energy efficiency in the industry - complement for renewable energies - maria holopainen vtt

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VTT TECHNIC L RESE RCH CENTRE OF FINL ND LTD Energy efficiency in the industry – complement for renewable energies Maria Holopainen Programme Manager VTT Technical Research Centre of Finland 12.11.2015 Santiago, Chile

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Page 1: Energy Efficiency in the industry - Complement for Renewable Energies - Maria Holopainen VTT

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VTT TECHNIC L RESE RCH CENTRE OF FINL ND LTD

Energy efficiency in theindustry – complement for

renewable energies

Maria HolopainenProgramme Manager

VTT Technical Research Centre of Finland

12.11.2015

Santiago, Chile

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Challenges inEnergy efficiency

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20/11/15 3

Global energy transition is underway

The International Energy Agency (IEA) haslaunched its 2015 World Energy Outlook.

!  Renewables contributed almost half of the

world's new power generation capacity in2014 and have already become the second-

largest source of electricity (after coal). Thecoverage of mandatory energy efficiency

regulation has expanded to more than one-

quarter of global energy consumption.

!  All adopt more energy efficient technologies,

although a prolonged period of lower oil prices

could undercut this crucial pillar of the energytransition; diminished incentives and longer

payback periods mean that 15% of the

energy savings are lost in a low oil pricescenario.

Source: IEA

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20/11/15 4

Potential in Energy efficiency

! Much has been done mainly by the large energy intensiveindustries but untapped potential for EE remains huge.

Source: IEA

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20/11/15 5

Benefits of Energy efficiency

Source: IEA

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20/11/15 6

Challenges related to energy efficiency in industry

!  Low oil prices

!  No interest in investments in energy efficiency due to low cost of energy

!  Experts

Lack of critical skills of most value for the industry

Systemic thinking! 

Regional and cluster approach requires collaboration accross different

sectors and actors

!  Manufacturing industry

 A lot of SMEs in manufacturing industry. SMEs have limited capacity to

either initiate innovative R&D or take up available solutions

Political environment

Energy Efficiency Directive (2012/27/EU)

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20/11/15 7

Opportunities from climate change to value creation

Energy efficiency – a "two fold" perspective

Governments, NGOs, IEA etc! 

!  Reduced environmental impact

Incentives, CO2 tax, NOx tax, ETS! 

!  Industry! 

!  Reduced cost through reduced energy

consumption

Higher output for the same input

 A saved kW is

a good kW!

 A kW giving 2 kg

food is better

than a kW giving

1 kg food!

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European Union

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20/11/15 9

EU 2020 Energy Strategy

By 2020, the EU aims to reduce its greenhouse gas emissions

by at least 20%, increase the share of renewable energy to at

least 20% of consumption, and achieve energy savings of 20% 

or more. All EU countries must also achieve a 10% share of

renewable energy in their transport sector.

Source: European Commission

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20/11/15 10

EU 2030 Energy Strategy

a 40% cut in greenhouse gas emissions compared to 1990

levels

at least a 27% share of renewable energy consumption

at least 27% energy savings compared with the business-as-

usual scenario

Source: European Commission

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20/11/15 11

Energy efficiency measures at the Member State

level in EU

National Energy Efficiency

 Action Plans set out estimated

energy consumption, planned

energy efficiency measures

and the improvements

individual EU countries expect

to achieve. Under the Energy

Efficiency Directive (2012/27/

EU), EU countries must draw

up these plans every three

years.

Source: European Commission

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20/11/15 12

Energy Efficiency Directive (2012/27/EU)

New national measures have to ensure major energy savings for consumers and industry

alike. For example:

energy distributors or retail energy sales companies have to achieve 1.5% energy

savings per year through the implementation of energy efficiency measures

EU countries can opt to achieve the same level of savings through other means such as

improving the efficiency of heating systems, installing double glazed windows or

insulating roofs! 

the public sector in EU countries should purchase energy efficient buildings, products

and services

every year, EU governments will carry out energy efficient renovations on at least 3% of

the buildings they own and occupy by floor area

empowering energy consumers to better manage consumption. This includes easy and

free access to data on consumption through individual metering

national incentives for SMEs to undergo energy audits

large companies will make audits of their energy consumption to help them identify ways

to reduce it

monitoring efficiency levels in new energy generation capacities

Source: European Commission

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20/11/15 13

Sustainable Process Industry through Resource

and Energy Efficiency (SPIRE)

 A.SPIRE represents the private sector as a partner in the Sustainable ProcessIndustry through Resource and Energy Efficiency (SPIRE) Public-Private

Partnership (PPP) launched as part of the Horizon2020 framework programme.

