Energy Reduction and Sustainability through

Total Energy Management (TEM)

Santiago Archila
sarchila@husky.ca

Sean Golzarian
sgolzarian@husky.ca

November 2009
Agenda

• Energy reduction and sustainability through

implementation of “Total Energy Management”
program
• Assisting our injection molders to achieve
sustainability through “TEM” program

2
Manufacturing Advisory Services

Provide operational consulting, design and

project management services to support our
existing and prospective customers
1. Consulting and Advisory Services
• Comprehensive plant & operational assessment
• Operational performance improvement & implementation
• Facility planning and optimization
• Total Energy Management Program
2. Building and Infrastructure Planning and Design
3. Project Management and Turnkey services
3
 83% of total emissions is CO2 related

1900 1910 1920 1930 1940 1950 1960 1980 1990 2000 2008

forecasted global CO2 is expected to

increase by 36% over 1990 levels by 2010
40% of CO2 emissions is due to
producing electricity

4
Source: US Energy Information Administration

CO2 Emission due to Electricity Production

Carbon Cap-and-Trade

United States:
• New carbon cap-and-trade program calls for 14% below 2005 levels
by 2020 and 83% below by 2050
• Energy intensive manufacturers would be forced to identify energy
reduction opportunities (compliant with ISO 50001)

Canada:
• Reduce greenhouse gas emissions by 20% from 2006 levels by 2020
• In Ontario, 6,300 MW reduction in peak demand by 2025 (most
ambitious target in North America)

Legislated Actions to Reduce Carbon Footprint

Costs Breakdown in Typical Molding Plants

• “Energy” could be the same or more than “Direct labor” *

• Approximately 70% of cost savings are focused on direct
labor

Other controllable Building &

expenses
Occupancy Infrastructure
2%
4% 3% Maitenance
Labor
Energy Depreciation 1%
6% Energy 3%
5%
5%
Maintenance
2%

Payroll benefits Primary Equipment

7%
10%

Material
Indirect labor 59%
9%
Material
Direct labor 78%
6%

- Consumer manufacturer in US - Bottle manufacturer in US

6

* Costs vary based on markets, number of machines, geographical location, etc..

Two Approaches to Reduce Cost

1. Reduce the cost of energy used through acquisition to

reduce the $/ kWh
• Numerous consulting firms provide “Negotiation and risk
mitigation” services
• Alternative Energy generation

2. Reduce the amount of energy used (KW/lb):

• Certain utility companies offer programs that provide molders
rebates towards the purchase and installation of qualified
equipment that improves their facility’s energy efficiency

The two approaches alone without an “Energy Management

Program” is not sustainable 7
Total Energy Management

• Implementation of policies and procedures to

measure, set targets, and monitor energy
related KPIs to continuously reduce and
sustain energy consumption

8
Magnitude of Savings

• Energy cost can be reduced by up to 30% for most plastics

processing plants
• Savings can be achieved through a combination of No-cost,
Low-cost, and Investment actions

30% Energy cost savings

Organizational / Capital
Maintenance
Management Investment
9
Husky Total Energy Management
Program
1- Estimate and verify site energy profile
2- Understand your “Base” and “Process” loads
3- Understand when and how much energy is used
4- Monitoring and Targeting
– Understand Where energy is used
5 - Data analysis and reporting energy KPIs (Energy dashboard) by
department
6 - Identify, Quantify, and Prioritize opportunities
7 - Eliminate waste and reduce consumption through
Implementation of selected energy reduction projects
8 - Conduct internal and external benchmarking
9 - Repeat the steps – Continuous improvement
10
 1- Estimate and Verify Site Energy Profile

• Estimated site energy profile based on audited equipment

• Verify estimated energy profile through actual on-site
measurements

Estimated consumption break down

Compressed air Feed Systems Measured consumption break down
5.8% 1.7% Cranes
Cranes
0.1% Feed Systems
Compressed air 0.1%
Plant Lighting 1.6%
Printers 9.6% 8.7% Plant Lighting
4.2% Printers 8.9%
4.4%

