Services for Business Programme - Site Visit Report Services for Business Programme Site Visit Report for Millipore Ireland B.V. Carrigtwohill, Co.Cork Prepared by Liam Tolton 8th.Feb 2008 SEI Client ID: 0354 81925177 1 Services for Business Programme - Site Visit Report Executive Summary The Millipore site is a modern, well maintained manufacturing plant. The site management are committed to energy reduction as part of a structured approach to ensure production costs on site remain in tight control and to comply with the site IPPC license requirement relating to energy management. I have completed a half day site visit and reviewed the current energy management systems on the site. The most significant actions required by the Management team to achieve their targets relate to the setting up of a formal Energy Management System on site. This will require a cross functional team to be set up to implement a system based on the SEI Energy MAP. Further details are available on www.sei.ie A significant number of potential opportunities have been identified. It was not possible to quantify all of these within the scope of a half day visit therefore, these will need to be formally evaluated to determine the investment costs and the potential savings and to ensure they are correctly prioritised. The Facilities Supervisor is well disposed towards Energy Management and would be the ideal leader for an Energy Management Team. The site has recently developed a formal energy monitoring and reporting system. This is an important step in the process of implementing an Energy Management System. Electricity, CHP and boiler fuel meters should be read weekly and the energy consumption related to production output through an Energy Performance Indicator. This formal reporting system will start to raise questions among the operations personnel about what drives energy consumption on the site. The Energy Team should meet initially on a weekly basis and then as actions start to happen, the frequency could be reduced to fortnightly and eventually to monthly when the system is fully operational. It will be important to start an awareness initiative among the staff to support the team in its work. An opportunity may exist to join an SEI Energy MAP training programme in the near future. Implementation of a formal energy management system based on the Energy MAP is the first step to a long term sustainable change to structured energy management which may ultimately lead to the IS 393 Energy Management Systems implementation. I recommend that Millipore consider entering into an Energy Agreement with SEI with a view to full implementation of IS 393 in 2009. The main barriers to implementing a sustainable energy management system on site revolve around lack of general awareness among staff and specific competence in identification of energy saving opportunities. These barriers, allied to the high level of activity of the site personnel due to increased capacity addition results in time to implement these types of initiatives being at a premium. The establishment of a team to work on this will spread the workload and increase the chances of success. 81925177 2 Services for Business Programme - Site Visit Report The current contract for energy supply should be reviewed with the supplier. It appears that Millipore is suffering significant penalties due to the structure of this contract. The site has recently renegotiated the price element of the contract for 2008 with significant savings accruing. However, the structure of the contract could still result in energy savings being gained with no financial return to Millipore due to the take/ pay aspects of the contract. I recommend that the moulding operations be separately assessed and benchmarked in accordance with the Low Energy Plastics Process European Best Practice Gide from the euRECIPE website www.eurecipe.com . This guide and website provides on line benchmarking of energy in plastics manufacturing to help Millipore determine if its operations in this area are optimised from an energy perspective. A copy of this guide will be sent to Millipore with this report. I am confident that a ca. 3 % saving can be achieved relatively easily in line with our experience on other sites. A further 3 to 5 % should be possible if a structured Energy Management System is fully implemented. 