Schneider TheNewWorldofEnergy

8/14/2019 Schneider TheNewWorldofEnergy

1/19

The New World of Energy:Rising Costs, Carbon Footprints &Being Green

Carl Castellow, PEIndustrial Energy Efficiency ManagerSchneider Electric


2/19

Schneider Electric 2- Energy Management Seminar- 5.7.09

Introduction

As our modern world grows and the energy

landscape changes, the only way to staycompetitive is to form clearplans to manageenergy and increase efficiency.


3/19


W orld Oil Prices (Dollars per Barrel)

$0

$20

$40

$60

$80

$100

$120

$140

$160

1970 Today

Major Events and RealWorld Oil Prices

US Oil Prices (Dollars per Barrel)

1973 ArabEmbargo

Iranian Revolution

Iran Iraq War Begins

Saudis AbandonSwing ProducerRole

Iraq Invades Kuwait

Gulf War Ends

AsianEconomic

Crisis

9/11

Prices Rise on

OPEC Cutbacks;IncreasedDemand

Prices Spike on Iraq War,

Rapid Demand Increases,Constrained OPEC Capacity,Low Inventories, etc.


4/19


The Challenges of Energy Efficiency

- Business often requires short term decisions.

- In Industry, energy represents a small part of totalmanufacturing costs (2% to 8%).

- Steam traps dont make for good marketing material.

OR


5/19


Past Programs in Industrial Energy Efficiency

1. Supply Side Creativity:

Creative Business Models; i.e. Chauffage Risky, Non-Correlated Hedging

2. Performance Contracting = Unsuccessful in Industrial Sector!

Guaranteed Savings Contracts Very successful in

commercial sector; generally a failure in industrial

3. Most Demand Control SystemsDied a Natural Death in the 1980s.

4. Energy Audits


6/19


7/19


What is an Energy Audit ?

1. A Static Snapshot in a Dynamic Environment

2. A Product with Wildly Varying Prices and Quality

3. Most Audit Reports End Up on a

Shelf with Very Little Implementationand Limited Results

4. Traditional Energy

Audits Often Remain onthe Shelf


8/19


An EAP is much

more than anenergy audit


9/19


Energy Action PlanThink: Long-Term

Evaluate both supply side and demand side areas ofoperation, as well as their interactions.

Consider many options with various fuel cost scenarios.

Take into account the Other Factors like potentialcarbon credits.


10/19


Supply NegotiationsSuppose a Baking Operation Needs a New Oven

Natural Gas at $14/DT produces steam at $16.50 per Million Btu delivered Electricity at 6 cents per kWh delivers electric heating at $17.50 per Million Btu The Electrical option has easier permitting issues

Scenario 1: Natural Gas decreases to $10 per DT following a stabilization

in the Oil Price Markets

Scenario 2: Electricity Increases to 10 cents per kWh as fuel adjustmentscontinue


11/19


Supply Negotiations

WellheadPro

duction

Gas

ProcessingPlant

Pipeline

Underground

Storage

Local

Distrib.Company

Residential

Commercial

Industrial

Elect. Util.

Imports

Generalized Schematic Physical Flow of

Natural Gas in U.S.Consumers

End User

Bypass


12/19


CHP Economics and Real Time Pricing

Process

Gas

TurbineExhaust

Electric

Power

SteamTurbine

Generator

CompressorElectric

Power

GasTurbine

Generator

CombustionChamber

Fuel

Air

Fuel

Air

Emission

Control

Equipment

Exhaust

Gas

ICI BoilerOr HRSG

Process

Gas

TurbineExhaust

Electric

Power

SteamTurbine

GeneratorGenerator

CompressorElectric

Power

GasTurbine

GeneratorGenerator

CombustionChamber

Fuel

Air

Fuel

Air

Emission

Control

Equipment

Exhaust

Gas

ICI BoilerOr HRSG

June 10, 2008 Real-TimeAt $14.06/MMBtu Save $4,406 during the day for 1.3 MW New

Generation

$0

$100

$200

$300

$400

$500

$600

$700

100

300

500

700

900

1100

1300

1500

1700

1900

2100

2300

Time of Day

CostperMWH

$0

$100

$200

$300

$400

$500

$600

$700

HourlySaved

Total

$ Saved

10MW Gas TurbineCHP System Savings from Optimized

RTP Operation


13/19


Energy Action Plan Results Summary Recommendations from First Year Energy Action Plan

Recommendations to keep cogen are now saving the site $1.5 million to $3 million per year. Site is using Energy Action Plan as reference roadmap for new projects


14/19


What is Carbon Neutral Carbon Neutral Means No Net Increase in Emissions

of the Six Greenhouse Gases

Voluntary Programs Such as Climate Leaders (EPA),Energy Star (DOE and EPA) Reducing Existing Emissions Through Energy Efficiency

improvements

Replacing Existing Carbon Based Fuel Sources withRenewables

Offsetting Through Emission Trading

Voluntary Exchanges such as ChicagoClimate Exchange


15/19


Energy Action Plan Overview:Formulate a Strategic Plan

Include Low Cost and Project Options Energy occupies a Seat at the Table

Goal is ImplementationComprehensive integration of all 3 areas affecting

Energy Efficiency:

Procurement (Electricity and Gas) Demand Management Optimization of Process and Plant Utilities

Dynamic Execution

Analyze/Plan/Execute Projects Must Be Price Flexible Ongoing Process


16/19


Case

Studies


17/19


An Energy Action Plan for a LargeManufacturing Facility:

Facility Type: Pulp/Paperboard

Total Savings (Year 1): $1,215,200

Project Description: An energy actionplan included an energy dashboard,boiler O2 trim controls, a switch from 150to 30 psig steam sparging, powerhousepiping, compressed air systemoptimization, variable frequency drivesand lighting retrofits.


18/19


An Energy Action Plan for a LargeIndustrial Site:

Facility Type: Packaged FoodTotal Savings (Year 1): $460,200

Project Description: An energy actionplan included demand control strategies

to profit from utility deregulation,blowdown economizers, pressurizedflash tanks, water treatment, HVACsetback, methane energy recovery,glycol piping and compressed air

sequencing.


19/19

Questions ?

Take the next step in energyefficiency with the most trustedname in the power industry for

over 100 years.

Schneider TheNewWorldofEnergy

Documents

Transcript of Schneider TheNewWorldofEnergy