Energy Efficiency Toolkit For Manufacturers€¦ · Samsonite Corporation Denver-based Samsonite...

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Survey Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Manufacturers’ Energy Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Eight Best Practices in Manufacturing And Companies That Use Them Increase the Efficiency of Motors and Systems . . . . . . . . . . . . 8 Improve Building Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Upgrade Heating, Ventilating and Cooling . . . . . . . . . . . . . . 10 Capture the Benefits of Utility Competition . . . . . . . . . . . . . 11 Empower Your Employees To Do More . . . . . . . . . . . . . . . . . 12 Use Water-Reduction Practices . . . . . . . . . . . . . . . . . . . . . . . 13 Use the Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Implement Comprehensive Facility Energy And Environmental Management . . . . . . . . . . . . . . . . . . . . . 15 Where To Go For Help: Resources for Reaching Your Energy Efficiency Goals . . . . . . . 16 Table of Contents Energy Efficiency Toolkit For Manufacturers Eight Proven Ways To Reduce Your Costs

Transcript of Energy Efficiency Toolkit For Manufacturers€¦ · Samsonite Corporation Denver-based Samsonite...

Page 1: Energy Efficiency Toolkit For Manufacturers€¦ · Samsonite Corporation Denver-based Samsonite Corp. is one of the world’s largest manufacturers and distributors of luggage, marketing

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Survey Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Manufacturers’ Energy Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6The Eight Best Practices in Manufacturing And Companies That Use Them• Increase the Efficiency of Motors and Systems . . . . . . . . . . . . 8• Improve Building Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9• Upgrade Heating, Ventilating and Cooling . . . . . . . . . . . . . . 10• Capture the Benefits of Utility Competition . . . . . . . . . . . . . 11• Empower Your Employees To Do More. . . . . . . . . . . . . . . . . 12• Use Water-Reduction Practices . . . . . . . . . . . . . . . . . . . . . . . 13• Use the Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14• Implement Comprehensive Facility Energy

And Environmental Management . . . . . . . . . . . . . . . . . . . . . 15

Where To Go For Help: Resources for Reaching Your Energy Efficiency Goals . . . . . . . 16

Table of Contents

Energy Efficiency ToolkitFor ManufacturersEight Proven Ways To Reduce Your Costs

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Energy prices are on the rise again andsupply restraints are showing up inmany parts of the country. How manufacturers respond to tighter energymarkets will increasingly affect theirbusiness performance and profitability.

Fortunately, energy efficiency comesnaturally to manufacturers because it is an application of total quality management that eliminates waste inthe production process. Technologicaladvances and the application of totalquality management in the workplacehave spurred an extraordinary growthin manufacturing productivity over the past decade.

This energy-efficiency toolkit, published by the National Associationof Manufacturers and its research andeducation arm, The ManufacturingInstitute, was created to help make saving energy a part of manufacturers’and employees’ daily routine. NAMmembers recently shared their energy-saving secrets, as part of a survey theNAM and the institute conducted in

spring 2000. More than 400 manufac-turers participated in the survey, whichrevealed that 85 percent have madeenergy-efficiency improvements over thepast five years. Simple measures thatreduce energy use by just 10 percent can shave as much as $18 billion offenergy-consumption costs.

The toolkit features eight energy-efficiency success stories, as well as a guide to dozens of public and private resources that can help yourcompany reduce energy waste andincrease productivity.

This toolkit is for you and youremployees, suppliers and customers; aswell as the local media and governmentofficials. I encourage you to distributeit among these groups. We are alsoplacing this publication on our Website so a wide audience can access theinformation easily. Empowering everyonewith whom you work will lead to theexchange of great ideas for saving yourcompany energy, decreasing waste andboosting your bottom line.

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Introduction

Jerry J. JasinowskiVice Chairman,

The Manufacturing InstitutePresident,

National Association of Manufacturers

For the complete, online version of this toolkit, visit The Manufacturing Institute Web site at www.nam.org/institute.

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Many people helped develop thistoolkit, and The ManufacturingInstitute and the NAM are grateful for all their contributions.

First and foremost, we would like to thank the more than 400 companiesthat participated in the spring 2000survey of manufacturers on energy efficiency. It is their experience in savingenergy and reducing their costs thatforms the basis of this report.

We are especially grateful to thecompanies who supplied the informa-tion in each of the best practices sidebars: Samsonite Corp., TheTimken Company, Stenner & Co.,Hyde Manufacturing Co., PitneyBowes Inc., G&S Titanium, Merck &Co. and Pfizer Inc. Their success stories clearly illustrate what steps theytook to save energy and how they communicated to their employees and communities.

Thanks to Mark Whitenton, NAM’svice president for resources, environmentand regulation; and to Barb Haig, president of Barbara Haig

Communications. Both of them helpeddevelop the content and organizationof the survey and provided invaluableadvice each step of the way.

