EE Methodology - Presentation

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1 Energy Efficiency Methodology Energizing Cleaner Production Management Course

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2 Training Agenda: Company Energy Efficiency methodology Introduction to the methodology Methodology step by step Purpose, outputs and tasks Company examples Worksheets Energy focus

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3 Introduction The “Company Energy Efficiency Methodology” (Methodology) has been developed for Asian industrial companies to help them improve energy efficiency through Cleaner Production.

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4 Benefits from Energy Efficiency Cost reductions through efficient use of energy Reduced exposure to fluctuating energy supply and prices and blackouts Increase in productivity and product quality Improved reputation with customers and society through environmental protection Improved employee motivation, health and safety Compliance with legislation and ISO 14001 targets Increased profits and shareholder value

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5 The Methodology Is tailored to energy-intensive industrial companies in developing Asian countries Focuses on energy, which is less visible than waste, water and raw materials Explains what should be done in theory how it is done in practice in different companies

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6 The Cleaner Production (CP) strategy: Prevention of waste Systematic approach Integrated into business processes Aimed at continuous improvement Existing CP and energy audit methodologies Real practice experience from energy assessments carried out as part of the GERIAP project in more than 40 Asian industrial companies The Methodology is based on:

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7 6-Step Cleaner Production Approach

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8 Information under each Step

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9 Step 1: Planning and Organization Purpose: Obtain top management commitment Plan and organize an energy assessment Output: Written proposal with selected steps and tasks to improve the company’s energy efficiency Approved by top management.

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10 Step 1: Continued Time: 3 – 6 days Tasks include: Task 1a: Meeting with top management (1-2 hours) Task 1b: Form a Team and inform staff (0.5-1 day) Task 1c: Pre-assessment to collect general information (1-3 days) Task 1d: Select focus areas (0.5-1 day) Task 1e: Prepare assessment proposal for top management approval (2-3 days)

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11 Task 1a: Meeting with Top Management (1 – 2 hours) Purpose of first meeting: Top management: Get commitment of company middle managers, staff and/or external facilitators to carry out a pre-assessment Write a proposal for a detailed energy assessment Company middle manager or external facilitator: Get top management’s approval for a pre-assessment Write a proposal for a detailed energy assessment

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12 Task 1a: Meeting with Top Management (continued) Company Energy Efficiency methodology Discuss at this 1-2 hour first meeting: If/Why top management is interested in energy efficiency Energy areas of interest or concern Where the company is now Other factors of influence on the assessment Time needed for pre-assessment and writing proposal for feasible options Team composition and management representative How staff will be informed to ensure cooperation

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13 Worksheet 1: Reasons for Energy Efficiency Company Energy Efficiency methodology

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14 Worksheet 2: Energy Management Matrix Company Energy Efficiency methodology

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15 Worksheet 3: Factors influencing the energy assessment approach Company Energy Efficiency methodology

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16 Task 1b: Form a Team and inform staff (0.5 – 1 day) Company Energy Efficiency methodology The Team should consist of: Someone who knows the main energy uses and environmental impacts, e.g. the Environment Manager or Energy Manager Someone who knows the production process, e.g. the Head of Production Someone with access to general company information and energy cost data, e.g. the company’s Accountant or Finance Manager A communications or training person A top management representative

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17 Task 1b: Form a Team and inform staff (cont.) Company Energy Efficiency methodology Team should have Knowledge of energy equipment Energy intensive production processes Access to energy data Typical positions Utilities Manager Energy Manager Maintenance Engineer Energy Focus

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18 Worksheet 4: Team Members and Roles Company Energy Efficiency methodology

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19 Task 1c: Pre-assessment to collect general information (1 – 3 days) Company Energy Efficiency methodology Information collected should include: General company details Organization chart General production flow chart Production data for the past 3 years Energy, resource consumption data and costs for the past 3 years Inventory of major equipment Overview of information collected for each process step / department Company greenhouse gas (GHG’s) emissions

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20 Task 1c: Pre-assessment to collect general information (cont.) Company Energy Efficiency methodology Include auxiliary sections in the general production flow chart Water treatment Boiler and steam systems Compressed air systems Air conditioning / refrigeration Ventilation Energy Focus

