Heads Up CIPEC – Volume 19, Issue 1

Volume 19, Issue 2

CIPEC Task Force Council welcomes two new sector chairs

Photo of Michael Kelly

Michael Kelly, Eastern Ontario Sector Chair, General Manufacturing.

CIPEC is welcoming two new sector chairs who are keen to expand industry awareness of the many resources and tools the partnership offers. Michael Kelly of KI Pembroke takes on the role of Eastern Ontario Sector Chair for General Manufacturing and Russell Blades of Barrick Gold has joined CIPEC as the Mining Sector Co-chair.

“I have always been passionate about energy efficiency,” says Kelly, KI Pembroke’s Process Engineer and Energy Manager. A graduate from Lakehead University’s mechanical engineering program, he has been with KI Pembroke for five years. In that short time, Kelly has devoted a lot of time to energy efficiency improvements and to raising awareness about responsible energy use within the company.

“I believe that CIPEC can fill the many gaps that still exist across industry in terms of energy efficiency,” says Kelly. As sector chair, he will promote best practices sharing within the general manufacturing sector and industry at large.

Photo of Russell Blades

Russell Blades, Mining Sector Co-chair.

Blades, Manager of Energy and GHGs at Barrick Gold, has been in the energy business for over 30 years. A graduate from the Energy Systems Engineering program at Mohawk College, Blades has gained broad experience from working with utilities to being VP of business development at AMEC Foster Wheeler where he managed the power and processes portfolio.

“Energy is a big item in our sector, and we are starting to incorporate energy-efficient systems and equipment.” Blades notes that the sharing of experience within CIPEC will help the mining sector become increasingly more efficient, adding, “I hope we can create more collaborative efforts in the short term that will lead to opportunities to reduce energy use and diversify our energy supply in the long term.”

Energy meetings at ArcelorMittal offer networking and best practices sharing

ArcelorMittal is the world’s largest steel and mining company with more than 230,000 employees and operations in 60 countries. The sheer size and diversity of the company’s employees and sites offers its people a tremendous opportunity to share knowledge and best practices relating to all aspects of its business in many different areas around the globe.

The company’s international roundtables represent “networking opportunities that encourage contacts among plants to share information, best practices and expertise on energy efficiency and other issues,” explains Sonya Pump, Senior Energy Specialist at ArcelorMittal Dofasco in Hamilton, Ontario, Canada’s largest producer of flat rolled steel. She adds that these meetings also help further the company’s corporate goal of reducing its CO2 emissions by 8 percent from their 2007 level by 2020.

The company holds two levels of energy-focused meetings – a continental roundtable annually and a knowledge-management program (KMP) meeting every two years. Employees and managers involved in energy-related projects at ArcelorMittal Dofasco take part in the Americas Energy Roundtable. The most recent one was held in September 2014 in Hamilton and included 32 participants from 19 plants in Canada, the U.S., Mexico and Brazil.

Pump also attended a December 2014 KMP meeting in Ghent, Belgium that presented an opportunity for her to discuss energy management information systems (EMIS) with representatives from other plants that have already implemented various EMIS systems. “My discussions with managers from Brazil, Spain, Belgium and France about their current systems helped me define the scope and needs of the EMIS system that we plan to implement in Hamilton.” Fifty-six participants from 37 plants in Spain, Kazakhstan, Brazil, Luxembourg, the United States, South Africa, France, Belgium, Ukraine, Morocco, Czech Republic, Germany, Poland, Bosnia, Romania and Canada attended this meeting.

All of the meetings have a number of objectives including discussions about safety best practices, the replication of successful energy projects and initiatives, as well as the standardization of best practices. “Thanks to these meetings, we have created a list of at least 26 standardized best practices across plants including such topics as steam trap management and variable frequency drives. There are also corporate energy best practices that embed energy efficiency within each plant.”

The meetings also serve to update participants on issues such as energy pricing around the world, energy trends, local and global research updates, and global technology office updates and initiatives. Pump adds that internal benchmarking and gaps among plants are also discussed as are ideas and opportunities on how to close these gaps. “Every plant has 20 minutes to present their energy initiatives,” notes Pump, which have ranged from electrical metering to compressed air studies.

Pump adds that the North American group also has a monthly Web discussion on research initiatives and a bi-monthly world-wide conference call where best practices are shared. “At each face-to-face meeting, participants commit to follow up on two to four practices or projects,” says Pump. “We follow up on these during Web and conference calls throughout the year and while some may not translate into implementation they provide ideas to test in each plant.” The commitments are also tracked by the company’s Chief Technology Office to show the value of the meetings.

New CIPEC Leader Vision Extrusions Group looks to green its facility and the industry

“We want to be as efficient as possible and become leaders in our industry,” says Behdad Bahrami, Energy Manager at Vision Extrusions Group. “We started by manufacturing the most efficient windows on the market, and then undertook a number of projects to show that the plastics industry can be green.” He adds that “PVC products already help improve efficiency in their end-use, but their manufacturing could also be as green as possible.”

