Energy Management and Efficiency for the Process Industries

Foreword

Energy sustainability is the cornerstone to the health and competitiveness of industries that produce and manufacture in our global economy. There are many other considerations such as access to markets and availability of labor, but the effective utilization of secure and affordable energy is what positions companies and societies for competitive and sustainable leadership.

Energy sustainability is much more than the process of being environmentally responsible and earning the right to operate as a business. It is the ability to utilize and optimize multiple sources of secure and affordable energy for the enterprise, and then continuously improve utilization through systems analysis and through an organizational drive for continuous improvement as a core principle. It is achieved through management discipline and technical excellence and it never stops.

Today, the choices and external conditions are changing more rapidly than at any other time in our history. Management commitment to ensure the best energy efficiency management in existing process operations, as well as a dedicated pursuit of new system technologies and processes, is the only recipe for excellence. I commend the authors in this endeavor and their work to provide insights and best practices, and to challenge the reader to aspire to even greater energy performance and sustainability.

The Honorable Charles D. McConnell

Former Assistant Secretary of Energy,

U.S. Department of Energy

Executive Director, Energy and

Environment Initiative, Rice University

Preface

This is an exciting time to be involved in industrial energy management. While the oil crisis of the 1970s precipitated a knee-jerk reaction from industry to cut dependence on foreign oil, the trend over the past 20 years has been toward a more considered and systematic approach to energy efficiency. Many companies, especially the larger ones, have developed comprehensive programs that include corporate energy policies, reporting systems, benchmarking, various types of energy audits, and integration of energy efficiency elements into engineering procedures and purchasing protocols. ExxonMobil, for example, started its Global Energy Management System (GEMS) in 2000. By 2009 the company reported that the program had identified savings opportunities of between 15 and 20% at its manufacturing sites, and had captured over 60% of these savings [1]. Many other companies are working on energy efficiency initiatives, and numerous software and consulting organizations provide support for the various aspects of energy efficiency and energy management.

It is not only industry that has taken an interest in this area. In the United States, both the Department of Energy and the Environmental Protection Agency have been active in developing and promoting energy efficiency practices. Meanwhile, the International Organization for Standardization launched ISO 50001:2011 in 2011 to support organizations in all sectors to use energy more efficiently, through the development of an energy management system (EnMS) [2].

The Laws of Industrial Energy Efficiency

For 30 years I have been active in industrial energy management in various forms. Over that time a couple of general principles have become apparent to me, and they are so powerful that I venture to call them the laws of industrial energy management.

Law 1: There is no silver bullet—no single method or technology that ensures that energy use will be optimized. Those of us with a background in engineering tend to think in terms of technological options to improve energy performance—better heat recovery, more selective catalysts, higher efficiency motors, and fundamentally better process design—and indeed these are very powerful ways of lowering energy usage. However, real-world energy efficiency is also a function of the behavior of both individuals and organizations. It follows that management and motivation are also critical factors, and they require very different types of expertise than solutions that are purely technological.

Law 2: I don't know it all—and neither do you. I am constantly amazed at the breadth and depth of my own ignorance. For many years, I have specialized in heat integration using pinch analysis, and I would like to think I have become quite good at it—yet still every project brings surprises. Energy management is a multidisciplinary activity, and over the past 30 years I have been privileged to work alongside people with expertise in a great variety of energy-related fields. I have learned a lot from them, and I have greatly expanded my own expertise. However, there are still many areas where I know virtually nothing. It takes a long time to become truly proficient in any given field, and life is a constant learning process.

These two laws are at the root of the structure of this book and the approach we have taken in writing it. The book consists of two main sections—one focusing on management and organizational issues, and the other on technology. I have spent most of my career as a freewheeling consultant specializing in the technical aspects of energy efficiency. It was very clear that the book also needed the perspective of a corporate insider with experience in managing an energy program in a large company. I was delighted that Beth Jones, who until recently filled that role at LyondellBasell, agreed to be my coauthor. Both of us then set about writing and also recruiting other leading program managers and technical specialists—mostly people who have worked with us in the past in various energy management activities—with the expertise needed to cover the major facets of contemporary energy management in the process industries.

