July 2010: Mapping Your Electrons: The Path to Smart Energy Conservation
Here’s a question for you—try to answer truthfully. Do you know how energy flows through your facility? We’re not just talking high-level here. Can you quantify just how much energy is being used by the myriad of energy-consuming devices in your facility? And if you run a manufacturing plant, can you quantify how much energy goes into producing a single product?
If you’re like most companies, the answer is probably no. The fact of the matter is that quantifying energy usage at that level is hard because energy is embodied in many different forms—electricity, compressed air, steam, hot water, refrigerant, just to name a few. All of these forms must be taken into account to fully understand how energy flows through your facility, and if you manufacture a product, how it gets embodied in that product.
That’s where energy process mapping comes in. Simply put, an energy process map is a holistic view of your major energy-consuming systems down to the individual components. Mapping your energy processes is an essential tool to make better decisions about where to get the biggest bang for your energy-conservation buck. So let’s talk about how it works.
At iSpring, we take a systems approach to energy process mapping. We start with a major system—the steam system, for instance—and map the generation, distribution and utilization components. This gives us, and our clients, a baseline understanding of how steam is moving through their facility. The underlying premise is this: if you don’t understand where it goes, how can you quantify it?
After mapping the flow, the next step in creating a complete map is determining how much energy is used by the components that have been mapped in the first step. This part is often the trickiest, especially in cases where there is a centralized boiler or compressor room that feeds multiple components at multiple points of utilization. However, this is the step that allows you to quantify just how much energy goes into a single product. Once you know how much energy each component of a production line uses, you can add up all the components’ usages to determine a single value for the product.
The systems approach is integral to the usefulness of the map because it is the only way that you can get a clear picture of the impact the system components have on one another, as well as which parts of the system truly are the major energy consuming components. Often the components we expect to be using the most energy aren’t really the worst offenders—a systemic energy process map will show you that. Additionally, if you are planning to modify that system,—by getting rid of a piece of equipment to save energy, let’s say—a comprehensive map allows you to understand how that change will affect the entire system. Will you be causing an unanticipated constraint by adding too much burden to another part of the system?
There’s another benefit to energy process mapping. It helps you understand how the major systems interact with one another. It’s like a transit map—where do the electrons hop off the steam train and take a refrigerant bus back to a compressor? Understanding how this works is crucial to helping you maximize your energy conservation efforts to save you money. Ultimately, energy process mapping puts you in a position to have better control over your systems in an uncertain energy future. And if there’s one thing we’ve learned that every smart business person wants, it’s better control.
June 2010: How Green Is Your Grass?
Perhaps the color is a lovely shade of grass green, but from both an economic and environmental perspective, just how green is all that manicured lawn out there? The answer is: not very.
In the last few years interest in native grasses and their use in corporate environments has been driven by two complementary sets of factors, one economic and one environmental. This month, let’s take a look at why more companies are “going native”.
If one of your concerns is getting more profit to the bottom line by reducing costs, you should look out the window and see how much money goes in to installing and maintaining a manicured lawn. Installation costs of seeding native grasses versus sodding turf grasses are 67-83% lower. Even if you compare seeding native grasses to seeding turf grasses, you can still save 50% or more. But, you say, my grass is already there – sunk cost. That’s true. But every year you have to maintain it, and maintenance costs for native grass meadows run an eye-popping 90% less than maintaining a lawn. That means if lawn maintenance costs you $5,000 per year and you switch to native plants and grasses, you can tuck $4,500 back in your pocket. The native grasses require mowing only once every one or two years. Now imagine if you had a really big property!
In a recent case study, iSpring coordinated analysis of a 13-acre site for retrofit from manicured lawn to native grass field. The capital cost of less than $13,000 had a breakeven of less than one year and would produce more than $150,000 in maintenance cost savings over a five-year period.
Native grass plantings also reduce the amount of stormwater run-off. Because native grasses have extensive root structures that reach to depths of 4 to 10 feet, they create greater soil permeability than turf grasses with root systems of 4 to 6 inches deep. Greater permeability means that more water seeps deeper into the soil during rain events, rather than running off to the storm water system. A native grass installation can reduce rainwater run-off by as much as 50%. If your city or municipality bases its stormwater charges on quantity of run-off, a native grass system can represent a significant savings.
If we look beyond the economic benefits, the environmental benefits are even more impressive. The deeper, more expansive root systems of native grasses reduce soil erosion, particularly on steep banks or hillsides. Getting rid of that maintenance regimen means you can say goodbye to the herbicides, pesticides, fungicides, and fertilizer. Native grasses are, by definition, suited to the characteristics of the local environment and therefore more pest-resistant and drought-tolerant.
You can also say farewell to the carbon-belching, gasoline-guzzling lawn mowers and tractors and line trimmers. According to the U.S. Environmental Protection Agency (EPA), a traditional gas-powered lawn mower produces as much air pollution as 43 new cars each being driven 12,000 miles. Saying goodbye to them improves the air quality and reduces noise pollution. Water quality also improves as the native plant root structures enhance the infiltration of contaminated stormwater.
