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ENERGY AUDIT STANDARDS WITH SPECIFIC FOCUS ON TRANSPORT

Madrid 21st March 2014

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Agenda

Introductions

Conor Molloy, AEMS, Chair CEN Transport WG

Erik van Agtmaal, Altimedes Consulting

Transport as a system

EN16247- Energy Audits Part 4 - Transport

Impacts of energy audits

Voluntary SME impacts

Conclusions

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An introduction to energy efficiency audits

in freight transportation

Erik van Agtmaal Managing Partner Altimedes

Energy audits and Energy Management systems under Energy Efficiency Directive Article 8

Madrid, 20th and 21st March 2014

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Background information

• Altimedes is a consulting firm in transport, logistics and supply chain management with a specific focus on energy efficiency and sustainability in transport and logistics.

• Founding member of the Green Logistics Consulting Group

• Assignments and services relevant to energy efficiency – Guidelines for emissions monitoring and reporting in logistics, Connekt

www.emissieberekenen.nl

– IATA Air Cargo footprint project

– Climate TransAct Stakeholder process

– SmartWay Europe Working group (now Green Freight Europe)

– United Nations Sustainable Procurement of Freight Transportation Services www.greeningtheblue.org

– Lean and Green programme, Flanders Institute for Logistics www.vil.be

– Energy audits and -management in road transport, air transport and logistics

– Training programme for road transport energy efficiency auditors

– …

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Energy use in transport (world)

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Source: Alex Körner, Transport sector: Trends, Indicators energy efficiency measures,

International Energy Agency, 2012

Freight transportation energy use (40 exajoule or 43% in 2009) is growing

faster than passenger transport.

Transport is 20% of energy use

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Transport energy efficiency measures ASI model

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Source: Altimedes, 2012 - developed for the Lean and Green programme - Flanders Institute for Logistics VIL

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Metrics for fuel efficiency in transport

Fuel consumption (FC) per unit • Litres per 100 km (l/100 Vehicle km)

• Litres per tonne-km

• Litres per m3-km

• Litres per passenger-km

• Litres per tonne delivered

• …

Fuel economy (FE) • Km per litre, Miles per gallon, …

Non linear relationship between FC and FE • 10% increase in FE = 9.1 % decrease in FC

• 100% increase in FE = 50 % decrease in FC

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360° ENERGY AUDIT ROAD CARRIER

Example

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Energy cost in a road transport carrier

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Source: Total operating costs of an average German freight forwarding company , Güterkraftverkehr Logistik und Entsorgung e.V., 2012.

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Process

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1. Meeting with management team to explain and agree objectives, scope, approach, information exchange, contact persons and to get a first idea of the company, its operations and energy efficiency programme

2. Standard questionnaire (after non relevant questions are removed) is sent to contact person

3. First analysis based on response to questionnaire

4. Meetings with different managers and site visits (vehicles, transport planning, maintenance, procurement, sales, HR, …)

5. Analysis of findings and audit report

6. Presentation of audit report and recommendations to management team

7. Impact – feasibility assessment and matrix

8. Prioritisation of measures

9. Development of action plan

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Benchmarking

Performance may be benchmarked to: • Past performance: Comparing current versus reference

year (e.g. Lean and Green)

• Peer group: Comparing to the performance of a peer group (e.g. US EPA SmartWay)

• Best in class

• Best Practices: Comparing against more specific established practices considered to be the best in the industry

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Benchmarking per category

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0

0,5

1

1,5

2

2,5

3

3,5

4

Supply chain (2)

Logistics operations (3)

Transport management (5)

Fleet composition (4)

Maintenance (10)

Aerodynamics (7) Tyres (8)

Fuel management (9)

Alternative fuels (13)

Eco driving (11)

Human resources (12)

Telematics (6)

Energy management (1)

• Energy Management

System • Supply chain impacts • Logistics • Fleet, truck and trailer

specifications • Transport management • Telematics • Aerodynamics • Tyres • Fuel management • Maintenance • Driver training • Human Resources • Alternative fuel

vehicles and new technologies

Score per category is given versus

feasible optimum (best practices)

