2. Editorial
ENERGY EFFICIENCY AND ENERGY MANAGE-
MENT IN INDUSTRIAL COMPANIES
Many industrial companies are increasingly focusing on energy efficiency as a
way to be sustainable.
This Insight Report addresses this issue and explores a subject which is still
new ground for many companies.
When it comes to energy efficiency, much de-
pends on a company’s ability to identify new
From disposal to utilisa-
approaches. Saving energy is not that difficult if tion
plenty of energy is being wasted. This explains
the scepticism among some experts about com- Just like the waste disposal industry, many
panies purchasing "green" energy. Most indus- companies will also have to reinvent themselves
try representatives consider this to be the with a view to energy efficiency. Although the
wrong approach. They claim that it is much physical items to be disposed of have not
more important to stop wasting energy in order changed, they are now referred to as ‘secondary
to boost one's own energy efficiency. raw materials’ in a recycling industry. The dra-
matic change in this industry is a good example
of how the use of resources is developing in
Germany and the EU. The main objective is to
generate maximum value from the use of a
particular resource, be it a secondary raw mate-
rial or energy. Just as with physical waste re-
processing, the key question now is how energy
can be retained or re-used.
This question does not just extend to manufac-
turing plants, but also to utility companies,
where the first signs of significant energy saving
are being seen. Most power stations in Germany
and elsewhere operate cooling towers or cooling
basins. What people perceive as rising steam is
nothing but an enormous cloud of heat energy
that is simply blown out into the atmosphere.
Those who understand and accept this fact may
come up with the idea of converting their own
factory into a cooling tower in order to access
this vast quantity of energy. Paper mills, for
instance, are already adopting this method to
feed their energy-intensive processes. Although
this is a good energy supply concept, it is just
the beginning of the possible value cycle.
Another example from the waste disposal sector
It is not particularly difficult for many companies might serve to explain this approach in more
to increase their energy efficiency. This begins detail. Let us look at the paper industry, which
when companies realise that their plants dis- today is intrinsically linked to waste disposal and
charge energy, for example as heat, into the recycling. Since the introduction of recycled
environment. This is an issue that has been paper, the value chain of this resource has wit-
somewhat neglected up to now. We often treat nessed dramatic progress. Whilst the only dis-
energy in much the same way as we did domes- tinction made in the early days was between
tic and industrial waste just a few years ago, paper and recycled paper, companies today
considering it as nothing but a byproduct to be distinguish between around 15 types of recycled
disposed of. For business as well as environ- paper. Each of these varieties represents a spe-
mental reasons change is necessary and will cific grade of this raw material. The original
happen. resource - wood fibre – now has a spiral-shaped
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
3. product life cycle. In this cycle, the had major repercussions on com-
spiral turns 15 times before the panies' efforts to boost efficien-
original wood fibre can no long- cy. Now that energy prices are
er be used. The end of the
picking up again, the energy
spiral is marked by ‘thermal
utilisation’ – burning - when efficiency issue is once again
energy is recovered from entering centre stage for busi-
the residual fibre. Com- ness leaders.
pared to this, the use of a
power plant’s residual energy One can generally identify sev-
in the example mentioned eral elements that can be used to
above represents just two cy- boost corporate energy efficien-
cles in a value spiral – the ener-
cy. Besides almost trivial things,
gy being used once at the power
station and ‘recycled’ once when the paper mill such as managing the lighting
uses its residual steam as an energy source. or heating of business premises, ener-
However, here are potentially a much larger gy efficiency extends to the production process
number of re-uses conceivable. as well as the use of residual energy (energy
recovery). Companies active in this field have
Economic efficiency and already adopted a very proactive view of these
sustainability elements. Companies will now also find it
worthwhile to consider the engineering of their
Some companies have taken to heart not only own plants, their production processes and even
the economic benefits of energy efficiency, but their own products’ construction in light of the
also the role of sustainability. Environmental energy efficiency issue.
responsibility and business reputation have an
important role to play in this area. This is why Many energy efficiency measures do not even
companies are at times exploring projects where require a budget to be implemented and pay off
the return on investment takes five years or from the very first day. The only questions to be
more to materialise. However, energy cost re- answered are: "To what extent are companies
ductions remain the driving factor. Not surpris- willing to give priority to energy efficiency?",
ingly, there has been a strong correlation be- and "What approaches will they adopt?"
tween energy efficiency and the global econom-
ic crisis in recent years. Slumping energy prices
CONTENTS
Energy efficiency and energy management in industrial companies ............................................. 2
Seven steps to improving energy management at companies ...................................................... 4
Energy efficiency regulation tightens ......................................................................................... 5
16001 – and what comes next? ................................................................................................ 6
Internal and external influences in coming years - act vs react .................................................... 7
Energy efficiency analysis in practice ......................................................................................... 9
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
4. Parameters of energy efficiency
Seven steps to improving energy management at
companies
The discussion about the optimum energy use and the projects that have been
implemented so far are so different that they show several approaches are
available when it comes to boosting energy efficiency. The following discussion
provides an overview of the individual steps to energy efficiency and optimisa-
tion.
