Reducing Barriers to Industrial Energy Efficiency: The ENERGY STAR ® Food Processing Focus

1. Reducing Barriers to Industrial Energy Efficiency: The ENERGY STAR® Food Processing Focus Eric Masanet Energy Analysis Department Environmental Energy Technologies Division Lawrence Berkeley National Laboratory Manufacturer’s Council of the Central Valley Modesto, California November 17th, 2010

2. Presentation Outline • Introduction to the ENERGY STAR Program • Overview of the “Energy Guide” • Overview of the Energy Performance Indicator (EPI) • Recognizing corporate energy management performance

3. Untapped Efficiency Potential • Evidence from the U.S. Department of Energy (DOE) Industrial Assessment Center (IAC) Program: • The IAC Program provides small and medium sized manufacturers with no-cost energy assessments carried out by professors and students at 26 U.S. universities • 590 facility assessments performed in 2001: • 3,350 proven energy efficiency recommendations with known results • only 1,550 recommendations implemented (46%) • only 24% of total recommended cost savings achieved • Average simple payback of all recommendations = 0.9 years • average simple payback of implemented recommendations = 0.5 years Source: Muller, M. (2001) IAC Annual Report: Savings Generated by the Industrial Assessment Center Program: Fiscal Year 2001. http://www.iac.rutgers.edu/technicaldocs.php

4. Untapped Cost Savings Summary of IAC Recommendations for SIC 20 (1997-2006) 10-year average: only 39% of potential energy-related cost savings realized Source: Industrial Assessment Center (IAC) Database, http://www.iac.rutgers.edu/database/

5. ENERGY STAR • Voluntary government program, enables organizations to achieve their best in energy efficiency • Market-based partnership to reduce air pollution through increased energy efficiency • Over 450 partner companies in a wide range of industries • Focus on strategic energy management and identifying the best performance • emphasis on: • strong corporate energy management • use of benchmarks for improvement • use of available technology now • learning from each other - efficiency forum

6. Focus Industries • Focus industries to date • Chemicals - Food: • Iron and Steel - Breweries • Cement - Fruit and Vegetables • Pulp and Paper - Wet Corn Milling • Glass - Bakeries • Auto Assembly - Dairies • Petroleum Refining - Pharmaceuticals • SMEs - Petrochemicals

7. ENERGY STAR Partner Commitment • Continually improve energy performance • Track & benchmark energy use for all facilities • Develop a plan for improving energy performance • Educate employees and the public about energy efficiency and ENERGY STAR

8. Food Processing Focus • Create momentum and improve energy efficiency in the food processing industry • Focus on fruit and vegetable processing, dairies, and baked cookies and crackers • Resources are applicable to most food processors • Provide tools to enhance energy performance (EPI and Energy Guide) • Uncover new energy saving opportunities • Encourage sharing of non-confidential energy management ideas

9. The ENERGY STAR® Guide for Energy Efficiency Improvement and Cost Saving Opportunities for the Fruit and Vegetable Processing Industry (a.k.a. the Energy Guide)

10. The Energy Guides aim to reduce these information barriers Information Barriers Common barriers to industrial energy efficiency include: • Restrictive budget and fiscal criteria • Energy costs might represent a small fraction of production costs • Lack of cross-departmental cooperation • Short-term revenue generation often takes priority • Lack of staff and management awareness • Lack of resources (time, money, and skills) to identify and pursue energy efficiency opportunities • Lack of information on key opportunities for government and utility company policies and incentive programs Source: Russell, C. (2005). Barriers to Industrial Energy Cost Control: The Competitor Within. Chemical Processing. June 8th.

