Industrial Energy Efficiency Improvement Project in South Africa

Transcription

1 energy Energy Swiss Confederation Federal Department of Economic ffairs FDE State Secretariat for Economic ffairs SECO Industrial Energy Efficiency Improvement roject in South frica Introduction and Implementation of Energy anagement System and Energy Systems Optimization easures CSE STUDY: TOYOT SOUTH FRIC

2 THE ISSUE ND IN FINDINGS In a nation where the electricity supply reserve margin is low and energy costs rapidly increasing, it is not only good corporate citizenry to reduce energy consumption but it makes good business-sense as well. The implementation of an Energy anagement System (EnS) at Toyota S resulted in a reduction in electricity usage which has translated into cost-savings of more than R.8 million over a two-year period (/). total of Energy Systems Optimization (ESO) initiatives have been implemented since. projects were started in and continued over, during which an additional 3 new projects were also initiated. Toyota improvements - Total No. of rojects Gross onetary Savings R,87, Energy Savings GWh 8. Total Investment Overall ayback eriod (in years).9 R3,3, GHG Emissions Reduction ton CO 7,8 3 Toyota s company policy is to consider all energy initiatives that show a payback period of less than two years. The optimization projects identified and implemented have an overall average payback period of.9 years. The table below shows the profitability index (ROI) of the investments undertaken by Toyota S to implement EnS and ESO measures in the plants within Toyota S. The investments were fully recovered within the project implementation period of years (/). In addition, assuming no further investments to improve energy efficiency are undertaken by the company, the and investments will be recovered. times within years time and 7. times within years time. The hurdle rate used for this analysis is fairly conservative and equal to %. The Net resent Value (NV) indicates that the discounted savings after years will account for roughly ZR million and are expected to reach ZR 7 million after years, assuming that all assumptions are kept constant. This shows that improvements in energy efficiency through EnS and ESO initiatives not only do not negatively impact productivity, but also represents a profitable investment for the company. rofitability Index ( years).3 rofitability Index ( years). rofitability Index ( years) 7. NV ( years) R9,78,7 NV ( years) R7,333,6 THE GROUNDING STRTEGY In 8, Toyota S (Durban) identified energy saving as one of its priority focus areas. representative from each of the Toyota S plants was called to be part of a working group tasked with identifying areas for possible energy consumption reduction. In pril the company set up a dedicated Energy anagement Department consisting of a senior manager and four engineers, each dedicated to a particular cluster of plants within Toyota Durban, namely: aint and utilities plants; Vehicle and component assembly plants, and assembly parts warehouses; Welding plants; and Non-production areas (administrative areas). Energy anagement System (EnS) is a systematic approach towards achieving continual improvement of energy performance, energy efficiency and energy conservation. It addresses energy supply, measurement, documentation and reporting of energy use and procurement, as well as design practices for energy using equipment, systems and processes. [based on ISO ]. Note: n EnS is a management system and not a technical system. S Grid kwh to CO Conversion Factor set at.97 as per the Journal of Energy in South frica Vol No ; November Kg CO Emission Reduction equates to roughly 7 8 ton CO. Hurdle rate is defined as the actualization rate used to discount cash-flows. In business terms, it represents the interest rate that a company would get if it deposited the money in the bank rather than investing. The Net resent Value is given by the sum of cash-flows discounted back to present time and it therefore indicates the company s discounted savings over a specific period of time.

