Save Energy Now Energy Savings Assessments

Transcription

1 Save Energy Now Energy Savings Assessments Texas Technology Showcase Galveston, Texas December 7, 2006 Bob Gemmer, U.S. Department of Energy Industrial Technologies Program (ITP)

2 Outline Outline of Save Energy Now Energy Savings Assessments Overview Implementation Partnerships and Outreach 2

3 Global Energy Challenges National energy security: Global oil and gas reserves are in unstable areas and flexible alternatives are not readily available Economic security: Rising prices hurt America s ability to remain competitive in the global market place Global Warming: Global concerns regarding carbon emissions and climate change are forcing industries and governments to rethink their strategies on energy fuels Natural Gas Prices, Henry Hub $ per Million Btu Oil Prices, West TX Intermediate $ per Barrel

4 Projected Energy Use Total U.S. Energy Production vs. Consumption, Quadrillion Btu per year Total U.S. Consumption Total U.S. Production Critical Gap Source: Energy Information Administration projections

5 Current U.S. Policy Environment Increased Public Awareness of Energy Issues Immediate Opportunity Implementation of Energy Policy Act 2005 (EPACT) Congress may consider additional measures General U.S. Approach Public/Private Partnerships--Engage business wherever possible Building America Building Energy Codes Program Energy Star Save Energy Now Program Leading by Example Federal Energy Management Program 5

6 Easy Ways to Save Energy Campaign Four activities were started in 2006 to respond to supply shortages and skyrocketing natural gas prices: 1. Energy Hog campaign Public Service Announcements 2. Energy Savers tips to help homeowners save energy 3. Federal Energy Management Program (FEMP) energy saving teams 4. Industrial Technologies Program (ITP) Save Energy Now 6

7 Industry: Critical to National Energy Policy Uses more energy than any other single sector; >1/3 of U.S. energy consumption 2002 Energy Use Produces approximately 30% of U.S. greenhouse gas emissions Accounts for more than 35% of U.S. natural gas demand Industry 33.4% Transportation 27.2% Accounts for 28% of U.S. electricity demand Energy is key to economic growth in domestic manufacturing Residential 21.5% Commercial 17.9% Many companies have been unable to pass higher energy costs on to their customers, which has sharply reduced their profit margins National Energy Policy, pages 2-4 7

8 Heavy Energy Use in Process Industries* 3.9 Quads Bulk 5.9 Quads Raw Commodity Materials Products Natural Resource Extraction Industries Mining Forestry Farming Oil & Gas Extraction 6.5 Quads Oil & Gas Feedstocks 25.5 Quads** Process & Materials Industries Chemicals Paper & Wood Metals Non Metallic Petroleum Refining Food Processing * 1998 estimates based primarily on MECS and AER data Includes electricity generation, transmission, and distribution losses ** Includes 6.5 Q oil & gas feedstocks Fabrication & Assembly Industries Retail Markets Plastics Fabricated Metal Products Transportation Equipment Machinery Computer & Electronic Products Electrical Equipment Printing 8 Construction

9 The Context America s businesses, factories, and manufacturing facilities use massive amounts of energy. To help them during this period of tightening supply and rising costs, our Department is sending teams of qualified efficiency experts to 200 of the nation s most energy-intensive factories. Our Energy Saving Teams will work with on-site managers on ways to conserve energy and use it more efficiently. Secretary of Energy Bodman National Press Club October 3,

10 The Industrial Technologies Program (ITP) Delivering technology solutions to make American industry the global leader in high-impact, clean, efficient, energy technologies and practices. Collaborative R&D Energy-intensive Process Technologies Crosscutting Technologies Partnerships Technology Delivery Assessments Training & Tools Technology Demonstrations 10

11 ITP Mobilized Existing Capabilities Suite of respected software tools for assessing plant systems Established training programs Cadre of Qualified Specialists in various assessment tools/systems Network of university-based Industrial Assessment Centers (IACs) Secretary Bodman at the Caterpillar Tractor ESA In-depth experience in conducting plant energy assessments Strong partnerships and high credibility with influential companies in the manufacturing sector

