Economic growth requires energy — to build homes, to develop medicine, to power vehicles, and to manufacture products that are essential to our daily lives. As the world’s economies grow, so too does energy consumption. Today over 85% of the world’s energy needs are met with fossil fuels such as oil, coal, and natural gas. In the United States the use of natural gas for electric power generation has grown by more than 75% since 1990. Meanwhile, natural gas production has failed to keep pace with demand — resulting in a fourfold increase in domestic natural gas prices over the past six years and extreme price volatility. These high and volatile U.S. natural gas prices have challenged the competitiveness of manufacturers in a number of the nation’s key industries, such as chemicals, fertilizer, and pulp & paper — forcing the permanent shutdown of some U.S. plants. At the same time, the surging price for domestic natural gas has resulted in higher electric and natural gas bills for residential consumers.
In order to return domestic natural gas prices to competitive levels — and to preserve the global competitiveness of U.S. manufacturers that rely upon natural gas — experts agree that more efforts must be made to bring supply into a more viable balance with projected demand.
The recently passed U.S. energy legislation addresses this challenge in part by promoting aggressive energy conservation and efficiency, improving the energy infrastructure and diversifying the nation’s energy portfolio with alternative energy sources. Emission-free nuclear power, clean coal technology, and practical renewables, may all play an increasingly important role in meeting the energy needs of the future, while addressing environmental challenges. In the near-term, experts agree that one of the best approaches to reducing demand for domestic natural gas is to focus on energy efficiency and conservation.
Energy Efficiency and Conservation at Dow
The Dow Chemical Company is an industry leader in energy efficiency and conservation. Dow’s commitment to energy efficiency and conservation is evidenced in part by our aggressive goals for reducing our energy intensity, measured as the amount of energy used per unit of product. In 1994 Dow established a goal to reduce its energy intensity by 20% by 2005. Dow exceeded that goal by year-end 2004, reaching an energy intensity improvement of 21%. The Company is now setting yet another aggressive energy efficiency goal for 2015.
Dow is also an innovator in cogeneration, the simultaneous production of electricity and steam, currently used to produce 75% of the electricity needed to manufacture DOW products worldwide. Cogeneration typically uses 20 to 40% less fuel than conventional power generation. Cogeneration also reduces the emissions of carbon dioxide (CO2) and helps to improve air quality, compared to conventional utility power.
Products to Help Consumers Save Energy — and Money
Dow is committed to being part of the energy solution in other ways as well, producing numerous products that help consumers reduce their energy consumption — and lower their electricity bills, while making a positive difference for the environment.
Cars, homes and buildings use significant amounts of energy. Dow continues to offer many energy efficient solutions, including STYROFOAM* brand insulation and GREAT STUFF™ polyurethane foam sealants. Such solutions can help reduce energy use for homeowners and businesses alike by 20 – 30%.
Other Dow products help consumers spend less at the pump. Dow Automotive offers a variety of plastics, composites and adhesives that help make vehicles stronger yet lighter, improving overall gas mileage. BETAFOAM™ structural foams, for example, can be injected into vehicle cavities to add structure while allowing sheet metal to be down-gauged. This can reduce weight by several kilograms per vehicle. Similarly, BETAMATE™ structural adhesives can enhance vehicle structure and reduce weight by replacing heavier welds and mechanical fasteners.
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