I. Title of the Best Practice

II. Overview of the Best Practice

A. General Description
The Industries of the Future (IOF) strategy creates partnerships between industry, government, and supporting laboratories and institutions to accelerate technology research, development, and deployment. Led by the U.S. Department of Energy (DOE), the IOF strategy is being implemented in nine energy- and waste-intensive industries in the U.S.: agriculture (bio-based feedstocks), aluminum, chemicals, forest products, glass, metalcasting, mining, petroleum, and steel.

In addition to the nine industrial sectors, the IOF program also works with states to facilitate the development of state/region-specific approaches to technology research and transfer. The IOF strategy encourages the nine target industries, as well as its state partners, to:

Create broad, industry-wide goals for the future;
Identify specific needs and priorities through industry-led technology roadmaps; and
Form cooperative alliances to help attain those goals through technology partnerships.

The IOF approach was developed to involve industry partners more explicitly and directly in the process of identifying and prioritizing technology development needs. This customer-driven approach has made it possible for entire industries to work together to define and pursue their top priorities for research, development, and demonstration. It also has encouraged an "integrated delivery approach" to energy efficiency, from the practical ideas for improving energy efficiency practices and technology choices today to encouraging efforts to undertake research of futuristic breakthrough technologies with the potential to revolutionize entire industries. By giving industry 'ownership' of the process, the strategy also obtains industry commitment to research, and facilitates industry cost sharing. Moreover, industry's involvement essentially ensures adoption and use of the successful energy-efficient technologies.

B. Special Characteristics of the Best Practice
Three key elements of the IOF strategy include:

Vision process. As a first step, each industry produces a "vision" of its desired future. A "Vision" document defines goals; describes long-term market, industry, and technical challenges; and identifies trends and priority research and development (R&D) needs. Each "Vision" document is prepared by industry with DOE support.

Technology "Roadmaps." Next, the development of Technology Roadmaps is a vital step in helping industry to define the critical needs and priorities for meeting its near-, mid-, and long-term goals. These Roadmaps identify the technologies and prioritized research pathways that will be needed to reach the technology goals identified in the industry vision document. The Technology Roadmaps also establish performance targets and a prioritized sequence of R&D.

Shared resources and implemented R&D. Finally, a coordinated national research effort is undertaken to achieve each industry's Vision, using the Technology Roadmaps to define the research pathways. Unprecedented resources (funding and scientific expertise) are shared between industry and DOE and its national research laboratories to implement the required R&D and technology deployment.

An enormous amount of industry effort has gone into establishing consensus on requirements for industrial energy efficiency Visions and Technology Roadmaps. For example, the effort to develop the U.S. Chemical Industry "Technology Vision 2000" involved participation by the American Chemical Society, the American Institute of Chemical Engineers, the Chemical Manufacturers Association, the Council for Chemical Research, and the Synthetic Organic Chemical Manufacturers Association in 36 formal working meetings and 20 technical sessions. Through the technology roadmap process, industry-specific action plans and R&D project proposals are developed that match the vision of the future.

A Laboratory Coordinating Council works to respond to the IOF research needs by streamlining industries' access to the expertise and capabilities of DOE's national laboratories and facilities.

C. Reasons for Inclusion as a Best Practice
The IOF program has been effective in bringing competing business concerns together in order to fashion a cooperative approach and a shared industry vision of the future.

The IOF approach has proven to be an effective model of an industrial policy approach designed to reduce the cost and risk of R&D through coordinated access to scientific resources aimed at specific technology goals. The IOF program cooperates with industry to jointly decide and implement the future R&D direction. It is a prime example of a voluntary policy approach and demonstrates what can be accomplished in cooperation with industry.

By working in concert with industry, the IOF program is able to facilitate the drafting of a common industry vision and help coordinate R&D efforts that otherwise might not take place. Many promising fundamental improvements in the energy, waste, and capital-intensive industries are simply too expensive and too risky for individual private firms to pursue alone. Through the IOF program, DOE acts as a catalyst in bringing together many firms with national laboratories and others to pool risk, investment, and expertise in developing promising technologies.

In addition to participation by the nine most energy and waste-intensive industries, some 20 states are actively involved in the IOF program and have developed industry-specific action plans and R&D project proposals.