Energy and the Process Industries

To many people the term process industries is synonymous with continuous, large-scale, petroleum and petrochemical processing—and indeed these types of operations are well represented in this book. However, the Institute of Industrial Engineers defines the process industries much more broadly as those industries where the primary production processes are either continuous, or occur on a batch of materials that is indistinguishable [3]. This includes not just oil refining and petrochemicals, but also a wide range of other sectors such as food and beverages, inorganic chemicals, pharmaceuticals, base metals, plastics, rubber, wood and wood products, paper and paper products, textiles, and many others.

Within the wide range of sectors in the process industries, there is a great diversity of operations. World-scale refineries and petrochemical facilities have annual energy bills in the hundreds of millions or even billions of dollars, and energy is a major component of variable cost. In contrast, raw materials and labor tend to be much more dominant in many of the smaller, more specialized facilities, where annual energy bills can be on the order of a million dollars or less.

In many of the smaller facilities, lighting and space heating and cooling are often the dominant energy users. These are just a tiny percentage of the cost at large petrochemical sites, where the dominant energy users are associated with moving, transforming, and separating feed and product materials.

Energy management is also very different for batch processes than it is for continuous ones. In particular, where many batch operators can apply downtime shutdown strategies to eliminate unneeded energy use for much of the time and thus gain free energy savings, this approach is not generally applicable in continuous processing.

There are also both similarities and differences in the equipment and systems across the process sector. Steam systems are virtually ubiquitous, and so are electric motors, heat exchangers, pumps, and compressors. However, beyond these few common elements there is a great diversity, from distillation columns, catalytic reactors, and centrifuges to cookers, toasters, and belt dryers. Each system and each type of equipment has its own issues that need to be considered within a comprehensive energy management program.

Our Scope

Our goal in this book is to provide a concise overview of energy management principles and techniques for the process industries. This necessarily means that we cannot cover every possible process type or piece of equipment, but we have tried to provide the basics that are needed by most energy managers and technical specialists.

Irrespective of the size of the energy bill, the continuous or batch nature of the processes, or the types of equipment employed, energy efficiency is a must. Understandably, though, management gives the greatest amount of attention to the largest costs. The basic principles of energy management and energy efficiency are universal, but different types of facilities require different types of energy management programs.

Within the pages of this book, we have tried to capture both the common threads and the diversity. The book consists of two main parts:

Section 1 focuses on energy management principles and systems. This includes an exploration of the role of the energy manager, examples of successful corporate energy management programs from diverse companies, and also benchmarking and management systems.

Section 2 looks at the technologies of energy efficiency. It covers some of the most widely used types of equipment, utility systems, and process-wide approaches for improving energy efficiency.

There is one very important area that we have not covered in any great depth. Breakthrough technologies—new equipment or processes that radically improve efficiency—do appear periodically, and they can lead to drastic reductions in energy use. For example, the development of the low-pressure polyethylene process in the 1950s was a major technological advance over the older high-pressure process, and it uses much less energy per unit of production. A more familiar example for most people outside of the polymer industry is the rise in recent years of compact fluorescent lights and light-emitting diodes, which provide dramatic energy savings compared with the familiar incandescent bulbs.

Breakthrough technologies are an important piece of the energy management puzzle, but they tend to be very specific to individual processes or equipment types. Furthermore, they tend to arise through lengthy research and development programs—or occasionally through serendipity—and this makes it very difficult to anticipate them. An alert energy manager should always be on the lookout for breakthroughs that are relevant to his or her field, but we do not devote much space to this topic.

We invite you now to join us as we examine the how and the what of energy management in the process industries. We trust that you will be able to reinforce your current knowledge, and also learn some new things that will help you rise to greater heights of energy efficiency.

February 2015

Alan Rossiter

References

1. ExxonMobil Annual Report, 2009.

2. International Organization for Standardization, ISO 50001: Energy management, http://www.iso.org/iso/home/standards/management-standards/iso50001.htm (accessed May 14, 2014).

3. Institute of Industrial Engineers, Process Industries Division, https://www.iienet2.org/details.aspx?id=887 (accessed April 26, 2014).

Acknowledgments

Beth would like to thank her friends on the past and present LyondellBasell energy team, especially Brian Goedke, for imagining and implementing an excellent energy management program and for his coaching and encouragement, and also Brian Finnegan, Mike Carlson, Matt Michnovicz, and Cheryl Carouth for their enthusiasm, commitment, and outstanding individual gifts and graces. She'd also like to thank her dear husband James for providing all the kinds of support needed for her to retire, move, and work on the book, Alan for interrupting her quiet life in England with this project, and all of the gracious and expert contributors—especially those who have worked with her before and knew what they might be getting into.

