Energy Efficiency Methodology

Energizing Cleaner Production Management Course

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Training Agenda: Company Energy Efficiency methodology Introduction to the methodology

Methodology step by step Purpose, outputs and tasks Company examples Worksheets

Energy focus
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Introduction

The Company Energy Efficiency Methodology (Methodology) has been developed for Asian industrial companies to help them improve energy efficiency through Cleaner Production.

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Benefits from Energy Efficiency

Cost reductions through efficient use of energy Reduced exposure to fluctuating energy supply and prices and blackouts Increase in productivity and product quality Improved reputation with customers and society through environmental protection Improved employee motivation, health and safety Compliance with legislation and ISO 14001 targets

Increased profits and shareholder value

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The Methodology

Is tailored to energy-intensive industrial companies in developing Asian countries

Focuses on energy, which is less visible than waste, water and raw materials Explains what should be done in theory how it is done in practice in different companies

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The Methodology is based on:

The Cleaner Production (CP) strategy: Prevention of waste Systematic approach Integrated into business processes Aimed at continuous improvement Existing CP and energy audit methodologies

Real practice experience from energy

assessments carried out as part of the GERIAP project in more than 40 Asian industrial companies
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6-Step Cleaner Production Approach

Step 1: Planning and Organization

task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval

Step 2: Assessment
task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 3: Identification of Options

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis

Step 4: Feasibility Analysis of Options

task 4a: Technical, economic and environmental evaluation of options task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top management approval

Step 5: Implementation and Monitoring of Options

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 6: Continuous Improvement

task 6a: Prepare proposal to continue with energy efficiency for top management approval

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Information under each Step

Several tasks: what a company should do as a minimum Company examples: how the task was applied at different companies and lessons learnt Worksheets: to assist completing the task

Remember: apply the methodology flexibly as long as energy efficiency is improved because each company is different.
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Step 1: Planning and Organization

Purpose:
Obtain top management commitment Plan and organize an energy assessment

Output:
Written proposal with selected steps and tasks to improve the companys energy efficiency Approved by top management.
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Step 1: Continued
Time: 3 6 days

Tasks include:
Task 1a: Meeting with top management (1-2 hours) Task 1b: Form a Team and inform staff (0.5-1 day) Task 1c: Pre-assessment to collect general information (1-3 days) Task 1d: Select focus areas (0.5-1 day) Task 1e: Prepare assessment proposal for top management approval (2-3 days)

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Task 1a: Meeting with Top Management (1 2 hours)

Purpose of first meeting: Top management:
Get commitment of company middle managers, staff and/or external facilitators to carry out a preassessment Write a proposal for a detailed energy assessment

Company middle manager or external facilitator:

Get top managements approval for a pre-assessment Write a proposal for a detailed energy assessment
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Task 1a: Meeting with Top Management (continued)

Discuss at this 1-2 hour first meeting:
If/Why top management is interested in energy efficiency Energy areas of interest or concern Where the company is now Other factors of influence on the assessment Time needed for pre-assessment and writing proposal for feasible options Team composition and management representative How staff will be informed to ensure cooperation
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Worksheet 1: Reasons for Energy Efficiency

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Worksheet 2: Energy Management Matrix

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Worksheet 3: Factors influencing the energy assessment approach

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Task 1b: Form a Team and inform staff (0.5 1 day)

The Team should consist of:
Someone who knows the main energy uses and environmental impacts, e.g. the Environment Manager or Energy Manager Someone who knows the production process, e.g. the Head of Production
Someone with access to general company information and energy cost data, e.g. the companys Accountant or Finance Manager A communications or training person

A top management representative

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Energy Focus

Task 1b: Form a Team and inform staff (cont.)

Team should have
Knowledge of energy equipment
Energy intensive production processes Access to energy data

Typical positions
Utilities Manager Energy Manager Maintenance Engineer

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Worksheet 4: Team Members and Roles

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Task 1c: Pre-assessment to collect general information (1 3 days)

Information collected should include:
General company details
Organization chart General production flow chart

Production data for the past 3 years

Energy, resource consumption data and costs for the past 3 years

Inventory of major equipment

Overview of information collected for each process step / department

Company greenhouse gas (GHGs) emissions

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Energy Focus

Task 1c: Pre-assessment to collect general information (cont.)

Include auxiliary sections in the general production flow chart
Water treatment Boiler and steam systems Compressed air systems Air conditioning / refrigeration

Ventilation

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Energy Focus

Task 1c: Pre-assessment to collect general information (cont.)

