Initiating an Energy Management Program

Timothy Dantoin Senior Engineer July 19, 2011

Energize Missouri Industry Energy Efficiency Forum

Today’s Agenda

• Energy Efficiency in Perspective • Practical Energy Management© • PEM Principles & Tools • Homework….yes, Homework

Energy | Environment 2

| National Security | Health | Critical Infrastructure

© Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. and/or other countries.

Energy in Perspective
Projected Worldwide Consumption
500 450 400 350 300 250 200 245 249 2015 2020 2025 2030 2035

OECD
Quadrillion BTU 84 %

Non-OECD
458

6x
14 %
280

2007

Source: EIA International Energy Outlook 2010

1,000,000,000,000,000
| National Security | Health | Critical Infrastructure

Energy | Environment 3

© Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. and/or other countries.

500 3.S.875 1.500 $/kW 2.254 603 2. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.519 1.250 500 1.467 1.Cost of New Coal Power Plants New pulverized coal capital costs Big Stone II Revised (SD) Springfield (IL) Oak Creek (WI) Cliffside--Duke Revised (NC) Big Stone II Original (SD) Black & Veatch (2006) Council Bluffs (IA) Weston 4 (WI) EPA (2003) Prairie State (IL) EPRI (2004) EIA (AEO 2006) Cliffside--Duke Original (NC) 0 2.667 1.400 1. and/or other countries. All rights reserved.083 1.000 2.504 1.500 2. .680 333 100 1.500 1.000 Source: American Council for Energy Efficient Economy (ACEEE) Energy | Environment 4 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.000 1.280 Generation Transmission Total 1.

Carbon Footprint Energy | Environment 5 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. and/or other countries.S. . SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

and/or other countries. All rights reserved. .S.The Market Place Pepsi Co United Kingdom Energy | Environment 6 United States | National Security | Health | Critical Infrastructure © Science Applications International Corporation. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

. and/or other countries.Efficiency as a Resource Source: Alliance to Save Energy.S. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. All rights reserved. August 2010 Energy | Environment 7 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.

S. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. .Energy Management Continual Improvement Approach • Understand Energy Uses • Generate EE Ideas • Goals Awareness • Support Performance Tracking Gain Approval • Implement Projects to Save $$ Quantify Opportunities • Select Projects • Provide Justification Motivation Communication Planning A purely technical focus goes only so far Energy | Environment 8 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. and/or other countries.

Energy User News. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. “Energy Management Practices Provide Manufacturing Advantage”. All rights reserved. 2002. Energy | Environment 9 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. James A. .S.Characteristics of Effective Programs •Strong leadership & resource allocation •Corporate culture that recognizes value of EE •Sub-metering & internal energy cost allocation •Energy assessment of all capital projects •“On the fly” production adjustments for EE Source: Kamen. and/or other countries.

production) • Energy Taken for Granted (“It works…don’t fix it”) • Lack of Data (about energy use and drivers) • Narrowly Focused (“talk to the facilities guy”) • Lack of Awareness (about opportunities & methods) • Insufficient Resources (finances & staff time) Energy | Environment 10 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. . and/or other countries.Barriers to Effective Programs • Other Priorities (quality. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. All rights reserved.S. safety.

Budget | National Security | Health | Critical Infrastructure © Science Applications International Corporation. . SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. and/or other countries.The Ideal Meets Reality …in Theory • Management Commitment… • Energy Champion… • Energy Policy… • Energy Team… • Measure & Monitor… • Set Energy Savings Goal… • Implement Projects… Energy | Environment 11 …in Practice …Management Concern …Another “Hat” for Someone …Nice Words – No Teeth …Another &*#@ Meeting ! ! …No Payback on Sub-Meters …Based on What ? …No Support • Report & Communicate… …Monthly Actual vs. All rights reserved.

and/or other countries. Lean Mfg.Practical Energy Management • A continual improvement strategy compatible with Six-Sigma. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. ISO 14001. .S. etc. ISO 50001. All rights reserved. • Turnkey package of savings calculators. organizing tools & management strategies • Integrates management & technical aspects of energy management into existing business practices Energy | Environment 12 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.

. and/or other countries.PEM Layout • Management Plan • Facility Profile • Project Prioritization • Project Management • Energy Use Profile • Performance Indicators • Best Practices • Communication & Reporting Energy | Environment 13 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S.

Getting Started • Management Plan • Project Prioritization An organized approach to continually improving your energy management program A systematic method for tracking and ranking individual projects and summarizing overall energy savings and environmental impacts Energy | Environment 14 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. . and/or other countries.S. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

Management Plan = Gap Analysis Energy | Environment 15 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.S. . All rights reserved. and/or other countries. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

gov/index.S. .S.energystar. EPA’s Energy Star Program • Provides program and facility level assessments • http://www.cfm?c=guidelines. Dept of Energy SEN Leaders Tool • Provides assessment against ISO 50001 (March 2011) Energy | Environment 16 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. and/or other countries.guidelines_index • U.Gap Analysis Tools • U. All rights reserved.S.

43% $33. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.180 $2. and/or other countries.14% Natural Gas No.53 0. Costs Total Facility Costs Energy as % TF Costs Annual Profits Propane Energy | Environment 17 Electricity Energy as % of Profits % Increase in Profits with 5% Reduction in Energy Costs | National Security | Health | Critical Infrastructure © Science Applications International Corporation.000 6.000 62.782 $15.858 $2.75% 3.000.52 2006 (Annualized) $2. .76 0.S.46% $3.2 Oil Operating Costs Energy as % Oper.339 $5.000 14.Facility Profile Energy in Business Context Total Btu’s Key Performance Indicators Lbs Resin Electric $ p Lbs Resin Electric MMBtu p Lbs Resin Gas $ p Lbs Resin Gas MMBtu p Lbs Resin Tot Energy $ p Lbs Resin Water $ p Lbs Resin Business Indicators Total Energy Cost 2006 (Annualized) 408.450.500. All rights reserved.29 $0.164.

