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Tracking Industrial
Energy Efficiency and
CO
2
Emissions
I N T E R N A T I O N A L E N E R G Y A G E N C Y
In support of the G8 Plan of Action
ENERGY
INDICATORS
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INTERNATIONAL ENERGY AGENCY
The International Energy Agency (IEA) is an autonomous body which was established in
November 1974 within the framework of the Organisation for Economic Co-operation and
Development (OECD) to implement an inter national energy programme.
It carries out a comprehensive programme of energy co-operation among twenty-six of
the OECD thirty member countries. The basic aims of the IEA are:
T
To maintain and improve systems for coping with oil supply disruptions.
T
To promote rational energy policies in a global context through co-operative relations
with non-member countries, industry and inter national organisations.
T
To operate a permanent information system on the international oil market.
T
To improve the world’s energy supply and demand structure by developing alternative
energy sources and increasing the efficiency of energy use.
T
To assist in the integration of environmental and energy policies.
The IEA member countries are: Australia, Austria, Belgium, Canada, Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Republic of Korea,
Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, United Kingdom and United States. The Slovak Republic and Poland are likely to
become member countries in 2007/2008. The European Commission also participates in
the work of the IEA.
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
The OECD is a unique forum where the governments of thirty democracies work together
to address the economic, social and environmental challenges of globalisation. The OECD
is also at the forefront of efforts to understand and to help governments respond to new
developments and concerns, such as corporate governance, the information economy
and the challenges of an ageing population. The Organisation provides a setting where
governments can compare policy experiences, seek answers to common problems, identify
good practice and work to co-ordinate domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic
of Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak
Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States.
The European Commission takes part in the work of the OECD.
© OECD/IEA, 2007
International Energy Agency (IEA),
Head of Communication and Information Offi ce,
9 rue de la Fédération, 75739 Paris Cedex 15, France.
Please note that this publication is subject
to specific restrictions that limit its use and distribution.
The terms and conditions are available online at
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FOREWORD 3
FOREWORD
Improving energy efficiency is the single most important first step toward achieving
the three goals of energy policy: security of supply, environmental protection and
economic growth.
Nearly a third of global energy demand and CO
2
emissions are attributable to
manufacturing, especially the big primary materials industries such as chemicals and
petrochemicals, iron and steel, cement, paper and aluminium. Understanding how
this energy is used, the national and international trends and the potential for
efficiency gains, is crucial.
This book shows that, while impressive efficiency gains have already been achieved
in the past two decades, energy use and CO
2
emissions in manufacturing industries
could be reduced by a further quarter to a third, if best available technology were to
be applied worldwide. Some of these additional reductions may not be economic in
the short- and medium-term, but the sheer extent of the potential suggests that
striving for significant improvements is a worthwhile and realistic effort. A systems
approach is needed that transcends process or sector boundaries and that offers
significant potential to save energy and cut CO
2
emissions.
The growth of industrial energy use in China has recently dwarfed the combined
growth of all other countries. This structural change has had notable consequences
for industrial energy use worldwide. It illustrates the importance of more
international co-operation.
The IEA has undertaken an extensive programme to assess industrial energy
efficiencies worldwide. This study of industrial energy use represents important
methodological progress. It pioneers powerful new statistical tools, or “indicators”
that will provide the basis for future analysis at the IEA. At the same time it contains
a wealth of recent data that provide a good overview of energy use for
manufacturing worldwide. It also identifies areas where further analysis of industrial
energy efficiency is warranted.
Industry has provided significant input and support for this analysis and its
publication is intended as a basis for further discussion. I am encouraged by the
strong commitment that industry is demonstrating to address energy challenges and
welcome the valuable contributions from the Industrial Energy-Related Technologies
and Systems Implementing Agreement of the IEA collaborative network.
This book is part of the IEA work in support of the G8 Gleneagles Plan of Action that
mandated the Agency in 2005 to chart the path to a “clean, clever and competitive
energy future”. It is my hope that this study will provide another step toward the
realisation of a sustainable energy future.
