By Wayne Nisley

Energy is one of the largest controllable costs in any sawmill. With rising utility rates and fluctuating fuel prices, energy efficiency isn’t just a green initiative — it’s a business imperative. The good news is that improving energy use doesn’t have to mean major overhauls or expensive upgrades.

Often, small changes in habits, maintenance, and system design can yield noticeable savings.

This article explores where most sawmills use (and waste) the most energy, and how mills can cut power and fuel costs without compromising production or quality.

Where Energy Goes in a Sawmill

Every mill is different, but energy usage tends to follow a similar pattern. The main areas of consumption typically include:

Motors and Drives: From saws and conveyors to hydraulic systems and fans, electric motors often account for 60–70% of total electricity use in a mill. In mills powered by diesel generators, these motors still make up the bulk of the draw — but their impact shows up at the fuel pump instead of on a utility bill.

Drying Systems: Kilns and fans are extremely energy-intensive, especially if older or poorly insulated. Even air-drying setups use energy through handling equipment and climate control. For mills running diesel-fired kilns or burners, fuel efficiency plays a major role in keeping drying costs under control.

Lighting and Heating: Especially in colder climates or older facilities, inefficient lighting and heating systems can quietly add thousands to annual energy bills. Off-grid mills powered by gensets often leave lights and heaters running longer than necessary, draining valuable diesel fuel.

Compressed Air: Pneumatic tools and actuators rely on air systems that are often poorly maintained, resulting in leaks and wasted energy — whether that energy comes from electricity or from a diesel-driven compressor.

Understanding how your specific mill uses energy — whether powered by the grid, a genset, or both — is the first step toward cutting waste.

Start with a Basic Energy Audit

You don’t need a fancy consultant to get started. Walk through your mill and identify obvious inefficiencies. Are motors running when nothing is being cut? Do kilns stay on longer than needed? Are shop lights left on during daylight hours? Are engines idling between loads?

Even better, contact your local utility provider. Many offer free or low-cost energy audits, including infrared scans, power factor analysis, and rebate programs for efficient upgrades. For diesel-powered mills, simply tracking weekly fuel usage alongside hours of operation can offer insight into inefficiencies you might not notice otherwise.

Tips to Reduce Energy Waste

Keep Motors Clean and Efficient

Motors work best when they’re clean, well-lubricated, and not overloaded. Dirty or dust-clogged motors have to work harder, using more electricity or diesel-generated power and wearing out faster. Make sure motors are appropriately sized for the job. Consider installing variable frequency drives (VFDs) to adjust motor speeds based on load, which can reduce energy use dramatically — and lower the fuel demand on diesel generators too.

Upgrade Lighting

Many mills still rely on metal halide or fluorescent lighting, which is outdated and inefficient. Replacing these with modern LED fixtures can reduce lighting costs by 50–75% — and improve visibility in the process. Look for lights with high lumen output and shatter-resistant housings to handle rough environments. This is especially helpful in off-grid mills where every light left on pulls fuel from the generator tank.

Improve Kiln and Heating Efficiency

Kilns are among the biggest energy hogs in the mill. Make sure yours is properly insulated and sealed. A leaky kiln wastes both heat and money. If you're still using steam heat, consider upgrading to more efficient direct-fired gas systems or hybrid designs. Diesel-fired kilns and heaters should be regularly serviced and monitored for unburned fuel, poor combustion, or draft leaks. Monitor moisture content closely and avoid over-drying, which not only wastes energy but can degrade product quality.

Fix Air Leaks

Compressed air is often referred to as “the most expensive form of energy in a plant” — and for good reason. Air compressors leak. Fittings wear out. Hoses crack. A single ¼-inch leak in a 100-psi system can waste over $2,500 per year in electricity or diesel fuel used to power the system. Walk the plant regularly with a spray bottle of soapy water and check for leaks. If bubbles form, you’ve found a leak. Fixing leaks and optimizing pressure settings can quickly pay for itself.

Schedule Smart Startups and Shutdowns

Too many mills start every machine at the beginning of the day and let them idle until closing time. That burns a lot of power — and fuel — for no output. Create standard startup and shutdown sequences to match actual production flow. Equipment that isn’t in use shouldn’t be running. This practice not only saves electricity or diesel, but also extends the lifespan of machinery and components.

Consider Renewable and Alternative Options

While the upfront cost may be higher, some mills are now incorporating biomass burners, solar panels, or waste-heat recovery systems. In remote or off-grid locations, pairing diesel with solar or wood-waste heating systems can stabilize fuel use and reduce operating costs over time.

Burning sawdust and wood scrap for kiln heat or space heating is another proven way to offset diesel costs, especially in operations already producing large amounts of residual material.

Make Efficiency a Team Effort

Energy savings aren’t just a maintenance issue — they’re a cultural one. Encourage operators and employees to report leaking hoses, flickering lights, or machines that don’t shut down. Post reminders in break rooms. Track monthly usage and celebrate improvements.

Some mills even offer small bonuses or team rewards when energy reduction goals are met. When your crew has buy-in, it’s much easier to make lasting changes.

Conclusion

In the face of rising energy prices and tight margins, sawmills can’t afford to overlook efficiency. But cutting power bills or fuel costs doesn’t mean cutting corners. With some simple changes in maintenance, operations, and habits — along with a few smart upgrades — mills can lower their energy use, extend equipment life, and protect their bottom line.

Whether your mill runs on electricity, diesel, or a mix of both, the principles are the same: eliminate waste, maintain your systems, and match energy use to actual demand. In today’s market, efficiency isn’t optional — it’s survival.