Leveraging Utility Resources to Boost Efficiency for the Next Generation of Space Travel: An Energy Efficiency Case Study for ATK Launch Systems

In promoting energy efficiency for any sector, it is important to break down barriers by demonstrating actual projects. Many projects never make it off the drawing board because decision-makers and implementers simply don’t have enough practical information to take the plunge. This case study seeks to break through energy efficiency implementation barriers by demonstrating how utility incentives can be leveraged to reduce simple payback times. ATK Launch Systems—developers of the current and future solid rockets for NASA’s space program—was able to leverage utility incentives to fund efficiency measures in their manufacturing facilities. Using a U.S. DOE Plant-Wide Assessment, ATK recently identified energy cost savings of more than 20%—or $2.4 million per year—which required an initial investment of $4.9 million, before utility incentives. Using utility incentives, which totaled $1.6 million, ATK was able to drop the average simple payback time below two years, from 24 months to 16 months. ATK and their utility, Rocky Mountain Power (RMP), have been working together for some time on energy efficiency projects. RMP has two specific efficiency incentives which consistently allow ATK to bridge the gap between unacceptable and satisfactory payback periods: Energy FinAnswer and Self-Direction Credit programs. ATK benefits with energy savings as described above and RMP benefits through avoiding costs to upgrade, fuel, and maintain a power grid that serves an ever increasing electricity demand. The case study was conducting using information shared by ATK and Rocky Mountain Power, and by conducting some simple financial analyses.