Join us in this special episode of the ABB Solutions Podcast to listen to our ABB Energy Efficiency Media Roundtablefeaturing Morten Wierod, ABB Motion President, Jesse Henson, ABB's NEMA Motor Division President, and Prakash Rao Ph.D., Lawrence Berkeley National Laboratory Research Scientist.
Learn more about the Energy Efficiency Movement
Join us in this special episode of the ABB Solutions Podcast to listen to our ABB Energy Efficiency Media Roundtablefeaturing Morten Wierod, ABB Motion President, Jesse Henson, ABB's NEMA Motor Division President, and Prakash Rao Ph.D., Lawrence Berkeley National Laboratory Research Scientist.
Learn more about the Energy Efficiency Movement
Welcome to the ABB Solutions Podcast. I'm your host Mike Murphy. And I'm excited to bring you a special edition episode on Energy Efficiency, the Invisible Climate Solution. This media roundtable event will be moderated by Keith Larsen with Putman Media, and our panelists will be Morton Wierod, President of ABB Motion Business, Prakash Rao, PhD research scientist at Lawrence Berkeley National Laboratory and Jesse Henson, president of ABB NEMA Motors Division. So without further ado, here is the roundtable discussion on Energy Efficiency, the Invisible Climate Solution.
Narrator from Video:We are at a turning point. We need to cut CO2 emissions. And the most effective way to do this is to use less energy. However, we can not switch off everything. We need to produce food, keep water running, air flowing, trains moving and ships sailing, while continuously improving the energy efficiency. With ABB drives and motors, we can do just that. We can keep the world turning while saving energy every day. This is our mission. But with your help, it will become a movement. Through product innovation and sharing knowledge and insights, we can improve performance, safety and reliability and help drive the low carbon future for industries, cities, and infrastructure. Together, we can progress and sustain the future of industry and humanity. We are moving forward, but with your help, we can go much further. Join us and be part of the energy efficiency movement.
Keith Larson:The power of energy efficiency to reduce both energy consumption and greenhouse gas emissions is often under appreciated. But a recent report by the American Council for Energy Efficiency, estimates that the US could cut both in half by 2050. Not with sexy, relatively untested technologies like carbon capture or hydrogen fueled airplanes. But by doing more of the things we already know how to do. And as the three speakers joining us today will attest, building and deploying more efficient electric motor systems across the industrial and commercial landscape as achievable, cost effective, and among the biggest potential contributors to the mitigation of climate change. Hi, my name is Keith Larson, Vice President of Putman Media and I'm on be here on behalf of ABB. Welcome to today's media roundtable entitled Energy Efficiency, the Invisible Climate Solution. I'll be your moderator for today's discussion. First, by way of introduction - ABB has long been a leader in energy efficient solutions for both the industrial and commercial sectors. But a couple of years ago as a company reviewed its own sustainability goals and targets, it became clear that energy efficiency needed to be front and center, both for the company and for society, in order to make our sustainability goals a reality. That led ABB is Motion Business which is focused on high efficiency motors and drives, to create the Energy Efficiency Movement to build awareness around energy efficiency opportunities. It's mission is to encourage innovation across all stakeholder groups and provide a way for all of us, members of the media included, to act together to immediately decrease our impact on climate change. We have with us three distinguished individuals to explain more about this energy efficiency opportunity. Leading off will be Morton Wierod. President of ABB Motion, who will speak to energy efficiencie's key role in the sustainable future. Welcome Morton. Thanks for joining us. He's probably turning his mic on now.
Morton Wierod:Thanks a lot Keith. Welcome.
Keith Larson:We also have Prakash Rao, PhD research scientist at Lawrence Berkeley National Laboratory and co author of the January 2021 report on the US DOE Motor
System Market Assessment:Fndings on the Installed Base. Welcome Prakash, real pleasure to have you with us.
Prakash Rao:Thank you for having me, Keith.
Keith Larson:Then we'll hear from Jesse Henson, president of ABB's NEMA Motors Division who will speak to energy efficiency as today's solution for a sustainable environment tomorrow. Welcome as well Jesse and really great to see you again.
Jesse Henson:Thank you Keith, excited to be here.
Keith Larson:And we after all three of our presenters have completed their presentations, we'll open things up for a Q&A. But before we get started a few more housekeeping items. First, no need to wait till the end of the presentation to submit your questions through the through the chat here at Zoom. Just find me to to directly chat, Keith Larson, be a one-on-one chat as questions come to you and indicating if the question is for a particular speaker or to the panel. We'll have everybody up for the Q&A. Second, for your live tweets or follow up social media posts, please use the hashtag #eeroundtables for energy efficiency roundtable So- eeroundtable is the hashtag. Third, ABB is encouraging one-on-one interviews with our speakers after today's presentations. So to arrange one, please send a direct chat to Tracy Long, who many of you I'm sure have met. Say hi, Tracy. Hi Team good to see everybody. Thanks for being here today. And please include which of our speakers, you'd like some one-on-one time with when you send that to Tracy. So, finally, I'd suggest to stay muted throughout the presentation. And probably turn off your cameras just to not distract our speakers. And now we'll go back to the main event, and Martin Wierod President of ABB Motion. The floor is yours Morton. Go ahead.
