Taking Energy Efficiency to the Next Level

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Taking Energy Efficiency to the Next Level

  1. 1. Alcoa Can’t Wait For Tomorrow St Gobain – Feb 28, 2013
  2. 2. Alcoa at a Glance  Founded in 1888  200+ locations  31 countries  $21.0 billion 2010 revenue  Alcoa’s lost workday injury rate is 1/10 that of the average U.S. manufacturing workplace  Award-winning sustainability leadership  120 years of aluminum technical leadership, including the original aluminum process 2 Number of Employees (2010) U.S. 24,000 Europe 17,000 Other Americas 11,000 Pacific 7,000 59,000
  3. 3. Aluminum – The Miracle Metal 3 Drives fuel efficiency Makes hottest gadgets cool Takes you out of this world Infinitely recyclable Builds a strong foundation Replacing 2 lbs. of steel with one pound of aluminum in a city bus can eliminate up to 35 pounds of greenhouse gas over its lifetime Aluminum’s look, feel, durability and thermal conductivity make it a top trend in consumer electronics Nearly all the alloys used in modern aircraft were developed by Alcoa More than one trillion cans have been recycled in America since Alcoa pioneered the industry in 1972 An office building using aluminum- enabled building envelopes can drive 20% energy savings over similar buildings: and 157 tons of CO2 per year Almost 75% of all aluminum produced is still in use today
  4. 4. The Aluminum Leader for 125 Years 4 F Upstream Bauxite mining Alumina refining Aluminum smelting Aluminum recycling Downstream Fastening Systems Power & Propulsion Wheel & Transportation Building & Construction Forgings & Extrusions Midstream Flat rolled aluminum Operations We invented the aluminum smelting process in 1888 Alcoa is the largest producer of aluminum in the world Alcoa is the leader in aluminum technology and innovation Only aluminum company covering every stage of aluminum production:
  5. 5. Alcoa is No.1 or No. 2 in 85% of our Businesses 5 Primary Aluminum Transportation Packaging Building/ Construction Aerospace Industrial Oil & Gas Consumer Electronics  Ingot  Rolling slab  Extrusion billet  Cast Rod  Sheet, castings, extrusions  Forged wheels  Sheet for aluminum beverage cans and bottles  Recycling  Reynobond/ Reynolux Aluminum Composite Material  Kawneer windows, curtain wall systems, entrances, framing  Sheet/Plate for fuselage skins  Structural forgings  Fastening Systems  Cast turbine blades  Sheet  Plate  Forgings  Hard-alloy extrusion  Aluminum drill pipe  Riser systems  Enclosure design and surface treatments  Thermal management for displays  Forgings for display manufacturing
  6. 6. Worldwide Operations – Regional Strength 6
  7. 7. Key Global Megatrends Fuel Our Growth Population Growth Urbanization Climate Change 7 Energy consumption rising  Increase of 54% by 2025  Driven by developing countries Personal transport rising  Increase of 40% by 2030 Greenhouse gas regulation Global population rising  2006: 6.6 billion  2025: 7.9 billion  2050: 9.1 billion Population in cities  2006: > 50%  2030: > 60% Demand for buildings, transportation and consumer goods Demand for infrastructure, energy Demand for fuel efficiency, recyclability, environmental stewardship
  8. 8. Values Drive Everything We Do 8 Integrity Environment, Health and Safety Customer Excellence People Profitability Accountability Building shareholder value Behaviors, actions, results Customers, employees, community Promote human and environmental health Creating value through innovation Pursued in everything, every day Embracing change and respecting the individual
  9. 9. Future Products Have Potential to Revolutionize Markets 9 Aerospace Defense Energy Packaging Consumer Electronics Ground Transportation Oil & Gas Building & Construction Fuselage sheet that mimics sharkskin Energy efficient buildings Ultra-thin, durable, infinitely recyclable finishes Strong, light, blast- resistant military vehicles Low-cost concentrating solar power Aluminum-intensive electric cars Nano-coatings increase life of oil riser systems Stylish, cool, sustainable packaging
  10. 10. 10 Infinite Recyclability Surface Finish Attributes High Strength Formability Thermal Management Light Weight The Alcoa Aluminum Proposition Consumer Electronics: Making the Hottest Gadgets Cool MacBook Pro Sony’ Reader™ Apple’s aluminum-backed iPad” Nokia N8 Amazon Kindle HP ProBook 4520s
  11. 11. Aerospace: Alcoa’s Content Runs From Nose to Tail and From Wing-tip to Wing-tip Fuel Connectors Wing Ribs (Plate) Fuselage Stringers Hydraulic Vessels Fuselage Skins Seat Tracks Floor Beams Bay Landing & Support Forgings Wing Box Fasteners Fuselage to Wing Connection Upper Wing Skins Wing Spars (Forgings) Engine Pylon Fasteners Engine Pylon Support Structure Lower Wing Skins Wing Flap Fasteners Wing Spars (Plate) Wing Gear Rib & Support Fittings Vertical Stabilizer Fasteners “Hot Section” Turbine Engine Airfoils 11
  12. 12. 12 Innovation is our heritage Year Truck bodies & Wheels Automotive Structures Audi A8 Electrical Conductor Model T Castings Buildings Marine Heat Exchangers 1886 1900 1920 1940-1950 1960 1980 19901890 Airplanes Household Foil 2000 Cookware Ferrari Modena Space Shuttle Airbus A380 Aluminum Beginnings Today Defense Oil & GasConsumer Electronics Environmentally- Friendly Bus Aluminum Bottles Easy Open Cans
  13. 13. Alcoa Energy Efficiency Program Reaching our goals through sustainable targets.
