-Energy-Management.

Energy Reduction and Sustainability through

Total Energy Management (TEM)

Santiago [email protected]

Sean [email protected]

November 2009

2

Agenda

• Energy reduction and sustainability through implementation of “Total Energy Management”program

• Assisting our injection molders to achieve sustainability through “TEM” program

3

Manufacturing Advisory Services

Provide operational consulting, design and

project management services to support our existing and prospective customers

1. Consulting and Advisory Services

• Comprehensive plant & operational assessment

• Operational performance improvement & implementation

• Facility planning and optimization

• Total Energy Management Program

2. Building and Infrastructure Planning and Design

3. Project Management and Turnkey services

4

CO2 Emission due to Electricity Production

83% of total emissions is CO2 related

40% of CO2 emissions is due to producing electricity

forecasted global CO2 is expected to increase by 36% over 1990 levels by 2010

1900 1910 1920 1930 1940 1950 1960 1980 1990 2000 2008

Source: US Energy Information Administration

5

Carbon Cap-and-Trade

United States:

• New carbon cap-and-trade program calls for 14% below 2005 levels by 2020 and 83% below by 2050

• Energy intensive manufacturers would be forced to identify energy reduction opportunities (compliant with ISO 50001)

Canada:

• Reduce greenhouse gas emissions by 20% from 2006 levels by 2020

• In Ontario, 6,300 MW reduction in peak demand by 2025 (most ambitious target in North America)

Legislated Actions to Reduce Carbon Footprint

6

Costs Breakdown in Typical Molding Plants

• “Energy” could be the same or more than “Direct labor” *

• Approximately 70% of cost savings are focused on direct labor

* Costs vary based on markets, number of machines, geographical location, etc..

- Consumer manufacturer in US - Bottle manufacturer in US

Material

59%

Direct labor

6%

Indirect labor

9%

Maintenance

2%

Energy

6%

Other controllable

expenses

2%

Payroll benefits

7%

Occupancy

4%

Depreciation

5%

Material78%

Labor

3%Energy

5%

Primary Equipment10%

Building & Infrastructure

3% Maitenance1%

7

Two Approaches to Reduce Cost

1. Reduce the cost of energy used through acquisition to reduce the $/ kWh

• Numerous consulting firms provide “Negotiation and risk mitigation” services

• Alternative Energy generation

2. Reduce the amount of energy used (KW/lb):

• Certain utility companies offer programs that provide molders rebates towards the purchase and installation of qualified equipment that improves their facility’s energy efficiency

The two approaches alone without an “Energy Management Program” is not sustainable

8

• Implementation of policies and procedures to measure, set targets, and monitor energy related KPIs to continuously reduce and sustain energy consumption

Total Energy Management

9

Magnitude of Savings

• Energy cost can be reduced by up to 30% for most plastics processing plants

• Savings can be achieved through a combination of No-cost, Low-cost, and Investment actions

30% Energy cost savings

Organizational /Management

MaintenanceCapital

Investment

10

1 - Estimate and verify site energy profile

2 - Understand your “Base” and “Process” loads

3 - Understand when and how much energy is used

4 - Monitoring and Targeting

– Understand Where energy is used

5 - Data analysis and reporting energy KPIs (Energy dashboard) by department

6 - Identify, Quantify, and Prioritize opportunities

7 - Eliminate waste and reduce consumption through

Implementation of selected energy reduction projects

8 - Conduct internal and external benchmarking

9 - Repeat the steps – Continuous improvement

Husky Total Energy Management Program

11

1- Estimate and Verify Site Energy Profile

• Estimated site energy profile based on audited equipment

• Verify estimated energy profile through actual on-site measurements

Estimated consumption break down

Plant Lighting

9.6%

Injection Molding

Machine

56.1%

Cranes

0.1%

Feed Systems

1.7%

Printers

4.2%

Compressed air

5.8%

Wrapping Machines

0.0%

Handle Machines

1.3%

Process Water system

16.9%

Thermoformer

2.3%

Film Extruder

2.1%

Measured consumption break down

Film Extruder

4.5%Thermoformer

2.5%

Process Water system

16.5%

Handle Machines

1.3%

Wrapping Machines

0.0%

Compressed air

8.7%

Printers

4.4%

Feed Systems

1.6%

Cranes

0.1%

Injection Molding

Machine

51.5%

Plant Lighting

8.9%

12

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Production volume (Kg or Lb)

