CH-24-C037 - Industrial Energy Efficiency and Decarbonization: Identifying Motivations and Barriers for Midwest Manufacturers

The industrial sector accounts for a substantial portion of the U.S. end-use energy consumption. As climate change continues to be a challenge, there is a need to increase efforts to reduce energy consumption and greenhouse gas (GHG) emissions in this sector. Many companies are developing climate action plans to focus on energy and emissions reductions, and many have already implemented energy efficiency projects. Additionally, local, state, and federal governments have various programs, incentives, and financial assistance to encourage companies to make improvements in their facilities. However, while there are many opportunities to improve building efficiency, many buildings and their systems in these sectors remain inefficient. A better understanding of the motivations and barriers companies face toward GHG and energy use reduction is needed to address this challenge. In this research, we examine the trends in manufacturing facilities in Michigan. Between January 2022 and June 2023, we conducted interviews with over 45 manufacturing facilities to understand their interest in energy efficiency improvements, to identify their facility’s energy-related improvements, and acceptable economic payback periods. Overall, the most common motivations were achieving climate action goals, reducing costs, and reducing energy usage. This research then reviewed energy improvement opportunities identified during over 150 energy assessments conducted in the Midwest region for small and medium manufacturers from 2010 to the present. The most common recommendations include utilizing higher efficiency lamps, and using waste heat for preheating, but vary by type of manufacturing. These findings suggest substantial opportunities for improvements to these buildings and their systems. The outcomes from this study can assist in formulating future policies to support decarbonizing these buildings.