Combined heat and power turbine used for cogeneration.

File this one under "low hanging fruit". Energy Secretary Steven Chu Tuesday announced the 41 recipients of $155 million in funding for industrial energy efficiency projects (PDF). The bulk of the project money will go to combined heat and power (CHP) and district energy systems. The remainder of the money will be going to research, development and technical assistance at universities and state and federal agencies across the country.

"To remain globally competitive, American industry needs to be energy efficient. The funding for industrial energy efficiency technologies announced today will support a robust American industrial sector and help to usher in a clean energy economy," said Secretary Chu.

The funds were allocated as part of the American Recovery and Reinvestment Act and are part of a recent string of federal funding announcements for energy research and demonstration projects from the DoE.

"These projects will make energy efficiency technologies more widely available, cutting energy use and reducing carbon pollution across the country," Chu said.

Industrial and district heating efficiency projects

The DoE has established a goal of doubling the amount of electricity produced by cogeneration – from 9% to 18% - by 2010. The European Commission has established a similar target. In Switzerland, cogeneration accounts for 77% of the country's electricity; in Denmark 40% of the country's electricity is produced via CHP.

Nine of the projects announced Tuesday will promote the use of combined heat and power, district energy systems, waste energy recovery systems, and energy efficiency initiatives in hospitals, utilities, and industrial sites. Combined Heat and Power, also known as cogeneration, and District Energy Systems generate both the heat and power needed for industrial processes on-site, instead of using electricity from the grid, and can be nearly twice as efficient as conventional heat and power production.

* Texas Medical Center Central Heating and Cooling Services Company
* Seattle Steam Company
* Rhode Island LFG Genco, LLC
* Air Products and Chemicals, Inc.
* Ridgewood Renewable Power, LLC
* ArcelorMittal USA
* Verso Paper Corporation
* The Dow Chemical Company
* Clean Tech Partners

These industrial efficiency projects will result in almost 14 trillion Btu in estimated energy savings, which is equivalent to over 112 million gallons of gasoline per year.

Research and technical assistance

The remaining 32 awards will provide local technical support for the industrial sector through university-based Industrial Assessment Centers, state agencies, regional partnerships, and a national technical assistance provider.

The projects are an extension of DOE's successful Save Energy Now initiative, which provides plant energy assessments and technical assistance to energy intensive industrial facilities. Since the program's inception in 2006, more than 2,300 assessments have been completed and 1,500 industrial facilities have implemented the identified energy measures, saving $218 million, 35 trillion Btu and 2.3 million metric tons of carbon dioxide each year.

The industrial sector uses more than 30% of U.S. energy and is responsible for nearly 30% of U.S. CO2 emissions.