Illinois Manufacturing: Optimizing Production Lines for Energy Efficiency

Illinois manufacturing represents a significant portion of the state's economic output—and an equally significant portion of its energy consumption. From food processing and metalworking to automotive supply and chemical production, manufacturing facilities consume energy at rates 5-20 times higher per square foot than commercial office space.

This energy intensity creates both challenge and opportunity. Manufacturing facilities feel every utility rate increase directly in their cost of goods sold, making energy efficiency a competitive imperative. But the same intensity means that efficiency improvements deliver proportionally larger absolute savings—a 10% reduction in a $500,000 annual energy bill adds $50,000 directly to the bottom line.

Illinois manufacturers benefit from a supportive efficiency ecosystem. ComEd, Ameren, and gas utilities operate robust incentive programs. The state's manufacturing extension partnership provides technical assistance. And the competitive electricity market enables strategic procurement alongside operational improvements.

This guide provides Illinois manufacturers with a comprehensive framework for identifying, prioritizing, and implementing energy efficiency opportunities across production operations.

Understanding Manufacturing Energy Use: Where Your Dollars Go

Energy Use Breakdown

Before optimizing, understand where energy is consumed:

Motor Systems (60-70% of electricity) Motors drive almost everything in manufacturing:

• Compressors (air, refrigeration, process)
• Pumps (process, cooling, hydraulic)
• Fans and blowers (ventilation, process)
• Conveyors and material handling
• Machine tools and production equipment

Process Heating (Often largest gas use) Thermal processes dominate gas consumption:

• Furnaces and ovens
• Dryers and curing systems
• Steam generation
• Heat treating
• Melting and casting

Compressed Air (10-30% of electricity) Pneumatic systems prevalent in manufacturing:

• Tool operation
• Actuation and control
• Conveying and handling
• Cleaning and blowing

HVAC and Lighting (15-25% of electricity) Building systems support operations:

• Space conditioning
• Ventilation and air quality
• Lighting for work areas
• Office and support spaces

Process-Specific Equipment Industry-dependent systems:

• Welding equipment
• Coating and painting
• Material processing
• Quality control systems

Energy Cost Structure

Illinois manufacturers pay for energy through multiple components:

Electricity

• Supply charges (per kWh)
• Delivery charges (per kWh)
• Demand charges (per kW of peak demand)
• Capacity charges (PJM capacity tag)
• Transmission charges

Natural Gas

• Commodity charges (per therm)
• Delivery charges
• Demand charges (large users)

Understanding Your Rate Structure Request rate analysis from your utility or consultant:

• Identify which components dominate your bill
• Understand time-of-use periods if applicable
• Know your peak demand patterns
• Calculate your effective rate (total cost ÷ total kWh)

For detailed rate analysis guidance, see our resource on ComEd delivery vs. supply—reading the bill.

Benchmarking Your Performance

Compare your facility to industry norms:

Key Metrics

• Energy cost per unit of production
• kWh per unit (or per pound, per square foot, etc.)
• Energy cost as percentage of revenue
• Energy use intensity (EUI) for building

Data Sources

• ENERGY STAR Portfolio Manager (if applicable)
• Industry association benchmarks
• Manufacturing extension partnership data
• EPA/DOE industry profiles

Continuous Improvement Framework

• Establish baseline measurements
• Set improvement targets
• Track progress monthly
• Compare year-over-year (weather-normalized)

Motor System Optimization: The Biggest Opportunity

Motor Efficiency Fundamentals

Motors consume the majority of manufacturing electricity. Optimization strategies:

Premium Efficiency Motors NEMA Premium motors use 2-4% less energy than standard:

• Mandatory for new installations (DOE rules)
• Replace failed motors with premium
• Consider early replacement for heavily-used motors
• Utility rebates available

Right-Sizing Motors Oversized motors waste energy:

• Motors most efficient at 75-85% load
• Under-loaded motors have poor power factor
• Audit motors to identify oversizing
• Size replacements correctly

Power Factor Correction Low power factor indicates motor inefficiency:

• Add capacitors to improve power factor
• Some utilities penalize low power factor
• Reduces electrical distribution losses
• Consult with electrical engineer

Variable Frequency Drives (VFDs)

VFDs represent the single largest efficiency opportunity for many manufacturers:

How VFDs Save Energy

• Variable loads don't need full motor speed
• Power varies with cube of speed (affinity laws)
• 20% speed reduction = ~50% power reduction
• Enables precise process control

