October 1, 2011 Vol. XV, No. 13

Heads Up CIPEC Newsletter

Articles

Reminder - Early-bird special registration for Energy 2011 ends October 21

A special rate of only $599 is now in effect for all CIPEC Leaders interested in attending Energy 2011: A Lean and Green Future - Making Energy Visible on November 29 and 30 at the International Centre in Mississauga, Ontario. This rate includes full access to all Energy 2011 plenary sessions, workshops and plant tours and the energy showcase/trade show and entrée to the Dinner and CIPEC Leadership Awards Ceremony.

This limited time offer ends October 21, so don’t delay and register today.

For more information on Energy 2011 and to view the conference program, visit www.energy2011.ca.

Process integration brings significant energy savings to CIPEC Leaders

Process Integration (PI) is a powerful approach to optimizing energy use and power generation in industrial facilities. Several years ago, Natural Resources Canada (NRCan) launched a PI Incentive Program to help industry access PI services and achieve premium energy savings. A recent impact analysis of 43 plants, all CIPEC Leaders, was conducted to evaluate the impacts of NRCan's PI Incentive Program on energy and greenhouse gas (GHG) emissions. The analysis showed that PI studies allowed participating companies to better understand their energy and water use and to identify savings opportunities of up to 35 percent. Results of the analysis also show the potential for at least 500 other Canadian plants to benefit from significant gains.

The impact analysis, conducted by CanmetENERGY in Varennes, Quebec, concluded in March 2011. A detailed questionnaire was completed by participating companies from sectors such as pulp and paper, agri-food, oil refining, and mines and metals. A survey of the implementation rate for projects recommended in their PI study was also conducted. "The objective was to determine the concrete impacts of NRCan's PI Incentive Program in terms of energy savings, cost reduction and environmental benefits," notes Philippe Navarri, Senior Project Manager, Industrial Systems Optimization Group at CanmetENERGY.

PI studies were supported through the ecoENERGY for Industry program offered by NRCan's Office of Energy Efficiency (OEE). The program provided a financial incentive for undertaking PI studies to eligible Canadian companies, which could cover up to 50 percent of the cost of a PI study, to a maximum of $50,000. The energy analyses were site-wide and covered all heating and cooling process requirements, as well as other service or utility production systems (steam, hot water, compressed air and refrigeration).

"A PI study provides a global approach for analyzing processes throughout the plant, rather than solely considering each equipment item or energy system independently. Focusing on thermal energy and water consumption, it determines where energy can be recovered and where it should be utilized," says Navarri, Senior Project Manager for Process Integration, CanmetENERGY. A PI study is a very powerful approach to better understand which industrial processes are most important in terms of water and energy use. The study also allows identifying concrete opportunities for savings and plots out a plan of action for implementing energy efficiency measures.

The impact analysis found that, by using process integration, 43 plants saved 6600 terajoules of fuel, which represents annual cost savings of $54 million and a reduction in direct GHG emissions of 311 kilotonnes (kt) per year. Navarri notes that these savings represent enough energy to heat 100 000 homes and are equivalent to removing 100 000 cars from the road. PI also enabled program participants to increase their overall electricity generation capacity by 50 megawatts (MW). "This additional power can be considered as green energy when biomass is the primary energy source. It provides a significant source of energy for companies or a source of revenue if it is sold to the grid," notes Navarri, who estimates the value of this generation capacity at $15 million per year. It also translates into additional GHG reductions of 95 kt in provinces/territories where electricity generation is fossil fuel-based.

PI generated other benefits such as water savings, effluent reduction, electricity savings and production increase worth $6 million per year. Navarri says that these impressive results were achieved with a total government incentive of $2 million, allocated between 2004 and 2010. To achieve these savings, direct capital investments by industry of more than $100 million were made for the implementation of PI recommendations. Navarri indicates that the overall implementation rate for all participating companies was 55 percent with an average payback period of 1.4 years for implemented projects, which makes PI a very cost-effective approach for industry and the government.

