Energy Efficiency Efficiency is ABB’s Business Soaring energy prices and concern about climate change have propelled energy efficiency to the top of the agenda in the boardroom, in public debate and in public policy. Only 20 percent of available energy creates economic value. The rest is lost in the process of burning fuels, transmitting electricity and inefficient end use. As the global leader in power transmission and distribution technology and a leading automation company, ABB can help achieve energy savings across the energy value chain. ABB has solutions for raising efficiency from the wellhead to the plug. Technologies pioneered by ABB enhance mining productivity, cut transportation emissions, optimize power plant operations, reduce losses in electricity transmission, and in a vast array of industry processes. Taken together, ABB technologies can improve efficiency by 20 to 30 percent across the entire electricity value chain. In industries like automotive, building, chemicals, consumer, life sciences, manufacturing, marine, metals, minerals, pulp and paper, petroleum, transportation and utilities, ABB’s energy efficient products, systems and services help customers produce and deliver more for each unit of energy they use. 2 ABB, Power and Productivity for a Better World Motors and Variable Speed Drives ■ ABB is the world’s largest maker of electric motors and motor control devices known as variable speed drives. Industrial motors use about 30 percent of all the electricity produced in the world, but fewer than 10 percent are equipped with the most efficient speed control that exists. As a result, the motors are run at full speed and then throttled to reduce output ­­– similar to driving a car with one foot on the accelerator and the other on the brake. ABB calculates that its variable speed drives currently installed globally eliminate more than 100 million tons of greenhouse gas emissions annually, roughly equivalent to the emissions of 41 million cars on the streets of Europe. ABB’s variable speed drives can save 20-70 percent on energy, depending on the application. ■ ABB’s high efficiency motors deliver big cost savings in addition to energy savings because, irrespective of size, motors normally consume their own capital cost in energy after just 30 days of continuous operation. Two of the most important objectives confronting industry (and indeed society as a whole are financial success and environmental responsibility – goals that are often perceived to be in contradiction. When it comes to energy however, whether electric or fuel, and whether in exploration, generation, distribution or usage, saved resources really do translate into cost savings. While ABB’s biggest contribution to saving energy comes from its focus on designing products that help customers use energy more efficiently, the company has a program for reducing its own energy use that will both cut costs and lower its impact on the environment. ABB is also promoting energy efficiency as a member of organizations such as the World Business Council for Sustainable Development, which are committed to fostering economic growth and development while limiting emissions of greenhouse gases. 3 ABB, Power and Productivity for a Better World Did you know…? 4 ■ ABB is the world’s largest maker of variable speed drives, which help cut energy consumption by up to 70 percent by adjusting their speed to the required performance. Today, only about 10% of industrial motors are fitted with variable speed drives, so the untapped potential energy savings are enormous. ■ ABB is the market leader for key energy-saving technologies in emerging economies, where the energy-efficiency potential is the greatest. In China and India, ABB is the market leader for power transmission and distribution technology and the leading supplier to the emerging industrial sectors. ■ ABB pioneered the “life cycle assessment,” a cradle-to-grave evaluation of the environmental impact of a given product. LCA looks, among other things, at how much energy it takes to produce, use, maintain and dispose of the given piece of equipment. The results are published in Environmental Product Declarations (EPD), which have become a de facto requirement for doing business in the EU and elsewhere. ■ ABB is the world’s largest supplier of the electrical heart of wind turbines. The company has a global market share of 25 percent for generators and 35 percent for low- and medium-voltage equipment. ■ ABB was instrumental in helping to draft the U.S. Department of Energy’s new efficiency requirements for distribution transformers, which will impact upwards of 20 million such devices working on the U.S. grid today. The cumulative energy savings over the course of the 28-year upgrade plan will be equivalent to the output of six 400MW power plants. ABB, Power and Productivity for a Better World ABB in Action Drives: UK bank turns efficiency into ‘cool’ cash The average business spends about $22,000 in air conditioning costs per year. Coutts & Co., a London-based private bank, cut its energy bill for running the air-conditioning system by 90 percent after installing four variable speed drives from ABB. One 4kW, one 22kW and two 75kW drives are now driving the pumps for chilled, hot and condenser water, as well as medium pressure water for the boiler room. Annual cost savings are estimated at $170,000. Motors: Vail Resorts recycle energy from top to bottom The ski areas of Breckenridge and Sugarbush are separated by thousands of miles, but they share the distinction of being the