Case Study Hexagon implements precise energy management plan with EnerNOC Demand response dispatches are almost invisible to Hexagon Metrology—sensitive manufacturing continues ahead uninterrupted Fast Facts: Industry: Manufacturing Location: North Kingstown, RI Program: EnerNOC DemandSMART-New England DR Strategy: Curtailment and backup generation Primary Curtailment Strategy: HVAC adjustments, lighting reductions Annual Payments: Approximately $15,000 © 2011 EnerNOC, Inc. THE BIG PICTURE Hexagon Metrology, Inc. is the North American-based manufacturing, sales, service, and distribution arm of The Hexagon Metrology Group, the world’s largest manufacturer of precision coordinate measuring systems. Hexagon Metrology focuses on manufacturing, sales, service, and distribution of micro precision measuring products under the Brown & Sharpe and TESA brand names. Its 112,000 square-foot facility in North Kingstown, Rhode Island includes high-technology manufacturing and assembly as well as office and warehouse space—where more than 250 employees work around-the-clock. As a precision manufacturer with worldwide reach and a reputation for quality, Hexagon Metrology is focused on maximizing efficiency and costeffectiveness, while acting as a leader within its community. It has received a number of major quality, workplace, and environmental certifications, such as ISO 9001, ISO 14001, and ISO 18001. In 2008, it began exploring the potential of EnerNOC demand response (DR) to reduce energy consumption to augment its existing environmental and community leadership efforts. Hexagon Metrology combines lighting and HVAC reductions and backup generation to reduce energy consumption by 120 kW during potential grid emergencies. The company receives annual payments of approximately $15,000 for its participation in DR—funds that are used to pay for new projects that further reduce energy use. Case Study | Hexagon Metrology THE RESULTS Hexagon Metrology receives email and phone notification of impending DR dispatches and tests from EnerNOC. Once the notification is accepted, EnerNOC automatically makes adjustments via the company’s building management system (BMS). During a dispatch or test procedure: • Approximately 50% of the company’s lighting is turned off. • Temperature set points in office areas are raised from 72 degrees to 76 degrees. John Mycroft, Facilities, Environmental, Health and Safety Manager A PRECISE APPROACH TO DR Hexagon Metrology’s customers—major U.S. automobile aircraft and defense manufacturers, as well as other hightechnology firms—rely on the company’s machines to provide exceptionally precise measurements. Therefore, the company cannot do anything that might jeopardize the quality of its manufacturing processes; however, company leaders are also committed to reducing Hexagon Metrology’s impact on the environment. Any adjustment its existing processes must meet the dual needs of high product quality and low environmental impact. energy-related costs. Once its facilities personnel were settled into the new space, the company began looking for other opportunities to reduce energy use and save money. “Even after our move to a new facility, our electrical bill was still more than $375,000 a year,” says Mycroft. “So we were very open to EnerNOC’s demand response story. Everyone here, from the manufacturing staff to our executives, was behind the idea of reducing energy, getting paid for it, enhancing the environment, and protecting our community. It seemed like an obvious win-win for us.” “Before we began talking to EnerNOC about demand response, we were already actively working to reduce our carbon footprint and be as environmentally friendly as possible,” recalls John Mycroft, facilities, environmental, health and safety manager. “We were very involved in meeting and exceeding standards and staying at the forefront of innovation and efficiency.” Hexagon Metrology needed to protect a key area of its manufacturing facility, a 10,000 square foot temperature-controlled calibration room where its highly accurate measurement devices are calibrated under exact temperatures and conditions. The temperature in this area is held to a tolerance of +/- one-half degree Celsius. No environmental program—no matter how attractive—could jeopardize the precision control over this room. “It’s the backbone of our business,” says Mycroft. “Our customers expect us to calibrate our machines under precise tolerances. And we’re committed to ensuring maximum quality and precision.” In 2006, Hexagon Metrology moved to its current facility in North Kingstown, Rhode Island, a 112,000 square foot, customdesigned industrial space. This move saved the company more than $500,000 in annual © 2011 EnerNOC, Inc. • Five of 10 rooftop HVAC units are shut off. Hexagon personnel also manually shut off other lights in office areas wherever possible. • EnerNOC automatically starts up Hexagon’s onsite backup generator, which is used to provide the sensitive calibration area with a seamless, uninterrupted energy supply. This strategy creates more than 120 kW of energy reduction—50% from the heating and lighting adjustments and 50% from the use of backup generation. “Most of our employees don’t even see the changes, they’re almost invisible,” says Mycroft. “The transfer to backup generation is seamless, and the lighting changes are virtually unnoticeable.” At the end of a dispatch, EnerNOC returns the BMS settings to their previous levels, switches the backup generation off, and operations go back to normal—all without much effort by Hexagon Metrology staff. “During a dispatch, we have very little to do with the DR process,” says Mycroft. “Ninetynine percent of the process is automated, which makes it incredibly easy for us to participate.” Manufacturing For its participation in the emergency DR program, Hexagon Metrology receives approximately $15,000 a year in payments