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Energy Management
in
Plastics Processing
This page intentionally left blank
Energy Management
in
Plastics Processing
Strategies, targets, techniques
and tools
Third edition 2018

Robin Kent
Tangram Technology Ltd
Elsevier
Radarweg 29, PO Box 211, 1000 AE Amsterdam, Netherlands
The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, United Kingdom
50 Hampshire Street, 5th Floor, Cambridge, MA 02139, United States

Copyright © 2018 Elsevier Ltd. All rights reserved.

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may be noted herein).

Notices
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understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any
information, methods, compounds, or experiments described herein. In using such information or methods they should be
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Printed in the United Kingdom

 Contents
Preface ...................................................................................... 1

1 Introduction to energy management ............................................ 3

1.1 Where we are going........................................................................................................... 4
1.2 The drivers for energy management................................................................................... 6
1.3 The importance of energy costs ......................................................................................... 8
1.4 The efforts, opportunities and obstacles ........................................................................... 10
1.5 Energy management systems – the basics....................................................................... 12
1.6 Energy management systems – the standard................................................................... 14
1.7 Energy management systems – the changing standard.................................................... 16
1.8 Energy management – where are you now?..................................................................... 18
1.9 Financial management – where are you now?.................................................................. 20
1.10 Technical management – where are you now?................................................................. 22
1.11 Awareness and information – where are you now?........................................................... 24
1.12 Purchasing – where are you now? ................................................................................... 26
1.13 Project assessment and selection .................................................................................... 28
1.14 Energy management projects – where are you now? ....................................................... 30
Key tips .................................................................................................................................... 32

2 Energy benchmarking ............................................................. 33

2.1 The framework and energy use drivers............................................................................. 34
2.2 The basic internal site data .............................................................................................. 36
2.3 The effect of management ............................................................................................... 38
2.4 The effect of the process.................................................................................................. 40
2.5 Variations on the site base and process loads.................................................................. 42
2.6 What do we want to do?................................................................................................... 44
2.7 Assessing site performance – internal benchmarking ....................................................... 46
2.8 Assessing site performance – past performance .............................................................. 48
2.9 Budgeting for future site energy use ................................................................................. 50
2.10 Complex sites – multi-variate analysis.............................................................................. 52
2.11 Site SEC and production volume...................................................................................... 54
2.12 External site benchmarking – general............................................................................... 56
2.13 External site benchmarking – injection moulding .............................................................. 58
2.14 External site benchmarking – extrusion ............................................................................ 60
2.15 External site benchmarking – extrusion blow moulding ..................................................... 62
2.16 External site benchmarking – rotational moulding............................................................. 64
2.17 External machine benchmarking – general ....................................................................... 66
2.18 External machine benchmarking – injection moulding....................................................... 68
2.19 External machine benchmarking – injection blow moulding............................................... 70
2.20 External machine benchmarking – extrusion .................................................................... 72
2.21 External machine benchmarking – extrusion blow moulding ............................................. 74
2.22 External machine benchmarking – thermoforming ............................................................ 76
Key tips .................................................................................................................................... 78