Energy efficiency often starts with a company's of measures. The steps towards energy
executive management. Work on energy efficiency are as follows:
efficiency, however, often starts at middle
management. Companies usually appoint an I. Identify waste: Where is power used un-
energy efficiency officer who often lacks necessarily?
detailed knowledge of the subject. The typical
II. Avoid a throw-away mentality: How can
residual energy be put to good use?
III. Load management: How can the compa-
ny or its production processes realistically be
organised to reduce peaks in energy demand?
IV. Production efficiency: How can plants
and production lines be operated in the most
energy efficient manner?
V. Machinery efficiency: Which machinery is
the most energy efficient available?
VI. Process efficiency: Which production
method minimises energy consumption in mak-
ing the product?
VII. Product efficiency: How can I design my
product in an energy-efficient manner?
Each of these steps can be considered and ap-
plied individually. However, in practice most
companies initially consider energy recovery and
approach is to take a simple look at energy
preventing energy waste before other steps are
efficiency measures available to a company. On
taken.
the basis of the measures already implemented
by active companies, seven steps can be
identified which serve as the basis for a range
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
5. Legal framework
Energy efficiency regulation tightens
Besides rising energy prices, legal requirements and regulatory mechanisms
can also drive energy efficiency measures. There are several plans to regulate
energy use on a German and EU level.
„Political, social and environmental influences the conditions for payment of the incentive in
force you to address the issue of energy man- the US was the purchase of a low-consumption
agement." Dr. Jörg Meyer (Head of the Energy car model. This also offered an enormous
& Climate Protection Unit, Siemens AG) competitive advantage for companies which had
embarked on efficient models at an early stage.
This statement suggests that, in addition to This shows that energy management can be
social influences and environmental aspects, considered as a competitive advantage.
political conditions will also become increasingly
demanding. Apart from DIN EN 16001 and ISO "Energy management saves time so that
50001 standards (the subject matter of a companies are able to act rather than merely
separate article in this Insight Report), the first react," notes Dr. Jörg Meyer.
far-reaching interventions have already been
made in one of industry’s sovereign areas: It seldom makes sense to lag behind official
Dr. Jörg Meyer, Head of the Energy & Climate Protection Unit, Siemens AG
product design. A widely known example is the rules. The current reluctance to implement the
gradual implementation of the ban on energy- EU's energy goals suggests that regulations will
inefficient light bulbs. With this regulatory become even more restrictive. Therefore an
intervention the issue of product efficiency, long active energy strategy can only be
neglected by many companies, is increasingly advantageous.
significant.
Pressure on other industries is also growing.
The automotive industry has already committed
itself to greater transparency in its energy
consumption. Pressure from the consumer end
has also increased significantly in recent years.
This step seems to be long overdue considering
that an energy consumption limit has been in
use for several years in the electronics industry.
In the automotive industry’s case it was in fact
the US which pioneered regulation, where the
"cash for clunkers programme" proved to be a
trailblazing concept. Unlike in Germany, one of
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
6. Legal framework
16001 – and what comes next?
No - this is not an outlook to the year 16001. Instead, it refers to the imple-
mentation of the DIN EN 16001 standard for energy-intensive companies. It
should not be long before this standard is implemented because it is currently
triggering many questions for businesses. One particularly important question
concerns the features of an energy management system that is certified ac-
cording to DIN EN 16001.
"16001 merely sets the system certified. It can be
basic parameters. It is left achieved either through a
to the companies them- functioning environmental
selves to decide how to management system that is
implement these parame- certified according to ISO
ters. A car maker will ap- 14001 or through an eco-
proach this issue differently management and audit
from, say, a fan manufac- scheme (EMAS). The third
turer." Sylvia Wahren option is the provision of proof
(Fraunhofer Institute for in another suitable form. This
Manufacturing Engineering is contingent upon appropriate
and Automation, TEEM) data capture as well as evalua-
tion of the savings potential
This statement summarises according to ecological and
the underlying idea of this economic criteria. Since 1 July
standard. 2009 marked the 2009, the DIN EN 16001
beginning for energy- standard has been offering
intensive companies. Since companies the ability to certify
then, they have been able their own environmental man-
to benefit from a compen- agement systems. The stand-
sation rule via the Renewa- ard sets out the framework for
ble Energies Act. The legis- such a system. Furthermore,
lator has made this benefit DIN EN 16001 is also a good
contingent upon the intro- basis for companies when it
duction of an EnMS (energy Sylvia Wahren, Fraunhofer Institute for Manu- comes to obtaining future
management system). facturing Engineering and Automation, TEEM certification according to the
Companies consider this international requirements of
aspect to be the most diffi- ISO 50001.
