1.0 INTRODUCTION BACKGROUND OPERATION AND BUSINESS PROFILE ELECTRICAL SYSTEMS & METERING THERMAL...

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1 CONTENTS PAGE 1.0 INTRODUCTION BACKGROUND OPERATION AND BUSINESS PROFILE ELECTRICAL SYSTEMS & METERING MAXIMUM DEMAND (MD) MAXIMUM IMPORT CAPACITY (MIC) NIGHT CONSUMPTION POWER FACTOR STANDBY GENERATION THERMAL CHILLERS & COOLING TOWERS ENERGY MANAGEMENT AND REPORTING SYSTEMS POLICY RESPONSIBILITIES FOR ENERGY MANAGEMENT MONITORING AND TARGETING STAFF INVOLVEMENT/TRAINING (ENERGY EFFICIENCY AWARENESS) WATER POTENTIAL ENERGY SAVING TECHNOLOGIES ENERGY SAVING TECHNOLOGY CHECKLIST ENERGY SAVING TECHNOLOGY DETAILS Good Energy Housekeeping Training Lighting Space and Process Heating VSD's and Soft Starters Monitoring and Targeting (M&T) Winter Peak Demand Reduction Shceme WPDRS Utility Tariff Optimisation Electrical Compressed Air Combined Heat and Power (CHP) Pinch Analysis Pipe Heat Losses Performance Indices...20 APPENDICES APPENDIX A Fig. A1. Historical Maximum Demand Vs Maximum Import Capacity

2 Fig. A2. Historical Electricity Consumption Fig. A3. Historical Heavy Fuel Oil Consumption Fig. A4. Historical Water Consumption APPENDIX B Fig. B1.Electricity Demand for Compressor No Fig. B2. Electricity Demand for Compressor No. 6 (VSD Controlled) Fig. B3. Electricity Demand for Chillier No APPENDIX C Fig. C.1. Energy Efficiency Utilisation APPENDIX D Compressed Air Audit Synopsis

3 SUMMARY OF ENERGY SAVING MEASURES Energy Survey Summary Customer Reference: Baxter Healthcare Our Reference: ES/LGM/Baxter/ScopingSurvey Survey Date: 9 th & 10 th September 2004 Personnel Brian Scannell and Paul Ryan (Energy Services Ltd.) carried out the scoping survey on behalf of LGM Ireland Ltd. Ger Murnane and Ciaran Geraghty attended on behalf of Baxter. Customer Details Address: Baxter Healthcare SA, Moneen Road, Castlebar, Co.Mayo. Telephone: Fax: Contact: Total CO 2 Emissions: ciaran_geraghty@baxter.com Ciaran Geraghty 39,341 tonnes per annum Main Electrical Consumption Details Existing Tariff: Energia Medium Voltage Annual Consumption: Average Unit Price: Night Usage: 36% Maximum Demand: 25,926,634 kwh 6.78c/kWh Load Factor: 66.6% 4452 kw (4686kVA) Current Annual Spend: Euro 1,757,288 Maximum Import Capacity: Electrical CO 2 Emissions: 4500 kva 20,113 tonnes per annum Main Thermal Consumption Details Supply Heavy Fuel Oil Annual Consumption 6,152,985 litres (70,267,088 kwh) Current Annual Spend: Euro 1,283,663 Average Unit Cost Average Thermal Demand: Estimated MD at 0.8 LF: 1.83 cent/kwh 8,021 kw Electrical : Thermal Consumption Ratio 1:2.7 10,026 kw 3

