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Page 1: Experiences from Denmark - Energistyrelsen · Energy Policy Toolkit 7 the energy intensity decreased by 41.7 % from 1990 to 2013. Up to 1993, the energy intensity increased, while

Experiences from Denmark

Energy Efficiency in Industries

Energy Policy Toolkit on

Page 2: Experiences from Denmark - Energistyrelsen · Energy Policy Toolkit 7 the energy intensity decreased by 41.7 % from 1990 to 2013. Up to 1993, the energy intensity increased, while

Energy Efficiency in Industries2

Abbreviations

DEA Danish Energy Agency

DTI Danish Technological Institute

EE EnergyEfficiency

EEOScheme EnergyEfficiencyObligatonScheme

EMS Energy management Systems

EnMP Energy Management Program

EnPI Energy Performance Indicator

GHG Greenhouse Gas

HVAC Heating, Ventilation and Air Conditioning

IIP Institute for Industrial Productivity

KPI Key Performance Indicator

kWh Kilowatt Hour

LEDS Low Emission Development Strategies

LIEN Large Industry Energy Network

PBT Pay Back Time

PJ Peta Joule (=1000 Tera Joule)

TJ Tera Joule

SME Small and Medium Sized Enterprise

WWF World Wildlife Foundation

Page 3: Experiences from Denmark - Energistyrelsen · Energy Policy Toolkit 7 the energy intensity decreased by 41.7 % from 1990 to 2013. Up to 1993, the energy intensity increased, while

Energy Policy Toolkit 3

Abbreviations ................................................................................................................................................. 2

Introduction .................................................................................................................................................. 4

EnergyEfficiencypoliciesfortheIndustrialSector ............................................................................... 6

VoluntaryAgreementSchemeonEnergyEfficiency ............................................................................. 9

“Carrot and stick” ............................................................................................................................ 9

Requirements to an agreement company ................................................................................... 9

Energy Management ....................................................................................................................... 10

Energy Management Standard ISO50001 .................................................................... 11

Technical Approach ............................................................................................................14

Administration and Management of the Voluntary Agreement Scheme ................. 16

EnergyEfficiencyObligationSchemeforUtilityCompanies ............................................................. 22

Key Messages ............................................................................................................................................... 25

AnnexA–Howpolicycandriveindustrialenergyefficiencyacrosstheglobe ........................... 26

Annex B – Example of Technical Approach ........................................................................................... 29

Annex C – ISO50001 Fundamentals ...................................................................................................... 32

Annex D – Danishcompaniesandorganisationswithinenergyefficiency ................................... 34

Page 4: Experiences from Denmark - Energistyrelsen · Energy Policy Toolkit 7 the energy intensity decreased by 41.7 % from 1990 to 2013. Up to 1993, the energy intensity increased, while

Energy Efficiency in Industries4

IntroductionCountries around the world face critical energy choices today that may have significant implications for manyyears to come.

Economic growth and future prosperity are challenged byrapidlyincreasingenergyneedsworldwide.Thebulkoftoday’sglobalenergyproductionisbasedonunsus-tainablefossilfuelssuchascoal,oilandgas.Thisposesa serious climate threat as well as a threat to the liveli-hood of future generations and people living in adversely affected regions and countries.

Thesustainablealternativetofossilfuelsisenergyeffi-ciencyandrenewableenergy.Strongnationalstrategiestouseenergymuchmoreefficientlythanwedotodayshould be the point of departure.To phase out fossilfuelsandincreasetheproductionofrenewableenergyin parallel is another key aspect.Concrete actions bycountries aswell as international efforts tofind solu-tionstomitigateglobalwarmingareneeded.

Denmarkhasyearsofexperienceinsustainableenergytransition. The Danish experiences in promoting energy efficiency and renewable energy could be relevant tocountries that wish to make their energy systems more sustainable and less dependent on fossil fuels. Firmlyrootedinmeasuresadoptedbyabroadparliamentarymajority Denmark has agreed to a 2020 target entailing :

• 35%renewableenergyinfinalenergyconsumption.

• 12 % reduction in gross energy comsumption compared to 2006.

• Minimum 34 % reduction in greenhouse gas emissions (GHG) compared to 1990.

This is in line with the Danish Government’s long term target ofmakingDenmark self-reliance on renewableenergy in 2050.

Makingbadchoiceswithregardtoenergymix, timingand scope of investments may lock in expensive energy infrastructure and pollution for decades. Therefore, decisionsonenergyefficiencyaspectsshouldbebasedonthebestavailableguidanceandexperiences.

This energy policy toolkit shares Danish knowledge andexperiencesabouthandlingbarriersandimprovingenergyefficiencyintheindustry.Theindustrialsectorhashugeunharnessedenergyefficiencypotentialsandcon-stitutes an opportunity for governments to improve the economy and competitiveness of industry. Furthermore, there are opportunities to mitigate climate change and air pollution through reduction in greenhouse gas emis-sions,aswellasmakingsignificantinvestmentsinsupplyside power infrastructure unnecessary.

InorderalsotoseetheDanishpolicyonenergyeffi-ciency in industries in an international perspective, an article entitled “How policy can drive industrial energy efficiency across the globe” is included in the toolkit,asAnnexA.Thetextiswritten–onrequest–byJuliaReinaud, who previously worked at the Institute for Industrial Productivity. It is here pointed out that this toolkit comes at a time when having effective energy efficiencypoliciesinplacefortheindustrysectorcouldnotbemoreimportant,andthatenergyefficiencypoli-cies do more than just help mitigate climate change. Improvingenergyefficiencybringswithitahostofben-efits tohumanhealthand theenvironment, generatesjobsanddriveseconomicgrowth.Furthermore,enter-prisesstandtogaintoobysavingupto10-30%oftheirannual energy use, and increasing their productivity, throughbetterenergymanagement.Thusthemessageisthatenergyefficiencyoffersawin-winsituationforall.

This toolkit is drafted by theDanish EnergyAgency’sCentre for Global Cooperation under the DanishMinistry of Energy, Utilities and Climate. Centre forGlobalCooperation publishes a series of energy pol-icy toolkits providing specific, technical and concrete

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Energy Policy Toolkit 5

information on Danish experiences and lessons learned ontoolsandmeasuresinpromotingrenewableenergyandenergyefficiency.Theytargetpractitioners,govern-mental energy experts and policy makers in emerg-ing economies.The aim is to give qualified guidanceto countries in their implementation of Greenhouse Gas (GHG) reduction measures and Low Emission Development Strategies (LEDS).

Comments to this policy toolkit, questions on Danish energy efficiency policy as well as queries on theDanishEnergyAgency’sCentreforGlobalCooperationare most welcome. Please contact Ulla VestergaardRasmussen, Advisor, [email protected], phone +45 3392 7571 or Steffen Nielsen, Special Advisor, [email protected], phone +4533926696orvisitourwebsite:

www.ens.dk/global-cooperation

Industry matters as a primary source for energy efficiency gains:

› Industryaccountsforaboutonequarteroftotalglobalenergyconsumption.

› Energy management and existing technol-ogy provide a huge savings potential with shortpayback-periods.

› Manyenergyefficiencymeasures in indus-try are cost-effective. Not only do such measures save energy costs and improve competitiveness, they may also make costly investments in generation capacity unnecessary.

› Energy efficiency is not a strategic focusarea in most industrial sectors. Therefore, governmental actions are necessary to initi-ate energy saving investments.

