Bayer Climate Check. 180 Seminar, Green engineering IGCW-2013 Convention. An integrated tool to mitigate energy consumption and CO 2 emissions

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1 Bayer Climate Check An integrated tool to mitigate energy consumption and CO 2 emissions 180 Seminar, Green engineering IGCW-2013 Convention / Jagdish Solanki / BTS India

2 Agenda Introduction of Bayer and BTS-India Introduction of the Bayer Climate Program and the Bayer Climate Check Climate Footprint Energy Efficiency Check Workflow of the Climate Check Data required from Client and results delivered by BTS Page 2 Bayer Climate Check, Jagdish Solanki,

3 Bayer AG Facts, Figures, Objectives Bayer Facts and Figures ,500 employees worldwide Sales: 39.8 Euro Billion EBIT: 3.9 Euro Billion Net income: 2.5 Euro Billion R&D expenses: 3.0 Euro Billion Capital expenditures: 4.6 Euro Billion Bayer Objectives To become a leader in research and technology To achieve continuous growth of expertise in the manufacture of high-quality and environmentally compatible products Page 3 Bayer Climate Check, Jagdish Solanki,

4 Bayer Technology Services a Bayer Group Company Holding Company Business Areas Bayer HealthCare Group Management Board Bayer AG Corporate Center Turnover worldwide (*) EUR mil Employees worldwide (*) 2,371 (*) 2012 Client industries Bayer Health CareBayer CropScience Crop Science MaterialScience Material Science/Polymers Chemicals Service Areas Bayer Business Services Bayer Technology Services Currenta Offers services on external market Page 4 Bayer Climate Check, Jagdish Solanki,

5 BTS India is an integral part of BTS North America Baytown, TX, USA HQ Leverkusen, Germany Sites Berlin, Bergkamen, Dormagen, Krefeld, Wuppertal Russia Moscow, Russia Asia Beijing, China Asia Shanghai, China North America Pittsburg, USA Latin America Mexico City, Mexico North America Berkeley, CA, USA Brazil Rio de Janeiro, Brazil Benelux Antwerp, Belgium Switzerland Witterswil, Switzerland Location: Established: 03/2009 Current Staff: India Mumbai, India Asia Singapore Mumbai, Thane 35 + external support Page 5 Bayer Climate Check, Jagdish Solanki,

6 BTS India Our focus BTS India for internal (Bayer) market: 1. Execute projects of Bayer in India 2. Sourcing of equipment from India for Bayer globally 3. Ensure Plant and Process Safety standards of Bayer production facilities in India. BTS India for Indian market: 1. Micro Reaction Systems 2. BayQik 3. Process optimization 4. Environmental Protection Technologies 5. Project Management (Owner s Engineering) Page 6 Bayer Climate Check, Jagdish Solanki,

7 The Bayer Climate Program was announced on November 19 th 2007 Program: Bayer launched the Groupwide Bayer Climate Program at the end of 2007, which includes a series of measures to be implemented in the next several years Goal: Further reduce CO2 emissions in its production facilities and develop new solutions for increasing climate protection and dealing with climate change Investment: EUR 1 billion for climate protection in Lighthouse Projects: EcoCommercial Building: A global concept for zero-emission office and industrial buildings Make plants more resistant to climatic conditions such as drought and heat Contribute to the efficient use of plants as energy source Bayer Climate Check identifies potential for CO2 reduction in production Page 7 Bayer Climate Check, Jagdish Solanki,

8 Bayer Climate Check Page 8 Bayer Climate Check, Jagdish Solanki,

9 Climate Footprint Energy-Efficiency- Check Bayer Climate Check Main Characteristics The Bayer Climate Check consists of two elements: Climate Footprint Energy Efficiency Check Bayer Climate Check is a systematic screening of all relevant production units worldwide for all Bayer subgroups to identify measures for energy & CO 2 e emission reduction. supports achievement of targeted climate goals of Bayer subgroups. Page 9 Bayer Climate Check, Jagdish Solanki,

