Benchmarking Industrial PlantEnergy EfficiencyHow EPA’s ENERGY STAR®ProgramHelps Industry Improve EnergyEfficiencyElizabeth DutrowUS Environmental Protection AgencyENERGY STAR Industrial PartnershipMay 26, 2010ENERGY STAR•Voluntary government partnership–Goal: reduce carbon dioxide emissions–Introduced by EPA in 1992 to enable companies to improve in energy efficiency•The national symbol of energy efficiency and environmentalprotection–Awareness exceeds 70% of U.S. households–A brand owned and managed solely by the government•Focused on improving energy efficiency of:–Products–Homes–Plants & buildings•For industrial businesses, EPA helps manufacturers improvestrategic energy management.ENERGY STAR & Industry•EPA’s goals:–“Shift the curve” of energy performancefor manufacturing industries–Identify the transformative practices toachieve top energy performance–Help companies succeed in achieving topperformanceBarriers to energy efficiencyprevent progress–Lack of objective measurement methods–Scarce information on how to improve–Lack of corporate commitmentENERGY STAR provides business aclear pathway to succeed1.Evaluate risks, prepare energy strategywith senior management2.Build company-wide energy program,using ENERGY STAR guidelines forenergy management3.Look to suppliers and customersStep 1 - energy strategyEnergy Strategy for theRoad Ahead•helps companies prepare a strongenergy strategy•developed with 20 leading companiesand their senior managers•Report at:www.energystar.gov/energystrategyStep 2 - guidance for managingenergyENERGY STARGuidelines for EnergyManagement•help to put in place a strongenergy management program•help to benchmark energy use& practices•consulted by thousands oforganizations•based on the successful practicesof ENERGY STAR’s partners•www.energystar.gov/guidelinesStep 3 - help in managing energyacross the value chainEnergy Value ChainInternalOperationsUpstream /InputsDownstream /OutputsEnergy efficiencyEnergy as ‘lens’ forgrowth & opportunityNew approaches toenergy diversificationand risk managementEfficiency enforcementReduced embeddedenergyProduct and service lifecycle energy requirementsProduct recycling andrepurposingNew technologiesProduct and serviceredesignSupplierEngagement StrategiesCustomerEngagement StrategiesInternalImplementation StrategiesENERGY STAR designed toaddress the barriersBarrier•Lack of a bearingon efficiencySolution•Benchmarking isan objectivemeasurementmethodLet’s get on the same page•Benchmarking–The process of comparing to somethingsimilar or the best•Energybenchmarking–The process of comparing the energyperformance of facilities, processes orequipment to something similar or the bestTypes of benchmarking•Internal–compares performance against internal baseline or benchmark•External–compares performance against a metric “outside” of theorganization–identifies “Best in Class” performance•Quantitative–data-driven; compares actual numbers•Qualitative–based on best practices; compares actionsBenchmarking’s place in energymanagement•Fundamental practice•Energy reductions and projectmeasurement are nice but onlybenchmarking proves improvementshave had an effect•Can be based on comparison ofmanagement practices or energydata–practicebenchmarking gives anidea of where to improve byidentifying best energy managementpractices–energy databenchmarking informshow well an entity might performand improve and the position of thatentity in terms of energyperformanceENERGY STAR Guidelinesfor Energy ManagementVariety of benchmarking inenergy managementEnergyManagementObjectiveScopeScaleFocusTime FrameAssessequipmentefficiencyEquipment or processInternal– comparison against other ownedequipment or processExternal– comparison to industry standardor cooperative study with otherorganizationsPeak demand periodThree month sampleWeeklyMonthlyAnnualContinuous from baselineAssessfacilityperformanceWhole facility orsub-metered portionInternal– comparison of single facility overtime.Comparison of similar facilities withinsingle organizationExternal– comparison of facility againstnational performance ratingContinuous