Improving Ecological Efficiency

1. Improving Ecological Efficiency Led by: Dan Terpstra There is a rising tide of environmental awareness. Smart companies will get ahead of the wave. Those that don’t will be wiped out. - Bill Ford, Chairman, Ford Motor Company What use is a house if you haven’t got a tolerable planet to put it on? - Henry David Thoreau Efficiency is free. Ask for more. - Lee Eng Lock, Compaq Over the long-term, it is more profitable to do the right thing for the environment than to pollute it. - Aaron Feuerstein, CEO, Malden Mills

2. Why Are You Here? • Your name • Your job title / description • Your company • Why you decided to come to this session

3. Why Am I Here? Who is this guy, anyway...

4. What is Efficiency? • Doing more with less. • More what? Less what? • Traditionally: • more stuff • less people • In the new millennium: • we have plenty (too many?) of people. • the limiting factor is becoming physical resources.

5. How Do We Improve Ecological Efficiency? • Understand the Systems we are part of. • Understand the inputs and outputs of our Systems. • Identify the material and energy losses in our Systems. • Understand the impact of those losses. • Look for ways to reduce the losses and/or minimize their impacts.

6. SystemsThinking

7. Systems Thinking • Systems Thinking: The ability and practice of consistently examining the whole system, rather than just trying to fix isolated problems. THE FIFTH DISCIPLINE The Art & Practice of The Learning Organization by Peter M. Senge, Director of the Systems Thinking and Organizational Learning Program at MIT’s Sloan School of Management, and a founding partner of Innovation Associates in Framingham, Massachusetts.

8. What’s a System? • A system is a set of elements inter-relating in a structured way. • The elements are perceived as a whole with a purpose. • A system's behavior cannot be predicted by analysis of its individual elements. • The properties of a system emerge from the interaction of its elements and are distinct from their properties as separate pieces. • The behavior of the system results from the interaction of the elements and between the system and its environment. • ( System + Environment = A Larger System )

9. Open Systems • An Open System can receive inputs from beyond its boundaries. • An Open System can produce outputs that extend beyond its boundaries. • Most Open Systems do both. • Examples: • a manufacturing facility • an automobile • a fast food restaurant • etc.

10. Closed Systems • A Closed System receives no inputs from beyond its boundaries. • A Closed System produces no outputs that extend beyond its boundaries. • A Pure Closed System is hard to define. • Examples: • a space capsule (in orbit) • a nuclear submarine (underwater) • a well balanced terrarium • BioSphere II (??)

11. The Earth is an Open System Radiantinfrared Photonsof light Energy is received from the sun and radiated into space. If input and output don’t match, we heat up or cool down.

12. The Earth is a Closed System Stuff is neither added to nor removed from the earth. It just changes, typically from low to high entropy forms.

13. Thermodynamics

14. First Law of Thermodynamics • Energy and Matter are Conserved • Energy is neither created nor destroyed • Matter is neither created nor destroyed • Matter can be converted into energy;but not very easily • Einstein said it best: E = mc2 • Stuff isn’t consumed, only transformed

15. Second Law of Thermodynamics • In a Closed System, Entropy Increases • Stuff gets messed up • Energy sources tend toward equilibrium • Matter tends to disperse • Things go from high usefulness to low usefulness • Stuff is transformed from low entropy to high entropy • (Unless energy is added)

16. Applied Thermodynamics The sun’s energy is captured by plants in photosynthesis. This drives all oflife and industry on earth and reduces entropy. Humans and animals “burn” plants to release this energy, increasing entropy.  Manufacturing also         increases entropy by       burning the sun’s       energy captured by      plants and animals in  fossil fuels. In the long run, we can’t burn energy faster than we receive it from the sun.

17. Limits

18. Limits to Growth • Carrying Capacity • How many people can the Earth support? • 1 Billion? (1800) • 1.5 Billion? (1900) • 3 Billion? (1960) • 6 Billion? (2000) • How much can we “consume”? • How much greenhouse gas is too much? • How much waste can the Earth absorb?

19. Exponential Growth • DEFINITIONS: • A quantity grows linearly when its increase is constant in a given period of time. • A quantity grows exponentially when its increase is proportional to what is already there. • Systems with exponential growth are almost always unsustainable.

20. The Miracle of Compound Interest (1) $1000 invested at 8% for 10 years...

21. The Miracle of Compound Interest (2) ...for 50 years...

22. The Miracle of Compound Interest (3) ...for 100 years...

23. Moore’s Law In 1965, Gordon Moore of Intel said... Chip Density doubles every 18 months. He was right!

24. World Population Growth 6 4 2 1700 1800 2000 1900 inbillionsof people

25. Reaching the Limits: Stable carrying capacity population time time Sigmoid (s-curve) approach Continuous growth

26. Reaching the Limits: Unstable time time Overshoot and collapse Overshoot and oscillation

27. Economics

28. Empty World Economics • Views Economics as an Open System... transaction transaction • Economic Growth is good and unlimited... transaction transaction transaction transaction transaction transaction transaction sellers buyers transaction

29. Full World Economics Greenhousegases energy Renewableresources Mfg. product minerals waste Recognizes Economics as part of a Closed System sellers buyers transaction

30. Full World Economics Conditions for Sustainability: Fossil fuels can’tbe used fasterthan renewableresources can besubstituted. Greenhouse gases can’t be generated faster thanthey can be absorbedor dissipated. Greenhousegases energy Renewableresources Renewables can’t be used fasterthan they regenerate. Minerals can’t be used fasterthan they can be recycled. Pollutants can’t be createdfaster than they can beneutralized bythe environment. minerals waste

