I C S: T C: Ndustrial ASE Tudy HE Ement Industry
I C S: T C: Ndustrial ASE Tudy HE Ement Industry
I C S: T C: Ndustrial ASE Tudy HE Ement Industry
FINAL REPORT
PREPARED FOR
KEMA
with assistance from
Final Report
Prepared for
Pacific Gas and Electric Company
San Francisco, California
Prepared by
KEMA Inc.
Oakland, California
with assistance from
Lawrence Berkeley National Laboratory
Berkeley, California
September 2005
TABLE OF CONTENTS
SECTION 1
INTRODUCTION .......................................................................................11
SECTION 2
SECTION 3
SECTION 4
CUSTOMER INTERVIEWS.......................................................................41
4.1
Overview........................................................................................................41
4.2
General Information.......................................................................................41
4.3
Energy Characteristics ...................................................................................42
4.4
Energy as It Relates to Overall Business Factors ..........................................42
4.5
Overall Energy Management .........................................................................43
4.6
General Decision-Making Practices ..............................................................45
4.7
Energy Efficiency Decision Making..............................................................46
4.8
O&M Practices...............................................................................................46
4.9
Attitudes Towards Energy Efficiency............................................................47
4.10 Recent Energy Efficiency Project Activity....................................................48
4.11 Energy Efficiency Information and Program Activity...................................49
SECTION 5
TABLE OF CONTENTS
5.4
5.5
5.6
SECTION 6
SECTION 7
RECOMMENDATIONS .............................................................................71
LIST OF TABLES
Table 2-1
Table 2-2
Table 4-1
Table 4-2
Table 4-3
Table 4-4
Table 4-5
LIST OF FIGURES
Figure 2-1
Figure 2-2
Figure 3-1
ii
1
1
INTRODUCTION
INTRODUCTION
This report summarizes a case study of the cement industry in California. The study was
conducted to assist the four investor-owned utilities, Pacific Gas and Electric Company (PG&E),
San Diego Gas and Electric Company (SDG&E), Southern California Edison Company (SCE),
and Southern California Gas Company (SCG), to improve their understanding of industrial
customers opportunities to save significant amounts of energy.
This study was conducted at the request of the California Public Utilities Commission. The study
was managed by PG&E. It was funded through the public goods charge (PGC) for energy
efficiency and is available for download at www.calmac.org.
The cement industry in California consists of 31 sites than consume roughly 1,600 GWh and 22
million therms per year. Eleven of these sites are involved in full-scale cement production, while
the remainder of the facilities provides grinding and mixing operations only. The eleven fulloperation sites account for over 90% of the California cement industrys electric use and 80% of
the natural gas use.
The goals of this case study include the following:
Develop an understanding of the key processes and associated energy consumption in the
cement industry;
Identify key energy efficiency opportunities and associated technical potential for the
cement industry;
Identify key barriers that preclude cement customers for adopting energy efficient
practices and equipment;
Examine how current PGC-funded programs can better address these customers barriers
to implementation of more energy efficiency measures.
The primary approach to this case study involved walk-through surveys of customer facilities
and in depth interviews with customer decision makers and subsequent analysis of collected data.
In addition, a basic review of the cement production process was developed, and summary
cement industry energy and economic data were collected, and analyzed.
The remainder of this report is organized as follows:
Section 2 summarizes California cement industry statistics
Section 3 provides an overview of the cement production process
Section 4 presents results of interviews with cement industry customers
Section 5 identifies energy efficiency initiatives in the cement industry
11
SECTION 1
INTRODUCTION
In addition, Appendix A shows the interview guide used to structure cement industry customer
surveys, and Appendix B provides a tabulation of survey results.
oa:projects:wpge0070:report:cement:final:1_intro
12
2
2
2.1
ECONOMIC STATISTICS
In California, the cement industry employs approximately 1,990 workers and has an annual value
of shipments of about $850 million. Table 2-1 presents economic statistics for the California
cement industry, as compared to U.S. cement industry totals.
Table 2-1
Cement Industry Economic Statistics
California
U.S.
CA share of U.S.
Total establishments
31
279
11%
15
136
11%
Number of employees
1,927
16,973
11%
Payroll ($1,000s)
93,795
735,506
13%
1,461
12,524
12%
3,118
27,294
11%
66,434
498,875
13%
486,760
4,027,714
12%
354,774
2,479,050
14%
846,898
6,540,243
13%
66,207
506,015
13%
2.2
ENERGY USAGE
In California, the cement industry consumes approximately 1,600 GWh per year, 220 MW, and
22 million therms per year. This represents about 5% of California manufacturing electricity
consumption and 1% of California manufacturing natural gas consumption. Table 2-2 compares
cement industry electricity and natural gas use for California and the U.S.
1
21
SECTION 2
Table 2-2
Cement Industry Electricity and Natural Gas Consumption
Energy Use Type
GWh per year
California
U.S.
CA share of U.S
1,620
11,900
14%
MW
224
na
na
22
260
8%
Source: Utility billing data, CEC forecast database, and 1998 MECS data
Figure 2-1 shows typical end use electricity consumption shares, based on 1998 Manufacturing
Energy Consumption Survey (MECS) data. Most of the usage is in the machine drive end use,
associated with grinding, crushing, and materials transport. Cement industry natural gas
consumption is concentrated in the process heating end use (about 90% of total gas
consumption), which involves clinker production in large kilns. In most cases natural gas is used
as a supplemental fuel to coal. Only one California plant utilizes gas as a primary kiln fuel. This
is a relatively small plant that produces white cement. The remainder of the natural gas usage is
associated with boiler and machine drive end uses.
Figure 2-1
Cement Industry End Use Electricity Consumption
Process
Heating
10%
Process Othe
2%
HVAC
3%
Process
Machine Drive
81%
Lighting
3%
Other
1%
Of the 31 cement facilities in California, 11 are involved in full cement operation from raw
materials. The production at the remainder of the facilities involves grinding and readymix of
clinker that is produced in other facilities, either domestically or abroad. The 11 full operation
facilities account for the majority of California energy use and these large facilities tend to use
22
SECTION 2
ten to twenty times as much energy as the grinding/readymix facilities. The focus of this case
study is on the larger full-scale facilities.
2.2.1 Peak Electricity Demand
Most California cement plants have a reverse peak electric load profile (i.e. their demand is
lower during the peak hours) because they consciously defer peak load. They try to stockpile
certain crushed products when they can so that they can shut down or slow down large process
mills or fans during the on peak hours. The kilns operate at full capacity continuously.
2.3
ENERGY INTENSITY
Energy intensity can be examined by combining information on energy usage (Table 2-2) with
information on cement industry economic activity (Table 2-1). Electricity use per production
worker and per dollar of valued added are presented in Figure 2-2. Data for the overall
manufacturing sector are presented for comparison purposes. As the figure illustrates, electric
energy intensity in the cement industry is well above the industrial average. Also, the California
cement industry is slightly more electricity intensive that the U.S cement average.
Figure 2-2
Electric Energy Intensity Comparison
3.5
GWh /production worker
kWh per $ value added
3.0
2.5
2.0
1.5
1.0
0.5
0.0
CA Cement
US Cement
CA Mfg
US Mfg
Sources: Utility Billing Data, CEC Forecast Database, 1997 Economic Census, 1998 MECS
23
SECTION 2
2.4
REFERENCES
California Energy Commission. June 2000. California Energy Demand 2000-2010. Technical
Report to California Energy Outlook 2000 Docket #99-CEO-1. Sacramento, CA
U.S. Census Bureau. 2000. Economic Census. Available online:
http://www.census.gov/epcd/www/econ97.html
U.S. Census Bureau. 2002. NAICS Definitions. Available online:
http://www.census.gov/epcd/naics02/def/NDEF327.HTM#N32731
U.S. Energy Information Administration. 2004. 1998 Manufacturing Consumption Survey.
Available online: http://www.eia.doe.gov/emeu/mecs/contents.html
XENERGY Inc. 1998. United States Industrial Motor Systems Market Opportunities
Assessment. Burlington, MA: US Department of Energy.
