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Energy audits, upgradescan boost profits atindustrial facilitiesWhite PaperSummaryNew source of profitA compelling case is made that significantsavings and profits can be realized by performing energy audits and executing retrofits andupgrades at industrial facilities.The owners of an average small- to mid-sizedindustrial facility could save 10 % on their powerbill and 42,000 annually by auditing energy useand implementing recommendations to upgradeequipment and change operations, according todata from a U.S. Department of Energy program.University professors and students in 24 locations across the United States are involved in theIndustrial Assessments Centers (IACs). Data fromthose centers, the results of more than 16,000on-site industrial assessments, suggest suchsignificant savings, or even greater, are possibledepending on the type of manufacturing facility.For years, industrial and commercial facilitiesviewed their electrical utility bill as the cost ofdoing business. Then, those energy costs beganto spike as fossil fuel costs rose to unprecedentedheights—more than 100 per barrel in the caseof oil. Concurrently, energy efficiency technologyinnovations that deliver energy savings with nosacrifice in performance (and sometimes improvesin product quality, production rate, safety, etc.)accelerated in development.Even though oil prices have settled, the surgeof interest in energy retrofits remains unabatedas governments and environmentally consciouscompanies look to curb greenhouse gases blamedfor climate change and utilities seek to extend thecapacity of existing power-generation plants. Andof course the specter of higher fuel costs looms inthe future.Indeed, American facilities have found a potentialnew source of profit margin by becoming moreefficient by cutting their monthly energy bills.The U.S. government’s Department of Energyhas set up programs to help industrial companiescurb energy costs and thus greenhouse gases. Oneof those, completes in-depth assessments on plantoperation in order to identify energy efficiencyimprovements, minimize waste and pollution andimprove productivity. The IACs compile the datafor their assessment for use by industry in a database accessible online. (see http://iac.rutgers.edu/database/topten/)Users can glean valuable information from thedatabase by approximating potential electricaland natural gas energy savings by taking a lookat the average results obtained at similar industrial plants. The database also lets user identifyfrequently recommended efficiency measures foreach industrial plant.Another energy savings estimate tool is thePlant Energy Profiler, into which a user inputsannual energy use and cost data as well as abreakout of energy use by operating process orsystem in a given plant. A default breakout ofenergy use by production process is offered in theabsence of the specific data. (see x)A white paper commissioned by FlukeCorporation, “Estimating Annual Energy Use andPotential Savings at Industrial Facilities,” exploresthese two programs in depth and can serve as aguide to industrial users. (See Appendix)Beyond the federal government programs,local utilities have launched customer servicecampaigns aimed at assisting facility manager tomake better use of the power they are consuming.Average Possible Electrical Usage Savings9.96 % 42,224Source: US DOE, IAC Database (Recommendations Per Assessment),1981-2015

Add to those examples yet another majorconcern that can hit facility manager’s bottomline—dirty power.Energy engineers have known for many yearsthat imperfections in the purity of power—such asharmonic distortion and load unbalance -- causedthree-phase equipment performance issues. Andin the case of power factor diminished the usability of the distributed electricity. Utility companiessometimes even charge for excessive power factor.But it was only a decade ago the IEEE alongwith academics sought to quantify the amount ofpower made unusable by such imperfections.In two studies, one at an automobile plant andanother at an industrial park, Professors VincenteLeon and Joaquín Montañana at the University ofValencia in Spain were able to quantify annualenergy savings from power quality adjustments.In the industrial park example, the utility wasable to save 14,000 a year by installing timecontrol relays to disconnect a capacitor bank atnight; and the automobile plant upgraded transformers and installed capacitors and regulatorcontrols for a savings of 50,000.Hailed as a breakthrough, their Unified PowerEnergy audit basicsmeasurement took recommendation of the IEEE1459-2000 