81925177 3 Services for Business Programme - Site Visit Report Table of Contents 1 Introduction 1.1 Site Visit 1.2 Description of Site 1.3 Client’s Objectives 2 Energy Management 3 Energy Consumption 3.1 Annual Consumption 3.2 Main Energy Consumers 3.3 Energy Performance Indicators (EPIs) 4 Opportunities for Energy Savings 4.1 Recent/Existing Energy Saving Initiatives 4.2 Suggested Opportunities for Energy Savings 5 Additional Information 6 Next Steps Appendix A – Site Tour Checklist Appendix B – Energy Management Diagnostic Questionnaire 1 1.1 Introduction Site Visit Organisation Name: 81925177 Millipore Ireland B.V. 4 Services for Business Programme - Site Visit Report Site Name & Address: Carrigtwohill, Co. Cork SEI Client ID: 0354 Date of Visit: 11th December 2007 Duration of Visit (h): 4 hours SEI Energy Advisor: L.Tolton Visit Hosted By: Ms. Breeda Comyns, EHS Manager Liam Tolton undertook a site visit of the Millipore Ireland site at Carrigtwohill under SEI’s Services for Business Programme. The site is a modern filter membrane manufacturing facility which is currently undergoing significant expansion. The site is also manufactures moulded plastic parts for Millipore products. This report has been prepared with all reasonable skill, care and diligence and summarises the findings from the half-day site visit. All values quoted in this Report are based on information provided by the Client. All values quoted for energy savings are estimates and may require additional detailed investigation to confirm their validity. Description of Site 1.2 The site is a modern manufacturing plant comprising a filter membrane manufacturing facility and a plastic injection moulding operation. The site is located on ca. 38 acres and comprises: Manufacturing Areas Assembly Areas Laboratories Warehousing Administration Utilities Operations outside the above buildings include: 81925177 Solvent storage tank farms Solvent Recovery Systems Environmental Control Systems 5 Services for Business Programme - Site Visit Report Waste Water Treatment Systems Combined Heat and Power Plant Electricity substation Hazardous waste storage area Gas cylinder storage areas Thermal Oxidisers External Waste Solvent Drum Store The facility is currently undergoing significant expansion of its membrane production processes, tank farm and thermal oxidiser capacity. The site is supplied with electricity, steam and hot water from a 1 MWe gas fired engine based Combined Heat and Power system. This unit is owned by BG Cogen and supplies part of the energy supply to the site, the remainder being supplied under contract by the same supplier from the electricity and gas grids. The contract for the energy supply commenced ca. 8 years ago and is due for review in ca. 2 years time. Client’s Objectives 1.3 The objectives of Millipore in the area of energy management are: 81925177 Reduce the impact of rising energy costs on the cost of production Optimise the energy consumed on site Reduce the Carbon footprint of the site operations Comply with the Energy aspects of the site Integrated Pollution Prevention and Control (IPPC) license 6 Services for Business Programme - Site Visit Report Energy Management 2 Energy management is an all-encompassing process that should include every aspect of an organisation from finance, human resources and public relations to maintenance, purchasing and planning. An Energy Management Diagnostic Questionnaire was completed for the site; the completed questionnaire is included in Appendix A. The Diagnostic was completed with the EHS manager and the Facilities Supervisor. Millipore scored 52% overall on this diagnostic. Figure 1 shows the breakdown of the score between the five pillars of energy management. This score is quite high for an initial diagnostic result and reflects the work that has been done over the years to reduce the impact of energy costs on the Millipore operations and to comply with the EPA requirements as outlined in the site IPPC license. Figure 1: Breakdown of Energy Management Diagnostic Score 100% 80% Score 60% 40% 20% 0% Commitment Identification Plan Action Review 5 Pillars of Energy Managem ent This graph shows that there is a lot of identification and planning underway. The commitment pillar is a little lower than expected in view of the successes gained already. Discussions on site show that this has recently changed with significant management focus and commitment now being directed at Energy Management. This will improve the score in this area when specific actions are formalised. 81925177 7 Services for Business Programme - Site Visit Report The principal barriers to developing, implementing and maintaining a full and effective energy management system at the site are awareness among the general staff and specific competence in identifying potential opportunities. These barriers are specifically addressed in proposed actions on the Register of Opportunities. There is additional information available on energy management from SEI’s Energy MAP website at www.sei.ie/energymap. 