Special Section: Energy Efficiency
A Ten-Step Process
for Energy Analysis
Michael L. Stowe, P.E. Understand the energy used to transform
Advanced Energy
raw material into finished product
to enhance energy efficiency.
T
he industrial sector accounts for about 34% of
total U.S. energy consumption (1). This energy is
consumed as electricity that is purchased or self-­
generated and as fossil fuels, such as natural gas, propane,
fuel oils, and coal. Understanding these energy sources
and their associated uses, equipment, efficiencies, costs,
availabilities, and waste streams is critical to developing a
sustainable energy-efficiency program.
Every manufacturing plant has raw materials that come
into the receiving dock and finished products that leave
Energy In
from the shipping dock. Between the receiv-
ing and shipping docks transformation occurs.
Transformation adds value to the materials in
Ein a step-by-step process, and energy is required
q Figure 1. Consider the analogy of water flowing
through a pipe — water represents the energy and
Process the pipe represents the process. Any leaks in the pipe
are akin to steam, heat, and other losses that degrade
energy efficiency.
Loss
Energy Out Eout
36  www.aiche.org/cep  November 2018  CEP
along the way. Evaluating the transformation steps and
energy inputs provides clues about where to look for energy
savings. Although transformation processes vary widely by
industry, detailing them from dock to dock is essential to
finding energy-efficiency opportunities.
Energy audits typically examine facility support systems,
such as compressed air, lights, and chillers, to find opportu-
nities for energy savings. Manufacturing processes and the
transformation steps that involve mixing, reacting, distill-
ing, drying, and curing, however, are ripe with potential for
savings as well. Understanding these processes and their
associated equipment, technologies, and support systems is
key to finding energy-efficient solutions.
This article discusses energy efficiency, energy inten-
sity, and transformation, and presents a ten-step method for
conducting an industrial process energy analysis. The tech-
nique focuses on a process block diagram that shows energy
inputs, energy wastes, energy recovery, and possible energy
improvements. Some blocks may have multiple energy
inputs, including electricity, natural gas, steam, and chilled
water. Understanding the type and magnitude of these inputs
helps to prioritize processes for energy improvements and
can uncover new technology recommendations.
Energy efficiency and intensity
Energy efficiency. The total energy into a system is Ein,
which is the amount that appears on your utility bill. The
total energy out of the system is Eout, which represents the
useful energy that adds value to the product during the pro-
Copyright © 2018 American Institute of Chemical Engineers (AIChE)
cess. The difference between Ein and Eout is the loss. Loss is The same approach of evaluating each transformation
wasted energy that is not useful to the process and degrades step can be applied to complex manufacturing systems using
efficiency. For energy efficiency to be sustainable, energy the following ten steps. Consider the process to manufacture
losses must be identified, documented, tracked, corrected, formaldehyde (Figure 3) to illustrate the methodology.
and prevented from recurring. If the loss were zero, the
system would be 100% efficient — but this does not occur in Step 1. Identify the raw materials
the real world. Some industrial processes have one main raw material,
A simple way to envision energy efficiency is to think while others have dozens or even hundreds. Raw materials
about water flowing through a pipe — the water represents can come into the process at many places along the transfor-
the energy and the pipe is the process. Ein would be the mation journey. To determine the type and amount of energy
water into the system in gallons per minute (gpm), and a loss required in the system, first consider these aspects of the
could be a leak in the pipe that reduces the amount of water raw materials:
available to add value to the product (Figure 1). • type of material, e.g., metal, chemical, mineral, textile,
Using the water pipe example, we can calculate energy vegetable, finished goods
efficiency. If Ein is 100 gpm and the loss due to leaks is 10 • physical state, e.g., solid, liquid, gas, subassembly
gpm, Eout is 90 gpm, and the energy efficiency of the system • delivery method, e.g., tanker ship, tanker truck, com-
is 90% (Eout/Ein). mon carrier, railcar
While water leaking from a pipe is a useful visualization, • storage methods, e.g., dry bulk, tank farm, warehouse,
a process heated by natural gas is more realistic. In this case,
Ein is 1,000,000 Btu/hr of natural gas, and the fuel combus-
tion loss is 100,000 Btu/hr, stack loss is 250,000 Btu/hr,
stored heat loss is 75,000 Btu/hr, furnace wall loss is
50,000 Btu/hr, opening loss is 25,000 Btu/hr, and conveyor
loss is 20,000 Btu/hr — for a total loss of 520,000 Btu/hr.
Eout is the difference between Ein and the total loss, which is
480,000 Btu/hr, making the energy efficiency of the system
48%. Over half of the original natural gas energy input is
lost and does not provide useful work in the process.
Energy intensity. The energy intensity of a manufacturing
process is the amount of energy that is required to produce
one logical unit of product (e.g., kWh/ton metal melted at a
foundry, MMBtu/bbl of oil refined at refinery, MMBtu/lb of p Figure 2. Modeling produces a useful shape from a lump of raw clay
but requires energy inputs from human labor and an electric motor.
polymer produced at a chemical plant).
Energy intensity provides an order-of-magnitude esti- Table 1. Each step in the process to transform a lump of
mate of the significance of energy in the production process, clay into a finished vase requires energy inputs.
and it varies widely from industry to industry. Process Step Energy Input Value Added
Storing the clay Storage warehouse None
Transformation utilities, e.g., lights,
Each step of the transformation process should add value heating/cooling,
with minimal waste. Every step requires some type and ventilation
amount of energy to carry out the transformation. Certain Modeling the Human labor Create a useful
steps require a large amount of energy, while others require clay vase Electric motor shape
very little. Outlining each step and the required energy Firing the clay Electric Strength
inputs is useful for planning and prioritizing energy projects. vase in a kiln resistance heat Durability
To understand transformation, consider the process that Painting a glaze Human labor Aesthetics
produces a vase from a lump of clay. Figure 2 depicts a step on the vase
in the process with energy inputs from manual human labor Refiring the glazed Electic Aesthetics
and possibly an electric motor to turn the wheel. This step vase in a kiln resistance heat Protective coating
adds value by transforming the clay into a useful shape. Storing the finished Storage warehouse None
Table 1 presents the details of this transformation. The steps clay vase utilities, e.g., lights,
that require a kiln are the obvious big energy users and heating/cooling,
ventilation
would be logical candidates to evaluate for energy savings.