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Energy Efficiency in Industries6

Denmark has a long tradition of active energy policy, initiatedbythefirstoilcrisisin1973.Overtheyears,numerousactionshavebeentakenbybroadconsen-sus in the Danish Parliament to reduce the energy consumptionbyincreasingenergyefficiencyandtoincreasetheshareofrenewableenergy.

AsystematicDanishenergyefficiencypolicyaddress-ingtheindustrialsectortookitsbeginningintheearly 1990s. The energy consumption in industry had increased steadily until then. In 1990 the government launched an overall energy plan “Energy 2000” on how toreachitsambitiousclimateandenergypolicygoals.Analyses showed that cost effective CO2 reductions wereavailableintheindustrialsector,butalsothatgovernmental action was necessary to overcome a numberofbarriers.

Oneimportantbarrierwaslackofbothstrategicpriorityofenergyefficiencyatcompanylevelandwillingnesstoinvestinenergyefficiencymeasuresintheboardrooms.Ingeneral,therewasaneedforimproved knowledge and experience regarding energy saving potentials and on how to improve energy efficiency.Inordertoovercomethesebarriersitwasdecided to take action through four different measures; taxonenergy,energysavingthroughlegislation,subsidyschemes,anddevelopmentofanumberofsupportivemeasures.

In 1993, a CO2 tax on certain energy products, such as coal, oil and natural gas, was introduced in the Danish tax system. In order to ensure that the indus-try’scompetitivenesswasnotburdenedbythenewtax, energy-intensive companies had their CO2 taxes, almost entirely, refunded, if they in return performed energy audits. In 1996, a the voluntary agreement schemeonenergyefficiencywasintroducedaspartofa comprehensive “green tax package”, as more action was needed in order to reach the national CO2 goal of 20 % reduction in 2005 compared to 1988. The green tax package comprised three elements:

• An increased tax on CO2 emissions from fossil fuels used for industrial processes/ ”green taxes”

• OptionstogettaxreimbursementsontheCO2

Energy Efficiency policies for the Industrial Sector

tax provided that the company made an agree-ment with the authorities on energy saving pro-jects/ ”Voluntary Agreements”

• Subsidiesforenergysavingprojects.

The voluntary agreement scheme1 has had a central role among the Danish Government’s policy measures addressingenergyefficiencyinindustry.Theschemehas proven highly successful in achieving energy savings andefficiencywithouthamperingtheinternationalcompetitiveness of Danish industry. The scheme has beenstrengthenedseveraltimesbasedonanumberofevaluations.

Another important energy policy measure in Denmark addressing all end consumer sectors, and thus also the industrialsector,istheenergyefficiencyobligationsscheme.TheschemeconsistsofanenergyefficiencyobligationwithanannualbindingenergysavingtargetforallDanishenergydistributioncompanies(electric-ity, heating, gas and oil). The scheme was introduced in 2006. The involved companies have a high degree of freedomofchoiceonhowtheychosetofulfiltheirobligations.Theoverallsavingtargethasbeenincreasedgraduallysince2006.Theprogramisfurtherdescribedon page 22.

The Danish Industrial Sector

The final energy consumption in theDanish industrysector amounts to 128 PJ (2013), which represents approximately one fifth of the total final energy con-sumption in Denmark. The Danish industry sector is characterisedbya largenumberofsmallandmediumsized companies (SMEs), and a rather limited numberof large, energy-intensive companies, e.g. in the cement, refinery and steel sector. The voluntary agreementscheme target heavy processes in large as well as SMEs, including also greenhouse heating, the production of foodstuffsandbeverages,sugar,paper,bricksandglass.

Sincearound1990,energyefficiencywithinthe indus-trial sector has improved significantly in Denmark.Theearly1990’ieswasthebeginningofthesystematicDanish policy on realizing energy savings and improving energyefficiencyinindustry.Withintheindustrysector

1. TheDanishvoluntaryagreementschemeisdescribedinmoredetailonpage8-9.

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Energy Policy Toolkit 7

theenergyintensitydecreasedby41.7%from1990to2013.Upto1993,theenergyintensityincreased,whileafter1993therehasbeenacontinuingdecrease.Inthemanufacturingsector,theenergyintensitydecreasedby0.8%from1990to1993andby47.7%from1993to2013.Thisdevelopmentcanbeseenasanindicationoftheeffectivenessoftheenergyefficiencypoliciesappliedin the industrial sector.

However, another reason for the decrease in energy intensityhasbeenthesignificantstructuralchangeswithfewer high energy intensity industries during the same period.Regardlessof thesignificanceof thestructuralchanges,thereisnodoubtabouttheimpactandstrongresultsoftheDanishenergyefficiencypolicytargetingthe industrial sector2.

2. DatafromtheDEA’sEnergyStatistics2013:www.ens.dk/sites/ens.dk/files/info/tal-kort/statistik-noegletal/aarlig-energistatistik/energystatistics2013.pdf

Althoughtheindustryhasfocusedonenergyefficiencyover a long period, there are still ways to save energy. An analysis, conducted in 2010, showed that there are a growingnumberofsavingsopportunitiescomparedtoprevious analyses in the 1990’ties. There are several rea-sons for that. The well-known potential savings are still notrealized,andcontinuouslynewtechnicalandbehav-ioural opportunities are developed. Changes in relations of production and energy prices also affect the saving potential. The total energy saving potential in Danish industrialsectorin2010isshownintable1.

Energy saving potential in Danish industrial sector by energy source and payback-period

Energy source Share of energy demand

2yearspayback 4yearspayback 10yearspayback

Electricity 33% 14% 19% 41%

Fuels 67% 7% 12% 26%

Key points and recommendations from the Danish case:

› Energyefficiencyisnotastrategicfocusarea in most industries. Therefore gov-ernmental actions are necessary to initi-ate energy saving investments

› Acombinationofmeasures“CarrotandStick” should be applied to stimulatea development towards an increased energyefficiencyintheindustrialsector

› Increased energy efficiency increasescompetitiveness of the industrial sec-tor and often also leads to increased productivity.K

EY

Table1.Forfuelconsumption,energysavingsinprocesseslikeevaporators,dryingprocessesandprocessheating/heatrecoveryrep-resent the largest part of the saving potential, while utility systems (refrigeration plants, compressed air systems etc.) represent the largest part of the electricity saving potential.

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Energy Efficiency in Industries8

The Danish voluntary agreement scheme on energy efficiencyforenergyintensiveindustrieswaslaunchedin1996andhasbeenacornerstoneamongmeasurestostimulateenergyefficiency inthistargetgroup.Thescheme was launched by the Danish government asa means of achieving the long-term goal of reducing CO2-emissions intheDanishsocietyby20% in2005comparedto1988.TheschemeisadministeredbytheDanish Energy Agency.

Upto2010therewereabout230companieswithvol-untary agreements covering about two thirds of thetotalfuelconsumptionandbetweenathirdandafourthof the electricity consumption in the Danish industry andmanufacturingsectors,correspondingtoabout8-9% of the national gross energy consumption.

“Carrot and stick”

The agreement scheme for energy intensive industries isvoluntary,butbasedonaprinciplewherecompaniesentering the scheme will have economic incentives (“carrot”)fromextraworknecessary(“stick”).UndertheDanishlegislation,theimmediateeconomicbenefithasbeenchosentobeanenergytaxrelief.Formostenergy-intensivecompaniesthebusinesscaseissimple:Thetaxreliefexceedsthecostsassociatedwithbeingin the scheme.