Production and resource data should also include
Fuel consumption rates and costs Electricity consumption and costs Fuel mix Electricity bills from utility

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Energy Focus

Task 1c: Pre-assessment to collect general information (cont.)

Inventory of major equipment
Name of equipment: motor
Numbers: 50 Capacity: 1 with 100 HP, 39 with >25 HP, 10 with <10 HP Type: AC motor

Supplier: General Electric

Rated parameters: e.g. load Operating parameters (if available)
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Worksheet 6: General Production Flow Chart

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Worksheet 7: Production and Resource Data

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Worksheet 8: Inventory of Major Equipment

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Task 1d: Select focus areas (0.5 1 day)

A focus area can be: Entire plant A department, production line, or process step Specific (energy) equipment or resources The process for selecting focus areas: Identify possible focus areas Determine selection criteria Rate each focus areas High, Medium, Low for each criteria
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Energy Focus

Task 1d: Select focus areas (cont.)

Different focus areas can be selected when energy is considered An auxiliary system instead of a production step
- Steam system - Compressed air

Specific major energy equipment

- Boiler house (not just the boiler!)

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Worksheet 10: Selection of Focus Areas

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Task 1e: Prepare assessment proposal for top management approval (2 3 days)
It is important to obtain top management commitment The assessment proposal should include:
Objective, scope (i.e. focus areas) Outputs Approach (step 2, 3 and 4 of the Methodology) Team Time & budget

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Step 2: Assessment

Purpose: assess where energy is lost/wasted

for the focus area(s)

Output: overview of how much energy is lost

and how much money this costs for the focus area(s)

Then it becomes easier to identify options to improve energy efficiency in step 3!

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Step 2: Assessment
Time: minimum 3 days Tasks include:
Task 2a: Staff meeting and training (>0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (>2 hours per focus area) Task 2c: Walkthrough of focus areas (> 0.5 day per focus area) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available) Task 2e: Quantify losses through a material and energy balance (0.5 1 day per focus area)
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Task 2a: Staff meeting and training

Staff meeting (0.5 day)
Inform staff about assessment and their roles Get their support

Staff training
Importance of energy efficiency
How to carry out an assessment Energy equipment & monitoring instruments

Financing, GHG Indicator, other

Information:
Posters, newsletters, meetings
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Task 2b: Prepare focus area flow charts (>2 hours per focus area)
Flow chart for each focus area
Different steps of the focus area Most important inputs (resources) for each step Most important outputs for each step

Intermediate and final products between the steps

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Energy Focus

Task 2b: Prepare focus area flow charts (cont.)

Different types of focus areas require different types of charts:
Production step: process flow diagram Auxiliary systems: layout chart for steam or compressed air distribution system Specific major equipment: major equipment and all auxiliary equipment

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Task 2c: Walkthrough of focus areas (>0.5 day per focus area)
Purpose of the walkthrough(s)
Better understand the focus area Get feedback from production staff about problems Write down visible losses of energy and materials

Obtain information about quantities and costs

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Worksheet 14: Walkthrough observations

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Task 2d: Quantify inputs and outputs and costs to establish a baseline
Time required depends on information available

Why a baseline?

Measure improvements after implementing options Management only convinced to continue if you can show savings

Collect the following information:

Quantities (e.g. tons of coal per day) Costs (e.g. $ per ton of coal) Other characteristics (e.g. temperature of water going in and out of the boiler, pressure)
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Worksheet 13: Process flow chart, inputs/output, energy balance

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Energy Focus

Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Examples of material-related parameters for the boiler house
Fuel and electricity
Water Blow down Ash Steam produced

Condensate recovered

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Energy Focus

Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Examples of energy-related parameters for the boiler house

Pressure
Temperature Flue gas composition Draft Radiation

Note: specific monitoring equipment may be needed

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Energy Focus
electricity wate r conditionin g chemical ## (actual)

coal (lignite) water spray coal yard coal (lignite) manual screening and crushing ## (actual)

Coal fines( carpet loss) fugitive emissions

electricit y ID fan Standard parameters:

BFW pump Standard parameters: ##

coal (lignite) ## (actual)## Head developed ## PROCESS STEP REFERENCE steam generation Standard Operatin g blow down loss: ## unburnt in ash: ## Hidden loses: H2 & moisture: ## Radiation: ## Moisture in air: ##

process step process paramete r equipme nt

FD fan standard parameters: ## ##

pressure rating boiler ## (actual)

wet stream steam separation

electricity ##(actual)

air: ## (actual) ## (standard)

Hot condensate (#) ## (actual)

dry steam (##) ##(actual)

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Task 2e: Quantify losses through a material and energy balance

(0.5 1 day per focus area)

Try to balance inputs and outputs (what goes into a process must come out!)
Identify losses: energy, products, materials

Calculate costs of losses Be practical: this is the most difficult task!

