Carbon-Reducing Technologies and U.S.

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Job Opportunities in Recycling Industrial Waste Energy The Oak Ridge National Laboratory summarizes the U.S. potential of CHP as follows: If the United States adopted high-deployment policies to achieve 20 percent of generation capacity from CHP by 2030, it could save an estimated 5.3 quadrillion Btu (Quads) of fuel annually, the equivalent of nearly half the total energy currently consumed by US households. Cumulatively through 2030, such policies could also generate $234 billion in new investments and create nearly 1 million new highly-skilled, technical jobs throughout the United States. CO2 emissions could be reduced by more than 800 million metric tons (MMT) per year, the equivalent of taking more than half of the current passenger vehicles in the US off the road. In this 20 percent scenario, over 60 percent of the projected increase in CO2 emissions between now and 2030 could be avoided (Oak Ridge National Laboratory, 2008). Because industrial waste energy recycling systems are highly individualized and vary widely in scale, size of equipment, length of piping, and other features, it is difficult to estimate the number of associated job opportunities. In the Oak Ridge scenario described above, the job potential would reach 1 million new highly-skilled, technical jobs throughout the United States. Looked at another way, the following four layers of employment can be associated specifically with projects to recycle industrial waste energy:1 1) Jobs in the manufacture of waste energy recovery equipment. These employers range from large multinational corporations to small, specialized firms. Most have complex supply chains that can branch all over the world, although many of the skills and materials needed are readily available in the United States. 2) Jobs in creating on-site “energy islands” in host facilities. These jobs include welders, pipefitters, design engineers, and construction workers. Waste energy recycling systems are not simply manufactured, but rather custom designed and implemented; thus installation services, including engineering, typically represent about 50% of project costs (Elliott, 2009). These are all local jobs. Many of the design/engineering skills needed in this part of the value chain are increasingly in short supply, making it difficult for firms to find the skilled labor they need (Case, 2009). Much of the required traditional engineering expertise is more typical of today’s graying workforce. Hence, an important future challenge is to train enough new engineers with the skills and creativity necessary to create these individualized systems (S. Casten, 2009). 3) Jobs in operating on-site energy islands. In the West Virginia Alloys plant for example, (see value chain diagram) 15-20 new workers are required to run the steam plant/power facility. 4) Jobs resulting from increased competitiveness. The industrial host facility can improve its margins substantially through lower energy costs and higher productivity. For example, in addition to the above-mentioned jobs to run the West Virginia Alloys energy island, an estimated 1 This four-point job discussion is based on (S. Casten, 2008). 10

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