The Danish voluntary agreement scheme is designed for companies with one of the following characteristics:

• The company operates certain energy intensive unit operations or

• The company’s energy taxes exceed 4 % of the company’s value added.

Atotalof37processesaredefinedbyDanishlaw.The list of energy-intensive unit operations (“heavy processes”) comprises for instance:

• Evaporator plants – for instance concentration of milk products.

• Drying processes – for instance drying of paper/pulp, proteins and chemical products.

• Distillation columns – for instance for concen-tration of alcohol and hexane.

• Kilns – for instance for production of cement, chalk and clay products.

Voluntary Agreement Scheme on Energy Efficiency

• Furnaces – for instance for melting of glass, met-als and minerals.

• Refineryproducts– for instanceproductionofoil and gasoline products.

Requirements to an agreement company

A voluntary energy efficiency agreement is a 3-yearcontractenteredbetweenthecompanyandtheDanishEnergyAgency.Itisalsopossibleforanumberofcom-paniesinthesamesubsectortoenterintoajointagree-ment with the Danish Energy Agency. A joint agreement consistsofindividualagreementsandanumberofcom-mon special investigations relevant to the subsector.AnexampleofasubsectorwithajointagreementwithDEA is the Danish brick industry.The main require-ments from the Danish Energy Agency to an agreement company – or group of companies - are:

• The company must implement and maintain a certified energymanagement system accordingtotheglobalstandardISO50001.

• The company must carry out special investiga-tions and projects focusing on their primary pro-duction processes, including thorough productiv-ity analysis, optimization analyses and analyses of the control of the central process equipment.

• The company must implement all energy effi-ciency projects with a simple payback time offour years or less.

The energy management system and additional require-mentsbytheDanishEnergyAgencymustbecertifiedannuallybyanaccreditedbody3 verifying that the company:

• presentsanupdatedannualbreakdownofenergyconsumptionbyend-use.

• setstargetsandbudgetsforenergyconsumptionthe forthcoming year.

• screensthecompanytoidentifypossibleenergysaving projects.

• prepares action plan for investment projects the forthcoming year.

• implements all energy saving measures and pro-jectswithasimplepaybacktimeof less than4years.

• carries out special investigations for complicated energy saving areas.

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Energy Policy Toolkit 9

FAC

T Factsheet

Evaluations of the Voluntary Agreement Scheme

In the period 1996 – 2013 more than 200 companies have joined the agreement scheme for shorter or longer periods. Severalevaluationshavebeencarriedouttoassesscostsandbenefitsoftheschemeandtoadjusttheapproachandobligationsofthescheme.

In 2005 an evaluation showed that the com-panies participating in the agreement scheme in average saved 4.8 % of their energy con-sumption in the period 2000-2003. In 2013 an evaluation showed that the agreement companies in the period 2006-2011 saved 5.4 % of their energy consumption in average.

Inbothevaluationsitwasconcludedthattheagreement scheme was the reason for more than half of the achieved energy savings. Furthermore, that the voluntary agreement scheme had highest influence in medium-large-sized companies, where energy-inten-sive companies – for instance within the cement sector - already had a strong focus on energy efficiency for simple businessreasons.

In 2008, a comprehensive evaluation of all energy efficiency programs in Denmark was carried out.Amongotherparameters,additionalityandcosteffi-ciency of the programs were compared. The evalua-tion showed that the voluntary agreement scheme for energy intensive industries was cost-effective, and also that it was more cost-effective than the pro-grams addressing the other sectors.

Further developments of the Voluntary Agreement Scheme

In spring2014abroadcoalitionofpoliticalpartiesdecided to continue the successful voluntary agree-ment scheme to strengthen the competitiveness of Danish energy intensive companies. The scheme is projected to run from 2015-2020 with implemen-tation of a certified energy management systemaccording to the global standard ISO 50001 as amandatoryobligation.

TheVoluntaryAgreement Scheme is built on theexperiences from the former Schemewhich by itsexpiry of 2013, have resulted in systematic energy savings in companies by the implementation andmaintenance of the energy management system. Approximately 1.400 production facilities within 68 different sectors spanning from production of food andbeveragetomoldingofsteelareincludedintheVoluntary Agreement Scheme.

• evaluates energy key performance indicators/KPIs regularly.

• applies energy-efficient design methods whenplanning investments.

• carries out internal audits of procedures and reporting.

• arranges management evaluation of the scheme.• follows the procedures for energy efficient

design and purchasing.

The continued progress of these activities is secured bythecertifiedenergymanagementsystem.However,the experience has been that specific requirementssuch as the above-mentioned have to be set by theDanish Energy Agency to make the requirements in the ISO50001-standard more precise and easier to evaluate.4

Overall, thecosts forbeing in theschemehave tobetakenintoaccount.Tofulfiltheobligations,internaltimemustbeallocatedtomanagethescheme,certificationcosts must be expected, and furthermore, fees forexternalspecialistsmustbeexpected.Formostenergyintensive companies these costs, however, are much smallerthantheeconomicbenefit(taxrelief)andtheenergy savings.

Forsmallercompanies,acertifiedenergymanagementsystemwillasgeneralrulebetooexpensivetomaintain.Therefore, the Danish Energy Agency - together with Danish Standards (accredited to certify energy manage-ment systems) - has introduced an “energy management light”-methodology for this target group (Annex C).

3. In Denmark, Bureau Veritas (BVQI), Det Norske Veritas (DNV) and Danish Standards are accredited to certify energy management systems accordingtotheglobalstandardISO50001.

4. IntheDanishscheme,requirementstothebreakdownofenergyconsumption,tocarryoutspecialinvestigationsandtoidentifysavingprojectsandimplementthosewithpaybacklessthan4years,aremoredetailedthanwhatisdescribedintheISO50001-standard.

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Energy Efficiency in Industries10

Energy Management

In Denmark, a compulsory energy audit scheme in the early 1990’s paved the way for the development of the voluntary agreement scheme for energy inten-sive industries. The experiences from the compulsory scheme5 showed that a traditional energy audit tended toaddress“quickfixes”mainlyineasilyaccessibletech-nicalareassuchaslightingsystems,boilertune-upsandimprovement of insulation of steam piping systems and the likes.

An evaluation of these experiences made it clear that a moreeffectiveenergyefficiencyschemeforlargeindus-triesshouldbuildonthefollowingprinciples:

• A continued and systematic effort is necessary to improve performance year after year.

• An involvement of key persons inside the com-paniesisnecessarytoaddressdifficulttechnicalareas.

• A clear management buy-in is important tosecure a continued commitment at all levels.

• Budgetsandtargetsshouldbeseteveryyear,andachievedresults shouldbeevaluatedcomparedto these.

Basedonthesefindings,theDanishEnergyAgencyini-tiated the development of a first standard for energymanagement. In 1999 the first standard,DS2403, waslaunched as a key element in the Danish energy agree-ment scheme for large energy intensive industries.

The Danish energy management standard DS2403 was basedontheprinciplesoftheEUEco-ManagementandAudit Scheme (EMAS), a management system developed bytheEuropeanCommissionforcompaniesandotherorganizations to evaluate, report, and improve their environmental performance.