3 Targeting and controlling energy costs ........................................ 79

3.1 Understanding energy use – the basics............................................................................ 80
3.2 Understanding energy use – the site energy map............................................................. 82
3.3 Integrating energy into the accounts – monitoring and targeting ....................................... 84
3.4 Data collection and analysis............................................................................................. 86
3.5 Setting targets.................................................................................................................. 88
3.6 Reporting energy costs .................................................................................................... 90
3.7 The energy dashboard report ........................................................................................... 92
3.8 Capital expenditure and equipment selection ................................................................... 94
3.9 Verifying energy savings – the theory............................................................................... 96
3.10 Verifying energy savings – the practice ............................................................................ 98
3.11 The energy manager’s job.............................................................................................. 100
3.12 Targeting and controlling – where are you now?............................................................. 102
Key tips .................................................................................................................................. 104
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 v
 4 Services ............................................................................ 105
4.1 Power supply – electricity terms ..................................................................................... 106
4.2 Power supply – reducing electricity costs........................................................................ 108
4.3 Power supply – transformers.......................................................................................... 110
4.4 Power supply – voltage management ............................................................................. 112
4.5 Power supply – electricity supplier data .......................................................................... 114
4.6 Power supply – analysing interval data........................................................................... 116
4.7 Power supply – sub-metering ......................................................................................... 118
4.8 Power supply – gas........................................................................................................ 120
4.9 Power supply – solar and wind ....................................................................................... 122
4.10 Power supply – combined heat and power and tri-generation (CCHP) ............................ 124
4.11 Power supply – what to do when it fails (power outages) ................................................ 126
4.12 Power supply – where are you now? .............................................................................. 128
4.13 Motors – understanding motor use and costs ................................................................. 130
4.14 Motors – the programme ................................................................................................ 132
4.15 Motors – minimise the demand: turn it off ....................................................................... 134
4.16 Motors – minimise the demand: reduce transmission losses .......................................... 136
4.17 Motors – minimise the demand: reduce the load at source ............................................. 138
4.18 Motors – optimise the supply: get the right size motor..................................................... 140
4.19 Motors – optimise the supply: improve the motor efficiency ............................................ 142
4.20 Motors – optimise the supply: slow the motor down ........................................................ 144
4.21 Motors – optimise the supply: the savings from slowing motors down ............................. 146
4.22 Motors – motor maintenance and management.............................................................. 148
4.23 Motors – where are you now? ........................................................................................ 150
4.24 Compressed air – the system......................................................................................... 152
4.25 Compressed air – the programme .................................................................................. 154
4.26 Compressed air – minimise the demand: reduce leakage ............................................... 156
4.27 Compressed air – minimise the demand: reduce use...................................................... 158
4.28 Compressed air – optimise the supply: improve generation ............................................ 160
4.29 Compressed air – optimise the supply: optimise treatment ............................................. 162
4.30 Compressed air – optimise the supply: improve distribution............................................ 164
4.31 Compressed air – heat recovery..................................................................................... 166
4.32 Compressed air – where are you now? .......................................................................... 168
4.33 Cooling water – the programme ..................................................................................... 170
4.34 Cooling water – minimise the demand: reduce heat gains .............................................. 172
4.35 Cooling water – minimise the demand: increase temperatures ....................................... 174
4.36 Cooling water – optimise the supply: reduce cooling costs with chillers........................... 176
4.37 Cooling water – optimise the supply: reduce cooling costs with cooling towers ............... 178
4.38 Cooling water – optimise the supply: reduce cooling costs with free cooling.................... 180
4.39 Cooling water – optimise the supply: reduce cooling costs with ground water ................. 182
4.40 Cooling water – optimise the supply: reduce distribution costs........................................ 184
4.41 Cooling water – where are you now?.............................................................................. 186
4.42 Drying – the programme................................................................................................. 188
4.43 Drying – minimise the demand: dry the right materials.................................................... 190
4.44 Drying – minimise the demand: store materials correctly ................................................ 192
4.45 Drying – optimise the supply: improve control systems and insulation............................. 194
4.46 Drying – optimise the supply: reduce drying costs with desiccant drying ......................... 196
4.47 Drying – optimise the supply: reduce drying costs with other methods ............................ 198
4.48 Drying – where are you now? ......................................................................................... 200
4.49 Vacuum generation........................................................................................................ 202
4.50 Hydraulics systems ........................................................................................................ 204
4.51 Robots ........................................................................................................................... 206
4.52 Fans .............................................................................................................................. 208
Key tips .................................................................................................................................. 210

