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ACTSYS Process Management Consultants Pte Ltd ACTSYS Process Management Consultants Pte Ltd ISO50001 Barriers to Adoption by Industry August 2016 1

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ACTSYS Process Management Consultants Pte Ltd ACTSYS Process Management Consultants Pte Ltd

ISO50001 Barriers to Adoption by Industry

August 2016

1

ACTSYS Process Management Consultants Pte Ltd

Operator = Me

Energy Manager = My Wife

Energy Inefficiency = Not very visible

Energy Inefficiency KPI = # Pails/Day

Energy Audit = The Pail

Energy Planning = Wife’s household review

Putting pail in place

Setting KPI target

Energy Improvement = Repair Tap

ACTSYS Process Management Consultants Pte Ltd

ISO 50001 Energy Mgmt System

• Overview of Requirements – Based on the Plan-Do-Check-

Act continual improvement framework Plan: establish the objectives and

processes necessary to deliver results in accordance with opportunities to improve energy performance and the organization's policies

Do: implement the processes

Check: monitor and measure processes and product against policies, objectives and the key characteristics of its operations and report the results.

Act: take actions to continually improve energy performance.

ACTSYS Process Management Consultants Pte Ltd

Global Growth of ISO50001

ACTSYS Process Management Consultants Pte Ltd

High Growth Countries

• Germany – Energy intensive industries (>5 GWh/Y) minimum

requirement ISO50001 certification for energy tax incentives and partial exemption from renewable levies

– Mandatory Energy Audits

– 3500 ISO50001 certifications (2014)

• Sweden – Large Industries mandatory Energy Audits by certified

energy auditor

– Obligatory Implementation of certified Energy Management System

ACTSYS Process Management Consultants Pte Ltd

ISO50001 in Singapore

• Limited number of companies have gone for certification (<20)

• Common reasons

– Perception of limited benefits

– In-house Energy Management good enough

– Certification and verification generate high work load

– Audit fatigue from ISO9001, ISO14001

ACTSYS Process Management Consultants Pte Ltd

Sustaining Energy Performance

50%

40%

60%

30%

10%

10%

30%

70%

50%

30%

10%

30%

Energy Manager

Energy Plannning

Energy Measurement

Energy Reporting

Energy Targets

Energy Performance Indicators

Energy Deviation Monitoring

Energy Audits

Equipment Performance

Energy Improvement activities(Process and maintenance)

Energy Training

Continuous Improvement

ISO50001 EnMS Gap Analysis

ACTSYS Process Management Consultants Pte Ltd

Singapore ECA Findings

• Energy Conservation Act covered 213 energy intensive facilities

• Findings over 2 years of Reporting – Varying levels of rigour in Energy Management

– Low level of ambition in Energy Efficiency Improvement

– Room for improvement in Energy Efficiency

– 62% of Energy Performance of major systems not tracked

– Over 50% measured less than 1/3 of important parameters

Source : NEA

ACTSYS Process Management Consultants Pte Ltd

Actsys Observations

• Customer Segments

– Refineries

– Petrochemical Plants

– Pharmaceuticals

– Semiconductor

– Food Industry

• Energy Audits

• Measurement and Verifications

• Regular Performance Monitoring

ACTSYS Process Management Consultants Pte Ltd

Observation of Common Gaps

• Energy Planning (4.4)

– No Energy Reviews / Audits (4.4.3)

• Lack of internal capacity

• Not considered use of external Energy Auditors

• No structured plan for improvement

– No Energy Baseline (4.4.4)

• Not established without Energy Review

– Inadequate Energy Performance Indicators (4.4.5)

• Usually no Plant Wide EnPI (and no KPI targets)

• Not normalized for production levels or ambient conditions

ACTSYS Process Management Consultants Pte Ltd

Observation of Common Gaps

• Implementation and Operation (4.5)

– Operational Control (4.5.4)

• No targets given to adjust for energy efficiency

• No criteria available to trigger maintenance for energy efficiency

– Design (4.5.6)

• Often farmed out to EPC contractors or Equipment Suppliers who do not place high priority on energy efficiency features

ACTSYS Process Management Consultants Pte Ltd

Observation of Common Gaps

• Checking Performance (4.6)