4 Thermal CO 2 Emissions: 19,227 tonnes per annum 4

5 1.0 INTRODUCTION Energy Services Ltd. (on behalf of LGM Ireland) conducted an energy survey of the Baxter plant in Castlebar, to broadly quantify energy usage, and provide direction as to in which areas the major opportunities for energy savings might exist. The survey was driven primarily by Baxters requirements for their IPC licence outlined by the EPA. 1.1 BACKGROUND Baxter Healthcare is a subsidiary of Baxter Inc. which is the leading healthcare company in the world. Baxter Inc. employs 35,000 people worldwide, has sales in excess of US$6b and its shares are quoted on the New York stock exchange. Baxter is a leader in medical products and has developed leading technologies including intravenous solutions, artificial kidneys, continuous ambulatory peritoneal dialysis and blood substitutes. 1.2 OPERATION AND BUSINESS PROFILE Baxter established its Ireland Manufacturing Operation in 1972 and now employs approx people at the state of the art manufacturing plant in Castlebar, Co. Mayo. The Castlebar plant produces a range of medical solutions for Continuous Ambulatory Peritoneal Dialysis (CAPD) and for drug administration purposes. The products are exported to global markets including Europe, US and Japan. 5

6 2.0 ELECTRICAL SYSTEMS & METERING The plant is metered at 10kV medium voltage and is currently supplied by Energia. Annual electricity consumption at the site is in the region of 25.9GWh which equates to an annual spend of some 1,757,288. The Maximum Demand (MD) recorded in July 2004 last was 4,452kW (4,686kVA). Night consumption represents 36% of the total load. The monthly electricity consumption profile can be seen in Fig.2 Appendix A. A noticeable increase occurs during the summer months which is most likely the result of increased cooling requirements. 2.1 Maximum Demand (MD) Fig.1 in Appendix A shows the monthly electricity demand in kva over the past 12 months. The highest demand recorded during this period was 4,452kW (4,686kVA) which occurred at 11.00hrs on 7 th July. The MD should not exceed the Maximum Import Capacity level or penalties will be incurred. 2.2 Maximum Import Capacity (MIC) Demand customers who are charged on Tariff Schedule DTS-D (i.e. Baxter) have a contracted MIC value established in their connection agreement. An MIC value is important because it generally represents the extent to which the transmission network has been designed to serve the customers and places an upper limit on the total demand that a customer can place on the network. It therefore should be high enough to meet the customers needs. Since Transmission Use of System (TUoS) charges and Distribution Use of System (DUoS) are based on each customers MIC value, an MIC value in excess of a customers needs will result in that customer incurring higher capacity charges than necessary. Conversely if the MIC is set too low and a customer exceeds the agreed MIC then unauthorized usage charges will be applied in order to reflect that the network has not been designed to meet these levels and to discourage use above the MIC. 6

7 The current MIC level of 4,500kVA has been marginally exceeded in recent months (See Fig.1 Appendix A) and as such unnecessary penalty charges have been incurred. In order to avoid these penalties Baxter could apply to increase the current MIC level. However a more energy efficient and cost effective method would be to monitor and control the electricity demand more closely and ensure that the MIC level is not breached in the future. A Demand Manager can be easily installed to control random or sequenced nonessential loads. The unit can be preset to automatically shed non-essential loads during the periods of peak demand, thereby ensuring that no penalties are incurred. 2.3 Night Consumption Night Consumption costs on the current Energia tariff (and the previous ESB PES tariff) are substantially less than day unit costs. A totally flat consumption profile would obtain 37.5 % night consumption (normally one would expect the night load to be less than this). The quantity of night units consumed on the Castlebar site over the past 12 months was around 36%. However there could be scope for switching off some electrical equipment which is not in use during the night-time period (11pm-8am). Further investigation is required to determine what loads (if any) remain on unnecessarily during the night. 2.4 Power Factor Low Power Factor (PF) surcharges, sometimes referred to as reactive or wattless charges are applied to kilo-volt-amperes-reactive-hours (kvarh) in excess of one third of kilo-watt-hours (kwh) in the billing period. Baxter has installed power factor correction equipment at various locations throughout the site to compensate for the reactive power produced in the plant. Baxter are not incurring any power factor penalties at present. 7

