Benchmarking Sectors and Certifying Industrial Plants Presented by: - - PowerPoint PPT Presentation

Benchmarking Sectors and Certifying Industrial Plants

Presented by: Gale Boyd PhD, Duke University & ENERGY STAR Benchmark Developer

Answer: Common Knowledge Is 10 MPG for a 2-door economy car high or low? Answer: ? Is 10 MMBtu per vehicle for a plant that makes the 2-door economy car high or low?

Information is a Common Barrier to Efficiency

Estimating the “Energy Efficiency Gap”

Engineering models can estimate best practice, while statistical models are typically average practice. – Measures of energy intensity based on averages are

• f limited use in managing energy use or goal setting.

– Averages can only tell us if we are above (or below) but not by how much. – A more useful measure represents where a company

• r plant lies within a distribution of peer performance.

“Is my performance close (or far) from the industry best practice?”

Plants Within Industries are Not All the Same

Energy Star Energy Performance Indicator (EPI)

• The EPI is a statistical model of plant energy use
• Since “plants are not all the same” a statistical model is

used to make an “apples to apples” comparison.

• Statistical models can -

– Relate energy use to production activities

• Primary business of a manufacturing plant
• Incorporate the specific type or mixture of products

– Include external factors that influence energy use

• Variation in materials arising from upstream integration (make vs buy)
• Capacity and utilization
• Heating and cooling loads driven by geographic location

What are the Basic Inputs to an EPI?

• Plant level total primary energy (TPE)

– Total BTU’s (GJ) of fuels – kWh of electricity purchased from the grid is converted to BTUs (GJ) at average power plant thermal efficiency

• Production activities are captured by:

– Production - Level and Mix

• “Levels” may be flows of common inputs, products shipped, labor hours, or a

combination.

• Mix are typically shares of different products with dollars or physical units as the

denominator

– Capacity and utilization – when data are available

• May include industry specific factors

– Input mix – Upstream integration – Climate (e.g. HDD and CDD)

Example of an EPI Input Screen

Plant Characteristics

Current Plant Reference Plant Enter Name Enter Name NAICS Code: 325311 Year: 2016 2015 ZIP or Postal Code: 27705 Choose US or International Units: Location: Durham, NC Ammonia: 150,000 short tons 30-Year HDD (deg F): 3,457 Urea: 200,000 short tons 30-Year CDD (deg F): 1,417 Ammonium Nitrate: 120,000 short tons 150,000 UAN: 500,000 short tons 250,000 MAP: short tons DAP: short tons Notes Other Product Value Share: 5% % ($/TVS) 25% Ammonia Producer: yes yes/no no Urea Producer: yes yes/no no Ammonium Nitrate Producer: yes yes/no yes Phosphates Producer: no yes/no no Production Worker Hours: 200 1000 person hours 100

Energy Consumption

Electricity Onsite Renewables Gas** Distillate Oil Residual Oil Coal Other Select Units Enter Name 600,000 1,300,000 2016 Annual Cost ($)* Enter cost Enter cost Enter Name 70,000 20,000 2015 Annual Cost ($)* Enter cost Enter cost

* Entering cost data is optional and does not impact the computation of the Energy Performance Score. **Do not include natural gas purchased as a feedstock; only include natural gas used for heat and power.

Production of Final Sold Product Other Production Details Annual Purchases & Transfers

Draft Version 1.1, Release XX/XX/2018

Annual Purchases & Transfers US Units

Nitrogenous Fertilizer Plant Energy Performance Indicator

Example of an EPI Results Screen

Results

Display energy results in: US Units Energy Performance Score (EPS) Source Energy (MMBtu) Site Energy (MMBtu) Annual Energy Cost ($/year) Total Production (short tons of N)* *Production units in the Results section match those selected in the above Plant Characteristics section. Energy Intensity (Source MMBtu/short tons of N)* 2016 76 4,456,447 2015 50 Enter Name (2016) 19.30 $0.00 6.12 $0.00 403,800 25.70 $0.00 Enter Name (2015) Energy Cost/Total Production ($/short tons of N)* Enter Name Efficient Plant Enter Name Your Reference Plant Average Plant $0 46 126,000 403,800 403,800 3,365,282 Your Current Plant 19.40 Enter Name 2016 75 $0 $0 Enter Name 258,840 $0 2016 7,793,208 770,958 10,375,841 7,835,307 3,347,200 $0.00