10 Climate Footprint part of Bayer Climate Check Page 10 Bayer Climate Check, Jagdish Solanki,

11 The Climate Footprint is the KPI to assess the total Climate Impact A new indicator to assess climate impact of Bayer production processes Based on the Life Cycle Analysis method Takes into account the influence of energy consumption, raw materials, logistics and direct emissions Data acquisition by a detailed questionnaire Factory gate Factory gate Transport Footprint raw material from suppliers Electricity By-product Footprint own raw material Production Plant A Footprint Product A Production Plant B Footprint Product B Resulting in: kg CO 2 e / kg product Steam Page 11 Bayer Climate Check, Jagdish Solanki,

12 Carbon, CO 2, Climate,, Footprints: Semantics and definitions. Carbon Footprint or CO 2 footprint are frequently used phrases with ambiguous meanings. In simple word, Carbon Footprint can be defined as : A carbon footprint is a measure of the impact of human activities leave on the environment, directly and indirectly or is accumulated over the life stages of a product, in terms of the amount of green house gases produced, measured in units of carbon dioxide. Definition is usually taken from Life Cycle Analysis (LCA) standards (e.g. ISO 14040). Coverage is all gases based on their green house gas potential measured in t CO 2 e. LCA covers many more sustainability aspects beyond the carbon footprint. Application of the phrase carbon footprint is very wide, e.g. products, companies, production units (plants, sites, ), buildings, services, Product Carbon Footprints (PCF) are already partly used for product labeling The Bayer Climate Footprint is based on the standards for LCA and it is the certified method within the Bayer Climate Check. Commercial tools and databanks are used. Climate Footprint is a registered trade mark for BTS. Page 12 Bayer Climate Check, Jagdish Solanki,

13 CO 2 emission reporting according to GHG Protocol distinguishes 3 scopes CO 2 CO 2, N 2 O, SF 6, CH 4, Scope 2: indirect emissions form energy supply Electrical Power Heat (e.g. steam) Scope 1: direct emissions t CO2 e Scope 3(optional): material up and downstream processing, application, transport, recycling, Page 13 Bayer Climate Check, Jagdish Solanki,

14 Role of CO 2 emission scopes (Carbon Footprint standards do not distinguish scopes). Scope 1: direct emissions from a plant or product Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment. Most established and published Is clearly regulated for large scale GHG emitters (power plants, steel plants, refineries, ) Scope 2: indirect emissions from energy consumption Emissions due to purchased electricity or utilities Recently voluntarily reported by companies and organisations. No legal regulations exist today for reporting, not part of the certification or trading system, Bayer reporting according to GRI Scope 3: other indirect emissions from raw materials, product usage, Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services. Not standardized reported by companies though still used Page 14 Bayer Climate Check, Jagdish Solanki,

15 The Climate Footprint is designed to cover the relevant CO 2 contributions for production units. Carbon Footprints can have any scope between cradle to gate and cradle to grave. Cradle to gate The Climate Footprint covers the impact of our products up to the gate (no downstream contributions) according to LCA rules Cradle to grave Raw Material Upstream Processing Chemical Processing Bayer Climate Footprint Distribution Product Application Disposal Total Carbon Footprint Upstream: Unique allocation of production route unique CO2 allocation distinct footprint Downstream: Manifold product & lifecycle routes Assumptions and vague approximations ambiguous footprint Page 15 Bayer Climate Check, Jagdish Solanki,

16 The Climate Footprint shows the individual contributions and the reduction potential. Examples for Climate Footprints Packaging Transport Energy Carrier Power Steam Raw Materials 41 Iopromid base 2 Antracol WP 70 base 3 BPA UER base t CO2e / t 27 Adalat Gits base Power Steam Annual reduction potential from Energy Efficiency measures 838 Iopromid 1905 FU BPA UER t CO2e / a 1950 FSB Page 16 Bayer Climate Check, Jagdish Solanki,

17 The Climate Footprint takes a pragmatic approach to assess climate impact with limited effort. There is no absolutely correct value of a Climate Footprint. Correctness is a matter of making appropriate assumptions and applying an accepted (certified) methodology. Accuracy is a matter of data gathering and detailing the production chain. The Climate Footprint is designed to deliver meaningful results with limited cost and amount of work. Use established databank values where available. Application of Proxies for complex raw materials. For multi-purpose plants: select major products Lump products and create typical footprints rather than many individual Typically scope to budget for 5 8 days is possible (data gathering at plant/site not included) Page 17 Bayer Climate Check, Jagdish Solanki,