3 Energy Consumption Annual Consumption 3.1 The site is supplied with Energy from a 1 MW(electrical) Combined Heat and Power System with top up as required from the electricity and gas grids. Based on assessments of energy bills , the CHP plant operated at ca. 74 % efficiency in 2006 but this dropped to ca. 49 % in 2007 as the unit was down for some time during the year. The operation of this unit has a significant bearing on the site energy costs as it appears that the site is penalised for drawing too much electricity and not enough heat in the form of steam and hot water from the system. I recommend that the structure of the CHP contract be reviewed to determine if it is providing good value to the site in its current configuration. The site energy consumption is rising due to additional capacity being brought on line. However, the overall energy performance of the site in relation to the production volume is improving with the addition of the new capacity. This is a very positive scenario and one that should be closely monitored over the next 12 months to ensure these gains are consolidated. Millipore’s annual energy consumption is set out in Table 1 and summarised in Figures 2 and 3. In 2006 ca. 55 % of the electricity consumed was generated on site by the CHP unit. This percentage reduced to 38 % in 2007 for two reasons: Increase in overall electricity requirement by ca. 19% A reduction of ca. 18 % in the output available from the CHP plant. The gas requirement in the same period increased by ca. 9% with a drop of 26 % in the thermal output available from the CHP unit in line with the operational problems experienced with that unit in 2007. The costs of imported Electricity increased by 8.3 % in 2007 while the cost of CHP electricity increased by ca. 28 % in the same period. The costs of imported gas reduced by 5 % while the cost of the thermal output of the CHP unit increased by 39 % in the same period. This is further evidence of the operational issues with the CHP unit reflecting in increased costs to the site. 81925177 8 Figure 2: Breakdown of Energy Consumption 2006 Energy Consum ption CHP Thermal 8% 0% Electricity 35% Natural Gas 54% Figure 3: Breakdown of Energy Spend 2006 Energy Spend (excl. VAT) CHP Thermal 11% Natural Gas 30% 0% Electricity 59% Services for Business Programme - Site Visit Report Figure 4: Breakdown of Energy Related CO2 Emissions 2006 CO2 Em issions CHP Thermal 11% 0% Electricity 52% Natural Gas 37% 81925177 10 Services for Business Programme - Site Visit Report Table 1: Annual Energy Consumption & Energy Costs 2006 Fuel Quantity [kWh] Spend (excl. VAT) 2007 CO2 Emissions [t] Quantity [kWh] Spend (excl. VAT) CO2 Emissions [t] Additional Information Electricity Imported 5,940,600 €602,358 3,784.2 9,780,000 €1,073,654 6,229.9 AUP 2006=10.140 c/kWhr AUP 2007 = 10.978 Electricity – onsite Generation (CHP etc.) 7,333,378 €819,207 1,962.0 6,035,400 €861,175 1,614.7 AUP 2006=11.171 c/kWhr AUP 2007 = 14.269 20,084,882 €733,364 3,976.8 21,861,157 €757,085 4,328.5 AUP 2006= 3.651 c/kWhr AUP 2007 = 3.463 4,330,481 €278,371 1,158.7 3,191,694 €286,135 854.0 37,689,341 €2,433,300 10,881.7 40,868,251 €2,978,049 13,027.1 Electricity Exported Natural Gas Thermal CHP Output 0 AUP 2006=6.428 c/kWhr AUP 2007 = 8.965 Fuel Oil (HFO / MFO) Kerosene / Gasoil Solid Fuels Renewables Fleet Total 81925177 11 AUP 2006= 6.456 c/kWhr AUP 2007 = 7.287 Services for Business Programme - Site Visit Report 3.2 Main Energy Consumers The main energy consumers at the site are summarised in Tables 2 & 3 below. It was not possible to quantify the breakdown of energy use on a complex site such as this one in the time allowed. I have therefore identified the significant energy users as a guide for further analysis Table 2: Summary of Primary Electrical Energy Consumers Electrical Energy Consumer % of Total Comments Building HVAc Process Equipment Injection Moulding Compressed Air Cooling Lighting Waste Water Treatment Table 3: Summary of Primary Thermal Energy Consumers Thermal Energy Consumer % of Total Comments Process Heating Solvent Recovery This is an increasing load due to new equipment installation Thermal Oxidation of Air Emissions A new thermal oxidiser was installed in 2007 3.3 Energy Performance Indicators (EPIs) The site currently measures and EPI based on Volume / Energy requirement. I recommend in addition to this EPI that the site develop some specific EPIs in the form of Energy used per unit of production. These should be both thermal and electrical. I also recommend that the injection moulding operations be separately monitored and a separate EPI reported which would allow benchmarking against similar operations in other Millipore Sites and in the EU plastics industry. A specific report entitled Low Energy Plastics Processing- European Best Practice Guide is available from the eu RECIPE website at www.eurecipe.com This guide contains specific recommendations for improvement of energy efficiency in plastics manufacture. The site also provides on line benchmarking at basic and advanced levels for plastic manufacturing. 