Natural Gas Conservation ProjectAlexi Douvas

Joey Feitz John ForbesSean Reilly

Ashley Ritchie Jitka Sykora

PEPSI BEVERAGE COMPANY

Agenda

Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions

• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution

• Conclusions

GOAL: 5% savings

Other Objectives•Develop strategic and economic project rationales

•Developing key performance indicators (KPI)

•Create a facility wide awareness program

Turning Point

Agenda

Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions

• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution

• Conclusions

CONSTRAINTS FOR SAVINGS

Same level of product quality

No hidden costs

Quick wins under $2000

Taking things for granted

Turning Point

Less Gas, Same Bill

Turning Point

Pepsi is projected to spend more money, even while using less gas.

Money Spent vs. mmBTU’s consumed

Agenda

Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions

• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution

• Conclusions

WHY ARE WE DOING THIS NOW?

Turning Point

6.4% gas prices increase

Equipment Breakdown

Government Regulations

MOUNTING PRESSURE

Turning Point

Facility manager

Gas price

Breaking Equipment Regulations

Agenda

Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions

• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution

• Conclusions

Set Goals Keep Score Win!!!

Goal:5%

Suggested Projects

Phase I – Quick Wins• Water Heater Schedule(1.1% gas saved)• Valve Insulation (0.3% gas saved)Phase II – Capital InvestmentsPhase III – Awareness

Suggested Projects

Phase I – Quick Wins Phase II – Capital Investment

• Replace 40 year old boilers with the high efficiency heaters

• Temperature equalization• Incoming Air Temperature Controls• Process Pump Automation

Phase III – Awareness

Suggested Projects

Phase I – Quick WinsPhase II – Capital InvestmentsPhase III – Awareness

• Share Wins on Local and National Level • Inspire a Proactive Efficiency• $92,000/year savings

Scalable Approach to Natural Gas Efficiency

Natural Gas Nationwide ProgramTool to help individual plants accomplish

natural gas efficiency goals.

Identify Plant Inefficiencies

Agenda

Natural Gas Conservation Initiative• Overview• Potential Issues• Decisions• Suggested Solutions

• Phase I – Quick Wins• Phase II – Capital Investments• Phase III – National Execution

• Conclusions

Set Goals Keep Score Win!!!QUICK WINS Cost % Gas Saved PaybackWater Heater Schedule $368 1.1% 2 months

Valve Insulation $2,001 0.3% 2.8 years

CAPITAL INVESTMENTS Cost % Gas Saved Payback

Direct Flo Heaters (4) $308,920 19% 4.0 years

Air Equalizer $70,890 16% 2.6 years

Incoming Air Temp. Control $13,679 8.9% 1 year

Q & A

APPENDIX SLIDES•Boilers

•Thermal Equalizers•Heat Controls•Nationwide

Implementation•Makeup Air•Quick Wins

What is the Current System?

How can this be improved?

What Are the Options?

How do the systems compare?

How Can the System be Improved?

What are the savings and costs of each option?

Annual Savings: Bill Savings: $43,409 annuallyAvoidance: $34,000 annuallyCarbon Dioxide: 1,646,166 lbs

What are the Annual Savings?

How do the benefits of each system relate to total costs?

As gas prices trend up, the highest benefits are captured through implementing heater units

What are the Aggregate Costs??

Given the costs and benefits, what will the annual expenditure schedules look like?

As savings accumulate, the long-term cost differentials reach over $500,000

How do Annual Expenditures Compare?

Basic cost structure aside, what are the benefits of direct heating units?

What Benefits Does the Direct Flo System Provide?

What different scenarios should you be prepared for?

Financial Measurements

Total Capital Outlay $380,920

Annual Savings $43,409

4-Months Operational $33,592

6-Months Operational $41,415

8-Months Operational $55,220

Payback Period (adjusted for tax & dep.) 4 years

Gas Savings per Year 7,206.03-11,845.53 MMBtu

Annual Carbon Dioxide Emissions Savings 842,889.47-1,385,571.73 lbs

NPV

Worst Case $159,013

Base Case $189,624

Best Case $209,209

Return

Heat Regulation: What is the current system?

How can this be improved?

Automating the Process Pumps

Total Capital Outlay $640

Annual Savings $4,758

Payback Period 49 days

Gas Savings per Year 916 MMBtu

Return

Nationwide Gas Savings Checklist

Track daily gas usage!

Use building temperature controls to eliminate unnecessary

equipment usage

Maintain Boilers

Perform visual inspection of steam distribution

Evaluate building heat distribution

Is exchanged air being heated on hot days?Are process pumps creating excessive demand?

How near replacement are they? Replace old boilers with Flo heaters?

Are all valves and pipes insulated?

Is heat being wasted at the ceiling?

Q+A

Two-thirds of natural gas use goes toward heating the building

The temperature difference between ceiling and floor is estimated to be 10.8 degrees

The Air Pear reduces heating and cooling costs by equalizing air temperature throughout the room

Air Pear

Because Heat Rises

Air Pear

• Stratifies the air by forcing a column of hot air from the ceiling to the cooler air below

• As the warm air is pushed to the floor, the Air Pear draws in the surrounding colder air and begins to rise again, creating a torus

• This action warms the cooler air, increasing the temperature of the room

Utilizing Air Stratification

Total Capital Outlay for Both Areas $70,492

Annual Savings $36,255

Payback Period 2.6 years

Gas Savings per Year 7111 MMBtu

Return

Makeup Air System Controls

•Previous settings were wasteful

•New goal: Heat turns on when temp falls below 45º

•Daily Savings: $323.32/day (temp. above 45º)

•2009 Potential Savings: $19,422.90

Total gas savings: 8.9%

Total Capital Outlay $13,679.04 (1-Time Cost)

Annual Savings $19,422.90

Payback Period 246 days

Gas Savings per Year 4494.36 MMBtu

Q&A

Quick Wins: Water Heater Schedule

Return

Current Process:

•Hot water heated to 134 F

•7 days / week

•24 hrs / day

Recommended

Process:

• Program cycles based on temperature of hot water

•OFF at 134F

•ON at 100F

•Savings occur at off-peak hours

1.1% gas savings ~ $2,190 per year ~ 2 month payback period

Quick Wins: Valve Insulation

Return

Current Process:

•Uninsulated necks of valves

•Loosing 4% radiant heat

Recommended

Process:•ISO covers for 9 uninsulated valve necks

•Corrosion prevention

•Easier maintenance

0.3% gas savings ~ $704 per year ~ 2.8-year payback period