Heads Up CIPEC Newsletter - June 2014
June 2014 Vol. XVIII, No. 6
CIPEC recognizes leaders in energy efficiency at Energy Summit with Leadership awards
“CIPEC is one of the most successful industry-government partnerships in Canada and events like this underscore its achievements,” said Andy Mahut, Chair of the CIPEC Executive Board and master of ceremonies. Mahut gave the opening speech for the annual CIPEC Leadership Awards at the recent Energy Summit 2014, the unique industry energy event held May 14 and 15 in Niagara Falls, Ontario.
The awards showcase the outstanding achievements of CIPEC companies that have stood out in their responsible and efficient energy use. The categories are corporate stewardship, process and technology improvement, energy performance management, employee awareness and training, and the implementation of an integrated energy efficiency strategy.
“In a fiscally- and margin-constrained world, energy efficiency is taking on an increasingly higher profile, especially for energy intensive industries […]. Energy efficiency has become, or is fast becoming, not just a mechanism for cost control and societal stewardship, but a means by which to create a competitive advantage for a corporation. No longer is energy efficiency simply a ‘tactical activity,’ it is a strategic imperative that is an intrinsic, continually improving competitive aspect of the way we do business,” stated Mahut.
In his speech, Mahut explained that CIPEC develops and delivers the tools and services that can help industry implement cost-effective energy efficiency improvements. Not only can the partnership support collaborative and innovative projects through Natural Resources Canada (NRCan), but it fosters the sharing of energy information, promotes best practices, and provides mentorship on matters such as ISO 50001.
Mahut went on to recognize new CIPEC leaders and highlight a number of companies that have achieved ISO 50001 certification since 2011. He then introduced Phillip Jago, Director of the Buildings Division at NRCan, who provided an overview of CIPEC’s contribution to Canada’s energy efficiency improvements.
Sharing his experiences working with CIPEC members during his tenure at NRCan’s Industry Division, Jago noted that, “over the past 40 years, CIPEC has helped to make Canada a leader in responsible energy use.” He added that CIPEC members have contributed to significant energy efficiency gains of 25 percent in the last two decades.
He concluded by saying that CIPEC and its network of 50 trade associations, including the Excellence in Manufacturing Consortium, has an important role to play in encouraging, promoting and realizing the benefits of energy efficiency in Canada.
Mahut then invited Sarah Stinson, Director of the Industry and Transportation Division at NRCan and Martin Vroegh, CIPEC Task Force Council Chair to present the CIPEC Leadership Awards.
“I am honoured to be here this evening to recognize significant achievements in responsible energy use and environmental stewardship within Canada’s industrial sector,” said Vroegh. Stinson agreed, noting that “we can be proud of all the industrial energy efforts underway that are improving our economic performance and ensuring a sustainable future for our industries.”
Vroegh noted that projects were selected based on energy performance, innovation, potential for broad application, and environmental contribution.
Here are the winners by category:
Corporate Stewardship Awards
This year, the award went to 3M Canada Company and Chrysler Canada Inc. This award recognizes companies that promote energy efficiency at the corporate level, such as the creation and engagement of an energy management team, the development of a corporate energy management plan or policy, or the implementation of a formalized management system.
3M Canada Company, which has ISO 50001 certification for its plants in Brockville and London, has implemented ongoing company-wide energy consumption improvements. Its corporate commitment to energy management and its aggressive targets for reducing energy consumption will save almost $2 million annually in energy costs. Between 2011 and 2013, 3M has reduced natural gas consumption by 4 million cubic metres, reduced electricity demand by 1150 KW, and has saved nearly 12 gigawatt hours (GWh) of electricity use.
Chrysler Canada Inc. (Brampton) has achieved ISO 50001 certification and has a well-established energy management system that encourages continual improvement practices. Most recently, they have replaced control panels with new smart systems that have improved heating, ventilation, and exhaust systems throughout their plant facilities. These efforts have achieved a 27 percent reduction in gigajoules per day (GJ/Day) of non-production and 9 percent improvement in space heating efficiency.
