The industrial sector includes all facilities and equipment used to produce, process, or assemble goods. Industry accounts for 30% of the world’s energy consumption and 33% of U.S. energy consumption. Industries that use the most energy are those that produce petroleum, chemicals, paper and wood products, steel, and aluminum.

One way utility companies and industries can save energy is to use cogeneration to produce two useful forms of energy from the same fuel source. For example, the steam used for generating electricity in a power or industrial plant can be captured and used again to heat the plant or other nearby buildings instead of being released into the environment. The energy efficiency of these systems is 60–80%, compared to 25–35% for coal-powered and nuclear plants. Denmark uses cogeneration to produce 53% of its electricity, which is more than any other country. In comparison, the United States uses cogeneration to produce only 12% of its electricity.

Industries can also save money by using more energy-efficient, variable speed electric motors. They are designed to run at the minimum speed needed for each job. In contrast, standard motors run at full speed with their output throttled to match the task. This is somewhat like using one foot to push the gas pedal to the floorboard of your car and putting your other foot on the brake pedal to control its speed.

Recycling materials such as steel and other metals can also help industries save energy and money. Recycling also reduces negative environmental impacts. For example, producing steel from recycled scrap iron uses 75% less high-quality energy than producing steel from virgin iron ore and emits 40% less . Steel is the world’s most recycled material.

Industries can also improve energy efficiency by making simple changes in the workplace, such as replacing incandescent bulbs with LED lighting. Businesses can adjust thermostat temperatures, limit air conditioner use, and install smart meters to monitor energy use. Workers can shut off computers, printers, and nonessential lights at the end of the workday.

A growing number of major corporations are saving money by improving energy efficiency. For example, between 1990 and 2014, Dow Chemical Company, which operates 165 manufacturing plants in 37 countries, saved $27 billion by carrying out a comprehensive program to improve energy efficiency. Ford Motor Company saves $1 billion a year by turning off computers that are not in use.