11. What is the Energy Guide? • Single report summarizing current state of knowledge on energy use and energy efficiency in the fruit and vegetable processing industry (most material is applicable to all food processors!) • Written specifically for plant and energy managers • Reviewed by industry professionals and • experts • Energy Guides: • reduce information barriers • identify energy efficiency opportunities • quantify potential energy and cost savings • serve as a checklist for energy managers • highlight industry success stories • … save energy, money and the environment…

12. Overview of industry and processing characteristics Detailed information on energy and water efficiency improvement opportunities References to further information Additional resources Energy Guide Contents • 1) Introduction • 2) The U.S. Fruit and Vegetable Processing Industry • 3) Overview of Fruit and Vegetable Processing Methods • 4) Energy Use in Fruit and Vegetable Processing • 5) Energy Efficiency Opportunities • 6) Energy Management Programs and Systems • 7) Steam Systems • 8) Motor Systems and Pump Systems • 9) Refrigeration Systems • 10) Compressed Air Systems • Building Energy Efficiency Measures • Self Generation • 13) Process-Specific Energy Efficiency Measures • 14) Emerging Energy-Efficient Technologies • 15) Basic Water Efficiency Measures • 16) Summary • References • Appendix A: Major Industry Products • Appendix B: Basic Energy Efficiency Actions for Personnel • Appendix C: Guidelines for Energy Management Assessment Matrix • Appendix D: Teaming Up to Save Energy Checklist • Appendix E: Support Programs

13. Industry Overview • Sectors included: • Frozen fruit, juice, and vegetables (NAICS 311411) • Fruit and vegetable canning (NAICS 311421) • Specialty canning (NAICS 311422) • Dried and dehydrated foods (NAICS 311423) • Provides a concise overview of industry characteristics • Major industry segments • Key products manufactured • Economic and production trends • Useful for understanding U.S. fruit and vegetable industry characteristics and key trends for those both inside and outside the industry Value of shipments by industry segment, 1997-2004

14. Process and Energy Use Descriptions • Process description reviews major processing steps and technologies employed in fruit and vegetable processing • Energy use description reviews industry energy use characteristics and trends • Industry-level energy use by fuel • Segment-level energy use by fuel • Process-level energy use by fuel • Defines scope for energy efficiency recommendations • Provides a concise overview of key energy issues that is useful for: • Understanding energy issues facing the U.S. food industry • Educating non-experts on energy use • Communicating needs for energy efficiency improvements Historical energy expenditures by the U.S. fruit and vegetable processing industry

15. Energy Costs in Fruit and Vegetable Processing • In 2002, the industry spent ~$810 million on purchased fuels and electricity (roughly 5% of cost of materials) • $440 million on purchased fuels (mostly natural gas) • $370 million on purchased electricity Electricity Purchased Fuels

16. 2002 Energy Use in Canning Machine Drive 4.3 TBtu (50%) Fuel Input End Use Process Cooling and Refrigeration 2.1 TBtu (25%) Electricity 8.5 TBtu Direct Use 8.5 TBtu (100%) Facility HVAC 1.1 TBtu (11%) Indirect Use 29.3 TBtu (80%) Natural gas 36 TBtu Facility Lighting 1.1 TBtu (11%) Boiler Fuel 29.3 TBtu (80%) Conventional Electricity Generation 3.3 TBtu (10%) Process Heating 1.7 TBtu (5%) Direct Use 6.7 TBtu (20%) Facility HVAC 1.7 TBtu (5%)

17. 2002 Energy Use in Freezing Process Cooling and Refrigeration 5 TBtu (50%) Fuel Input End Use Electricity 9.9 TBtu Direct Use 9.9 TBtu (100%) Machine Drive 4 TBtu (40%) Facility HVAC 0.5 TBtu (5%) Facility Lighting 0.5 TBtu (5%) Natural gas 21 TBtu Indirect Use 16.3 TBtu (78%) Boiler Fuel 16.3 TBtu (78%) Process Heating 3.9 TBtu (18%) Direct Use 4.7 TBtu (22%) Facility HVAC 0.8 TBtu (4%)

