VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD

Energy efficiency in the

industry complement for
renewable energies
Maria Holopainen
Programme Manager
VTT Technical Research Centre of Finland
12.11.2015
Santiago, Chile

Challenges in
Energy efficiency

Global energy transition is underway

The International Energy Agency (IEA) has
launched its 2015 World Energy Outlook.
Renewables contributed almost half of the
world's new power generation capacity in
2014 and have already become the secondlargest source of electricity (after coal). The
coverage of mandatory energy efficiency
regulation has expanded to more than onequarter of global energy consumption.
All adopt more energy efficient technologies,
although a prolonged period of lower oil prices
could undercut this crucial pillar of the energy
transition; diminished incentives and longer
payback periods mean that 15% of the
energy savings are lost in a low oil price
scenario.
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Source: IEA

Potential in Energy efficiency

Much has been done mainly by the large energy intensive
industries but untapped potential for EE remains huge.

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Source: IEA

Benefits of Energy efficiency

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Source: IEA

Challenges related to energy efficiency in industry

Low oil prices
No interest in investments in energy efficiency due to low cost of energy

Experts
Lack of critical skills of most value for the industry

Systemic thinking
Regional and cluster approach requires collaboration accross different
sectors and actors

Manufacturing industry
A lot of SMEs in manufacturing industry. SMEs have limited capacity to
either initiate innovative R&D or take up available solutions

Political environment
Energy Efficiency Directive (2012/27/EU)

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Opportunities from climate change to value creation

Energy efficiency a "two fold" perspective
Governments, NGOs, IEA etc
Reduced environmental impact
Incentives, CO2 tax, NOx tax, ETS

Industry
Reduced cost through reduced energy
consumption
Higher output for the same input

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A saved kW is
a good kW!

A kW giving 2 kg
food is better
than a kW giving
1 kg food!

European Union

EU 2020 Energy Strategy

By 2020, the EU aims to reduce its greenhouse gas emissions
by at least 20%, increase the share of renewable energy to at
least 20% of consumption, and achieve energy savings of 20%
or more. All EU countries must also achieve a 10% share of
renewable energy in their transport sector.

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Source: European Commission 9

EU 2030 Energy Strategy

a 40% cut in greenhouse gas emissions compared to 1990
levels
at least a 27% share of renewable energy consumption
at least 27% energy savings compared with the business-asusual scenario

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Source: European Commission 10

Energy efficiency measures at the Member State

level in EU
National Energy Efficiency
Action Plans set out estimated
energy consumption, planned
energy efficiency measures
and the improvements
individual EU countries expect
to achieve. Under the Energy
Efficiency Directive (2012/27/
EU), EU countries must draw
up these plans every three
years.

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Source: European Commission 11

Energy Efficiency Directive (2012/27/EU)

New national measures have to ensure major energy savings for consumers and industry
alike. For example:
energy distributors or retail energy sales companies have to achieve 1.5% energy
savings per year through the implementation of energy efficiency measures
EU countries can opt to achieve the same level of savings through other means such as
improving the efficiency of heating systems, installing double glazed windows or
insulating roofs
the public sector in EU countries should purchase energy efficient buildings, products
and services
every year, EU governments will carry out energy efficient renovations on at least 3% of
the buildings they own and occupy by floor area
empowering energy consumers to better manage consumption. This includes easy and
free access to data on consumption through individual metering
national incentives for SMEs to undergo energy audits
large companies will make audits of their energy consumption to help them identify ways
to reduce it
monitoring efficiency levels in new energy generation capacities
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Source: European Commission 12

Sustainable Process Industry through Resource

and Energy Efficiency (SPIRE)
A.SPIRE represents the private sector as a partner in the Sustainable Process
Industry through Resource and Energy Efficiency (SPIRE) Public-Private
Partnership (PPP) launched as part of the Horizon2020 framework programme.
A.SPIRE is dedicated to innovation in resource and energy efficiency and
enabled by the process industries. More than 130 industrial and research
process industry stakeholders from over 12 countries in 8 sectors in Europe:

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chemical
steel
engineering
minerals
non-ferrous metals
cement
ceramics
and water
Source: SPIRE

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The European Energy Research Alliance EERA

Joint Programme in Energy Efficiency in
Industrial Processes in Europe
25 R&D institutes
11 countries
Complement the work of industry lead initiatives in research
activities on EE (such as SPIRE) by focusing in activities with
lower Technology Readiness Level (TRL)
Opening access to infrastructures across Europe and joining
forces of the best institutes
Focus on:
Energy intensive industries
Manufacturing industries
Agro-food industrial processes

Source: EERA

Finland

Where is Finland?

