Energy Efficiency Methodology

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Energy Efficiency

Methodology

Energizing Cleaner Production

Management Course

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Training Agenda: Company Energy

Efficiency methodology

Introduction to the methodology

Methodology step by step

Purpose, outputs and tasks

Company examples

Worksheets

Energy focus

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Introduction

The Company Energy Efficiency Methodology (Methodology) has been developed for Asian industrial companies

to help them improve energy efficiency

through Cleaner Production.

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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 14001 targets

Increased profits and shareholder

value

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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

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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

The Methodology is based on:

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task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

task 4a: Technical, economic and environmental evaluation of options task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top

management approval

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

task 6a: Prepare proposal to continue with energy efficiency for top management approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval


task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis


task 4a: Technical, economic and environmental evaluation of options task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top

management approval

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

task 6a: Prepare proposal to continue with energy efficiency for top management approval


Step 4: Feasibility Analysis of Options

6-Step

Cleaner

Production

Approach

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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.

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Purpose:

Obtain top management commitment

Plan and organize an energy assessment

Output:

Written proposal with selected steps and tasks to improve the companys energy efficiency

Approved by top management.

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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)

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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 managements approval for a pre-assessment

Write a proposal for a detailed energy assessment

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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

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Worksheet 1: Reasons for Energy

Efficiency

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Worksheet 2: Energy Management

Matrix

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Worksheet 3: Factors influencing

the energy assessment approach

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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

companys Accountant or Finance Manager

A communications or training person

A top management representative

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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

Energy

Focus

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Worksheet 4: Team Members and

Roles

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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 (GHGs) emissions

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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

Energy

Focus

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Production and resource data should

also include

Fuel consumption rates and costs

Electricity consumption and costs

Fuel mix

Electricity bills from utility

Energy

Focus

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Inventory of major equipment

Name of equipment: motor

Numbers: 50

Capacity: 1 with 100 HP, 39 with >25 HP, 10 with

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Worksheet 6: General Production

Flow Chart

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Worksheet 7: Production and

Resource Data

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Worksheet 8: Inventory of Major

Equipment

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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

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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!)

Energy

FocusTask 1d: Select focus areas (cont.)

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Worksheet 10: Selection of Focus

Areas

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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

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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!

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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)

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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

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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

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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

Energy

Focus

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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

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Worksheet 14: Walkthrough

observations

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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)

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Worksheet 13: Process flow chart,

inputs/output, energy balance

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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

Energy

Focus

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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

Energy

Focus

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coal yard

manual

screening

and crushing

ID fan Standard

parameters:

##

Head developed

## PROCESS STEP REFERENCE process

step steam generation

process

paramete

r

Standard

equipme

nt boiler

pressure

rating

Operatin

g

steam separation

FD fan

standard parameters:

##

##

BFW pump

Standard

parameters:

##

Hidden loses:

H2 & moisture:

##

Radiation:

##

Moisture in air:

## air:

## (actual)

## (standard)

##

(actual)

wate

r

electricity

conditionin

g chemical

dry steam (##)

##(actual)

## (actual) wet stream

unburnt in ash: ##

blow down loss: ##

electricit

y

## (actual) coal (lignite) ## (actual)

coal

(lignite)

coal

(lignite)

water spray Coal fines( carpet loss)

fugitive emissions

Hot condensate (#)

## (actual)

electricity

##(actual)

Energy

Focus

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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!

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Task 2e: Quantify losses through a

material and energy balance

electricity

9 kW(actual)

Flue gases

loss: 13.2%

(actual)

2.25 Mk/hr

(actual)

coal yard

manual

screening

and crushing

ID fan Standard

parameters:

250 mmWC

Head developed

200o C & 20kW PROCESS STEP REFERENCE

process

step steam generation

process

paramete

r

Standard

12 kg/cm2

6 t/hr

equipme

nt boiler

pressure

rating

Operatin

g

10

kg/cm2

4 t/hr

steam separation

FD fan

standard parameters:

100 mmWC;

30o C & 15 kW at

BFW pump

Standard

parameters:

8 t/hr at 13 kg/cm2

Hidden loses:

H2 & moisture:

2.5 Mk/hour (actual) 14.4%

Radiation:

0.17 Mk/hr (actual) 1%

Moisture in air:

0.03 Mk/hr (actual) 0.15% air:

12.61 t/hr (actual)

14.34 t/hr

(standard)

0.5

Mk/hr

(actual)

wate

r

electricity

conditionin

g chemical

dry steam (97%)

11.3 Mk/hr

(actual)

11.40 Mk/ht

(actual)

wet stream

unburnt in ash: 4.85%

0.83 Mk/hr (actual)

blow down loss:

1.4%

0.24 Mk/hr (actual)

electricit

y

17.0 Mk/hr (actual) coal (lignite) 1.1 t/hr

(actual)

coal

(lignite)

coal

(lignite)

water spray Coal fines( carpet loss)

fugitive emissions

Hot condensate (3%)

0.09 Mk/hr (actual)

Energy

Focus

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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)

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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

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losses (cont.)

Fishbone diagram

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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

Energy

Focus

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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

Energy

Focus

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losses (cont.)

Other examples

Low boiler efficiency caused by operating at

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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

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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

Energy

Focus

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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

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Worksheet 15: Causes, identify

options and screening

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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

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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)

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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

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Worksheet 16: Option analysis and

implementation (part for feasibility analysis)

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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

Energy

Focus

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Task 4b: Rank feasible options for

Implementation

Team meeting to give each option a

Rank (0.5 1 day):

1. Implementation in short term (e.g.

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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

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implementation (part for implementation)

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Worksheet 17: Ranking of options

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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

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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)

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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

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implementation (part for feasibility analysis)

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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

companys systems

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Purpose: ensure that the company continuesimproving 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)

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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

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In Summary:

The Company Energy Efficiency

Methodology helps companies to:

Save energy

Reduce costs

Protect the environment

Now and in the future!

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Training Session on the Company

Energy Efficiency methodology

How to become

Energy Efficient

THANK YOU

FOR YOUR ATTENTION

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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

www.energyefficiencyasia.org

Disclaimer and References

Energy Efficiency Methodology

Documents

management task

assessment task

staff task

training task

implementation task

baseline task

organization task

monitoring of options