KEY

Key points and recommendations from the Danish voluntary agreement scheme:

› The voluntary agreement scheme for theindustrialsectorissuitableforlargeand medium-sized industries consuming most of the energy used in the industrial sector–butingeneralsmallerindustriesdonothaveresourcesforacertifiedsys-tematicapproachonenergyefficiency.

› Theschemeshouldcombine“carrotandstick” – the industries would look for an immediateeconomicbenefit if they areto enter an agreement that demands extra work efforts and investments to reduce energy consumption.

› Improvedenergyefficiencyintheindus-trial sector necessitates a continued and long-term, systematic working effort – notjust“quickfixes”.

› The agreement voluntary scheme should describeindetailand“bottom-up”which

actions industries must take to improve energy efficiency rather than settingoverall requirements and improvement targets for each individual industry.

› In Denmark the voluntary agreement schemeforindustrybasedontheprinci-plesabovehaveshowntobeamongthemost cost-efficient governmental initia-tivestopromoteenergyefficiencyacrossall sectors.

› Energy management is an essential ele-ment in the Danish Voluntary Agreement inordertopromoteenergyefficiencyinthe industrial sector. Experiences show that companies can reduce their energy consumptionby10-15%byimplement-ing energy management.

5. During1992-1995,bylawallenergyintensiveindustriesinDenmarkshouldcarryoutgeneralenergyaudits.

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Energy Policy Toolkit 11

The annual cyclic efforts to reduce energy consumption comprise the following activities:

Plan

Thecompanynominatesanenergymanagerandbuildsan organization that supports activities. An energy review is carried out and targets for improvements are set.

Do

The company establishes procedures anddocumenta-tion. These support the energy management system and trainpeopletoincreaseawarenesstowardsenergyeffi-ciency in all relevant operations.

Check

The company monitors energy consumption and evalu-ates performance compared to targets. Deviations from planned development are analysed and corrective actions are implemented if necessary.

Act

The company management reviews results and per-formances of the energy management system. This ensures progress and continual improvement in the energy performance. Adjustments of the system might beimplemented.

In Annex C, the fundamentals of ISO50001 are summa-rized along with simple energy management principles addressing also small and medium sized enterprises (SMEs).

Figure 1. Cyclic approach of an energy management system aiming at continued improvements.

ACT PLAN

CHECK DO

Energy Management Standard ISO50001

DS2403hasbeenan inspirationfortheIrishStandardIS393 launched in 2006,which later formed the basisfor the development of the European energy manage-mentstandardEN16001.Todaythisstandardhasbeenreplaced by the global energy management standardISO50001.Themanagementsystemisbasedonacyclic“plan-do-check-act”approach,basicallyusedinallman-agement systems aiming at continued improvements (seeFigure1below).

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Energy Efficiency in Industries12

Systematic energy management has made Danish Malting Group (DMG) one of the world’s most energy efficient malt houses

Since 1996 DMG has had an agreement with the DanishEnergyAgencytoimplementenergyefficientmeasures. DMG has among others committed to introduce energy management and implement all energyreducingprojectswithasimplepaybacktimeless than four years.

DMG is certified according to theenergymanage-ment standard ISO 50001. The major cost in the productionofmaltistherawmaterialbarley.Butifthisissubtracted,utilitycosts,includingenergytaxes,make up the far largest part of the remaining costs (approximately 57 %). The fact that energy makes up such a large part of the cost motivates to make energy savings.

This motivation was taken seriously at DMG and a comprehensive optimization effort for the processes

of the malting house was initiated with assistance from the international energy management standard ISO 50001. The result was a 43 % reduction in elec-tricity consumption and 30 % in heat consumption for theperiod1997-2014–illustratedbyfigure2andfig-ure 3. The energy saving efforts have made DMG one of the malt houses of the world using least energy per ton produced malt.

Energy management puts focus on process optimization

Through energy management DMG in this way has had a distinct focus on energy savings since the end ofthe1990’s.Thishascontributedtoafocusontheenergy consumption of the production processes and to get the work with process control and optimiza-tionstarted.Energymanagementhascontributedtoget the energy optimization started and to improve the results.

Figure 2. Development in electricity consumption per ton malt.

Figure 3. Development in heat consumption per ton malt.

Case: Danish Malting Group

820 799706

776 827816760

700 709642

698614 614603 588 607597 571

0100200300400500600700800900

1000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

kWh/

ton

Year

Heat consumption per ton malt30 %

145136 130113 104

93 9484 89 84 82 87 86 88 87 88 85 83

-101030507090

110130150170

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

kWh/

ton

Year

Electricity consumption per ton malt

43 %

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Energy Policy Toolkit 13

Drying malt demands large amounts of energy

The most energy-intensive part of the malting pro-cess is the malt kilning. Here the grain (green malt) is dried and the most important aromatic compo-nents of the malt that contribute to the taste oflaterbrewedbeeraredeveloped.Thedryingprocessdemands large amount of energy. In fact 99,8 % of the plant’s heat consumption and 58 % of its electricity consumptionisconsumedbytheprocessesofdrying.

Electricity consumption can be reduced by optimiz-ing drying time and the fan speed

The large share of electricity was especially con-sumedbythefansthatblowhotairthroughthegraintodryit.However,atDMGithasbeenrealisedthatthe fans only use one eighth of power if they are put on half speed. So even a smaller decrease in speed hasabigreducingeffectontheenergyconsumption.

In some parts of the malting process cooling is needed and this also weighs heavily in relation to the electricity consumption. At DMG like at other malt house facilities the cold outdoor air is utilised in the winter as free cooling. In the summer period cooling with an energy consuming system is necessary and

DMGhasmoreoverestablishedintelligentcontrolofthe facility so electricity is only used when demand is actually there.

Heat consumption reduced by optimizing the heat supply

Heat consumption has especially been reduced byoptimizing the facilities that produce process heat forthemalthouse.Themostofthetimeagasboilerisprovidingheattothemalthouse.Thegasboiler’sefficiency has been increased from 90% to 103%byestablishinganexhaustgasheatexchanger.Ituti-lises the condensed heat from the exhaust gas which explainstheefficiencyover100%.

Even lower numbers than modern malt houses

Today DMG only uses 83 kWh of electricity and 571 kWh of heat per ton malt which is impressive num-berscomparedwithsimilarmalthouses.Fromtable2itisseenthatthenumbersaresignificantlyhigheratsimilar Russian and Chinese malt houses which in fact have newer and more modern facilities and thus have theopportunitytobeevenmoreefficient.Theleadingposition of DMG is alone due to the systematic opti-mization of the malt house’s processes so that they match the actual demand of the malt house.

FACTSABOUTDANISHMALTINGGROUP

› One of Europe’s largest malt houses

› Theplantwascompletedin1996andisownedby

CarlsbergBreweries

› Annually produces 115.000-125.000 ton of pilsner malt

› Has 24 employees

› Has an annual electricity consumption of 10.229 MWh (2014)

and an annual gas consumption of 6.407 million Nm3 (2014)

› Annually emits 15.522 ton CO2 (2014)

Table2.SeeninthechartisconsumptionnumbersforDMG’smalting houses in Denmark and Poland compared to similar malt houses in Russia and China, which have modern facilities with same construction as DMG.