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16

Finlands National Energy Efficiency Action Plan

With all measures factored in, Finland is on course to achieving an energy saving of
-20% in 2020.
Below a summary of the energy saving effects relevant to the Energy Services Directive
(Directive 32/2006/EC) in 2010, 2016 and 2020.
SECTOR

2010 GWh/a

2016 GWh/a (estimate)

2020 GWh/a (estimate)

Buildings

6 614

15 081

21 009

Public sector

393

674

842

Services private

189

433

506

Industry

1 962

2 145

2 396

Transport

1 478

3 461

5 669

Agriculture

1 222

2 316

2 896

Horizontal measures

1 278

4 259

Industry

8 844

9 693

10 807

Energy sector

611

2 336

3 460

TOTAL ENERGY SAVING ESD

11 858

25 388

37 577

TOTAL ENERGY SAVING NON-ESD

9 455

12 029

14 267

TOTAL ENERGY SAVING - ALL

21 313

37 417

51 844

ESD:

NON-ESD (sites in emissions trading):

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Source: Finlands National Energy Efficiency Action Plan

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Voluntary Energy Efficiency Agreements

generate significant savings in Finland
The aim of the agreements is to systematically guide companies and
communities to become more energy-efficient.
The principle of continuous improvement is a key element of all the agreements.
The companies and communities that have joined the agreement scheme set their
own targets for improving their energy use, implement the measures necessary to
reach them, and report annually on the realisation of the energy efficiency
measures and other activities aimed at its improvement.
An important aim of the agreement scheme in e.g. industry, energy and private
service sector as well as municipal sector agreements is also to further the
deployment of new energy-efficient technologies and services. The
government subsidises energy audits and analyses for companies and
communities that have signed up to the agreements, as well as energy efficiency
investments and deployment of new energy-efficient technology on a case-forcase assessment basis.
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18

Efficient Energy Use (EFEU) Programme in

Finland

Pre-commercial public-private research program

Aim of the program is to build knowledge and competence to enable future growth
in energy efficiency product and service innovations.
Focus is in system level solutions
Product and unit level efficiency improvement potential is diminishing
Potential is still large in system level solutions but requires coextensive -operation

Duration 5 years (2012-2016)

Planned budget 12 M
11 industrial partners and 5 research partners

www.cleen.fi/en/efeu

Expected Impacts
Activities
System energy
efficiency
analysis and
optimization
research
Research of
integrated
energy efficient
systems
Research of
energy efficiency
services and
solutions
Foresight and
dissemination

Expected
results
Finnish energy
efficiency expert
network to help
companies in R&D
Import of EE
competence to
Finland
Methods and
ideas to improve
radically EE in
target applications
New methods and
ideas to measure,
analyze, and
optimize EE
Ideas for new EE
business concepts

Direct
business
impacts
New high EE
products
New EE and
service business
concepts and
ideas
Company New methods to
R&D
improve
competitiveness
of existing
products and
plants by
increasing EE

Indirect
business
impacts
Availability of
EE focused R&D
network
Availability of
engineers that
understand EE
New tools for
Motiva

Research areas
1. Energy efficiency assessment and optimization methods for
complex systems
2. Fluid handling systems
High efficiency equipment and system design
Energy efficiency optimizing control schemes
Internet-based services for monitoring and diagnostics

3. Regional energy systems

Design of energy chains and regional energy systems
Energy efficiency optimizing control strategies
Business models and solutions

4. Future scenarios and implications for future energy efficiency

business opportunities

Energy efficient fluid handling systems

Goal is to provide the knowledge for developing the next
generation energy efficient fluid handling systems
Design of high efficiency pumps, pulpers and mixers
Energy efficiency optimizing control schemes
Internet-based services for monitoring and diagnostics

Energy efficient regional energy systems

Objective is to develop regional energy efficiency solutions and service
concepts. Energy efficiency control strategies will be developed for ship
energy systems and regional energy systems

Energy usage forecasting and optimisation

methods for closed energy systems
Energy efficient control methods for
regional energy systems
Business models and solutions for
regional energy systems

VTT Technical Research

Centre of Finland

VTT Technology for business

VTT Technical Research Centre of Finland Ltd is the
leading research and technology company in the
Nordic countries. We provide expert services for our
domestic and international customers and partners,
and for both private and public sectors. We use
4,000,000 hours of brainpower a year to develop new
technological solutions.
We develop new smart technologies, profitable solutions
and innovative services. We cooperate with our customers
to produce technology for business and build success and
well-being for the benefit of society.
VTT is a non-profit organisation and a crucial part of
Finland's innovation eco-system. VTT operates under the
mandate of the Ministry of Employment and the Economy.
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OF FINNISH
INNOVATIONS
include VTT
expertise. (*

Turnover 277 M
(VTT Group 2014), personnel
2,600 (VTT Group 1.1.2015 )
Unique research and
testing infrastructure
Wide national and
international cooperation
network
*) Source: Roles, effectiveness, and impact
of VTT, VTT & Technopolis Group, 2013.