from EnerNOC. “In addition to these payments, we also use EnerNOC’s free PowerTrak® energy monitoring to help reduce our energy use by another $100,000 a year,” says Mycroft. “By being more aware of our energy use, we can make better-informed decisions about our facilities’ energy use, which leads to energy reductions and money savings.” THE BENEFITS EnerNOC DR enables Hexagon Metrology to ensure the integrity of its temperaturecontrolled calibration room and the quality of its products. This part of the company’s facilities is protected from any changes, since it moves seamlessly to backup generation. Other areas, which are not as critical, can accommodate lighting and HVAC adjustments. With EnerNOC DR, Hexagon Metrology gets the flexibility to control what areas of its company are affected. Other key benefits that EnerNOC DR brings to Hexagon Metrology include: AUTOMATED PARTICIPATION EnerNOC’s ability to automate Hexagon’s participation in DR takes much of the manual work out of demand response. “Within a few minutes, EnerNOC makes the changes,” says Mycroft. “We just continue working.” Every manufacturer should be a part of demand response. Now that companies have such a strong interest in ‘going green,’ it really makes sense— economically and environmentally. John Mycroft, Facilities, Environmental, Health and Safety Manager This automated adjustment enables Hexagon Metrology to continue ahead with manufacturing, while leaving the DR details to EnerNOC. After an event, EnerNOC returns Hexagon Metrology’s facilities to their normal settings. PRECISION CONTROL With EnerNOC controlling all adjustments during DR events, Hexagon Metrology can be confident that its sensitive facilities, such as the calibration area, will continue without any variations in temperature. EnerNOC carefully monitors the Hexagon Metrology facilities to ensure that all DR events run smoothly. ADVANCED MONITORING Hexagon Metrology receives free access to energy monitoring features through DemandSMART™, EnerNOC’s comprehensive DR application. These tools help the company keep a close eye on its energy use on an ongoing basis. “In the past we used to just get a monthly bill. Now we can monitor usage in near real-time, making changes and tweaking our energy use to raise energy efficiency.” In all, Hexagon Metrology estimates that it has saved more than $100,000 annually by making adjustments to its facilities—all aided and informed by EnerNOC software. COMMUNITY SUPPORT “EnerNOC demand response is good business for us, and good for our community,” says Mycroft. “It helps protect everyone from brownouts and blackouts. It’s easy to do. And we get paid for it. It’s a simple way to be a good citizen of our community, and What is Demand Response? Demand response provides payments directly to organizations that choose to reduce energy use during times of peak demand. EnerNOC DemandSMART is the industry’s most comprehensive demand response application, allowing our customers to get the most value from their participation in demand response programs throughout the US, Canada, and the United Kingdom. EnerNOC works closely with customers to define customized energy reduction strategies and ensure successful performance during events. EnerNOC absorbs all costs and protects customers from any penalties that can be incurred for not meeting reduction targets. Demand response helps stabilize your region’s energy resources without requiring construction of new power plants—benefiting utilities, their customers, and the environment. Want More Information? Hexagon Metrology is just one of the many innovative organizations that benefit from EnerNOC’s comprehensive energy management applications. To find out more, call (866) 366-7820 or visit www.enernoc.com/get-started. Case Study | Hexagon Metrology Even after our move to a new facility, our electrical bill was still more than $375,000 a year. So we were very open to EnerNOC’s demand response story. Everyone here, from the manufacturing staff to our executives, was behind the idea of reducing energy, getting paid for it, enhancing the environment, and protecting our community. It seemed like an obvious win-win for us. John Mycroft, Facilities, Environmental, Health and Safety Manager we’re very proud to be a part of it.” Mycroft is spreading the word about DR through his local Chamber of Commerce, inspiring manufacturers of all sizes to make DR part of their company’s energy plans. THE FUTURE Hexagon Metrology continues to look for new ways to boost its energy reductions during DR events. It is pursuing a wide range of other energy-related projects, including Leadership in Energy and Environmental Design (LEED) certification. Looking beyond Rhode Island, the company hopes to enroll its other facilities around the country in EnerNOC DR programs. “Every manufacturer should be a part of demand response,” concludes Mycroft. “Now that companies have such a strong interest in ‘going green’ it really makes sense—economically and environmentally.” EnerNOC, Inc. Headquarters EnerNOC Ltd. Headquarters EnerNOC UK Limited Headquarters 101 Federal Street Suite 1100 Boston, MA 02110 Office: 617.224.9900 Fax: 617.224.9910 11-1155 North Service Road West Oakville, Ontario L6M 3E3 Office: 416.461.4678 Fax: 289.291.4001 Golden Cross House 8 Duncannon Street London, WC2N 4JF Office: +44 (0) 80. 0520. 0303 Fax: +44 (0) 80. 0520. 