This project has been assisted by the New South Wales Government through its Energy Efficiency Training Program

Energy Efficiency through Product & Process Design

in partnership with Australian Management Academy (AMA); executed in collaboration with EcoProducts

Copyright and disclaimer

The Office of Environment and Heritage and the State of NSW are pleased to allow this material to be used, reproduced and adapted, provided the meaning is unchanged and its source, publisher and authorship are acknowledged.

The Office of Environment and Heritage has made all reasonable effort to ensure that the contents of this document are factual and free of error. However, the State of NSW and the Office of Environment and Heritage shall not be liable for any damage which may occur in relation to any person taking action or not on the basis of this document.

Office of Environment and Heritage, Department of Premier and Cabinet Phone: (02) 9995 5000 (switchboard) Email: [email protected]

Website: www.environment.nsw.gov.au

2

Energy Efficiency through Product & Process Design

Module 2 – Sustainable Manufacturing

© Australian Management Academy and Eco Products Agency

3

Key Points

1. Definitions of sustainability 2. Sustainability in manufacturing 3. Environmental impacts 4. Drivers of energy efficiency

© Australian Management Academy and Eco Products Agency

4

Sustainability

Sustainability means: “

to meet the needs of the present without compromising the ability of future generations to meet their own needs

” (UNED 1987)

© Australian Management Academy and Eco Products Agency

5

Sustainability

“… using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained and the total quality of life, now and in the future, can be maintained” (Australian Government, 1992)

© Australian Management Academy and Eco Products Agency

6

The 3 Pillars of Sustainability

Environment

Viable Bearable

SUSTAINABLE Economy Society

Equitable

© Australian Management Academy and Eco Products Agency

7

Sustainability in Manufacturing

• Reduce environmental impacts • Preserve and expand the economic and social benefits

© Australian Management Academy and Eco Products Agency

8

Sustainability in Manufacturing

Explore entire areas within value chain for opportunities

Market Opportunities

• Know the customer • Sell functional (rather than material) offerings • Provide users with comprehensive solutions • Create new businesses with add-on services • Improve customers’ eco-efficiency d ig r p s e in r ts C o d t l ig o e n e r c s a r r

Companies can identify business opportunities in eco-efficiency in four different areas.

© Australian Management Academy and Eco Products Agency

9

Environmental Impacts

2. Ozone depleting substances • Ozone (O 3 ) is produced in the stratosphere and blocks harmful UV radiation • CFCs introduced in 1920s – Refrigerants – Foam blowing agents • Producing ozone hole • CFCs now phased out

© Australian Management Academy and Eco Products Agency

10

Environmental Impacts

3. Air & water pollution – – Emissions from manufacturing of plastics • • Release of harmful additives Brominated flame retardants Perfluorooctinate sulphate flame retardants – – Dioxins from incorrect incineration of PVC Discharge of plastic pellets into waterways

© Australian Management Academy and Eco Products Agency

11

Environmental Impacts

4.

Litter – Land litter due to incorrect disposal – Marine litter from dumping and via water ways from land

© Australian Management Academy and Eco Products Agency

12

Environmental Impacts

5.

Solid wastes – Landfill permanently changes the environment – Some countries have banned plastics from landfill

© Australian Management Academy and Eco Products Agency

13

Environmental Impacts

6.

Climate Change

– Greenhouse gas emissions (GHG)

• electricity generation by suppliers • fuels used on-site • fuels used for transport – Energy use is the main cause of GHGs in manufacturing

© Australian Management Academy and Eco Products Agency

14

GHG Emissions from Electricity

Australia has one of the highest greenhouse gas emission intensities for electricity

© Australian Management Academy and Eco Products Agency

15

Central Role of Energy

Energy is critical to manufacturing: – Process machinery – Process heating & cooling – Transport – Lighting – Offices and IT

© Australian Management Academy and Eco Products Agency

16

Drivers of Energy Efficiency

Voluntary drivers – Environmental Management Systems • ISO 14001 accreditation – Triple bottom line reporting – Corporate Social Responsibility – Product Stewardship – Life Cycle Assessment or ‘Carbon footprinting’ – Eco-label accreditation of products

© Australian Management Academy and Eco Products Agency

17

Drivers of Energy Efficiency

Legislative drivers – Energy Efficiency Opportunities program

Energy Efficiency Opportunities (EEO) Act 2006

Large energy users are required to undertake a program for finding Energy Efficiency Opportunities, and implement any with a payback of < 4 years.

Applies to organizations using > 0.5 PJ energy per year

© Australian Management Academy and Eco Products Agency

18

Drivers of Energy Efficiency

Reducing energy costs • Rising energy prices are inevitable – Already happening to pay for new infrastructure – A carbon price will happen (tax or CPRS) • Energy efficiency is a profitable way for manufacturers to reduce carbon footprint

© Australian Management Academy and Eco Products Agency

19

50 40 30 20 10 0 -10 -20 -30 -40 -50 $/te CO 2 eq

Drivers of Energy Efficiency

GHG Abatement Cost Curve

© Australian Management Academy and Eco Products Agency

20

$/te CO 2 eq 30 20 10 0 -10 -20 -30 -40 -50 -60 -70 -80

Drivers of Energy Efficiency

GHG Abatement Cost Curve

© Australian Management Academy and Eco Products Agency

21

Summary

• Manufacturing has environmental impacts • Energy use results in significant environmental impacts • Energy efficiency is driven by – Voluntary drivers – Legislation – Increasing cost of energy • Energy efficiency is a cost effective means of reducing environmental impact

© Australian Management Academy and Eco Products Agency

22