8 2.5 Standby Generation There is one 500kVA electricity generator on site which is used in the event of a failure in mains electricity supply to the plant. The unit ensures a continuous supply of electricity to the EPOMAX production facility in the event of an outage to ensure product in the EPOMAX area does not become contaminated. The generator is synchronised with the grid but is currently not used for any peak shaving / lopping or winter demand reduction schemes. Peak shaving, and other demand reduction measures such as Powersave or the Winter Peak Demand Reduction Scheme (WPDRS) could be quite lucrative and the potential merits further investigation. 3.0 THERMAL Heavy Fuel Oil is currently used as the fuel for the steam boilers. Annual consumption of almost 6,152,985 litres (equates to 70,267,088 kwh) costs Baxter in the region of 1.28 million per annum. There is currently no natural gas supply to the site; however this may change in the near future. By converting from heavy fuel oil to natural gas Baxter could reduce the plants CO 2 emissions by over 5,000 tonnes annually. Average thermal demand at the plant amounts to 8,021kW. Taking a load factor of 80%, this equates to a max thermal demand of 10,026kW. As the electrical maximum demand is 4,452kW, it appears from initial observations that the Baxter plant would be an ideal candidate for Combined Heat and Power (CHP). The boiler room was noticeably quite warm during the survey as a number of valves and flanges are uninsulated. It is worth noting that an uninsulated valve is the equivalent of 1m of unlagged pipework. The details of each of the four boilers can be seen in the tables below: 8

9 Boiler No.2 Make B & E Boilers Ltd. HYD Pressure 247 PSI Working Pressure 150 PSI Serial No Model European Burner Hamworthy Boiler No.3 Make Babcock Robey Ltd Design Pressure 160 PSI Working Pressure 150 PSI Serial No Model Burner Boiler No.4 Make Lincoln Hamworthy Sernior Thermal Ltd Design Pressure 160 PSI Working Pressure 150 PSI Serial No. C Model Steampacket Burner Hamworthy Boiler No.6 Make Design Pressure Heat Output Burner Wellman-Robey 9 BAR kw Hamworthy Boiler No.4 is the lead boiler and satisfies the 70% of the thermal demand of the site. However maintaining the plant heat requirements is critical to production. As such the three smaller boilers are maintained on hot standby 9

10 so that in the event of a problem occurring with the lead boiler, the smaller units can continue to supply the plant with adequate heat to ensure that production is not affected. Figure 3 in Appendix A indicates the monthly oil consumption over the past eighteen months. Some seasonal variations can be seen with a slight reduction in consumption over the months June to August. Flue gas temperature on the day was measured in excess of 200 C. It is estimated that up to 50,000 litres of hot water (~85 C) goes to drain on a daily basis. Significant savings can be made by recovering these high grade heat source. Further investigation is required here but it should be possible to recover much of this heat. 3.1 Chillers & Cooling Towers A number of chillers and cooling towers are used around the plant to provide cooling and to remove heat from the plant. During the survey Energy Services installed a portable power monitor on Chiller No.2 located in Transformer Room No.5 (It is worth noting at this point that the room was noticed to be very warm on the day as room ventilation appears to be inadequate). The electrical demand profile of the chiller can be seen in Fig.3 Appendix B. Controls and set-points for each of the cooling towers and chillers should be checked to ensure that unnecessary cooling/chilling does not occur. Potential for VSD s on the cooling tower fans and pumps should also be investigated. 10