0192 EnerNOC, Inc. is headquartered in Boston, MA, United States, with wholly-owned subsidiaries in Canada (EnerNOC Ltd.) and the United Kingdom (EnerNOC UK Limited). EnerNOC UK Limited is a company incorporated in England and Wales with company number 06937931, VAT number GB980145422 and whose registered office is located at Alder Castle, 4th Floor, 10 Noble Street, London EC2V 7JX. A list of directors is available for inspection at our offices. © 2011 EnerNOC, Inc. www.enernoc.com For a full list of offices, please visit: www.enernoc.com/about/contact.php ©2011 EnerNOC, Inc. All rights reserved. No text can be reprinted without permission. Case Study Linamar Makes DR a Green Initiative Just-in-Time Individual site evaluations bring custom curtailment plans to 25 manufacturing sites Fast Facts: Industry: Automotive and Diversified Manufacturing Location: Headquartered in Guelph, Ontario EnerNOC Application: DR Program: EnerNOC DemandSMART™ Ontario DR Strategy: Curtailment Primary DR Strategies: Temporary shutdown of lighting, comfort and charging stations Annual Payments: Hundreds of thousands of dollars © 2011 EnerNOC, Inc. THE BIG PICTURE Based in Ontario, Linamar Corporation has grown from a small machining operation to a global supplier of vehicle and mobile industrial equipment with 37 manufacturing facilities worldwide. Linamar designs and manufactures precision metal components for the global vehicle and power generation markets, as well as designs and produces aerial work platforms and other equipment for its industrial business segment. As Linamar has grown, so has its yearly energy usage. This dynamic presented a paradox for the historically environmentallyconscious company; Linamar was eager to minimize its energy usage as much as possible but did not want to impede its manufacturing operations. The customized energy reduction plan proposed by EnerNOC for its DemandSMART-Ontario program was exactly the bespoke solution that Linamar needed to participate in the Ontario Power Authority’s DR3 scheme. EnerNOC helped Linamar identify potential areas for energy reductions while leaving critical manufacturing processes untouched. As a local expert with global backing, EnerNOC had the most on-the-ground knowledge of Ontario’s demand response program, and, more importantly, the ability to understand Linamar’s business and match the two in a win-win partnership. “EnerNOC has the most information, the most up-to-date process knowledge, and the most insight into the specifics of demand response,” said Tony Luis, Linamar’s Director of Purchasing. For Linamar, this combination of process expertise and local presence was essential. Case Study | Linamar Since joining the program, Linamar’s 25 plants have been dispatched an average of six times per year and provide a total reduction of 2.4 MW. CUSTOMIZED SITE-SPECIFIC DEMAND RESPONSE Linamar was keen to reduce energy usage wherever possible, but with 25 separate facilities across Ontario, knowing where to begin was an intimidating challenge. EnerNOC’s local experts made this daunting task seem simple. In early 2009, representatives from EnerNOC visited all of the site managers at Linamar’s various facilities. They conducted interviews and determined what level of participation would be right for each individual plant. “EnerNOC took us through the process step-by-step,” Luis recalled. “They met with each individual plant, and explained what each site’s involvement would be in a demand response dispatch.” EnerNOC outlined a curtailment plan for each Linamar facility, met with each facility manager to have it approved, and ran tests at each site to make sure the reductions would be effective during a demand response dispatch. Ultimately, consensus was reached across all 25 plants, and each one signed on to its unique energy reduction plan. THE RESULTS Linamar’s two requirements for its plants’ curtailment plans were to 1) maintain employee safety at all times, and 2) to allow its manufacturing processes to continue unimpeded. Therefore, when a demand response dispatch occurs, Linamar practices non-operational curtailment measures such as reducing air conditioning in the plants’ front offices, dimming lights, and reducing the air cycle schedule in the plants. Through these measures, Linamar’s 25 plants provide a total reduction of 2.4 megawatts (MW) per dispatch. Since joining the program in 2009, Linamar has been dispatched an average of six times per year. For Linamar, participating in demand response with EnerNOC is straightforward. Four hours before a dispatch begins, EnerNOC contacts the designated point person at each Linamar facility. The Linamar contacts acknowledge the dispatch via email or cell phone. The company then sends out an internal email to let its staff know that the dispatch is occurring. Two hours before the actual dispatch, Linamar’s sites implement their respective curtailment plans. “We like to be proactive and make sure we will be able to meet our goals. We test this prior to the dispatch taking place,” says Luis. From his computer, Luis can monitor each site’s energy consumption in real time via EnerNOC’s DemandSMART™ online application, ensuring that each site is meeting its reduction targets. If he observes any one of the 25 sites not adhering to its plan, Luis will make a call to investigate. The dispatch lasts exactly four hours. THE BENEFITS Linamar’s 2.4 MW reductions earn the company hundreds of thousands in annual payments from EnerNOC. In addition to these financial benefits, Linamar has also enhanced its own internal understanding of its various plants, and increased its awareness of what processes have the greatest impact on the company’s energy usage. EnerNOC demand response brings additional benefits to the company as well, including: EnerNOC has the most information, the most up-to-date process knowledge, and the most insight into the specifics of demand response. Tony Luis, Director of Purchasing © 2011 EnerNOC, Inc. Automotive and Diversified Manufacturing EnerNOC took us through the process step-by-step. They met with each individual plant, and explained what each site’s involvement would be in a demand response dispatch. Tony Luis, Director of Purchasing BUSINESS CONTINUITY For most manufacturing companies, the financial incentives from demand response prompt them to pursue a full or partial shutdown of manufacturing processes, while the crew are deployed to other