24
3
3
3.1
INTRODUCTION
Cement is an inorganic, non-metallic substance with hydraulic binding properties, and is used as
a bonding agent in building materials. It is a fine powder, usually gray in color, that consists of a
mixture of the hydraulic cement minerals to which one or more forms of calcium sulfate have
been added (Greer et al., 1992). Mixed with water it forms a paste, which hardens due to
formation of cement mineral hydrates. Cement is the binding agent in concrete, which is a
combination of cement, mineral aggregates and water. Concrete is a key building material for a
variety of applications.
The U.S. cement industry is made up of either portland cement plants that produce clinker and
grind it to make finished cement, or clinker-grinding plants that intergrind clinker obtained
elsewhere, with various additives.
Clinker is produced through a controlled high-temperature burn in a kiln of a measured blend of
calcareous rocks (usually limestone) and lesser quantities of siliceous, aluminous, and ferrous
materials. The kiln feed blend (also called raw meal or raw mix) is adjusted depending on the
chemical composition of the raw materials and the type of cement desired. Portland and
masonry cements are the chief types produced in the United States. More than 90% of the
cement produced in the U.S. in 1999 was portland cement, while masonry cement accounted for
5.0% of U.S. cement output in 1999 (USGS, 2001).
Cement plants are typically constructed in areas with substantial raw materials deposits (e.g. 50
years or longer). There were 117 operating cement plants in the U.S. in 1999, spread across 37
states and in Puerto Rico, owned by 42 companies. Portland cement was produced at 116 plants
in 1999, while masonry cement was produced at 83 plants (82 of which also produced portland
cement). Clinker was produced at 109 plants (111 including Puerto Rico) in the U.S. in 1999.
Production rates per plant vary between 0.5 and 3.1 million metric tons (Mt) per year.
Fuel costs are the single largest variable production cost at cement plants. Variable costs are
typically about 50% of overall operating costs, so energy is frequently the single largest
production cost, besides raw materials. Labor is relatively small at a cement plant.
31
SECTION 3
3.2
Additives
Grinder
Cement
32
SECTION 3
Originally, the wet process was the preferred process, as it was easier to mix, grind and control the size distribution of the
particles in a slurry form. The need for the wet process was reduced by the development of improved grinding processes, and
improvement of the energy efficiency of the pyroprocessing systems.
33
SECTION 3
process took place in the U.S. and was a long dry kiln without preheating (Cembureau, 1997).
Later developments have added multi-stage suspension preheaters (i.e. a cyclone) or shaft
preheater. Pre-calciner technology was more recently developed in which a second combustion
chamber has been added between the kiln and a conventional pre-heater that allows for further
reduction of kiln fuel requirements.
Once the clinker is formed in the rotary kiln, it is cooled rapidly to minimize the formation of a
glass phase and ensure the maximum yield of alite (tricalcium silicate) formation, an important
component for the hardening properties of cement. The main cooling technologies are either the
grate cooler or the tube or planetary cooler. In the grate cooler, the clinker is transported over a
reciprocating grate through which air flows perpendicular to the flow of clinker. In the planetary
cooler (a series of tubes surrounding the discharge end of the rotary kiln), the clinker is cooled in a
counter-current air stream. The cooling air is used as secondary combustion air for the kiln.
3.2.4 Finish Grinding
After cooling, the clinker can be stored in the clinker dome, silos, bins, or outside. The material
handling equipment used to transport clinker from the clinker coolers to storage and then to the
finish mill is similar to that used to transport raw materials (e.g. belt conveyors, deep bucket
conveyors, and bucket elevators). To produce powdered cement, the nodules of cement clinker
are ground to the consistency of face powder. Grinding of cement clinker, together with
additions (3-5% gypsum to control the setting properties of the cement) can be done in ball mills,
ball mills in combination with roller presses, roller mills, or roller presses. While vertical roller
mills are feasible, they have not found wide acceptance in the U.S. Coarse material is separated
in a classifier that is re-circulated and returned to the mill for additional grinding to ensure a
uniform surface area of the final product.
Traditionally, ball mills are used in finish grinding, while many plants use vertical roller mills. In
ball or tube mills, the clinker and gypsum are fed into one end of a horizontal cylinder and partially
ground cement exits from the other end.
Modern state-of-the-art concepts utilize a high-pressure roller mill and the horizontal roller mill
(e.g. Horomill) (Seebach et al., 1996) that are claimed to use 20-50% less energy than a ball mill.
The roller press is a relatively new technology, and is more common in Western Europe than in
North America. Various new grinding mill concepts are under development or have been
demonstrated (Seebach et al., 1996), e.g. the Horomill (Buzzi, 1997), Cemax (Folsberg, 1997a),
the IHI mill, and the air-swept ring roller mill (Folsberg, 1997b).
3.3
Energy use associated with mining and quarrying raw materials for cement production are not
typically included in the cement sector, but rather are accounted for in the mining sector. As
such, the cement sector energy consumption is comprised of energy used for raw material
preparation, clinker production, and finish grinding.
34
SECTION 3
Raw material preparation is an electricity-intensive production step requiring generally about 2332 kWh/short ton (COWIconsult et al., 1993; Jaccard and Willis, 1996), although it could require
as little as 10 kWh/short ton.
Clinker production is the most energy-intensive stage in cement production, accounting for over
90% of total industry energy use, and virtually all of the fuel use. Fuel use for clinker production
in a wet kiln can vary between 4.6 and 6.1 MBtu/short ton clinker (Worrell and Galitsky, 2004).
Typical fuel consumption of a dry kiln with 4 or 5-stage preheating can vary between 2.7 and 3.0
MBtu/short ton clinker, electricity use increases slightly due to the increased pressure drop
across the system. A six stage preheater kiln can theoretically use as low as 2.5-2.6 MBtu/short
ton clinker. The most efficient pre-heater, pre-calciner kilns use approximately 2.5 MBtu/short
ton clinker. Alkali or kiln dust (KD) bypass systems may be required in kilns to remove alkalis,
sulfates, and/or chlorides. Such systems lead to additional energy losses since sensible heat is
removed with the bypass gas and dust.
Power consumption for grinding depends on the surface area required for the final product and
the additives used. Electricity use for raw meal and finish grinding depends strongly on the
hardness of the material (limestone, clinker, pozzolana extenders) and the desired fineness of the
cement as well as the amount of additives. Blast furnace slags are harder to grind and hence use
more grinding power, between 45 and 64 kWh/short ton for a 3,500 Blaine2 (expressed in cm2/g).
Modern ball mills may use between 29 and 34 kWh/short ton (Worrell and Galitsky, 2004) for
cements with a Blaine of 3,500.
3.4
A previous analysis of the technical potential for energy efficiency improvement in the U.S.
cement industry found a potential of 180 PJ, or 40%, based on U.S. cement production
characteristics in the early 1990s (Martin et al., 1999). This report as well as a later report
(Worrell and Galitsky, 2004), evaluated the energy-saving potential of about 30 energyefficiency technologies and practices that could be applied to both wet and dry process cement
production.
For this analysis, we compare current energy use (both for electricity and for fuels) for cement
production in California in 2002 (van Oss, 2003) to best practice values for these two types of
fuel. The best practice value of 109 kWh/short ton of cement for electricity production is based
on expert judgment, taking into account the hard limestone found in California, as reported by
representatives at Hansen Permanente Cement Company. The best practice value of 2.62
MBtu/short ton of clinker is based on a plant built in Taiwan in the mid-1990s that has an
intensity of 2.64 MBtu/short ton (Die Zementindustrie Taiwans, 1994) and a plant built in India
that has an intensity of 2.58 MBtu/short ton (Somani and Kothari, 1997).
Blaine is a measure of the total surface of the particles in a given quantity of cement, or an indicator of the fineness of
cement. It is defined in terms of square centimetres per gram. The higher the Blaine, the more energy required to grind
the clinker and additives (Holderbank, 1993).
35
SECTION 3
Given these best practice values, we estimate potential electricity savings of about 32 kWh/short
ton of cement and potential fuel savings of about 0.7 MBtu/short ton of clinker. Given 2002
production of 11,166,000 short tons of cement and 11,187,000 short tons of clinker in California,
the technical potential electricity savings are about 360 GWh and fuel savings are about 7.8
TBtu, with a total technical potential savings for both fuels of about 20% over 2002 levels.
3.5
REFERENCES
Alsop, P.A. and J.W. Post, 1995. The Cement Plant Operations Handbook, (First edition),
Tradeship Publications Ltd., Dorking, UK.