Process Water system

16.9%
Process Water system
Wrapping Machines 16.5%
Injection Molding
0.0%
Machine Injection Molding
56.1% Wrapping Machines Machine
Handle Machines
0.0% 51.5%
1.3% Handle Machines
Film Extruder 1.3% Film Extruder
2.1% Thermoformer 4.5%
Thermoformer
2.3%
2.5%

11
2 - Identify Base & Process Loads

• Energy has variable and fixed costs and both can be affected
• Performance Characteristic Line (PCL) provides an operational signature
of the plant that is closely related to the way the plant management runs
the plant
800,000

700,000

600,000
Energy usage (KWh)

500,000

400,000

300,000

200,000

100,000

-
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
12
Production volume (Kg or Lb)
 800,000

700,000

600,000
Energy usage (KWh)

500,000

400,000

300,000

200,000

100,000 Base load

-
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Production volume (Kg or Lb)

• Base load is effectively your “Energy overhead” and is the energy

consumption with No production output
• Base loads are typically 10% to 40% of the average total load . The less the
better
• Base loads energy usage reduction are generally easy to make, low in cost,
and have rapid payback (low hanging fruits)
13

Performance Characteristic Line (PCL)

 800,000

700,000 R2 = 0.96
600,000
Energy usage (KWh)

500,000

400,000

300,000
Slope = 1.57

200,000

100,000
Base load
-
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Production volume (Kg or Lb)

• Slope of the line indicates the average plant process load (Kwh/ Kg or Lb).
The less the better
• Plant process loads are typically in the region of 0.6 to 1.6 Kwh/Kg (0.36 to
0.72 KWh/ Lb)
• Correlation coefficient (R2) indicates linearity between energy usage and
production volume
– High R2 (low scatter) means good correlation between energy usage and 14
production volume

Performance Characteristic Line (PCL)

3 – Understand “When” and “How much”
Average PF of 0.84
Goal to be above 0.9

Peak at 1,700KW

Base load at 300KW

(25% of average load)
Goal to be @ 10% of average load

15
4 – Monitoring & Targeting - Understand “Where”
• Monitoring & Targeting - Sub-metering to understand Where energy is
used
– Husky’s installed three main meters and fifteen sub-meters in one building

16
5 – Data Analysis and Energy KPIs
– SPC analysis for energy usage
– Energy profile
– Cost allocation and budgeting
– Forecasting energy consumption per department
– Variance analysis (Deviation between actual and predicted
energy)

40,000
400000
30,000 Target CUSUM
D e v ia tio n fro m p re d ic te d (K W h )

350000 Original CUSUM

20,000 300000

10,000 250000

CUSUM (KWh)
200000
0
150000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
-10,000 100000
50000
-20,000
0
-30,000 -50000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

-40,000 -100000 17
Month Month
Energy on Management Agenda

Reporting energy KPIs (Energy dashboard) by department

– Electrical cost as % of production cost
– Monthly deviation from predicted and target energy usage
– Cumulative deviation from predicted and target energy usage
– Electricity cost and production volume by month
– Status of energy reduction projects

Monthly deviation from Cum. deviation from Electricity cost and

Electrical cost as % of
predicted and target predicted and target production volume by
production cost
energy usage energy usage month
18
Husky Total Energy Management
Program
1- Estimate and verify site energy profile
2- Understand your “Base” and “Process” loads
3- Understand when and how much energy is used
4- Monitoring and Targeting
– Understand Where energy is used
5 - Data analysis and reporting energy KPIs (Energy dashboard) by
department
6 - Identify, Quantify, and Prioritize opportunities
7 - Eliminate waste and reduce consumption through
Implementation of selected energy reduction projects
8 - Conduct internal and external benchmarking
9 - Repeat the steps – Continuous improvement
19
Typical Part Cost Break Down

ENERGY

Air compressors
Others
HVAC 6%
1%
8%
Lighting Infrastructure
3% Labour
2% 2%
Energy Maintenance
Mold cooling
12% 3% 3%
to 5% 2%
Machines
50%
Equipment
Dryers 5%
20%

