MOVING FORWARD & & & Becoming a Green Power Leader: Jim Cooke, AIA National Facilities Operations Manager Managing Energy Costs Through Clean, Renewable Power
MOVING FORWARD………Becoming a Green Power Leader:
Jim Cooke, AIA
National Facilities Operations Manager
Managing Energy Costs Through Clean, Renewable
Power
MOVING FORWARD…………..Managing Energy Costs Through Clean,
Renewable Power
Toyota’s Model for Energy Costs and Sustainability
•THE CONTEXT……..why we do what we do.
•THE ACCOMPLISHMENTS…..what we've done.
•THE TOOLS………….how we do it.
•GREEN POWER LEADERSHIP………case studies
•THE CHALLENGES…..where do we go from here.
MOVING FORWARD…………..THE CONTEXT…………….
Global Warming and Greenhouse Gases: there are believers and skeptics……..
• "Hogwash……………it's just science"• "Is it too late?"• "Can we afford not to take it seriously just in
case?• Can we do nothing?• If we look at the recent California legislation
(AB 1103) regarding GHG emissions, it may become a "business imperative".
MOVING FORWARD…………..THE CONTEXT…………….
MORE THAN JUST CARSToyota Motor Corporation Earth Charter (1992)§ Contribute towards a prosperous 21st century society§ Pursue environmental technologies§ Take action voluntarily§ Work in cooperation with society
“It is our actions today that determine the world of tomorrow. The result of those actions will directly affect the world that our children will inherit.”
"It is more than just good business for Toyota; it is the key tothe future of our industry and a necessity for a healthy future for people everywhere.”
MOVING FORWARD…………..THE CONTEXT…………….
MOVING FORWARD…………..THE CONTEXT…………….
MOVING FORWARD…………..THE CONTEXT…………….
MOVING FORWARD…………..THE CONTEXT…………….
Energy Use by Sector
Carbon Sources (Million Metric Tons)
MOVING FORWARD…………..THE CONTEXT…………….
Electric Energy Use by Facility Type
AIRF2%
HQ38%
PDC4%
ROB4%
ROB/PDC10%
TFSC3%
TLS10%
LEX3%
MDC1%
NAP*25%
* Includes CY 2001 Electric Energy Use for NAPCK
Business Operating Costs
Facilities 9%Technology 13%
People (Benefits), 24%
People (Salaries), 54%
Building Costs Over Time
Initial Cost - 10%Other Costs 5%
Building Operating Costs
85%
Toyota GHG Footprint
Travel and Commuting
12%Utility Useage18%
Parts Delivery Transportation
11%
Vehicle Delivery
Transportation59%
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
• 4 LEED CERTIFIED PROJECTS - 3 Gold/1 Silver/5 more underway
• ZERO WASTE TO LANDFILL - at our California HQ Site
• PHOTOVOLTAICS - 536 kW system installed in 2004, 2.2MW installed in 2008 and other projects underconsideration
• WIND ENERGY - Renewable Energy Credits
• ENVIRONMENTAL FOOTPRINT - reduced 370,000 Tons CO2
• ENERGY COST SAVINGS - $13.8 million
• LIGHTING RETROFITS - HID to T-8/T-5 Fluorescent
• RAINWATER HARVESTNG, RECLAIMED WATER USE &
XERISCAPE LANDSCAPING - various locations
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Energy Savings Impacts Overview•Invested $6.4 million in energy efficiency•Reduced energy consumption by 20.6%•$13.98 million in avoided energy costs
•2.94 million therms of natural gas•740,537,300 pounds of CO2
•369,500 pounds of SO2
•268,500 pounds of NOx
•2.8 MW renewable energy installations
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
MOVING FORWARD…………..THE TOOLS………………..
FIRM Program Process
MOVING FORWARD…………..THE TOOLS……………….
Web-based Real-time Monitoring• 68 Sites / Buildings
• 132 Electric Meters
• 34 Natural Gas Meters
• 3 Water Meters
MOVING FORWARD…………..THE TOOLS………………..