DMG

DMG

Poland Russia China

Electricity (kWh/tonne) 83 77 130 124

Heat

(kWh/tonne)571 665 670 1066

Water

(m3/tonne)1,6 4.4 3.7 6.8

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Energy Efficiency in Industries14

Technical Approach

Thelessonslearnedfrom20yearsofenergyefficiencyprograms in Danish industry are – among others – that the energy consumption pattern in energy intensive industries is far more complicated than in for exam-pleabuilding.Thereforemuchwiderapproachesmustbeapplied inorderto implementsignificantandcost-efficientenergysavings.Areasasproductionprocesses,utility systems, maintenance and operator behaviourshouldallbeinfocus.

Suchabroadapproachcanbedescribedinthe“Onion”diagram. The “Onion” diagram was originally introduced for energy efficiency purposes as a part of processintegration studies6,buthasbeenrefinedandexpandedunder the Danish voluntary agreement scheme, see Figure 4.

The onion diagram aims to define a systematic“inside-out”approachtoenergyefficiencystartingbyquestioning the core reasons (“the energy service”) why a process or an area uses energy. Basic process parameters,designstandardsandproductspecifica-tions can define most of the energy consumptioninafacilityandthereforealsoinfluencemostoftheenergy-saving potential.

Upon such analysis, focus of energy-saving analysiscanprogresstoaddressefficiencyoftheproduction

process and equipment in the facility. Improvements of processes and equipment should be carried outonly when it is clearly understood how the “energy service”influencesenergyconsumptioninthefacility.

Finally, opportunities to optimize control and opera-tion of equipment and processes can be identified.Oftenmaintenanceprocedureswillbeanimportantarea to address. In addition, operator behaviour(“Goodhousekeeping”)canhavesignificantinfluenceonhowefficientafacilityisoperated.

The“Onion”diagramisoftensimplifiedtoatsayingthat“energyisused–andcanbesaved–twice”:firsttime inside the production processes and second timebytheutilitysystemssupplyingenergy(steam,hot water, cooling, compressed air, electricity etc.) to the production processes.

The “Onion” diagram has been a cornerstone inDanish voluntary agreement scheme, but it hasalso been adopted by other national programs.Anexample isSustainableEnergyAuthorityof Ireland’sprogram for large energy users, the Large Industry EnergyNetwork(LIEN).Thediagramhasalsobeenused as a key-methodology in programs for energy efficient design of new green field industries andbuildings.

In Annex B, an example of an “onion” diagram analysis ofanindustrialprocessisdescribed.

The “Onion” diagram

Figure 4.

6. “PinchAnalysisandProcessIntegration,AUsersGuidetoProcessIntegration”,I.C.Kemp,1982

Energyservice

Operation andmaintenance

Proces

Equipment

Control

Good housekeeping

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Energy Policy Toolkit 15

KEY

Key points and recommendations from the Danish case:

› Acontinuedandsystematicenergyeffi-ciency focus necessitates management buy-in tomaintain focus, to involve theright people/competences, to evaluate progress and to allocate resources and budgetsyearafteryear.

› Acertifiedenergymanagementschemeaccording to ISO50001 (or similar) aiming at continued improvements is a cornerstone to tie systematic energy efficiencyworktogether.

› To keep an energy management system on track, frequent (annual) and detailed evaluations of progress in each individual companymustbecarriedout internallyandbyauthorities.

› To achieve significant energy savings inlarge industries, both production pro-cesses and utility systems must be infocus.

› To address optimization of the most important areas, not just technical staff shouldbeinvolved.Alsoproductspecial-ists and quality people (among others) canplayanimportantroleinre-definingimportant process parameters.

› Energy efficiency analysis of productionprocesses and utility systems can becomplex and time-consuming to carry out. Such analysis could be defined as“special investigations” and planned care-fullytobesuccessful.

Case - Chr. Hansen

Chr. Hansen is one of the world’s largest suppliers of ingredients for the food industry, including in the formof lacticacidbacterial cultures,enzymes, anti-oxidants,flavouringandcolouringagents.Worldwidethe company has approximately 2,000 employees.

Chr. Hansen was among the first companies tofully apply the technical approaches developed in

the Danish Voluntary Agreement Scheme (i.e. the “Onion” diagram). This happened during the planning anddesignofanewgreenfieldfermentationfacilityinthe Copenhagen area during 1995-1996. Supported as a pilot project by theDanishEnergyAgency, anexternalenergyefficiencyexpertwashiredtocarryoutadetailedreviewofallbasicplanninganddesignparameters for the project. As a part of this analysis, energy consumption in all processes and utility sys-temsintheplannedfacilitywereanalysedandsignifi-cant changes were made in order to reduce energy consumption.

Forinstance,theexpertidentifiedsignificantoppor-tunities to reduce the requirements for ventilation (HVAC) and cooling inside the production areas via a change of production parameters.

The total implemented energy saving from these improvements amounted to more than 30 % of the expected energy consumption at the facility. The extra investment to implement the improvements waspaidbackinlessthan2years.

Bacteria cultures at Chr. Hansen are stored at temperatures as low as -55°C.

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Energy Efficiency in Industries16

FAC

TFactsheet

Special Investigations

In the Danish Voluntary Agreement Scheme, ithasbeenexperiencedthatitisdifficultforthe companies to carry out complex energy savinganalyses.Thisisbecausethecompanyculture mostly is focused on production management.

Therefore the Danish Energy Agency has set strict requirements that more complex energy saving analyses must be defined as“special investigations” and that these should becarefullyplannedincluding:

› Clear ownership in the organization.

› Well-describedactivities.

› Allocated resources.

› Budget for consultants and investments.

› Timeline for investigations.

Morethan1,000specialinvestigationshavebeencar-ried out in Danish voluntary agreement companies. Experience has shown that more than 30 % of these investigations have led to significant implementedenergy savings.

Administration and Management of the Voluntary Agreement Scheme

To a large extent the success of the Danish voluntary agreement schemebuildson the fact that theDanishEnergyAgencyhasestablisheda small, specializedanddedicated team to administrate and develop the scheme over the years.

Firstly, while annual control of the agreement companies have beenoutsourced to external, accredited compa-nies within energy management systems (ISO50001), the Danish Energy Agency has had its own resources to negotiate and - if necessary adjust agreements - as well as to review progress reports from the companies etc.

Thisclosecontacttothecompanieshasbeencrucialinordertocontinuouslyunderstandprogressandbarrierstowardssuccessofthescheme,andherebytodevelop/change requirements and recommended focus areas as newlessonshavebeengained.Also,newlegislationorchangesinenergyprices/taxationhaveofteninfluencedthechoicesoftechnical focusareastoaddressbythecompanies.

Secondly, the Danish Energy Agency has continuously sought close dialogue with industry in order to under-stand priorities and new agendas for integrating energy efficiencyactivitieswithcompanylife.Forcertainperi-ods,anindustrialadvisoryboard,withexpertsfromtherelevantindustries,hasbeenformedtoguidetheDanishEnergy Agency in developing the agreement scheme into newareasandwaysofworking.Furthermore,theboard

hasbeenusedtodefinenecessarysupportivemeasuresto stimulate a positive development of the scheme.

Finally, frequent evaluations of the agreement scheme havebeencarriedoutbyindependentparties.Thishasbeendone inordertoassessachievedenergysavings,costefficiencyandnewbarrierstowardscontinuedsuc-cess of the scheme.