81925177 12 Services for Business Programme - Site Visit Report 4 4.1 Opportunities for Energy Savings Recent/Existing Energy Saving Initiatives The site currently has a contract with an energy consultant to identify and develop energy saving opportunities. This effort has resulted in a level of continuous improvement over the years. However, the recent rapid increase in production capacity will now provide some new challenges to optimise energy consumption as the new plant is brought on line. The new facilities were designed with improved energy consumption as part of the initial specification. 4.2 Suggested Opportunities for Energy Savings We identified a number of opportunities for further energy savings at the site; these are summarised in Table 4 overleaf. Any values quoted for energy savings are estimates and would require further investigation to verify their accuracy. 81925177 13 Services for Business Programme - Site Visit Report Table 4: Opportunities for Energy Savings Cost Range Category Target Date No / Low Organisational 3 Months No / Low Organisational 3 Months Increased Management focus No / Low Organisational 3 Months Increased focus on EM No / Low Organisational 3 Months Set up a formal Annual Energy Review with Senior Management Increased Management focus No / Low Organisational 3 Months Use 2006 data as the initial review 06 Review past and present energy consumption. Increased Monitoring & Targeting No / Low Organisational 3 Months Completed for 2006 & 2007 at site level as part of this review 07 Prepare a list of Significant Energy Users Increased focus on large consumers No / Low Technical 3 Months Planned as part of IPPC Energy Audit Analyse current energy consumption to determine what drives energy use on site Increased focus on large consumers 3 Months It is suspected that Weather and Production volumes drive energy use. Previous Audits ruled out correlation to degree days, This will need to be revisited. No. Opportunity 01 Formally appoint the facilities supervisor to act as Site Energy Manager 02 Set up an Energy Management Team 03 Formally appoint a Senior Manager to act as Energy Team Sponsor 04 Draw up a revised energy policy separate from current policies 05 08 81925177 Indicative Benefits Increased focus on EM Increased focus on EM No / Low 14 Technical Additional Information Status Services for Business Programme - Site Visit Report 09 Formalise the Energy Saving Programme with specific target savings related to project list ca. 3 % savings should be achievable (ca.90k) Medium Technical 6 Months 10 Add the ideas being generated by the Millipore Energy consultant to this register of opportunities Consolidation of all Energy saving ideas No / Low Organisational 3 Months SEI Experience suggests that 3 to 5 % should be relatively easy to achieve with low investment 556k potential from 2007 data No / Low Organisational 3 Months Site has already renegotiated contract for 2008 with prices now more in line with the market. This should lead to significant savings (ca. 556k based on 2007 data) going forward. Review Minimum Take/ Pay clauses in contract on both electricity & thermal to ensure savings gained on thermal are not lost to take or pay Improved procurement No / Low Organisational 3 Months This should be part of an overall assessment of the CHP contract Consider a site wide Energy Awareness campaign Improved awareness among staff No / Low People 6 Months This may be planned using SEI on line tools 11 Review Contract with CHP ./ Energy Supplier to ensure optimum value 12 13 Consider joining SEI Energy MAP training programme Complete the work to set up all utilities equipment on PM programme Establish an Energy Efficiency Review Procedure for all new equipment and systems Increased EM competence No / Low People 6 Months Improve O&M No / Low Technical 6 Months Improved Life Cycle costs No / Low Technical 6 Months 17 Consider the establishment of Energy Performance Indicators (EPIs) based on activity. Currently on a volume/ energy ratio) Improved Focus on energy metrics No / Low Organisational 3 Months EPI should ideally be kWhrs / unit of volume. 18 Consider a separate EPI for Moulding Area Improved Focus on energy metrics No / Low Technical 6 Months This may require some additional metering to be installed 14 15 16 81925177 15 Services for Business Programme - Site Visit Report 19 Carry out an energy measurement survey of all major users Improved M&T No / Low Technical 6 Months 20 Issue an Energy Report at least monthly Improved M&T No / Low Organisational 3 Months Report on consumption, CHP availability / efficiency, cost and EPIs as above 21 Review new air compressor arrangements for Energy Optimisation when installation of new unit is completed Optimise CA costs Medium Technical 6 Months There may be options to use waste heat from compressor for space heating 22 Purchase Ultrasonic Leak detector for air leak surveys Medium Technical 6 Months These units may also be used for steam trap testing 23 Consider in house steam trap testing programme using above unit No / Low Technical 6 Months 24 