Energy Efficiency Methodology

Energy Efficiency Methodology
Energizing Cleaner Production Management Course Efficiency methodology Company Energy TO THE TRAINER This PowerPoint presentation can be used to train people how to improve energy efficiency at industrial companies. The information on the slides is the minimum information that should be explained. The trainer notes for each slide provide more detailed information, but it is up to the trainer to decide if and how much of this information is presented also. This training is designed for 3 sessions of 1.5 hours each, including 3 workshop exercises: Session 1: introduction and step 1 & 2 Session 2: step 3 Session 3: step 4, 5 and 6 Additional materials that can be used for the training session are available on under “How to be energy efficient” and include: Textbook chapter on the Company Energy Efficiency Methodology Workshop exercises – three workshop exercises (developed as part of the InWEnt project, see last slide) Company case studies – participants of past courses have given the feedback that they would like to hear of examples from companies that have used the methodology. More than 100 examples are available from 44 companies in the cement, steel, chemicals, ceramics and pulp & paper sectors. Under each task a few examples are included as a suggestion, but it is recommended to replace these with examples from your own experience and/or that are relevant to the country or sector of the audience

Efficiency methodology
Training Agenda: Company Energy Efficiency methodology Introduction to the methodology Methodology step by step Purpose, outputs and tasks Company examples Worksheets Energy focus Efficiency methodology Company Energy

Introduction The “Company Energy Efficiency Methodology” (Methodology) has been developed for Asian industrial companies to help them improve energy efficiency through Cleaner Production. Efficiency methodology Company Energy Introduction The “Company Energy Efficiency Methodology” (Methodology) has been developed for Asian industrial companies to help them improve energy efficiency through Cleaner Production.

Benefits from Energy Efficiency Cost reductions through efficient use of energy Reduced exposure to fluctuating energy supply and prices and blackouts Increase in productivity and product quality Improved reputation with customers and society through environmental protection Improved employee motivation, health and safety Compliance with legislation and ISO targets Increased profits and shareholder value Efficiency methodology Company Energy Benefits from energy efficiency are: Cost reductions through efficient use of energy Reduced exposure to fluctuating energy supply and prices and blackouts Increase in productivity and product quality Improved reputation with customers and society through environmental protection Improved employee motivation, health and safety (Click once) This all contributes to the company’s profits and the shareholder value Compliance with legislation and ISO targets

The Methodology Is tailored to energy-intensive industrial companies in developing Asian countries Focuses on energy, which is less visible than waste, water and raw materials Explains what should be done in theory how it is done in practice in different companies Efficiency methodology Company Energy The Methodology: Is tailored to energy-intensive industrial companies in developing Asian countries, which in many ways are different from companies in industrialized and Western countries Focuses on energy, which is less visible than waste, water and raw materials Explains not only what should be done in theory, but also how it is done in practice because all companies are different. A focus is therefore given on how to overcome barriers such as time limitations and lack of data, and on practical company examples

The Methodology is based on: The Cleaner Production (CP) strategy: Prevention of waste Systematic approach Integrated into business processes Aimed at continuous improvement Existing CP and energy audit methodologies Real practice experience from energy assessments carried out as part of the GERIAP project in more than 40 Asian industrial companies Efficiency methodology Company Energy The Methodology is based on: The Cleaner Production (CP) strategy: prevention of waste, systematic approach, integrated into business processes and aimed at continuous improvement Several existing CP and energy audit methodologies Real practice experience from energy assessments carried out as part of the GERIAP project in more than 40 Asian industrial companies (i.e. it is not a academic approach, but has been tested at companies)

6-Step Cleaner Production Approach Efficiency methodology Company Energy All tasks require an energy focus The tasks with the arrows require most detailed / specialized energy focus and will be explained in this session

Information under each Step Several tasks: what a company should do as a minimum Company examples: how the task was applied at different companies and lessons learnt Worksheets: to assist completing the task Remember: apply the methodology flexibly as long as energy efficiency is improved because each company is different. Efficiency methodology Company Energy How to use the Methodology: Companies can improve their energy efficiency through a 6-step Cleaner Production approach (see Figure 1). On the CDrom and website, you can click on each step to see the purpose, output and estimated time required for the step. You can also download all steps as a pdf file or download training materials. Under each step there are several tasks. Each task describes what a company should do as a minimum. On the CDrom and website, arrows on the right provide more detailed information: Company examples that explain how the task was applied at different companies and lessons learnt (Appendix A) Worksheets to assist you in completing the task, and which are editable and printable (Appendix B) Remember: the ultimate purpose is to keep improving energy efficiency, and this methodology can help companies do this. But the methodology should be applied flexibly and depending on the company’s situation, because each company is different: country, sector, size, organizational structure, production processes, existing energy management systems, and so on. We will now go through each individual step and task. For each task the relevant worksheets and some company examples will be explained.

Step 1: Planning and Organization Purpose: Obtain top management commitment Plan and organize an energy assessment Output: Written proposal with selected steps and tasks to improve the company’s energy efficiency Approved by top management. Efficiency methodology Company Energy Step 1 - Planning and Organization The purpose of step 1 is to obtain top management commitment and plan and organize an energy assessment. Without an approved plan, there is no commitment! The output of step 1 is therefore a written proposal with selected steps and tasks to improve the company’s energy efficiency that is approved by top management. An approved plan will make steps 2 to 6 a lot easier!

Step 1: Continued Time: 3 – 6 days Tasks include: Task 1a: Meeting with top management (1-2 hours) Task 1b: Form a Team and inform staff (0.5-1 day) Task 1c: Pre-assessment to collect general information (1-3 days) Task 1d: Select focus areas (0.5-1 day) Task 1e: Prepare assessment proposal for top management approval (2-3 days) Efficiency methodology Company Energy Step 1 should take about 3 – 6 days. Tasks under step 1 and the estimated time needed include:* Task 1a: Meeting with top management (1-2 hours) Task 1b: Form a Team and inform staff (0.5-1 day) Task 1c: Pre-assessment to collect general information (1-3 days) Task 1d: Select focus areas (0.5-1 day) Task 1e: Prepare assessment proposal for top management approval (2-3 days) *Note: the amount of time depends on, for example, the size of the plant, the number of people involved and the amount of information available. How you start depends on who you are. If you are: Top management of a company interested in improving energy efficiency, then you should identify which managers and staff members are needed to get a project started, and ask them to attend a first meeting with you. You can also ask an external facilitator to attend the meeting Middle management (e.g. Production Manager, Environment Manager) and not part of top management, then you should request top management for a meeting and invite other managers and staff who are needed to get a project started to attend. You can also ask an external facilitator to attend the meeting An external facilitator (e.g. consultant, CP Centre, research institute) with an interest in getting the company to improve its energy efficiency, then you should request top management for a meeting (or ask a company manager to organize a meeting for you). You can also ask for company managers who are needed to get a project started to attend the meeting

Task 1a: Meeting with Top Management (1 – 2 hours) Purpose of first meeting: Top management: Get commitment of company middle managers, staff and/or external facilitators to carry out a pre-assessment Write a proposal for a detailed energy assessment Company middle manager or external facilitator: Get top management’s approval for a pre-assessment Efficiency methodology Company Energy 1a. Meeting with top management If you are top management, then the purpose of this first meeting is to get the commitment of company middle managers, staff and/or external facilitators to carry out a pre-assessment and write a proposal for a detailed energy assessment. If you are a company middle manager or external facilitator then the purpose of this first meeting is to get top management’s approval for a pre-assessment and writing of a proposal for a detailed energy assessment.

