Energy and Water Efficiency Management Practice Guide

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1 Carbonproof Energy and Water Efficiency Management Practice Guide The material provided in this guide has been produced in conjunction with our partner Energetics Pty Ltd Energetics Pty Ltd and AgriFood Skills Australia. All rights reserved This guide has been produced with the assistance of funding provided by the Commonwealth Government through the Department of Education, Employment and Workplace Relations. Level 3, Brisbane Avenue, Barton ACT 2600 PO Box 5450, Kingston ACT 2604 T: F: W:

2 Contents 1 Purpose of this guide Who will benefit from this guide? Business drivers Energy and water efficiency practices for business Case study examples Practice steps Supporting tools and templates related to the practice steps Additional websites for reference /general knowledge i

3 1 Purpose of this guide Welcome to the practice guide in energy and water efficiency. Energy and water efficiency makes good business sense and delivers better outcomes for the environment. The opportunity to save 10-30% or more on your utility bills is a common outcome from an energy and water assessment. A significant challenge that this module aims to meet is to obtain input and support from key people, so that the best ideas to improve efficiency can be progressed and cost savings achieved. Most businesses have had some exposure to energy and water efficiency, through audit programs, greenhouse gas emissions reporting, government funding schemes, or simply through their own practices and efficient use of resources. This guide does not repeat the guidance or processes provided by other programs; rather it seeks to provide practical and useful tools and tips to help business maximise the value of their efficiency initiatives. 2 Who will benefit from this guide? Site Engineers, Senior Food Technicians, HAZOP and Environment Coordinators and Energy Champions who have the responsibility for coordinating and facilitating resource efficiency initiatives. Most businesses have experience with energy and water audits and are seeking assistance to implement more efficient systems and to improve staff engagement with processes to ensure that efforts are ongoing. 3 Business drivers The business benefits of developing a systematic response to energy and water efficiency include: 1. Cost savings 2. Improved productivity 3. Improved security of supply 1

4 4. Lower risk of exposure to carbon prices and supply chain demands 5. Lower greenhouse gas emissions 4 Energy and water efficiency practices for business This guide presents six key practices that will help business to better understand the opportunities and realise the benefits of energy and water efficiency for their business, and how they can integrate the identification and evaluation of opportunities into their business planning process. These six practices are: 1. Inform business planning of energy and water efficiency opportunities 2. Communicate and investigate water and energy efficiency opportunities with engaged stakeholders 3. Understand energy and water use and management 4. Identify and evaluate energy and water efficiency opportunities 5. Facilitate implementation of efficiency opportunities 6. Measurement and verification of efficiency opportunities 4.1 Case study examples Total waste management system at Berrybank Farm Piggery, Charles I.F.E. Pty Ltd 1 Charles Integrated Farming Enterprises Pty Ltd (Charles I.F.E. Pty Ltd) is saving $435,000 per year from a $2 million investment in a Total Waste Management System for its Berrybank Farm. The system involves generating electricity from biogas, conserving and recycling water, and collecting waste for sale as fertiliser. Despite the large investment, most of which went into the electricity generation equipment, the technologies and methods used are 1 2

5 simple and straightforward. Many of the measures simply involve good housekeeping, such as putting timers on pumps to ensure water is not wasted if taps are left on. Berrybank Farm has developed a sophisticated waste management system to recover all the waste from the pigs and to treat it so that the various byproducts can be used on the farm (as flush water, gas for electricity, and fertiliser) or sold at a profit. The waste management system is a seven-stage process, shown schematically below, including automatic and continuous waste collection, grit removal, slurry thickening, primary digestion, secondary digestion, biogas purification and a cogeneration thermic plant. The capital cost of the Berrybank Farm project was approximately $2 million and the investment will take about six years to pay for itself. However, the immediate environmental benefits as a result of cleaner production are enormous. Figure 1 Berrybank Farm Waste Management System 3