If, like many of us in eastern Pennsylvania, you are plagued with the scourge of Canada geese, you’ll be happy to know that a native grass plot will discourage them from visiting. Tall grasses can hide the geese’s natural predators, so planting native grasses, particularly near open water, will encourage them to swim on by. Andrea was involved with a riparian restoration project on the banks of the Monocacy Creek a decade ago that addressed just that issue. Today that site is home to native trees, shrubs and grasses, but no geese.
If all these economic and environmental benefits aren’t enough to convince you, then let’s throw in the aesthetics. What could be more attractive than a native grass plot humming with bees and butterflies, bedecked with bright wildflowers all summer, and maintaining visual interest year-round? Wouldn’t you rather work in that environment? We know we would.
May 2010: Sustainable Manufacturing: The New Competitive Advantage
One of the fastest growing areas of interest in the field of sustainability is sustainable manufacturing. Let’s look at what sustainable manufacturing is, how it can reduce costs and improve your competitive advantage.
As manufacturers have developed an increased awareness of the limits of natural resources, they have begun to realize that if they inefficiently and ineffectively utilize these resources, they will eventually put themselves out of business. It’s a simple equation: if you run out of water, it’s hard to make Coca-Cola. These concerns, coupled with the dramatic finding in the mid-1990s that 93% of the manufacturing process goes to waste and only 7% to product, have spurred interest in ways to make the manufacturing process more sustainable.
A more recent driver of sustainable manufacturing has been the release of the Walmart Sustainability Product Index. Announced in July 2009, the index will require suppliers to show progress in the adoption of 15 sustainability practices to retain Walmart as a customer. Walmart has 60,000 suppliers world-wide which means these 60,000 suppliers are now focused on sustainable manufacturing.
So how can you implement sustainable manufacturing? By looking at each step in your product lifecycle through a sustainability lens to see if you are utilizing the most efficient and cost-effective processes at each step. Here are five strategies to consider:
- Identify substitute materials and energy. Can you use a renewable resource instead of a non-renewable? For example, bamboo, a renewable resource, is now being used for flooring and, amazingly, bed linens. Can you substitute renewable energy for a fossil-based energy source? Can you use someone else’s waste material as your raw material? How about lighter plastics? Less toxic ingredients?
- Reduce and redesign. Find ways to redesign your product using less material to begin with. Particularly consider packaging. Redesign processes that are water-intensive. Look at your transportation and logistics. Can better package design improve stackability on trucks, increasing product shipped per load?
- Reduce, reuse and recycle waste. How much waste is left after your product is finished? What do you do with it? For 3M, waste = $$$. They classify everything as product, by-product (to be reused or sold) or waste and then they ask, why is there any waste? That 93% waste figure quoted above means that on average each manufacturer throws away 93 cents of every dollar invested in manufacturing a product. Not only does reducing waste save you money, it also reduces your risk since your waste could be someone else’s pollutant. The less you create, the lower your risk.
- Reuse and recycle products. Can components of your product be refurbished and reused by you? Look at ways to reclaim your product after its useful life.
- Waste material becomes raw material. If you can’t use your waste, perhaps some other manufacturer can. Your waste then becomes their raw material, creating a virtuous cycle of sustainable manufacturers.
If you do more with less, it must cost less. That’s basic economics. While cost savings alone might be your competitive advantage (leading to lower prices), the savings realized through the implementation of sustainable manufacturing practices might also be applied throughout your value chain to support other areas of advantage, such as product development or customer service.
And remember, if you don’t want to realize those savings, there are 60,000 Walmart suppliers who will.
April 2010: Why Your Company Should Care About Peak Water
After energy, water may be the next big battleground. By now, most are familiar with the concept of peak oil,—running out of cheap oil—but peak water—running out of cheap water—should be a concern to businesses of all sizes throughout the U.S. To make matters more complicated, as more municipalities get on board with the concept of green stormwater management, stormwater run-off regulations for commercial properties are only going to get tighter.
If you’re a Philadelphia-based business, you’re going to start seeing your water bill increase starting in July 2010 because the Philadelphia Water Department will now bill separately for the burden your property places on the stormwater management system. Currently, customers are billed for stormwater management based on their metered usage, but the new system will bill customers based on the characteristics of their property—specifically, gross area and impervious area. (Impervious area is any area that prevents water from soaking into the ground.) The change will be phased in over a period of four years.
If you’re not based in Philadelphia, that doesn’t mean you shouldn’t be worried about your water consumption and stormwater management. Water costs are already beginning to rise throughout the U.S., which is why some of the smart companies, like Kraft Foods, have committed to reducing their water consumption substantially. From 2005 to 2008, they reduced their company-wide water usage by 21%, or 3 billion gallons, and exceeded their reduction goal two years early. They’ve now challenged their manufacturing facilities to find an additional 25% reduction in usage over the next few years. These reductions equate to substantial savings.
Many businesses have gotten on board with energy audits and understand that they are a stepping stone to realizing cost savings at their facilities. Have you considered a water audit in the same way? Mapping your water processes provides you with valuable information about how and where your water is used, as well as where there are opportunities to reduce your consumption and reuse water in your operations. Sometimes significant savings can be achieved by doing simple things like fixing leaks and rethinking the amount of water required for cleaning processes.
