Initiating and Sustaining Your - etouches · Initiating and Sustaining Your ... Environment | National Security ... •Sub-metering & internal energy cost allocation

Initiating and Sustaining Your

Energy Efficiency Program

Timothy Dantoin

Senior Engineer

September 10, 2013

2 © Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure

Today’s Agenda

• Energy Efficiency in Perspective

• Consumption, Capacity & Uncertainty

• Energy Management System

• Typical vs. Best in Class

• ISO 50001

• Practical & Strategic

• Homework – for developing your Energy Program



200

250

300

350

400

450

500

2007 2015 2020 2025 2030 2035

Energy in PerspectiveProjected Worldwide Consumption

Source: EIA International Energy Outlook 2010

OECD Non-OECD

Quadrillion

BTU 6x84 %

14 %280

458

245249

1,000,000,000,000,000



U.S. Coal Capacity Build Rate

~2.3 GW added

in 2011-12



U.S. Coal Capacity - Net

~8.5 GW retired

in 2011-12



Coal Capacity Build Rate Comparison

China v U.S.

US – 5GW

China – 55GW



-

10,000

20,000

30,000

40,000

50,000

60,000

1988 1991 1994 1997 2000 2003 2006 2009

Energy Competitiveness

Energy Consumption (Btu) per Dollar of GDP

China

BrazilUS

India

Germany

Source: EIA International Energy Statistics 2012

% Change

(1988 to 2011)

China 50%

India 22%

US 33%

Brazil -20%

Germany 34%

China vs. US

1988 2011

5 to 1 3.5 to 1

1 lb coal = 10,000 btu



Carbon Footprint



Market Ready ?

United Kingdom United States

Pepsi Co

?



Efficiency as a Resource

Source: Alliance to Save Energy, August 2010

cumulative avoided annually since 1980



• Understand Energy Uses

• Quantify Opportunities

• Select Projects

• Provide Justification

• Gain Approval

• Implement Projects to Save $$

• Generate EE Ideas

Awareness

Planning

Communication

Goals

Support

Motivation

Performance Tracking

A purely technical focus goes only so far

Energy Management

Continual Improvement Approach



Characteristics of Effective Programs

•Strong leadership & resource allocation

•Corporate culture that recognizes value of EE

•Sub-metering & internal energy cost allocation

•Energy assessment of all capital projects

•“On the fly” production adjustments for EE

Source: Kamen, James A. 2002. “Energy Management Practices Provide

Manufacturing Advantage”. Energy User News.



Understanding ISO

• From the Greek isos meaning equal

• International Organizations for Standardization

• Created in 1947 to…"to facilitate the international

coordination and unification of industrial standards".

• By mid-1960’s growth in international trade created

further demand for standardization across boarders.

• ISO 9001 emerged in 1989 to standardize a variety of

different national quality management systems

• Environmental accords reached at Rio Earth Summit in

1993 lead to publication of ISO 14001 in 1996



Common ISO Technical Standards

Shipping Containers – ISO 6346

Film Speed – ISO 9848

Credit Cards – ISO 7810

Fastners – ISO 2



Common ISO Management Standards

• Quality – ISO 9001

• Customer Satisfaction – ISO 10003

• Environment – ISO 140001

• Food Safety – ISO 22000

• Social Responsibility – ISO 26000

• Information Security – ISO 27001

• Supply Chain Security – ISO 28000

• Risk Management – ISO 31000

• Energy Management – ISO 50001 – June 2011



Principle of Continual Improvement

• Plan – establish objectives and make plans to achieve them

• Do – implement your plans (do what you planned to)

• Check – measure your results and compare to objectives

• Act – adjust your objectives or improve your plans



ISO 50001 - PLAN

• Legal & Other Requirements – identify L&OR applicable to

organizations energy use.

• Energy Review – analyze energy data, identify significant

uses & prioritize opportunities for improvement

• Energy Baseline – define period to serve as basis for

comparison of performance

• Energy Performance Indicators – a quantitative measure of

energy performance

• Objectives & Targets – energy performance improvement

goals to be achieved by the organization

• Action Plans – tasks and timetable achieving objectives &

targets



ISO 50001 - DO

• Competence, Training & Awareness – to ensure employees

& contractors know responsibilities for energy management

• Communication – implement processes for internal &

external communication about the EnMS & energy

performance

• Documentation – document and control EnMS information

• Operational Control – plan and carry out operations

associated with SEU’s

• Design – consider opportunities for energy performance

improvement in new or modified facilities, equipment or

processes

• Procurement – make energy performance a factor in

purchasing decisions involving significant energy uses.



