Conducting an Energy Audit

How to cut costs in the second largest energy-using industry

By Dr. Ahmad R. Ganji, P.E., Ber eley A!!lied "cience # Engineering $nc., "an %rancisco "e!tem&er '(, ()))
The chemical industry, the second largest energy-user in American manufacturing, accounts for 19% of the industrial power consumed in the United States. It s also one of the nine !industries of the future! "I#$% identified &y the U.S. 'epartment of (nergy, where impro)ed energy efficiency could significantly affect the economy and the en)ironment. #n a)erage, energy costs constitute a&out 9% of the )alue of shipments in the chemical industry. (nergy use )aries greatly &y process and product, &ut features held in common across differing segments include purchasing, deli)ery and consumption of energy, as well as energy cost sa)ings. So, where are the sa)ings* +illing ,hanges in utility &illing rates can &ring cost cuts that seem li-e found money. Utility companies &ase customers &ills on rate schedules. $actors affecting a company s rate schedule may include local or state regulations. type of customer "industrial or agricultural, for e/ample%. le)el of use "-0h of electric usage or therms of gas usage per year%. ma/imum draw from the utility grid "also called !demand!%. and whether the company can afford interruptions with ad)ance notice. Is your company on the optimum rate schedule* The schedules aren t cut-anddry. 1et a description of them from the utility, or loo- them up on the Internet. As- a utility account representati)e to e/plore alternati)e schedules. ,onsulting firms determine the appropriateness of the rate schedule and share potential &enefits from it. Issues may include2

3 4rimary )s. secondary ser)ice, referring to the )oltage of the ser)ice deli)ered to your facility. 4rimaryser)ice is often cheaper. 3 Time of use )s. nontime of use ser)ice. 3 ,ore )s. noncore, referring to the annual consumption limits the utilities set. 3 Interrupti&le )s. noninterrupti&le ser)ice. Interrupti&le ser)ices are always cheaper. (nergy pro)ider Is your company &uying energy at the lowest price* In some states, you ha)e the option of &uying the energy as a commodity from a )ariety of )endors who are licensed to do &usiness. If your state has deregulated the energy mar-et, then your local utility is pro&a&ly o&ligated to deli)er the energy to your site at a prescri&ed rate. In some cases you may e)en &e a&le to negotiate some aspects of the deli)ery rate with your local utility if you ha)e enough le)erage with them. 5ost third-party energy pro)iders will want a long-term contract, so ma-e sure to understand all the pro)isions. The local utility and state energy office may &e a&le to help. 4lant utilities 4lant utilities "such as compressed air, hot water, steam and chilled water% are often a ma6or source of energy consumption, and they re a place to start the energy cost sa)ings. Try to match the utility with the company s needs. $or e/ample, if you need 78 psig "corresponding to 99:;$% saturated steam, you should not produce 188 psig steam and then throttle it down to 78 psig. 4roducing steam at higher than the re<uired pressure wastes pumping power and lowers &oiler efficiency. In another e/ample, a plant needs :7 psig air pressure at the point of use, and a near&y compressor is producing air at 1=8 psig, pro&a&ly &ecause the plant doesn t ha)e enough storage capacity or simply hasn t paid attention to the su&6ect. >ou can lower the compressor discharge pressure to 118 psig and add a few hundred gallons more storage capacity &ased on present air storage and the capacity of the lines. $or this e/ample the compressor energy sa)ing will &e 9%. Some tips for proper setting of the plant utilities2

3 Use cooling tower water in place of chilled water where)er possi&le. ,ooling tower water temperature is climate "especially wet &ul& temperature% dependent. $or e/ample, if your process needs cooling at ?8;$ or a&o)e, you can pro&a&ly use cooling tower water. 3 >our &oiler should produce steam at a pressure to meet the highest pressure need "corresponding to the highest temperature for saturated steam% plus any pressure drop from the &oiler to the point of use. 3 0ith proper storage capacity, your compressor should produce a pressure of a&out 17 psi to 97 psi a&o)e the ma/imum needed pressure at the point of use, plus the pressure drop from the compressor to the point of use. 3 If you ha)e a dual pressure need in the plant "e.g., 198 psig and ?8 psig%, it pro&a&ly will pro)e cost effecti)e to esta&lish two compressed air systems, depending on the plum&ing costs. Ta&le 1 shows the percentage of energy use increase@decrease in comparison with 188 psig compressed air production. 3 If your process can get &y with &lower air in place of compressed air, you can potentially reduce the cost of air compression significantly. Typical e/amples are air agitation, drying,fluidiAation, cooling and displacing. Ta&le 9 shows the electric power re<uirements per standard cu ft per min "scfm% of a compressor "producing air at 188 psig% in comparison to some typical &lowers. 3 0here)er possi&le, use electric pumps in place of air pumps. (lectric pumps consume a&out one-eighth of the energy of air pumps. 'on t use air pumps as a con)enience. Software tools can help identify and implement energy-sa)ing measures for compressed air systems. 4rocesses 4rocesses are where companies can pro&a&ly sa)e the most, &ut it s sometimes difficult to identify the opportunities. Some well--nown ways of sa)ing energy and cutting costs include proper maintenance, e<uipment updates and application of new technology. Bew technologies are process dependent. (/amples are natural gas infrared heating )s. electric infrared heating and drying, especially in places li-e ,alifornia