activities like equipment maintenance. For Linamar, though, EnerNOC was able to identify substantial energy reductions outside of core manufacturing processes so Linamar enjoys the financial rewards of demand response without disruption to its business. BUSINESS INTELLIGENCE EnerNOC’s DemandSMART™ technology provides Linamar with a way to monitor its disparate facilities from a central online portal. Prior to working with EnerNOC, Linamar had no way to visualize aggregated energy usage data from individual facilities. “Our plants were not connected to each other at all,” noted Luis. “EnerNOC gave us tools to help identify what processes in our manufacturing have the greatest impact on our energy use. Our plants are now connected; we didn’t have that before.” LOCAL SUPPORT If a certain plant struggles to reach expected reductions during dispatches, EnerNOC visits that site to discuss adjustments to its curtailment plan. “EnerNOC is very involved in the process of making DR work for each of our plants. They are the experts in what is required to meet our reduction goals,” Luis explained. A COMPREHENSIVE APPROACH TO SUSTAINABILITY “A lot of our decision-making processes are green-conscious,” said Luis. “The DR3 program is just another element of how we do things here. We appreciate the financial benefits but we also learn about our business’ effect on our electricity usage.” Often, individual plants will challenge themselves to continue curtailment even longer than the official dispatch period. “We take certain measures to reduce electricity during curtailment, but now plants are asking themselves, ‘Can we do these things over longer periods?’” What is Demand Response? Demand response provides payments directly to organizations that choose to reduce energy use during times of peak demand. Demand response helps stabilize regional energy resources without requiring construction of new power plants—benefiting utilities, energy users, and the environment. EnerNOC DemandSMART™ is the industry’s most comprehensive demand response application, allowing businesses to get the most value from their participation in demand response programs throughout Australia, the United States, Canada, and the United Kingdom. EnerNOC works closely with organizations to define customized energy reduction strategies and ensure successful performance during dispatches. EnerNOC absorbs all costs and protects program participants from any penalties that may be incurred for not meeting reduction targets. Want More Information? Linamar is just one of the many organizations that benefits from EnerNOC’s comprehensive energy management applications. To find out more, call (866) 366-7820 or visit www.enernoc.com/get-started. Case Study | Linamar EnerNOC gave us tools to help identify what processes in our manufacturing have the greatest impact on our energy use. Our plants are now connected; we didn’t have that before. Tony Luis, Director of Purchasing THE FUTURE Linamar recently renewed its contract with EnerNOC so that it will continue to understand its own energy usage and reap financial benefits at the same time. Why else? EnerNOC makes it easy. Says Tony Luis: “EnerNOC stays on top of things and communicates with us; they are very active and involved.” With its hands-on, customized approach, strong local connections with Ontario’s utilities, and global technical expertise, EnerNOC takes the guess-work out of demand response. EnerNOC’s experts visited each of Linamar’s 25 sites and helped determine the appropriate level of demand response participation for each individual plant. EnerNOC, Inc. Headquarters EnerNOC Ltd EnerNOC UK Limited EnerNOC Pty Ltd 101 Federal Street 11-1155 North Service Golden Cross House 45 Ventnor Avenue Suite 1100 Road West 8 Duncannon Street West Perth W.A. 6005 Boston, MA 02110 Oakville, Ontario L6M 3E3 London, WC2N 4JF Office +61-(0) 8-9429.8860 Office: 617.224.9900 Office: 416.800.0948 Office +44 (0) 80. 0520. 0303 Fax +61-(0) 8 9429.8800 Fax: 617.224.9910 Fax: 289.291.4001 Fax +44 (0) 80. 0520. 0192 EnerNOC, Inc. is headquartered in Boston, MA, United States, with wholly-owned subsidiaries in Canada (EnerNOC Ltd.), the United Kingdom (EnerNOC UK Limited), and Australia (EnerNOC Pty Ltd). EnerNOC UK Limited is a company incorporated in England and Wales with company number 06937931, VAT number GB980145422 and whose registered office is located at Golden Cross House, 8 Duncannon Street, London WC2N 4JF. A list of directors is available for inspection at our offices. © 2011 EnerNOC, Inc. www.enernoc.com For a full list of offices, please visit: www.enernoc.com/about/contact.php ©2011 EnerNOC, Inc. All rights reserved. No text can be reprinted without permission. Case Study Rio Tinto Minerals Mines the Many Benefits of Demand Response with EnerNOC Major mineral supplier enrolls large mining and processing facilities as part of its commitment to sustainability Fast Facts: Industry: Mining/Manufacturing Location: Houston, TX and Ludlow, VT Program: EnerNOC DemandSMART –Emergency Response Service EnerNOC DemandSMART –New England DR Strategy: Curtailment only Energy Reduction Strategy: Selected shutdowns of talc processing equipment Annual Payments: Approximately $36,000 © 2010 EnerNOC, Inc. THE BIG PICTURE Rio Tinto is one of the largest industrial minerals suppliers in the world, with mining and processing facilities in the U.S., South America, Europe, and Asia. It serves nearly 2,500 customers, accounting for half the global demand for refined borates and about 20 percent of the global demand for talc. Rio Tinto has made a significant and public commitment to responsible stewardship of its resources and sustainable development. It works hard to be a good business partner and neighbor, minimizing environmental impact while providing valuable products to a wide range of industries. Rio Tinto’s Luzenac brand of talc represents the highest-quality