Energy Management Potential
in the Alberta Industrial and
Manufacturing Sectors
Proposed Energy Benchmarking and Potentials Study
About this Presentation
• Experience in Other Provinces:
– Drivers in other provinces
• Overview of three key project streams:
– Benchmarking of energy use and
implementation of best practices
– Energy savings potential
– Implementation of opportunities
• Value proposition for Alberta
Main Study Drivers in NB, NS and ON
• Increase competitiveness of industrial
sector
• Identify opportunities for cost reduction
and increased energy efficiency
• Define scale of potential savings in
industrial energy efficiency savings and
GHG in province
• Provide necessary information for utilities
and government to develop energy
efficiency programs and platforms
Overview of Project Streams
Energy Management
STREAM 1:
Benchmarking: Energy
Use, and Technical and
Management Best
Practices
Define Current Market
Penetration of Best
Practices and
Technologies
STREAM 2:
Energy Management
Potential Analysis
Identify Opportunities
STREAM 3:
Increase Adoption of
Technologies and Best
Practices
STREAM 1: Energy Benchmarking
• Define current energy efficiency
performance
• Define baseline performance to measure
future performance against
• A continuous improvement tool
• Compare plant performance with rest of
industry’s performance
• Identifies areas for potential improvement
The CME/Stantec/Marbek
Benchmarking Approach
• Best practice and field tested
• Three pronged approach
– Energy use performance
– Technical best practices
– Management best practices
• It tells you:
– How you are doing
– Why you are where you are
Bottom Up End-Use Analysis
Using Robust Excel Model
Steam
Electricity
Wind -Power
Hydro-electric
Co-generation
Biomass
Self Generation
RPP
Compressors
Refrigeration
Motors
Natural
Gas
Propane
Fans & Blowers
Conveyors
Pumps
Boilers
Furnaces
Comfort
Heat
Process
Lighting
Engines
Survey Inputs are Mapped into
End-Uses for Each Plant
Technical Best Practice Analysis
Penetration of Applicable Technical Best Practices
by Energy End-use Category
100%
90%
Average % Implemented of
Applicable Technical Best Practices
80%
70%
70%
67%
65%
58%
60%
54%
50%
40%
42%
40%
36%
30%
20%
10%
0%
Process Process Direct Heat Indirect Heat
Process Cooling
Process Motors &
Motor-driven
Process Other
Energy End-use Category
Comfort
System-level
Overall %
Impl of Appl
Tech BPs
Management Best Practice Analysis
Energy Management Scores by Category
100%
Average Energy Management Score
(% of maximum achievable)
90%
80%
74%
70%
62%
60%
50%
56%
56%
58%
53%
46%
40%
30%
20%
10%
0%
Energy Policy Organisation
Skills &
Knowledge
Information
Systems
Marketing &
Comm.
Energy Management Category
Planning &
Investment
Overall Avg
Correlation has
shown in other
studies that a
5% performance
improvement
possible for
every 20%
improvement in
MBP score.
STREAM 2: Energy Management
Potentials
Typically 4 key outputs for jurisdiction (eg. province)
– Baseline energy use profile
– Reference case projection (specified
analysis period)
– Economic energy management potential
– Achievable (market) energy management
potential
Identify economic and achievable potential for
energy savings (provincial and sector)
Stream 3: Increase Adoption of
Best Practices and Technologies
• Develop strategies and mechanisms to advance
implementation of identified opportunities
• Specific and customized for jurisdiction
• Examples:
– NB: Program concepts leading to design and delivery of
Industrial Energy Efficiency Program (Efficiency NB)
– NS: Design and deliver outreach events (CME),
information for industrial program (NS Power)
– ON: Framework for integrated programs and platforms
delivered by CME, utilities and government
Summary of Key Outputs
• Public Domain
– Province wide energy benchmarking results
(by sector if sample size large enough)
– Province and sector specific energy
management potential results
• Confidential
– Plant/company specific reports
Trends in Alberta
Federal Regulatory Framework for Industrial Air
Emissions: short-term emission intensity
reduction targets for GHG emissions (come into
force in 2010)
Some sectors are energy and GHG intensive,
e.g.: energy use in Canada’s upstream oil and
gas industry increased by 89% over 1990-2004;
an increase in total energy intensity of 18%
(1.4% per year).
Structural shift towards more energy-intensive
oil-sands and the increased energy needs
associated with extracting resources from
depleted conventional reserves.
Energy Benchmarking in Canada
•
•
•
•
Refineries (2001 survey-5 plants in Alta)
Open Pit Mining (based on 2000 data)
Cement
All industry: New Brunswick, Nova
Scotia, Ontario (in progress)
• Other sectors funded by OEE
Value Proposition for
Utilities and Government
• Robust empirical foundation for policy
and program development
• Prioritize targeting of key industry energy
end-uses and energy efficiency
measures for investments
Value Proposition for Industry
• Supports Management Commitment
– A quality management practice that encourages
continuous improvement.
• Supports Planning and Action. Participating
companies receive:
– a confidential evaluation of their company/plant
management & technical practices,
– comparison of their corporate and facility energy
management performance to other facilities in their
sector
– recommendations on where they should be
focusing efforts for the best economic return
in energy savings
Study Coverage
• In-depth analysis to cover about 70%
of industrial energy use - balance
based on extrapolation
• All fuels (including renewables and alternatives)
• Typically:
– 7 to 10 sub-sectors
– 15 to 20 remote surveys per sector
– 8 to 10 on-site assessments per sector
Study Roll Out: Energy Benchmarking
• Recruitment of companies/plants
• Design and apply remote survey tool
• Design and apply on-site
assessment protocol
• High degree of oversight to ensure QC
• Analyze data
• Generate benchmark outputs
Study Roll Out: EM Potentials
• Determine base year and study period
• Acquire utility sales data by NAICS code
• Build base year, end-use profile of
energy use
• Construct reference case and savings
scenarios.
Funding Required
• Estimated: $800 K to $ 1,200 K
• 12 - 18 months
• Estimated 70 - 90 on-site assessments
and 150 - 200 remote assessments