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Working with Private Sector to Deliver Energy Savings in Manufacturing

1st October 2015

Agenda

› Background to the Carbon Trust

› UK Industrial Emissions and Key Drivers for Energy Efficiency

› Industrial Energy Efficiency Programme

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Agenda




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The Carbon Trust has accelerated sustainable, low carbon development for more than 13 years

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Advice Footprinting Technology

We advise businesses, governments and the public sector on opportunities in a sustainable, low carbon economy

We measure and certify the environmental footprint of organisations, products and services

We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power

By leveraging the Carbon Trust’s integrated service offering , we have Helped our clients save £4.5bn and 47m tons of CO2

Catalysed over £300m of investment into low carbon technologies and businesses

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UK Total emissions from industry are c.190Mt. 51% comes from the most emitting industries, but other industries are still important

Note: 1 Consists of direct process emissions, combustion and electricity emissions, and non-energy use of fuels .2 The DUKES analysis used for the data above uses a narrow definition of steel related emissions which does not include the emissions related to sintering and coking. In the analysis in this report we have used a broader definition and hence emissions are greater than those shown here for steel.

Source: Digest Of UK Energy Statistics (DUKES), Office of National Statistics' Purchases Inquiry (PI)

% CO2 emissions

% CO2 emissions

18% 9% 7% 4% 2%5% 5% 1%

c 51%

49%

Mid-energy intense industries have fewer drivers to deploy energy efficiency measures

› Energy efficiency can help increase competitiveness

Mid Energy Sectors

High Energy Sectors › Energy efficiency can help increase competitiveness

› High cost of energy (as a % of product cost)› EU ETS requirements› Energy managers and directors in place

Drivers Barriers

› Energy costs low (2% and 5% of product cost) › Limited understanding of process specific

energy use› Lack knowledge of innovative energy efficiency

measures› Policy measures that impact them (CCA, CRC)

will not drive investment

› High investment in capital with 20+ year life› Risk averse industries less willing to deploy new

solutions› Retrofit opportunities have less impact on

reducing CO2

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A £15m Industrial Energy Efficiency Accelerator (IEEA) set up to identify near market innovation to reduce energy use.

Investigation and Solution Identification

Demonstration

Replication

Examination of specific processes in depth to understand energy use and interfaces with other systems.

Demonstration of the cost-effectiveness and carbon saving potential of innovations, such as equipment upgrades and process optimisation.

Dissemination of best practicesthroughout the industry sector.

Identification of solutions that improve energy efficiency based on this investigation.

Engage with key influencers in industry to overcome barriers to adoption of innovations.

x 14 sectors

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100% Government Funded

40% ‐ 60% Government Funded

100% Government Funded

We worked with 14 sectors with a range of emissions

10Total carbon footprint of 14 sectors is over 12 MtCO2

Sector Annual emissions(estimation in 2010)

Paper 4,700,000 tCO2

Contract Catering 1,300,000 tCO2

Bricks 1,000,000 tCO2

Dairy 860,000 tCO2

Asphalt 830,000 tCO2

Microelectronics 710,000 tCO2

Animal Feeds 620,000 tCO2

Industrial Bakery 570,000 tCO2

Metalforming 450,000 tCO2

Brewing 450,000 tCO2

Plastic Bottle Blow Moulding 400,000 tCO2

Malting 340,000 tCO2

Laundries 280,000 tCO2

Confectionery Stoving 60,000 tCO2

Collaboration was key, with 100 manufacturers, trade associations, equipment suppliers and start-ups involved

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Manufacturers Equipment Suppliers and Start‐ups

Trade Associations, Academia and Consultancies

Stage 1

Each of the 14 sectors presented with massive opportunities for innovative energy reduction

Opportunities in Animal Feeds Cost / Plant

Payback Sector CO2Savings (t)

Active Energy Management £30,000 < 1 year 30,000Collecting, analysing and reporting comprehensive energy management informationProcess Optimisation £10,000 1 year 20,000Sophisticated analysis leading to optimisation of process parametersMoisture Control £30,000 < 1 year 5,000Advanced moisture control systems to improve moisture level

Energy Efficient Formulations £30,000 < 2 years 30,000

Choose formulations to minimise raw material cost and energy cost to process

Energy Efficient Presses £100,000 4 years 10,000

Newer energy efficiency models claim energy savings of 25%

EquipmentInnovation

Product Innovation

Process Innovation

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Stage 1

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But even best practices are not being deployed (shown in green for the Dairy sector)

Over 150 best practice opportunities yet to be fully deployed

Stage 1

0%

10%

20%

30%

40%

50%

Min Max

Sector Carbo

n Savings

Potential

Average energy savings of 29% identified, totalling 3-4mtCO2

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"Good Practice"

"Innovation"

Stage 1

18%

11%

Average

4 sectors with 5 projects that are in demonstration phase

Asphalt/AggregatesDevelopment of low temperature asphaltsHybrid turbocharger for quarry vehicles

Animal feedOptimising formulations for energy efficiency

DairiesUse of ice pigging for cleaning pipes

BakeriesImproved combustion efficiency and heat recovery

Dissemination and replicationTechnical case studiesStandards & specificationsSite visitsBest practice guidesIndustry steering group & roadmapArticles in trade press

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Stage 2 and 3

Lead Organisation: Lafarge Tarmac

Partners: Nynas, Atkins, MIRO, TRL

Project Cost: £620k

Carbon Trust Funding: £275k

Project Objective › Hot mix asphalt is generally produced at 180°C

› Develop low carbon asphalt (90°C) through demonstration of the technical viability in situ

Status› Project demonstrated on a road in England› Specification now developed so that local authorities

can use in procurement tenders› Estimated Savings: £46m over 10 years (assumes 20%

adoption in 10 years (from 1% today) › Estimated UK CO2 savings: 246,000 tonnes over 10

years (equivalent of taking 345,0001 cars off the road for 1 year)

Note 1: Assuming average car drives 5,000km/year

Lefarge Tarmac project on Low Temperature Asphalt is complete and a technical specification produced

Case Study

A number of high level findings emerged from the IEEA

› Wide collaboration with trade associations and the sector enables the greatest chance of wide sector replication

› The innovations require projects to be financially de‐risked in order for companies to consider deploying them as they are as yet unproven

› Equipment suppliers are often willing to share the risk of deploying new technology to benefit from future sales

› Total energy savings potential of over £150m annually across 14 sectors

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