Totals - Energy 2001 2002 2003 2004 2005Total kwh 89,164,804 86,294,746 85,161,403 84,725,923 83,229,861 Total therms 2,322,643 2,045,691 2,050,003 2,045,957 1,864,187 Total mmbtuElect 304,243 294,450 290,583 289,097 283,992 Total mmbtuGas 232,209 204,520 204,951 204,547 186,374 Total squarefeet 5,908,025 5,910,820 6,008,359 6,109,854 6,166,762 Total Energy Cost 8,657,742$ 9,662,479$ 10,389,062$ 9,635,197$ 9,474,290$ Total btu/sqft 90,801 84,412 82,361 80,735 76,348
Total mmbtu 536,452 498,970 495,534 493,644 470,366 % of Elect in mmbtu's 57% 59% 59% 59% 60% % of Gas in mmbtu's 43% 41% 41% 41% 40%
% Reduction from baseline (gross) 7.0% 7.6% 8.0% 12.3%
Total btu/sqft 90,801 84,412 82,361 80,735 76,348
% Reduction from baseline (net) 7.0% 9.3% 11.1% 15.9%
Savings (from baseline) 2001 2002 2003 2004 2005Total mmbtu 536,452 498,970 495,534 493,644 470,366 Annual mmbtu Saved 37,482 40,918 42,808 66,086 Cummulative mmbtu Saved 37,482 78,399 121,207 187,293 Annual Energy Cost per sqft 1.47$ 1.63$ 1.73$ 1.58$ 1.54$
Cummulative Cost Avoided -$ 731,252$ 1,795,774$ 2,997,063$ 4,790,559$ Cummulative kWh Saved 2,870,058 6,873,459 11,312,340 17,247,283
Cummulative Therms Saved 276,952 549,593 826,279 1,284,735
Additional Comparisons 2001 2002 2003 2004 2005Total Vehicles Processed - - 407,457 1,823,289 1,584,083 Total Parts Processed - - 38,465,534 160,145,886 163,309,108
Btu's per Vehicles Processed - - 1,216,163 270,744 296,933 Btu's per Parts Processed - - 12,883 3,082 2,880
Fisc
al Y
ear
Fisc
al Y
ear
Fisc
al Y
ear
• Set Baseline
Period
• Metrics Defined
• Data Collection
• Reporting
• Analysis
Natural Resource Tracking Database
MOVING FORWARD…………..THE TOOLS………………..
Site Name Current EUI Target EUI Targeted %
ReductionTarget Year
Capital Cost Measure Type
National Headquarters 199,532 187,172 6.2% FY07 $0 Kaizen ControlsTAC 172,525 169,777 1.6% FY07 $0 Kaizen ControlsCedar Rapids CSC 139,938 125,437 10.4% FY07 $0 Kaizen ControlsSouth Campus A 118,000 114,888 2.6% FY07 $0 Kaizen ControlsSouth Campus B 121,591 118,915 2.2% FY07 $0 Kaizen ControlsDenver ROB 84,304 80,522 4.5% FY07 $0 Kaizen ControlsCentral Atlantic Toyota Distributors 57,880 56,601 2.2% FY07 $0 Kaizen ControlsNAPCC Ontario 35,283 32,738 7.2% FY07 $0 Kaizen ControlsBoston ROB/PDC 50,193 45,341 9.7% FY07 $177,800 LightingChicago ROB/PDC 43,329 35,758 17.5% FY07 $250,000 LightingCincinnati ROB/PDC 40,216 36,887 8.3% FY07 $79,000 LightingNAPCK Kentucky 33,250 28,575 16.4% FY07 $275,000 LightingNew York ROB/PDC 69,426 60,747 12.5% FY07 ? LightingTLS Georgetown 228,754 199,782 12.7% FY07 $113,800 LightingAirFlite - Main Office 133,385 83,222 37.6% FY07-08 $0 Kaizen ControlsTLS Fremont 178,238 155,459 12.8% FY07-08 $181,500 LightingTLS Princeton 173,092 132,239 23.6% FY07-08 $280,200 LightingPortland PDC 53,214 50,805 4.5% FY08 $34,000 HVACSan Francisco ROB/PDC 49,512 47,000 5.1% FY08 $0 Kaizen ControlsAirFlite - Main Hanger 22,796 15,628 31.4% FY08 $18,000 LightingMDC Annex 11,171 6,241 44.1% FY08 $58,000 LightingMDC Main 34,915 21,218 39.2% FY08 $17,000 LightingTLS Georgetown 228,754 185,291 19.0% FY08 $100,000 LightingTLS Princeton 173,092 122,895 29.0% > FY08 LightingDining Center 264,947 260,000 5.0% > FY08 Upgrade BASLexus HQ 158,321 121,000 23.6% > FY08 Upgrade BASService Garage 24,099 22,982 4.6% > FY08 Upgrade BASPC North 159,608 114,538 28.2% > FY08 Upgrade BASPC South 146,347 101,829 30.4% > FY08 Upgrade BASLA PDC 49,106 44,176 10.0% ? Lighting
Site Specific Energy Reduction Targets
MOVING FORWARD…………..THE TOOLS………………..
Air Compressors1%
Space Cooling12%
Space Heating4%
Battery Charging11%
Water Heating2%
Misc10%
Dining2%
• Assemble THunt Team
• Analyze Energy Use and Cost
• Investigate Where and When Energy is Used
• Estimate Potential Savings
• Report on Findings
• Implement Measures
Kaizen the Process
Treasure Hunts: Where and How is Electricity Used
Lighting
58%
9 10 11 12 1 2 3 4 5 6 Distribute Sheets to Participants
Tracking Add Kaizens to Database
of Kaizen Prioritize & Schedule T/H Kaizens
Activities Request Kaizen Status Update
For This Project
Completes Status & Return
NA will Follow Up to Past Treasure Hunt
NA will Schedule Treasure Hunts at other NAMC’s.
2004 2005
* TMMNA - FAC will do a 6 – 9 Months follow up of the Treasure Hunting results through the Kaizen Database and an on site review.
NUMMI Energy Treasure Hunt Report November, 2004NUMMI Energy Treasure Hunt Report November, 2004
Results
Focus Kaizens Identified in Each Shop: : Big Savings
-TMMNA-FAC Responsibility - NAMC Responsibility
Planned ImprovementsTo Treasure Hunt Process
Area Current Situation Kaizen
Savings* MMBTU/Unit
Implement Payback
NPP Paint
RTO Heat Recovery
1
Utilizes a NG fired Hot Water generator to heat water for paint process systems.
Install a condensing economizer on the RTO exhaust stacks to recover sensible & latent heat.
$ 533,917 0.0247 MMBTU/Veh
$ 900,000 1.69 yrs
2
Anti – Chip Booths
Reduce the size of Anti – Chip Booth and turn off 1 supply & exhaust fan.
$ 180,008 .0496 MMBTU/Veh
$ 25,000 0.14 yr
Truck Paint
Anti-Chip Booth
Heat Exchanger
3
Pre-Treatment system is the only user of steam in Paint shop.
Replace Hot Water bath Steam Heat Exchanger with direct fired immersion heaters.
$ 114,613 0.0416 MMBTU/Veh
$ 170,404 1.49 yrs
Stamping
Hydraulic Vane Pumps
4
Fixed displacement pump provides constant flow and pressure.
Install variable displacement pump that only delivers flow on demand.
$ 16,955
0.0097 MMBTU/Veh
$ 8,960 0.53 yr
Plastics
Power Wash
5
Plastics using the Power Wash for cleaning bumpers before painting.
Shut down the Power Wash system. Wipe bumpers manually.
$217,527 0.0179 MMBTU/Veh $ 140,000 0.0 yr
Body Weld
Weld Water Pumps
6
(4) Weld Water Pumps left on during Non- Production Weekends.
