The Energy Efficiency Benchmarking System and BAT

1. The Energy Efficiency Benchmarking System and BAT Hubert Van den Bergh

2. A system which is running in the Netherlands and in Flanders (I) • because of the tight Kyoto burden sharing in Flanders large installations started up between the Kyoto reference year 1990 and the Kyoto protocol year 1997. • the policy not to obstruct growth of companies companies with a good prospect for future are those who grow.

3. A system which is running in the Netherlands and in Flanders (II) • government did not want to impose absolute caps on energy consumption or greenhouse gas emissions… • … but expects optimised energy efficiency of production installations, in a quantified way • standards must be set; the benchmarking system is the way to these BAT-standards

4. General outline of Benchmarking • the company makes a split up of its facilities into benchmarkable installations • for every installation a study is performed to compare energy efficiency with similar installations in the world • for energy intensive installations it is assumed that the best installations are BAT • the BAT-standard allows a certain margin • the covenant requires to attain the standard

5. Benchmarking methods The benchmarking methods, in order of application priority are: • Full benchmarking of all installations in the world; the decile point gives the standard (Decile method) • may require a lot of data • co-operation of all important world actors is necessary • result is very acceptable, irrespective of the consumption span • irregularities are rare

6. Benchmark by decile method Specific energy consumption 17,2 number of companies

7. Benchmarking methods • Benchmarking in the best region in the world; the average consumption of the installations in the best region gives the standard (Region method) • first a best region must be defined • that region must be acceptable as BAT-standard for the world • definition problems about number of regions and number of companies in the region • difficult method • method may be desirable to limit the number of installations of the full benchmark

8. Benchmark by region method Specific energy consumption number of companies

9. Benchmarking methods • Best Practice: the world best installation has to be found and to be assessed; standard = world best + 10% • good feasibility in terms of investigation work • proof of “world best” is not evident, but more feasible than for the region method • 10% may be too tolerant as margin

10. Benchmarking methods • Auditing: if other methods fail, the installation must be thoroughly audited – standard = own installation after execution of all economically efficient measures (I.R.R. > 15%) • this method gives little handhold • results are often disputed

11. Flemish Government Federations Commission Benchmarking Consultants Companies Verification Office

12. Study type based on energy consumption

13. Study type based on number of processes

14. State of the art of the Covenant In Flanders: • Covenant approved by government on 29.11.2002 for companies > 0,5 PJ, later also companies which must participate in system of emission rights (T.E.R.) • 176 companies participate in the Covenant • commitment to achieve BAT, to be specified in an energy plan • energy plans submitted 30.06.2004, by all T.E.R.-companies • all energy plans to be verified by 15.09.2004

15. results of the energy plans in evaluation, to be released by the end of the year • T.E.R. allocation based on energy plans • monitoring every year, by 1st April • cycle to be repeated every 4 years In the Netherlands: • covenant signed 06.07.1999 • second cycle starting now

16. Is Benchmarking an easy way to find BAT-standards? Unfortunately not… every installation has its own difficulties!

17. Benchmarking/BAT practical situations 1) Boundary Limits endothermic plant or condensing power plant exothermic plant The choice of limits may lead to a very different result and ranking.

18. Benchmarking/BAT practical situations 2) Raw materials and fuels raw product material processing plant energy secondary energy waste input by-product Which flows to be accounted for? Which subtractions in the covenant?

19. Benchmarking/BAT practical situations 3) Combined Heat and Power processing plants heat fuel electricity CHP electricity grid How much fuel to be allocated to the processing plants?

20. Benchmarking/BAT practical situations 4) Irregular Benchmarking curves 40% 10 Can one accept such a decile point?

21. Benchmarking/BAT practical situations 5) Waste fuels should not be accounted for energy consumption : waste (?) own installations BP- standard What is to be considered as unbenchmarkable waste?

22. Benchmarking / BAT practical situations 6) Existing benchmarks feed preheat if applicable energy recovery does not effect benchmark? energy process existing benchmark product cooling How to deal with existing benchmarks if they do not really fit the covenant expectations?

23. WANTED: INTERNATIONALISATION • for cost reduction of new benchmarks • for better participation of competitors • for quality improvement: level playing field INDISPENSIBLE • as soon as the burdens become more tight