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8 Industry UNIDO Water Management Unit (UNIDO) and John Payne (SNC Lavalin) 8.1 The relationship of water and energy with industry In its internal operations and with its external reach, industry both uses and abuses water and, in so doing, consumes energy. Industry seeks water and energy efficiency though the two are not always compatible and there are trade-offs to be made. Efficiencies are usually driven in terms of cost−benefit as they relate to company profits, although government policy and legislation can significantly influence the situation. When these efficiencies translate to reduced water and energy use in a plant, one potential result is a reduction in water and energy stress outside the factory walls in the communities and river basins where it operates. In addition to the use (and therefore the cost and economics) of water and energy along supply and value chains (WWAP, 2012, ch. 20), there is an increasing trend towards corporate social responsibility (CSR) and a company’s licence to operate, linked with broader public policy and legislation. Many industries see their direct interaction with water and energy occurring primarily at a plant or factory level, yet the value chain approach is increasingly used by several multinationals, and incorporated into their risk assessment and risk management strategies. At the end use level, water is used in a variety of ways – as a raw material, for steam, for heating and cooling, as a solvent, for cleaning, and for transport of waste and particulates. Energy is further required to move, heat, cool, treat, discharge or recycle the water. Water consumption and efficiency is therefore an important determinant in energy efficiency (UNIDO, 2011). Industry uses energy independently of water as well; for example, to power machinery and equipment, and to heat and cool buildings. Energy is used outside production and manufacturing, for example in transporting goods. Water footprints often capture external or indirect factors, such as industry’s indirect relationship with embedded water to produce energy used in its facilities. Virtual water is found in the supply chains of materials and equipment employed by industry and in the downstream use of products by consumers, which use energy as well. Such factors have a broader reach outside the manufacturing or production process. There is a relationship of water and energy with industry both in and out of the ‘water box’ (WWAP, 2009). 8.2 The status of water and energy in industry The separate means by which water use and energy consumption are managed in industry generates information and data relating to each sector’s individual use and efficiency, but essentially no linkage between the two. Information on a worldwide scale is generalized and is influenced by industrialized nations, such as those in the OECD, and by emerging industrial countries, such as China and India. Useful data from individual countries illustrate some general points and trends as do detailed data within individual sectors and companies. However, there is a need to relate water and energy indicators to one another. 8.2.1 Amounts and trends Industry uses proportionately significantly more of the energy supply than it does of the water supply. The industrial sector accounts for about 37% of primary global energy use (UNIDO, 2008). Within this sector in 2010, five principal energy intensive industries accounted for about 50% of that use: chemicals (19%), iron and steel (15%), non-metallic minerals (7%), pulp and paper (3%) and non-ferrous metals (2%) (US EIA, 2013). Worldwide, industry accounts for 19% of all water withdrawals, but with big regional variations: 2% in South Asia and 77% in Western Europe (FAO AQUASTAT, n.d.). In England and Wales, the manufacturing sector is the largest user of water, with 45% to 55% of the directly abstracted volume from non-tidal sources, excluding major non-consumptive use. The top five abstraction categories were chemicals and chemical products, basic metals, paper and paper products, beverages, and food products – a noticeable overlap with the energy intensive industries noted above (WRAP, 2011). World energy consumption increased by 186% between 1973 and 2010 and for the same period industry’s use WWDR 2014 INDUSTRY 69 CHAPTERPDF Image | Water and Energy
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