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Dow’s Energy Management System
Joe AlmaguerSept. 2015
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• Largest diversified chemical company
• Founded in Midland, Michigan in 1897
• Manufacture more than 6,000 products at 200 sites in 36 countries across the globe
• Annual sales of $58 billion
• 53,000 employees worldwide
• One of the world’s largest industrial energy consumers….about 500 Trillion BTUs/Year
• Committed to Sustainability
About Dow
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2014 Sales by Operating Segment & Geographic Area(dollars in millions)
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North AmericaSales: $21,422
Latin AmericaSales: $7,939
Europe, Middle East, Africa and IndiaSales: $19,671
Asia PacificSales: $9,135
2014 Sales of $58,167 million
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• Sustainability of the Business• Save money…………….$ 29 Billion
• Competitive advantage…..lower cost to produce
• Environmentally Responsible
• Lower carbon liability……lowers emissions
• Product attractiveness……lower footprint
• Creates Local Prosperity, Jobs…..
• Sustainable businesses create local jobs and wealth
Committed to Energy Sustainability….Why?
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Committed to Energy Productivity
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Key to Success
DOW CONFIDENTIAL - Do not share without permission
The primary reason we have enjoyed this level of sustained success is attributed to having an established, institutionalized and comprehensive Energy Management System (EnMS).
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Energy Management System
What is an Energy Management System?
ISO 50001 definition:“energy management system, EnMSA set of interrelated or interacting elements to establish an energy policy and energy objectives, andprocesses and procedures to achieve those objectives”
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Key Elements of Dow’s Energy Management System
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Driving Energy Efficiency at Dow
Our Corporate Commitment:• Our Sustainability Commitment
and Policies establishes energy performance as a corporate objective.
• Defines Company Values to Stakeholders
• Establishes Expectations for Leaders
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Corporate Commitment
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The Dow Public Report
Corporate Commitment & Accountability
www.dowpublicreport.com
Public Commitment:
• In 1995 Dow Committed:
• To Reduce Energy Intensity
• By 20% by the year 2005
• From Base Year 1994
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We will further reduce our global energy intensity by 25% from 2005-2015
We will reduce our GHG emissions intensity by 2.5 % per year thru 2015
By 2025, we aspire to reduce absolute emissions within the company
“No one in the world is more intenselyaware of the need, ultimately, to reinventour dependency on oil and natural gasthan we are… We will lead the way on energy transformation because we have to. And we have taken important steps already.”
-- Andrew LiverisChairman, CEO & PresidentThe Dow Chemical Company
Corporate Commitment to 2015 Goals
Liveris Launches 2015 Sustainability Goals
Corporate Commitment & Accountability
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Driving Energy Performance at DowTop Leadership Responsibility:• Appoints an overall EE&C Global Leader to
establish and implement the overall EnMS across Dow.
• Business - Appoints EE&C Leader to drive EE&C within the business
• Site Leader – Appoints EE&C Leader to lead the site in advancing energy performance
• Sets Overall Long Range Goals • Establishes Priority• Provides Resourcing and Funding• Establishes Performance Accountabilities• Visibly Models Action
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Senior LeadershipSupport
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Driving Energy Efficiency at DowOrganizational Structure:• Global EE&C Leader• Implementation Leader(s)• Implementation Teams• Energy Teams Networks• Roles & Responsibilities
Implementation:– Develops Management Systems– Establishes Implementation Model– Leads Teams and Networks:
Globally/Sites/Businesses– Develops Specific Plans to Achieve Goals – Identify Energy Saving Opportunities– Implement EE&C Projects– Monitor and Report Progress– Promotes EE&C Culture Locally– Leverages Success
Energy Efficiency& Conservation
Energy Efficiency& Conservation
OrganizationalStructure
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Driving Energy Efficiency at DowOrganizational Structure:
Plant E 5Plant D 5Plant C 5Plant B 5Plant A 5Site 5 EE Leader
Plant E 4Plant D 4Plant C 4Plant B 4Plant A 4Site 4 EE Leader
Plant E 3Plant D 3Plant C 3Plant B 3Plant A 3Site 3 EE Leader
Plant E 2Plant D 2Plant C 2Plant B 2Plant A 2Site 2EE Leader
Plant E 1Plant D 1Plant C 1Plant B 1Plant A 1Site 1EE Leader
Business E
EE Leader
Business D
EE Leader
Business C
EE Leader
Business B
EE Leader
Business A
EE Leader
EE&C Global Leader
Plant E 5Plant D 5Plant C 5Plant B 5Plant A 5Site 5 EE Leader
Plant E 4Plant D 4Plant C 4Plant B 4Plant A 4Site 4 EE Leader
Plant E 3Plant D 3Plant C 3Plant B 3Plant A 3Site 3 EE Leader
Plant E 2Plant D 2Plant C 2Plant B 2Plant A 2Site 2EE Leader
Plant E 1Plant D 1Plant C 1Plant B 1Plant A 1Site 1EE Leader
Business E
EE Leader
Business D
EE Leader
Business C
EE Leader
Business B
EE Leader
Business A
EE Leader
EE&C Global Leader
Site EE&C Teams
Business EE&C Teams
• Charter• Leadership• Membership• Plans• Roles
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Driving Energy Efficiency at Dow
Business EE&C TeamStructure
Sponsor
Bus EE&C Team Leader
Plant/UnitFocal Point
Plant/Unit Focal Point
Plant/Unit Focal Point
Plant/Unit Focal Point
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Driving Energy Efficiency at Dow
• Working with Business Leadership in the development of business energy performance goals and targets that support Dow’s 2015 EI targets.