5 Processing ......................................................................... 211

5.1 Processing – where are we going?................................................................................. 212
5.2 Injection moulding – where does all the energy go?........................................................ 214
5.3 Injection moulding – the basics....................................................................................... 216
5.4 Injection moulding – machine selection .......................................................................... 218
5.5 Injection moulding – machine monitoring........................................................................ 220
5.6 Injection moulding – process setting............................................................................... 222

vi &RQWHQWV

 5.7 Injection moulding – motors............................................................................................ 224
5.8 Injection moulding – new and retrofitted VSDs................................................................ 226
5.9 Injection moulding – all-electric machines....................................................................... 228
5.10 Injection moulding – heating........................................................................................... 230
5.11 Injection moulding – mould temperature controllers........................................................ 232
5.12 Injection moulding – mould design ................................................................................. 234
5.13 Injection moulding – hydraulic fluid................................................................................. 236
5.14 Injection moulding – IMM energy rating .......................................................................... 238
5.15 Injection moulding – where are you now? ....................................................................... 240
5.16 Extrusion – general ........................................................................................................ 242
5.17 Extrusion – motors ......................................................................................................... 244
5.18 Extrusion – heating ........................................................................................................ 246
5.19 Extrusion – profiles ........................................................................................................ 248
5.20 Extrusion – profiles: calibration and cooling.................................................................... 250
5.21 Extrusion – sheet ........................................................................................................... 252
5.22 Extrusion – blown film .................................................................................................... 254
5.23 Extrusion – oriented film................................................................................................. 256
5.24 Extrusion – other processes ........................................................................................... 258
5.25 Extrusion – where are you now? .................................................................................... 260
5.26 Extrusion blow moulding – general................................................................................. 262
5.27 Extrusion blow moulding – extrusion and blowing........................................................... 264
5.28 Extrusion blow moulding – heating and cooling .............................................................. 266
5.29 Extrusion blow moulding – tops and tails management................................................... 268
5.30 Extrusion blow moulding – where are you now? ............................................................. 270
5.31 Injection blow moulding.................................................................................................. 272
5.32 Injection blow moulding – where are you now?............................................................... 274
5.33 Injection stretch blow moulding – general and moulding ................................................. 276
5.34 Injection stretch blow moulding – blowing....................................................................... 278
5.35 Injection stretch blow moulding – where are you now? ................................................... 280
5.36 Thermoforming – general and pre-heating...................................................................... 282
5.37 Thermoforming – heat losses ......................................................................................... 284
5.38 Thermoforming – heating and cooling ............................................................................ 286
5.39 Thermoforming – where are you now? ........................................................................... 288
5.40 Rotational moulding – general........................................................................................ 290
5.41 Rotational moulding – reducing process heat losses ...................................................... 292
5.42 Rotational moulding – other process improvements........................................................ 294
5.43 Rotational moulding – where are you now? .................................................................... 296
5.44 EPS foam moulding – PCL and steam ........................................................................... 298
5.45 EPS foam moulding – process ....................................................................................... 300
5.46 EPS foam moulding – where are you now? .................................................................... 302
5.47 Compression moulding .................................................................................................. 304
5.48 Pultrusion....................................................................................................................... 306
5.49 Rubber – general ........................................................................................................... 308
5.50 Rubber – storage and mixing ......................................................................................... 310
5.51 Rubber – moulding......................................................................................................... 312
5.52 Regranulation – general................................................................................................. 314
5.53 Regranulation – processes............................................................................................. 316
Key tips .................................................................................................................................. 318

6 Operations ......................................................................... 319

6.1 Operations – making it work ........................................................................................... 320
6.2 Setting, start-up, stand-by and shut-down ...................................................................... 322
6.3 Using interval data in operations .................................................................................... 324
6.4 Tool changeover and quality control ............................................................................... 326
6.5 Training and employee involvement ............................................................................... 328
6.6 The benefits of employee training................................................................................... 330
6.7 Processing operations – where are you now? ................................................................ 332
6.8 Maintenance .................................................................................................................. 334
6.9 Small power equipment.................................................................................................. 336
6.10 Small power equipment – where are you now?............................................................... 338
6.11 Process control .............................................................................................................. 340
6.12 Process control – where are you now? ........................................................................... 342
Key tips .................................................................................................................................. 344