Morton Wierod:Thanks a lot, Keith. And a warm welcome also from my side joining from Zurich in Switzerland, this afternoon here. But and it's great to have you with us discussing what for us is a very important topic and where the passion is high in our ABB team around energy efficiency and the use of high energy efficient motors and drive systems across industries, transportation and infrastructure. So, if we can go to the slide presentation as well. I think we are, I want to start with a short introduction, if we take the next slide about where we are today, as a society. I mean, they we are when we're looking at both our global population and the urbanization trend that is happening around the world today. We will soon be 10 billion people on this planet and the demand for energy will increase significantly, also, in the coming years. It is has been doubling in the last twenty years. And it will grow another more than 50% for the next twenty years. So that is kind of the size of energy consumption; how we see that that is increasing over time. And what is interesting for us, and what we really want to discuss this today is also how the world is going electric. As the number of motors in the world will double from today until 2040. For us a great opportunity and I think also for the world: great when it comes to moving to electric vehicles. Because the future of transportation, the future of living, is very much electric. But that also will have some big challenges when it comes to efficiencies over over power systems and also how we operate industry and how we use transportation in the future. Because, if we are going to end up, we want to meet all the science based targets of the Paris Agreement, and we want to have a more sustainable future, then, the energy consumption cannot double in the same way as we see as the number of motors will do. So, the need for high efficiency motors and the use of variable speed drives is a must for the future. So we go to the next slide. You will see a fact that you probably are not aware of but that is that 45% of the world's electricity is already today used to power electric motors in building and industrial applications. That means everything that moves: that we, to take that in a building it could be the elevator, the escalators, where it's easy to even see the movement, but it's also about all the air that flows in the building. Those air conditioning units or heaters you may have up on the roof or the water pumps down in the basement that is giving cold and hot water throughout the building. All those pumps that moves water, all those fans that moves air are all operated by electric motors. And these are just one examples. But go into industry, to a factory or manufacturing plant, you will find hundreds or in many of the large factories thousands or even more than ten thousand motors. Everything that moves in an industrial floor is run by electric motors today. And this kind of trend will just continue as we are replacing combustion engines, but also oils and hydraulics, and we're replacing that with electric control. What we also see is that majority of what is used today, and still being installed in factories, and in an infrastructure, is still with old technologies. We are having the definitions when it comes to the, what we called, the International Standards of Efficiency Levels. The where IE1 is the lowest standard. Today most motors deliver is what we call the IE2 the next or 3. But also standards, so 4 or even now 5. But further on, where Jesse will present also what we are, are offering in this space. We have new technology available today. And it's a great business case as well, to start using it. But we want, with the Energy Efficiency movement, and the focus on this topic, to gain more information to industries, but also to regulators and governments around the world. That we really highlight this opportunity we have for energy saving. So we're not just spending more. But we're also looking at what we're doing today to how we can what we can reduce. And if you're looking at the next slide, I want to show you something you may or may not be aware about. It's the variable speed drives, which is what I call "the energy efficiency in a box". It's a power semiconductor device and how to explain it is what controls the speed and the torque of a motor. And it's as like driving your car, to in the past, I mean, in the past, we have been running without variable speed drives. And that means the motors were already running at full speed. And we were controlling the speed by by valves. Today, and that is what I would like to use the examples of a car is like running your car at full speed. And then using the maximum acceleration and then using your your brakes to get the optimal or the right speed. That's a not a very efficient way of driving your car today. And it's not a very efficient way of running any motor either. So what is here, we have a huge opportunity for energy efficiency by using it, where you can save up to using drives where you can save energy for all for more than 25%. And only today, we see that only one out of five motors is equipped with a drive. And we believe that at least it should be one out of two. So this is a great opportunity for energy efficiency. And we today when we see also higher energy prices, we also see that we have a good business case when we're starting to use the variable speed drives in industries and in buildings. So, if you look at our next slide, we have here an opportunity. And my main message of today, is say we would use the new technology which is currently already available from the industry; we could save and upgrade the non-efficient or inefficient motors systems that we are running today around the globe. We could save 10% of the entire electricity consumed in the world today. That is a lot of windmills and solar plants being put in our renewable energy. This is, and the good news is that this is not something we need to wait for another 10 years that technology will catch up. This is already available today. This is available from companies like ABB and have this technology at hand. And we can help industries and buildings to become more efficient. So we can also still enjoy the comfort of living. But we can do it with a much lower electricity consumption than what we see today. And thereby also reducing carbon emissions in the world. So with that, Keith, I would like to hand it back to you on and thank you for the attention.
Keith Larson:Thanks so much Morton, for sharing your perspective. Again, if you have any questions for Morton, go ahead and direct chat them to me and we'll answer as many as we can get to after the presenters are finished. Up next is Prakash Rao research scientist at Lawrence Berkeley National Laboratory. Take it away, Prakash.
Prakash Rao:Thank you, Keith. And thank you Morton for that great talk. Next slide please. And I'll be presenting on behalf of my colleague Paul Sheaffer, some results of a study we recently conducted here at Lawrence Berkeley National Laboratory for the US Department of Energy to understand and evaluate the US, that's a US focused presentation that I'll give here, Installed Base of Motor Systems in Industrial and Commercial Buildings. Next slide, please. Before I get started though, I do want to acknowledge a few folks who this is a very large project and it wasn't just Paul and myself, so, I want to acknowledge our sponsor at the US Department of Energy. It's at the Advanced Manufacturing Office, and that's Alan Hathnor. Additionally, at Berkeley Lab, ah Jean Chen supported a lot of statistical analysis, you'll see and she was helped with Marian Goldberg and Ben Jones at DNV, Jeff Crop and Jordan Hester at Cadmus lead the some of the engineering and information collection. So I want to acknowledge them as well as US Department of Energy's Industrial Assessment centers, which are twenty-something universities that conduct small energy efficiency audits of small to mid sized manufacturers for free. And we have numerous external/internal reviewers and stakeholders who helped us in this project. So I want to acknowledge them before I get started. But with that next slide, please. So in the late 1990s, the US Department of Energy, the US Department of Energy's are just as I'm starting getting a low battery. So thanks so much what's going on? Hopefully, it doesn't impact us too much. The US Department of Energy commissioned a report to evaluate the installed base of motor systems in manufacturing. Data was collected around 1997, and the information was published in 1998. And similarly, a different office in the Department of Energy conducted a study to look at build motors and building systems. And that was around the same vintage of that report. Well, it's been about twenty-something years since those since that data has been out. And that data is rather stale. And as Morton pointed out, motors consume a tremendous amount of electricity. And they're a huge portion of our electric grid. So we knew we needed to better understand the situation on the ground with how we're operating our motors. So, in 2016, the Department of Energy enlisted us at LBNL, to conduct an updated assessment combining both the industrial and commercial sectors. And that's what I'll be reporting on our results here. Next slide, please. So we considered all industrial and commercial