Achieving Superior Energy Performance in U.S.
Industrial Plants: Plant Certification for Energy
Efficiency
Paul Scheihing
Technology Manager
Industrial Technologies Program
U.S. Department of Energy
UNIDO Experts Group Meeting on
Industrial Energy Efficiency and Energy Management Standards
21-22 March, 2007
Vienna, Austria
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Outline
• How did the idea for “Plant Energy Certification” evolve?
• What is “Plant Energy Certification”? Who’s involved?
• What’s the resource and experience base that we’re building
upon?
• What’s the current framework and proposal?
• What’s the value to U.S. industry?
• What’s the value to U.S. government?
• Results of first “Achieving Superior Energy Performance”
meeting
• Where do we go from here?
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How did the idea for “Plant Energy Certification”
evolve?
What is “Plant Energy Certification”?
Who’s involved?
What’s the resource and experience base
that we’re building upon?
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How did the idea for “Plant Energy Certification”
evolve?
• Texas industrial companies developed the idea in 2003:
– Model successful U.S. Department of Labor (OSHA) Voluntary
Protection Program (VPP Star); plants get certification of
safety practices
– Create a tiered approach that facilitates continual improvement
in overall plant energy management and system-level practices
• Texas industrial companies wanted future “plant certification” to build
upon:
– U.S. DOE BestPractices tools and information
– U.S. DOE Save Energy Now energy assessments
– U.S. EPA ENERGY STAR for Industry resources and experience
• Challenge: Effectively integrate these key pieces
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What is “Plant Energy Certification”?
• An Industry-Government partnership addressing the
current need for a consistent, performance-based
framework that fosters continuous progress in industrial
energy efficiency.
• The proposed framework provides a mechanism to help
individual companies:
– Assign greater value to energy efficiency
improvements
– Get verification of the resulting energy savings
– Receive public recognition for achievements
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Who’s involved?
• U.S. Industry (currently only end users)
• U.S. Department of Energy’s Industrial Technologies
Program
• U.S. Environmental Protection Agency’s ENERGY STAR
for Industry Program
• U.S. Department of Commerce, Manufacturing Extension
Partnership (MEP) Program
• Texas Industries of the Future Partnership
• American National Standards Institute (ANSI)
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What’s the resource and experience base
that we’re building upon?
U.S. DOE BestPractices Products & Services
Tools
• Process Heating
• Steam Systems
• Plant Energy Profiler
• Motors & Pumps
• Fans
Information
• Website
• Information Center
• Tip Sheets
• Case studies
• Webcasts
Training
• Basic
• Advanced
• Qualified Specialist
Assessments
• Energy Savings
Assessments
• Industrial Assessment
Centers
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What’s the resource and experience base
that we’re building upon?
Save Energy Now initiative
The U.S. Department of Energy (DOE):
• Created initiative in 2006 based on more than a decade of
experience in industrial system energy efficiency
• Trains DOE energy experts to work with plant energy teams to
identify opportunities for improving steam, process heating,
pump, or compressed air systems through Energy Savings
Assessments (ESAs)
• Together with energy experts, trains plant personnel to apply
DOE software analysis tools to identify additional opportunities
• Recognizes plants with high energy savings resulting from
implementation
http://www.eere.energy.gov/industry/saveenergynow/
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What’s the resource and experience base
that we’re building upon?
Save Energy Now: Energy Savings
Assessment Status (March 15, 2007)
• 200 assessments completed
• Natural gas savings = 52 trillion
Btu/yr
– Equivalent to 725,000 U.S.
homes
– Carbon dioxide avoided = 3.3
million metric tons/year (7% of
total US greenhouse gas
emission growth, 2004 – 2005)
– Cost savings opportunity =
$475 million per year
– Savings implemented or
planned = $222 million (at 134
plants)
2 – 4 years
• Modify steam
turbine operation
• Use oxygen for
combustion
• Change process
steam use
9 mo. – 2 years
• Heat feed water with
boiler blowdown
• Lower excess oxygen
• Flue gas heat recovery
> 4 years
• Install CHP
system
< 9 months
• Improve
insulation
• Implement
steam trap
program
• Clean heat
transfer
surfaces
Estimated Payback Periods for
Recommended Actions
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What’s the resource and experience base
that we’re building upon?