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

5000000 10000000 15000000 20000000 25000000 30000000

Source Energy (Million Btu)

EPS = 76

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

500000 1000000 1500000 2000000

Source Energy (Million Btu)

EPS = 46

A Variety of Data are used in EPI Industry Studies

Focus industries Product mix Units Inputs Size or capacity Climate Other Cement 3 Product Types Tons

• Capacity & # of Kilns

Person hours Corn Refining 5 Product Types Bushels Corn Capacity Feed moisture Dairy - Fluid Milk * 6 Product Types Gallons Whole milk

• CDD

Person hours Dairy - Ice cream * 4 Product Types Gallons 2 types

• CDD

Person hours Ethyl Alcohol ** Single Gallons

• Food - Juice

8 Product Types Gallons 2 types

• Food - Frozen Fried Potatoes

Single Pounds

• Warehouse (frozen)

Food - Tomato products ** 2 Product Type 2 types

• Person hours

Baking - Cookies & Crackers 3 Product Types Pounds

• Baking - Bread & rolls

5 Product Types lbs Raw dough

• HDD, CDD

Freezers Glass – Flat Single Pounds Sand

• Glass – Container

Single - Price Pounds Sand, Cullet

• Iron and Steel - Integrated

4 Stages *** Tons

• Furnace capacity
• Iron and Steel – Minimills *

Single - Price Tons Scrap Furnace capacity

• Metal casting - Iron

4 Product Types - Price Tons

• HDD

Person hours Metal casting - Investment steel * Single $ Value

• Person hours

Metal casting - “Other” steel * 3 Product Types $ Value

• Metal casting – aluminum

3 Product Types - Price Tons

• HDD
• Motor Vehicle - Assembly

Vehicle Size Number of Vehicles

• Production Capacity

HDD, CDD Air Tempering Nitrogen Fertilizers 5 Product Types Tons of N

• Capacity
• Person hours

Vehicle Powertrains - Motors 5 component types # of engines

• Facility size (ft2)

HDD, CDD Vehicle Powertrains - Transmissions Single # of transmissions

• Facility size (ft2)

HDD, CDD Pharmaceuticals 3 Activity Types **** Share of Floor Space

• Facility size (ft2)

HDD, CDD Operation hours Printing - Lithograph ** 6 Product Types $ Value 6 types

• HDD, CDD
• Pulp Mills

3 Product Types Tons 2 types

• Water treatment

Paper & Board Integrated Mills 3 Product Types Tons 3 types

• Water treatment,

Bleaching chemicals Ready Mix Concrete ** 2 Activities Tons, Miles

A Variety of Methods & Results Embody the EPI

Focus industries Statistical Model Year # of plants Data source Returns to Scale 75 to 50th Cement log normal (heteroscedastic OLS) 2000-2008 96 Industry VSR 0.92 LR

• 6.1%

Corn Refining half normal frontier 2004-2009 37 Industry VSR Constant LR

• 14.5%

Dairy - Fluid Milk * log normal OLS 2002 258 CM 0.85

• 29.0%

Dairy - Ice cream * log normal OLS 2002 89 CM 1.05

• 23.9%

Ethyl Alcohol ** log normal OLS 2007 111 CM 0.70

• 35.4

Food - Juice log normal OLS 2002 44 CM 0.84

• 41.8%

Food - Frozen Fried Potatoes log normal OLS 2002 27 CM 0.91

• 16.0%

Food - Tomato products ** log normal OLS 2002 40 CM 1.11

• 43.7%

Baking - Cookies & Crackers log normal OLS 2002 64 CM 0.71

• 30.9%

Baking - Bread & rolls log normal OLS with Kernel 2010-2012 135 Industry 0.78

• 15.8%

Glass – Flat log half normal frontier 2002 38 CM, MECS Variable

• 16.3%

Glass – Container log normal OLS 2002 62 CM, MECS 1.03

• 11.6%

Iron and Steel - Integrated log exponential frontier 2005-2012 14 Industry 0.72 SR 0.99 LR