Reduce the Number of Passenger Weld Water Pumps on Weekends.
$43,313 0.0036 MMBTU/Veh $30,000
0.69 yr
PurposePurpose
ProcedureProcedure
Participants: From NUMMI 22, Other NAMC’s NA-PE-FAC 6, TMMK 6, TMMI 1, TMMC 2, NA-PE-Paint 1, Outside 4 When: November 14th – 16th, 2004How: Divided into 5 groups - Body Weld, Passenger Paint, Truck Paint, Stamping, and Plastics.
Verified Kaizen Database status in ( 5 ) Shops: B/W, Passenger Paint, Truck Paint, Stamping, and Plastics.Investigated Energy Use during Non-Prod. (weekend), Monday Start Up, Production, and Lunch.Estimated Energy Savings, Cost Savings, and Implementation Costs.Presented results to NUMMI Management.
Treasure Hunt ResultsTreasure Hunt Results
Total Potential Savings = $ 4,067,405 / yr Total Potential Savings = $ 4,067,405 /
yr
New Technologies and Best Practices Implemented at NUMMINew Technologies and Best Practices Implemented at NUMMI
Ø 1. Elimination of Power Wash process in Plastics under study – Recommended during Treasure Hunt. Ø 2. Building Lighting tied to Production Lines.Ø 3. TMMNA Treasure Hunt group installed new 28 Watt, Hy-Bay Fluorescent Lighting in Plastics as Demo.
Future Activities
• TMMNA will update NUMMI’s Kaizen Database for T - N. Passenger Paint, Truck Paint, W – Body Weld, P - Stamping and R - Plastics. ( Complete )
• Simple Kaizens such as Motion Sensors were implemented during Treasure Hunt. • Use “Fix-It” Tags to identify problems for maintenance. ( Air Leaks, Broken Lamps, etc.) • T/H participants attend shop turnover meetings and explain results plus its benefits.
*CAPTIN
Bodine, Troy
Stamping Plastics Body Weld Truck Paint Passenger Paint TotalPotential Savings $91,585 $386,737 $376,120 $1,356,781 $1,856,183 $4,067,405
% of Yearly Cost 14.78% 6.26% 6.16% 4.85% 4.42% 16%
Kaizens Found 8 13 27 27 43 118
NUMMI November 2004 Treasure Hunt Opportunities
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Stamping Plastics Body Weld Truck Paint Passenger Paint Total0
20
40
60
80
100
120
140
# of K
aizen
s
Potential Savings Kaizens Found
MGRORIG
*TMMK
NUMMI Treasure Hunt Report 12/1/04
USE USE aall of Toyota’s Energy Experienceand Investigative Skills.
To To IDENTIFYIDENTIFY Cost Saving Energy Ideas and
To INCREASE Team MemberAwareness and Enthusiasm forEnergy Reduction.
Projected
$91,585$386,737
$376,120
$1,356,781
$1,856,183
$4,067,405
5.20
4.0
4.834.91
0.3110.30.306
3.63.8
44.24.44.64.8
55.2
FY'03 FY'04 FY'05 FY'05
MM
BTU/
Veh
00.10.20.30.40.50.60.70.8
CO2
MTo
ns/V
eh
MMBTU/Veh Mton/Veh
5.00 Target
*NUMMI
TMMI ?
1.20
MMBTU
T/H
Kaizens
< % of Each Shop’s
Annual Energy Cost
MOVING FORWARD…………..Real-time Monitoring Systems:
Diagnosing Building System Performance
Systems shutdown following VAV audit
Building purge following new furniture installationSystems shutdown
following VAV audit
MOVING FORWARD…………..THE TOOLS………………..
Selling the Value• Developed a Systematic
Approach to View all Efficiency Projects
• Holistic Look at all Aspects of a Project
• Each Project Stands on Its Own
• Comparative Decisions
on Competing Projects
Project Justification
MOVING FORWARD…………..THE TOOLS………………..Defining Financial Justification
Energy Project Evolution
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000
$ Savings
Cos
t
10 to 100% ROI Range
>100% ROI
<10% ROI
MOVING FORWARD…………..THE TOOLS………………..