talc products on the market. Talc—the earth’s softest mineral—possesses a unique combination of properties that make it invaluable in wide-ranging applications, from paint and paper to personal care products and pharmaceuticals. In 2006, one of Rio Tinto’s talc operations in Ludlow, Vermont enrolled in demand response (DR) with EnerNOC, attracted by the opportunity to earn payments while helping contribute to the stability of the energy grid and overall sustainability. It achieves reductions of almost 700 kilowatts (kW) by temporarily shutting down elements of its talc processing operation—earning annual payments of more than $16,000 from EnerNOC. Inspired by the success of demand response at this facility, Rio Tinto enrolled its Houston, Texas talc facility in 2008, reducing energy use by 1 megawatt (MW) and earning approximately $20,000 a year. Case Study | Rio Tinto economic times. “We couldn’t be happier with EnerNOC and demand response,” Kopp says. “We’re thrilled with the program and glad to be a part of it.” With EnerNOC, Rio Tinto’s Houston, TX facility supports its communities and contributes to overall sustainability while earning significant payments in challenging economic times. TAKING ADVANTAGE OF EXCESS CAPACITY Most people know talc from popular consumer products, such as talcum powder and cosmetics. But talc is one of those hidden commodities that plays a critical role in a wide range of industrial and consumer products—including shingles, paint, pharmaceuticals, and personal care products. After being mined from the ground, talc is crushed, milled, and classified into different grades appropriate for various applications. The roller mill systems that are at the heart of talc processing require a significant amount of energy, making electricity one of the top expenses of these operations. “We’re always looking for ways to reduce energy use,” says Tim Hicks, technical and process manager at Rio Tinto/Luzenac America’s Ludlow, Vermont mill. “If we can lower the overall peak kilowatts we’re using, that’s good news for our business.” For example, each of the four roller mill systems in this Rio Tinto operation draws 350 kilowatts of electricity. The opportunity to earn significant payments from EnerNOC by temporarily reducing energy use held a strong appeal for Hicks and the rest of the Rio Tinto team when they first heard of EnerNOC and DR in 2006. © 2010 EnerNOC, Inc. But their interest wasn’t just in the financial benefits. “We also wanted to support the various communities where our facilities are located,” recalls Jim Kopp, a director who supervises the Vermont and Texas mills, as well as other operations. For Kopp and other executives, DR is part of broader commitment to sustainability, one defined in the company’s extensive annual Sustainable Development Report. By participating in DR with EnerNOC, Rio Tinto can support its communities and contribute to overall sustainability—while earning significant payments in challenging EnerNOC and Rio Tinto began their partnership by carefully evaluating the Vermont site’s energy use and exploring potential methods of reducing energy. This large-scale operation includes mining as well as manufacturing, enabling it to achieve a maximum capacity of 250,000 tons. The team determined that mining needed to continue ahead uninterrupted. So for their energy reduction plan, they instead focused on the manufacturing side of the business, and more specifically, the roller mills—the major energy-consuming machinery. The result? EnerNOC helped Rio Tinto create a plan that works for them, and that defines how to respond during a demand response event. EnerNOC worked closely with Hicks and his team to integrate DemandSMART, EnerNOC’s comprehensive demand response application, with the mill’s central control room. “We were already monitoring our demand, setting limits on how much electricity we could use, and controlling our peak use,” recalls Hicks. “So DemandSMART was a natural extension of how we were already monitoring and managing our energy use for maximum efficiency, and to lower costs. Only now, we’re getting paid for it.” “ The demand response events are so infrequent that we really don’t think about it that much. With EnerNOC, demand response all happens automatically. Mike Hare, Process Engineer Manufacturing During a demand response event, Hicks and his team receive advance notice from EnerNOC via phone and email. “We’re all in contact and well aware of what we need to do,” says Hicks. Within ten minutes, the mill is temporarily shut down, and crews turn to maintenance, cleaning, and other tasks. Flexibility in the milling process enables the milling operation to suspend processing temporarily without affecting the overall business. “We have excess capacity that keeps our silos full of processed talc and enables us to keep meeting the needs of our customers,” says Hicks. “We can shut down manufacturing without any real effect, while we continue mining.” Encouraged by the results in Vermont, a second talc processing facility in Houston, Texas enrolled in DR with EnerNOC in 2008. This operation is similar to the Vermont facility, but involves processing exclusively, not mining. Energy reductions at this facility also involved shutting down selected roller mills as well as secondary milling equipment. However, in this case, EnerNOC automatically shuts them down remotely from its Network Operations Center (NOC). “Our control room isn’t manned 100 percent of the time,” explains Mike Hare, process engineer at Luzenac America/Rio Tinto’s “ I recommend demand response with EnerNOC highly. It’s a great way to control costs while contributing to overall sustainability. Jim Kopp, Director Houston mill. “EnerNOC’s automatic control option ensures that we can respond quickly when necessary.” These shutdowns are temporary, lasting a maximum of eight hours during peak energy periods. Like