Process and Technology Improvements
EBI Énergie inc. – Depot Rive-Nord and Freshwater Fisheries Society of BC were recognized with an award for their efforts to reduce energy intensity in an industrial process by improving procedures and equipment.
EBI Énergie inc. – Dépôt Rive-Nord, located in Saint-Thomas, Quebec, built a new biogas co-generation plant, which supplies electricity to the grid. The project has reduced GHG emissions and water usage, while taking into account energy and environmental considerations related to grid reliance. Annual energy consumption for the plant is 41 percent lower compared to a baseline building performance.
Freshwater Fisheries Society of BC (FFSBC), with trout hatchery facilities in Clearwater, Abbotsford, Fort Steele, Summerland and Duncan British Columbia, developed innovative technology that significantly reduces water and electrical energy consumption for fish farming. The technology provides an option that is less expensive than off-the-shelf water recirculation pumping and results in a significant degree of energy improvement. Other hatcheries around the world are approaching FFSBC to apply the technology to their own processes. With this project, FFSBC is saving close to $20,000 in electricity and has achieved a 26.6 percent reduction in electrical intensity annually. It has seen an overall reduction of 44.2 percent in water use per year.
Energy Performance Management
This award recognized New Gold Inc.’s New Afton Mine for improving their energy performance through enhancements to their monitoring, measuring and reporting processes relating to the facility’s energy consumption.
New Gold Inc. (New Afton Mine), located in Kamloops, British Columbia, has ISO 50001 certification and is continuously monitoring, tracking, evaluating and verifying energy performance of its gold and copper mining facilities. New Afton Mine demonstrates its commitment to energy management through sustainable mining practices including, employee awareness and energy management information systems. These efforts have achieved a savings of nearly 4000 gigajoules of energy annually.
Employee Awareness and Training
CIPEC acknowledged KI Pembroke LP for raising employee awareness and understanding of energy efficiency and for promoting best practices through knowledge exchange.
KI Pembroke LP, situated in Pembroke, Ontario, has implemented energy saving measures to its facility including: upgrading compressor controls; improving plant ventilation systems and building envelop performance; and adding smart controls and timers. Many of these energy saving initiatives were the result of employee training and engagement. Overall, the company reduced energy consumption by more than 1.4 gigawatt hours (GWh) of electricity and more than 600 000 cubic metres (m3) of natural gas in 2013.
Integrated Energy Efficiency Strategy
CIPEC also recognizes PepsiCo Foods Canada and Barrick-Hemlo for improving energy efficiency at a facility or company-wide level through a range of initiatives as a result of an integrated strategy.
PepsiCo Foods Canada, including its eight manufacturing facilities, thirteen distribution centers, and headquarters facility in Mississauga, Ontario, has a corporate goal of achieving business and financial success through their Performance with Purpose program which includes protecting the environment and empowering people. This innovative approach to energy management engages employees in environmentally sustainable practices and facilitates investments in energy-efficient equipment. As a result, PepsiCo has achieved 1.4 percent electricity use reduction and a total fuel usage (manufacturing and fleet) reduction of 2.4 percent from 2011 to 2013.
Barrick-Hemlo which operates underground and open pit mines in Ontario, has implemented a strategy with a suite of energy reducing projects in its mining operations since 2011. In doing so, Barrick-Hemlo has reduced energy consumption and its environmental footprint. As a result of the company’s commitment to energy performance, they have managed to identify 10 000 megawatt hours (MW/h) per year in energy savings, trim its operating costs, and increase revenue by more than $5.7 million per year.
Finally, two awards recognized individuals who are studying or have recently graduated and have completed a project (theoretical or applied) that advances industrial energy efficiency in Canada.
Andre Pelletier, PhD candidate, Limerick Pulp & Paper Centre, Department of Chemical Engineering, University of New Brunswick, devised an enzymatic method to pre-treat wood chips to save energy in pulping processes. This project has the potential to lower refining energy needed to produce pulp by 36 percent while improving paper product quality and reducing GHGs.
Antony Hilliard, Ph.D. candidate, Mechanical & Industrial Engineering, University of Toronto, devised a unique energy performance diagnosis tool to complement existing methods that are currently being used by energy managers. It has potential to change perceptions and use of data in a way that integrates well with the industry’s energy monitoring standards.