High Cost/Small Savings High Cost/Big Savings
Low Cost/Small Savings Low Cost/Big Savings
10% ROI
> 10% ROI
CO
ST
ENERGY SAVINGS (Value: quantitative)
Project Approval Weighting System
MOVING FORWARD…………..THE TOOLS………………..
Measurement & Verification
Validating Performance
• Developed M&V Plan Approach
• Adopted IPMVP Standard
• Created Formal Reporting Format
• Piloted M&V Protocol
• Implemented M&V for All Capital Projects
Green Power Leadership –Case Studies
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
•Renewable Energy Certificates
Solar Photovoltaics
Renewable Energy Certificates (RECs)
•Washington, DC office•Purchase began in 2005•396,000 kWh per year
• 100% of annual electricity use•LEED Silver project•Five-year contract
• Purchase exceeds LEED requirements by three years•RECs from a wind farm in Iowa
• Located close to another Toyota facility•Vendor was 3 Phases Energy (now 3Degrees Renewables)
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
•Aggregated Purchase in June 2008• Two new LEED Certified facilities
– Ft. Lauderdale, FL– Phoenix, AZ
• Additional purchases planned for Southern California
•Amount• 200 MWh/year for each facility• Equal to 100% electricity use
•Contract Length: Two years•Resources
• Year 1: Landfill Gas– From Monterey Regional Waste Management District
• Year 2: Woody Biomass– From Loyalton, CA plant
• Green-e certified
•Vendor: 3Degrees Renewables
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Renewable Energy Certificates (RECs)
•Torrance, CA• Toyota Motor Sales, U.S.A., Headquarters
•Installed in 2003•LEED Silver building
• Largest LEED Silver project at the time
•Vendor: PowerLight (now SunPower)
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 1
•System Size• 536 kW• Spread over five roofs
•Modules• Number: 3,300• Type: Siemens SP75
•Inverters• Number: 5• Type: Xantrex PV 100-208
•Mounting System• PowerLight’s “PowerGuard”
– Flat-mount, tongue-and-groove
•Production• ~650,000 kWh/year
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 1
•Purchase Type• Direct purchase• Total capital cost = $2.9 Million
•Incentives• CA State incentive: $1.45 Million• Federal incentives (30% tax credit, MACRS)
•Annual Savings• $100,600 in electricity bills• 571,350 lbs. CO2
•Operations and Maintenance• First five years included• Currently negotiating long-term O&M contract
•Production to date• 3,221 MWh
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 1Financial Details
OutputPurchased and Produced Power
300
400
500
600
700
800
900
Aug-0
3
Nov-
03
Feb-0
4
May
-04
Aug-0
4
Nov-
04
Feb-0
5
May
-05
Aug-0
5
Nov-
05
Feb-0
6
May
-06
Aug-0
6
Nov-
06
Feb-0
7
May
-07
Aug-0
7
Nov-
07
Feb-0
8
May
-08
Month-Year
Mo
nth
ly E
lect
rici
ty P
urc
hase
(Meg
aw
att
-ho
urs
)
PV-Produced Energy
Purchased Energy
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 1
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Toyota M otor Sales Installs Largest Single Rooftop Solar System in North Am erica
Toyota M otor Corporation, the m anufacturer of the w orld ’s top-selling hybrid autom obile, continues to take a strong stance on environm ental responsibility. During the past two decades, the com pany has im plem ented num erous in itiatives a im ed at encouraging custom ers and em ployees alike to be m indful of their environm ental im pacts. In 2008, Toyota Motor Sales, U.S.A . com pleted the largest sing le-rooftop solar installation in North America, located at the com pany ’s Ontario, California parts and d istribution center. W ith th is groundbreaking clean energy system , incorporating today ’s highest-efficiency solar photovolta ic (PV) panels from SunPower, Toyota expects to reduce its carbon em issions by approximately four m illion pounds each year.