Task 1a: Meeting with Top Management (continued) Discuss at this 1-2 hour first meeting: If/Why top management is interested in energy efficiency Energy areas of interest or concern Where the company is now Other factors of influence on the assessment Time needed for pre-assessment and writing proposal for feasible options Team composition and management representative How staff will be informed to ensure cooperation Efficiency methodology Company Energy At this 1-2 hour meeting discuss the following: If and/or why top management is interested in improving the company’s energy efficiency (see Worksheet 1 for a list of possible reasons) Any energy areas of interest or concern Where the company is right now with energy management (fill out the Energy Management Matrix in Worksheet 2) Other factors that will influence the approach to improving energy efficiency (see Worksheet 3) The amount of time needed to conduct a pre-assessment (normally 1-3 days) and write a proposal (normally 2-3 days) and deadlines Who should be in the Team and who from top management will be the main contact for the Team (see task 1b) How staff will be informed to ensure their assistance during the pre-assessment (see task 1b) Some examples of companies that participated in the GERIAP project: It was difficult to convince top management of a Bangladeshi company to start an energy efficiency project because the concepts of Cleaner Production and greenhouse gas reduction were new to them. “Energy efficiency” was a more familiar concept and top management associated this with money and not only with the environment. Management of a Sri Lankan company expected that most of the options with high energy and greenhouse gas reductions would involve high investments that the company could not come up with. For this reason top management expressed interest in looking into the potential for CDM (Clean Development Mechanism) projects, but this was not part of our project. Lesson learnt: It is important to be clear with top management from start of what they can expect out of the project to avoid disappointment.

Worksheet 1: Reasons for Energy Efficiency Efficiency methodology Company Energy This worksheets lists possible reasons for energy efficiency. Company management may also have reasons that are not on this list.

Worksheet 2: Energy Management Matrix Efficiency methodology Company Energy Note to the trainer: this matrix forms the basis of the workshop exercise. If the workshop exercise is included in the session, then please only briefly mention that this matrix is used to determine where companies are at with energy management. Then mention that the matrix will be explained in more detail as part of the workshop exercise. An Energy and Environment Management Matrix was used to determine where companies are at now. This is a real example: A multinational company had many formal processes and systems in place (= high scores for policy/systems, organization, information systems and investment) but there appeared to be little ownership by the work floor staff (= low scores for training/awareness, which is mostly aimed at senior staff only, and motivation). The family-owned company has the opposite situation: informal processes and systems, but an incredibly high involvement and commitment from employees to help the company improve energy efficiency. Thanks to the Matrix scores, the Team knew it had to focus on involving work floor staff at the multinational company and on setting up formal committees, policies and systems at the family-owned company to make the project successful.

Worksheet 3: Factors influencing the energy assessment approach Efficiency methodology Company Energy Asking management about future plans is important, such as major shutdowns, upgrades, expansions etc. In an Indonesian steel plant, upgrades were planned for parts of the company. Because management told this at the first meeting, it was avoided that any of these areas were selected as focus areas. There was also a company where management did not inform the Team about upgrades, and therefore the options identified could not be implemented.

Task 1b: Form a Team and inform staff (0.5 – 1 day) The Team should consist of: Someone who knows the main energy uses and environmental impacts, e.g. the Environment Manager or Energy Manager Someone who knows the production process, e.g. the Head of Production Someone with access to general company information and energy cost data, e.g. the company’s Accountant or Finance Manager A communications or training person A top management representative Efficiency methodology Company Energy 1b. Form a Team and inform staff A Team of people should be formed. In practice, the Team is often formed at the meeting with top management. The Team normally includes (but can be expanded when the focus areas have been selected): Someone who knows the main energy uses and environmental impacts of the company, e.g. the Environment Manager or Energy Manager Someone who knows the production process, e.g. the Head of Production Someone with access to general company information and energy cost data, e.g. the company’s Accountant or Finance Manager A communications or training person, especially if management have identified staff training as one of their objectives A top management representative who normally is not part of the Team’s day-to-day work The company may decide to also include an external facilitator (consultant or service provider) in the Team for the pre-assessment and writing of the proposal, especially if he/she/they are needed for the assessment later. The Team holds a half-day first meeting to agree on each member’s roles (see Worksheet 4) how and when to carry out the pre-assessment (task 1c), select focus areas (task 1d), and write a proposal for management (task 1e). In addition, the Team should inform staff about the pre-assessment, for example through a letter by top management, regular staff meetings or notice boards. Examples of companies that participated in the GERIAP project are: At an Indian steel company, a Team was formed comprising 15 members from their 22 departments because the production process is integrated and therefore energy options in one department would have an impact on other steps in the production process. At a small Indian chemicals company where only 20 people work, the Team consisted of only three members: the Managing Partner, the Production Manager and the Production Officer. Several companies made use of existing committees or working groups, sometimes as part of an environmental management system. In a Vietnamese paper plant, the Team was based on the Cleaner Production Team that was formed in 1999 as part of a previous CP project. Management at another company appointed one of the production staff as Environmental Manager at the start of the GERIAP project because there was no person on site responsible for coordinating energy and environmental management. But he was not given the authority to implement any energy efficiency options but had to seek permission from top management, who only met once a month at the Board of Directors meeting, which slowed down the process of implementing options later in the process.

Energy Focus Task 1b: Form a Team and inform staff (cont.) Team should have Knowledge of energy equipment Energy intensive production processes Access to energy data Typical positions Utilities Manager Energy Manager Maintenance Engineer Efficiency methodology Company Energy With regards to the Team composition, there should be at least one member who has (1) knowledge of energy equipment (2) energy intensive production processes and (3) access to energy data such as fuel consumption and costs Depending on the company, this person could be a Utilities Manager, Energy Manager and/or a Maintenance Engineer

Worksheet 4: Team Members and Roles Efficiency methodology Company Energy

Task 1c: Pre-assessment to collect general information (1 – 3 days) Information collected should include: General company details Organization chart General production flow chart Production data for the past 3 years Energy, resource consumption data and costs for the past 3 years Inventory of major equipment Overview of information collected for each process step / department Company greenhouse gas (GHG’s) emissions Efficiency methodology Company Energy 1c. Pre-assessment to collect general information The Team now carries out a pre-assessment at company level to collect and review general information, which normally takes between 1-3 days. The main purpose of the pre-assessment is to identify where the biggest areas for energy savings are (= potential focus areas in task 1d!) and writing a realistic proposal to top management (task 1e). This information can be obtained through existing documentation and computer systems, interviews with staff, a walkthrough of the plant, and simple monitoring. Because staff were informed about the pre-assessment, they are more likely to cooperate! Information collected should include: General company details, such as address, number of staff, working hours and production capacity (see Worksheet 5) Organization chart with the different departments and main functions General production flow chart for the whole company with the main inputs and outputs for each production step (see Worksheet 6) Production data for the past 3 years, preferably for each month (see Worksheet 7) Energy and other resource consumption data and costs for the past 3 years, preferably for each month and for each production step or department (see Worksheet 7) An inventory of major equipment, such as boilers, air compressors, motors (see Worksheet 8) Overview of information collected for each process step / for each department (see Worksheet 9) Company greenhouse gas (GHG’s) emissions (see GHG Indicator) Examples of companies that participated in the GERIAP project: The layout and equipment specifications were reviewed as part of the pre-assessment of a Bangladeshi paper plant. The plant had purchased almost the entire production equipment from Germany. This was useful to know because the assessment could then focus on whether equipment was appropriate for the production process, the right size equipment was used, if equipment was installed correctly (as manuals and drawings were in German!) Several plants had different sets of data, one for internal purposes and one for reports to Government on which tax was calculated. One integrated steel plant had 22 departments and it would take too much time to carry out a pre-assessment to collect general information and prepare production flow charts for the entire plant. For this reason the focus area was selected first and a pre-assessment was only carried out for the focus area.

Energy Focus Task 1c: Pre-assessment to collect general information (cont.) Include auxiliary sections in the general production flow chart Water treatment Boiler and steam systems Compressed air systems Air conditioning / refrigeration Ventilation Efficiency methodology Company Energy 1c. Pre-assessment to collect general information

Energy Focus Task 1c: Pre-assessment to collect general information (cont.) Production and resource data should also include Fuel consumption rates and costs Electricity consumption and costs Fuel mix Electricity bills from utility Efficiency methodology Company Energy Fuel and electricity consumption and costs are usually included. But the fuel mix is often forgotten. This is the proportion of fuel types: coal, diesel, gas etc. This is important to know because sometimes one fuel can be substituted by another fuel and result in significant fuel and cost savings and environmental savings, such as greenhouse gas reductions. Electricity costs are often obtained but it is also important to see the electricity bills to understand the (1) tariff structure, i.e. if tariffs are based on kWh or kVA (2) penalties paid by the company due to exceeding maximum demand and low power factor, (3) higher rates paid due to time of date tariff. Analysis of electricity bills can often identify options to reduce the electricity costs even if actual electricity consumption is not reduced.