All CIPEC award winners, along with all of those working toward energy efficiency within or across industries, underline the importance of collaborating and establishing a common goal of energy efficiency, as CIPEC has done and continues to do. As Mahut stated, “the time for our energy efficient future is now,” and the leadership shown by CIPEC award winners will get the industry there.
GE’s Ecomagination program addresses environmental challenges
“We face numerous challenges around resource supply and demand, which is creating serious economic and environmental strains,” said Simon Olivier, Vice President – Growth, Market Strategy and Business Development for GE Canada as he addressed participants during the opening keynote.
GE tackled this issue with an innovative initiative, the Ecomagination program, which aims to resolve environmental challenges while delivering efficiency and profitability to customers. GE will be investing $25 billion by 2020 in the program focused on three key concepts: 1) the industrial internet 2) the water-energy nexus, and 3) the rise of distributed power.
Olivier explained the industrial internet as “machines connected by and to the internet,” which will enable users to draw on millions of data points to predict and interpret equipment performance. “Based on real-time data, we will be ready for the unexpected, rather than waiting for the unexpected.” The power of big data and software analytics can turn data into profit margin and achieve what GE calls the power of one: each percentage of efficiency counts.
Olivier went on to discuss the water-energy nexus, noting the direct correlation between the consumption of energy and water. Up to 50 percent of global industrial water consumption is used to generate power, which represents “enormous opportunities to target water consumption for efficiency measures.” GE’s patented water evaporation technology, for example, recycles 97 percent of de-oiled water in the oil sands. “GE’s technology development will increasingly be gearing towards closing the loop on water use or removing water from the equation altogether.”
Distributed power is emerging as a big part of the solution to the challenge of old electricity infrastructure inefficiencies and new infrastructure demands. Olivier predicted that smaller, more flexible and highly efficient electricity generation technologies will account for 42 percent of additional global capacity, a doubling of the share of distributed power in two decades. He also noted the growth in the unconventional production of natural gas, which could make it the future fuel of choice for remote communities and resource extraction industries.
Conservationism and energy efficiency are not only environmental pursuits but are also technology and business profitability goals. “It is up to us to channel the discussion in a direction that draws on the know-how of all people, in industry, academia and government to ride this exciting new wave of opportunity. We as Canadians must rise as global leaders in determining how and how much we power our industries and our lives can give rise to prosperity and a safer, healthier environment for generations to come.”
Applying lean and green to your business
“Imagine a business that follows the principle of a tree, which wastes nothing and only has positive impacts on the environment,” said Chad Metcalf, President of Value Stream Solutions Inc. A business provides a product, and once it is no longer useful, it is recycled within the business instead of going to the landfill. During the “Adding Green to Your Value Stream” session, Metcalf explained that this way, the product contributes to the next production cycle .
“A green company is one that works in harmony with nature,” noted Metcalf. “It produces more energy than it uses, uses more waste than it produces, emits zero toxins, enriches the lives it touches and doubles the typical return.”
Metcalf discussed the triple bottom line in terms of profit, people and planet. “It’s not just about profit, but about the legacy the organization leaves behind.” It is difficult to measure the impacts on the planet and people in the same currency as profits – that is, in terms of cash.
A lean and green business philosophy recognizes and tries to avoid both waste and losses. For example, Metcalf listed “the eight deadly wastes,” which include overproduction, unused inventory, unnecessary transportation, overprocessing, defective products, and underutilized employees. Metcalf also discussed “green wastes” such as energy, water, materials, garbage, transportation, emissions and biodiversity, and their impact on sustainability.
“Green must become a business strategy,” stated Metcalf, noting that it can drive opportunity and innovation within the company, and ultimately increase profits. Companies adopt different strategies depending on their level of commitment. They could, for example, be compliant by only meeting the minimum requirements. Or they could adopt a transformational strategy, which entails creating game-changing innovations and moving from product development to a solutions-based business model.
Sustainability can be measured using a Life Cycle Assessment (LCA), which considers the environmental impact in producing and disposing of products, but can also be estimated by calculating the Total Cost of Ownership (TCO) – the total cost of building, equipment, energy, etc. – and Overall Equipment Effectiveness (OEE).