motors. So what we're defining as industry is you can think manufacturing, so folks that make things and plus the wastewater sector, so paper mills, steel mills, electronics, manufacturers, car manufacturers, etc. and commercial buildings, are schools, offices, hospitals, places of worship, fire houses, police stations, all that stuff is considered a commercial building. I mean, that's not manufacturing residential, essentially. We looked at all motor systems that are polyphase, so that's three that's that, that means three phase motors. Whether one horsepower, or about .75 kilowatts or greater. And I want to be careful to use the word system as much as possible rather than motor. Because we looked at not just the motors, we looked at the drive, such as Morton described. The variable frequency drive or whatever drive or controller might be there and Morton pointed out, most of times, there's not a drive, an electric drive, there's some other form of control. But we've looked at that looked at the motor. The power transmission that's like a gearbox or a belt, the motor driven equipment, which is now your pump, your fan, your compressor, whether it's your your, your cooling system, compressor, whatever it might be, that's being driven by the motor. And the distribution system; so how you're getting that you know, cold air or, or, or compressed air to the point of need. That's a distribution system. So it's across that whole channel. And all systems are considered pumps fans, compressed air is materials processing, including refrigeration. My next slide, please. So, we assessed, so the way we did this study is to actually go out and conduct several hundred assessments of of that well, over 350 assessments of industrial and commercial facilities. So there's about 180,000 industrial facilities in the United States. We developed a statistical sample and used about 250 to evaluate the situation on the grab of motors for these industrial facilities. So, we segmented industry into those sub sub industries that you see down there, apparel, beverage, chemical, etc. Now, those definitions and categorizations are not ones we came up with; that's used by anytime the US Federal government's doing statistical analysis or needs to segment the economy, those are the categories they use for manufacturing, so we just duplicated that. And then we also then further subdivided into small, medium or large; anticipating that smaller manufacturers or facilities likely have less or different capabilities and practices than larger ones. So I want to get that point of information included. And then on the commercial side is five and a half billion commercial buildings, the United States. They're a little bit more heterogeneous in the industrial sector,so we needed less samples, even though it's more of them. But we did 123 samples, actually going out to these facilities and collecting information on the motors. And there you see how we segmented the economy, and that's using common DOE subsections for commercial buildings. Excuse me. Next slide, please. Alright, so what did we find? We had a whole lot of results or volume on reports of 250 pages, and I welcome you all to please, it's available online, check it out. But here's the one, you know, high level snapshot; what did we find? Overall, in industrial commercial buildings, we found that in the United States, these polyphase, one horsepower, greater motors consume over 1 million gigawatt hours of electricity per year. So, to put that in perspective, that's 29% of us electric grid load for all the all the electrons flowing through the electric grid, 29% of them are for industrial, motor, industrial and commercial motor systems. That's, that's quite a lot. What that's what does that mean in terms of CO2 emissions? So if we, if we convert that these are not just estimates, using kind of grid emissions factors, we estimate that about 9% of all energy related CO2 emissions are GHG emissions, I should say CO2 equivalent emissions in the United States. So again, quite a bit. And, you know, it's not only good for the environment, but it's also good for pocketbook for the energy efficiency is for these industrial commercial buildings. Because it's $116 billion per year in electricity costs. We estimated using certain national electricity rates. So quite a bit. And if you look in the industrial sector, it's 13% motors or 13% of its overall energy consumption and $47 billion per year in electricity costs. The commercial sector is 26% of its energy consumptions. A little bit more than an industrial sector twice as more. And it's $69 billion per year in electricity costs for motor systems. So it's, it's industrial facilities, commercial building owners are paying for to run their motor systems. And it's also consuming quite a bit of electricity and responsible for a lot of CO2 emissions. Next slide, please. Now, in terms of physical units, there's we asked that we counted or estimated that there's over 52 million motor systems in the United States, commercial industrial commercial facilities. I'll apologize. In the previous slide, in this slide, I should have explained the little brackets that we have, they're kind of show our error ranges. So it's, it's within it's a confidence interval. So we think the average is about 52.5 million, some are varying between 47.9, or 48, and 57. And again, because of the statistical sample, it's not gonna be the exact number there. In the commercial, as we look at how these motors are sort of portioned out far more than the commercial sector. So, we saw on the energy side, it's about 50/50, the share of energy for industrial and commercial motors, but not in terms of motor units. We have 41 million units in the commercial sector and 10.8 million in the industrial sector. What that tells us in the rest of the data in the Volume 1 report proves this out is that the commercial systems are a little bit smaller, a lot more motors, but there tend to be smaller than industrial systems, which can be you know, thousands of horsepower motors. Next slide, please. And we want to dive a little bit more in next three slides are really going to dive into like, you know, how do we actually use these motors? It's great. We have all these motors, what do they do? And as Morton described a bit and anything anything, anytime anything's moving, it's probably a motor behind it. So if as we look at these segments of the industrial economy, in the US, the chemical sector by far outpaced everyone else in terms of their motor consumption. So, they were some 100,000 gigawatt hours per year for the chemical industry. This is everything from your toiletries at home and your laundry detergent to chemicals used to heavy manufacturing or or you know, things you don't buy off the shelf. So it's very large sector and pharmaceuticals are included in here as well. This is followed by primary metals, this is your aluminum, this is your steel. These are some of the key heavy industries of of our economy; kind of building blocks. And that's followed by the food sector. So this is not Ag or selling food, but this the food processing. This is the stuff you buy at the grocery stores, the factories that are making those, these quite a bit of motors as well. On the commercial side, a little bit more even split. However, offices again, we're the largest, not again, excuse me, but offices were the largest contributor to motor system, energy consumption. Fall fairly close to educational facilities, schools, universities, things like that. And then lodging, so your hotels, so offices, education and lodging is where a lot of these motor systems are sitting. Next slide, please. And if we want to dive a little bit deeper into how it's being used, you know, the motor driven equipment. And remember, that's your pump, which is going to be moving water around your air compressor, which is going to be compressing air or fan or blower just pushing air around. In the industrial sector, actually, the largest share of motor consumption is going for materials processing. So these, this is a little bit of a surprise for us, because we commonly think of motor systems go to pumps fans, excuse me, air compressors. Of materials processing, are just kind of the silent motors that are doing the grinding, the hydraulics, the extruders, that were as you're walking through a manufacturing plant and you'll see many motors, and a lot of them are just kind of doing materials processing and handling. And this is actually the largest in terms of energy consumption, segment of the industrial motor use. Fans, blowers, and pumps are quite a bit but materials processing is the largest. On the commercial side, it's heavily skewed towards refrigeration compressors, and fans and blowers. And as we've seen, as we're going to see on the next slide, it's for ventilation and heating and cooling. So here on the next slide in the blue on the right, as you can see, we've broken down even further now beyond the pump, fan and compressor beyond what sub sector does, what does it actually really doing? Why is that broke motor there. And when we talk about energy efficiency, I think one of the first questions want to ask is, "Do I even need this thing?", and if not shut it off. And here is here we're seeing what are we using the motors for: air handling refrigeration for the chiller plant or space cool for the commercial sector. Industrial