The Evolution of California Portland s s Corporate Energy Strategy

Transcription

1 The Evolution of California Portland s s Corporate Energy Strategy Steve Coppinger, P.E. Director, Energy Services California Portland Cement Company scoppinger@calportland.com THE 2008 NATIONAL SYMPOSIUM ON MARKET TRANSFORMATION ACEEE/CEE Washington, D.C. April 1, 2008

2 CPC Energy Strategy OVERVIEW Company Background Cement Process Energy Challenges Organization Corporate Commitment Corporate Strategies Results

3 CPC Energy Strategy Company Background Founded in 1891 in Colton, CA Producer of Cement, Concrete, Concrete Products, Asphalt and Aggregates Facilities in Western U.S. - From Alaska to Arizona including Nevada 2500 Employees ~US $1.5 Billion Annual Sales

4 CPC Energy Strategy Cement Process Energy intensive process Conversion of carsized rock to fine talcum powder Passing a mountain through the eye of a needle twice Mining, crushing, blending, grinding, heating (2700 deg. F), cooling, conveying & shipping Energy Costs ~ $97 Million/yr Energy ~ 50% variable costs Typical plant power demand MWatts Coal is primary fuel

5 Crusher

6 Vertical Mill

7 Temperatures reach 2700 deg. F in clinkering process

8 Finish Grinding Mill

9 Energy Challenges CPC Energy Strategy Rising Costs Energy Market Volatility Environmental Regulations Climate Change Concerns Increasing World Energy Demand Energy Availability & Reliability Uncertain Future

10 Organization CPC Energy Strategy Created Formal Energy Program in 2003 Corporate Energy Team Meets every 2 months Corporate Steering Committee Sr. Executives, Chief Engineers, Energy Management, Plant & Division Managers Corporate Energy Director & Energy Manager 16 Energy Managers (Large Plants & Divisions) Local Energy Teams Process Energy Team

11 CPC Energy Strategy Corporate Commitment Make Energy Management a Core Value Executive Participation on Energy Steering Committee Executive Attendance at Corporate Energy Meetings CEO involvement with Industry Organizations Energy Promotion, Strategic Planning Corporate involvement with government agencies (Energy Commissions, Public Utility Commissions, EPA, DOE, etc.)

12 CPC Energy Strategy Corporate Strategy Energy Management Fundamentals Follow ENERGY STAR Guidelines for Energy Management track energy consumption, benchmark, set goals, create action plan, evaluate progress, create awareness, etc. Involve all levels of company in program - CEO to hourly Participate in EPA Climate Leaders & other Voluntary Reporting Groups Set long term goals Work with Industry Committees Portland Cement Association (PCA), ENERGY STAR Cement Focus Group Share Best Practices within industry & outside Observe International Energy Practices Continuously Improve Program

13 CPC Energy Strategy ENERGY STAR Guidelines For Energy Management

14 Mojave, CA Cement Plant

15 CPC Energy Strategy Corporate Strategy Energy Value Chain Vendors Promote development of new efficient technologies Develop Purchasing & Inventory Policies Set Efficiency Standards ENERGY STAR label? Customers Participate in CPC s Energy Program Energy Efficiency adds value to our products Community Promote efficiency and raise awareness Be good neighbors Utilities Partnership for energy assessments Rebates & Incentives Government Legislative Initiatives, Energy Partnerships

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17 CPC Energy Strategy Corporate Strategy Transformational Opportunities Evaluate energy performance on par with labor, material and other expenses Reduce hurdle rates for capital projects additional benefits besides economic payback Pursue new technologies e.g. new grinding mill serial #2 in North America 40% less energy Develop and sell sustainable products e.g. pervious concrete, insulated concrete forms, blended cements, etc.

18 Gear Ball Mill Motor

19 CPC Energy Strategy Corporate Strategy - Renewable Energy & Alternate Fuels Wind Mojave, CA Plant 25 Year Contract, 24 MWatts of wind power Lease property for >1,000 MWatts of wind power Solar Power Rillito, AZ Plant LOI for 2 MWatt Solar project Corporate Office Considering solar on roof Cogeneration Colton, CA Plant MWatts from Waste Heat Bio Diesel Oregon/Washington - All ready mix trucks run on 5% bio diesel Tire Derived Fuels Colton, CA Plant 2.25 Million burned in 2007 NOx Reduction

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22 Results CPC Energy Strategy Saved over $6 million in energy costs in four years Significantly reduced emissions Institutionalized energy initiatives Received over $1.5 million in rebates Energy awareness has improved significantly Received several energy awards MANY A MICKLE MAKES A MUCKLE

23 CPC ENERGY AWARDS

24 THANK YOU!