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Specific consumption & energy intensity

Business Model & Unit Economics · Unit metrics

What it is

Input consumed per unit of output - kilowatt hours per tonne, coal per unit of power, water per litre produced. It normalises resource use so efficiency can be tracked independently of volume

It is becoming a compliance metric as well as a cost one under carbon and efficiency regulation

Impact on industries

  • The cleanest measure of process efficiency, unaffected by price movements or production volume
  • Now carries regulatory and carbon value as well as cost value, since emission intensity targets are set on this basis
  • Improvement usually requires capital, so the gap between best and worst plants reflects vintage more than management
  • Comparable only within a technology route - a blast furnace and an electric arc furnace cannot be judged on the same figure