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Initiating an EnergyManagement Program

Timothy Dantoin

Senior Engineer

July 19, 2011

Energize Missouri IndustryEnergy Efficiency Forum

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400

450

500

Energy in Perspective

Projected Worldwide Consumption

OECD Non-OECD

QuadrillionBTU 6x

458

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Energy | Environment | National Security | Health | Critical Infrastructure

200

250

300

2007 2015 2020 2025 2030 2035

Source: EIA International Energy Outlook 2010

14 %280

245

249

1,000,000,000,000,000

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Cost of New Coal Power Plants

New pulverized coal capital costs

1,680

1,667

2,254

100

333

603

1,875

2,083

2,500

Black & Veatch (2006)

Big Stone II Original (SD)

Cliffside--Duke Revised (NC)

Oak Creek (WI)

Springfield (IL)

Big Stone II Revised (SD)

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Energy | Environment | National Security | Health | Critical Infrastructure

1,280

1,400

1,250

1,467

1,500

1,504

,

0 500 1,000 1,500 2,000 2,500 3,000

Cliffside--Duke Original (NC)

EIA (AEO 2006)

EPRI (2004)

Prairie State (IL)

EPA (2003)

Weston 4 (WI)

$/kW

Generation

Transmission

Total

Source: American Council for Energy Efficient Economy (ACEEE)Source: American Council for Energy Efficient Economy (ACEEE)

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Carbon Footprint

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The Market Place

Pepsi Co

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Energy | Environment | National Security | Health | Critical Infrastructure

United Kingdom United States

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Efficiency as a Resource

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Energy | Environment | National Security | Health | Critical Infrastructure

Source: Alliance to Save Energy, August 2010

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Understand Energy Uses

Quantify Opportunities

Generate EE IdeasPlanning

Communication

A purely technical focus goes only so far

Energy Management

Continual Improvement Approach

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Energy | Environment | National Security | Health | Critical Infrastructure

Select Projects

Provide Justification

Gain Approval

Implement Projects to Save $$

Awareness

Goals

Support

Motivation

Performance Tracking

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Characteristics of Effective Programs

Strong leadership & resource allocation

Corporate culture that recognizes value of EE

-m rin in rn l n r ll i n

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Energy assessment of all capital projects

On the fly production adjustments for EE

Source: Kamen, James A. 2002. Energy Management Practices Provide

Manufacturing Advantage. Energy User News.

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Barriers to Effective Programs

Other Priorities (quality, safety, production)

Energy Taken for Granted (It worksdont fix it)

Lack of Data (about energy use and drivers)

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Narrowly Focused (talk to the facilities guy)

Lack of Awareness (about opportunities & methods)

Insufficient Resources (finances & staff time)

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in Theory

Management Commitment

Energy Champion

Energy Policy

in Practice

Management Concern

Another Hat for Someone

Nice Words No Teeth

The Ideal Meets Reality

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Energy | Environment | National Security | Health | Critical Infrastructure

Energy Team Measure & Monitor

Report & Communicate

Set Energy Savings Goal

Implement Projects

Another &*#@ Meeting ! !No Payback on Sub-Meters

Monthly Actual vs. Budget

Based on What ?

No Support

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Practical Energy Management

Turnkey package of savings calculators,

A continual improvement strategy compatible with

Six-Sigma, Lean Mfg, ISO 14001, ISO 50001, etc.

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organizing tools & management strategies

Integrates management & technical aspects of

energy management into existing business practices

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PEM Layout

Management Plan

Facility Profile

Project Prioritization

Project Management

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Energy | Environment | National Security | Health | Critical Infrastructure

Energy Use Profile

Best Practices

Performance Indicators

Communication & Reporting

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Getting Started

Management Plan Project Prioritization

An or anized A systematic method for

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Energy | Environment | National Security | Health | Critical Infrastructure

approach tocontinually improving

your energymanagement program

tracking and rankingindividual projects andsummarizing overallenergy savings and

environmental impacts

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Management Plan = Gap Analysis

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U.S. EPAs Energy Star Program Provides program and facility level assessments http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index

U.S. Dept of Energy SEN Leaders Tool

Gap Analysis Tools

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Energy | Environment | National Security | Health | Critical Infrastructure

Provides assessment against ISO 50001 (March 2011)