standard that defined the sources ofA basic energy audit can help determine whichoperational function consumes the most energy per specific wastes and calculated the energy wastesmonth. Many facilities have identified the easy tar- of reactive power, harmonics and unbalance inthe electrical system.gets—energy consumption that can be decreasedFluke learned of the breakthrough andwithout substantial investment as well as to takeadvantage of government energy-efficiency subsi- approached the two professors about a partnership. The result: Fluke engineers were able todies. Common examplestransition the science from academic research Shutting off equipment and systems overnightinto Unified Power measurement feature and aninstead of leaving them on Upgrading lighting systems to more energy effi- Energy Loss Calculator that is now available incient LED banks and motion sensors switches.portable handheld power quality analyzers. Both Upgrading chillers to high-efficiency modelsparties hold patents on different aspects of the Fixing leaks in compressed air linesnew capability. Adding controls to match mechanical equipment output to performance requirementsWhy do this? Utilities have capacity concernsand it’s easier to curb waste than it is to buildpower plants. Even getting a new power plantapproved through the tangled regulatory framework can take years. And the random oil spill ornuclear plant disaster show just how limited theoptions are for generating new power.Thus, electrical utilities have a keen interest inavoiding having to add to their existing generationcapacity. And facility managers have incentives toreduce power waste and become more efficient. Ifa company’s profit margin is 5 %, saving 30,000in energy costs equates to sales of 600,000, andmany energy-savings measures may have simplepayback of several years or less.“Energy studies are essential for identifying opportunities for energy saving measureswith proven returns on investments,” said RobPenney, senior energy engineer at WashingtonState University’s Energy Program. “If you can’tmeasure it, you can’t manage it. Take advantageof the excellent audit tools and on-line information resources available to ensure cost-effectivesuccess.”For more effective energy savings, it’s best totake a systems approach. Rather than replacinga component with something similar, start withend uses, then look at distribution systems, andfinally look at the central plant. For a compressedair system, this would mean reconsidering wasteful end uses (such as sweeping the floor—get abroom!), then fixing distribution leaks, and finallyconsidering a more efficient compressor, whichmay now be sized smaller than the previousequipment.2Energy audits, upgrades can boost profits at industrial facilities

Quantify energy wasteTop 10 Recommendations for EnergySavings (all industries)Handheld energy analyzers, such as the Fluke1730 Three-Phase Electrical Energy Logger, deploy 1. Utilize higher efficiency lamps and/or ballastsUnified Power measurement calculations to express 2. Eliminate leaks in inert gas and compressedpower and energy data that directly quantify theair lineswaste energy in electrical system by measur3. Use most efficient type of electrical motorsing harmonics and unbalance waste in terms of4. Install compressor air intakes in coolestkilowatts. The measurements also factor the costlocationsof each kilowatt hour to calculate the cost of waste5. Reduce the pressure of compressed air to theenergy over a week, a month or a year.minimum requiredArmed with handheld energy analyzers,6. Utilize energy efficient belts and otherengineers or electricians can log the energy toimproved mechanismsequipment known to consume large quantities of7. Install occupancy sensors8. Use more efficient light sourcepower, then quantify the savings to make a case9. Insulate bare equipmentto manager for improvements in their plants.10. Analyze Flue gas for proper air/fuel ratioSome of those recommendations might includeadding capacitor banks to resolve power factorSource: US DOE, IAC Database, 1981-2015issues, or changing the type of electronic equipment. And in the case of unbalance, installingTotal Recommendations: 126,706Recommendations Per Assessment: 7.6unbalance compensation equipment or increasingAveragethe over electrical distribution system capacity.RecommendedEven the installation of a harmonic filter willSavings PerUsage%Cost ( )improve overall power quality and increase bothAssessmentReduction Reduction SavingsUnitequipment reliability, efficiency and lifespan andAll energy12,5548.37 % 77,296 MMBtudecrease downtime.Electrical796,8849.96 % 42,224kWhBut