Energy Ideas for Galvanizing

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Energy Ideas for Galvanizing Lachi Lazarov VP Business Development (423) 779-7684 lazarov@energ3.us Hubert van der Harst Chief Technology Officer (423) 315-1912 hvanderharst@energ3.us http://energ3.us/

Moving the Needle with Energy Savings Energy savings go directly to Margin

REDUCE - Why pay for energy you don t use? Metal Halide lights These tend to produce more heat than light Alternatives may make sense Compressed air One of the least efficient uses of energy Many facilities benefit from right-sizing or redesign Electric Heat Utilities love to sell this... Gas-based heating may be attractive Electric Cooling Gas-based cooling may be an option, using absorption chillers

PRODUCE - Generate some of your own energy Solar Roofs - ENERG3 provides systems to turn free sunshine into electricity. Combined Heat and Power Burn natural gas to generate electricity on site Use recovered heat for process - e.g., chilling or steam

Efficiency of the Electric Grid Vs. On Site Generation Of 100 units of fossil fuel energy burned in the grid, around 32 arrive on site for sale to end users as electricity The 68 units lost go into the atmosphere as wasted heat Water is lost to evaporation at the rate of 2 gallons for every kwh consumed On site CHP systems using natural gas are typically 70% to 85% efficient, generating less than half the pollutants to the grid - while consuming zero water On site CHP systems utilize thermal energy for process heating or cooling

SUSTAIN - Monitoring puts you in Control If you don t measure, you can t manage. The EPA claims a 35% potential energy saving across the board

Opportunities for the Galvanizing Industry

Efficiency - Why pay for energy you don t use? Metal Halide lights 20% light, 80% heat - on a good day LEDs give you 90% light.... ENERG3 can do your entire upgrade, or supply parts only for self installation Compressed air 15% air power, 75% heat - typical Major improvements can be made by balancing systems ENERG3 can do your air demand analysis and implement changes to minimize energy waste Electric Heat Electricity can be around 5 times the price of energy from gas Consider converting to gas heaters CHP provides Electricity, Heating and Cooling based on the price of natural gas

Maximizing the natural gas advantage Combined Heat and Power (CHP) CHP systems generate electricity and heat from natural gas The electricity goes directly into your load, on your side of the meter The heat is captured and fed into an absorption chiller to provide cooling for FeSO 4 recovery if required Saves a lot of money Improves environmental footprint

CHP in the Galvanizing Process

CHP in the Galvanizing Process Electrical output from the generator is directed to the electrical load. The system runs in a non-export mode so that electricity is never sent into the grid. Heat consists of high-grade from the exhaust and low-grade from the jacket water and intercooler. High-grade heat is great for low pressure steam, by means of a heat recovery steam generator (HRSG); Low-grade heat (nominally 196 F) is used for facility or process heating, or to drive absorption chillers (nominally 55 F); High-grade and low-grade may be combined based on the application, to drive a large chiller or provide process heat. Systems are factory built into transportation-sized containers, integrated and tested before being shipped to site. System sizes range from 50kW to 2MW containerized, 3MW site built.

ENERG3 Services Energy Efficiency Project development Efficiency Generation Monitoring Implementation and project management Comprehensive financial analysis to determine project viability Energy project efficiency insurance services Power purchase agreements Measurement and Verification reporting

Financial Impact

Tennessee Galvanizing Annual Energy Usage Electricity is 5.29 times the price of Natural Gas

Tennessee Galvanizing Monthly Electricity Usage

Tennessee Galvanizing Savings Calculation Annual Savings based on use of Steam Generator and Absorption Chiller

Financial Incentives 25% grant from USDA 10% business energy Investment Tax Credit MACRS 5-year accelerated depreciation 179D Tax Accounting services may yield additional benefits Typical project payback periods are in the 2 to 4 year range

Thank you, AGA! Lachi Lazarov VP Business Development (423) 779-7684 lazarov@energ3.us Questions? Hubert van der Harst Chief Technology Officer (423) 315-1912 hvanderharst@energ3.us http://energ3.us/