the Vermont facility, Rio Tinto’s Houston site uses any downtime to pursue maintenance and other on-site work. And it relies on its stock of stored talc to provide the flexibility it needs to temporarily suspend manufacturing. During several years of demand response events, the Vermont facility has consistently met and exceeded its reduction target. “The events have been very positive,” says Hicks. “They went well, and we got back to normal without any problems at all.” Hare agrees. “The demand response events are so infrequent that we really don’t think about it that much,” he says. “With EnerNOC, demand response happens automatically.” THE BENEFITS THE RESULTS During DR events, Rio Tinto can reduce energy use by an average of 690 kW at its Ludlow, Vermont facility and 1 MW at its Houston, Texas site. These reductions earn the sites significant annual payments from EnerNOC—approximately $16,000 for Vermont and $20,000 for Texas. What is Demand Response? Demand response provides payments directly to organizations that choose to reduce energy use during times of peak demand. EnerNOC DemandSMART is the industry’s most comprehensive demand response application, allowing our customers to get the most value from their participation in demand response programs throughout the US, Canada, and the United Kingdom. EnerNOC works closely with customers to define customized energy reduction strategies and ensure successful performance during events. EnerNOC absorbs all costs and protects customers from any penalties that can be incurred for not meeting reduction targets. Demand response helps stabilize your region’s energy resources without requiring construction of new power plants—benefiting utilities, their customers, and the environment. The combination of payments and a commitment to sustainability is vital to the success of demand response at these Rio Tinto mining/manufacturing sites. But most importantly, the sites can participate in demand response without affecting their overall operation, or their customers. “We have plenty of capacity and talc in storage,so we always have what our customers want,” says Hare. “And with EnerNOC, demand response is almost invisible.” Want More Information? Rio Tinto is just one of the many innovative organizations that benefits from EnerNOC’s comprehensive energy management applications. To find out more, call (866) 366-7820 or visit www.enernoc.com/get-started. Case Study | Rio Tinto DemandSMART was a natural extension of how we were already monitoring and managing our energy use for maximum efficiency, and to lower costs. Only now, we’re getting paid for it. Tim Hicks, Technical and Process Manager EnerNOC brings a range of powerful benefits to the company: A SIMPLE, STREAMLINED PROCESS bringing DR into its manufacturing operations was simple for Rio Tinto. “EnerNOC really drove the whole process,” says Hare. “From explaining to contracts and implementation to testing, the whole process was easy.” A CHOICE OF CONTROL The Vermont and Texas facilities represent two different approaches to responding to demand response events. The Vermont facility manually shuts down key equipment, while in Houston, EnerNOC makes automatic adjustments to the operation remotely, via the central control system. “At first, I was a little skeptical about automatically shutting down, but it really works for us,” says Hare. “The risk is minimal to us. And there are no penalties.” FREE AUDITING AND MONITORING During implementation, EnerNOC installed free monitoring equipment and access to its DemandSMART application, which supplemented Rio Tinto’s existing monitoring efforts. The DemandSMART application enables the company to measure and monitor energy consumption in real time, during demand response events and beyond. Now each site has a clear window into its ongoing energy use. LEVERAGING CAPACITY Both Rio Tinto facilities have flexibility within their production operations that enables temporary suspension of talc manufacturing. Taking advantage of this flexibility enables Rio Tinto to participate in DR with EnerNOC without affecting its overall ability to meet the needs of its customers. “In some cases, we actually benefit from being able to shut down temporarily,” says Hicks. “And it’s really easy for us to get back to normal operations after events.” SUPPORTING THE COMMUNITY DR programs help ensure the reliability of the energy grid during peak periods by reducing demand. By participating, Rio Tinto meets a key commitment of its Sustainability Policy— helping protect and improve the communities in which it operates. “Our company has specific targets for community support,” says Kopp. “DR with EnerNOC helps us meet them.” THE FUTURE Rio Tinto continues to explore implementing DR with EnerNOC at other manufacturing facilities that have the flexibility and capacity to shut down, partially or completely, for a temporary period. “I recommend demand response with EnerNOC highly,” says Kopp. “It’s a great way to control costs while contributing to overall sustainability.” EnerNOC, Inc. Headquarters EnerNOC Ltd. Headquarters EnerNOC UK Limited Headquarters 101 Federal Street Suite 1100 Boston, MA 02110 Office: 617.224.9900 Fax: 617.224.9910 11-1155 North Service Road West Oakville, Ontario L6M 3E3 Office: 416.461.4678 Fax: 289.291.4001 Alder Castle, 4th Floor 10 Noble Street London EC2V 7JX Office: 0800.520.0303 Fax: (0)800.520.0192 EnerNOC, Inc. is headquartered in Boston, MA, United States, with wholly-owned subsidiaries in Canada (EnerNOC Ltd.) and the United Kingdom (EnerNOC UK Limited). EnerNOC UK Limited is a company incorporated in England and Wales with company number 06937931, VAT number GB980145422 and whose registered office is located at Alder Castle, 4th Floor, 10 Noble Street, London EC2V 7JX. A list of directors is available for inspection at our offices. © 2010 EnerNOC, Inc. www.enernoc.com For a full list