1. ALIGN ENERGY MANAGEMENT GOALS WITH BUSINESS OBJECTIVES TO INFLUENCE CULTURE CHANGE Save Money through Practical Energy, Resources, and Carbon Management Chih-Ting Lo Principal | EELO Solutions Inc. www.eelo.ca June 2015

2. Source: Enerdata Global Energy Statistical Yearbook 2014Global Energy Statistical Yearbook 2014

3. Energy Ecology Source Materials TransportProcesses Product Storage/ Delivery Supply Electricity, Natural Gas, Diesel, Fuel, Propane, …etc Moving – solid, liquid, gas Heating, Cooling, Compressing, Blowing, Lighting, extruding, digging, ….etc Waste Inefficiency Demand

4. Energy is like another foreign language Energy kWh/GJ/kW/BTU Reduce 1MWh per year Important to look at energy Operating at the pump curve VFD/VSD/technology jargon Improve grind size Business X% of operating cost Increase profit by $$$ Improve environmental footprint Enhance reliability Reduce risk Increase productivity $#^!

5. Approach A continuous improvement approach A comprehensive program Focus on people & how to help people do their job better It takes time and dedicated resources to see sustaining results

6. Continuous Improvement Process  ISO50001Energy Management Standard

7. A comprehensive program Realistic and practical target High value and well received projects Do not over- promise and under-deliver Share successIt takes time

8. Program People Implementation Validation Report Policy Target Framework People Support Focus on People  Top-down and bottom-up required

9. Example Projects

10. #1- Four year on-going energy program  Started in 2011 from government incentive program  Strategy includes:  People Team with business unit leaders Dedicated energy manager  Practical and Effective Plan Align business objectives with energy Prioritization/Engagement/Buy-in Technical (capital and operations) projects Training/Education projects  Action  Validation and Evaluation Build on small wins People Plan Action Validation

11. #1- Four year on-going energy program  $5M+ &10GWh+ in savings and from increased production/profit annually  Investment of ~$11M (plus incentives)  ~15 projects completed/in the pipeline in 4 years  2014 Awards:  Internal Global Business Improvement Excellence Award among 20+ sites  Canadian National Leadership Award on Integrated Energy Management Strategy  A Finalist for the Platts Global Energy Award

12. #2 - Electricity Demand Management Problem  Demand charge in 2013 was 43% of bill ($7.4M)  No one understands the utility bill Solution  Developed a plan to reduce load without impact on operation  Dedicated resource  Training and engagement What happens now  ~$2.5M savings in 18 months  Program won global award  Able to hire additional resource  Management/operators changed attitude

13. #3 – Fish farm with 28 farms & 3 hatcheries Problem  A disconnect between operation and management on energy/GHG  A study required for a industry specific certification that includes energy/GHG Solution  A study revealed interesting findings and motivated management team What happens now?  Now launching ISO50001 program

14. Save Money through Practical Energy, Resources, and Carbon Management Chih-Ting Lo Principal | EELO Solutions www.eelo.ca Phone: 604.657.9602 Email: chihting.lo@eelo.cachihting.lo@eelo.ca “Energy efficiency slows energy demand growth, diminishes supply-side investment and reduces international energy prices.” - World Energy Outlook 2014 by International Energy Agency Outlook