Cutting Costs through Energy Audits and Conservation

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1 Cutting Costs through s and Conservation Shanghai China May 2012

2 Outline Sea ice, 1979 Sea ice, 2005 ESD China Ltd, conservation, audit, Practical tips.

3 China audit ESD China Offices Shanghai, Beijing, Guangzhou Wuhan, Chongqing, Chengdu, Ningbo... globally Global Thinking Local Delivery Continuous Innovation

4 China Our Businesses audit BUSINESS UNIT & Industrial Engineering EHS Management of Industrial Facilities Soil and Groundwater Remediation Engineering Engineering & Procurement Management of IFI ** Projects CONSULTIN G EPC * EQUIPME NT Y Y Y Y N N Y Y Y Y N N *EPC = Engineering-Procurement-Construction of small to medium sized systems **IFI = International Financial Institutions

5 Conservation conservation Save money & reduce carbon footprint! Coal 94.6 ton CO2 / TJ Diesel 77.2 ton CO2 / TJ Natural gas 56.1 ton CO2 / TJ (and more efficient) Power ton CO2 / TJ Significant subsidies are available!

6 conservation Conservation Who should take action? Everyone, but some have to do more! Size & Intensity & Ability & Continuity The cost of is inversely proportional to size of operation, Operation is energy intensive? energy cost is > 3 % of sales, Technically, financially, organizationally feasible, Investments have to be paid by s Continuity in operations, How do you know?

7 audit ing The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, water management and energy conservation. ( advise!ehs, accounting compliance (legal) Evaluation should be : Fast, Correct and Affordable Requires Common sense Skills, Knowledge, Benchmarks, Tools, Criteria, Methodology

8 audit? Evaluation What do I see; do I know why (meaning, purpose, sense)? cost calculation, KPI(look at available E data), Brainstorm within company, with sector organizations, experts, Factory tour(the eye for the invisible), Quick scan, Full audit, Benchmark, Is there a significant, feasible and realistic potential? How to turn this potential in?

9 audit Methodology Questionnaire: data collection Factory tour: indicators /mass balance: structure, relation to production parameters Long list of potentials indicative calculation + qualitative evaluation(with factory managers) Short list of potentials detailed calculation investmentcost/ /operational impact Monitoring and Verification plan Financial criterion = Payback < 3 year

10 Determining factors for energy efficiency conservation Human behavior (motivation, knowledge, organization, ability) Design (concepts, availability/reliability of equipment) Operation (setting of parameters, continuous improvement) Utilization rate (continuity at optimal capacity)

11 A Factory is as a Car Human behavior OR Utilization OR High utilization low utilization

12 A Factory is as a Car Setting and control OR Engineering and design OR

13 Factory tour EE- Indicators: audit

14 Factory tour EE- Indicators: audit Open sides!, Buckets with oil! Machine running! 1977!!!

15 audit Factory tour EE- Indicators: Excessive noise Excessive heat losses, black smoke chimneys, High ventilation(ad random) rate Water spilling Too much artificial light Many small automatic machines with same function(add-on) Old machines(> 10 year) Low utilization of factory surface Non Technical Luxury Chaos Frustration of workers and employees Lack of activity

16 audit How to measure s? Monitoring and verification s cannot be directly measured, since s represent the absence of energy use. Instead, s are determined by comparing measured use or demand before and after implementation of a program, making suitable adjustments for changes in conditions. Baseline to be determined

17 audit Monitoring and verification Adjustments Interactive effects Independent variables measuring improvement with IPMVP

18 Practical tips

19 Procurement of machines (thousands of sewing machines) Operational ()cost must be a procurement criterion!

20 Procurement of machines Cheap/simple but energy consuming design

21 Centralization of infrastructure Add on history! Air extraction, Compressed air, Cooling towers, Water distribution,

22 Compressed air Pressure

23 Compressed air General: compressed air production is a guzzler Avoid leaks Reduce pressure; filters, piping, utilization Limit idle running of compressor VSD Install air accumulators Cool intake Replace worn out machines Don t use compressed air as open blower

24 Efficient lighting

25 Condensate return

26 Insulation Payback < 1 y for Steam and hot water piping

27 Frequency drives HP = Q x P/η Example: 5.6 x 10 5 x 80/3600 x 1/0.735 = 16.9 kw Example: HP 2 = 16.9 x 72 3 /80 3 = 16.9 x 0,73

28 Efficiency of electric motors How many hours /year? Ex. P = 5 kw 6000 hr/y Nema: E = 5 x 6000 /0.84 = 35.7 MWh/y EFF 1: E = 5 x 6000 /0.88 = 34.1 MWh/y Saving: S = 1.8 MWh/y x 95 $/MWh = 171 $/y No standard; eff??? 50 %? Nema EFF 1 EFF 2 EFF 3

29 Power quality Magnetic(transformers, motors) versus thermal effect of power P th = R x I 2 P m = U x I x PF

30 More practical tips Avoiding idle running, Open door detectors, Recycling, Economizer on boilers, Preheating combustion air with exhaust gas, Improved automation (accuracy regulation, monitoring, trending), Cogeneration, Subdivision of heating and chilling systems based on demand temperature, Direction (NE vs SW) of fresh air feed to HVAC systems Heat/cold storage Geothermal Peak shaving peak management

31 Thank You! Filip Vandeputte, M. Ind Eng, MBA

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