German-American Chamber of Commerce. SIGA Green Technologies Case Study: Compressed Air Challenges in the Energy Efficiency Industry

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1 Energy Efficiency for Industry German-American Chamber of Commerce June 24 th 2008 Jan Hoetzel, Managing Director SIGA Green Technologies SIGA Green Technologies Case Study: Compressed Air Challenges in the Energy Efficiency Industry

2 About SIGA Green Technologies Our Vision Eliminate the equivalent of a 500 MW coal power plant trough energy efficiency projects by 2020 Our Mission Significantly reduce energy consumption by providing BEST- IN-CLASS green products and services while improving the bottom line of our clients and help them achieve their environmental goals Our Motto Promote Energy Efficiency NEGA WATT instead of MEGA WATT

3 Compressed Air also commonly named the 4 th utility after: Electricity Gas Water

4 Compressed Air is one of the most expensive energy sources in our plants and what do we know about our compressed air systems?

5 A black box? How much air do we need? What s critical about compressed air? Benchmark: How are we doing compared to other compressed air systems in the industry? What do we pay a day, a week, a month, a year? How efficient and how effective is our system? How many kwh do we use? How do we manage our compressed air system? Or is it managing us? What are the saving potentials? 5% 10% 20% 30% or more?

6 Compressed Air Cost Over 10 Years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Electricity 76% 76% Electricity Electricity 86% 90% Maintenance Maintenance Invest Invest 5% 7% 5% 12% 7% 86% 90% 93% Sources: DOE Compressed Air Best Practice, * Assumptions in this example include a 75 hp compressor operated 2 shifts a day, 5 days a week at an aggregate electric rate of $0.05/kWh over 10 years of equipment life. 5 Cent / kwh 1510 Cent Cent / kwh / kwh 5 Cent 10 Cent 15 Cent 20 Cent Invest 12% Electricity Invest Maintenance

7 Compressor Volume Control Mechanism Compressed Air Control turn on compressors - and as long as nobody complains everything is OK

8 Compressor Controls HP(KW) & CFM % 100 Modulated KW 93 % 100 Variable Drive Accelerate and Break at once 0 0 % 100 Load/Unload % 100 Multiple Load / Unload KPI

9 An automotive supplier in West Michigan Case Study A

10 AIRppraisal Captured information during test period: Energy use in kwh Compressed Air use in CF (Cubic Foot) System Net pressure in PSI Start/Stops, Load/Unload Cycles Calculate: Key Performance Indicator Energy cost for compressed Air per unit Evaluate potentials:

11 Pre AIRppraisal Noload Energy Load Energy

12 Pre AIRppraisal

13 Pre AIRppraisal

14 Installation of a Monitoring & Master Control Tel:

15 Post AIRppraisal Noload Energy Load Energy

16 Post AIRppraisal

17 Post AIRppraisal

18 Project Summary Efficency Improvement $ % $13.39 Nonload Load $ $ Pre Post Description Before After Sav ings kw h/scf x % Cost per m SCF $ $ $ MW h Annually 1, 722 1, PROJECT ROI in Month Energy equivalent to power Households *) Saved CO2 Emmsision in tons *) Average Mid-West Housholds

19 System Benefits not quantified in $ Less start and stops Less load / unload cycle Less service hours and service cost Monitoring of KPI Key Performance Factor Early indication of malfunction /Text message/visual Temperature Humidity Net Pressure Air Dryer Condensate Drains Leaks Managing compressed air system Behavior change Case Study B

20 Summary Energy is the main cost driver of compressed air systems Smart compressed air system sizing builds the base for cost effectiveness Demand driven master control is key for best energy efficiency results Monitoring the tool to manage systems and drive KPI and behavior change For more Information about AIRLEADER VISIT:

21 Energy Efficiency Industry Challenges we face Typically simple ROI must be below 24 often even 12 month to receive project approval Do Energy Efficiency Projects need different, long-term approach and approval criteria?

22 A different long-term view Cover Energy Demand with new power plants (3.600 MW) Cover Energy Demand with energy efficiency offensive CO2 Certificate for 20 Years Energy cost for 20 Years Upgrade power grid Upgrade gas grid Share Pipeline Nabucco Construction power plant Energy Cover demand Energy coverage Demand with With energy efficiency energy efficiency offensive Cover Energy demand with new power plants (3.600 MW) Source: Home Appliance SOLAR PV SOLAR Thermal, Cooling, Heat pumps Insulation of Buildings CO2 Certificate Credits

23 Foster the dialog for a long-term view on energy efficiency projects within your company, in your industry, and in Michigan Energy Efficiency MAP Thank you Your SIGA Green Technologies TEAM NEGA WATT instead of MEGA WATT!

24 Contact Information

25 References