This study is published under my authority as Executive Director of the IEA and does
not necessarily reflect the views of the IEA Member countries.
Claude Mandil
Executive Director
ACKNOWLEDGEMENTS
This publication was prepared by the International Energy Agency. The work was co-
ordinated by the Energy Technology and R&D Office (ETO). Neil Hirst, Director of the
ETO, provided invaluable leadership and inspiration throughout the project. Robert
Dixon, Head of the Energy Technology Policy Division, offered essential guidance
and input. This work was done in close co-operation with the Long-Term Co-operation
and Policy Office (LTO) under the direction of Noé van Hulst. In particular, the Energy
Efficiency and Climate Change Division, headed by Rick Bradley, took part in this
analysis. Also the Energy Statistics Division and the Office of Global Energy Dialogue
provided valuable contributions.
Dolf Gielen was the co-ordinator of the project and had overall responsibility for the
design and development of the study. The other main authors were Kamel
Bennaceur, Tom Kerr, Cecilia Tam, Kanako Tanaka, Michael Taylor and Peter Taylor.
Other important contributions came from Richard Baron, Nigel Jollands, Julia
Reinaud and Debra Justus.
Many other IEA colleagues have provided comments and suggestions, particularly
Jean-Yves Garnier, Elena Merle-Beral, Michel Francoeur, Dagmar Graczyk, Jung-Ah
Kang, Ghislaine Kieffer, Olivier Lavagne d’Ortigue, Audrey Lee, Isabel Murray and
Jonathan Sinton. Production assistance was provided by the IEA Communication and
Information Office: Rebecca Gaghen, Muriel Custodio, Corinne Hayworth, Loretta
Ravera and Bertrand Sadin added significantly to the material presented. Simone
Luft helped in the preparation and correction of the manuscript. Marek Sturc
prepared the tables and graphics.
We thank the Industrial Energy-Related Technology Systems Implementing Agreement
(IETS); notably Thore Berntsson (Chalmers University of Technology, Chair of the IETS
Executive Committee) for its valuable contributions to a number of chapters in this report.
A number of consultants have contributed to this publication: Sérgio Valdir Bajay (State
University of Campinas, Brazil); Yuan-sheng Cui (Institute of Technical Information for the
Building Materials Industry, China); Gilberto De Martino Jannuzzi (International Energy
Initiative, Brazil); Aimee McKane (Lawrence Berkeley National Laboratory, United States);
Yanjia Wang (Tsinghua University, China) and Ernst Worrell (Ecofys, Netherlands).
We thank the IEA Member country government representatives, in particular the
Committee on Energy Research and Technology, the End-Use Working Party and the
Energy Efficiency Working Party and others that provided valuable comments and
suggestions. In particular, we thank Isabel Cabrita (National Institute of Industrial
Engineering and Technology, Portugal); Takehiko Matsuo (Ministry of Foreign Affairs,
Japan); Hamid Mohamed (National Resources Canada) and Yuichiro Yamaguchi
(Ministry of Economy, Trade and Industry, Japan).
Our appreciation to the participants in the joint CEFIC – IEA Workshop on Feedstock
Substitutes, Energy Efficient Technology and CO
2
Reduction for Petrochemical
Products, 12-13 December 2006 who have provided information and comments, in
particular Giuseppe Astarita (Federchimica); Peter Botschek (European Chemical
Industry Council); Russell Heinen (SRI Consulting); Hisao Ida (Plastic Waste
Management Institute, Japan); Rick Meidel (ExxonMobil); Nobuaki Mita (Japan
Petrochemical Industry Association); Hi Chun Park (Inha University, Korea); Martin
Patel (Utrecht University); Vianney Schyns (SABIC) and Dennis Stanley (ExxonMobil).
ACKNOWLEDGEMENTS 5
6 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO
2
EMISSIONS
Also we would like to thank the members of the International Fertilizer Association
(IFA) Technical Committee that participated in the joint IFA – IEA Workshop on
Energy Efficiency and CO
2
Reduction Prospects in Ammonia Production, 13 March
2007 that have provided information and comments, in particular Luc Maene and
Ben Muirhead (International Fertilizer Industry Association, France).