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21 Task 1c: Pre-assessment to collect general information (cont.) Company Energy Efficiency methodology Production and resource data should also include Fuel consumption rates and costs Electricity consumption and costs Fuel mix Electricity bills from utility Energy Focus

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22 Task 1c: Pre-assessment to collect general information (cont.) Company Energy Efficiency methodology Inventory of major equipment Name of equipment: motor Numbers: 50 Capacity: 1 with 100 HP, 39 with >25 HP, 10 with <10 HP Type: AC motor Supplier: General Electric Rated parameters: e.g. load Operating parameters (if available) Energy Focus

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23 Worksheet 6: General Production Flow Chart Company Energy Efficiency methodology

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24 Worksheet 7: Production and Resource Data Company Energy Efficiency methodology

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25 Worksheet 8: Inventory of Major Equipment Company Energy Efficiency methodology

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26 Task 1d: Select focus areas (0.5 – 1 day) Company Energy Efficiency methodology A focus area can be: Entire plant A department, production line, or process step Specific (energy) equipment or resources The process for selecting focus areas: Identify possible focus areas Determine selection criteria Rate each focus areas High, Medium, Low for each criteria

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27 Company Energy Efficiency methodology Different focus areas can be selected when energy is considered An auxiliary system instead of a production step - Steam system - Compressed air Specific major energy equipment - Boiler house (not just the boiler!) Energy Focus Task 1d: Select focus areas (cont.)

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28 Worksheet 10: Selection of Focus Areas Company Energy Efficiency methodology

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29 Task 1e: Prepare assessment proposal for top management approval (2 – 3 days) Company Energy Efficiency methodology It is important to obtain top management commitment The assessment proposal should include: Objective, scope (i.e. focus areas) Outputs Approach (step 2, 3 and 4 of the Methodology) Team Time & budget

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30 Step 2: Assessment Company Energy Efficiency methodology Purpose: assess where energy is lost/wasted for the focus area(s) Output: overview of how much energy is lost and how much money this costs for the focus area(s) Then it becomes easier to identify options to improve energy efficiency in step 3!

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31 Step 2: Assessment Company Energy Efficiency methodology Time: minimum 3 days Tasks include: Task 2a: Staff meeting and training (>0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (>2 hours per focus area) Task 2c: Walkthrough of focus areas (> 0.5 day per focus area) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available) Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area)

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32 Task 2a: Staff meeting and training Company Energy Efficiency methodology Staff meeting (0.5 day) Inform staff about assessment and their roles Get their support Staff training Importance of energy efficiency How to carry out an assessment Energy equipment & monitoring instruments Financing, GHG Indicator, other… Information: Posters, newsletters, meetings

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33 Task 2b: Prepare focus area flow charts (>2 hours per focus area) Company Energy Efficiency methodology Flow chart for each focus area Different steps of the focus area Most important inputs (resources) for each step Most important outputs for each step Intermediate and final products between the steps

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34 Task 2b: Prepare focus area flow charts (cont.) Company Energy Efficiency methodology Different types of focus areas require different types of charts: Production step: process flow diagram Auxiliary systems: layout chart for steam or compressed air distribution system Specific major equipment: major equipment and all auxiliary equipment Energy Focus

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35 Task 2c: Walkthrough of focus areas (>0.5 day per focus area) Company Energy Efficiency methodology Purpose of the walkthrough(s) Better understand the focus area Get feedback from production staff about problems… Write down visible losses of energy and materials Obtain information about quantities and costs

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36 Worksheet 14: Walkthrough observations Company Energy Efficiency methodology

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37 Task 2d: Quantify inputs and outputs and costs to establish a baseline Company Energy Efficiency methodology Time required depends on information available Why a baseline? Measure improvements after implementing options Management only convinced to continue if you can show savings Collect the following information: Quantities (e.g. tons of coal per day) Costs (e.g. $ per ton of coal) Other characteristics (e.g. temperature of water going in and out of the boiler, pressure)

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38 Worksheet 13: Process flow chart, inputs/output, energy balance Company Energy Efficiency methodology

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39 Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Company Energy Efficiency methodology Examples of material-related parameters for the boiler house Fuel and electricity Water Blow down Ash Steam produced Condensate recovered Energy Focus

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40 Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Company Energy Efficiency methodology Examples of energy-related parameters for the boiler house Pressure Temperature Flue gas composition Draft Radiation Note: specific monitoring equipment may be needed Energy Focus

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41 Company Energy Efficiency methodology Energy Focus

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42 Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area) Company Energy Efficiency methodology Try to “balance” inputs and outputs (what goes into a process must come out!) Identify “losses”: energy, products, materials Calculate costs of losses Be practical: this is the most difficult task!

