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Keith Routledge – Carbon & Energy Solutions – Ecofys UK 2 April 2007 – Portorož Slovenia. Energy & carbon management in UK industrial companies. This presentation. To briefly introduce Ecofys To highlight the pressures on UK industry to achieve energy & carbon savings
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Keith Routledge – Carbon & Energy Solutions – Ecofys UK 2 April 2007 – Portorož Slovenia Energy & carbon management in UK industrial companies
This presentation • To briefly introduce Ecofys • To highlight the pressures on UK industry to achieve energy & carbon savings • To briefly review energy management in UK industry – technologies & methodologies • To introduce carbon management & its advantages
The sustainable energy solution provider The sustainable energy knowledge and innovation company The sustainable energy system supplier The sustainable energy project developer The sustainable energy innovation entrepreneur The sustainable carbon originator Econcern 13 countries 550 people
Introducing Ecofys • Energy & climate strategy • Kyoto+, EU ETS, adaptation, energy, policies & campaigns • Sustainable power & fuels • Wind, bioenergy, biofuels • Corporate carbon solutions • Energy efficiency, carbon management, strategic advice • Energy in the built environment • Design, energy management • Project development (through Evelop) • Wind, bio-generation, possible EBE • Carbon trading (through OneCarbon) • Investment in projects, broking & trading
Large energy use sectors in UK industry • Power generation • Chemicals • Metal products, machinery & equipment • Food, beverages & tobacco • Iron, steel & non-ferrous metals • Paper, printing & publishing
Legislation / regulation (incl. EU ETS, CCA, IPPC ) Customers Suppliers (raw materials, energy, equipment etc.) Stakeholders (incl. investors, community, NGOs) The pressures on UK Industry
Energy management – a three legged stool Technology Systems People
Systems • Energy price increases mean more metering/sub-metering in industry • Cost of metering energy forms varies • Half-hourly metering by supplier – data available • Electricity – cost of sub-metering falling to €200 per point • Metering of gas – fairly fixed • Metering of steam – fairly high c €9,000 for typical industrial installation • Data collection systems and monitoring & targeting software being used increasingly • Effective monitoring and targeting saving 5-15%
People • Important to include staff/workforce in drive to reduce energy use • Energy awareness programmes • Savings from increased awareness are very difficult to measure but an effective programme will save 2-3% of energy use in most organisations • Many industrial users are implementing energy awareness schemes prompted by Carbon Trust & consultancy support
Technology • Energy efficient technology is becoming more visible in UK industrial companies • Typical examples include – variable speed drives, high efficiency motors, energy efficient lighting, heat recovery, radiant heating systems, improved steam boiler controls, heat pumps, combined heat & power
Reduce end use • Rationalise process route • Improve heat transfer – clean heat exchange surfaces • Install more efficient reactors/heaters etc • Switch off/turn down when not required • Eliminate energy waste
Improving energy conversion efficiency • Blow down control • Feed water pre-heating • Install direct digital control systems for improved combustion control • Oxygen trim control • Heat recovery from blow down
Improving energy conversion efficiency • Variable speed drive (VSD) air compressors • As air compressors get older more UK companies are replacing fixed speed machines with VSD • Wide size range in screw type from a range of manufacturers
Improve distribution • Compressed air systems – a constant battle against leakage • ‘New’ tools – ultrasonic surveys • Steam distribution systems – direct leakage more apparent • Thermo-graphic surveys can highlight losses from steam traps
Energy efficiency improvement – the iron & steel industry
Why are energy-efficient technologies not adopted? • Options are not (yet) technically feasible • Possibilities are not known • Technologies do not satisfy pay-back criteria • Energy costs are not high enough to justify management attention • Energy Efficiency treated in isolation from organisation solution = Carbon Management
Definition - Carbon Management • The identification and management of risks and opportunities associated with the emission of carbon dioxide. • The scope extends beyond traditional energy efficiency and will include every aspect of an organisation’s performance in relation to climate change. More than only technical skills are required to get the best results
3 4 1 2 5 Mobilise the organisation Set baseline, forecast & targets Identify & quantify options Finalise strategy implementation plan Implement the plan Carbon Management Approach Building the team & determining the scope Setting the baseline and goals Identifying the risks and prioritising the opportunities Designing a cost effective strategy Scoping Study Complete with budgets, targets & success metrics
Case Study: Cement Sector • British Cement Association • Produce 90% of UK cement usage • 12 million tonnes of cement • Cement industry • Very energy intensive • High CO2 emission per unit of profit • Direct emissions • Calcination of limestone – 525g /tonne of cement clinker • Kiln fuel – 375g /tonne of cement clinker • Indirect emissions • Electricity – 70g /tonne of cement clinker
Case Study: Cement Sector • Energy accounts for ca. 35% of the variable costs • EU ETS energy costs further increasing • Increased competition (imports) • Internal company pressure to reduce CO2 emissions
Case Study: Cement Sector • Application of current technologies: • Reduction of fossil fuels with waste derived fuels • Shifting production to large, modern, efficient kilns • Reduction of air ingress into kilns • Improved kiln control systems • Optimisation of raw material chemistry • High efficiency motors & drives • Higher efficiency crushing & grinding • Improved energy management procedures • Potential of current technologies • 30% CO2 reduction
Case Study: Cement Sector • Opportunities for leap-frogging • Use of non-limestone binders • Producing cement and electricity on hybrid cement energy facilities • Carbon capture and sequestration • Change of energy source – biomass and windpower
Conclusions • Many many technologies • Substantial potentials for limitation of energy use and emissions • Opportunities for leap-frogging • Strong policies are necessary to achieve high energy efficiency improvement rates • An integrated approach (Carbon Management) will increase implementation rates
Thank you For additional information please contact Hans Heijkoop h.heijkoop@ecofys.com