Why Is Energy Efficiency Worthwhile? First, let’s look at the logic behind. More than just buzzwords, it makes good business sense for plant managers.
Reason 1: A Cushion for Price Fluctuation
Oil and gas prices fluctuate - a reality we’re all too familiar with. With intense weather in recent years and projections from numerous sources, it’s virtually guaranteed that the price of natural gas will increase over time, yet still fluctuate regularly. By doing more with less, we can give ourselves some wiggle room in times of crisis, ready ourselves for higher prices in the future, and reap more rewards when the price is right.
Reason 2: Benefits for The Earth And The Bottom Line
Energy efficiency ensures better, more responsible use of resources - or, to put it simply, we get more bang for our buck when we produce the same output with fewer inputs. By increasing efficiency, our companies can save funds to be used elsewhere such as expansion, infrastructure improvement and more.
Additionally, less resource use and greenhouse gas emissions are better for the Earth and human health. When plants make a concerted effort to improve energy efficiency, communities are more likely to notice, and we can enjoy better relations with the people around us.
Reason 3: Staying on The Front Lines
The major way to achieve energy efficiency is through equipment upgrades. While this might seem like a big investment in the short term, it’s like writing a check that can be cashed later down the road. Return on investment can happen quickly - and once it does, all we’re doing is saving money and resources.
Additionally, in an ever-evolving industry like this one, it’s easy to wake up one day and feel that our equipment is a bit dated. By upgrading to the latest and most efficient technologies, we can save money in the long run and ensure that our companies stay on the front lines of innovation in the industry.
Reason 4: Be Another Statistic
Regarding energy efficiency improvements over the last decade, statistics speak for themselves. After Hurricane Katrina devastated the Gulf region in 2005, plant managers were busy seeking solutions to cut costs when oil and gas prices skyrocketed. All in all, by 2007, over 115 plants had completed or begun developing energy-saving projects - and the potential monetary savings identified through DOE Energy Service Assessments in 2006 reached a whopping $485 million. Single plants saw savings between five and 15 percent of their total energy use, and on average, plants saved about $2.5 million annually.
Achieving Energy Efficiency
How can we realize the benefits of energy efficiency? Here are some ways, the first tried and true and the second a cutting-edge option for the near future:
The Present: There have been several incredibly successful cases in which plants have saved 11 to 13 percent of natural gas costs by improving boiler efficiency and reducing steam demand. The plants achieved this by installing direct-contact water heaters and modifying feedwater heat recovery systems, as well as using No. 2 fuel oil for backup for a better utility rate.
The Future: The DOE is working on a hybrid solar/gas system that increases energy efficiency even more and reduces carbon emissions from natural gas plants. For plants in sunny areas, this technology has the potential to increase operating efficiency by 20 percent.
Energy efficiency is the future, and it’s beneficial for all involved. As plant managers, it’s time we make time for efficiency. To find out more on how we can help, give us a ring!