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43 Task 2e: Quantify losses through a material and energy balance Company Energy Efficiency methodology Energy Focus

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44 Step 3: Identification of Options Company Energy Efficiency methodology Purpose: identify opportunities to improve energy efficiency for the selected focus areas Output: list of options that will be investigated on their feasibility in step 4 Tasks and minimum time: Task 3a: Determine causes of losses (0.5 day per focus area) Task 3b: Identify possible options (0.5 day per focus area) Task 3c: Screen options for feasibility analysis (0.5 day)

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45 Task 3a: Determine causes of losses (0.5 day per focus area) Company Energy Efficiency methodology Brainstorm session with staff and others Ask the question: Why are these losses occurring? Keep asking until you found the “root cause” Look for different causes: Man Method Machine Material

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46 Task 3a: Determine causes of losses (cont.) Company Energy Efficiency methodology Fishbone diagram

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47 Task 3a: Determine causes of losses (cont.) Company Energy Efficiency methodology Material losses with an energy-related cause Low dye exhaustion caused by low temperatures Scale losses caused by cold air infiltration in rolling mills Energy losses with an energy-related cause High electricity use in rollers caused by overheating of bars in rolling mills High transmission and distribution losses caused by low power factor Energy Focus

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48 Task 3a: Determine causes of losses (cont.) Company Energy Efficiency methodology Energy losses with a material-related cause Inefficient combustion caused by improper sizing of coal High steam consumption in dyeing process caused by too high liquor-to-cloth ratio Poor product quality with an energy-related cause Thin zinc layer caused by high temperature of zinc bath in galvanizing Uneven strength of forged products caused by low/non-uniform temperature in furnace Energy Focus

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49 Task 3a: Determine causes of losses (cont.) Company Energy Efficiency methodology Other examples Low boiler efficiency caused by operating at <50% capacity High electricity consumption due to compressed air leaks High steam consumption caused by un-insulated flanges High electricity consumption due to motor operating at varying loads Energy Focus Do you know of any other examples?

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50 Task 3b: Identify possible options (0.5 day per focus area) Company Energy Efficiency methodology Brainstorm session with staff and others Ask the question: What can we do to reduce energy losses? Options can fall in the following categories: Good housekeeping Improved process management Production process / equipment modification New technology / equipment Input material substitution On-site reuse / recovery Production of useful by-product Product modification

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51 Task 3b: Identify possible options (cont.) Company Energy Efficiency methodology A combination of options is likely Poor bleaching can be solved by: Reducing the liquor-to-cloth ratio thereby increasing the bleaching bath temperature Energy Focus

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52 Task 3c: Screen options for feasibility analysis (0.5 day) Company Energy Efficiency methodology Put identified options in three groups: Options that can be implemented directly Options that require further analysis Options that can be considered at a later stage

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53 Worksheet 15: Causes, identify options and screening Company Energy Efficiency methodology

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54 Step 4: Feasibility Analysis of Options Company Energy Efficiency methodology Purpose: Determine which options are technically, financially and environmentally feasible In what order feasible options should be implemented Output: proposal that is approved by top management with: Recommended options for implementation How to do this List of options that require further investigation

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55 Step 4: Feasibility Analysis of Options Company Energy Efficiency methodology Tasks: Task 4a: Technical, economic and environmental evaluation of options Task 4b: Rank feasible options for implementation (0.5-1 day) Task 4c: Prepare implementation and monitoring proposal for top management approval (2-3 days)

