Buildings Evolved have extensive experience in large scale industrial energy management system projects, having worked with companies like Coca Cola Amatil, Parmalat and others.
The opportunity
Plan, get grant funding, increase energy productivity, reduce cost, and emissions, and realise new income streams
Realise an industrial energy management system (EnMS) standard, install sensors on key plant and equipment, understand the business case for equipment replacement, get a government grant to replace inefficient equipment.
- Payback, typically ~ 18-months from implementation of an EnMS
- ROI, energy and carbon reduction, exceptional capex and opex reduction compared to BAU.
How many industrial facilities can say they know how efficient their operational equipment is? Or how much money they could save by upgrading inefficient equipment for electrification, fuel switching, thermal storage, hybrid renewable energy, bioenergy and other infrastructure that supports decarbonisation?
In our experience, few industrial companies have sub-metering on key energy consuming equipment. Sub-metering enables KPI tracking for:
- Energy efficiency - tracking baseline performance over time.
- Energy productivity - cost per unit of production per machine.
- Preventative maintenance - acting on performance issues before issues arise.
AS/NZS ISO 50001:2021
However, sensor data does not have any inherit ability to reduce consumption and emissions. Energy KPIs must be incorporated into organisational systems and processes to produce results.
AS/NZS ISO 50001:2021 is an adopted Australian framework of the global ISO 5001 standard, specifying the requirements for establishing, implementing, maintaining and improving an EnMS. The intended outcome is to enable an organisation to follow a systematic approach in achieving continual improvement of energy performance and the EnMS.
The figure below shows how an EnMS can be realised at low cost by leveraging grant funding, and maximising ROI using data and the modelling tool:
Key benefits
A framework to manage energy
ISO 50001 provides the structured policies, processes, procedures and action plans to implement energy saving opportunities from a ’top-down’ approach.
Planning sessions at a high-level will function to (acronym alert):
- Identify the most significant energy consuming plant & equipment.
- Identify Significant Energy Users (SEUs) and set targets.
- Against each SEU, determine Energy Performance Indicators (EnPIs).
- Develop a list of Energy Conservation Opportunities (ECOs) for Modelling.
Modelling the business case
The rapid cost assessment, a micro econometric software solution will highlight pathways to electrification and efficiency that provide returns on investment, allowing preparation of accelerated capital equipment replacement and electrical infrastructure upgrades. This allows leveraging of government grants for plant and equipment upgrade that yields efficiency dividends and reduction in scope 1 and scope 2 emissions.
Key outcomes of modelling
- Conduct multiple data-driven energy models specifically tailored to organisational need, utilizing an organisation’s own data.
- Identify the most optimal technological combinations to establish a robust business case.
- From the opportunity modelling deliverable, review which ECOs to implement.
Grant funding opportunity
Organisations who adopt and industry standard can easily demonstrate emissions reductions and apply for $500K-$50M in grant funding to further improve their EnMS.
The Powering the Regions Fund – Safeguard Transformation Stream Round 1 grant opportunity will provide up to $50 million to trade exposed facilities to reduce their emissions and contribute to meeting Australia’s emissions reduction targets.
Grant funding can be applied for EnMS in two stages:
- Equipment metering for data acquisition, monitoring and control, as a pre-cursor for emissions reductions.
- Replacement of equipment that does not meet baseline EnPIs.
Equipment metering for real data
Integrating sensor data into SCADA systems enables data to be normalised and abnormal operation can be evaluated against:
- A baseline of consumption for efficiencies, 12% on average reduction in energy costs within 15 months of initial implementation.
- Energy performance improvements of 5.6% to 30.6% over three years.
- Continual maintenance regimes for reduced maintenance cost of up to 50%.
ROI
There are many examples of first year energy cost savings which are equal to or greater than the initial costs of implementing the standard.
Carbon reduction & Sustainability
Any reductions in energy will have a direct correlation with an organisation’s overall carbon footprint.
Certification or adherence
Organisations can seek certification or use the framework to implement effective industrial energy management system. Achieving ISO 50001 can offer significant reputational benefits by demonstrating to stakeholders that it is fully committed to managing its energy consumption and seeking ways to increase its energy efficiency.
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