Transcript Energy Efficiency through Product & Process Design

This project has been assisted by
the New South Wales Government
through its Energy Efficiency Training Program
Energy Efficiency
through Product & Process
Design
Prepared by
Prepared by Plastics Industry Manufacturers of Australia (PIMA)
in partnership with Australian Management Academy (AMA);
executed in collaboration with EcoProducts
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action or not on the basis of this document.
Office of Environment and Heritage, Department of Premier and Cabinet
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Energy Efficiency
through Product & Process
Design
Module 3 – Energy Efficient
Manufacturing
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Products Agency
3
Key Points
1.
2.
3.
4.
5.
Plastics processing is energy intensive
Energy is a major cost for plastics processors
The cost of energy is rapidly increasing
There are opportunities for energy saving
Major energy saving opportunities are ‘lockedin’ at the design stage
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Products Agency
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What is Energy Efficiency?
1. Thermodynamics definition
–
work output per unit of energy input
2. Economics definition
–
energy cost per $ value added
3. Manufacturing definition
–
energy used per unit of production
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Plastics Processing &
Energy
Plastics processing is energy intensive
Plastic
Manufacturing
Primary
Processing
Secondary
Processing
Product
Energy Inputs:
Processing
Compoundi
ng
Packaging
Transport
Drying
Heating
Moulding
Cooling
Grind scrap
Trimming
Painting
Welding
Assembly
Packaging
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Energy is a Major Cost
Depreciation
6%
Payroll
35%
Maintenance
5%
Rent
Freight
5%
5%
Energy
4%
EBIT
11%
Materials
30%
Business costs for a large plastics manufacturer
(example)
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Products Agency
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Energy is a Major Cost
• Energy costs for plastics processors are typically
3% – 6% of sales revenue
• Similar to profit margins
• Reducing energy costs, without sacrificing quality
and productivity, increases profits
• Energy is a variable cost
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Electricity Cost Trend
Electricity costs are increasing due to:
• Need for higher investment in transmission &
distribution networks
• Increases in generation costs
• Likely increases due to a future carbon price
What are you paying for electricity?
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Products Agency
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Electricity Cost Trend
$500,000
$450,000
$400,000
$350,000
$300,000
2000 MWh/yr
$250,000
1500 MWh/yr
1000 MWh/yr
$200,000
500 MWh/yr
$150,000
$100,000
$50,000
$0
2009/10
2010/11
2011/12
2012/13
Annual electricity costs for typical plastics processing businesses
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Products Agency
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Electricity Cost Trend
$500,000
$450,000
$400,000
$350,000
$300,000
2000 MWh/yr
1500 MWh/yr
$250,000
1000 MWh/yr
$200,000
500 MWhr/yr
$150,000
$100,000
$50,000
$0
2009/10
2010/11
2011/12
2012/13
Annual electricity costs for typical plastics processing businesses with CPRS
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Products Agency
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Energy Saving
There are three opportunity areas for energy
saving:
Design product to meet:
• Customer needs
• Specifications
• Marketing
requirements
Design process to:
• Make the product
• Meet quality
standards
• Minimum energy
use
Product Design
Optimize process:
• Increase
productivity
• Reduce wasted
energy
• Reduce scrap
Process Design
Process Optimization
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Process Optimization
• Applies to existing products and processes
– Energy management
– Adjusting process conditions
– Maintenance
• Typically provides 10-20% energy savings
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Process Optimization
$100
$85
Energy Cost
15%
Product
Design
Process
Design
Process Optimization 15%
saving
Process
Optimization
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Process Design
• More energy savings can be obtained by
process design for existing products
– Investment in energy efficient equipment
– Improvement of existing equipment
– Automation
• Capable of providing 10-30% energy savings
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Products Agency
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Process Design
Energy Cost
$100
28%
$72
Product
Design
Process
Design
Process
Optimization
Process Optimization 15%
saving
Process Design
15%
saving
TOTAL (cumulative)
28% saving
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Products Agency
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Product Design
• More opportunities are available at the product
design stage
– Selection of materials
– Weight reduction
– Design for energy efficient processes
• Hard to predict, but 5-50% energy savings are
possible
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Products Agency
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Total Energy Saving
Energy Cost
$100
49%
$51
Product
Design
Process
Design
Process
Optimization
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Products Agency
Process Optimization
15% saving
Process Design
15%
saving
Product Design
30%
saving
TOTAL (cumulative)
49% saving
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Total Energy Saving
Most of these potential savings are ‘locked in’ at
the design stage
Process
Design
(21%)
Process Optimization
(18%)
82%
© Australian Management Academy & Eco
Products Agency
Product Design
(61%)
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Summary
•
•
•
•
Plastics processing is energy intensive
Energy is a major cost for plastics processors
The cost of energy is rapidly increasing
There are 3 opportunity areas for energy saving:
– product design, process design, process optimization
•
Major energy saving opportunities are locked in at
the design stage
© Australian Management Academy & Eco
Products Agency
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