U.S. Industrial Technologies Programs & Superior Energy Performance, James Quinn
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Presentation from James Quinn, the head of North American Programs for the Institute for Industrial Productivity (IIP) from the Sharing Energy Efficiency Policy Experience for Key Energy-Consuming Enterprises Workshop in Beijing, China February 20, 2012. Summary of the workshop: To facilitate best practice sharing for the implementation of the Top 10,000 Enterprise Program, the Institute for Industrial Productivity co-organized a workshop in collaboration with the China Energy Conservation Association, the China Sustainable Energy Program (Energy Foundation) and the Energy Research Institute (ERI). The workshop convened Chinese policy-makers and international experts. International experts presented different policy approaches that have been (or are currently being) implemented in Australia and in the US, and discussed with Chinese policymakers and think tanks what and how these approaches might be helpful for China. While the design of the Top-10,000 program has been outlined, details for its implementation will be the subject of much discussion in the coming months. Key questions include: what type of technical support for enterprises is the most appropriate? How can the government play an effective role in monitoring and verifying the results? Is there a role for market-based mechanisms? More information: http://www.iipnetwork.org/our-recent-activities#workshopbj
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U.S. Industrial Technologies Programs & Superior Energy Performance, James Quinn
- 1. Main Presenta+on Title U.S. Industrial Technologies Programs 20.12.10 & Superior Energy Performance
- 2. Projected Global Industrial Energy Use Global industrial energy use is projected to increase 1.4% per year through 2030. % Growth 2006-‐2030 250 Global industrial sector energy use, China! 89% 2006-‐2030 200 India! 75% Delivered Energy Use (Quads)! Brazil! 67% 150 Rest of World! 38% 100 Russia! 24% 50 United States! 4% 0 OECD Europe! 2% 2006 2010 2020 2030 Notes: Projected data based on a business-‐as-‐usual reference case scenario. Quads refers to quadrillion Btu (Bri+sh thermal units). Source: U.S. Department of Energy, Energy Informa+on Administra+on, Interna'onal Energy Outlook 2009.
- 3. U.S. Industry Energy Use U.S. industry accounts for about one-‐third of all U.S. energy consumpHon. Reducing U.S. industrial energy intensity is essenHal to achieving naHonal energy and carbon goals. Transportation 28.1% 35.8% Petroleum Industry Commercial 34.0% Natural Gas 18.7% 31.4% 14.0%* Electricity* Residential 7.7% Coal and Coke 8.6% Renewable Energy 21.8% * Excludes losses Source: Annual Energy Review 2008, EIA.
- 4. United States (Federal): simplified Mandatory standards on equipment Voluntary programs, including the Superior Energy Performance Program Measures developed at the State and Federal level ImplementaHon toolbox
- 5. Policy: Support Research and Development on Energy Efficiency Technology in Industry Program led by the Department of Energy’s Advanced Manufacturing Office Energy efficiency can yield cost, producHvity, energy supply resiliency, and compeHHveness benefits to industry. Develop Next-‐GeneraHon Manufacturing Processes & Materials • Manufacturing processes that limit energy intensity • Materials technologies that lower life-cycle energy consumption and provide low-cost, 28 MW, roll-‐to-‐roll manufacturing line for high performance. triple-‐junc+on amorphous silicon modules Foster the Energy Management Services Industry Identify, deploy, certify, and reward effective energy management • Develop tools and protocols to enable industry to measure and manage energy usage • Promote education and hands-on training for a new generation of energy management engineers.
- 6. Voluntary Program – Be^er Buildings, Be^er Plants Challenge BeYer Buildings, BeYer Plants Challenge Part of President Obama’s Be^er Buildings Ini+a+ve, with the goal of making buildings 20% more efficient by 2020 and saving $40 billion for U.S. organiza+ons. Key program elements • Companies agree to 10-‐year, 25% energy intensity improvement target • Companies establish baseline year and any progress made toward the target to-‐ date • Companies report annually on their progress • DOE provides tools, training and assistance as needed • DOE provides na+onal recogni+on for their achievements
- 7. Voluntary Program -‐ENERGY STAR for Industry A voluntary program administered by the U.S. Environmental ProtecHon Agency (EPA) that helps organizaHons improve their environmental and energy performance: Current Industrial Focuses: • Develop Energy Performance Indictors to • Cement score plant performance • Concrete • Establish Best in Class recogniHon for • Commercial Baking plant performance • Corn Refining • Create Energy Guides that iden+fy best • Dairy Processing prac+ces and projects • Food Processing • Promote successful management • Glass strategies between companies • Metal Finishing • Motor Vehicle Produc+on • Petrochemicals • Petroleum Refining • Pharmaceu+cals • Prin+ng www.energystar.gov/industry • Steel
- 8. Voluntary Program: Superior Energy Performance A market-‐based, ANSI/ANAB-‐accredited cerHficaHon program that provides industrial and commercial faciliHes with a roadmap for conHnual improvement in energy efficiency while boosHng compeHHveness. • Develops a transparent system to validate energy performance improvements and management practices • Encourages broad participation throughout industry • Supports and builds the energy efficiency market and workforce Superior Energy Performance for industry will be launched http://www.superiorenergyperformance.net na+onwide in 2012.
