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Precast Show 2019
NPCA 1
precast.org/education
INCREASE PROFITS AND COMPETITIVENESS
BY REDUCING ENERGY COSTS
Kelly Weger, RA, LEED AP, CEA
precast.org/education
SUSTAINABILITY
“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.” - UN
General Assembly, Report of the World Commission on Environment and Development
“In every deliberation, we must consider the impact on the seventh generation.” – The Constitution
of the Iroqouis Nations
“Able to last or continue for a long time" – Merriam Webster
precast.org/education
Pla
ne
t
Profit (Economic)
▪ Improves efficiency & lowers costs
▪Reduces regulatory compliance costs
▪Creates revenue enhancement opportunities
Planet (Environmental)
▪Reduces demand for resources and energy from nature
▪Reduces waste to nature
People (Social)
▪More resources & energy become available for others
▪Closing the loop generates new jobs
TRIPLE BOTTOM LINE
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ACTUAL SUSTAINABILITY
People
ProfitPlanet
Sustainability =
delicate balance
of all three
factors in the
Triple Bottom
Line
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BIG HITTERS
• In 2017, 94% of Fortune 200 companies have sustainability goals
• Sustainability is becoming more critical for all companies to remain competitive
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WHY ARE COMPANIES BECOMING MORE SUSTAINABLE?
Is your company trying to cope with increasing environmental regulation?
Are your customers demanding better environmental performance and data?
Do you want to lower your energy and materials costs?
Are you interested in producing and marketing greener products?
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MORE PROFIT
• Do companies that invest heavily in sustainability incur higher costs and become less profitable?
• No. Global 100’s cumulative return is 24 percentage points higher than the ACWI benchmark.
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PRODUCTIVITY IMPROVEMENTS
• More rigorous environmental standards = 16% higher labor productivity
• Workers with a view performed 10% better on tests of mental function and memory recall
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HR COSTS
❑Labor is 1st or 2nd largest cost
❑Companies with sustainability goals have higher employee retention, better recruitment, & reduced turnover.
❑Reduced turnover means less time working understaffed, searching for talent, training, and bringing productivity back to 100%.
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KEY DRIVERS
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ENVIRONMENTAL WASTE CATEGORIES
Solids EnergyAirWater Toxicity
(Chemicals)
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COMMERCIAL BUILDING ENERGY USE
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Source: DOE, 2011. Buildings Data Book
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INDUSTRIAL ENERGY USE
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PRECAST CONCRETE ENERGY
The Precast Industry spends over $200M on energy annually
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ENERGY SAVINGS BASICS
Easy Projects with Typical
2-Year Simple Payback
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LIGHTING
• Do NOT wait to replace old T12 Fluorescents
• High Bay = High Maintenance
• Exterior HIDs LED
• Emergency Exit Signs LED
• LEDs are far cheaper and higher quality
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LIGHTING
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AUTOMATED CONTROLS
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NPCA 4
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INSTANT-FIT LED RETROFITS
• Plug 'n play solution
• No rewiring
• Leave your existing electronic ballast
• 2100 Lumens
• 4000K
• 17-Watt
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WIRELESS CONTROL SYSTEMS
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VFD ON MOTORS
• Variable loads
• Energy savings will vary
• Reduced speed of 50% yields energy savings of 87%
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VFD ON MOTORS
• Variable loads
• Energy savings will vary
• Reduced speed of 50% yields energy savings of 87%
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• At 100 psi, a 2 psig decrease can equal 1% savings
• 1 hp for 8760hr/yr at 10¢/kWh = $500/year
• A single 1/8" leak can cost more than $2,000 per year in electricity!
23Version 4.0 © 2014 Purdue Research Foundation
RULES OF THUMB
Source: U.S. Department of Energy
COMPRESSED AIR
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▪ Leaks, Leaks, Leaks! (30 –50% loss)
▪ Running at higher pressure than needed
▪ Inappropriate uses of air
▪ Waste Heat recovery
© 2014 Purdue Research FoundationVersion 4.0
Even the best Air Compressor is only 12 – 15% efficient
Photo Source: www.compressedairleak.com
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COMPRESSED AIR
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COMPRESSED AIR EXAMPLE
Situation: A compressed air system needs more air.
Option #1: Purchase additional compressor for $82,000.