Energy Focus Task 1c: Pre-assessment to collect general information (cont.) Inventory of major equipment Name of equipment: motor Numbers: 50 Capacity: 1 with 100 HP, 39 with >25 HP, with <10 HP Type: AC motor Supplier: General Electric Rated parameters: e.g. load Operating parameters (if available) Efficiency methodology Company Energy The purpose of gathering general information of major equipment is to get an indication of main energy uses, not to already collect very detailed information of each individual equipment. In this example, the operating parameters would probably only be collected for the 100 HP motor Based on this a focus area can be selected. In this example, the motors with capacity less than 10 HP could be eliminated from the focus area

Worksheet 6: General Production Flow Chart Efficiency methodology Company Energy In an Indonesian steel plant, upgrades were planned for parts of the company. Because management told this at the first meeting, it was avoided that any of these areas were selected as focus areas. There was also a company where management did not inform the Team about upgrades, and therefore the options identified could not be implemented.

Worksheet 7: Production and Resource Data Efficiency methodology Company Energy In an Indonesian steel plant, upgrades were planned for parts of the company. Because management told this at the first meeting, it was avoided that any of these areas were selected as focus areas. There was also a company where management did not inform the Team about upgrades, and therefore the options identified could not be implemented.

Worksheet 8: Inventory of Major Equipment Efficiency methodology Company Energy

Task 1d: Select focus areas (0.5 – 1 day) A focus area can be: Entire plant A department, production line, or process step Specific (energy) equipment or resources The process for selecting focus areas: Identify possible focus areas Determine selection criteria Rate each focus areas High, Medium, Low for each criteria Efficiency methodology Company Energy 1d. Select focus areas Now it is time to select focus areas. A focus area can be: The entire plant A department, production line, or process step, such as the kiln or the packaging plant Specific (energy) equipment or resources, such as steam, compressed air, motors, or fans The Team meets for a 1-4 hour brainstorm session to prepare a list of possible focus areas, and to choose focus areas based on for example (see Worksheet 10): Size of the plant Management’s areas of interest or concern High energy / resource consumption or costs Areas for which energy efficiency audits or project have not yet been carried out Expertise and knowledge of staff about a certain area Plans for construction or upgrading Available information for a certain area The focus areas are selected by Identifying possible focus areas Determining selection criteria Rating each focus areas high, medium or low for each criteria Worksheet 10 on the next slide can be used for this

Energy Focus Task 1d: Select focus areas (cont.) Different focus areas can be selected when energy is considered An auxiliary system instead of a production step - Steam system - Compressed air Specific major energy equipment - Boiler house (not just the boiler!) Efficiency methodology Company Energy An example of an auxiliary system is the steam distribution system or compressed air distribution system. These may not have significant impacts on individual production steps, but for the company as a whole they can be the cause of substantial energy wastage and high costs It is important to note that an auxiliary system may not be selected for the entire plant. For example, the steam distribution system for the digestion process in a pulp and paper plant may be selected, rather than for the whole plant. A finding could be that the specific fuel consumption per unit for product is high. But you do not know what the source of high fuel consumption is. If for major energy equipment, e.g. the boiler, rated parameters and actual operating parameters were collected, then this allows you to pinpoint where large energy losses can occur. For example, the rated parameter for a boiler is 7 tons steam per hour, but the boiler only produces 3 tons steam per hour. This points to a low efficiency and could be the source of the high specific energy use. When selecting specific major equipment as a focus area it is important that all auxiliary equipment is also included. For example, it is better to select the boiler house as a focus area (including boiler, fans, motors, pumps etc) instead of the boiler alone

Worksheet 10: Selection of Focus Areas Efficiency methodology Company Energy Examples of companies that participated in the GERIAP project: A large cement company in Indonesia has almost twenty parallel cement production lines. Because of this, a production flow chart and data collection was only done for one of the production line that would be used as a basis for this project, and not for the entire plant. Because of similarities between production lines, the work done at one production line could later be carried out for other production lines in very much the same way. A Chinese steel plant is located in an expanding city where groundwater levels have dropped from minus 10 meters to minus 70 meters in the last 20 years! Because the plant is a large consumer, water consumption was therefore an important selection criteria for focus areas. Cooling towers were selected as a focus area as they consume a lot of energy and water. At an Indonesian pulp and paper plant, compressed air supply was considered as a possible focus area but was not selected because this is contracted out to a third party

Task 1e: Prepare assessment proposal for top management approval (2 – 3 days) It is important to obtain top management commitment The assessment proposal should include: Objective, scope (i.e. focus areas) Outputs Approach (step 2, 3 and 4 of the Methodology) Team Time & budget Efficiency methodology Company Energy 1e. Prepare assessment proposal for top management approval It is important to obtain top management commitment because an energy assessment costs money and staff time and can interrupt the production process. This can only be achieved if there is a clear proposal for the energy assessment (step 2, 3 and 4 of the approach). This proposal can be prepared within the company (e.g. the production manager, energy manager or an internal Team or committee) or by an external facilitator (e.g. by a consultant, a Cleaner Production Centre or other service provider). The assessment proposal should include Objectives (i.e. agreed in the meeting with management) Scope (i.e. focus areas) Outputs (i.e. an proposal for implementation of feasible options to improve energy efficiency) Approach (i.e. the steps 2, 3 and 4 of the Methodology – how detailed each step and task should be depends on the company, because each company is different!) Team (i.e. who will take part in the assessment and the roles and responsibilities of each Team member) Time planning (i.e. how much time / man days is needed for each step and task, a timeframe with deadlines) Budget (i.e. how much money is needed for the assessment) The proposal is then sent or presented to top management for comments and approval. In case of an external facilitator, consultant or service provider a contract is signed for assistance with the energy assessment. Examples of companies that participated in the GERIAP project: For several plants, the amount of information available was very limited. This was taken into account in the proposal, i.e. several tasks of the assessment could not be carried out in detail. An Indonesian cement company launched a “Total Productive Maintenance” (TPM) programme that aims to improve production output and profits. The energy assessment proposal was planned as an extension of the TPM programme. The Vice Director, a team leader, and the Head of the Technical Department of a Vietnamese ceramics plant attended a one week technical training. This ensured that middle and top management were trained on energy efficiency and the Cleaner Production methodology. This made it was easier to obtain management support for the proposal

Step 2: Assessment Purpose: assess where energy is lost/wasted for the focus area(s) Output: overview of how much energy is lost and how much money this costs for the focus area(s) Then it becomes easier to identify options to improve energy efficiency in step 3! Efficiency methodology Company Energy The purpose of step 2 is to assess where energy is lost/wasted for the focus area(s). The output of step 2 is an overview of how much energy is lost and how much money this costs for the focus area(s). Then it becomes easier to identify options to improve energy efficiency in step 3! Tasks under step 2 and the estimated minimum time needed include:* Task 2a: Staff meeting and training (minimum 0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (minimum 2 hours per focus area) Task 2c: Walkthrough of focus areas (depending on the focus area, but minimum 0.5 day per focus area, excluding collection of detailed data for task 2d) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available as determined during the pre-assessment, task 1c) Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area provided that data were collected under task 2d) * Note: the selection of tasks, time needed and who does what should already be included in the energy assessment proposal to top management that was prepared under task 1e. Although task 2b, 2d and 2e are described as separate tasks, it is possible to combine these, which will avoid repetition and save the Team time!