Alan would like to thank:

his wife Belinda, not only for tolerating his distraction while working on this manuscript, but also for her help with proofreading and graphics;

Beth, for joining him in this project, and who definitely had no idea what she was getting into;

all of our contributing authors, whose depth of knowledge and experience has enriched these pages; and

Bob Esposito and Michael Leventhal of John Wiley & Sons, who have answered innumerable questions and kept us on track throughout the preparation of this book.

Disclaimer

Reasonable efforts have been made to ensure the accuracy of the contents of this book. However, the authors shall not in any way be liable for the existence of errors, or for the consequences of using this material in any practical application.

Contributors

Celestina (Tina) Akinradewo, KBC Process Technology, Northwich, UK

Joe A. Almaguer, The Dow Chemical Co., League City, TX, USA

Bruce Bremer, Bremer Energy Consulting Services, Inc., Union, KY, USA

Mike Carlson, LyondellBasell Industries, Houston, TX, USA

Glenn T. Cunningham, Mechanical Engineering Department, Tennessee Tech University, Cookeville, TN, USA

Joe L. Davis, PSC Industrial Outsourcing, LP, Houston, TX, USA

Bala S. Devakottai, Chevron Phillips Chemical Company, Houston, TX, USA

Elizabeth Dutrow, ENERGY STAR Industrial Sector Partnerships, U.S. Environmental Protection Agency, Washington, DC, USA

Mark Eggleston, Phillip Townsend Associates, Houston, TX, USA

Kathey Ferland, Texas Industries of the Future, The University of Texas, Austin, TX, USA

Joe Ghislain, Ford Motor Company, Dearborn, MI, USA; Ghislain Operational Efficiency, LLC, Milford, MI, USA

Beth P. Jones, LyondellBasell (retired), Guildford, Surrey, UK

Thomas Lestina, Heat Transfer Research Inc., College Station, TX, USA

Sharon L. Nolen, Eastman Chemical Company, Kingsport, TN, USA

Bruce L. Pretty, KBC Advanced Technologies, Inc., Houston, TX, USA

R. Tyler Reitmeier, Soteica Visual MESA LLC, Houston, TX, USA

James R. Risko, TLV Corporation, Charlotte, NC, USA

Alan P. Rossiter, Rossiter & Associates, Bellaire, TX, USA

Paul E. Scheihing, Advanced Manufacturing Office, U.S. Department of Energy, Washington, DC, USA

Graziella F. Siciliano, Office of International Affairs, U.S. Department of Energy, Washington, DC, USA

Graham Thorsteinson, General Mills, Atlanta, GA, USA

Jon S. Towslee, EFT Energy, New York, NY, USA

William (Bill) Turpish, W.J. Turpish and Associates, PC, Consulting Engineers, Shelby, NC, USA

Ven V. Venkatesan, VGA Engineering Consultants Inc., Orlando, FL, USA

Jonathan P. Walter, TLV Corporation, Charlotte, NC, USA

Units of Measure

Except where otherwise noted, conventional U.S. units of measure are used throughout this book. However, there is no universally accepted standard across U.S. industry and engineering disciplines for reporting energy consumption. In this book, the standard unit for energy consumption is the British thermal unit (Btu). The multiples of the Btu used in this book are as follows:

10³ Btu: k(kilo)Btu

10⁶ Btu: M(mega)Btu

10⁹ Btu: G(giga)Btu

10¹² Btu: T(tera)Btu

For extremely large quantities of energy (e.g., national consumption), the quad or quadrillion Btu (10¹⁵ Btu) is used.

Prices, costs, savings, and other amounts of money are quoted in U.S. dollars ($), unless otherwise stated.

Section 1

Energy Management Programs

1

Energy Management in Practice

Beth P. Jones

LyondellBasell (Retired), Guildford, Surrey, UK

Attention to energy efficiency seems to rise and fall in corporate priority with both the rise and fall of energy prices and the rise and fall in manufacturing margins. The life of the corporate energy manager is much the same. If energy costs are high and margins are slim, you are the man or woman of the hour, and if times are good and natural gas supplies are booming, no one will return your calls. Resources are allocated similarly. Bad times and poor prospects for capital spending free up lots of people to look for opportunities for more efficient operations. When times are better, those human resources are reallocated to opportunities with higher expected returns. A well thought-out energy management program identifies opportunities, sets the bar for ongoing performance, and maintains improvements with a minimum of resources. Otherwise, over time and with reduced scrutiny, efficiencies decline and relative costs go up. A few years later, the cycle repeats itself and a new team relearns all the lessons from the last cycle.

