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Energy Efficiency
Consulting Competencies & Capabilities
Presenter’s Name
Presenter’s Title
Client Name/Location
Date
Agenda
Business Case for Energy Efficiency
Energy Efficiency Practice
DuPont Energy Efficiency Track Record
References
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External Drivers are pressuring companies to improve Energy
Efficiency
External drivers

Volatility, magnitude and escalation of energy costs are
increasing the urgency to drive improvements in energy
efficiency.

Governments and global institutions are introducing new energy
management regulations and policies, pressuring companies &
societies to re-think energy consumption.
1. Volatility of resource costs
2. Public policy
3. Access to capital
 The Investment community is increasing the weight of a
company’s energy efficiency commitments and capabilities when
making investment choices.
4. Public accountability
 Companies are expected to publish energy improvement goals
and are being held accountable for delivering results.
5. Competition

Energy efficiency is being used as a powerful strategy to lower
the cost of goods and attract customers at every level.
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1. Volatility of resource costs
Rising energy prices are focusing great attention to more efficient use of resources
World Crude Oil Prices, 1980-2035
$200*
$125
"The high oil prices will encourage us all to focus
on renewable energy. We will have to push
harder."
Krairit Nilkuha, director-general of the U.S. Alternative Energy
Development and Efficiency Department (Jan 2011)
$51
Natural Gas Prices, (1990 -2035)
Forecasted energy prices will
encourage industries to:
 Invest in development of new
technologies that are less energy
intensive and improve productivity
 Increase the demand for
sustainable energy sources that
generate less GHG emissions
 Promote efficient use of fossil fuel
energy sources
*Nominal oil price – the higher projected oil price.
**% consumption as reported by EIA in the 2011 Energy Outlook early release
Source: International Energy Agency (IEA) – World Energy Outlook 2010; U.S. Energy Information Administration (EIA) website
SLS › Sustainable Operations › EE › DuPont Resume › Business Case
2. Public Policy
Many countries are developing and implementing policies to promote efficient
use of energy sources and reduction of energy-related carbon emissions
Example Policies
Country/Region
Policy
Detail
United States
New Corporate Average Fuel Economy
(CAFE) Standards
Sales-weighted fuel economy for light-duty vehicles capped at
39mpg in 2016, 35.5 mpg for cars.
China
Golden Sun Programme
Subsidies 50% of investment cost for on-grid solar-power projects
(over 500MW) and 70% for off-grid projects, 2009-2011.
Feed-in tariff for wind power plant
Four categories of on-grid tariffs for new wind projects, based on
regions of varying wind conditions.
Nuclear programme
Planned expansion of nuclear capacity to 2020.
European Union
20-20-20 Package
Cap on overall greenhouse-gas emissions of 20% below 1990 levels
by 2020. National renewable energy targets for emission reductions
and to reduce energy imports. Include a minimum 10% share for
alternative fuels in gasoline and diesel by 2020. Revised guidelines
on state aid for environmental protection to support development
and safe use of carbon capture and storage (CCS).
Japan
Photovoltaic (PV) subsidy and feed-in tariff
for households
Subsidy: JPY 70 000/kW with a total budget of JPY 20 billion (April
2009 to january 2010). Feed-in tariff: surplus electricity to be
purchased by electric utilities at twice retail price (JPY 48/KWh).
Sources: International Energy Agency (www.iea.com) , World Energy Outlook 2009
SLS › Sustainable Operations › EE › DuPont Resume › Business Case
4. Public Accountability
The number of Fortune Global 250 companies publishing Sustainability
reports has been increasing in the last 15 years
Percentage of Fortune Global 250 publishing a
Sustainability Report
Many of these companies include
energy goals and performance in their
sustainability reports
100%
80%
60%
40%
20%
GRI – G1
1999
0%
1998
GRI – G2
2002
2001
Example energy performance reported in sustainability report
GRI – G3
2006
2004
2008
GRI: Global Reporting Initiative
Chevron website, Chevron Corporate Responsibility Report 2009
GRI: Global Reporting Initiative
SLS › Sustainable Operations › EE › DuPont Resume › Business Case
5. Competition
As energy is becoming more expensive, companies are strategically focusing
on its efficient use as a way to gain competitive advantage
More than 80% of surveyed companies rated energy to be
“extremely “ or “very” important to their business, making energy
an strategic factor to focus on to gain competitive advantage.
40.80%
Extremely
39.80%
Very
16.30%
Somewhat
Not at all
Not sure
3.10%
0.00%
Source: The Conference Board, Strategic Energy Management, 2004.
For much of the global economy, energy has
become one of the strategic factors driving business
decision-making.
Business and consumers are increasingly
considering the energy efficiency of the products
and services they buy and use. In Industrial
production, companies are searching for the most
energy-efficient process design solutions.
(…) these development are the results of economic
and political facts: the long-term depletion of fossil
fuels and public policy decisions to curb greenhouse
gas emissions (GHG).
Thus, energy has become a key factor in gaining a
competitive edge, and the relevant global markets
are growing rapidly.
McKinsey & Company, Energy: A key competitive
Advantage New sources of growth and productivity,
April 2009.
SLS › Sustainable Operations › EE › DuPont Resume › Business Case
DuPont’s enterprise-wide management systems & cultural
change approaches drive energy efficiency results
Identifying and elevating energy cost as a strategic business issue
Understanding business implications of energy consumption and escalating costs
Understanding implications of energy cost variability on portfolio profitability
Benchmarking and quantifying the total opportunity value
Developing skills and capabilities of the people in the organization
Building collaborative teams
Providing enabling tools
Identifying and executing the right projects to drive highest gain results
Prioritizing highest gain / lowest investment opportunities
Utilizing leading methods for improvement opportunity execution (six sigma, lean, etc)
Bringing deep technical expertise, in both energy systems & core processes
Implementing a vertically integrated management approach to drive results
Driving leadership and management commitment to breakout performance
Instituting organizational structures and accountabilities to drive results
Designing and implementing managing processes to sustain results
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Simplified Energy Cost Flow
Sourcing
Efficiency
Core Manufacturing
Process
Energy Input
• Energy cost is a function of pricing,
consumption, GHG credits/options,
and incentives
• Pricing is driven by market
dynamics, but is negotiable
• Efficiency efforts are focused on
minimizing waste
• Improvements to efficiency:
• Energy Source Mix
• Energy Pricing
Energy Systems
Energy Culture
Energy Waste
Core Technology, capitaldriven
Energy System
improvements, low
capital/cost
Changing behaviors –
minimal investment
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Energy Planning Process Overview
Recognize the
Energy Challenge
Develop an
Energy Plan
Assess Process
Energy use
Energy
Goals
Workshop
Energy Plan Template
Identify
Opportunities
Energy-related Six
Sigma Projects Virtual
Workshops
Identify
Opportunities
“Top Ten” Energy
Projects Initiative
Plant Energy
Assessment Template
Develop
Capital Projects
Appropriate
Capital Funds
Internal
Capital
External Funds
(Performance
Contracting)
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Agenda
Business Case for Energy Efficiency
Competencies and Capabilities
DuPont Energy Efficiency Track Record
References
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We help you achieve cost reductions and security of supply
through efficiency and improved operating team capabilities
Energy Efficiency
Emissions
Supply
Chain
Providing an effective energy
management system that’s rooted in
leadership enablement, clear
organizational goals, effective staffing
and training, and specific processes and
actions