Bill Paul, a professional writer andjournalist in Westfield, N.J., conductedthe company interviews and wrotemuch of this report. He developed thispublication in close association withMike Arny and Steve Olson at theLeonardo Academy in Madison, Wis.All three have an impressive under-standing of energy use and energy markets; their insight was critical.

We also want to thank the NAMPublishing Department, especiallyKevin Sullivan for the layout anddesign; Ingrid Davitt for many goodsuggestions and the final edits; andQuintina Kornegay for the printingarrangements. Jason Vaughan, associatedirector of the institute, added hisinvaluable editorial expertise. BillCanis, executive director of the institute, supervised the entire project,including editorial direction and coor-dination with other departments.

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Acknowledgements

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Energy Efficiency in ManufacturingSurvey ResultsOverview. In spring 2000, TheManufacturing Institute conducted asurvey of manufacturers to gain insighton their energy efficiency practices.Manufacturing accounts for more than40 percent of all energy use in theUnited States. It was responsible for 22 percent of U.S. economic growth inthe 1990s, more than any other sector.Understanding what manufacturers aredoing in the area of energy efficiency isan important prerequisite for holdingmeaningful public policy discussions onAmerica’s economic future.

This report summarizes the findingsof The Manufacturing Institute surveyof more than 400 manufacturers. Itwill help Congress, the media and the general public better understand current trends of manufacturers inenergy efficiency.

Over the past five years, a vast major-ity of U.S. manufacturers have improvedthe energy efficiency of their U.S.-basedplants and offices. Even though the relative price of energy increased onlyslightly during this period, large andsmall users alike chose to make improve-ments in a number of broad areas,namely lighting; heating, ventilating andair-conditioning systems (HVAC); andplant motors and machinery. Reasons for Efficiency Investments.Not surprisingly, manufacturers’ primary motivation was the desire to

save money. That aside, manufacturersacted more out of a voluntary com-mitment to a better environment thanbecause of any regulatory require-ments. While nearly 60 percent foreseeelectricity restructuring saving themup to 20 percent on their utility bills,a significant number would consider taking additional voluntary steps, suchas developing an energy efficiencyinformation campaign for employees.Approximately 85 percent of respon-dents answered “yes” when asked,“Has your company undertaken energyefficiency actions in the past fiveyears?” Of that 85 percent, approxi-mately four out of five said the “mostimportant” reason why they hadimproved their facilities’ energy efficiency was to “save money.”Specifically — • about three-fourths made lighting-

efficiency improvements in some orall of their plants, while nearly halfdid so in some or all of their offices;

• more than half made HVACimprovements in both their plantsand offices;

• more than half improved the effi-ciency of motors and machinery insome or all of their plants;

• nearly four in 10 trained facilitymanagers in energy efficient practices; and

• approximately one in three bench-marked against baseline energy use.

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Small users of energy were almost aslikely to have made productivity-enhancing efficiency improvements aslarge users. For example, amongrespondents who reported annual energy costs between $25,000 and$50,000 a year, more than 55 percentsaid they had made HVAC improve-ments in at least some of their offices.Helping the Environment. Nearly 40 percent ranked “voluntarily helpingthe environment” as their second mostimportant reason for improving theenergy efficiency of their U.S. facilities.Following environmental emissions regulations ranked as a distant third,followed by “improving communityrelations” and “requested by customers.”Additional Voluntary EnvironmentalSteps. Energy efficiency is just one of anumber of voluntary pro-environmentalactivities engaged in by U.S. manufac-turers. More than three-fourths reportedthat they reduce, reuse and recyclenon-regulated materials. More than 40 percent said they voluntarily reduceemissions and discharges beyond regulatory requirements. These are addi-tional voluntary steps to improve energyefficiency they would consider taking:• nearly 40 percent said they would

consider developing an employeeenergy efficiency information cam-paign (10 percent already have one);

• more than 30 percent said theywould consider promoting car pool-ing and mass transit (13 percent doso now); and

• more than 25 percent said theywould consider using alternative fuel sources for their corporate fleetsof vehicles (less than 4 percent currently do).

Involving Employees in Efficiency.Interest in developing employee energyefficiency information campaigns wasstrong among both small and largeenergy users. Nearly 40 percent ofrespondents with annual energy costsbetween $25,000 and $50,000 saidthey were interested in starting such acampaign, compared with the roughly52 percent with annual energy costs of$20 million or more.Government Programs. While U.S.manufacturers are keen on voluntarilyimproving energy efficiency, most havechosen not to participate in voluntarygovernment energy efficiency programsand organizations. More than half of respondents reported they are “not involved” in such programs. Ofthose who are involved, most said they participate in state or local programs, not in programs directly run by the U.S. Department of Energyor by the U.S. Environmental Protection Agency.

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No segment of American society has asmuch to gain from energy efficiency asthe manufacturing sector, as the chartbelow illustrates. Manufacturers areaffected directly by the energy cost ofmaking products (industrial); main-

taining office operations (commercial);receiving raw materials and deliveringfinished goods (transportation) andemployees’ household energy costs (residential), which have an indirectimpact on a manufacturer’s wage scales.