Copyright © 2018 American Institute of Chemical Engineers (AIChE) CEP  November 2018  www.aiche.org/cep  37
Special Section: Energy Efficiency
sacks, pallets, cardboard boxes.
Defining the raw materials and their details is an initial
step in creating a process block diagram. We will follow
these materials on their journey to their final destination,
while evaluating the energy use at each point along the way.
Step 2. Characterize the final product(s)
The final product is the destination of the transformation
journey. Manufacturing plants are in the business of making
money, so raw materials are brought in, transformed into
something useful, and then sold for a profit. The manufactur-
ing plant adds value, hopefully very efficiently, to the raw
materials and produces a final product of a designated design
and quality. Answer these questions to characterize the final
product(s):
• Is the final product a completed consumer good that is
ready for sale, such as a car, computer, or box of cereal?
• Is the final product an intermediate finished item that
will become the raw material at another manufacturing site,
such as steel slabs, methanol, or polyvinyl chloride plastic
pellets?
• How is the final product packaged?
• How is the final product shipped?
Step 3. Tour the plant
There are many possible ways to get from Point A — the
raw materials — to Point B — the final product. Touring the
manufacturing site with process operators and maintenance
personnel as guides is essential to defining the transforma-
tion steps and developing the process block diagram. The
walk-through should ideally be conducted chronologically,
from raw materials to finished products. During the plant
tour, take good notes and include:
• major transformation steps
• specific process parameters for each step (e.g., tempera-
ture, flowrate, pressure, material characteristics)
• energy inputs into each step (e.g., electricity, natural
gas, steam, chilled water, compressed air)
• equipment used to complete the steps
• facility equipment used to support the steps (e.g., air
compressors, boilers, chillers, cooling towers)
• waste streams (e.g., combustion stack gases, waste­
water, metal shavings, sawdust).
When you tour the plant, bring a blank process block
diagram template that indicates the raw material starting
point and final product end point and has empty boxes in
between to take notes. The tour may last anywhere from a
couple of hours to a couple of days, depending on the size
and complexity of the plant. Ask your tour guides questions
and get their contact information for follow-up requests.
Record or photograph nameplate data for large pieces of
equipment that you know consume a lot of energy.
38  www.aiche.org/cep  November 2018  CEP
Step 4. Develop the process block diagram
You have done your homework and completed a
detailed tour of the manufacturing site. Now, you are ready
to flesh out the process block diagram. Use your notes, con-
versations, utility data, and possibly some online research
to document the transformation steps in the process. The
product of your work should look something like Figure 3,
which shows the basic steps necessary to transform metha-
nol and air into formaldehyde. Next, evaluate each block to
identify the energy components, including energy inputs,
energy wastes, energy recovery possibilities, energy effi-
ciency opportunities, and new technology opportunities
(Steps 5–9).
Step 5. Catalog energy inputs
Each step of the process block diagram must be reviewed
to identify the primary energy inputs required to perform the
transformation. Energy inputs may be direct energy, such
as electricity, natural gas, propane, and fuel oil, or derived
energy, such as compressed air, steam, and chilled water.
Repeating this analysis for every step helps to produce an
overall qualitative energy usage model. From Figure 3, we
can observe that:
• electric-driven motors account for a large portion of the
energy load used by pumps, blowers, and fans
• the chemical reaction in the silver catalyst bed is exo-
thermic, so the process has its own internal heat source that
is used to generate process steam
• several heat exchangers are required for process cool-
ing and use electrically driven chillers as the cooling source.
Completing an energy input analysis for each block in
the diagram creates an overall picture of the process energy
consumption. If available, information to help quantify
the energy input is valuable, including motor horsepower,
actual metered cubic feet of natural gas, electric process
sub­metering, etc.
Step 6. Identify energy wastes
Energy is wasted to some degree in every step of the
manufacturing process. Major wastes should be identified
when you are analyzing the process block diagram. Identify-
ing process waste streams is the first step to minimize them,
recover valuable energy from them, and reduce their envi-
ronmental impact. Figure 3 includes several waste streams:
• tail gas — a combustible gas (primarily hydrogen) —
produced by the scrubbers and used in a boiler to produce
steam for site use
• fluegas exhaust from the combustion of the tail gas
• blowdown from the tail gas boiler
• wastewater from the scrubbers, which requires addi-
tional energy input for downstream processing in a waste­
water treatment plant.
Article continues on p. 40
Copyright © 2018 American Institute of Chemical Engineers (AIChE)
 Process Energy Energy Waste Facility
K In and Out
Step Loads Sources Stream System
E
Y Chilled Water Tail gas Steam Condensate City Water