• Developing and implementing any additional energy performance indicators, (EnPIs), that may be useful in measuring, tracking, assessing and improving the energy performance of manufacturing assets.
• Leading energy advocacy within the business• promoting an energy efficiency and conservation culture• communicating energy performance goals, objectives and targets• providing EE&C system training• engagement of personal in improvement of energy performance
• Identifying plant level energy improvement leaders who are accountable at a local level for advancing the businesses energy performance improvement goals and objectives
• Developing and maintaining plant-by-plant EI improvement plans• Tracking and reporting progress against targets and goal, plant by plant and at the business level • Conducting periodic reviews with business leadership on effectiveness of the EE&C program,
progress/results and future plans • Maintaining the accuracy of the data that goes into GAUR-Energy Reports used for tracking EI • Coordinating and or leading plant energy assessments as a means of identifying energy saving
opportunities • Participating in Energy Optimization VIP sessions for new projects within the business • Leveraging EI improvement projects/learning/opportunities within the business and exporting to others
as appropriate• Active participation and support of the Energy Efficiency and Conservation Network
Business EE&C Leader Role:
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Driving Energy Efficiency at Dow
Site EE&C TeamStructure
SponsorSite Leader
Site EE&C Team Leader
Plant/UnitFocal Point
Maintenance Focal Point
Communications Focal Point
Engineering Focal Point
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Driving Energy Efficiency at Dow
• Assembling and leading a cross functional team to establish, implement, maintain and improve the Site’s Energy Management System (EnMS) and drive energy performance improvement
• Leading energy advocacy within the site • promoting energy efficiency and conservation culture • communicating energy performance goals, objectives and targets within the site • providing EE&C system training • engagement of personal in improvement of energy performance
• Work with Site Leadership in the development of Site Energy Policy and Performance Goals • Developing and maintaining an energy improvement plan • Tracking and reporting and communicating energy performance improvement, plant by plant and at the
site level, through periodic Site Leadership Review Sessions (i.e. SLT meetings) • Helping to maintain the accuracy of the data that goes into GAUR-Energy Reports used for tracking
energy performance by periodically reviewing the data • Conducting periodic assessments/reviews of the Site EE&C program to ensure full implementation and
continual improvement • Coordinating and or leading site/plant energy assessments as appropriate as a means of identifying
energy saving opportunities; i.e. Site wide Assessments, targeted assessments, etc. • Participating in Energy Optimization VIP sessions for qualifying new projects within the Site • Leveraging EI improvement projects/learning/opportunities within the site and exporting to others as
appropriate • Active participation and support of the Energy Efficiency and Conservation Network
Site EE&C Leader Role Includes:
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Driving Energy Efficiency at DowEnergy Measurement & Reporting Systems:• Robust Energy Accounting System
– Metering Program– Sub-metering – Energy Conversion to Common Btu’s; Btu’s/lb– Baselines and Energy Performance Indicators
(EnPIs)• Established Accounting and Business Rules• Energy Reports Capabilities:
– Drill down: Business / Site / Plant / Facility – Converts Data to Useful Information– Available to all Leaders and Employees– Basis for Monitoring and Reporting Progress
• Energy Training• Internal Report• Public Sustainability Report
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Measurement& Reporting
Energy Intensity (BTU/LB)
3,600
3,650
3,700
3,750
3,800
3,850
3,900
3,950
4,000
4,050
4,100
Total 4,052 3,894 3,927 3,950 3,949 3,937 3,914 3,773 3,821 3,868 3,833
1 2 3 4 1 2 3 4 1 2 3
2004 2005 2006
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Dow’s Energy Use and Consumption• Dow is among the largest Industrial Energy Consumers
– Annual Energy Consumption Globally ≈ 500 Trillion Btu’s– US Operations Consumption is ≈ 300 Trillion Btu’s/Yr– Data Analysis is used in performing Energy Reviews
Freeport 25%
Plaquemine 13%
Stade 8%
Terneuzen 12%
