A practical energy management programme at Rolls-Royce Plc, Glasgow

Transcription

1 GPCS454 Good Practice Case Study A practical energy management programme at Rolls-Royce Plc, Glasgow

2 Rolls Royce The Business Case Company profile Rolls-Royce Plc manufactures engines for civil and defence aerospace, energy production, marine power and industrial applications. It also provides a full range of after-market services for its products. Rolls-Royce employs 37,000 staff worldwide of which 22,000 are based in its regional facilities in the UK. Energy saving and CO 2 reduction of 17% Immediate payback Improved efficiency in working practices At the Hillington site, near Glasgow, Rolls-Royce manufactures turbine and compressor components for jet engines. Introduction Rolls-Royce gives high priority to corporate responsibility with respect to the environmental impact of its products, energy consumption and emissions. This case study considers how energy management has been implemented throughout the company and what the impact of the energy management programmes has been. The various programmes complement other activities such as climate change agreements and emission trading. Improving energy management was a conscious decision made by Rolls-Royce to reduce energy consumption and environmental impact, and to save money. Achievements The company has made significant progress with its energy management activities. This case study examines the specific steps taken by Rolls-Royce to implement effective energy management. Based on the business unit structure, sub-groups were established that were accountable for energy demand and consumption. These were supported by the facilities and services management teams. The business benefits Rolls-Royce gained the following business benefits: The energy management campaign has led to more efficient working practices. Working relationships with suppliers, maintenance contractors and energy services suppliers are better co-ordinated. The company has improved productivity and reduced waste across its entire UK operation. In 2002 the company joined the UK Emissions Trading Scheme, which independently verified absolute CO 2 emission reduction of 17%, exceeding its Climate Change Agreement target. Energy consumption in 2002 was reduced by 6.6% below the projected target. At the Hillington site the measurable impact of the five local campaigns has been evaluated and energy savings have been achieved of: 4% during the day 20% during the night 40% at weekends.

3 The Technical Case Implementing energy management Rolls-Royce recognised that energy consumption and cost would have significant impact on its business and energy management was implemented to protect and improve the enterprise. All core businesses now have Environmental Management Systems certification (ISO standard). Effective energy management requires a strategic approach with high-level management support and commitment. Rolls-Royce continues to develop strategies in achieving reduction targets, in particular by identifing energy saving opportunities of high value and short time scales. These include: monitoring and targeting utility supply chain systems and procedures major investments in combined heat and power (CHP) systems. A carbon management plan is also being developed with the help of the Carbon Trust. The key steps to success The energy management initiative at Rolls-Royce included a wide range of operational, production and management activities but was characterised by several successful key steps. Initially, the company established a vision for the future an environmental policy outlining performance targets approved at board level. This described the energy efficiency objectives and fulfilled one of the fundamental requirements for improved energy management. The company has used internal and external benchmarking to understand how management techniques and energy performance compare with other successful companies. This has enabled the company to adapt existing or develop new management procedures, and to meet revised performance targets. Rolls-Royce recognised the importance of appointing committed individuals or groups with responsibility for energy efficiency at each site. These Energy Champions must have senior management support and the necessary authority to implement efficiency improvements. A programme of training and support was implemented to ensure that measures would be understood and sustained by the staff, whose commitment and contribution also improved. Finally, a standardised monitoring and targeting system was introduced to ensure that performance improvements could be sustained. This governs the measurement, analysis and reporting for the 40 Rolls-Royce sites in the UK.