Equipment Profile Estimating Energy Use Electrical MMBtu Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Energy | Environment | National Security | Health | Critical Infrastructure 18 © Science Applications International Corporation. and/or other countries. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. .S.

SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.5% Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Energy | Environment 19 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. “Free Cooling” Project Save 2.g.Best Practices Finding Opportunities Electrical MMBtu e.S. . All rights reserved. and/or other countries.

S. . SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.Best Practices Calc Sheets • • • • • • • • Comfort Heating Comfort Cooling Compressed Air Dehumidification Fans Hydraulic Lighting Motors Energy | Environment • • • • • • • • Process Cooling Process Heating Pumps Refrigeration Steam/Hot Water Vacuum Ventilation Wastewater treatment | National Security | Health | Critical Infrastructure 20 © Science Applications International Corporation. All rights reserved. and/or other countries.

Project Prioritization Tool (right side) Energy | Environment 21 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. and/or other countries.S. All rights reserved. . SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

.S. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. and/or other countries.Project Prioritization Tool (left side) Energy | Environment 22 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.

Energy | Environment 23 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. and/or other countries. All rights reserved.Energy Performance Indicators y = mx + b R2 = correlation coefficient m = energy per variable unit b = base load Total Energy Use Base Load Variable Load Production Level or Heating D. .S.D. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

000 450.000 R2 = 0.000 550.000 1.000 400.000 then Total kWh = 584.044 of electrical energy per Lb of output Energy | Environment 24 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. .448 • At $0. $0.EnPI Example y = 0.000 Extrusion Output (Lbs) • Total kWh = (0.834 • Or.000 500.200.000 600. and/or other countries.000.000 700.748 kWh • Assume Total Lbs = 1.075 per kWh.000 1.3257kWh per Lb x Total Lbs) + 258.000 650.8449 800.000 600. energy cost = $43.3257x + 258748 kWh 750.000.400.000 1.S. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.

All rights reserved. . and/or other countries.S. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.Communication & Reporting • Engage senior decision-makers • Create energy awareness among employees • Generate support for energy efforts • Stimulate ideas for energy efficiency projects • Ultimately Goal…demonstrate your effectiveness Energy | Environment 25 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.

track and report on energy saving opportunities Effective Energy Team It all starts here Energy | Environment 26 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.S. . All rights reserved.Practical Energy Management ??? ISO 50001 / SEP ??? Senior Management change concern to commitment Management Plan turns gap analysis into specific actions for improvement Prioritization Tool quantify. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. and/or other countries.

Characteristics of Effective Teams • Develop clear action plans that are regularly updated • Address technical & management aspects of energy • Act as opportunities arise • Measure existing conditions & impact of change • Engage other employees as needed • Have effective meetings Energy | Environment 27 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. . and/or other countries. All rights reserved.

e. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. buy-in) Rotate responsibility for new efficiency ideas Do NOT invite vendors to meetings Address continual improvement (i. and/or other countries. 2nd Tuesday) Maintain meeting “pace” (i.g. don’t dwell on one subject) Members define next project task & due date Spread task responsibilities (burn-out vs.e track & communicate) Use laptop & projector for real-time notes & calcs Keep energy use in perspective Energy | Environment 28 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.S. .Effective Team Meetings Meet frequently for no more than 1 hour Set and keep a fixed day and time (e. All rights reserved.

SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. All rights reserved. .S.Team Meeting Minutes Energy | Environment 29 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. and/or other countries.

Project Savings Calculations Energy | Environment 30 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. and/or other countries. .S.

S. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.Keys to Success • Senior Management Concern Commitment • Recognize reality’s limitations (time & money) • Efficient meetings make for Effective Teams • Track & Communicate re: Energy Activities Energy | Environment 31 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. and/or other countries. . All rights reserved.PEM .

SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. is it effective ? • What are the savings from identified projects ? • Develop a EnPI for your company Energy | Environment 32 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved.S. and/or other countries.Homework • Energy is what percent of your operating costs ? • How does your company allocate energy costs ? • Do you assess energy impacts of capital projects ? • Has your company established an energy goal ? • Do you have an energy team. .

000 participants Hands-on implementation series Three sessions over 4 month period Provides implementation “coaching” On-site training customized to jump-start or enhance corporate energy management efforts Ongoing energy management support and energy team facilitation Energy | Environment 33 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. .S.Delivering PEM Half-day Workshop 50 sessions since 2003 Over 1. and/or other countries. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. All rights reserved.

All rights reserved. Energy | Environment 34 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. Utility account manager participation in energy team enhances customer relationship. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. . Better relationship improves customer awareness and understanding of utility pricing and programs. An active energy team improves customers’ energy efficiency performance.S. and/or other countries. realistic framework for energy (and GHG) management.PEM as Utility Customer Service Provides customers with a methodical.

” . and/or other countries. With limited staff time. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. All rights reserved. .Utility Account Manager Energy | Environment 35 | National Security | Health | Critical Infrastructure © Science Applications International Corporation.S. not just pick low hanging fruit. It allows me to be a proactive resource rather than just a messenger of the negative stuff.” .Corporate Services Coordinator “PEM has certainly opened doors with my customers. it gives us the vision and capability to manage a comprehensive energy program.Satisfied PEM Users “We are light years ahead of where we would be without PEM.

Contact Information Tim Dantoin. Senior Engineer Science Applications International Corp Cell: 920-366-3744 Email: dantoint@saic. and/or other countries.com Energy | Environment 36 | National Security | Health | Critical Infrastructure © Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U. .S.

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