Effectively saving energy through ISO 50001, a given? Energy Forum 14 & 15/11/2012 Brussels Bart Adams DNV KEMA Energy & Sustainability
Content Energy Efficiency EnMS ISO50001 Experiences Conclusions 2
Energy efficiency has been discussed for 4 decades and still considerable saving potential remains. 1973 Oil crisis following OAPEC s embargo EC Database on E Saving Potential (30-10-2012) 3 HPI = High Policy Effort APS = Autonomous Progress
Energy efficiency is facing many barriers, most of them nontechnical and non-financial in nature. Awareness & behaviour lack of awareness resistance to change preference for supply side solutions Lack of resources upfront investment might be required resource constraints (time and/or money) Inadequate approach fragmented energy saving potential decentralized know-how focus on components rather than systems insufficient focus on non-technical solutions Lack of (management) commitment Inadequate data inadequate energy data measurement & verification uncertainty Risk aversion risk on production / operation disruption Inadequate incentives principal agent issue split / contradicting incentives 4
Market surveys on energy management provide additional insight in the real and the perceived barriers. Belgium & the Netherlands - 2011 1200 companies 5 sectors Czech & Slovak Republic - 2012 600 companies 5 sectors 5
International interest and momentum for Energy Management Systems (EnMS) is growing. Superior Energy Performance - Accredited certification program that provides a roadmap for continual EE improvement - Tiered approach based on ISO50001, complemented with verified records of energy performance improvement Energy Efficiency Directive - Article 7: MS to promote E audits & certain enterprises to undergo an audit every 4 years unless having certified EnMS & meeting Annex Vb (base for minimum E audit criteria) German Policy - Spitzenausgleich : partial refunding of eco-tax when EnMS certified - Exemption from EEG-Umlage with certified EnMS for large consumers - Amendments to Energiesteuer- und Stromsteuer laws confirm usage of EnMS 12 th Five Year Plan (2011 2015) - 2 nd binding target: 16% EI reduction - 17,000 enterprises are required to establish EnMS + early movers demand ISO 50001 adoption from suppliers 6
Content Energy Efficiency EnMS ISO50001 Experiences Conclusions 7
EnMS use the PDCA concept and are compatible with other MS. An EnMS ensures that a company continually passes through the cycle of making energy policy, planning energy efficiency actions, implementing those and checking the results, on the basis of which new policy is made ISO 50001 (15/6/2011) Compatible with other standards ISO 14001 ISO 9001 Other MS ISO 50001 Provides focus through significant energy uses Requires regular and reliable follow-up of actual versus predicted energy consumption Integration yields more streamlined approach, but most of all ensures properly addressing conflicting objectives & targets 8
EnMS standards were developed during the last decade. 2000 NL LTA US MSE 2000 (updated 05 & 08) 2001 DK DS 2403 2003 S SS 627750 2005 IRE IS 393 2007 D VDI 4602/1 E UNE 216301:2007 2008 Korea & Thailand 2009 EU EN 16001 CN GB 23331 15/6/2011 ISO 50001 Many voluntary national standards are available Most standards are similar and build on the previous ones Additional EN & ISO standards are being published & developed (e.g. EN16247 & ISO50002 on E Audits) 9
Independent sources and studies confirm the effectiveness of EnMS. 3M reduced it energy consumption per net sales by 30% since 2000 through its Global Energy Management Program and expects to reach 40% by the end of 2008 United Technologies Corp reduced global GHG emissions by 46% per $ revenue from 2001 to 2006, now seeking an additional 12% reduction from 2006 to 2010 Typical reduction of the energy use during the 1 st year after implementing EnMS is 5% - 10%. Important additional benefits are observed. Dow Chemical achieved 22% improvement between 1994 and 2005 through its corporate energy management system and is seeking another 25% from 2005 to 2015 Companies that have voluntarily implemented energy management plans have achieved energy savings of 20% or more, with corresponding reductions in GHG emissions. Impact evaluation of national industrial EnMS programs in S, DK and IRE (2009): Industries that implement and maintain an EnMS typically save 10% - 20% within the first 5 years. 10
ISO50001 market is expected to surpass that of the ISO14001 in growth rate and size. There will be a significantly higher uptake globally, at a faster pace than we saw with ISO 14001 and with ISO 9001. ISO 50001 could potentially impact up to 60% or more of the world s energy use. The market opportunity is enormous, over the next 10 years, 0.5 to 2.0 million organizations will be ISO 50001 certified. 11
Industry best practices go beyond compliance and are important to ensure the effectiveness of the EnMS. 15+ years of cumulative experience, originally mainly from Denmark and Sweden but now extended with input from many other countries & projects Best Practices show the way beyond compliance and are often essential in making the EnMS truly effective Continuously updated via 6 monthly global calibration meetings of protocol users 12
Content Energy Efficiency EnMS ISO50001 Experiences Conclusions 13