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VTTs business areas

Knowledge Intensive
Products and Services

Smart Industry and

Energy Systems

Expert areas
Microelectronic systems
Intelligent sensor systems
Printed and hybrid functionalities
Communication systems
Digital systems and services
Health
MIKES Metrology

Expert areas
Lifetime management
Nuclear safety
Smart energy and system
integration
Systems engineering
Efficient machines and vehicles
Materials and manufacturing
Business ecosystems, value
chains, foresight

Solutions for Natural

Resources and Environment
Expert areas
Industrial biotechnology
Biofuels and bioenergy
Process chemistry and
environmental engineering
Biomass and food processing
Fibres and biobased materials

Business ecosystems, value chains, foresight

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26

Solutions
Solutions
Customised solutions are created in
co-operation with customers

Services
VTT services are available to the customer in all stages of the innovation
process from foresight to ensuring market access

Research infrastructure

Technologies and expertise

Partnership networks

Opportunity to utilise unique

testing and research equipment

Cross-disciplinary in-depth scientific and

business expertise available to the
customer

Comprehensive, crossdisciplinary scientific and

customer networks

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27

Services

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VTT promotes profitability and

competitiveness of companies and
society through innovation

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* Taloustutkimus Oy, VTT customer survey,

2014. Share of survey respondents who had
this benefit as their goal in their VTT project
and felt that the benefit was generated in the
project.

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How to work with us

For your company

exclusively

Together towards
bigger challenges

When you need support for your

companys R&D process, we
offer you confidential contract
research projects. The targets
are set by you and projects are
planned in cooperation.

When a group of companies

have a shared interest, we can
support in creating the suitable
consortia and provide the R&D
resources and the research
infrastructure needed.

The projects are started fast

and delivered efficiently. You will
own the results.

Projects can be privately funded

but they can also include public
funding.

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Look to the
future with us
When companies are interested in
developing and enhancing new
competencies and technologies,
we offer a solid network of
universities, research institutes and
companies in various publicfunded programmes (e.g. EU
research programmes).
Programmes are typically multinational and cross-scientific and
their timeframe is long. Results of
the public-funded programmes are
open for publicity.

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Continuous improvement of production process

with virtual rolling quality system
Customer: Rautaruukki Oyj
Challenge: How to improve the efficiency of the tandem cold mill to
produce high quality products cost-effectively. Sheet metal industry
customers require good strip dimensions accuracy and uniformity of
the mechanical properties. The manufacturing of over 10,000 different
steel grade/dimension combinations puts a lot of pressure on the rolling
process.
Solution: VTT and Rautaruukki have created a virtual quality system to monitor and analyse
the production process. The system uses virtual sensors and models to calculate quality
features based on process information and analysed history data. The intelligent virtual-sensor
technology is developed for estimating hard-to-measure variables. Automation system is
continuously updated after analysis to achieve the required quality.
Key benefits:
Continuous improvement of the setup models and process in terms of the tandem cold mill
rolling process.
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Improved filter efficiency with rotating

filter solution
Customer: Jeven Oy
Challenge: How to improve the efficiency of fat removal filters.
Solution: Jointly developed filter solution which efficiency is based
on a rotating filter patented by VTT. Rotating separation plate is
treated with nanotechnology-based coating, repelling dirt and fat.
The solution practically eliminates the need to clean the fat removal
filter and significantly enhances the filters ability to do its job compared
to current technology.
Key benefits:
New efficient filter solution which is easy and fast to clean, leading to cost and energy
savings.
New filter technology which can be applied to several industries such as machinery.
"The filter solution we developed together with VTT is extremely important for our
company. Solution as significant as this happens only once in a professional's career.
Seppo Vartiainen, Managing Director, Jeven Oy
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TECHNOLOGY FOR BUSINESS

Maria Holopainen
maria.holopainen@vtt.fi
Programme Manager
VTT Technical Research Centre of Finland