From close cooperation with industries and industrial experts, the lesson learnt has been that supportivemeasures targeting the industrial sector should take into consideration that industries usually do not have the time to read and apply comprehensive guidelines, information materials and case stories. The lessons are:

• Industry wants to see immediate economic advantages

• Industrywantstoseeeasilyaccessiblesolutions

• Industry wants to see new technology

Financially supported pilot and demonstration projects hosted by voluntary agreement companies have alsobeenasuccessfulwaytodemonstratenewapproachestoenergyefficiency todecisionmakers, investorsandothers.

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Energy Policy Toolkit 17

FAC

T Factsheet

Supportive Measures

A range of supportivemeasures have beenapplied by the Danish Energy Agency todevelop and secure the success of the Danish Voluntary Agreement Scheme for energy intensive industries. For example:

› Aconsultantschemehasbeendevel-oped in order to support industries with specialist competences within energy efficiency of industrial pro-cesses and utility systems.

› Technical guidelines, fact sheets and case-stories have been promoted.Especially show-cases and demonstra-tion projects have been a successfulway of communication.

› A “toolbox” development projectwas initiated andmanaged by indus-try people aiming at demonstrating tools and methods within energy management and energy performance indicators.

› A range of surveys and assessments have beencarriedout toestablishadatabase forindustrial energy use. For example surveys of energy saving potentials, review of experi-ences from special investigations, and analysis ofpotentialsforuseofrenewableenergy.

The supportive measures have been planned andmanaged/administeredbytheDanishEnergyAgencyto identify new focus areas and to inspire the indus-tries to initiate new stepswithin energy efficiency.However,toalargeextenttheaimhasalsobeentoinspire energy consultants and utility companies to findnewwaysofdevelopingtheirbusiness.

KEY

Key points and recommendations from the Danish case:

› A well-managed voluntary agreement scheme requires a dedicated team for continued follow-up, control and development.

› The agreement scheme should regularly be evaluated to assess achieved results,cost efficiency and barriers towardsimprovingenergyefficiencybyindepend-ent parties.

› The responsible authority should takelead in identifying and developing new approaches, findings and technologies,andtheseshouldbepromotedcontinu-ously via pilot- and demonstration pro-jects if successful.

› Development of an agreement scheme requires close dialogue with industries and industrial experts to understand new agendas, challenges and ways to integrateenergyefficiencyactivitieswithcompany life.

› Surveys and data platforms are crucial to identify energy saving potentials and manage priority of new focus areas.

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Energy Efficiency in Industries18

Systematic focus on energy efficiency

As a part of the agreement with the Danish Energy Agency to implement energy efficient measures,Novozymes has worked systematically with among other energy management after the ISO 50001 stand-ard, energy-conscious planning and energy optimiza-tion at the production facility inKalundborg.Manysolutions have afterwards been used at other pro-duction sites in Denmark and the rest of the world. ThesearenowleadingidentificationofnewenergyefficientmeasureslocallyatsitesoutsideDenmark.

The agreement with the Danish Energy Agency has contributed to generate a substantial focus on thecompany’s energy consumption. For example the agreement implies that the company must definea comprehensive energy strategy and objectiveand also appoint an energy responsible employee.

The company has appointed energy responsi-ble employees for every area of expertise, so thatevery process – fermentation, cleaning, granula-tion and environmental technology – has an energy

responsibleemployeeattached.Thismakesspecializa-tionpossibleandthusgenerates a larger outcome of the work with energy savings.

Novozymes set a new operational energy and CO2 target in 2014. Novozymes aims at reducing CO2 intensity (measured as metric tonnes of CO2 emis-sionspergrossprofit)oftheiroperationsby25%by2020,comparedwitha2014baseline.Thisnewtar-getwasframedinthismannertobeconsistentwithclimate science and the Sectoral DecarbonizationApproach.

Expressing Novozymes’ performance in terms of CO2 intensity (where gross profits indicates thecompany’s added value to the economy) will make their performance easy to communicate, understand andcomparewithsectoralpeers.Thisscience-basedapproachwillenableNovozymestounderstandtheirefficiencyatreducingCO2emissionsacrossbusinesssegments in a homogeneous, consistent and transpar-ent manner.

Case: Novozymes

FACTSABOUTNOVOZYMES

› The company’s energy consumption globally was in

2014; 4188000 GJ = 1,163,000 MWh.

› Thecompanyhas increased itsenergyefficiencywith

43 % from 2005-2014.

› Energy efficiency was improved with 3 percentage

points from 2013-2014.

› The company has reduced its carbon emission by

approximately 56 % from 2005-2014.

› The company is focusing on reducing transportation

e.g.bytransportingmoreproductsatthetime.Thereby

energyconsumptionandcarbonemissioniskeptata

minimum and at the same time lead to cost savings for

the company.

0

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14

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2008 2009 2010 2011 2012 2013 2014

Rev

enue

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llion

s)

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2 em

issi

on (

1000

TN

)

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CO2 emission (1000 TN)

Revenue

Figure 5.The turnover rises while the carbon emissiondecreases.

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Energy Policy Toolkit 19

The production is an important priority

Working with energy savings for example means using LEAN that focusses on reduced energy consumption and minimized waste. Practically this for example meansafocusoncombiningtherightmixtureofrawmaterials and enzyme producing microorganisms in smaller test facilities in order to determine the optimalrecipeforhow,theenzymescangraduallybeproduced large-scale at the same time ensuring most possibleproductperenergyunit.

Waste water is used for energy generation

As a part of the agreement with the Danish Energy Agency and included in the effort to minimize waste from the enzyme production, Novozymes in 2010 committed to study whether the waste water from the enzyme production at the Kalundborg facilitycouldbeusedforenergypurposes.

Earlierthewastewaterhadbeentreatedaerobically.However, this method meant that approximately 50 % of the organic content in the waste water was converted into sludge. Through the study it was documented that the waste water from the enzymeproductioncouldbetreatedinananaerobictreatment facility. The method causes only 10 % of organicmaterialinthewastewatertobeconvertedinto sludge, while the remaining 90 % is transformed into methane; a gas that can be used to generateenergy in the form of electricity and heat.

In 2013, Novozymes completed the implementation oftheanaerobicwastewatertreatmentplantattheirsite in Kalundborg, Denmark. The biogas reactorutilizes wastewater to generate energy. When operating at full capacity, the reactor will cut costs and reduce CO2emissionsbyapproximately20,000tons annually.

Energy savings in production methodsThe actual production of enzymes takes place in large tank installations, which ensures the best capacityutilizationandenergyefficiency.Thecompanyworkswidely to obtain energy saving in both the actualproduction methods and in the energy supplies.

By using energy management and through the energy responsibleemployeesthefollowingstepshavebeenimplemented:

Even more energy savings using enzymes In industrial processes even small amounts of enzymes can replace large amounts of chemicals, energy and water. Product analyses show that 1 kg of Novozymes enzymeonaverageresultsin100kgcarbonreductionat the costumers, while it only costs less than 10 kg carbontoproduce.

Novozymes estimates that customers avoided 60m tons of CO2 emissions in 2014 by applying theproducts, the equivalent of taking approximately 25m cars off the road. This is an increase of 8m tons compared with 2013 and was driven primarily byincreasedsalesandperformanceofsolutionsforbiofuels,householdcareandtextiles.