 A.SPIRE is dedicated to innovation in resource and energy efficiency and

enabled by the process industries. More than 130 industrial and researchprocess industry stakeholders from over 12 countries in 8 sectors in Europe:

chemical

steel

engineering

minerals

non-ferrous metals! 

cement

ceramics

and water

Source: SPIRE

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The European Energy Research Alliance EERA

Joint Programme in Energy Efficiency in

Industrial Processes in Europe

25 R&D institutes

11 countries

Complement the work of industry lead initiatives in research

activities on EE (such as SPIRE) by focusing in activities with

lower Technology Readiness Level (TRL)

Opening access to infrastructures across Europe and joining

forces of the best institutes

Focus on:

!  Energy intensive industries

!  Manufacturing industries

!  Agro-food industrial processes Source: EERA

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Finland

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20/11/15 16

Where is Finland?

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20/11/15 17

Finland’s National Energy Efficiency Action Plan

With all measures factored in, Finland is on course to achieving an energy saving of

-20% in 2020.

Below a summary of the energy saving effects relevant to the Energy Services Directive

(Directive 32/2006/EC) in 2010, 2016 and 2020.SECTOR 2010 GWh/a 2016 GWh/a (estimate) 2020 GWh/a (estimate)

ESD:

Buildings 6 614 15 081 21 009

Public sector 393 674 842

Services – private 189 433 506

Industry 1 962 2 145 2 396

Transport 1 478 3 461 5 669

 Agriculture 1 222 2 316 2 896

Horizontal measures 0 1 278 4 259

NON-ESD (sites in emissions trading):

Industry 8 844 9 693 10 807

Energy sector 611 2 336 3 460

TOTAL ENERGY SAVING – ESD 11 858 25 388 37 577

TOTAL ENERGY SAVING – NON-ESD 9 455 12 029 14 267

TOTAL ENERGY SAVING - ALL 21 313 37 417 51 844

Source: Finland’s National Energy Efficiency Action Plan 

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20/11/15 18

Voluntary Energy Efficiency Agreements

generate significant savings in Finland

The aim of the agreements is to systematically guide companies andcommunities to become more energy-efficient.

!  The principle of continuous improvement is a key element of all the agreements.The companies and communities that have joined the agreement scheme set their

own targets for improving their energy use, implement the measures necessary to

reach them, and report annually on the realisation of the energy efficiencymeasures and other activities aimed at its improvement.

 An important aim of the agreement scheme in e.g. industry, energy and private

service sector as well as municipal sector agreements is also to further thedeployment of new energy-efficient technologies and services. The

government subsidises energy audits and analyses for companies andcommunities that have signed up to the agreements, as well as energy efficiencyinvestments and deployment of new energy-efficient technology on a case-for-

case assessment basis.

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Efficient Energy Use (EFEU) Programme in

Finland•

 

Pre-commercial public-private research program

• 

 Aim of the program is to build knowledge and competence to enable future growth

in energy efficiency product and service innovations.

• 

Focus is in system level solutions

 –  Product and unit level efficiency improvement potential is diminishing

 – 

Potential is still large in system level solutions but requires coextensive -operation•

 

Duration 5 years (2012-2016)

• 

Planned budget 12 M " 

• 

11 industrial partners and 5 research partners

• 

www.cleen.fi/en/efeu 

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Expected Impacts

Expected

results

• Finnish energy

efficiency expert

network to help

companies in R&D

• Import of EEcompetence to

Finland

• Methods and

ideas to improve

radically EE in

target applications

• New methods and

ideas to measure,

analyze, and

optimize EE

• Ideas for new EE

business concepts

Activities

• System energy

efficiency

analysis and

optimization

research

• Research of

integrated

energy efficient

systems

• Research of

energy efficiency

services and

solutions

• Foresight and

dissemination

Direct

business

impacts

• New high EE

products

• New EE and

service businessconcepts and

ideas

• New methods to

improve

competitiveness

of existing

products and

plants by

increasing EE

Indirect

business

impacts

• Availability of

EE focused R&D

network

• Availability ofengineers that

understand EE

• New tools for

Motiva

Company

R&D

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Research areas

1. 

Energy efficiency assessment and optimization methods forcomplex systems

2.  Fluid handling systems

 – 

High efficiency equipment and system design

 – 

Energy efficiency optimizing control schemes

 – 

Internet-based services for monitoring and diagnostics

3.  Regional energy systems

 –  Design of energy chains and regional energy systems

 – 

Energy efficiency optimizing control strategies

 – 

Business models and solutions

4. 

Future scenarios and implications for future energy efficiencybusiness opportunities

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Energy efficient fluid handling systems

•  Goal is to provide the knowledge for developing the next

generation energy efficient fluid handling systems –

 

Design of high efficiency pumps, pulpers and mixers

 – 

Energy efficiency optimizing control schemes

 –  Internet-based services for monitoring and diagnostics

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Energy efficient regional energy systems

•  Objective is to develop regional energy efficiency solutions and service

concepts. Energy efficiency control strategies will be developed for shipenergy systems and regional energy systems

•  Energy usage forecasting and optimisationmethods for closed energy systems

•  Energy efficient control methods forregional energy systems

•  Business models and solutions forregional energy systems

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VTT Technical ResearchCentre of Finland

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20/11/15 25

OF FINNISH

INNOVATIONS

include VTT

expertise. (*

VTT – Technology for business

Turnover 277 M " (VTT Group 2014), personnel

2,600 (VTT Group 1.1.2015 )

Unique research and

testing infrastructure! 