Metcalf suggested using Value Stream Mapping (VSM) to analyze sources of waste and opportunities for improvement. He also recommended implementing simple green initiatives by stressing preventative and predictive maintenance. “Use your lean eyes to see the world differently.”
Long-term, sustainable and profitable energy management at New Gold – New Afton Mine
“Energy management at New Afton is self-sustaining; something that is done by all employees on a day-to-day basis as part of what we do at New Gold,” stated Andrew Cooper, keynote speaker on Day Two of the Energy Summit 2014. Cooper is an Energy Specialist at the New Afton Mine in Kamloops, B.C., which recently became ISO 50001 certified.
“With low commodity prices and increasing offshore competition, energy efficiency improvement is one of the few places where profitability can be found,” said Cooper, noting the timeliness of the summit’s theme – efficiency meeting profitability. Moreover, improvements can be accomplished with minimal capital injection, innovation, creativity and, most importantly, energy management systems. “Even in a relatively small mine, like New Afton, a one percent reduction in energy costs can be worth hundreds of thousands of dollars annually.”
Cooper led participants through his company’s journey towards the ISO 50001 Energy Management Systems standard certification, and shared his lessons learned. “Project-based energy management is neither self-sustaining nor is it continual improvement of energy performance; there has to be something more than just projects. Energy management must become part of the fabric and of the systems of an organization, and not be dependent on any one person. That is why the ISO 50001 standard, with its focus on continual improvement and energy management integration, was appealing,” he noted.
Having someone dedicated to energy management was central to the mine’s ability to become ISO 50001 certified. New Afton benefitted from Energy Specialist funding offered by BC Hydro. “This was a significant value proposition.” Implementing an Energy Management Information System (EMIS) was also essential, as was the installation of sub-meters, their correct calibration and the collection and manipulation of data, using data historian software.
The most useful resource, said Cooper, was the free EMIS Planning Manual & Tool available on the Natural Resources Canada website. Cooper also attended an NRCan Dollars to $ense workshop on Energy Management Information Systems. The New Afton Mine benefitted from the support of an outside expert and NRCan cost-shared assistance for ISO 50001 implementation. This helped with project justification and accountability, Cooper noted.
EMIS was completed at the end of December 2012 and with this foundation in place, it was time to get moving with the ISO 50001 standard implementation process. “Like other ISO standards, ISO 50001 works on the Plan-Do-Check-Act Cycle. It all starts with an energy policy which signifies commitment to manage energy and continually improve energy performance and use resources responsibly,” Cooper said.
He also noted that implementing EMIS and the ISO 50001 standard was basically “a sales job.” To get the support of management and employees, he had to sell the benefits face-to-face. “Let them know what this will do for them, how it will make their job easier, how it will improve profitability and how it will enhance the company image.”
The ISO 50001 certification benefits are wide-ranging and include the great publicity that New Afton received as the first North American mine to implement the standard. And then there are the energy savings, which New Afton has targeted at 3 percent yearly.
Cooper summarized some of the main lessons learned:
- Good energy data is necessary and extremely useful.
- Much about energy management and energy use can be learned from the energy planning process.
- An employee suggestion program is a good way to engage staff and collect good ideas.
- Most energy efficiency projects also have operational, environmental and safety benefits.
Thanks to the implementation of EMIS and the ISO 50001 certification – and the lessons learned along the way – the New Afton Mine achieved an AA rating for the Mining Association of Canada’s Toward Sustainable Mining, Energy and Greenhouse protocol.
RETScreen® – Empowering Cleaner Solutions
Undertaking viable energy efficiency measures and assessing ongoing energy performance are key steps in implementing an energy management system. The RETScreen Clean Energy Management Software can help by determining the technical and financial viability of energy efficiency improvements and verifying a facility’s ongoing energy performance. Participants at the RETScreen session were provided with an overview of the RETScreen Suite Software (including RETScreen 4 and RETScreen Plus), with a dedicated focus on the Energy Efficiency Project Analysis Model and the Performance Analysis Module.
