Efficiency Plus Energy efficiency in practice

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1 Efficiency Plus Energy efficiency in practice Heating systems Industrial systems Refrigeration systems

2 Steps to increase efficiency Efficient use of energy for greater competitiveness 4 Significance of Efficiency Plus in manufacturing 6 How to identify potential Energy management lower consumption through extensive system control 8 Load profile analyses illustrate the actual energy demand 10 Energy potential in processes and plants increases efficiency 11 Put into practice at Viessmann Energy centre with around 60 percent proportion of renewables 12

3 2/3 Biogas to bio-natural gas Biogas plants for on-site consumption and trading in biomethane 14 Specialists for sustainable energy management Etanomics develops energy concepts with high savings potential 16 Viessmann climate of innovation The company 19

4 Short rotation coppices Substitute up to 850,000 l of fuel oil equivalent per year Biogas plants Generate up to 2.7 GWh heat and power and inject 1.6 million m 3 gas Efficient use of energy for greater competitiveness Viessmann is a leading international manufacturer of intelligent, convenient and efficient systems that generate heat, steam, cooling and provide decentralised power. Consequently, Viessmann can offer its customers innovative products that stand out as a result of their top quality, energy efficiency and long service life. Viessmann technology enables the energy and climate goals set at the political level for 2050 to be met today. More than 40 years ago the company began to install energy and raw materialsaving production facilities at its main site in Allendorf (Eder). Ongoing savings and improvements in efficiency have enabled numerous milestones to be reached since then. Efficiency Plus sets new standards Apart from energy efficiency, operational and material efficiency were also significantly improved. Making structures and processes in production and administration both leaner and more flexible has proven to be a major contributing factor to improved competitiveness. Material-saving product design, rigorous optimisation of the use of energy and a high degree of heat recovery reduce manufacturing costs and increase the flexibility in pricing.

5 4/5 Central heat recovery Production 9600 MWh waste heat from production and Energy management saves test beds are fed into the system annually 23,000 MWh per year Energy centre Efficient systems generate 13,700 kw thermal output with 60 % proportion of renewables Viessmann Werke, Allendorf (Eder) the sustainability project has already been successfully implemented in many parts of the company. Viessmann is way ahead of political goals The German Federal Government has set a broad timeframe for reaching its climate goals: A reduction of CO2 emissions by 80 percent is aimed for no sooner than 2050, whilst the proportion of renewables should by then have increased to 60 percent. - 80% - 80% Proportion of renewables 60% Proportion of renewables Climate achieved goals Viessmann is ahead of these goals by decades: The company has already achieved the required values and will continue to improve on them in the years to come. Viessmann has been awarded the German Sustainability Prize no less than three times.

6 Significance of Efficiency Plus in manufacturing With the Efficiency Plus project, Viessmann already meets the German Government's energy and climate goals for 2050 at its Allendorf site. By increasing energy efficiency by 22 percent and substituting 18 percent of fossil fuels with renewables, the consumption of oil and gas was reduced by 60 percent, whilst CO 2 emissions dropped by 80 percent. On the consumption side, this was achieved by energy-optimised production plants and processes, consistent heat recovery and improved thermal insulation of the buildings. Substituting fossil fuels In the Viessmann energy centre, all future oriented technologies are being used, such as highly efficient condensing technology and combined heat and power plants. In addition, renewables are being substituted for fossil fuels in ever increasing amounts. The focus is on the use of solid biomass and biogas, utilisation of solar energy from solar thermal and photovoltaic plants, and air source or geothermal heat pump technology.

7 6/7 Energy-optimised plants and processes in production Mains power Power supply Biogas Biomass Production Woodchips Plant efficiency Fuel oil Building heating Natural gas Waste heat utilisation The material flux diagram of the Allendorf site gives a clear overview of where the most energy is used and where the highest costs or emissions occur.

8 Energy management a system under control Production of heat exchangers Energy management lower consumption through extensive system control Viessmann energy management system is of critical importance. It continually checks where potential savings can be made in current production. For this, the most relevant factors are energy consumption and the supply of energy generated on site into the grid. yielded through heat recovery and returned to the energy cycle. Individually adjustable consumption controllers raise automatic alarms if energy consumption is unusually high compared to previous values. Always up to date on consumption The energy management system is visualised as an energy cockpit using flow diagrams. Meters integrated into the network provide information on current consumption, as well as the amount of energy generated on site or ISO specifies the requirements of an energy management system. These include developing an efficient energy policy within the company, taking the necessary steps to improve performance, and reducing energy costs and CO 2 emissions.

