Implementation of xem for Emissions Management at a Petrochemical Company. David Ocamb, NOVA Chemicals CISUG Conference 18 April 2006

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1 Implementation of xem for Emissions Management at a Petrochemical Company David Ocamb, NOVA Chemicals CISUG Conference 18 April 2006

2 Page 2 Agenda - Corporate Profile & Commitment to Environment - Data Management Challenges - Criteria for System Selection - Project Overview - Scope of Implementation - Return on Investment - Key Learnings - Decisions Required Prior to Implementation

3 Page 3 NOVA Chemicals Corporate Profile - Leading plastics and chemicals manufacturer of ethylene, polyethylene, styrene and polystyrene plastic resins - Markets include consumer and industrial products such as food and consumer packaging, grocery bags, television cabinets, computer/printer packaging, storage drums and medical devices, etc. - Canadian company with manufacturing facilities in Canada, Chile and the USA. - NOVA Chemicals shares trade on the Toronto and New York stock exchanges under the trading symbol NCX - As a member of Canada s Chemical Producers Association and the American Chemistry Council, NCX is a founding member of the Responsible Care initiative and is committed to being an industry leader in environmental protection, health and safety.

4 Page 4 NCX s Commitment to Environment 1. Minimize the potential environmental risks associated with products during their lifecycles 2. Conserve resources 3. Minimize emissions and waste 4. Proactively manage emerging environmental issues 5. Achieve a sustainable competitive advantage through the effective use of technology to address environmental issues

5 Page 5 Data Management Challenges - Limited opportunity to align emission calculations for common sources and equipment - Numerous data collection and emission calculation tools - Calculation tools are PC-based and located at each site whereby limiting who can access the tools and results - Quality assurance and control - Cycle time Air emissions data generation aligned with regulatory reporting (e.g., NERM/NPRI, TRI reports) due mid year - Current process is resource intensive - Personnel Management of Change

6 Page 6 Criteria for System Selection - Interface to and receive continuous and batch data from various sources and on various time periods. - Calculate emissions for both batch and continuous processes - Access and use multiple linked calculations - Access data at multiple points through the process - Utilize an equations library - Model/forecast emissions in a scenario driven fashion (i.e., more sophistication than simple ratio estimates) - Be able to report on both the calculation inputs and and emissions output - Be able to compare actual emissions to permit limits - Generate tasks through on a specific period for manual inputs

7 Page 7 Criteria for System Selection - Archive historical data and calculations/methodologies with version control - Roll-up and manage data enterprise wide, plant wide, or by individual equipment or equipment types - Generate on-demand, ad-hoc, regulatory & electronic reports - Conduct quality assurance on the data - Provide a verifiable audit trail - Have a configuration overview of equipment, calculations and materials for verification. - Tool usable and understandable by Environmental Practitioners it should NOT be an IT tool.

8 Page 8 Project Overview - Reviewed xem Version 1.0 in 2004 with a pilot project - xem Version 2.0 was evaluated and selected in January Business and technical specifications for a company wide rollout were developed in March September - First site was implemented October December Upgraded to Support Pack 5 in February Plan to implement at 7 plants in Alberta by June 2006 and 4 plants in Ontario and/or US by December 2006

9 Page 9 Scope of Implementation - xem Calculation engine for air emissions - EH&S Specification Database for Materials and Units of Measure - Adobe Document Services form based regulatory and audit type reporting provided thru xem by TechniData - Business Warehouse for ad hoc queries, and columnar reporting of emissions - Enterprise Portal for single sign-on and presentation to the end user - Interfacing tools for automation of input data from Process Historians, Leak Detection Systems (LDAR software), Financial Systems and Lab Information Systems (LIMS)

10 Return on Investment Page 10 - Combine the input, calculation and storage of air emissions data into a single source system (xem) - Improve cycle time in generating emission information for internal and external stakeholders - Provide audit trails and improve accessibility of supporting documentation to improve credibility - Improve reporting capability for site and global needs - Develop consistent practices across the company, where practical and appropriate - Allow site practitioners to focus on higher value work, by managing the data in a global system - Reduce redundant efforts obtain data from the source - Realize fixed costs reduction for enterprise-wide environment team

11 Page 11 Key Learnings - Knowledge transfer to internal Business and IT staff have resulted in a sustainable implementation team that can be self-sufficient for the full rollout - The first implementation will challenge business and technical standards and practices, which may need to be revisited later as the company learns more about how to implement - xapp implementations involve new architecture and skills in IT as compared to SAP R/3 systems review your architectural framework before implementation

12 Decisions Prior to Implementation Page 12 - Decide on how to best organize the company hierarchy from the parent corporation down to the individual equipment component (as required) - Assess the ways to summarize the results (e.g., emissions by equipment type, by location, by legal entity, by regulatory body, by product, etc.) - Develop the strategy on equations will different equations be defined for each plant? each equipment? Will common equations be used company-wide? - Determine the level at which emissions will be calculated (e.g., by group or individual equipment) - Decide on the default frequency calculations will be executed hourly, monthly, yearly?

13 and more decisions - Decide on the reporting tool Business Warehouse? Adobe? Enterprise Data Warehouse? Other Corporate reporting tools? Page 13 - Identify all data that will require reporting (calculations input and output data) and by what criteria - Determine how to manage common inputs (e.g., chemical physical properties) - is there a single source to utilize and can one common property value be used for all sites? - Identify the source of input data and how to interface directly to it (e.g., manual entry, plant historian, etc.) - Develop naming conventions for equipment, calculations, materials, parameters, source categories, etc. - Decide how to complete manual entries of data (e.g., task vs. direct entry)

14 Questions? Page 14