The Future of Energy Management: Superior Energy Performance

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1 The Future of Energy Management: Superior Energy Performance Kathey Ferland The University of Texas at Austin Center for Energy and Environmental Resources June 15, 2011

2 Problem: Potential Energy Efficiency Benefits Are Largely Unrealized La Time and again, industrial energy efficiency has been demonstrated to be cost effective while having a positive effect on productivity and reliability. Despite this, energy efficiency improvements with very favorable payback periods often do not get implemented Even projects that are implemented may not be sustained due to lack of supportive operational and maintenance practices Solution: Integrate energy management into the organization s business and management processes. Engage top management on an ongoing basis.

3 ISO 50001: Energy Management System Standard ISO will establish a framework for industrial and commercial facilities and organizations to manage energy. Potential impacts: Could influence up to 60% of the world s energy use across many economic sectors Uptake of ISO will be driven by companies seeking an internationally recognized response: Corporate sustainability programs Managing energy costs Demand created along the manufacturing supply chain Future national cap and trade programs; carbon or energy taxes; increasing market value of green manufacturing / reduced carbon footprint International climate agreements Status of ISO Developed by ISO Project Committee 242; United States and Brazil lead effort with the United Kingdom and China 56 countries participating, 13 of which are observing Final Draft International Standard (FDIS) released March 2011 Expected publication date: June 15, 2011

4 U.S. Council for Energy-Efficient Manufacturing Acts as champion of U.S. industry in pursuing national energy efficiency goals. Seeks to improve the energy intensity of U.S. manufacturing through a series of initiatives. Guides development of Superior Energy Performance.

5 Superior Energy Performance Certification An ANSI/ANAB-accredited Verification Body conducts a third-party audit to verify that the following requirements are met: 1. Energy Management System Conformance to ISO Energy Management Standard 2. Energy Performance Improvement ISO is a foundational tool that any organization can use to manage energy. Superior Energy Performance Single facility ISO conformance with validated energy performance improvement ISO Components in place: Baseline Policy Plan Team/Leader ISO

6 Benefits to Company of Certification Publicly recognized as a leader in sustainable use of energy resources Responsive to supply chain energy-efficiency initiatives Verified energy savings adds credibility to corporate claims Economic Sustained cost savings from projects and operational improvements Energy efficiency credits (some state utility programs) Carbon credits (some states or regions) Systematic framework for continuous improvement Consistent with ISO energy management which has international applicability Availability of tools and resources to assist implementation and validation of sustained energy performance improvement

7 Texas Pilot Project Participants Cook Composites and Polymers Co. Houston Plant Employment: 36 Energy Use: >100,000 MM Btus Freescale Semiconductor Inc. Oak Hill Plant Employment: 2,300 Energy Use: 682,000 MM Btus Owens Corning Waxahachie Plant Employment: 345 Energy Use: >1,000,000 MM Btus Dow Chemical Company Texas City Operations TCO Employment: 345 TCO Energy Use: 5,600,000 MM Btus Isopropanol Plant Energy Systems Plant 7

8 Results of SEP Implementation At Freescale Semiconductor Oak Hill plant qualified as SEP Silver Certified Partner at 6.5% improvement Support from senior management System KPIs driving continual improvement Silver 6.5 % Successful incorporation of energy management into recognized company-wide management system Energy management as a way of doing business, instead of making improvements on a project-by-project basis Leverage plant-level activities into a corporate-wide program (second plant may seek certification) Awareness of the certification out across the organization 8 Engaging more employees in energy management and energy efficiency

9 Texas Pilot Project May 2008-Feb 2011, DOE worked with the University of Texas at Austin to pilot Superior Energy Performance in Texas facilities. Certification levels are: Silver 5 to 10 % Gold 10 to 15% Platinum greater than 15% First Plants Certified to Superior Energy Performance Cook Composites and Polymers Co. Houston, Texas Freescale Semiconductor, Inc. Oak Hill, Texas Owens Corning Waxahachie, Texas Union Carbide (subsidiary of the Dow Chemical Co.) Texas City, Texas (Isopropanol Plant) Union Carbide (subsidiary of the Dow Chemical Co.) Texas City, Texas (Energy Systems Plant) Superior Energy Performance Certification Level 14.9% 6.5% 9.6% 17.1% 8.1%

10 Now Recruiting Sites for Texas Demonstration Project Kathey Ferland For information about the national program:

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