In addition to PI study incentives, NRCan also provides technical assistance and training to develop Canadian expertise in conducting PI studies. PI training has been offered in collaboration with Quebec's Bureau de l'efficacité et de l'innovation énergétiques, which is part of the Ministère des Ressources naturelles et de la Faune. Five workshops took place in Quebec, two more are scheduled for October, and more are planned in other provinces/territories in 2012. The training has been well-received by participants from the industrial and consulting sectors and will answer the increasing need for PI studies, according to Navarri.

Companies that have energy-intensive equipment and many heat exchangers and use significant amounts of steam/hot water and thermal energy can also explore the benefits of PI studies by attending a PI webinar. NRCan is offering one on November 14, 2011. By using case studies, the seminar will focus on PI and the ways in which this analysis method can improve energy efficiency, increase profits and reduce the environmental footprint of industrial facilities. NRCan's support, tools and training will also be discussed. Companies may register by contacting Beryl Broomfield at beryl.broomfield@nrcan-rncan.gc.ca or 613-947-4828.

While attending Energy 2011 in Toronto, to be held on November 29 to 30, industry can attend a workshop that will provide detailed results of the PI impact analysis. Representatives from Kruger will share their experience with PI and the benefits this approach has provided for their company. Navarri adds that workshop participants will also learn about readily available incentives, services and tools to make PI a reality in their plant.

Navarri summarizes, "Our analyses clearly show that Canadian companies can benefit tremendously from PI, which allows them to optimize how heat is being used throughout their plants and to reduce waste heat and effluent streams. There is a vast potential for PI still unexploited in Canada - we just scratched the surface." PI is certainly a key component in the toolbox for improving energy efficiency in plants that have complex energy-intensive processes.

Cascades Inc. focuses on the first R of the three Rs

"Our current focus is energy reduction at the source," says Émilie Allen, Corporate Energy Director of Cascades groupe d'intervention en énergie GIE Inc. She is discussing Cascades Inc.'s vision of respecting the order of the three Rs in energy efficiency - reduction, recuperation and replacement. Although equipment upgrades are an important step in increasing efficiency, Cascades believes that reducing energy consumption in the first place, through employee training in operational and maintenance best practices, results in greater energy savings with shorter payback periods.

Cascades, a CIPEC Leader in the Pulp and Paper Sector, produces, converts and markets packaging and tissue products composed mainly of recycled fibres. It operates tissue and paper mills as well as cardboard and other specialty product plants - a total of 100 facilities across Canada and the United States, with nearly 50 located in Quebec and Ontario.

Founded in 1997, group Cascades GIE Inc. - headquartered in Kingsey Falls, Quebec - has grown from 3 to 20 employees, each responsible for identifying and implementing energy efficiency projects in the facilities they are responsible for. The group has been very successful, says Allen. She contributes this success to the fact that management has dedicated both financial and human resources to the group. With an increasing focus on preventative maintenance and employee awareness, the efforts of the group will have an even greater impact.

In addition to employee training, the group offers several services to all Cascades plants, including advice on optimizing new construction, reducing the loss of compressed air and optimizing the energy efficiency of boilers and related equipment. The group also conducts studies on heating, ventilating and air conditioning (HVAC) system performance, vacuum pumps systems, lighting systems, process, etc. Since 2006, the group has installed energy management information systems (EMIS) in 20 Cascades mills, as well as in some of its conversion plants.

The EMIS collects data on energy use every 15 minutes, which allows facility operators to gain an overview of real-time energy consumption for the entire plant as well as detailed process and equipment information. The data are analyzed by the group by using a multivariate analysis. "Should there be anomalies, the issue can be addressed immediately rather than discovering the problem on the utility bill at months' end," notes Allen.

Since 2004, Cascades has established an energy fund that has yielded an average payback period of three years. Allen notes that the initial $2 million invested in energy projects in 2004 yielded $9 million in 2010. "Our projects continue to generate revenue."