Option #2: Optimize current system for $184,000.
Additional Information: The existing system consists of 1350 hp of various types of compressors. The energy usage of the existing compressors has been measured to be $399,000 per year. Direct maintenance costs on the compressors and air treatment equipment is estimated at $50,000 per year.
Story Problem #3
Version 4.0 25© 2014 Purdue Research Foundationprecast.org/education
Option #2:
Optimizing the system will reduce operating costs from $399,000 a year to $302,000 a year, for a savings of $97,000 in electrical costs. There will be additional recurring maintenance expenditures of $5000/year for leak prevention.
Story Problem #3
Version 4.0 26© 2014 Purdue Research Foundation
COMPRESSED AIR EXAMPLE
Option #1: The new 150 hp compressor will cost an additional $48,000/yearto operate. Maintaining the new compressor will cost $5,000 per year.
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LIFE CYCLE COST COMPUTATION
Life Cycle Cost Analysis Option 1 Option 2
Installation Costs(occurs in Year 1) A
1. Preventative Maintenance (recurring annual cost) 1
2. Predictive Maintenance (recurring annual cost) 2
3. Energy(recurring annual cost) 3
4. Lost Production (recurring annual cost) 4
Annual Cost B = (1+2+3+4)
Cumulative Outlay end Year 1 =A+B
Cumulative Outlay end Year 2= A+B+B
$82,000
$55,000 $50,000
$184,000
$357,000$502,000
$584,000 $541,000
$1,086,000 $898,000
$447,000 $302,000
27© 2014 Purdue Research FoundationVersion 4.0
N/A $5,000
N/A N/A
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ENERGY SAVINGS MINDSET
Important Guidelines to Consider
BEFORE You Retrofit
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IMPORTANCE OF A SYSTEMS APPROACH
Looking beyond individual components --looking at the system as a whole
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• Boiler vs. Steam System
• First Cost vs. Life Cycle Costs
• Pump vs. Water Pumping System
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What are the system costs of an HVAC system?
SYSTEM LIFE CYCLE COST COMPONENTS
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LIFE CYCLE COST COMPONENTS
1. Installation Costs
❑ Capital expenditure
❑ Expenses
❑ Labor
❑ Materials
❑ Engineering
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2. Energy Costs
Based on:
❑ Efficiency
❑ Operating hours
❑ Electricity rates
Up to 8 times larger than installation cost
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LIFE CYCLE COST COMPONENTS
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3. Maintenance Cost
• Typically between 5% to 10% of installation cost annually
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LIFE CYCLE COST COMPONENTS
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4. Lost Production Cost
❑ Lost sales & opportunities
❑ Overtime
❑ Late shipping charges
❑ Domino effect on just-in-time supply chains
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LIFE CYCLE COST COMPONENTS
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STORY PROBLEM: FOUR NEW FANS
Situation: Four fans in an HVAC system need to be replaced
Two options. Which is more cost effective?
Story Problem # 1
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• Option #1: • 50 hp radial fans with flat blades• Total installation cost = $70,000• Fan efficiency = 55%• Resultant annual energy cost = $48,000• Annual Preventive Maintenance Cost = $1,000
• Option #2: • 40 hp radial fans with airfoil blades• Total installation cost = $105,000• Fan efficiency = 85%• Resultant annual energy cost = $30,000• Annual Preventive Maintenance Cost = $1,000
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STORY PROBLEM: FOUR NEW FANS
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A SIMPLE SYSTEM COST ANALYSIS
System Costs Option 1 Option 2
Installation Costs(occurs in Year 1) A
1. Preventative Maintenance (recurring annual cost) 1
2. Predictive Maintenance (recurring annual cost) 2
3. Energy(recurring annual cost) 3
4. Lost Production (recurring annual cost) 4
Annual Cost B = (1+2+3+4)
Cumulative Outlay end Year 1 =A+B
Cumulative Outlay end Year 2= A+B+B
$70,000
$1,000 $1,000
$105,000
$31,000$49,000
$119,000 $136,000
$168,000 $167,000
$48,000 $30,000
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$0
$50
$100
$150
$200
$250
$300
$350