where the price differs greatly for natural gas and electricity per unit energy output. Some useful and short pay&ac- measures are2 3 Insulate hot and cold surfaces, including condensate return lines. Typical pay&ac- is less than two years. 3 A)oid single-pass heating and cooling &y all means. In single-pass heating, steam or hot water is used in the heating process and then allowed to drain into the sewage line. +y a)oiding single-pass heating and cooling the company can sa)e water, energy and sewage cost. 3 Ceco)er heat through well-esta&lished methods and technologies. (/amples include installing an economiAer on &oiler e/haust, which often pays &ac- within a few years if the e/haust temperature is a&o)e D88;$. reco)ery of heat from compressed gas of the e/haust of ammonia compressors. and heat reco)ery from chemical streams@mi/ers using cooling tower water. Ceco)ery of heat from hot li<uids is always much more economical than from hot gases under similar conditions. 3 Ceplace electric motors with the properly siAed high-efficiency motors as they &urn out. Eigh-efficiency motors cost more, &ut for a motor that runs a&out 1F hr per day, the pay&ac- is less than two years. The smaller the motor, the greater the efficiency differential. The motors on the mar-et mostly satisfy the minimum efficiency standard set &y the go)ernmentG which is not necessarily the &est a)aila&le. Standard efficiency motors are still on the mar-et. Another issue in motor replacement is that motors are often o)ersiAed for the application, and they do not operate at their optimum efficiency "that happens often for fans and pumps%. In such a case, they also operate at a low power factor, contri&uting to a power factor charged &y some utilities. 4erform a power draw measurement on ma6or motors "in -0 or hp% and, as the motors &urn out, replace them with high-efficiency motors of the proper siAe. +uy a power meterGan amp meter alone will not do the 6o&H #&tain a copy of !5otor 5aster,! a free '#(-sponsored software program, which includes a comprehensi)e listing of motors, their efficiency and price, &y calling ":88% :F998:F. 'ownload the software from the 0e& at http2@@www.motor.doe.go). It can help in ma-ing motor replacement decisions. 3 The prices of ad6usta&le-speed dri)es "AS'%, the same as )aria&le-fre<uency dri)e "I$'%, ha)e &ecome more reasona&le and their application can &ring significant electrical energy sa)ings.

AS' controls the speed of the motor &ased on the demand. If, for e/ample, the flow demand through a &lower is cut &y one half through a damper, it may reduce the power draw &y the motor &y appro/imately =8%. An AS' control system will decrease the flow &y reducing the speed of the motor, thus lowering the power draw to appro/imately 97% of the full power. AS's can &e used where)er a )aria&le load on the motor can either &e predicted "programmed% or sensed through a sensor. (/amples for application of AS's are large &lowers and fans, cooling tower fans and pumps, and mi/er motors. To use an AS', don t change the motor, 6ust add a controller. 3 In many states electricity costs four to fi)e times the price of natural gas per unit energy, and it often &ecomes cost-effecti)e to con)ert to natural gas e<uipment whene)er circumstances allow. (/amples are hot water and steam &oilers "pays &ac- in less than one year for a two-shift operation in ,alifornia%. infrared heaters. and heated tan-s through indirect heating. Another application is natural gas engine dri)es for applications such as large compressors, especially when com&ined with a heat reco)ery system from the engine. 3 ,om&ined heat and power, a new term for !cogeneration,! is worth -eeping in mind with a three-shift operation if the local utility s stand&y charges are not prohi&iti)ely high. A)oid custom-designed units and go for tested pac-aged unitsGthey ha)e pro)en <uite relia&le. Standard performance contracting "see &elow% is a good option. +uildings and grounds 5a6or energy-consuming de)ices in the &uildings and grounds category are lighting, EIA, and refrigeration systems, including chillers. Jighting is the easiest to deal with. Among se)eral chemical plants recently audited, lighting ranged from F% to 91% of the electric consumption. ,onsider se)eral measures. The pay&ac- depends on the electric rates and the operating hours. Some of the measures with <uic- pay&ac-s are2 3 Installing high-efficiency lamps, which often re<uire new fi/tures. $or e/ample, replacing fluorescent T-19 with T-: with electronic &allast and the reflectors recommended for clean areas can cut costs &y at least =8%. 3 Ceplacing con)entional incandescent lamps with long-life compact fluorescent, often ta-es no new fi/tures, and it lowers &ills &y ?7%.

