Green Building & Energy Efficiency

Transcription

1 Green Building & Energy Efficiency Shane Tedjarati Honeywell China and India President & CEO Sep 18, 2008 China s Energy Inefficiency Challenge 40,000 Country Energy Efficiency (2005) Russia 35,000 China 30,000 South Africa Energy Intensity * 25,000 20,000 15,000 Thailand Singapore India South Korea Canada 10,000 Norway Australia Mexico 5,000 Hong Kong Switzerland France United Kingdom Germany Japan U.S ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 GDP (2005 US bn) *Energy Intensity - total primary energy consumption per dollar of GDP (Btu per 2000 U.S. dollars using market exchange rates) Source: IMF, US Energy Information Administration: International Energy Annual 2005 One of the World s Least Energy Efficient Economies 2 1

2 Gov t Commitment to Energy Efficiency 20% energy consumption reduction target from 2005 to 2010 (11 th 5 Year Plan) - Up till 1Q2008, down only 7.22% TCE index* Energy Efficiency Target Emission Target Emission control target: COD down 10%, SO 2 down 10% China (11 th 5 Year Plan) - China missed pre-set target in 06 - SO 2 down 4.66% and COD down 3.14% in 07, first time decrease Energy saving is a priority and one of the basic principles the government should follow in the future - President Hu 3 *TCE index: ton coal equivalent per RMB10k of GDP COD: chemical oxygen demand; SO2: sulphur dioxide Source: China Energy Statistical Yearbook Big Challenges Ahead to Meet Energy & Emission Target China s Major Energy Users Industrial Sector Local government mandates emerging Large energy users include steel, cement, building materials, metallurgy facilities Agriculture 5% Transportation 10% Building 23% Industrial 62% Building Sector Fastest growing energy consumption (expected to reach 33% in 2010) Half of all new building construction will be in China (World Bank estimate) 15% energy consumed in commercial, 85% in residential 85% of Energy Consumed by Industrial, Building Sectors 4 2

3 Integrated Approach to Energy Management Innovative Solutions Advanced Products Right Business Models 5 Building Energy Solutions Energy Management Honeywell Enterprise Buildings Integrator a complete and customizable solution managing HVAC, lighting and energy systems, security, digital video, life safety and asset tracking applications Honeywell Energy Manager advanced energy information application that automatically control equipment on-off times and manage energy utilization across entire enterprise Demand Response Service Solutions Energy saving through shifting load from peak to off-peak hours Synchronize utility suppliers needs with those of residential and small commercial customers Honeywell has been a pioneer in the demand response market since the 1990s Installed more than 950,000 load control devices Honeywell Atrium an innovative, web-based energy analysis service that can collect and analyze internal meter data, define potential savings and provide recommendations Applying Smart Technologies in A Smart Way 6 3

4 Industrial Energy Solutions Solutions Manufacturing Execution Systems (MES) Single system to track and report multiple sources of energy usage information against targets Advanced Process Control Minimize fuel and other energy costs associated with production as well as improve efficiency by maximizing throughput and yields Simulation Technology Model industrial complex energy circuit, heat integration systems and boiler feed water circuits Energy Solutions for Utility and Industrial Power Analyze, optimize and diagnose plant performance to minimize fuel consumption and emissions, increase heat rates Emissions Monitoring Optimize and streamline environmental reporting, track emission credits/allowances 7 Energy Related Product Offerings Products Thermostats Sensors Variable Frequency Drivers Building Automation Controllers Manufacturing Process Controllers ~50% of Honeywell's product portfolio delivers energy savings and efficiency Combustion Controllers Foam Insulation Materials PV Shielding Materials Valves Energy-efficient Lighting Lighting Controllers 8 4