En

erg

y u

sag

e (

KW

h)

• Energy has variable and fixed costs and both can be affected

• Performance Characteristic Line (PCL) provides an operational signature of the plant that is closely related to the way the plant management runs the plant

2 - Identify Base & Process Loads

13

Performance Characteristic Line (PCL)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Production volume (Kg or Lb)

Energ

y u

sage (K

Wh)

Base load

• Base load is effectively your “Energy overhead” and is the energy consumption with No production output

• Base loads are typically 10% to 40% of the average total load . The less the better

• Base loads energy usage reduction are generally easy to make, low in cost, and have rapid payback (low hanging fruits)

14

Performance Characteristic Line (PCL)

• Slope of the line indicates the average plant process load (Kwh/ Kg or Lb). The less the better

• Plant process loads are typically in the region of 0.6 to 1.6 Kwh/Kg (0.36 to 0.72 KWh/ Lb)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Production volume (Kg or Lb)

Energ

y u

sage (KW

h)

Base load

Slope = 1.57

R2 = 0.96

• Correlation coefficient (R2) indicates linearity between energy usage and production volume

– High R2 (low scatter) means good correlation between energy usage and production volume

15

3 – Understand “When” and “How much”

Peak at 1,700KW

Base load at 300KW (25% of average load)Goal to be @ 10% of average load

Average PF of 0.84Goal to be above 0.9

16

• Monitoring & Targeting - Sub-metering to understand Where energy is used

– Husky’s installed three main meters and fifteen sub-meters in one building

4 – Monitoring & Targeting - Understand “Where”

17

– SPC analysis for energy usage

– Energy profile

– Cost allocation and budgeting

– Forecasting energy consumption per department

– Variance analysis (Deviation between actual and predicted energy)

5 – Data Analysis and Energy KPIs

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Month

De

via

tio

n f

rom

pre

dic

ted

(K

Wh

)

-100000

-50000

0

50000

100000

150000

200000

250000

300000

350000

400000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Month

CU

SU

M (

KW

h)

Target CUSUM

Original CUSUM

18

Reporting energy KPIs (Energy dashboard) by department– Electrical cost as % of production cost

– Monthly deviation from predicted and target energy usage

– Cumulative deviation from predicted and target energy usage

– Electricity cost and production volume by month

– Status of energy reduction projects

Energy on Management Agenda

Electrical cost as % of production cost

Monthly deviation from predicted and target energy usage

Cum. deviation from predicted and target energy usage

Electricity cost and production volume by month

19

1 - Estimate and verify site energy profile

2 - Understand your “Base” and “Process” loads

3 - Understand when and how much energy is used

4 - Monitoring and Targeting

– Understand Where energy is used

5 - Data analysis and reporting energy KPIs (Energy dashboard) by department

6 - Identify, Quantify, and Prioritize opportunities

7 - Eliminate waste and reduce consumption through

Implementation of selected energy reduction projects

8 - Conduct internal and external benchmarking

9 - Repeat the steps – Continuous improvement

Husky Total Energy Management Program

20

Machines

50%

Lighting

3%

Mold cooling

12%

Dryers

20%

HVAC

8%

Air compressors

6%Others

1%

Typical Part Cost Break Down

ENERGYENERGY

Resin

86%

Labour

2%Energy

3%

Equipment

5%

Infrastructure

2%Maintenance

2%3% to 5%

21

Mold Cooling - Chiller Types

Machines

50%

Others

1%

Air compressors

6%HVAC

8%

Dryers

20%

Mold cooling

12%

Lighting

3%

0.00

5.00

10.00

15.00

20.00

40 41 42 43 44 45 46 47 48 49 50 51

Leaving chilled water temperature

% i

ncre

ase i

n C

hil

lers

' C

OP

Absorption

Reciprocating

Centrifugal

Screw

(F)

• Typically every 1oF increase in leavingwater temperature from chillers results to 1% to 1.5% reduction in energy

