1. Taming the Energy Monster Financing Energy Optimization Projectswith Guaranteed IRR Bakhtiar Hameed Wain CEO Avanceon May 25, 2010
2. 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!
3. 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
4. 30% global energy saving! >1 year of electricity from 20,000 coal-fired power plants >12GigatonesCO2e/year
5. 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
6. 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
7. …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
8. 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
9. 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
10. 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
11. 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
14. No continuity of behavior100% 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
16. 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
17. 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???
18. 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
19. Value Proposition – Risk Free Financial Proposal Avanceon guarantees Energy Savings; enables organizations to earmark reduction in expense budget for CAPEX
20. 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
21. 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
