1 DoD’s Energy Challenge as Strategic Opportunity John Simpson, P.E. LEED AP Senior Fellow – Rocky Mountain Institute Sustainable Design Engineer US General Services Administration Office of Federal High-Performance Green Buildings www.rmi.org , www.gsa.gov jsimpson@rmi.org or john.simpson@gsa.gov Climate and Energy Symposium Johns Hopkins University Applied Physics Lab 23 March 2010 Copyright ⓒ 2010 Rocky Mountain Institute. All rights reserved. Internal .PDF reproduction licensed to US Navy 2 Energy: DoD’s soft underbelly...revealing a source of strategic advantage • The Department’s mission is at risk, and huge costs are being paid in blood, treasure, and lost combat effectiveness, due to: • Pervasive waste of energy in the battlespace • Fixed facilities’ 99+% dependence on the highly vulnerable electricity grid • Solutions are available to turn these handicaps into revolutionary gains in capability, at similar or lower capital cost and at far lower operating cost, without tradeoff or compromise •Adopting those means to achieve two vital new capabilities— Endurance and Resilience—can benefit enormously from harnessing the Navy’s and Marine Corps’ speed, focus, and innovation—most of all in mobility, the biggest fuel-user 3 Two new proposed capabilities (formerly known as ―strategic vectors‖): Endurance and Resilience Feb 08 Defense Science Board report More Fight—Less Fuel (www.acq.osd.mil/dsb/reports/ADA477619.pdf) urged that current strategic vectors (Speed, Stealth, Precision, Networking) be augmented by two more • Endurance • Resilience See ―DOD’s Energy Challenge as Strategic Opportunity,‖ in press, JFQ 2Q10 4 Is this trip necessary? One inefficient 5-ton a/c uses ~1 gal/h of genset fuel. The truck’s 68-barrel cargo can cool 120 uninsulated tents for 24 h. This 3-mile convoy invites attack. (Photos aren’t all in the same place.) • The ideal expeditionary force is bred to be like a Manx cat—no tail • In the example above, efficient and passive or renewable techniques do the the task (comfort) with no oil. No gensets, no convoys, no problem. Turn tail into trigger-pullers. Multiply force. Grow stronger by eating our own tail. • Current example: the $146M, 17-Mft2 sprayfoaming in Iraq, saving over half the air-conditioning energy, pays back in 67–74 days at $13.80/gal FBCF. Next steps: load-balancing, superefficient gensets & a/c; cooling without electricity? • We didn’t buy Endurance in the past: when designing everything that used energy in the battlespace, we assumed fuel logistics was free and invulnerable; fuel would automagically appear, both in theater and in wargames • Now we know better, so we’ll value fuel 1–2 orders of magnitude higher 5 The hidden costs of fuel logistics: the tail is eating the tooth • Logistics uses 1/2 of DoD’s personnel and 1/3 of DoD’s budget • ≥50% of tonnage moved when the Army deploys is fuel • Fuel/warfighter rose 2.6%/y for past 40 y, proj’d 1.5%/y to 2017 • Of ~$1M/warfighter-y cost in Afghanistan, ~$0.20–0.36M/y is fuel • Fully Burdened Cost of Fuel (not yet electricity too!) and associated energy KPPs are mandatory (NDAA 09) and helpful reminders, but FBCF omits the two biggest losses: lives and missions 6 Fully Burdened Cost of Fuel—though often 1–2 orders of magnitude higher than unburdened cost—is not only incomplete but understated Initial OSD guidance, though improving, still appears to omit: • full support pyramids • multipliers from in-theater to full rotational force strength • actual (not book) depreciation lives • full headcounts including borrowed and ?contractors • full Air Force and Navy lift costs to/from theater • possibly recursions on FBCF of the fuel that delivers fuel Some treat garrison costs as dilutive, not additive, to FBCF Some analysts average peacetime with wartime costs, or even assume a peacetime OPTEMPO DSB 08: ―FBCF is a wartime capability planning factor, not a peacetime cost estimate.‖ Aim: fully count all assets and activities that won’t be needed, or can be realigned, if a given gallon need no longer be delivered 7 Military energy efficiency brings five big benefits at once 1. Force protector 2. Force multiplier 3. Force enabler 4. Key to transformational realignment - from tail to tooth 5. Catalyst for leap-ahead fuel savings in the civilian sector Bottom line: fewer casualties, more effective forces, safer world 8 Prospecting for energy-saving winners: where to look • The most total fuel can be saved in aircraft: they use 73% of DoD’s oil • Savings in aerially refueled aircraft and forward-deployed ground forces save the most delivery cost and thus realignable support assets •The greatest gains in combat effectiveness will come from fuelefficient ground forces (land and vertical-lift platforms, land warriors, FOBs) • Savings downstream, near the speartip, save more fuel, because delivering 1 liter to Army speartip consumes ~1.4 extra liters in logistics; in expeditionary Afghanistan, that number may be ~7 (British Army est.) • So these are all worthy objectives—for different reasons—and they’re not mutually exclusive 9 Prospecting for energy-saving winners: design principles The biggest energy savings in any platform (anything that directly or indirectly uses energy in the battlespace) will: • Come from radical, clean-sheet redesign—not incrementalism • Optimize whole systems for multiple benefits, not isolated components for single benefits, to make big savings cheaper than small savings • Strongly emphasize major reductions in weight, then drag, then onboard energy burden—before improving energy supply or propulsion • Use downsizing and simplification of energy supply systems to pay for (or more) the savings in weight and drag, reducing direct capital cost • Not assume diminishing returns or tradeoffs; they are generally signals of poor design integration or a misstated design problem Not one of the 143 briefs to the DSB 08 study disclosed a tradeoff between energy efficiency and combat effectiveness or force protection Let’s look at some civilian examples, then their military implications Details: www.rmi.org/stanford, www.oilendgame.com, and www.10xE.org 10 11 A 2004 roadmap for eliminating oil use by the 2040s www.oilendgame.com 12 A realistic solution at an average cost of $15/bbl Petroleum product equivalent consumption (million barrels/day) Source: Lovins, Amory B. et al. Winning the Oil Endgame. 