12 Assessments Build on Existing Resources Internet Info Resources ITP and BestPractices Websites Communications Tools Energy Matters ITP E-Bulletin EERE Info Center

13 What s New? Plant Energy Profiler (PEP) Tool INPUTS Plant description Utility supply data electricity, fuel & steam Energy consuming system information Scorecard responses OUTPUTS Overall picture of plant energy use Summary of energy cost distributions Preliminary assessment & comparison Areas or energy efficiency improvement Energy cost reduction potential 13

14 Save Energy Now A DOE Activity to Help Industry Save Energy and Money Conduct energy savings assessments of the most energy-intensive U.S. plants Work with partners to create awareness and find energy savings solutions Disseminate energy savings information & tools to 50,000 plants to help reduce natural gas and electricity use. 14

15 Save Energy Now Goals: Encourage industry to voluntarily reduce its energy usage in a period of tight supplies by working with America s largest energy-intensive plants Create momentum to significantly improve energy efficiency practices throughout the manufacturing sector 15

16 Energy Savings Assessments Overview

17 Plant Energy Assessments Small/Medium Plant Assessments Large Plant Assessments Plants with energy consumption $100,000 to $2 million Over 500 assessments per year Average plant savings: 4.2 billion Btus (about $21,000) Conducted by industrial assessment centers at 26 universities Over 120 assessments underway or completed Plant wide assessments (comprehensive) Targeted system assessments (quick focused) Annual savings opportunities identified: > $250 million Average identified energy savings per plant: 10-15% Annual savings implemented ~$30 million 17

18 Energy Savings Assessments Assessments of targeted industrial systems by Qualified Specialist using the DOE software tools Focus is on training as much as doing an energy assessment Energy Savings Assessment Report identifies potential energy and cost savings Plants selected by DOE based on several factors, including: The plant s energy consumption The company s intention to include other similar plants within their company 18

19 Relatively Few Plants Use the Most Energy Number of U.S. Plants 250, , , ,000 50,000 U.S. Manufacturing Plants: By Size 226, , ,636 Percent of Total Industrial Energy Small & Medium 47% Large 53% 6,802 Annual Energy Costs 0 Small Plants <$100K Mid-Size Plants $100K-$2M Large Plants >$2M All U.S. Plants 1998 EIA MECS 19

20 Energy Savings Teams Teams Composed of DOE Qualified Energy Experts and Plant Personnel Teams will focus on steam generation. process heating, compressed air, pumps or fans Plant personnel and affiliates will be trained on DOE efficiency tools Electro-chemical 2% Process Cooling 1% Motor Systems 12% Other 4% Process Heating 38% Steam 35% Facilities 8% Manufacturing Energy Use by Type of System (%) Note: Does not include off-site losses 20

21 Energy Savings Assessments Implementation

22 Application 22

23 Application Status As of 12/04/ Applications have been received (after elimination of spurious applications) 105 exceed the 1 trillion Btu/year threshold 60 have natural gas consumption in excess of 1 trillion Btu/year 23

24 All Industrial Plants Get Assistance For plants applying who do not meet the criteria for an Energy Savings Assessment, other assistance will be offered such as: Industrial Assessment Center assessment Personalized phone consultation to address energy efficiency in their plant Self assessment tools Information products, DOE software tools and training 24

25 Energy Savings Assessment Status (12/04/06) 190 Energy Savings Assessments completed (out of 200) With 164 assessments reporting: Total potential natural gas savings of 42 trillion Btu per year equal to 580,000 U.S. homes Total cost savings potential identified = over $405 million per year While [Dow] has been a leader in energy efficiency, with DOE s help, we found yet more cost-effective opportunities to save precious energy. John Dearborn, Global Business VP, Energy, Dow 25

