Dow’s Energy Management System · The Dow Public Report Corporate Commitment & Accountability ...

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Dow’s Energy Management System

Joe AlmaguerSept. 2015

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• Largest diversified chemical company

• Founded in Midland, Michigan in 1897

• Manufacture more than 6,000 products at 200 sites in 36 countries across the globe

• Annual sales of $58 billion

• 53,000 employees worldwide

• One of the world’s largest industrial energy consumers….about 500 Trillion BTUs/Year

• Committed to Sustainability

About Dow

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2014 Sales by Operating Segment & Geographic Area(dollars in millions)

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North AmericaSales: $21,422

Latin AmericaSales: $7,939

Europe, Middle East, Africa and IndiaSales: $19,671

Asia PacificSales: $9,135

2014 Sales of $58,167 million

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• Sustainability of the Business• Save money…………….$ 29 Billion

• Competitive advantage…..lower cost to produce

• Environmentally Responsible

• Lower carbon liability……lowers emissions

• Product attractiveness……lower footprint

• Creates Local Prosperity, Jobs…..

• Sustainable businesses create local jobs and wealth

Committed to Energy Sustainability….Why?

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Committed to Energy Productivity

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Key to Success

DOW CONFIDENTIAL - Do not share without permission

The primary reason we have enjoyed this level of sustained success is attributed to having an established, institutionalized and comprehensive Energy Management System (EnMS).

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Energy Management System

What is an Energy Management System?

ISO 50001 definition:“energy management system, EnMSA set of interrelated or interacting elements to establish an energy policy and energy objectives, andprocesses and procedures to achieve those objectives”

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Key Elements of Dow’s Energy Management System

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Driving Energy Efficiency at Dow

Our Corporate Commitment:• Our Sustainability Commitment

and Policies establishes energy performance as a corporate objective.

• Defines Company Values to Stakeholders

• Establishes Expectations for Leaders

Energy Efficiency& Conservation


Corporate Commitment

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The Dow Public Report

Corporate Commitment & Accountability

www.dowpublicreport.com

Public Commitment:

• In 1995 Dow Committed:

• To Reduce Energy Intensity

• By 20% by the year 2005

• From Base Year 1994

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We will further reduce our global energy intensity by 25% from 2005-2015

We will reduce our GHG emissions intensity by 2.5 % per year thru 2015

By 2025, we aspire to reduce absolute emissions within the company

“No one in the world is more intenselyaware of the need, ultimately, to reinventour dependency on oil and natural gasthan we are… We will lead the way on energy transformation because we have to. And we have taken important steps already.”

-- Andrew LiverisChairman, CEO & PresidentThe Dow Chemical Company

Corporate Commitment to 2015 Goals

Liveris Launches 2015 Sustainability Goals

Corporate Commitment & Accountability

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Driving Energy Performance at DowTop Leadership Responsibility:• Appoints an overall EE&C Global Leader to

establish and implement the overall EnMS across Dow.

• Business - Appoints EE&C Leader to drive EE&C within the business

• Site Leader – Appoints EE&C Leader to lead the site in advancing energy performance

• Sets Overall Long Range Goals • Establishes Priority• Provides Resourcing and Funding• Establishes Performance Accountabilities• Visibly Models Action



Senior LeadershipSupport

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Driving Energy Efficiency at DowOrganizational Structure:• Global EE&C Leader• Implementation Leader(s)• Implementation Teams• Energy Teams Networks• Roles & Responsibilities

Implementation:– Develops Management Systems– Establishes Implementation Model– Leads Teams and Networks:

Globally/Sites/Businesses– Develops Specific Plans to Achieve Goals – Identify Energy Saving Opportunities– Implement EE&C Projects– Monitor and Report Progress– Promotes EE&C Culture Locally– Leverages Success



OrganizationalStructure

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Driving Energy Efficiency at DowOrganizational Structure:

Plant E 5Plant D 5Plant C 5Plant B 5Plant A 5Site 5 EE Leader



Plant E 2Plant D 2Plant C 2Plant B 2Plant A 2Site 2EE Leader


Business E

EE Leader

Business D

EE Leader

Business C

EE Leader

Business B

EE Leader

Business A

EE Leader

EE&C Global Leader






Business E

EE Leader

Business D

EE Leader

Business C

EE Leader

Business B

EE Leader

Business A

EE Leader

EE&C Global Leader

Site EE&C Teams

Business EE&C Teams

• Charter• Leadership• Membership• Plans• Roles

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Business EE&C TeamStructure

Sponsor

Bus EE&C Team Leader

Plant/UnitFocal Point

Plant/Unit Focal Point



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• Working with Business Leadership in the development of business energy performance goals and targets that support Dow’s 2015 EI targets.