Several years ago, a technician received the company's highest attaboy award from its then president. His achievement included tuning up all the company's huge olefin furnaces and saving millions of dollars per year in energy costs. To quote the president's comment in this regard, Great job rediscovering what we already knew! Next time maybe we'll just punish the people who stopped doing it. The technician took the comment to heart and wrote a Furnace Manifesto to preserve and institutionalize the knowledge.

This book is intended to provide an overview of industrial energy management, particularly for the process industries. Section 1 is focused on management issues—how to start and maintain an effective program, identify the components of a successful program, benchmark, and create management systems—and case studies that provide practical insights from successful and experienced energy managers. The rest of the book provides expert technical help in what to do to save energy, with particular focus on the energy users most significant to the process industries.

This chapter describes a practical overall approach to starting an energy management program and identifying and implementing energy efficiency improvements in a sustainable way. The chapter is particularly focused on helping new energy managers get started: What do they need to know to be effective in their role? Since most of these issues are also relevant to experienced managers and engineers with energy management responsibilities, we hope it will also be useful to all readers.

Assessing the Value of An Energy Management Program

In most process industries, energy costs are second only to raw material costs. Entire departments are devoted to optimizing raw material choices and product slates, using planning models, supply strategies, and online optimization. Apart from buying energy at the lowest possible cost, most companies also consider energy to be an inevitable cost of doing business. However, energy use is not just a concern for the utilities department, and you, as an energy manager, must separate the cost of doing business from the cost of doing business well. Other benefits flow from focusing on energy, such as a reduced environmental impact and a cultural change toward reducing waste, but the scope of any energy management program is determined by its economic value.

Determine your company's energy use and energy cost, beginning with large sections of the organization and drilling down as far as it is practical. Use the data that are available now and are already understood by the organization. Energy information can come from site utility bills, internal cost accounting, and/or the utilities procurement group. Often the search for the data is as enlightening as the actual data. Was the information easy or difficult to collect? What does it tell you about each site? Are total company or division costs combined and analyzed already?

Draw a material balance box around each unit, site, or division, based on the details that are available (Figure 1.1). Include all external sources of energy that cross the boundary, such as purchased electric power, fuel gas, solid or liquid fuel, purchased steam, or whatever else is consumed within the box. If feed or product streams are burned or consumed to produce energy, include those as well. Collect both the nameplate capacity of each unit and its average operating rate.

Figure 1.1 A simple material balance provides great insights into overall energy usage.

Site energy use = fuel gas rate × heating value + electricity rate

Site energy cost = fuel gas rate × price + electricity rate × electricity price

Site-specific energy use = site energy use/average feed(or major product)rate

Now that you have an initial fix on the company's energy profile, you can proceed toward estimating the value of potential energy savings with a combination of data and engineering judgment. From industry publications or data searches, determine the benchmark-specific energy use for the technologies in each box, and scale the specific energy to the nameplate capacity of each process. Chapter 5 gives a more detailed look at benchmarking.

Subtract the actual energy use from the benchmark use for each box and add up the potential savings. If no benchmark is available or the available data are not detailed enough to apply a benchmark, choose a reasonable percentage of current use. If no energy improvement program was active in the last 5–10 years, a 10% saving is feasible. Even relatively new and efficient units generally have a bit of refinement available (1–2%) through active energy management.

Compare your estimate of potential savings with the current total energy bill.

Can you afford to focus some resources on energy? Can you afford not to?

Launching the Program

Like most corporate objectives, energy efficiency goals need support from above and heavy lifting from below. Managers will not generally support a new initiative unless they think that the issue is important enough to displace other priorities, and benefits cannot be achieved unless people are motivated to work toward them. An energy management program is a circular process of identifying opportunities, scoping solutions, and implementing improvements, and by doing so, refining the view for another pass (Figure 1.2). Getting started is the important thing. Significant energy improvements can be achieved without the final polishing of the process, so do not lose the good enough in pursuit of the perfect. Early successes prove that focusing on energy is worthwhile and inspire people to go out and look for opportunities in their areas.