Review options for Improved Steam Boiler Controls 7.5K p.a. Medium Technical 6 Months 25 Review options for Boiler economiser installation 30k p.a. High Technical 12 Months 26 Upgrade Valve insulation to Jacket Type Reduced heat losses Medium Technical 6 Months 27 Carry out a lighting survey in all areas with a view to installation of occupancy control and higher efficiency luminaires Reduced lighting costs No / Low Technical 6 Months Consult with major lighting suppliers 28 Review Energy Use in Moulding Area and benchmark against eu RECIPE plastics benchmark survey Benchmarking No / Low Technical 6 Months Some metering may be required to separate out the energy consumed in this area This may only be economically feasible if maintenance costs are too high on older units or they are being considered for replacement for other reasons Optimise CA costs Reduce steam trap failures 29 Consider replacement of hydraulic machines with Electric Machines 30 to 60 % reduction on moulding energy costs 30 Review Barrel Insulation on moulding machines Reduced Losses 81925177 High Technical When Opportunity Arises Medium Technical 12 Months 16 Consult with Boiler Manufacturers Consult with Boiler Manufacturers These will make maintenance easier Services for Business Programme - Site Visit Report 31 Review options for VSD installation in moulding machines 32 Review Moulding Settings for consistency 33 Review Cycle times for moulding machines 34 Review Scrap Levels to determine if these are optimal 35 Review PMs on Moulding machines to ensure energy efficiency is optimised (esp. heat exchangers /cooling systems) 36 37 38 39 Review operation of Grinders to ensure they are operating only when required Review operation of new Thermal Oxidiser to ensure optimum energy performance Review HVAc system to determine if opportunities exist for optimisation Join SEI LIEN (large Industry Energy Network) 40 Consider entering into an Energy Agreement with SEI and moving to IS 393 adoption 41 Consider joining Energy MAP Training Programme 42 Complete an interim Energy Audit pending completion of new development 43 Complete a detailed Energy Audit when current developments are commissioned 81925177 Improved efficiency Improved efficiency Improved efficiency Improved efficiency Medium Technical 12 Months No / Low Technical 3 Months No / Low Technical 6 Months No / Low Technical 6 Months No / Low Technical 3 Months No / Low Technical 6 Months No / Low Technical 6 Months Reduced Losses No / Low Technical 6 Months Networking Improved EM using structured approach No / Low Organisational 3 Months Medium Organisational 12 Months No / Low People When Opportunity Arises No / Low Technical 3 Months Depending on EPA approval Medium Technical >12 Months Depending on EPA approval Improved long term capability Improved efficiency Improved efficiency Improved EM competence Additional ideas for Register of Opportunities Additional ideas for Register of Opportunities 17 Services for Business Programme - Site Visit Report 44 45 46 81925177 Review the utilisation of heat from the CHP unit (Steam and Hot Water ) to determine if these can be optimised to avoid take /pay penalties Review potential for additional metering on electricity for large loads Review potential for additional metering on gas for large loads Improved efficiency and lower costs No / Low Technical 3 Months Improved M&T Medium Technical 6 Months Improved M&T Medium Technical 6 Months 18 Services for Business Programme - Site Visit Report 5 Additional Information The Millipore site is a well designed and well managed facility. The additional capacity currently in construction will require some months to fully determine its energy efficiency level. This is likely to be in 2009. I recommend that a more detailed energy assessment be carried out at this time when all of the new facilities are in operation. The site personnel are accustomed to structured systems, making this site an ideal candidate for an Energy Agreement and progression to full implementation of IS 393. The best way to start on this initiative would be for key personnel to complete the SEI Energy MAP training programme. This would provide a solid foundation for IS 393 implementation in 2009. 