Electricity

Electricity
Compressed Air

To Entire
Process Chiller
Process

Raw Material: Methanol Methanol Methanol t Figure 3. This

Storage Tank Condenser process block
diagram for the
production of
formaldehyde
Methanol Pumps shows the inputs
Methanol
and outputs of the
Ambient Air Purifier
Methanol process.
Condenser
Electricity

Blowers
Electricity

Distillation
Silver Catalyst Beds Column
Condensate Pumps

Exothermic Rxn Heat

Fluegas Process Steam
Generator

Boiler Combustion Distillation

Tail gas
Burner Column Bottom
Heat Exchanger

Blowdown
Combustion Air
Supply Fan Process Chiller
Motor Primary
Secondary
Scrubber Heat Exchanger
City Scrubber
Water Electricity
Electricity
Scrubber
Recirculation
Pumps
Electricity Raw
Formaldehyde Raw
Tank Formaldehyde
Electricity Wastewater Pumps
Transfer
Pump

Electricity
Final Product:
Finished
Formaldehyde
Formaldehyde
Loading
Tank

Copyright © 2018 American Institute of Chemical Engineers (AIChE) CEP  November 2018  www.aiche.org/cep  39
Special Section: Energy Efficiency
Step 7. Identify energy recovery possibilities
The energy waste streams should be examined for their
potential for energy recovery. Observations of the waste
streams in Figure 3 might include:
• The waste tail gas from the scrubbers is already being
used to generate site steam, which is good.
• In the tail gas boiler, hot stack fluegas could be used
to preheat tail gas boiler combustion air and tail gas boiler
feedwater.
• In the tail gas boiler, hot blowdown could be used to
preheat tail gas boiler makeup water.
• There may be an economical way to extract valuable
methanol or formaldehyde from the scrubber wastewater.
Step 8. Pinpoint energy-efficiency opportunities
Each block in the process block diagram should be eval-
uated for energy-efficiency opportunities. Depending on the
energy input for the process operation, a variety of options
may be available to reduce energy consumption. The motors,
compressed air, chilled water supply, and boiler/steam
supply in Figure 3 have the potential for energy-efficiency
improvements.
Motors. Motors consume a significant amount of process
energy. The biggest cost over the life of a motor, by far, is
the electricity to turn it — typically accounting for 96%
of a motor’s total lifecycle costs. Maximizing the overall
efficiency of the plant’s motor population has energy-saving
benefits. This can be accomplished by implementing a motor
management program (2, 3), specifying National Electrical
Manufacturers Association (NEMA) Premium (4) efficient
motors wherever possible, and implementing a motor repair
and replacement policy.
Variable-frequency drives (VFDs). Where variable loads
and good feedback parameters exist, VFDs help save energy.
Conduct a detailed analysis of VFD/motor combinations and
implement where operationally and economically feasible.
Candidates for VFDs in the process in Figure 3 include
blowers, chiller cooling tower fans, chilled water pumps, and
air compressors.
Compressed air. Compressed air is a very expensive
and inefficient energy source. A 1/8-in.-dia. leak on a
100-psig compressed air system costs approximately $1,000
per year for the electricity to compress the air for just that
leak. Multiply this by 100 leaks across a large process
system, and a plant can spend up to $100,000 per year on
wasted electricity for compressed air alone.
In the formaldehyde process in Figure 3, compressed air
is used primarily for controls, valve operation, tank over-
pressure, air-driven mixer motors, and air-driven diaphragm
pumps. The process contains numerous air solenoid blocks,
air piping and tubing, air valves, and air-actuated devices
— all of which can develop costly leaks. Energy-efficiency
40  www.aiche.org/cep  November 2018  CEP
recommendations might include:
• establish and maintain a compressed air leak survey
and repair program, which is inexpensive and has immediate
payback