9 8/9 Clearly displayed and uninterrupted control of energy consumption Networking energy streams affects consumers and generators Apart from rigorously reducing the energy demand on the consumption side, the substitution of oil or gas with renewables and the efficiency increase on the generation side are important levers to sustainably reduce fuel consumption. In particular, the increased use of biomass enables substantial potential to be exploited. Compound energy system bundles residual and waste heat The networking of energy streams supplies an additional efficiency bonus through heat recovery. Waste heat is channelled via a common return into a compound energy system and reused to supply heat. The waste heat originates from compressed air generation, the IT centre and from test beds in production and R&D.

10 Load profile analyses clearly indicate the peak demands in a production stage. Load profile analyses illustrate the actual energy demand One important prerequisite for optimising the energy demand is the systematic compilation and illustration of the energy and material flux in a company. To this end, a detailed mass flow analysis is carried out, which forms the basis for understanding individual processes and sequences within the system as a whole. Utilising energy potential without incurring expenditure The potential analysis represents a further step in this endeavour. It investigated the potential available at a production facility within the Viessmann Group for an energy concept with an assured future. Load profile analyses provide more in-depth knowledge of the information obtained, using statistical measurements and processes. These analyses aim to provide a structured definition of the steps and procedures that can help to reduce energy demand, and consequently costs and emissions. It not only shows the necessary investments, but also the potential that can be utilised without incurring expenditure. For example, control optimisation, definition and control of shutdown processes or pressure reductions can save up to 10 percent in energy costs every year without substantial outlay.

11 10/11 Powder coating of casing components in production Energy potential in processes and plants increases efficiency The metalworking industry accounts for a large proportion of German manufacturing companies. In many of these, pieces of sheet metal need to be washed and painted following their forming processes. These processes require particular attention when it comes to energy consumption. Here, processes and plants harbour enormous saving potential. For the Efficiency Plus project at Viessmann, for example, measurements provided pertinent parameters which allowed comparisons between production numbers and energy consumption to be made. The result: In the same process, energy consumption could vary by up to 20 percent. Utilising process potential Fluids employed in production are frequently treated and reused several times in sealed circuits before the waste heat is fed into the compound energy system. Savings with the right lighting The new lighting concept focused on factors such as economy, effectiveness in the working environment and automation. New LED technology achieves the same level of brightness with substantially less energy and still offers a long service life.

12 Energy centre with around 60 percent proportion of renewables The energy concept for the Allendorf site centres on improving efficiency and substituting fossil fuels with renewables. Viessmann focuses on biomass, which today, already covers 60 percent of the heat demand at the company's head office. Central heat recovery The networking of energy streams supplies an additional efficiency bonus through central heat recovery. As part of this, approximately 9600 MWh of waste heat from compressed air generation, the IT centre and the test beds is utilised. The plant as a whole is interconnected via the temperature networks to form the compound energy system. Energy centre with efficient and environmentally responsible technologies In the energy centre, which was modernised in 2012, all energy sources relevant to the heating market are deployed oil and gas, biomass, solar energy, as well as heat from the ambient air and the ground. Innovative technologies such as condensing technology and combined heat & power generation ensure highly efficient utilisation of these sources. The energy centre is designed with three stages:

13 12/13 The energy centre at Viessmann Allendorf: Two biomass boilers on the right; two CHP units alongside Two CHP units operated with bionatural gas cover the base heat load and simultaneously generate electricity. When demand is higher, for example in winter, the biomass boilers operated with woodchips are also fired up. An ORC turbine uses this heat to generate electricity, too. Oil and gas boilers with downstream flue gas heat exchangers cover peak loads and act as redundant boilers. Biomass from our own coppice To obtain biomass, Viessmann cultivates quick-growing poplar trees in short rotation coppices. Harvesting takes place three years after planting, when timber is turned into woodchips. The yield per hectare and year equates to the energy that is contained in up to 5000 litres of fuel oil. Short rotation coppicing also enables the company to gain experience in this form of energy generation throughout the entire process chain, and to optimise this further. Harvesting a short rotation coppice to yield biomass

14 Biogas plants for on-site consumption and trading in biomethane The location of a manufacturing company has a significant influence on the degree to which it can generate its own energy be it for consumption on site or for energy trading. The rural location of the Viessmann site is ideal for the operation of biomass plants. Dry and wet fermentation The two biogas plants owned by the company operate according to the principles of dry and wet fermentation. The former operates primarily with residues from agriculture and countryside management tonnes of substrate annually supply more than 1.2 million kwh of electricity for which Viessmann receives remuneration according to the German Renewable Energy Sources Act (EEG).

