Abstract The Brookhaven National Laboratory Industry Model Program (IMP) has undertaken the development of a set of industry-specific process optimization models. These models are to be used for energy use projections, energy policy analyses and process technology assessments. Applications of the models currently under development show that system-wide energy impacts may be very different from engineering estimates, selected investment tax credits for cogeneration (or other conservation strategies) may have the perverse effect of increasing industrial energy use, and that a proper combination of energy taxes and investment tax credits is more socially desirable than either policy alone. A section is included describing possible extensions of these models to answer questions or address other systems (e.g. a single plant instead of an entire industry).