ISO 50001: Future of Energy Management
“ISO 50001: Future of Energy Management” Bill Meffert, Group Manager Energy & Sustainability Services Georgia Manufacturing Extension Partnership
Sustainable Growth and Energy
“No part of this challenge (sustainable development) is more complex or more demanding than its energy dimension. This is so in part because energy supply is tightly intertwined with national and international security and with many of the most damaging and dangerous environmental problems--from indoor air quality to global climate change--as well as with the capacity to meet basic human needs and fuel economic growth.” John P. Holdren, Science, 9 February, 2007 Teresa and John Heinz Professor of Environmental Policy at Harvard, and the director of the Program on Science, Technology, and Public Policy in Harvard's Kennedy School of Government.
World Industrial Energy Use
2004 World Energy Use: 447 quads Industry accounts for 50% of world energy use Commercial 12% Residential 18% Transportation 20%
Industry: 223 quads United States, 15% (34 quads) OECD Europe, 15% (34 quads)
Industrial 50% (223 quads)
China, 20% (44 quads)
Russia, 9% (21 quads) Japan, 5% (11 quads) Rest of World, 35% (80 quads)
15% of industrial energy is consumed in the United States
Source: EIA/International Energy Outlook 2007
Industry: Key to National Energy Picture Industry is the largest energy using sector • 37% of U.S. natural gas demand
2004 Energy Use* 100.3 Quads
Transportation 28%
Industry 33%
Chemicals
0.9
Aluminum
7.3
Petroleum Refining
0.7
Commercial • 30% of U.S. 18% greenhouse gas emissions
• Uses more energy than any one of the other G8 nations
7.8
3.3
*Includes electricity losses
Forest Products
1.4
Plastic & Rubber Iron & Steel Food Processing Non-Metallic Minerals
4.1
Non-Mfg
3.8
Other Mfg.
0.7
Residential 21%
Fabricated Metals
1.9 1.6
Japan Total Energy Consumption: 22.4 Quads
• 29% of U.S. electric demand
(Quadrillion Btu)
Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS
Cost of New Electricity Resources 9
Levelized Cost of Electricity (cents/kWh)
8
7
6
5
4
3
2
1
0 Energy Efficiency
Biomass
Pulverized Coal
w/o carbon
Nat. Gas Combined Cycle
Coal IGCC
Wind
Nuclear
w/ $20/ton carbon Source: ACEEE 2008, EPRI 2006 & UCS 2008
Energy productivity in the U.S. is outperformed by many countries
Georgia: 10,121 / 13,471*
Source: Council on Competitiveness. 2007. Competitiveness Index: Where America Stands. Figure 4.32, p. 103. *EIA. 2007. Table 7, eia.doe.gov/emeu/states/sep_use/total/use.tot.ga.html (1990-not 1986 for GA)
Why Isn’t Industry More Energy Efficient? The business of industry is not energy efficiency Facility engineers typically do not become CEO or CFOs Budgets are separate for equipment purchases and operating costs Data on energy use of systems is very limited Difficult to assess performance or evaluate performance improvements Opportunities to become more energy
efficient are overlooked
What are Industry’s Priorities? Current 1. Stay profitable 2. Operate a safe workplace 3. Be compliant with environmental regulations 4. Meet legal and social responsibilities 5. Monitor supply chain for potential liability Emerging 6. Manage GHG emissions, carbon footprint
8
Industry and Energy Management ■ Most energy efficiency in industry is achieved through changes in how energy is managed, rather than through installation of new technologies; ■ Actively managing energy requires an organizational change in culture. ■ Companies that establish an energy management plan gain a number of benefits: – – – – –
Develop a baseline of energy use Actively managing energy use and reduce costs Reduce emissions without negative effect on operations Continue to improve energy use/product output over time Document savings for internal and external use (e.g. emission credits)
ISO Project Committee 242 ISO Secretary-General Alan Bryden:
"This first meeting of PC 242 marks the launch of a new global approach to systematically address energy performance in organizations – pragmatically addressing energy efficiency and related climate change impacts. It is fully in line with and supportive of the global mobilization on these major challenges, and with the IEA-ISO position paper on the contribution of International Standards."
Why an Energy Management Standard? • An energy management standard provides a method for integrating energy efficiency into existing industrial management systems for continual improvement; • All existing and planned energy management standards are compatible with ISO 9000/14000;1 • Companies who adopt an energy management standard are able to reduce energy use and improve operations, even if they are already complying with ISO 14001. • Also applicable to commercial, institutional, and transportation sectors 1 International Organization for Standardization (ISO)
11
U.S. Council for Energy Efficient Manufacturing Collaboration of industry, government, and non-profit organizations Seek to improve the energy intensity of U.S. manufacturing through a series of initiatives. Guide development of the Superior Energy Performance program
12
Superior Energy Performance Program Strategy • Foster an organizational culture of continuous improvement in energy efficiency in U.S. manufacturing facilities • Develop a transparent system to validate energy intensity improvements and management practices
• Create a verified record of energy source fuel savings and carbon reductions with potential value in national and international markets
13
Plant Certification
Energy & Sustainability Services Enterprise Innovation Institute Georgia Institute of Technology innovate.gatech.edu/energy Innovate.gatech.edu/environment
Sustainable Growth and Energy
“No part of this challenge (sustainable development) is more complex or more demanding than its energy dimension. This is so in part because energy supply is tightly intertwined with national and international security and with many of the most damaging and dangerous environmental problems--from indoor air quality to global climate change--as well as with the capacity to meet basic human needs and fuel economic growth.” John P. Holdren, Science, 9 February, 2007 Teresa and John Heinz Professor of Environmental Policy at Harvard, and the director of the Program on Science, Technology, and Public Policy in Harvard's Kennedy School of Government.