Manufacturers’ Energy Use

Manufacturers Use Energy More Than Any Other Sector

1998 U.S. Consumption by Sector

Transportation27%

Residential20%

Industrial37%

Commercial16%

The energy used by a manufacturer tomake goods — in process heating andmachine drive — dwarfs all other direct-end uses combined, as Table 1 shows.Manufacturers should probably concen-trate first on making energy efficiencyimprovements in these two areas. Of

nearly equal importance, however, isindirect end use (primarily boiler fuel).Other direct-end improvements (such asHVAC and lighting) should probably becombined into one all-encompassingefficiency-improvement project, inorder to maximize cost-effectiveness.

Manufacturing Sector Energy Consumption by End Use

Industrial Sector End-Use Category Trillion BTU Percent of TotalIndirect-End Use (Primary Boiler Fuel) 3,669 Direct-End UseDirect-End Use 6,739

Process Heating 3,466 51.4% Machine Drive 1,489 22.1% Facility Heating, Ventilation and Air Conditioning 588 8.7%Conventional Electricity Generation 351 5.2% Electrochemical Processes 271 4.0% Facility Lighting 185 2.7% Process Cooling and Refrigeration 161 2.4% Other Direct-End Uses 228 3.4%

End Use Not Reported 279Total 10,687

Source: Prepared by the Leonardo Academy from U.S. DOE/EIA data for 1994, AnnualEnergy View 1998, published July 1999. HVAC excludes steam and hot water.

Table 1: Manufacturing Sector Inputs for Heat, Power and Electricity Generationby End Use

Source: U.S. Department of Energy

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Dir

ect-

End

Use

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1Increase the Efficiency of All Motors

And Motor-Driven Systems

2Improve Building Lighting

3Upgrade Heating, Ventilating

And Cooling Systems

4Capture the Benefits

Of Utility Competition

5Empower Your Employees To Do More

6Use Water-Reduction Equipment and Practices

7Explore Energy Savings Through

Increased Use of the Internet

8Implement Comprehensive Facility Energy

And Environmental Management

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The Eight Best PracticesFor Improved Energy Efficiency

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The higher a motor’s efficiency, thelower its operating costs. The moremotors a manufacturer upgrades, themore energy-efficient the manufacturingprocess will be. And the more energyefficient a manufacturer is, the lowerthe total operating costs and the morecompetitive in the marketplace.

KEY TO SUCCESS: Regular mainte-nance keeps motors running efficientlyand identifies problems before a break-down. Know ahead of time where tofind high-efficiency replacementmotors, so that you can minimizedown time when existing motors break down.

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1. Increase the Efficiency of All MotorsAnd Motor-Driven Systems.

Samsonite Corporation

Denver-based Samsonite Corp. is one of theworld’s largest manufacturers and distributorsof luggage, marketing its products primarilyunder the Samsonite®, American Tourister®

and Lark® brand names. As part of a motor-efficiency improvement

program, the company installed nine high-efficiency, variable-frequency-drive motors oninjection-molding machines. The cost was$200,000 — nearly half of which was paid bythe local utility, Public Service Company ofColorado, as part of its Custom, IndustrialProcess Efficiency Solutions program. Thenew motors reduced energy use by 50 per-cent, saving Samsonite approximately$92,000 and generated an additional annualsavings of nearly $40,000, stemming fromreduced expenditures for emergency mainte-nance, oil, absorbents, mold repairs andwaste disposal.

The payback on this project occurred afteronly eight months: the amount of electricityneeded to produce a piece of luggage wasreduced by a healthy 10 percent. In additionto these motor improvements, Samsonite hasalso installed efficient lighting; added highlyefficient swap coolers when it expanded itsair-conditioning system; communicated itsimprovements through the Cleaner andGreenersM program; and reduced water usewith an innovative humidity-controlled irriga-tion system.

These actions have dramatically trimmedSamsonite’s energy bill by $275,000 a year.Kermit Hodge, director of environment, healthand safety at Samsonite, says, “These proj-ects just make good business sense; they’reno brainers.”

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Installing high-efficiency lighting systems and using daylight will notonly lower your lighting costs, it willalso improve lighting quality. Think ofday lighting as free light that may alsoimprove worker performance, just asit’s been shown to improve students’academic performance. The sleeperbonus here is increased productivity.

KEY TO SUCCESS: Combining alighting-improvement project withother energy efficiency projects willkeep costs down.

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2. Improve Building Lighting

The Timken CompanyThe Timken Company is an international manu-facturer of highly engineered bearings and alloysteels. One of the company’s global businessunits,Timken Aerospace, located in Lebanon,N.H., manufactures ball and roller bearings andemploys 700 people.