with the new Unified Power capability,Natural gas3,8387.57 % 21,510 MMBtucoming up with the cost of labor and equipmentWaste 9,198necessary to mitigate harmonics and unbalanceProductivity 49,962as compared to the amount of energy wasted,Total 136,456becomes a relatively straightforward ROI equation.And once the changes are implemented, aroutine of monitoring equipment with the handTop 10 Recommendations for Energyheld analyzers can be a way of ensuring smoothSavings in Chemical Manufacturingand efficient operations. With new tools—such(NAICS 325)as handheld energy analyzers—and resources1. Install equipment to utilize waste fuelavailable only justifying the costs of upgrades and2. Repair and eliminate steam leaksimprovements at the facility are easier than ever.3. Use waste heat to produce steam to drive asteam turbine generator4. Establish burner maintenance schedule forboilers5. Increase the amount of condensate returned6. Operate boilers on high fire setting7. Install equipment (eg compactor) to reducedisposal costs8. Use steam pressure to generate power9. Recover waste heat from equipment10. Use a fossil fuel engine to cogenerate electricity or motive power, and utilize heat3Energy audits, upgrades can boost profits at industrial facilities

Estimating annual energyuse and potential savings atindustrial facilitiesA White Paper by:Gilbert A. McCoy, PE, Energy Systems EngineerWashington State University Energy Program4OverviewThe IAC Assessment DatabaseThe U.S. Department of Energy (DOE) provides twotools to assist industrial plant end users, utilitystaff, consultants, and equipment distributorsto estimate annual energy savings at a “typical” industrial facility. One tool is the IndustrialAssessment Center (IAC) database, which containsresults from over 16,000 energy assessments. Thisdatabase allows users to identify both the annualaverage electrical energy use by plant type aswell as the potential energy use reduction. Thedatabase allows users to approximate potentialelectrical and natural gas energy savings due toan examination of the average results obtained atsimilar industrial plants. The IAC database alsoallows users to identify the most frequently recommended efficiency measures for each industrialplant type.The second energy savings estimation approachis the on-line Plant Energy Profiler software tool(also known as “Quick PEP” or “ePEP”). The user ofthis tool must provide only annual energy use andcost data. Quick PEP then attempts to provide moredetailed or “targeted” information as it allows theuser to provide a breakout of energy use by operating process or system in a given plant. (If the plantstaff has not tracked energy flows in their facility, the software tool provides a default breakoutof energy use by production process based uponManufacturing Energy Consumption Survey (MECS)data). Based upon level of prior efficiency work, thesoftware tool assigns a “High”, “Medium” or “Low”potential for additional savings, and then providesa report showing potential savings for each plantproduction process. While the software tool doesn’tindicate how to obtain these additional savings,a list of typical savings measures is provided foreach plant process (such as a compressed airsystem or pumping systems).Many documents exist that provide energyuse data at the industrial sector level or thatspecify industry-specific efficiency measures andapproaches. Information that is made available bythe Environmental Protection Agency’s EnergyStar Buildings and Plants program and fromLawrence Berkeley National Laboratory’s IndustrialEnergy Analysis program’s Sector Assessmentswill be listed. The UK’s Carbon Trust also providesmany useful sector specific publications.The U.S. Department of Energy (DOE) has longsupported the Industrial Assessment Center (IAC)program. Under this program, engineering schoolfaculty and upper class and graduate studentsperform no-cost energy assessments at small andmid-sized industries. The industrial plants selectedare from the manufacturing sector (SIC 20-39)with: Gross annual sales below 100 million Fewer than 500 employees at a plant site, and Annual energy bills more than 100,000 butless than 2.5 million.Energy audits, upgrades can boost profits at industrial facilitiesThe IAC teams conduct a one or two-day sitevisit to familiarize themselves with equipmentand process operations and to take engineering measurements. Utility bills are examined todocument annual purchased fuel, energy, demand,and power factor penalty costs. The team thenperforms a detailed examination of potentialenergy savings opportunities and prepares a reportcontaining recommendati