White House Executive Order Will Increase Competitiveness of U.S. Manufacturing

Washington, D.C. – The American Gas Association (AGA) today applauded the announcement of a White House Executive Order to accelerate industrial energy efficiency.

The Executive Order, “Accelerating Industrial Energy Efficiency,” will direct the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) to support, coordinate and encourage a national goal of adding 40GW of combined heat and power (CHP) applications by 2022. Combined with what is currently being used, this would increase the total CHP in the market to 122GW.

“This CHP target is not only meaningful, but it’s achievable,” said AGA President and CEO, Dave McCurdy. “Despite its proven track record, CHP remains underutilized and is one of the most compelling sources of energy efficiency that could, with even modest investments, move the nation toward a cleaner environment.

Achieving these targets would mean billions of dollars in new capital investment in American manufacturing and U.S. facilities over the next decade, resulting in savings of at least $100 billion for manufacturers.

McCurdy added: “Natural gas utilities are committed to a continued partnership with our industrial consumers, state policymakers and the Administration to help expand the adoption of these highly efficient technologies and processes, which embrace our domestic supply of natural gas and create jobs here at home.”

CHP technologies, using American energy, labor and knowledge, generate electricity and capture useful heat simultaneously to increase the overall efficiency of an energy system. Using less fuel and emitting lower levels of greenhouse gases such as carbon dioxide, CHP is an established technology that lowers energy costs to businesses and reduces their environmental footprint. The use of natural gas, the preferred fuel choice for CHP applications, allows for new electricity generation to meet current and future demand at costs up to50 percent less than traditional forms of delivered new baseload electricity.

This new target, a 50% increase in existing CHP capacity, would be significant, resulting in an annual savings to energy users of $10 billion compared to current energy use, additional annual energy savings of about one quadrillion btu of energy, and an annual reduction of 150 million metric tons of CO2 annually – equivalent to removing over 25 million cars from the road