Wide national and

international cooperation

network 

*) Source: Roles, effectiveness, and impactof VTT, VTT & Technopolis Group, 2013.

VTT Technical Research Centre of Finland Ltd is theleading research and technology company in the

Nordic countries. We provide expert services for ourdomestic and international customers and partners,

and for both private and public sectors. We use4,000,000 hours of brainpower a year to develop new

technological solutions. 

We develop new smart technologies, profitable solutionsand innovative services. We cooperate with our customers

to produce technology for business and build success andwell-being for the benefit of society.

VTT is a non-profit organisation and a crucial part ofFinland's innovation eco-system. VTT operates under the

mandate of the Ministry of Employment and the Economy.

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20/11/15 26

VTT’s business areas

Expert areas•

 

Lifetime management•

 

Nuclear safety

• Smart energy and systemintegration

• Systems engineering• Efficient machines and vehicles

• 

Materials and manufacturing•

 

Business ecosystems, valuechains, foresight

Smart Industry andEnergy Systems

Expert areas•

 

Industrial biotechnology•

 

Biofuels and bioenergy

• Process chemistry andenvironmental engineering

• Biomass and food processing• Fibres and biobased materials

Solutions for NaturalResources and Environment

Business ecosystems, value chains, foresight

Expert areas•

 

Microelectronic systems•

 

Intelligent sensor systems

• Printed and hybrid functionalities• Communication systems

• Digital systems and services• Health

• 

MIKES Metrology

Knowledge IntensiveProducts and Services

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20/11/15 27

Opportunity to utilise uniquetesting and research equipment

Technologies and expertiseResearch infrastructure Partnership networks

Cross-disciplinary in-depth scientific andbusiness expertise available to the

customer

Comprehensive, cross-disciplinary scientific and

customer networks

VTT services are available to the customer in all stages of the innovationprocess from foresight to ensuring market access

Services

Solutions

Customised solutions are created inco-operation with customers

Solutions

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20/11/15 28

Services

VTT t fit bilit d

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20/11/15 29

VTT promotes profitability and

competitiveness of companies and

society through innovation

* Taloustutkimus Oy, VTT customer survey,2014. Share of survey respondents who had

this benefit as their goal in their VTT projectand felt that the benefit was generated in the

project.

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20/11/15 30

How to work with us

Together towards

bigger challenges

For your company

exclusively

When you need support for your company’s R&D process, weoffer you confidential contract

research projects. The targetsare set by you and projects are

planned in cooperation.

The projects are started fast

and delivered efficiently. You willown the results.

When a group of companieshave a shared interest, we cansupport in creating the suitable

consortia and provide the R&Dresources and the research

infrastructure needed.

Projects can be privately funded

but they can also include publicfunding.

Look to the

future with us

When companies are interested indeveloping and enhancing newcompetencies and technologies,

we offer a solid network ofuniversities, research institutes and

companies in various public-funded programmes (e.g. EUresearch programmes).

Programmes are typically multi-

national and cross-scientific and

their timeframe is long. Results ofthe public-funded programmes are

open for publicity.

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20/11/15 31

Customer: Rautaruukki Oyj

Challenge: How to improve the efficiency of the tandem cold mill to

produce high quality products cost-effectively. Sheet metal industry

customers require good strip dimensions accuracy and uniformity of

the mechanical properties. The manufacturing of over 10,000 different

steel grade/dimension combinations puts a lot of pressure on the rolling

process.

Solution: VTT and Rautaruukki have created a virtual quality system to monitor and analyse

the production process. The system uses virtual sensors and models to calculate quality

features based on process information and analysed history data. The intelligent virtual-sensor

technology is developed for estimating hard-to-measure variables. Automation system is

continuously updated after analysis to achieve the required quality.

Key benefits: 

!  Continuous improvement of the setup models and process in terms of the tandem cold mill

rolling process.

Continuous improvement of production process

with virtual rolling quality system

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20/11/15 32

Customer: Jeven Oy

Challenge: How to improve the efficiency of fat removal filters.

Solution: Jointly developed filter solution which efficiency is based

on a rotating filter patented by VTT. Rotating separation plate is

treated with nanotechnology-based coating, repelling dirt and fat.

The solution practically eliminates the need to clean the fat removal

filter and significantly enhances the filter’s ability to do its job compared

to current technology.

Key benefits: 

!  New efficient filter solution which is easy and fast to clean, leading to cost and energy

savings.

!

 

New filter technology which can be applied to several industries such as machinery.

"The filter solution we developed together with VTT is extremely important for our

company. Solution as significant as this happens only once in a professional's career.“ –

Seppo Vartiainen, Managing Director, Jeven Oy

Improved filter efficiency with rotating

filter solution

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TECHNOLOGY FOR BUSINESS

Maria Holopainen

[email protected] Programme Manager

VTT Technical Research Centre of Finland