We appreciate the information and comments from the International Iron and Steel
Institute (IISI) and the members of its Committee on Environmental Affairs, in
particular Nobuhiko Takamatsu, Andrew Purvis and Hironori Ueno (IISI, Belgium);
Karl Buttiens (Mittal-Arcelor, France); Jean-Pierre Debruxelles (Eurofer, Belgium);
Yoshitsugu Iino (JFE Steel Corporation and Japan Iron and Steel Federation, Japan);
Nakoazu Nakano (Sumitomo Metals, Japan); Teruo Okazaki (Nippon Steel, Japan);
Toru Ono (Nippon Steel, Japan); Larry Kavanagh and Jim Schulz (American Iron and
Steel Institute, United States); Verena Schulz (VoestAlpine, Germany) and Gunnar
Still (ThyssenKrupp, Germany).
Participants in the joint WBCSD – IEA Workshop on Energy Efficiency and CO
2
Emission
Reduction Potentials and Policies in the Cement Industry, 4 – 5 September 2006 and
other experts provided useful information and comments, in particular Andy O’Hare
(Portland Cement Association, United States); Toshio Hosoya (Japan Cement
Association); Yoshito Izumi (Taiheyo Cement Corporation, Japan and Asia-Pacific
Partnership on Clean Development and Climate); Howard Klee (World Business Council
for Sustainable Development, Switzerland); Claude Lorea (Cembureau, Belgium); Lynn
Price (Lawrence Berkeley National Laboratory, United States); Yuan-sheng Cui and
Steve Wang (Institute of Technical Information for Building Materials, China).
In addition, we appreciate the participants in the joint World Business Council for
Sustainable Development – IEA Workshop on Energy Efficient Technologies and CO
2
Reduction Potentials in the Pulp and Paper Industry, 9 October 2006 and other
experts that have provided information and comments, in particular Tom Browne
(Paprican); James Griffiths (World Business Council for Sustainable Development,
Switzerland); Mikael Hannus (Stora Enso, Sweden); Yoshihiro Hayakawa (Oji Paper,
Japan;, Mitsuru Kaihori (Japan Paper Association); Wulf Killman (UN-FAO); Marco
Mensink (Confederation of European Paper Industries, Brussels); Tom Rosser (Forest
Products Association of Canada); Stefan Sundman (Finnish Forest Industries
Federation) and Li Zhoudan (China Cleaner Production Centre of Light Industry).
Chris Bayliss and Robert Chase (International Aluminium Institute, United Kingdom)
are thanked for their comments and suggestions.
We thank the participants in the IEA Workshop on Industrial Electric Motor Systems
Efficiency, 15 – 16 May 2006 and other experts that have provided inputs on
systems and combined hear and power, in particular Pekka Loesoenen, European
Commission (Eurostat); Simon Minett (Delta Energy and Environment); Paul Sheaffer
(Resource Dynamics Corporation, United States); Loren Starcher (ExxonMobil, United
States) and Satoshi Yoshida (Japan Gas Association).
Also, we thank the experts that provided data for and comments on the life cycle
chapter, in particular Reid Lifset (Yale University), Maarten Neelis, Martin Patel and
Martin Weiss (Utrecht University, Netherlands).
This work was made possible through funds provided by the Governments of the G7
countries, which are most appreciated. We are grateful to the UK Government for its
contribution to the China analysis through its Global Opportunities Fund.
