1. Energy Efficiency and Emission Management Edwin van den Maagdenberg Vice President Technology and Operations Honeywell Process Solutions

2. 2 Outlook World energy challenge is enormous: –Demand is growing –Energy mix changing –Volatile prices –GHG emissions Kazakhstan: –Overreliance on oil and extractive industries –Diversification of Industrial base –Global competition Image source: NASA, ”World at night”

3. 3 Energy and Emission Excellence means…….. 1.Driving suitable behaviours –Culture, systems, motivation and rewards all play a vital role in the behaviours leading to an optimally efficient operation. 2.Integrating Control and Workstream processes –Optimization requires fully integrated systems working in real- time across all functions and boundaries. 3.Lifecycle and holistic perspectives –The design process must start with long-term vision for Energy & Emissions, else performance will always be suboptimal.

4. 4 STAGES OF THE ENERGY AND EMISSION LIFECYCLE

5. 5 Lifecycle stage 1: Compliance Monitoring for Compliance involves: –National policies and regulations. –Carbon trading schemes, Energy contracts. –Shareholder and Stakeholder interest. Raising awareness and driving behaviour –“People pay attention to those things that are measured and reported”. –Designing for “current compliance” doesn't really work.

6. 6 Lifecycle stage 2: Visualization Visualization requires: –Understanding:- Process and operational activities. Interrelationships and interdependencies. The impact on productivity, costs, energy consumption and emissions. Driving behaviour –Setting performance targets. –Defining Key Performance Indicators (KPI’s).

7. 7 Lifecycle stage 3: Process Control Controlling activities requires: –Systems to monitor activity and deviations from target. Awareness of deviation and its financial impact will not drive efficiencies unless corrective actions are taken to realign with performance target. Driving behaviour –Measuring performance against real-time (dynamic) targets and KPI’s.

8. 8 Lifecycle stage 4: Optimization Optimizing performance requires: –Holistically working across multiple plants, facilities and geographies. –Advanced Process Control (fast-pace and complexity of decision making). –Integrating control and workstream systems (MES and ERP) to enhance decision making. –Performance reporting vs. best-achievable or best-in-class to drive behaviour and motivation.

9. 9 Lifecycle stage 5: Sustainability Sustainability requires: –Intrinsically linked to Corporate goals, objectives and visions across the global enterprise. –Embedding knowledge and learning to ensure longevity of benefits. –Long-term partnerships to support future visions and direction. Proficiency requires: –A mastery of the skills for continuous superior performance.

10. 10 BENEFITS

11. 11 Main drivers of Energy Management activity Energy Efficiency is a long term goal –Spot solutions only provide limited benefits. –Site-wide optimization provides for maximum benefits and sustainability. –Energy and CO 2 agenda’s are increasingly influenced by Stakeholders Source: Aberdeen Group_Report 2011 Operations must be engineered for energy efficiency and emission control –Cheapest “bid” is rarely the most efficient. –Integration of real-time controls optimizes efficiency in operations. Competing in a Global market space –Added Value, consistent quality, regulatory compliance, reliability of supply and price will continue to define competitive advantage.

12. 12 Best in class Technology Enablers Visibility and Process Control –Performance dashboards drive culture, focus, behaviour and activities. Dynamic Targets –Simulation and modelling quickly establish dynamic energy targets. Source: Aberdeen Group_Report 2011 Emission Management is a key driver of top Energy efficiency programs –CO 2, NOx, SOx etc.. –Drives Energy related decision making. Energy management is integrated into Corporate ERP and MES systems –Optimized decision making. –Delivers sustainability and profitability.

13. 13 These results can be realized by Honeywell in refining and some petrochemical complexes (utilizing both HPS and UOP capabilities) and with external partners for other chemical industries and pulp and paper. Typical benefits of Industrial process optimization

14. 14 Business Excellence through Best-in-Class technologies Source: International Energy Agency report 2010 Sector benefits exclude deforestation, recycling, energy recovery and Combined Heat & Power (CHP) Typical benefits from integrating the best available technologies for advanced process control and optimization.

15. 15 Benefits of Energy & Emission Excellence Lifecycle Effective use of the lifecycle requires a set of robust behaviours and integrated processes to support Corporate goals and vision. The lifecycle promotes optimal performance of plants, facilities and corporations, maximizing productivity whilst minimizing energy consumption and emissions. Early adoption promotes Safety, Reliability, Efficiency and Sustainability, which all drive long-term profitability. Honeywell has a portfolio of hardware, software and expert services to improve energy efficiency and reduce emissions. To date, Honeywell has completed more than 4,000 such projects, delivering more than $3billion in savings.

16. 16 THANK YOU