– Measurement, Monitoring and Analysis (4.6.1)

• Insufficient instrumentation

• None or disparate data logging systems eg flows, temps on Scada and motor power on Motor Control Centre Panel

• Incomplete comprehension which operating parameters contribute to energy performance eg Chiller Condenser sub-cooling

ACTSYS Process Management Consultants Pte Ltd

ISO50001 in Singapore

ACTSYS Process Management Consultants Pte Ltd

Energy Management Dashboards

• Enabler for ISO50001 integration into organization

• Many varieties commercially available

• Important features

– Plant Wide Energy KPI vs Target

– Drill down into plant subsections

– Drill down into equipment level operating parameters

ACTSYS Process Management Consultants Pte Ltd

Energy Consumption Dashboard

ACTSYS Process Management Consultants Pte Ltd

Energy Consumption Dashboard

ACTSYS Process Management Consultants Pte Ltd

ISO50001 Dashboard Refinery A

Overview Refinery EII 82 102.4

Crude Dis ti l ler Unit 1 CDU1 Delta +15.2

Crude Dis ti l ler Unit 2 CDU2 Delta -2.5

Naphtha Hydrotreater NHT Delta -4.1

Cont Catalytic Reformer CCR Delta +3.4

Gasoi l Hydrodesulphuriser GO HDS Delta +2.1

High Vacuum Unit HVU Delta -1.5

Hydrogen Manuf Unit HMU Delta -4.5

Hydrocracker HCU Delta +3.2

Delayed Coker Unit DCU Delta -2.8

Cogen Unit COGEN Delta +4.8

Uti l i ties UTILS Delta +7.1

30/7/2016 16:48Energy Performance Dashboard

ACTSYS Process Management Consultants Pte Ltd

Operational Dashboard

Refinery A

Actual Target Contribution to Refinery EII

Overview CDU 1 EII 155.1 122 +15.2

Crude Dis ti l ler Unit 1 CDU Intake m3/h 347.1 351 +1.0

Crude Dis ti l ler Unit 2 F101 Stack Temp DegC 288 285 +0.0

Naphtha Hydrotreater F101 Excess O2 % 2.4 1.8 +0.29

Cont Cata lytic Reformer C101 Stripping Stm % 2.8 3 -1.15

Gasoi l Hydrodesulphuriser C101 Pressure kg/cm2g 1.45 1.45 +0.0

High Vacuum Unit C119 Stripping Stm % 3.8 3 +2.3

Hydrogen Manuf Unit C103 Reboi l Ratio kJ/kg 144 300 -2.1

Hydrocracker C102 Reboi l Ratio kJ/kg 32 45 -0.3

Delayed Coker Unit C109 Reboi l Ratio kJ/kg 230 200 +4.3

Cogen Unit C110 Reboi l Ratio kJ/kg 137 140 -0.5

Uti l i ties C110 Pressure kg/cm2g 8 8 +0.0

CDU Preheat Tra in HX UA

E137 kW/C 257 260 +0.0

E105A/B kW/C 52 116 +1.2

E139 kW/C 31 20 -0.1

E142A/B kW/C 106 212 +2.4

E108A/B kW/C 65 123 +3.5

E112A/B kW/C 180 220 +2.2

E141 kW/C 492 318 -0.24

E136 / E140 kW/C 120 300 +2.4

Energy Performance Dashboard 30/7/2016 16:48

ACTSYS Process Management Consultants Pte Ltd

Pharma Plant

Overview Overal l Plant 100 116.4

Cogen Cogen +8.2

Hot Oi l 1 Hot Oi l 1 -1.5

Hot Oi l 2 Hot Oi l 2 +3.1

Absr Chi l ler Absr Chi l ler +3.3

Electric Chi l ler Electric Chi l ler +7.4

ChW Pumps ChW Pumps -1.5

Cool ing Tower Cool ing Tower -4.5

Air Compressor Air Compressor +1.9

Energy Performance Dashboard SEC 30/7/2016 16:42

ISO50001 Dashboard

ACTSYS Process Management Consultants Pte Ltd

Pharma Plant

Actual Target Contribution to Pharma Plant SEC

Overview Cogen Therm Eff % 76.1 82.3 +8.1

Cogen GT Load % 84 100 +0.6

Hot Oi l 1 GT Compr Isen Eff % 81.4 86 +3.3

Hot Oi l 2 GT IAF delta P mmH2O 67 25 +0.3

Absr Chi l ler GT Turbine Eff % 65 66 +0.0

Electric Chi l ler HRSG Act/N&C Steam 0.93 1 +2.8

ChW Pumps BFW Pump Eff % 65 72 +1.1

Cool ing Tower

Air Compressor

Energy Performance Dashboard 30/7/2016 16:42

ISO50001 Dashboard

ACTSYS Process Management Consultants Pte Ltd