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e.g. Aerodynamics

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Most aerodynamic shape

Air flow

Frontal

Friction zone Friction zone Friction zone

Recirculation zone Rear end

Roof fairing or deflector

Cab side-edge turning vanes

Aerodynamic side mirrors

Air dam

Tractor side panels

Collar

…

Aerodynamic mud flaps

Trailer side panels

Trailer rear-end solutions

…

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Aerodynamic quick wins

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Remove counterproductive aerodynamic features (0.6% to 1.5% reduction in fuel consumption)

• Correct installation and adjustment of air deflectors or fairings (1% to 3.8% reduction in fuel consumption)

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e.g. Impact of driver

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e.g. Impact of driver

Importance of continuous monitoring and reporting (driver league tables, benchmarking)

Intelligent cruise control and other supporting tools

Focus should be on all drivers and not only on ‘bad’ performers

Eco driving training and other training

Employee involvement in fuel management programme and in transport and logistics improvements

Awards, bonus schemes, competitions, …

…

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e.g. Impact of contract

Split incentives are an important cause of non optimisation in freight transportation

Transport carriers hold relevant information about potential logistics improvements but are unwilling to transfer this information to their clients as it is not in their interests

Transport contracts should avoid split incentives

Regular meetings to discuss opportunities for improvements

Sharing of benefits

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Lessons learned (1)

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Importance of a comprehensive 360° audit approach

Large variation in energy efficiency between companies

Even the “best in class” can improve

Many energy efficiency improvement measures, including quick wins, are often not implemented

The cumulative impact of even small improvements has the potential to deliver significant fuel efficiency gains

Audits show high total potential for energy efficiency improvement (6% to 20 % over a time period of 2 to 3 years)

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Lessons learned (2)

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Changes in product life cycle design, supply chain network design, logistics, … have often a much larger impact than technical improvements

The involvement of shippers creates extra opportunities and incentives for carriers to improve fuel efficiency

Providing information is not enough

Incentives and support are needed to convince carriers to focus on energy efficiency

Management teams of carriers recognised the large added value of the energy efficiency audit process

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EN16247 - 4

Transport Energy Audits

Conor Molloy

Chair CEN Transport Energy Mgmt WG

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Standards in Energy Management

I.S.393 Irish and other country

standards

I.S. 399 Energy Efficient Design

EN 16001

16247-1 Energy Audits

16247-4 Transport Audits

16247-5 Auditor Competence

ISO50001

50004 = Guidance for use

50002 = Auditing standard

50006 = M&V Measurement & verification standard

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ISO50001

Fastest selling standard since 9001:

0

1000

2000

3000

4000

5000

6000

7000

60 70 92 108 145 250 324 400 601 715 791

915 1106 1244 1420 1530

2200

3404 3563

4048 4111

4740 5055

6670 6912

Number of ISO 50001 certified sites worldwide

R. Peglau (German Federal Environment Agency)

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EN16247 - Energy Audits

Developed under Mandate M/479

“Standardisation in the field of energy audits (decision D139/C016)”

Multi-part standard:

1 - General requirements already published

2 (buildings) , 3 (processes), 4 (transport) and

5 (qualification of auditors)

at voting stage due out July 2014

Read EN 16247-1 Energy audits- General requirements with Part 4

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Status

As EN16247-4 was developed in response to a Mandate: there is a legal standstill on development of similar standards until EN16247-4 is published

Similarly prEN 16247-5:2014 Energy audits — Part 5: Competence of Energy Auditors

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Energy Audit

‘An energy audit is the universal first step for an organization, whatever its size or type, wanting to improve its energy efficiency/use.’