Steve Davis, manager of mechanicalservices for Timken Aerospace, learnedabout the new high-efficiency T5 fluorescentlights during a 1998 energy efficiency work-shop, sponsored by the New HampshireGovernor’s Office of Energy and CommunityServices. With the help of state energy offi-cials and the local power supplier, Davisdeveloped a lighting-improvement project thatis saving his company more than $100,000 ayear in lighting costs, plus an additional$40,000 a year in HVAC expenditures. Hereplaced existing metal halide fixtures withhigh-intensity, fluorescent fixtures that cutenergy consumption roughly in half. The newlighting, which uses a thinner (T5) fluorescentlamp, also improves lighting quality.

The project required replacing about 550 major fixtures and cost roughly $370,000.Granite State Electric Co. contributed nearly$100,000 through its demand-side manage-ment program. The project paid for itself inless than two years. Timken Aerospace cut itsenergy consumption by nearly 1.5 million kilo-watt hours annually and its power load byabout 190 kilowatts.

An added benefit of this public-private partner-ship was that, by reducing electrical energy use,Timken cut air pollution from fossil-fuel powerplant emissions. By saving 1,480,000 kilowatthours of electricity annually, Timken is reducingsulfur oxide emissions by 8.88 tons annually; andnitrogen oxide emissions by 3.7 tons.

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Higher-efficiency HVAC equipment,and more effective computer control of how and when that equipment isused, can substantially lower yourHVAC costs. Even simple steps, suchas reducing HVAC output on week-ends and at night, can make a big difference in overall plant and officeenergy-use that can only add to a manufacturer’s competitiveness.

KEY TO SUCCESS: If you upgradedyour HVAC systems 10 years ago ormore, it is time to check if new tech-nology has made it cost-effective to doso again.

3. Upgrade Heating, Ventilating And Cooling Systems

Stenner & Co., Inc.

During recent construction, Stenner & Co.,Inc., a Jacksonville, Fla.-based manufacturerof chemical metering pumps, replaced twoold air-conditioning units with five new energy efficient units. In addition to helpingcut energy costs by about 18 percent a year,the new units have improved worker produc-tivity by creating more favorable operatingconditions, says Steve Hayes, manager ofpurchasing and materials.

The new units provide “zoned” cooling,meaning that more cool air goes where it’sneeded most — on the hot-running machines— rather than on the workers. “We used to have workers who’d be freezing,” saysHayes. Since the new equipment wasinstalled, “our people are working harder;they can see this was done for them.”

In addition to installing more efficient ACunits, Stenner upgraded its chillers andinstalled new computer-controlled machineryfor its 7,000 square-foot manufacturing facility.The total cost was about $35,000, with afour to five year anticipated pay-back period.While Hayes strongly recommends thatmanufacturers upgrade their HVAC equip-ment, he suggests that such a project bedone when an expansion or other construc-tion is already disrupting a manufacturer’snormal working environment.

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Whether or not your state has deregu-lated its electric and natural gas indus-tries, you can use your local utility or anindependent energy services company(ESCO) to lower energy costs throughinnovative procurement and demand-side management programs.* Utilitycompanies know that they are (or soonwill be) competing for every commer-cial and industrial customer, a situationmanufacturers can take advantage of byasking for free energy audits and bill-tracking software — both of which giveyou a clearer picture of how energy isbeing used. If power reliability is a concern, ask about installing on-sitepower-generation equipment.

KEY TO SUCCESS: Energy-management systems measure energyuse and monitor peaks and valleys,putting manufacturers in a better position to control use, avoid highrates and negotiate with utilities.Closely tracking your energy billscould pay for itself just from the billingerrors you may uncover. If possible,find the utility or ESCO that wants topartner with you to reduce costs.Develop a fuel-management strategy toprofit from price volatility in fuels.

* The U.S. government is already learning how touse local utilities to cut energy costs. When oneof the biggest energy users in the world, the U.S.Defense Department, was ordered by thePresident to cut energy costs and significantlyreduce greenhouse gas emissions, it turned to anoutside energy efficiency team from Pepco EnergyServices Inc., a wholly owned, separately managedsubsidiary of Potomac Electric Power Co.Working with engineering firm Viron EnergyServices, Pepco Energy Services developed a comprehensive, multi-year, energy efficiencyimprovement program for hundreds of DODbuildings on five military installations. The planfeatures lighting retrofits and replacements; cooling-system retrofits and replacements; air-handling unit replacements and retrofits; central-heating plant upgrades (new gas-firedboilers); central-cooling plant upgrades (a newabsorption chiller and chilled-water distributionline); plus extensive water and wastewater-conservation measures. The plan is expected to

result in an annual energy savings of up to 17 percent. It is further intended to meet thePresident’s overall objective of a 30-percent reduction in emissions by federal agencies. The program has already generated widespreadpublicity. These capital improvements are beingfinanced by the Pepco/Viron team, eliminatingany cost to taxpayers — an option that every private manufacturer can also pursue.