Allen says she thought the group Cascades GIE Inc. would have achieved their goals several years ago, but in 2011, "We are busier than ever - there are always opportunities and new ways of doing things." She notes that Cascades has gained considerable knowledge and best practices that the company hopes to share with other companies that are looking to move forward with energy efficiency. "The more energy efficiency measures and successes are discussed and shared, the more competitive our industry and Canada will be," says Allen.

New energy tools available to British Columbia farmers

"Farmers could benefit from a cohesive energy tool to determine their energy-saving opportunities," says Emily MacNair of the BC Agricultural Council's Climate Action Initiative. The newly available energy efficiency assessment tool that incorporates high-level screening for clean energy production options offers just that.

Now that one of the Phase II projects of the BC Farm Energy Assessment Pilot Project is nearly complete, farmers have access to a new tool for making energy-related decisions. The energy assessment tool was built on a first phase of pilot activity, during which a user-friendly, Excel®-based tool for identifying on-farm energy savings was piloted. The tool was extended during Phase II to other agricultural sectors such as grains and oilseeds, tree fruit, wine/grapes and nursery operations. The $136,000-project is headed by the BC Agriculture Council's Agriculture & Food Climate Action Initiative. The energy assessment tool was built into the Beneficial Management Practices program so that eligible farmers who have completed an Environmental Farm Plan can access the tool and its clean energy production module. "This is a screening tool that will, at a high level, assess whether a farmer has appropriate conditions for a particular technology," says MacNair. She adds that the tool provides general information such as payback periods and ideal conditions for implementation, but that it is only an initial step.

Ideally, the level of detail involved in an energy assessment will vary depending on the needs of the farm. It may involve a simple desktop assessment for cases like equipment switching or invoke a full energy assessment for more complex energy management situations. The latter cases would involve an on-site visit from an energy expert, who would subsequently make recommendations for areas that could be explored further for energy savings. MacNair notes that eligible farmers may receive up to $2,500 in assistance toward the cost of an assessment conducted by an energy expert.

After the energy assessment, a report is generated to provide recommendations for a particular farm. The tool offers a great combination of resources. The resources include a newly created Agriculture Business Energy Advisor position as well as British Columbia's new Agricultural and Agri-food Renewable Energy Technologies Feasibility Studies program. This program is a federal-provincial-territorial initiative that is funded by the British Columbia government, the Government of Canada, and Growing Forward (a federal-provincial-territorial initiative). The Climate Action Initiative is also continuing to work with FortisBC and BC Hydro to explore opportunities for incentives for costly efficiency upgrades.

In the coming months, the new Agriculture Business Energy Advisor (funded by the British Columbia Ministry of Energy and Mines) will promote the energy assessment tool and potential energy saving opportunities identified during the project.

For more information, contact Emily MacNair at Emily@bcagclimateaction.ca.

Kuehne + Nagel Ltd. on a path of continuous improvement

"The key to advancing environmental measures is engagement of the management team and employees," says Mark O'Connor, VP Security and Compliance at Kuehne + Nagel Canada in Mississauga, Ontario. The genesis of this engagement was the establishment of the company's Quality, Safety, Health, Environment and Security program (QSHE) about 14 years ago. At each facility, there is a QSHE team that ensures delivery of environmental policies and is responsible for communication with employees.

Kuehne + Nagel provides service excellence in sea and air logistics, customs brokerage and road and contract logistics, with a clear focus on providing IT-based supply chain solutions. The company delivers end-to-end supply chain solutions for many major industries, such as Aviation, Automotive, Pharmaceutical/Healthcare, Industrial, Fast-Moving Consumer Goods, Retail and Consumer Electronics.

Since 2007, Kuehne + Nagel has focused even more on its sustainability goals by setting several targets for its Canadian operations. The company aims, by the end of 2011, to reduce its average monthly GHG emissions by 2.5 percent compared to 2010 figures, as well as decrease carbon dioxide (CO2) emissions of Kuehne + Nagel-owned equipment by 1.5 percent from 2010.