22

Free Cooling

23

Free Cooling – Case Study – Middlesex, UK

Effect of Chilled Water Temperature on free Cooling:PET mold, 50oF vs. 43oF LWT:

• 15% of the year with 40oF (4.5C) (including dry cooler and heat exchanger approach)

• 4% of the year with 33oF (0.5C) (including dry cooler and heat exchanger approach)

• Estimated savings around $40k / year vs. $11K / year

Temperature vs. Time - Middlesex UK

0

5

10

15

20

25

11/14/2007 1/3/2008 2/22/2008 4/12/2008 6/1/2008 7/21/2008 9/9/2008 10/29/2008 12/18/2008 2/6/2009

Date

Tem

pera

ture

(d

eg

C)

15% of the year is colder than 4.5°C,

compared to 4.26% of the year

colder than 0.5°C

40F

33F

24

Dehumidification – Case Study - Middlesex, UK

Dew Point vs. Time - Middlesex UK

-10

-5

0

5

10

15

20

11/14/2007 1/3/2008 2/22/2008 4/12/2008 6/1/2008 7/21/2008 9/9/2008 10/29/2008 12/18/2008 2/6/2009Date

Tem

pe

ratu

re (

de

gC

)

72% of the year the dew point is less

than 10°C, compared to 42% of the

year below 6°C

Effect of Chilled Water Temperature on mold dehumidification:PET mold, 50oF vs. 43oF LWT:

• 72% of the year dew point is less than 50oF• 42% of the year dew point is less than 43oF

50F

43F

25

Turbocor – Micro Centrifugal Compressors

• New compressor technology

• Oil-free, variable speed drive compressor

– No oil management hardware, controls or downtime costs

– Improved heat transfer efficiency

• Uses centrifugal compression technology, previously limited to large chillers 2,000KW + (250 Ton+)

– COP (KWth/ KWe) of 6 to 10 or (0.55 kwh/Ton).

Better energy consumption than scroll compressors

– Similar capital costs to a regular air cooled chiller

• Quiet operation

– 70dBA sound with virtually no vibration

• Compact– 50% less footprint and 1/4 to 1/5 the weight of traditional compressors

26

Machine Cooling Options

Cooling Towers

• Contamination in water

• Scale and oxidation in pipes

• High water and chemical consumption

• Cost of water disposal

Dry Coolers

• Clean water to process

• No scale or corrosion

• Minimal maintenance

• Reduced energy consumption

• No water disposal

• No water treatment chemical consumption

27

Dry Coolers

1. Adiabatic Cooling – Maintains ability to deliver cool water even in HOT ambient conditions with minimal water consumption, little maintenance.

2. Self-Draining - Freeze protection without requirement for Antifreeze/Glycols. Works in all climates.

3. DC Variable Speed Fans – Extremely low energy consumption

4. Less than 20 times less water than tower

-

0.50

1.00

1.50

2.00

100806040200O U T D O O R T E M P . ( C )

kW / fan

28

Cascading Use of Energy

29

1. Traditional systems

– Roof top DX units

– Central chillers and air handling units

2. Displacement ventilation

Air Conditioning

Machines

50%

Others

1%

Air

compressors

6%

HVAC

8%

Dryers

20%

Mold cooling

12%

Lighting

3%

30

Air Conditioning

1,194

879 315

0 200 400 600 800 1,000 1,200 1,400

Cooling Size (kW)

26% lessDisplacementVentilation

TraditionalVentilation

1,194

879 315

0 200 400 600 800 1,000 1,200 1,400

Cooling Size (kW)

26% lessDisplacementVentilation

TraditionalVentilation

2,272

1,154 1,118

0 500 1,000 1,500 2,000 2,500

Chiller Thermal Energy Use / Year (MWH/Yr)

49% lessDisplacement

Ventilation

TraditionalVentilation

2,272

1,154 1,118

0 500 1,000 1,500 2,000 2,500

Chiller Thermal Energy Use / Year (MWH/Yr)

49% lessDisplacement

Ventilation

TraditionalVentilation

Up to 26% less capital cost

Up to 49% less operational cost

Traditional air conditioning Displacement Ventilation

31

Advanced Technology Resin Dryer

• Variable throughput feature– Controlled residence time

– Optimized air flow

• Energy recovery system– Up to 25% of the required

temperature rise for free

• Energy efficient– < 0.08kWh/kg all electric

$28,000/ Year

Estimated Savings

0.040.063Energy

New

(kWh/Lb)

