Chemical Processing - October 2007 - (Page 17)

EnErgy SavEr << Say farewell to the old energy paradigm controlling costs in today’s market requires a different approach Some companieS are effectively controlling their energy costs, while others aren’t. many of today’s chemicals manufacturers are making 21st century energy decisions using a 1980s management paradigm. that approach is no longer suitable in an energy market characterized by utility deregulation, volatile energy prices, uncertain supply, evolving emissions liabilities, and rapid technological change. these sentiments embody the old paradigm that’s still widely employed by industry: • “energy is not our core business.” energy is given the managerial attention and budgetary resources commensurate with its status as a support (or secondary) function. • “you’re the engineer — you figure it out.” energy is consumed by power house assets and related plant utilities. behaviors, typically generate the least friction with other departments within the organization. energy cost control isn’t a one-time event and requires more than one tool to achieve ongoing progress. too often, though, plant managers focus on a “project” at a time. While this can lead to some gains, it doesn’t achieve anything near what’s possible from an ongoing energy management process. modern industrial energy management strategies often require the coordination of many people across several departments. energy management — the concept, the strategies for its implementation, and its impact on business performance — must be mutually understood by all stakeholders if implementation is to succeed. this fact defeats expectations for companies that cling to the old energydecision paradigm, and probably explains why a lot of energy waste still persists. modern energy management employs goals, benchmarks, monitoring, remedial actions, and shrewd investments, all of which are committed to standard operating procedures. these are applied bumperto-bumper, throughout the organization. there’s a wide gap between the old industrial energy paradigm and the demands of today’s energy market. any facility trying to close that gap will require more than the efforts of a single department or individual. to see a wealth of energy management information, including case studies and a critique of prevailing strategies, visit the Web site of the alliance to Save energy (aSe) at: www.ase.org/section/topic/industry. the aSe is a non-profit coalition of business, government, consumer, and environmental leaders that promotes energy efficiency worldwide to benefit the economy, environment and energy security. on the aSe site you can find a list of programs, reports, events and other energy-related information. the reports include: “energy management pathfinder,” “motivating Business leaders to improve profitability through energy efficiency,” “Strategic industrial energy efficiency,” and “efficiency and innovation in U.S. manufacturing energy Use.” there also are energy management survey results, strategies, a checklist for management approval of energy projects, and more resources available. CP Christopher Russell, contributing editor CRussell@Putman.net http://www.energypathfinder.com, blog: http://energypathfinder.blogspot.com october 2007 • 17 Modern energy management is applied bumperto-bumper, throughout the organization. therefore, the energy cost control is often delegated to the engineering staff that operate these assets. • “low fuel price is the solution.” Some companies see energy costs purely as an issue for their procurement director. this applies to facilities located in states with deregulated utilities markets that allow consumers to choose their energy commodity provider. • “it’s not my job.” Departmental “silos” or “turf” issues are a fact of life in most organizations. competition between departments for budget authority only reinforces departmental divisions. companies tend to assign problems to one person or department. this ensures that energy control remains strictly an “engineering” or “procurement” issue. • “that’s the way we’ve always done it.” people seek energy solutions by using the tools that their professional discipline provides. for engineers, this means pursuing technology and hardware projects. procurement directors seek the lowest available energy prices by changing energy providers, switching fuel types, or both. engineering or procurement solutions, in contrast to changing energy-related procedures and www.chemicalprocessing.com http://www.ase.org/section/topic/industry http://energypathfinder.com http://energypathfinder.blogspot.com http://www.chemicalprocessing.com

Table of Contents Feed for the Digital Edition of Chemical Processing - October 2007

Chemical Processing - October 2007 Contents From the Editor ChemicalProcessing.com Field Notes In Process Energy Saver Compliance Advisor Biofeedstocks See Real Growth Become a Cyber-Security Pacesetter Go Beyond Condition Monitoring Disposable Equipment Earns Lasting Role Improve Control Loop Performance Ethanol Plant Boosts Output and Saves Energy Process Puzzler Plant InSites Equipment & Services Ad Lits Product Spotlight/Classifieds Ad Index End Point

Chemical Processing - October 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.