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Industrial Energy Efficiency Project Policy Framework ● Introduction of Standards Capacity Building ● Demonstration 1 The Case Study: Industrial Energy Efficiency Improvement Project IDC 11 June 2013

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NCPC Energy Audits Program for Industry Faith Mkhacwa, Project Specialist, Industrial Energy Efficiency Project National Cleaner Production Centre of SA

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Page 1: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration1

The Case Study: Industrial Energy Efficiency Improvement Project

IDC11 June 2013

Page 2: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Project Component• Effective National Policy Framework: Providing

support through facilitating the review of NEES

• Supportive Standards: ISO 50001

• Cadre of EnMS/ESO Experts: Training

• Target Industrial Clusters: Demonstration Plants, Implementation (EnMS, ESO and SME Assessments) and Case Studies

Page 3: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Energy Management Standard: ISO 50001• Purpose: Enable organizations to establish systems and processes necessary to improve energy

performance

• Applicable to all organizations

• Does NOT prescribe specific performance criteria with respect to energy

Page 4: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Other ISO StandardsDifferent standards → All critical → One CANNOT replace the other

Energy ManagementISO 50001

Environmental Management

ISO 14000

Quality Management

ISO 9001

Other Management Systems

Page 5: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Industrial Energy Efficiency BenefitsEnergy efficiency has demonstrated, time and again, that it

Saves industrial firms money Increase reliability of operations Has a positive effect on productivity and competitiveness Can offer attractive financial and economic returns Reduces exposure to rising energy prices Increases security of supply ….

Why it is not happening?

Page 6: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Barriers to Industrial Energy Efficiency• Management focus

• Lack of information and understanding

• Lack of adequate technical skills

• Poor monitoring systems and data

• Disconnection between capital and operating budgets

• Sustainability Risk

• Defensiveness

Page 7: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Ad hoc approach to managing energy

Page 8: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Structured approach to managing energy

Page 9: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Savings: 4 Small – Medium Chemical companies5 Medium – Large Textiles, leather & footwear companies

Option DescriptionSaving(Rand)

Investment(Rand)

SimplePayback (Yrs)

Environmental Benefit(per year)

CO2e(kg/yr)

Boiler Improvementi. Steam leaksii. Pressure controliii. Insulationiv. Boiler feed air controlv. Condensate returnvi. Steam trap maintenance

324 200 126 500 1.0

46 900 kg Low Sulphur Oil

3 kL/yr heavy fuel oil750kL Water

158 700

Compressor Controli. Air leak maintenanceii. Vairable speed controliii. Pressure controliv. Flow control (Accumulator)

177 232 329 975 1.9 267 641kWh 156 982

Energy Managementi. Washbath covers (insulation)ii. Washbath Insulation

37 295 n/a n/a31 116kWh303kg LPG

32 500

Lighting Retrofittingi. Replacement of bulbsii. Retrofit of Electronic Control Geariii. Natural lightingiv. Task lighting

479 937 753 511 1.6423 695 kWh

1.8kVA154 552

Page 10: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

EnMS ResultsIndustrial enterprises

that implemented EnMSBusiness as usual Organisations new to

energy management

2-3% Annual energy intensity reductions

1% Annual energy intensity reduction

10-20% savings during the first 2 years

•EnMS accelerate adoption of EE best-practices and technology upgrades, enhances productivity and competitiveness.

•Improve enterprises’ bottom line.

Page 11: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

EnMS Implementation VictoriesCompany Sector kWh Savings Comments

2011/12 2012/13

Arcelor mittal-Saldanha Works

Metals 81 325 527 10 600 000 Primarily no cost investments

Toyota- SA Automotive 4 484 533 1 717 511 Compressed Air, Lighting, Pumps, etc..

Gelvenor Textiles

Textiles 996 670 Tbc Only 3 projects

Saint-Gobain ConstructionProducts

917 916 Tbc Excludes ongoing water gauge project

87 724 646 12 317 511

Page 12: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Our approach to systems optimisation

Page 13: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Start with what you have...

...then look to address technology and capital intensive options...

Leakages in compressed air systems

Heat Exchanger fouling

Page 14: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Energy Systems Optimisation (ESO)Component Approach Systems Approach

- Segregate components- Analyse performance of each in isolation

- Look at how the entire group functions together

- How will changing one impact the other?

May result from education by a specific technology sales engineer (e.g.: VSD or steam trap)

More knowledge of system and its interactions required

2-5% efficiency gains on the total energy consumption

10-50% average efficiency gains

Shifting FOCUS from Component optimization to systems optimization!!!

Page 15: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Systems Approach

15 kW MotorEfficiency = 91%

Combined Motor & Pump Efficiency = 59%

System Efficiency = 13%

Page 16: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

ESO Example

Page 17: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

ESO Implementation VictoriesCompany Energy

SystemSavings Comments

Annualized

Rhodes Foods Group-Franchhoek

Steam R881 794 0.2 year payback (Not implemented)

Da Gama Textiles Steam R9 267 000 2.3 year payback (Implementation underway)

SAB Maltings Steam R6 603 028 1.0 year payback (Started system optimisation)

Arcelor Mittal-Saldanha Works

Pump R1 108 851 Cooling system Pump throttle settings changed.

Impala Platinum Pump R285 205 Switching off cooling system pump and fan.

Kraft Foods Electricity R223, 304 Switching off idle machines. Savings over shutdown.

R18 369 182

Page 18: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Sector Distribution of SME’s Audited

Page 19: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Participating companies

Page 20: Faith Mkhacwa NCPC

Industrial Energy Efficiency Project

● Policy Framework ● Introduction of Standards ● Capacity Building ● Demonstration

Thank youFaith Mkhacwa: Regional Project Manager-IEE

Telephone: +27(0)12 841 4097 Email: [email protected]

Websites: www.ncpc.co.za/www.iee-sa.co.za

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