9 Steps to Reduce Energy Input Costs

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9 Steps to Reduce Energy Input Costs
Larry Good Regional Vice President GESI ltlgood_at_ges
-intl.netgt January, 2007
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The Goal

• Energy Cost Reduction
• through
• Energy efficiency
• Alternatives
• Reliable services
• Productivity

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How to Reach the Goal

• 1. Request
• 2. Energy Audit
• 3. Business Plan
• 4. Due Diligence
• 5. Design
• 6. Procurement
• 7. Implementation
• 8. Commissioning
• 9. Follow-up

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Request

• Tell us you are interested.
• Discuss your goals.
• Walkthrough - 1st client meeting quick
  inspection
• Define what is possible.
• Agree on a course of action.
• Proposal - Scope of work price proposal
• 1st Contract - 2 signatures

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Energy Audit
Definition a feasibility study to find and
recommend energy cost reduction
opportunities Procedure 1. 3 site visits -
Investigation, identification of savings
opportunities from interviews, records,
measurement and data logging 2. Research -
Market search for feasible technical
solutions 3. Analysis - Definition of
measures, determination of feasibility 4.
Report - Comprehensive set of recommendations 5
. Presentation - Personal explanation of audit
report to client
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Energy Audit (cont.)

• Result a report explaining recommended
  opportunities measure by measure
• Indicators
• IRR
• NPV
• Energy savings
• Cost savings
• Investment
• Emissions reductions
• Objectivity
• Auditor is independent of other vendors sells
  no product.
• Auditor represents best interests of client.

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Business Plan

• Only necessary for large projects
• Gives investors security
• Either whole business or project specific
• Defines type of contract between client and GESI

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4. Due Diligence

• Financial credibility
• Insurance, permitting and licensing issues
  addressed
• Binding legal agreement
• Agreement by all to move forward

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5. Design

• Begins with audit analysis
• Measurement calculation
• Equipment specification
• Less effort with Level 3 audit, more with Level 2
  audit

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6. Procurement

• Depends on type of contract
• Procedure determines timeframe.
• GESIs responsibility in performance contract
• Clients responsibility in other contract types
• Full competitive, partial competitive or sole
  source
• GESI assists as requested.

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7. Implementation

• GESI builds project according to design
• Schedule set by suppliers delivery and scope of
  labor
• Performance contract Full responsibility on
  GESI
• Non-performance contract Progress payments in
  clearly defined stages

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8. Commissioning

• Start-up
• Testing
• Performance verification
• Correction of defects
• Acceptance by client

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9. Follow-up

• Measurement verification (MV) verifies
  savings
• Preventive maintenance (PM) preserves savings
• Follow-up depends on type of contract.
• Hard requirement for performance guarantees (risk
  on GESI)
• Optional for other arrangements (risk on client),
  as requested by client

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Case Study 1.US ENVIRONMENTAL PROTECTION AGENCY
(EPA)NATIONAL VEHICLE AND FUEL EMISSIONS
LABORATORY
1. Installed two York Millennium two stage
absorption chiller/heaters rated at 440 tons and
575 tons of cooling, respectively, a new cooling
tower, and one 3200 MBtu/h Bryon hot water
generator. 2. Installed 34 air handling units
(AHUs), customized according to planned
operation. 3. Installed a 1200-point energy
management system. 4. Replaced old motors with
high-efficiency equivalents. 5. Converted
once-through cooling water systems to closed loop
cooling. 6. Installed power factor correction. 7.
Installed a 200-kW ONSI fuel cell.
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Reductions (EPA Case Study cont.)

• Annual energy cost by 60
• Annual water consumption by 60

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Goals (EPA Case Study cont.)

• 1. Meet or exceed Federal energy reduction
  mandates
• 2. Reduce power plant source emissions
• 3. Optimize energy cost savings.
• 4. Restore obsolete and aging infrastructure.
• 5. Eliminate or replace chlorofluorocarbons
  (CFCs)
• 6. Minimize energy waste
• 7. Maximize the use of the waste energy streams,
  to feed other processes
• 8. Use renewable energy (photovoltaic, solar
  thermal, passive solar, biomass, wind,
  geothermal, hydropower, and other alternative
  technologies, such as cogeneration, where cost
  effective).

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Costs Savings (EPA cont.)

• 11 million investment by ESCO
• 22 years of complete system operation and
  performance guarantees
• Annual contract payments of 1 million
• Includes 200,000 of annual operation
  maintenance

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Case Study 2.Dallas/Fort Worth International
Airport (DFW)
Rusty T. Hodapp, P.E., CEM, CEP, LEED, Energy
Transportation Management Vice President, Dallas/
Fort Worth International Airport
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DFW Airport Overview

• Jointly owned by Cities of Dallas and Fort Worth
• Opened in 1974
• The worlds 2nd largest airport encompassing
  18,000 acres including 9,000 acres of natural
  resource areas
• Ranked third worldwide in operations totaling
  over 804,000 annually
• Ranked sixth worldwide in serving 60 M passengers

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Energy Efficiency Program (DFW cont)

• Initiated in 1975
• Based on 3 Primary Elements
• 1. Sound operation and maintenance practices
• 2. Retrofits where economically and technically
  feasible
• 3. Incorporation of energy efficiency into new
  construction
• Dedicated Energy Engineer/Manager since 1979
  (Energy Engineer and Analyst added in 2003)
• Energy consumption avoided to date is estimated
  at over 25 trillion BTU (5 million barrels of
  oil)

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Major Drivers of EE at DFW

• Economic Benefits
• Air Quality Benefits
• Risk Management
• Load Growth
• Deregulation
• Service Reliability
• Energy Management Legacy (early adopter)

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EE in Retrofits (DFW cont)

• RetrofitsTerminal B
• Recommendations
• - Lighting Retrofit, including auto-dimming
  ballast motion sensors
• - Replacing and integrating EMCS
• - Controls Upgrade on Passenger Loading Bridge
  AHUs
• Estimated Results
• - Energy Savings -4.3 million kWh/ yr (17)
• - Simple Payback -5.5 years

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EE in New Construction (DFW cont)

• District Energy Plant Upgrade Project
• Thermal Energy Storage Tank
• - 56 ft. tall 138 ft. in diameter
• - 6 million gallons
• - 90,000 ton-hours
• - Ability to shift a minimum of 5 MW off-peak
• Centralized Pre-Conditioned Air System
• - 12,000 tons Cooling
• - 51 MMBtu Heating

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EE in New Construction (DFW cont)
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Conclusion

• Today Energy security a serious concern for
  countries dependent on single fuel sources.
• Efficiency reduces dependency.
• Redundancy reduces risk.
• Average 20 global energy price rise
• Will continue, not recede
• Competitive edge
• Never wait to decrease costs and increase
  reliability.

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Thank you!
CONTACT Larry Good Regional Vice
President GESI email ltlgood_at_ges-intl.netgt