The ISO 50001 and Potential Impacts on the Steel and Metals Industries-Energy & Utilities - Mike Crowley
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As presented at AIST 2014: ISO 50001 is a fast emerging standard for establishing and maintaining an Energy Management System. Adoption rates for ISO 50001 mirror that of ISO 14001 and companies in the metals and steel industries are among the early adopters.
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The ISO 50001 and Potential Impacts on the Steel and Metals Industries-Energy & Utilities - Mike Crowley
- 1. ISO 50001 Potential Impacts to the Metals and Steel Industries Mike Crowley Schneider Electric
- 2. Overview of ISO 50001 • First published in 2011, provides a framework for an Energy Management System (EnMS) • Similar in structure to ISO 14001, but Energy Specific • Developed using existing best practices and standards from 58 member countries
- 3. Scalability of ISO 50001 • Enterprise, Division, Site or Product Line • Companies define the scope and boundaries • Align with company priorities • Top management is responsible for defining
- 5. Management Participation • Top Management is RESPONSIBLE for: – Formation of team – Providing resources – Communicating – Establish policy and scope – Consider energy in business planning – Conduction reviews at regular intervals
- 6. Impacts to Procurement • Energy services, products and equipment that have an impact on energy. • Suppliers to be informed • Examples: EE motor ratings, Energy Star certification
- 7. Adoption Rates * 0 25,000 50,000 75,000 100,000 1 2 3 4 5 6 7 8 9 10 ISO standard adoption rate Number of certified companies from year of introduction ISO 14001 (1995) ISO 50001(2011) * 2014 totals extrapolated from Q1 growth Sources: http://www.iso.org/iso/survey10thcycle.pdf http://www.iso.org/iso/home/standards/certification/iso-survey.htm?certificate=ISO%209001&countrycode=AF
- 8. Global Participation US, 60 Canada, 11 Mexico, 7 Germany, 3357 Rest of World, 3665 Source: PEG EnMS ISO 50001 Certificates 4023-14
- 9. Estimated Resources • Integrating to existing management system lowers costs – Document control – Legal Requirements • Scope and boundary affects effort – Company, division, campus, facility or portion of facility scope
- 10. Example Implementation • Assumes single, medium size facility with existing ISO 14001 system – Gap Assessment -60 hours – Energy Review – 210 hours – EnMS Construction – 300 hours – Internal Audit – 140 hours – Certification Audit – 100 hours • Total 810 hours, can be reduced by using outside consultants
- 11. Best Practices – Measurement and Reporting •Integrated with production information, yields energy intensity metrics
- 12. To Certify or Not? • Two important questions to ask: – Will implementing help me achieve superior results in terms versus an internally managed program? – Will the certification help our business via external factors such as customer recognition or governmental incentives? • How sure are you that you will keep to your “Energy Diet”?
- 13. Case Study • Schneider Electric Switchgear Plant • ISO 50001 certification and Better Plants Challenge • Early corporate results had slowed • Improved commissioning process uncovered incorrect equipment design for process speed • Uncovered issues with utility meter accuracy
- 14. Conclusion • ISO 50001 provides framework for best energy management system design and practice • Adoption rates rival that of ISO 14001 • Steel and Metals Industries and End Users are heavily represented. • Seeking certification provides visibility to company commitment to energy efficiency and GHG reduction
Editor's Notes
- First published in 2011, provides a framework for an Energy Management System (EnMS). ISO 50001 is a specification that defines requirements for establishing, implementing, maintaining and improving energy management systems (EnMS). Similar in structure to ISO 14001, however, focuses strictly on Energy rather on the broader environmental topic. ISO 14001 is concerned with management of environmental systems and covers a wide scope of issues that impact the environment. The standard defines the environment as those things impacted by an organization including “air, water, land, natural resources, flora, fauna, humans and their interrelation”. Further the impact by an organization includes not only impacts by manufacturing, but also “activities, products or services that can impact the environment”. ISO 50001 is similar in structure to ISO 14001, with many sections covering the same topics such as planning, objectives, implementation, roles and training. However ISO 50001 is focused on the energy aspects within the boundary of the system. Therefore, the focus on the management system is strictly on energy. For example, it calls out minimum characteristics of measurement to include areas of significant energy use, defining relevant variables and evaluation of actual versus expected energy consumption. The standard also gives guidance on the scope and complexity of possible monitoring systems depending on the organizational needs. The need to define and review both energy measurement systems and energy performance is also spelled out. (There is a lot of overlap. Just have to make minor changes such as legal req., setting targets/obj. , lot’s of sites already have targets for energy if they have ISO14001, so they just need to add the rigourous monitoring and analysis to get to a deeper understanding. The benefit of ISO50001 is the energy planning and baselining, EnPI’s, energy review. They are there to help you track your energy….they are just looking at just raw energy consumption rather than EnPI’s that are actionable. A project was formed in 2008 with participating members from 58 ISO countries and led by members from the United States and Brazil. The standard that emerged in 2011 incorporated best practices from existing national and regional energy management standards 1.