Buzzi, S. and G. Sassone, 1993. Optimization of Clinker Cooler Operation, Proc. VDZ Kongress
1993: "Verfahrenstechnik der Zementherstellung" Bauverlag, Wiesbaden, Germany (pp.296-304).
Cembureau, 1997. Best Available Techniques for the Cement Industry, Brussels: Cembureau.
COWIconsult, March Consulting Group and MAIN, 1993. Energy Technology in the Cement
Industrial Sector, Report prepared for CEC - DG-XVII, Brussels, April 1992.
Die Zementindustrie Taiwans - Rueckblick und Gegenwaertiger Stand, 1994. (The Cement
Industry in Taiwan - Historic and Current Situation, 1994) Zement-Kalk-Gips 147 pp.47-50.
Folsberg, J., 1997a. "Future Grinding" Asian Cement, January 1997, pp.21-23 (1997).
Folsberg, J., 1997b. The Air-Swept Ring Roller Mill for Clinker Grinding Proc.1997 IEEE/PCA
Cement Industry Technical Conference XXXIX Conference Record, Institute of Electrical and
Electronics Engineers: New Jersey.
Greer, W. L., Johnson, M. D., Morton, E.L., Raught, E.C., Steuch, H.E. and Trusty Jr., C.B., 1992.
Portland Cement, in Air Pollution Engineering Manual, Anthony J. Buonicore and Waynte T.
Davis (eds.). New York: Van Nostrand Reinhold.
Holderbank Consulting, 1993. Present and Future Energy Use of Energy in the Cement and
Concrete Industries in Canada, CANMET, Ottawa, Ontario, Canada.
Jaccard, M.K.& Associates and Willis Energy Services Ltd., 1996. Industrial Energy End-Use
Analysis and Conservation Potential in Six Major Industries in Canada. Report prepared for
Natural Resources Canada, Ottawa, Canada.
Seebach, H.M. von, E. Neumann and L. Lohnherr, 1996. "State-of-the-Art of Energy-Efficient
Grinding Systems" ZKG International 2 49 pp.61-67 (1996).
Somani, R.A., S.S. Kothari, 1997. Die Neue Zementlinie bei Rajashree Cement in
Malkhed/Indien ZKG International 8 50 pp.430-436 (1997).
36
SECTION 3
United States Geological Survey, 2001. Minerals Yearbook, Washington, D.C., USGS,
http://minerals.er.usgs.gov/minerals/.
van Oss, H., 2002. Personal Communication. U.S. Geological Survey, March May 2002.
Worrell, E. and C. Galitsky. 2004. Energy Efficiency Improvement Opportunities for Cement
Making: An ENERGY STAR Guide for Energy and Plant Managers. Berkeley, CA: Lawrence
Berkeley National Laboratory (LBNL-54036).
37
4
4
CUSTOMER INTERVIEWS
CUSTOMER INTERVIEWS
4.1
OVERVIEW
This section presents results of in depth interviews with senior representatives from four cement
companies representing operations at five California cement plants. The interviews were
conducted by a senior KEMA-XENERGY engineer who was generally knowledgeable about
cement plant operations. The interview process included a brief technical discussion of each
facilities operations, but mainly focused on various aspects of the customers decision-making
process, especially as it applies to purchases of energy efficiency products and services.
The following survey topics are covered in this section:
General customer information;
Plant energy characteristics;
Energy as It Relates to Overall Business Factors
Energy Management
General Decision-Making Practices
Energy Efficiency Decision Making
O&M Practices
Attitudes Towards Energy Efficiency
Recent Energy Efficiency Project Activity
Energy Efficiency Information and Program Activity
A copy of the interview guidelines is provided in Appendix A and a tabulation of survey
responses is provided in Appendix B.
4.2
GENERAL INFORMATION
Table 4-1 summarizes some general information about the customers included in the interview
process.
All facilities are involved in full cement production, from quarry to finished product,
although one facility is primarily involved in grinding operations of clicker produced
elsewhere.
In general, the cement facilities are not very labor intensive, employing only 100-200
full-time workers per site.
All but one of the companies owns multiple cement facilities in California, and all
companies own cement plants outside of California (although one company has only one
U.S. facility). Only one of the companies (facilities A1 and A2) is U.S.-owned.
41
SECTION 4
CUSTOMER INTERVIEWS
Overall cement plant efficiency is generally correlated with the age of the primary
equipment.
Table 4-1
General Customer/Facility Information
Facility
Location
Interviewee(s) Title
Product
Facility Description
General Plant
Employees
Company-Owned
Plants in California
Company-Owned
Plants outside
4.3
A1
Riverside
Community and Govt.
Affairs Manager,
Financial Manager
White cement from
scratch; grey cement
from clinker produced
elsewhere
- 2 kilns, dating to
1963; clinker capacity
of 110 k tons/yr
- 4 mills, dating to
1963, with a capacity of
914 k tons/yr
A2
Oro Grande
Community and Govt.
Affairs Manager,
Financial Manager
Grey cement
B
C
Colton
Lucerne Valley
Plant Manager,
Plant Manager
Operations Supervisor
D
Tehachapi
Plant Manager
Grey cement
Grey cement
Grey cement
- 2 kilns, dating to
1962; clinker capacity
of 680 k tons/yr
- 4 mills, 2 dating to
1962 and 2 dating to
1980, with a capacity of
1,316 k tons/yr;
- 30 MW steam plant
utilizes waste heat (not
fully utilized)
Less efficient
120
3
Less efficient
100-150
2
More efficient
180
1
More efficient
150-200
2
No other US plants
5 other US plants
ENERGY CHARACTERISTICS
Energy costs are the single largest variable production cost at cement plants, as indicated by all
survey interviewees. Variable costs are typically about 50% of overall operating costs in the
cement industry, so energy is frequently the single largest production cost.
Electricity was estimated to account for over 10% of overall production costs for four of the
facilities and over 30% of the production costs for one facility. All customers indicated that they
were direct-access electricity purchasers. Natural gas tended to account for only 1% to 5% of
overall production costs, as most facilities utilize other primary fuels (coal, tires, other waste
fuels) in their kilns.
4.4
In the interview, the customers were asked (unaided) to list the factors that were very important
to their business. All indicated that energy costs and market conditions were two of the factors
that were very important to their businesses. Three of the four interviewees indicated that
environmental regulations where also a very important consideration, while one customer cited
production management as a very important factor.
42
SECTION 4
CUSTOMER INTERVIEWS
In addition to energy costs, customers were asked to rate a number of factors as to their
importance to their business. Results are tabulated and summarized in Table 4-2. Clearly, the
most important factor cited is the need to comply with regulatory requirements. This is not
surprising as the plants could not operate long in non-compliance. One of the primary regulatory
factors involves compliance with air emissions standards.
The next highest rated business factors involve maintaining product quality and meeting
production requirements. Having a reliable high-quality supply of electricity was rated of
medium importance by most interviewees.
It is interesting to note that one customer with a more-efficient facility indicated that maintaining
technologically competitive was of extreme importance. This customer is owned by a company
that produces equipment for the cement industry, which most likely correlates with the customers
perception of this business factors, as well as the efficiency of the plant.
Table 4-2
Rating of Key Business Factors
(0 = Unimportant, 5 = Extremely Important)
Business Factors
Maintaining product quality and
consistency
Meeting your production schedule
Meeting regulatory requirements (such
as environmental requirements)
Keeping up technologically with
competitors
Keeping up with new or shifting market
demands
Having a reliable, high quality supply
of electricity
Maintaining your market niche
Maintaining a happy and productive
staff
Identifying and implementing cost
saving measures
A1
A2
Facility
B
4.3
4.5
5.0
2.3
3.3
3.3
2.5
2.3
1.3
D*
Average
4.5
Interviewees were asked to assess the overall energy management policies at their facilities.
Responses are cited in Table 4-3. These perceptions correlate well with the overall assessment
of plant efficiency (as developed by outside sources). It appears that Customer D provides a
pretty good summary of the basic approach towards energy management as practiced by all
surveyed firms and the competing objects they must deal with. The primary difference between
43
SECTION 4
CUSTOMER INTERVIEWS
firms appears to be the degree to which they practice weight the importance of energy
management in their operations.
Table 4-3
Overall Energy Management Policy
Customer Response
A
Moderate: Energy costs are certainly a concern but capital is limited and no one really has time to
focus on energy and carry forth projects. In addition, at <one site>, the uncertainty about the plant
remaining in operation has kept us from doing any upgrades there.