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Energy Focus

Task 2e: Quantify losses through a material and energy balance

coal (lignite) water spray coal yard coal (lignite)
Coal fines( carpet loss) fugitive emissions

electricit y ID fan Standard parameters: 250 mmWC Head developed 200o C & 20kW

electricity

wate r

conditionin g chemical

manual screening and crushing 17.0 Mk/hr (actual) coal (lignite) 1.1 t/hr (actual)

Flue gases loss: 13.2% (actual) 2.25 Mk/hr (actual)

BFW pump Standard parameters: 8 t/hr at 13 kg/cm2

0.5 PROCESS STEP REFERENCE Mk/hr (actual) process steam generation step process paramete r equipme nt Standard 2 pressure 12 kg/cm 6 t/hr rating boiler Operatin g 10 kg/cm2 4 t/hr

FD fan standard parameters: 100 mmWC; 30o C & 15 kW at

blow down loss: 1.4% 0.24 Mk/hr (actual) unburnt in ash: 4.85% 0.83 Mk/hr (actual)

11.40 Mk/ht wet stream (actual) steam separation electricity 9 kW(actual) air: 12.61 t/hr (actual) Hot condensate (3%) 14.34 t/hr 0.09 Mk/hr (actual) (standard)

Hidden loses: H2 & moisture: 2.5 Mk/hour (actual) 14.4% Radiation: 0.17 Mk/hr (actual) 1% Moisture in air: 0.03 Mk/hr (actual) 0.15%

dry steam (97%) 11.3 Mk/hr

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Step 3: Identification of Options

Purpose: identify opportunities to improve

energy efficiency for the selected focus areas

Output: list of options that will be investigated

on their feasibility in step 4

Tasks and minimum time:

Task 3a: Determine causes of losses (0.5 day per focus area) Task 3b: Identify possible options (0.5 day per focus area)

Task 3c: Screen options for feasibility analysis (0.5 day)

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Task 3a: Determine causes of losses (0.5 day per focus area)
Brainstorm session with staff and others
Ask the question: Why are these losses occurring? Keep asking until you found the root cause Look for different causes:
Man Method Machine Material
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Task 3a: Determine causes of losses (cont.)

Fishbone diagram

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Energy Focus

Task 3a: Determine causes of losses (cont.)

Material losses with an energy-related cause
Low dye exhaustion caused by low temperatures Scale losses caused by cold air infiltration in rolling mills

Energy losses with an energy-related cause

High electricity use in rollers caused by overheating of bars in rolling mills High transmission and distribution losses caused by low power factor UNEP 2006
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Energy Focus

Task 3a: Determine causes of losses (cont.)

Energy losses with a material-related cause
Inefficient combustion caused by improper sizing of coal High steam consumption in dyeing process caused by too high liquor-to-cloth ratio

Poor product quality with an energyrelated cause

Thin zinc layer caused by high temperature of zinc bath in galvanizing Uneven strength of forged products caused UNEP 2006 by
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Energy Focus

Task 3a: Determine causes of losses (cont.)

Other examples
Low boiler efficiency caused by operating at <50% capacity
High electricity consumption due to compressed air leaks High steam consumption caused by uninsulated flanges High electricity consumption due to motor operating at varying loads

Do you know of any other examples?

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Task 3b: Identify possible options

(0.5 day per focus area)

Brainstorm session with staff and others

Ask the question: What can we do to reduce energy losses? Options can fall in the following categories:
Good housekeeping Improved process management Production process / equipment modification New technology / equipment Input material substitution On-site reuse / recovery Production of useful by-product Product modification
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Energy Focus

Task 3b: Identify possible options

(cont.)