To date, numerous technology industry Vision documents have been completed by industry, in conjunction with DOE. These include:

Agenda 2020: A Technology Vision and Research Agenda for America's Forest, Wood, and Paper Industry (November, 1994)
Steel: A National Resource for the Future (May, 1995)
Beyond 2000: A Vision for the American Metal Casting Industry (September, 1995)
Glass: A Clear Vision for a Bright Future (January, 1996)
Aluminum Industry: Industry/Government Partnerships for the Future (March, 1996)
Technology Vision 2020: The U.S. Chemical Industry (December, 1996)
Plant/Crop-based Renewable Resources 2020 ( January, 1998)
The Future Begins with Mining (September, 1998)

Specific goals and portfolios of major activities for R&D have been identified in the Technology Roadmaps. Energy, environmental, and productivity targets have been established by the respective industries. For example:

The metal-casting industry has identified and is undertaking multiple research projects in the following priority areas: products and markets; materials technology; manufacturing technology; environmental technology; human resources; and industry health.

The glass industry goals by 2020 include the following: (1) operate with production costs at least 20% below 1995 levels; recycle 100% of all glass products in the manufacturing process, where consumption is greater than 5 pounds per capita; (2) reduce process energy use from present facility levels by 50% toward theoretical energy use limits; and (3) recover, recycle and minimize 100% of the available post consumer glass.

In the chemical industry, a significant number of Technology Roadmaps have been developed or are under development. They include multiple research projects in each of the following areas: bioprocessing, chemical measurements, chemical synthesis, computational chemistry, materials technology, process science and engineering technology, computational fluid dynamics, supply chain management, and information systems for manufacturing and operations.

The aluminum industry has defined three key areas for potential cooperative R&D: raw materials and semifabricated production technology; manufacturing and enabling technology; and application technology. Priority focus areas are: primary products; casting, rolling, and extrusion; and finished products.

The forest products industry has developed a Technology Roadmap that presents critical research targets in six key areas: sustainable forestry, environmental performance, energy performance, improved capital effectiveness, recycling, and sensors and control.

The renewable bioproducts industry has established far-reaching and ambitious goals for using agricultural resources for consumer products, including:

• displacing at least 10% of petroleum with plant/crop resources as the basic building block for consumer products by the year 2020;
• providing the concepts needed to displace up to 50% by the year 2050; and
• establishing a plant/crop-based manufacturing infrastructure.

Technology achievements have been made and R&D is underway, aimed at providing significant energy efficiency, environmental, and productivity benefits:

In the glass industry, two technical successes that are commercially available as a result of DOE's support are high-temperature radiant burner, and oxygen-enriched combustion/oxy-fuel firing. These were developed by glass company partners or have potential relevance to the glass industry.

For the mining industry, some 10 research projects were recently announced, involving 24 companies, eight universities, eight DOE laboratories, and IOF partners from 21 states. Cost-shared funding will be used over three years to develop new energy-efficient mining technologies. Two examples are:

Development and Deployment of On-Board Lubrication. Development and implementation of advanced equipment maintenance systems for oil and hydraulic fluids will result in decreased downtime, increased equipment life, and more efficient use of operating equipment, and will substantially reduce the amount of oil in waste streams.

Drilling and Blasting Optimization. Development and implementation of more efficient blast technology will optimize rock breakage and will save substantial energy during grinding and crushing of the extracted rock, which is the single largest energy-using process in mining.

The IOF Program aims to achieve annual savings of approximately 1 quadrillion Btus of energy worth approximately US$3.86 billion and 21.2 MMTCE by the year 2010.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( ) Regulatory Approach (Policy approaches-- regulations, incentives, etc.)
( ) Practical Action (Action undertaken independently by a social actor)
( X ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( ) Citizens
( X ) Central government
( ) Local government
( X ) Business

3. Sector(s) (Indicate main sector(s) only.)
( ) Energy
( ) Household
( ) Transportation
( X ) Industrial Enterprises
( ) Other (Non-Industrial) Business
( ) Agriculture/ Land Use/ Forestry
( ) Other (Please specify.)

4. Target Greenhouse Gas(es)
( ) CO2
( ) CH4
( ) N2O
( ) HFC
( ) PFC
( ) SF6
( X ) Other No specific greenhouse gas is targeted. The program focuses on energy, waste and productivity improvements. Savings in greenhouse gases are, however, a significant by-product of the program.

IV. List of References

http://www.oit.doe.gov/industries.shtml

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person:	Kenneth Friedman
Title:	Senior Advisor, Office of Industrial Technologies
Organization:	U.S. Department of Energy
Email:	kenneth.friedman@ee.doe.gov
Tel:	202-586-0379
Fax:	202-586-9234
Address:	1000 Independence Avenue SW, Washington, DC 20585, USA