2005 Rocky Mountain Institute. www.oilendgame.com. Technical Annex 23. * Illustrating 10% substitution; 100%+ is feasible U.S. Oil Use and Import, 1950– 2035 government projection (extrapolated after 2025) end use efficiency @ $12/bbl plus supply substitution @ $18/bbl (max < $26/bbl) plus optional hydrogen from leftover saved natural gas and/or renewables* Efficiency first... Petroleum use Petroleum imports ... then substitution 13 Vehicles use 70% of U.S. oil, but integrating low mass and drag with advanced propulsion saves ~2/3 very cheaply 150 mi/h, 94 mpg 14 Each day, your car uses ~100× its weight in ancient plants. Where does that fuel energy go? 13% tractive load 0% 87% of the fuel energy never reaches the wheels 20% Engine Fuel Loss Energy Idle Loss 40% 80% 60% Aerodynamic drag Rolling resistance Acceleration, then braking resistance 100% Driveline loss Accessory loss • 6 % accelerates the car, ~0.3% moves the driver • At least two-thirds of the fuel use is caused by weight • Each unit of energy saved at the wheels saves ~7-8 units of fuel in the tanks (~3-4 w/ a hybrid) So first make the car radically lighter-weight- then decompound 15 its mass! ―Institutional Acupuncture‖ –– implementation is underway • RMI’s 3-year, $4-million effort has led and consolidated shifts Need to shift strategy & investment in six sectors Aviation Heavy Trucks • Alan Mulally’s move from Boeing to Ford • Eagerness from workers and dealers Military Fuels Finance • Schumpeterian ―creative destruction‖ • Emerging prospects of leapfrogs Cars and light trucks • ―Feebate‖ promotion 16 ―We must leave oil before it leaves us.‖ —Fatih Birol, Chief Economist, International Energy Agency, 2008 17 18 1989 U.S. electricity-saving potential: ~75% at an average technical cost ~1¢/kWh (2008 $) 19 Lovins House, Old Snowmass, Colorado, 1984 –47˚F with no heating/cooling equipment, lower construction cost mid-1980s savings: ~99% of space- and water-heating energy, ~90% of household electricity, 10month payback 20 Inside, a tropical environment with 32 banana crops, no furnace 21 Integrative design in retrofitting the Empire State Building 22 Lighting& Plugs Empire State Building: integrative retrofit design $8.7 M minus$17.4 M VAV AHUs DDC Controls Radiative Barrier Windows $2.7 M Chiller Plant Retrofit $2.4 M $5.6 M $4.4 M Annual Savings $4 M 23 Cost Conventionally, saving energy costs more and more Savings 24 Cost Conventionally, saving energy costs more and more Savings 25 Cost But integrative design can achieve expanding returns Savings 26 World’s electricity usage Worlds Electricity Usage 27 World’s electricity usage Worlds Electricity Usage 60% Motors 28 World’s electricity usage Worlds Electricity Usage 30% Pumps and Fans 29 Saving electricity in industry: motors, pumps, and pipes 30 69% less pumping power, lower capital cost 31 Energy efficiency: start downstream Coal Energy Input Power Plant Grid Motor & Drivetrain Pump & Throttle Pipe Energy Output 100 Units -70% -9% -12% -55% -20% 10 Units 32 Energy efficiency: start downstream 100 Units 10 Units 33 Energy efficiency: start downstream 50 Units 5 Units 34 Examples from RMI’s industrial practice (>$30b of facilities) 35 Electric shock: low-/no-carbon decentralized sources are rapidly eclipsing central stations; renewables got 56% of 2008 global power investment Wind 36 The global power market is shifting rapidly to distributed resources Output additions from nuclear fell behind PVs’ since 2007 and may never catch37up RMI is envisioning the shape of, stability of, and transition path to an all-renewable, all-distributed electricity system...starting today Current System Energy Efficiency & Renewables Next Generation Utility Energy Efficiency & Renewables Renewables & Distributed Generation Natural Gas & Oil EDV & DR Coal and Nuclear Coal and Nuclear EDV = electric drive vehicles DR = demand response 38 Two key policy innovations 1. Feebates (fee + rebate) for efficient cars • Revenue-neutral, size-neutral, more profitable for automakers • More effective than fuel taxes or efficiency standards • Highly successful in France, now proposed for 20 other products; could be applied to new buildings 2. Decoupling and shared savings for electricity & gas • Aligns utility’s interests with customers’ interests • Long successful in 2 US states; spreading: adopted for electricity (gas) in 8 (18) states, pending in 11 (5) 39 Five implementation myths 1. ―It isn’t happening—why not?‖ 2. ―Solutions must await global agreement‖ 3. ―Pricing carbon is the essential first step‖ 4. ―Public policy = taxes, subsidies, and mandates‖ 5. ―Public policy is the only, or the strongest, key‖ 40 Design to win the future, NOT perpetuate the past New design space Present design space Define the end point Development targets Risk management Market introduction Economic insight Customer relationships Technology introduction Integration payoff areas First production variant Foundation Platform 41 Only puny secrets need protection. Big discoveries are protected by public incredulity. —Marshall McLuhan 42