DOE Says Efficiency Program Saved Manufacturers $2.4 Billion In Energy Costs

As the U.S. Department of Energy prepares to kick off October’s National Energy Action Month, the department announced last week that manufacturers in its “Better Buildings, Better Plants Program” (Better Plants) have racked up an estimated $2.4 billion in cumulative energy cost savings during the last five years.

According to DOE officials, manufacturers spend more than $200 billion each year to power their plants. As part of the Obama administration’s efforts to double energy productivity, American manufacturers and water and wastewater treatment agencies made a voluntary commitment to improve energy efficiency by about 25% over ten years, or an equally ambitious level for their sector, through the Better Plants Program. Today, the department also announced that nine partners have met their energy efficiency targets this year.

Over the last year, 21 new industrial partners joined the Better Plants program, including 12 water and wastewater treatment agencies — part of a strategic expansion to increase energy efficiency across the nation’s water infrastructure. Close to 160 industrial organizations representing more than 2,400 facilities are partnering with the Energy Department through Better Plants. Together, these partners consume about 2.2 quadrillion BTUs of energy, which is approximately 11.4% of the U.S. manufacturing sector’s total use, or about the same as the state of Tennessee’s annual energy consumption.

“When companies save energy, they also save money and reduce harmful carbon pollution,” said Secretary of Energy Ernest Moniz. “This is especially true in the manufacturing sector, where energy costs are often a significant contributor to total operating costs. Manufacturers participating in the Better Plants program, including our new partners in the water and wastewater treatment sector, are leading the way in showing how energy efficiency is a smart business strategy, as well as a smart conservation strategy that will help to protect our environment for future generations.”

Over the last five years, Better Plants partners have maintained an average annual energy intensity improvement rate of about 2.1%, well above projected business-as-usual rates for U.S. industry as a whole. This has resulted in cumulative energy savings of more than 450 trillion BTUs, saving an estimated $2.4 billion in cost and avoiding nearly 27 million metric tons of climate-changing carbon emissions, the equivalent to a year’s worth of emissions from seven coal-fired power plants, Energy Department officials said.

The Energy Department is also recognizing the nine partners that met their energy savings goals through Better Plants this year. They join the 16 other U.S. manufacturers that met their goals in previous years. Click here to see the DOE’s progress update.