(90d) A Holistic Approach to Capturing and Sustaining Energy Savings

Process manufacturers are most vulnerable to the recent rise in energy costs. According to the U.S. Department of Energy, the percentage of operating costs attributable to energy range from about 7% to over 30% for the process industries . The result is eroding profit margins and increased pressure from shareholders to take action. It therefore comes as no surprise that energy costs and energy reduction initiatives are among the top business issues cited by company executives.

This paper will illustrate the value of taking a holistic approach to energy reduction versus deploying single point solutions. A holistic approach enables manufacturers to capture the most opportunities to increase bottom line profitability, and ensure long-term sustainability. Such a strategy addresses four key focus areas:

? Invest wisely ? Use less ? Buy cheaper ? Generate and distribute more efficiently

In a holistic approach, an energy efficiency improvement program is targeted at a site. Improvement projects with documented benefits are considered alongside other site operations and capital investment opportunities. Approved projects are then sequenced and coordinated to ensure rapid improvement, knowledge and technology transfer and sustainability. The types of projects implemented will impact the design and operation of process and utilities systems and range widely in scope and capital investment.

This approach to reducing energy costs for process industry manufacturers will be demonstrated by means of a case-study on a typical petrochemicals manufacturing complex. This case-study compares the results of a holistic energy efficiency improvement program to the implementation of several point solutions in an uncoordinated fashion. We will show how the process design objectives of capacity increase and optimum energy efficiency can both be achieved while avoiding unnecessary capital investment. We will also show that if the implementations of operational support tools are not carefully coordinated, they can end up pulling in different directions, resulting in sub-optimal overall performance.