6 Next Steps • Millipore should review this report and in particular the opportunities for energy savings identified in Table 4. • Liam Tolton will contact Breeda Comyns in about one week to briefly discuss this report and to provide any relevant clarifications. • SEI has appointed Liam Tolton to provide follow-up energy management mentoring to Millipore over the next three months. Liam will contact Breeda regularly over this period to assist, mentor and encourage Millipore in progressing the opportunities for energy savings identified in Table 4 and in improving energy management. • Millipore should use this three month period to kick-start progress on the energy savings opportunities and to improve on the priority areas identified in the Energy Management Diagnostic Questionnaire. • Breeda / Daragh should contact Liam by email or by telephone over this period with any queries relevant to energy management. • Ms. Mairead Cirillo of SEI will contact Breeda Comyns over the next few weeks with a request to fill out a short evaluation of SEI’s Services for Business Programme; we would be grateful for co-operation in completing this. • Ms. Nessa Duggan of SEI will be in contact shortly to discuss Millipore’s participation in the Large Industry Energy Network (LIEN) (ref Opportunity No. 39 in Table 4). • Mr. John O’Sullivan of SEI will be in contact shortly to discuss Millipore’s participation in a formal Energy Agreement (ref Opportunity No. 40 in Table 4). 81925177 19 Services for Business Programme - Site Visit Report • 81925177 Ms. Mairead Cirillo / Mr. Liam Tolton of SEI will be in contact shortly to discuss training opportunities provided by SEI that would be of benefit to Millipore (ref Opportunity No. 41 in Table 4). 20 Services for Business Programme - Site Visit Report Appendix A – Site Tour Checklist Score Item Poor 1 2 3 4 Observations / Comments Excellent 5 N/A Physical Condition of Buildings / Plant . Insulation Some opportunities on valve insulation Steam / Condensate / Hot Water Leaks Few leaks in evidence Boiler House Some opportunities for improved insulation and boiler controls /economiser Compressed Air This area was under construction Cooling Systems This area was under construction Production Plant Lighting Some occupancy sensing potential Evidence of Energy Awareness (posters etc.) Opportunities for Increased awareness Solvent Recovery Areas New SRU under construction Thermal Oxidisers New Thermal Oxidiser installed 81925177 21 Services for Business Programme - Site Visit Report Appendix B – Energy Management Diagnostic Questionnaire Energy Management Diagnostic Questionnaire Site Name: Millipore Ireland B.V. SEI Client ID: 0354 Breeda Comyns EHS Manager Participants: Darragh Newman Facilities Supervisor Score: 52% SEI Energy Advisor: Liam Tolton Review Action Plan Identification Commitment Question Date: 11-Dec-07 Assessment Additional Comments 1 Is there a Co-ordinator appointed to manage Energy Management? Part of Facilities Supervisor Role 2 Is there a Senior Manager appointed to sponsor an Energy Management? Senior Management Team are starting to take an interest in this area. 3 Is there an Energy Policy? Part of Operations Management System Policy 4 Is the Energy Policy communicated to employees? Part of annual updates 5 Is there an annual review by senior management of energy performance & Energy Management? 6 Have you undertaken an overview of past & present energy consumption? Part of IPPC / ISO 14001 7 Have you surveyed current energy use & identified significant energy users? As above. 8 Have you identified the key factors that influence energy consumption at the site? 9 Do you continuously identify energysaving opportunities? It is likely that a combination of weather and production output are the main determinants 10 Do you set (Energy) Objectives & Targets? Set Annually 11 Is there an Energy Savings Programme in place? Part of Objectives and Targets for IPPC ./ ISO 14001 12 Are adequate resources allocated to Energy Management / energy saving activities? 13 Are energy-efficient practices and energy awareness promoted amongst employees? 14 Are key personnel trained in energy efficient practices? Part of Contract with Energy Consultancy 15 Is there an Energy Savings Register (of Energy saving projects)? Part of Contract with Energy Consultancy 16 Are energy intensive plant & systems designed, operated & maintained to optimise energy efficiency? 17 Have Energy Performance Indicators (EPI) been developed for the site? Are they monitored? 18 Is there an Energy Measurement & Monitoring system in place? Facilities Tech setting up PM system on utilities systems 19 Is energy performance reported to management and key staff regularly? Just started a weekly energy metrics system Has been completed for previous IPPC license audits and carbon footprint studies but requires update Part of IPPC / ISO 14001 Departmental Reviews Part of induction Reporting annually only At all energy sources but not all significant users 20 Is the effectiveness of the programme reviewed annually? What do you consider to be the 3 most important barriers to developing, implementing and maintaining a full and effective Energy Management System within your organisation? [e.g. resources, training budgets, capital budgets, management time, lack of competent personnel etc.] Barriers i Awareness among the general staff ii Training in identification of potential oppurtunities iii 81925177 22 Services for Business Programme - Site Visit Report 81925177 23
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