Initiating an Energy Management Program

Timothy Dantoin Senior Engineer July 19, 2011

Energize Missouri Industry Energy Efficiency Forum

Todays Agenda

Energy Efficiency in Perspective Practical Energy Management PEM Principles & Tools Homework.yes, Homework

Energy | Environment 2

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Energy in Perspective
Projected Worldwide Consumption
500 450 400 350 300 250 200 245 249 2015 2020 2025 2030 2035

OECD
Quadrillion BTU 84 %

Non-OECD
458

6x
14 %
280

2007

Source: EIA International Energy Outlook 2010

1,000,000,000,000,000
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Energy | Environment 3

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Cost of New Coal Power Plants

New pulverized coal capital costs
Big Stone II Revised (SD) Springfield (IL) Oak Creek (WI) Cliffside--Duke Revised (NC) Big Stone II Original (SD) Black & Veatch (2006) Council Bluffs (IA) Weston 4 (WI) EPA (2003) Prairie State (IL) EPRI (2004) EIA (AEO 2006) Cliffside--Duke Original (NC) 0
2,254

603

2,500 2,083 1,875

1,667 1,680

333 100

1,519 1,504 1,500 1,467

1,400 1,280

Generation Transmission Total

1,250 500 1,000 1,500 $/kW 2,000 2,500 3,000

Source: American Council for Energy Efficient Economy (ACEEE)

Energy | Environment 4

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Carbon Footprint

Energy | Environment 5

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The Market Place

Pepsi Co

United Kingdom
Energy | Environment 6

United States
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Efficiency as a Resource

Source: Alliance to Save Energy, August 2010

Energy | Environment 7 | National Security | Health | Critical Infrastructure

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Energy Management
Continual Improvement Approach
Understand Energy Uses Generate EE Ideas Goals Awareness Support Performance Tracking Gain Approval Implement Projects to Save $$ Quantify Opportunities Select Projects Provide Justification Motivation Communication Planning
A purely technical focus goes only so far

Energy | Environment 8

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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.
Energy | Environment 9 | National Security | Health | Critical Infrastructure

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Barriers to Effective Programs

Other Priorities (quality, safety, production) Energy Taken for Granted (It worksdont 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)

Energy | Environment 10

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The Ideal Meets Reality

in Theory Management Commitment Energy Champion Energy Policy Energy Team Measure & Monitor Set Energy Savings Goal Implement Projects
Energy | Environment 11

in Practice Management Concern Another Hat for Someone Nice Words No Teeth Another &*#@ Meeting ! ! No Payback on Sub-Meters Based on What ? No Support

Report & Communicate Monthly Actual vs. Budget

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Practical Energy Management

A continual improvement strategy compatible with Six-Sigma, Lean Mfg, ISO 14001, ISO 50001, etc. Turnkey package of savings calculators, organizing tools & management strategies Integrates management & technical aspects of energy management into existing business practices

Energy | Environment 12

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PEM Layout

Management Plan Facility Profile

Project Prioritization Project Management

Energy Use Profile Performance Indicators Best Practices Communication & Reporting

Energy | Environment 13

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Getting Started

Management Plan Project Prioritization

An organized approach to continually improving your energy management program A systematic method for tracking and ranking individual projects and summarizing overall energy savings and environmental impacts

Energy | Environment 14

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Management Plan = Gap Analysis

Energy | Environment 15

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Gap Analysis Tools

U.S. EPAs 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 (March 2011)

Energy | Environment 16

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Facility Profile
Energy in Business Context Total Btus
Key Performance Indicators Lbs Resin Electric $ p Lbs Resin Electric MMBtu p Lbs Resin Gas $ p Lbs Resin Gas MMBtu p Lbs Resin Tot Energy $ p Lbs Resin Water $ p Lbs Resin Business Indicators Total Energy Cost 2006 (Annualized) 408,858 $2.76 0.180 $2.53 0.339 $5.29 $0.52 2006 (Annualized) $2,164,782 $15,000,000 14.43% $33,500,000 6.46% $3,450,000 62.75% 3.14%

