The Business Challenges of the future Low Carbon Economy - Niall Brady

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This is Niall Brady\'s presentation at the it@cork Green IT - Reduce CO2, Raise Profits Conference on November 26 2008 in Cork

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  • The Business Challenges of the future Low Carbon Economy - Niall Brady

    1. 1. Niall Brady IBM WW Technical Development Manager Green Sigma™ The Business Challenges of the Future Low Carbon Economy
    2. 2. Opening Position “ The richest nations in the world use great quantities of energy and do so with stunning sophistication and startling obliviousness ………...the vast majority of Americans and Europeans are no more aware of using energy than they are of breathing air” Source : “The End of Oil” Paul Roberts 2005
    3. 3. Standard of Living Assessment Sub Saharan Africa India Standard of Living Survival China Eastern Europe emerging economies Ireland Western Europe America 1 st World economies 3rd world economies Areas of SE Asia/South America Comfortable
    4. 4. Global Energy Use Breakdown Source : http://commons.wikimedia.org/wiki/Image:Energy_consumption_versus_GDP.png Frank van Mierlo
    5. 5. Source : World Resources Institute's CAIT 4.0 database Global Carbon Footprints
    6. 6. Source : http://www.waterfootprint.org/?page=files/WaterFootprints Global Water Footprints
    7. 7. * The amount of land you would need to support your lifestyle is called your Ecological Footprint. The ecological footprint is one way of measuring the impact a person has on the environment. Global Ecological Footprints*
    8. 8. How we got here : Energy – Wealth Development Cycle Wealth Generation Increased Purchasing Power Increased Demand Goods & Services Increased Business Activity
    9. 9. Energy – Wealth Development Cycle Results All underpinned by the availability of cheap energy Bigger Homes : Heat & Light = Rising Wealth Energy Budget + Bigger Applicances :TV’s,Fridges Energy Budget Bigger/Additional Cars + Energy Budget + Frequent & FarReaching Holidays Energy Budget + Changed Eating Habits Energy Budget
    10. 10. The Future : WW Energy Forecasts Source : International Energy Agency’s World Energy Outlook Report 2007 <ul><li>The International Energy Agency forecasts that by 2030: </li></ul><ul><ul><li>fossil fuels will remain the dominant source of energy worldwide, meeting 83% of the increase in energy demand; </li></ul></ul><ul><ul><li>emissions from power generation will account for 44% of global energy-related emissions by 2030 , as demand for electricity rises; </li></ul></ul><ul><ul><li>coal will provide the largest incremental source of power generation , with the majority of this increase likely to be in China (55%); </li></ul></ul><ul><ul><li>over 70% of the increase in global primary energy demand will come from developing countries , reflecting rapid economic and population growth; </li></ul></ul>
    11. 11. Today’s Energy / Environmental Dilemma … .while maintaining/developing our standard of living ! Today’s Dilemma Climate Change It is clear and accepted from the growing body of scientific evidence that our continued use fossil fuels will lead to significant irreversible climate change impacts on our planet Rising Energy Costs Rising costs of energy, now a Boardroom Level Issue Energy Supply & Security Arrival of Peak Oil – security of energy supply now brought into question – reducing resource – increased demand emerging economies Impending Regulation To reduce emissions of greenhouse gases such as the EU Emissions Trading Scheme, Climate Change Levy, and Building Regulations
    12. 12. Energy Environmental Solution There is no silver bullet solution to our dilemma !! Source : Bill McKribben National Geographic October 2007 “The New Carbon Math” referencing Princeton researchers Robert Socolow and Stephen Pacala describing 15 “stabilization wedges” with each carbon-cutting wedge would reducing emissions by a billion tonnes of CO 2 a year by 2057. “ The 15 Stabilisation Wedges”
    13. 13. The 15 Wedges : Carbon Capture and Storage <ul><li>Introduce systems to capture CO2and store it underground at 800 large coal-fired plants or 1,600 natural-gas-fired plants. </li></ul><ul><li>Use capture systems at coal derived hydrogen plants producing fuel for a billion cars. </li></ul><ul><li>Use capture systems in coal derived synthetic fuel plants producing 30 million barrels a day. </li></ul>The 15 Wedges : Low Carbon Fuels <ul><li>Replace 1,400 large coal-fired power plants with natural-gas-fired plants. </li></ul><ul><li>Displace coal by increasing production of nuclear power </li></ul>
    14. 14. The 15 Wedges : Renewables and Biostorage <ul><li>Increase wind-generated power to 25 times current capacity. </li></ul><ul><li>Increase solar power to 700 times current capacity. </li></ul><ul><li>Increase wind power to 50 times current capacity to make hydrogen for fuel-cell cars. </li></ul><ul><li>Increase ethanol biofuel production to 50 times current capacity. About one-sixth of the world’s cropland would be needed. </li></ul><ul><li>Stop all deforestation. </li></ul><ul><li>Expand conservation tillage to all cropland (normal plowing releases carbon by speeding decomposition of organic matter). </li></ul>
    15. 15. The 15 Wedges : Energy And Conservation <ul><li>Improve fuel economy of the two billion cars expected on the road by 2057 to 60 mpg from 30 mpg. </li></ul><ul><li>Reduce miles traveled annually per car from 10,000 to 5,000. </li></ul><ul><li>Improve coal-fired power plant efficiency to 60 percent from 40percent </li></ul><ul><li>Increase efficiency in heating,cooling, lighting, and appliances by 25 percent. </li></ul>