A combination of options is likely Poor bleaching can be solved by:

Reducing the liquor-to-cloth ratio thereby increasing the bleaching bath temperature

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Task 3c: Screen options for feasibility analysis (0.5 day)

Put identified options in three groups:
Options that can be implemented directly Options that require further analysis Options that can be considered at a later stage

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Worksheet 15: Causes, identify options and screening

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Step 4: Feasibility Analysis of Options

Purpose:
Determine which options are technically, financially and environmentally feasible In what order feasible options should be implemented

Output: proposal that is approved by top

management with: Recommended options for implementation How to do this List of options that require further investigation
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Step 4: Feasibility Analysis of Options

Tasks:
Task 4a: Technical, economic and environmental evaluation of options

Task 4b: Rank feasible options for implementation (0.5-1 day)

Task 4c: Prepare implementation and monitoring proposal for top management approval (2-3 days)

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Task 4a: Technical, economic and environmental evaluation of options

The Team should (time depends on options):
Investigate which options are technically, economically and environmentally feasible Identify other possible reasons for implementing the option Think of possible barriers to implementing the option

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Worksheet 16: Option analysis and implementation (part for feasibility analysis)

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Energy Focus

Task 4a: Technical, economic and environmental evaluation of options

Technical
Location of power, steam, compressed air lines Handling capacity of existing system for new equipment

Environmental
Fluorescent tube lights use less electricity than incandescent lamps but contain toxic materials Bag filter reduces dust but uses electricity

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Task 4b: Rank feasible options for Implementation

Team meeting to give each option a Rank (0.5 1 day):
1. Implementation in short term (e.g. <1 year) 2. Recommended for implementation but in the longer term (e.g. 2-3 years) 3. Recommended for further investigation or consideration at a later stage 4. Unfeasible options

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Task 4b: Rank feasible options for Implementation (cont.)

For options to be implemented (rank = 1) (time depends on options):
Implementation and monitoring tasks Who is responsible Completion dates How much staff time required Comments

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Worksheet 16: Option analysis and implementation (part for implementation)

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Worksheet 17: Ranking of options

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Task 4c: Prepare implementation and monitoring proposal for top management approval

Prepare Implementation and Monitoring Plan

Introduction Number of options identified, options investigated for feasibility, feasible options, options requiring further investigation, and unfeasible options Options recommended for implementation in the short term Worksheets for each option

Obtain management approval

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Step 5: Implementation and Monitoring of Options

Purpose
Implement feasible options in order of priority Monitor results Discuss findings with top management

Output
Improved energy efficiency, reduced costs and reduced GHG emissions Agreement with top management about the next steps

Tasks
Task 5a: Implement options and monitor results (time depends on options) Task 5b: Evaluation meeting with top management (0.5 day)
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Task 5a: Implement options and monitor results

Carry out the Implementation and Monitoring Plan Record results for each option:
Economic results Environmental results Other results: e.g. any other benefits from the option and barriers encountered

Communicate results to staff

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Worksheet 16: Option analysis and implementation (part for feasibility analysis)

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Task 5b: Evaluation meeting with top management (2-4 hours)

Purpose:
Close the first round of energy efficiency projects Gain management commitment to continue with energy efficiency

Discuss the following:

Results How to communicate results internally and externally How to continue Additional options for implementation / investigation New focus areas to carry out more assessments How to integrate energy management throughout the companys systems
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Step 6: Continuous Improvement

Purpose: ensure that the company continues
improving energy efficiency in a systematic way that is integrated in company processes
(these are the key components of Cleaner Production!!)

Output:
Continuation of implementing energy efficiency options Integration of energy management into company processes

Task 6a: Prepare proposal to continue with

energy efficiency (2-3 days)
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Task 6a: Prepare a proposal to continue with energy efficiency for top management approval Write a proposal
Based on what was agreed with top management at the evaluation meeting

Considering new focus areas and options identified for later implementation / investigation
Include how to integrate energy management into company processes!!

Seek top management approval

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In Summary:
The Company Energy Efficiency Methodology helps companies to: Save energy
Reduce costs Protect the environment

Now and in the future!

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Training Session on the Company Energy Efficiency methodology

How to become Energy Efficient

THANK YOU
FOR YOUR ATTENTION

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Disclaimer and References

This training session was prepared as part of the development and delivery of the course Energizing Cleaner Production funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany) and carried out by the United Nations Environment Programme (UNEP) The session is based on materials from the Energy Efficiency Guide for Industry in Asia developed as part of the GERIAP project that was funded by the Swedish International Development Cooperation Agency (Sida) The textbook chapter is available on www.energyefficiencyasia.org
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