Banking on Energy Efficiency to Reduce Decarbonization Costs

Eastman, like many companies, has made long-term decarbonization commitments. It is widely recognized that industrial decarbonization can be very expensive and that energy efficiency is not only the low-cost option but also the preferred first lever for decarbonization. To achieve decarbonization goals at a lower cost, Eastman developed a process for evaluating the “reasonable entitlement” for energy efficiency. This approach considered best-ever site performance, DOE information, peer benchmarking, and internal results to ultimately quantify reasonable entitlement. The reasonable entitlement quantity was then compared to the demand reduction needed to achieve significant capital cost reductions for anticipated decarbonization projects. While energy efficiency alone wasn’t sufficient to achieve the desired demand reduction, it was a significant enabler. This presentation will include a discussion of how to quantify energy efficiency reasonable entitlement, how to compare that quantity to the desired reduction in demand, and other ideas to consider for closing the gap.