26 Total Energy Savings By 2008, the Assessments of 2006 will annually save the energy carried by 10 LNG tankers.

27 Many Opportunities Found 2 4 years Modify steam turbine operation Use oxygen for combustion Change process steam use 9 mo. 2 years Heat feed water with boiler blowdown Lower excess oxygen Flue gas heat recovery > 4 years Install CHP system < 9 months Improve insulation Implement steam trap program Clean heat transfer surfaces Payback Periods of Recommended Actions After 6 months: 63 plants have implemented projects worth $9 million/yr An additional $117 million per year is either underway or planned Initial 162 assessments are identifying average of $2.5 Million energy savings per plant 27

28 ESA Results Industry Energy Use (Quads) Plants Assessed/Identified Savings Chemicals 7.8 Petroleum Refining 7.3 Forest Products 3.3 Iron & Steel Food Processing Aluminum 1.9 Non-Mfg. 4.1 Other Mfg Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS 28

29 Energy Savings Assessment Process Gather Preliminary Data Conduct Plant Visit Analyze & Report Results Follow-up Train Plant Staff Teams are DOE Energy Experts and plant personnel Teams focus on fans, pumps compressors, steam or process heating systems. Plant personnel trained on DOE software tools 29

30 Assessment Expert spends 3 days on site Day 1 Safety briefing, tour plant Overview of DOE Tool to plant personnel Agree on potential energy efficiency opportunities to investigate Initiate Data Collection For Potential Opportunities Day 2 Continue data collection Apply DOE tool to quantify potential opportunities Plant lead & expert agree on opportunity results Day 3 Wrap up tool analyses Plant lead & expert ensure they agree on opportunity results Closeout meeting in p.m. to review results 30

31 Save Energy Now Assessments in 2007 (200 in 06) On-Line application again More energy system types Add compressed air, pump, and fan systems to existing process heating and steam systems Publicity & Case Studies for replication Recognition program being developed 31

32 Save Energy Now 2007 Multiple Ways for Plants to Qualify Plants using >1 Trillion Btu annually (not involved in 06) 2006 Assessment Plants can participate again must do different energy system & share the cost ~50% Plants <1TBtu can aggregate with other plants to meet 1T Btu threshold all plants get assessment (10 max) must share the cost ~50% 3rd Parties can apply on behalf of plants ~50% sharing of cost required utility, state energy office, non-profit consortium, etc. 32

33 Give a man a fish and he will eat for a day Teach a man to fish and he will eat for a lifetime 33

34 Save Energy Now Website Save Energy Now Website 34

35 Partnerships and Outreach

36 Robust Partnerships to Reach Plants Allied Partners States Utilities Equipment Suppliers & Service Companies Trade Associations Replication within Industrial Companies 36

37 Save Energy Now Outreach Goal: 50,000 Plants Utilize a wide variety of information materials, web tools and technical assistance Work with our existing partners and develop new partnerships to significantly increase our reach 37

38 Energy Matters BestPractices 8-page quarterly newsletter provides topical feature stories, guest articles by subject matter experts, case studies, efficiency tips, and program information. Topics include System-level efficiency Financing energy projects Selling Projects to Management Serves as a form of push communication to an audience of approximately 27,000 plant engineers, managers, and operators, academia, and government agencies. 38

39 ITP E-Bulletin A monthly update of key program and technology developments of interest to industrial partners, featuring Headlines New ITP Products and Resources Training Project Opportunities Case Studies 39

40 Information, Tools and Training Tip sheets, case studies, brochures, technical briefs etc. Energy Matters newsletter Industrial Technologies Monthly ebulletin Software tools Training workshops and webcasts Web sites New: Packets of Information for Plants Save Energy Now CD 40

41 EERE Information Center Information on EERE products/services Unbiased, customized technical and programmatic assistance to help achieve industrial energy savings Experts help thousands of industries as well as consultants, vendors, government agencies, and others that serve them Voice: Fax:

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43 We must take our clean energy technologies and replicate, proliferate, and accelerate. Andy Karsner Assistant Secretary Office of Energy Efficiency and Renewable Energy 43