U.S. EPA & ENERGY STAR for Industry
• Provides guidelines, tools, and info for strong energy management programs
– Corporate energy program assessment
– Plant energy program assessment
– Energy team development
• EPA works with focus industries to resolve barriers to improved energy
performance
• Make awards to top achieving companies
• Provides Energy Guides and facilitates forums for energy professionals
• Offers metrics & recognition as tools for management to motivate achievement
• Develops specific sector Energy Performance Indicators (EPIs): Top quartile
plants are eligible to earn the ENERGY STAR:
– Current sectors with EPI: Automobile assembly, cement, wet corn milling, and petroleum
refineries
– Under development for 2007: food processing, pharmaceuticals, glass
– Under Development for early 2008: petrochemicals
– Future: pulp & paper
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What’s the resource and experience base
that we’re building upon?
American National Standards Institute
(ANSI) and MSE 2000:2005 Energy
Management Standard
•
•
•
•
•
ANSI is the US standard-making representative to ISO
ANSI energy management standard since 2000
Developer: Georgia Institute of Technology
Uses “Plan, Do, Check, Act” model
Refine MSE 2000:2005 and integrate into “Plant Energy
Certification” standard for widespread use
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Build on Existing Resources
Present DOE, EPA & Other Industrial Energy Management Resources
DOE
Save Energy Now
Energy Assessments
DOE BestPractices
Tools & information
EPA Energy Management
Guidelines & ANSI
Energy Management
Standard
Future ANSI Plant Energy Management Certification Standards
ANSI
System Level
Energy Assessment
Protocols
ANSI
Energy Savings
Measurement &
Validation Protocol
ANSI Plant Energy
Management
Standard
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What’s the current framework and proposal?
The proposed framework for achieving superior energy
management performance would include:
• ENERGY STAR Plant
• Partner Plant
• Certified Plant
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How will this framework affect plant
energy performance?
Number of Plants
Certified Plant
Partner Plant
Plants
Worst U.S.
plant
Avg. U.S.
plant
Energy Performance
Best U.S. Best
plant
World
plant
Practical
minimum
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How will this framework affect plant
energy performance?
Certified Plant
Number of Plants
Partner Plant
Advanced
Technology
Plants
Worst U.S.
plant
Avg. U.S.
plant
Energy Performance Over Time
Best
U.S.
plant
Practical
minimum
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What is industrial plant energy
management certification?
• Framework for a consistent approach to industrial energy
efficiency that does not currently exist
• Technically sound yet flexible method for integrating energy
efficiency (and perhaps renewable energy) improvements into
existing industrial management systems (e.g., ISO, Six Sigma)
• Performance-based1, progressive recognition path for
industrial facilities of ANY age, size, or sector that adopt
energy management practices for continuous improvement
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Plants would establish an overall energy intensity baseline and achieve a
minimum energy intensity improvement goal within a certification period
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What will the Certification Program include?
Four elements are anticipated for the voluntary third-party
certification program:
1. Energy Management Standards (revision of existing ANSI
standard)
2. Standardized Assessment Protocols for industrial systems
(pumping, compressed air, steam, process heating) building on
DOE/industry best practices
3. Certified Practitioners, recognized by third party, provide
technical assistance to meet energy management standards
and/or system protocols
4. Plant certification, measurement, and validation of energy
savings by a third-party certifier using an ANSI-accredited
process
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Proposed Progression to Certification
• Demonstrates compliance with ANSI energy management standard
through accredited certifier
• For initial certification, identifies energy intensity performance
improvement opportunities.