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 vii
 7 Buildings and offices............................................................. 345
7.1 Buildings and offices ...................................................................................................... 346
7.2 Lighting – general .......................................................................................................... 348
7.3 Lighting – controls and maintenance .............................................................................. 350
7.4 Lighting – where are you now?....................................................................................... 352
7.5 Heating – general........................................................................................................... 354
7.6 Heating – controls and maintenance .............................................................................. 356
7.7 Heating – where are you now? ....................................................................................... 358
7.8 Hot water – where are you now? .................................................................................... 360
7.9 Air conditioning .............................................................................................................. 362
7.10 Air conditioning – where are you now? ........................................................................... 364
7.11 Building fabric ................................................................................................................ 366
7.12 Building fabric – where are you now? ............................................................................. 368
Key tips .................................................................................................................................. 370

8 Site surveys........................................................................ 371

8.1 A mini site survey – the energy walk-around (the treasure hunt) ..................................... 372
8.2 Preparing for a site survey – information ........................................................................ 374
8.3 Preparing for a site survey – tools .................................................................................. 376
8.4 Planning the initial site survey ........................................................................................ 378
8.5 Carrying out the initial site survey................................................................................... 380
8.6 Reporting the initial site survey....................................................................................... 382
8.7 Following up the initial site survey .................................................................................. 384
Key tips .................................................................................................................................. 386

9 Carbon footprinting .............................................................. 387

9.1 The basics of carbon footprinting.................................................................................... 388
9.2 Site carbon footprinting – Scope 1.................................................................................. 390
9.3 Site carbon footprinting – Scope 2.................................................................................. 392
9.4 Site carbon footprinting – Scope 3.................................................................................. 394
9.5 Site carbon footprinting – putting the scopes together..................................................... 396
9.6 Product carbon footprinting ............................................................................................ 398
9.7 Country plastics processing carbon footprints................................................................. 400
9.8 Carbon footprinting – where are you now? ..................................................................... 402
Key tips .................................................................................................................................. 404

Appendices .............................................................................. 405

Appendix 1 – Submitting site data ............................................................................................... 406
Appendix 2 – Submitting machine data ........................................................................................ 408

Postscript ................................................................................ 410

Abbreviations and acronyms ......................................................... 411

