Obama targets industrial energy efficiency

President Obama has issued an executive order setting a target to produce 40 gigawatts (GW) of combined heat and power energy by 2020.

The announcement demonstrates the Obama administrations focus on renewable energy development.

By improving the efficiency of their operations, industries can expect significant cost savings.

Under the current Department of Energy Better Buildings, Better Plants program, large manufacturers have already saved over $80 million, and expect to save upwards of $1 billion by 2020.

President Obama’s executive order will push billions of investment dollars into upgrading manufacturing facilities that should result in reducing energy demands by nearly 25% over the next decade.

Recently, the White House also finalized new vehicle standards that will require cars and light trucks to operate at an efficient 54.5 miles per gallon by 2025.