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Facility Profile

Energy in Business Context

NaturalGas

Total Btus

$0.52Water $ p Lbs Resin

$5.29Tot Energy $ p Lbs Resin

0.339Gas MMBtu p Lbs Resin

$2.53Gas $ p Lbs Resin0.180Electric MMBtu p Lbs Resin

$2.76Electric $ p Lbs Resin

408,858Lbs Resin

(Annualized)

2006Key Performance Indicators

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ElectricityPropane

No.2 Oil

3.14%% Increase in Profits with 5%

Reduction in Energy Costs

62.75%Energy as % of Profits

$3,450,000Annual Profits

6.46%Energy as % TF Costs

$33,500,000Total Facility Costs

14.43%Energy as % Oper. Costs

$15,000,000Operating Costs

$2,164,782Total Energy Cost

(Annualized)2006Business Indicators

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Electrical

MMBtuChiller #1Chiller #2

Equipment Profile

Estimating Energy Use

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Energy | Environment | National Security | Health | Critical Infrastructure

erLightingComp Air

OfficeOther

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e.g. Free Cooling Project

Save 2.5%

Chiller #1

ElectricalMMBtu

Best Practices

Finding Opportunities

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Chiller #3LightingComp AirOfficeOther

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Project Prioritization Tool(right side)

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Project Prioritization Tool(left side)

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Variable LoadTotal

Energy Performance Indicators

y = mx + b

m = energy per variable unit

b = base load

R2 = correlation coefficient

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Base Load

Production Level orHeating D.D.

nergyUse

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y = 0.3257x + 258748

R2 = 0.8449

500,000

550,000

600,000650,000

700,000

750,000kWh

EnPI Example

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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

400,000

450,000

600,000 800,000 1,000,000 1,200,000 1,400,000Extrusion Output (Lbs)

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Communication & Reporting

Engage senior decision-makers

Create energy awareness among employees

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Stimulate ideas for energy efficiency projects

Generate support for energy efforts

Ultimately Goaldemonstrate your effectiveness

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??? ISO 50001 / SEP ???

Practical Energy Management

Senior Managementchange concern to commitment

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Energy | Environment | National Security | Health | Critical Infrastructure

quantify, track and report

on energy savingopportunities

turns gap analysis into

specific actions forimprovement

Effective Energy TeamIt all starts here

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Characteristics of Effective Teams

Develop clear action plans that are regularly updated

Address technical & management aspects of energy

Act as opportunities arise

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Measure existing conditions & impact of change

Engage other employees as needed

Have effective meetings

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Effective Team Meetings

Meet frequently for no more than 1 hour

Set and keep a fixed day and time (e.g. 2nd Tuesday)

Maintain meeting pace (i.e. dont dwell on one subject)

Members define next project task & due date

- -

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Energy | Environment | National Security | Health | Critical Infrastructure

.

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

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Team Meeting Minutes

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PEM - Keys to Success

Senior Management Concern Commitment

Recognize realitys limitations (time & money)

Efficient meetings make for Effective Teams

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Track & Communicate re: Energy Activities

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Half-day Workshop 50 sessions since 2003

Over 1,000 participants

Hands-on implementation series

Delivering PEM

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Energy | Environment | National Security | Health | Critical Infrastructure

Provides implementation coaching

On-site training customized to jump-start

or enhance corporate energy management efforts

Ongoing energy management support and energy teamfacilitation

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PEM as Utility Customer Service

Provides customers with a methodical, realistic frameworkfor energy (and GHG) management.

An active energy team improves customers energyefficiency performance.

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Utility account manager participation in energy teamenhances customer relationship.

Better relationship improves customer awareness and

understanding of utility pricing and programs.

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Satisfied PEM Users

We are light years ahead of where we would be without PEM.With limited staff time, it gives us the vision and capability to

manage a comprehensive energy program, not just pick lowhanging fruit.

- Corporate Services Coordinator

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Energy | Environment | National Security | Health | Critical Infrastructure

PEM has certainly opened doors with mycustomers. It allows me to be a proactive resourcerather than just a messenger of the negative stuff.

- Utility Account Manager

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Contact Information

Tim Dantoin, Senior Engineer

Science Applications International Corp

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Cell: 920-366-3744Email: dantoint@saic.com