Resin
86%
20
 Air compressors
Others
HVAC 6%
• Typically every increase in leaving 1oF Lighting
8%
1%

water temperature from chillers results 3%

to 1% to 1.5% reduction in energy Mold cooling

12%
Machines
50%

Dryers
20%

20.00

Screw
% increase in Chillers' COP

15.00

Centrifugal

10.00

Reciprocating

5.00 Absorption

0.00
40 41 42 43 44 45 46 47 48 49 50 51
21
Leaving chilled water temperature (F)

Mold Cooling - Chiller Types

 22

Free Cooling
 Effect of Chilled Water Temperature on free Cooling:
PET mold, 50oF vs. 43oF LWT:

• 15% of the year with 40oF (4.5C) (including dry cooler and heat exchanger approach)
• 4% of the year with 33oF (0.5C) (including dry cooler and heat exchanger approach)

• Estimated savings around $40k / year vs. $11K / year

Temperature vs. Time - Middlesex UK
25

15% of the year is colder than 4.5°C,

compared to 4.26% of the year
20 colder than 0.5°C
Temperature (degC)

15

10

5 40F

33F
0
11/14/2007 1/3/2008 2/22/2008 4/12/2008 6/1/2008 7/21/2008 9/9/2008 10/29/2008 12/18/2008 23
2/6/2009
Date

Free Cooling – Case Study – Middlesex, UK

 Effect of Chilled Water Temperature on mold dehumidification:
PET mold, 50oF vs. 43oF LWT:

• 72% of the year dew point is less than 50oF

• 42% of the year dew point is less than 43oF

Dew Point vs. Time - Middlesex UK

Date
11/14/2007 1/3/2008 2/22/2008 4/12/2008 6/1/2008 7/21/2008 9/9/2008 10/29/2008 12/18/2008 2/6/2009
20
72% of the year the dew point is less
than 10°C, compared to 42% of the
15 year below 6°C
Temperature (degC)

10 50F

43F
5

-5

24
-10

Dehumidification – Case Study - Middlesex, UK

Turbocor – Micro Centrifugal Compressors

• New compressor technology

• Oil-free, variable speed drive compressor
– No oil management hardware, controls or downtime costs
– Improved heat transfer efficiency
• Uses centrifugal compression technology, previously limited
to large chillers 2,000KW + (250 Ton+)
– COP (KWth/ KWe) of 6 to 10 or (0.55 kwh/Ton).
Better energy consumption than scroll compressors
– Similar capital costs to a regular air cooled chiller

• Quiet operation
– 70dBA sound with virtually no vibration
• Compact
– 50% less footprint and 1/4 to 1/5 the weight of traditional compressors 25
Machine Cooling Options

Cooling Towers Dry Coolers

• Contamination in water • Clean water to process

• Scale and oxidation in • No scale or corrosion
pipes • Minimal maintenance
• High water and chemical • Reduced energy
consumption consumption
• Cost of water disposal • No water disposal
• No water treatment
chemical consumption

26
1. Adiabatic Cooling – Maintains ability to
deliver cool water even in HOT ambient
conditions with minimal water consumption,
little maintenance.
2. Self-Draining - Freeze protection without
requirement for Antifreeze/Glycols. Works in
all climates.
3. DC Variable Speed Fans – Extremely low
energy consumption
4. Less than 20 times less water than tower

kW / fan 2.00
1.50
1.00
0.50
-
0 20 40 60
OUT DOOR T E M P . ( C )
80 100 27

Dry Coolers
 28

Cascading Use of Energy

 HVAC Air
Others
8% compressors
1%
6%
Lighting
3%

Mold cooling Machines

12% 50%

Dryers
20%

1. Traditional systems
– Roof top DX units
– Central chillers and air handling units
2. Displacement ventilation
29

Air Conditioning
Displacement 879 315 26% less
Ventilation
Up to 26% less capital cost
Traditional 1,194
Ventilation

0 200 400 600 800 1,000 1,200 1,400

Cooling Size (kW)

Displacement 1,154 1,118 49% less

Ventilation

Traditional
Up to 49% less operational cost Ventilation
2,272

0 500 1,000 1,500 2,000 2,500

C hiller Thermal Energy Use / Year (M W H/Yr)