18. Detailed information on energy and water efficiency improvement opportunities Focus on Major Opportunities • 1) Introduction • 2) The U.S. Fruit and Vegetable Processing Industry • 3) Overview of Fruit and Vegetable Processing Methods • 4) Energy Use in Fruit and Vegetable Processing • 5) Energy Efficiency Opportunities • 6) Energy Management Programs and Systems • 7) Steam Systems • 8) Motor Systems and Pump Systems • 9) Refrigeration Systems • 10) Compressed Air Systems • Building Energy Efficiency Measures • Self Generation • 13) Process-Specific Energy Efficiency Measures • 14) Emerging Energy-Efficient Technologies • 15) Basic Water Efficiency Measures • 16) Summary • References • Appendix A: Major Industry Products • Appendix B: Basic Energy Efficiency Actions for Personnel • Appendix C: Guidelines for Energy Management Assessment Matrix • Appendix D: Teaming Up to Save Energy Checklist • Appendix E: Support Programs

19. Energy Efficiency Improvement Opportunities • Over 150 measures for energy efficiency improvements are discussed • Energy management systems and programs • Cross-cutting technologies and practices • Process-specific technologies and practices • Emerging technologies • Anatomy of a typical energy efficiency measure description: • Brief overview of technology or practice • Limitations on applicability (if any) • Typical energy savings • Typical simple payback period • Case study data from real-world industrial applications • References to further information in the public domain • Goal is to provide concise assessment of the opportunity to facilitate awareness and to help launch more detailed analyses

20. Water Efficiency Improvement Opportunities • Over 30 proven measures for water efficiency in food processing plants are discussed: • Strategic water management programs • Good housekeeping practices • Cleaning and sanitation • Cooling towers • Water recovery and recycling

21. How are Measure Descriptions Used? • As a means of quickly identifying major energy and water efficiency opportunities that might be applicable to specific plants • As a checklist of potential energy and water efficiency opportunities to be evaluated and/or implemented • Corporate-wide or at individual plants • For systems of specific interest • As a starting point for more detailed analysis of selected measures • For support in “making the case” for energy and water efficiency measures within an organization • Energy, water, and cost savings potential • Industry success stories

27. Reference List • The Energy Guide is based on a comprehensive review of journal articles, online resources, conference proceedings, government reports, and industry reports • Provides readers with sources of further information for more detailed analyses • Can serve as a bibliography of key sources of information on the glass manufacturing industry • Industry structure and characteristics • Processes • Energy and water use • Energy and water efficiency measures • Emerging technologies • Most referenced sources are available in the public domain

28. Additional Resources • Appendix B: Checklist of energy efficiency actions for plant personnel • Provides overview of basic actions that can be institutionalized • Can serve as training checklist • Appendix C: Guidelines for the ENERGY STAR Energy Management Program Assessment Matrix • Designed to help organizations compare their energy management practices to those outlined in the ENERGY STAR Guidelines for Energy Management • Appendix D: Teaming Up to Save Energy Checklist • Appendix E: Support programs for industrial energy efficiency improvement • Tools for self-assessment • Assessment and technical assistance • Training • Financial assistance (federal and state) for energy efficiency improvement projects

29. Available for download http://www.energystar.gov/industry (U.S. EPA website) http://ies.lbl.gov/energystar (LBNL website)

30. Energy Performance Indicator (EPI)

31. EPI is a Statistical Model of Plant Energy Use • Since “not all plants are the same” a statistical model is used to make a common comparison • Statistical models • Relate energy use to production activities • Primary business of a manufacturing plant • Incorporate the specific type or mixture of products • Other factors that correlate with energy use, e.g. labor hours • Plant level data from the Census Research Data Center is key to statistically “identifying” best-performing plants

32. EPI Data Inputs • Energy, production and labor data from over 900 plants is from the Census of Manufacturing (CM) and Manufacturing Energy Consumption Survey (MECS) • MECS data is used to impute energy use from energy costs reported to the CM • Product categories are created from the detailed product Census of Manufacturing reports with units converted to lbs (or gals as appropriate) from cases, etc.

33. Food Processing EPIs • Active EPIs: • Wet corn milling • Frozen fried potato processing plants • Juice processing plants • Container glass manufacturing plants (supply chain) • EPIs under development: • Canned tomato products • Frozen fruits and vegetables • Cookies and crackers • We need testers!