Additionally, a review of your stormwater practices can help your business identify how you can relieve some of the burden you place on the local water department, and some water departments will give you a credit for this. The side benefit to reducing your water usage is that it can reduce how much energy you use, too. For example, if you use less hot water in your daily operations, you’ll spend less money on the energy to heat that water, too.
There’s no time like the present to take a good look at your water usage and stormwater management programs, especially if you’re a Philadelphia-based business. iSpring can get you started through our iSpring GREEN program and help you realize savings through better water management practices.
March 2010: What Is An Energy Audit and Why Do I Need One?
With the dramatic jump in PPL electricity rates on January 1, 2010, and the pending PECO increases on January 1, 2011, savvy business owners are investigating energy audits for their businesses. But what exactly are energy audits, what can they accomplish and what should you look for in having one done?
Energy audits are one component of a larger sustainability assessment for your business. Often, they are the first step because energy use is one of the largest costs of doing business. Research has shown that 75% of buildings operate inefficiently and energy is the greatest expense, representing as much as 1/3 of operating costs. Whether you’re an office-based business or a manufacturer, that can add up to the potential for significant savings. Because energy represents the opportunity for greatest savings, that’s usually the first target.
An energy audit will analyze all the systems and uses of energy in your operation. That can include building envelope (insulation, roofing, etc.), equipment operation, HVAC system, industrial processes, lighting, motors, refrigeration, office processes, food preparation, and water heating. While your business may not include all these areas, chances are very good that the areas that are included are operating with some degree of inefficiency. Analysis of your energy bills coupled with an evaluation of your built environment and internal processes can uncover the improvements that will provide the greatest payback quickly. That improvement can often be achieved with minimal capital outlay by raising employee awareness and implementing better conservation practices.
More extensive improvements may also be considered, including investment in new, more energy-efficient equipment. The variety of governmental incentives currently available for such upgrades makes this an excellent time to take stock in how to convert equipment and processes for long-term cost savings and sustainability. A complete energy audit should provide a list of all the options and their expected cost and energy savings. By reviewing the entire operation at one time, rather than piecemeal, the business owner has the best opportunity to maximize savings through synergistic improvements. It prevents the problem of correcting one problem only to find it has created another. And having a full list of options allows the business owner to prioritize the implementation of solutions.
While energy audits are often the first step in sustainable cost savings, they are not the only step. Once the energy audit is complete and initial changes and savings are realized, a business can dig deeper into sustainability enhancements in areas such as alternative energy sources, waste stream analysis and recycling, product and service design and transportation and logistics. Coupled with the energy audit, these improvements can set a business on a cost-saving path to greater sustainability.
February 2010: How Incentive Programs Can Offset Your Rising Energy Costs
For those of you who are PPL customers, how did you like that last electric bill your company received? Something of a shock, perhaps? The rate cap for electricity generation expired on January 1, 2010, for all customers of PPL, and prices zoomed up 20 – 40%. And we’re betting for that much extra electrical cost, the coffee you brewed didn’t taste any better.
Now would be an excellent time to consider doing an energy assessment on your facility. There are probably dozens of ways you could reduce that energy cost in your monthly expenses. iSpring can help you find those ways and, thanks to the mandate in Act 129 passed by the Pennsylvania legislature, PPL will help you pay for the improvements.
Act 129 mandated that all Pennsylvania electric distribution companies create a plan to cost-effectively reduce electricity consumption and peak demand on their systems. The electricity reductions must be realized by 2013. PPL’s “Energy Efficiency and Conservation Plan” provides incentives for businesses of all sizes to implement cost-saving energy improvements.
Under PPL’s Efficient Equipment program, an extensive list of business items qualify for rebates, including appliances, insulation, HVAC equipment, motors, refrigeration, water heating, lighting and controls. Upgrading to more efficient equipment alone will save you money. These rebates make the payback period even shorter.
Even more enticing is PPL’s Commercial and Industrial Custom Incentive Program. The program is designed to encourage equipment repairs and optimization and operational or process changes that reduce electricity consumption and peak demand and to encourage a “whole facility” approach to energy-efficiency. Companies undertaking such a project can apply for reimbursement of 50% of the cost of the technical study to identify possible savings. If the company then proceeds with the identified energy-saving improvements, they can then expect additional reimbursement from PPL based on the actual realized savings – up to 100% of the cost of the technical study with a cap of $100,000.
These programs, coupled with January’s price increases, make “NOW” the right time to look at your firm’s energy expenditures. iSpring can get you started with our iSpring GREEN program. Our integrated approach to sustainability assessment means you’ll get the biggest payback for your investment. And now, PPL’s made it more cost-effective.
And remember: if you happen to be a PECO customer, these increases will start affecting you on January 1, 2011. The incentives that PECO is offering under Act 129 are different from PPL, and iSpring can help you navigate PECO's plan. Why not start planning now for the inevitable?
Click here to read more about how iSpring can help you find energy efficiencies in your business and click here to read more about PPL’s Energy Efficiency and Conservation Plan.