ISO 50001 Energy Management

Systems Standard-----------------------------------------

CME’s 4th Annual Energy Excellence Event

Halifax, Nova Scotia -----------------------------------------

March 8, 2011

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Canadian Industry Program

for Energy Conservation

(CIPEC)

What is CIPEC?

– Voluntary industry-government partnership established to improve Canada’s industrial energy efficiency.

What is CIPEC’s role?

– To promote greater energy efficiency, recognize and reward those who lead the way.

How do we do it?

– By working hand-in-hand with industry to encourage sectors to invest in, develop and use methods and industrial processes that are more energy efficient;

Who do we work with?

– industrial facilities, industry leaders, other government departments, associations, utilities, service providers

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CIPEC Portfolio

Tools

• CanMost

• Boiler Efficiency Calculator

• Energy Savings Toolbox

(Audit Manual and Tool)

• RETScreen Int’l

• Fans, and more

Training• Dollars to $ense

(D2$ workshops)

• Webinars on topics of

interest (i.e. ISO 50001)

• Customized Workshops

Incentives & Assessments• Process Integration

(PI) Study Incentive

• Computational

Fluid Dynamic (CFD) Study Incentives

• Special Projects

• Other (tbd)

Information

• Sector Task Forces

• Tip Sheets

• Case studies

• Website

• Energy 2011 (Nov 2011)

• Heads Up CIPEC

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Introduction to

ISO 50001

• The purpose of this standard is to enable organizations to establish systems and processes necessary to take a systematic approach to achieve continual improvement of energy performance(energy efficiency, use, consumption and intensity).

• The standard should lead to reductions in energy cost, greenhouse gas emissions and other environmental impacts.

• The standard is applicable to all types and sizes of organizations

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Context

• Canada, along with 42 other countries, is participating in the development of the new ISO 50001 standard for energy management systems

• ISO 50001 is currently at the Final Draft International Standard stage.

• The final standard is expected to be published in mid 2011.

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Context (cont)

• Ireland, Denmark, UK, USA, China, Sweden and Spain have voluntary national energy management system (EnMS) standards.

• The EU countries have adopted the European EnMS, EN 16001, which was published July 2009.

• The above countries, plus Canada and 34 others, intend to adopt ISO 50001 (in whole or in part).

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Lessons Learned

• Industries that implement and maintain an EnMS system typically save 10-20% of energy within the first 5 years

• Enabling programs and measures greatly accelerate uptake of an EnMS

• EnMS should be developed in a way that it can be integrated into the existing organizational culture

• The implementation of EnMS requires significant training and skill. There is a need to build not only internal capacity within the organization, but also external capacity from knowledgeable experts to help establish an effective implementation structure

• Typical certification costs are $12K to $20K per site

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Sustainable energy management should

incorporate technical best practices with

management best practices

Management and Technology

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ISO 50001 Framework

Technical/Management Interaction

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Process Savings OpportunitiesImprovements in Management Processes can achieve savings of

1-2% in annual expenditures, without significant investment

Program Savings OpportunitiesImplementation of key programs can achieve savings of 5-10% in

annual expenditures with nominal investment of resources

Project Savings OpportunitiesExecution of Capital Improvement Projects can achieve savings of

10-20% in annual expenditures, but often require sizeable investment

Potential Energy

Cost Savings

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Reactive v. Sustained

Energy Cost Savings

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Guidelines for drafting

ISO 50001

• For the working draft of ISO 50001, sub-teams identified “the best” of what is found across the world.

• The standard must be practical for small/medium size organisations (SMO).

• SMO should find this new standard effective in accelerating the impact of energy efficiency on their operations.

• The standard must apply to developing and developed countries: a high level document that is a practical tool in any country.

• The standard has a narrow scope: energy efficiency.

• The standard is flexible. Defines « what » but not « how ».

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Outline of Draft ISO

50001 Standard

1. Scope2. Normative References3. Terms and Definitions4. Energy Management System Requirements

1. General Requirements2. Management Responsibility3. Energy Policy4. Energy Planning5. Implementation and Operation6. Checking Performance7. Management Review

Annex A – Guidance on the use of the standard

(Note: Document is 13 pages in length plus annex)

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ISO 50001 Key Points

ISO 50001 requires an organization to:– Conduct an energy review (analyze energy data,

identify areas of significant energy use and identify areas for energy performance improvement)

– Establish an energy baseline

– Establish energy objectives and targets that are measureable and have timelines for achievement

– Establish an action plan to achieve energy objectives and targets

– Implement the action plan

– Check performance

– Monitor, document and report all the above

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ISO 50001 Timeline

• Sept 2008: first ISO meeting; Washington

• Sept 30, 2008: 1st working draft (WD) for comments

• Dec 5, 2008: 2nd WD for comments

• March 2009: second ISO meeting; Rio de Janeiro

• Sept 19, 2009: vote and comments on committee draft

• Oct 19, 2009: results of vote

• Nov 2009: third ISO meeting; London

• March 2010: issue draft international standard

• October 2010: fourth ISO meeting; Beijing

• Mid 2011: standard to be published

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Progress To-Date

• Over 500 pages of input from 42 countries have been

addressed at the 4 international meetings held to-date.