11 4.0 COMPRESSD AIR There are four Atlas CopCo, oil free, water cooled air compressors on site, details of each are listed below: Manufacturer Model kw FAD (l/s) No.1 Atlas CopCo ZR37 37kW 91 No.3 Atlas CopCo Data Unavailable on the Day No.4 Atlas CopCo ZR No.6 Atlas CopCo ZR 160 VSD On the day of the survey compressor No.4 was operating as the lead compressor. Energy Services installed portable power monitoring equipment on the unit over a 24 hr period (Appendix B, Fig.1). As can be seen from the graph this unit remained on full load throughout the recording period. Compressor No.3 was also operating on full load during the survey. Compressor No.6 with the Variable Speed Drive (VSD) ramped up and down depending on the demand for air. The electrical demand of this unit was also monitored by Energy Services (See Fig.2 Appendix B). The installed Primary air receiver capacity at the Baxter plant is currently 7760litres which is inadequate based on the free air delivery (FAD) of the compressors which could be causing unnecessarily frequent cycling of the air compressors. Minimum primary air receiver capacity should be in the region of 10,000 litres. A large quantity of heat is being generated within the compressor room by the compressors themselves. At present this heat is drawn outside by means of extract fans in the roof. Further investigation is required to establish the potential for heat recovery within the room. In addition the dryers are air cooled which further adds to the rooms temperature. For every 4 C drop in ambient air temperature the efficiency of the compressors can be improved by 1%. 11

12 Air pressure is being generated at approx 7.9bar. However it is believed that max pressure required in the building is in fact below this level. The higher generating pressure could be due to the misconception that large quantities of air are required in the building and by generating at a higher pressure more air is stored in the receiver and associated pipework in the event of a high sudden demand. While this may assist during periods of high air demand, a more energy efficient solution would be to conduct a pipe adequacy analysis or alternatively increase the receiver capacity. Over 7% improvement in efficiency can be obtained by reducing generating pressure by just 1 bar which equates to annual savings in the region of 20,000. Baxter recently undertook a compressed air audit which identified a number of areas where potential exist for energy cost savings. The table below outlines the findings of the audit: Measure Potential Anticipated Simple Annual Savings Capital Costs Payback Air Dryers 6.5 k 40 k 6 yrs Sequence Controller 18k 27k 1.5 yr Air Receiver Capacity 10k 13k 1.2 yrs A synopsis of the audit can be seen in Appendix D. 12

13 5.0 ENERGY MANAGEMENT AND REPORTING SYSTEMS 5.1 Policy There is a good awareness of energy production and energy costs on site at management level. Specific energy programs have been in place for several years. 5.2 Responsibilities for Energy Management Energy Management responsibilities are well defined on site. The Energy Manager is responsible for the overall data collection, handling and collation of the data, and for managing and controlling energy as a resource. The Energy Manager is also responsible for the investigation, sourcing and monitoring of energy related projects. 5.3 Monitoring and Targeting The existing M & T system at Baxter is used in conjunction with a Trend Building Management System (BMS). There are several areas throughout the site that would benefit from inclusion within the monitoring system. The system in place is capable of extension to cater for additional electricity loads and other energy streams including oil, steam and water. An extension of the system, to include other energy streams will give Baxter a much improved insight into the total site energy usage. Normalised Performance Indexes could be established to correlate energy usage per unit of product and flag exceptions to predicted trends for investigation. In turn, this should identify, through appropriate reports and benchmarks, opportunities to make energy cost and resource reductions. 13

14 5.4 Staff Involvement/Training (Energy Efficiency Awareness) There is awareness at Baxter that a number of small low cost energy savings can quickly amount to significant total savings. Further staff training would enhance efforts to reduce on-site energy consumption. Baxter should initiate an in house good energy house keeping policy for all staff. The idea behind such a policy would be to raise the consciousness of the staff. A small contribution from staff towards energy awareness can contribute greatly to the overall efficiency in general. The details of the policy can be agreed depending on Baxters requirements but should involve all the staff in the campaign. This low cost measure will result in reduced energy costs and therefore better overall efficiency. This policy will also refer to any future works or refurbishment s carried out. The policy would specify that any works undertaken would use energy efficient technologies as much as possible. 6.0 WATER Baxter currently draws water from the county councils main supply. Over the past twelve months the plant has used some 142 million gallons at an annual cost of 284,703. Baxter should investigate the potential for sourcing water locally by means of an on site well. Further investigation is requirted to determine the quality and quantity of water available in order to justify same. 14

