Energy Management at Winpak Efficiency Manitoba Hearings Winpak - PowerPoint PPT Presentation

Total Packaging Solutions Energy Management at Winpak Efficiency Manitoba Hearings Winpak Division Chris M. Parker, P.Eng. Jan 2020

INTRODUCTION • WINPAK is a publicly traded company (TSE WPK). Majority shareholder is WIHURI Oy. • 12 production facilities in Canada, United States and Mexico. Started in Winnipeg over 40 years ago. Headquartered in Winnipeg. • At the end of 2018, annual sales of $889 million U.S.$ and over 2,400 employees, of which 775 are employed with Winpak Division, Winnipeg. • Winpak Division in Winnipeg produces flexible packaging to protect perishable foods, beverages, health care and industrial products. • Winpak Division is a significant user of electricity (52 GWhr) and natural gas (2.6 million cubic meters). 2

ENERGY COST AT WINPAK DIVISION $4,000,000 Electricity $3,500,000 Natural Gas $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3

WINPAK DIVISION ENERGY REDUCTION TARGET o Winpak is committed to sustainability, including energy reduction. o We have a full time engineer, with CEM training, focused on energy usage. o Short term: 2,000 MWh energy saving annually o Mid term: 10% reduction in Specific Energy Consumption (SEC) by end of 2025 2.2 Energy Intensity (MWh/Ton Sold) 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 4

ENERGY CONSERVATION MEASURES Energy Saving Hydro Rebate Payback Year Cost ($) (eMWh) ($) (years)* 2018 $109,400 659 $37,942 2 2019 $647,499 1,996 $196,549 6 2020/2021 $1,110,494 1,672 $341,746 6 *Includes all Winpak participates in the MB Hydro rebates Energy Manager Program, and the various Optimization Programs previously offered by MB Hydro to support these conservation projects. Ongoing support is important to our efforts. 5

COMPRESSED AIR PROJECT • Replaced an aging 180 kW VSD compressor with a new 160 kW oil free VSD compressor including a central control system • Conducted an end use study to identify significant end use compressed air and leakage reduction potential • Installing a new low pressure compressor to replace an existing load/unload compressor. • Implemented Compressed air leak management program and optimize demand side Electricity saving: 1269 eMWh/year Incremental Cost: $514,297 Simple Payback (with incentives): 4 years Simple Payback (without incentives): 6.2 years

Energy is an important resource  Winpak is committed to energy reduction and will continue to partner with Efficiency Manitoba to reach our mutual goals.  Winpak is also concerned about energy costs, and Efficiency Manitoba must make prudent investment in all of its projects.  Efficiency Manitoba and Winpak must balance energy reduction and careful spending.