Workshop II Practical Tips on Plant-Level Energy Management in a Turbulent Environment Wednesday, February 19, 2020 1:45 p.m. to 3:00p.m. .
Biographical Information Timothy W. Ling, P.E. Corporate Environmental Director Plaskolite, LLC. P.O. Box 1497, Columbus, OH 43216-1497 (614) 294-3281 tim.ling@plaskolite.com Mr. Ling is the Corporate Environmental Director for Plaskolite, LLC., a Columbus-based manufacturer of continuously processed plastic sheet. Mr. Ling is responsible for Plaskolite’s environmental compliance at its 10 manufacturing facilities in Ohio, California, Texas, Mississippi, Tennessee, New Jersey, Massachusetts and Mexico. He has over 29 years of experience in environmental engineering, both as a consultant to businesses, and now as in- house environmental manager. He has spoken and written on a wide range of environmental and energy management topics. Mr. Ling graduated at the top of his class with a Bachelor of Science degree in Civil Engineering from the Florida Institute of Technology (1989). He also holds a Master of Science degree in Civil Engineering from the University of Notre Dame (1991). He is a Registered Professional Engineer in the states of Ohio and Florida. Anthony J. Smith, P.E. Global Energy Coordinator Cooper Tire and Rubber Company 701 Lima Avenue, Findlay, OH 45840 (419) 420-6164 ajsmith1@coopertire.com Mr. Smith leads energy savings initiatives as the Global Energy Coordinator for Cooper Tire facilities around the world. Cooper Tire was founded over 100 years ago in Ohio and is headquartered in Findlay, Ohio with manufacturing plants in the USA, Mexico, England, Serbia, and China. Prior to taking his current role, he served as energy coordinator for the Findlay Ohio tire production facilities. Trained and certified as a Lean Six Sigma Black Belt, Mr. Smith uses the Six Sigma tools to lead cross-functional teams to solve energy efficiency problems, and has developed energy regression models for tracking and forecasting utility usages. He has authored numerous newsletter articles on energy topics and is also a frequent panelist and speaker on industrial energy efficiency. Mr. Smith holds a Bachelor of Science degree in Mechanical Engineering from the University of Dayton (2004). He is a registered Professional Engineer in the State of Ohio.
Practical Tips on Plant-Level Energy Management In A Turbulent Environment Timothy W. Ling, P.E. Anthony J. Smith, P.E. Corp. Environmental Director Global Energy Coordinator Plaskolite, LLC. Cooper Tire and Rubber Company
PLASKOLITE 70 Years, 11 Sites
Cooper Tire and Rubber Company Cooper Tires • 100+ year history in Ohio • 13th largest globally & 5th largest in U.S. (based on sales) • Eight tire manufacturing plants worldwide including Findlay, OH • Intense focus on energy since 2007
Cooper Tire Brands Avon Tyres is one of Europe’s leading The Cooper brand is the company’s The Mastercraft brand is well-known tire brands and offers a complete flagship brand and offers a full for its quality and outstanding value. product range for cars, motorbikes, line of great performing tires. vans and trailers. The Roadmaster brand has The Starfire brand is dedicated to Mickey Thompson offers commercial truck tires for every providing value at a reasonable price specialized racing, off-road and application. without sacrificing quality or performance. high-performance tires. A popular truck tire brand in Asia, the Dick Cepek brand provides quality Dean brand is designed and on and off-road products. engineered to meet the demanding performance requirements of fleets.
CSR and Sustainability Report • Cooper produces an annual Corporate Social Responsibility (CSR) and Sustainability Report • The report, which was published in July 2019, covers primarily 2018 performance and activities, and marks the sixth annual CSR report for Cooper • It is available at coopertire.com
Sustainability Strategy
Major Energy Projects and Savings
Major Energy Projects and Savings
Plaskolite Utility Costs
Why Is My Electric Bill Still HIGH?