Step 2: Assessment Time: minimum 3 days Tasks include: Task 2a: Staff meeting and training (>0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (>2 hours per focus area) Task 2c: Walkthrough of focus areas (> 0.5 day per focus area) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available) Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area) Efficiency methodology Company Energy Tasks under step 2 and the estimated minimum time needed include:* Task 2a: Staff meeting and training (minimum 0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (minimum 2 hours per focus area) Task 2c: Walkthrough of focus areas (depending on the focus area, but minimum 0.5 day per focus area, excluding collection of detailed data for task 2d) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available as determined during the pre-assessment, task 1c) Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area provided that data were collected under task 2d) * Note: the selection of tasks, time needed and who does what should already be included in the energy assessment proposal to top management that was prepared under task 1e. Although task 2b, 2d and 2e are described as separate tasks, it is possible to combine these, which will avoid repetition and save the Team time!

Task 2a: Staff meeting and training Staff meeting (0.5 day) Inform staff about assessment and their roles Get their support Staff training Importance of energy efficiency How to carry out an assessment Energy equipment & monitoring instruments Financing, GHG Indicator, other… Information: Posters, newsletters, meetings Efficiency methodology Company Energy Staff meeting: As a minimum the Team should organize a staff meeting to inform staff about the assessment and their roles and to get their support. Staff from the focus areas should attend this meeting, but preferably everyone from top management to production staff throughout the plant should get an introduction. Production staff are important because they are the ones who work in the focus area every day and understand the production processes best! Staff training: It is recommended that the Team and staff working in the focus areas receive training on CP and energy efficiency, how to carry out an assessment, and technical training on energy equipment, depending on whether The Team has sufficient knowledge and experience to carry out the energy assessment An objective of the energy assessment is to increase staff’s knowledge and experience so that they can continue with energy assessments in the future (as indicated by top management under task 1a) or only to find quick energy efficiency options The company’s Team or external consultants carry out the energy assessment Other possible activities include hanging up posters, starting a slogan campaign, explanation at section / department meetings, and announcements through a letter from top management to staff or through a company newsletter. Examples from companies that participated in the GERIAP project: At the start of the assessment at an Indian cement company there was a big meeting between the management of the company, the external facilitators and more than 100 of the company staff. Staff at a paper plant in Bangladesh had never this plant received training on energy efficiency. Training during the project included sending 3 staff to a 1 week technical training and 3 staff on monitoring and establishing a baseline; training by an international consultant during the walkthrough of the plant, data analysis and the brainstorm sessions to identify options. The training paid off: the plant’s Team independently identified and implemented many more options. An Indonesian paper plant informed staff through weekly management meetings, monthly review of KPIs (key performance indicators) for each production unit, and the company newsletter At a Philippines chemicals company, before the energy assessment started, the external facilitators gave a one-day in-house training to the staff of this company on the Cleaner Production concept and methodology and how to apply this to improve energy efficiency

Task 2b: Prepare focus area flow charts (>2 hours per focus area) Flow chart for each focus area Different steps of the focus area Most important inputs (resources) for each step Most important outputs for each step Intermediate and final products between the steps Efficiency methodology Company Energy 2b. Prepare focus area flow charts The Team should prepare a focus area flow chart for each of the selected focus areas as follows (see Worksheet 13): List the different steps of the focus area and draw a box around each step List the most important inputs (resources) for each step on the left, such as energy (electricity, fuels), water, raw materials and chemicals List the most important outputs for each step on the right, such as solid wastes, heat, emissions, noise and wastewater List the intermediate and final products between the steps, such as clinker and cement Add any information on units of measurement for inputs and outputs and quantities and costs that is already available. Otherwise this information can be gathered as part of the next tasks. The focus area flow chart will look differently for a department or process step (e.g. kiln, boiler house) compared to specific energy uses (e.g. steam system, motors, fans). Examples of flow charts of focus areas for companies that participated in the GERIAP project. One Indian company is a large and integrated mill. Because of this, a production flow chart was not drawn for the entire plant, but only for the selected focus areas. One of the focus areas selected for a cement plant in Sri Lanka was “fans and motors”. Because these are distributed throughout the plant, it was not applicable to prepare a process flow chart for this focus area. Instead of this an inventory of fans and motors at the plant and their characteristics (location, capacity, energy use etc) was made

Energy Focus Task 2b: Prepare focus area flow charts (cont.) Different types of focus areas require different types of charts: Production step: process flow diagram Auxiliary systems: layout chart for steam or compressed air distribution system Specific major equipment: major equipment and all auxiliary equipment Efficiency methodology Company Energy For auxiliary systems, for example, a layout chart of the steam distribution system for the digesting section in a pulp and paper plant. For specific major equipment, the major equipment (e.g. boiler) and all auxiliary equipment (e.g. fans, motors, pumps) should be included

Task 2c: Walkthrough of focus areas (>0.5 day per focus area) Purpose of the walkthrough(s) Better understand the focus area Get feedback from production staff about problems… Write down visible losses of energy and materials Obtain information about quantities and costs Efficiency methodology Company Energy The Team now conducts a detailed walkthrough of the focus areas, usually starting at the first step of the process flow chart and finishing at the last step. The purpose of the walkthrough is to: Better understand the focus area Get feedback from production staff about problems they have with procedures and operating equipment, and possible losses of energy and other materials Write down any visible losses of energy and materials such as steam and water leaks, damaged valves and pipelines, excess blow-down from the boiler, etc (see Worksheet 14 for more examples) Obtain information about quantities and costs for the inputs and outputs of each focus area step through interviews with staff, metering reports, or taking measurements (needed for task 2d) The first walkthrough is done thoroughly. But in practice, the Team will visit the focus area several times to meet with production staff and gather more information on inputs and outputs (task 2d) and later to identify and investigate energy efficiency options (step 3 and step 4). Examples from companies that participated in the GERIAP project: At a Thai medical gloves plant, several non-technical workers joined the Team in the walkthrough of the plant and managed to point out several inefficiencies that staff working in the plant every day had got used to At a Bangladeshi ceramics plant, staff from a fertilizer plant joined the walkthrough and identified many options. This was possible despite ceramics manufacturing and fertilizer production being totally two different processes, because many of the equipments used and environmental problems are the same At an Indonesian cement company, many steam and compressed air leaks were observed during the walkthrough, which would not have been possible based on data alone

Worksheet 14: Walkthrough observations Efficiency methodology Company Energy

Task 2d: Quantify inputs and outputs and costs to establish a baseline Time required depends on information available Why a baseline? Measure improvements after implementing options Management only convinced to continue if you can show savings Collect the following information: Quantities (e.g. tons of coal per day) Costs (e.g. $ per ton of coal) Other characteristics (e.g. temperature of water going in and out of the boiler, pressure) Efficiency methodology Company Energy A baseline is important because you can measure improvements after implementing options, and management will only be convinced to continue if you can show how much resources and money was saved. To establish a baseline, for each input and output in the process flow chart collect the following information (see Worksheet 13): Quantities (e.g. tons of coal per day) Costs (e.g. $ per ton of coal) Other characteristics (e.g. temperature of water going in and out of the boiler, pressure) Ideally, you want quantity and cost information for 3 years, 12 months within one year, and the days within one month, so that you can observe trends. The information can come from interviews with staff, readings of online meters, monitoring records, and by taking measurements with monitoring equipment (especially to verify data records!) However, in practice it is not always possible to do all this because: Not all companies have this information readily available. For example, a company may only have electricity bills and an electricity meter for the plant but no breakdown for each equipment or department that uses electricity Monitoring equipment is not available at the plant There is limited time available to complete this task The level of detail and how much time is needed to measure and collect data under this task should already be identified during the pre-assessment (task 1c). Possible solutions should also have been included in the proposal to management (task 1e). Examples from companies that participated in the GERIAP project: At a government-owned fertilizer plant in Bangladesh, management believed that only new technologies could improve energy efficiency because the plant is too old. An international consultant helped to collect baseline data for the plant and compared these with data of other similar fertilizer plants. He used this to show management that energy efficiency could be improved by at least 20 percent by improving the existing production process without purchasing new technologies. At a Chinese cement plant, the Team could make use of the company’s on-line monitoring system to collect baseline data. However, the on-line measurements had to be checked against real measurements to ensure that the data collected is accurate, for example coal consumption and flue gas composition. At a Thai chemicals company, although the company has a good information system, there was only one electricity meter that measures the total electricity consumption of the plant, and therefore electricity consumption for the focus area could not be determined

Worksheet 13: Process flow chart, inputs/output, energy balance Efficiency methodology Company Energy

Energy Focus Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Examples of material-related parameters for the boiler house Fuel and electricity Water Blow down Ash Steam produced Condensate recovered Efficiency methodology Company Energy

Energy Focus Task 2d: Quantify inputs and outputs and costs to establish a baseline (cont) Examples of energy-related parameters for the boiler house Pressure Temperature Flue gas composition Draft Radiation Note: specific monitoring equipment may be needed Efficiency methodology Company Energy Energy-related parameters are often not measured because they themselves are not a resource or waste. However, measuring these will help to identify if, where and how much energy is wasted. For example, high concentrations of oxygen in the flue gas exiting the boiler indicates inefficient combustion or high air input, also called excess air. This results in heat loss to the atmosphere through the flue gases.