Figure 1.2 The circular process of energy management. (Source: www.energystar.gov/guidelines)

Starting a program can be easier if you begin at the top. Presumably, upper management has both the vision to see the benefits of energy efficiency and command of the resources needed to do the work. Management commitment is key to the success of the effort. An energy policy statement from the executives demonstrates that commitment and provides the justification to get every site involved in the energy management process.

Some groundwork is necessary before you present your request for support. It is not enough just to estimate potential savings. You will need a rough action plan and an idea of the resources needed to achieve the savings in a given time. Data, plans, and resource requirements will improve with time and study, but first you must get the program off the ground.

Your credibility will also be enhanced by some judicious energy information gathering. You may encounter people within your company who do not believe that significant improvements in energy use are possible. Show them what your competitors are doing. Most large corporations discuss their energy improvements, and the resulting environmental improvements, on their websites. Case studies of successful programs from three companies in very different businesses and with very different energy usage profiles are discussed in Chapters 2–4. Energy policy statements are also displayed on corporate websites. Public organizations, such as ENERGY STAR from the U.S. Environmental Protection Agency (Chapter 7), also showcase companies that have made significant improvements. It is important to point out to management that spending resources on energy always provides some return. Energy prices fluctuate, but the risk associated with that spending is low compared to many other types of spending.

Involving the people you need to actually work on the energy efficiency issue will help ensure that your plans are feasible. Each company is different, but process or production engineers are usually the best points of contact for an energy-saving initiative. Each functional group has a role to play in the program, but the leaders of the energy-saving initiative need to understand the process flow and how energy consumption is affected by process variables. A senior process engineer makes a terrific site leader for the energy program. Site leaders must also have access to energy use data and the skills to develop and justify projects to improve energy efficiency. They also need the support of their managers. Choose a site with potential and spend some time talking to both the engineers and the operations managers. Share the site energy costs and any benchmarking data and brainstorm ways to identify saving opportunities and implement improvements. The exercise should both test your assumptions about achievable benefits and help you to determine the resources needed to realize the savings. Extrapolate these discussions to the entire company, and you will have a good start on an action plan.

Test the plan against the opportunities the group identified during the brainstorming at your pilot site. Will the plan be successful in implementing the opportunities? Is the site willing to follow the plan and try to capture those opportunities? Encourage them to start right away. Early successes increase buy-in at all levels and help to sell, and fund, the program.

Another potential selling point is the environmental benefit of an energy-saving program. The U.S. EPA provides some conversion factors for the greenhouse gas impact of different types of energy use [1]. You can use these factors to estimate the environmental impact associated with the energy-saving path you expect. Table 1.1 shows a few handy factors.

Table 1.1

Greenhouse Gas Impacts for Various Common Fuels [1]

The next stage of planning adds timing and targeting, which leads to initial goals. Take a first pass at prioritizing your company's energy opportunities and determining what could be achieved in the first year or two by applying the resources you have just identified. Start with the sites with both significant energy use and a significant gap between benchmark and actual energy use, and work outward from there.

Initial goals should be achievable but not necessarily easy. The organization should have to act, even to stretch itself, to achieve the goal. As the energy program ramps up, the resource–return relationship will become clearer, but setting a target will get people moving in the right direction. Your management will not hesitate to weigh in on how much can be accomplished in a given time.

Now set up that management meeting and state your case:

We believe that as a company we could save A% of our total energy use over the next B years. At today's prices, the savings are worth $C million per year by the end of that period. Other companies in our industry have achieved similar results—and have advertised the savings and the environmental benefits on their websites. The energy savings bring with them about D tons per year in CO2 reductions.

Your commitment to a policy of tracking and saving energy, and setting an energy-saving goal, is critical. Setting both a short-term reduction goal and a corporate energy policy that explains how we view energy will kick-start the program. Your continuing attention will ensure that the program is sustained. Here are some suggestions for a goal and a policy statement.

(For example: WeCo pledges itself to monitoring our energy consumption, instituting an energy reduction program, and reporting our progress to employees and shareholders. Our initial goal is to reduce energy consumption by 10% over the next 6 years, based on last year's energy consumption and throughput.)

And here are some ideas on how we could structure a program here at WeCo.

(For example: We could begin with a small central energy resource group to identify initial opportunities through site visits and surveys. To help to implement those opportunities and find others, we could name an energy leader at each site. At most sites, that role would take about 25% of an engineer's time, and at larger sites, 50% of an engineering resource.)