18 Carbon Footprint, other approaches & public expectations Retailers push the Product Carbon Footprint to differentiate from competitors. NGOs push the Carbon Footprint as an industry independent tool to avoid green washing Politics is looking for cross-industry applicable methods. Non-energy intensive industries (e.g. IT, communications) introduce carbon footprints. This creates pressure on the energy intensive industry. Winners of a low carbon society push the carbon footprint. PCF are used where it promises opportunistic advantages. No systematic and comparability of current approaches. Most companies communicate the value of their products. BTS offers the calculation of Carbon Footprints according to LCA standards as a service. Page 18 Bayer Climate Check, Jagdish Solanki,

19 Product Carbon Footprint: Example Tesco (UK) Page 19 Bayer Climate Check, Jagdish Solanki,

20 The Climate Footprint is certified by TÜV Süd Page 20 Bayer Climate Check, Jagdish Solanki,

21 How to get data for the Climate Footprint Data Acquisition by a questionnaire concerning: Energies Utilities Raw Materials, Products and byproducts Auxiliaries Transportation Waste and waste treatment And all further possible sources of emissions (e.g. refrigeration, direct emissions) results in: as-is-state (basis scenario) of the plant Documentation of the technical processes Page 21 Bayer Climate Check, Jagdish Solanki,

22 Energy Efficiency Check part of Bayer Climate Check Page 22 Bayer Climate Check, Jagdish Solanki,

23 The Energy Efficiency Check is a holistic approach The Energy Efficiency Check identifies measures for energy & CO 2 e emission reduction. applies of a wide range of state-of-the-art methods and tools in a systematic approach. brings together the experience of plant engineers & operators and BTS experts from several competencies. BTS has successfully executed more than 130 projects. Customers are e.g.: BMS, BCS, BHC, Currenta, Lanxess, Saltigo, H.C. Starck, Ineos, Clariant Indswift Lab. Ltd and Indorama through DEG Page 23 Bayer Climate Check, Jagdish Solanki,

24 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation An Energy Efficiency Check comprises three steps: Analysis Idea Generation Evaluation Result: List of feasible improvement suggestions with: Savings potential Costs (rough estimate, if possible) Profitability (rough estimate, if possible) Page 24 Bayer Climate Check, Jagdish Solanki,

25 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Analysis Goal: - identification of main levers for energy reduction - acquisition of data Determine and quantify energy consumers / producers Determine relevant data of energy consumers /producers, e.g. power, temperature, flows, technical equipment data If reasonable: build / update process model Result: consistent data base reference case Energy Distribution Sankey Diagram Page 25 Bayer Climate Check, Jagdish Solanki,

26 Comprehensive Energy Audit Workflow Analysis Idea Generation Goal: determination of measures for energy reduction Application of a wide range of state-of-the-art methods Idea Generation Evaluation Improvement measures range from simple operational adjustments to complex adjustments Different levels of energy optimization Energy / Utility Systems Process Improvements Process Control / Automation Equipment Check Operational Improvements Heat Integration / Heat Recovery Facility Check: Insulation / Illumination Page 26 Bayer Climate Check, Jagdish Solanki,

27 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Idea Generation Equipment check Evaluation of performance of larger energy consumers Checklists: check for best practice / benchmarking Examples: large pumps: operating point, control strategy, frequency drive heat exchanger: control strategy, cleaning program in case of fouling unit operation such as dryer, high-viscous-equipment etc. Motors Pumps Compressors Page 27 Bayer Climate Check, Jagdish Solanki,