Best Applications

• Centrifugal pumps with variable flow
• Fans with variable air requirements
• Cooling tower fans
• Conveyor systems with variable speed needs
• Hydraulic systems

Not Ideal For

• Constant-speed applications
• Positive displacement pumps (linear energy relationship)
• Applications requiring full torque at low speed
• Very small motors (economics don't work)

Implementation Best Practices

• Start with largest variable-load motors
• Ensure compatible motor (inverter-duty rated ideal)
• Install proper EMI/RFI filtering
• Commission for optimal operation
• Train operators on new capabilities

Example: Cooling Water System VFD

Parameter	Before VFD	After VFD
Motor size	75 HP	75 HP
Operating hours	6,000/year	6,000/year
Average speed	100%	70%
Average power	75 HP	26 HP
Annual kWh	335,655	116,390
Annual cost ($0.10/kWh)	$33,566	$11,639
Annual savings	—	$21,927
VFD cost	—	$8,000
Utility rebate	—	($4,000)
Net cost	—	$4,000
Simple payback	—	2.2 months

Pump and Fan Systems

Pump Optimization Beyond VFDs, optimize pump systems:

• Impeller trimming for oversized pumps
• Parallel pump staging
• System curve optimization
• Pipe sizing and friction reduction
• Control valve elimination (use VFD instead)

Fan System Optimization Similar principles apply:

• Proper fan selection for system
• Ductwork sizing and layout
• Belt maintenance (cogged belts save 2-3%)
• Inlet and outlet conditions
• System effect considerations

For detailed optimization guidance, see our resource on air compressor optimization quick wins.

Compressed Air System Efficiency: Stopping the Hidden Drain

The True Cost of Compressed Air

Compressed air is often called the "fourth utility"—and is typically the most expensive:

• 8 HP of electricity produces 1 HP of compressed air work
• System efficiency often 10-15%
• $0.10/kWh electricity = $0.25-0.40 per 1,000 CF of air

Common Inefficiencies

Leaks The single largest waste:

• Typical systems: 20-30% leakage
• A single 1/4" leak: $8,000/year
• Leakage increases over time if not addressed
• Ultrasonic leak detection identifies sources

Artificial Demand Higher pressure than needed:

• Every 2 PSI increase = 1% energy increase
• Oversized regulators create excess pressure
• End-use requirements often lower than line pressure
• Pressure/flow controllers can optimize

Inappropriate Uses Alternatives often more efficient:

• Cooling: Use fans or blowers (10x more efficient)
• Cleaning: Use vacuums or brushes
• Conveying: Consider mechanical alternatives
• Agitation: Mixers use less energy

Compressor Control Poor control wastes energy:

• Load/unload cycling losses
• Modulation inefficiency at partial load
• Improper sequencing of multiple compressors
• Insufficient storage causing short cycling

Optimization Strategies

Leak Detection and Repair Implement systematic program:

1. Conduct ultrasonic survey
2. Tag and document all leaks
3. Prioritize by estimated loss
4. Repair during scheduled downtime
5. Repeat quarterly

Pressure Optimization Reduce to minimum required:

1. Survey end-use pressure requirements
2. Identify pressure drop sources
3. Optimize distribution piping
4. Install point-of-use regulators
5. Reduce header pressure incrementally

System Controls Optimize compressor operation:

• VFD compressors for variable load
• Proper sequencing of multiple machines
• Adequate storage capacity
• Automated controls vs. manual

Heat Recovery Compressors generate significant heat:

• 80-90% of electrical input becomes heat
• Heat recovery for space or process heating
• Hot water generation
• Pre-heating applications

Illinois Compressed Air Programs

Utility Offerings

• ComEd compressed air studies (subsidized or free)
• Ameren compressed air program
• Custom incentives for system improvements
• Prescriptive rebates for efficient compressors

Typical Project System assessment revealing:

• 25% leak rate
• 15 PSI excess pressure
• Poor compressor sequencing

After optimization:

• 30-40% energy reduction
• $15,000-30,000 annual savings (for moderate system)
• Utility incentives: $5,000-10,000
• Simple payback: 6-18 months

Process Heating and Steam Systems: Addressing Thermal Loads

Process Heating Efficiency

Combustion Efficiency Optimize burner performance:

• Air-to-fuel ratio adjustment
• Combustion analysis and tuning
• Burner maintenance and replacement
• Oxygen trim controls for larger systems

Heat Recovery Capture waste heat:

• Stack economizers
• Recuperators and regenerators
• Heat exchangers on exhaust streams
• Cascade heating (use waste heat for lower-temp processes)

