Report Shows Metal-Based Durables Industry Powered by Electricity, Natural Gas
The U.S. Energy Information Administration’s findings suggest that metal-based durables industries could benefit from energy efficiency programs and the low cost of natural gas.
A report from the U.S. Energy Information Administration (EIA) says that metal-based durables (MBD) manufacturers are well-positioned to benefit from energy efficiency programs because they mostly use electricity and natural gas for energy, rather than other fossil fuels such as oil, diesel or coal. MBD industries include fabricated metal products, transportation equipment, machinery, computers and electronic products, and electrical equipment appliances and components.
MBD operations are typically housed in buildings, and the manufacturing processes are not as energy-intensive as those in other industries. Direct non-process electricity use for heating, ventilation, air conditioning, lighting and other facility support represents 36 percent of MBD electricity use, compared to 14 percent of electricity use in other manufacturing. As a result, buildings are a particularly important part of efforts to reduce energy use in the MBD industries.
EIA’s Annual Energy Outlook 2014 projects that shipments for MBD industries will increase substantially from 2012 to 2040. These industries will therefore benefit from the increased availability and lower cost of natural gas. Given the high dependence of MBD industries on electricity, there are significant potential benefits from improved energy efficiency associated with machine drives, buildings and the reduction of losses associated with on-site electrical distribution systems.
U.S. Energy Information Administration, call 202-586-8800 or visit eia.gov.
