2. White Paper:BigMoneyin EnergySavings,Author:ChrisMitchell,BSN,RN
White Paper: Big Money in Energy Savings:
Finding hidden money in energy savings initiatives
By Chris Mitchell, BSN, RN
Summary
Thispaperprovidesinformationand examples forbusinessledenergysavingsinitiatives.Italso
touchesonthe topicsof social responsibilitybycorporation executivesandmanagerstoinitiate
appropriate projectsthatwill eventuallyhelpthe bottomlineof the companyand,inbroaderterms,
stakeholders.
Igloo Corporation
In 2001 IglooCorporationlaunchedaninitiative toreduce energyexpendituresinone of the
manufacturingfacilitiesinnorthernTexas.Usingexcellentresearchmethodstheywere able toshow
impressivesavingsinenergyanddowntimeonone of theirextrusionprocesses.Thisinformationwas
publishedbyMidAmercanEnergy.Throughappropriate planningthiscompanywasable tosave energy
and moneywithrebatesfromthe electrical service provider,the governmentandlostproduction time
and laborto restartold technology.
The customer, IglooCorporation,contactedMidAmericanEnergyabout apilotprogram Igloo
initiatedwiththe goal toimprove energyefficiencyintheirplant (MidAmericanEnergy,2001).A large
extruderdrive ratedat1,500 horsepowerwasthe targetof theirresearch.The extruderwasrunoff a
clutchingsystemthatallowedthe screwof the extrudertograduallyrampup,butthe extrudermotor
wouldbe at full speedthe entire time. Thisprocesshasbeenknowntobe inefficientformanyyears,but
was the mostcost effectiveatthe time of installation.
3. White Paper:BigMoneyin EnergySavings,Author:ChrisMitchell,BSN,RN
NeitherIgloonorMidAmericanEnergymade referencetosocial responsibility,butrather
focusedonthe energysavingsandefficiencyimprovementstojustifythe project. The projectcostwas
approximately$240,000. The projectwascompletedwithplansforarebate fromMidAmericanfor
$7,500. Thisdoesnot soundlike agreat incentiveuntil youfactorinthe energysavingsfromthe project.
The projectyieldedanannual utilitysavings of $40,000 justfrom energyconsumptionreduction.The
powerfactorcorrectionin the facilitydrasticallyimproved,distortioninthe powerline,andprovideda
furthersavingsof $15,000 per annum. Returnoninvestmentwasarelativelyhigh at5 ½ years.This did
not take intoaccount the additional savingsinlaborhours,time the extruderwouldbe downduring
shutdownandrestartcycleswhichwere calculatedat240 hours eachin laborand lostproductiontime.
Civil and Marine GGBS Plant
Civil andMarine contactedControl Techniques,asdivisionof Emerson,to determinewhatthe
potential forsavingswouldbe byinstallinginvertersontwoof theirlarge fans.Again,there wasolder
technologyusedinthe processof dampeningthe speedof the airflow throughaparticulate separator.
Essentiallythe fansoperate atfull loadandthe dampenerclosestoasetpointto allow justthe right
amountof air throughthe baffles.Thisprocessisknownasdampeningandishighlyinefficient.Control
Techniquesestimatedthat areturnon investmentof 7 monthsonone fan and 9 monthson the other
fan.Through affinitylawmodelingControl Techniqueswasable toaccuratelydetermine the exact
savingstheywouldbe able toobtain. Initial testingrevealeda252 kWh of energybeingusedwiththe
dampeners.Afterremoval of the dampenersandinstallationof new invertersthe usage droppedto
106kWh. That isa remarkable savingsof 145kWhoverthe productioncycle (Control Techniques,2015).
The actual USD savingswascalculatedtobe about$1,100 inenergycostseveryweek!These savings
4. White Paper:BigMoneyin EnergySavings,Author:ChrisMitchell,BSN,RN
were notjustharvested forprofit;theywere reinvested backintothe companytofindmore waysto
improve energyefficiency inproduction perton of productproduced (Control Techniques,2015).
Neithercompanyindicatedthatitwasfocusedoncorporate sociallyresponsibleprograms,but
rather onthe bottomline of the company.The neteffectwasa vastimprovementof efficiencyaswell
as great brandingstoriesshouldtheybe usedin marketingtheirproducts.
Corporate Environmental Social Responsibility
Witha newgenerationfocusedonsustainable energyandenergyconservation,itisimportant
for corporationstobe mindful of theiractions. Ithasbeenrepeatedlyshownthe new generationwants
to feel asif theyare contributingandgivingbackbyrecyclingand effective use of technology.Inorder
to obtaintophuman resource talentitisvitallyimportantforcompaniestotake thisintoaccount
(Fallon,2013).
Savvy corporations thatcan initiate programsthatare cost effective,sociallyresponsible and
beneficial tobrandingimage willoutpace those thatare leftlookingatthe shorttermnumbers (Fallon,
2013). In the endcorporate executivesare beholdentothe bottomline resultsof the companiesthey
lead.Leadingisultimatelythe problemwithimplementingthese changes. Approximately40% of
corporation’sleadpeopleresponsibleforgreeninitiativesare the CEOand seniormanagement of the
companies(Murray,2011). Withall the powerto initiate these stepsheldclosetothe topmanagement
it isnot hard to determinewhythere issuchresistance toinitiategreenprojects. Whilecorporationare
unfeelingandnumbersorienteditisimportantforthe leaders totake intoaccountall factors that
influencethe future of theirorganizations.
Bringing It Together
5. White Paper:BigMoneyin EnergySavings,Author:ChrisMitchell,BSN,RN
IglooCorporationalongwith Civil andMarine hadthe foresighttoimplement changesthatwere
ultimatelygoodfortheirbottomline.Igloohasalonghistoryof beinga sociallyresponsible employerin
ethical laborpractices,soitonlymakessense theymayhave beenaheadof the curve in implementing
sociallyresponsible practicesinregardstothe environment. Civil andMarine produce aground
granulatedblastslag(GGBS) that usesthe mostenvironmentallyfriendlymaterials. Corporationssuchas
these thathave true leaders, listentowhatthe employeesare saying,andare lightyearsaheadof
companiesthatonlylookat financial statistics.The employeesare the customers, the shareholders,and
the people thatcare mostaboutthe successof a company.Brandinga successful companyismore than
makinga productpeople like,it alsoinvolvesmakingproductspeople are notashamedtopurchase,
produce,or be seenwith.
Bibliography
Control Techniques.(2015). Paybackin MonthsforTwo LargeFan Drives. London.
Fallon,N.(2013, June 24). Whatis CorporateSocialResponsibilty? RetrievedfromBusinessNewsDaily:
http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
MidAmericanEnergy.(2001). Energy Efficiency CaseStudy Industiral. Dalls:www.MidAmerican
Energy.com/ee.
Murray, S. (2011). Unlocking thebenefitsof energy efficiency:An executivedilemma. New York:The
Economist.
