Wind for Industry: Total Addressable Market 2019
On-site Wind Energy Can Cut a Manufacturing Facility’s CO2 Emissions by 168,000 Metric Tons, Reducing 183 Million Pounds of Burned Coal
Read a summary of the 2019 report below. Download the full report here.
New Analysis Shows that 30% of U.S. Counties are Suitable for On-Site Wind Energy Projects at Manufacturing Facilities
Industrial areas of the U.S. are a massive market for wind energy, finds a 2019 analysis on viable Wind for Industry companies and counties. These findings come from industrial power company One Energy, the largest installer of on-site wind energy in North America.
The 2019 report finds more than 1,027 U.S. manufacturing counties (almost one-third of all U.S. counties) are financially viable for Wind for Industry projects at 0% ITC; more than 30% of target industrial facilities are expected to be technically viable; and there are 16 U.S. states whose annual electricity-generation CO2 emissions would be individually offset by installing wind turbines from Wind for Industry projects.
The market analysis evaluates three main elements: wind resource, manufacturing concentration, and project economics. For a Wind for Industry project to be viable, the wind resource must be attractive, the factory must use enough energy, and the area grid pricing must exceed One Energy’s projected rates based on the wind resource. According to this study, those three factors align in much of the U.S.
“Almost a third of the U.S. has high concentrations of wind and manufacturing making these areas ideal for on-site wind energy projects. This presents a tremendous opportunity for companies to reduce their energy costs and reduce their carbon footprint,” said Jereme Kent, CEO of One Energy. “We created this analysis to inform our growth plans and communicate with investors. We decided it was something worth sharing with everyone.”
The 2019 report asks four key questions. The following results emerge.
- GEOGRAPHIC POTENTIAL: Of the 3,142 counties in the U.S., how many could benefit from the low, fixed rates of Wind for Industry projects today?
- One Energy projects that 1,251 counties (or 40% of the country) would be an attractive target market for Wind for Industry projects, spanning coast to coast and including most states.
- MANUFACTURING CONCENTRATION: Does the market align with the geographic concentration of manufacturing in the U.S.?
- Yes. 723 counties with a high concentration of manufacturing employment are expected to be viable for Wind for Industry projects today.
- TECHNICAL VIABILITY: What percent of industrial facilities are likely to be able to have a technically viable project?
- One Energy examined seven existing or potential customers and all 342 of their industrial facilities in the U.S. and found that 34.2%, or 117 facilities are technically feasible for Wind for Industry projects, for a cumulative installed megawatt potential of 541.5 MW for those customers alone. This analysis artificially limited project size to 5 megawatts and thus is likely conservative.
- COST EFFICIENCY: How will increased cost efficiencies lead to capturing a greater share of the market over the next 10 years in areas with a high concentration of manufacturing?
- One Energy projects that on a go-forward, incentive-free basis, the market will still be attractive. This analysis detects a 10% cost improvement in delivery through economies of scale and a 10% energy output increase through the use of larger rotors. Based on these assumptions, the long-term, manufacturing-filtered conclusion is that at 1,027 counties, almost one-third (32.7%) of U.S. counties will be long-term targets for Wind for Industry.
Environmental Value of Wind for Industry
Each 1.5 MW wind turbine produces ~4,000,000 kWh per year. This is equivalent to offsetting:
- ~2,800 metric tons of CO2 per year
- ~56,000 metric tons of CO2 over initial turbine life
- ~3,000,000 pounds of coal burned per year
- ~60,000,000 pounds of coal burned over initial turbine life
Therefore, most facilities would offset ~168,000 metric tons of CO2 over the initial life of a three-turbine project, reducing ~183 million pounds of burned coal.
If the seven companies One Energy analyzed (see question 3 above) installed Wind for Industry at their viable facilities, the resulting 496.5 MW of Wind for Industry projects would produce ~1.3 terawatt hours per year. This is equivalent to offsetting:
- ~920,000 metric tons of CO2 per year
- ~18,400,000 metric tons of CO2 over initial turbine life
- ~1,000,000,000 pounds of coal burned per year
- ~20,000,000,000 pounds of coal burned over initial turbine life
- 16 U.S. states whose annual electricity-generation CO2 emissions would be individually offset by installing wind turbines from Wind for Industry projects
A manufacturing facility can offset its carbon footprint by 168,000 metric tons in the initial life of a three-turbine project, according to the study, which would help the facility reach significant CO2 emissions reduction goals. Due to the combination of high wind resource, large manufacturing presence, grid rates higher than One Energy’s power purchase agreement (PPA) rates, and CO2 emission reductions, this 2019 report concludes that the near-term Wind for Industry market is effectively infinite.
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About One Energy
One Energy is an industrial power company and the largest installer of on-site wind energy in North America. Recognizing that energy consumers are fed up with the failings of legacy utilities, One Energy developed modern energy services to control cost and risk, such as Wind for Industry and Managed High Voltage. One Energy is building the customer-centric grid of the future.
One Energy is headquartered in Findlay, Ohio. Since its founding in 2009, they have installed more than 30 MW in Ohio and are expanding into the Midwest. The One Energy family of companies includes One Energy Enterprises (OEE), One Energy Solutions (OES), and One Energy Capital Corporation (OECC).
“Wind for Industry,” is a registered trademark of One Energy Enterprises LLC.