Moderate - High: It is our single largest production cost. Energy use guides all of our process
operating practicing practices.
Extremely Aggressive: Energy costs are constantly reviewed vs. production - daily, weekly,
monthly and annually. Control decisions are based on power requirements.
Strong: However, maintaining consistent production and product quality is the overriding concern.
Although everyone at the plant is aware of energy and it is a key factor on which some operations
are based, we have limited operating staff. Fine-tuning for optimizing efficiency, and developing,
championing, and managing energy improvements takes staff time that is just not available given
each persons day to day responsibility. We do have special projects engineering staff, but even
they are too busy to take on energy projects that arent related to maintaining production. Also, the
plant must remain in production as much as possible. The interruptions and coordination required
for retrofits can also restrict consideration of energy retrofits.
All interviewees indicated that they, for the most part, had the information they needed to
effectively manage energy costs. However, to varying degrees, each customer indicated that
they did not necessarily have time to process all the information or act on it. One of the more
efficient companies indicated that their parent company has performed periodic process/energy
audits to help facilitate increased efficiency. Another respondent indicated that often there are
projects where energy impacts cant be determined precisely enough and the ensuing risk was
too high to justify investments.
It appears likely that the customer responses are predominantly directed at the most significant
energy-sing equipment because measures targeted there can deliver the highest level of savings.
It is not as clear that these customers are as aware of smaller-impact measures, such as fine
tuning of O&M activities, since these activities deliver relatively small levels of savings. Given
the lack of manpower, it appears that the small cost-effective projects will often be overlooked.
All customers indicated that they have implemented or would consider implementing a number
activities to manage energy costs, including: adjusting production schedules, utilizing industry
best practices/training to improve productivity, purchasing equipment to improve productivity,
and implementing conservation activities. Most customers mentioned that they would require
the appropriate price signals to trigger a shifting of their production processes. Three of the four
interviewees indicated that, in the past, they have implemented shifts in production in response to
Real Time Rate Programs. None of the customers indicated that they would consider
downsizing their production facility to reduce energy costs.
44
SECTION 4
4.6
CUSTOMER INTERVIEWS
Interviewees were asked a number of questions about how they made investment decisions and
how energy efficiency related decisions were handled as compared to other investment decisions.
For the most part, each companys operations personnel are charged with identifying
opportunities and specifying equipment to invest in, and senior management is responsible for
approving all investments outside of normal O&M expenditures. Two of the respondents
indicated that vendors were sometimes included in the equipment specification process. One
company indicated that senior management approval was required for all expenditures over
$10,000. The general decision-making process for each firm is summarized in Table 4-4. It is
notable that the two more efficient facilities identified funds that are set aside annually for capital
improvement, indicating that these firms have institutionalized a process on continually
upgrading their facility.
Table 4-4
Usual Decision Making Process for Capital Improvements
Customer Response
A
Corporate or plant managers identify technological potential; local corporate staff review and
evaluate based on corporate criteria; ultimately goes to corporate for financial approval.
Plant process managers identify technological potential, cost-benefit is reviewed at the department
level and then the plant level. Local corporate staff review and evaluate based on corporate
criteria. Ultimately goes to corporate for final financial approval. Capital budget has been fairly
fixed at $4 million for the last several years. Sometimes we get funds for special projects that are
being pushed at the corporate level.
Plant manager develops the operating and capital investment for the plant within guidelines
provided by corporate management and with input from the various production section managers.
Energy saving projects compete with other capital projects. The plant manager asks for project
needs from the various division department managers and make the final determination on the
budget request. It is usually they who propose energy related projects. Sometimes with guidance
from the Plant Manager or Corporate suggestions but usually on their own initiative. The level of
capital funding depends on business and macro economic conditions. We usually have $1
million/year for capital improvements. Investments over $10K require corporate approval
although sometimes they are lumped with other projects.
Generally, returns on capital investments need to be pretty high to justify expenditures. The
interviewees from the less efficient facilities indicated that their typical targeted payback for
investments was 1.0 to 1.5 years. The interviewees from the more efficient plants indicated
somewhat high payback thresholds: one cited a maximum of three years, and one indicated that
a 1.0-2.0 year payback requirement was typical. Only one customer indicated that energyefficiency projects might be treated differently from other projects they stated that production
output related project might sometimes be given an advantage over cost-reduction projects.
45
SECTION 4
CUSTOMER INTERVIEWS
All customers indicated that their organizations required a detailed technical and financial review
before investing in all projects, and the same type of analysis was required for energy and nonenergy projects.
Critical drivers for investment in new equipment (in addition to cost-effectiveness) included:
capital availability, affects on production, market conditions, and innovation. One of the less
efficient facilities was clearly facing limited capital availability that greatly limited any capital
investments. The installation of innovative equipment was cited by an interviewee of one of the
more efficient plants. Addition considerations for installation of new equipment included: lost
production time, equipment reliability, environmental issues, safety, and effects on maintenance
costs.
4.7
All interviewees indicated that, for the most part, energy efficiency investments were treated
similarly to other investment opportunities. One customer noted that specific-energy is
considered in all investment decisions consistent with the fact that energy is such a large part
of operating costs. One customer noted that the availability of incentives might cause them to
look more favorably at energy efficiency investments. All companies utilize normal internal
capital resources to fund energy efficiency projects.
Two of the four companies indicated they had policies in place to specify higher efficiency
equipment when making investments. A third company had no formal procedures in place, but
expected new equipment to lower or at least be neutral with respect to specific energy. The
fourth customer, owner of a less efficient plant, had no energy efficiency purchase policy.
Only one of the four companies (at one of the more efficient facilities) indicated they had an
employee dedicated to maintaining/improving energy efficiency at the plant. An additional two
companies indicated that there were informal champions of energy efficiency at their plants.
Given the large energy costs for these facilities, it appears that most operations staff have some
directive to focus on efficient energy use, but it appears the only one company has put an
organizational emphasis on reducing energy costs.
When asked about disincentives to reducing energy operating costs, two customers cited large
exit charges as a primary factor limiting the cost effectiveness of cogeneration projects that
would take advantage of waste heat. One customer listed long project duration as a limiting
factor in participating in rebate programs. Also, caps on incentive levels limit their effectiveness
in influencing customer decisions, since many of the project involve very large capital outlays.
4.8
O&M PRACTICES
All customers indicated that the primary maintenance at their facilities was to do whatever was
necessary to keep equipment running to maximize production. They all indicated that they tried
to maintain equipments so as to minimize energy use, since energy was such a large part of their
operations. Three of the interviewees indicated that their staff had good to very good knowledge
46
SECTION 4
CUSTOMER INTERVIEWS
of energy efficiency practices. One on the less efficient customers indicated their staff had
modest knowledge.
Customers were asked about their specific policies regarding maintenance policy for various
types of equipment. Results are presented in Table 4-5. The proactive category includes limited
scheduled preventive maintenance, aggressive scheduled preventive maintenance, and predictive
maintenance. Most proactive strategies involved the limited scheduled preventive maintenance,
but one customer, at a more efficient plant, indicated they utilized predictive O&M practices for
bearing lubrication and for fan/blower wheel balancing.
Table 4-5
Equipment-Specific O&M Practices
Facility
O&M Category
A1
A2
As needed
As needed
Proactive
Proactive
Proactive
Proactive
Proactive
Proactive
Proactive
Proactive
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
Proactive
As needed
As needed
As needed
As needed
Proactive
As needed
Proactive
Proactive
Proactive
Proactive
Proactive
As needed
As needed
As needed
Proactive
As needed
Motor lubrication
Bearing lubrication
4.9
Three of the four customers indicated that energy efficiency equipment and practices were very
important to their operations. One of the three acknowledged that they dont have enough staff
and time to pursue most of their energy efficiency opportunities. The fourth customer indicated
that they could do much better with regard to energy efficiency, but felt they were severely
limited by capital and other resource constraints.
All customers believed that premium efficiency equipment was similar to standard equipment in
terms of procurement lead times, installation costs, and ongoing maintenance costs. Thus, they
appeared to have no predisposed bias against high efficiency equipment in terms of these
dimension of hassle cost.