• Developing and implementing any additional energy performance indicators, (EnPIs), that may be useful in measuring, tracking, assessing and improving the energy performance of manufacturing assets.

• Leading energy advocacy within the business• promoting an energy efficiency and conservation culture• communicating energy performance goals, objectives and targets• providing EE&C system training• engagement of personal in improvement of energy performance

• Identifying plant level energy improvement leaders who are accountable at a local level for advancing the businesses energy performance improvement goals and objectives

• Developing and maintaining plant-by-plant EI improvement plans• Tracking and reporting progress against targets and goal, plant by plant and at the business level • Conducting periodic reviews with business leadership on effectiveness of the EE&C program,

progress/results and future plans • Maintaining the accuracy of the data that goes into GAUR-Energy Reports used for tracking EI • Coordinating and or leading plant energy assessments as a means of identifying energy saving

opportunities • Participating in Energy Optimization VIP sessions for new projects within the business • Leveraging EI improvement projects/learning/opportunities within the business and exporting to others

as appropriate• Active participation and support of the Energy Efficiency and Conservation Network

Business EE&C Leader Role:

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Site EE&C TeamStructure

SponsorSite Leader

Site EE&C Team Leader

Plant/UnitFocal Point

Maintenance Focal Point

Communications Focal Point

Engineering Focal Point

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• Assembling and leading a cross functional team to establish, implement, maintain and improve the Site’s Energy Management System (EnMS) and drive energy performance improvement

• Leading energy advocacy within the site • promoting energy efficiency and conservation culture • communicating energy performance goals, objectives and targets within the site • providing EE&C system training • engagement of personal in improvement of energy performance

• Work with Site Leadership in the development of Site Energy Policy and Performance Goals • Developing and maintaining an energy improvement plan • Tracking and reporting and communicating energy performance improvement, plant by plant and at the

site level, through periodic Site Leadership Review Sessions (i.e. SLT meetings) • Helping to maintain the accuracy of the data that goes into GAUR-Energy Reports used for tracking

energy performance by periodically reviewing the data • Conducting periodic assessments/reviews of the Site EE&C program to ensure full implementation and

continual improvement • Coordinating and or leading site/plant energy assessments as appropriate as a means of identifying

energy saving opportunities; i.e. Site wide Assessments, targeted assessments, etc. • Participating in Energy Optimization VIP sessions for qualifying new projects within the Site • Leveraging EI improvement projects/learning/opportunities within the site and exporting to others as

appropriate • Active participation and support of the Energy Efficiency and Conservation Network

Site EE&C Leader Role Includes:

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Driving Energy Efficiency at DowEnergy Measurement & Reporting Systems:• Robust Energy Accounting System

– Metering Program– Sub-metering – Energy Conversion to Common Btu’s; Btu’s/lb– Baselines and Energy Performance Indicators

(EnPIs)• Established Accounting and Business Rules• Energy Reports Capabilities:

– Drill down: Business / Site / Plant / Facility – Converts Data to Useful Information– Available to all Leaders and Employees– Basis for Monitoring and Reporting Progress

• Energy Training• Internal Report• Public Sustainability Report



Measurement& Reporting

Energy Intensity (BTU/LB)

3,600

3,650

3,700

3,750

3,800

3,850

3,900

3,950

4,000

4,050

4,100

Total 4,052 3,894 3,927 3,950 3,949 3,937 3,914 3,773 3,821 3,868 3,833

1 2 3 4 1 2 3 4 1 2 3

2004 2005 2006

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Dow’s Energy Use and Consumption• Dow is among the largest Industrial Energy Consumers