    16. 16. IBM’s Low Carbon Response : Big Green Innovations Initiative <ul><ul><li>Carbon Management </li></ul></ul><ul><ul><ul><li>Green Sigma™ </li></ul></ul></ul><ul><ul><ul><li>Green Data Centre Services </li></ul></ul></ul><ul><ul><ul><li>Green Hardware </li></ul></ul></ul><ul><ul><li>Alternative Energy </li></ul></ul><ul><ul><ul><li>PV Technology </li></ul></ul></ul><ul><ul><li>Advanced Water Management </li></ul></ul><ul><ul><ul><li>Water network management </li></ul></ul></ul><ul><ul><ul><li>Sensors and systems integration </li></ul></ul></ul><ul><ul><ul><li>Filtration technologies </li></ul></ul></ul><ul><ul><li>Computational Modeling </li></ul></ul><ul><ul><ul><li>Deep Thunder Weather Forecasting </li></ul></ul></ul><ul><ul><ul><li>Carbon Logistics Modelling </li></ul></ul></ul>
    17. 17. IBM’s IT Carbon Management Portfolio Green Sigma™ Process Optimisation Business Energy Profiling Datacentre Energy Profiling Major kWhr and annual tCO 2 e savings Hardware “Design for the Environment” Energy Management Services Green Datacentre Design Services
    18. 18. Datacentre Services : Power & Cooling Optimisation
    19. 19. Datacentre Service : Mobile Measurement Technology 3 2 1 Measure Analyze Capture <ul><li>Capture high resolution temperature and flow data using unique IBM sensor array </li></ul><ul><li>Model data center and use optimization algorithms to identify improvement targets </li></ul><ul><li>Thermodynamic Energy Savings </li></ul><ul><li>Transport Energy Savings </li></ul><ul><li>Deferred Investment DC Sq. Footage </li></ul><ul><li>Significant energy savings and/or delayed capital investment </li></ul>
    20. 20. Journey to the Green Data Centre
    21. 21. Green Sigma™: Lean Six Sigma Methods Used In Concert To Achieve Maximum Results Traditional Lean Methodologies <ul><li>Increase efficiency </li></ul><ul><li>Simplify work flows </li></ul><ul><li>Focus on high-value steps </li></ul><ul><li>Waste Reduction </li></ul><ul><li>A Lean enterprise is one that delivers value to its stakeholders with little or no wasteful consumption of resources. </li></ul>Six Sigma Methodologies <ul><li>Increase consistency </li></ul><ul><li>Reduce variation </li></ul><ul><li>Eliminate defects </li></ul><ul><li>In a Six Sigma enterprise, everyone is focused on identifying and eliminating defects. </li></ul>Customer-driven Customer-driven Voice of the Environment Voice of the Business Product or Service Outputs
    22. 22. Green Sigma ™ Core Component Toolkit 1.Metering & Monitoring Green Sigma TM 3. Applied Statistical Techniques 2.Mgmt Systems Carbon Console Integrated Carbon Offering 1.Metering & Monitoring (Data Capture) <ul><li>WHAT (defining key process indicators kpi’s) and HOW </li></ul><ul><li>“ if you can measure it you can manage it” </li></ul>2. Mgmt Systems Carbon Console (Data Management) <ul><li>IBM’s Green Sigma™ Console based on Portal Technology </li></ul><ul><li>Active management of Green Focus Area with Statistical </li></ul><ul><li>Process Control engine </li></ul>3. Applied Statistical Techniques (Data Analysis) <ul><li>Based on IBM’s extensive Lean Sigma Consultancy </li></ul><ul><li>experience & expertise </li></ul><ul><li>Specialist Developed Statistical Analysis & Control </li></ul>© Copyright IBM Corporation 2008
    23. 23. Step 3 : Management System Green Sigma™ offers automated metering feeds to an active management dashboard using a Statistical Process Control engine © Copyright IBM Corporation 2008
    24. 24. IBM Green Sigma™ Engagement Lessons Learned <ul><li>The need for a true picture of energy position is becoming a business priority - specifically Data Centres “SUV’s of the Business World” </li></ul><ul><li>The gap between business’ current energy usage understanding and the preferred position is much wider than believed – do not underestimate the work and timelines involved </li></ul><ul><li>The value of a targeted and effective central management system is crucial (realtime ) </li></ul><ul><li>In depth statistical analysis including use of SPC is effort well spent – significant impacts on bottomline (15%-20%) </li></ul>
    25. 25. Summary : Business Challenges of Low Carbon Economy <ul><li>Key company priorities to operate in a future low Carbon Economy </li></ul><ul><ul><li>There will be a need to modify existing business models to include green and carbon emission reduction at its core - in the low carbon future, companies will have to be green to grow </li></ul></ul><ul><ul><li>Redouble their focus to improving energy efficiency , particularly in the areas of buildings & transportation </li></ul></ul><ul><ul><li>Companies need to be able to measure their carbon footprint , and develop effective reporting systems and procedures that set the benchmark for reporting carbon emissions performance in the future </li></ul></ul>Source : Confederation of British Industry Climate Change commissioned a report on how businesses need to adapt to a low carbon economy - adoption of the UK Climate Change Bill published Nov 2007
    26. 26. Closing Position US President Elect Obama talked about “the need for NASA Apollo or Manhattan type project” to build a new alternative energy economy, to manage and take control of the our energy and carbon future. However there is an argument for the opposite of inward focused effort here, more that we take what we know and spread it to every corner of the world – continuing the NASA analogy “it’s tasking ourselves with putting everyone on the moon*” As a Species, historically we don’t have a great track record in pulling together for the common good !! Replacing our “startling obliviousness” with “informed insight” will lead us to effective energy conservation as our starting point – as business leaders the onus is on us to take the lead ! *Source : Bill McKribben National Geographic October 2007 “The New Carbon Math”
    27. 27. Questions ?

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