Workshop II Practical Tips on Plant-Level Energy Management in a - - PDF document

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Workshop II Practical Tips on Plant-Level Energy Management in a - - PDF document

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Workshop II Practical Tips on Plant-Level Energy Management in a Turbulent Environment Wednesday, February 19, 2020 1:45 p.m. to 3:00p.m. . Biographical Information Timothy W. Ling, P.E. Corporate Environmental Director Plaskolite, LLC. P.O.

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Workshop II

Practical Tips on Plant-Level Energy Management in a Turbulent Environment

Wednesday, February 19, 2020 1:45 p.m. to 3:00p.m. .

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Biographical Information

Timothy W. Ling, P.E. Corporate Environmental Director Plaskolite, LLC. P.O. Box 1497, Columbus, OH 43216-1497 (614) 294-3281 tim.ling@plaskolite.com

  • Mr. Ling is the Corporate Environmental Director for Plaskolite, LLC., a Columbus-based

manufacturer of continuously processed plastic sheet. Mr. Ling is responsible for Plaskolite’s environmental compliance at its 10 manufacturing facilities in Ohio, California, Texas, Mississippi, Tennessee, New Jersey, Massachusetts and Mexico. He has over 29 years of experience in environmental engineering, both as a consultant to businesses, and now as in- house environmental manager. He has spoken and written on a wide range of environmental and energy management topics.

  • Mr. Ling graduated at the top of his class with a Bachelor of Science degree in Civil Engineering

from the Florida Institute of Technology (1989). He also holds a Master of Science degree in Civil Engineering from the University of Notre Dame (1991). He is a Registered Professional Engineer in the states of Ohio and Florida. Anthony J. Smith, P.E. Global Energy Coordinator Cooper Tire and Rubber Company 701 Lima Avenue, Findlay, OH 45840 (419) 420-6164 ajsmith1@coopertire.com

  • Mr. Smith leads energy savings initiatives as the Global Energy Coordinator for Cooper Tire

facilities around the world. Cooper Tire was founded over 100 years ago in Ohio and is headquartered in Findlay, Ohio with manufacturing plants in the USA, Mexico, England, Serbia, and China. Prior to taking his current role, he served as energy coordinator for the Findlay Ohio tire production facilities. Trained and certified as a Lean Six Sigma Black Belt, Mr. Smith uses the Six Sigma tools to lead cross-functional teams to solve energy efficiency problems, and has developed energy regression models for tracking and forecasting utility usages. He has authored numerous newsletter articles on energy topics and is also a frequent panelist and speaker on industrial energy efficiency.

  • Mr. Smith holds a Bachelor of Science degree in Mechanical Engineering from the University of

Dayton (2004). He is a registered Professional Engineer in the State of Ohio.

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Practical Tips on Plant-Level Energy Management In A Turbulent Environment

Timothy W. Ling, P.E. Anthony J. Smith, P.E.

  • Corp. Environmental Director

Global Energy Coordinator Plaskolite, LLC. Cooper Tire and Rubber Company

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PLASKOLITE

70 Years, 11 Sites

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Cooper Tires

  • 100+ year history in Ohio
  • 13th largest globally & 5th largest in U.S.

(based on sales)

  • Eight tire manufacturing plants worldwide

including Findlay, OH

  • Intense focus on energy since 2007

Cooper Tire and Rubber Company

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Cooper Tire Brands

The Cooper brand is the company’s flagship brand and offers a full line of great performing tires. The Mastercraft brand is well-known for its quality and outstanding value. Avon Tyres is one of Europe’s leading tire brands and offers a complete product range for cars, motorbikes, vans and trailers. Dick Cepek brand provides quality

  • n and off-road products.

A popular truck tire brand in Asia, the Dean brand is designed and engineered to meet the demanding performance requirements of fleets. The Roadmaster brand has commercial truck tires for every application. The Starfire brand is dedicated to providing value at a reasonable price without sacrificing quality or performance. Mickey Thompson offers specialized racing, off-road and high-performance tires.

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  • Cooper produces an annual Corporate

Social Responsibility (CSR) and Sustainability Report

CSR and Sustainability Report

  • The report, which was published in

July 2019, covers primarily 2018 performance and activities, and marks the sixth annual CSR report for Cooper

  • It is available at coopertire.com
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Sustainability Strategy

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Major Energy Projects and Savings

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Major Energy Projects and Savings

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Plaskolite Utility Costs

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Why Is My Electric Bill Still HIGH?

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% Total Bill 2001 2019 Future? Distribution+ Transmission 20% 40% 67% Generation 80% 60% 33%

Electric Bill Breakdown

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Here’s The Problem

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You’re On The Hook…

  • Distribution/Transmission Costs

–Monopoly –Non-bypassable –Governed by PUCO & Statehouse

  • Distribution breakdown:

–KW demand charge (~20%) –Riders & subsidies (~55%) –Transmission costs (~25%)

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Electric De-Regulation Since 2015

  • Generation free-market HAS delivered
  • Ohio’s shale revolution in high gear
  • Power generation fuel shift from coal to

natural gas

  • BUT…
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Electric De-Regulation Since 2015

  • Distribution/Transmission Costs “eating-up”

Generation savings

  • ESPs here to stay
  • “Politically-savvy” companies extract

monies through your electric bill

  • Benefits of Ohio’s shale revolution “blunted”
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Recent Ohio Trends

  • Utility-friendly Ohio government
  • House Bill 6

–Anti-free-market legislation –Ohio citizens forced to subsidize money-losing nuclear/coal plants –Precedent-setting

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But WAIT… There’s MORE

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HB 247 Then (2017-2018)

  • Rep. Mark Romanchuk bill
  • Customer refunds if charges declared

illegal by courts

  • Utilities to go through a distribution rate

case to set rates

  • Full separation of distribution utility from

generation plants

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HB 247 Now (2019-)

  • Rep. Dick Stein bill
  • Bill is a vehicle for utilities to get back

into generation, including “behind-the- meter” projects at full cost recovery

  • Loosens corporate separation

requirements

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What Can You Do?