Dinesh Parakh, Program Advisor for RETScreen International CanmetENERGY, introduced the software, which has had a global impact since 1996. He focused on what the software can do, who is using it, and how it is being used to advance clean energy worldwide.
Gregory Leng, Director at RETScreen International, CanmetENERGY, then provided an overview of the RETScreen 4 clean energy project analysis software, explaining that it follows a five-step analysis process, which includes analyses of energy, cost, emissions, finances, and sensitivity and risk. He noted that RETScreen 4’s energy efficiency model analyzes fuel consumption data, and determines how to maximize end-use efficiency by minimizing usage and optimizing the supply (e.g., a fuel switch). The software has two analytic methods: method 1 is a “pre-feasibility” analysis offering “a quick and simple analysis for experienced users, while method 2 is a much more detailed “feasibility” analysis.
Leng then walked participants through the project database, which features dozens of pre-configured, modifiable templates and case studies. “You can also evaluate different fuel types and select your efficiency measures. Additionally, RETScreen 4 allows you to look at financing measures beyond simple payback,” he noted.
At the beginning of the second part of the session, Parakh introduced some of the extensive and free online training resources available to help users learn how to use the software. The RETScreen Training Material and Resources include:
- extensive webcasts, presentation slides, and instructor notes
- numerous case studies including assignments, completed solutions, and information about how the projects fared in the real world
- a detailed user manual
- an e-textbook which provides a detailed description of the algorithms used in the models
- Clean Energy Legal & Policy Toolkits, including sample legal and policy documents
- the RETScreen Marketplace, listing companies and organizations around the world using RETScreen or providing RETScreen services
Leng proceeded to introduce RETScreen Plus, which helps users monitor, analyse and report key energy performance data to facility operators, managers and senior decision-makers. RETScreen Plus can be used to measure and verify energy consumption or energy production and generation. The tool also supports the “check” phase of a Plan-Do-Check-Act energy management system (EnMS).
Moreover, it works according to any timeframe and can access daily weather data from around the world via NASA. The software also allows users to model baseline energy performance, target improvements, and compare new data to the baseline or targets.
Leng concluded by revealing that in the near future, RETScreen Plus and RetScreen4 will be merged into RETScreen Expert, the next generation of the RETScreen software.
Growing social value in companies
“Companies are increasingly devising strategies to grow social value,” commented Valerie Chort, Enterprise Risk Partner and national Sustainability Team Lead at Deloitte, during the “Valuing Social Licence to Operate”session. Channa Perera, Director of Sustainable Development at the Canadian Electricity Association (CEA) agreed, noting that social licence to operate is also an important driver for CEA’s Sustainable Electricity Program.
Social licence to operate refers to the community’s consent for a business or project to exist, and allows organizations to easily predict and measure community concerns about their projects. It is becoming integral to sustainable development.
“The focus on sustainable development is here to stay,” said Chort, noting that disclosure is a key component. There is increasing pressure for disclosure from investors and rating agencies but Chort advised participants “not to do corporate sustainability disclosure just for marketing purposes.”
The practice of corporate social responsibility (CSR) is now moving to social and shared value creation. “The concept of shared value is being used by corporations to enhance their competitiveness while advancing social benefits in communities they operate in,” said Chort.
Companies need to devise strategies for growing social values, and many are already doing so by creating win-win situations. Novartis, for example, is engaging local communities in India in commercial innovation initiatives that target improved health outcomes. Nestle works with small-scale coffee farmers in Africa and Latin America. They provide farming advice and access to loans and under-delivered social services.
The CEA’s Sustainable Electricity Program, which encompasses environmental, social and economic pillars of sustainability, is a core part of the sector’s effort to earn its social license to operate in communities across Canada. The program has made implementation of the ISO 14001 Environmental Management Systems (EMS) standard a condition of CEA membership. The CEA’s recent launch of the Sustainable Electricity CompanyTM brand designation, based on both ISO 14001 and ISO 26000 Guidance Standard on Social Responsibility, is also gaining momentum, with several of its members being officially designated as sustainable electricity companies.
Key elements of the program include a policy on corporate responsibility, key performance metrics and reporting, external verification of sustainability performance, and a public advisory panel.
