be applicable to the lower voltage distribution systems. Successful completion of this research program will have very significant implications for productivity and efficiency improvements in the electric delivery system. 4. ENERGY END USE Probably no single sector of the total electric system has been the subject of more interest in the past few years than improving the efficiency of the end use of energy. The techniques of shifting electric loads from peak periods to off-peak periods have been under development and in day-to-day use for several years. Moreover, to avoid or defer new supply and delivery capacity, energy (as opposed to capacity) efficiency measures have taken on great significance in recent years. End-use efficiency has become a cornerstone of virtually every energy strategy, and it appears quite clear that a combination of driving

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Poland's Transition to a Market Economy: Prospects for Energy Efficiency and Conservation: Proceedings of the Joint Workshop of the U.S. National Academy of Sciences and the Polish Academy of Sciences on Strategies for Industrial Energy Efficiency and Conservation During the Transition to a Market Economy forces—environmental and economic sustainability—will result in continued emphasis and accelerated interest. EPRI's research spans the spectrum from demand-side reduction (e. g. cool and heat storage and the demand component of end-use efficiency) to improved efficiency of electric end use (e.g. more efficient lighting, motors, variable speed drives, heating/cooling via advanced heat pumps) to beneficial substitution of electricity for other end-use energy forms. In fact, it appears that the wiser use of electricity coupled with the wider use of electricity will offer the best practical opportunity to reduce carbon-based greenhouse gas emissions in the coming century. To date, specific new electrotechnologies, by virtue of their flexibility and efficiency at the point of end use, have been quite successful in process industries (infrared drying, freeze concentration, plasma arc furnaces) from productivity, efficiency, and environmental standpoints. EPRI is devoting considerable effort to research in those potential electrotechnologies which are likely to meet the “beneficial” measure. While I have alluded to end-use efficiency and beneficial electrification in the industrial, commercial, and residential sectors, we also expect to see very significant advances in the transportation sector. The recently formed advanced battery consortium is a very visible manifestation of the seriousness of the effort in the U.S. to produce an electrically powered vehicle option. This is in addition to EPRI's Research and Development program that has culminated in the production and current field evaluation of electric vans. Beyond the electric vehicle efforts, environmentally driven interest in further electrification of mass transportation is likely to intensify in the next decade. My personal sense is that the developments flowing from these efforts will have secondary fall out efficiency and productivity benefits in the entire electric system. 5. CONCLUSIONS I conclude by emphasizing that energy efficiency and productivity are themes so encompassing and pervasive that they will continue to have a profound impact on virtually every aspect of energy technology and on EPRI research.