• where feasible, replace air-driven mixers and dia-
phragm pumps with electric-driven mixers and pumps
• use zero-loss condensate drains on the compressed air
system throughout the plant.
Chilled water supply. Several steps in the formaldehyde
process require chilled water. Ensure that cooling towers are
clean and properly maintained, and that chilled water equip-
ment and piping are properly insulated. Additionally, con-
sider installing a condenser on the water side of the stream
precipitator system. Typical savings are 10–15% in chiller
energy and 20–25% in makeup water. Energy-efficiency
opportunities for water-cooled chillers include:
• reset the condenser water
• clean the heat exchanger used for process cooling loads
• clean the condenser and evaporator tubing on the chiller
• to help avoid overcooling, operate at the highest chilled
water temperature that will still maintain process parameters.
Boilers, steam, and combustion. The process steps in
Figure 3 generate heat to make steam that is used for process
heating, as well as tail gas that is used in a process boiler.
Assuming a delivered cost for natural gas of $6 per deka­
therm (1 dth = 1 million Btu), exposed uninsulated steam
piping can cost $200 per foot per year in lost heat. Extrapo-
lating this over a large processing plant, 100 equivalent
linear feet of uninsulated steam piping would cost $20,000
per year in lost heat (5). Opportunities for energy-efficiency
improvements on these systems include:
• ensure combustion equipment and steam piping are
properly insulated
• monitor the oxygen content of the fluegas to ensure the
most efficient combustion and reduce nitrogen oxide and
sulfur oxide releases (6), which will also reduce the amount
of natural gas consumed, thereby lowering the amount of
carbon released
• conduct a proper steam trap survey using a thermo-
graphic camera or ultrasonic leak detector, and perform
maintenance to save energy on steam systems.
Step 9. Identify new technology opportunities
Implementing new or existing process technologies can
provide energy savings in addition to those identified in
Step 8. A goal is to reduce energy intensity, and a different
technology may lower the energy required to transform one
logical unit of product.
For example, in Figure 3, the wastewater from the scrub-
bers could be handled differently. In the current process, the
wastewater is drained away to an onsite wastewater treat-
ment plant. Membrane filters or reverse osmosis systems
Copyright © 2018 American Institute of Chemical Engineers (AIChE)
could clean the wastewater and extract valuable methanol
or formaldehyde from the stream. The energy and financials
would need to be evaluated to see if the idea is feasible, but
this type of new technology investigation can frequently
provide energy efficiency and energy intensity solutions.
Two different process examples take advantage of new
technology opportunities for energy improvements that
relate to product coatings.
Example 1. A water-based product coating is dried in
a natural gas convection oven. A possible new technol-
ogy opportunity would be to switch to a coating cured by
ultraviolet (UV) light. Making the change from natural gas
convection to UV curing has many potential advantages,
including instant curing, high coating quality, fast line speed,
low exhaust emissions, lower energy intensity, shorter oven
residence time, and smaller floor space requirements.
Example 2. A volatile organic compound (VOC)-based
product coating is cured in a natural gas convection oven.
A possible new technology opportunity would be to switch
to a powder-based coating system cured with infrared (IR)
heating. A powder coating and IR curing system could be
advantageous because it offers efficient heat transfer, rapid
heat-up, low emissions, fast line speeds, lower energy inten-
sity, shorter oven residence time, and smaller floor space
requirements.