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Cu
mu
lati
ve O
utl
ay (
Th
ou
san
ds)
Years
Life Cycle Costs
Option 1 Option 2
CASH FLOW - YEARS 1-5
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Life Time Costs
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$0
$200
$400
$600
$800
$1,000
$1,200
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Cu
mu
lati
ve O
utl
ay (
Th
ou
san
ds)
Years
Option 1 Option 2
CUMULATIVE CASH FLOW
Life Time Costs
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Cumulative Savings $325K
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Option 1 Radial fan
First cost
Energy
maintenance
Option 2 airfoil fan
First cost
Energy
maintenance
OVERALL SYSTEM COSTS OF OPTIONS
Option #2: Airfoil FanOption #1: Radial Fan
Lifetime Cost $725,000
Lifetime Cost $1,050,000
Energy
Initial Cost
Maintenance
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precast.org/education
GOOD MAINTENANCE SAVES COSTS
➢ Preventive
➢ Predictive
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PREVENTIVE MAINTENANCE
Strategies to keep a healthy machine in peak performance include:
• Lubricating bearings
• Replace filters
• Cleaning impellers and heat exchangers
• Aligning shaft and pulleys
• Visually inspecting machinery
• Balancing impeller
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Precast Show 2019
NPCA 8
precast.org/education
PREDICTIVE MAINTENANCE
Advanced diagnostic strategies that can avoid an impending breakdown:
• Infrared thermography of fan or motor bearings
• Check strength of wiring insulation
• Dynamic analysis of the integrity of a motor
44Normal Efficiency High Efficiency
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LOW-COST & NO-COST ACTIONS
• IR inspection electrical panels
• Vibration analysis of motors
• Oil analysis on compressors
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PREDICTIVE MAINTENANCE
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ENERGY SAVINGS ACTION PLANSteps to take to start saving!
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GROW SUPPORT
• Diverse Sustainability Team
• Demonstrate Quick Win Projects
• Gain C-Suite Support
• Share Successes!
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GET EDUCATED
• Energy Savings 101
• Demand Management
• Power Factor
• Lighting – Simulation & Calculation Exercises
• Compressed air
• HVAC
• Pumps & Motors
• Process Heating
• Internal Energy Auditor
• Sustainable Manufacturing
Engaging
Workshops
precast.org/education
APPLICATION-BASED TRAINING
Internal Energy Auditor Training
• Case studies
• Industry best practices
• Basic energy auditing tools
• Tricks of the trade
• Practice cost savings & ROI calculations
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Precast Show 2019
NPCA 9
precast.org/education
ENERGY ASSESSMENTS
Energy Audits• Level 1 ASHRAE
• Level 2 ASHRAE
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ENERGY ASSESSMENTS
Written reports include:
• Detailed calculations
• Evaluate numerous options
• Identify best ROI
• Rebates identified
• Prioritize improvements
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SYSTEMS APPROACH
ISO 50001- Energy Management Systems
ISO 14001-Environmental
Management Systems
Energy Star
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BEYOND ENERGYSustainability Goals
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SUSTAINABILITY SAVINGS
• Hidden energy costs
• PPE costs
• Labor costs
• Purchasing costs
• Waste hauling costs
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APPLICATION-BASED TRAINING
W.A.S.T.E. Stream Mapping (WSM) Tool
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Solids EnergyAirWater Toxicity (Chemicals)
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Precast Show 2019
NPCA 10
precast.org/education
W.A.S.T.E. STREAM MAPPING
Understand how things currently operate. Identify areas where there is waste. Quantify waste and determine source(s).
Apply 4Rs to the resources/wastes to design a Green approach.
Determine the Waste Stream(s) to be analyzed & improved.
Make the changes - this is the goal of mapping!
Screen the improvement options. Develop a detailed implementation plan to support improvement objectives (what, who, by when).
Waste Stream
Scope
“As Is” Waste StreamsEntire Process/
Detailed Operations
Implementation Plan
Implement Changes!