– Annual Energy Consumption Globally ≈ 500 Trillion Btu’s– US Operations Consumption is ≈ 300 Trillion Btu’s/Yr– Data Analysis is used in performing Energy Reviews

Freeport 25%

Plaquemine 13%

Stade 8%

Terneuzen 12%

St Charles Operations 7%

Fort Saskatchewan 6%

Dow Central Germany 6%

Bahia Blanca 4%

All Other Sites 12%

Tarragona 3%

Seadrift 2%

Aratu 2%

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Committed to Energy Productivity

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Energy Review and Improvement Plans• Energy Assessments of Existing Assets (plants, systems, facilities,

etc.)• Improvement Work Process

– To Identify Defects:• Energy Waste • Inefficiency• Sub-Optimized Systems• Operations & Maintenance Issues

– Finding Optimum Solutions– Integrate Projects into Capital Program– Prioritize & Compete for Funding– Corrects the Defect– Establish a Control Plan to Sustain the Gains

• Results in Incremental Energy Efficiency Improvement



Improvement Methodology

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Energy Efficient Design of Systems

Designing in Energy Efficiency– Energy Optimization VIP:

• Energy Optimization is a structured, team based and expert supported effort directed towards developing the optimal balance between the cost of energy and capital expenditures in projects to achieve the minimum long-term cost of ownership. The return of investment is improved by investigating three layers:

optimize fit of process into existing site power and utility system define the most economic level of heat recovery within the process utilize energy optimized process building blocks (unit operations)

• Energy Optimization is used to maximize the impact of our capital spending and increase our global competitiveness.

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Improving on the Best• Opportunity to Build a More

Efficient Plant Than Current Benchmark

• Overall Energy Intensity is Improved

Plant Intensity Benchmark

0

500

1,000

1,500

2,000

2,500

ALTONA, AUS ARATU, BRA FREEPORT, TX PLAQUEM INE, LA STADE, DEU

Energy Intensity Average Intensity

Plant Intensity BenchmarkW/O Optimization

0

500

1,000

1,500

2,000

2,500


Energy Intensity Orig Avg 2 EI

Plant Intensity BenchmarkWith Optimization

0

500

1,000

1,500

2,000

2,500


Energy Intensity Orig Avg 2 EI Final EI

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Employee Communication Systems:System(s) That Facilitate Sharing or Communication on: • Dow Sustainability Commitments• Performance Reporting• Challenges & Success Stories

– Big Energy Savings, Recognition at TCO – Texas Operations LHC-7 Wins ACC Responsible

Care® Award • Benchmark Information• Employee Engagement• Messages from Leadership Team• Submit an Idea • Energy Efficiency & Conservation Website



Communication Systems

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Goals and Compensation:To Help Drive Accountability Throughout

the Organization • Set Challenging Annual Goals

– Corporate Goals– Business Goals– Site Goals– Plant Goals– Team Goals– Individual Goals

• Link to Compensation :– Compensation Linked to Goal Attainment &

PerformanceEnergy Efficiency& Conservation


Goals & Compensation

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RecognitionExternal Examples: • Power 9 Operating Employees Save Energy• Small Steps Lead to Big Energy Savings, Recognition at TCO • Texas Operations LHC-7 Wins ACC Responsible Care® Award• Dow Named Energy Star Partner of the Year 2008• Dow data Centers Reduce Energy by 50%• Several Dow Plants have been recognized by the Dept of Energy

for achieving significant energy savings following System Assessment under the Save Energy Now Program.

• Internal Recognition System:– Dow Recognition System: - Enables Recognizing employees

for the EE&C Efforts– Energy Efficiency Newsletter



Goals & Compensation

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Efficiency and The Triple Bottom Line

Good for Business:Saves Money, Enhances Global Competitiveness, Preserves Jobs, Creates Prosperity for Shareholders

Good for the Environment:Fewer GHG Emissions, Part of theSolution to Global Climate Change

Good for Society: Reduces Demand, Lowers Energy Bills, Promotes Energy Security

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Thank You

Joe AlmaguerThe Dow Chemical Co.

Telephone: +1 832 466 2486

Email address:[email protected]@gmail.com

Dow’s Energy Management System · The Dow Public Report Corporate Commitment & Accountability ...

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