ISO 50001 – CHECK & ACT

• Monitoring, Measurement & Analysis – assess key

characteristics of activities that determine energy performance

• Evaluate Compliance – with applicable legal & other

requirements

• Internal Audit – verify that the EnMS is functioning as

intended and generating the intended results

• Corrective & Preventative Actions – identify and correct

problems

• Records Control – maintain information about activities &

results

------------------------------

• Management Review – periodically review with senior

management EnMS and energy use performance



ISO 50001 & Energy Management

• 4.2.1 – Top Management

o Approve an energy policy

o Appoint a management representative

o Empower an energy team

• 4.2.2 – Energy Management Representative

o Ensure implementation of the EnMS

o Report to top management on energy performance

• 4.5.2 – Training & Awareness

o Ensure that anyone impacting SEUs is competent

• 4.7.1 – Management Review

o At planned intervals top management shall review the EnMS



ISO 50001 & Energy Performance

• 4.4.3 – Conduct an energy review

o Analyze energy use and consumption

o Identify areas of significant energy use (SEUs)

o Identify and prioritize opportunities for improvement

• 4.4.4 – Establish an energy baseline year

o Period for which reliable data is available

o Identification of a period prior to beginning energy improvements

o Determination of when active energy management began

o Satisfaction of stakeholder and/or certification body mandates

• 4.4.5 – Identify & monitoring indicators of performance

• 4.4.6 – Establish objectives, targets and action plans



Barriers to Effective Energy Management

• Other Priorities (quality, safety, production)

• Energy Taken for Granted (“It works…don’t fix it”)

• Lack of Data (about energy use and drivers)

• Narrowly Focused (“talk to the facilities guy”)

• Lack of Awareness (about opportunities & methods)

• Insufficient Resources (finances & staff time)

• Lack of Organizational Infrastructure (sustainability)



…in Theory

• Management Commitment…

• Energy Champion…

• Energy Policy…

• Energy Team…

• Measure & Monitor…

• Report & Communicate…

• Set Energy Savings Goal…

• Implement Projects…

…in Practice

…Management Concern

…Another “Hat” for Someone

…Nice Words – No Teeth

…Another &*#@ Meeting ! !

…No Payback on Sub-Meters

…Monthly Actual vs. Budget

…Based on What ?

…Competition for $$

The Ideal Meets Reality



Strategic Energy Management

• Bridge between energy management in

theory & practice

• Starts from the top AND the bottom

• senior management commitment

• identifying energy saving opportunities

• Embed energy matters into organizational

decision-making

• Following the money



SEM….moving forward

• Understand Energy – who, what, where

• Opportunity Identification – find the savings

• Prioritize Implementation – fighting for capital

• Performance Indicators – track the results

• Embed Energy – management infrastructure



Understand Energy - Facility Profile

Energy in Business Context

ElectricityPropane

Natural

Gas

No.2 Oil

Total Btu’s

3.14%% Increase in Profits with 5%

Reduction in Energy Costs

62.75%Energy as % of Profits

$3,450,000Annual Profits

6.46%Energy as % TF Costs

$33,500,000Total Facility Costs

14.43%Energy as % Oper. Costs

$15,000,000Operating Costs

$2,164,782Total Energy Cost

(Annualized)

2006Business Indicators

$0.52Water $ p Lbs Resin

$5.29Tot Energy $ p Lbs Resin

0.339Gas MMBtu p Lbs Resin

$2.53Gas $ p Lbs Resin

0.180Electric MMBtu p Lbs Resin

$2.76Electric $ p Lbs Resin

408,858Lbs Resin

(Annualized)

2006Key Performance Indicators



Electrical

MMBtu

Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther

Understand Energy - Equipment Profile

Estimating Energy Use



e.g. “Free Cooling” Project

Save 2.5%

Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther

Electrical

MMBtu

Finding Opportunity - ECMs

Finding Opportunities



Opportunity Catagories

• Comfort Heating

• Comfort Cooling

• Compressed Air

• Dehumidification

• Fans

• Hydraulic

• Lighting

• Motors

• Process Cooling

• Process Heating

• Pumps

• Refrigeration

• Steam/Hot Water

• Vacuum

• Ventilation

• Wastewater treatment



Prioritizing (right side)



Prioritizing (left side)



Tracking Performance

Energy Performance Indicators (EnPls) – a measure

of energy intensity used to gauge effectiveness of

your energy management efforts.

