How Does One Cut Natural Gas Use in Factories? Just Get Hot Water!

How Does One Cut Natural Gas Use in Factories? Just Get Hot Water!

Intel has recently unveiled its state-of-the-art manufacturing plant in Ireland, with a hefty cost of $18.5 billion. 

Beyond its impressive scale and advanced technologies, the facility boasts an often overlooked, yet revolutionary, approach to sustainability: harnessing heat generated by equipment and redirecting it into production processes, rather than expelling it into the environment.

One standout feature is the use of recovery chillers, capturing heat from Intel’s high-temperature manufacturing processes and channeling it as heated water to various areas within the facility. The heated water, potentially stored in EN 14015 compliant tanks, ensures a robust and safe solution for managing the facility’s thermal energy needs.

This innovative approach is projected to significantly reduce the natural gas required to operate the site, specifically Fab 34, by utilizing nine times more recovered energy than traditional fuels.

 

 

Rich Riley, Principal Engineer in Intel’s corporate services development group, highlights the broader implications, “If we didn’t have that heat, we would need much more gas to facilitate heating, ventilation, and air-conditioning operations. 

“This is an overall reduction of natural gas consumption.”

The long-term vision for Intel involves building upon heat recovery measures and enhancing energy efficiency through the integration of industrial equipment, such as heat pumps running on electricity.

Hot water, please!

Intel’s immediate sustainability goals include a 10% reduction in Scope 1 and 2 emissions by 2030, with a 4% achievement as of fiscal year 2022. 

Additionally, the company aims to conserve up to 4 billion kilowatt-hours cumulatively.

While the impact on carbon emissions from the heat recovery efforts at Fab 34 is undisclosed, a similar retrofit at Fab 10 in Leixlip is estimated to save 18.3 million kilowatt-hours of electricity annually, reducing Scope 1 emissions by about 4,760 metric tons.

common industry practice is using gas or fossil fuels

The industrial sector’s heavy reliance on coal and natural gas for energy poses a challenge for corporate sustainability teams. 

Approximately, 20% to 25% of global industrial energy consumption is still dominated by these fossil fuels, according to the International Energy Agency.

A McKinsey report suggests that the potential energy cost savings from utilizing recovered waste heat for various industrial processes could reach up to $152.5 billion annually, highlighting a significant opportunity for sustainability.

Ken Somers, a McKinsey partner and report author, emphasizes the economic viability of heat recovery, “If you want to decarbonize, heat recovery and waste heat are one of the most economical levers available.”

Aiming towards sustainability goals

Despite initial challenges like low natural gas prices, companies are reevaluating their dependence due to tariffs and supply shortages. 

The advancement of industrial heat pump technology is also facilitating the shift toward more sustainable practices.

Patricia Provot, President of thermal production equipment manufacturer Armstrong International, encourages the adoption of heat recovery for manufacturers, “If your plan is to fully decarbonize, your first step is to get rid of steam and use hot water, and then try to recover as much of that waste heat as possible and put it back into the system.”

 

 

Drawing from Intel’s experience, Todd Brady, Vice President of Global Public Affairs and Chief Sustainability Officer at Intel, shares insights into implementing heat recovery systems. 

This includes considerations like “pinch analysis” for all seasons, ensuring sufficient heat generation, and evaluating regional energy prices to justify investments.

Intel’s journey to integrate heat recovery into its production projects highlights the transformative potential of sustainable practices in the tech industry. 

What started as a complex endeavor has now become routine, showcasing Intel’s commitment to environmental responsibility and setting a benchmark for other corporations to follow suit.

Electric water heater becomes a source of energy

In a similar manner of getting energy, water-related, there’s a surge of popularity in electric water heaters.

In Australia, electric water heaters are a fully electric and renewable power source which has become an unassuming hero.

Approximately half of Australian households rely on electric water heaters, storing vast amounts of energy in the form of hot water. 

Electric water heater installation at the back

Surprisingly cost-effective, a 300-litre tank can store energy equivalent to a second-generation Tesla Powerwall but at a fraction of the cost. 

The potential is enormous, as research from the UTS Institute for Sustainable Futures suggests that electric water heaters could store as much energy as over 2 million home batteries.

It can potentially save over A$6 billion annually on energy bills and drive us closer to achieving net-zero carbon emissions.

To accelerate the reduction of emissions by 2030 and achieve net-zero by 2050, the call is for policies that swiftly replace gas water heaters with “smart” electric water heaters. 

These intelligent devices can adapt to changes in electricity supply and demand across the grid, soaking up excess renewable energy during off-peak times, particularly from solar sources. 

A Japanese electric water heater. Photo by DryPot Wikimedia Commons

This dual-purpose functionality can significantly contribute to the reduction of greenhouse gas emissions and enhance the stability of the electricity grid.

Three main types of electric water heaters exist: conventional “resistance” heaters, solar water heaters, and more recent “heat pump” units. 

Initially, resistance heaters produced higher emissions compared to their gas counterparts. 

However, as Australia’s energy landscape shifts towards renewables, particularly solar, projections indicate that gas will become the most greenhouse-intensive water-heating option by 2030. 

By 2040, emissions from electric water heaters are expected to be substantially lower than those from gas heaters, marking a pivotal shift in emission dynamics.

Priorities for a sustainable future

an electric water heater. Photo by Steven Pavlov Wikimedia Commons

The lifespan of water heaters extends for 15 years or more, emphasizing the importance of current installation choices in homes. 

Urgently replacing gas heaters with electric counterparts is crucial to aligning with our evolving energy landscape. 

As various scenarios were explored, one stood out: a future where gas water heaters are phased out in favor of electric alternatives. 

Beyond the environmental benefits, this transition promises significant cost savings, with an estimated $6 billion annually by 2040.

Water heaters leading to grid stability

While solar and wind power stand out as economical methods of electricity generation, maintaining grid stability remains a challenge. 

Electric water heaters emerge as a cost-effective solution to store large amounts of energy and provide the necessary demand flexibility. 

Smart electric water heaters, emphasizing demand flexibility, could potentially add 30GWh of daily flexible demand capacity, equivalent to over 2 million home batteries across the National Electricity Market.

Alumilux Water Heater vintage ad. It could use electric or gas. Picture credit: Steve Shook Wikimedia Commons

A nostalgic callback to the 1950s, “off-peak hot water” involved electricity providers switching household water heaters off during the day and on at night. 

This practice aimed to balance demand and supply, offering customers discounted prices. 

As we embrace electrified hot water once again, the choice between resistance and heat pump technology emerges. 

Striking a balance between flexibility and efficiency, the research suggests that a combination of both technologies could offer the most comprehensive solution.

This will provide benefits to customers through off-peak electricity rewards, enabling network operators to manage water heaters efficiently.

As policies evolve and market reforms are implemented, embracing this unassuming technology could unlock substantial benefits for both consumers and the broader energy landscape, ushering in a greener, more sustainable future.

 

Sources:

https://www.greenbiz.com/article/intel-using-hot-water-cut-natural-gas-use-its-factories

https://theconversation.com/using-electric-water-heaters-to-store-renewable-energy-could-do-the-work-of-2-million-home-batteries-and-save-us-billions-204281

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