30

Traditional air conditioning Displacement Ventilation

Air Conditioning
 Air
compressors Others
HVAC 6% 1%
8%
Lighting
3%

• Variable throughput feature Mold cooling

12%
Machines
50%

– Controlled residence time Dryers

20%
– Optimized air flow
• Energy recovery system
– Up to 25% of the required
temperature rise for free
• Energy efficient
– < 0.08kWh/kg all electric

2200Lb/hr Traditional New Estimated

(kWh/Lb) (kWh/Lb) Savings

Energy 0.063 0.04 $28,000/

Year
31
$0.07/kWh , 8000hrs/yr

Advanced Technology Resin Dryer

 Air compressors
6%

HVAC Others

• Compressors are only 5-15% Lighting 8% 1%

3%

efficient Mold cooling

12%
Machines

• Compressed air is expensive energy Dryers

50%

– At point of use compressed air costs 10 20%

times more than equivalent quantity of

electrical power
• Most of the cost of a compressor is
in the energy it uses
Maintenance, 10%

Capital cost, 15%

Energy cost, 75% 32

Compressed Air
Operating Conditions Influence
Energy Costs
• Part load operation
– 40–80% of full kW at part load

• System pressure
– each 5psi = up to 5% more power

• Air inlet temperature

– each 7oF lower = 1% more air

• Pipe sizing
– Each 5psi drop = 2% more energy

• Leaks commonly constitute 25% of total compressed air use

Size CFM HP $/Yr
33
1/4” 104 26 $15,300

One 1/4" leak is equal to 300 60-watt lamps!

 Air compressors
HVAC 6%
Others
8%
Lighting 1%
3%

Machines
Mold cooling 50%
12%
Dryers
20%

Fluoresce T5 (0.2 KW) Metal Halide (0.4 KW)

Functioning MH Dirty MH 80% burnt MH Burnt MH

Consumes 400W Consumes 400W Consumes 400W Consumes 60W
Light level: 400 LUX Light level: 150 LUX Light level: 100 LUX Light level: 0 LUX

34

Lighting
 Air compressors
HVAC 6%
Others
8%
Lighting 1%
3%

Mold cooling
12%

Machines
Dryers 50%
20%

Base Line Exit Temperature Faster Cycle Exit Temperature35

Effect of Cycle Time on Energy

Effect of Cycle Time on Energy

• 6% overall reduction in cycle times and energy consumption (KW/ Kg)

Cycle Part Number of Machine

Measured Power Factor
Equipment Description Time Weight Parts per Process Load
Power (kW) 480V
(sec) (g) Cycle (kW/kgHr)

Before Husky-HL160RS55/50 30.440 0.76 13.4 174 1 0.651

After Husky-HL160RS55/50 30.811 0.76 12.6 174 1 0.613

Percent improvement 6% 6%
36
Power Conditioning

Corrects power quality problems:

• Balances voltage across all three phases
• Balances current across all three phases
• Decrease voltage fluctuations
• Mitigates harmonics
• Corrects power factor
• Suppresses surges and transient to reduce
the chance of equipment damage
• Protects equipment from brownouts (option)
• Protects equipment from intermittent supply
failure
37
Examples of Contributors to Base Load

• Thermolators
• Raising chilled water above ambient wet bulb temperature
• Chillers
• Un-optimized water temperature
• Air compressors
• Leakage
• A/C
• Setting temperature too low
• Leaving doors open
• Grinders
38
Action Plan

• Start with auditing your plant

– Most utility providers offer financial incentives to cover
portions or all of the audit cost
– Some utility providers offer programs that provide
rebates towards the purchase and installation of
qualified equipment that improves their facility’s energy
efficiency
• Implement an “Energy Management Program”
• Husky’s “Manufacturing Advisory Services” team
can assist you in developing and implementing a
TEM program for your facility 39
Contacts

• Santiago Archila,
– sarchila@husky.ca
– 905-951-5000, Ext. 3810

• Sean Golzarian,
– sgolzarian@husky.ca
– 905-951-5000, Ext. 3550

• Husky website: www.husky.ca

40
Energy Reduction and Sustainability through
Total Energy Management (TEM)

Santiago Archila
sarchila@husky.ca

Sean Golzarian
sgolzarian@husky.ca

November 2009