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56 Task 4a: Technical, economic and environmental evaluation of options Company Energy Efficiency methodology The Team should (time depends on options): Investigate which options are technically, economically and environmentally feasible Identify other possible reasons for implementing the option Think of possible barriers to implementing the option

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57 Worksheet 16: Option analysis and implementation (part for feasibility analysis) Company Energy Efficiency methodology

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58 Task 4a: Technical, economic and environmental evaluation of options Company Energy Efficiency methodology Technical Location of power, steam, compressed air lines Handling capacity of existing system for new equipment Environmental Fluorescent tube lights use less electricity than incandescent lamps but contain toxic materials Bag filter reduces dust but uses electricity Energy Focus

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59 Task 4b: Rank feasible options for Implementation Company Energy Efficiency methodology Team meeting to give each option a Rank (0.5 – 1 day): Implementation in short term (e.g. <1 year) Recommended for implementation but in the longer term (e.g. 2-3 years) Recommended for further investigation or consideration at a later stage Unfeasible options

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60 Task 4b: Rank feasible options for Implementation (cont.) Company Energy Efficiency methodology For options to be implemented (rank = 1) (time depends on options): Implementation and monitoring tasks Who is responsible Completion dates How much staff time required Comments

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61 Worksheet 16: Option analysis and implementation (part for implementation) Company Energy Efficiency methodology

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62 Worksheet 17: Ranking of options Company Energy Efficiency methodology

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63 Task 4c: Prepare implementation and monitoring proposal for top management approval Company Energy Efficiency methodology Prepare Implementation and Monitoring Plan Introduction Number of options identified, options investigated for feasibility, feasible options, options requiring further investigation, and unfeasible options Options recommended for implementation in the short term Worksheets for each option Obtain management approval

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64 Step 5: Implementation and Monitoring of Options Company Energy Efficiency methodology Purpose Implement feasible options in order of priority Monitor results Discuss findings with top management Output Improved energy efficiency, reduced costs and reduced GHG emissions Agreement with top management about the next steps Tasks Task 5a: Implement options and monitor results (time depends on options) Task 5b: Evaluation meeting with top management (0.5 day)

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65 Task 5a: Implement options and monitor results Company Energy Efficiency methodology Carry out the Implementation and Monitoring Plan Record results for each option: Economic results Environmental results Other results: e.g. any other benefits from the option and barriers encountered Communicate results to staff

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66 Worksheet 16: Option analysis and implementation (part for feasibility analysis) Company Energy Efficiency methodology

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67 Task 5b: Evaluation meeting with top management (2-4 hours) Company Energy Efficiency methodology Purpose: Close the first round of energy efficiency projects Gain management commitment to continue with energy efficiency Discuss the following: Results How to communicate results internally and externally How to continue Additional options for implementation / investigation New focus areas to carry out more assessments How to integrate energy management throughout the company’s systems

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68 Step 6: Continuous Improvement Company Energy Efficiency methodology Purpose: ensure that the company continues improving energy efficiency in a systematic way that is integrated in company processes (these are the key components of Cleaner Production!!) Output: Continuation of implementing energy efficiency options Integration of energy management into company processes Task 6a: Prepare proposal to continue with energy efficiency (2-3 days)

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69 Task 6a: Prepare a proposal to continue with energy efficiency for top management approval Company Energy Efficiency methodology Write a proposal Based on what was agreed with top management at the evaluation meeting Considering new focus areas and options identified for later implementation / investigation Include how to integrate energy management into company processes!! Seek top management approval

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70 In Summary: Company Energy Efficiency methodology The Company Energy Efficiency Methodology helps companies to: Save energy Reduce costs Protect the environment Now and in the future!

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71 Training Session on the Company Energy Efficiency methodology How to become Energy Efficient THANK YOU FOR YOUR ATTENTION Company Energy Efficiency Methodology

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72 Company Energy Efficiency Methodology This training session was prepared as part of the development and delivery of the course “Energizing Cleaner Production” funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany) and carried out by the United Nations Environment Programme (UNEP) The session is based on materials from the “Energy Efficiency Guide for Industry in Asia” developed as part of the GERIAP project that was funded by the Swedish International Development Cooperation Agency (Sida) The textbook chapter is available on www.energyefficiencyasia.org Disclaimer and References