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Industrial energy consumption accounts for roughly one third of the total energy consumption in the world. The constant growth of the price of energy and the increase of its share in the price of a unit product demands greater attention from the factory's management with regard to controlling energy consumption. This involves increased investment but it also produces significant benefits. A number of processes for energy transformation are used in industry, as well as processes in which energy is used directly as a raw material for the production of new added value. Production processes present a demand side for a factory energy system - therefore, production processes set the requirements for energy quantity and quality.

The basic principles for optimizing energy performance are to continuously monitor energy flows and relate the measured amount of energy used by a process or activity to the measured output of this process or activity (Fig. 1.1). As we have said earlier, wherever and whenever energy performance improvements are achieved, environmental performance will be improved simultaneously.

Industrial energy systems, also commonly called 'utilities', provide the energy needed for the conversion of raw materials and the fabrication of final products. Industrial energy systems transform fuels and power into a variety of energy utilities such as steam, direct heat, compressed air, chilled water, hot fluids and gases and power for compressors, fans, pumps, conveyors and other machine-driven equipment (Fig 1.1). Some industrial facilities have on-site generation of electricity or co-generation of electricity and heat for processes.

All manufacturing processes rely on energy supply. In energy intensive basic industries, such as the chemical industry, petroleum refining, iron and steelmaking and pulp and paper-making, energy systems are the backbone of the manufacturing process and are crucial for profitability and competitiveness. For these industries, changes in the efficiency and environmental performance of critical energy systems can impact significantly on the cost of production. With the growth of energy prices even within industries with lower energy intensity indicators, the significance of energy is becoming increasingly important.

Figure 1.2 illustrates the typical energy system of a factory. The total quantity of final energy entering into the factory is 100 units within a specified period of time (most often a year). The relationship between fossil fuels and energy produced in power plants in this example is 80:20. The factory is usually supplied by electrical energy from an outside power system but the outside supply of hot water or steam for heating and other technological processes is also possible. The ratio presented here is typical for the food and beverage industry. In petroleum refining industry, for example, this ratio is 96:4, and in the heavy machinery industry it is 55:45. For developed countries, this ratio for the whole of industry is around

Applied Industrial Energy and Environmental Management Zoran K. Morvay and Dusan D. Gvozdenac © 2008 John Wiley & Sons, Ltd

Raw Materia

Steam Compressed Air Industrial Water Hot Water Hot Air HVAC . etc.

Raw Materia



Environmental Impact



Environmental Impact


> Electricity

> Fuels

> Water

Figure 1.1 Basic Relationship of Energy and Production

POWER PLANT 60.6 units

>LOSSES 2.5 units



LOSSES ' 40.6units


80 Units

20 units




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