3 In ugust Toyota S signed up as a Host lant 6 for the Industrial Energy Efficiency Improvement in South frica roject (IEE roject). ll relevant Toyota personnel enrolled for the user-level EnS and ESO training programme offered by the IEE roject, with two candidates successfully completing the first expert-level EnS training course and one graduating from the ump Systems expert-level course in. ILEENTING ENERGY NGEENT SYSTE fter signing up as a Host lant, an EnS was introduced, along with ESO and EE projects across various operational areas in the Toyota S plants. Toyota S set up a lan-do-check-ct (DC) process to ensure effective implementation of the EnS, including regular and accurate monitoring. The following steps were then taken: n energy policy was developed for Toyota S, with commitment to continuous improvement; Energy audits were conducted and significant energy users identified; n automated real-time energy measurement system was implemented for all plants at Toyota S; Energy erformance Indicators (EnIs), namely GJ/vehicle, were developed; s and targets were set and action plans developed to achieve these; The plant personnel in all the identified projects were engaged to encourage the necessary support and behavioural change in employees, e.g. switching off equipment during non-production times, such as between shifts and over weekends; The energy reduction projects identified and agreed upon were implemented, including the following: Occupancy sensors were placed in some of the larger offices; Some of the larger, mostly inefficient overhead ventilation systems, were replaced with smaller localised systems; Solar water heating was installed in two ablution systems; ll mercury vapour lighting systems were replaced with energy efficient fluorescent lighting. fter project implementation, energy-saving results were verified through accurate measurement 7. Throughout the process, feedback was given to senior management on a bi-monthly basis, with demonstration of performance improvement against targets. 6 The IEE roject defines a Host lant as any South frican industrial plant that agrees to accommodate project related events at its facilities. 7 easurement and Verification is defined as he process of quantifying energy savings or its impact by determining the actual consumption and relative energy governing factors and to develop baselines and baseline adjustments. [based on STS :]

4 3 SELECTED INTERVENTIONS: ENERGY SYSTES OTIIZTION s part of the implementation of an EnS at Toyota South frica in Durban, energy audits were conducted at all of its plants to identify significant energy users. s mentioned earlier, Toyota S follows the DC (lan, Do, Check, ct) principle in all energy-related initiatives. Results are verified by means of accurate measurements before and after completion of interventions, and performance standards are set and carried over to similar plants within the company. Both top and plant management is provided with regular feedback on progress against energy targets, and support is requested for the removal of potential barriers. The interventions below have shown particular success in energy reduction and represent a sample of the systems optimization projects implemented over / within the Toyota plants in South frica. U OTIIZTION The objective was to optimise the energy use for cooling water pumping in the welding plant whilst still maintaining a flow of 87 m³/h. The resultant solution reduced the number of pumps required from three to two, without compromising the required flow rate. The intervention involved changing the configuration of the pipes. rocess lant Energy Source Cooling water pumps Welding plant Reduce from 3 to pumps and maintain flow rate of 87 m^3/h Changed pipe configuration after the supply pumps successfully achieved Cooling Water umps Savings Figure : Cooling Water umps Configuration onetary savings/year R67,7 Energy savings/year 3, kwh Cost of initiative R38, ayback period 3 months kg CO savings/year 38,9 kg CO BEFORE FTER

5 CORESSED IR rior to this intervention, compressors at the utilities plant were not synchronised and compressor motors would run loaded constantly with blow-off valves being open. The project involved resetting the compressors and reducing pressure over down times. It did not involve any costs and the objective was achieved with immediate effect. rocess lant Energy Source ain compressors Utilities Optimize compressors to run only when required Set up sequence of compressors to load and unload according to the air demand from the plants successfully achieved with immediate effect Figure : Compressor ressure Compressor savings Compressors Before Compressors fter onetary savings/year R, Energy savings / year 77, kwh ka ka Cost of project R C3 C C C6 Setpoint C8 C9 odulation ES C9 C3 C ES C6 C Setpoint odulation C8 CORESSOR SET OINT (6 ka) ayback period kg CO savings/year 7,9 kg CO DYLIGHT HRVESTING rocess lant Energy Source Warehouse lighting Imported parts warehouse Reduce lighting during the day Improvement of natural lighting levels by fitting strategically placing in the roof clear sheets to allow in natural light; better management of the artificial lighting consumption successfully achieved This project was aimed at allowing more daylight into the imported parts warehouse to reduce the dependency on artificial, energy-consuming lighting. fter a -month implementation process all lights are now switched off during the day. Daylight harvesting savings Cost savings/year R,73 Energy savings/year, kwh Cost of project R67, ayback period months kg CO savings/year,89 kg CO Figure 3: Daylight harvesting in Imported arts Warehouse BEFORE FTER