5 Energy Performance Contract Model Business Model Simple concept : leverage money saved on energy and operating costs to pay for building improvements Honeywell is the recognized global leader and pioneer in the guaranteed energy savings concept - Early 1980s initiated guaranteed energy savings concept - Thousands of energy services contracts in force today Before Program Term During Program Term After Program Term Operating Budget Operating Funds Operating Funds Operating Funds Operating Funds Funds Utility Budget -Lights -Air Conditioning -Compressed Air Savings Utility Budget Investment -Lights -Modernization -Air Conditioning -Energy Retrofits - Compressed Air Savings Continued Savings Utility Budget Investment -Lights -Modernization -Air Conditioning -Energy Retrofits --Heating Compressed Air 9 HON Cases - Total Energy Solution Fort Bragg, North Carolina (The home of > 45,000 troops) Project Content Installation of a Energy Information System that will enable PWBC to monitor, manage and control facilities from a central command post Peak shaving and natural gas procurement Installation of a new natural gas distribution system expanding the limited underground existing natural gas distribution system Installation of new natural gas-fired steam and hot water boilers to replace existing outdated central steam plant Installation of a comprehensive metering program Energy saving lighting upgrade Water conservation measures post wide Optimization or removal of central plants Program Highlights Total Contract Amount $ 100 mn up to date Annual Energy Spending $36 mn Annual Energy Savings $ 9.5mn per year, equal to 26% saving rate Project Term 10 years Facility Size > 30,000,000 sq. ft. Number of Buildings > 7,500 EPC Technologies Boiler Plant Improvements Chiller Plant Improvements Building Automation Systems HVAC Lighting Improvements Building Envelope Modifications CHW, HW, and Steam Distribution Systems Electric Motors and Drives Refrigeration Distributed Generation Renewable Energy Systems Energy/Utility Distribution Systems Water and Sewer Conservation Systems Electrical Peak Shaving/Load Shifting Energy Cost Reduction through Rate Adjust. Energy Related Process Improvements Energy Surveys Note: EPC Energy Performance Contract 10 5

6 HON Cases in China Tsingtao Beer Shenzhen Tsingtao Beer Asahi upgraded facilities with Honeywell s Energy Performance Contracting model No direct investment by Tsingtao Beer 5-year contract term The program included a centralized control system to optimize energy management across the facilities: Heat recovery Cooling and HVAC system Motor controller Exceeded contract guarantee and achieved >RMB 3 mn (17%) energy savings A Successful Case of Win-Win EPC Model in China 11 Honeywell & Energy Efficiency ~50% Honeywell products can improve energy efficiency 10-25% less energy globally by using existing Honeywell technologies 20-30% less energy in commercial buildings by using Honeywell EPC* Honeywell has completed > 5,000 energy-efficiency projects and saved > $3bn in energy and operating costs globally * Energy Performance Contract 12 6

7 The Way Forward Enhance systematic monitoring of key energy consumption metrics - Create a baseline for tracking and keep measuring progress Continue to develop advanced longer-term technologies - Breakthrough technologies, e.g. affordable hydrogen fuel cells, that would clearly revolutionize industry/society but meanwhile push for ubiquitous application of existing technologies - Our experience has repeatedly demonstrated that systematically applying simple, readily-available technologies/solutions can usually reduce energy consumption in the order of 20% Drive to retrofit old factories, buildings, homes - Immediate results by adopting the latest energy saving technologies Rigorously drive enforcement by government - Positive reinforcement: Offer tax rebate incentives and financing support - Negative reinforcement: Monitor and publicize the biggest offenders 13 Key Enablers Well-accepted industry standards - Establish criteria of rating building energy efficiency Broad public awareness programs and campaigns - Promote Green Building & Energy Efficiency concept - Create positive public pull towards certified green buildings - Strong focus on youth/school programs to develop life-long habits Government as role-model in the application of energy conservation practices - Start with programs to upgrade and certify all government buildings as energy efficient - Actively share goals, timeframes and results with industry and the public Forums to continually bring companies and industry together - e.g. MHC Green Building Conference 14 7

8 Thank You 15 8