World Industrial Energy Use
2004 World Energy Use: 447 quads Industry accounts for 50% of world energy use Commercial 12% Residential 18% Transportation 20%
Industry: 223 quads United States, 15% (34 quads) OECD Europe, 15% (34 quads)
Industrial 50% (223 quads)
China, 20% (44 quads)
Russia, 9% (21 quads) Japan, 5% (11 quads) Rest of World, 35% (80 quads)
15% of industrial energy is consumed in the United States
Source: EIA/International Energy Outlook 2007
Industry: Key to National Energy Picture Industry is the largest energy using sector • 37% of U.S. natural gas demand
2004 Energy Use* 100.3 Quads
Transportation 28%
Industry 33%
Chemicals
0.9
Aluminum
7.3
Petroleum Refining
0.7
Commercial • 30% of U.S. 18% greenhouse gas emissions
• Uses more energy than any one of the other G8 nations
7.8
3.3
*Includes electricity losses
Forest Products
1.4
Plastic & Rubber Iron & Steel Food Processing Non-Metallic Minerals
4.1
Non-Mfg
3.8
Other Mfg.
0.7
Residential 21%
Fabricated Metals
1.9 1.6
Japan Total Energy Consumption: 22.4 Quads
• 29% of U.S. electric demand
(Quadrillion Btu)
Source: DOE/EIA Monthly Energy Review 2004 (preliminary) and estimates extrapolated from MECS
Cost of New Electricity Resources 9
Levelized Cost of Electricity (cents/kWh)
8
7
6
5
4
3
2
1
0 Energy Efficiency
Biomass
Pulverized Coal
w/o carbon
Nat. Gas Combined Cycle
Coal IGCC
Wind
Nuclear
w/ $20/ton carbon Source: ACEEE 2008, EPRI 2006 & UCS 2008
Energy productivity in the U.S. is outperformed by many countries
Georgia: 10,121 / 13,471*
Source: Council on Competitiveness. 2007. Competitiveness Index: Where America Stands. Figure 4.32, p. 103. *EIA. 2007. Table 7, eia.doe.gov/emeu/states/sep_use/total/use.tot.ga.html (1990-not 1986 for GA)
Why Isn’t Industry More Energy Efficient? The business of industry is not energy efficiency Facility engineers typically do not become CEO or CFOs Budgets are separate for equipment purchases and operating costs Data on energy use of systems is very limited Difficult to assess performance or evaluate performance improvements Opportunities to become more energy
efficient are overlooked
What are Industry’s Priorities? Current 1. Stay profitable 2. Operate a safe workplace 3. Be compliant with environmental regulations 4. Meet legal and social responsibilities 5. Monitor supply chain for potential liability Emerging 6. Manage GHG emissions, carbon footprint
8
Industry and Energy Management ■ Most energy efficiency in industry is achieved through changes in how energy is managed, rather than through installation of new technologies; ■ Actively managing energy requires an organizational change in culture. ■ Companies that establish an energy management plan gain a number of benefits: – – – – –
Develop a baseline of energy use Actively managing energy use and reduce costs Reduce emissions without negative effect on operations Continue to improve energy use/product output over time Document savings for internal and external use (e.g. emission credits)
ISO Project Committee 242 ISO Secretary-General Alan Bryden:
"This first meeting of PC 242 marks the launch of a new global approach to systematically address energy performance in organizations – pragmatically addressing energy efficiency and related climate change impacts. It is fully in line with and supportive of the global mobilization on these major challenges, and with the IEA-ISO position paper on the contribution of International Standards."
Why an Energy Management Standard? • An energy management standard provides a method for integrating energy efficiency into existing industrial management systems for continual improvement; • All existing and planned energy management standards are compatible with ISO 9000/14000;1 • Companies who adopt an energy management standard are able to reduce energy use and improve operations, even if they are already complying with ISO 14001. • Also applicable to commercial, institutional, and transportation sectors 1 International Organization for Standardization (ISO)
11
U.S. Council for Energy Efficient Manufacturing Collaboration of industry, government, and non-profit organizations Seek to improve the energy intensity of U.S. manufacturing through a series of initiatives. Guide development of the Superior Energy Performance program
12
Superior Energy Performance Program Strategy • Foster an organizational culture of continuous improvement in energy efficiency in U.S. manufacturing facilities • Develop a transparent system to validate energy intensity improvements and management practices
• Create a verified record of energy source fuel savings and carbon reductions with potential value in national and international markets
13
Plant Certification
Energy & Sustainability Services Enterprise Innovation Institute Georgia Institute of Technology innovate.gatech.edu/energy Innovate.gatech.edu/environment