Integrating energy efficiency management
into the strategy and execution of the
ongoing business processes (capital,
cost, resources, etc.)

Designing a practical and enduring
energy management process to sustain
and build on achieved goals – customized
at each level of the organization
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Resources
People
Management
Culture
Quality
Maintenance

Energy
Reliability
Safety
Competitive Advantage Through Proactive Approaches
“We are uniquely able to combine knowledge, experience and technology to
identify, capture, and deliver real and lasting energy savings across your portfolio
of assets.”
Risk Mitigation
Awareness and
Compliance
Cost Reduction
Operational efficiency
(inside out approach
prevailing)
Revenue generation
Product innovation
(outside in approach
prevailing)
Competitive advantage
Influence on Society
and the competitive
landscape
Moving from discrete energy reduction initiatives to integrated energy
management strategies that return significant cash.
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Corporate Approach to Strategic Issues
Recognize strategic value & drive from the top
Line accountability
Appropriate support resources
Integrated Management System
Consistent implementation approach across entire
operations portfolio
Rigorous performance management
Prioritize no-capital & low-capital improvement
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Energy Management System (EMS)
Strong Leadership
Engaged & Committed Leadership
Challenging Goals, Policies, & Principles
Metrics and Data-Driven Decisions
Appropriate Organizational Structure
Integrated Energy Efficiency Organization
Responsible Line Organization
Integrated Energy
Management
Culture
Timely Recognition of Success
Focused Processes and Actions
Consistent & Targeted Business Planning Process
Commitment to Training & Development
Effective Communication System
Standard Improvement Methodology
These elements, and the system for realizing them, form the best practice
reference model against which we implement change
DuPont Sustainable Solutions helps clients achieve
operational excellence
Consulting Businesses & Offerings
Safety Resources
Sustainable
Operations
Transform your
workplace culture,
develop employee
skills, reduce
incidents and
injuries, which
improve operational
efficiency and
sustain company
growth.
Maximize returns,
minimize waste and
reduce risks
through
sustainability,
energy efficiency
and sustainable
assets
management.
Training Solutions
Empower
employees with
critical training in
safety, industrial
skills and ethics and
compliance by
integrating
eLearning tools,
instructor-led
courses and
classroom training.
Clean Technologies
Cleaner air and
cleaner fuels are the
result of best-inclass technologies,
equipment and
services combined
with strong technical
and engineering
capabilities.
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Agenda
Business Case for Energy Efficiency
Competencies & Capabilities
DuPont Energy Efficiency Track Record
References
17
DuPont
Founded in 1802
A Fortune Top 100 Science Company
Recognized for experience and success in operational
excellence
Active Leader in environmental sustainability since
1989 – “Laggard to Leader”
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DuPont Sustainable Solutions
Consulting, Technology, & Training Services:
DuPont Sustainable Solutions
• Global Safety Consultants Since 1998*
• Clean Technologies
• Training Solutions
• Sustainable Operations
– Environment, Energy, Sustainable Assets
Improve Performance, Release Capital…Increase
Shareholder & Stakeholder Value
*Has existed as a safety services business since the early 1970's.
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The DuPont Energy & Enviornmental Challenge
DuPont has addressed sustainability and energy reductions on a
continuous basis since 1989
Our motivations:

Recognized energy cost as a significant part of our total operating
cost

Experienced supply disruptions as costs were increasing rapidly

Energy efficiency would provide the greatest cost savings among
global warming initiatives, but emissions would gain ground

Clearly viewed energy efficiency as a way to outperform
competitors
Overall, the health and welfare of the organization and its
product lines would be at risk if we didn’t act.
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DuPont Energy & Environmental Accomplishments
•
•
•
19% reduction in energy use since
1990 baseline while production
increased by 21%
Over $5 Billion in energy cost savings
since 1990 baseline
Gained industry recognition from
“Laggard” to “Leader”
With this knowledge and know-how,
we have been able to accelerate
progress and continue to raise the bar.
DuPont Global Environmental Performance Evolution
(Absolute Values)
160%
Percent of 1990 (2004 for water)
•
Other Sustainability Results since 1990:
Safety & Health
World-Class
Major Incidents
90% ↓
Air Toxics
75% ↓
Air Carcinogens
92% ↓
Hazardous Waste (Dry)
42% ↓
U.S. TRI “Releases”
77% ↓
140%
120%
100%
80%
60%
Production
Water
40%
Hazardous Waste
20%
Energy
CO2 eq.
0%
1990
1995
2000
2005
2009
* Sustainability accomplishments
from 1990 through 2009 (per data
available and used for the 2010
DuPont Global Reporting Initiative
Report)
** TRI = toxic release inventory
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Agenda
Business Case for Energy Efficiency
Competencies & Capabilities
DuPont Energy Efficiency Track Record
References
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Example: Oil & Gas Client
Project Objectives
Goal:
10% Energy Reduction by 2015
Objectives:
Leadership commitment and
cultural change that leads to a
sustainable corporate best practice
Energy Management process
Performance management process
and the metrics necessary for
managing the activities and
projects
Pilot of new Energy Management
System at a Refinery
Possible Results
Estimated benefits from an Energy
Efficiency Improvement Program
Without investment: 3 – 5%
With Capex <1000K$ 8 – 12%
With Capex >1000K$ 16 – 24%
World-Class Refineries consume
~25% less than average
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Example: Oil & Gas Approach
Corporate Energy Management System
Corporate & Site Assessment/Survey
Implementation Plan
Development
Management System & KPI
Development
Corporate Rollout Plan
Development
Organizational Development & Training
Process Assessment
& Continuous
Improvement Plan
1/1/10
6/1/10
11/1/11
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 Over $1.5 MM in direct benefit in
less than 1 year
Example: Oil & Gas Approach
 Corporate system designed for
sustainability
Corporate Energy Management System
 Process, energy system, and
culture opportunities identified
and implemented
Corporate & Site Assessment/Survey
Implementation Plan Development
Management System & KPI Development
Corporate Rollout Plan Development
Organizational Development & Training
Process Assessment &
Continuous Improvement Plan
Site Pilot
Energy Culture Survey
Technical Review
Management System Technical Assessment
Leadership Alignment
Solution Design
KPI Development
1/1/10
6/1/10
11/1/11
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Are you ready to build a business case for energy?
 Escalating costs
 Supply limits
Burning
Platform
 Environmental impacts
 Stakeholder expectations
 Goals and Strategy
 Increased production
Shared Vision
 Shareholder value growth
 Significant footprint benefits
 Rapid savings opportunities
 Leadership
First Practical
Steps
 Organization and Structure
 Processes and Actions
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Success depends on an ability to create and execute the
business case for energy efficiency
• Identifying and elevating energy costs as a strategic business
issue
• Developing skills and capabilities of people across the
organization
• Identifying and executing the right projects to drive highest
gains
• Implementing an enterprise-wide management approach to
drive results
Enterprise-wide systems that combine knowledge, experience and technology
to identify, capture, and deliver real and lasting energy savings across your
portfolio.”
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Speaker’s Name
Speaker’s Title
E-mail Address