Step 10. Implement solutions
After you perform the process energy analysis and
develop the process block diagram, the next and most impor-
tant step is to implement some of the energy-saving solu-
tions you have identified. Savings will not be realized until
the results are actually applied.
Your analysis will produce a detailed set of opportunities
for energy improvements. Compile the results in a table or
spreadsheet so they can be evaluated, prioritized, budgeted,
and tracked for implementation. Then, repeat the approach
periodically for continuous improvement (Figure 4).
Visit
the Plant
Implement Learn
Solutions the Process
Energy-Efficiency
Program
Review
Recommend
the Facility
Solutions
p Figure 4. Energy analysis should be an ongoing process.
Copyright © 2018 American Institute of Chemical Engineers (AIChE)
Closing thoughts
Pursuing energy improvements often produces benefits in
other areas as well. These non-energy benefits may include
greater plant productivity, higher product quality, fewer pro-
cess bottlenecks, better worker safety, more available floor
space, and lower emissions and waste stream volumes.
When exploring new technologies, a combination may
produce the best energy-saving results and, depending on
the process, there may be numerous technology opportu-
nities available. Any idea must be subjected to rigorous
energy and financial analyses to prove its feasibility prior
to implementation. CEP
Literature Cited
1. U.S. Energy Information Administration, “Energy Consump-
tion Estimates by Sector,” www.eia.gov/consumption, EIA,
Washington, DC (2015).
2. Advanced Energy, “Motor Survey Program,” www.advanced­
energy.org/wp-content/uploads/2018/03/MAD_motor_sur-
vey_2017.pdf, Advanced Energy, Raleigh, NC (2017).
3. Advanced Energy, “Advanced Energy’s Horsepower Bulletin,”
www.advancedenergy.org/portal/mad/images/pdf_documents/
MAD_Horsepower_bulletin_final.pdf, Advanced Energy,
Raleigh, NC (2015).
4. The National Electrical Manufacturers Association, “NEMA
Premium Program,” www.nema.org/Policy/Energy/Pages/
NEMA-Premium-Motors.aspx, NEMA, Arlington, VA
(accessed Sept. 21, 2018).
5. The Engineering Tool Box, “Heat Loss from Steel Pipes at
Various Temperature Difference between Pipes and Ambient
Air,” www.engineeringtoolbox.com/steel-pipes-heat-loss-d_53.
html (accessed Sept. 21, 2018).
6. The Engineering Tool Box, “Boiler Efficiency,” www.engi-
neeringtoolbox.com/boiler-efficiency-d_438.html (accessed
Sept. 21, 2018).
MICHAEL L. STOWE, P.E., CEM, PEM, is a senior
energy engineer with Advanced Energy in
Raleigh, NC (www.advancedenergy.org;
Email: mstowe@advancedenergy.org;
Phone: (919) 857-9043), where he works
with utilities, industrial equipment vendors,
and manufacturing plants to find the
best technical and most energy-efficient
solutions for industrial processes. He has
over 28 years of experience with industrial
manufacturing processes and plants,
including roles as production manager,
maintenance manager, and plant engineer.
He has developed and delivered numerous presentations on industrial
energy efficiency and related topics for utilities, industrial trade associa-
tions, and technical groups. He is a licensed Professional Engineer in
North Carolina, a Certified Energy Manager (CEM), a Professional Energy
Manager (PEM), a Certified Practitioner Energy Management Systems-
Industrial (CP EnMS-Industrial), and a Superior Energy Performance,
Performance Verifier (SEP PV). He is a member of several trade associa-
tions: American Foundry Society (AFS), ASM Heat Treating Society
(ASM-HTS), Association of Energy Engineers (AEE), Chemical Coaters
Association International (CCAI), Industrial Heating Equipment Associa-
tion (IHEA), and RadTech International. He holds a BS in mechanical
engineering from Georgia Institute of Technology, and attended the U.S.
Navy Nuclear Power School and Submarine Officer Training.
CEP  November 2018  www.aiche.org/cep  41