Building the Energy Program One Piece at a Time

Sharon Nolen, P.E., CEM TN Environmental Conference – Meadowview

March 13, 2013

Agenda  Eastman Chemical Company Overview  Building 469: A Case Study  Energy Management Program

•  Organization •  Guiding Principles •  Strategy

 Building 469: Results

Eastman Chemical Company Overview Building 469: A Case Study Energy Management Program Building 469: Results

Who we are   A global specialty chemicals company headquartered in Kingsport, Tennessee

  Approximately 13,500 employees and over 44 manufacturing sites around the globe

  A company dedicated to environmental stewardship, social responsibility and economic growth

  ENERGY STAR® Partner of the Year two years (2012/2013)

  Combined 2011 sales revenue of approximately $9.3 billion

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Our manufacturing locations

Major end-markets

Automotive Building & Construction

Tobacco Packaging

Consumer Goods

Our Eastman culture matters

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Sustainability is an attitude and not an activity to participate in from time to time. It’s not a fad or unwelcome burden... but the constant awareness of one’s environment and actions.

It is an opportunity to use our creativity and innovation to be part of the solution, for our world today and for future generations.

Godefroy Motte Senior Vice President, Chief Regional and Sustainability Officer Eastman Chemical Company

Eastman Chemical Company Overview

Building 469: A Case Study Energy Management Program Building 469: Results

B469: A Case Study   14,960 square feet   37 People   53 Computers

  8 Heat Pumps   Fixed Outside Air Flow   Above the Ceiling Return Plenum

B469 qualifies for ENERGY STAR label

Eastman Chemical Company Overview Building 469: A Case Study

Energy Management Program Building 469: Results

Regular Reports

Energy Management Program

Executive Steering Team

Energy and Climate

Change Policy Team

Energy Management

Team

Worldwide Manufacturing

Team

VP&GM, Worldwide

Manufacturing Support

Guiding principles

Ensure the accuracy of utility information • Creates a basis for

sound business decisions

• Required for accurate reporting and life cycle assessments

Maximize operating efficiency • Control processes to

reduce energy usage • Maintain equipment at

design performance • Operate intelligently to

keep efficiency high

Incorporate energy efficiency in capital investments • Minimize lifetime

equipment costs • Consider the impact on

carbon emissions

ENERGY STAR® Guidelines for Energy Management  Effective to structure a new energy program or to

identify gaps in an existing program  Utilizing the guidelines have led to:

•  Increased management visibility and involvement •  Over $10 million in funding for energy

projects in 2012 •  2012 energy savings of $8 million •  Comprehensive database with over

1,000 energy-saving ideas •  Better understanding of energy intensity drivers

2013 ENERGY STAR® Partner of the Year   The U.S. Environmental Protection

Agency (EPA) has named Eastman a 2013 ENERGY STAR Partner of the Year for strategically managing and improving energy efficiency during 2012.

  Through its partnership with the ENERGY STAR program, Eastman has   Improved its energy performance   Saved money   Helped to protect the environment

for future generations

  Eastman is the only chemical company to every achieve the distinction of ENERGY STAR Partner of the Year more than once.

 Continuously improve energy efficiency and minimize overall energy impact while contributing to regulatory compliance

 Five pieces are key to the strategy •  Energy Awareness •  Goals and Measures •  Knowledge Resources •  Site Wide Initiatives •  Energy Efficiency Projects

Energy Management Strategy

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Energy Awareness   Employee Engagement

•  ENERGY STAR® Pledge •  Annual Eastman Energy Fair •  Green Team

  Communication and Training •  “Energy Wise” SharePoint site •  Intranet articles •  Posters in dining, break,

and conference rooms •  On-line training •  Training for managers to become sustainability ambassadors

Encourage participation in 2012 ENERGY STAR pledge  Eastman was ranked in

the top five in the business sector for pledge campaign ending in 2012

 Over 200 employees signed the pledge at the fair, including Eastman’s Executive VP and Chief Sustainability Officer