The customers didnt express strong options regarding how well energy efficiency deliver on
expected energy savings. One customer indicated that they usually meet expectations due to this
customers extensive research prior to energy efficiency investments.
47
SECTION 4
CUSTOMER INTERVIEWS
When asked about energy efficiency systems they would like to have, irregardless of cost, the
interviewees were all able to provide a pretty good, and overlapping, wish list. Key measures
were (number of respondents who cited the measure are listed in parentheses):
Heat recovery for power generation (4)
More VFDs (4)
Roller mills versus ball mills (3)
Vertical calcining kilns(2)
Fewer pneumatic/more mechanical conveyors (2)
Improved compressed air system (1)
Better classifiers (1)
Better combustion controls for kilns (1)
More use of tires and waste fuels in kilns (1)
The primary factors limiting increased energy efficiency were listed as (with number of
respondents in parentheses):
To busy to research (3)
No money to research (3)
Capital constraints (3)
Too much plant down time (3)
Not worth the trouble for small items (3)
No staff time to manage the projects (2)
Insufficient reliable information on products (1)
Doesnt meet payback criteria (1)
Hard to sell to management due to savings risk (1)
Waiting to see how measures perform elsewhere (1)
Clearly the key limitations for these customers are time and money. They have limited staff and
limited capital, and most believe they are doing the best job they can with resources at hand.
They all seem willing to do more to improve their plants energy efficiency if they had more
resources.
The smaller energy efficiency items at these cement plants are likely to amount to fairly large
savings, given the overall energy intensity of these facilities. These smaller items dont seem to
get on the radar screen for these customers and are mainly seen as a hassle.
SECTION 4
CUSTOMER INTERVIEWS
49
5
5
ENERGY-EFFICIENCY INITIATIVES
ENERGY-EFFICIENCY INITIATIVES
This section presents a brief description of the key initiatives currently affecting the cement
industry.
5.1
The Portland Cement Association (PCA) is the industry association with offices in Skokie
(Illinois) and Washington, DC (PCA, 2004). The organization has a double function, as it serves
as the representation in Washington, DC, and as a research and dissemination organization and
clearinghouse focused on cement and concrete applications. Over 80% of the cement plants in
the United States are associated with the PCA. All cement companies in California are PCA
members.
The PCA annually collects data on energy and labor inputs from all its members, which are
published each year. The PCA has no special programs related to energy efficiency improvement
in the cement industry. However, PCA serves as the conduit for national programs like
ENERGY STAR and ClimateVISION (see below).
5.2
The Cement Kiln Recycling Coalition (CKRC) is a trade association with member companies
located throughout the United States (CKRC, 2004). Members include cement companies
engaged in the use of hazardous waste-derived fuel as well as companies involved in the
collection, processing, management, and marketing of such fuel for use in cement kilns. CKRC
and its member companies support appropriate regulations related to the use of waste-derived
fuels including scrap tires. It collects and disseminates information on the use of wastes as fuel in
clinker kilns. The CKRC is based in Washington, DC. Of the California based cement
companies, only Texas Industries (TXI) is a member of the CKRC.
5.3
CLIMATE VISION
The federal government (through the U.S. Department of Energy, the U.S. Environmental
Protection Agency, the U.S. Department of Transportation, and the U.S. Department of
Agriculture) and industry organizations in 12 energy-intensive economic sectors joined in a
voluntary partnership called Climate VISION. Climate VISION works with industry to identify
and pursue cost-effective solutions to reduce emissions using existing technologies; develop
tools to calculate and report emission intensity reductions; speed the commercial adoption of
advanced technologies; and develop strategies to reduce emissions intensity in other economic
sectors (ClimateVISION, 2004). The Portland Cement Association has committed to a 10%
reduction in carbon dioxide emissions per ton of cementious product produced or sold from a
1990 baseline by 2020.
51
SECTION 5
5.4
ENERGY-EFFICIENCY INITIATIVES
ENERGY STAR
ENERGY STAR is the primary program of the U.S. Environmental Protection Agency aimed at
energy-efficiency improvement. ENERGY STAR for industry (U.S. EPA, 2004a) aims at the
development and institutionalization of strategic corporate energy management in companies
participating in ENERGY STAR as a member or through the so-called Focus (see below).
Currently, nearly 500 companies are ENERGY STAR members. All cement companies based in
California are members of ENERGY STAR, except for Hanson in Cupertino. However, all
companies and the PCA, including Hanson Permanente Cement participate in the ENERGY
STAR Focus.
Within the Focus effort, the ENERGY STAR program collaborates with specific industries. The
cement industry is one of the Focus industries.1 The Focus efforts include three elements:
A tool to analyze the performance of a plant compared to the peers in the U.S. based on a
simplified benchmarking approach.
An Energy Guide for the focus industry, providing detailed descriptions of energy
efficiency measures in the Focus industry. LBNL prepares the Guides. The Guide for the
cement industry was published in January 2004 (Worrell and Galitsky, 2004).
Besides the three elements above the ENERGY STAR program also offers regular networking
meetings within each Focus industry and an annual energy managers networking meeting and
workshop for all ENERGY STAR participants. ENERGY STAR has offered assistance in the
development of an energy management program to several of the companies located in
California, and has closely collaborated with California Portland Cement, Mitsubishi and RMC
Pacific, while all representatives of all companies participate in the Focus networking meetings
and tele-conferences.
5.5
CLIMATE LEADERS
Other Focus industries (early 2004) are: breweries, wet corn milling, vehicle assembly, petroleum refining and
pharmaceuticals. Every year new Focus industries are added.
52
SECTION 5
5.6
ENERGY-EFFICIENCY INITIATIVES
REFERENCES
53
6
6
6.1
Energy efficiency opportunities can fall into at least three primary categories:
Key energy efficiency opportunities, as indicated by customers and identified in literature, are
discussed next. In addition these opportunities, a number of customers also indicated that they
would be willing to shift production to off-peak periods given the right price signals, such as real
time pricing.
6.1.1 O&M
Operations and maintenance practices include elements such as motor and bearing lubrication,
motor belt replacement, fan blade cleaning, fan wheel balancing, and compressed air system
maintenance including leak minimization and filter replacement. While most customers
indicated that they tried to keep equipment in good working order, the primary focus is on
keeping equipment operating to maximize production. Energy efficiency considerations are not
the primary concern.
Preventative maintenance is generally employed at the more efficient facilities but could be
improved at other plants (see Table 4-5). Preventative maintenance includes training of plant
staff to be attentive to energy consumption and efficiency. Energy savings of up to 2 to 3
percent are possible with the institution of a rigorous preventative maintenance program.
6.1.2 High Efficiency Equipment/Processes
In cement industry, as in other energy intensive process industries, the more generic measures,
like high efficiency motors and lighting, are either already done or are so small that their impacts
are below the radar. Significant energy savings projects typically involve major process and/or
equipment modifications that are industry-specific and highly specialized. Often highly
specialized expertise is necessary to identify and be able to quantify energy savings of
technology improvements. Cement industry customers see their equipment vendors as business
partners because the vendors tend to have the specialized expertise and experience in their
particular area (e.g. crushers/classifiers, kilns, conveyors).
Some of the energy efficiency equipment opportunities identified by customers, with a primary
focus on electricity savings, include:
61
SECTION 6
Conversion of ball mills to roller mills for both raw materials and finish grinding: energy
savings in raw materials preparation can be in the order of 5% of total electricity
consumption, while installation of advanced finish grinding systems can save achieve
savings in the 20% range.
High efficiency classifiers: these do a better job of separating out fine particles from
coarse particles, which are returned to the mills. They prevent over-grinding of the fine
particles that results in unnecessary power use in the mills. Savings can be around 8%.
Conversion to more efficient kilns such as vertical precalciner kilns, which will primarily
improve the thermal efficiency of the kiln, saving on coal consumption.
Variable speed drives: for fans in the kilns, coolers, preheaters, separators, and mills, and
for other drives associated with variable loads. A comprehensive conversion to VSDs
could probably save about 5% of total plant electricity use.
Compressed air system improvements: while not a large part of a cement plants total
electricity use, there is often room for significant efficiency improvements in systems that
have not been optimized.
Optimizing the mix of raw materials entering the kilns to ensure proper chemical
composition and provide for more steady kiln operation;
Optimizing the combustion process and conditions in the kiln to improve product quality
and grindability; and
Improving heat recovery, material throughput, and emissions from the clinker cooler.