- Can cover an entire enterprise, but typically covers a single site. Companies define the scope and boundariesScope of the program should align with the organizations needs and priorities, defined in the energy policy. Top management is responsible for defining the energy policy and scope and boundaries of the EnMS. (IF their customer is being required you can start smaller. When you get multiple sites…you can reduce your auditing costs. WE are working to get ISO9001, 14001, 50001 and OHSAS 18001 into one management systems so we can reduce our auditing cost for top 100 sites)
- Plan: The energy planning process should be consistent with the energy policy established by top management. Legal requirements must be reviewed to understand energy’s impact on compliance. Also, regulatory issues may affect the energy supply and price. The organization will need to conduct an energy review of factors that impact areas of significant energy use and establish baselines(Your obj. and targets really drive your EnPI’s. Good to include normalization for weather in case the improvements are above or below the targets, so next year might not be as good if you had favorable conditions). Do: Implement the energy management action plans(WE have been able to impact our process since implementing ISO5001. Looking at the actual process parameters, work with production and process to impact energy savings. Training for al levels of management and people involved in areas of significant energy use is call for in the standard. Check: Monitoring and measurement systems can be as basic as using utility metering for small organizations or systems that use extensive sub-metering and software analytics. The data should be consistent at all levels of the organization. (Identified error with utility metering, which was 2x high. Also helpful to quantify the savings to date). (Submetering helps to verify the savings for projects i.e. compressors.)Act:The control of records for identification, retrieval and retention is defined as part of the EnMS. Use of existing policies and procedures in place for either ISO 9001 or 14001 can reduce the amount of work required for this activity. (when tracking EnPI’s, look for results outside of targets, deviations…using metering data to investigate why performance was difference than expected. How activities in the facility have impacted performance neg or pos).
- Requires top management to be engaged and responsible for program successFormation of team, providing resourcesCommunicating throughout organizationEstablish policy and scope of the programConsider energy in business planningConduction reviews at regular intervalsThe standard requires the appointment of a management representative to lead activities of the energy management team, report to top management and promote awareness of the program. This person need not be an internal employee, but could be engaged from a third party such as an energy management company. Utilization of expert outside resources can provide the needed experience and speed implementation of the EnMS(WE had success prior to seeking certification…but to take it to the next level, ISO5001 will help due to the ownership and accountability, this is the real benefit in our experience in seeking cert.).
- Energy services, products and equipment that have an impact on areas of significant energy use must be considered in purchasing policy.Suppliers to be informed that energy impacts the purchasing decisionExamples: EE motor ratings, Energy Star certification(we modified our standard equipment certifications. Updated our T&C’s and EE is part of our vendor selection. Vendors are required to quantify potential savings. This information is included in the biz case evaluation and the proj. manager has the info as well.)
- The adoption rate for site certifications has risen dramatically since the first publication of the standard in 2011. Adoption rates were on pace with ISO 14001 two years after release and slightly ahead of the three year pace of ISO 140012
- Where the organization has an existing ISO 9001, ISO 14001, or OHSAS 18001 system in place, savings of nearly 30% are possible by integrating an EnMS into the existing management system. The savings are gained due to similar procedures such as document control and evaluation of legal requirements. Integration into the existing system is not always possible however, due to differences between different scopes and boundries or management between systems. For example a corporate level ISO 9001 certification and a site level ISO 50001 EnMS. (recommend matching the scopes and boundries, so you can have an integrated MS, and policies are integration, communication is easier to understand). The other major variable in implementation costs are the scope and boundary of the Energy Management System. The definition of what the EnMS is to include can vary from an entire enterprise, a division, campus, facility or part thereof. When the EnMS covers multiple facilities, economies of scale help reduce overall implementation and registration costs versus separate efforts. However, the larger the scope and boundary, the greater the risk of non-compliance jeopardizing the certification for the organization.
