Realize Untapped Savings Potential of Commercial Boilers

Commercial boilers may seem like the behemoths of industrial machinery, but they’re often overlooked in corporate sustainability strategies. For Environmental Health and Safety (EHS) professionals, Facilities Managers, and project leaders, these vital pieces of equipment can offer untapped cost savings and significant emissions reductions. If your manufacturing plant is over 20 years old, there’s a good chance your boiler is operating with a low efficiency, potentially below 84-percent. This inefficiency represents both a financial burden and a missed opportunity to improve your company’s sustainability metrics.?

Why Your Boiler Might Be a Hidden Culprit?

Commercial boilers, though typically under the radar, account for substantial energy consumption in larger facilities. A majority—more than 96-percent—of commercial boilers in the U.S. run on either natural gas or electricity. These systems are essential for space heating and hot water, which makes them critical players in your facility's operational costs and environmental impact. The boilers generally range in size from 300,000 BTU/hr to 10 million BTU/hr, making them indispensable in industries with significant floor space, such as manufacturing, food processing, and chemicals.?

Notably, the U.S. boasts around 43,000 industrial boilers, with the food, paper, chemicals, refining, and primary metals industries hosting the majority (71-percent) of these units according to a research study conducted by Science Applications International Corporation for the California Climate Action Registry. A staggering 78-percent of these boilers use natural gas, which means that updating old equipment could lead to substantial reductions in Scope 1 and Scope 2 emissions.?

The Financial Case for Replacing Low-Efficiency Boilers?

Let’s talk numbers—everyone’s favorite part! Replacing a low-efficiency boiler can save an average company a hefty $96,234 over the system's lifetime. On top of that, companies can expect to reduce lifetime emissions by 725.04 metric tons of CO2 equivalent (MT CO2e). That’s not just a win for the environment; it’s also a win for the bottom line.?

Older boiler models typically have an Annual Fuel Utilization Efficiency (AFUE) rating of around 84-percent or lower, meaning they waste a significant amount of fuel. In contrast, modern high-efficiency boilers operate at up to 96-percent?AFUE, slashing waste and utility costs. According to the U.S. Department of Energy, upgrading to a more energy-efficient boiler can save businesses up to 20-percent?annually on energy costs. That’s substantial, particularly for large-scale manufacturing plants and warehouses.?

In practical terms, let’s break it down:?

• Cost Reduction: A low-efficiency 1,000 MBtu/hour gas-fired boiler operating at 70-percent thermal efficiency costs approximately $19,286 annually. Upgrading to a high-efficiency model (96-percent thermal efficiency) drops this to $14,361 per year. Over a 25-year boiler lifetime, that’s a $96,234 savings.?

• Emissions Reduction: A similar boiler with 70-percent thermal efficiency emits approximately 113.57 MT CO2e annually. A high-efficiency model reduces this to 84.57 MT CO2e per year. Over the boiler's lifetime, this change leads to a 725.04 MT CO2e reduction.?

The Environmental Impact: Tackling Scope 1 and Scope 2 Emissions?

Boilers, especially those powered by natural gas, significantly contribute to Scope 1 emissions—those generated directly from your operations. By upgrading to a more efficient boiler, you can make immediate strides in reducing these emissions. If your boiler is electric, replacing it with a more efficient model helps reduce Scope 2 emissions by lowering the energy demand.?

Companies like Whirlpool Corporation have recognized the value of this upgrade. As part of their sustainability initiatives, they’ve prioritized boiler efficiency projects to achieve consistent year-over-year greenhouse gas emission reductions. The lessons learned from these projects can serve as a blueprint for others looking to reduce their carbon footprint and increase operational efficiency.?

Tools to Simplify the Process: DOE’s Energy Savings Calculator?

For those ready to dive into the details, the U.S. Department of Energy has developed an intuitive Energy Savings Calculator for Commercial Boilers. This tool, with only eight data inputs, allows EHS professionals, project managers, and Facilities teams to quickly estimate the annual and lifetime energy use, cost savings, and emissions reductions from upgrading to a new or more efficient boiler system. It’s an indispensable resource for making informed decisions and presenting a solid business case for boiler replacements.?

The Bottom Line?

For corporate sustainability project managers, EHS professionals, and Facilities Managers, replacing an old, inefficient boiler is a low-hanging fruit that can yield substantial benefits. Beyond the obvious financial savings, you’re also making strides toward meeting sustainability goals, reducing greenhouse gas emissions, and addressing corporate social responsibility targets.?

Next time you walk past that enormous boiler, consider it an opportunity. By upgrading to a high-efficiency system, you’re not just heating your building—you’re warming up to a more sustainable future. With the potential to save tens of thousands of dollars and hundreds of metric tons in emissions, it’s clear that sometimes the biggest pieces of equipment hold the smallest keys to change.?

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