viii &RQWHQWV

Preface to the 3rd Edition
There have been many technical changes
since the previous edition (2013) of this
workbook and these continue to be both
rapid and wide-reaching. Energy
management and energy efficiency have
continued to move up the management
agenda for plastics processing companies.
However, some processors think that they
have ‘done’ energy management and that
there is nothing more to do. Nothing could
be further from the truth – energy
management is a never-ending journey to
reduce use and costs.
In my work with companies around the
world, it is apparent that there is a real
divide. The companies that are moving
fastest are those in Asia and Latin
America. The reason for this is that the
cost of energy is a ‘world cost’ and does not
vary greatly around the world but the cost
of labour is highly variable throughout the
world. In low labour cost countries, the
energy cost is a very high proportion of
total costs and manager’s actions are
focused by the size of the costs. Many
companies in these areas are now not only
benefiting from low labour costs but also
from reduced energy costs. This is a real
threat to Western plastics processors.
This book provides a structured approach
to energy management and covers the
main topics for plastics processors. It is
designed as a practical workbook and does
not cover all aspects of the topics but
focuses on the key energy issues for each
topic. Each topic is dealt with in a single
two-page spread and most can be read
independently of each other – this is not a
‘cover-to-cover’ book. It should be easily
Preface
understood and the actions recommended
should be easily undertaken by most
people in the plastics processing industry.
Energy management is not ‘rocket science’;
it is good management and engineering.
The are two approaches to reducing the
cost of energy are:
• The ‘£/kWh’ approach which seeks to
reduce the cost of each kWh used.
• The ‘kWh/kg’ approach which seeks to
reduce the amount of energy used to
process each kilogramme of material.
Good purchasing can temporarily reduce
the cost by up to 10% but good engineering
and technology can remove the need to
purchase the kWh – a permanent 100%
saving. This is the approach generally
used in this book.
All data used in this book are real
industry data from plastics processing
sites around the world and has only been
modified to prevent identification of the
sites.
All financial calculations are based on
electricity prices of £0.10/kWh and gas
prices of £0.03/kWh. Cost data are based
on UK prices that are correct in 2017.
I would like to dedicate this edition of the
book to my first grandchild, Lucas Kent,
but now I will have to write more books to
make sure there is no favouritism.
Robin Kent
Hitchin, 2018
rkent@tangram.co.uk
www.tangram.co.uk
Note: Additional resources are available
at www.tangram.co.uk/energy.html.
1
This page intentionally left blank
Chapter 1
Introduction to energy
management
Energy efficiency is still one of the ‘hot’
topics of the 21st century and it is not
going to get any easier in any area of the
world. Many plastics processors are still
trying to come to terms with this new
world but lack guidance on where to turn
and how to make real progress. It doesn’t
matter whether a site is trying to reduce
their energy use to improve their ‘green
credentials’ or simply to reduce their costs
– the issues are the same and the
solutions are largely common.
In the 1990s, energy management was a
‘minority sport’ and it was difficult
attracting industry interest in energy
management. When the first edition of
this book was written (2008) the concept of
energy management was rapidly gaining
credibility but there was still little real
information devoted to the particular
concerns of plastics processors. Energy
costs have now attracted the attention of
every plastics processor and energy
management is rising in importance as a
business issue. However, this book still
remains the sole text on energy
management for plastics processors and is
both widely quoted and plagiarised
throughout the world. Perhaps this should
be accepted as praise for some of the
concepts developed in the First and Second
Editions.
Energy costs are now entrenched as the
third largest variable cost (after materials
and direct labour) and, in many low labour
cost countries, energy is the second largest
variable cost.
This is not a ‘green’ issue, it is not a
‘carbon management’ issue, it is a real
Energy Management in Plastics Processing
https://doi.org/10.1016/B978-0-08-102507-9.50001-5, Copyright © 2018 Elsevier Ltd. All rights reserved.
business issue and in many cases is a
survival issue. Getting energy
management wrong can be fatal to a site.
Energy prices have continued to increase
and the desire to reduce greenhouse gas
emissions has become even more critical
(and political). Both factors have raised
the profile of energy management in the
plastics processing sector and this has
prompted many sites into action. However,
all too often the efforts have been poorly