Grinding mill controls optimized the flow in the mill and classifiers to improve product quality
and increase production. The increased production translates into energy savings per unit of
output.
62
SECTION 6
Overall, savings from advanced control systems are in the 2-5% range for plants that have not
already installed such system.
6.2
A number of barriers to increased energy efficiency were identified in discussions with cement
customers and utility representatives who are in close contact with their cement customers.
Following are some key barriers identified in the interview process.
Limited capital: many of the energy efficiency equipment improvements in the cement industry
involve large capital investments, and most customers cited limited capital availability as a key
factor limiting increases in energy efficiency. One customer cited a $4 million capital budget,
and another cited a $1 million capital budget. Two other customers did not indicate that they had
any set budget to work with and had to justify all new capital expenditures on a case by case
basis. Many targeted project cost many millions of dollars, so even the customers with assigned
capital budgets are severely constrained.
Production concerns: for all customers, keeping equipment operation and avoiding production
disruptions was of the highest priority. Additionally, cement plants do not like to shut down
except for once a year, largely because shut down stresses the ceramic insulation in the kiln.
Heat-up and cool down has to be done very carefully or the ceramic insulation will deteriorate.
Limited staff time: staffing limitations were another key barrier to increased energy efficiency.
While all customers want to stay as efficient as possible, staffs number one priority is keeping
things running.
Information: while all customers feel they have access to the information they need to make
energy efficiency improvements, several customers indicated that they did not have time to focus
on this information. Also, it appears that customer knowledge is mostly directed towards the
big ticket equipment that are the primary energy users, and their understanding of the energysaving aspects of smaller items such are preventative O&M appears to be lower.
Reliability concerns: since maintaining production is such a high priority, cement customers are
very concerned about the reliability of all new equipment, including high efficiency equipment.
While the customers dont perceive differences in reliability between energy efficient and
standard equipment, any installations of new equipment at the plant will generate some reliability
concerns.
Hassle: since staff time is limited, smaller energy efficiency projects are not pursued because
they are not worth the trouble.
Facility uncertainty: one customer indicated that they were currently investigating the feasibility
of a complete plant overhaul. Uncertainty over the overhaul project has halted any possible
efficiency projects.
63
SECTION 6
Cost effectiveness: most customers have severe cost effectiveness criteria. Two customers (with
less efficient plants) have payback cutoffs of 1.0 to 1.5 years. Only one customer indicated that
they would consider projects with paybacks of up to three years.
Exit fees: Customers have not proceeded to install cogeneration equipment that would utilize
waste heat because they would be subject to departure charges. Without the departure charges,
on-site generation with waste heat would be very close to being economic.
6.2.1 Barriers to Program Participation
While all interviewed customers were aware of the PGC-funded programs, SPC and Express,
and two of the customers had participated in the SPC program, there were several barriers to
increased program participation cited:
Short program period: in many cases it takes three to five years for these customers to
develop and implement a project, from the planning through construction stages.
Programs that have a one or two year time period dont fit well with their operations.
Limited incentives: many of the cement plant projects cost tens of millions of dollars.
Incentives of a few hundred thousand dollars dont provide much incentive for these
types of projects.
M&V requirements: past SPC M&V requirements have generally favored one-for-one
equipment changeouts where pre and post equipment efficiencies are more readily
measurable. Measures that are more holistic and affect energy use of a system are
harder to justify savings for and thus have had limited acceptance in the Program.
Program paperwork: SPC participation was limited at the beginning because the
application process was time consuming and a burden on customer staff. Utility
assistance to some customers with the applications, when necessary, has helped mitigate
this barrier.
6.3
REFERENCES
Worrell, E. and C. Galitsky. 2004. Energy Efficiency Improvement Opportunities for Cement
Making: An ENERGY STAR Guide for Energy and Plant Managers. Berkeley, CA: Lawrence
Berkeley National Laboratory (LBNL-54036).
64
7
7
RECOMMENDATIONS
RECOMMENDATIONS
Integrate industrial program activities with DOE and other initiatives: as presented in Section 5,
there are a number of organizations and initiatives that cement industry customers are involved
in or have access to. PGC program funding could be utilized to support energy efficiency
aspects of these initiatives directed towards California cement producers. In addition, funding
could be used to assist customers who participate in these initiatives.
Provide energy manager funding: while most customers indicate that they manage their energy
use, and that staff are committed to improving energy efficiency, only one interviewed customer
has employed a full time energy management position. It may be possible to use PGC funding to
hire industry experts to serve as energy managers at interested facilities. These experts could
take the lead on identification, planning, and implementation of energy efficiency projects. This
would help alleviate a key barrier to energy efficiency improvements limited staff time.
For example, a cement industry expert could be hired to provide energy efficiency services to
several cement facilities over a program year, maybe spending 25% of their time at each of four
plants. They could be charged with reviewing existing project plans, conducting or coordinating
energy audit activities, and managing energy efficiency projects.
Eliminate exit fees for waste heat cogeneration: currently, much of the heat generated in cement
kilns is exhausted into the air. Recovery of this energy should be encouraged, but current
regulatory practices work against the economics of customer-generation investments by adding
an additional economic hurdle, exit fees, to the cost effectiveness calculations. Customers
indicated that they are likely to seriously consider investing in waste heat cogeneration if the exit
fee hurdle were to be removed.
oa:projects:wpge0070:report:cement:7_recs
71
SECTION 7
RECOMMENDATIONS
Increase rebate limits: for cement customers, where energy efficiency projects can cost many
millions of dollars, caps on rebate levels limit their effectiveness in influencing customer
decisions. The limited incentives primarily influence the smaller projects a customer will
undertake, such as the installation of VSDs. While larger projects may also qualify for
incentives, it is likely that these projects would proceed anyway.
Provide audits for cross-cutting technologies: while a high level of expertise is required for
understanding and recommending energy efficiency projects particular to the cement industry,
audits may be useful in identifying good opportunities for some of the more standard end uses
such as lighting, HVAC, compressed air, and pumping. Combined with an energy manager
program, these audits could help customers more easily implement some of these smaller
projects. (Note, a small project at an energy intensive cement plant may equate to a fairly large
project at other businesses.)
Provided funding for industry-specific education and training: ongoing training of cement plant
staff, with a special focus on energy efficiency, may be useful to maintain customer interest in
improving plant efficiency. Such training could focus on the investments and practices that
generally provide the best returns for an customers efforts. Such training could be coordinated
with activities provided in other cement industry initiatives.
oa:projects:wpge0070:report:cement:7_recs
72
A
A
INTERVIEW GUIDE
INTERVIEW GUIDE
Industrial Case Study
Decision-Maker Interview Guide
Completion Date
Interviewer
Customer Information
SIC Code
Utility (s)
PG&E
SCE
SCG
Company Name
Street Address
City, State, Zip
Contact Name
Contact Title
Phone
Alt info (email, cell)
Contact Notes
A1
SDG&E
APPENDIX A
INTERVIEW GUIDE
Firmographics
F1. What do you make/do at this facility?
F3. How many people work at your facility (full time equivalents)? _________ people
Not sure, this is a rough estimate
Dont know
F4. How many other separate facilities do you have in California? Outside California?
______________ in CA ______________ outside CA
Not sure, this is a rough estimate
Dont know
Energy Characteristics
E1. How important is energy usage relative to your overall production costs? (gas/electric?)
Not important
Somewhat Important
Very Important
E2. Could you estimate the percent of overall production costs that go to electricity? (If
necessary: 1% or less; >1%-5%, 5%-10%, over 10%)
________
E3. Could you estimate the percent of overall production costs that go to natural gas? (If
necessary: 1% or less; >1%-5%, 5%-10%, over 10%)
________
A2
APPENDIX A
INTERVIEW GUIDE
B2. How would you rate the following factors in their importance to your business? (Use a
scale of 0 to 5, where 0 is unimportant and 5 is extremely important.)
Maintaining product quality and consistency
Meeting your production schedule
0
0
1
1
2
2
3
3
4
4
5
5
0
0
1
1
2
2
3
3
4
4
5
5
0
0
1
1
2
2
3
3
4
4
5
5
0
0
1
1
2
2
3
3
4
4
5
5
B3. How would you assess the overall energy management policy at your facility?
