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Energy Efficiency Energy Efficiency MethodologyMethodologyEnergizing Cleaner ProductionEnergizing Cleaner Production

Management CourseManagement Course

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Training Agenda: Company Energy Training Agenda: Company Energy Efficiency methodologyEfficiency methodology

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Introduction to the methodology

Methodology step by step

• Purpose, outputs and tasks

• Company examples

• Worksheets

• Energy focus

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IntroductionIntroduction

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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 EfficiencyBenefits from Energy Efficiency

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• 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 MethodologyThe Methodology

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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 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

The Methodology is based on:The Methodology is based on:

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Com

pany Ener gy

Ef fici ency m

et hodology

• 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 1: Planning and Organization

• 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 2: Assessment

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

Step 3: Identification 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

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

Step 5: Implementation and Monitoring of Options

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

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

• 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 1: Planning and Organization

• 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 2: Assessment

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

Step 3: Identification 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

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

Step 5: Implementation and Monitoring of Options

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

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

6-Step 6-Step Cleaner Cleaner Production Production ApproachApproach

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Information under each StepInformation 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 OrganizationStep 1: Planning and Organization

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Purpose: • Obtain top management commitment

• Plan and organize an energy assessment

Output:

• Written proposal with selected steps and tasks to improve the company’s energy efficiency

• Approved by top management.

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Step 1: ContinuedStep 1: Continued

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

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Purpose of first meeting:

Top management: • Get commitment of company middle managers, staff

and/or external facilitators to carry out a pre-assessment

• Write a proposal for a detailed energy assessment

Company middle manager or external facilitator:

• Get top management’s approval for a pre-assessment

• Write a proposal for a detailed energy assessment

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Task 1a: Meeting with Top Task 1a: Meeting with Top Management Management (continued)

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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 Worksheet 1: Reasons for Energy EfficiencyEfficiency

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Worksheet 2: Energy Management Worksheet 2: Energy Management MatrixMatrix

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Worksheet 3: Factors influencing Worksheet 3: Factors influencing the energy assessment approachthe energy assessment approach

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

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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 company’s Accountant or Finance Manager

• A communications or training person

• A top management representative

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

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Team should have

• Knowledge of energy equipment

• Energy intensive production processes

• Access to energy data

Typical positions

• Utilities Manager

• Energy Manager

• Maintenance Engineer

EnergyFocus

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Worksheet 4: Team Members and Worksheet 4: Team Members and RolesRoles

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

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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 (GHG’s) emissions

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

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Include auxiliary sections in the general production flow chart

• Water treatment

• Boiler and steam systems

• Compressed air systems

• Air conditioning / refrigeration

• Ventilation

EnergyFocus

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

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Production and resource data should also include

• Fuel consumption rates and costs

• Electricity consumption and costs

• Fuel mix

• Electricity bills from utility

EnergyFocus

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

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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)

EnergyFocus

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Worksheet 6: General Production Worksheet 6: General Production Flow ChartFlow Chart

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Worksheet 7: Production and Worksheet 7: Production and Resource DataResource Data

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Worksheet 8: Inventory of Major Worksheet 8: Inventory of Major EquipmentEquipment

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

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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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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!)

EnergyFocus Task Task 1d: Select focus areas 1d: Select focus areas (cont.)

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Worksheet 10: Selection of Focus Worksheet 10: Selection of Focus AreasAreas

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Task 1e: Prepare assessment Task 1e: Prepare assessment proposal for top management proposal for top management approval approval (2 – 3 days)

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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: AssessmentStep 2: Assessment

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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: AssessmentStep 2: Assessment

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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 trainingTask 2a: Staff meeting and training

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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 Task 2b: Prepare focus area flow charts charts (>2 hours per focus area)

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

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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

EnergyFocus

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Task 2c: Walkthrough of focus Task 2c: Walkthrough of focus areas areas (>0.5 day per focus area)

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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 Worksheet 14: Walkthrough observationsobservations

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Task 2d: Quantify inputs and outputs Task 2d: Quantify inputs and outputs and costs to establish a baselineand costs to establish a baseline

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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, Worksheet 13: Process flow chart, inputs/output, energy balanceinputs/output, energy balance

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Task 2d: Quantify inputs and outputs Task 2d: Quantify inputs and outputs and costs to establish a baseline and costs to establish a baseline (cont)

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Examples of material-related parameters for the boiler house

• Fuel and electricity

• Water

• Blow down

• Ash

• Steam produced

• Condensate recovered

EnergyFocus

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Task 2d: Quantify inputs and outputs Task 2d: Quantify inputs and outputs and costs to establish a baseline and costs to establish a baseline (cont)