6 Each day the farm now recovers: 1. Approximately seven tonnes of waste solids at 35% dry matter, used as fertiliser ,000 litres of recyclable water ,000 litres of mineralised water, used as fertiliser and 4. 1,700 cubic metres of biogas, able to run a cogeneration electricity program with a daily output of 2,900kW of electricity As a result of cleaner production, Berrybank Farm has also achieved: 1. 70% reduction in water usage 2. Improved stock conditions 3. Improved working conditions for staff 4. Elimination of odour Murray Goulburn Pump Systems 2 At its Koroit milk processing facility, Murray Goulburn recognised that its pump systems were operating below optimum and were inefficient and costly to operate. So, as a part of the company s ongoing plant upgrade, they undertook a comprehensive improvement program. Subsequent to the review, they have installed correctly sized pumps on this system, an initiative which has exceeded expectations. The objective of the project was to review the installed power base of centrifugal pumps fitted on two milk separator pre-heater banks in order to identify potential energy savings. Both separator pre-heater systems were reviewed to document the manufacturer s model and motor size for the installed pumps. The milk distribution pipe lines and installed equipment were also assessed to enable system pressure drops to be established at the required production flow rates

7 The project demonstrated that significant energy savings in pump systems are possible through the use of readily available technology if detailed process analysis is undertaken prior to plant reconfiguration. This approach can be readily replicated in many production plants utilising similar multiple process pumps. In many of these plants, multiple pump systems operate in series at suboptimum operating conditions. Whilst every application will be different, there is real potential to undertake similar process analysis to improve individual plant operation. The key outcomes and benefits of an upgrade to the system are as follows: 1. Reduced pump system running costs by 42% for separator bank no.1 2. Reduced carbon emissions through lower power consumption 3. Improved process control reduced piping system component wear by reducing friction losses through the system 5

8 Figure 2 Separator Bank No 1 6

9 4.2 Practice steps Practice steps 1. Inform business planning of energy and water efficiency opportunities 2. Communicate and investigate water and energy efficiency opportunities with engaged stakeholders 3. Understand energy and water use and management Description Develop an energy and water improvement plan as part of your regular budget cycle, and present capital investment requirements and expected savings to senior management. Good energy and water performance can be sustained when there is an ongoing focus on making improvements to supply, end use technology, metering systems, operational procedures, controls and maintenance plans. Efficiency opportunities should be identified regularly, and the case for improvement made and then acted on. In this way requests for capital to fund improvements can compete on an equal basis with other business improvement proposals. An effective energy and water improvement plan will result when a range of stakeholders from senior management through to operators have input. A range of communication tools and forums can help to ensure that preparations for energy and water improvement planning are timely and allow for ideas to be formulated and background information collated where needed. Tools and forums that may be useful to engage with stakeholders include: Letter from the CEO or Site Manager outlining the company s or site s commitments and targets for energy and water efficiency Use of newsletters to communicate targets, disseminate case studies and solicit improvement ideas Establishment of a site Green Team to coordinate all energy and water management and improvement activities, with representatives from all main areas of the site Regular communication of energy and water performance against targets e.g. on production and other boards that communicate daily, weekly, monthly performance data Develop and use simple utility analysis tools that can aid in understanding resource consumption characteristics and present high-level findings. Simple tools include load profile or interval meter data analysis, monthly or seasonal 7

10 Practice steps 4. Identify and evaluate energy and water efficiency opportunities Description supply, consumption and cost trends analysis, simple performance indicators and basic regression analysis. Document and retain records e.g. a data checklist, of equipment lists / ratings, performance testing of equipment (e.g. regular boiler water and combustion checks, motor testing), so that the performance of the most significant energy and water-using equipment is known and is available to support an assessment of improvement opportunities. Carry out regular metering and monitoring / instrumentation reviews to ensure that good data on water and energy use, as well as other parameters (e.g. frequency of motors, compressed air flow, pumped water / fluid flow) is available to support an assessment of improvement opportunities, or to support your carbon footprint analysis. Develop a metering and monitoring improvement plan that supports improvements and compliance. These tools can be integrated with the Baseline Tool for the site so that there is a common reference source for your energy and water data analysis. Keep abreast of relevant benchmarking and of leading practices in technology and controls for processes and equipment relevant to your industry. Review their applicability to your operations. Regularly collate and retain improvement ideas in your energy and water improvement plan, whether from suggestion boxes, toolbox talks, past workshops or industry literature. A useful way to initiate an annual planning process is to hold an efficiency opportunities workshop with relevant stakeholders, bringing together relevant information from your business (and Carbon Proof ) plans, and analysis of energy and water information and data, together with relevant benchmarking and technology practices. The purpose of such a workshop is to elicit ideas for improvement from a broad group, and to prioritise these based on business case evaluation criteria. To support ideas arising from a workshop or other opportunities raising process, project briefs or business cases that assist decision making processes should be developed. These should: Include responsibilities, accountabilities and times for completion of further evaluations e.g. based on monitoring, engineering calculations, trials, receipt of quotes from suppliers Apply business criteria for efficiency opportunities evaluations. For example identify possible co-benefits such 8

