Assessment of On-Site Power Opportunities in the Industrial Sector; TOPICAL

The purpose of this report is to identify the potential for on-site power generation in the U.S. industrial sector with emphasis on nine industrial groups called the ''Industries of the Future'' (IOFs) by the U.S. Department of Energy (DOE). Through its Office of Industrial Technologies (OIT), the DOE has teamed with the IOFs to develop collaborative strategies for improving productivity, global competitiveness, energy usage and environmental performance. Total purchases for electricity and steam for the IOFs are in excess of$27 billion annually. Energy-related costs are very significant for these industries. The nine industrial groups are: (1) Agriculture (SIC 1); (2) Forest products; (3) Lumber and wood products (SIC 24); (4) Paper and allied products (SIC 26); (5) Mining (SIC 11, 12, 14); (6) Glass (SIC 32); (7) Petroleum (SIC 29); (8) Chemicals (SIC 28); and (9) Metals (SIC 33)-Steel, Aluminum, Metal casting. Although not currently part of the IOF program, the food industry is included in this report because of its close relationship to the agricultural industry and its success with on-site power generation. On-site generation provides an alternative means to reduce energy costs, comply with environmental regulations, and ensure a reliable power supply. On-site generation can ease congestion in the local utility's electric grid. Electric market restructuring is exacerbating the price premium for peak electricity use and for reliability, creating considerable market interest in on-site generation