Food Industry Belgium ISO 50001 Gap Analysis + Certification Snack manufacturer ± 480 employees, 5 production lines Already significant improvements via internal resource conservation program Solid ISO 9001 & ISO 14001 in place Main Lessons 1. Communication on energy performance is more than providing information 2. Energy modelling (engineering / statistical) allows earlier detection of unusual consumption 3. Integration in existing initiatives (resource conservation program) facilitates implementation 4. Energy performance to be considered for all aspects (e.g. new investments) 5. Management needs to provide necessary resources (e.g. time for energy representative) 14
Filter Manufacturing Slovakia ISO 50001 Gap Analysis + Training Manufacturing of air filter modules (e.g. HVAC) 150 employees, 2 shifts, 5 production lines Electricity correlated to production & office Gas correlated to HDD Main Lessons 1. Motivation and active endorsement of higher management is a powerful & essential driver 2. Ensure proper expertise of energy responsible (SHEQ manager often needs E training) 3. Be creative when involving all levels of the organization 4. Comparison of actual versus expected consumption can lead to savings on the short term 5. Building on success stories from other sites and exchanging personnel is a strong catalyst 15
Refinery the Netherlands (1/3) ISO 50001 Implementation Mid-size refinery [90,000 bpd] 320 employees + 150 contractors Solid ISO 9001 & ISO 14001 in place 6 months effort, contract value approx. 100k 3 rd ISO 50001 certified refinery in the world (March 2012) Visualization of energy, carbon and cost by means of Sankey Diagrams Used also for - Allocation of energy targets - Allocation of responsibilities - Improving energy monitoring plan 16
Refinery the Netherlands Main components (2/3) Energy Dashboard in control room On line monitoring Measure gap between actual and target Quantify gap in k losses Energy Efficiency Plan in line with legal directives on GHG emission reduction (EU ETS) Energy benchmarking Check energy balance & meters realized energy savings 140 120 Asset teams Analysis EnPIs on unit level Analysis of the bad actors Define action plan EII loss EII gain Target rangel rangeh Energy savings follow-up by Energy Dashboard Energy Projects (year plan) Profit Enhancement Program Integrated in 6 sigma project External energy audits 100 80 60 40 20 0
Refinery the Netherlands Initial results (3/3) For identical throughput, 3.2 M /month less energy cost in Aug 2012 versus Jan 2012 M-Euros 4,0 3,0 2,0 1,0 3,2 0,80 0,41 0,19 0,12 0,80 0,05 0,83 0,0 Gain Utility prices TCVB Severity CR-1 CDU-2 Wintericing Energy projects Operations improvement Product mix economics: 0.7 M Operations improvement: 0.9 M 18
Offshore Exploration Norway ISO 50001 Implementation Oil & gas exploration site comprising 8 platforms 2012 production: 40 800 boe (expected) Switch to shore power being completed Project scope focuses on technical aspects (energy review, energy baseline and energy performance indicators) Compliance driven project Main Lessons 1. 75% of installed capacity is covered by 32 significant energy users (based on 3 criteria) 2. Clearly defined & strong EnMS ownership already during implementation is essential 3. Highly evolving system can be handled by working on component rather than system level 4. Don t let perfect be the enemy of good start simple and improve gradually 19
Power Production China ISO 50001 Gap Analysis LNG fired power plant 3 x 360 MWel Combined Cycle Gas Turbine Peak shaving operation Located on an island close to shore (Shenzen area) Solid ISO 9001 & ISO 14001 in place Main Lessons 1. Upfront investment and risk for production disruption can be important barriers 2. Additional focus on energy from EnMS necessary to drive continuous improvement 3. Integration of EnMS with existing MS reduces procedural & administrative load 20
Steel Construction the Netherlands ISO 50001 Gap Analysis Steel construction for offshore applications No sub-metering Little - no prior interest or activities regarding energy Integrated ISO 9001, ISO 14001 and OHSAS 18001 in place Main Lessons 1. E focus of EnMS is essential to drive improvement and to provide focus 2. Even without sub-metering and with simple energy models, significant savings can be realized 3. Sufficient buy-in and clear ownership across the organization is essential 21
Content Energy Efficiency EnMS ISO50001 Experiences Conclusions 22
Conclusions (1/2) 1. Energy efficiency has been discussed for 40 years but significant potential remains 2. Main actual barriers of energy efficiency are non-technical and non-financial 3. EnMS & ISO 50001 are gaining traction internationally 4. ISO 50001 is based on the PDCA concept and allows integration with other MS 5. EnMS standards have been developed during the last decade 6. Independent sources and studies confirm the effectiveness of EnMS 7. ISO 50001 market is expected to surpass that of ISO 9001 and ISO 14001 8. Best practices go beyond compliance and are important to ensure effectiveness 23
Conclusions (2/2) 9. Case studies illustrate the - Importance of support & engagement of (top) management & all layers in an organization - Organization wide approach of an effective EnMS - That energy models deliver short-term savings through closer follow-up - Driving power of good communication - Need for proper training of the energy representative - Power of the focus that EnMS provide - Room for gradual improvement of the EnMS - Additional focus on energy beyond ISO 14001 24
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