INDUSTRIAL ENERGY
MANAGEMENT
APPROACH and BUSINESS
CASE
Robert Hitch, P.E.
Georgia Institute of Technology
Sponsored by Oak Ridge National Laboratory
1 | Industrial Energy Efficiency and Renewable Energy
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Energy Use Must Be Managed
• User lack of control of prices, politics,
or the global economy.
• A management process is needed to
meet business goals and objectives.
• ISO 50001 standard offers a
mechanism to manage energy.
− Plan-Do-Check-Act framework.
− Spans most sectors of the
economy
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Primary Energy Use by Industry
Energy Consumption for Kazakhstan Industrial Sector –
666TBtu (24MTCE)
7% Mining and Quarrying
3% ChemicalPetrochemical
17% Iron & steel
1% Non-metalic minerals
2% Food & tobacco
3% Machinery
ISO 50001 targets
energy management in:
• industry
• commercial buildings
and
• the government
6% Non-ferrous metals
61% Other/non-specified
The impacts could be
substantial.
Kazakhstan 2007, data source International Energy Agency online, August 2010
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Why an Energy Management
System?
An energy management system solution.
• The most common way to achieve energy efficiency
• The Plan-Do-Check-Act model of management systems
has been proven.
• It integrates energy issues into existing management
systems for continual improvement.
• Applies to industrial, commercial, institutional, and
transportation sectors
• Helps meet resource use efficiency targets
Benefits of an ISO Standard:
• Compatible with other ISO management system
standards.
• Multi-national companies may use one system in all of
their facilities.
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Supportive Policies for National
Energy Management Standards
•
•
In countries with existing standards:
– Voluntary energy management
standards
– Target large industrial plants
– Technical assistance is offered
– Case studies publicize benefits
– Recognition for outstanding performers
In addition, most countries:
– Offer financial incentives for compliance
– Provide training
– Provide networking
– Several countries offer system
optimization training
5 | Industrial Energy Efficiency and Renewable Energy
Kazakhstan is a
member of TC242
and 70 other ISO
standards
Committee for Technical
Regulation and Metrology
email: dyussikeyeva_l@
memst.kz
Web: www.memst.kz
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Increased International Focus on
Energy Efficiency
• China plans to reduce energy use by 20% per
unit of GDP below 2005 levels by 2010
• G-8 meetings now include energy efficiency as
a major topic.
• The International Energy Agency recognizes
energy efficiency as a primary source of shortterm GHG emission reductions.
• The U.N. Industrial Development Organization
(UNIDO) is promoting systems energy
efficiency and energy management standards
for both developed and developing nations.
• Through Partnerships, the U.S.,
and several other countries are
promoting greater industrial energy efficiency.
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So ISO Gets Involved
International Organization for
Standardization (ISO) is
initiating a broad portfolio of
initiatives to promote energy
efficiency,
ISO 50001,
ISO CSC /Strategic Task
Force on Energy
Efficiency & Renewable
Energy Sources
7 | Industrial Energy Efficiency and Renewable Energy
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History of ISO 50001
• In March 2007, UNIDO hosted the first meeting proposing an energy
management standard. The ISO Secretariat accepted the UNIDO request.
• UNIDO initiated a program to foster coordination among various nations to
develop an international standard. The preparatory meeting was in Beijing in
April 2008.
• PC 242 was created to guide the development of ISO 50001.
− 53 participating nations worldwide [includes KAZMEMST]
− Four-nation leadership: U.S., China, Brazil, U.K. UNIDO has liaison status.
http://www.iso.org/iso/iso_technical_committee?commid=558632
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ISO Energy Management Standard
ISO 50001 will establish a framework for industrial
plants, commercial facilities, and organizations to
manage energy.
Potential impacts:
• Managing energy more effectively (10 to 30%, and greater).
• May influence up to 60% of the world’s energy use.
Adoption of ISO 50001 will:
• Reduce energy costs
• Make manufacturing more sustainable
• Create demand along the manufacturing supply chain
• Drive National carbon reduction programs
• Improve International climate agreements
Status of ISO 50001:
• Under development by ISO
Project Committee 242;
52 countries participating
• Draft International Standard
released April 2010
• Ready for publication by
mid-2011.
Applies to industry, commercial buildings, and transportation fleets
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Scope of ISO 50001
This International Standard requires an organization to:
• Establish, implement, maintain and improve an energy management system,
• Take a systematic approach
• Achieve continual improvement of energy performance, energy efficiency
and energy conservation.
This International Standard specifies requirements for:
• energy supply, uses and consumption
• measurement, documentation and reporting,
• design and procurement practices for energy using equipment, systems,
processes, and personnel.
• applies to all factors affecting energy use, which can be monitored and
influenced by the organization.
