ISO 50001 Implementation at Areej Vegetable Oils &

Derivatives S.A.O.C

Energy Efficiency: A Key Driver for Clean Energy Transition Executive Workshop

Muscat, Oman

28-29 October 2081

Eng. Ridah Sabouni, CEM, PMP, CMVP

Managing Director, Middle East

& North Africa

Energetics

Eng. Imam Ergawi

Assistant Manager for Industrial

Engineering & Energy Management

Areej Vegetable Oils & Derivatives S.A.O.C

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GEN Europe Experience

Cork

Madrid

Members of ISO TC 301

• Liam McLaughlin

(United Nations)

• Andrea López

(Spain)

Malaysia

Moldova

South Africa

Russia

Macedonia

Iran

Ukraine

Georgia

Lithuania

Oman

Tunisia

Uzbekistan

India

Sri Lanka

Jordan

Egypt

Croatia

Ghana

Armenia

Senegal

Barbados

Kazakhstan

Iraq

Thailand

Technical experts in ISO

50001 for the

Accreditation Bodies in

Ireland and Spain

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3

GEN Europe Clients

INTERNATIONAL ORGANIZATIONS:

PHARMA SECTOR:

PUBLIC SECTOR:

FOOD SECTOR: OTHERS:

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Consultant Team

• Liam McLaughlin, Project Lead

• CTO of GEN-Europe with 27+ years experience in energy management

• Leading ISO 50001 trainer for ISO and for UNIDO

• Developed and delivered training and lectures at various universities and representatives of national energy agencies from more than 100 countries

• Member of the technical committee TC 301 of ISO (International Organization for Standardization) since its foundation in 2009, is editor and reviewer of international energy management standards (ISO 50001 and derivatives, such as ISO 50002, ISO 50015)

• GEN-Europe technical experts (https://geneu.eu/en/the-team/)

• Ridah Sabouni, Energy Management Systems Expert

• Energetics Managing Director, Middle East & North Africa

• Over 10 years of energy consulting experience, working with the U.S. Department of Energy (DOE) Advanced Manufacturing Office, U.S. industry, and GCC industry

• Key contributor in the development of ISO 50001 programs and tools for the U.S. DOE, including the Superior Energy Performance program (SEP), 50001 Ready program, and the 50001 Ready Navigator implementation support tool

• Co-author of multiple ISO 50001 cost-benefit analyses

• “Assessing the Costs and Benefits of the Superior Energy Performance Program” (2013)

• “Development of an Enhanced Payback Function for the Superior Energy Performance Program” (2015)

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Outline

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• Introduction to ISO 50001• What is strategic energy management?

• What is ISO 50001?

• What are the benefits?

• ISO 50001 at AVOD• Motivation

• Timeline

• Barriers

• Benefits

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Traditional Approach to Energy Management:

Energy Roller Coaster Ride!

Source: UNIDO

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Traditional Approach to Energy Management:

Energy Roller Coaster Ride!

Source: UNIDO

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Senior management commit to program & an energy team is formed

Initial savings sustained

Low cost operational improvements first – then investment

Becomes company culture

Source: Kahlenborn et al. (2012), based on Lackner & Holanek (2007)

Strategic Approach to Energy Management

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What is Strategic Energy Management (SEM)?

A structured approach that elevates + integrates energy management into everyday business practices--as has previously happened for safety & quality

A culture for continual improvement of energy performance and efficiency

Involves all staff (CEO to facility engineers): Organizational culture change

Positions organizations of any size to achieve credible energy and cost savings through informed decision making

Enables implementation of energy saving practices for facilities, processes, equipment and operations—helps to improve understanding of processes

Typical Benefits Improved profits!Reduced energy costs = lower production costs = more competitiveMore engaged workforceNon energy benefits: the savings in average can be multiplied with 2.5

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ISO 50001–Energy Management Systems (EnMS)

• International standard that draws from best practices around the world.

• Developed with in June 2011 input from 56 countries, many countries now adopting it as a national standard.

• ISO 50001 was updated in August 2018

ISO 50001 specifies

requirements for establishing,

implementing, maintaining

and improving an EnMS.

Source: U.S. DOE Advanced Manufacturing Office

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Key Aspects of ISO 50001

Source: U.S. DOE Advanced Manufacturing Office

1. Energy policy: top management’s official statement of the organization’s commitment to managing energy

2. Cross-divisional management team led by a representative who reports directly to management and is responsible for overseeing the implementation of the energy management system (EnMS)

3. An energy planning process to assess energy uses, energy sources, and consumption and identify opportunities for improvement

4. Baseline of the organization’s energy use

5. Identification of energy performance indicators (EnPIs) that are unique to the company and are tracked to measure progress

6. Energy objectives and targets for energy performance improvement at relevant functions, levels, processes or facilities within an organization