  • RE-MONOPOLIZATION of electric market

is underway

  • Alarmed at government actions on your

energy costs

  • Try to make your Ohio government more

accountable to Ohio citizens, not utilities

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  • Customers/manufacturers need to be

united against re-monopolization

  • Don’t shift your costs to others,

through frivolous subsidies

  • “Cut-the-Cord” (figuratively)

What Can You Do?

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Risk Assessment of Energy Costs:

  • Recognize how costs are billed
  • Majority of costs are usage-based
  • Reducing electricity consumed from grid will

reduce exposure to public policy (e.g., PUCO, Ohio government, PJM, FERC)

What Can You Do?

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Non-generation: –Energy efficiency –Demand response On-site Generation: –Renewables (Wind & Solar) –CHP –Battery

What Can You Do?

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Energy Efficiency

  • Mandated EE programs ending in 2020
  • Some utilities may have voluntary EE

programs post-2020

  • Look for EE improvements in process

equipment upgrades

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Energy Efficiency Examples

  • New air compressors (10-15% savings)
  • DC motor to AC motor/VFD conversions

(11% savings)

  • Chiller upgrades
  • Optimizing cooling water set points
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Demand Response

  • Demand response programs will

transition to year-round programs in 2020

  • Some Ohio customers had event on

October 2, 2019

  • More valuable if HB 6 inflates the cost of

capacity for Ohio utility zones

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Renewables

  • Know your acronyms:

–PPA, VPPA, REC

  • Some proposals for renewable energy may

not be what they claim

  • Utilities getting into renewables business

with HB 6 and HB 247

  • Begin renewable study with goal in mind
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Renewables

  • Don’t rush into contract based on supplier-

imposed deadline

  • Renewable study is a long-term process

(2-5 years!)

  • Experts from Legal and Accounting are

essential to evaluating proposals

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Batteries

  • Initial costs still high, but improving
  • Possibility of incorporating solar to improve

project payback (Minster, OH)

  • Best payback is correcting short-term power

quality issues (e.g., frequency regulation)

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Combined Heat and Power (CHP)

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CHP Technologies

  • Natural Gas Turbines
  • Natural Gas Microturbines
  • Steam Turbines
  • Reciprocating Engines
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Steps To Implementing CHP

  • High-level screening analysis
  • Investment-grade engineering study
  • Final engineering design
  • Project funding
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CHP Tips

  • Engage upper management & utility EARLY!!!
  • Look beyond energy savings for additional

savings opportunities

  • Boiler replacement/infrastructure upgrades

can increase justification

  • Year-round source of heat required for

reasonable payback

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CHP Equipment

  • Solar Taurus 70 natural gas-fired

turbine (6.8 MW nominal)

  • Rentech Heat Recovery Steam

Generator (80,000 PPH)

  • Vilter natural gas compressor
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CHP

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CHP Project Considerations

  • Size for 100% of thermal load (steam

capacity of the plant)

  • Turbine generator can provide 50-60% of

the annual plant electricity capacity

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CHP Project Considerations

  • AEP Energy Efficiency Rebate
  • Federal tax credit for project cost (10%)
  • Project payback just under 5 years vs.

cost for a new boiler only

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CHP Project Schedule

  • Engineering study in 2015
  • Project approval in 2016
  • Equipment set in 2Q 2018
  • Commissioning in 4Q 2018
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CHP Update

  • After one year of operation, CHP system has

met expected savings

  • KWH charges & 5-CP Peak Load Contribution

(PLC) reduced

  • 30-minute demand charge difficult to drop
  • Plant personnel have taken “ownership”
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SLIDE 43

CHP Update

  • Project has reduced Findlay Plant Energy

Intensity by ~16%

  • 1-CP BTCR cost is now advantageous with

natural gas turbines & winter peak

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Behind-the-Meter Summary

  • Many current options for reducing energy

usage & costs

  • Risk vs. reward of utility allowed behind-the-

meter (Once In, Always In)

  • Conflict of interest of utility approving

interconnection of behind-the-meter equipment

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Lighting

  • Circa 2009: LED not there yet
  • 2020: LED have arrived
  • LED light levels to 1000W MH eq.
  • Class 1 lighting cost-effective
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Tip Of The Day DON’T SWEAT THE “STUFF” YOU CAN’T CONTROL …

SWEAT THE “STUFF” THAT YOU CAN CONTROL !!!

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Final Thoughts

  • RE-MONOPOLIZATION of Ohio

electric market

  • Seriously think of “Cutting-the-Cord”
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Final Thoughts

  • Increasing electrical costs challenge Ohio

manufacturing competitiveness

  • Identify risks to further energy cost increases
  • Be involved @ PUCO, Legislature, & PJM
  • Reduce your load to avoid KW- & KWH-

based charges & riders

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Burning Questions