sector, it's much more balanced. It's still a lot of air handling, still a lot of refrigeration, but you have things like process equipment cooling, the compressed air plant. Our other is a quite a large category. So any individual component there's not quite as meant a lot. But a little bit more varied in its in its motor system energies. Next slide please. And just some concluding thoughts on motor systems and their role in the future. Wholeheartedly agree with with Morton's statements there about significant opportunities for energy savings. The idea that we have large motors, powering systems that don't need so much energy is kind of ubiquitous. To minimizing those losses through variable frequency drives through or even just a smaller motor, in some cases. We saw in our data, variable frequency drives in the industrial sector, only 16% of motors had variable frequency drives in the commercial sector, it's only 4%. Replace older motors with new energy efficiency motor, energy efficient motors and variable speed drives. So that's kind of coupling the two technologies together to ensure maximum performance. Now, as we get to decarbonisation, which is the key as the video described. If we think about how much we need to spend in the US to decarbonize our electric grid, meaning bringing on all renewable assets, there was one report recently that's about over $3 trillion, that was 3.5 trillion dollars to fully decarbonize the electric grid. If 29% of my grid load is motors, and if I can reduce the energy consumption for motors, I then reduce the amount of grid that needs to be decarbonized, and I've cut that $3.5 trillion. So it pays off to decarbonize for energy efficiency. Energy efficiency also pays back in the pocket books of those building owners as we saw how much they spent electricity costs. So it keeps them in business a little bit longer, allows them to hire more employees and make more product. It's also a key to balancing renewable energy generation on the electric grid. Not only will it require less, but also renewable energy generation, as you've likely heard is intermittent. It's if there's more electrons available at some times a day than the others. And to the extent that we can modulate our factories and our buildings to go up and down and up and down to kind of match those, the availability of those electrons, the better. Add variable frequency drives, motor systems, those are the things that are going to be helping us do that. And in addition to more people in the world, I think decarbonisation is going to also take offline a lot of fossil fuel systems, which will be converted in to heat and electric systems. And I'm thinking very specifically here; I think we're gonna see a lot more electric heat pumps and and that replace these old natural gas burning HVAC systems or fossil fuel burning HVAC systems. So, in addition to population growth, I think you're also going to be a shift to see to see a shift to more electric systems driven by motors. And finally, there's not an energy efficiency play, but it's a health play. We're all still sitting in a pandemic. And I think we've all heard about healthier buildings. Our schools need more ventilation; our offices need more ventilation; our indoor spaces need more ventilation. And motors are going to be a key to that. Whether it's increasing, whether it's increasing the exhaust, from buildings; that's going to be a motor. We might have, you know recommendations for better filters on our fans. That's going to require our fans to work a little bit harder, which means the motors are going to work a little bit harder because the fans that fits those filters are going to be put a little harder to push air through them. That's going to be more motor system energy consumption in commercial buildings. So healthier buildings will require efficient, durable motors. And think that's that's it for me. And I'll pass it back to you, Keith. Oh, sorry. Last slide here, just just a few other things, you could access the report at that link, we dive more into what I presented today. If you want to look at any of the data, we've hoped, we posted it online, at motors.lbl.gov/inventory. You can go play with the data yourself to create your own graphs. We, we have two more reports, one's already out:. one looks at the Supply Chain for Advanced Motors and Drives for this project; and one we're working on right now is Energy Savings Opportunities, it's under preparation. And there's mine in Paul's email addresses. Please contact us if you have any questions. And thank you for having us. I'll pass it back to you, Keith.
Keith Larson:Thanks so much, Prakash, for that detailed and timely analysis. A lot to think about in that, that's for sure. And by the way, Paul Shaffer, he's going to be joining us for the Q&A session a little bit later as well. I'm so glad to have him on board. Again, if you have any questions for Prakash go ahead and direct chat them to me, and we'll answer them after our final presenter, who is Jesse Henson, president of ABB's NEMA Motors Division. All yours, Jesse.
Jesse Henson:Thank you, Keith. 29%. 29%, of all energy used in the United States is consumed by electric motors. 69% is consumed in industrial applications, which is from electric motors. What an opportunity to make a difference for our climate. And this is one thing that I'm personally, extremely passionate about making a difference. As Morton said, motors and drives run hidden and essential processes all around us. Processes that can't be stopped, but definitely can be improved. We are human. We like to eat. We like hot showers. We like our clean drinking water. We don't want to be told when we can turn on or off our HVAC systems to be comfortable. We enjoy these luxuries in life. But all of these come. And they're brought to us from electric motors. We really do keep the world turning by saving energy every day. We sell on almost all process and industries and applications. On the slide there on the right is just one example where you might find hundreds of our product of industrial electric motors in these applications that are running and doing and bringing us the things that we enjoy everyday. That's making a difference for our society. So, those are important for us. So you can see the numbers and what kind of things that we can make a difference for. On the next slide, if you look, there's ways that we can reduce our emissions. According to the International Energy Agency, renewables now count for 25% of electric electricity generated in the world. This is fantastic. The project that will take around 20 years for that to reach 67% of the global generation. We talked earlier about the electricity demand and how fast it's increasing. But a lot of times, ways that we can help reduce that is have concentrated times when we actually use the electricity. However, that demand - we know that when it's hot in the summer months in the United States, we don't want to turn our HVAC systems off during that time. And those peak demand which is really high for CO2 intensity. So that's one thing that we can be more efficient. And that's where the third element comes in. It's really just about using less electricity in the first place. We don't have to use all the electricity that we have in front of us today. We can invest in new technologies. One of those things that we can, we already do is we invest in LED light bulbs. We've almost all moved away from the old incandescent light bulbs to LED. So now it's a point of we don't even think about it. We just know we want LED because we see the benefit. And that's, it was expensive to make that change in technology, but the payback was there. But it's not even as strong as electric motors and what it can provide. But we all know it's the right thing to do. And we make that decision every day to pay more. When you look at electric motors, we have been producing those for well over 100 years, and we've been a leader in energy efficiency for much of that time. We have always brought some of the latest technologies to the forefront. To be a leader in making a difference for our customers and for the climate. The US standard for electric motors is what we call IE3 efficient and this is what all motors must be to operate in the United States. Other manufacturers claim to have higher efficiencies. But we have proven designs, readily available today, that are much higher efficient than the standards; can make a big difference. We also heard Morton talk about the difference that electric drives can do. I relate this to putting digital technology connected to our motors. To where you're smart. And now all of a sudden you only use the energy that you need at that given time. We're taking that next leap to where now we're integrating motors and drives together as one package that can be together for our customers and solve this climate solution that we have and make a big impact there. The fastest way to save electricity is to not use it at all. Just by being plugged in, auto equipment can be drawing phantom energy. Next slide. Turning off equipment will not only reduce your electricity bill, but it may also extend the life of your equipment itself. Drives can help regulate that. As Morton said earlier, by applying a drive to motor driven equipment, you only use the amount of electricity that you actually need, and not a drop more. However, motors that were built prior to 1990 are likely to run at 87% efficient or less. Today's highly efficient motors run at efficiencies higher than 95. And we have some that run higher than 98. Something we never imagined we could reach by this time in an affordable way. Based on this improvement is estimated that upgrading to a new efficient motor can have a payback in as little as 6 months; sometimes up to 24. With the purchase price of electric motor being less than 5% of the total lifetime cost - 5%. It just makes sense when our customers are buying new product, to invest in things that can make a difference for our climate. So let's look at an example the next slide of what one motor can do. So this is a use case of a 7.5 horsepower motor that consumes about 57 kilowatts today or write that out to the average energy, costs about $200 a month in energy cost, for one motor. That's the cost, average cost, of a typical home for electricity cost. If when you're replacing that motor, if you replace it with the more energy efficient solution we have available today, you could reduce that by as much as 20% - so $155 a month. And you're like, well. That's not necessarily a lie. It's great to see the savings. But think about how many motors are installed. 