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Natural Gas Conservation ProjectAlexi Douvas
Joey Feitz John ForbesSean Reilly
Ashley Ritchie Jitka Sykora
PEPSI BEVERAGE COMPANY
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Agenda
Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions
• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution
• Conclusions
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GOAL: 5% savings
Other Objectives•Develop strategic and economic project rationales
•Developing key performance indicators (KPI)
•Create a facility wide awareness program
Turning Point
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Agenda
Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions
• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution
• Conclusions
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CONSTRAINTS FOR SAVINGS
Same level of product quality
No hidden costs
Quick wins under $2000
Taking things for granted
Turning Point
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Less Gas, Same Bill
Turning Point
Pepsi is projected to spend more money, even while using less gas.
Money Spent vs. mmBTU’s consumed
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Agenda
Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions
• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution
• Conclusions
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WHY ARE WE DOING THIS NOW?
Turning Point
6.4% gas prices increase
Equipment Breakdown
Government Regulations
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MOUNTING PRESSURE
Turning Point
Facility manager
Gas price
Breaking Equipment Regulations
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Agenda
Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions
• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution
• Conclusions
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Set Goals Keep Score Win!!!
Goal:5%
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Suggested Projects
Phase I – Quick Wins• Water Heater Schedule(1.1% gas saved)• Valve Insulation (0.3% gas saved)Phase II – Capital InvestmentsPhase III – Awareness
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Suggested Projects
Phase I – Quick Wins Phase II – Capital Investment
• Replace 40 year old boilers with the high efficiency heaters
• Temperature equalization• Incoming Air Temperature Controls• Process Pump Automation
Phase III – Awareness
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Suggested Projects
Phase I – Quick WinsPhase II – Capital InvestmentsPhase III – Awareness
• Share Wins on Local and National Level • Inspire a Proactive Efficiency• $92,000/year savings
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Scalable Approach to Natural Gas Efficiency
Natural Gas Nationwide ProgramTool to help individual plants accomplish
natural gas efficiency goals.
Identify Plant Inefficiencies
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Agenda
Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions
• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution
• Conclusions
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Set Goals Keep Score Win!!!QUICK WINS Cost % Gas Saved PaybackWater Heater Schedule $368 1.1% 2 months
Valve Insulation $2,001 0.3% 2.8 years
CAPITAL INVESTMENTS Cost % Gas Saved Payback
Direct Flo Heaters (4) $308,920 19% 4.0 years
Air Equalizer $70,890 16% 2.6 years
Incoming Air Temp. Control $13,679 8.9% 1 year
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Q & A
APPENDIX SLIDES•Boilers
•Thermal Equalizers•Heat Controls•Nationwide
Implementation•Makeup Air•Quick Wins
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What is the Current System?
How can this be improved?
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What Are the Options?
How do the systems compare?
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How Can the System be Improved?
What are the savings and costs of each option?
Annual Savings: Bill Savings: $43,409 annuallyAvoidance: $34,000 annuallyCarbon Dioxide: 1,646,166 lbs
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What are the Annual Savings?
How do the benefits of each system relate to total costs?
As gas prices trend up, the highest benefits are captured through implementing heater units
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What are the Aggregate Costs??
Given the costs and benefits, what will the annual expenditure schedules look like?
As savings accumulate, the long-term cost differentials reach over $500,000
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How do Annual Expenditures Compare?
Basic cost structure aside, what are the benefits of direct heating units?
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What Benefits Does the Direct Flo System Provide?
What different scenarios should you be prepared for?
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Financial Measurements
Total Capital Outlay $380,920
Annual Savings $43,409
4-Months Operational $33,592
6-Months Operational $41,415
8-Months Operational $55,220
Payback Period (adjusted for tax & dep.) 4 years
Gas Savings per Year 7,206.03-11,845.53 MMBtu
Annual Carbon Dioxide Emissions Savings 842,889.47-1,385,571.73 lbs
NPV
Worst Case $159,013
Base Case $189,624
Best Case $209,209
Return
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Heat Regulation: What is the current system?
How can this be improved?
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Automating the Process Pumps
Total Capital Outlay $640
Annual Savings $4,758
Payback Period 49 days
Gas Savings per Year 916 MMBtu
Return
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Nationwide Gas Savings Checklist
Track daily gas usage!
Use building temperature controls to eliminate unnecessary
equipment usage
Maintain Boilers
Perform visual inspection of steam distribution
Evaluate building heat distribution
Is exchanged air being heated on hot days?Are process pumps creating excessive demand?
How near replacement are they? Replace old boilers with Flo heaters?
Are all valves and pipes insulated?
Is heat being wasted at the ceiling?
Q+A
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Two-thirds of natural gas use goes toward heating the building
The temperature difference between ceiling and floor is estimated to be 10.8 degrees
The Air Pear reduces heating and cooling costs by equalizing air temperature throughout the room
Air Pear
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Because Heat Rises
Air Pear
• Stratifies the air by forcing a column of hot air from the ceiling to the cooler air below
• As the warm air is pushed to the floor, the Air Pear draws in the surrounding colder air and begins to rise again, creating a torus
• This action warms the cooler air, increasing the temperature of the room
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Utilizing Air Stratification
Total Capital Outlay for Both Areas $70,492
Annual Savings $36,255
Payback Period 2.6 years
Gas Savings per Year 7111 MMBtu
Return
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Makeup Air System Controls
•Previous settings were wasteful
•New goal: Heat turns on when temp falls below 45º
•Daily Savings: $323.32/day (temp. above 45º)
•2009 Potential Savings: $19,422.90
Total gas savings: 8.9%
Total Capital Outlay $13,679.04 (1-Time Cost)
Annual Savings $19,422.90
Payback Period 246 days
Gas Savings per Year 4494.36 MMBtu
Q&A
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Quick Wins: Water Heater Schedule
Return
Current Process:
•Hot water heated to 134 F
•7 days / week
•24 hrs / day
Recommended
Process:
• Program cycles based on temperature of hot water
•OFF at 134F
•ON at 100F
•Savings occur at off-peak hours
1.1% gas savings ~ $2,190 per year ~ 2 month payback period
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Quick Wins: Valve Insulation
Return
Current Process:
•Uninsulated necks of valves
•Loosing 4% radiant heat
Recommended
Process:•ISO covers for 9 uninsulated valve necks
•Corrosion prevention
•Easier maintenance
0.3% gas savings ~ $704 per year ~ 2.8-year payback period