Introduction
Manufacturing Industry Energy Use and CO
2
Emissions
General Industry Indicators Issues
Chemical and Petrochemical Industry
Iron and Steel Industry
Non-Metallic Minerals
Pulp, Paper and Printing Industry
Non-Ferrous Metals
Systems Optimisation
Life Cycle Improvements Options
Annexes
1
2
3
4
5
6
7
8
9
10
Table
of
Contents
8 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO
2
EMISSIONS
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table of Contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
List of Figures 13
List of Tables 15
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Chapter 1
INTRODUCTION 31
Scope of Indicator Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Energy and CO
2
Saving Potentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Chapter 2
MANUFACTURING INDUSTRY ENERGY USE
AND CO
2
EMISSIONS 39
Chapter 3
GENERAL INDUSTRY INDICATORS ISSUES 45
Energy Indicators Based on Economic and Physical Ratios . . . . . . . . . . . . . . . . . 45
Methodological Issues 46
Definition of Best Available Technique and Best Practice 48
Data Issues 49
Practical Application of Energy and CO
2
Emission Indicators. . . . . . . . . . . . . . . 51
Pulp, Paper and Printing 51
Iron and Steel 52
Cement 52
Chemicals and Petrochemicals 53
Other Sectors / Technologies 53
International Initiatives: Sectoral Approaches to Developing Indicators . . . . . 54
Intergovernmental Panel on Climate Change Reference Approach 54
Pulp and Paper Initiatives 55
Cement Sustainability Initiative 55
Asia-Pacific Partnership on Clean Development and Climate 56
Benchmarking in the Petrochemical Industry 56
Chapter 4
CHEMICAL AND PETROCHEMICAL INDUSTRY 59
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Global Importance and Energy Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Petrochemicals Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Steam Cracking: Olefins and Aromatics Production 66
Propylene Recovery in Refineries and Olefins Conversion 71
Aromatics Extraction 71
Methanol 72
Olefins and Aromatics Processing 74
Inorganic Chemicals Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Chlorine and Sodium Hydroxide 76
Carbon Black 77
Soda Ash 78
Industrial Gases 80
Ammonia Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Combined Heat and Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Plastics Recovery Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Energy and CO
2
Emission Indicators for the Chemical and
Petrochemical Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Energy Efficiency Index Methodology 88
CO
2
Emissions Index 91
Life Cycle Index 93
Energy Efficiency Potential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Chapter 5
IRON AND STEEL INDUSTRY 95
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Global Importance and Energy Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Indicator Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
System Boundaries 99
Product and Process Differentiation 99
Allocation Issues 99
Feedstock Quality Issues 101
Energy Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Energy Intensity Indicators and Benchmarks 102
Energy Intensity Analysis 103
Efficiency Improvements 106
Coke Ovens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Coke Oven Gas Use 111
Coke Dry Quenching 111
Iron Ore Agglomeration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Ore Quality 115
Blast Furnaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Coal and Coke Quality 119
Coal Injection 120
TABLE OF CONTENTS 9
10 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO
2
EMISSIONS
Plastic Waste Use 121
Charcoal Use 121
Top-Pressure Recovery Turbines 123
Blast Furnace Gas Use 123
Blast Furnace Slag Use 124
Hot Stoves 126
Basic Oxygen Furnaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Basic Oxygen Furnace Gas Recovery 127
Steel Slag Use 127
Electric Arc Furnaces. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Cast Iron Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Direct Reduced Iron Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Steel Finishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Energy Efficiency and CO
2
Reduction Potentials . . . . . . . . . . . . . . . . . . . . . . . . 136
Chapter 6
NON-METALLIC MINERALS 139
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Cement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Global Importance and Energy Use 140
Cement Production Process 140
Energy and CO
2
Emission Indicators for the Cement Industry 162
Lime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Overview 163
Lime Production Process 164
Energy Consumption and CO
2
Emissions from Lime Production 166
Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Overview 166
Glass Production Process 167
Energy Consumption and CO
2
Emissions from Glass Production 168