Energy Focus Efficiency methodology Company Energy This chart shows energy-related and material-related parameters mentioned on the previous slides.

Task 2e: Quantify losses through a material and energy balance (0.5 – 1 day per focus area) Try to “balance” inputs and outputs (what goes into a process must come out!) Identify “losses”: energy, products, materials Calculate costs of losses Be practical: this is the most difficult task! Efficiency methodology Company Energy What goes into a process must come out somewhere else. Based on the process flow chart and quantified inputs and outputs prepared in the previous tasks, try to “balance” the inputs and output side. Any inputs that do not come out as useful outputs (e.g. product, steam) are considered “losses”. These can include losses of energy (e.g. through heat, blow-down, flue gases, un-burnt materials), and losses of products and materials (e.g. water, chemicals, product rejects and off cuts). Using the cost information (task 2d), calculate the costs of the losses. This will allow you to focus on options from a cost and resource point of view. Completing a full and detailed material and energy balance could take a long time, especially if there is little data on inputs and outputs at the company. It is also more difficult to determine energy losses because energy is not as tangible as raw materials and wastes. It is important to be practical and focus on quantifying at least the biggest and most expensive losses, because this will form the basis of identifying options for improvement. Examples from companies that participated in the GERIAP project: The materials / energy balance at a Bangladeshi fertilizer plant showed that production is 20% lower due to losses, this costs US$ 425 thousand a year through lost income At a Chinese chemical plant, heat losses for the boiler could not be quantified, but the type of losses could be identified, for example heat loss through flue gas and incomplete combustion. This information was useful to be able to identify causes of these losses and options to reduce the losses.

Energy Focus Task 2e: Quantify losses through a material and energy balance Efficiency methodology Company Energy This chart is the material and energy balance. It shows the quantified energy-related and material-related parameters mentioned on the previous slides. It is not always possible to prepare a complete energy balance because not all inputs and outputs can be quantified. For example, we can determine the electricity a motor uses, but not the work done by the motor. It is useful to understand the purpose or usefulness of energy-related parameters, because then it is easier to decide which parameters to measure if there is limited time

Step 3: Identification of Options Purpose: identify opportunities to improve energy efficiency for the selected focus areas Output: list of options that will be investigated on their feasibility in step 4 Tasks and minimum time: Task 3a: Determine causes of losses (0.5 day per focus area) Task 3b: Identify possible options (0.5 day per focus area) Task 3c: Screen options for feasibility analysis (0.5 day) Efficiency methodology Company Energy The purpose of step 3 is to identify opportunities to improve energy efficiency for the selected focus areas. The output is a list of options that will be investigated on their feasibility in step 4. Tasks under step 3 and the estimated time needed include:* Task 3a: Determine causes of losses (estimated 0.5 day per focus area) Task 3b: Identify possible options (estimated 0.5 day per focus area) Task 3c: Screen options for feasibility analysis (estimated 0.5 day) * Note: the time needed and who does what should already be included in the proposal prepared under task 1e. Step 3 can take between 1 – 3 days depending on the number of focus areas, the number and type of losses and causes, the time available, the technical expertise of the Team members and if tasks 3a – 3c are carried out separately or together. For example a one-day workshop can be held where the Team first looks at the causes of losses, then identifies possible options and finally screens options for feasibility analysis.

Task 3a: Determine causes of losses (0.5 day per focus area) Brainstorm session with staff and others Ask the question: Why are these losses occurring? Keep asking until you found the “root cause” Look for different causes: Man Method Machine Material Efficiency methodology Company Energy Once we have identified the losses, it is important to answer the question: Why are these losses occurring? The best way to analyze the causes is through a brainstorm session, which is a meeting with the Team and other staff from the focus areas to discuss the losses. One person can act as facilitator and make notes on a whiteboard so that everyone can follow the discussion. It is important to continue asking “why” until you have found the real cause or “root cause” of the problem. A common problem with boilers is un-burnt ashes. Why? Because the air supply to the boiler is too low. Why? Because the meter gives a wrong reading of air supplied. Why? Because the meter has not been maintained properly. Why? Because boiler operators nor maintenance staff maintain the boiler. Why? Because the maintenance procedures do not specify who should maintain the boiler and how often. This is the root cause of your loss. And only now it is possible to come up with options to solve this problem permanently. In our example, increasing the air supply is a temporary solution (saving little energy in the short term), whereas changing maintenance procedures is a permanent solution (saving a lot of energy in the long term). Causes can be man (e.g. lack of operator training), method (e.g. poor control of fan flow), machine (e.g. oversized motor), material (e.g. poor coal quality) Examples from GERIAP companies: At a Bangladeshi paper plant, an external trainer facilitated a brainstorm session that was used to determine possible causes of the excess use of fuel oil. Because management and many production staff were involved in this session many possible causes were found Plants in the Philippines received training on how to identify causes. This was useful to make sure that company would look at options that would solve the root cause rather than addressing the symptoms. At a Chinese chemical plant, heat was lost through the exit gas of the synthesis furnace. The energy expert suggested that the waste heat in the exit gas could be reused to preheat the inlet air of the synthesis furnace. The Cleaner Production expert looked at the cause of the losses, and found out that the coal used for the furnace was of poor quality and that coal. This points to options addressing the quality of coal, rather than only reusing the waste heat

Task 3a: Determine causes of losses (cont.) Fishbone diagram Efficiency methodology Company Energy Once we have identified the losses, it is important to answer the question: Why are these losses occurring? The best way to analyze the causes is through a brainstorm session, which is a meeting with the Team and other staff from the focus areas to discuss the losses. One person can act as facilitator and make notes on a whiteboard so that everyone can follow the discussion. It is important to continue asking “why” until you have found the real cause or “root cause” of the problem. A common problem with boilers is un-burnt ashes. Why? Because the air supply to the boiler is too low. Why? Because the meter gives a wrong reading of air supplied. Why? Because the meter has not been maintained properly. Why? Because boiler operators nor maintenance staff maintain the boiler. Why? Because the maintenance procedures do not specify who should maintain the boiler and how often. This is the root cause of your loss. And only now it is possible to come up with options to solve this problem permanently. In our example, increasing the air supply is a temporary solution (saving little energy in the short term), whereas changing maintenance procedures is a permanent solution (saving a lot of energy in the long term). Causes can be man (e.g. lack of operator training), method (e.g. poor control of fan flow), machine (e.g. oversized motor), material (e.g. poor coal quality) Examples from GERIAP companies: At a Bangladeshi paper plant, an external trainer facilitated a brainstorm session that was used to determine possible causes of the excess use of fuel oil. Because management and many production staff were involved in this session many possible causes were found Plants in the Philippines received training on how to identify causes. This was useful to make sure that company would look at options that would solve the root cause rather than addressing the symptoms. At a Chinese chemical plant, heat was lost through the exit gas of the synthesis furnace. The energy expert suggested that the waste heat in the exit gas could be reused to preheat the inlet air of the synthesis furnace. The Cleaner Production expert looked at the cause of the losses, and found out that the coal used for the furnace was of poor quality and that coal. This points to options addressing the quality of coal, rather than only reusing the waste heat

Energy Focus Task 3a: Determine causes of losses (cont.) Material losses with an energy-related cause Low dye exhaustion caused by low temperatures Scale losses caused by cold air infiltration in rolling mills Energy losses with an energy-related cause High electricity use in rollers caused by overheating of bars in rolling mills High transmission and distribution losses caused by low power factor Efficiency methodology Company Energy CP assessments look at causes of the identified waste/energy/resource losses. It is important to realize that material losses can have an energy-related cause, and the other way around We will now go through a number of examples of losses that illustrate why energy efficiency must be considered as part of Cleaner Production, i.e. as part of addressing overall environmental management: energy, materials, products, waste and emissions Note to the trainer: it is not necessary to go through each example in detail, it is better to explain a few examples that you understand well rather than reading out the bullets without explanation of what they mean. Which bullets you choose depends on your experience and the industrial sector that the audience is most interested in.