6 SSEBLY LNT LIGHTING REDUCTION This project involved the removal of % (or every second row) of the artificial lights, replacement of the remaining fluorescent tubes with more energy efficient ones and installation of reflectors to each fitting in the assembly plant. The project entailed a significant investment but has achieved the objective and expected savings within a month period. rocess lant Energy Source ssembly line lighting ssembly plant aintain lighting level above requirements with a reduced number of lights Removed % of lights in the plant; introduce automation of the switches; installation of EE tubes successfully achieved Lighting reduction savings Cost savings/year R,6 Figure : ssembly Line Lighting Reduction Energy savings / year 3, 73 kwh Cost of initiative R, ayback period months kg CO savings/year,6 kg CO BEFORE FTER LIGHTING ND VENTILTION UTOTION This project at the chassis plant achieved energy savings by introducing an automatic switch that switches the lighting and ventilation off automatically during non-production times. Results achieved The majority of plant lights and ventilation systems are switched off automatically during non-production times lant load has reduced during non-production times The objective was achieved within a -month payback period. rocess lant Energy Source Welding plant lighting and ventilation Chassis lant utomatically switch off lights and ventilation during non-production times Installation of automation switches; reduced plant loads during non-production times successfully achieved

7 6 Lighting and ventilation automation savings Figure : Chassis lant Energy Load rofile Cost savings/year Energy savings / year R63, / year,, kwh 6 CHSSIS LNT ENERGY LOD ROFILE 3 3 Weekday Before Kaizen Weekday fter Kaizen Cost of project R9, ayback period months kg CO savings/year,6,39 kg CO W8 k Sunday Before Before Kaizen Kaizen Sunday fter fter Kaizen Kaizen - Day shift - Between shifts 3 - Night shift - Tea break : : 7 : : 8 : : 9 : : : : : : : : : : : : 3 : : : : : : 6 : : 7 : : 8 : : 9 : : : : : : : : : : : : 3 : : : : : : 6 - Lunch break 6 - Sundays Figure shows the impact of the lighting and ventilation automation intervention. It particularly highlights the reduction in power consumption within the Chassis lant during certain time periods of the day as a result of a Kaizen (Japanese word for improvement or change for the better ) activity. LESSONS LERNED FRO TOYOT S EE EXERIENCE n important grounding for the success of the EnS and ESO initiatives at Toyota S has been the support of both top management and among the managers of the plants concerned; lant personnel in all targeted areas have to be engaged throughout the planning and implementation stages to ensure the necessary support and overcome the perception that energy reduction steps would impact negatively on safety, quality or production cycle times; Changing the mindsets and habits of personnel is an ongoing process and requires continuous reinforcement.

8 The Industrial Energy Efficiency (IEE) Improvement roject was introduced in South frica by the United Nations Industrial Development Organization (UNIDO) after rolling blackouts in 8 exposed the country s acute shortage of electricity generation capacity. It is a collaborative initiative between the South frican government through the Department of Trade and Industry (the dti) and the Department of Energy (DoE), the Swiss State Secretariat for Economic ffairs (SECO) and the UK Department for International Development (DFID). The roject is implemented by UNIDO and is hosted by the National Cleaner roduction Centre of South frica (NCC-S) at the CSIR. The IEE roject contributes to the sustainable transformation of energy usage practices in South frican industry and aims to enhance national energy security, contribute to job creation and the reduction of carbon dioxide emissions. It facilitates the implementation of the new South frican Energy anagement Standard under the framework of the recently released international energy management standard ISO, and builds the capacity to introduce systems optimization with a holistic approach in industry in South frica. The roject currently focuses on five key industry sectors which have the potential to bring about significant reductions in the overall energy consumption of the country. These are agro-processing, chemicals and liquid fuels, metals processing and engineering, automotives, and mining. The objective is to contribute to the national energy demand reduction target of % by the year for mining and industry, and % for the country as a whole. energy Energy Swiss Confederation Federal Department of Economic ffairs FDE State Secretariat for Economic ffairs SECO ENQUIRIES For more information about the training workshops and participation opportunities: Tel: (retoria), (Cape Town) or 3 36 (Durban) For more information about partnership opportunities: Tel: (retoria)