34. Input details Juice EPI Inputs Tomato Processing EPI Inputs

35. Input Section

36. Output section

37. Progress in Energy Performance – Cement Plants, 1997 - 2008 Mean =5.1 Mean =6.1 75th percentile =4.5 75th percentile =5.1 Preliminary analysis, EPA, Duke University

38. Participation • EPI testing and feedback: • Contact Gale Boyd directly with questions and comments • Plant level (proprietary) data can be covered under available non-disclosure agreement with Duke.

39. Recognizing Corporate Energy Performance

40. Why is recognition important? • Affirms publicly that the company and program are doing a good job • Proves reputation as an industry leader • Enables company to distinguish itself • Encourages continuous improvement • Enables Corporate Energy Director to continue and strengthen commitment to energy management

41. ENERGY STAR Recognition Recognizes world-class corporate energy management programs. Recognizes world-class corporate energy management programs. Recognizes plants that qualify in the top quartile of the ENERGY STAR energy performance scale Recognizes sites that reduce their energy intensity by 10% within 5 years

42. ENERGY STAR Partner of the Year • Corporation self-nominates; completes detailed application • Selection is based upon results from multiple review committees • look for excellence in energy management and energy savings within the year of application • Awarded for a particular year • Limited number of annual awards • ENERGY STAR Partners only

43. Sampling of EPA/ENERGY STAR recognition

44. Plant & building labels • ENERGY STAR label • Numbers prove energy performance/efficiency • Based on successful performance as demonstrated by numerical benchmarking • Plaque plus banner or flag (“Meets US EPA Guidelines for Superior Energy Efficiency 2006”) • Plant label for industries of: auto assembly, cement, corn refining • Available to partners and non-partners

45. Awarding the ENERGY STAR to plants • Requirements • Rating of 75 or higher benchmark score based on 12 months of data; must use current EPI • Confirmation of performance by certified professional engineer • Environmental record review for plant • Review of EPA Compliance Database (www.epa.gov/echo) • No Clean Air Act high priority violations in past 3 years • No significant violations regarding on-site generation • No criminal convictions, pleas or current actions on air quality or generation • Disclosure of citizen suits regarding air emissions • Letter of application to EPA, on file with EPA; includes: • EPI printout (unless CBI) • Statement of Energy Performance • Compliance review sheet • Third-party review of EPI printout an option (reviewer is designated by EPA) • Safe lighting levels based on IESNA guidelines • Corporate energy manager must apply for a plant • Partner or non-partner can achieve this • EPA makes decision on award of ENERGY STAR

46. ENERGY STAR Challenge The ENERGY STAR Challenge: • EPA launched the ENERGY STAR Challenge in 2006. • Many companies have since achieved a 10% reduction and are seeking recognition. • EPA formalized the ENERGY STAR Challenge in 2010 so that industrial sites can gain recognition for their achievements! If the energy efficiency of U.S. Buildings improved by 10 percent, Americans would save about $20 billion and reduce greenhouse gases equal to the emissions from about 30 million vehicles

47. What does it recognize? • An improvement in annual energy intensity: • 10% improvement in energy intensity within 5 years. • Calculated against an internal baseline at an industrial site. • Baseline can be set retrospectively 3 years – if an ENERGY STAR partner during that time.

48. Who can participate? • Any industrial site can take the Challenge. • No offices or warehouses. • To get recognition, the site’s company must be an ENERGY STAR partner. • Sites take the Challenge and their company signs up to become ENERGY STAR partners.

49. How It Works Sites participate by: • Selecting an energy intensity metric. • Establishing a baseline. • Creating an Energy Tracking Planif site does not have existing data management procedures. • Setting a 10% improvement in 5 years goal. • Signing-up for the Challenge for Industry • Verify savings if goal is achieved.

50. Recognition • Framed Certificate • Communications materials • Profiled on energystar.gov • Letter to CEO from EPA