Improvement Areas & “To Be” Ideas
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Inp
uts
Raw MetalMachine FluidProcess H2OElectricityCompressed
Air
Welding RodsProcess H2OElectricity
AcidsDetergentProcess H2OElectricityAir
PaintThinnerNatural Gas
CompressedAir
FastenersElectricityCompressed
Air
Corrugated CardboardMetal BandsPlastic WrapSkidsTape
Pro
cess
Milling Welding Washing Painting Assembly Packaging
Ou
tpu
t W
aste
s Metal ScrapBroken ToolsWaste H2OExcessive Noise
ProductRejects
Spent RodsSlagHeatGreywaterFumesWeld Dust
Acid DetergentGreywater
Product Rejects
Acid DetergentHeatFumes
Product Rejects
Fastener Scrap
Metal Band Scraps
Plastic WrapDamaged
Skids
Water Air Solids Toxicity/Chemicals Energy
W.A.S.T.E. STREAM MAPPING
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Waste Stream Map
Suppliers
Injection Molding
Metal Forming
DryingPainting
Metal Plating Drying
Assembly
Packaging
Warehouse
Energy WasteMMBtu/
yr
Electricity kWh/yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Raw Materials lbs/yr
Plant Utilities
Comp Air/Chillers kWh/yr
Lighting kWh/yr
Boiler CuFt/Yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Water Gal/yr
Natural Gas CuFt/Yr
Raw Materials lbs/yr
Electricity kWh/yr Electricity kWh/yr Natural Gas CuFt/Yr
Electricity kWh/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Shipping
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
End User
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Electricity kWh/yr
Raw Materials lbs/yr Chemicals lbs/yr
Electricity kWh/yr
Raw Materials lbs/yr
Raw Materials lbs/yr
Electricity kWh/yrElectricity kWh/yr
Diesel Fuel Gal/yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Input
Process
Output
Raw Materials lbs/yr
Natural Gas CuFt/Yr
Natural Gas CuFt/Yr
Energy WasteMMBtu/
yr
Water Waste Gal/yr
Air Emissions lbs/yr
Solid Waste lbs/yr
Toxic Waste lbs/yr
Water Gal/yr
Electricity kWh/yr
Diesel Fuel Gal/yr
Chemicals lbs/yr
Chemicals lbs/yr
HVAC kWh/yr
Summary
Toy Stores
Electricity kWh/yr
Electricity kWh/yr
W.A.S.T.E. STREAM MAPPING
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EXAMPLE
• Can you create a WASTE Stream Map for simple activities in your daily life?
• Stopping at a gas station?
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Pu
ll u
p t
o p
um
p Verify fuel side, Stop car, Step out
Pre
p t
o p
um
p Swipe card, Select grade, Lift nozzle
Fuel Insert into gas
fill neck & squeeze trigger
Fin
ish
fu
elin
g Top off, Remove nozzle, Return to cradle, Install gas cap, Print receipt
Was
h w
ind
shie
ld Grab squeegee, Apply water to windshield, scrape off excess, Return to bucket
EXAMPLE
What are the steps in the process?
precast.org/education
Pu
ll u
p t
o p
um
p Verify fuel side, Stop car, Step out
Pre
p t
o p
um
p Swipe card, Select grade, Lift nozzle
Fuel Insert into gas
fill neck & squeeze trigger
Fin
ish
fuel
ing Top off,
Remove nozzle, Return to cradle, Install gas cap, Print receipt
Was
h w
ind
shie
ld Grab squeegee, Apply water to windshield, scrape off excess, Return to bucket
EXAMPLE
What are the Inputs & Outputs for each step?
Ou
tpu
ts Brake dust
Tailpipe emissions
Ou
tpu
ts Sweat?
Ou
tpu
ts Vapor emissions
Gasoline drips
Ou
tpu
ts Vapor emissions
Gasoline drips
Paper
Ou
tpu
ts Water drips
Water vapor
Solvent drips
End of life squeegee
Inp
uts Brake pads
Brake fluid
Gas in combustion
Inp
uts Labor
Inp
uts Gas
Inp
uts Paper
Inp
uts Water
Solvent
Rubber/Plastic
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Precast Show 2019
NPCA 11
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EXERCISE
(10 min.) Break into groups of 4-6
Pick an activity & create an Overall WASTE Stream Map within your group
• Showering• Brewing coffee• Making dinner• Driving to work• Playing golf• Helping with homework• Other???
precast.org/education
CASE STUDIES
• Cumulative W.S.M. Actual Impacts:
•
Energy
Audit
W.A.S.T.E.