Vision Extrusions Group is the PVC Extrusion arm of a large group of manufacturers in the Vaughan West Business Park in Ontario. Vision produces a wide range of vinyl products used in the building and construction industry. The company’s manufacturing facility in Woodbridge, Ontario, employs around 500 employees and consists of two buildings that are over 55,000 square metres.

The company started benchmarking its energy and resource use about four years ago in order to compare itself to similar companies and to its own historic energy use. “Energy benchmarking helped us understand where we were and identified the low-hanging fruit,” says Bahrami. Then, a whole slate of energy projects were completed thanks to Ontario’s SaveONenergy Retrofit program. “We have spent over $1 million in energy efficiency upgrades over the past two years, and the majority of the projects had payback periods of less than 1.5 years”.

Projects include a facility-wide upgrade to LED lights. The facility’s pumps have also been retrofitted with more efficient models and variable frequency drives (VFDs). “This increased the efficiency of each line significantly without affecting production,” says Bahrami. When the facility was expanded, the company installed the highest possible efficiency lighting, chillers, extruders and equipment. “The various other efficiency retrofits we’ve done have shown that it’s worth going for the more efficient models from the get-go.” Moreover, the facility is also part of Ontario’s Demand Response program.

In addition to electricity savings, Vision is also working to conserve water. “We now have an internal water recycling system, which has saved us a significant amount of water.” Additionally, the company recycles 100 percent of its plastic waste, which is reground and re-extruded.

In 2012 the company started the Green Elephant initiative, which is designed to educate operators and employees about the need for energy efficiency and to involve them in energy issues. Additionally, employees will be receiving energy efficiency training in the future.

Over the next year the company is looking at various other retrofits that will create significant savings while leaving production unaffected. For future consideration, a detailed engineering study on the feasibility of cogeneration systems was executed with the Independent Electricity System Operator (formerly OPA).

CHP system coming to St. Marys Cement plant and head office in Toronto

Spring 2015 will be a busy time at St. Marys’ CBM Leaside, Toronto Ready Mix plant and the Corporate Head Office with the installation of a new 800-kilowatt combined heat and power (CHP) system. Martin Vroegh, the company’s Director of Environmental Affairs, explains that the decision to proceed with this project was easy, given the economic and reliability benefits.

The CBM Leaside plant is part of St. Marys Cement Inc., a division of Votorantim Cement North America which is a subsidiary of Votorantim Cementos of Brazil. The location also houses an 1858-square-metre office building and a laboratory, where about 200 people are employed. All buildings on the site are currently powered by electricity notes Vroegh.

Vroegh explains that CHP systems offer high thermodynamic efficiency – in the range of 80 percent or more. The generator that will be installed has an efficiency of about 40 percent, but the heat capture increases that efficiency dramatically.

The surplus heat from the generator will be used to heat the office building and, via an absorption chiller, will also provide air conditioning during the warm season. Vroegh sees office buildings as “the perfect customers” for CHP systems since they heat or cool 24/7. “The CHP system will provide 10 percent commercial back-up power and also allows us to curtail grid demand without sacrificing core business performance and production,” says Vroegh.

“One of our goals is to drive efficiency, and this system will allow us to address that,” says Vroegh. CHP systems also represent a reliable power supply that will allow CBM to continue production in the event of a power failure. The same reasoning is behind a proposal for a larger-scale CHP system at the cement plant in St. Marys, Ontario. Certain units, such as the shipping department, could be isolated to continue shipping product during any power interruption scenarios.

The on-site solution provided by MCS Energy Inc. included a very unique economic model based on selling kilowatts to St. Marys. This arrangement enables St. Marys to derive all of the benefits of on-site cogeneration with no capital investment on their part and allows them to keep their energy costs within their operating budget, where they belong. MCS Energy is providing the on-site CHP solution as a turnkey operation and will be commissioning the system in the coming spring of 2015.

How food and beverage processors can close the loop

Closing the Loop – a collaborative initiative of the Biogas Association – can help in two ways.

First, food processors can send their organic waste to biogas facilities across Ontario. This enables food waste to be recycled back to the soil, while extracting the energy content of the material first, and turning it into clean, renewable energy. This simple and cost-effective action results in impressive greenhouse gas reductions.

Second, food processors can consider using a blend of conventional compressed natural gas (CNG) and renewable natural gas (RNG) – which comes from food recycling – for their trucking needs. A 90/10-percent blend of CNG and RNG provides a reduction of over 31 percent of greenhouse gases, and significant financial savings over diesel fuel.

For more information on the Closing the Loop program, visit www.biogasassociation.ca/bioExp/index.php/infopage_close_the_loop.