• 4.5%

Iron and Steel – Minimills * log normal OLS 2002 39 CM, MECS VSR Constant LR

• 12.1%

Metal casting - Iron log normal OLS 2006 83 CM, MECS 1.06

• 23.2%

Metal casting - Investment steel * log half normal frontier 2007 51 CM 1.03

• 32.8%

Metal casting - “Other” steel * log normal OLS 2007 59 CM Variable

• 25.8%

Metal casting – aluminum log normal OLS 2007 290 CM, MECS 1.05

• 28.3%

Motor Vehicle - Assembly Gamma frontier 2003-2005 33 Industry VSR Constant LR

• 21.4%

Nitrogen Fertilizers* log normal OLS 2002-2012 NR CM Constant LR

• 24.4

Vehicle Powertrains - Motors log normal OLS with Kernel 2010-2012 23 Industry Constant LR

• 17.9

Vehicle Powertrains - Transmissions log normal OLS with Kernel 2010-2012 13 Industry Constant LR

• 23.3

Pharmaceuticals log half normal frontier 2004-2006 61 Industry VSR 0.98 LR

• 30.1%

Printing - Lithograph ** log half normal frontier 2007 775 CM 1.0

• 35.0%

Pulp Mills log normal OLS 2002 28 CM, MECS 1.05

• 36.1%

Paper & Board Integrated Mills log normal OLS 2002 99 CM, MECS 0.71

• 19.5%

Ready Mix Concrete * log normal OLS 2008-2009 62 Industry 0.83 SR 0.89 LR

• 35.5%

Performance & EPI Changes Over Time

• 10

20 30 40 50 60 70 80 90 100 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000

Energy Performance Score Million Btu Source Energy per ton of Clinker 1997 Distribution of U.S. Cement Manufacturing Plant Efficiency 2008 Distribution of U.S. Cement Manufacturing Plant Efficiency

Total reduction Average annual change 13.0% 1.2%

Performance & EPI Changes Over Time

• 10

20 30 40 50 60 70 80 90 100 5 10 15 20 25 Energy Performance Score MMBtu per Vehicle

2005 Distribution of U.S. Auto Assembly Energy Efficiency 2000 Distribution of U.S. Auto Assembly Energy Efficiency

Total reduction Average annual change 12.0% 2.3%

The 1-100 ENERGY STAR Score

One simple number understood by ALL stakeholders.

Industrial Focus Sectors

Fertilizer Breakfast Cereal Cement Concrete Commercial Baking Cookies & Crackers Breads & Baked Goods Corn Refining Dairy Processing Fluid dairies Ice Cream

Fruit & Vegetable Processing Juice Potato Products Tomato Products Glass Fiberglass Flat glass Container glass Motor Vehicles Assembly Plants Engine Plants Transmission Metal Casting Ferrous Aluminum

Petrochemical Manufacturing Petroleum Refining Pharmaceuticals Printing Pulp & Paper Integrated Mills Pulp Mills Recycled Mills Steel Primary Steel Mini Mills

www.energystar.gov/epis

Recognition Materials

From EPA:

• Letter to CEO from EPA
• Certificate
• ENERGY STAR decal
• Electronic templates for banners, flags, posters
• Profile on ENERGY STAR Certified Building &

Plant Registry

• Press release materials

For purchase on the ENERGY STAR on-line store:

• Plaques
• Flags
• Decals

ENERGY STAR certification for industrial plants

Certified Plants Save Energy & Money

Total number of ENERGY STAR certified plants (since 2006) 190 Cumulative Energy Savings (BTUs source) 796 trillion Equal to the annual energy use of: Over 4 million households GHG Savings (MT CO2e) 52 million Cumulative Cost Savings $5.3 billion Equivalent to the annual wages of ### manufacturing workers 114,844 2017 2017 Certified plants 93 2017 Certified plants energy savings (BTU source) 64 trillion Equal to the annual energy use of: 358,000 households 2017 Certified plants GHG Savings (MT CO2e) 4 million 2017 Certified plant cost savings $ 338 million Equivalent to the annual wages of ### manufacturing workers 7316

NRCAN Wants New “Pins” in the Map

Questions?

Gale A. Boyd, PhD Associate Research Professor, Duke University Social Science Research Institute / Department of Economics Director, Triangle Federal Statistical Research Data Center https://trdc.ssri.duke.edu/ Office 919 660-6892 Mobile 919 597-9265 Email gale.boyd@duke.edu