US energy efficiency order praised by environmental and industrial lobbies

• 11 years ago (2012-09-05)
• Junior Isles

North America 998

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President Barack Obama has encouraged US government agencies to incentivise industrial energy efficiency through emissions trading, grants and loans, in an Executive Order signed last week.

The measures aim to encourage improvements in industrial energy efficiency, including a target of 40 GW of combined heat-and-power (CHP) generating capacity by 2020 – a 50 per cent increase on current levels.

“Accelerating these investments in our nation’s factories can improve the competitiveness of United States manufacturing, lower energy costs, free up future capital for businesses to invest, reduce air pollution, and create jobs,” the order says.

The decree has been welcomed by both environmental and industry voices.

“Investing in industrial energy efficiency is a low-cost approach to meeting energy and electricity needs,” said Kit Kennedy, clean energy counsel at the Natural Resources Defense Council (NRDC), an environmental NGO.

“It will enhance US manufacturing competitiveness by $100 billion or more in energy costs over the next decade – while increasing the reliability and security of our power grids,” he said.

American Chemistry Council (ACC) concurred, saying in a statement: “Expansion of CHP capacity can make American manufacturers more competitive in the global economy and can stretch our nation's natural gas supplies that benefit a wide variety of industries across the country.”

According to the ACC, CHP plants are twice as energy efficient as older coal fired plants.