of offices, please visit: www.enernoc.com/about/contact.php ©2010 EnerNOC, Inc. All rights reserved. No text can be reprinted without permission. Case Study Vapor Tech Makes Demand Response with EnerNOC Part of Manufacturing Process Innovative manufacturer reduces costs by making temporary adjustments to its production line Fast Facts: Industry: Manufacturing Location: Longmont, CO Program: Xcel Energy–EnerNOC Peak Savings DR Strategy: Curtailment only Energy Reduction Strategy: Selected manufacturing process shutdowns Annual Payments: Approximately $5,000 © 2010 EnerNOC, Inc. The Big Picture Vapor Technologies, Inc. is a leader in the science, development, production, and application of Physical Vapor Deposition (PVD) equipment, which deposits thin metalized films onto various surfaces. Vapor Tech’s advanced, proven coating technologies play a key role in a wide range of applications—from coating plumbing products (such as faucets) with a brilliant, durable finish to critical uses within the medical products and alternative energy markets. Vapor Tech leverages its coating systems and technologies to bring a competitive advantage to their consumer products. In 2009, the company implemented demand response (DR) with EnerNOC, intrigued by the opportunity to earn payments by making temporary adjustments to its manufacturing operation. Now Vapor Tech shuts down selected elements of its operations during DR events, reducing its energy use by more than 200 kilowatts (kW). This reduction earns the company approximately $5,000 in annual payments from EnerNOC—while protecting the local energy grid and the environment. Additionally, DemandSMART™, EnerNOC’s comprehensive demand response application, gives Vapor Tech real-time visibility into its energy consumption and DR event performance. Case Study | Vapor Technologies within the production line that could be shut down temporarily to trigger energy reductions. The result is a clear plan captured in a simple one-page checklist that defines the areas that can be adjusted and identifies the person responsible for taking action. The plan consists of energy reductions that include: • Shutting down PVD systems that are not in use • Shutting down a cleaning line • Reducing use of air conditioning throughout the facility • Eliminating unnecessary lighting (e.g., in empty offices and areas with natural light) During a DR event, Vapor Tech makes adjustments to its operation without any overall impact on the company. A business built on electricity At Vapor Tech’s 60,000 square-foot headquarters and manufacturing facility in Longmont, Colorado, electricity is much more than a commodity. It’s at the heart of Vapor Tech’s coating technologies. A low-voltage, high-current arc is the key element that enables coating of metallic parts during the PVD process. So Vapor Tech leaders are very aware of the critical need for using energy wisely, and conserving whenever possible. After all, the company’s core technology—and ongoing success—depends on a reliable, available, and cost-effective supply of electricity. • Shutting down unnecessary equipment in its labs operation,” he says. “But there are definitely areas where we can make adjustments, and certain systems that we can shut down without any overall impact on the company.” Working closely with Vapor Tech, EnerNOC helped create an overall energy reduction plan for the facility. They began by evaluating the entire manufacturing operation and identifying key power-consuming devices Like many manufacturing operations, Vapor Tech adjusts its production line based on volume requirements and other factors. In short, its manufacturing operation is in constant flux. With EnerNOC for DR, Vapor Tech retains the ability to respond to DR events based on current conditions. “EnerNOC lets us decide what to shut down depending on the day and workload,” says Vapor Tech’s manufacturing facility includes large motors, vacuum pumps, heaters, and other energy-intensive systems. “Energy is definitely one of our largest expenses. So we’re always looking for ways to lower our energy costs,” says Eric Sprague, operations manager. In general, efficient manufacturing relies on keeping production moving ahead at all times. However, Sprague and other Vapor Tech leaders knew that there was flexibility in the manufacturing operations that would allow for temporary shutdown of some of its nine PVD systems and related equipment. “We knew we couldn’t shut down our whole © 2010 EnerNOC, Inc. With EnerNOC, Vapor Tech is able to reduce energy consumption and improve the efficiency of its production operation. Manufacturing With DemandSMART, we know more about how we’re using energy. So we can continue to improve, reduce, and save. Eric Sprague, Operations Manager Sprague. “But there are always areas where we can reduce energy use.” During a demand response event, Sprague and other managers receive notification from EnerNOC via email and phone. They evaluate current conditions, then follow the energy reduction plan to shut down systems manually. PVD systems require as much as one hour to shut down completely, so Sprague and his team move quickly to make changes on the manufacturing floor, shipping and receiving area, labs, and front offices. These changes are temporary, lasting a maximum of four hours during a specific, limited timeframe (9:00 AM to 8:00 PM). So DR events do not affect Vapor Tech’s overall production goals. “We can redistribute work to other areas or shifts without any impact on the company,” says Sprague. Vapor Tech employees know about the company’s participation in demand response, and are supportive of it. “They know that demand response is the right thing for our company to do,” says Sprague. “It earns money for us, and also helps protects the company and the community from power outages.” The Results Temporary changes to its production operation enable Vapor Tech to