4 Rolls Royce Rules of thumb The maximum recommended temperature for space heating is 19 o C. Heating costs rise by approximately 8% for every 1 o C. You can make savings of around 15% of lighting costs just by making people aware of the need for switching off unnecessary lights. More energy is required to generate compressed air at high pressure. Reducing the generation pressure from 7 bar to 6 bar will save between 4% and 7% depending on compressor type. Hillington campaigns At the Rolls-Royce Hillington site five key campaigns were introduced to improve energy efficiency. Turn it off The use of equipment outside of production hours was checked, for example: were compressors left running overnight and at weekends? Rolls Royce examined the electrical and heat load profiles and determined any unnecessary operation. Like many other sites this offered substantial opportunities for improvement. Operating regime The scheduling of plant and services often affects energy efficiency. The company analysed possible changes to production and plant operation that would improve productivity and reduce energy consumption. These ranged from making sure that boilers, compressors and other equipment were matched to loads, to assuring that production activities were scheduled or located in such a way that the fixed energy overheads are minimised. Energy for essential services A comprehensive review of services was conducted to determine whether these were necessary. For example: was it necessary to make compressed air available at all locations and what level of standby or back-up was essential to support production? This led to optimised services provision. Turn it down The company examined the way in which equipment was used to meet demands of production or services. A wide range of improvements was introduced ensuring that energy consumption for production and services was reduced to an optimum level, based on questions such as: Were compressed air pressures correct? Could the pressure be reduced? Were lighting levels too high? Could these be reduced safely? Were buildings overheated? Could temperatures be controlled more effectively? System efficiency Rolls Royce ensured that the efficiency of energy consuming systems was maximised. This campaign covers all of the services including lighting, HVAC, steam, and electric motors and drives. The campaign makes sure that, for example: light fittings are regularly maintained and reflectors cleaned condensate is returned to the boiler house high efficiency motors are fitted.

5 Rolls Royce The Financial Case Rolls-Royce has demonstrated business improvements from its energy management initiative and its efforts are being extended in order to achieve the demanding targets that it has set itself. Savings The overall targets are a reduction of the annual utilities energy bill of 26 million per annum and a total reduction of 20% before the end of To date, Rolls-Royce has been able to demonstrate a 17% reduction in energy consumption. These savings have helped the company maintain its climate change levy discounts and, together with its UK emissions trading scheme activities, have had a direct, positive impact on company profits. Resourcing Energy management initiatives have been implemented to achieve energy savings and meet target reductions. This has been undertaken largely using existing staff and resources. Energy related investments are treated in the same manner as other calls for resources under Rolls- Royce s capital investment scheme. Return on investment Savings have exceeded the resource costs and therefore payback is effectively immediate while savings continue to be made. Rolls-Royce is convinced that the evidence from its various campaigns demonstrates the effectiveness of energy management. The combination of this energy management programme and other measures, such as fuel conversion and investment in CHP, has enabled a 17% reduction in energy consumption across the company. Ian Norris, Facilities and Services Manager at Rolls- Royce Hillington, concludes: Staff contributions to energy management and energy efficiency have helped to reduce our greenhouse gas emissions by some 22% over the last two years, an achievement we are extremely proud of.

6 Action Energy is a programme run by the Carbon Trust and funded by the Department for Environment, Food and Rural Affairs, the Scottish Executive, Invest Northern Ireland and the National Assembly for Wales. Action Energy assistance Expert advice Action Energy provides free expert energy efficiency advice. Energy surveys Your company may qualify for a free energy efficiency survey from one of Action Energy s qualified consultants. Action Energy loans Action Energy can provide an interest free loan to SMEs in England, Wales and Northern Ireland of up to 50,000, repayable over up to 5 years, for investment in energy efficiency measures. In Scotland the Scottish Executive offer a similar scheme called Loan Action Scotland. Publications A range of free publications is available including: GPG119 Organising Energy Management A Corporate Approach GPCS326 Adopting a Corporate Approach to Energy Management GPCS376 A Strategic Approach to Energy Management GPCS330 A Comprehensive Energy Management System at a Large Process Site For details of any of these services or free publications, contact the Environment & Energy Helpline on and select the Energy option, or visit the Action Energy website at For Loan Action Scotland contact Tax incentives The whole capital value of energy efficient technologies which qualify under the Enhanced Capital Allowances scheme may be written down in the year of purchase. For further information go to Sources of further information The following organisations can provide further information on energy management: Energy Insitute Tel Whilst we have taken reasonable steps to ensure that the information contained within this Guide is correct, we give no warranty and make no representation as to its accuracy and we accept no liability for any errors or omissions and nor does the Carbon Trust nor the Government. National Energy Foundation (Energy Efficiency Accreditation Scheme) Tel Nothing in this Case Study is intended to be or should be interpreted as an endorsement of, or recommendation for any supplier, service or product. The Carbon Trust is a Company limited by guarantee, registered in England and Wales, number Queen s Printer and Controller of HSMO, June 2004