© ABB Engineering Services Energy Responding to the Challenge of Climate Change

© ABB Engineering Services - 2 Workshop Session - Energy Introductions The Drivers (reminder) How can … Now let’s talk about your experiences … Practical Opportunities & Real Issues … how they were realised and how they were overcome

© ABB Engineering Services - 3 Business and Energy - 3 Drivers Rising energy costs World oil, gas, coal prices all rising Prices will remain high and volatile for foreseeable future High demand - China, supply side instabilities, shortages of capacity Increasing reliance on imports – links gas prices more closely to oil No return to historic norms Environmental compliance Increasing raft of rules and regulations relating to emissions IPPC provides legal framework to drive improvement Carbon management Slow start but growing inducements to reduce carbon emissions Climate Change Levy (carbon tax) moving to EU ETS II And …. Rising energy costs

© ABB Engineering Services - 4 It’s everywhere … Source: Energy Trends in Selected Manufacturing Sectors: Opportunities and Challenges for Environmentally Preferable Energy Outcomes”, U.S. Environmental Protection Agency, March 2007

© ABB Engineering Services - 5 Know where it goes … (?)

© ABB Engineering Services - 6 Step by step … ENERGY SAVING HOUSEKEEPING CONTROL SYSTEMS PROCESS MODIFICATION PROCESS INTEGRATION ALTERNATIVE PROCESS COST OF IMPLEMENTATION

© ABB Engineering Services - 7 Just motors … Electric motors use 65% of electricity in industrial facilities Focus on the larger motors on the site Eliminate / reduce idle (no load) time Challenge sizing of motor (starting load / running load) Challenge duty of motor (pumps, agitators, grinding, fans, compressors) Consider use of variable speed drives (pumps & fans in particular)

© ABB Engineering Services - 8 Case study: Energy savings - PVC production Client: Major PVC Producer, UK Background Major UK PVC producer seeking reductions in energy costs Solution Analyse energy consumption on across the site Numerous opportunities for cost reduction Tariff management Improving efficiency of steam generation, distribution and use Improved electrical efficiency across the motor portfolio Improving heat recovery – “thermo-crime” Benefits Reduction of ~10% in site utility bill

© ABB Engineering Services - 9 Discussion and Debate – Suggested Focus Global issue but local challenge What does it mean for my business? Sales Operating Costs Availability of Resources (sustainability) Opportunities as well as Threats