3 Ceplacing fluorescent and mercury )apor lamps with metal halide or high-pressure sodium in high &ay warehouses and manufacturing areas. 3 Using &ile)el control for EI' lamps, such as metal halide and high-pressure sodium, for places that are not continuously occupied, such as storage areas and warehouses. That s particularly effecti)e for cold storage areas &ecause it reduces the load on the refrigeration systems. The pay&ac- is often less than two years. 3 4utting photo sensors on EI' lamps in places that ha)e sufficient natural lighting, such as areas under s-ylights and near loading ports. The pay&ac- is a&out one year. Sa)ing energy on lighting also affects cooling and heating costs, &ecause all lighting energy e)entually con)erts to heat. That s a secondary effect in cost sa)ings@increase. 5aintenance 4roper maintenance of e<uipment can significantly reduce energy costs, while &oosting the producti)ity of the plant. 5a6or maintenance issues with direct energy cost are2 3 ,ompressor and compressed-air systemsGthin- of compressed air lea-s, clogged filters and warm air inta-e into the compressor. Jea-s waste lots of e/pensi)e compressed air. $ig. 1 shows the cost of typical air lea-s. 5anagement of air lea-s needs systematic attention. Inspect for lea-s e)ery two months at off-operating hours for easier detection. 'irty air filters create pressure drop at the inlet to the compressor, which raises energy costs. $or e/ample, a 1% drop in pressure at the inlet of a compressor increases the power consumption &y a&out 8.?%. Eot air inta-e also increases power consumption. A change in inlet air temperature from ?8;$ to 188;$ corresponds to an increase in electric consumption of a&out 7%. 3 +oilers and steam systemsGsteam lea-s, worn-out insulation, malfunctioning steam traps, scaled &oiler surfaces and untuned &oilers all cause pro&lems. $ig. 9 conser)ati)ely shows the annual cost of typical steam lea-s. 5alfunctioning steam traps can &e a ma6or source of energy loss in a steam system. A malfunctioning steam trap lets the steam pass through instead of the condensate.

Use any of the )arious methods for chec-ing steam traps. The more common detection methods include sound of steam flowing through the trap "or rapid chattering of dis- in dis- type%, sharp temperature drop across the trap "78;$ and a&o)e for most cases%, use of ultrasonic detectors, a sight glass downstream of the trap and )isual o&ser)ation of a steam 6et coming out of an open trap. 4erform a flue gas analysis of &oiler"s% twice a year. (/haust gas temperature and flue gas composition are e/cellent indicators of the &oiler s performance. The local air pollution control authority may re<uire flue gas analysis on a regular &asis. Eigh e/haust temperature, e/cess ,# and un&urned hydrocar&ons "UE,%, and high e/cess air are sources of inefficiency. 4ersistent high le)els of ,# and UE, "a&o)e the manufacturer s specified le)el% result from poor mi/ing and low temperature in the com&ustion Aone. ,ontact the &urner manufacturer in such a case. The recommended le)el of e/cess air for forced-draft natural gas fired &oilers is 18% to 98%. A higher le)el of e/cess air results in losing energy through the e/haust. (ach percentage point increase in e/cess air corresponds to a decrease of 8.8=% to 8.89% in &oiler efficiency for flue gas temperatures of =88;$ to F88;$. Tuning the &oiler per manufacturer recommendation is a costeffecti)e method of eliminating the energy waste. 3 #ther maintenance measures include cleaning filters and heat e/changers, fi/ing suction lea-s and water lea-s, repairing o)en and furnace lea-s and many others uni<ue to each facility. In a recent audit of a chemical plant, it was found that fouling of a re&oiler downstream of a tur&ine was costing the plant a&out KD7,888 annually, while the whole re-&oiler could &e replaced at a cost of a&out K98,888, resulting in simple pay&ac- of less than 8.7 years. Assessing the situation To identify energy conser)ation and cost sa)ing measures, either get outside help &y hiring a consultant for a comprehensi)e energy audit, use help from go)ernment and utilities, or perform an in-house energy audit yourself. A comprehensi)e energy audit of the plant should include all aspects of energy supply and consumption as well as preparation of a detailed audit report. The report should include2 3 Analysis of at least one year of energy &ills. 3 Analysis of the energy supply, including the rate schedule and alternati)e suppliers. 3 Identification of ma6or energy-consuming de)ices, which may call for some spot measurements.

