Cash Flow Impacts of Industrial Steam Efficiency

Abstract

Steam efficiency is a major opportunity for manufacturers to boost financial performance in an increasingly competitive environment. An immediate policy challenge is to raise manufacturers' awareness of these opportunities. A major barrier to accomplishing this is the communications disconnect between plant superintendents and the financial decision-makers who set capital budgeting priorities. Energy engineering literature is rich with technical how-to discussions; the more daunting task is to overcome the perceptual barriers that preclude the approval of these initiatives. This article assumes that strong, financial justification is the key to the full realization of steam efficiency opportunities. That premise is followed by a step-wise review of the ways that steam efficiency can boost a manufacturer's return on investment.