Energy Focus Task 3a: Determine causes of losses (cont.) Energy losses with a material-related cause Inefficient combustion caused by improper sizing of coal High steam consumption in dyeing process caused by too high liquor-to-cloth ratio Poor product quality with an energy-related cause Thin zinc layer caused by high temperature of zinc bath in galvanizing Uneven strength of forged products caused by low/non-uniform temperature in furnace Efficiency methodology Company Energy

Efficiency methodology Do you know of any other examples?
Energy Focus Task 3a: Determine causes of losses (cont.) Other examples Low boiler efficiency caused by operating at <50% capacity High electricity consumption due to compressed air leaks High steam consumption caused by un-insulated flanges High electricity consumption due to motor operating at varying loads Efficiency methodology Company Energy Note to the trainer: it would be good to ask the participants if they know of any other example from their own experience. This will show whether they have understood the message of these slides that you cannot look at energy without looking at materials and products. Do you know of any other examples?

Task 3b: Identify possible options (0.5 day per focus area) Brainstorm session with staff and others Ask the question: What can we do to reduce energy losses? Options can fall in the following categories: Good housekeeping Improved process management Production process / equipment modification New technology / equipment Input material substitution On-site reuse / recovery Production of useful by-product Product modification Efficiency methodology Company Energy Once we know why losses occur, we can move to the next question: What can we do to solve it? A brainstorm session with the Team and other staff from the focus areas is the best way to come up with possible options. Options can fall in the following categories: Good housekeeping Improved process management Production process / equipment modification New technology / equipment Input material substitution On-site reuse / recovery Production of useful by-product. Product modification There is no such thing as a “bad idea” so everyone should be encouraged to come up with as many possible options as possible! Sometimes hundreds of possible options are generated for one focus area alone. Another source of possible options are the notes from the walkthrough of focus areas under task 2c (Worksheet 14) and the notes from the discussion with top management about energy management in the company under task 1a (Worksheet 2). Examples from companies that participated in the GERIAP project: In a Mongolian cement plant, a brainstorm session with over 20 staff resulted in tens of options. This brainstorm session was also used to make staff understand how their process worked (e.g. the kiln) and the largest energy losses are. This ensured that staff continued to look for more options after the external auditors left. At a Thai paper plant only a few options were identified because only the Energy Department of the company participated, due to the lack of communication about the assessment to the other departments. At an Indonesian cement plant, in addition to options that would improve energy efficiency and reduce greenhouse gas emissions and costs directly, the Team also recommended the installation of flow meters. Measured data with the flow meter would allow the Team to identify losses and additional options to improve energy efficiency in the future. At a Thai cement company there were not many easy options identified because the company already had identified and implemented many options in the past. An international consultant confirmed that most additional options were high cost options At an India chemicals plant, all observations pointed in the direction of one option: replace the wood-fired boiler with an oil-fired boiler

Energy Focus Task 3b: Identify possible options (cont.) A combination of options is likely Poor bleaching can be solved by: Reducing the liquor-to-cloth ratio thereby increasing the bleaching bath temperature Efficiency methodology Company Energy Often there is a mix of energy and material related causes of a loss. An option is identified by a combination of options.

Task 3c: Screen options for feasibility analysis (0.5 day) Put identified options in three groups: Options that can be implemented directly Options that require further analysis Options that can be considered at a later stage Efficiency methodology Company Energy The Team now needs to decide which possible options to investigate for feasibility. The easiest way to do the screening of options is by putting them in one of these categories: Options that can be implemented directly. They are technically simple and need little or no money to implement. For example, repairing leaks, changing an operating procedure, reducing excess air from the boiler. Options that require further analysis. These options are technically more complex or require a financial investment. For example, replacing a compressor, recovering heat from boiler blow-down, or replacing lime with alternative materials in cement production. Options that can be considered at a later stage. These options are probably difficult to investigate and implement, for example, because the costs are too high, they take too much time to investigate, or a plant upgrade is planned that will cover this option already. The meeting with management under task 1a should also give you an indication of what screening criteria to apply! Examples from companies that participated in the GERIAP project A government-owned paper plant in Sri Lanka had a poor cash flow situation, and the Sri Lanka Government was not willing to invest additional capital in the plant. For this reason the company was not in a position to invest in high cost options and therefore selected only low cost options for further feasibility analysis and implementation A Vietnamese ceramics company planned a move to a different industrial zone and therefore only selected low cost options that would not be impacted by the move At a Vietnamese paper plant, the Team raised the idea to install a new Fluidized Bed Combustion boiler with a capacity of 15 TPH instead of 3 old coal boilers. However, this option to be considered at a later stage for financial reasons because the company had already purchased two new oil-fired boilers before the GERIAP project started

Worksheet 15: Causes, identify options and screening Efficiency methodology Company Energy

Step 4: Feasibility Analysis of Options Purpose: Determine which options are technically, financially and environmentally feasible In what order feasible options should be implemented Output: proposal that is approved by top management with: Recommended options for implementation How to do this List of options that require further investigation Efficiency methodology Company Energy Step 4 – Feasibility analysis of options The purpose of step 4 is to determine which options are technically, financially and environmentally feasible and in what order feasible options should be implemented. The output of step 4 is a proposal that is approved by top management, with recommended options for implementation and how to do this, plus a list of options that require further investigation or which are not feasible.

Step 4: Feasibility Analysis of Options Tasks: Task 4a: Technical, economic and environmental evaluation of options Task 4b: Rank feasible options for implementation (0.5-1 day) Task 4c: Prepare implementation and monitoring proposal for top management approval (2-3 days) Efficiency methodology Company Energy Tasks under step 4 and the estimated time needed include: Task 4a: Technical, economic and environmental evaluation of options (time depends on the number and complexity of options investigated)* Task 4b: Rank feasible options for implementation (0.5-1 day) Task 4c: Prepare implementation and monitoring proposal for top management approval (2-3 days) *If top management has given a maximum amount of time for the feasibility analysis, then the number and type of options selected for feasibility analysis should be adjusted accordingly.

Task 4a: Technical, economic and environmental evaluation of options The Team should (time depends on options): Investigate which options are technically, economically and environmentally feasible Identify other possible reasons for implementing the option Think of possible barriers to implementing the option Efficiency methodology Company Energy Step 4a: Technical, economic and environmental evaluation of options The Team can now investigate which options are technically, economically and environmentally feasible. How this is done is described below. You can use Worksheet 16 to write down the results. First of all, you must decide what tasks should be done for each option, i.e. what do you need to find out to know if an option is feasible? This should include (see “Feasibility analysis tools” for more details and examples): Technical feasibility: need for new equipment, space availability, impact on product quality, staff time required Economic feasibility: one-off investment costs, annual operating/ongoing costs, annual cost savings, payback period Environmental feasibility: impact on energy consumption and greenhouse gas emissions, but also look at water use, raw material use, solid waste, wastewater, other air emissions, noise, odours and dust. Second, you need to identify other possible reasons for implementing the option. For example, if company emission levels are higher than legal limits then this may be a reason to implement an option even if the option is expensive. Third, you need to think of possible barriers to implementing the option. For example, an option may have large savings and a short payback period, but investment capital is not available in the company. Lack of monitoring equipment may make monitoring of results difficult. Try to think of possible solutions too! Also consider comments from top management on the reasons for energy efficiency, the current energy management practices and other factors of influence on improving energy efficiency (see Worksheet 1, 2 and 3). Examples from companies that participated in the GERIAP project: Local and regional pollution is becoming a more important issue and the Chinese Government’s policies to reduce pollution levels are getting more and more strict. For this reason, the environmental feasibility analysis of options at a Chinese paper plant also included the calculation of reductions in SO2, NOx, CO and particulate matter (PM) emissions, in addition to greenhouse gas emissions (CO2). For one of the fertilizer plants, one important aspect of the feasibility analysis was the potential impact on the product quality. In addition to this, top management gave priority to no-cost and low options At a Thai paper company, the feasibility analysis was difficult because of lack of data and monitoring equipment. Some of the figures were therefore based on experience from staff At a Thai cement company a V-separator to separate crushed limestone of different sizes was designed, constructed and installed entirely by company staff. This made the technical feasibility of the option better. A Vietnamese company had considered installing variable speed drives in the past. A consultant as part of the GERIAP helped with the feasibility analysis, which helped the company to decide to install them