Traditional (kWh/Lb)

2200Lb/hr

$0.07/kWh , 8000hrs/yr

$28,000/ Year

Estimated Savings

0.040.063Energy

New

(kWh/Lb)

Traditional (kWh/Lb)

2200Lb/hr

$0.07/kWh , 8000hrs/yr

Machines

50%

Lighting

3%

Mold cooling

12%

Dryers

20%

HVAC

8%

Air

compressors

6%Others

1%

32

Machines

50%

Lighting

3%

Mold cooling

12%

Dryers

20%

HVAC

8%

Air compressors

6%

Others

1%

Compressed Air

• Compressors are only 5-15% efficient

• Compressed air is expensive energy– At point of use compressed air costs 10

times more than equivalent quantity of electrical power

• Most of the cost of a compressor is in the energy it uses

Energy cost, 75%

Capital cost, 15%

Maintenance, 10%

33

Operating Conditions Influence Energy Costs

• Part load operation– 40–80% of full kW at part load

• System pressure – each 5psi = up to 5% more power

• Air inlet temperature– each 7oF lower = 1% more air

• Pipe sizing – Each 5psi drop = 2% more energy

• Leaks commonly constitute 25% of total compressed air use

Size CFM HP $/Yr

1/4” 104 26 $15,300

One 1/4" leak is equal to 300 60-watt lamps!

34

Lighting

Machines

50%

Others

1%

Air compressors

6%HVAC

8%

Dryers

20%

Mold cooling

12%

Lighting

3%

Fluoresce T5 (0.2 KW) Metal Halide (0.4 KW)

Functioning MH Consumes 400WLight level: 400 LUX

80% burnt MH Consumes 400WLight level: 100 LUX

Dirty MH Consumes 400WLight level: 150 LUX

Burnt MH Consumes 60WLight level: 0 LUX

35

Effect of Cycle Time on Energy

Machines

50%

Lighting

3%

Mold cooling

12%

Dryers

20%

HVAC

8%

Air compressors

6%Others

1%

Base Line Exit Temperature Faster Cycle Exit Temperature

36

• 6% overall reduction in cycle times and energy consumption (KW/ Kg)

Equipment DescriptionMeasured

Power (kW)

Power Factor

480V

Cycle

Time

(sec)

Part

Weight

(g)

Number of

Parts per

Cycle

Machine

Process Load

(kW/kgHr)

Before Husky-HL160RS55/50 30.440 0.76 13.4 174 1 0.651

After Husky-HL160RS55/50 30.811 0.76 12.6 174 1 0.613

Percent improvement 6% 6%

Effect of Cycle Time on Energy

37

Power Conditioning

Corrects power quality problems:• Balances voltage across all three phases

• Balances current across all three phases

• Decrease voltage fluctuations

• Mitigates harmonics

• Corrects power factor

• Suppresses surges and transient to reduce

the chance of equipment damage

• Protects equipment from brownouts (option)

• Protects equipment from intermittent supply

failure

38

• Thermolators

• Raising chilled water above ambient wet bulb temperature

• Chillers

• Un-optimized water temperature

• Air compressors

• Leakage

• A/C

• Setting temperature too low

• Leaving doors open

• Grinders

Examples of Contributors to Base Load

39

• Start with auditing your plant– Most utility providers offer financial incentives to cover

portions or all of the audit cost

– Some utility providers offer programs that provide rebates towards the purchase and installation of qualified equipment that improves their facility’s energy efficiency

• Implement an “Energy Management Program”

• Husky’s “Manufacturing Advisory Services” team can assist you in developing and implementing a TEM program for your facility

Action Plan

40

• Santiago Archila, – [email protected]

– 905-951-5000, Ext. 3810

• Sean Golzarian,– [email protected]

– 905-951-5000, Ext. 3550

• Husky website: www.husky.ca

Contacts

Energy Reduction and Sustainability through

Total Energy Management (TEM)

Santiago [email protected]

Sean [email protected]

November 2009