3 (nergy &alance of the plant to identify sources of consumption. 4erform the energy &alance separately for different types of energy. 3 Identification of energy efficiency opportunities, calculation of energy and cost sa)ings, and estimation of implementation costs. In the calculations, any assumption should &e identified and 6ustified. An e/perienced and -nowledgea&le audit company will &e aware of any financing or re&ate opportunities for energy retrofit, and may include it in the report. A comprehensi)e audit should not cost more than 1% of the annual energy &ill for larger plants "o)er K8.7 5% and a&out 9% for smaller plants. Those are rough estimates, and indi)idual cases will )ary. 0here a)aila&le, go)ernment and utility sponsored audits are usually free of charge, and their <uality and depth )ary. They may &e as simple as a wal-through audit sponsored &y many utilities or as comple/ as the more detailed process audits sponsored &y some utilities and '#( through its IA, program. Those audits ha)e plant siAe and location limitations. An in-house audit To ta-e care of energy efficiency issues in house, consider the audit a continuous process, and &e aware of it in different aspects of maintaining and upgrading e<uipment. Some general tips2 3 Leep energy efficiency a consideration in all e<uipment purchasing and retrofit. 3 Leep in touch with utility account e/ecuti)es or representati)es, and get on their mailing list for energy efficiency programs. Use re&ate plansGoften they re not as &ureaucratic and time consuming as they loo-. 3 Understand energy &ills and their components. 3 5a-e sure the company is on the optimum rate schedule &y &ecoming familiar with rate schedules that may apply to the plant. Joo- at alternati)e energy suppliers. 3 Identify ma6or energy-consuming e<uipment. ,onsumption is affected &y nominal rating of e<uipment, operating hours and load factor "fraction of nominal rating of the e<uipment%. ,onsider energy efficiency measures. This is where the company can sa)e the most.

3 (sta&lish #M5 policies that ad)ise employees to &e energy conscious. 3 Ceplace or retrofit inefficient e<uipment with newer energyefficient e<uipment, on an incremental &asis if one-time replacement costs too much. (/amples are lighting retrofit and motor replacement. Cemem&er that most energy efficiency opportunities ha)e a pay&ac- period of less than two years for a 78% rate of return on in)estment. Auditing resources A )ariety of resources can help the company profit from energy efficiency. Some are2 3 Utility companies. The local utility company is the first place to go. 0ith deregulation in place or on the horiAon, utility companies are prone to help their customers sa)e energy so that they can -eep them as customers. And they re often the first to -now a&out other energy efficiency programs. 3 State energy office. The state energy office is another source for information, funding, grants and resources. 3 '#(. '#( has programs for energy efficiency, in the form of grants and direct assistance, funded through its #ffice of Industrial Technology "#IT%. 5otor ,hallenge, ,ompressed Air ,hallenge, and 4artnering with Industries of the $uture "I#$% are some of the #IT programs. >ou can contact them through their 0e& site http2@@www.oit.go)@. 3 Industrial Assessment ,enter. The Industrial Assessment ,enter "IA,%, a well-esta&lished program sponsored &y '#(, is dedicated to energy efficiency, waste minimiAation and producti)ity impro)ement of small to medium-siAe manufacturing plants. Through =8 centers across the country, IA, pro)ides audits at no cost. ,ontact mailto2oipeaNcamp.rutgers.edu for plants east of the 5ississippi Ci)er or mailto2itemNli&ertynet.org in the 0est. $inancing energy impro)ements (nergy impro)ement is cost effecti)e, especially in the maintenance category, and most of the implementation can &e accomplished in house. 5a-e sure to ta-e ad)antage of re&ates from utilities or local organiAations.

+esides regular commercial financing options, performance contracting can help implement many of the measures with higher initial costs. $ull-ser)ice energy ser)ice companies "(S,#% finance and implement pro6ects, and share the profit with the company. Chemical Processing * ())) Putman +edia