The U.S. Department of Energy is funding university-led programs and partnerships to help manufacturers cut costs and increase energy efficiency.
As the risk of unmitigated climate change continues to spike, the onus is on us all to contain greenhouse gas (GHG) emissions and push for more sustainable energy. With more countries affirming their adherence to net-zero carbon emissions, the U.S. has upped the ante by vowing to run on a 100 percent green energy grid by 2050.
True to this, the Department of Energy (DOE) has announced $42.3 million as funding for American manufacturers to assist them in adopting more energy-efficient practices. Furthermore, the DOE has committed to an additional $60 million in funding for the largest Industrial Assessment Center (IAC) in history. IACs are university-based programs that provide small-to-medium-sized enterprises (SMEs) with detailed reports to help them augment their productivity while limiting their carbon emissions and energy costs. IACs also seek to groom the next generation of energy-efficient engineers, ingraining them with the values of environmentally conscientious manufacturing.
“America’s best and brightest university students are successfully helping local manufacturers reduce pollution, save energy, and cut their electricity bills,” said Jennifer Granholm, Secretary of Energy. “DOE’s university-based Industrial Assessment Centers are assisting small and medium-sized businesses—particularly those in disadvantaged and underrepresented communities—in the transition to a clean energy economy, building the next-generation energy workforce, and propelling America toward a carbon-free future by 2050.”
IACs Foster a Mutually Beneficial Ecosystem
The new IAC comprises 32 universities across the U.S. Established in 1976, the IACs remain one of DOE’s longest-running programs. From the outset, their goal has been to help U.S. manufacturers retain their competitive edge and acquire the necessary skills in workers. SMEs are routinely encouraged to contact the nearest IAC should they wish to receive a detailed evaluation for best practices—at no cost. That said, each SME has to meet the following criteria to be eligible:
- SME must have gross annual sales below $100 million.
- SME must have less than 500 employees at the plant site.
- SME’s annual energy bills must be more than $100,000 but less than $3.5 million.
- SME must be located less than 150 miles from a participating university.
- SME’s staff members will not conduct the assessment.
- SME must be within Standard Industrial Codes (SIC) 20-39.
By implementing the recommendations made in IAC assessment reports, SMEs can streamline their operations and reduce their carbon footprint. The benefits also reflect in their gross annual profits. On average, implementing IAC recommendations helps the SME save around $137,000 every year. In fact, $50,000 of these savings are reportedly attained in the first year alone.
As of August 10, 2021, the program has conducted nearly 20,000 assessments for SMEs and made around 147,000 recommendations. The IACs are spearheaded by two tenure-track faculty members from the engineering department of a participating university. As Center Directors, they oversee daily operations, work closely with participating students, and are responsible for the quality and scope of the energy assessments being conducted. All pre-evaluations and assessments are carried out by either junior or senior year undergraduates, or graduates at the participating university’s engineering department.
Typically, the IAC contacts a representative from the SME who is either the plant manager or head engineer. The IAC requests a copy of the SME’s last 12 energy bills, securitizing its electricity, gas, heating, fuel and water consumption. Aspects such as the SME’s waste management protocols, production practices and operational practices are examined through a blend of detailed questionnaires. Following this, an in-person pre-evaluation team is formed which is headed by the Center Director and consists of around six students.
On the day of the assessment, the IAC team visits the SME, where they gather as much information as they can on the SME’s manufacturing practices, state of equipment used, HVAC systems, and energy and water consumption trends. During the evaluation, the objective is not just to collect information, but to compile a list of potential recommendations to address issues and streamline processes.
The team then pores over all the gleaned data, discussing and analyzing the best way to proceed. The IAC Database is utilized, which contains over 19,000 IAC assessments and recommended energy-efficient projects that can be used as case studies. Students and faculty members reviewing the database can fine-tune their search based on the size, industry sector, energy consumption, product and location of the SME. They can also review different recommendations made via the IAC for similar issues in the past.
Once the assessment report is compiled and submitted to the SME, it is reviewed by directors who set up weekly meetings to critique the validity and quality of the report. Upon revisions and modifications, the report is submitted to the client and uploaded to the IAC Database. Six months after the report is submitted to the client, a telephone survey is conducted with the SME to determine the implementation of the assessment report or the reason for not doing so. During the phone call, the SME is also surveyed for their energy savings estimates since implementation.
The Future of Manufacturing Initiative
In a similar vein, the DOE has launched a $42.3 million funding opportunity to bolster clean energy and reduce emissions in the manufacturing sector. As part of its “Future of Manufacturing” campaign, this initiative will include next-gen manufacturing processes, development of new materials, and enhancement of processes by which energy is used and stored in the manufacturing sector.
Furthermore, $300,000 worth of DOE technical assistance will be provided to five private-sector manufacturers seeking to create or improve technological solutions that offer long-term, wide-scale and cost-effective applications for water and energy efficiency.
These private manufacturers have partnered with the DOE as part of the latter’s Better Plants Partner, a pilot phase dedicated to providing technical assistance for testing and implementing green energy technology in the manufacturing landscape. The $300,000 fund will facilitate detailed validation reports, verification plans, and on-site tests to improve energy and water-treatment practices at these partners’ plants.
This year, the tests will be conducted at:
- Toyota North America in Blue Springs, Mississippi
- Nissan North America in Canton, Mississippi
- Ahlstrom-Munksjo in Kaukauna, Wisconsin—a fiber solutions company that produces coffee filters, tea bags, face masks and packaging products
- Cleveland Cliffs in Cleveland, Ohio—a flat-rolled steel and iron ore pellet manufacturer
- Schneider Electric in Seneca, South Carolina
The Road to Net-Zero Emissions
Programs like the ones detailed above are critical for the U.S. if its vision of being carbon-free by 2050 can be made a reality. While the road may be long, the DOE funneling over $100 million into the latest environment-conscious programs should highlight the urgency of sustainable manufacturing.
“Manufacturing is at the heart of the American economy—providing good-paying jobs and creating the products that we rely on in our everyday lives,” said Granholm. “With these investments, the Department of Energy is helping re-establish U.S. manufacturing leadership while scaling up the technologies needed to reduce our collective carbon footprint and address climate change.”