Worksheet 16: Option analysis and implementation (part for feasibility analysis) Efficiency methodology Company Energy Note that one worksheet should be completed for each option. This part of the worksheet is about the technical, economic and environmental feasibility analysis

Energy Focus Task 4a: Technical, economic and environmental evaluation of options Technical Location of power, steam, compressed air lines Handling capacity of existing system for new equipment Environmental Fluorescent tube lights use less electricity than incandescent lamps but contain toxic materials Bag filter reduces dust but uses electricity Efficiency methodology Company Energy Example of location of steam lines: In a pulp and paper plant a new digester requires steam at a high pressure. Therefore the digester must be located close to a steam pipeline with sufficient pressure The contract demand for the plant is close to its limit. The addition of new equipment will result in penalties from the electricity utility supplier. A solution could be to change the contract demand or to install a separate generator.

Task 4b: Rank feasible options for Implementation Team meeting to give each option a Rank (0.5 – 1 day): Implementation in short term (e.g. <1 year) Recommended for implementation but in the longer term (e.g. 2-3 years) Recommended for further investigation or consideration at a later stage Unfeasible options Efficiency methodology Company Energy Step 4b: Rank feasible options for implementation Now that we know which options are feasible we want to know: which options should be implemented first, second, third, etc. Organize another Team meeting to give each option a rank: 1 – Options to be implemented in the short term, e.g. within one year 2 – Options recommended for implementation but in the longer term 3 – Option recommended for further investigation, or to be considered at a later stage Unfeasible options The results of the technical, economical and environmental feasibility analysis and the other reasons and barriers are used as a basis to rank the options. In practice an open discussion amongst Team members is enough to compare and rank the options. However, you could also start by giving a “low”, “medium” or “high” score for the technical, economical and environmental feasibility and other reasons, and then decide on the ranking (see Worksheet 17). Examples from companies that participated in the GERIAP project: At a Bangladeshi company, ceramic products go into the oven several times during production and as a result the temperatures inside the plant get very high, especially during summer when there is no cool air coming into the plant. Options to recover heat from the furnaces were given higher priority because in addition to energy savings the working conditions of staff could be drastically improved if the inside temperature would be reduced by several degrees. Even if the option would not be very attractive financially or environmentally, it would have received a high ranking. At a Chinese producer of oxalic acid, staff are exposed on a daily basis to chemicals. Because of this, health is now an important consideration in the ranking of options for implementation. Even if the financial and environmental benefits for certain options are not as good as for the other options, they should still receive a high ranking if they result in a reduced staff exposure to chemicals. At a Vietnamese paper plant, only low and no cost options with less than a two-year payback time were selected for implementation. The other options with larger investments will be considered for implementation pending funding approval by banks or credit institutions.

Task 4b: Rank feasible options for Implementation (cont.) For options to be implemented (rank = 1) (time depends on options): Implementation and monitoring tasks Who is responsible Completion dates How much staff time required Comments Efficiency methodology Company Energy For options recommended for implementation in the short term (rank 1), you should now decide (and include in Worksheet 16): What are the implementation and monitoring tasks Who will be responsible for coordinating and carrying out these tasks (including internal staff, and external suppliers and consultants) Completion dates How much staff time is required Other comments

Worksheet 16: Option analysis and implementation (part for implementation) Efficiency methodology Company Energy Note that one worksheet is to be completed for each option! This part of the worksheet is about the planning of the implementation and monitoring of the option.

Worksheet 17: Ranking of options Efficiency methodology Company Energy

Task 4c: Prepare implementation and monitoring proposal for top management approval Prepare Implementation and Monitoring Plan Introduction Number of options identified, options investigated for feasibility, feasible options, options requiring further investigation, and unfeasible options Options recommended for implementation in the short term Worksheets for each option Obtain management approval Efficiency methodology Company Energy Step 4c: Prepare implementation and monitoring proposal for top management approval Top management’s support is again needed for the implementation and monitoring of feasible options in the short term. The Team should prepare a proposal for an Implementation and Monitoring Plan to top management: Introduction Number of options identified, options investigated for feasibility, feasible options, options requiring further investigation, and unfeasible options Options recommended for implementation in the short term: - Total estimated investment required, annual ongoing costs, annual savings and payback period - Total estimated environmental benefits (energy, GHG emissions and resources/wastes) - Most important other reasons for implementation Most persistent and difficult barriers and proposed solutions Table with list of options including technical, economical, environmental, reasons and barriers for each individual option Team (who will carry out the implementation and monitoring, including external facilitators/consultants) Communication of results to top management and staff Appendices with Worksheets 16 for options recommended for implementation in the short term Worksheet 17 with details and ranking of all options investigated The proposal is then sent to top management for comments and approval. If an external facilitator, consultant or service provider is needed for the implementation and monitoring, a contract is signed. Examples from companies that participated in the GERIAP project: At an Indian paper plant, obtaining approval from top management was not a problem because the company has a clear procedure for the approval and implementation of options. The most important evaluation criteria are: investment costs, payback period, and impact on production process At an Indonesian cement plant that is part of a multinational, options that require more than US $ 10,000 investment costs must be authorized by the Singapore office, which adds to the time needed before the implementation of options can start. At another Indonesian cement plant, although top management approved all recommended options, several options were not implemented in that same year because there were several other projects planned that would improve the overall company performance and production output, which were given priority. At a Thai medical gloves company, a new type of glove was launched and a client placed a major order. This had to be taken into consideration for the planning of the implementation of options. At a Vietnamese cement plant, management initially was skeptical about the potential of energy efficiency options, especially relating to electricity consumption. The team put a lot of effort in providing descriptions and illustrations of energy consumption by different production processes and equipments, and assisted with preparing detailed calculations of investments and savings for the proposed options. The plant’s Team now understood the technical background of energy use and options, which resulted in them feeling confident about recommending the options to top management. Top management was very satisfied with the report and approved the implementation of options without hesitation.

Step 5: Implementation and Monitoring of Options Purpose Implement feasible options in order of priority Monitor results Discuss findings with top management Output Improved energy efficiency, reduced costs and reduced GHG emissions Agreement with top management about the next steps Tasks Task 5a: Implement options and monitor results (time depends on options) Task 5b: Evaluation meeting with top management (0.5 day) Efficiency methodology Company Energy The purpose of step 5 is to implement feasible options in order of priority and monitor results and discuss findings with top management. The output of step 5 is improved energy efficiency, reduced costs and reduced GHG emissions from implemented options, and agreement with top management about the next steps. Tasks under step 5 and include: Task 5a: Implement options and monitor results* Task 5b: Evaluation meeting with top management (0.5 day) *How much time this task takes depends on the number and complexity of options to be implemented. This decision will have been made when top management approved the Implementation and Monitoring Plan.