Approximately 100 representatives participated in each

meeting.

• The Canadian Advisory Committee, a 22 member group

comprised of representatives from industry, government,

utilities and academia, has provided extensive input to

each of the ISO 50001 drafts

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Canadian Advisory

Committee: Membership

Ron Morrison (Chair) Treasurer of the Board, Canadian Manufacturers & Exporters

Michael Burke (Vice-Chair) Director, IPD OEE Natural Resources Canada

Lauri Gregg Principal LCG Energy Management Group

Derek Henriques Energy Efficiency Consultant

Kees Versfeld Energy Management Leader, Syncrude Canada Ltd

Yves Veilleux Manager, Environmental Affairs, IBM Canada

Derrick Cameron Manager, Environmental and Technical Services, NewPage Port Hawksbury Ltd.

Sue Forest Environmental Affairs Manager, Chrysler Canada Inc.

Graham Houze Manager, Engineering and Environmental Services, Dyno Nobel Nitrogen Inc.

Martin Vroegh Environment Manager, St. Marys Cement Inc.

John Nyboer Executive Director CIEEDAC / EMRG School Resource & Environmental Management Simon Fraser University

Raymond Côté Professor and Director, Eco-Efficiency Centre, Dalhousie University

Jim Ciccateri Senior Policy Advisor, Industrial Energy Efficiency, BC Ministry of Energy, Mines and Petroleum Resources

Sean Brady Director, Demand Response and Industrial Programs, Ontario Power Authority

Denis-Claude Castonguay Chargé de programme, Agence de l’efficacité énergétique du Québec

Grant McVicar Director, Office of Energy Conservation Saskatchewan Research Council (SRC)

Ahmad Husseini Canadian Standard Association

Bill Huzar Consumer Council of Canada

Mike Dudar Division Manager, Industrial and Commercial Solutions, Manitoba Hydro

Kevin Wallace Industrial Marketing Manager, BC Hydro Power Smart

Cheryl Campbell Principal, Cheryl Campbell, Professional Auditing Services

Michael De Wit Senior Manager, ICF International

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Implementation of

ISO 50001 EnMS in Canada

• Develop national standard; attempt to harmonize with ISO and U.S.

• Build on the success of the CIPEC Energy Management Information System (EMIS) manual. Develop an EMIS workshop.

• Identify early adopters to showcase the value proposition of the EnMS.

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ISO Pilot Projects

• Ontario Power Authority and NRCan entered an agreement with Hatch Ltd. to support the implementation of a formal energy management standard in five manufacturing facilities in Ontario.1. Par-Pak (plastic packaging),

2. Lincoln Electric (welding),

3. Georgia Gulf - Royal Group (plastic building products),

4. Lassonde Beverages (juice packaging),

5. CertainTeed Gypsum (drywall board)

• Objectives• Clarify the benefits of applying the Standard

• Increase capacity for its application

• Help develop a platform for promotion and implementation

• Based on the ANSI/MSE 2000-2008 and draft ISO 50001 standards

• The pilot program will run until November 2011, and may be used to help develop future energy management system support initiatives in Canada

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ISO Pilot Project (cont’d)

• Enbridge and NRCan are participating in a pilot program with global technology firm 3M to identify energy performance improvement opportunities and to develop and implement actions to maximize energy performance in a Canadian plant. The project will:– Support the development and implementation of the ISO 50001 EnMS

with additional requirements to achieve and document energy intensity;

– Incorporate improvements in accordance with the Superior Energy Performance Program;

– Identify energy performance improvement opportunities;

– Develop and implement projects that support the energy intensity improvements;

– Verify the energy savings generated by the projects;

– Bring the 3M Brockville plant to certification ready status under the draft ISO 50001 EnMS.

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Path Forward

• Develop and adopt a harmonized national energy management systems standard

• Determine roles for CIPEC, NRCan, provinces/ territories, utilities, industry, the Canadian Standards Association and others to facilitate the early adoption of ISO 50001