Stream
Mapping
MTCO2e
Reduced
Company #1 $84,000 $44,035 2,869
Company #2 $20,827 $74,577 TBD
Company #3 $0 $1,214,814 41.2
Company #4 $10,756 0 0
TOTAL $115,583 $1,312,599 2,910.2
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CASE STUDY RESULTS
Cumulative W.S.M. Estimated Summary:
➢Energy Savings Opportunities: $332,000 Savings
➢W.A.S.T.E. Stream Opportunities: $514,300 Savings
➢Greenhouse Gas Emissions Reductions: 18,216 Tons CO2-Eq
•
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CASE STUDY #2
Automotive Seal Manufacturer
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CASE STUDY #2
• W.A.S.T.E. Stream Savings
• Issue with parts requiring rework after sitting, due to oil
• Changed from chlorinated paraffin drawing oil to water based oil to eliminate rework of parts that sit 2 weeks.
• Reduced oil usage by 10 barrels per day. Saving 90,000 gallons per year due to thinner viscosity.
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CASE STUDY #2
W.A.S.T.E. Stream Savings - MOP WATER
• High cost to ship oil-contaminated water from mopping
• In process of modifying process for mop waste water
• Explored switching soap to enable better oil separation
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CASE STUDY #2
W.A.S.T.E. Stream SAVINGS- MOP WATER
• Cost savings = $31,750 annually (plus $20,827 in energy savings).
• Recycling greywater reduces 87,000 gal. of water annually.
• Additional $15,000 in cost savings potential with greater dilution of wastewater treatment chemicals
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CASE STUDY #2
W.A.S.T.E. Stream Savings- FUTURE
• FUTURE- planning to implement Reverse Osmosis Reject Water recycling project.
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CASE STUDY #2
Assessment Summary:
W.A.S.T.E. Stream Opportunities
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CASE STUDY #3
Fabricator of Reusable Steel Racks for Automotive Parts
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CASE STUDY #3
Assessment Summary:
• Energy Savings Opportunities• Lighting
• Compressed Air
• HVAC
• Other – manufacturing tax incentive
• $6,200+ Annual Savings- 12% Reduction!
• GHG reduction of 42 MTCO2-eq per year
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CASE STUDY #3
W.A.S.T.E. Stream Opportunities
• Paid to send recyclable items to landfill
• Reduced tipping fees by starting to
recycle cardboard, plastic, etc.
• HDPE recycling generating
$3-5k in new revenue!
• Better policies reduced metal scrap by
20%• 7,000 lbs less metal purchased =
• Cost savings of $2,800 annually
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CASE STUDY #3
W.A.S.T.E. Stream Opportunities
• Significant hazardous waste generated by oil based paint
• Switching to water based paint
• Reduction in time required to comply with SQG regulations: 62 hours ($930)
• Eliminated VOC emissions from 14,400 gallons of oil based paint: 9,216 pounds
• Eliminated purchase and use of: 156 gallons of acetone & 70 gallons of xylene ($4,165)
• Reduction in hazardous waste generation: 5,400 pounds annually ($6,437)
• Cost savings: $27,500 annually
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CASE STUDY #3
W.A.S.T.E. Stream Opportunities
• 4 fork truck drivers moving pieces
constantly
• Owner sometimes operating fork
truck to help
• Changed plant layout to eliminate
fork trucks • Reduced combustion of Propane in
fork trucks: 12,173 lbs annually
• GHG emissions reduced by 16.2
Metric Tons of CO2eq every year!
• Improved safety with fewer lift trucks
operating, and less hazardous
materials and waste generation.
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CASE STUDY #3
W.A.S.T.E. Stream Opportunities
• Cost savings from propane,
fees, waiting time, &
repurposed labor = $106,797
Annually
• More efficient plant layout led
to increasing production and
$1Million in New Sales
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SUMMARY
• Cumulative ACTUAL Assessment Summary:
➢Energy Savings Opportunities: $104,827Savings
➢W.A.S.T.E. Stream Opportunities: $1,212,687 Savings
➢Greenhouse Gas Emissions Reductions: 2,910 Tons CO2e
•
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GOOD INVESTMENT
Sustainability Savings
=
Bottom Line Profits
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CONCLUSION
For more information, please contact:
Kelly Weger, RA, LEED AP Lead Project Manager - Sustainability
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NPCA 14
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INCREASE PROFITS AND COMPETITIVENESS
BY REDUCING ENERGY COSTS
Kelly Weger, RA, LEED AP, CEA
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