Implementing the Teck Coal No Idling Policy February 2014
Teck Coal No Idling Policy Presentation Outline Introduction to Teck’s Coal Operations 1. 2. The Status Quo 3. Drivers of the No Idling Policy 4. Pre-Policy Planning 5. Introducing the Policy 6. Following up on the Policy 7. Economic Benefits 8. Factors for Success
Our Steelmaking Coal Operations British Columbia Alberta Prince Fording River Rupert Quintette Greenhills Edmonton Prince Elkford George Line Creek Cardinal River Pacific Legend Ocean Elkview Sparwood City Calgary Elk Valley Vancouver Mine Port Coal Mountain Rail 3
Teck Coal Energy Consumption * Energy consumption is normalized to Gigajoules 4
The Status Quo Prior to the idling policy, almost all equipment was run all the time for the following reasons: • Engine starters are unreliable. The disruption caused by a machine not starting was more costly than leaving it idling. • Extra starts cause excessive wear and tear on engine. • Employees doubted that no- idling is valuable. “It’s been tried before, just not worth it.” 5
Main Drivers of the No Idling Policy 1. Cost Reduction Program • In 2013, Teck committed to cost reductions of $100 million • (Teck has now implemented $360 million in annual cost savings) 2. Sustainability Goals • In 2011, Teck committed to energy intensity reduction of 1000TJ/yr and GHG reduction of 75kT CO 2 e by 2015 3. Senior Management Team Endorsement • Vice President, Coal Operations, said “Do it!” 6
Pre-Policy Planning Learning from success at Highland Valley Copper • Their idling policy had been in place for 6 months • They focused on the environmental benefits – “It’s the right thing to do” • They conducted frequent tours and audits to verify compliance 7
Pre-Policy Planning Defining what type of idling we want to reduce During Total Shift Breaks Reduction Change Typically Target of Typically about 60 3.5hrs/day about 45 minutes minutes per 12 hour per shift shift 8
Pre-Policy Planning Making the No Idling Policy specific to each site Policy Champion Site-specific Take-home Reduction policy cards estimates implementation Health and safety benefits for operators 9
Pre-Policy Planning Considering the benefits of making Line Creek Operations an Idle-Free Operation 1L of diesel creates 2.8 kg of CO 2 -equivalent emissions when burned. If all unnecessary idling stopped at LCO, we could save annually: 2.1 Million kg of CO 2 -equivalent emissions…. …that equals 420 cars on the road 10
Pre-Policy Planning Determining the Personal Wellness Benefits By eliminating unnecessary idling at LCO, there are a number of personal wellness benefits as a result of reduced exposure to: • Ambient noise from equipment • Equipment vibration during breaks • Diesel exhaust and soot 11
Pre-Policy Planning Setting Reasonable Exceptions • Vehicles can be left idling below -10 degrees Celsius and above 25 for operator comfort • Light vehicles can be left idling if they are being used as a warm up spot during the winter • Light vehicles can idle until their windshield has cleared of frost • If vehicle has been tagged by maintenance as having starting problems 12
Pre-Policy Planning Running a Maintenance Campaign One Month Prior to Implementation • Verify all starters and batteries during PM’s. • Check added to regular PM sheet at sites where it wasn’t included • Discuss lighter weight engine oil • Two sites switched to a 5W-40 • Deploy mechanics in the field early for first week 13
Introducing the Policy 1. The Policy was introduced during monthly safety meetings in the summer, when weather was less of an issue. 2. We performed vehicle daily checks during first month of program. After the first month, checks were performed weekly. • Idling vehicles were shut off and pamphlets placed in the cab, or auditors spoke with employees or contractors in non- conformance. 3. We gave positive reinforcement to operators who complied, such as random handing out of hats etc. 14
Following up on the Policy Auditing During routine audits, the following template was filled out for all idling vehicles identifying: • Equipment ID • Equipment Type • Location • Time • Teck/Contractor • % of Idling Vehicles 15
Following up on the Policy Vehicle Idling – Oct 28-Nov 3, 2013 We achieved 98% idle free this week. This weeks totals: 43,688 kgs less CO2 emissions released into the environment and $16,227 in diesel savings. Totals since the June 3 rd rollout: 962,751 kgs less CO2 emissions released into the environment and $357,593 in diesel savings. 16
Following up on the Policy Vehicle Idling – Dec 30-Jan 5/14 We achieved 68% idle free this week. This weeks totals: 30,321 kgs less CO2 emissions released into the environment and $11,262 in diesel savings. Totals since the June 3 rd rollout: 1,283,231 kgs less CO2 emissions released into the environment and $476,628 in diesel savings. 17
Following up on the Policy Tracking Idling Performance • Performed some in-house testing of idle burn rates for major equipment. • Found it quite different than the values reported by engine ECM’s. Idle Fuel Burn Rates (L/hr) 35 30 25 20 Highest Tested 15 Lowest Tested 10 5 0 830E 930E Cat 793 Cat 797 18
Following up on the Policy Tracking Idling Performance Ratio of Engine to Operating Hours 1.30 1.25 1.20 1.15 Before Idle Policy 1.10 1.05 After Idle Policy 1.00 0.95 Cummins HT Cat Dozer Fleet Fleet 19
Economic Benefits Cost Savings Annual Idle Hour Reduction For Teck Coal Haul Truck Fleet = 170,000 For Teck Coal Dozer Fleet = 52,000 For Auxiliary Equipment = 70,000 292,000 Annual Diesel Savings = 3,300,000L CO 2 e Reduction = 9,206T 20
Economic Benefits Additional Savings • Reduced Wear and Tear • Large diesel engines work better when hot and prolonged idling can cause damage • Reduced Lease/Rental Costs • Many equipment leases/rentals are based off engine operating hours • Extended PM Intervals • Increased Engine Life 21
Factors for Success 1) Strong support from management 2) Up-front planning that considers operator comfort, maintenance concerns, etc. Emphasis on “It’s the right thing to do” 3) 4) Active auditing and reporting back to all involved 22
Thank You Contact Information: Jeff Sutherland, P. Eng Energy Lead, Teck Coal Limited Direct Phone: +1-250-425-8447 Email: Jeff.sutherland@teck.com 23
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