cult issue because such a
system must be certified. Although regulators have
Readers interested in more granted relatively ample lee-
detailed information in this respect are well way, there is still a high degree of uncertainty
advised to take a first look at the guide for among companies who do not yet know what
companies and organisations published by the features an energy management system must
German Federal Environmental Agency (DIN EN have in order to qualify for additional DIN EN
16001: "Energiemanagementsysteme in der 16001 certification as an environmental man-
Praxis"; source: www.umweltbundesamt.de). agement system. In addition, there are only a
Many questions are answered there. few systems available that can be implemented
"out of the box" and already include certifica-
The Renewable Energies Act offers three differ- tion.
ent ways of having an energy management
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
7. Influence parameter
Internal and external influences in coming years
- act vs react
Corporate energy efficiency and energy management are subject to a host of
influences. Besides energy costs as the most important influence, further ex-
ternal and internal forces influence the development of this issue.
Experts agree on one point: There will be strong impact on the development of corporate energy
demand for energy efficiency measures in the efficiency. Other influences include an increas-
years to come. ing scarcity of raw materials, new production
methods, more efficient processes and the cost
Many companies already regard energy of replacements.
management as a competitive advantage. This
not only applies to competition between the All companies are equally exposed to these
individual players on the market; energy factors, no matter whether or not a company
has an energy management system. The
question is not so much
whether a company will
address the energy issue but
when this will happen. A
company’s strategy might be
active or reactive to
circumstance; either strategy can
be right or wrong. Simply put, an
active strategy is, for instance,
chiefly suitable for energy-
intensive companies and not
for companies where energy
is a relatively minor cost
item. The latter can
afford to merely respond
to regulatory intervention
and hence to limit their
action to what is
absolutely
necessary in this
respect.
The pressure to-
wards efficiency
puts an additional
burden on small
energy consumers
whilst energy-intensive
efficiency also has a companies can use it as a new way to play an
role to play when it comes to competition active role in the market. The pioneers will inev-
between geographic areas. Energy efficiency itably force the field to follow suit.
can also prevent sites from losing their
competitiveness to competitors in low-wage
countries. The competition factor consequently
influences a company's energy management
strategy not just through internal,
entrepreneurial interests, but also through
external influences.
It goes without saying that the legal conditions
mentioned earlier also constitute an important
external factor. Just like energy prices and com-
petition, the legal framework also has a positive
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
8. On Demand
Technical papers available on demand
More detailed technical papers on corporate energy efficiency and energy management
are now available on demand.
Selected technical papers presented by leading companies at our technical conference on "In-
dustrial Energy Efficiency and Energy Management", 27 to 28 October 2010, were rec-
orded live.
Did your schedule prevent you from attending our event, or do you want to revisit selected
talks? With our "On-demand special", we give you the opportunity.
Make use of this opportunity, and you will also receive the digital conference material (on CD) in
addition to your personal access to the recorded talks.
Under the following link www.UnityLivestream.com/TACookDemo you can examine the record-
ing quality and view short clips from some papers.
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
9. Energy efficiency analysis
Energy efficiency analysis in practice
Before implementing an energy management system, a company should first
perform an efficiency analysis. WKW Automotive and Amcor Flexibles Singen
are good examples of successful implementation projects.
WKW Automotive (aluminium processing) and Furthermore, an efficiency analysis can also
Amcor Flexibles Singen (manufacturer of help to identify incorrect energy bills.
primary packaging) are demonstrating how an
efficiency analysis can be successfully carried
out. In WKW's case, a successful
implementation enabled a return on investment
for the entire project in
eight months. Careful
performance of an
analysis can be the
foundation for a quick
return on investment.
Different approaches can
be taken for an analysis.
Many companies, for
instance, rely on their
own, company-specific
solutions. Other
companies, such as
Amcor Flexibles Singen,
rely on standard
methods, such as Six
Ulrich Leutgeb, WKW Automotive
Sigma in order to analyse
their energy demand. A
sound database is vital in
either case. Companies
first need to identify their
energy consumption from different sources and How can an analysis cause
integrate these into an energy data
management system. Every significant energy
changes in load distribu-
load should be fitted with a dedicated metering tion?