52 million motors out there in the US. What a difference. Now extrapolate that up to 100 motors. Now all of a sudden you're getting into one factory $50,000 in savings a year. These are when it really starts making a difference. One area that we've been investigating and really having a lot of growth is in data centers. We all like our data, it's at our fingertips every day. Well those data centers produce a lot of heat and they need cooled. We are changing a data center that typically has 54 motors to the most energy efficient, which is our Integrated Motor Technology. There we can save $170,000 a year of energy energy consumption for these facilities. There are 7 million data centers located around the world. So we can make a difference. So we talked about, on the next slide, that we could save 10%. What are the other ways that we can save 10%? Incandescent lightbulbs all to LED? You switch out 2.7 million, then you can save that 10%. If we install 15,000 windmills, all at 2.4 megawatt. Which I'm a huge fan of windmills. They're fantastic. Then you can, you can have the same similar CO2 emission reduction. The other option is to turn off electricity usage in our homes; which none of us want to do. So when we talk about motors and how that we can reduce the consumption by 10%, by upgrading. This is something that nobody's talking about. That we really have an opportunity to make a difference. So what all does this mean, on the next slide? That with some strategic investments, motor users can have a positive impact on our environment now. Not in five years; not in ten, but today. Simply put, the newest generation of motor and drive technology is better for the climate than what's currently installed because it consumes less electricity. It's smarter. It's digitally connected. Our technology makes economic sense, and can pay for itself in less than two years. Our technology reduces the need to produce as much electricity. The best way is to never use the energy in the first place. This decreases the CO2 emissions, and freeing up more capacity on our grids. Motor users can be a part of the solution today, because we have the right technologies available today. Now every commercial building and industrial process can be a part of a change in our climate and the solution. Motors and drives together. They just make the world a better place. So I'll wrap up. Reducing electricity consumption; we know it's good for our customers. Hoping you can all see it's good for our employees and our communities. So by choosing to invest in these new technologies, and reducing the amount of electricity we consume, then we can make this difference. We are, as ABB, a part of the solution for a better planet. I believe it is our duty to make a difference for a better tomorrow. But we need your help to get this message out of this invisible climate solution that no one is talking about. With that, Keith, I'll turn it back over to you for Q&A.
Keith Larson:Great, thank you, Jesse. Really appreciate the your insights. Just a couple of things. I've got some questions starting to roll in on the chat. So, please direct further questions to me via the chat. Also, direct chat, Tracy if you're interested in scheduling a one on one interview with with with Morton, with Jesse, or with Prakash. And I would remind our speakers today as well as Paul, Prakash's colleague, to turn their microphones back on and their cameras back on. And we will jump into the questions here. I've got one to start here from Kevin Parker. Hey, Kevin, hope you're doing well - Are attitudes toward sustainability markedly different in Europe than in the US? Who wants to handle that if Morton, maybe he's probably got the most global view of us.
Morton Wierod:Yeah, I have to say I a yes there today. Because the design, how we look at today at the energy efficiency standards has been driven in the past really by the European Union's and what we call the Eco-design, which is the new minimum standards or what is kind of just what is allowed to sell and use in in Europe. Those Eco-design requirements says that the minimum standard out of July 1st, this year was what we called IE3 and is already decided and it will be implemented in two years time first of July '23 that we will have IE4 as the minimum standard. And these are again as I say in an IE4 motors use around are more than 30% less energy than compared to an EI1 motor which is to say the old design of technology. So that is, the we see that trend is then also being followed around the world even also now China has implemented as IE3 as their minimum standards, Saudi Arabia and the Emirates will follow by next summer. So it is a trend that we're seeing around the world with applying these minimum standards, a way for energy efficiency. And I think that is something that has to happen across the globe. When we put in a new machinery that being compressors, fan systems, pump systems. This is how you're able to increase the efficiency of those, those system, is by using the new technology. And so our call to actions for also in the in America is that we start also implemented a better and a higher minimum standards. And as Jesse showed, this is just made sense only for the environment, it is also a good business case. So, but I think we are lacking a bit of the awareness. And that is also where we ask all stakeholders, both regulators and industries to come together and really look at the business case, because we truly believe that this is a good investment both for society, but also for industries themselves.
Keith Larson:Thank you, Morton. Anything to add to that? Jesse or Prakash from your perspectives?
Jesse Henson:So I think it's covered well, and especially tagging on to what Morton said there at the end. We need your help in getting the message out. And it does in your in other countries, it is it's leading the way I would say. And I think we're maybe lagging a little bit behind in the US, and we can help make that difference.
Keith Larson:Great. Another global question, maybe, to address I guess, to the whole panel, How does this kind of US environmental efficiency movement specifically address some of the discussion implications of the Paris Climate Accord or further discussions from Glasgow, just wrapped up?
Morton Wierod:I can start there as well, Keith, it's fine. We started first of all, energy efficiency, something which is very close to our heart in Motion and has been over many, many years. But and then we see the Paris Agreement, but also the kind of the sustainability phase that is moving across the whole world these days. It kind of plays in that direction. So we but we so we decided long for before COP 26 or the climate pledges that has been made there. But we started this movement to get the right attention around, because it's the it's the solution, which is available today. And we're not using it well enough. And that is the, I think, sometimes the frustration of us in the industry, because it's a great and a fantastic opportunity. And we just need to get it better known both with let's say with regulators but of course, with mostly with customers and decision makers in the industry. So that's why we have these common call to actions and we are also engaging, this is not an ABB alone campaign. We are now going wider and engaging peers in the industry, but also our customers and partners who also want to join. So for example there Alfa Laval were the first external first external partner that joined ABB and joined us in the Energy Efficiency Movement. And you will see in the time to come; in the next weeks and months you will see more companies joining the movement because they are also fully committed to energy efficiency as one of the tools in the toolbox as more sustainable future.
Keith Larson:Makes sense. Just a little bit of a follow on question that I had and that's looking at the you know, some of the infrastructure bill and other activities a little closer to home - Is there support for, is there a window of support for increased motor energy efficiency in some of the bills that are either passed or coming through Congress here in the States?
