Integrated Energy EfficiencyManagement
Chistopher Smith
Global Practice Leader
CIS Sustainable Energy Forum
June 2, 2011
Driving results through integrated systems &cultural change
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Topics
•Energy Efficiency Approach
•Key Sustainability & Energy Efficiency“Drivers”
•Proven Energy Efficiency Methods &Approaches
•Energy Efficiency Results
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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 acrossentire operations portfolio
•Rigorous performance management
•Prioritize no-capital & low-capital improvement
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Simplified Energy Cost Flow
Energy Input
Core ManufacturingProcess
Energy Systems
Energy Culture
Energy Waste
•Energy Source Mix
•Energy Pricing
Sourcing
Efficiency
•Energy cost is a function ofpricing, consumption, GHGcredits/options, andincentives
•Pricing is driven by marketdynamics, but is negotiable
•Efficiency efforts are focusedon minimizing waste
•Improvements to efficiency:
•Core Technology, capital-driven
•Energy System improvements,low capital/cost
•Changing behaviors – minimalinvestment
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External drivers
Volatility, magnitude and escalation of energy costs areincreasing the urgency to drive improvements in energyefficiency.
Governments and global institutions are introducing newenergy management regulations and policies, pressuringcompanies & societies to re-think energy consumption.
Companies are expected to publish energy improvementgoals and are being held accountable for delivering results.
Energy efficiency is being used as a powerful strategy tolower the cost of goods and attract customers at every level.
1. Volatility of resource costs
2. Public policy
4. Public accountability
5. Competition
The Investment community is increasing the weight of acompany’s energy efficiency commitments and capabilitieswhen making investment choices.
3. Access to capital
External Drivers are pressuring companies toimprove Energy Efficiency
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The DuPont Energy Challenges
DuPont has addressed similar energy challenges on acontinuous basis since 1989
Our motivations:
Recognized energy cost is a significant part of our total operatingcost
Experienced supply disruptions and cost was increasing rapidly
Energy efficiency would provide the greatest cost savings amongglobal warming initiatives
Saw this as a way to outperform competitors
Overall, the health and welfare of the organization and itsproduct lines would be at risk if we didn’t act.
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CIS Sustainable Energy Forum, June 2011
Quality
Emissions
Resources
Energy
Reliability
Maintenance
Safety
People
Management
Culture
SupplyChain
Rooting effective energy managementsystem in leadership enablement, clearorganizational goals, effective staffingand training, and specific processes andactions
Integrating energy efficiencymanagement into the strategy andexecution of the ongoing businessprocesses (capital, cost, resources, etc.)
Designing a practical and enduringenergy management process to sustainand build on achieved goals –customized at each level of theorganization
Achieving cost reductions and security of supply throughefficiency and improved operating team capabilities
Energy Efficiency
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CIS Sustainable Energy Forum, June 2011
Energy Planning Process
Recognize the
Energy Challenge
Develop an
Energy Plan
EnergyGoalsWorkshop
Assess Process
Energy use
Identify
Opportunities
Identify
Opportunities
Develop
Capital Projects
Appropriate
Capital Funds
Internal
Capital
External Funds
(Performance
Contracting)
Energy Plan Template
Plant EnergyAssessment Template
Energy-related SixSigma Projects VirtualWorkshops
“Top Ten” EnergyProjects Initiative
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DuPont Sustainability Results
Goal
achieve 5% ($50 Million USD)annual decrease in energy use,consistent with sustainabilitygoals
DuPont Results 1990 - 2009
19% decrease in energy use
20% increase in production
$5B in cost savings
* TRI = Toxic Release InventorySources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance
DuPont Reduction 1990 - 2009
Air Carcinogens92%
U.S. TRI* “Releases”77%
Air Toxics75%
Energy Efficiency Initiatives Examples
Integrated load controls
Utilize Vented H2 in CB Boiler
Improve Condensate Return
Reduce Liquid Nitrogen Usage
Steam Trap Maintenance
Cooling Tower Water Temperatures
Monitoring & Targeting
Mindset and Behaviors…
Energy Efficiency Initiatives Examples
Integrated load controls
Utilize Vented H2 in CB Boiler
Improve Condensate Return
Reduce Liquid Nitrogen Usage
Steam Trap Maintenance
Cooling Tower Water Temperatures
Monitoring & Targeting
Mindset and Behaviors…
1990 1995 2000 2005 2009
Energy
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CIS Sustainable Energy Forum, June 2011
Example: Oil & Gas Client
Goal:
•10% Energy Reduction by 2015
Objectives:
•Leadership commitment and culturalchange that leads to a sustainablecorporate best practice EnergyManagement process
•Performance management processand the metrics necessary formanaging the activities and projects
•Pilot of new Energy ManagementSystem at a Refinery
Estimated benefits from an EnergyEfficiency Improvement Program
•Without investment:3 – 5%
•With Capex <1000K$8 – 12%
•With Capex >1000K$ 16 – 24%
World-Class Refineries consume~25% less than average
Project Objectives
Possible Results
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CIS Sustainable Energy Forum, June 2011
Example: Oil & Gas Approach
Corporate & Site Assessment/Survey
Implementation Plan Development
Management System & KPIDevelopment
Corporate Rollout Plan Development
Organizational Development &Training
Process Assessment &ContinuousImprovement Plan
Corporate Energy Management System
1/1/10
6/1/10
11/1/11
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Example: Oil & Gas Approach
Energy Culture Survey
Technical Review
Management System Technical Assessment
Leadership Alignment
KPI Development
Site Pilot
1/1/10
6/1/10
11/1/11
Corporate & Site Assessment/Survey
Implementation Plan Development
Management System & KPI Development
Corporate Rollout Plan Development
Organizational Development & Training
Process Assessment &Continuous Improvement Plan
Corporate Energy Management System
Solution Design
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DuPont’s Energy Efficiency Approach
•Identifying and elevating energy cost as a strategic businessissue
•Implementing a vertically integrated management approachto drive results
•Developing skills and capabilities of people in theorganization
•Identifying and executing the right projects to drive highestgain results
Driving performance results through integrated energysystems & cultural change
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Introductory Slides
May be used as the first two slides tointroduce DuPont and DSS
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DuPont
Founded in 1802
•A Fortune Top 100 Science Company
•Recognized for experience and success inoperational excellence
•Active Leader in environmental sustainabilitysince 1989 – “Laggard to Leader”
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DuPont
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…IncreaseShareholder & Stakeholder Value
*Has existed as a safety services business since the early 1970's.