Energy optimization management for industry

Taming the Energy Monster
Financing Energy Optimization Projectswith Guaranteed IRR
Bakhtiar Hameed Wain
CEO Avanceon
May 25, 2010

The energy and CO2 emission challenge
World consumption up 45% since 1980, 70% higher by 2030
Emerging markets
> 75% of new demands
CO2 up 33% since industrial revolution, rising faster than ever
Resources competition &
Political instability keep prices high
Coal use continues to grow in emerging markets
These trends are here to last unless we act!

The energy dilemma is here to stay
÷2
x2
The need
The fact
VS
CO2 emissions
To avoid dramatic climate changes
Source: IPCC2007, figure (vs. 1990 level)
Energy demand
By 2050
Source: IEA 2007
Energy management is the key to address the dilemma

30% global energy saving!
>1 year of electricity from 20,000 coal-fired power plants
>12GigatonesCO2e/year

We have 10 years….to fix 4 critical problems
Generation:
> 10 years to fix
Transmission:
> 10 years to fix
Building & Process:
1-5 years to fix
Point of Use:
1-5 years to fix
Problems:
CO2 Emissions
Capacity Constraints
Transmission Efficiency
Capacity Constraints
Stranded Capacity
Process Domain Knowledge
Efficiency , Integration & Optimization
Focusing on point of use architecture provides fastest impact and frees upstream capacity through Power Plant
Source: Hot, Flat and Crowded: tom Friedman

And remember: a small save is a big save at the power plant!
Fuel
100 units
35 units
25units
=
1 unit saved
4units saved at the power plant

…and also the first energy consumers!
Energy use split
31%
Industry & Infrastructure
28%
Transportation
>2%
Data centres &
networks
21%
Residential
18%
Buildings
Main energy consumption is for steam generation,heating, cooling, motors, lighting, Electronics and appliances
Source: EERE Building Energy Data book 2006
EERE Manufacturing Systems Footprints,
http://www1.eere.energy.gov/industry/energy_systems/pdf/mfg_footprint.pdf

Excluding raw material costs, 70% of manufacturing costs are absorbed by the cost of energy …………. US Department of Energy
Energy use split
31%
Industry & Infrastructure

Approach to active energy efficiency
5. Integrate renewables
1. Find out what the challenge is…
Energy audit & metering
Passive Energy Efficiency
Active Energy Efficiency
2. Fix the basics
3. Optimize through automation & regulation
4. Monitor, maintain, improve
Solutions in:
Pumping, Compressor and Fan Contol,
Steam System Management
Power management, motor & lighting control
Metering, monitoring and consulting services, EE analysis software
Low consumption devices, insulation material, power factor correction
Passive + Active EE solutions = Sustainable Energy Savings

Avanceon’s Integrated solutions for the industry
Make energy visibleMake systems work together
Integration
Avanceon Solutions:
iBoiler & iWater
Microsoft Certified Data Visualization and Archiving Solution.
Efficient Steam and Flow Control
Optimizes Utilities for 10 to 35% reduction in energy usage
Energy monitoring
Data Archiving
Steam System Optimization
Motor Control
Pumps
Fans
Compressors
Lighting Control
Solutions with Partners
HVAC Control
Electrical Distribution

30% savings are available today……thanks to a combination of
100%
70%
Efficient devices and
Installation (5 to 10%ce )
Optimized usage via
Automation(10 to 15%)
Monitoring & maintenance
(2 to 8%)
Energy Consumption
Time

But saving can be lost quickly…
Unplanned, unmanaged shutdown of equipment and processes
Lack or mistuned of automation and regulation
No continuity of behavior
100%
Up to 8% per year is lost without monitoring and maintenance program
Up to 12% per year is lost without regulation and control systems
70%
Efficient devices and
Installation (10 to 15%ce )
Optimized usage via
Automation(5 to 15%)
Monitoring & maintenance
Energy Consumption
Time

Avanceon Energy Dashboard

Value Proposition – Steam System Optimization
Do you?
Run more than one boiler in tandem
Have more than 10 Ton / Hour of average load
Use fuel to produce steam
Want to reduce cost by 5 to 15%
Avanceon will bear the total cost of iboilerTM system which includes proprietary software, control system, instrumentation, installation and commissioning
How does Avanceon get paid:
9 to 15 months of proven savings; Avanceon will confirm the exact savings amount after site survey and before the contract is signed
Managed Service Level Agreement (MSLA) to ensure sustained savings
Both parties have the right to terminate the contract with 90 days notice

Value Proposition – Water & Air
Does your manufacturing facility have?
Cooling and Process Water System
Chilled water System
Fans and Blowers
Compressed Air Circuit
The above areas as a rule of thumb could have up to 30% energy potential
Most engineers or consultants would agree with the above claim of savings potential…………... then what stops organizations from harnessing this savings potential???

Value Proposition – Barriers to Moving Forward
Who guarantees the saving and what if savings is not achieved?
Will my manufacturing process be disturbed?
Involves high capital investment!!!
I can think of better investment opportunities
I need a specific ROI or IRR to invest; Energy optimization is not my business and am not sure if I can manage it to achieve my financial goals

Value Proposition – Risk Free Financial Proposal
Avanceon guarantees Energy Savings; enables organizations to earmark reduction in expense budget for CAPEX

Agreed Payback Period
Value Proposition – Risk Free Financial Proposal
Your Savings
Savings paying for the Project
Previous
Energy Costs
Process Energy Costs
New reduced Energy Costs with EMS Solution
Time

We can not stop world population or energy demand growth…
But we can change the way we use energy
And reduce carbon and GHG emissions

Its time to act
?

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Energy optimization management for industry

by Avanceon on Jun 07, 2010

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