4. Capture the Benefits of Utility Competition

Hyde Manufacturing Company

“At first it sounded too good to be true,”says Louis Koslowski, manager of plantengineering for Southbridge, Mass.-basedHyde Manufacturing Co. After five majorenergy efficiency improvement projects in 15 years — the last in 1999 — all coordi-nated by Hyde’s local electric utility,Koslowski says manufacturers would beunwise not to try to partner with their localpower firm. Over the years, Hyde has gotten rebates and other cash incentivestotaling roughly $200,000 for installing new lighting (in both plants and offices),variable-speed-drive motors and a waterchiller, plus upgrading a vacuum furnaceand a water-filtration system.

These various projects not only havehelped keep Hyde’s $750,000-a-year energycosts under control, they also have helpedlower water expenditures. The key, saysKoslowski, is to “get the utility involvedright at the beginning.” In Hyde’s case, theutility, Massachusetts Electric Co., “figuredeverything out for us and, after determin-ing we qualified under set guidelines,wrote a check that generally covered close to 50 percent of the up-front costs.”With more than 300 employees, HydeManufacturing makes putty knives, scrap-ers and other machine tools.

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Energy efficiency both directly andindirectly adds to manufacturers’ bottom lines, directly by cutting a company’s utility bills; indirectly ifmanufacturers communicate whatthey’ve done (and plan to do) to saveenergy. Keeping employees informedabout what’s going on will enable and empower them to seek additionalsavings that will further reduce yourcosts. Your marketing employees canalso make use of your energy efficiencyin positioning the company with customers. In addition, the moreemployees know about your energysavings, the more likely they will telltheir friends in the community.Keeping the media up to date on yourefforts will generate positive publicitythat may translate into new business, aswell as maintain good relations withgovernment officials.

KEY TO SUCCESS: Keep youremployees, customers and communitiesposted on your improvements throughinternal and external newsletters, mail-ings, e-mail announcements, theInternet and intranet, and press releases.

5. Empower Your Employees To Do More

Pitney Bowes Inc.

Pitney Bowes Inc., the Connecticut-based$4.4 billion global provider of mail and messaging management equipment, suc-ceeds in communicating its corporate environ-mental efforts, both internally and externally.

Employees regularly get a corporateenvironmental newspaper that’s full ofenergy-saving tips and advice. Whenemployees open their paychecks, they maybe greeted by messages that encouragethem to save energy by turning off theirdesktop computers. The company notifiesevery employee via e-mail wheneverthere’s a potential power crisis, urgingworkers to help out by pulling downshades and taking other voluntary steps.Externally, the company recently became afounding sponsor of Greenbiz.com, anonline environmental resource center thathelps corporations “align environmentalresponsibility with business success.”

Pitney Bowes also uses direct media out-lets, such as the Connecticut Business andIndustry Association, plus indirect outlets likeBusiness Wire, to distribute environmentallyoriented press releases. When the companyhas a special event, such as the installationof a cogeneration unit, it airs the event on TVand other local media. “We’re always tryingto raise awareness,” says Michael Gilbert,senior corporate environmental engineer.Awareness is a key ingredient of the com-pany’s Managing Energy Wisely Programwhich, since 1997, has trimmed corporateenergy consumption by 15 percent on aweather normalized basis — enough BTUsof energy to power 40 households.

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Saving water leads to energy savings:Reducing water use decreases the ener-gy needed to pump, heat or chill water.With water on the verge of becoming ascarce commodity in parts of theUnited States, manufacturers canexpect to see their water and sewagebills climb steadily in coming years.Installing new water-reduction equip-ment, as well as altering manufacturingprocesses so that less water is used andwastewater is captured and re-used, willhelp keep your water bills in check andsends a readily understood message to themedia and the public that your companyis concerned about the environment.

KEY TO SUCCESS: Install closed-loop systems that will enable water tobe used over and over. Identify howwater is used in your facilities: where,how, how much and for what purpose.

6. Use Water-Reduction Equipment and Practices

G&S Titanium, Inc.

Wooster, Ohio-based G&S Titanium, Inc., is a small, 50-employee firm that processestitanium for manufacturers of springs, tanksand other products. As part of its manufac-turing process, G&S runs the titaniumthrough a descaling salt bath, in which saltthat’s been heated to the point where it’s aliquid is used to remove the oxide scalesfrom the metal. Electrodes keep the salthot, while water keeps each electrode’spower-delivery components cool.

Instead of simply using grid-suppliedelectricity to cool that water, G&S installeda rooftop heat exchanger that uses naturalair currents. It’s all part of a closed-loopsystem that paid for itself in less than oneyear and is saving the company $5,000worth of electricity annually. G&S nextplans to capture the steam generated bythe boiling of its wastewater, and use thatsteam to power the boiling system, effec-tively making that piece of equipment energy efficient. This system could savethe company as much as $13,000 a year in natural gas costs.

G&S has made other changes that aresaving the firm hundreds of thousands ofgallons of water per year. For example, tosave water, it switched from clean watertanks to dirty water rinse tanks that do nothave to be frequently refilled. It uses a high-pressure washing system and a water mist-ing system to clean the rinsed titanium.

