Can Renewable Energy Alone Support the Manufacturing Industry?
The industrial sector has historically used fossil fuels. It needs readily available, trustworthy energy sources to power such intense processes. Infrastructure for oil, natural gas, coal, and other energies has become ubiquitous. These sources are the most convenient and affordable.
However, continuing to use fossil fuels is unsustainable. How can manufacturers and facilities reconsider their energy mix to embrace greener generators?
How Much Energy Do Industrial Companies Need and Why?
The amount of energy companies consume varies. It can shift based on their industrial niche and required technologies. Energy-intensive processes, like steel manufacturing, will need more energy than cardboard packaging. Some facilities consume more energy than other sectors for these reasons:
- Operational requirements: General usage related to powering miscellaneous aspects of the building and procedures.
- Heating and cooling: Temperature control for machinery, HVAC systems, liquids, and more.
- Transportation: Movement of inventory and tech within and outside of the facility.
- Lighting: Visibility across potentially hundreds of thousands of square feet of buildings.
- Heavy machinery: Power for everything from production lines, 3D printers, servers, electrolyzers, and more, depending on the sector.
- Material processing: Manipulations of materials into other states or formats, like plastics or metals.
- Artificial intelligence: Resources for enabling machine or deep learning within facilities.
Some organizations require energy for all or some of these categories. Electricity is often the primary source, though petroleum, incineration of waste fuels, and coal are frequent energy sources.
Will Renewable Energy Be Able to Facilitate Industry?
Industry professionals continue to rely on fossil fuels and their questionable infrastructure because they are uncertain if renewable energy has enough power to replace them.
However, the infrastructure for renewable energy sources is expanding, and the technologies are becoming more efficient. This includes solar panels, wind turbines, geothermal heat pumps, and biomass generators. Many sectors are adopting decarbonization and sustainability objectives, choosing renewable energy and electrification as some of their primary goals.
Battery energy storage solutions and a diverse energy mix are helping industries keep lights on during outages and severe weather. Independence from utility companies also protects companies from price volatility and availability issues, especially during peak hours when businesses cannot afford downtime. Costs are influenced by supply and demand — for instance, every $10 rise in crude oil costs equates to a $0.24 gas price increase.
Recent government incentives have also incentivized more corporations to expand renewable energy. Eligible buildings have gotten as much as 30% of installation expenses covered by clean energy credits. The subsidies, tax credits, and discounts make it easier to justify installations, proving their generative potential is high enough to support operations.
How Could Companies Transition?
While some facilities are making the switch, many have yet to adopt more sustainable power. What steps would make this process more straightforward?
Energy Efficiency Goals and Electrification
Many businesses want to electrify fleets and other machinery to decrease fuel costs. Renewable energy is more viable if companies commit to cutting consumption first, then install the technology to meet the lower requirements. It makes equipment like electric boilers and vehicles simpler to charge and maintain.
Businesses begin this process by conducting energy audits, which discover the structure’s most consumptive aspects. Then, teams can set goals to upgrade, replace, or repair relevant systems. Some common replacements are LED lights or variable-speed drives. Many buildings need greater temperature control and investment in insulation to improve HVAC systems.
Gradual Direct Investments
Stakeholders must collaborate with accounting teams to allocate parts of the budget to renewable and energy-efficient technologies. A complete overhaul is not required immediately. Additionally, investors can seek alternative financing to make it more affordable.
Leverage vacant lands nearby to build on-site solar panels or wind turbines, which can produce another income stream to offset costs. Facilities can also enter power purchase agreements with developers to buy cleaner power from off-site companies.
Renewable Energy Certificates (RECs)
RECs can be a complementary resource or the sole attribute of an energy plan. They represent one megawatt-hour of electricity, and facilities can buy them from relevant organizations to replace fossil fuels. Purchasing RECs from younger renewable energy projects increases their impact by demonstrating organizational interest in new renewable capacity.
A Realistic Energy Mix
Transitioning to 100% renewable energy will not happen immediately — it will require gradual adoption and installation of reliable technologies. Renewable energy is the best path forward for efficiency and cost-effectiveness, and it can prevent further damage caused by fossil fuels.