Ceramic Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Overview 169
Ceramics Production Process 172
Energy Consumption and CO
2
Emissions from Ceramics Production 173
Indicators for Lime, Glass and Ceramics Industries . . . . . . . . . . . . . . . . . . . . . . 174
Chapter 7
PULP, PAPER AND PRINTING INDUSTRY 175
Global Importance and Energy Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Methodological and Data Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
[...]... Results Chemical and Petrochemical The chemical and petrochemical industry accounts for 30% of global industrial energy use and 16% of direct CO2 emissions More than half of the energy demand is for feedstock use, which can not be reduced through energy efficiency measures Significant amounts of carbon are stored in the manufactured products 23 24 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO2 EMISSIONS An... Overall, industrial energy use has been growing strongly in recent decades The rate of growth varies significantly between sub-sectors For example, chemicals and petrochemicals, which are the heaviest industrial energy users, doubled their energy and feedstock demand between 1971 and 2004, whereas energy consumption for iron and steel has been relatively stable Much of the growth in industrial energy demand... CO2 emissions are process-related emissions that are not due to fossil energy use These CO2 emissions would not be affected by energy efficiency measures Another distinguishing feature of the manufacturing sector is that carbon and energy are stored in materials and products, e.g plastics Recycling and energy recovery make good use of stored energy and reduce CO2 emissions, if done properly Currently,... the Chemical and Petrochemical Industry Plastic Recycling and Energy Recovery in Europe Best Practice Technology Energy Values, 2004 Indicator Use for Country Analysis of Global Chemical and Petrochemical Industry Carbon Storage for Plastics in Selected Countries, 2004 Total CO2 Emissions and CO2 Index, 2004 Energy Savings Potential in the Chemical and Petrochemical Industry Energy and CO2 Emission... emissions, a sound understanding of how energy is used by industry is needed This study provides an overview of global industry energy use; a discussion of indicator methodology issues; energy use and CO2 emissions in the chemical and petrochemical, iron and steel, non-metallic minerals, pulp and paper and non ferrous metals industries and assesses key systems such as motors and recycling (Industrial process... only energy and process CO2 emissions; deforestation is excluded from total CO2 emissions Sectoral final savings high estimates include recycling Sectoral primary savings exclude recycling and energy recovery Primary energy columns exclude CHP and electricity savings for chemicals and petrochemicals Primary energy columns exclude CHP for pulp and paper 3 One exajoule (EJ) equals 1018 joules 35 36 TRACKING. .. Analysis in the Pulp and Paper Industry 195 Combined Heat and Power in the Pulp and Paper Industry 196 Paper Recycling and Recovered Paper Use 198 Use of Technology to Increase Energy Efficiency and Reduce CO2 Emissions 200 Differences in Energy Intensity and CO2 Emissions across Countries 201 Energy Efficiency... and for systems 33 1 34 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO2 EMISSIONS Next the final energy savings were translated into primary energy equivalents, accounting for losses in power generation and steam generation In addition, corrections were applied for chemicals and petrochemicals and for pulp and paper as both industries already have a high share of combined heat and power (CHP) Moreover... INDUSTRY ENERGY USE AND CO2 EMISSIONS 2.1 Industrial Final Energy Use, 1971 – 2004 2.2 Materials Production Energy Needs, 1981 – 2005 2.3 Industrial Direct CO2 Emissions by Sector, 2004 41 42 44 GENERAL INDUSTRY INDICATORS ISSUES 3.1 Possible Approach to Boundary Issues for the Steel Industry 3.2 Allocation Issues for Combined Heat and Power 47 48 CHEMICAL AND PETROCHEMICAL INDUSTRY 4.1 World Chemical and. .. Analysis This analysis focuses on indicators for industrial energy efficiency and CO2 emissions and is a contribution to part one Historic trends and current efficiencies are considered It does not consider the impacts of emerging technologies or future energy use and CO2 emissions Estimates of improvement potentials are assessed based on indicators for energy efficiency at a country level in key manufacturing . 15
16 TRACKING INDUSTRIAL ENERGY EFFICIENCY AND CO
2
EMISSIONS
4.16 CHP Use in the Chemical and Petrochemical Industry 86
4.17 Plastic Recycling and Energy. chemicals and
petrochemicals, which are the heaviest industrial energy users, doubled their energy
and feedstock demand between 1971 and 2004, whereas energy
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