Insulation Minimize heat losses:

• Insulate all hot surfaces (pipe, tanks, equipment)
• Identify and repair damaged insulation
• Add covers to open tanks
• Insulate even if "warm"—losses are significant

Controls Avoid heating when not needed:

• Setback during non-production
• Zone heating where possible
• Automatic shutdown on idle
• Precise temperature control

Steam System Optimization

Many manufacturing facilities use steam for process heating:

Generation Efficiency

• Boiler tuning and combustion efficiency
• Blowdown heat recovery
• Economizers on stack
• Proper boiler sizing and staging
• Condensate return maximization

Distribution Efficiency

• Steam trap maintenance (survey annually)
• Failed traps waste 10-20% of system steam
• Insulation integrity
• Pressure optimization

End-Use Efficiency

• Proper trap selection
• Heat exchanger sizing
• Condensate recovery
• Flash steam utilization

Illinois Programs Gas utilities offer incentives:

• Nicor Gas boiler rebates
• Steam trap rebates
• Insulation incentives
• Custom incentives for system improvements

Production Scheduling and Demand Management

Demand Charge Management

Demand charges often represent 30-50% of electric bills:

Understanding Demand

• Measured as highest 15-minute average kW
• Sets billing demand for the month
• Ratchet clauses may carry peaks for months
• Peak shaving strategies essential

Production Scheduling Strategies

• Stagger equipment startups
• Sequence high-demand processes
• Shift discretionary loads to off-peak
• Avoid coincident operation of large equipment

Technology Solutions

• Demand monitoring and alerting
• Automated load shedding
• Energy storage for peak shaving
• Backup generation for peak reduction

Time-of-Use Optimization

Illinois Rate Structures Many industrial rates include time differentiation:

• Peak periods: Highest rates
• Shoulder periods: Moderate rates
• Off-peak: Lowest rates

Scheduling Opportunities

• Shift discretionary production to off-peak
• Charge thermal storage during off-peak
• Batch processes during lowest-cost periods
• Maintain continuous processes through peaks (don't restart)

Coincident Peak Management

PJM Capacity Costs Your capacity tag (PLC) is set by consumption during system peaks:

• Top 5 PJM peaks annually determine tag
• Each kW during peaks costs $50-150/year for 12 months
• Peaks typically occur summer weekday afternoons
• Alert services predict peaks 24-48 hours ahead

Response Strategies

• Subscribe to coincident peak alerts
• Develop curtailment playbook
• Train operators on response procedures
• Automate response where possible

For coincident peak strategies, see our resource on coincident peak alerts—setting up a playbook.

Demand Response Participation

Revenue Opportunity Illinois manufacturers can earn payments for load flexibility:

• PJM capacity market (through aggregators)
• Utility demand response programs
• Economic curtailment opportunities

Typical Value

• Capacity payments: $50-150/kW-year
• Event payments: Additional per-event compensation
• Combined value: $100-300/kW-year for committed load

Implementation

• Identify curtailable load
• Enroll with aggregator or utility
• Develop response procedures
• Respond to events reliably

Conclusion: Building a Culture of Energy Efficiency

Energy efficiency in manufacturing is not a one-time project—it's an ongoing discipline that becomes part of operational excellence. The most successful Illinois manufacturers treat energy like any other input cost: measured, managed, and continuously improved.

Key principles for manufacturing energy management:

1. Measure everything: You can't improve what you don't measure. Install submetering on major systems, track performance metrics, and benchmark against industry norms.

2. Prioritize by impact: Focus on the biggest opportunities first. Motor systems and compressed air typically offer the highest-ROI investments.

3. Leverage utility programs: Illinois utilities offer substantial incentives that can cover 30-50% of project costs. Don't leave money on the table.

4. Engage operators: The people running equipment every day see opportunities that engineers miss. Build energy awareness into your culture.

5. Schedule strategically: Production timing affects energy costs significantly. Incorporate energy considerations into scheduling decisions.

6. Monitor continuously: Efficiency gains erode without attention. Implement ongoing monitoring and regular reassessment.

7. Think system-wide: The best savings often come from optimizing systems rather than individual components.

The competitive advantage from energy efficiency is permanent. Every dollar saved flows directly to profit, year after year. For Illinois manufacturers competing in global markets, operational excellence includes energy excellence.

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Sources:

• U.S. Department of Energy Advanced Manufacturing Office
• EPA ENERGY STAR Industrial Resources
• Compressed Air and Gas Institute
• ComEd Business Energy Efficiency
• Ameren Illinois ActOnEnergy