from baselineMonthlyQuarterlyAnnualAssessdepartment ordivisionalenergy useFacilities orsub-metered portionsof facilitiesInternal– comparison against internal subdivisionsContinuous from baselineWeeklyMonthlyQuarterlyAnnualAssessorganizationalperformanceAll facilitiesInternal– comparison over time or towardsgoal.External–Comparison of portfolio average against anational performance ratingContinuous from baselineMonthlyQuarterlyAnnualENERGY STAR benchmarks•External•Define “best in class” for an industry orbuilding type•Industry sector-specific at 6 digit NAICScode (or more refined)•Energy data at the whole facility level•Source energy intensity•Normalized for key variablesENERGY STAR IndustrialFocusesDelivering energy management tospecific industries throughENERGY STARENERGY STAR’s industrialsector-specific focusesCollaborative process to develop:Energy Performance Indicator (EPI) to benchmark/rate plantenergy performanceEnergy GuideFacilitates:Sharing of best practicesNetworkingDevelopment of stronger company energy programsResults in:Sophisticated plant benchmarking toolRecognition for energy-efficient plants with the ENERGY STARIncreased momentum for continued improvementImproved efficiency within an industry sectorPrevention of carbon emissionsEnergyEfficiency:1 - 100Benchmarking plant energy use:Facility energy performance ratingsFuelEfficiency:MPGBenchmarking drives performanceAnswers:“If all plants in the industry use energy as this one, what percent ofplants in the country would be better, and what percent would be worse?”Standardized measurement:the plant EPI•Plant energy performance indicators (EPI)–Enable a higher level of energy management•Compare how efficiently a plant uses energy relative to those of itsindustry•Enable goal setting•Empower management to require greater energy performance fromplants•Score plants on apercentile basis (0-100),normalized to a plant’sunique configuration–ENERGY STAR defines score of 75or above to be energy-efficient; 50is average–www.energystar.gov/epis–www.energystar.gov/industrybenchmarkingtoolsWhat EPA’s national level plantenergy benchmarking accomplishes•Empowers industry toshift the curve of energyperformance–For most companies, the ENERGY STAR EPI is thefirst time they are able to see how their plants’ energyperformance compares to that of their industry•Enables companies in the benchmarked industrytoset competitive goalsfor plant improvement•EnablesEPA to gauge improvementof anindustry’s energy performance over timeEnabling companies to make informedenergy investment decisions11007550InvestTuneReward &Learn25Invest &Tune20High scorersprovide lessonslearned andlabel candidatesRCx & O&Mimprovementsyield savings andlabel candidatesBest investmentopportunities are in lowerquartiles - greatest potentialfor improvementEnergy Performance RatingMore help to improve: EnergyGuidesPractices and technologies available now toimprove energy efficiency in an industry•Identify existing & promising emergingtechnologies•provide brief overview of technology or practice•review its limitations•quantify potential energy and cost savings•estimate payback periods•provide case study from application•highlight industry success storiesExample:Cement Industry Energy GuideNo Capital CostShort PaybackCapital ProjectsPreventative maintenanceSeal Replacement (kiln)Shell heat loss reductionOptimization of compressedair systemsLow-Carbon FuelsIntergrinding LimestoneReduced fineness cementIncreased Alkali ContentEnergy & Process Controls:- Kiln- Raw material- Finish GrindingHigh-efficiency ClassifierImprove CombustionSystemIndirect FiringOptimize Grate CoolerHigh efficiency MotorsAdjustable Speed DriveBlended CementSlags in ClinkermakingEfficient Grinding MillsRoller MillGrate CoolerLow-Pressure DropPreheatersMulti-Stage PreheatersPrecalcinerOver 40 efficiency measures for cement plantsCase study•Example: U.S. cement plant•Initial cement plant ENERGY STAR EPI score:61•Upgraded in 2002, EPI verified energy reductions of 40%–Energy efficiency improved by2.5 mmBtu/short ton of clinker•Commercially available technologies employed (described in Energy Guide) :–Improved grinding mills–Roller mills–Improved preheaters–Indirect firing•New ENERGY STAR EPI score:98–national energy efficiency scoring system demonstrated this plant is now one of themost efficient cement plants in the U.S.Results – EPA experience with USauto assembly plants•Based on ENERGY STAR benchmarking of autoassembly plants, EPA has seen fuel usage inthe industry improve by 12 percent over a fiveyear period.