Initiating and Sustaining Your Energy Efficiency Program. Timothy Dantoin Senior Engineer September 10, 2013

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1 Initiating and Sustaining Your Energy Efficiency Program Timothy Dantoin Senior Engineer September 10, 2013

2 Today s Agenda Energy Efficiency in Perspective Consumption, Capacity & Uncertainty Energy Management System Typical vs. Best in Class ISO Practical & Strategic Homework for developing your Energy Program 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.

3 Energy in Perspective Projected Worldwide Consumption 500 OECD Non-OECD Quadrillion BTU 84 % 6x % Source: EIA International Energy Outlook ,000,000,000,000,000 3 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.

4 U.S. Coal Capacity Build Rate ~2.3 GW added in 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.

5 U.S. Coal Capacity - Net ~8.5 GW retired in 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.

6 Coal Capacity Build Rate Comparison China v U.S. China 55GW US 5GW 6 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.

7 Energy Competitiveness 60,000 50,000 40,000 30,000 20,000 10,000 - Energy Consumption (Btu) per Dollar of GDP 1 lb coal = 10,000 btu China India US Brazil Germany % Change (1988 to 2011) China 50% India 22% US 33% Brazil -20% Germany 34% China vs. US to to 1 Source: EIA International Energy Statistics 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.

8 Carbon Footprint 8 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.

9 Market Ready? Pepsi Co? United Kingdom United States 9 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.

10 Efficiency as a Resource cumulative avoided annually since 1980 Source: Alliance to Save Energy, August 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.

11 Energy Management Continual Improvement Approach Understand Energy Uses Generate EE Ideas Quantify Opportunities Communication Planning A purely technical focus goes only so far Select Projects Goals Provide Justification Motivation Awareness Gain Approval Support Implement Projects to Save $$ Performance Tracking 11 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.

12 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 Energy Management Practices Provide Manufacturing Advantage. Energy User News. 12 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.

13 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 in 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.

14 Common ISO Technical Standards Shipping Containers ISO 6346 Film Speed ISO 9848 Credit Cards ISO 7810 Fastners ISO 2 14 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.

15 Common ISO Management Standards Quality ISO 9001 Customer Satisfaction ISO Environment ISO Food Safety ISO Social Responsibility ISO Information Security ISO Supply Chain Security ISO Risk Management ISO Energy Management ISO June 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.

16 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 16 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.

17 ISO 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 17 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.

18 ISO 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. 18 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.

19 ISO 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 19 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.

20 ISO & Energy Management Top Management o Approve an energy policy o Appoint a management representative o Empower an energy team Energy Management Representative o Ensure implementation of the EnMS o Report to top management on energy performance Training & Awareness o Ensure that anyone impacting SEUs is competent Management Review o At planned intervals top management shall review the EnMS 20 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.

21 ISO & Energy Performance 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 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 Identify & monitoring indicators of performance Establish objectives, targets and action plans 21 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.

22 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) 22 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.

23 The Ideal Meets Reality in Theory in Practice Management Commitment Management Concern Energy Champion Energy Policy Energy Team Measure & Monitor Report & Communicate Set Energy Savings Goal Implement Projects Another Hat for Someone Nice Words No Teeth Another Meeting!! No Payback on Sub-Meters Monthly Actual vs. Budget Based on What? Competition for $$ 23 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.

24 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 24 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.

25 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 25 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.

26 Understand Energy - Facility Profile Natural Gas Energy in Business Context Propane Total Btu s No.2 Oil Electricity 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 Operating Costs Energy as % Oper. Costs Total Facility Costs Energy as % TF Costs Annual Profits Energy as % of Profits % Increase in Profits with 5% Reduction in Energy Costs 2006 (Annualized) 408,858 $ $ $5.29 $ (Annualized) $2,164,782 $15,000, % $33,500, % $3,450, % 3.14% 26 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.

27 Understand Energy - Equipment Profile Estimating Energy Use Electrical MMBtu Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other 27 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.

28 Finding Opportunity - ECMs Finding Opportunities Electrical MMBtu e.g. Free Cooling Project Save 2.5% Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other 28 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.

29 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 29 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.

30 Prioritizing (right side) 30 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.

31 Prioritizing (left side) 31 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.

32 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. 32 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.

33 Energy Efficiency vs. Energy Intensity Efficiency amount of output per unit of energy Intensity amount of energy per unit output 33 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.

34 Energy Use Drivers Weather Square feet Production volume Building occupancy 34 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.

35 EnPI Simple Regression Total Energy Use y = mx + b R 2 = correlation coefficient m = energy per variable unit b = base load Variable Load Base Load Production Level or Heating D.D. 35 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.

36 EnPI Example kwh 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 = x ,000 R 2 = , , , , , , , , ,000 1,000,000 1,200,000 1,400,000 Extrusion Output (Lbs) 36 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.

37 EnPI Reporting The Results 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. 37 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.

38 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 38 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.

39 Gap Analysis U.S. EPA s Energy Star Program Provides program and facility level assessments U.S. Dept of Energy SEN Leaders Tool Provides assessment against ISO DOE eguide for ISO designed for step-by-step implementation of ISO 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.

40 Management Plan 40 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.

41 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 41 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.

42 Strategic Energy Management??? ISO / 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 42 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.

43 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 43 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.

44 Effective Team Meetings Meet frequently for no more than 1 hour Set and keep a fixed day and time (e.g. 2 nd 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 44 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.

45 Team Meeting Minutes 45 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.

46 Project Savings Calculations 46 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.

47 Energy Efficiency in Perspective Global in Scope The Bottom Line Your Focus 47 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.

48 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? 48 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.

49 Contact Information Tim Dantoin, Senior Engineer Science Applications International Corp Cell: 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.

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