ACTIONSTHATSAVEDENERGY › Excess heat from gas turbine has been reused to

heat water for cleaning

› Replacement of process equipment using significant

amountofenergywithnewandmoreenergyefficient

process equipment

› Temperature of liquid used for the cleaning of process

equipmenthasbeenoptimized

› Heatrecoveryfromcondensatehadledtosignificant

CO2 and energy savings

› Cooling systems, compressed air system and machin-

ery are optimized and attuned to the demands of the

production

› Operators and technical staff are educated in energy

efficientoperationofthefacilities

› Theenergyconsumptionofeachbatch ismonitored,

sokeyfigurescanbedevelopedatanongoingbasis.

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Energy Efficiency in Industries20

Case: Novo NordiskNovoNordiskisaglobalhealthcarecompanywith90yearsof innovationand leadership indiabetescare.Headquartered in Denmark, Novo Nordisk employs approximately 40,000 employees in 75 countries, and markets its products in more than 180 countries.

In 2005 Novo Nordisk initiated a reinforced focus to optimizetheenergyconsumptionatitsglobalproduc-tionsitesaimingatreducingglobalCO2emissionsbyanabsolute10%belowa2004-baselineby2014.Thetarget equalled a relative reduction of approximately 65%,basedonthecompany’sestimatedgrowth. In2006,NovoNordiskbecameoneofthefirstmem-bersoftheWWFClimateSaversprogramme.

Three levers should ensure the target for production sites:

• CLEAN® (Novo Nordisk version of LEAN).

• SpecificEnergyefficiencyprojects.

• Renewableenergy.

All three levers have contributed to meeting thetarget in 2014 while at the same time sales have grownyearonyear.Thecombinationof traditionalenergy reduction methods and LEAN has resulted in increased energy efficiency and less productionwaste:

• Energyefficiencyandtherelativeenergycon-sumption (kWh/ton product) have improved:

• being able to produce more with lessthrough various process optimisations

• optimising utilities, incl. e.g. ventilation, cooling, illumination.

• Avoiding waste (lost product) by stabilizingprocesses and standards.

TheintegrationofLEANandenergyefficiencywasin 2004 proposed as an element under the Danish voluntary agreement scheme as a strong approach to accelerate improved energy efficiency in morecomplicatedprocessareas–NovoNordiskhasbeenvery successful in making use of LEAN tools in iden-tifying energy savings and still see process (LEAN) optimisationsasthemaindriverofenergyefficiency.

Figure 6. Development in sales and CO2-emissions at Novo Nordisk 2004-2013.

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Energy Policy Toolkit 21

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Energy Efficiency in Industries22

Energyefficiency isnotastrategic focusarea inmostindustries.Therefore requirements topayback-periodsofenergyefficiencyinvestmentsareusuallystrict:Oftenapaybackperiodof1–2yearsisthemaximumaccept-able and investments with longer time horizons areconsidered as risky.

Since 2006 a reinforced focus on energy efficiency inDenmark has included stimulating energy efficiencyinvestments in end-user sectors in Denmark, including theindustrialsector,viaan“EnergyEfficiencyObligationScheme”.The overall objective of the scheme is thatutility companies – for electricity, gas, district heating and oil – are to help increase the savings efforts in all sectors (with some limitations in the transport sector). This scheme is a market oriented approach, where util-itycompaniesviatheenergybillareallowedtorecoverthecostsofthesavingsviathetariffsontheenergybillsof the consumers. The utility companies involved are underanobligationtousethesefundsto identifyandimplement a certain amount of energy savings. The util-ity companies report their savings to the Danish Energy Agencyviatheirbranchorganizationseachyear.Thereare no limitations regarding geographical areas, sector focus or energy sources from which energy savings can bereported.

The scheme was launched in 2006 with an annual target to implement energy savings of 2.95 PJ. This target, which hasbeenraisedgradually,amountsto12.2PJperyearfrom 2015 until 2020, equivalent of approximately 3 % oftotalfinalenergyconsumptioninDenmark(withouttransport).TheEnergyEfficiencyObligationSchemeisbasedonthefollowingprinciples:

• An agreement is entered between the DanishMinister of Energy, Utilities and Climate anddistributioncompaniesrepresentedbythepro-fessionalbodieswithinelectricity,naturalgas,oiland district heating regarding an annual obliga-tion to implement and report energy savings.

• The professional bodies of the utility compa-nies distributes the sector’s target among therespectiveutilities(theenergysavingobligationis in practice proportional to their annual energy sales) and the utilities shall document and the implemented energy savings.

Energy Efficiency Obligation Scheme for Utility Companies

• The utility companies are allowed to financethe costs to implement the savings via an extra cost on the energy prices to all consumers, late 2012 of the magnitude 0.06 Euro/kWh saved on average.

• Eachobligatedutilitycanchooseastrategy forwhich measures to apply and report imple-mented energy savings, for instance:

• To enter partnerships with external con-sultancyandaffiliatedservicecompaniestodeliver projects. These companies can e.g. provide advice at a reduced price or free of charge,providesubsidiesoracombination.

• To operate a subsidy scheme supportingenergyefficiencyinvestmentprojects.

• Each utility company shall annually participate in abenchmarkingofcostsrelatedtooperatethescheme – next to reported savings.

• In 2013 transportation was included as a sector but only a small number of predefined energysaving projects are allowed.

The scheme is anchored at utility companies becausethese are close to consumers and expected to play a broadandstableroleasserviceprovidersinthefutureenergy system. In order to promote cost-effectiveness thecostsoftheindividualutilitycompaniesareavailabletothepublic.

One result of this scheme is that a comprehensive andwidespread energy saving business has developedin Denmark over the past 10 years. In addition, new approaches,partnershipsandfinancingmechanismsarecontinuously developed solely via commercial market mechanisms.

Infigure7onecanseethemostusedtechnologiestoimprovetheefficiencyandthedevelopmentintheuseof these technologies. Itmust be noted that there ismuch innovationwithin energy efficiency inDenmarkand improvements in existing and new technologies butalsohowtheycanbeappliedhappencontinuouslyhence old technologies can be used again and createnew savings.

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Energy Policy Toolkit 23

InannexDyoucanfindalistofDanishcompaniesandorganisationsworkingwithenergyefficiency.

An independent evaluation carried out in 2008 showed that the scheme is considered cost-effective, also when including the increase in costs to consumers.

The main principle is self-control. The utilities are responsibleforverification,documentationandreport-ing and they must have systems for independent quality control and annual audits. The Danish Energy Agency carries out random control of documentation etc. on anannualbasis.

The scheme makes a difference in decreasing Denmark’s total energy use and an econometric analysis from an evaluationmade between 2014 to 2015 showed thattheneteffectinclusivespillovereffectscanbeupto74%inindustries(itisnotmethodicallypossibletomakethe same analysis in households).

Intable3below,plannedandrealizedsavingsforeachutility area for 2012 and 2014 are summarized.