(Minimal, moderate, extensive, )
B4. Do you have the information you need to effectively manage energy costs?
Yes
No
Notes: ______________________________________________________
A3
APPENDIX A
INTERVIEW GUIDE
B5. Which of the following cost saving measures would you consider/have considered
implementing to reduce/manage energy costs?
Very
Unlikely
Would
Consider
Have
already
B5. Would you be more likely to implement any of these with increasing energy costs? If
so which? (If asked, assume a roughly 25% increase).
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
A4
APPENDIX A
INTERVIEW GUIDE
D2. What type of investment criteria do new capital projects need to satisfy?
D3. Are energy efficiency projects evaluated differently than other projects? If so, state
differences.
D6. What are usually the critical driver(s) for new equipment? (e.g. cost savings, reliability,
innovation, productivity)
D7. What other major considerations are there for installation of new equipment? (e.g.
plant down time, worker productivity)
A5
APPENDIX A
INTERVIEW GUIDE
D8. Who most often specifies attributes of new equipment (efficiency, features)?
D9. Who makes the final decision on purchasing?
D6.
Specifies
D7.
Final Decision
(Lower cost)
D7a.
Final Decision
(Higher cost)
President
Plant engineer
Plant electrician
Operations manager
Maintenance supervisor
Facilities manager
Purchasing department
Other: _________________
D10. Is there a dollar threshold that would involve different decision makers? If so,
indicate dollar threshold, and identify both types of decision makers above.
_________________
Notes:
E2. Are there any special considerations made for energy-efficient equipment or systems?
Yes
No
A6
APPENDIX A
INTERVIEW GUIDE
E3. Are there any policies or procedures regarding energy efficiency when investing in new
equipment or systems? (e.g. new construction/renovation or process design/retrofit decisions)
Yes
No
E4. What is the approach to financing/access to capital for energy efficient equipment?
No
Notes: ______________________________________________________
Contact name and phone number: ________________________________
E6. Is there a full time energy manager? (or is anyone formally responsible for energy
management?)
Yes
No
Notes: ______________________________________________________
Contact name and phone number: ________________________________
E7. What kind of incentives or disincentives are there to reducing energy operating costs?
(e.g. Pro: recognition/awards programs, Con: reduced budget due to savings)
A7
APPENDIX A
INTERVIEW GUIDE
O&M Practices
M1. What is the size of your maintenance staff?
_______ Full Time Equivalents
Not sure, this is a rough estimate
Dont know
M2. Please briefly describe the overall maintenance strategy for this plant? (include any
recent major changes)
M3. What type of maintenance policy does your company follow for each of the following
types of equipment?
Equipment
As
Needed
Unscheduled
Preventive
Limited
Scheduled
Preventive
Aggressive
Scheduled
Preventive
Predictive
Not
Applicable
Motor lubrication
Bearing lubrication
Motor belt replacement
Fan/blower blade cleaning
Fan/blower wheel balancing
Fan/blower airflow test
Air compressor intake filters
Compressed air water traps
& pressure regulators
Other 1 ______________
Other 2 ______________
M5. How would you characterize the knowledge of the O&M staff regarding energy
efficiency, overall?
A8
Dont
Know
APPENDIX A
INTERVIEW GUIDE
Attitudes toward EE
A1. What are your thoughts generally on high efficiency equipment and practices to
improve energy efficiency?
A2. Please tell me how you think premium efficiency equipment compares to standard
equipment in each of the following categories:
a. How long it takes to procure them:
Longer
Shorter
About same
Dont know
b. Cost of installation
Higher
Lower
About same
Dont know
c. Cost of maintenance
Higher
Lower
About same
Dont know
Notes:
A4. If your facility were as energy efficient as possible, what would it have? (If cost was not
a factor, but only using existing/emerging technologies)
A9
APPENDIX A
INTERVIEW GUIDE
A5. What are the primary factors keep you from being as energy efficient as possible?
No applicable measures for facility/processes
Waiting to see how new measures perform at other sites
Insufficient information (reliable, relevant)
Too busy to research / specify
No money to research / audit / specify
EE measures usually do not meet payback criteria
Reducing energy costs not a high priority
Capital constraints for optional EE equipment
Requires too much plant down time
Difficult to sell to management/decisionmaker
Only will do if has other benefits (e.g. productivity)
Unwilling to risk possible effect on productivity
Just not worth the trouble
Other (1):
Other (2):
Other (3):
Notes:
A10
APPENDIX A
INTERVIEW GUIDE
P3. Have you installed any high efficiency equipment at your facility in the past 24 months?
P4. What were the most important reasons that you installed high efficiency equipment or
new technologies? <Check all that apply. Do NOT prompt with items from the list.>
Pros
Energy cost savings
Maintenance or other cost savings
Increased system capacity/ productivity
Improved reliability / less down time
Improved worker environment
Other non-energy benefit __________________________________
Cons
Long delivery time
Increased maintenance or other costs
Decreased equipment reliability
Capital cost too high
Payback too long/savings too low/
Incompatibility with current systems
Other EE equipment detriment _______________________________
Other
Expertise of maintenance staff
Environmental compliance concerns
It was included in the systems we bought
Corporate policy
Other(1): __________________________________
Other(2): __________________________________
Other(3): __________________________________
A11
APPENDIX A
INTERVIEW GUIDE
P4. Do you have any plans to install high efficiency equipment in the next year?
P5. Has the energy crisis in California, or the increase in your rates, had any effect on your
decision making or practices?
Yes
Notes:
No
Next I would like to ask about new production technologies designed for your industry.
P6. Are you aware of any specific new technologies for your industry? If yes, what?
Yes
Notes:
No
P8. Are you considering (or have you already installed) this new technology(s)?
Yes, have already
Notes:
A12
APPENDIX A
INTERVIEW GUIDE
Information on EE
I1. How do you usually become aware of new products and product improvements?
Check all that apply.
Read about them in trade journals
Sales personnel/Vendors
Utility staff/programs
Business associates/ Industry Associations
Trade shows
Other ____________________________________________________________
I2. What industry organization(s) do you trust as a source for energy-related information?
I3. Are you aware of any programs or resources provided by your utility in 2002 or 2003
that were designed to promote energy efficiency for facilities like yours?
Yes
No
Record program(s), if mentioned:
Standard Performance Contract Program
Express Efficiency
Energy audits
Technology demonstrations
Other: ______________________________________________________
I4. During the last two years, did this facility participate in any energy efficiency programs
offered by your utility or other source? (record all mentions)
Standard Performance Contract Program
Express Efficiency
Energy audits
Technology demonstrations
CEC Peak Load Reduction
Other: ______________________________________________________
Brief description of project(s):
A13
APPENDIX A
INTERVIEW GUIDE
I5. What could the California energy efficiency programs, implemented by the utilities and
other 3rd parties utilizing Publics Goods Funding, do to further encourage you to install
more energy efficient equipment? (Prompt about factors such as information, education, and
financial incentives.)
Energy Systems
Things that will probably be covered in the Technical section of the survey, but address
here if necessary.
For each key end use address the following:
awareness of:
measures to implement
of effects
of energy savings
costs savings
payback
reasons for efficient operations or inefficient operations
M1. Do you have any electronic controls on process equipment that (check all that apply):
Unload or turn off equipment to save energy during idle periods?
Manage process equipment operation to minimize peak demand?
Have other energy management capabilities?
Not sure -- (Skip to the Water Re-Use section)
None -- (Skip to the Water Re-Use section)
A14
APPENDIX A
INTERVIEW GUIDE
M2. Why did you install the control system(s)? Check all that apply.
To extend machine life
To increase process reliability
To increase product quality
Came with purchased equipment
For energy savings. Please compare savings with original expectations:
Savings more than expected
Savings meet expectations
Savings fall short of expectations
Savings fall far short of expectations
No reliable way to tell energy savings
Dont know what original expectations were
Other ______________________________________________
Not sure
Types of EE projects include:
A15
compressed air
conveyor systems
process-industry specific
boiler/steam system
furnace/oven
B
B
B1
APPENDIX B
B2
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
White cement from scratch, Cement; old facility, 7 kilns, Two types of grey cement
14 raw and finish mills
grey cement from clinker
produced elsewhere
Grey cement
100-150
100-150
120
180
150-200
1 in CA
1 in CA
2 in CA
1 in CA
2 out of CA
2 out of CA
1 out of CA
Very important
Very important
Very important
Very important
Very important
over 10%
over 10%
over 10%
over 10%
over 30%
1%-5%
1%-5%
1%-5%
1%-5%
low
Not asked
B3
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
Strong However,
maintaining consistent
production and product
quality is the overriding
concern. Although
everyone at the plant is
aware of energy and it is a
key factor on which some
operations are based, we
have limited operating
staff. Fine tuning for
optimizing efficiency, and
developing, championing,
and managing energy
improvements takes staff
time that is just not
available given each
persons day to day
responsibility. We do
have special projects
engineering staff, but even
they are too busy to take
on energy projects that
arent related to
maintaining production.