It is a systematic inspection and analysis of energy use and energy consumption of a system or organization with the objective of identifying energy flows and the potential for energy efficiency improvements

‘Audit’ is the normal term, but ‘assessment’ or ‘diagnostic’ may be more appropriate

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Energy audit

An energy, or fleet fuel audit typically costs 1-5% of annual energy spend, for a 10-20% return in identified annualised savings.

Key to savings is a structured approach and follow-up i.e. reviews after X days

(In Ireland its now every 90 days)

ISO50001, EnergyMAP are example approaches

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FUNDING & SAVINGS How have audits been funded?

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SEAI - www.seai.ie

National Energy Authority

‘AMA’ – advice mentoring & assessment

Focused on results i.e. savings

Voluntary scheme aimed at SME’s

3,000+ energy assessments 2007-2013

100+ transport fleet energy assessments

Average 10% saving in 3-12 months

Advertised now with 20% savings

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Costs and benefits

Typical return 10% savings in L/100km

That’s € 100,000+ in annual savings

Typical audit budget 1-5% of fuel spend

i.e. € 10,000-50,000 - often significantly less

Funding from energy suppliers:

Follow-up(s) quarterly follow-ups work well

Echoes of Energy Agreements at small scale

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IMPACTS OF ENERGY AUDITS on road transport carriers in Ireland

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Audit + Advice & training

39.6 L/100km

34.3 L/100km

30

31

32

33

34

35

36

37

38

39

40

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Jan/2012 Feb/2012 Mar/2012 Apr/2012 May/2012 Jun/2012 Jul/2012 Aug/2012 Sep/2012 Oct/2012

Weekly Fuel Cons.

Energy Audit

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Year on year sustained savings

33.02 32.60

32.41

28.48

25.00

27.00

29.00

31.00

33.00

35.00

37.00

39.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 vs. 2012 L/100km

2012 2013 Linear (2012) Linear (2013)

Energy Audit

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Added value - HGV

€4,116 €8,895 €5,651 €11,453 €25,267 €35,793 €36,567 €32,617 €38,964 €39,280 €29,316 €27,040

32.4 L/100km

28.5 L/100km

29.3 L/100km

26.0 L/100km

27.0 L/100km

28.0 L/100km

29.0 L/100km

30.0 L/100km

31.0 L/100km

32.0 L/100km

33.0 L/100km

€-

€5,000

€10,000

€15,000

€20,000

€25,000

€30,000

€35,000

€40,000

€45,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Fuel

Per

form

ance

in L

/10

0km

fo

r fl

eet

by

mo

nth

Savi

ngs

in E

uro

@ A

A Ir

elan

d (

reta

il) le

ss 2

3%

VA

T

Axis Title

Fuel Savings € vs L/100km - 2013

Saving € Performance

Energy Audit

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33.0 L/100km

28.7 L/100km

27.1 L/100km

800000

850000

900000

950000

1000000

1050000

1100000

20.0 L/100km

22.0 L/100km

24.0 L/100km

26.0 L/100km

28.0 L/100km

30.0 L/100km

32.0 L/100km

34.0 L/100km

Baseline 2008 2009 2010 2011 2012 2013

Fuel Performance PAX

Long run savings vs payload

Passengers increase by 18.4%; as fuel reduces 6.8% in L/100km

Energy Audit EnergyMAP training Telematics ISO50001 ECOdrive

Funding in whole or part by SEAI (‘07-11) and Enprova (‘12-’13)

www.matthews.ie

IPMVP

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Thank you

Merci Danke

Gracias

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Summary

Transport Energy Audits:

Reduce costs

Reduce emissions

Increase profit

Improve competitiveness

Securing jobs

Self financing – when used effectively

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Call for member state participants

Working group on building capacity

Auditors

Trainers

Tools

How will member states engage Dept. of Transport / DG Move?

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Contact information

Phone: +32(0)2 460 17 30

Website: www.altimedes.com

Email: info@altimedes.com

Erik van Agtmaal

Mobile: +32(0)476 345 117

Email: erik.van.agtmaal@altimedes.com

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www.aems.ie

conorm@authentic.ie

+353 87 255 4070