• does not prescribe specific performance criteria with respect to energy
• designed to be used independently, but it can be aligned or integrated with
other management systems. It is applicable to all organizations.
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Scope of ISO 50001
• Enables a systematic achievement of continual improvement in energy
performance, energy efficiency, and energy conservation.
• Imposes requirements on energy supply and consumption:
− Measurement
− Documentation and reporting
− Design and procurement practices for
energy-using equipment and systems
− Processes and personnel
• Applies to those factors that can be monitored and influenced by the
organization
• Does not prescribe specific performance criteria with respect to energy.
• Designed to be used independently, yet can be aligned or integrated with
other management systems (e.g., ISO 9001 and 14001). Applicable to all
organizations.
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ISO 50001: Moving Forward
• Foster wider use of organizational
policies; specify energy efficiency
in the supply chain
• A tool to move the market toward
greater energy efficiency
• Use ISO 50001 in a greater
variety of organizations and
businesses: industrial,
commercial, public, transportation,
etc.
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Challenges Ahead
• It is hard to start something new
• Management support is critical
• A baseline needs to be established for
benchmarking
• This is a new way of managing and evaluating
their business
• Infrastructure may not be available yet
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Business Benefits of Implementing an
Energy Management System
An energy management system
can achieve the following:
• Establish a baseline of energy use and
better energy data
• Active management
• Reduce environmental impact
• Continual improvement in energy
intensity
• Document savings for internal and
potentially external use (e.g.,
emissions credits)
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Case Study
• A pilot
implementation
program for EnMS,
Save Energy Now,
and Superior Energy
Performance
Leaders
• Five facilities in
Texas
15 | Industrial Energy Efficiency and Renewable Energy
• Cook Composites
and Polymers Co.
Houston Plant
• Freescale
Semiconductor Inc.
Oak Hill Plant
• Frito-Lay San
Antonio Plant
• Owens Corning
Waxahachie Plant
• Dow / Union
Carbide’s Texas City
Operations
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Industry Progression toward Higher
Energy Performance
Provides resources to companies (usually multiple
facilities) that pledge to reduce their energy
intensity 25% in 10 years.
Guidance and tools can also help
Recognition
plants and companies gain ISO
and SEP certification.
ISO 50001 is a
foundational tool that
any organization can
use to manage energy.
ISO 50001
Components in place:
• Baseline
• Policy
• Plan
• Team/Leader
Superior Energy
Performance
Single facility ISO 50001
conformance with validated
energy performance improvement
ISO 50001
•
•
•
•
16 | Industrial Energy Efficiency and Renewable Energy
Plan
Do
Check
Act
Tech. Assist.
Training
Assessments
Improved Energy Management
Save Energy Now LEADER Program
Tools
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General Benefits of EnMS at
Implementing companies
• EnPI Tool aided facilities in statistical modeling
of energy consumption.
• Increased involvement in energy management.
• Facilitated a better understanding of current
plant processes that relate to energy (such as
energy purchasing, design, calibration, etc).
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Specific Benefits to Freescale
• Identified savings opportunities of 1.1 million KWH/yr for
pumping/chilled water
• Identified savings opportunities of 0.4 million KWH/yr for
compressed air
• Identified opportunities for improvement in reliability of
the compressed air system
Transferring program
knowledge to second facility
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Specific Benefits to Dow
• Identified opportunities to recover
heat from condensate and to purchase steam at a
higher temperature
• Validated the currently energy efficiency project list
• Identified over $6,000,000 in energy saving opportunities
Dow Energy Systems and IPA facilities are piloting the
program with rollout expected for the remainder of the
facility.
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Specific Benefits to Owens Corning
• Assessments validated the
previously determined course of action.
• Assessments served as a training opportunity for energy
engineers throughout the company.
Rollout of the program is
expected within other
facilities in the division,
and eventually further
divisions within the
company.
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Specific Benefits to Frito Lay
• Compressed air energy assessment identified
opportunities equal to 51% of operating costs for
compressed air system.
• Process heating energy assessment identified
opportunities equal to 5% of operating costs for process
heating systems.
Sharing best practices
learned in implementation
with its other North
American manufacturing
facilities
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Specific Benefits to CCP
• Assessments identified opportunities
totaling 30 percent of system natural gas use.
• Short term actions and low cost investments have been
implemented resulting in savings of $40,000.
CCP is introducing other
CCP sites, not
participating in the pilot
project, to energy
management system
concepts.
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Contact Information
• Georgia Institute of
Technology
• Robert Hitch, P.E.
• rjhitch@gatech.edu
23 | Industrial Energy Efficiency and Renewable Energy
• Oak Ridge National
Laboratory
• Michaela Martin, P.E.
• martinma@ornl.gov
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