directed or ineffective. Sadly, this has led
to some sites abandoning their efforts to
improve energy management when the
basic techniques are very simple and
easily applied. Where sites have been well
informed and have diligently applied the
basics then the results have been
exceptional – energy use reductions of 30%
are not uncommon and some sites have
achieved even greater reductions. Simple
techniques can have dramatic results.
This chapter looks at energy management
in the broad sense so that use and cost
reduction efforts can be effectively
targeted. It is designed to provide the
essentials of the management framework
for energy management.
Readers should not be tempted to rush
into the practical engineering aspects of
energy management without first
understanding the management
framework.
‘I am not a tree-hugger’.
Jonathan Churchman-Davies
3
1.1 Where we are going
The destination
Most plastics processing sites want to
reduce energy use and costs and most
have also made some efforts in this
direction. The problem is that most sites
do not have a structure for these efforts or
any method of assessing the value of the
ideas that they may have to reduce energy
use. They also have no methods of
assessing performance of either the site,
the machines or the projects that they do
carry out.
The results are:
• They cannot tell how efficient they are
already (at either the site or machine
level).
• They have no method of monitoring and
targeting performance or they measure
the wrong things.
• They carry out projects with no idea if
these projects are the best for the site.
• Their main sources of advice are either
suppliers who want to sell their products
or consultants who do not know the
processes.
These sites then wonder why their efforts
did not deliver significant benefits and
they lose motivation to continue because it
is ‘too hard’.
The reality is that it is not too difficult for
most plastics processors to reduce energy
use by up to 30% within a period of 2–3
years even though there are still sites who
proudly proclaim that they intend to
reduce energy use by 5% in the next year.
The major problem is that they know that
they want to reduce energy use but they
really have no idea of the steps that they
have to take to get there. They set off on
the journey with no real planning about
where they want to go, how they are going
to do it and how they will measure their
progress (if any).
Some sites install an ‘energy management
system’ in the hope that this will reduce
energy use, some install complex
measuring systems, some install high-tech
equipment and some appoint an ‘energy
manager’ without giving them either the
time or resources to actually do the job. All
of these partial and disjointed measures
will inevitably fail. Some will fail more
miserably than others, but all will fail.
4 Chapter 1 – Introduction to energy management
Before starting the journey to reduce Energy
energy use, every site needs a plan (a management could
easily be the
road-map) to define where they are and
deciding factor in
where they want to be. The figure opposite
whether your
shows the major areas, the processes and
company survives
tools used, the benefits from using the or not.
processes and tools and the overall results
of a good energy management system.
• Tip – Some sites install ISO 50001 (see
Section 1.5) and then wonder why the
energy use does not automatically
decrease. These are often the same sites
who install ISO 9001 and wonder why
quality does not automatically improve.
This is about the whole
company
A major issue is that energy is still
sometimes seen as a ‘bolt-on’ to the other
operations of the company. It is seen as a
‘good thing’ for the bad times but optional
in the good times. The reality is that
‘energy management’ needs to permeate
the complete operation of the company. It
is not a ‘production’ issue, it is a
management issue.
The road-map
The road-map identifies the range of skills
and activities necessary to reduce energy
use and even this is limited by space. The
road-map shows the type of things that
you will have to do to achieve meaningful
reductions in energy use and cost. It is not
simply about management systems or any
other single thing. Specifically, it is not
only about production. It is about the
whole company and it is about a mind-set
that says ‘reducing energy use and costs is
for everybody’ and that we are all
responsible.
The road-map covers all areas of a
company’s operations from the
management focus, people (and their
training) through services, processing,
operations, buildings and offices and how
new profitable projects are identified and
prioritised. Effective energy management
impacts every aspect of a company’s
operations. This is not for the faint-
hearted but the rewards are more than
worth the effort.
• Tip – None of the actions in the road-
map are ever completed. Get used to
continual improvement.
The energy road-map
Improving energy management is not difficult but it needs a road-map of the available processes, tools and
actions to deliver the best results.