  14. 14. •Plant Energy SPAs •Regional energy organizations •External corporations •Agencies (DOE, ABRACE, ETC.) •Corporate Energy Team •Training •Webinars •Global & regional meetings •Workshops •Case studies •Top level commitment •Goal setting •Reporting •Recognition •Energy management standard practice Energy Efficiency Program •Energy assessments •Energy Kaizens •Technical assistance •Standard practices •Energy projects 14
  15. 15. Top Level Commitment  Dedicated energy team and energy efficiency staff.  Each business sets annual energy reduction goals.  Businesses and business units designate energy champions (SPAs).  Each business establishes an energy cost reduction goal and strategy.  Executive compensation linked to an energy reduction goal. 15
  16. 16.  Downstream businesses (GRP and EPS) − 20% reduction in energy intensity between 2005 – 2020 (2010 for EPS) − 30% reduction by2030  Progress is reported in the Alcoa sustainability report each year Goal Setting & Reporting  Set long term reduction goals  Global Primary Products (Mining, refining and smelting) − 10% reduction in energy intensity between 2005 - 2020 − 15% reduction by 2030 16 Chart from the Alcoa 2011 Sustainability at a Glance Report
  17. 17. 17 Recognition Striving to recognize individuals and groups making the Energy Efficiency Program successful. Past individual awards include:  Developing/contributing to a Best Practice procedure.  Providing leadership in program development.  Leading a successful assessment.  Sharing information and providing technical support.
  18. 18. Three primary standards 1. Energy Management Standard Practice (ISO 50001) 2. Energy Measurement, Management, and Verification 3. Compressed Air Systems 18 Energy Management Standard Practice Energy Management Best Practice documents available on the Global Energy Efficiency website
  19. 19. Five day “deep dive” review of all aspects of energy use.  Technical investigation of specific energy users.  All opportunities (capital and non-capital ) identified and quantified.  Involves both internal and external experts.  Full report of findings prepared. 19 Energy Assessment
  20. 20. A three day, plant-wide activity focused on:  Low cost and no cost actions to reduce energy consumption.  Learning ways to continuously improve and reduce energy consumption.  Cross-functional teams of Alcoans brainstorm ways to reduce energy use throughout the plant.  Teams identify, analyze, and evaluate energy savings opportunities by observing daily operations.  Opportunities for reduction are quantified using a standard methodology and calculation. 20 Energy Kaizen Energy Kaizen
  21. 21. Aggregate Summary 2012 Energy Kaizens Savings Opportunities (GJ) Energy Usage Observed (GJ)  ~8% total energy reduction identified  ~8% GHG emission reduction identified  ~10% total utility spend reduction identified 2121 Energy Kaizen Results
  22. 22. 22 Technical Assistance By phone By email In person The Corporate Energy Team is available to help with questions, problems, issues, and ideas. SPAs also a good source for phone or email assistance.