15 14/15 The two biogas plants operated by Viessmann: The plant on the left ferments dry biomass and the one on the right provides wet fermentation. The heat generated from this energy amounts to almost 1.5 million kwh which is used to cover the base load of the heating network at the company's site. A CHP unit with an output of 190 kw el and 238 kw th converts the primary energy. The second plant is operated with agricultural waste such as slurry and manure. Biogas to bio-natural gas The biogas created by this process is upgraded to biomethane which has the same qualities as natural gas. Viessmann is remunerated for all the gas it injects into the public mains at a level fixed by the government, in line with the Renewable Energy Sources Act.

16 Specialists develop individual energy concepts with high savings potential Most companies cannot draw on in-house expertise to develop and realise holistic concepts for industry and manufacturing enterprises and for service providers that are required to implement efficient energy concepts. Etanomics is the consultancy arm of the Viessmann Group. As a service provider it faces up to these challenges from the initial analysis to the implementation of complex energy concepts. Our services extend to looking at the client company as a whole. Drawing on its expertise in matters of energy, production technology and the energy, economy Etanomics analyses companies holistically and, together with these companies, develops individually tailored solutions. Etanomics assesses the optimum operating point of an energy system and creates transparency concerning energy flow and costs in a business. Frequently, initial measures that do not require any investment will already significantly reduce energy costs. Etanomics know-how flows into the creation of viable energy concepts. In this, Etanomics is open-minded as to the likely result and neutral when it comes to energy sources. Solutions are developed that will still stand up to scrutiny both over the short and the long term.

17 1 Initial analysis 16/17 Manufacturing processes Organisation Responsibility Processes Responsibility Energy economy Procurement Taxes Levies Energy equipment Generator Networks Consumers 2 Optimisation Implementation of economy measures without investment Joint development of a dynamic energy efficiency concept fit for the future Introduction/Development energy management to ISO Systematic optimisation projects and staff training 3 Efficiency management Implementation of the energy concept as system solution or in individual steps Pro-active actions in changing the technical, statutory or organisational framework conditions Marketing support The Etanomics methodology flow diagram Energy concepts from a single source Etanomics implements each energy concept individually. All goals are designed to be sustainable reduce energy costs, lower emissions and improve utilisation of resources. Summary of goals Transparency Evaluation of the manufacturing processes and the organisation Transparent energy flows and costs Efficiency Operation of the energy system at the economical optimum Complete resource efficiency and reduced CO 2 emissions Flexibility Adaptability to changing production and market conditions Ability to respond to changing statutory requirements

18 The company

19 18/19 Viessmann climate of innovation Viessmann is one of the world's leading manufacturers of intelligent, convenient and efficient systems for heating, cooling and decentralised power generation. As a third generation family run business, Viessmann has been supplying highly efficient and clean heating systems for many decades. A strong brand creates trust Together with our brand label, our key brand message is an identifying feature throughout the world. "Climate of innovation" is a promise on three levels: It is a commitment to a culture of innovation. It is also a promise of enhanced product benefits and, at the same time, an obligation to protect the environment. Acting in a sustainable manner For Viessmann, taking responsibility signifies a commitment to acting sustainably. This means to harmonise ecology, economy and social responsibility so that the needs of today are met without compromising the quality of life of future generations. We consider climate protection, environmental responsibility and resource efficiency to be key priorities throughout our company, which has more than 11,400 employees worldwide. Example of Best Practice With its strategic sustainability project, Viessmann demonstrates at its own head office in Allendorf (Eder) that the energy and climate policy goals set for 2050 can in fact be achieved today with commercially available technology. The results speak for themselves: Expansion of renewables to 60 percent CO 2 emissions reduced by 80 per cent The long-term goal is for the company to sustainably meet all of its own heating energy requirements. 2009/2011/2013: German Sustainability Award for Production/Brand/Resource Efficiency Energy Efficiency Award 2010 Viessmann Group Company details Established in: 1917 Employees: 11,400 Group turnover: 2.1 billion euros Export share: 55 percent 27 production companies in 11 countries 74 countries with sales companies and representation 120 sales offices worldwide The comprehensive product range from the Viessmann Group for all energy sources and output ranges Boilers for oil or gas Combined heat and power units Heat pumps Wood combustion technology Biogas production plants Biogas upgrading plants Solar thermal systems Photovoltaics Accessories Refrigeration technology

20 Viessmann Werke GmbH & Co. KG Allendorf (Eder) Telephone +49 (0) Fax +49 (0) GB 03/2015 Copyright Viessmann. Duplication and alternative use only with prior written consent. Subject to technical modifications.