15 7.0 POTENTIAL ENERGY SAVING TECHNOLOGIES 7.1 ENERGY SAVING TECHNOLOGY CHECKLIST Technology Applicable Not Applicable Air compression heat recovery Air compression precooling Modular Compressor Sequencing CHP Condensing boilers Heat recovery regenerators Heat recovery recuperators Monitoring & Targeting Variable Speed Drives Building management systems Efficient luminaries Low energy computers UPS for computer systems Modular boilers Passive solar design daylighting solution PIR/lux sensors for Lighting (occupancy and daylight sensing) Bureau & Reporting Thermal Storage, Ice Bank Technology. Cooling / chilling / absorption chilling. Standby generator sets. Synchronised generator sets MIC control Demand Management Insulation Load shedding/management CEM - Contract Energy Management Energy Training / Housekeeping 15

16 7.2 ENERGY SAVING TECHNOLOGY DETAILS Good Energy Housekeeping Training General staff at the Baxter plant may benefit from further energy awareness and efficiency training particularly regarding the benefits to be achieved with switching off lights, machinery (which have a short start-up time) when not in use. There are a number of electrically charged forklift trucks on site. Timeclocks should be installed on the chargers to ensure that charging takes place outside the day-time tariff period (8am-11pm) where possible, or indeed outside the WPDRS period if the scheme is implemented on site Lighting It was noticed during the scoping survey that many areas were fully illuminated during the day, despite the noticeable lack of occupants. A detailed lighting survey should be undertaken to establish the lighting level requirements throughout the plant and identify areas that would be suitable for automated lighting controls, using a combination of time-clock control, occupancy linking, and daylight sensing controls. Some of these technologies have already been successfully installed in certain areas of the plant. The survey would also identify areas where energy efficient fittings could be used Space and Process Heating Heat recovery from the flue gas, air compressors and the 85 C waste hot water should be given serious consideration as large quantities of potentially useful heat is currently being lost. Due to the proximity of the boilers to the location of the hot water (going to drain) there may be scope to preheat either the boiler feedwater or combustion air VSD's and Soft Starters A number of VSD s have been installed on the larger motors in the Baxter plant, however there is scope for the installation of more units, perhaps on the vacuum pumps or cooling tower pumps.. 16

17 7.2.5 Monitoring and Targeting (M&T) The correct use of a dedicated Monitoring and Targeting system results in significantly improved cost control and energy management. The system at Baxter does not appear to be used to its full potential however. The location of the PC is a contributing factor to this issue. The ideal location for the PC would be in the office of a person with the responsibility of evaluating the information gathered by the system Winter Peak Demand Reduction Scheme WPDRS The Winter Peak Demand Reduction Scheme has been developed by ESBNG and approved by the CER. It is designed to encourage Customers to reduce their electricity consumption, or increase exports between 17:00 and 19:00 on Business Days between 1 st November 2004 and 25th March This can be achieved by switching plant off at this time or in Baxters case, through the use of on-site generation or demand management controller. By running the 500kVA generator (which is synchronised with the electricity grid) during the time periods identified above annual savings in the region of 20,000 could be achieved. Obviously there would be fuel and maintenance costs associated with running the unit, however the scheme would still prove to be quite lucrative. Baxter should investigate this immediately as the closing date for applications for the scheme is the 6 th October next Utility Tariff Optimisation Electrical As already mentioned the MIC level has been exceeded by the maximum demand in recent billing periods unnecessary penalty capacity charges are being incurred. These penalties could be avoided by implementing demand management options including peak lopping / shaving Compressed Air Air receiver capacities should be investigated as undersized capacity can contribute to energy losses in that compressors are mar be forced to cycle repeatedly between on and off-load. In compressed air units 90% of the electrical energy is converted to heat. Heat recovery is already in place from 17