- 9. ISO 50001: Founda+onal Tool ISO 50001 Energy Management Standard • Establishes a framework for industrial and commercial facili+es and organiza+ons to Status of ISO 50001 manage energy. • Published June 15, 2011 • Offers companies an interna+onal • Available for purchase from ISO approach for • Developed by ISO Project – Corporate sustainability programs Commi^ee 242; United States, Brazil, China and United – Energy cost reduc+on ini+a+ves Kingdom co-‐led – Responding to manufacturing supply chain • 59 countries par+cipated, 14 of demands for energy efficiency improvement which observed • Transitioned to TC 242 to h^p://www1.eere.energy.gov/energymanagement/index.html develop related standards and manage implementation
- 10. Geong Superior Energy Performance Cer+fied CerHficaHon Requirements: An ANSI/ANAB-‐accredited Verifica+on Body will conduct a third-‐ party audit to verify that the following requirements are met: 1. Energy Management System Conformance to ISO 50001 Energy Management Standard 2. Energy Performance Improvement Superior Energy Performance ISO 50001 is a Single facility ISO 50001 conformance foundaHonal tool that with validated energy performance any organizaHon can ISO 50001 improvement Components in place: use to manage • Baseline energy. ISO 50001 • Policy • Plan • Team/Leader 10
- 11. SEP Performance Criteria for Certification Levels (Draft)! Performance Characteristics Silver Gold Platinum Meets 5% energy Energy Meets 10% energy Meets 15% energy Energy performance performance performance Performance Performance improvement improvement threshold improvement threshold Pathway Improvement threshold over the last over the last 3 years. over the last 3 years. 3 years. Demonstrates an Demonstrates an energy Demonstrates an Energy energy performance performance energy performance Performance improvement of 15% improvement of 15% or improvement of 15% Improvement or more over the last more over the last 10 or more over the last 10 years. years. 10 years. Score on • Meets a score of at • Meets a score of at • Meets a score of at Best least 35 and up to least 61 and up to 80 least 81 out of 100 Mature Practice 60 out of 100 total out of 100 total points total points for Best Energy Scorecard points for Best for Best Practice Practice Scorecard Pathway Practice Scorecard Scorecard Includes credits for energy • Minimum of 25 management best practices and • Minimum of 25 • Minimum of 25 points points required for energy points required for required for the energy the energy performance the energy management best management best improvements beyond 15% over management best practices and 10 for practices and 10 for the last 10 years. practices. energy performance. energy performance. 11
- 12. Superior Energy Performance Benefits to Companies • RecogniHon ‒ Publicly recognized as leader in sustainable use of energy resources (local and financial community) ‒ Customers may grant preferred supplier status • External financial incenHves ‒ Energy efficiency credits (electric u+lity & others) ‒ Poten+al carbon credits (state, region, and na+onal) • SystemaHc framework for conHnuous improvement Industry and Construction stock CD 01030FRL ‒ Consistent with ISO 50001 energy management and ASME system assessment standards ‒ Provides tools and resources to assist implementa+on and valida+on of sustained energy performance improvement Creatas Power & Energy CD 005776
- 13. Superior Energy Performance Demonstra+ons SEP DemonstraHons involve: – Tes+ng ANSI-‐accredited Superior Energy Performance program – Using newly-‐released ISO 50001 energy management standard – Third party verifica+on on energy performance improvement using measurement & verifica+on protocol – 35 companies in 20 states Industrial ParHcipants: • 3M Company • Cook Composites & • Harbec Plas+cs • OLAM Spices • Alcoa Polymers • Haynes Interna+onal • Owens Corning • Allsteel • Cooper Tire • Holcim • Republic Conduit • Amcor PET • Cummins • Ingersoll Rand • Schneider Electric • Ascend Performance • Didion Milling, Inc • JR Simplot • Spirax Sarco Materials • Dixie Chemical • Kenworth Trucks • Traco • Bentley Prince Street • Dow Chemical • Lockheed Mar+n • UTC/Sikorsky • Bridgestone Tire • Eaton • MedImmune • United States Mint • Coca-‐Cola • Freescale • Neenah Foundry • Volvo Semiconductor Company • World Kitchen • General Dynamics • Nissan www.superiorenergyperformance.net
