Manufacturing Energy Efficiency Trends, Challenges and ... 2014/PM 2-1 SI… · Manufacturing Energy Efficiency Trends, Challenges and Opportunities Lee Hock Wee Senior Industry Manager

Manufacturing Energy Efficiency

Trends, Challenges and Opportunities

Lee Hock Wee Senior Industry Manager

Sustainable Manufacturing Centre Singapore Institute of Manufacturing Technology

October 2, 2014

Copyright © 2013 All rights reserved

Singapore Institute of Manufacturing Technology

Outline

• How Singapore industrial sectors consume energy?

• Why should we care about manufacturing EE?

• Challenges in manufacturing EE

• Energy efficiency operations & saving opportunities

• A case in food manufacturing and lessons learnt

• EE maturity and firm’s value creation



SGP Energy consumption by sectors

Industrial

Commerce

Transport

Households

Others

Source: Singapore Statistical Yearbook 2014

Energy efficiency is the 5th fuel ..

Source: IEA Indicator databases



Source: Yu, J. et. al. Analysis of material and energy consumption of mobile phones in China, Energy Policy, 2010

Energy Consumed by Mobile Phones

1

Components Manufacturing

39% 21% 20% 10%

8% Usage Network

Packaging & Transport

Assembly

Raw Materials Production

During the life-cycle (cradle-to-grave)



~ 60% in manufacturing activities

EE Investments are profitable & low risk ..

Source: Vaidyanathan, S. et al, Overcoming Market Barriers and Using Market Forces to Advance Energy Efficiency , March 2013, American Council for an Energy-Efficient Economy

Invest in EE is only marginally higher risk, but significantly higher returns than Treasury

Bills



ROI of EE Projects by Sectors

Source: UNIDO, Industrial energy efficiency for sustainable wealth creation: Capturing environmental, Vienna, 2011

Based on UNIDO Survey 2011, 357 companies from 25 developing countries

The payback period is about 2 years. The IRR is high for most sectors



At business levels, EE is down at the bottom of the food chain ..

Source: Inresearch.com, June 2013





Source: DuPont, October 2013

Energy efficiency is not a product quality attribute

Energy use is broadly dispersed at a typical plant (hundreds of users)

Energy inefficiencies are frequently invisible

Expertise and resources to identify and make improvements are limited

At operations levels, EE is elusive & unknown ..

Top challenges in energy mgmt ..



Source: Inresearch.com, June 2013

Management culture is key. It affects carbon emissions ..

Source: Nicholas Bloom et. al, Modern Management: Good for the Environment or just Hot Air? NBER, October 2008





Source: Rockwell Automation, 2013

How is an energy efficient manufacturing operations looks like?

Source: www.designews .com, 2010



US$ 10K annually per leak

EE Opportunities – Air Leak



EE Opportunities – Steam Leak

Source: www.clearboiler.org

US$ 50K annually per leak



Source: www.microtechnologies.com

EE Opportunities – VFD

EE in Food Processing Sector

Source: Wang, LJ. et. al., Energy efficiency and management in food facilities, Taylor & Francis, 2008



Energy Consumed

Process Heat 59% Refrigeration 16%

Motor Drives 12%

HVAC, Lighting, Others 13%



Source: Muller, DCA. et. al., An energy management method for the food industry, Applied Thermal Engineering, 2007

EE in Food Processing Sector Nestle – Energy Saved

0 50 100 150 200 250 300 350

Fixed compressed air leakage

Regulation of steam user

Removing stand-by of air compressors with a VSD unit

Regulation of HVAC

Vacuum production in dryer

Replacing compressed air usage by dedicated blower

Insulating pipes of high-temperature condensate return

Energy Saving (MWh/Year)



Key Learning in EE

• Sustainability is “everyone’s job”; it’s a Core Value

• Having measurable goals puts “teeth” in your commitment



Source: Energy Efficiency Indicator Survey, Institute for Building Efficiency, US, 2013

Organisations with publicly stated goals are more energy efficient ..

• Implemented 50% more EE and RE projects • Are 2.7 times more likely to increase investments the following years • Adopted more energy management practices • See greater brand value, property value, and other benefits



Key Learning in EE

• Sustainability is “everyone’s job”; it’s a Core Value

• Having measurable goals puts “teeth” in your commitment

• There is no substitute for senior leadership support!

• It really helps when you can “show them the money”!

• Sustainability is a journey, not a destination

– Phase 1: EE & environmental compliance

– Phase 2: EE & carbon footprint reduction goals

– Phase 3: Sustainability as a megatrend, driving strategy and R&D

Copyright © 2013 All rights reserved Singapore Institute of Manufacturing Technology

EE Maturity and Firm’s Value Creation

Maturity

Val

ue

Regulatory Compliance

Meet minimum requirements

EE auditing

Reduce Costs Energy management

Online energy monitoring

EE improvement plan

Competitive Advantage Energy-aware operation

planning and scheduling Energy efficient product

design Energy efficient process

design Enterprise-level energy

efficiency optimisation

Reactive EE Positive EE Strategic EE



EE-Based Manufacturing Decision Making

Energy & Eco-Efficiency

Cost

Time

Quality

Flexibility

Flexibility

Flexibility



Thank you for your attention!

[email protected] Mobile: 93802777

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Documents

Manufacturing Energy Efficiency Trends, Challenges and ... 2014/PM 2-1 SI… · Manufacturing Energy Efficiency Trends, Challenges and Opportunities Lee Hock Wee Senior Industry Manager