St Charles Operations 7%
Fort Saskatchewan 6%
Dow Central Germany 6%
Bahia Blanca 4%
All Other Sites 12%
Tarragona 3%
Seadrift 2%
Aratu 2%
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Committed to Energy Productivity
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Driving Energy Efficiency at Dow
Energy Review and Improvement Plans• Energy Assessments of Existing Assets (plants, systems, facilities,
etc.)• Improvement Work Process
– To Identify Defects:• Energy Waste • Inefficiency• Sub-Optimized Systems• Operations & Maintenance Issues
– Finding Optimum Solutions– Integrate Projects into Capital Program– Prioritize & Compete for Funding– Corrects the Defect– Establish a Control Plan to Sustain the Gains
• Results in Incremental Energy Efficiency Improvement
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Improvement Methodology
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Energy Efficient Design of Systems
Designing in Energy Efficiency– Energy Optimization VIP:
• Energy Optimization is a structured, team based and expert supported effort directed towards developing the optimal balance between the cost of energy and capital expenditures in projects to achieve the minimum long-term cost of ownership. The return of investment is improved by investigating three layers:
optimize fit of process into existing site power and utility system define the most economic level of heat recovery within the process utilize energy optimized process building blocks (unit operations)
• Energy Optimization is used to maximize the impact of our capital spending and increase our global competitiveness.
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Improving on the Best• Opportunity to Build a More
Efficient Plant Than Current Benchmark
• Overall Energy Intensity is Improved
Plant Intensity Benchmark
0
500
1,000
1,500
2,000
2,500
ALTONA, AUS ARATU, BRA FREEPORT, TX PLAQUEM INE, LA STADE, DEU
Energy Intensity Average Intensity
Plant Intensity BenchmarkW/O Optimization
0
500
1,000
1,500
2,000
2,500
ALTONA, AUS ARATU, BRA FREEPORT, TX PLAQUEM INE, LA STADE, DEU
Energy Intensity Orig Avg 2 EI
Plant Intensity BenchmarkWith Optimization
0
500
1,000
1,500
2,000
2,500
ALTONA, AUS ARATU, BRA FREEPORT, TX PLAQUEM INE, LA STADE, DEU
Energy Intensity Orig Avg 2 EI Final EI
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Employee Communication Systems:System(s) That Facilitate Sharing or Communication on: • Dow Sustainability Commitments• Performance Reporting• Challenges & Success Stories
– Big Energy Savings, Recognition at TCO – Texas Operations LHC-7 Wins ACC Responsible
Care® Award • Benchmark Information• Employee Engagement• Messages from Leadership Team• Submit an Idea • Energy Efficiency & Conservation Website
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Communication Systems
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Driving Energy Efficiency at Dow
Goals and Compensation:To Help Drive Accountability Throughout
the Organization • Set Challenging Annual Goals
– Corporate Goals– Business Goals– Site Goals– Plant Goals– Team Goals– Individual Goals
• Link to Compensation :– Compensation Linked to Goal Attainment &
PerformanceEnergy Efficiency& Conservation
Energy Efficiency& Conservation
Goals & Compensation
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Driving Energy Efficiency at Dow
RecognitionExternal Examples: • Power 9 Operating Employees Save Energy• Small Steps Lead to Big Energy Savings, Recognition at TCO • Texas Operations LHC-7 Wins ACC Responsible Care® Award• Dow Named Energy Star Partner of the Year 2008• Dow data Centers Reduce Energy by 50%• Several Dow Plants have been recognized by the Dept of Energy
for achieving significant energy savings following System Assessment under the Save Energy Now Program.
• Internal Recognition System:– Dow Recognition System: - Enables Recognizing employees
for the EE&C Efforts– Energy Efficiency Newsletter
Energy Efficiency& Conservation
Energy Efficiency& Conservation
Goals & Compensation
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Efficiency and The Triple Bottom Line
Good for Business:Saves Money, Enhances Global Competitiveness, Preserves Jobs, Creates Prosperity for Shareholders
Good for the Environment:Fewer GHG Emissions, Part of theSolution to Global Climate Change
Good for Society: Reduces Demand, Lowers Energy Bills, Promotes Energy Security
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Thank You
Joe AlmaguerThe Dow Chemical Co.
Telephone: +1 832 466 2486
Email address:[email protected]@gmail.com