Task 5a: Implement options and monitor results Carry out the Implementation and Monitoring Plan Record results for each option: Economic results Environmental results Other results: e.g. any other benefits from the option and barriers encountered Communicate results to staff Efficiency methodology Company Energy 5a: Implement options and monitor results The Team should carry out the Implementation and Monitoring Plan approved by top management. Use Worksheet 16 to record the monitored results for each option. These should at least include: Economic results: one-off investment costs, annual operating/ongoing costs, annual cost savings, and payback period Environmental results: energy consumption and greenhouse gas emissions, and other environmental results (depends on each option, such as water use, raw material use, solid waste, wastewater, other air emissions, noise, odors and dust) Other results: e.g. any other benefits from the option (e.g. improved legal compliance, reduced injuries) and barriers encountered In practice, the monitored results will often be slightly different from the feasibility analysis data. Without monitoring it will be very difficult to convince management that energy efficiency projects are beneficial to the company. You need to proof especially the financial benefits of implemented options to get their support for future projects. It is also important to communicate (interim) results throughout this phase to management and staff to: Show management that energy efficiency is good for business and gain their support for future projects Reward staff for their efforts in improving energy efficiency and encourage them to come up with new options Examples from companies that participated in the GERIAP project: A Bangladeshi steel company commissioned a US $ 1 million acid (spent pickling) regeneration unit. But due to lower production than expected, the payback period was longer than calculated in the feasibility analysis At a fertilizer plant, the Environmental Manager depended on the input from different departments Staff at these departments had other work priorities and therefore results for several options could not be obtained. At a chemicals company in the Philippines, some of the approved options were not implemented because the boiler operator had not received instructions from the plant supervisor on how to implement options at the boiler and to monitor results. A Thai producer of lime, installed a bag filter to collect lime powder dust because dust is considered a major problem by local authorities and residents, although financially the option would not save the company money. However, when the bag filter was put into operation it was found that the lime powder could be recovered and sold as product. This provided the company with unexpected savings of almost US $ 35,000 and the bag filter was paid back in 18 months. A Thai steel company implemented several options, but for the external facilitators it was difficult to obtain the results from the Plant’s Team. A meeting with the CEO of the company was organized to explain the need to obtain results to be able to write case studies for implemented options. With the CEO’s support, the Plant’s Team had the permission to spend time to monitor and report results. Management of a Vietnamese paper plant gave staff the freedom to experiment with the implementation of different options, which resulted in unexpected successes

Worksheet 16: Option analysis and implementation (part for feasibility analysis) Efficiency methodology Company Energy Note that one worksheet was completed for each option. The results after implementation can just be added to these worksheets

Task 5b: Evaluation meeting with top management (2-4 hours) Purpose: Close the first round of energy efficiency projects Gain management commitment to continue with energy efficiency Discuss the following: Results How to communicate results internally and externally How to continue Additional options for implementation / investigation New focus areas to carry out more assessments How to integrate energy management throughout the company’s systems Efficiency methodology Company Energy 5b: Evaluation meeting with top management An evaluation meeting between the Team and top management is necessary to formally close the first round of energy efficiency projects. But a second purpose is to gain their commitment to continue with energy efficiency. At this 2-4 hour meeting discuss the following: Results of the implemented options and how to communicate these internally and externally (see “Company examples” on how to do this) How to continue to improve the company’s energy efficiency by agreeing with top management Additional options for implementation (ranked 2 under task 3b) Additional options for further investigation (ranked 3 under task 3b) New focus areas to carry out more assessments (e.g. based on the list of possible focus areas from task 1d) How to integrate energy management throughout the company’s systems by agreeing with top management actions needed under the six categories of the Energy Management Matrix (see Worksheet 3): Therefore this evaluation meeting could also be used as a first meeting with top management (task 1a) as part of a new cycle. Examples from companies that participated in the GERIAP project: Top management of a Vietnamese cement company indicated that the energy assessment has made the company more conscious about energy efficiency and the potential savings. However, management was not certain about whether to continue with energy efficiency, because they do not know what the improvement potential is. Benchmark figures to compare the company’s specific energy consumption with similar companies or compare the performance of their equipments with standards would help to convince management Thanks to the positive results from the energy options implemented, top management of a fertilizer company in Vietnam supported further energy efficiency activities that were proposed by the team relating to the spray nozzle of the boiler

Step 6: Continuous Improvement Purpose: ensure that the company continues improving energy efficiency in a systematic way that is integrated in company processes (these are the key components of Cleaner Production!!) Output: Continuation of implementing energy efficiency options Integration of energy management into company processes Task 6a: Prepare proposal to continue with energy efficiency (2-3 days) Efficiency methodology Company Energy Continuous improvement The purpose of step 6 is to ensure that the company continues with improving energy efficiency in a systematic way that is integrated in company processes (these are the key components of Cleaner Production) The output of step 6 is continuation of implementing energy efficiency options and integration of energy management into company processes Step 6 has only one task: Task 6a: Prepare a proposal to continue with energy efficiency for top management approval (2-3 days)

Task 6a: Prepare a proposal to continue with energy efficiency for top management approval Write a proposal Based on what was agreed with top management at the evaluation meeting Considering new focus areas and options identified for later implementation / investigation Include how to integrate energy management into company processes!! Seek top management approval Efficiency methodology Company Energy 6a: Prepare a proposal to continue with energy efficiency for top management approval The Team should now write a proposal based on what was agreed with top management at the evaluation meeting and seek top management approval. Write this proposal by making use of Worksheet 11 - Assessment proposal (for the assessment of new selected focus areas and the feasibility analysis of the additional options selected for further investigation) Worksheet 18 - Implementation and monitoring proposal (for additional options selected for implementation and energy management improvement options) Therefore writing this proposal is in fact a combination of preparing and assessment proposal (task 1e) and an implementation and monitoring proposal (task 3c) as part of a new cycle. Energy management has been integrated into the Methodology, for example: The quality of the pre-assessment (task 1c) and assessment (step 2) depend largely on the quality of energy management systems Some of the identified options were aimed at improving energy management (task 3b) Many of the barriers for options are energy management barriers (task 4a) For this reason, continuous improvement can only be achieved by effective energy management and integration of energy management into other company processes and systems (see the Energy Management Matrix in Worksheet 3). For example, energy management should be integrated into the same management system for environment, health and safety, quality, and risks. With the experience the Team now has, they can focus even more on improving energy management in a second cycle of the Methodology. Examples from companies that participated in the GERIAP project: A ceramics plant in Bangladesh’s main client is the Swedish multinational IKEA Trading Ltd, which requires that suppliers meet their environmental standards. Because of this, the company has a commercial incentive to continue to improve its environmental performance, including improved energy efficiency and reduced greenhouse gas emissions. A Chinese paper plant has a quality and environmental management system certified to the ISO standards, which provides the framework for continued energy efficiency improvement. An Indian cement company continued with energy efficiency and independently identified and implemented 26 new options! The main reason that this happened was the very high motivation of staff and trust of top management in its staff, even though the company has only limited formal systems for energy management. The clean development mechanism (CDM) under the Kyoto Protocol for climate change can be an important driver for future GHG emission reductions through energy efficiency improvements for a large cement company in Indonesia Although several options were implemented successfully at one Indonesian plant, top management decided not to continue with energy efficiency in the near future. The reason is that a new plant is being constructed, which puts a lot of pressure on the time and resources available. In other words, energy efficiency is not considered un-important, but the new plant is given a higher priority. This illustrates how important it is to integrate energy efficiency into all business processes. At a Sri Lanka steel company the lack of a formal program to motivate staff to come up with new ideas and the lack of a government policy framework at national level on energy, has slowed down activities to improve energy efficiency in the future Staff at a medical gloves company in Thailand know that their jobs depend on whether the company can maintain its position in the gloves market and therefore is motivated to help top management in every way they can.

In Summary: The Company Energy Efficiency Methodology helps companies to: Save energy Reduce costs Protect the environment Now and in the future! Efficiency methodology Company Energy

How to become Energy Efficient
Training Session on the Company Energy Efficiency methodology How to become Energy Efficient THANK YOU FOR YOUR ATTENTION Efficiency Methodology Company Energy Hello.

Efficiency Methodology
Disclaimer and References This training session was prepared as part of the development and delivery of the course “Energizing Cleaner Production” funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany) and carried out by the United Nations Environment Programme (UNEP) The session is based on materials from the “Energy Efficiency Guide for Industry in Asia” developed as part of the GERIAP project that was funded by the Swedish International Development Cooperation Agency (Sida) The textbook chapter is available on Efficiency Methodology Company Energy

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