reduce its energy use by 200 kilowatts, earning annual payments of approximately $5,000 from EnerNOC. These funds go directly to the company’s general operating budget, helping bolster the company’s bottom line in challenging economic times. Initially, Vapor Tech’s reduction goal was 150 kilowatts. However, during initial testing, it What is Demand Response? Demand response provides payments directly to organizations that choose to reduce energy use during times of peak demand. EnerNOC DemandSMART is the industry’s most comprehensive demand response application, allowing our customers to get the most value from their participation in demand response programs throughout the US, Canada, and the United Kingdom. EnerNOC works closely with customers to define customized energy reduction strategies and ensure successful performance during events. EnerNOC absorbs all costs and protects customers from any penalties that can be incurred for not meeting reduction targets. Demand response helps stabilize your region’s energy resources without requiring construction of new power plants—benefiting utilities, their customers, and the environment. became clear that the company could reduce even more. In fact, during recent demand response events, Vapor Tech delivered energy reductions in excess of its 200 kW target. Best of all, these changes happen without any major disruption. “The whole process has gone well,” says Sprague. “We’ve gotten used to what we need to do for DR, and it’s simply become part of the way we work.” The Benefits Vapor Tech benefits from the muchappreciated payments it receives for participating in demand response. But equally important to the company is the fact that DR is a good fit with the overall company commitment to protecting the environment, which starts with the company’s core technology. Physical Vapor Deposition is a much more ecologically friendly method of coating metals than anodizing or electroplating. This commitment to the environment continues via a wide range Want More Information? Vapor Tech is just one of the many innovative organizations that benefits from EnerNOC’s comprehensive energy management applications. To find out more, call (866) 366-7820 or visit www.enernoc.com/get-started. Case Study | Vapor Technologies EnerNOC lets us decide what to shut down depending on the day and workload. But there are always areas where we can reduce energy use. Eric Sprague, Operations Manager of other efforts. For example, Vapor Tech is a member of the American Council on Renewable Energy. And the commitment is ongoing. “We’re always looking for new ways to reduce energy consumption, and to improve the efficiency of our production operation,” says Sprague. EnerNOC brings a range of powerful benefits to the company: Free auditing and monitoring During implementation, EnerNOC installed free monitoring equipment and gave Vapor Tech access to DemandSMART™, EnerNOC’s comprehensive demand response application. DemandSMART enables the company to measure and monitor energy consumption, and identify areas where it could reduce its energy use. “I use DemandSMART during events and also look at it every week,” says Sprague. “In the past, we couldn’t know our electric usage in real time. Now I know exactly how much energy we’re consuming.” Streamlined participation Community support EnerNOC made implementing DR a simple process for Vapor Tech—from enrollment to implementation to testing. “EnerNOC made the whole process simple and smooth,” says Sprague. “It’s all gone very well.” By reducing its use of energy temporarily, Vapor Tech can protect its company, and the surrounding community, from power outages and other issues. As a company that relies heavily on a steady, reliable flow of electricity, Vapor Tech is committed to doing what it can to protect the local energy grid, now and in the future. A no-risk approach Other DR providers impose penalties for underperformance. Not EnerNOC. While Vapor Tech is committed to achieving its target reductions, it also has the flexibility to respond to DR events based on current conditions in its facility—without risk, and without penalties. Responsive personnel “We found EnerNOC extremely easy to work with,” says Sprague. “If I had a question, they were right there with an answer.” As the ultimate vote of confidence, Sprague says he would definitely recommend that other manufacturing operations participate in DR with EnerNOC if at all possible. The Future Working with EnerNOC and Xcel Energy, Vapor Tech continues to look for new areas where it can improve how the company uses and manages energy. The knowledge gained from DemandSMART aids these efforts to make ongoing reductions by providing actual usage data. “With DemandSMART, we know more about how we’re using energy,” concludes Sprague. “So we can continue to improve, reduce, and save.” EnerNOC, Inc. Headquarters EnerNOC Ltd. Headquarters EnerNOC UK Limited Headquarters 101 Federal Street Suite 1100 Boston, MA 02110 Office: 617.224.9900 Fax: 617.224.9910 11-1155 North Service Road West Oakville, Ontario L6M 3E3 Office: 416.461.4678 Fax: 289.291.4001 Alder Castle, 4th Floor 10 Noble Street London EC2V 7JX Office: 0800.520.0303 Fax: (0)800.520.0192 EnerNOC, Inc. is headquartered in Boston, MA, United States, with wholly-owned subsidiaries in Canada (EnerNOC Ltd.) and the United Kingdom (EnerNOC UK Limited). EnerNOC UK Limited is a company incorporated in England and Wales with company number 06937931, VAT number GB980145422 and whose registered office is located at Alder Castle, 4th Floor, 10 Noble Street, London EC2V 7JX. A list of directors is available for inspection at our offices. © 2010 EnerNOC, Inc. www.enernoc.com For a full list of offices, please visit: www.enernoc.com/about/contact.php ©2010 EnerNOC, Inc. All rights reserved. No text can be reprinted without permission.
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