St Paul, Minnesota July 16, 2015 Advanced Manufacturing: Creating More Goods, Using Less Energy Bruce Hedman Institute for Industrial Productivity

Industry Remains the Largest Energy User in the U.S. 2 The industrial sector : Consumes more energy than any other sector and accounts for ~1/3 of all end-use energy Remains the largest energy user even though industrial efficiency continues to improve Will consume 34.8 quads of primary energy in 2020 (36% of all end-use energy) Will consume 37.9 quads of primary energy in 2030 (38% of all end-use energy) Source: Energy Information Administration Annual Energy Outlook 2014

Delinking Growth and Energy Use 3 GDP Energy Use GDP Energy Use

4 Achieving Efficiency Potential through Energy Management What is an Energy Management System (EnMS)? A suite of procedures and practices to ensure systematic tracking, analysis and planning of energy use in industry EnMS standards: defined by standardization bodies (e.g., ISO 50001) EnMS standards: defined by standardization bodies (e.g., ISO 50001) EnMS specifications: formulated by a government agency EnMS specifications: formulated by a government agency What does an EnMS System Do? Maximizes energy savings and improves energy performance continuously through organization and technology changes at the facility and enterprise level Helps companies overcome informational, behavioral and organizational barriers to energy efficiency

5 Key Elements of Energy Management Systems An EnMS includes: Energy policy Cross-divisional management team A baseline An energy review Energy performance indicators Action plans Internal audits Third party certification …within a Plan-Do-Check-Act framework. Sources: A. McKane (2011), Superior Energy Performance (2011), ISO (2011).