Raise awareness of things employees can do at home/work to save energy

  Eastman recently held 2nd annual energy fair

  Over 750 employees and contractors attended

  Energy Team members demonstrated the work required to power a CFL bulb vs. an incandescent

  Local stores and utilities shared energy saving ideas

Goals and Measures  Energy Intensity Measures

•  Energy intensity measures are tracked at a site level •  Feedback on current performance •  Prediction of future performance

 Monitor and Drive Performance •  Quarterly reports to the CEO •  Frequent review by energy engineers

Knowledge Resources   Internal Sharing of Best Practices

•  Corporate Energy Management Team •  Worldwide Utilities and Energy Forum •  Site energy teams

 External Resources •  ENERGY STAR® Partner •  Better Buildings, Better Plants •  Consultants

Corporate Energy Initiatives   Initiatives:

•  Leaks •  Lighting •  Insulation •  Steam Traps •  Metering

•  Motor Efficiency •  HVAC

 Evaluation •  Identification of best practices •  Degree of implementation

Steam Leak Initiative Survey   What percent of total steam production is lost in leaks?

  Is there a person with assigned responsibility for overseeing the repairing of leaks?

  Frequency of site wide surveys?

  Number of leaks detected in the last 12 months (or last survey cycle if survey frequency is longer than 12 months)?   Of the number of leaks detected in the last 12 months (or last survey cycle if survey frequency is longer than 12 months), how many have been repaired?

  Do you track leak repairs in a database/spreadsheet?

Energy Efficiency Projects  Capital Energy Efficiency Projects

•  Metering and efficient equipment included in designs •  Energy surveys for project identification •  Capital budget for economically viable projects

 Manufacturing Processes Modification •  Adjustments in operating procedures •  Long-term research to identify process

redesign opportunities •  Inventory management to

attain energy-efficient production rates

Example Projects   Running a line from a source of high pressure natural gas to

eliminate a compressor used on low pressure natural gas

  Installing O2 meters to allow tighter control of excess air in a combustion process

  Replacement of old equipment with newer more efficient equipment (i.e. boilers, pumps)

  Installing additional piping to allow condensate return

  Fine tuning temperatures of heat exchangers using refrigeration and steam to meet but not exceed requirements

  Installing variable frequency drives to eliminate control valves

Eastman Chemical Company Overview Building 469: A Case Study Energy Management Program

Building 469: Results

How B469 Earned the ENERGY STAR Label

 Lighting Changes •  More efficient lighting •  Fewer light fixtures

 Monitor Thermostats •  Maintain temperature set points at 72F •  Ensure that all thermostats are in the same

mode

  Improved Insulation •  Identified poorly insulated areas using infrared

thermography

How B469 Earned the ENERGY STAR Label

  Occupant Involvement •  Turn off lights at the end of the work day •  Put computers in sleep mode at the end of

the work day •  Turn off TV in canteen when not occupied •  Call the energy team when temperatures

are a problem   Occupant Comfort

•  Improved thermostat locations •  Diffusers

  Balanced flows   Relocated as needed   Changed diffuser type as needed

•  Installed personal dampers as needed   Personal Heaters Used Less

Continued Energy Use Intensity Reduction

 Building Automation System •  Use occupancy schedule to control HVAC and lights •  CO2 controlled outside air •  Control and troubleshoot via network server

 EnerLogic™ Window Film •  Minimizes solar heat gain in the summer •  Minimizes radiant heat loss in the winter

 Lighting Changes •  Reduce the number of lights that remain on 24/7

 Continued Focus on Occupant Comfort  Continued Occupant Involvement  Continued Communication about Energy Use with

Occupants

Summary  Energy management requires a focused effort to succeed

 Gains can be achieved with education and awareness but diligence will be required to maintain

 Financial investments can result in step changes and some have attractive paybacks

 These strategies can be applied on a macro or micro level with good results

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Questions?