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As an extremely effective communica-tion tool, the Internet has the potentialto help manufacturers save energy in avariety of ways. An Internet-based,energy-management system can pro-vide more precise control of energy usethroughout a plant or office. Such asystem may be especially useful formulti-site manufacturers seeking toconsolidate energy procurement acrossseveral states or regions. You can alsosave energy by allowing more employeesto telecommute. Transportation energyalso may be saved by using the Internetfor videoconferencing.

KEY TO SUCCESS: Focus on thoseareas in your workplace where theInternet could help reduce energy useeffectively and efficiently (e.g., video-conferencing) and secure the necessarysoftware and resources to implementthe Internet-based changes.

7. Explore Energy Savings Through Increased Use of the Internet

Merck & Co., Inc.

Merck & Co., Inc., a New Jersey-basedglobal pharmaceuticals research and development firm, intends to use the energy efficiency lessons learned fromtwo pilot projects at Merck plants in NewJersey and Pennsylvania. Via the Internet,the company hopes to spread the efficiencyinformation and the development of thesepractices with all other Merck facilitiesaround the world including 31 plant locationsin 18 different countries. Merck’s goal isto create a best-practices information site,which will be continuously updated as newand better energy efficiency practices areimplemented, and is readily accessible byall of Merck’s 62,000 employees. Merckplans to have this company-wide effort upand running within two years.

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To maximize the energy savings and itsoverall benefits to your company, imple-ment a comprehensive facility energyand environmental-management pro-gram that addresses all seven of thepreviously listed steps in an integratedfashion. You can accomplish this bydoing it internally, outsourcing it or bycombining internal and externalresources.

KEY TO SUCCESS: Keep score onyour energy use, emission and waste.Establish a commitment from the CEOor COO to develop a corporate energyplan. Designate an overall energy czarwho will have responsibility for compre-hensive energy improvements and willset specific targets to achieve your effi-ciency goals.

8. Implement Comprehensive Facility Energy And Environmental Management

Pfizer Inc.

The Pfizer Global Research facility, locatedin Groton, Conn., has a campus of about20 buildings encompassing more than 4-million square feet. The facility is mainlylaboratory spaces used for pharmaceuticalresearch, but includes offices and a cafete-ria. Pfizer sought to reduce operating costs,replace failed and antiquated equipment, andreduce campus-wide cooling loads. Thecompany needed to implement energy-system improvements without distracting itsown staff from the company’s core business.

To achieve these goals, Pfizer entered into a performance contract with JohnsonControls, Inc. This energy-service company designed a comprehensiveupgrade, including identifying viable effi-ciency opportunities and operations andmaintenance savings. Johnson Controlsalso guaranteed the energy savings fromthese upgrades would pay for the projects.This outsourcing arrangement includesturnkey operations, such as providing con-struction management, economic analyses,project design, implementation, employeetraining and savings verification.

Through this approach, JohnsonControls has already identified more than$1.1 million in annual justifiable energy savings, without sacrificing environmentalcomfort, quality or safety. More than $8.8 million in energy efficiency retrofitshave been approved, many of whichalready have been installed. The projectedenergy savings to Pfizer from the approvedupgrades are $1,183,000 per year.

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General Resources

Leonardo Academywww.leonardoacademy.org/efficiencyre-sources/industry.htmPhone: (608) 280-0255Fax: (608) 255-7202

This non-profit organization will helpyou find the information and tools youneed to increase the energy efficiencyof your facility.

NAM Manufacturing ImprovementCenter (MIC)www.nam-mic.comPhone: (1-800) 969-6205

Operated in conjunction withConcurrent Technologies Corporation,the MIC provides technical services,including ISO 9000 and 14000 preparations; process development; and environmental engineering andmanagement. Call to receive a confi-dential, no-obligation assessment.

The Manufacturing ExtensionPartnership (MEP)www.mep.nist.gov/Phone: (1-800) MEP-4MFG

This nationwide network of not-for-profit centers in more than 400 locationsadvises small and medium manufacturerson energy efficiency, providing links tolocal resources and expertise.

U.S. Department of Energy (DOE),Office of Industrial Technologywww.doe.gov/eere/oit/

DOE has many programs and resourceson energy efficiency improvement.

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Edison Electric Institutewww.eei.org/esg/other/solutions/

The institute’s Web pages contain recommendations for building andequipment efficiency.

Outsourcing EfficiencyImprovements

If you want to outsource your projectfrom beginning to end, consider usingan energy-savings performance contrac-tor who is willing to develop, imple-ment and guarantee the performance of energy efficiency improvement projects. Many equipment manufacturers,utilities, engineering firms and othercompanies have formed units that provide these services.

Energy Services Coalition (ESC)www.wrcperform.org

The coalition is comprised of representa-tives of energy-service companies(ESCOs), facility owners, finance companies and state energy offices. ItsWeb site includes a guide to usingenergy-service companies and a listingof ESCOs serving each state.