Pharma Plant

Actual Target Contribution to Pharma Plant SEC

Overview Elect Chi l ler kW/RT 0.74 0.6 +7.4

Cogen ChW Supply degC 5.8 7 +2.5

Hot Oi l 1 CW Supply degC 28.4 26 +1.3

Hot Oi l 2 CW Flow m3/h 734 850 +0.3

Absr Chi l ler Condenser Subcool degC 3 0 +0.6

Electric Chi l ler Evap Superheat degC 4 2 +0.3

ChW Pumps Compressor Eff % 56 66 +2.4

Cool ing Tower

Air Compressor

Energy Performance Dashboard 30/7/2016 16:42

ISO50001 Dashboard

ACTSYS Process Management Consultants Pte Ltd

0.00

2.00

4.00

6.00

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10.00

12.00

14.00

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

Nov-07 Jun-08 Dec-08 Jul-09 Jan-10 Aug-10 Feb-11 Sep-11 Apr-12 Oct-12 May-13

Ene

rgy

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st, R

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, mm

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MTBE Energy Specific Consumption & Energy Cost (2008-2012)

Energy Cost

MTBE EnergySpecificConsumption

Savings

RM 2

Million/month

Case Study - Energy Index Dashboard

ACTSYS Process Management Consultants Pte Ltd

Learning Points from Others

• 3M 3M_Global.pdf

– EE program already in place 40 years

– ISO50001 gave tools for continuous improvement

– Implemented ISO50001 since 2011 in 18 facilities in 7 countries, they show EE improvement 60% more than group average

• Abbott Abbott.pdf

– Deciding Energy Performance Indicators and putting in place metering plan

– “We should have done it earlier”

ACTSYS Process Management Consultants Pte Ltd

Learning Points from Others

• JK Lakshmi Cement Ltd JK Lakshmi.pdf

– Many years of Energy Management activities but ISO50001 provided structure

– Smooth implementation of ISO50001 as staff already well versed with ISO9001 and ISO14001

– Challenge was to involve bottom line workmen

ACTSYS Process Management Consultants Pte Ltd

Learning Points from Others

• Nissan USA Nissan_USA.pdf

– “ISO50001 adds rigor, analysis, and gives good guidance. It’s one thing to have a target and objective, but ISO 50001 gives tools that empower you to be more disciplined and prove the impact certain activities have.” —Nissan North America Energy Team

– Some believed the company had already seized all opportunities to reduce energy usage; however, the EnMS and the EnPI tool enabled discovery of correctable, previously undetected energy losses.

ACTSYS Process Management Consultants Pte Ltd

Learning Points from Others

ACTSYS Process Management Consultants Pte Ltd

Thank You

GT

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4.2

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HP STEAM (34.39%)

HP

TU

RB

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2.1

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LP TURB POWER (10.87%)

CONDENSER LOSS 33.53%

SHAFT POWER

IP TURB POWER (6.68%)

AU

XIL

IAR

Y P

OW

ER

(0

.22

%)

ROTOR COOLING LOSS (2.09%)

COMBUSTOR LOSS (0.49%)

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DUCT L

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.35%

)

RADIATION LOSS

(0.34%)

PIP

E L

OSS (0

.08%

)

LP STEAM (4.03%)STACK LOSS (8.97%)

IP STEAM (8.6%)

CHEMICAL

ENERGY

(97.32%)

RADIATION LOSS (0.06%)

RA

DIA

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N L

OS

S

(0.0

9%

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www.actsys.com