Jesse Henson:So, I can take that. When when you when you look at the focus there was a was a big focus on energy efficiency and that's when we went to the IE3 standards. And that's been for some time now. But then, we work as part of the the new organization, a big contributor there. And the focus got shifted to the overall system efficiency. Because there was a lot of opportunity around pumps and pump systems and things for the, in mechanical train of the solution to be able to how we reduce the overall efficiency there and increase efficiency from mechanical solution too. That has been done. And there's been some movement parts and now I believe it's opening back up to be looking at what the next phase of industrial electric motor standards could be. And that's moving more in line like IE4 efficiencies that we're seeing in Europe and such.
Keith Larson:A question from Jim Montague - How can integrated motors and drives help deliver energy from alternative sources or other or aid other decarbonization efforts? Repeat that - How can integrated motors and drives help deliver energy from alternative sources or aid other, decarbonization efforts?
Morton Wierod:I can start there. I say that when we installed the largest wind turbines and windmills ever made, they've installed outside the coast of New York and they are 14 megawatts, which is up to five times the normal size and power of what you have on let's say and onshore or land based wind turbine. The mode or the drives or what we call then is the converter because that is converting from movements of the blades into electricity to power generation and feeding this back to the power grid. This is an area where also we as ABB are present. In these large, I would almost say it's a windmill, monsters which were are out there. They are more than they're about double the size of the Eiffel tower. So, that's the, we are also present in many of these on these sites. We are on the renewable energy site. So that is one part. But it also comes into the use now of fuel cells. So also when you're talking about regenerating power, we see now more and more we are are replacing brakes and chokes. For instance, in you know, in our equipment with regeneration. That means instead of taking a simple, a long escalator, where people in a shopping mall when you go down downstairs, and you have that full escalator of people; that today is power generation. That is used that power that is generated our drives is then turning that energy back into the power grid. And that is something so I always say that you should walk the steps up; but you can safely take the escalator down again, that would be the best out of two worlds when it comes to using our escalators. But maybe not something else you want to add there as well.
Keith Larson:Yeah. I was gonna say Jim did that, Jim Montague, you if you want to unmute, did that address your question? Or? I think it did. Can you hear me? Yes, yes. Yeah, good answer. All right. Anything you want to add Jesse, you're, or Prakash, on that?
Prakash Rao:Well, I was gonna point out another idea. Here in California, where I'm currently sitting. We have a phenomenon called the "Duck Curve"; which some of you might have heard of, where we have a lot of excess electrons available in the middle of the day, because of solar generation, and the sun's power and out and the PV is generating electricity. But we don't have as much demand because we're all kind of in our offices or whatnot. But when we come home, around five, six o'clock at night, we all come home, we turn our ACS on, we turn our lights on, we get our stoves going, we start you know, turn our TVs on all that stuff. And the sun starts to set. So you have this situation where the demand starts to increase when the availability is decreasing. And I think motors have a key role in helping us balance this. And if because if we can start to back off on some of those things that maybe don't need to be coming on as high a load at five or six o'clock, maybe it's a wastewater facility. They don't need to be treating as much wastewater at that time, they can back off a little bit. That's really going to be the key is to do that efficiently. So we want to do that with a drive and a motor so that we're backing off of these systems efficiently. So we can allow these renewable assets to come online, and then come offline, and then kind of use the stored energy. So I think as far as modulating how we use energy throughout the day to meet when the electrons are available, I think motors are kind of the linchpin, and efficient controller motors are somewhat of a linchpin there in sort of making that happen in integrating with mobile assets.
Keith Larson:Sounds like there's a role for advanced control or AI to help make that, manage that, process as well. And I think ABB does something along those lines.
Morton Wierod:Absolutely, but I think here the digital solutions are a key part to play here. And when it comes to building automation, we mean controlling lighting control, but also temperature control that we keep. It should be comfortable temperature when we are in the room, but you don't need it super cool when there's nobody there. So that is kind of it should be comfortable at the right time, but it doesn't need to be 24/7 either. So, all in here we have with building automation but also with our digital solutions and that goes the same for industries and now and being able to use our digital solution in addition to the right technology, but I always say that all the digital solution will not help us alone, because you have to fix the basics. Because if we use a very inefficient technology, like light bulbs, it doesn't need help to have lighting control, you need to go to the LED lighting. And then you can have lighting control in addition, but the big saving was really to move from light bulbs to LED. That was the majority of the saving, and that is the same in the field of motors and drive can really use digital, but we also need to get the basics in place. And that's where the call to action is from oversight. Let's use that technology available. So as it becomes as natural to buy an high energy efficient motor as it is to buy an LED lights today.
Keith Larson:That kind of leads into another question we have: What technology advances besides pairing a motor with the drive are making the motors themselves more more efficient? Are there new technologies and like your if you're already a light user not sure how much further you know. But if you look at from a system perspective, I suppose even maybe.
Morton Wierod:Jesse, maybe you can tell a bit to what of what has happened in the in the field of Baldor from the motors that you produced 20 - 30 years ago compared to the high efficient motors you produce today. That's a massive difference just by technology.
Jesse Henson:Yes, sure. So you know, we talked earlier about that we've been developing motors and producing motors well over 100 years. And it's always been around to build a better motor and to build a more efficient motor. And in the 1980s, we launched the what we call the Super-E motor, which is the staple of the industry today. And that was when we really made a leap change in energy efficiency at that time. That became the standard, which we know now that led into the IE3 capable type product. And it was really a challenge. You had to add so much more material, either steel and copper, to be able to get increased efficiencies at the time, it didn't justify the payback. You know, we are talking about six to six to 18 month payback and didn't justify itself. But over the last 20 years, we've made great leaps in the right direction. And with technology, that we now can achieve even higher efficiencies. Efficiencies that quite honestly, I never even thought of five years ago that we could really get to, without doing rare earth magnets and those types of things that that then all of a sudden add a lot of cost. And also go kind of against the grain when we talked about climate solution. I wouldn't use, rare earth and things where it takes to get those. So we're able to develop now our latest generation of product line, that it's using non- rare earth material to get those next level efficiencies. And these are things that are going to differentiate and make a difference for, for our customers and our employees and across the business.
Keith Larson:Any secrets you can share? What's the secret sauce? Is it geometry? Is it design? What can you tell us?
Jesse Henson:It's a different technology and different design. And, you know, a lot of times when you do these things, you come up with the a new technology was not always the same form factor; it doesn't fit in the same application; it only works for specific applications. And because of that it's simply a slow movement to get change in the industry. But what we've done here is that's not the case. We've developed a solution that it has exactly the same look and feel. It has the same mounting torque and fit in all the historical applications that's out there. So, a motor that was installed 30 years ago- this can fit right there and still work in that application and the design and the difference is what's on the inside. And that's what we're doing with with non-rare earth material with advancements and our engineering and technology that we have to be able to deliver that.
Keith Larson: Another question:How do, how does onboard intelligence and chips and software and maybe Internet of Things, links in integrated motors, accomplish more efficiency and savings?