- 14. Suppor+ng Measure: Workforce Development Industrial Assessment Centers (IACs) • IACs provide prac+cal in-‐plant training to engineering students at 24 universi+es. Students work directly with small and medium-‐sized manufacturers to iden+fy and implement energy savings opportuni+es. • As part of their training, IAC students have par+cipated in more than 15,000 assessments and provided nearly 114,000 recommenda+ons for small and medium-‐sized plants. • IACs have trained more than 3,000 students to become the next genera+on of energy engineers. • Nearly 60% of IAC graduates go on to careers in the energy industry. hYp://www1.eere.energy.gov/manufacturing/tech_deployment/iacs.html
- 15. Implementa+on Toolbox: Energy Management & Technology Deployment Resources in DOE Resources to help manufacturers reduce energy use and carbon emissions today — and con)nuously improve. Technical Assistance Soeware Tools Training • Tracking and managing energy • Energy and carbon • Awareness intensity baselining • Tool User • Project feasibility analysis • Sorware tools for energy • System /Topic management • Resource referrals • Qualified Specialists • Energy Management Assessments Standards InformaHon • Energy savings • Superior Energy Performance • Tip sheets, case studies assessments (SEP) • Website, webcasts, • Industrial Assessment • ISO 50001 databases Centers • Assessment • EERE Informa+on Center • States/u+li+es standards, • Supply chain guidance protocols, and metrics
- 16. Implementa+on Toolbox-‐ Sorware Energy Performance Energy Management Energy Systems Analysis Tracking Baselining EnPI Tool eGuide for ISO 50001 • Motors ImplementaHon Corporate Energy • Pumps Performance Tracking • Fans for Be^er Plants partnership • Compressed Air eGuide Lite • Steam Facility Energy • Process HeaHng Performance Tracking for Superior Energy • Data Centers ePEP (Plant Energy Performance Profiler) • Simple Calculators h^p://www1.eere.energy.gov/manufacturing/tech_deployment/sorware.html
- 17. Implementa+on Toolbox – DOE’s Save Energy Now Assessments Train Plant Staff Gather Conduct Analyze & Preliminary Plant Report Follow-‐up Data Visit Results Successful Project ImplementaHon • Teams are DOE Energy Experts and plant personnel • Teams focus on fans, pumps compressors, steam or process hea+ng systems. • Plant personnel trained on DOE sorware tools 17 Section I: US DOE’s ITP Activities for US Industry
- 18. Implementa+on Toolbox: Online Assessment Database for Small & Medium Enterprises Industrial Assessment IAC Results Databases Center Knowledge Base Website Energy Manuals Best Prac+ces & Success Stories Sorware Tools & Templates Training Modules & Curricula
- 19. Implementa+on Results DOE Energy Assessment Results From 2006 to 2011, energy assessments were conducted at over 1,000 large plants and 2,300 small-‐ and medium-‐sized facili+es IdenHfied savings: Cost -‐ $1.6 billion in annual savings Energy -‐ 220 trillion btus CO2 -‐ 11 million metric tons Implemented savings to date: Cost – $ 310 million in annual savings Energy -‐ 45 trillion btus Carbon – 3 million metric tons
- 20. Global Superior Energy Performance (GSEP) GSEP was announced in July 2010 at the Clean Energy Ministerial, which convened 25 energy ministers from 20 countries and the European Commission. • GSEP aims to reduce global energy use in industrial facili+es and commercial buildings in order to improve energy security and to reduce global greenhouse gas emissions by: – Encouraging industrial facili+es and commercial buildings to pursue con+nuous improvements in energy efficiency – Promo+ng public-‐private partnerships for coopera+on on specific technologies or in individual energy-‐intensive sectors GSEP Partnership ENERGY MGMT CHP COOL ROOFS WORKING WORKING WORKING GROUP GROUP GROUP (Lead: U.S.) (Lead: Finland) (Lead: U.S.) POWER STEEL CEMENT WORKING WORKING WORKING GROUP GROUP GROUP (Lead: Japan) (Lead: Japan) (Lead: Japan)
- 21. Thank You! James Quinn Head – North America Programs Institute for Industrial Productivity www.iipnetwork.org james.quinn@iipnetwork.org