Updated Classes 29, 43.1, and 43.2 and CRCE tax savings guide now available

For a limited time, companies that invest in manufacturing and processing equipment may take advantage of Class 29 in Schedule II of the Income Tax Regulations (the Regulations). This tax incentive allows for the capital costs of certain manufacturing and processing equipment that would otherwise qualify for a 30-percent per year capital cost allowance (CCA) on a declining balance basis under Class 43 to be written-off at 50 percent per year on a straight-line basis under Class 29. This incentive is available for equipment acquired after March 18, 2007, and before 2016.

Companies that invest in clean energy generation and energy conservation equipment such as cogeneration systems, photovoltaic panels, wind turbines and bio-fuel production equipment may be able to write-off the capital costs of such equipment at accelerated CCA rates under Class 43.1 or 43.2 in the Regulations.

Under Class 43.1 or 43.2, the capital costs of qualifying equipment can be written-off at 30 or 50 percent per year, respectively, on a declining balance basis. Without these accelerated write-offs, many of these assets would be depreciated for income tax purposes at annual rates between 4 and 30 percent.

The eligibility requirements for Class 43.1 and 43.2 are generally the same, except that for Class 43.2, equipment must be acquired after February 22, 2005, and before 2020 to be eligible, and fossil-fuelled cogeneration equipment must meet a higher efficiency standard to qualify.

NRCan is the technical authority for Classes 43.1 and 43.2. Further information on which equipment qualifies for Class 43.1 or 43.2 is provided in the Technical Guide to Class 43.1 and 43.2, which may be downloaded from the Tax Savings for Industry Website at the link below.

Economic Action Plan 2014 proposed to expand Class 43.2 to include water-current energy equipment and a broader range of equipment used to gasify eligible waste.

In addition to Class 43.1 or Class 43.2 CCA, the Regulations allow expenses incurred during the development and start-up of renewable energy and energy conservation projects – Canadian renewable and conservation expenses (CRCE) – to be fully deducted in the year they were incurred, carried forward and deducted in future years, or financed through flow-through shares. Further information on the project expenses that qualify as CRCE is provided in the Technical Guide to Canadian Renewable and Conservation Expenses (CRCE), which may be downloaded from the Tax Savings for Industry Website at the link below.

To qualify as CRCE, expenses must be incurred for a project in which it is reasonable to expect at least 50 percent of the capital costs incurred would be capital costs for equipment that is described in Class 43.1 or Class 43.2.

For more information on tax savings for industry, visit nrcan.gc.ca/energy/efficiency/industry/financial-assistance/5147.

 

New CIPEC Leaders

Electrical and Electronics Sector

Wipro Technologies – Mississauga, Ontario

Food and Beverage Sector

Cermaq Canada Ltd. – Campbell River, British Columbia

Skjodt-Barrett Foods Inc. – Brampton, Ontario

Sons Bakery – Calgary, Alberta

General Manufacturing Sector

Vision Extrusions Group – Woodbridge, Ontario

Mining Sector

Mines Agnico Eagle Limitée, division LaRonde – Rouyn-Noranda, Quebec

Plastics Sector

Amhil Enterprises – Mississauga, Ontario

Valley Acrylic Bath Ltd. – Mission, British Columbia

 

Dollars to $ense Energy Management workshops – spring schedule

Energy Efficiency Financing
Date: March 28
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Energy Management Information Systems
Date: March 31
Location: Sarnia, Ontario
Offered in collaboration with Lambton College
To register, contact Ada Houle, Contract Coordinator
519-542-7751 ext: 3800, 800-791-7887 ext: 3800
ada.houle@lambtoncollege.ca

Recommissioning for Buildings
Date: April 7
Location: Sarnia, Ontario
Offered in collaboration with Lambton College
To register, contact Ada Houle, Contract Coordinator
519-542-7751 ext: 3800, 800-791-7887 ext: 3800
ada.houle@lambtoncollege.ca

Energy Monitoring
Date: April 8
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Energy Management Planning
Date: April 23
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Energy Efficiency Financing
Date: April 29
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Spot the Energy Savings Opportunities
Date: May 1
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Energy Management Planning
Date: May 4
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Spot the Energy Savings Opportunities
Date: May 5
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Energy Monitoring
Date: May 6
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Energy Management Information Systems
Date: May 7
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Recommissioning for Buildings
Date: May 8
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Energy Efficiency Financing
Date: May 9
Location: Vancouver, British Columbia
Offered in collaboration with Langara College
To register, call the Langara College’s Continuing Studies Registration Office at 604-323-5322

Energy Management Information Systems
Date: May 20
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Recommissioning for Buildings
Date: June 15
Location: Guelph, Ontario
Offered in collaboration with the Upper Grand District School Board
Register on the Dollars to $ense registration page

Notice: Please allow eight to 10 weeks from the planning to the delivery of a customized Dollars to $ense workshop.

Complete list of industrial events

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 the editor, Jocelyne Rouleau, by e-mail at jocelyne.rouleau@nrcan-rncan.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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