And now, armed with management approval and input, and start-up resources, you can begin an energy program for real. Let us start with resources.

Energy Resources: Roles and Responsibilities

A well thought-out energy management program identifies opportunities, sets the bar for ongoing performance, and maintains improvements with a minimum of resources. Resources are necessary, however. First, we will discuss the people resources. It takes the right resources to understand energy data, identify opportunities, act, and track the consequences of acting on the opportunities. It also takes people to design and implement policies and procedures to maintain efficiency improvements.

Energy Manager and Energy Staff

Your job as an energy manager is to help identify, facilitate, and reward energy improvements, using whatever means you have at your disposal. The energy management role generally provides an opportunity to influence others to take action. A good energy management program provides tools and requirements that identify opportunities. Rarely does an energy manager have the authority and budget to actually realize those opportunities. Instead, the energy manager gets to persuade and assist other people in completing the actions or projects needed.

The energy manager has access to all the company's energy information and is responsible for communicating progress toward goals. Formal communications keep management informed about the value of their investment in energy resources and also keep the participants in the energy-saving process informed and, sometimes, rewarded. Informal communications are more important in getting people engaged in the process and producing useful activity. How you do your job is as important as what you do. Here are a few bits of personal advice, from both the this worked for me and the do what I say, not what I did columns:

Remember that you are there to help, not to judge.

Reward successes before you chide failures.

Be respectful of competing priorities, but be persistent. Give people every opportunity to do the right thing.

Give credit generously and enthusiastically. Having the idea is not as important as completing the work to deliver the savings. Be a cheerleader.

Ensure that savings are owned by the site where they are generated. You are a helper, not a pirate who swoops in to claim the treasure.

Look for links between energy and other functions and resources. You can recruit other groups to consider energy in their normal activities, and you can also help out other groups with what you know and the data you keep.

The next section goes into energy accounting more deeply, but a few more bits of advice are useful while discussing the energy management function:

Create metrics that fairly measure performance and ensure that the metrics are publicized.

Account for savings clearly and fairly. Energy calculations should be easy to understand and should be based on the same prices or forecasts as are used for any other project or opportunity. There should be no easy opportunity for hand waving or fogging the results. It is better to underestimate (and over deliver) than to inflate expectations and lose credibility.

Weave energy efficiency into existing processes and systems—both for tracking savings and for maintaining the savings. It is better to make a pretty good addition to a system people understand than to create a perfect but new and unfamiliar system—especially if it takes time away from looking for savings.

Likewise, consider related process and maintenance benefits as you consider energy projects. For example, improving the efficiency of a major and limiting piece of equipment reduces energy use at the current throughput, but the change could also be used to increase throughput—and still achieve a lower specific energy.

Bring the energy message to the people and do your best to set their minds on conservation. Remind employees of simple things such as reporting steam leaks, turning off lights when they leave their offices, and turning off outside lights in the daytime. Posters, publications, and toys are useful tools.

Automate what you can and think ahead for sustainability.

It is very helpful to amass a small group of energy specialists with specialized skills to get the process off the ground. Experience in energy assessment, database construction and management, accounting, process engineering, and best practice gathering is useful. Depending on the types of energy opportunities you find, specific technical skills could be a tremendous asset. In any of the process industries, solid furnace and boiler skills are helpful—both a good understanding of process- and firebox-side efficiency and good furnace maintenance knowledge. Enthusiasm for the tasks ahead, persuasive capabilities, and a desire to help are important personal qualities.

The energy manager and the energy group also represent the company in external associations and forums. Associating with peers brings in new ideas and proven methods for starting and maintaining energy management programs. Public energy meetings also bring out a wide range of service and equipment providers, and create opportunities to discuss the usefulness of the providers and products with their customers. The energy group can also take the lead in seeking public recognition for the company's energy achievements: for example, by certification through the ENERGY STAR program (Chapter 7) or ISO50001/SEP (Chapter 6) or by applying for energy-saving awards. Public recognition also goes a long way toward improving the internal focus on energy efficiency.

Site Energy Leads

It is important for each site to name a local leader for the energy reduction effort. Ideally, the site energy lead will report directly to the site manager, and energy efficiency will be a topic of discussion at each management staff meeting. The fraction of a person's time required at each site will depend on the size and complexity of the site and on the time line set in the energy goal.

An energy lead's duties include collecting and reporting energy data; identifying, justifying, and supporting energy project implementation; and acting as the advocate for energy efficiency at the site. The energy advocate role requires belief in the value of the activity and active engagement with other functions at the site.