O'Connor explains that Kuehne + Nagel's environmental policy will help them achieve of these sustainability goals. For example, Kuehne + Nagle uses environmental performance as a key criterion in supplier selection, delivers an effective carbon management program and communicates its environmental targets to employees and subcontractors.

According to Gary Boettger, Property Manager for Kuehne + Nagel, the company implemented energy efficiency measures in 2009 that have reduced both costs and GHG emissions. In January 2011, a lighting retrofit that replaced 400-W metal halides with T-5 fixtures was completed in three of the company's warehouses, representing a total of 114 500 square metres (m2). "We are already experiencing a 35 percent reduction in electricity use in those facilities," says Boettger.

Also, the company upgraded HVAC systems in about half of its Canadian warehouses to be automatically controlled and centrally monitored. For its new 37 414-m2 facility in Mississauga, Kuehne + Nagel installed a white roof to keep the building cooler in the summer. Similar white roofs have been and are being installed in other new warehouses. In addition, the company has phased out older inefficient, high-maintenance facilities.

To gain an understanding of energy use and to track GHG emissions, the company uses an environmental management system. This data-capture software records energy use per square metre and monitors any changes by plotting trends. O'Connor says that Kuehne + Nagel also uses a Global Facility Carbon Calculator for all of its Canadian warehouses, which analyzes carbon information - energy, fuel and water consumption, waste and recycling. The information allows the company to chart its path for continuous improvement and to meet its environmental goals. This calculator, a success in Kuehne + Nagel's European operations, may soon be trialed in Canada to report on carbon emissions per transaction, transport mode and customer.

O'Connor notes that Kuehne + Nagel is also actively recycling paper, cardboard, plastics and wood, with a target for 2011 of reducing waste destined for the landfill by 30 percent from the previous year. The company is also conscious of water consumption and has implemented water management best practices in its new facilities.

"We are always looking at new opportunities in all environmental areas," says O'Connor.

Dollars to $ense Energy Management workshops

Dollars to $ense Energy Management workshops – Schedule for November and December 2011

Legend
EEF: Energy Efficiency Financing
EM: Energy Monitoring
EMP: Energy Management Planning
SPOT: Spot the Energy Savings Opportunities
EMIS: Energy Management Information Systems
RCx: Recommissioning

(F) = French

Vancouver, B.C.
EMP – November 16

Montréal, Que.
SPOT – November 22 (F)
EM – November 23 (F)

Fredericton, N.B.
EEF – December 1

Toronto, Ont.
EMIS – December 1

Ottawa, Ont.
RCx – December 6

Register online at oeeforms.nrcan.gc.ca/index-eng.cfm?event=dollars-sense-registration.

Workshop schedule – fall 2011 to spring 2012

Upcoming events

1st Canadian German Conference "Canada & Germany: Energy Efficiency and Lean Manufacturing" - Toronto - October 31

The Canadian German Chamber of Industry and Commerce is organizing a one-day conference focusing on energy efficiency in the industrial context. The conference will offer overviews and current trends on energy efficiency in the industry in Canada and Germany as well as networking opportunities.

Topics to be covered include:

  • Political framework conditions for energy efficiency in Germany
  • Incentive programs for Ontario's industrial sector
  • Technology trends from Germany
  • Best practices on energy management from Germany and Ontario
  • Canadian industry leaders in energy conservation

For more information contact Alexandra Bogensperger, Manager Business Development, at alexandra.bogensperger(at)germanchamber.ca or 514-844-3051 or visit http://kanada.ahk.de/en/.

For a complete list of industrial program events, visit oee.nrcan.gc.ca/industrial/opportunities/calendar/index.cfm.

Call for story ideas

Has your company implemented successful energy efficiency measures that you would like to share with Heads Up CIPEC readers? Please send your story ideas for consideration to Jocelyne Rouleau by e-mail at jocelyne.rouleau@nrcan.gc.ca.

If you require more information on an article or a program, contact Jocelyne Rouleau at the above e-mail address.

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