by Brianna Crandall — September 12, 2012—Industrial facilities managers and energy managers should take note that President Obama signed on August 30 an Executive Order to facilitate investments in industrial energy efficiency intended to strengthen U.S. manufacturing and help create jobs. These efforts to boost industrial energy efficiency, including combined heat and power systems, are expected to save manufacturers as much as $100 billion in energy costs over the next decade, as well as reduce energy consumption and harmful emissions.
While manufacturing facilities have become more energy efficient over time, there is an opportunity to accelerate and expand on this trend with investments that reduce energy use through more efficient manufacturing technologies and processes, including expanding use of efficient, on-site heat and power generation, known as combined heat and power.
The Executive Order also establishes a new national goal of 40 gigawatts of new combined heat and power capacity by 2020, a 50 percent increase from today. Meeting this goal would reportedly save industrial energy users $10 billion per year, result in $40 to $80 billion in new capital investment in manufacturing and other facilities that would create American jobs, and would reduce emissions equivalent to 25 million cars.
In addition, the Executive Order directs the U.S. Environmental Protection Agency (EPA) and the Departments of Energy, Commerce, and Agriculture to coordinate actions at the federal level while providing policy and technical assistance to states to promote investments in industrial energy efficiency. The Executive Order also directs agencies to foster a national dialogue through ongoing regional workshops to encourage the adoption of best practice policies and investment models.