unit; measurements at fifteen minute intervals
tend to work well for tracking load curves. Many WKW learnt from its efficiency analysis that the
companies need to invest in an IT infrastructure energy consumption of a plant or line is
composed of meters and data capture points. dependent not just upon the load (i.e., the plant
This may well mean a five-digit investment. But or line), but also upon the product that is
such an investment can pay off even if no currently being manufactured. WKW Automotive
energy is saved at all. quotes two practical examples:
In the case of WKW, for instance, an analysis
enabled a better distribution of the company's
Curing ovens
energy load curve so that peak load demand
could be reduced. If a company manages to "Certain products need more energy than others
reduce its peak load by one MW through in the oven. Once we understood this,
changing its load distribution pattern, this production of energy-intensive products can be
generates savings of around €7,000 per month shifted to the night shift when energy is cheaper
without a reduction in energy consumption. This and the load curve low. However, the human
peak load reduction also generates a certain factor is important here. It would be no use if all
measure of sustainability. The price of energy in the ovens entered the heating-up phase
Germany could be significantly reduced if simultaneously. Needless to say, they have to
companies managed to handle their peak loads start in succession” Ulrich Leutgeb (WKW
better, as utilities’ activities to balance peak Automotive)
loads are a particularly significant cost factor.
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
10. Extrusion presses delivering to customers is what matters.
The onus does not have to be left entirely
"Certain alloys require more power in
the press. These alloys were
previously often produced during the
day. Without an energy management
system, this consumption would not
have been visible” Ulrich Leutgeb
(WKW Automotive)
These two examples show to what
extent an efficiency analysis can
affect operational structures and the
possibilities which this opens up for
companies. With such an analysis,
WKW Automotive managed to
optimise its own production without
changing the product or delivery
times. At Amcor Flexibles Singen, an
analysis formed the basis for Peter Ritter, Amcor Flexibles Singen
redesigning and optimising the
factory's entire lighting system.
to production. As soon as consumption is
The benefits at a glance transparent, they will develop their own
ideas and identify their savings potential."
Apart from the above-mentioned benefits of an Ulrich Leutgeb (WKW Automotive)
analysis, further advantages include: "You do not always need direct KPIs for Six
Sigma. You may also use somewhat less
The introduction of the energy exact KPIs as long as there is enough
management system leads to a clearly potential because you can achieve a lot in
reduced load curve. The peak load can be this way.” Peter Ritter (Amcor Flexibles
reduced by more than 10%. Singen)
The measures described enable a significant “Quick wins are possible even without Six
reduction in the price per kWh. Sigma.” Peter Ritter (Amcor Flexibles
The results generated can also be used Singen)
when it comes to investing in new assets.
Demonstrable and transparent reductions in For further practical examples, please refer to
overall energy consumption can be the Xing discussion forum on "Efficient Energy
achieved in certain areas. Management at Companies and
Administrations".
Expert advice
Practitioners offer several tips and suggestions
for implementing a corporate energy analysis.
Some of these are shown below:
“You need several people who really
support and promote the whole thing!”
Ulrich Leutgeb (WKW Automotive)
"It's no use telling production what they
have to achieve. The only function of
management accounting is to create and
communicate transparency. Production
itself must decide what makes sense and
what doesn't. At the end of the day,
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
11. T.A. Cook Research & Studies
Beside the Insight Report T.A. Cook Research & Studies offers studies in the area of Asset
Performance Management.
Current studies:
Technical Services for Turnarounds in Petrochemical
Plants in Germany, Austria & Switzerland
(540 pages, 4400€)
How companies use RFID in maintenance
(190 Pages, 1500€)
Offshore Wind Farm Operations &
Maintenance (177 Pages, 2900€)
Technical services for Turnarounds
in petrochemical plants Western Europe (5900€)
TAR Scheduling | Scheduling Practices for Turnarounds
(1700€)
Exclusive studies and surveys as the basis for your decisions
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to meet your company's particular needs. Our team will be glad to put together a non-binding quotation for you
based on a pre-defined scope.
T.A. Cook Research & Studies
Leipziger Platz 2 | 10117 Berlin |
Phone +49 (0)30 88 43 07-0 | Fax +49 (0)30 88 43 07-30
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The Research & Studies division conducts detailed market and company analyses in the area of Asset
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base of specialised knowledge, which can be applied to each study as needed.
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T.A. Cook Consultants Insight Report 02 – 12/2010 | Energy efficiency and energy management in industrial companies
12. Author: Mateus Siwek
Mateus Siwek, Studies Project Manager at T.A. Contact
Cook & Partner Consultants GmbH, is responsible E-Mail: m.siwek@tacook.com
for the preparation of market studies and anal- Phone: +49 (0)30 88 43 07-0
yses in the field of asset performance manage-
ment. Before that, he worked in the utility unit of
a market research company and has co-authored
several studies.
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T.A. Cook Consultants | Leipziger Platz 2 | 10117 Berlin | Tel.: (030) 88 43 07-0 | Mail: service@tacook.com
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