National Association of EnergyService Companies (NAESCO)www.naesco.org

NAESCO promotes the delivery ofenergy efficiency and other energyservices by ESCOs.

For the complete, online version of this toolkit, visit The Manufacturing Institute Web site at www.nam.org/institute.

Resources To Help Make Your Facilities More Energy EfficientMany resources are available to help manufacturers increase energy efficiency. A few are listed below.

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mentals and the advanced featuresof the program, providing examplesfor using the software to makemotor purchasing decisions.

The CD can be ordered on theOIT Web site, via e-mail,[email protected], or bycalling (1-800) 862-2086.

Electric Power Research Institute (EPRI)www.epri-peac.com/asdmaster

ASDMaster: Adjustable Speed DriveEvaluation (Methodology andApplication Software)This Windows software program helpsdetermine the economic feasibility ofan ASD application, predict howmuch electrical energy may be saved byusing an ASD and search a database ofstandard drives. The package includestwo diskettes, a user’s manual, and auser’s guide.

The Industrial Centerwww.industrialcenter.org

This non-profit promotes the use ofnew gas-fueled technologies thatincrease manufacturing productivityand competitiveness. It’s based on theestablishment of a market-driven con-sortia of energy companies, equipmentvendors and industrial end-users thatfinance technology demonstrations andproduce market-entry support materials.

2. To upgrade lighting systems:

International Association for EnergyEfficient Lightingwww.iaeel.org

An information resource for high-quality, energy-efficient lighting.Access all issues of IAEEL Newsletter,visit the Lighting Crossroads resourceindex and check out Lighting andEnergy Meetings & Events.

1. To increase the efficiency of allmotors and motor-driven systems:

U.S. Department of Energy’s Officeof Industrial Technologies (OIT)www.oit.doe.gov/bestpractices

www.oit.doe.gov/bestpractices/soft-ware_databases/software.shtml

The OIT will work with you toimprove your systems — motors,steam, compressed air, combined heatand power, process heat — plantwide.You can also obtain free, readily avail-able software, such as the U.S. DOE’sMotorMaster, to track your motor-driven systems. Use the software topick the most efficient equipmentavailable within your cost range.

• MotorMaster+3.0 (MM+3.0)An energy efficient motor-selectionand management tool, this softwareincludes a catalog of more than20,000 AC motors and featuresmotor inventory-management tools,maintenance-log tracking, efficiencyanalysis, savings evaluation, energyaccounting and environmentalreporting capabilities.

• Pump System Assessment Tool (PSAT)The Pump System Assessment Toolhelps assess the efficiency of pump-ing-system operations. PSAT usesachievable pump-performance datafrom Hydraulic Institute standardsand motor performance data fromthe MM+3.0 database to calculatepotential energy and associated costsavings.

• Decision Tools for Industry CDThe Decision Tools for Industry CDcontains both the MM+3.0 andPSAT software packages. In addi-tion, it includes MM+3.0 trainingthat walks you through the funda-

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Specific Resources

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U.S. EPA Energy Star Buildings And Green Lights Partnershipswww.epa.gov/buildings/esbhome/

Energy Star BuildingsSM is a voluntarypartnership between companies andthe U.S. Environmental ProtectionAgency (EPA) to promote energy effi-ciency in buildings.

Energy Star Labeled Productswww.energystar.gov/productsPhone: (1-800) STAR-YES

This Web site includes product lists forlighting and store locators.

Lighting Research Centerwww.lrc.rpi.edu

The center maintains the NationalLighting Product Information Program(NLPIP), a source of manufacturer-specific performance information onefficient lighting products.

3. To upgrade heating, ventilating, cooling systems andimprove your building shell:

U.S. EPA Energy Star Labeled Productswww.energystar.gov/productsPhone: (1-800) STAR-YES

This site includes product lists and store locations.

U.S. Department of Energy (DOE)www.oit.doe.gov/bestpractices/soft-ware_databases/software.shtml

BestPractices, an initiative of theDepartment of Energy’s Office ofIndustrial Technologies, offers softwaretools to improve your plant’s energy efficiency, enhance its environmentalperformance, and increase its productivity.One free product, 3E Plus, helps deter-mine whether boiler systems can beoptimized through the insulation ofboiler steam lines. (3E Plus is also avail-able directly from NAIMA; at right.)

Office of Building, State And Communicty Programswww.eren.doe.gov/buildings/tools_directory/

Describes 202 energy-related softwaretools for buildings, with an emphasison using renewable energy and achiev-ing energy efficiency in buildings.