7. Action plans to meet those targets and objectives

8. Operating controls and procedures to address all aspects of energy purchase, use, and disposal.

9. Measurement, management, and documentation for continuous improvement for energy efficiency

10. Internal audits and periodic reporting of progress to management based on these measurements

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Integrating ISO 50001 with Other ISO Standards

Source: U.S. DOE

Unique ElementsISO 50001

ENERGY POLICY

Energy review

Energy performance indicators

Energy baseline

Energy Objectives and Targets ( and Action Plans)

MANAGEMENT COMMITMENT

LEGAL AND OTHER REQUIREMENTS

ROLES, RESPONSIBILITY & AUTHORITY

COMPETENCE, TRAINING & AWARENESS

COMMUNICATION

OPERATIONAL CONTROL

MONITORING & MEASUREMENT

DOCUMENTATION

INTERNAL AUDIT

CORRECTIVE & PREVENTATIVE ACTION

MANAGEMENT REVIEW

DESIGN

PROCUREMENT

ISO 14001

ENVIRONMENTAL POLICY

Environmental aspects

Emergency preparedness

Environmental management program

Leverage Common & Similar Elements

ISO 9001

QUALITY POLICY

Customer focus

Planning of product realization

Customer-related processes

Control of nonconforming

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Areej Vegetable Oils & Derivatives S.A.O.C (AVOD)

• FOUNDED IN 1980

• Product Portfolio:

• Cooking oils, vegetable ghee, margarine, specialty fats, butter, mayonnaise, salad dressings and ketchup.

• AVOD leading brands:

• Minara

• Sohar

• Khafeef

• Jabal Akhdar

• Muscat Margarine

• Client base: Unilever, Emborg, Heinz, Hellmann’s, Knorr

• Number of employees: 750 (+55% Omanis)

• AVOD Capacity = 240,000 MT/yr

AVOD exports to +30 countries

Export market is 80% of total

business

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ISO 50001 Implementation at AVOD

AVOD Facility Description

• Average energy & water consumption (2015-2017)• Electricity 51 million kWhr

• Natural Gas 3.1 million m3

• Water 195,000 m3

• Already certified to ISO 9001, ISO 14001, Halal certification, FSSC 22000

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Motivation

• Cost-reflective tariff in Oman: 1 January 2017• AVOD electricity consumption (kWhr) stayed flat, but electricity

spending (OMR) rose by 62% from 2016 to 2017!

• Overall energy + water spending increased by 47% from 2016 to 2017

Source: Oman AER, Industrial Day Presentation (2017)

Cost-Reflective (Time-of-Use) Tariff

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Motivation

• Top management needed a proven method to get energy costs under control

?

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ISO 50001 Implementation Timeline

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Overall EnMS Highlights

• Total of 169 identified energy savings opportunities (ESOs)—including 102 in 2018

• Major Savings from ESO List:

• Condensate recovery for feed water

• Reduction of Compressed Air pressure

• Heat Recovery from hot water

• CIAD Compressor Centralization project

• Installation of 13 VFDs/VSDs

• Trained 160 AVOD staff on different aspects of the EnMS

• General energy management awareness training

• Steam technical training

• Compressed air technical training

• Refrigeration technical training

• Effectively measuring energy performance improvement

• Installation of 102 Electrical Meters

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Challenges Faced

• Data collection

• Data quality

• Documentation and recording of data/plans

• Availability of information

• Staff experience with energy management

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Results: Energy & Water Savings

• Overall Savings since January 2018 (year-to-date):

• Natural Gas: 469,385 m3 (18%)

• Water: 19,384 m3 (11%)

• Electricity: 4,341,534 KWh (8.6%)

• All savings normalized to take into account production and weather variables (using multi-variate regression models)

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Overall Results

• Top management needed a proven method to get energy costs under control

?

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Overall Results

• Reduced energy costs—for the long-term. Reduced CO2.

• Additional non-energy benefits: Improved process control, motivated staff, positive PR/marketing

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Thank you ً شكرا

• Project contact details:

• Eng. Ridah Sabouni• rsabouni@energetics.com

• https://www.linkedin.com/in/rsabouni/

• Eng. Liam McLaughlin• Email: liam.mclaughlin@geneu.eu

• https://www.linkedin.com/in/liammclaughlin/

• Eng. Imam Ergawi• Imam@avod.com.om

• http://avod.om/us-en/

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Backup Slides

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Development of an Energy Savings Opportunities (ESO) List

• The ESO list serves as the centralized location to detail all plant energy savings opportunities and action plans

• At AVOD, 169 identified energy savings opportunities (ESOs)—including 102 in 2018

• Each ESO includes details including:

• Identification date and who identified it

• Description of opportunity

• Estimate of potential energy and water savings and any relevant project implementation risks

• Implementation status (Idea, In-Progress, Rejected, On-Hold, Complete)

• Responsible staff

• Target/actual completion dates

• Measurement & verification details