If your company has multiple units or sites, bringing the energy leaders together into a team (a best practice team, a center of excellence, or a business improvement team—whatever your corporate culture supports) is an effective way to leverage improvements between sites. Team meetings are helpful, but organizers should be respectful of time and ensure that each meeting provides value to the participants. Statistics can be handled in reports. Regular virtual meetings keep both the team focused and engaged and the team members up to date on issues and plans. For example, the background behind changes in energy statistics or the reasons for a new initiative can be discussed. If Plant A has a highly successful compressed air audit, the Plant A representative can share justification, process, and results with the rest of the team.

Occasional face-to-face meetings provide more space for team members to share ideas and results, ask questions, and help each other with issues. Face-to-face meetings also provide an opportunity to bring in subject matter experts to build technical proficiency, upper management to demonstrate support and value for the program, or colleagues who can discuss the impact of the energy program on their area of business.

The energy manager should provide each team member or site energy lead with a job description and a set of ground rules for energy accounting and energy goals. The description and rules should cover reporting requirements (energy use, actions taken to reduce energy, savings, etc.) and frequency of reporting, guidelines accounting for usage and savings, and team input requirements. Providing a resource guide with the available internal and external energy tools and services is important. It is also useful, over time, to check to see if each energy lead has taken advantage of all the energy resources (audits, tools, etc.) available. And most importantly, you as the energy manager should check in with each team member on a regular basis and see what you and your team can do to help.

Operations Management

Operations managers own both the energy-using equipment and the people and systems that can control a large part of energy use. In a perfect world, the operations staff provides enthusiastic support and interweaves energy awareness into processes and procedures. Operations managers have approval authority for operating changes and oversight of the operating technicians. Technicians often have excellent energy-saving ideas, and their vigilance maintains energy improvements. Managers' interest ensures the technicians remain interested, and profitability from improved energy performance accrues visibly to their site's economics. It is important to have the operations staff's active buy-in, and in order to achieve that, they must have a say in how the energy program is implemented in their area. This does not mean allowing a handcrafted I will do this, but not that approach; rather, it is a collaboration on how can we best achieve these corporate objectives in your area. Work together, and share your vision and agreement with the entire operations staff.

Maintenance

The maintenance department has the power to control a surprisingly large amount of site energy waste. Active, enthusiastic management of antiwaste programs like steam trap testing, repair, and replacement, steam leak repair, and insulation maintenance have a huge impact. Chapters 9–16 contain a number of energy-critical maintenance suggestions. Maintenance groups are often given a fixed annual budget, and unexpected repairs can whittle away at the discretionary portion of the budget. Waste minimization programs are often the first choice for saving maintenance funds. It is important to ensure both that the maintenance group understands the value these programs provide and that the group gets credit for their savings. Often the maintenance group sees no consequence for cutting these programs and no credit for saving them. The energy manager can provide both. Chapters 13 and 14 discuss steam traps and leaks in more detail.

In the longer term, maintenance standards can also have a large impact on ongoing energy costs. Ensure that standards reflect the current economics of equipment replacement and refitting. For example, it is frequently more cost-effective to replace old electric motors with newer, more efficient motors than to continue to rewind older motors. Ensure that insulation standards include appropriate services and thicknesses based on the marginal costs of the heat—or refrigeration—that could be lost. Insulation is discussed in more detail in Chapter 16.

Measurement is also important in energy management. Many plants have meters only at the utility system level, rather than providing meters and measurements for all energy sources at the unit or subunit level. Even when sufficient meters are available to close a unit energy balance, maintaining utility meters is generally given a lower priority than maintaining feed or product meters. Regular attention and good preventive maintenance standards can improve the situation.

Process Control

It is worth the time and effort to ensure that reasonable marginal costs of energy are included in process-side advanced process control (APC) and optimization calculations. Advanced control of boilers, furnaces, and utility systems can also bring substantial benefits. Real-time optimization of complex utility systems can also be worthwhile, as discussed in Chapter 19.

Collaboration between the energy manager, site energy leads, unit operators, and process control engineers can highlight opportunities to use APC methods to balance energy needs and energy generators. Better control of utility systems can even allow the shutdown of individual utility generators or plants for increased savings.

Components and Systems

We have identified the key people; now we will discuss the systems necessary to success for the energy management program. The following are key components of