The initiative is expected to save the American manufacturing sector $100bn in energy costs over the next decade, thereby increasing profits and strengthening competitiveness.
President Obama has sought to identify opportunities in the manufacturing sector to expand the use of combined heat and power (CHP) to make the sector more energy efficient and drive down costs.
The executive order set a new national goal of 40GW of new CHP capacity by 2020, up 50% from the current capacity.
Commenting on the executive order, the President said, "This action will cut costs, increase efficiency, and help our businesses create strong, middle class jobs."
The order also directed the departments of energy, commerce, agriculture and the Environmental Protection Agency, to provide policy and technical assistance to states, helping them promote similar investments.
A dialogue on a national scale and regional workshops are also envisaged in the order to help encourage the adoption of best practice policies and investment models, provide public information on the benefits investment in industrial energy efficiency, and the use of existing Federal authorities to support these investments.