first resorts in the US to install AC motors on their chairlift systems. Supplied by ABB and equipped with variable speed drives, the lifts actually recycle energy during braking and downloading that would otherwise be lost. The highly efficient systems save the resort owners as much as 40% over alternative motors, and can deliver full power to the lifts even in 80% brownout conditions. Ship Propulsion: ABB’s Azipod delivers 20% fuel savings for ShinNihonkai Ferry Fitted outside the vessel, ABB’s Azipod can revolve 360 degrees and functions as a combined rudder and motor. The elimination of a driveshaft increases available space inside the ship while also reducing noise and vibration. In 2004, ShinNihonkai Ferry, Japan’s leading ferry operator, introduced two new vessels on two of its popular ferry routes. The Azipod-equipped ships offered 15 percent more transportation capacity, but the big news came in fuel efficiency. After several months of data collection, the company reported fuel savings of 20 percent over comparable vessels on the same routes. As a passenger craft, the reduced noise and vibration were added benefits. 5 ABB, Power and Productivity for a Better World ABB in Action continued Offshore Power: BP’s Valhall platform gets a ‘lifeline’ Oil and gas platforms are like cities in the middle of the ocean, complete with their own supplies of electricity generated on-site. A new trend in offshore is to replace the gas turbines and other equipment on the platform with an HVDC Light system to bring in power from shore. ABB is building such a system for BP’s Valhall platform in the North Sea. Due to be commissioned next year, the cable will deliver 78 MW of power from the Norwegian mainland, over 180 miles away. The elimination of on-site generation will reduce weight and footprint on the platform, cut maintenance costs by $7 million per year, and allow the gas that would have been used for the turbines to be sold to customers. It will also eliminate 300,000 tons of CO2 emissions every year, equivalent to taking around 75,000 cars off the road. German plant recycles waste into clean heat and power ABB is supplying a complete power and automation solution for a new waste-to-energy power plant, the largest of its kind in Germany. The plant will generate clean heat and power for one of the biggest chemical and pharmaceutical parks in Europe. Process Control: Expert Optimizer™ wins efficiency award ABB’s Expert Optimizer software was selected by judges from Global Cement and Global Fuels magazines in February 2008 as the “most innovative technology for electrical energy efficiency.” Expert Optimizer allows cement plants to reduce energy consumption by optimizing equipment such as mills, kilns and coolers, and implementing optimal schedules for the most efficient use of assets such as the grinding plant. Monitoring of energy consumption is carried out by the system in conjunction with ABB’s Knowledge Manager solution. Cement is one of the most energy-intensive industries, accounting for about 4 percent of global CO2 emissions. ABB’s technology can reduce the energy consumption of cement plants by about 5 percent simply by improving control over various plant processes. 6 ABB, Power and Productivity for a Better World Ask an Expert Greg Scheu (pronounced shy) Senior Vice President and head of Power Products division, North America Greg was appointed head of ABB’s Power Products division for North America in February 2008. He has been a member of the company’s Executive Committee in North America since 2002. Prior to this appointment, Greg served as the president of ABB’s Automation Products division in North America. He previously served as Global Senior Vice President of eBusiness for ABB Ltd at the company’s global headquarters in Zurich. Prior to joining ABB, Greg held positions at Westinghouse Electric Corporation, Rockwell Automation, and Source Alliance LLC, an online electrical and automation equipment supplier. Greg earned a bachelor’s degree in electrical engineering from the University of Delaware. He serves on the Industrial Control board of the National Electrical Manufacturers Association and on the board of North Carolina State University’s BTE Center. 7 ABB, Power and Productivity for a Better World Ask an Expert Rick Hepperla Regional Division Manager Automation Products, ABB North America Rick is responsible for leading the Automation Products division in North America. He serves as a member of both the North America Executive Committee and the Global AP Division management team. His responsibilities include the strategic development and continued, profitable growth of Automation Products in the region. Rick joined ABB in December, 2003 as Vice President and General Manager for ABB’s Low Voltage Drives business in the USA. He has over 26 years of experience in the automation products market. Prior to joining ABB, Rick spent 17 years with Rockwell Automation, a leading global automation company based in North America, and five years with MagneTek, Inc., a North America producer of motors, machines and drives. During his tenure at ABB Low Voltage Drives, Rick successfully orchestrated a turnaround of the business that resulted in doubling its revenue from 2004 to 2007. Rick holds a Bachelor of Science Degree in Mechanical Engineering from Marquette University, Milwaukee, Wisconsin. He is based in New Berlin, Wisconsin. Media Contact: Bob Fesmire, Media Relations Manager, ABB Inc. Ph: 408-857-1394 E-mail: bob.fesmire@us.abb.com 8 ABB, Power and Productivity for a Better World