Morton Wierod:Maybe start there with a you get here a combination of both motors and drives in our field. On the motor side, and Jesse, I mean, I'm sure you can talk to that as well about the motor sensors is what we we place on the motors as and we can also place it on an old motor is even a non-ABB motor. So that's the way you can detect vibrations but also losses and that means when you should replace it and put in a new motor or do maintenance on your existing equipment. And you can get it connected through your smartphone. So that exists and is being used already today. But the next step which is probably then or even more advanced is when they also use it in combination with a variable speed drive. Where you can automatically also connect that drive to the, to the cloud, and being able to, to monitor and get full transparency on where to use electricity in the process. And that is really the next step. And there we are. Something we are very proud of as ABB because we are in the front, forefront of installing also no running pilots. And having these self connecting valid variable speed drives that customers can then have full, say full transparency on their own process, without the large control system where a lot of additional IT investments and IS investment. So that is is where we are now really bringing it in as taking these self connecting drives and self connecting motors. That's a next step of the industry that can give you, let's say that icing on the cake when it comes to even more savings in the future.
Jesse Henson:So when you look at it, it's when you add a drive, you're adding digital intelligence right there. And when you have the digital intelligence and you control the speed, you can connect to the outside world, you can connect to other systems, you know what energy you're consuming at that point. So you can truly optimize your overall energy savings. And the other the other piece of digital intelligence that Morton talked about was the smart sensor. And I relate that to basically, you go into hospital, and you put everything on your chest and such so they can monitor and make sure that you're staying healthy and know what's going on inside your body. We put these digital sensors on the side of a motor, that's what we're doing. We then have the digital intelligence of that product lines and know what's going on at all times. So that we can keep uptime and understand the savings that we're getting and those types of things that make a difference.
Keith Larson:And one of my own questions here, I think one of Prakash's numbers was $116 billion of electricity costs for motors. And we talked a little bit about the potential savings. Any guess of you know, out of that large electricity costs, what would be the capital investment we would need to be looking at to get to that 10% number on an annual basis? Anybody made any calculations based on that? I'm sure Jessie is looking at the market opportunity for for efficiency at some point. Any sense of of what the scale of that annual investment would be, to get to get our motors and drives in that kind of shape?
Prakash Rao:Well, since I put out that number, I can try to go first. We haven't looked at the investment cost, but I'll say that one of the most, it's, I don't think it might not be as much as we think. Because if we think about an older motor that's, that's failing; an older motor that's not performing and will be failed. I think we did some surveys of how do you change? How do you pick your motor? When when your motor fails? How do you pick that next motor? And usually it was whatever arrives at my factory the fastest or is the cheapest. So, if we can start to think about,no replace out, that that premium efficiency motor, you know, the IE3 motor or with a drive. Now it's the delta between replacing it with some older, some lousy motor, you know, the to be blunt, with it with the more efficient motor. So, I think when you make that investment matters, when you're designing and when you're buying a new compressed air plant, or you're purchasing a new compressed air system, you could look at that. If you look at that efficiency premium, I guess, you know, and it might not be as much just think about, well, how much is an efficient air compressor system? So I think one of the keys is, it might not be that much if it's, if we start to build in these concepts of energy efficiency, and looking at sort of the energy, the labels, when procurement is buying these motors. You know, I'm going to specify that I want a new motor, well, it's got to be premium efficient. You know, it's got to meet these requirements for our company standards. And I think then the investment cost kind of isn't as large as as, as as if you were just thinking starting from scratch.
Morton Wierod:What we often see customers are doing these days, who made these calculations, they were often done, but you need to plan ahead. You know, because it's a bit of what you have in your warehouse or in your, maybe your service department or what they're doing when maintenance. They have the one for one replacement. Instead of being, because when it fails
as prepared, for saying it:you need to replace it immediately. You cannot wait for anytime. So therefore, it's about being prepared. And more and more we see that people are looking at their installed base or what they have on motors and then they're planning that when it fails I'm gonna to take it out and I will put in the new one with the new technology because then it's a bit too late. Then it's like your, your that's not what you're thinking. If your machine is down, you're not starting to do energy, or all these calculations. Then it's about get the process up and running again. So you need to be a bit of planning ahead here. But as Jesse said, as well, only 5% of the cost of a motor is the CapEx; is the purchase price. 95% is the OpEx; it's that the energy it consumes during this lifetime. So in that perspective, as well, the payback is almost always there, when you're when you're doing the calculation up front. But a bit when kind of the motor fail, I need a new one. And the only one is an old one, kind of an outdated one, you have it in your warehouse. And that's what you put in operation is always oh, let's wait until next time. So, we need some planning ahead here to be ready also to do this transition for the large users of motors.
Keith Larson:That makes sense. Alright, a couple of questions related to regulatory requirements. Are there, how do regulatory requirements, I guess, impact that the, or can impact, I suppose, are looking further ahead, how can they impact the efficiencies that are specified for particular applications? And could that be a factor helping to coax us along if the savings aren't enough? And then is there a future where, in some applications, variable speed drives would be mandated for applications?
Jesse Henson:So, when you when you look at the the regulation, you know that there are some talks, but it's still very early on, so I wouldn't expect any form in the US at least of regulation to come out anytime soon, in the next, at least, couple of years. When you look at the use of variable speed drives, and in making that kind of an expectation, I think, definitely you need clarity around the opportunity that's there. But because that we see about 50% of the, the motors installed, could use a drive. So it'd be really hard to say which ones are required to use and which one has not. So, it's more about awareness than I believe it will be around regulation when it comes to the drive side. Now there might be certain applications that come into play. And I think some of that has naturally happened. Some of the regulation in play for HVAC industry and such were that you had to move to things like our integrated motor technology to be able to achieve the overall system efficiencies that was required by law. And so naturally, the overall requirement will drive the need for more drives in the future.
Keith Larson:One more question. This is a good starting to wrap
things up question:What's the essence of what's different about what ABB is doing right now versus past talk about motor efficiency and energy savings? You've formed the energy efficiency movement, but there's something fundamentally different?
Morton Wierod:I think there, one big difference today than what we saw earlier, is that our customers are coming out and saying, you know, we are committing to a net zero target by maybe 2030, some for 2035. And this is today, one of the available technologies, where it's kind of has to be used. So it does, it's not really just an option, it's a must, to be able to reach those commitments that so many companies now going out to say, we want to be carbon neutral, by 2030. And this is, so it's no longer just an opportunity, it's a must for those companies. So and what is different is that from our side, we will really trying, or what we are doing is to engage all stakeholders with sessions like this. Not just telling our customers, but we will also work towards regulators. We will work against, we with with media and public opinion, and universities, academia. So, it's really a wide scope of stakeholders that we are engaging to get the awareness out. So there, I think, has been, it is not just a sustainability case. It's not just the business case. It's not just the right thing to do. I mean we are combining all of that and try and we'll be louder than what we have been in the past and then we need some help as well from from everybody to join in there and and help us in this direction, in the in the right direction.