North American InsulationManufacturers Association (NAIMA)www.naima.orgPhone: (703) 684-0084

NAIMA developed 3E Plus , softwarethat calculates how much money canbe saved and greenhouse gas preventedby insulating pipes, boilers, storage ves-sels and ducts. The calculations arebased on energy, labor and insulationcosts. Many insulation upgrades canhave paybacks in less than one year.The 3E Plus program can be used byyour own plant manager or by a certi-fied appraiser. For a list of certified appraisers:www.insulation.orgTo download the free 3E Plus program:www.pipeinsulation.org

Efficient Windows Collaborative (EWC)www.efficientwindows.org

Provides information on the benefits ofenergy efficient windows, descriptionsof how they work, and recommenda-tions for their selection and use.Developed with the support of theU.S. Department of Energy’s Windowsand Glazings Program and the partici-pation of industry members.

American Gas Cooling Center (AGCC)www.agcc.org

Develops natural gas air conditioning,refrigeration and dehumidificationmarkets. Their site includes informa-tion on products, education and events.

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4. To capture benefits of utility competition:

• Use energy and utility bill trackingsoftware to track your company’senergy consumption and savings.There are a number of commercialsoftware products available. (Visitthe Leonardo Academy Web site fora current list of providers:www.leonardoacademy.org/efficien-cyresources/energytracking.htm.)

• Competitively procure your energyrequirements; ESCOs can help youwith this, as can private energy procurement companies, such asAmerican PowerNet (www.american-powernet.com) or UtiliCorp EnergyManagement (www.uemenergy.com).

• Build energy efficiency into yourstrategy for reducing utility costsand uncertainty of supply. Energyservice companies can also help youwith this process.

5. To communicate your company’senergy efficiency and environ-mental achievements to yourcustomers:

Certification Programs

The Cleaner and GreenerSM

Certification Program. www.cleanerandgreener.orgPhone: (1-608) 280-0256

Whole company certification thathelps businesses communicate theirenergy efficiency and environmentalachievements to their customers.

ISO Easywww.isoeasy.org

ISO Onlinewww.iso.ch

These organizations provide guidancefor ISO certification.

• ISO 9000ISO 9000 standards are management-system standards developed by theInternational Organization forStandardization (ISO) that staterequirements for what an organizationmust do to manage the processesinfluencing quality. The standardizeddefinition of “quality” in ISO 9000addresses all those features of a prod-uct (or service) that are required bythe customer. “Quality management”in ISO 9000 is defined by the man-agement processes companies have inplace to ensure that its products con-form to the customer’s requirements.

• ISO 14000Like ISO 9000, ISO 14000 is a set of management-system standardsdeveloped by the ISO that staterequirements for what an organizationmust do to manage the processesinfluencing the impact of the organi-zation’s activities on the environment.“Environmental management” inISO 14000 is defined by the man-agement processes organizationshave in place to minimize harmfuleffects on the environment causedby its activities.

Recognition Programs

U.S. EPA Energy Starwww.energystar.gov Phone: (1-800) STAR-YES

In return for committing to upgradetheir buildings to become more energyefficient, Energy Star BuildingsSM

Partners receive access to services,information, tools and resources fromthe EPA. Visit www.epa.gov/buildings/esbhome/benefits/benefits.html to see how these partnership benefitsadd even more value to energy-efficiency improvements.

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The Manufacturing Institutewww.nam.org/instituteE-mail: [email protected]

Contact the institute for informationand resources on planning an EarthDay program at your plant, to showhow your company is improving theair, water and land.

Climate Wisewww.epa.gov/climatewise

An EPA and DOE recognition pro-gram for industry.

Climate Challengewww.eren.doe.gov/climatechallenge

A DOE recognition program for utilities.

6. To implement water use reductionequipment and practices:

WATERGYwww.eren.doe.gov/buildings/tools_directory/software/watergy.htm

A simple spreadsheet model thatscreens sites for potential water conser-vation opportunities and illustrates theenergy savings that result from waterconservation activities. Reducing wateruse decreases the energy needed topump water from its source. Reducinghot water use reduces the energy neededfor heating water.

7. To explore energy savingsthrough increased Internet use:

Metro Atlanta TelecommutingAdvisory Council (MATAC)www.matac.org/rocket.htm

Lists eight techniques for companies touse in developing successful telecom-muting programs.

TeleworkOregon Office of Energy, Telework Resources625 Marion Street, NESalem, OR 97310Phone: (503) 378-4040Fax: (503) 373-7806

A complete guide for setting up atelecommuting program at your business.

8. To implement comprehensivefacility energy and environmentalmanagement:

For information on how to implementcomprehensive facility energy and envi-ronmental management, consult theinformation resources listed above forgeneral information, outsourcing and foreach of the eight specific areas of action.

The U.S. Green Buildings Councilwww.usgbc.org/

The council is a non-profit organiza-tion that encourages the design andconstruction of environmentallyfriendly and energy efficient buildings.Members have access to a clearing-house of emerging trends, policies andproducts. The council sponsors theLEED Green Building RatingSystem™, a voluntary, consensus-based,market-driven building rating systembased on existing, proven technology.A number of resources are available onthe Web site, including LEED GreenBuilding Rating System™ software.

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