Photovoltaics – Project 2
•Ontario, CA• North American Parts Center California
•Installation Happening in 2008• Construction began April 2008• Final commissioning scheduled for early October 2008
•Vendor is SunPower•Largest Single-Roof Corporate System in North America
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2
Technical Details•System Size
• 2.3 MW• 241,400 ft2• Size of over four football fields
•Modules• Number: 10,494• Type: SunPower 215W & 217W
•Inverters• Number: 8• Type: Xantrex 250 kW
•Mounting System• SunPower T10 Mounting System
(ballasted and attached)•Production
• Over 3,400,000 kWh/year• Over 58% of facility’s electricity use
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2
•Purchase Type• Power Purchase Agreement (PPA)
– 20-year contract• Third-Party financing with GE Financial
•Incentives• Self-Generation Incentive Program (SGIP)
– $2.50/W = $2.49 Million• California Solar Initiative (CSI)
– $0.34/kWh for five years = $2.96 Million• Federal incentives (30% tax credit, MACRS)
•Annual Savings• $360,000 in electricity bills• 2,400,000 lbs. CO2
•Operations and Maintenance• Included in PPA Contract
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2Financial Details
OutputDaily Total Building Usage and PV Production
0
5,000
10,000
15,000
20,000
25,000
30,000
8/2
2/2
008
8/2
4/2
008
8/2
6/2
008
8/2
8/2
008
8/3
0/2
008
9/1
/2008
9/3
/2008
9/5
/2008
9/7
/2008
9/9
/2008
9/1
1/2
008
9/1
3/2
008
9/1
5/2
008
9/1
7/2
008
9/1
9/2
008
9/2
1/2
008
Date
En
erg
y (
kil
ow
att
-ho
urs
)
PV Production
Building Usage
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2
PV Systems Comparison (Over 40 Years)
PowerTilt mount(10% tilt)
(7.6% more output)
PowerGuard roofing tile(flat)
Mounting System
CO2 Offset
Power Production(% of Facility Use)
Modules(Efficiency)
Size
49,725 tons10,135 tons
123,540 MWh(58%)
25,180 MWh(9%)
SunPower SPR-220(16.4 watts/ft2)
PowerLight PL-SP-75(10.1 watts/ft2)
2,282 kW536 kW
Ontario, CASouth Campus
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Hedge Forecast•PPA price is at parity to utility electricity price for year one.•Toyota’s forecast used the historical rate of electricity costs increase of 0.4% per year.
$33,600
$16,100
$9,100
$0
Savings to Toyota (Year 2)
$1,958,121
$815,600
$436,500
$0
Savings to Toyota(Over 10 Years)
10%
5%
3%
0.4%
Utility Price of ElectricityEscalation Rate
MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….
Photovoltaics – Project 2
Future Efforts•Technologies Under Consideration– Solar photovoltaics– Solar thermal air heating– Solar hot water– Small wind– Large wind– Geothermal– Fuel cells– Hopefully many more….
MOVING FORWARD………THE CHALLENGES…..
Small Wind
Solar Thermal Wall
Options for Securing Energy Supplies
Fuel CellsWind
PV
PV
PV
Power Purchase AgreementsSolar ThermalFortune 500 Best Energy Practices
MOVING FORWARD……….THE CHALLENGES……………..
Sustainability - The Business Case for Going "Green"
• Operating Costs - Energy-Star buildings utility bills are 40% lower than average office building costs
• Employee Health and Productivity - translating into bottom-line savings for employees - nationally $20-160 billion/year
• Strategic value-add - impact on image, community standing and corporate citizenship - enhancing the "Brand"
• Business Imperative - recent California legislation regarding GHG emissions. Other cities and States have passed and are considering passing similar legislation.
Questions/Contact Information
•Jim Cooke, AIA•National Facilities Operations Manager•Toyota Motor Sales, U.S.A., Inc.•(615) 519-2359•[email protected]
MOVING FORWARD………