Also, the plant must
remain in production as
much as possible. The
interruptions and
coordination required for
retrofits can also restrict
consideration of energy
retrofits.
Yes, For the most part. We Yes, For the most part. We For the most part. We keep
keep well informed because keep well informed because well informed because energy
energy is such an important energy is such an important is such an important cost factor.
cost factor. We are aware cost factor. We are aware Have information available but
of most technological
of most technological
not necessarily time to process
potential but do not have the potential but do not have the and analyze it.
resources to act on it.
resources to act on it.
B4
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
do not always have the
resources to act on it.
That being said, we do
often have projects where
the precise energy savings
cannot be predicted
precisely or guaranteed by
a vendor. So some
projects are not followed
up on due to the
performance risk involved.
Unlikely
Unlikely
If there is a price signal. We If there is a price signal. We Have already - with price signal Have/would - with price signal; Would consider
(real time pricing)
did with rtp
used to do this when we
used to do this when we
were on real time rates, but were on real time rates, but
no more.
no more.
Would consider
Would consider
Have already
Have/would consider
Would consider
Would consider
Have already
Have/would consider
Would consider
Would consider
Would consider
Have already
Have/would consider
Would consider
Have already
Have/would consider
Unlikely
Unlikely
Unlikely
Unlikely
Unlikely
Unlikely
Corporate or plant
Corporate or plant
Initiated and analyzed at plant,
managers identify
managers identify
goes to corporate for financial
technological potential; local technological potential; local approval.
corporate staff review and corporate staff review and
evaluate based on corporate evaluate based on corporate
criteria; ultimately goes to
criteria; ultimately goes to
corporate for financial
corporate for financial
approval.
approval.
B5
Would consider
Would consider
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
project needs from the
various division
department managers and
make the final
determination on the
budget request. It is
usually they who propose
energy related projects.
Sometimes with guidance
from the Plant Manager or
Corporate suggestions but
usually on their own
initiative. The level of
capital funding depends on
business and macro
economic conditions. We
usually have $1
million/year for capital
improvements.
Investments over $10K
require corporate approval
although sometimes they
are lumped with other
projects.
No
No
Somewhat Production output Not really. The driving factor for Not really. Energy
and specific energy is a key
all recent projects has been
projects are evaluated on
factor.
energy costs.
an overall financial sense
just like any others.
No
No
No
No
B6
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
D6. What are usually the critical driver(s) for new Capital availability
equipment? (e.g. cost savings, reliability,
innovation, productivity)
Capital availability
D
Tehachapi
maintenance costs.
Production and specific energy Energy costs, reliability, overall cost savings, reliability,
innovation, productivity
use, capital availability, market production costs, capital
projections.
availability.
D7. What other major considerations are there for Lost production time,
Lost production time,
Lost production time, reliability
installation of new equipment? (e.g. plant down
reliability risk, safety,
reliability risk, safety,
risk, safety, environmental
time, worker productivity)
environmental issues (NOX) environmental issues (NOX) issues (NOX)
Production (continuity),
environmental issues (NOX)
D9. Who makes the final decision on purchasing? Plant engineer / operations Plant engineer / operations Plant engineer / operations
Process managers ops
Plant engineer and
manager specified - Sr.
manager specified - Sr.
manager specified - Sr.
manager, maintenance
operations manager
management decides - both management decides - both management decides - both low supervisor specify (also process specify; and approve low
low and high cost purchases low and high cost purchases and high cost purchases
engineer and ee manager both cost; upper management
new); Sr. management makes approve higher cost
final decisions
D10. Is there a dollar threshold that would involve Any measure outside of
different decision makers? If so, indicate dollar
normal O&M budget goes
for corporate review
threshold, and identify both types of decision
makers above.
No
B7
No
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
No
High efficiency motors, etc. are Yes. Energy is a consideration Nothing formal, but it is
specified.
in all decisions already. HE
understood that
motors and equipment is
improvements are
routinely specified for new
expected to lower or at
equipment and replacement
least be neutral with
respect to specific energy.
eqpt. A new position will be
charged with reviewing existing
systems and identifying whether
there is a rationale for changing
out existing equipment sucha
as motors, fans, etc.
No. financial officer takes on No. financial officer takes on No. Part of Plant Manager and Yes: Not an energy manager
No
the role but is not involved in the role but is not involved in ops supervisor responsibilities per-se, but there is a person a
technical practices
technical practices
process engineer to which
energy use is a top priority and
specific job function.
E7. What kind of incentives or disincentives are Capital is very limited. Most Capital is very limited. Most
measures will require capital measures will require capital
there to reducing energy operating costs? (e.g.
Pro: recognition/awards programs, Con: reduced
budget due to savings)
B8
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
DK
D
Tehachapi
are usually play only a
small part in a major
capital project.
DK
NA
about 20 FTE
Do whatever is necessary to
keep equipment operating
so there is no lost
production
Do whatever is necessary to
keep equipment operating so
there are no bottlenecks and
lost production
Do whatever is necessary to
keep equipment operating so
there is no lost production
As needed
As needed
Limited scheduled
preventitive
Limited scheduled
preventitive
Predictive
Bearing lubrication
Motor belt replacement
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
As needed
Aggressive scheduled
preventative
Motor lubrication
Limited scheduled
preventative
As needed
As needed
As needed
Predictive
As needed
As needed
As needed
Limited scheduled
preventitive
Limited scheduled
preventitive
As needed
As needed
We had an air
compressor survey done
by a consultant in a recent
year. But we havent
done much to implement
it. (NOTE a 2001 LBL
publication says that they
installed 2 new
compressors and other
equipment and saved
900,000 kWh or $90,000.)
M4. What, if any, O&M procedures do you do
regularly to conserve energy?
B9
Lubrication, cleaning
(Cleaning is a major issue
with all the dust here.),
change belts, other
manufacturers
recommended activities.
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Moderate
Very High
C
Lucernce Valley; Ontario
Savings were about 5-6%
Moderate
Variable
Variable
Better air/combustion
controls in kilns
Better air/combustion
controls in kilns
Optimized heat
recovery/power generation
Optimized heat
recovery/power generation
Optimized heat recovery/power Heat recovery power generation Heat recovery for cogen
generation
from the clinker cooler.
Excellent
D
Tehachapi
B10
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
Tehachapi
measures perform at other
sites
Insufficient information
(reliable, relevant)
Too busy to research /
specify
No money to research
No money to research
No money to research
No money to research
Capital constraints
Capital constraints
Capital constraints
No
No
NA
NA
Yes
No
Yes - see P1
Yes Classifiers/VFDs
improved controls.
B11
APPENDIX B
Facility
Location
A1
A2
Riverside
Oro Grande
Colton CA
No
No
No
Yes; energy costs are even Yes; energy costs are even Yes. Has not affected us too
Yes; energy costs are even
more critical
more critical
much because we are on direct more critical
access. But Energy
management is even more
critical
Yes; see A4
Yes; see A4
Yes; see A4
No - capital constraints
No - capital constraints
I2. What industry organization(s) do you trust as a IEEE Tech Committee; PCA IEEE Tech Committee; PCA AIEEE Tech Committee; PCA
source for energy-related information?
I3. Are you aware of any programs or resources Yes; SPC and Express
provided by your utility in 2002 or 2003 that were Efficiency
designed to promote energy efficiency for
facilities like yours?
B12
D
Tehachapi
cost - long delivery time
APPENDIX B
Facility
Location
incentives.)
A2
Riverside
Oro Grande
Colton CA
Tehachapi
Increase capital
To increase reliability; to
To increase product
quality; for energy savings
increase quality; fore energy
savings - to allow energy-based
control
Energy savings
Energy savings
B13