Industry uses around one third of the world's energy, and accounts for about 40% of global carbon dioxide emissions. There is increasing economic and social pressure to improve efficiency and create closed-loop industrial systems, in which energy efficiency plays a key role. This paper describes some of the key concepts involved in modelling the energy flows in manufacturing, both for the building services and the industrial processes. Detailed dynamic energy simulation of buildings is well established and routinely used, working on a time series basis - but current tools are inadequate to model the energy flows of many industrial processes. There are also well-established models of manufacturing flows, used to optimise production efficiency, but typically not modelling energy, and usually representing production and material flows as event-driven processes. The THERM project has developed new software tools to model energy-related and other utility flows in manufacturing, incorporating these into existing thermal models of factory buildings. This makes it possible to map out the whole energy system, and hence to test efficiency measures, to understand the effect of processes on building energy use, to investigate recycling of heat or cooling into other processes or building conditioning, and so on. The paper describes some of the key concepts and modelling approaches involved in developing these models, and gives examples of some real processes modelled in factories. It concludes that such models are entirely feasible and potentially very useful, although to develop a tool which comprehensively models both energy and manufacturing flows would be a major undertaking. (C) 2013 Elsevier Ltd. All rights reserved.