Perera provided some specific examples of member company sustainability initiatives including Newfoundland and Labrador Hydro’s investment in wind-hydrogen-diesel energy, Ontario Power Generation’s move to convert the Atikokan coal-fired station to biomass, and Saskatoon Light and Power’s construction of a new landfill gas-to-energy project.
Perera concluded with an overview of the electricity sector’s VISION2050.ca, which makes specific recommendations on the acceleration of innovation and customer management of electricity, the implementation of financial instruments for carbon reductions, the use of electric vehicles, and the expansion of collaboration with the U.S.
Tips on successful sustainability initiatives session
Energy Summit participants in the panel session, “Sustainability Prospects: Best Bets for Your Company,” came away with practical advice on implementing sustainability initiatives. Doug Dittburner from Campbell’s Soup, Chih-Ting Lo, Barrick-Hemlo and Peter Rowles from ICF Canada shared their experiences and lessons learned during an informal panel discussion.
Adam Vaiya from Partners in Project Green chaired the session, commenting on the link between industry and sustainability in his opening remarks. “Given the challenges of climate change, it is absolutely essential that the world’s industrial energy users recognize the triple bottom line benefits of embracing sustainability as part of their corporate culture and in their everyday operations.”
Climate change can pose risks for industry and some of these could be addressed with sustainability initiatives. Rowles noted that the more companies plan and prepare now, the better and greater their competitive advantage and fiscal stability will be in the future. He has seen “the transition into profitability” after the adoption of sustainability initiatives. “There is a definite link between the bottom line and reducing energy consumption and environmental impact.”
Lo said the biggest risks of climate change are higher environmental and operational costs. In mining in particular, maintaining production means increasing energy intensity. In the food and beverage sector, Dittburner mentioned that power outages and other utility issues could pose serious risks.
Industry is already integrating energy considerations into daily operations. As Dittburner noted, many organizations have energy teams as well as sustainability and corporate social responsibility (CSR) plans. Moreover, some companies are investing in renewable energy such as biogas digesters and solar technology. Rowles also noted that the Six Sigma management approach now incorporates energy and companies are increasingly integrating sustainability and energy use into their key performance indicators (KPIs). Mining companies report energy aspects as part of the Global Reporting Initiative, a leading sustainability reporting framework, added Lo. “Implementing energy efficiency projects comes down to economics. In the mining industry, it’s an imperative as it takes more energy to mine increasingly scarce ore,” noted Lo.
The best sources of information for industry-specific sustainable solutions are sector-based associations, utility account managers, Partners in Project Green, CIPEC and roving or embedded energy managers. Such valuable resources can result in significant energy savings. Barrick-Hemlo saved more than $1,700,000 in annual electricity costs on four major projects: compressor retrofits, ventilation-on-demand, efficient water pumping and electricity demand management. Rowles added that simply optimizing start up and shut down schedules can yield significant savings.
Potential projects are identified in various ways, at the corporate or the facility level, through process integration studies, employee engagement, energy teams and continuous improvement frameworks. “However, it is critical that time be allocated for people to find projects and know that funds are available to implement them,” noted Dittburner.
Project ideas are the first step; however, ideas still have to be sold to upper management. High-level commitment is required, starting at the planning stage, and buy-in can be further ensured by presenting operational benefits with energy savings, showing health and safety benefits and being conservative with savings estimates.
Some companies incorporate energy accountability into the performance metrics for staff. “At Campbell’s, for example, management and all employees have energy use per case of product costs as part of their bonus. They receive a financial benefit when the facility beats the target for both energy and water use per case,” explained Dittburner.
Panelists agreed that while the success of sustainability initiatives is not guaranteed, it can be helped by following the ISO 50001 Energy Management Systems standard’s framework. Customized continuous improvement and sustainability plans, small, quick-to-respond energy teams, the collection of good energy data and the re-investment of energy-cost saving projects can all contribute to success.
Dollars to $ense Energy Management Workshops – Summer schedule
Date: September 20
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
Notice: Please allow from eight to 10 weeks from the planning to the delivery of a customized Dollars to $ense workshop.
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