•The level of inefficiency has also dropped by 1.0mmBtu/vehicle.•The range of performance has also narrowed.–This means that while the best auto assembly plantshave improved, the others have more than "kept up"with this improvement.ENERGY STAR benchmarkingresources•Plantsuse ENERGY STAR’sEnergy Performance Indicators(EPIs)•Commercial Buildingsuse ENERGY STAR’sPortfolio ManagerIndustrial EPIsMotor Vehicle AssemblyWet Corn MillingCement ManufacturingPetroleum Refining (privatesystem recognized)PharmaceuticalsFood Processing (variety)Glass Manufacturing (variety)Petrochemicals (draft)Pulp and Paper (drafts)Steel (draft)Portfolio ManagerOffice BuildingsHospitalsK-12 SchoolsHotelsSupermarketsRetail StoresWarehousesBank BranchesResidence HallsWaste Water TreatmentCourt housesMedical Office BuildingsENERGY STAR Benchmarking:Auto Assembly 2000-2005EPA, Duke UniversityLessons•It is possible to benchmark plants and helpindustry improve•Benchmarking takes data (lots of it) andtime•Benchmarked entity should behomogeneous.Energy Management Systems•Growing interest in the role ofmanagement systems to promote andensure energy efficiency.–EPA’s ENERGY STAR program has been promoting a systemsapproach since 2003.•Energy Management Systems (EnMS) can help organizationsachieve greater savings.•EnMS can help organizations build capacity and focus oncontinuous improvement•EnMS provide a means(not an end) towards increasing efficiency•EnMS do not measure or guarantee energy savings or CO2reductions on their own.Management Systems ApproachesManagement systems promotecontinuous improvement through:•Organizational practices•Organizational policies•Team development•Planning & evaluation•Tracking & Measurements•Communication & employeeengagementENERGY STAR Guidelinesfor Energy ManagementStandardization ofEnergy ManagementCurrent efforts to create standards for energy management:•ISO 50001 - Draft Energy Management Systems underdevelopment•EN 16001 - European Energy Management Standards•ANSI MSE 2001:2008 – Energy Management Standard•DS 2403:2001 – Danish Energy Management Standard•NSAI IS 393 – Irish Energy Management Standard•KATS KSA 4000:2007 – Korean Energy Management Standards•ASTM standards being developed for:–Compressed systems, motors, steam systems, etc.Considerations•Elements of an EnMS can be applied without achieving certification–E.g: ENERGY STAR Guidelines & Partners•EnMS Standards (ISO, EN, etc) are designed to be flexible–Scope, boundaries, etc. are defined by the user–A single processes / production lines can becertified within a plant to meet thestandard–Determination of applicability ofstandard is done by paid Auditor•Certification is not based on efficiency or savings–ISO 50001, etc. do not establish performance standards–Achieving a target or maintaining alevel of performance is required forcertification or re-certification•Certification is expensive–Internal personnel costs–Auditor and registry expenses–Few companies have pursuedcertification to dateSummary•Asystemsapproach to energy management is good to promote:–Organizational & facility-wide EnMS are the most effective–Shifts thinking from “projects” to “programs” to achieve greatest benefit•There are multiple pathways for promoting & implementing anEnMS.•The effectiveness of an EnMS is tied to its scope, goals, and thebenchmarks are used.•Energy performance (efficiency, reductions etc.) ultimatelyreflectsthe effectiveness of an EnMS and corporate energy program.ContactElizabeth DutrowDirector, Industrial Sector PartnershipsENERGY STAR ProgramUS EPA(202) 343-9061dutrow.elizabeth@epa.govAll resources found at:www.energystar.gov/industry