1. Assessing Plant Performance for Energy Savings Elizabeth Dutrow ENERGY STAR dutrow.elizabeth@epa.gov

2. Today’s discussion Critical foundation for plant assessments – a strategic energy management program Background on assessments Resources for assessments

3. Energy management Energy management Can be: –Informal –Decentralized, not centrally coordinated or managed –Project-oriented, not program-oriented –Cyclical (i.e. in the support a company gives) Thus, many companies: –Miss important savings opportunities because they lack a means for addressing energy use across the corporation

4. Effective energy management Organizations achieving the greatest results have: A top-down commitment to energy management A commitment to continuous improvement Embraced an approach that integrates energy management across all aspects of the business Management systems in place A system to regularly assess and track energy performance Set measurable performance goals An effective reward system for energy performance An empowered energy staff

5. Guidelines For Energy Management Practical approach based on the success of major U.S. corporations www.energystar. gov

6. Guidelines For Energy Management

7. Plant assessment An evaluation of the actual performance of a plant’s systems and equipment against the designed performance level or best available technology/practice. The difference is the potential for energy savings. A critical part of an energy management program –Looks for opportunities to improve the bottom line of a company –Without assessments, an energy management program would have difficulty identifying energy savings and would fail to show improvement.

8. Examples of assessments 1. Low-hanging fruit walkthrough –Limited in duration, cost to company, & focus –Often a corporate team –Can be done anytime –Findings »basic (eg. idle equipment) »impact may be immediate since often adjustments can be made on-site –May be limited by expertise of team –Toyota’s treasure hunts

9. Examples of assessments 2. Support system review –Systems that support process are evaluated »eg. compressed air, motors, steam, etc. –May be a corporate team supplemented by expertise for major support systems –Slightly higher cost for expertise –Limited time, although longer duration than a walkthrough –Good specific findings for utility systems –Good design to extend to multiple plants in a company »lessons learned & best practices shared –Value of potential savings greater than a walkthrough, no capital required at times for certain findings –May be limited by those systems not covered –California Portland’s compressed air study

10. Examples of assessments 3. Process/yield studies –Detailed, full site review often precipitated by company desire to increase plant yield »energy a part of the review »modeling critical to study »often a rare chance to impact energy in this way –Can extend to months in duration –Usually external expertise on team –More costly but likely greater savings potential here –Can address all major and supporting systems and touch on process –ExxonMobil

11. Observations of outcomes Each approach can identify energy savings. –Nature of the outcome will differ depending upon: time invested expertise of team extent of areas examined resources available to conduct the assessment and to make changes

12. Challenge: implementing the findings of an assessment –For assessment results that require investment in capital –secure support from senior management –incorporate within the business plan or as part of the operating budget –For low cost/no capital-required projects: –ensure steps identified in assessment are incorporated into the energy management action plan (with goals, timeline, and accountabilities) –For projects that require labor to manage the improvement project: –short-term contractor, ESCO –students

13. Your internal resources Internal –employees in-house expertise with process and plant operation presents buy-in opportunity for plant engineers and plant managers

14. External supports Private consultants Utilities Department of Energy Best Practices resources ENERGY STAR Focuses for select industrial sectors

15. ENERGY STAR Focuses –By specific industrial sector auto assembly, cement, corn refining, brewing, pharmaceuticals –Focuses produce: Energy performance indicators (EPIs) for plants in the sector; EPIs help a company identify plants that need work Energy guides - report opportunities for improving energy efficiency in the industry’s plants now - good for use in assessments For more information on an ENERGY STAR Focus: www.energystar.gov/industrywww.energystar.gov/industry

16. Current Energy Guides Motor Vehicle Assembly Corn Wet Milling Breweries

17. ENERGY STAR emphasizes the development of strong energy management programs supported by plant assessments. www.energystar.gov