11 Practice steps 5. Facilitate implementation of efficiency opportunities 6. Measurement and verification of energy efficiency opportunities Description as improved OH&S outcomes, better supply security, enhanced productivity, reduced maintenance, and possible risk issues such as interruption to production, adverse OH&S or environmental outcomes Reach a recommended course of action, whether to proceed or not, and present to site management for approval e.g. as a draft energy and water improvement plan Understanding potential funding incentives that can make marginal projects more cost effective for your business. At any one time there are likely to be a range of incentives that you could access to help fund efficiency improvements. These may be from Federal, State or Local governments. Keeping up to date with available funding opportunities through industry links and proactive engagement with funding agencies will ensure that your business does not miss out on funding that can help you make significant energy and water cost savings. Understanding potential co-benefits for efficiency opportunities can further improve project cash flows. For example: Your efficiency projects may be eligible to create credits for a State efficiency scheme (e.g. such as the NSW Energy Savings Scheme) If you are developing a renewable energy project (e.g. energy from biomass or biogas) you may be able to create Renewable Energy Certificates Your projects may lower your electricity demand, which may benefit your network provider who may be willing to provide you with an incentive for this initiative Regular performance reporting against targets can ensure that management is routinely informed of progress, and can act to increase, change or reward effort depending on what is being achieved. Some larger projects may warrant project level measurement and verification. This can serve multiple purposes: it demonstrates to your business if savings have been achieved, which can influence future investments or roll-out of opportunities, or it may be needed to support claims for co-benefits or credits. 9

12 4.3 Supporting tools and templates related to the practice steps Tool or Template This tool is useful if. Link Energy and water improvement plan Baseline tool Opportunities workshops You have a range of efficiency or metering or management system improvement ideas, and you want to have a central location to record the ideas, the analysis of costs and savings, and the recommendation on implementation. You are building on high level analysis of energy, water and carbon data to analyse more data that will inform the identification and evaluation of improvement opportunities. You have a range of stakeholders who can contribute to the identification and evaluation of energy and water improvement opportunities, and you want to evaluate these opportunities so that an improvement plan can be prepared. You have forums for engagement of staff such as toolbox talks, suggestion boxes, web / intranet forums and you want to use these to solicit energy and water improvement ideas. You have identified energy and water improvement opportunities and want the evaluation of these to be carried out consistently by nominated responsible staff. Efficiency Opportunities Workbook (Excel) Baseline tool Workshop Runsheets Workshop Guide Presentation Project Briefs 10

13 4.4 Additional websites for reference /general knowledge The following websites are recommended for background knowledge and further reference. Website link Energy Excellence Department of Resources Energy and Tourism Standards Australia Auditing standards International Standards Organisation (ISO) Federal and State Governments Water and Energy Efficiency programs This website is useful because. When completed it will be a useful central repository for energy efficiency information, with links to a wide range of best practice websites that have been independently evaluated. The Australian Standard for energy auditing forms the basis for most energy efficiency schemes in the past 20 years (AS/NZS 3598:2000). This standard is due to be upgraded in the near future. The ISO is developing an international energy auditing standard. These websites provide frameworks for government-designed energy and water efficiency programs. Although the participants in these programs are legally obliged to participate due to triggering energy or water consumption thresholds, the framework and documented guidance for engaging with these programs can still be adopted by non-triggering organisations who are keen to embed water and energy efficiency into their daily operations. EEO: ESAP: EREP: QLD SESP: 11

14 Website link Measurement and verification NSW Energy Savings Scheme EU Best Practice in Industry Lean manufacturing This website is useful because. WSAP: WaterMap: The Lawrence Berkeley National Laboratories in the US developed the international standards on measurement and verification (the Measurement and Verification Protocol or MVP). NSW energy retailers have obligations to reduce energy use in NSW to 2014, and they are required to surrender certificates equating to energy savings in proportion to their market share. Savings are delivered by efficiency actions implemented by end users businesses and householders. Details of the ESS, and requirements for verification of energy savings are on the scheme website. The EU s pollution prevention and control bureau (IPPCB) has developed a series of best practice guides for a range of industries, including food processing (Food, Drink & Milk). These are referred to as Best Available Techniques (BAT) Reference documents, or BREFs. Continuous improvement approaches for energy and water efficiency can be similar to those employed in lean manufacturing, or other improvement process such as 6-sigma. 12

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