Electric Bill Breakdown % Total Bill 2001 2019 Future? Distribution+ 20% 40% 67% Transmission Generation 80% 60% 33%
Here’s The Problem
You’re On The Hook… • Distribution/Transmission Costs –Monopoly –Non-bypassable –Governed by PUCO & Statehouse • Distribution breakdown: –KW demand charge (~20%) –Riders & subsidies (~55%) –Transmission costs (~25%)
Electric De-Regulation Since 2015 • Generation free-market HAS delivered • Ohio’s shale revolution in high gear • Power generation fuel shift from coal to natural gas • BUT…
Electric De-Regulation Since 2015 • Distribution/Transmission Costs “eating-up” Generation savings • ESPs here to stay • “Politically-savvy” companies extract monies through your electric bill • Benefits of Ohio’s shale revolution “blunted”
Recent Ohio Trends • Utility-friendly Ohio government • House Bill 6 –Anti-free-market legislation –Ohio citizens forced to subsidize money-losing nuclear/coal plants –Precedent-setting
But WAIT… There’s MORE
HB 247 Then (2017-2018) • Rep. Mark Romanchuk bill • Customer refunds if charges declared illegal by courts • Utilities to go through a distribution rate case to set rates • Full separation of distribution utility from generation plants
HB 247 Now (2019-) • Rep. Dick Stein bill • Bill is a vehicle for utilities to get back into generation, including “behind-the- meter” projects at full cost recovery • Loosens corporate separation requirements
What Can You Do? • RE-MONOPOLIZATION of electric market is underway • Alarmed at government actions on your energy costs • Try to make your Ohio government more accountable to Ohio citizens, not utilities
What Can You Do? • Customers/manufacturers need to be united against re-monopolization • Don’t shift your costs to others, through frivolous subsidies • “Cut-the-Cord” (figuratively)
What Can You Do? Risk Assessment of Energy Costs: • Recognize how costs are billed • Majority of costs are usage-based • Reducing electricity consumed from grid will reduce exposure to public policy (e.g., PUCO, Ohio government, PJM, FERC)
What Can You Do? Non-generation: –Energy efficiency –Demand response On-site Generation: –Renewables (Wind & Solar) –CHP –Battery
Energy Efficiency • Mandated EE programs ending in 2020 • Some utilities may have voluntary EE programs post-2020 • Look for EE improvements in process equipment upgrades
Energy Efficiency Examples • New air compressors (10-15% savings) • DC motor to AC motor/VFD conversions (11% savings) • Chiller upgrades • Optimizing cooling water set points
Demand Response • Demand response programs will transition to year-round programs in 2020 • Some Ohio customers had event on October 2, 2019 • More valuable if HB 6 inflates the cost of capacity for Ohio utility zones
Renewables • Know your acronyms: –PPA, VPPA, REC • Some proposals for renewable energy may not be what they claim • Utilities getting into renewables business with HB 6 and HB 247 • Begin renewable study with goal in mind
Renewables • Don’t rush into contract based on supplier- imposed deadline • Renewable study is a long-term process (2-5 years!) • Experts from Legal and Accounting are essential to evaluating proposals
Batteries • Initial costs still high, but improving • Possibility of incorporating solar to improve project payback (Minster, OH) • Best payback is correcting short-term power quality issues (e.g., frequency regulation)
Combined Heat and Power (CHP)
CHP Technologies • Natural Gas Turbines • Natural Gas Microturbines • Steam Turbines • Reciprocating Engines
Steps To Implementing CHP • High-level screening analysis • Investment-grade engineering study • Final engineering design • Project funding
CHP Tips • Engage upper management & utility EARLY!!! • Look beyond energy savings for additional savings opportunities • Boiler replacement/infrastructure upgrades can increase justification • Year-round source of heat required for reasonable payback
CHP Equipment • Solar Taurus 70 natural gas-fired turbine (6.8 MW nominal) • Rentech Heat Recovery Steam Generator (80,000 PPH) • Vilter natural gas compressor
CHP
CHP Project Considerations • Size for 100% of thermal load (steam capacity of the plant) • Turbine generator can provide 50-60% of the annual plant electricity capacity
CHP Project Considerations • AEP Energy Efficiency Rebate • Federal tax credit for project cost (10%) • Project payback just under 5 years vs. cost for a new boiler only
CHP Project Schedule • Engineering study in 2015 • Project approval in 2016 • Equipment set in 2Q 2018 • Commissioning in 4Q 2018
CHP Update • After one year of operation, CHP system has met expected savings • KWH charges & 5-CP Peak Load Contribution (PLC) reduced • 30-minute demand charge difficult to drop • Plant personnel have taken “ownership”
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