For manufacturers, 'going green' can be good for business and the environment

Washington, DC – Reducing U.S. greenhouse gas (GHG) emissions will require far-reaching efforts in all sectors of the economy; significant savings generated by “going green” can outweigh the costs over time, says the McKinsey & Company report "Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost." It's important for the profession of control engineering because smarter engineering can help create savings, and instrumentation helps measure progress.


Washington, DC – Reducing greenhouse gas (GHG) emissions in the United States will require far-reaching efforts spanning all sectors of the economy, but significant savings generated by “going green” can outweigh the costs over time, so says the newly-released McKinsey & Company

Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?

" The report is important for the profession of control engineering because smarter engineering can help create savings, and instrumentation helps measure progress.

Based on information gathered via more than 200 interviews with representatives from government agencies, public and private companies, academic institutions and research foundations, the report provides a comprehensive overview of

According to the report, annual GHG emissions within the United States will increase from 7.3 gigatons of carbon-dioxide equivalents (CO 2 e) to 9.7 gigatons by 2030. (As a frame of reference, all of the light-duty vehicles used in the United States today collectively produce only 1 gigaton.) Congress is currently reviewing legislative options aimed at keeping these levels in-check during that time period, but there is a significant amount of debate surrounding the costs required to do so… particularly for industrial organizations.

The study revealed that the industrial sector alone can reduce emissions by 620– 770 megatons, and that the associated energy savings can outweigh the cost of making the changes necessary to meet these reduction goals. However, the report does acknowledge that it will require a substantial investment in equipment upgrades and process changes which inevitably compete with other capital cost needs within the plant.


, one of the main underwriters of the report, is taking an active role in helping industrial organizations to make those investments more palatable. Harsh Chitale, vice president of strategy and global marketing for Honeywell Process Solutions, spoke with Control Engineering after the results of the McKinsey study were announced and detailed the steps his organization is taking to accelerate the deployment and adoption of green technologies.

“We understand that making the initial investment in energy efficient solutions can be challenging,” stated Chitale.

According to Chitale, Honeywell is helping manufacturers in three key areas:

1) Promoting and facilitating deeper deployment of energy efficient solutions;
Chitale states that there are untapped opportunities to drive deeper deployment of energy efficient technologies within industrial organizations– both within smaller organizations that have not yet invested in ‘green’ solutions, and larger organizations that have only made initial energy conservation investments. By promoting and bundling those technologies in a manner that is easily deployable, as well as sharing best practices for implementation, Honeywell is helping companies to identify and pursue improved energy efficiency at a much deeper level.

2) Establishing the financial justification necessary to invest in energy saving technologies; and...
Many organizations lack the proper in-house resources to effectively quantify and demonstrate the ROI for these investments. Honeywell has bridged that gap by developing a consulting function within the business and helping customers to create the business case necessary to secure approval and move forward with the required investments.

3) Removing the barriers for entry to implement energy-saving technologies.
To make the business case even more digestible, Honeywell has developed programs where some customers can pay for their investments based on the savings they receive.

“In selected industries, we work with Honeywell Global Finance and offer a program where Honeywell actually owns the assets which are installed within a customer site and the customer pays for those investments based on the savings they receive,” said Chitale. “By doing so, we enable these organizations to implement solutions in a cash flow positive, balance sheet neutral way.”

Once the technology is in place, however, many organizations will opt for the more “traditional” purchasing model.

“What we have seen is that some customers will go with this financing approach for the first one or two programs, but will move to purchasing the assets because they have seen the return and want to gain the benefits of having those assets on their balance sheets,” Chitale continued.

Honeywell can take such a bold approach due in part to its experience as a global organization. With over 50% of Honeywell’s revenues coming from outside of North America, the company has experience in implementing solutions in geographies (such as Europe) where the green movement has already taken root. According to Chitale, they have seen first-hand how organizations which take the necessary steps to reduce energy consumption can dramatically reduce associated costs and operate more profitably.

Click here to visit McKinsey & Company online and download a full copy of the report


Also, be sure to check out the upcoming Control Engineering features “Energy as a process variable” in the January 2008 issue and the April 2008 cover story on “Green manufacturing– control and compliance.”

Also see: “

Green manufacturing comes of age


Marc Moschetto , editorial director
Control Engineering News Desk
( Register here and scroll down to select your choice of eNewsletters free .)

The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Doubling down on digital manufacturing; Data driving predictive maintenance; Electric motors and generators; Rewarding operational improvement
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Research team developing Tesla coil designs; Implementing wireless process sensing
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas engines; New applications for fuel cells; Large engines become more efficient; Extending boiler life

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me