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Examples of energy-related parameters for the boiler house

• Pressure

• Temperature

• Flue gas composition

• Draft

• Radiation

Note: specific monitoring equipment may be needed

EnergyFocus

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coal yard

manual screening

and crushing

ID fan Standard

parameters: ## Head developed ## PROCESS STEP REFERENCE

process step

steam generation

process paramete

r

Standard

equipment

boiler

pressure rating

Operating

steam separation

FD fan standard parameters: ## ##

BFW pump Standard parameters: ##

Hidden loses: H2 & moisture: ## Radiation: ## Moisture in air: ## air:

## (actual) ## (standard)

## (actual)

water

electricity

conditioning chemical

dry steam (##) ##(actual)

## (actual) wet stream

unburnt in ash: ##

blow down loss: ##

electricity

## (actual) coal (lignite) ## (actual)

coal (lignite)

coal (lignite)

water spray Coal fines( carpet loss)

fugitive emissions

Hot condensate (#) ## (actual)

electricity ##(actual)

EnergyFocus

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Task 2e: Quantify losses through a Task 2e: Quantify losses through a material and energy balance material and energy balance (0.5 – 1 day per focus area)

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

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electricity 9 kW(actual)

Flue gases

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

coal yard

manual screening

and crushing

ID fan Standard

parameters: 250 mmWC Head developed 200o C & 20kW PROCESS STEP REFERENCE

process step

steam generation

process paramete

r

Standard 12 kg/cm2

6 t/hr

equipment

boiler

pressure rating

Operating

10 kg/cm2

4 t/hr

steam separation

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

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

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% air:

12.61 t/hr (actual) 14.34 t/hr (standard)

0.5 Mk/hr (actual)

water

electricity

conditioning chemical

dry steam (97%) 11.3 Mk/hr (actual)

11.40 Mk/ht (actual)

wet stream

unburnt in ash: 4.85% 0.83 Mk/hr (actual)

blow down loss: 1.4% 0.24 Mk/hr (actual)

electricity

17.0 Mk/hr (actual) coal (lignite) 1.1 t/hr (actual)

coal (lignite)

coal (lignite)

water spray Coal fines( carpet loss)

fugitive emissions

Hot condensate (3%) 0.09 Mk/hr (actual)

EnergyFocus

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Step 3: Identification of OptionsStep 3: Identification of Options

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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 Task 3a: Determine causes of losses losses (0.5 day per focus area)

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

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Fishbone diagram

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

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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

EnergyFocus

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

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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 energy-related cause

• Thin zinc layer caused by high temperature of

zinc bath in galvanizing

• Uneven strength of forged products caused by low/non-uniform temperature in furnace

EnergyFocus

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

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Other examples

• Low boiler efficiency caused by operating at <50% capacity

• High electricity consumption due to compressed air leaks

• High steam consumption caused by un-insulated flanges

• High electricity consumption due to motor operating at varying loads

EnergyFocus

Do you know of any other examples?

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Task 3b: Identify possible options Task 3b: Identify possible options (0.5 day per focus area)

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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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Task 3b: Identify possible options Task 3b: Identify possible options (cont.)

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A combination of options is likely

Poor bleaching can be solved by:

• Reducing the liquor-to-cloth ratio

• thereby increasing the bleaching bath temperature

EnergyFocus

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

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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 Worksheet 15: Causes, identify options and screeningoptions and screening

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Step 4: Feasibility Analysis of Step 4: Feasibility Analysis of OptionsOptions

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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 Step 4: Feasibility Analysis of OptionsOptions

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

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

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

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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

EnergyFocus

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Task 4b: Rank feasible options for Task 4b: Rank feasible options for ImplementationImplementation

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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 stage4. Unfeasible options

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

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

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Worksheet 17: Ranking of optionsWorksheet 17: Ranking of options

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

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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 Step 5: Implementation and Monitoring of OptionsMonitoring of Options

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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 Task 5a: Implement options and monitor resultsmonitor results

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

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

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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

company’s systems

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Step 6: Continuous Improvement Step 6: Continuous Improvement

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

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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: In Summary:

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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 Training Session on the Company Energy Efficiency methodologyEnergy Efficiency methodology

How to become How to become Energy EfficientEnergy Efficient

THANK YOUTHANK YOU

FOR YOUR ATTENTIONFOR YOUR ATTENTION

Com

pany Ener gy

Ef fici ency M

et hodology

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Com

pany Ener gy

Ef fici ency M

et hodology

• 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

Disclaimer and ReferencesDisclaimer and References