28 TEMPERATURE Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Idea Generation Heat Integration / Heat Recovery Pinch Analysis (if reasonable): heat integration possibilities, heat exchanger network Total Site Analysis (if reasonable): heat integration across plants e.g. via utility systems Heat recovery and reuse of waste heat: check application of technical solutions such as absorption chiller, heat pumps, vapor recompression Pinch Analysis min heating demand Case: Poly_1 Heat Exchanger Network DTMIN: 7.0 (Duty based) pinch point T1REB T10REB T2REB T4BREB T4AREB T6REB T5REB T7REB E E98A E E98B E22B E23DE E101DE E24DE E22A 26.0 E23ABC E101ABC E24ABC 65.8 T1CON T2CON T10CON 32.0 E26ABC A E21AB REACOS E221B E21C E E27ABCD 26.0 E T4BCON 30.0 E E212 T4ACON E12 T6CON T7CON T5CON REACNS Page 28 Bayer Climate Check, Jagdish Solanki, min cooling demand heat integration possible ENTHALPY Q: Q: Q: Q: Q: Q: Q: Q: Q: Q:678.2 Q: Q:74.7 Q: Q: Q:156.7 Q:235.0 Q: Q: Q:24.7 Q:430.3 Q:4.0 Q: Q: Q:40.2 Q: Q: Q:553.0 Q:829.5 Q:1.8 Q:1.6 Q:64.2 Q:508.7 Q: Q:247.6 Q: Q:371.1 Q:556.7 Q:69.5 Q:

29 HE ATE R Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Idea Generation Operational / Process Improvements Improved process operation and process control: optimize operating parameters and set points, example: distillation: operating conditions, control strategy scenario studies with process models: analyze effect of altering operating parameters analysis of operating data Improved / alternative process design example: replacement of trays by packing in distillation Analysis of Operating Data Process Model ic5 Page 29 Bayer Climate Check, Jagdish Solanki,

30 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Idea Generation Energy / Utilities Auditing of energy and utility systems (dependent on scope): e.g. steam and electricity generation, cooling towers, pressurized air, refrigeration, HVAC assess utility generation by benchmarks and expert evaluation assess utility distribution grids (e.g. leakage elimination, steamtrap maintenance, return / reuse of condensate) Energy contracting: analyze energy contracts and check for suggestions for cost savings Utility Systems Page 30 Bayer Climate Check, Jagdish Solanki,

31 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Idea Generation On-site Brainstorming and interviews: Goal: incorporate improvement ideas from plant management and operating employees Perform moderated sessions of open brainstorming and interviews with: Plant management / plant engineers Operating employees Examples Experts from customer BTS experts Facility Check: plant inspection tours by energy experts, e.g. inspect insulation, assess illumination Page 31 Bayer Climate Check, Jagdish Solanki,

32 Energy Efficiency Check Workflow Analysis Idea Generation Evaluation Rough evaluation of measures for energy reduction with regard to: Feasibility Savings potential Costs (rough estimate, if possible) Profitability (rough estimate, if possible) Categories of feasibility : A B C(C1/C2/C3) Feasible e.g. proven technology, no obvious concerns Needs further Evaluation Not Feasible Examples Result: list of feasible improvement suggestions with savings potential, costs and profitability Page 32 Bayer Climate Check, Jagdish Solanki,

33 Energy Efficiency Check Workflow Analysis Profitability C1 A profitable Idea Generation 3 years ROI B Evaluation not profitable C3 C2 difficult easy Portfolio Categories A = feasible and profitable B = likely feasible and profitable, needs further evaluation C1 = technically (currently) not feasible but profitable C2 = technically feasible but not profitable C3 = technically (currently) not feasible & not profitable Technical Feasibility Page 33 Bayer Climate Check, Jagdish Solanki,

34 Thanks for your attention Page 34 Bayer Climate Check, Jagdish Solanki,

35 Questions??? Page 35 Bayer Climate Check, Jagdish Solanki,

36 Backup Backup slides Page 36 Bayer Climate Check, Jagdish Solanki,

37 Idea Generation- examples Page 37 Bayer Climate Check, Jagdish Solanki,

38 Project Evaluation- example Project title Short description current situation Short project idea Potential calculation Investment calculation Any constrain from customer point of view Project evaluation/economics Page 38 Bayer Climate Check, Jagdish Solanki,

39 Project Evaluation- example Page 39 Bayer Climate Check, Jagdish Solanki,

40 Thank you! / Jagdish Solanki / BTS India

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