- The implementation costs vary case-by-case. Following is an illustration of expected labor requirements for implementing ISO 50001 at a single medium-sized industrial facility. Assumptions include the integration to an existing ISO 14001 management system and having at least one of the team members attend a training session on how to implement ISO 50001. The implementation is broken into 5 phases:Gap Assessment – 60 hours expected2. Energy Review – 210 hours expected3. EnMS Construction – 300 hours expected4. Internal Audit – 140 hours expected5. Certification Audit – 100 hours expectedThis yields 810 total hours for the implementation team. Additional time is required from all employees and the management team, in order to conduct training and perform a Management Review. These costs can be reduced by employing a professional with ISO 50001 experience, or knowledge of implementing OHSAS 18001 or ISO 140014.
- Measurement and monitoring systems can provide immediate feedback as to energy performance. When integrated with production information to report on energy intensity, such as MBtu/ton for sintering, process anomalies can be detected when measured against benchmarks. More sophisticated systems can also report on energy performance with different dimension such as energy intensity per plant, crew and shift comparisons as well as relative cost differences due to energy source and rate tariffs.
- ISO 50001 is not unique in its approachTwo important questions to askWill implementing and gaining certification for ISO 50001 help me achieve superior results in terms of energy efficiency and cost reduction versus an internally managed program?Will the certification help our business via external factors such as customer recognition or governmental incentives?How sure are you that you will keep to your “Energy Diet”? Give real world example of diet and compare to ISO50001 vs. self administered program.
- Schneider Electric’s first US ISO 50001 certified site is located in Smyrna, TN. The site is 250,000 ft2 with a $450,000 annual energy spend making medium voltage switchgear. This site was part of a pilot program with the US Department of Energy as a result of participating in the Better Buildings Better Plants Challenge. Schneider Electric has an existing energy program in North America that has reduced energy consumption by over 30% across 54 sites since 2004. However, the reduction has slowed over the last few years; consequently, due to low-cost and non-intrusive projects already being implemented.Smyrna experienced three major benefits from implementing ISO 50001; each resulting from a structured approach to energy management.The first major benefit was an improved commissioning process. Smyrna installed 22 new HVAC units with energy saving technologies installed such as variable frequency drives and economizers. The new units consumed more energy as a result of improper control never satisfying set-points and running the VFDs at 100%, which was identified in the Energy Review. The controlled method required was a rarely used feature on the units. Working closely with the manufacturer, it took several months to identify. Now, the facility has procedures in place to ensure energy performance of new equipment and processes by requiring proper commissioning of new equipment as part of the safety inspection.The second major benefit was also related to the commissioning process, but included process design. In 2010, the facility installed a new curing oven with an infrared pre-cure section. The new oven is much more “efficient” than the previous oven, however, consumed more natural gas. Through some of the rigorous steps of ISO 50001 implementation, facility personnel identified that the new curing oven was designed for product to run at 12 feet per minute, while the rest of the process can only handle 5 feet per minute. As a result, Smyrna was able to maintain product specifications for cure time without using the IR oven, which consumed 10% of total natural gas. Now, the improved commissioning process should ensure that this will not occur in the future, and Smyrna has added energy consumption as a factor in process changes. The third major benefit is improved monitoring and corrective actions for significant deviations. The energy model for Smyrna started to reflect increased natural gas consumption in August 2012. The significant deviation was input into the corrective action system with a root-cause determination. Initially, it appeared as though production changes were causing the poor model performance. However, evaluation of the natural gas sub-meter for the paint line showed the measured data did not match the utility bill. A resulting discussion with the utility showed that a new gas meter installed in August did not have the proper part installed and caused the discrepancy. The utility corrected the fifty thousand dollar discrepancy in billing using Smyrna’s metered data, which may not have been identified had the corrective action system not been in place4.WE found much equipment had not been commissioned properly.
- ISO 50001 provides a framework for organizations to manage energy. Implementation of the standard leverages proven methodologies and best practices of a worldwide base of energy management expertise. ISO 50001 adopters stand to benefit from reductions in energy costs and greenhouse gas emissions. The standard is gaining momentum and is on pace with ISO 14001 adoption rates, although adoption in North America is lagging the rest of the world, especially Europe, where governmental policies provide incentives for energy management programs. Multi-national companies gaining certification in Europe are likely to expand certification efforts to North America due to the benefits gained by implementing energy management systems. End users for the metals and steel industries are heavily represented in the industries gaining certification, especially early adopters in North America. Although not mandatory for successful implementation of an energy management system, ISO 50001 provides ongoing focus on energy management and is a visible indicator to customers and governments that a company is focused on improving energy performance and reducing greenhouse gas emissions.