Chapter 1 – Introduction to energy management 5

1.2 The drivers for energy management

Changing times – changing Energy costs change on a daily basis but ‘The starting point
issues there is no reason to believe that they will for (UK) energy
decrease dramatically in the near future policy is to save
The plastics processing industry in the and every reason to believe that they will energy. It is often
developed world is highly focused on the the cheapest way
remain unstable for the foreseeable future.
cost of labour and sees the growth in for reducing carbon
Taxation emissions,
volume of imported products as being due
certainly in the
purely to the ‘lower labour costs of The concerns with global warming have short term. It can
overseas suppliers’. In a previous book1, I led governments across the world to also contribute to
looked at cost management and stated impose rising taxes on energy use. These security of supply,
that the real issue was the change in the are financial instruments designed to for example by
cost structure in plastics processing. It reducing our need
internalise the effects of manufacturing on
was not as simple as ‘lower labour costs’. for energy imports,
the environment. Previously industry was and reduce fuel
The reality is that labour costs are now, free to use resources and was not poverty through
and always have been, a minor component concerned with the societal impacts. These lower bills.’
of the overall cost of most plastics are now being internalised by legislation
UK Energy White
products. The costs of materials and and taxation that raise costs. Paper (May 2007).
overheads are far more important in the
Supply shortages
total product cost, but Western industry
still focuses overwhelmingly on the labour One major reason for historical energy
cost even as the overheads rise inexorably cost increases was the high dependency of
and the cost of energy approaches, or power generation on oil- and gas-based
exceeds, the cost of direct labour. power stations but this has been mitigated
by the ‘fracking revolution’ and this has
The approximate relative importance of
stabilised oil and gas prices to some
the costs and the efforts that we spend are This misdirection of
extent. Despite this, the world is still our efforts
shown on the right. These may not be
suffering from oil and gas resource continues to cost
exactly correct for your site but they won’t
depletion. In small words – the easily money and waste
be far out – we are directing the efforts in resources.
accessed supplies are rapidly running out.
the wrong places and then simply seek to
blame lower labour costs.
In the East, however, they have already
realised that the cost of energy is higher
than the cost of labour and some of the
most energy-efficient sites in the world are
already in the East. This means that in
addition to a labour cost advantage, they
are also rapidly being assisted by an
energy cost advantage.

Financial and operational

Rising costs
Energy costs have risen dramatically in
the last 15 years and this is the primary
driver for increased interest in energy
management. These rises have now
levelled off to some extent as a result of
geopolitical events but the world is only
one misstep away from dramatic
increases. It would be nice to think that
the plastics processing industry is driven The cost sources and where our efforts go
by a desire to be ‘greener’ but the way to
attract attention in business is to affect Labour represents only about 10% of the cost of the product but
the financial results and the increased the majority of our efforts still go into reducing the cost of direct
cost of energy has attracted attention in labour. 75% of our efforts are in reducing labour costs and only
the plastics processing industry. 15% in reducing overhead costs.

6 Chapter 1 – Introduction to energy management

This does not mean that we are the environmental impact of operations. Carbon
necessarily running out of oil or gas – The concept of a ‘carbon footprint’ is Footprinting
although this may be true. It simply becoming more relevant and customers
The process of
means that the sources we are using now (particularly consumer-oriented retailers) carbon footprinting
need more expensive technology to extract are beginning to demand information not and establishing
the oil and gas than the easily accessible only on the carbon footprint but also on the carbon
sources that were available in the past. action being taken to reduce this. emissions of a site
This is not simply a concern for the West, is rapidly becoming
Reducing energy use through effective
it is also a concern for sites all over the more important.
energy management is a method of This is more fully
world. Energy is a world market and, reducing the carbon footprint and dealt with in
whilst there are local variations, the cost improving the corporate social Chapter 9.
of energy is essentially a global cost – sites responsibility of any organisation.
all over the world are facing the same
issues.
In some areas the concern is not just with
supply shortages in terms of the raw • 1. Kent, R.J. 2017. ‘Cost Management in
materials but with supply shortages in Plastics Processing’, Elsevier.
terms of the distribution network. In some
rapidly developing Asian countries, the
rate of expansion is so high that there are
difficulties in providing the necessary
supply network from the power stations to
the users and this is creating a supply
shortage at the point of use.
Security of supply
The supply shortages are also driving the
development of energy supplies from areas
of the world that suffer from supply
insecurity, either in terms of poor
infrastructure development or in terms of
national security issues from external or
internal threats at the source or in the
transport of the supply. It is no longer
possible to consider energy supplies from The benefits of energy management
many countries as stable and permanent. Energy management delivers reduced costs and improved profits
Environmental for a site as well as improving working conditions at the site and
reducing the environmental impact (the carbon footprint) of the
CO2 emissions site.
Most plastics processors pretend that they
do not emit CO2 and will happily state
that their CO2 emissions are zero. The The new words:
reality is that plastics processing uses Global warming.
electrical energy and this is generated by
Greenhouse effect.
power stations that emit CO2 on the
processor’s behalf (unless they use nuclear Carbon management.
or other renewable power sources). The
Carbon footprint.
fact that the CO2 is emitted at some
distance from the processor is irrelevant Sustainability.
in terms of the environmental impact. Life-cycle analysis.
It is undeniable that CO2 levels are rising
Corporate social responsibility.
and that climate change is real. Efforts to
reduce CO2 emissions will continue and Stakeholders.
this means that energy management will
Energy efficiency.
become increasingly important.
It doesn’t matter if you believe in any of these.
Corporate social responsibility
It doesn’t matter if you believe in ‘anthropogenic global
Industry is slowly accepting that corporate
warming’ (man-made climate change).
social responsibility and simple good
public relations require action to reduce Motives don’t matter – survival does.