Keith Larson:Got anything to add from the press to the peanut
Jesse Henson:You know Morton handled it really well there, gallery. and said it well. The one piece that I will add around that is our customers, have sustainability strategies in place. And they want to make a difference to reduce CO2 emissions. Now more than ever, and part of the solutions that even we would have looked at in the past, is we might go and change all of our overhead lights in our factories to LEDs. And we can immediately tie that to the energy savings. We will tie it to our sustainability strategy. And we'll tie it to our expectation we have for CO2 emissions to meet our targets as a business. What most people don't talk about, and this is why we talk about the invisible solution that we have. They don't tie these really energy efficient solutions that we offer to the marketplace to their sustainability strategy and measure for CO2. Some do, but not all. And that's the difference that we can make here. We can help our customers achieve their sustainability journey.
Keith Larson:I think we're running close to the end. And I'd like to leave some room for closing comments from from each of you. Maybe, maybe, maybe, Morton, you can you can start us off. Obviously, I would like to know how we as media, what's our role in this? What can we do other than writing great stories about ABB motors and how efficient they are? But what can what's our role in this? And is there a more formal involvement with the Energy Efficiency Movement that we can be become a part of? Maybe you can start Morton and go around, go around the horn. And then also any other closing comments you might have.
Morton Wierod:Thanks Keith. Now, we have started this year, with our Energy Efficiency Movement around the world. This is we started in in Asia, with Southeast Asia, with China, with India, across Europe, in Latin America, and also now in in the United States. So for us, this is not an one year, or a kind of a short term project. It's something that we are very committed to over a long time. And many of the people in our organization joined ABB because of energy efficiency and being part of a more sustainable future. And that is also why I'm confident that this journey will go on. And we will see next year an opportunity to join the movement also being from from as an individual, and to sign on, but also for a company. So that is something we're coming back in early in '22. So stay tuned there. So you can also and we'll come out with spreading it out in more in with more partners, more customers and partners that want to sign up and joining then also private individuals. And I think all the so how you can help also from the media is to show some of these great examples that being done in the industry. Because there are made some really good choices from the sustainability journeys of companies these days,. How they are applying new technology on this journey to net zero. When it does not come on behalf of competitiveness or worse business, but rather are really the opposite. So there I think it's a it's a really great story that it also I hope you also feel the excitement from all of us from Jesse and myself. Everybody's working in it at ABB; something we thoroughly believe in. And we are just happy that we can also get an even that this message out in a broader audience. And then we need everybody to chip in, all the stakeholders. And while everybody's engagement to be able to get to the net zero, carbon net zero society of the future, which is maybe far ahead, but this is one of the very practical actions we can take already today.
Keith Larson:Great. Thanks, Prakash or Paul, anything to to add, from your perspective. You've been deep in the data here anything you'd like to add, as we close out?
Prakash Rao:Sure. You know, when Paul and I first endeavored on this project and then developed the questions to kind of look at what do we understand motor systems, there was, you know, we had a set of objectives and that was 2017ish timeframe. And now just four years later, I think so much has changed. Whether it's renewables are cheaper and there's much more expansion of the electric grid with renewable energy. Whether it's climate risks and the effects of climate change are
just in our face:that's fires and droughts and the need for resilience has really emerged more in the last four years. But the decarbonisation, of course, now front center. But I think underpinning all of that, what I just said, is energy efficiency. It's always the cheapest. Sometimes not even, you can't even call it cheap, because you don't have to pay anything to achieve it. Yet, it just pays you back. It's always the thing, it's always that one sort of, you know, your best friend who's always there with you. You know, it's energy efficiency, no matter where you are, and it always helps, it all, it always gets you to your end. And so I think, for me, that's something that's tried and true. And I think no matter what, we're in this changing energy landscape, I think efficiency is going to be gonna be king. And then we think about motors, I guess, I always kind of think it's one of the first disruptive technologies, when really think about it. Think about how much of our world it runs by on motors. And it where would we be without motors. Not very far. It's it's enabled our skyscrapers. It's enabled our factory. It's enabled so much of what we do, and it's, again, tried and true. And then it's been there forever. So and it's a it's a wonderful sort of mechanical, electrical device, electromechanical device. So it's, it's a cornerstone of what we do. Efficiency is a cornerstone of what we want to achieve. So I think marrying those two together is just obvious. How about you? Paul, did you have something you want to share?
Paul Schaeffer:Yeah, I think I would echo what Prakash just said. I mean, I think energy efficiency is where organizations should, you know, start their their greenhouse reduction efforts. It's always the most economical way to do it. And you know, the answer is not just to just to go on a green rate schedule and say, I'm done with it. The way to go is to start with energy efficiency, I would agree with that.
Keith Larson:Jesse, last last words from you.
Jesse Henson:As we look at this, and why we're so passionate about it within within ABB. There's a passion for it, because we can see the difference that we can make. That is really the main driver for us in getting the message out there. We invest a significant amount of dollars in R&D, to continue this journey to make a difference for a better tomorrow. And we will continue to do that. And I think that's where they were asking for your help to get that message out there around just what a difference that drives and motors can make for our planet is really what this is about more than anything. So thanks for all that joined today. Thanks Prakash and Paul, for for your time on the call. Really appreciate it really good insight.
Keith Larson:All right, great. Well, I think we're just about at a wrap final reminders. If you're interested in spending some one-on-one time with one of our speakers, send send your email to Tracy, Tracy Long via direct chat. And you'll also receive some follow up information by email as well. Finally, on behalf of ABB and our speakers, Morton, Prakash, Paul and Jesse, I want to really thank you all for joining us in this energy efficiency conversation. Personally, it's very meaningful for me because I was in grad school back in the late 80s, studying solar energy when oil was I think $12 a barrel. It was hard to get anybody's attention, but it's good to see these important conversations, finally gathering more momentum than I think we've all been preaching for many years. We also hope this discussion for all of you on the editorial side, you will see value and becoming part of the energy efficiency movement, and encourage your readers and followers to do the same. By investing in higher higher efficiency solutions available in the market. We can each make a positive change on climate change today.
Mike Murphy:We hope you're able to take something away from our roundtable discussion of Energy Efficiency: the Invisible Climate Solution. For more information on how you can be a part of the solution, visit energyefficiencymovement.com And remember to stay tuned for more ABB solutions podcasts with me, Mike Murphy. Thanks and have a great rest of your day.