Certified
Plant
• Achieves validated initial energy intensity performance improvement
(accommodate plants that are already using best practices)
• Reports plant energy savings and energy intensity improvement (%)
annually to third-party certifier
• Re-certifies every 3 years by documenting energy savings (and
perhaps renewable energy projects) and demonstrates a minimum level
of continuous improvement in energy intensity within the re-certification
period
• Fosters continual improvement in plant energy management
Partner
Plant
• Profiling plant energy use, conducting assessments, tracking energy
savings for projects (can use DOE Plant Profiler tool, energy savings
protocols, and/or Qualified Specialists)
• Documents and reports energy savings annually.
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What’s the value to US industry?
• Cut operating costs while increasing productivity
• Reduce emissions without negative effects on operations
• Financial community recognition of companies for reducing global
warming via superior energy management practices
• Corporate influence on program design, ensuring attainment of
energy management goals without undue time or cost burdens
• Certified plants gain preferred supplier status
Product Supply Chain
Extraction
Processing
Fabrication
Commercial
Oil, Raw
Materials
Bulk Materials
Forming &
Assembly
Retail
Consumer
Market Influence to adopt industrial standard 19
What are the benefits to U.S. Government?
• Greatly increases the number of U.S. plants and suppliers on the
path toward continuous improvement in energy management
performance
• Launches a successful, voluntary program with measurable energy
and environmental benefits
• Meets energy savings and greenhouse gas reduction targets
through voluntary efforts that help, rather than hurt, U.S. industries
• Leverages expertise of industrial end-user companies and various
supplier associations in designing standards that are credible and
cost-effective to implement
GOALS
2010: First industrial plant receives third-party certification
2017: 10,000 industrial plants certified, representing >50% of
U.S. industrial energy consumption
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Recognition and Incentives for Energy
Management Performance
Present:
2007
Future:
2010 and Beyond
EPA Energy Star Rating Label
for sectors with EPA
Energy Performance Indicator (EPI)
EPA Energy Star Rating Label
for sectors with EPA
Energy Performance Indicator (EPI)
DOE recognition of
energy savings at high-implementing
Save Energy Now plants
DOE recognition of energy intensity
improvements at
certified plants
States/utilities provide incentives
for energy savings at
certified plants
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Goal: 2017
• An ANSI energy management standard will be widely
accepted throughout U.S. industry
• 10,000 third-party certified manufacturing plants, collectively
consuming >50% of U.S. industrial energy
• Certified plants are preferred suppliers
• Tradable tags are routinely provided to certified manufacturing
plants as energy savings incentives and tradable carbon
credits
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“Achieving Superior Energy Performance” Meeting
• When/Where: March 6, 2007, Washington, DC
• Who: 30 industry, and 27 government and NGO participants
• Purpose: To present proposed framework to US industrial end
users and receive their input/feedback on three questions:
1.Given your plant(s) energy efficiency efforts, what characteristics
of the proposed framework would advance the energy efficiency
program?
2.What would be potentially problematic?
3.What incentives would make the proposed framework attractive to
your company and widespread among industry?
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Results: “Achieving Superior Energy
Performance” Meeting
• Industry expressed need for voluntary program to assist all US manufacturing
plants in improving energy efficiency;
• Streamline access of tools/information to plants to save energy in the near-term;
• Assist plants to develop energy management plans;
• There’s value certifying a facility's energy management program that produces
sustainable results and ensures the engagement of all levels of plant personnel;
• Plant certification would address measurement & verification of savings;
• Individual energy efficiency projects could have energy savings validated; could
provide tradable benefits;
• Certifying plants for energy efficiency has to "make the business case" for
participation; balance of cost versus benefit;
• Financial incentives (tax credits, loan guarantees), would increase program
attractiveness for "early adopters"
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Where Do We Go From Here?
Next Steps:
• Form Superior Energy Performance steering committee
(end users, ANSI and government)
• Decide how to engage non-end users into the standards
development process (equipment suppliers, utilities,
states, retailers, NGOs)
• Develop and launch voluntary, “Partner Plant” program to
reach thousands of plants this year.
• Develop “Certified Plant” program in next 3 years.
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Need More Information?
Go to “Superior Energy Performance” website
http://www.superiorenergyperformance.net/
Paul Scheihing
1-202-586-7234
[email protected]
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