Natural Gas

No.2 Oil

Operating Costs Energy as % Oper. Costs Total Facility Costs Energy as % TF Costs Annual Profits

Propane
Energy | Environment 17

Electricity

Energy as % of Profits % Increase in Profits with 5% Reduction in Energy Costs

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Equipment Profile
Estimating Energy Use
Electrical MMBtu

Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other

Energy | Environment | National Security | Health | Critical Infrastructure

18

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Best Practices
Finding Opportunities
Electrical MMBtu

e.g. Free Cooling Project Save 2.5%

Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other

Energy | Environment 19 | National Security | Health | Critical Infrastructure
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Best Practices Calc Sheets

Comfort Heating Comfort Cooling Compressed Air Dehumidification Fans Hydraulic Lighting Motors
Energy | Environment

Process Cooling Process Heating Pumps Refrigeration Steam/Hot Water Vacuum Ventilation Wastewater treatment

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20

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Project Prioritization Tool

(right side)

Energy | Environment 21

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Project Prioritization Tool

(left side)

Energy | Environment 22

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Energy Performance Indicators

y = mx + b R2 = correlation coefficient

m = energy per variable unit b = base load Total Energy Use Base Load Variable Load

Production Level or Heating D.D.

Energy | Environment 23 | National Security | Health | Critical Infrastructure
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EnPI Example
y = 0.3257x + 258748
kWh

750,000 700,000 650,000 600,000 550,000 500,000 450,000 400,000 600,000

R2 = 0.8449

800,000

1,000,000

1,200,000

1,400,000

Extrusion Output (Lbs)

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
Energy | Environment 24 | National Security | Health | Critical Infrastructure
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Communication & Reporting

Engage senior decision-makers Create energy awareness among employees Generate support for energy efforts Stimulate ideas for energy efficiency projects Ultimately Goaldemonstrate your effectiveness

Energy | Environment 25

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Practical Energy Management

??? ISO 50001 / SEP ???

Senior Management
change concern to commitment

Management Plan
turns gap analysis into specific actions for improvement

Prioritization Tool
quantify, track and report on energy saving opportunities

Effective Energy Team

It all starts here
Energy | Environment 26 | National Security | Health | Critical Infrastructure
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Characteristics of Effective Teams

Develop clear 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

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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. dont 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

Energy | Environment 28

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Team Meeting Minutes

Energy | Environment 29

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Project Savings Calculations

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PEM - Keys to Success

Senior Management Concern Commitment

Recognize realitys limitations (time & money) Efficient meetings make for Effective Teams Track & Communicate re: Energy Activities

Energy | Environment 31

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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 ? Develop a EnPI for your company
Energy | Environment 32 | National Security | Health | Critical Infrastructure

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Delivering PEM
Half-day Workshop 50 sessions since 2003 Over 1,000 participants Hands-on implementation series Three sessions over 4 month period Provides implementation coaching On-site training customized to jump-start or enhance corporate energy management efforts Ongoing energy management support and energy team facilitation
Energy | Environment 33 | National Security | Health | Critical Infrastructure
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PEM as Utility Customer Service

Provides customers with a methodical, realistic framework for energy (and GHG) management. An active energy team improves customers energy efficiency performance. Utility account manager participation in energy team enhances customer relationship. Better relationship improves customer awareness and understanding of utility pricing and programs.

Energy | Environment 34

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Satisfied PEM Users

We are light years ahead of where we would be without PEM. With limited staff time, it gives us the vision and capability to manage a comprehensive energy program, not just pick low hanging fruit. - Corporate Services Coordinator PEM has certainly opened doors with my customers. It allows me to be a proactive resource rather than just a messenger of the negative stuff. - Utility Account Manager

Energy | Environment 35

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Contact Information

Tim Dantoin, Senior Engineer Science Applications International Corp Cell: 920-366-3744 Email: dantoint@saic.com

Energy | Environment 36

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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.