integrated energy efficiency management chistopher smith global practice leader cis sustainable...

Integrated Energy Efficiency Management

Chistopher Smith

Global Practice Leader

CIS Sustainable Energy Forum

June 2, 2011

Driving results through integrated systems & cultural changeDriving results through integrated systems & cultural change

2CIS Sustainable Energy Forum, June 2011CIS Sustainable Energy Forum, June 2011

Topics

• Energy Efficiency Approach

• Key Sustainability & Energy Efficiency “Drivers”

• Proven Energy Efficiency Methods & Approaches

• Energy Efficiency Results


Corporate Approach to Strategic Issues

• Recognize strategic value & drive from the top

• Line accountability

• Appropriate support resources

• Integrated Management System

• Consistent implementation approach across entire operations portfolio

• Rigorous performance management

• Prioritize no-capital & low-capital improvement


Simplified Energy Cost Flow

Energy Input Energy Input

Core Manufacturing Process

Core Manufacturing Process

Energy SystemsEnergy Systems

Energy CultureEnergy Culture

Energy WasteEnergy Waste

• Energy Source Mix• Energy Pricing• Energy Source Mix• Energy Pricing

SourcingSourcing EfficiencyEfficiency • Energy cost is a function of pricing, consumption, GHG credits/options, and incentives

• Pricing is driven by market dynamics, but is negotiable

• Efficiency efforts are focused on minimizing waste

• Improvements to efficiency:

• Core Technology, capital-driven

• Energy System improvements, low capital/cost

• Changing behaviors – minimal investment


External drivers Volatility, magnitude and escalation of energy costs are

increasing the urgency to drive improvements in energy efficiency.

Governments and global institutions are introducing new energy management regulations and policies, pressuring companies & societies to re-think energy consumption.

Companies are expected to publish energy improvement goals and are being held accountable for delivering results.

Energy efficiency is being used as a powerful strategy to lower the cost of goods and attract customers at every level.

1. Volatility of resource costs

2. Public policy

4. Public accountability

5. Competition

The Investment community is increasing the weight of a company’s energy efficiency commitments and capabilities when making investment choices.

3. Access to capital

External Drivers are pressuring companies to improve Energy Efficiency


The DuPont Energy Challenges

DuPont has addressed similar energy challenges on a continuous basis since 1989

Our motivations:

Recognized energy cost is a significant part of our total operating cost

Experienced supply disruptions and cost was increasing rapidly

Energy efficiency would provide the greatest cost savings among global warming initiatives

Saw this as a way to outperform competitors

Overall, the health and welfare of the organization and its product lines would be at risk if we didn’t act.

Overall, the health and welfare of the organization and its product lines would be at risk if we didn’t act.


QualityQuality

EmissionsEmissions ResourcesResources

EnergyEnergy

ReliabilityReliability

MaintenanceMaintenance SafetySafety

People

Management

Culture

People

Management

Culture

Supply Chain

Supply Chain

Rooting effective energy management system in leadership enablement, clear organizational goals, effective staffing and training, and specific processes and actions

Integrating energy efficiency management into the strategy and execution of the ongoing business processes (capital, cost, resources, etc.)

Designing a practical and enduring energy management process to sustain and build on achieved goals – customized at each level of the organization

Achieving cost reductions and security of supply through efficiency and improved operating team capabilities

Energy EfficiencyEnergy Efficiency


Energy Planning Process

Recognize the Energy Challenge

Recognize the Energy Challenge

Develop an Energy PlanDevelop an Energy Plan

Energy Goals

Workshop

Assess Process Energy use

Assess Process Energy use

Identify Opportunities




Develop Capital Projects

Develop Capital Projects

Appropriate Capital FundsAppropriate

Capital Funds

Internal CapitalInternal Capital

External Funds(Performance Contracting)

External Funds(Performance Contracting)

Energy Plan Template

Plant Energy Assessment Template

Energy-related Six Sigma Projects Virtual

Workshops

“Top Ten” Energy Projects Initiative


DuPont Sustainability Results

Goal

achieve 5% ($50 Million USD) annual decrease in energy use, consistent with sustainability goals

Goal

achieve 5% ($50 Million USD) annual decrease in energy use, consistent with sustainability goals

DuPont Results 1990 - 2009

19% decrease in energy use

20% increase in production

$5B in cost savings

DuPont Results 1990 - 2009

19% decrease in energy use

20% increase in production

$5B in cost savings

* TRI = Toxic Release InventorySources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance* TRI = Toxic Release InventorySources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance

DuPont Reduction 1990 - 2009Air Carcinogens

92%

U.S. TRI* “Releases”77%

Air Toxics75%

Energy Efficiency Initiatives Examples

Integrated load controls Utilize Vented H2 in CB Boiler Improve Condensate Return Reduce Liquid Nitrogen Usage Steam Trap Maintenance Cooling Tower Water Temperatures Monitoring & Targeting Mindset and Behaviors…

Energy Efficiency Initiatives Examples

Integrated load controls Utilize Vented H2 in CB Boiler Improve Condensate Return Reduce Liquid Nitrogen Usage Steam Trap Maintenance Cooling Tower Water Temperatures Monitoring & Targeting Mindset and Behaviors…

Absolute Values

0%

20%

40%

60%

80%

100%

120%

140%

160%

Per

cen

t o

f 19

90 (

2004

fo

r w

ater

)

Production

Water

Hazardous Waste

CO2 eq.

1990 1995 2000 2005 20091990 1995 2000 2005 2009

EnergyEnergy


Example: Oil & Gas Client

Goal:• 10% Energy Reduction by 2015

Objectives:• Leadership commitment and cultural

change that leads to a sustainable corporate best practice Energy Management process

• Performance management process and the metrics necessary for managing the activities and projects

• Pilot of new Energy Management System at a Refinery

Estimated benefits from an Energy Efficiency Improvement Program

• Without investment: 3 – 5%

• With Capex <1000K$ 8 – 12%

• With Capex >1000K$ 16 – 24%

World-Class Refineries consume ~25% less than average

Project Objectives Possible Results


Example: Oil & Gas Approach

Corporate & Site Assessment/SurveyCorporate & Site Assessment/Survey

Implementation Plan DevelopmentImplementation Plan Development

Management System & KPI DevelopmentManagement System & KPI Development

Corporate Rollout Plan DevelopmentCorporate Rollout Plan Development

Organizational Development & TrainingOrganizational Development & Training

Process Assessment & Continuous Improvement Plan

Process Assessment & Continuous Improvement Plan

Corporate Energy Management SystemCorporate Energy Management System

1/1/101/1/10 6/1/106/1/10 11/1/1111/1/11


Example: Oil & Gas Approach

Energy Culture SurveyEnergy Culture Survey

Technical ReviewTechnical Review

Management System Technical AssessmentManagement System Technical Assessment

Leadership AlignmentLeadership Alignment

KPI DevelopmentKPI Development

Site PilotSite Pilot

1/1/101/1/10 6/1/106/1/10 11/1/1111/1/11

Corporate & Site Assessment/SurveyCorporate & Site Assessment/Survey

Implementation Plan DevelopmentImplementation Plan Development

Management System & KPI DevelopmentManagement System & KPI Development

Corporate Rollout Plan DevelopmentCorporate Rollout Plan Development

Organizational Development & TrainingOrganizational Development & Training

Process Assessment & Continuous Improvement PlanProcess Assessment & Continuous Improvement Plan

Corporate Energy Management SystemCorporate Energy Management System

Solution DesignSolution Design


DuPont’s Energy Efficiency Approach

• Identifying and elevating energy cost as a strategic business issue

• Implementing a vertically integrated management approach to drive results

• Developing skills and capabilities of people in the organization

• Identifying and executing the right projects to drive highest gain results

Driving performance results through integrated energy systems & cultural changeDriving performance results through integrated energy systems & cultural change


Christopher SmithGlobal Practice Leader

[email protected]+1.415.846.2993

Christopher SmithGlobal Practice Leader

[email protected]+1.415.846.2993


Introductory Slides

May be used as the first two slides to introduce DuPont and DSS


DuPont

Founded in 1802

• A Fortune Top 100 Science Company

• Recognized for experience and success in operational excellence

• Active Leader in environmental sustainability since 1989 – “Laggard to Leader”


DuPont

Consulting, Technology, & Training Services:

• DuPont Sustainable Solutions

• Global Safety Consultants Since 1998*

• Clean Technologies

• Training Solutions

• Sustainable Operations

• Environment, Energy, Sustainable Assets

Improve Performance, Release Capital…Increase Shareholder & Stakeholder ValueImprove Performance, Release Capital…Increase Shareholder & Stakeholder Value

*Has existed as a safety services business since the early 1970's. *Has existed as a safety services business since the early 1970's.

integrated energy efficiency management chistopher smith global practice leader cis sustainable...

Documents

recognized energy cost

energy improvement goals

escalation of energy

similar energy challenges

dupont energy challengesdupont

rethink energy consumption

rapidlyenergy efficiency

cost of goods