18 the air compressors to pre-heat steam boiler feedwater, however the pipework is uninsulated and as such losses are being incurred. Specific Compressed Air Related Actions 1. Carry out leak tests on air piping system with air-consuming equipment turned off, using Free Air Delivery (FAD) volumes of sets. 2. Pipe adequacy sizing investigation 3 pipe is recommended for flow rates up to 500 scfm. Also investigate moisture/scaling in pipe internals. Incorrectly-sized distribution piping, and internal pipe build-ups increases friction losses and energy wastage, whilst decreasing deliverable air pressures and volumes. 3. Investigate receiver sizes (min. of 900 litres per 100 l/s FAD is recommended). 4. Investigate additional receivers at points of high demand. This will reduce the operational burden at centralised air compression plant. 5. Investigate using alternatives for the main compressed air loads. Baxter presently pay an average of 68cents per generated kwh of compressed air (10 times the AUP of electricity, compressors are 10% efficient as an energy conversion plant). If we factor in a further 30 % air-leak losses and distribution inefficiency losses we can see that the cost of compressed air energy delivered to the process is almost than 90 cent per kwh. This is an expensive form of energy by any standards. 6. Investigate the use of ring main distribution piping with solenoid valve isolation of areas not in use. 7. Is there really a need for compression to 7.9 bar as some equipment may use compressed air at lower pressures? Combined Heat and Power (CHP) The Baxter operation and electrical/thermal consumption ratio (1:2.7) presents good opportunity for the employment of Combined Heat and Power (CHP) as an efficient means of generating electricity and steam on site. 18

19 CHP is now deemed renewable and therefore would assist in the reduction of greenhouse gas emissions on site. In addition the use of CHP would result in Baxter possibly being in a position to sell on emissions permits as a tradeable commodity under the terms of the EU Emissions Trading Directive. Other benefits include: Generation of high efficiency, low cost electrical & thermal energy on site Reduction of performance Indexes per kg product Reliable on site power not subject to grid variations/outages Pinch Analysis This method of analysing thermal energy flows in a process provides a simple technique for setting energy targets. It allows the engineer to identify the most beneficial matches between heat exchangers and process streams and to assess, at minimal cost, the economic effect of changing process operating conditions. By representing the heat available in hot process streams as a hot composite curve and the heat required by the cold process streams as a cold composite curve, Baxter can make use of a convenient tool for seeing at what temperature heat is required and how much energy is necessary overall. Specifying an allowable temperature difference between the hot and cold streams fixes the separation between the curves. The pinch divides the process into two regions: A high temperature region, or heat sink which requires the input of energy A low temperature region or heat source which requires cooling to remove an excess of energy. Once the basic concept of pinch analysis has been understood it is possible to address all aspects of the process design, determine the optimum process conditions and select the most suitable utility supply systems. 19

20 Pipe Heat Losses Insulation on valves etc. should be checked and improved where necessary. Pipe systems with uninsulated flanges could have twice the heat losses of a fully insulated system. A comprehensive steam leak test should be undertaken on all distribution pipework Performance Indices Simple performance indices are for initial energy assessments. Baxter have historically been monitoring the plants total energy consumption and comparing it to the quantity of product produced. Fig.1 in Appendix C indicates the yearly improvement which have been achieved on site over the past 14 years. Baxter continuously monitor the energy performance indices and continue to strive to reduce the amount of energy consumed compared to product manufactured. 20

21 APPENDICES Appendix A Fig. A1. Historical Maximum Demand Vs Maximum Import Capacity Fig. A2. Historical Electricity Consumption Fig. A3. Historical Heavy Fuel Oil Consumption Fig. A4. Historical Water Consumption Appendix B Fig. B1.Electricity Demand for Compressor No.4 Fig. B2. Electricity Demand for Compressor No. 6 (VSD Controlled) Fig. B3. Electricity Demand for Chillier No.2 Appendix C Fig. C.1. Energy Efficiency Utilisation Appendix D Compressed Air Audit Synopsis 21