  23. 23. 23 Standard Practices
  24. 24. 24 Standard Practices
  25. 25. 25 Standard Practices
  26. 26. Training – Face to Face 26 Classroom Hands On
  27. 27. Energy Assessment Tools in Use 27 Training
  28. 28. Tools - Alcoa Energy Efficiency Suitcase 28 HOBO U12 Data Logger + 600 AMP Split Core Current Transformer HOBO H22 Energy Logger – Multi Channel Multi Transducer Data Logger HOBO U12-014 Logger – 0 to 1800 degree thermocouple Testo 540 Light Meter Dickson Pressure Logger Kill-A-Watt 120VAC outlet energy meter Fluke 345 – Clamp Meter (Power Factor / Energy Logging) UE Ultrasonic Leak Detector Pelican 1510 Case
  29. 29. Webinars 29 Lighting Systems Metering Systems Compressed Air Reporting and Tracking
  30. 30. 30 Global Energy Summit Global & Regional Meetings
  31. 31. 31 Global phone conferences – monthly Regional conferences – Europe, Latin America, Refining, Canada, LAC Global & Regional Meetings Business unit conferences – BCS, APP, EPS, GRP
  32. 32. 32 Workshops Two-day workshop helps businesses and locations develop an energy reduction program. Topics covered include: Getting started Information sharing Performing an assessment Scheduling a Kaizen Needed actions for energy efficiency Next steps Each workshop individualized to the needs of the plant.
  33. 33. 33 Sharing Case Studies
  34. 34. 34 Sharing Case Studies
  35. 35. 35 Plant Energy Team & SPA  Energy SPA – energy expertise in technical and financial processes.  Energy Team comprised of personnel from key departments. The SPA and Energy Team:  Understand the goals (targets) for the business and the plant.  Communicate the goals and activities.  Help determine energy metrics.  Lead a diverse energy team.  Report progress to plant lead team.  Participate with regional and corporate teams.  Drive greater employee engagement.  Share best practices with other locations .  Engage with regional energy groups.
  36. 36. 36 Regional energy groups can be organizations such as local industries, state or provincial organizations, or regulatory action groups. Some examples:  ABRACE (Brazil)  U.S. Department of Energy  South East Energy Alliance (U.S.)  Industrial Energy Consumers of America Associations provide:  Best Practice sharing with other industries  Incentive information  A greater voice with suppliers and government Regional Energy Organizations
  37. 37. 37 External Corporations  Information sharing  Observing established programs  Reviewing Best Practices Recent association with Eastman let us observe how they successfully encouraged employees to participate in energy reduction program.
  38. 38. Benchmarking
  39. 39. DOE Partnership Brings Additional Energy Savings Access to technical expertise  DOE provides valuable support to Alcoa Energy Efficiency Group activities.  Plant energy assessments.  Energy management training.  Tools and analysis for reporting.  DOE labs. Results  DOE conducted 13 onsite energy assessments.  Identified $20 million in potential savings.  Connected DOE with Alcoa locations in Latin America to reduce global consumption. Goal Setting  Alcoa signed up for the Better Building Better Plants Challenge to improve energy efficiency 25% by 2020 across 30 plants in the U.S.  Achieved a 7.3% reduction to date. 39 Resource Agencies
  40. 40. Corporate Energy Team 40 Walt Brockway – Manager Global EE Adam Vucelich – Sr. Energy Engineer Mike Caufield – Energy Specialist Greg Harrell – Energy Consultant Boiler efficiency Steam system efficiency Combined heat and power Compressed air systems  Waste heat recovery  Heating systems Over 80 Alcoa energy assessments 500 assessments for various industries including DOW, Exxon-Mobil, ArcelorMittal • Strategic Energy management • Energy Assessment coordination • Electricity Demand Response • Regulation and compliance • Combined 32 years experience • electric utilities and energy management • Hydro Electric system management • Energy regulations and compliance • Plant maintenance and engineering  Energy Assessment coordination and opportunity evaluation  Process Heating systems  Compressed air systems  Electricity Demand Response  Combined thirty-five years experience with Alcoa and Reynolds  aluminum smelting, casting, melting and cable manufacturing  DOE energy efficiency software tools and analytical offerings. • Energy Assessment opportunity evaluation • Energy Kaizen facilitation • Electrical metering • Electrical distribution systems • Energy Management • Smelting substation power systems • Hydroelectric operations and maintenance • Metering installation and commissioning • NEC and NFPA industry practice
  41. 41. 41 Corporate Energy Team  Guides locations in establishing an Energy Efficiency Program.  Assists in the initial assessment.  Conducts the Energy Kaizen to uncover ways to save energy.  Provides technical assistance.  Helps locate local resources and associations.  Builds corporate and professional relationships.  Provides continuous guidance, assistance in problem solving, and information on new technologies.
  42. 42. 42 Deploy the ISO 50001 Energy Management Standard Practice. Utilize an Energy Kaizen. Consider an assessment. Getting Started Don’t forget, we are here to help. Contact the Corporate Energy Team for assistance, answers to questions, locating resources.
  43. 43. Questions This is not just about this year or next… …energy efficiency is our future. Energy Efficiency Program

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