Recycled Energy Development
The web’s resource for energy recycling news and information
With some of the lowest-priced electricity in the country — energy efficiency has long been an afterthought in Montana’s coal-dominated economy. But now, with unemployment doubling over the past three years and gross domestic product growing at a meager 1.8 percent, Montana needs to maximize its assets in new ways.
Sen. Max Baucus recognized this at his recent Montana Economic Summit, when he welcomed new ideas that “spark innovation, boost exports and create good-paying jobs.” Here’s an idea that fits the bill: energy recycling.
As old as Thomas Edison, but not as widely known, energy recycling takes advantage of a fact recognized by Edison himself: Burning fossil fuels to generate electricity creates an abundance of excess heat. A keen businessman, Edison captured and sold the heat to nearby factories and office buildings at a profit.
With the arrival of cheap electricity came the departure of these efficient practices, resulting in a massive waste of fossil fuels and unnecessary pollution. Yet, in today’s economy, every dollar saved can make a difference — especially for energy-intensive manufacturers that make up the backbone of the American economy.
Consider, for example, an ArcelorMittal steel plant in northern Indiana. By capturing and recycling its waste heat, the company saves nearly $100 million annually in energy costs, even as it slashes CO2 emissions by the equivalent of removing 166,000 cars from the road. Most importantly, this plant has stayed open during a time when other facilities have been forced to shut down.
In today’s recession-ridden world, our foreign competitors are streamlining for maximum efficiency. China announced in August that it would shut down more than 2,000 of its older steel mills, cement works and other heavy industrial facilities in a bid to make its rising production sector more energy efficient.
While that type of forced closure is thankfully out of the question here, the notion that we should use energy efficiency to enhance our economic growth should be supported. According to Oak Ridge National Laboratory, full deployment of energy-recycling technologies, including combined heat and power projects, represents an enormous opportunity to make our nation more competitive. Harnessing this source of clean power could provide up to 20 percent of US electrical capability by 2030 and create nearly one million jobs.
Only 113 megawatts of energy — enough to power about 90,000 homes — is recycled at Montana’s combined heat and power facilities, despite the fact that many Montana companies are capable of producing equipment for and supplying this kind of power.
Unfortunately, while the benefits of energy recycling are huge, substantial up-front costs can be a barrier for manufacturers. With a sputtering economy and tight credit markets, it is difficult for many businesses to move forward. Here’s where Sen. Baucus can put his Economic Summit words into action.
Numerous Montana businesses are supporting a bill sponsored by Sen. Jeff Bingaman, D-N.M., and Sen. Olympia Snowe, R-Maine, that offers tax incentives for companies that recycle energy. As chairman of the Senate Finance Committee, any tax provision needs Sen. Backus’ support if it has a hope of passing. His leadership on this issue could mean the difference between continued economic stagnation or growth.
With proper incentives, Montana businesses and manufacturers will embrace industrial energy efficiency, creating jobs and bolstering the tax base. That’s just the kind of jump start our economy needs now.
Cindy Donaldson of Butte is the chapter executive of the Montana Sheet Metal and Air Conditioning Contractors National Association. Thomas R. Casten is author of “Turning off the Heat,” and the chairman of Recycled Energy Development, LLC. He lives in the Chicago area.
Contact us to discuss how energy recycling can help your organization.