31. Greenhouse Gases: CO2 ppm 380 360 340 320 300 1860 1880 1900 1920 1940 1960 1980 2000

32. CO2: What we know • It IS a greenhouse gas • Arrehnius knew it 200 years ago • It is less than .04 % of the atmosphere • It has varied between 200 and 300 ppm over the last 160,000 years • (+ 2ppm / century) • It’s currently nearing 380 ppm and increasing at about 1ppm / year

33. Global Warming: It’s here... • 15 of the 20 warmest years on record have occurred since 1980 • 11 of the last 12 months have set a new global temperature record • The last three Decembers have each been the warmest to date • Global temperatures have exceeded the 3 sigma statistical limit every year since 1989 • CO2 is projected to double by 2030

34. Global Warming: Graphically...

35. Beyond the Limits? • Some computer models indicate we are already operating beyond sustainable limits • Even if we aren’t, exponential population growth guarantees we soon will be • Environmental restrictions will get tighter, rather than looser • Whether you believe this or not, energy and resource efficiency still give you a competitive advantage.

36. How to Become a Cool Company*

37. *A Cool Company • Definition: • “A cool company will cut its emissions by 50% or more while reducing its energy bill and increasing productivity, with a return on investment that can exceed 50%…” • Joseph J. Rommin “Cool Companies”.

38. Continuous Cool Improvement • Ken Nelson @ DOW Louisiana set up an energy efficiency contest in 1982 • Winners needed a payback under a year • 1982: 27 winners, $1.7M spent, 173% ROI • 1983: 32 winners, $2.2M spent, 340% ROI ... • 1989: 64 winners, $7.5M spent, 11 week ROI ... • ‘91 - ‘93: >100 winners each year, > 300% ROI

39. Invest • Don’t look at payback, look at ROI • Most facilities managers look for a 1 - 2 year payback • Compaq considers cost-of-money + 3% a good efficiency investment • Energy efficiency is a lower risk investment than many a company makes ~= Gov’t Bonds • Look at life-cycle costs, not purchase price • Look at system efficiencies, not component performance

40. Dematerialize • Use less stuff in your products • milk jugs • aluminum cans • reduce your packaging • “Cradle - to - Cradle” life cycles • think recycling at the design stage • own your packaging • Become a Service Organization • Xerox: Selling copies, not copiers • Electrolux: Selling washes, not washers • Interface Carpets: Evergreen Lease

41. Transportation • Move bits, not atoms • Tele Commute • Tele Conference • email • ecommerce • Car Pool • Use Rail where possible • Consider fleet efficiencies • Dematerialize

42. Buildings (I) • Lighting • daylighting • Change incandescent to fluorescent lighting • lighting reduction & task lighting • motion sensors • Energy Star equipment • copiers • inkjets vs. laser printers • laptops vs. desktops • energy saving monitors

43. Buildings (II) • EMCS • Energy Management & Control Systems • Envelope • Insulation • Fenestration (windows) - up to 25% of heat & cooling costs • Infiltration (air leaks) • HVAC • Variable speed fans & motors • appropriate sizing & efficiency= 30 - 40% savings • Energy Star Buildings: www.epa.gov/buildings

44. Productivity • In many offices: • energy costs: $1.50 - $2.50 / sq.ft. • salary costs: $200 / sq.ft. • Productivity gains from environment improvements often swamp energy saving • daylighting @ Interface dropped worker comp by 95% • energy efficiency @ Veriphone produced a 7.5 year payback; a 5% productivity increase 45% abesteeism decrease brought payback to < 1 year • a Wisconsin insurance company saw a 40% energy decrease turn into a 7% productivity gain for a < 1 year ROI • Lockheed built a new building in 1983 with energy efficiency adding 4% to building cost. Productivity increases of 15% paid for the increased cost in the first year.

45. Power Generation • Electric Utility Efficiency: • typically about 33%; at best about 50% • Cogen Efficiency: 60% - 90% • gas micro-turbines generate power and steam for local consumption • Deregulation creates opportunities… • ...and problems: EPRI-PEAC • Fuel Cells instead of UPS • higher reliability (6 9s vs 3 9s); lower life cycle cost • PhotoVoltaics are becoming cost competitive • costs have fallen 10-fold since 1980

46. Motor Facts • Motors use almost 70% of industrial electricity • Inefficient motors use 5x capital cost / year • High efficiency motors can save $25 / hp / year • Of motors currently in use: • Less than 1/3 are high efficiency • About 1/3 operate at < 40% rated load, even tho peak efficiencies are between 40 and 70% • Replace oversized motors with smaller motors in parallel for peak loads & redundancy • Use Variable Speed Drives instead of valves, vanes or dampers • GET PROACTIVE

47. Proactive Motor Program • Locate & identify all equipment • Document motor & control types, loads, etc. • Analyze efficiencies, use vs. needs, energy use • Develop options & sources for replacements • Authorize replacement spending • Implement either immediately or at end-of-life • Measure energy & dollar savings; ROI • Communicate lessons learned to other teams • Repeat • DOE Motor Challenge: (800) 862-2086

48. Compressed Air • Often called the 4th utility • after electricity, gas, and water • most expensive & least efficient of the 4 • 90% of compressor power lost as heat • FIX LEAKS for up to 35% savings • Match compressor size & load • Demonstrated energy savings up to 49% • ROIs > 300% • DOE Compressed Air Challenge:1 (800) 559-4776

49. Steam • The process industry spends $20 Billion / year to heat water. • It’s the largest single use for fossil fuels • Up to 80% reduction in fuel use is possible • Insulation: Georgia Pacific cut fuel cost by 1/3 • Leaky Steam Traps: as high as 1/3 don’t work • Distributed generation: less distribution losses • Don’t heat unused space • Co-Generation produces either free electricity or free steam • Recover heat from low grade steam

50. What areYourEcological Efficiency Issues?