Chapter 1 – Introduction to energy management 7

 Energy management

Information
Level Energy policy Organising Motivation Marketing Investment
systems

Energy policy, Energy Formal & informal Comprehensive Marketing of Positive

action plan & management fully channels of systems set energy efficiency discrimination in
regular review integrated into communication targets, monitor & energy favour of 'green'
have commitment management regularly exploited consumption, management schemes with
of top structure. Clear by energy identify faults, performance both detailed
4 management as delegation of manager & energy quantify savings & internally & investment
part of an responsibility for staff at all levels. provide budget externally. appraisal of all
environmental energy tracking. opportunities.
strategy. consumption.

Formal energy Energy manager Energy committee Monitoring & Programme of Same payback
policy, but no accountable to used as main targeting reports staff awareness & criteria employed
active commitment energy committee channel together for individual regular publicity as for all other
from top representing all with direct contact premises are campaigns. investments.
management. users, chaired by with major users. based on
3 a member of the sub-metering, but
managing board. savings not
reported
effectively to
users.

Unadopted energy Energy manager Contact with major Monitoring & Some ad-hoc staff Investment using
policy set by in post, reporting users through ad- targeting reports awareness short-term
energy manager or to ad-hoc hoc committee based on supply training. payback criteria
senior committee, but chaired by senior meter data. only.
departmental line management departmental Energy unit has ad-
2 manager. & authority are manager. hoc involvement in
unclear. budget setting.

An unwritten set of Energy Informal contacts Cost reporting Informal contacts Only low-cost
guidelines. management is between based on invoice used to promote measures taken.
the part-time engineering staff & detail. energy efficiency.
responsibility of a few users. Engineer compiles
someone with reports for internal
1 limited authority or use within
influence. technical
department.

No explicit policy. No energy No contact with No information No promotion of No investment in

management or users. system. energy efficiency. increasing energy
any formal No accounting for efficiency.
delegation of energy
responsibility for consumption.
0 energy
consumption.

Score x x x x x x

Chapter 1 – Introduction to energy management 19

1.9 Financial management – where are you
now?
Without money it won’t happen standard investment hurdles and analysis The financial
that are in place at most sites. The main aspects of
Energy management is the same as any investment in
concern is that energy management
other project or process – starve the energy
receives the appropriate level of funding
process of the appropriate investment and management are
for the benefits that it can deliver. also covered in
it will fail. All projects, even nominally no-
cost and low-cost projects need investment Chapter 3.
Completing the chart
in staff time and much progress can be
This chart is completed and assessed as
made in these areas.
for the previous chart.
Eventually, the process will require
financial investment of some magnitude
and this must be justified before progress
can be made.
Energy management does not require
preferential funding. Most energy
management projects can easily meet the

Financial management

Identifying
4

Project
2 Exploiting
funding

Management
Human
information
resources
systems
Areas of
disagreement may
show that there is
something
happening at the
Appraisal site that is not well
known, i.e., the
methods Finance function is
actually keeping
records but is not
Use the scoring chart to assess where you are in financial management telling the
Production function
The numbers from the scoring chart can be transferred to the radar chart for a quick visual that they are doing
assessment of where you are in the basics of financial management. so.

20 Chapter 1 – Introduction to energy management

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