Baselining - comparing plant or process

performance over time, relative to its measured

performance in a specific (i.e. baseline) year.

Benchmarking - comparing performance to

average or established best practice level of

performance against an appropriate peer group.



Energy Efficiency vs. Energy Intensity

Efficiency – amount of

output per unit of energy

Intensity – amount of

energy per unit output



Energy Use Drivers

Production volume

Weather

Building occupancy

Square feet



Base Load

Variable Load

Production Level or

Heating D.D.

Total

Energy

Use

EnPI – Simple Regression

y = mx + b

m = energy per variable unit

b = base load

R2 = correlation coefficient



• Total kWh = (0.3257kWh per Lb x Total Lbs) + 258,748 kWh

• Assume Total Lbs = 1,000,000 then Total kWh = 584,448

• At $0.075 per kWh, energy cost = $43,834

• Or, $0.044 of electrical energy per Lb of output

y = 0.3257x + 258748

R2 = 0.8449

400,000

450,000

500,000

550,000

600,000

650,000

700,000

750,000

600,000 800,000 1,000,000 1,200,000 1,400,000

kWh

Extrusion Output (Lbs)

EnPI Example



• EnPIs, as indicators of performance, should be at the core

of your communication efforts to senior management as

well as production staff.

• Communicating energy efforts and performance is vital for

generating awareness, responsibility and action.

• Effective energy management involves changing

organizational culture and individual mindsets.

EnPI– Reporting The Results



Embedding Energy

• Gap Analysis – understanding the gap between

theory and your current management practice

• Management Plan – turning the gaps into action

items

• Infrastructure – the procedures and

requirements that make energy relevant to the

rest of the organization



• U.S. EPA’s Energy Star Program

• Provides program and facility level assessments• http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index

• U.S. Dept of Energy SEN Leaders Tool

• Provides assessment against ISO 50001

• DOE eGuide for ISO 50001

• designed for step-by-step implementation of ISO 50001

• https://save-energy-now.org/EM/SPM/Pages/Home.aspx

Gap Analysis

http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index

https://save-energy-now.org/EM/SPM/Pages/Home.aspx



Management Plan



Management Infrastructure

• Follow the Money

• Purchasing – commodity and distribution

• Use – utility bill and internal cost allocation

• Planning – energy implications of capital requests

• Establish Responsibility – carrots n sticks

• Energy Champion

• Energy Users

• Plant Management

• Energy Accounting

• Significant Uses

• Opportunities

• Performance



??? ISO 50001 / SEP ???

Prioritization Toolquantify, track and report

on energy saving

opportunities

Management Planturns gap analysis into

specific actions for

improvement

Strategic Energy Management

Senior Managementchange concern to commitment

Effective Energy TeamIt all starts here



Characteristics of Effective Teams

• Develop concise action plans that are regularly updated

• Address technical & management aspects of energy

• Act as opportunities arise

• Measure existing conditions & impact of change

• Engage other employees as needed

• Have effective meetings



Effective Team Meetings

Meet frequently for no more than 1 hour

Set and keep a fixed day and time (e.g. 2nd Tuesday)

Maintain meeting “pace” (i.e. don’t dwell on one subject)

Members define next project task & due date

Spread task responsibilities (burn-out vs. buy-in)

Rotate responsibility for new efficiency ideas

Do NOT invite vendors to meetings

Address continual improvement (i.e track & communicate)

Use laptop & projector for real-time notes & calcs

Keep energy use in perspective



Team Meeting Minutes



Project Savings Calculations



Energy Efficiency in Perspective

Global in Scope The Bottom Line

Your Focus



Homework

• Energy is what percent of your operating costs ?

• How does your company allocate energy costs ?

• Do you assess energy impacts of capital projects ?

• Has your company established an energy goal ?

• Do you have an energy team; is it effective ?

• What are the savings from identified projects ?

• Have you developed an EnPI for your company?

• Conduct a gap analysis?



Contact Information

Tim Dantoin, Senior Engineer

Science Applications International Corp

Cell: 920-366-3744

Email: [email protected]

Documents

Initiating and Sustaining Your - etouches · Initiating and Sustaining Your ... Environment | National Security ... •Sub-metering & internal energy cost allocation