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© ABB Engineering Services Responding to the Challenge of Climate Change Energy © ABB Engineering Services - 2 Workshop Session - Energy Introductions The Drivers (reminder) How can … Now let’s talk about your experiences … Practical Opportunities & Real Issues … how they were realised and how they were overcome Business and Energy - 3 Drivers Rising energy costs World oil, gas, coal prices all rising Prices will remain high and volatile for foreseeable future High demand - China, supply side instabilities, shortages of capacity Increasing reliance on imports – links gas prices more closely to oil No return to historic norms Environmental compliance Carbon management © ABB Engineering Services - 3 Increasing raft of rules and regulations relating to emissions IPPC provides legal framework to drive improvement Slow start but growing inducements to reduce carbon emissions Climate Change Levy (carbon tax) moving to EU ETS II And …. Rising energy costs It’s everywhere … Energy Intensity vs Energy Consumption (US) Energy Intensity (Consumption per $ value added kBtu) © ABB Engineering Services - 4 1000 Petroleum Refining Cement 100 Iron & steel Alumina & Aluminium Pulp & Paper Chemicals 10 Metal Casting Food Manufacturing Metal Fabrication 1 1 10 100 1000 Energy Consumption (TBtu) Source: Energy Trends in Selected Manufacturing Sectors: Opportunities and Challenges for Environmentally Preferable Energy Outcomes”, U.S. Environmental Protection Agency, March 2007 10000 Know where it goes … (?) Others 9% Other Electrical 12% Process Heating 43% Process Cooling 17% © ABB Engineering Services - 5 Fans System 6% Air Compression 7% Pump System 6% Step by step … ENERGY SAVING ALTERNATIVE PROCESS PROCESS INTEGRATION PROCESS MODIFICATION © ABB Engineering Services - 6 CONTROL SYSTEMS HOUSEKEEPING COST OF IMPLEMENTATION Just motors … © ABB Engineering Services - 7 Electric motors use 65% of electricity in industrial facilities Focus on the larger motors on the site Eliminate / reduce idle (no load) time Challenge sizing of motor (starting load / running load) Challenge duty of motor (pumps, agitators, grinding, fans, compressors) Consider use of variable speed drives (pumps & fans in particular) Case study: Energy savings - PVC production Client: Major PVC Producer, UK Background Major UK PVC producer seeking reductions in energy costs © ABB Engineering Services - 8 Solution Analyse energy consumption on across the site Numerous opportunities for cost reduction Tariff management Improving efficiency of steam generation, distribution and use Improved electrical efficiency across the motor portfolio Improving heat recovery – “thermo-crime” Benefits Reduction of ~10% in site utility bill Discussion and Debate – Suggested Focus © ABB Engineering Services - 9 Global issue but local challenge What does it mean for my business? Sales Operating Costs Availability of Resources (sustainability) Opportunities as well as Threats