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6 th Annual High-Performance Manufacturing Conference Cobourg, November, 2010

Improving Industrial Energy Efficiency. 6 th Annual High-Performance Manufacturing Conference Cobourg, November, 2010. Presentation Overview. Why Energy Efficiency CME/NRCan benchmarking survey Government of Canada GHG emissions policy Prices? Where to begin The CIPEC Approach

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6 th Annual High-Performance Manufacturing Conference Cobourg, November, 2010

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  1. Improving Industrial Energy Efficiency 6th Annual High-Performance Manufacturing Conference Cobourg, November, 2010

  2. Presentation Overview • Why Energy Efficiency • CME/NRCan benchmarking survey • Government of Canada GHG emissions policy • Prices? • Where to begin • The CIPEC Approach • 7 Steps to improving your energy management practices • Practical examples

  3. CME/NRCan Survey 148 plants participated in the study between October 2008 to July 2009

  4. Technical best practices Low implementation of technical best practices (TBPs) • Most plants have implemented 42 percent of TBPs • Small- and medium-sized plants have implemented almost 10 percent less TBPs than large plants

  5. Management Best Practices Low implementation of management best practices (MBPs) • Low implementation of MBP in • Primary Metal manufacturing • Other manufacturing • Fabricated Metal manufacturing • Higher implementation rates of MBPs were observed in: • Chemical • Non-metallic Mineral • Transportation and Machinery • Food and Beverage

  6. Report findings • Energy projects managed on an ad-hoc basis, while best practices not widely implemented. • Large plants have implemented, on average, close to 30 percent more MBPs than SMEs. • When a company follows management best practices, they generally will have a higher implementation rate for technical best practices.

  7. Report findings If all the remaining economically feasible best practices were implemented, total Ontario industrial energy use would decrease from 2007 levels by 29% Reference Case and Economic Potential Scenario energy use for all industry

  8. Climate Change Policy Under the Government of Canada revised Turning the Corner – a plan to reduce greenhouse gas emissions by 17% from 2005 levels by 2020. • 610 Mt – Canada’s GHG emissions target for 2020 • 240 Mt – the amount Canada plans to reduce GHG emissions by 2020 • 120 Mt – the amount of GHG emission reductions to come from the industrial sector by 2020 Additional reduction GHG Emissions for Industry Source: NRTEE Getting to 2050 Energy efficiency (EE) key to Canada achieving it’s climate change commitments!

  9. Rising Energy costs • The report, done for Canadian Manufacturers and Exporters (CME) projects electricity costs for business could jump by between 47.1 and 63.7 per cent by 2015. - CME September, 2010

  10. Industry Challenges • Difficult to obtain company financing to implement EE projects. • Too much effort to access assistance, funding and incentives. • Lack of human resources to focus on energy management. • Production is the dominant focus. • Do not know where to find reputable energy service providers. • Do not know how to identify and assess EE opportunities. • Have limited knowledge of EE opportunities/products. • Advanced EE products are not easily available.

  11. Where To Start? 7 Steps to Good Energy Management • Get Involved • Assemble an Energy Team • Train Staff • Assess Energy Use • Eliminate Waste - Maximize Efficiency • Capital Projects 7. Report and celebrate

  12. 1. CIPEC Canadian Industry Program for Energy Conservation An industry/government partnership to promote energy efficiency • cut operating costs • improve productivity • reduce GHG emissions and air pollution

  13. CIPEC Structure Executive Board Natural Resources Canada supports CIPEC at all levels Task Force Council Sector Task Forces & Sector Associations CIPEC Leader Companies

  14. CIPEC Portfolio Tools Training • CanMost • Boiler Efficiency Calculator • Energy Savings Toolbox • RETScreen International • D2$ Energy management workshops • Qualified specialists • Customized for companies and associations Incentives Information • ecoEnergy Retrofit • Industrial assessments • Pilot projects • Solar energy for heating • Tax incentives (Class 29, 43.1, 43.2) • Industrial Sector Task Forces • Technical guide books • Employee Awareness • CIPEC.gc.ca web site • Heads Up CIPEC newsletter

  15. 2. Assemble Energy Team • Choose an energy champion • Select team members • Plant engineer, maintenance staff, financial advisor • Meet regularly to develop and implement an energy management plan • NRCan employee awareness program • “Team Up for Energy Savings”

  16. 3. Energy Efficiency Training Training to Build Capacity Dollars to $ense Workshops • Spot the Energy Savings Opportunities • Energy Monitoring and Tracking • Energy Master Plan • Energy Efficiency Financing NRCan covers 50% of the cost of a customized workshops tailored to companies and sectors +

  17. 4. Assess Energy Use

  18. Waste and Efficiency 5. 1. From the point of Purchase 3. And, back to the point of Purchase (or supply) 2. To the point of End-Use 18

  19. Checklist of Opportunities HVAC Motors Fans and Pumps Fuel-Fired Equipment and Boilers Insulation Refrigeration Compressed Air Lighting Heat Recovery 19

  20. 2,500,000 2,000,000 1,500,000 Energy & non-energy savings Annual Operating Cost 1,000,000 Operating cost after energy 500,000 efficiency project 0 1 2 3 4 5 6 7 8 9 10 Years 6. Capital Projects “Do nothing” operating cost Avoided Cost from EE project 20

  21. 101 Bayswater Ave.

  22. Windows vs Furnace ROI New Furnace: $1,600 ÷ $4,500 = 37% ROI Windows: $500 ÷ $15,000 = 3.3% ROI Simple Payback New Furnace: 2 years 10 months Windows: 30 years Which is the better economic decision?

  23. 7. Report and celebrate • Pulp and paper company • 85 employees • $600,000 annual energy bill • $200,000 lighting retrofit project • $95,000 in direct incentives • $37,000 ecoENERGY Retrofit Incentive • $58,000 from utility Savings: - $100,000 per year - ROI < 13 months

  24. ecoENERGY incentive • Auto Parts Manufacturer • 70 employees • $1 million+ annual energy bill • $100,000 air compressor retrofit • $30,000 in direct incentives • $20,000 ecoENERGY Retrofit Incentive • $10,000 utility Savings: - $50,000 per year - ROI < 18 months

  25. ecoENERGY Incentive • Food & beverage plant • 80 employees • $370,000 annual energy bill • $37,000 boiler retrofit project • $9,000 ecoENERGY Retrofit Incentive Savings: - $21,000 per year - ROI < 16 months

  26. WhoWhat Creates Savings? "...those of us who call ourselves energy analysts have made a mistake...we have analyzed energy. We should have analyzed human behavior." (Cherfas quoting Schipper in Science, 1991) Source: Good Practice Guide 84 Managing and Motivating Staff to Save Energy

  27. Where to Start Become a CIPEC Leader! Go to: CIPEC.gc.ca For more information: Richard Janecky Office of Energy Efficiency Natural Resources Canada Tel: 613.992.3286 Cel.: 613.808-4002 E-mail: rjanecky@nrcan.gc.ca

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