Energy Use, Loss, and Opportunities Analysis for U.S. Manufacturing and Mining

Abstract

consumption in the United States. Therefore, it is imperative that industrial GHG emissions be considered in any strategy intent on achieving deep decarbonization of the energy sector as a whole. It is important to note that unlike the transportation sector and electrical grid, energy use by industry often involves direct conversion of primary energy sources to thermal and electrical energy at the point of consumption. About 52% of U.S. industrial direct GHG emissions are the result of fuel combustion (EPA 2016) to produce hot gases and steam for process heating, process reactions, and process evaporation, concentration, and drying. The heterogeneity and variations in scale of U.S. industry and the complexity of modern industrial firms’ global supply chains are among the sector’s unique challenges to minimizing its GHG emissions. A combination of varied strategies—such as energy efficiency, material efficiency, and switching to low-carbon fuels—can help reduce absolute industrial GHG emissions. This report provides a complement to process-efficiency improvement to consider how clean energy delivery and use by industry could reduce GHG emissions. Specifically, it considers the possibility of replacing fossil-fuel combustion in industry with nuclear (specifically small modular reactors [SMRs]), solar thermal (referred to herein as solar industrial process heat [SIPH]), and geothermal energy sources. The possibility of applying electrical heating and greater use of hydrogen is also considered, although these opportunities are not discussed in as much detail.