(TJ/year) Annual Target 2010–2012 (TJ)

Reported Saving 2012 (TJ)

Annual Target 2013–2014 (TJ)

Reported Saving 2014 (TJ) Total

Electric utilities 2.900 4.412 4.500 3.212 7.624

Natural gas utilities 1.100 1.357 2.000 1.961 3.318

District heating companies 1.900 2.521 3.700 3.759 6.280

Oil companies 200 233 280 261 494

Total 6.100 8.524 10.480 9.193 17.717

Table3.Reportedsavings(TJ)fromtheEnergyEfficiencyObligationSchemein2012and2014

Figure 7. Development of savings found in different technologies

0,00

500,00

1000,00

1500,00

2000,00

2500,00

2010 2011 2012 2013 2014

Climate envelope Windows BoilersElectric heating – space heating Heating system VentilationLighting Process equipment CoolingCompressed air Pumps Electric motors- and transmission for internal transportLess energy consuming devices Other

Savi

ngs -

TJ

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Energy Efficiency in Industries24

KEY

Figure8.Reportedenergysavings2006–2014brokendownbysector.Theannualsavingstargetsareshownbytheblacklines.

-

2.000

4.000

6.000

8.000

10.000

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14.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Savi

ngs -

TJ

Other

Private enterprise

Public sector

Households

Obligation

Key points and recommendations from the Danish case:

› Consider cost recovery through energy tariffs laid on consumers as a secure and stable way to financeenergy savings.

› A subsidy scheme operated by com-peting independent bodies can besuccessful in stimulating development of an“energy efficiency market” andincreasing cost-efficiency of a subsidyscheme.

› Closeness to consumers and knowl-edge of local conditions are important factors for successful implementation of the energy savings scheme.

› IndependentcontrolandbenchmarkingofaEEOscheme is important in order to minimize admin-istrative costs and secure transparency of cash flows,amongotheraspects.

› Evaluation of a EEO scheme is important in order to assess additionality and adjust rules for how to operate the scheme.

› Closecollaborationbetweentheenergysectorand government in the formulation and imple-mentation of the agreement.

› Continues and targeted information about theagreement is important

› Keeptherulessimpleandbuildthesystemstepbystep.

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Energy Policy Toolkit 25

Key MessagesIndustries account for a fourth of global energy con-sumption and hold a great potential for cost-effective energyefficiencymeasures.

Energyefficiencyhaspositiveeffectsonhumanhealth,the environment, job creation, economic growth andalsoonthecompany’sbottomlineanditscompetitive-ness.Despiteofthesebenefitsenergyefficiencyisnotastrategic focus area in most industries. Therefore there is a need for governmental actions to initiate energy efficiency instruments. These instruments should bedeveloped in collaboration with various stakehold-ers. The Danish case shows that formulating voluntary agreement schemes requires close dialogue with indus-trial experts to understand new agendas, challenges and methodsforintegratingenergyefficiencymeasures.

Increased energy efficiency in the industrial sector isnotaboutquickfixes. It is thereforenecessarywithalong-term perspective and a systematic working effort. A combination of measures with a carrot and stickapproach should be applied to stimulate energy effi-ciency in industries.

Analysesof energy efficiency in production processesand utility systems can be both time-consuming andcomplex.These analyses must therefore be carefullyplanned and certified energy management schemes,such as ISO50001, can serve as foundation to systemize energyefficiencyactivities.

Surveys and platforms for sharing data are essential to getinformationaboutenergysavingspotentialsandcanfurtherbeusedtoprioritizeactivities.Concreteadviceabout solutions and energy savings measures can beboth through broad information campaigns or effortsspecificallytargetedtowardsspecificcompanies.

Responsible authorities should identify andencouragenewmethodsandtechnologiesregularly.Thesecanbepromoted though demonstration projects and the good example should be used to inspire and disseminateknowledgeaboutenergyefficiencymeasures.

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Energy Efficiency in Industries26

Annex AHow policy can drive industrial energy efficiency across the globe

By Julia Reinaud, Policy and Programs Director, Institute for Industrial Productivity

This toolkit comes at a time when having effective energyefficiencypoliciesinplacefortheindustrysectorcouldn’tbemoreimportant.Howgovernmentssetthestage for industry to cut their energy use and reduce their greenhouse gas emissions is a measure of how committed they are to mitigating the threat of climate change.

Ofcourse,energyefficiencypoliciesdomorethanjusthelpmitigateclimatechange.Improvingenergyefficiencybringswith it a host of benefits to human health andthe environment, generates jobs and drives economicgrowth.Andenterprisesstandtogaintoobysavingupto 10-30 % of their annual energy use, and increasing theirproductivity,throughbetterenergymanagement.

Energyefficiency,infact,offersawin-winsituationforall.Andit’sbecauseofthebenefitsthatvirtuallyeverycoun-tryacrosstheworldnowhasenergyefficiencypoliciesinplacespecificallyforindustry,oris intheprocessofdesigning these policies for future implementation.

Denmark’s innovative approach and why it cannot be replicated in all countries

Denmarkhasbeenleadingthewayinenergyefficiencypolicy for many years. Since Denmark introduced energy-saving agreements for large industrial firms in1996, many other countries have followed suit. As early as 1999, Denmark made their energy management sys-tem standard the cornerstone of the agreement scheme. Here again, many countries followed the trend.7

Denmarkstayedaheadbybuildinganinnovative,tailoredpolicy package that matched the unique characteristics of its industry and provided both“carrots and sticks”forindustrytobecomemoreefficient.Policieswerealsotailored for big and small industrial firms, recognizingthat the latter do not have the same resources to besystematicintheirapproachtoenergyefficiency.

Taking stock of these efforts, Denmark has successfully stimulated companies to adopt energy management systems. It has created an enablingmarket for energyefficiency and built the capacity of energy managerpractitioners.

Having studied energy efficiency policies across theglobeingreatdetail,atIIPweareacutelyawarethatthekey tosuccess is forgovernments tounderstandboththe constraints and drivers within industry, like Denmark hasdone.Thisissimplybecausethereisnoonepolicypackage that can work for all countries. Each country has different economic, social and environmental priori-ties–andconsequently,theirpoliciesmustbedifferent.China,forexample,hasenergyefficiencypoliciesthataremandatory and focused on technology, energy manage-ment and performance standards. While China’s policies targetthebiggestindustrialemitters,banksandenergyservice companies also have a role to play in meeting the country’s energy conservation goals. In Australia, the government requires large companies to assess their energy efficiency potential and disclose the results toboth the public and company shareholders.Voluntaryagreements, like those inplace inDenmark,havebeenappliedincountriessuchasIreland,Sweden,theUSandtheNetherlands, and each country provides a specificset of rewards or penalties in case of non-compliance. India, on the other hand, has relied largely on the trading ofenergy-savingcertificates.

AbouttheInstituteforIndustrialProductivity(IIP)

IIP is a non-profit organization that provides com-paniesandgovernmentswithinformationaboutthebest energy efficiency practices to reduce energycostsandprepare fora lowcarbon future. It iden-tifies, analyses and shares best practices, tools andinformationthatcanboosteffortstoreduceindus-trial energy intensity and greenhouse gas emissions while improving productivity.

Website:www.iipnetwork.org

7. SeeIIP’senergymanagementprogramdatabaseformoreexamples:iipnetwork.org/databases/programs

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Energy Policy Toolkit 27

Effective policy packages: removing the barriers and stimulating the drivers

Despite the mix in policy approaches, many countries havebattledwiththesameobstacles in theirattemptsto drive energy efficiency in industry. Many corpora-tionstendtooverestimatetherisksofenergyefficiency,underestimate thebenefits,orbelieve thatotherdriv-ers and factors can deliver a better value propositionto shareholders. These false beliefs have resulted inwidespread reluctance by industry to invest in energyefficiencyinitiatives.

Policies, therefore, have had to focus determinedly on removingthesebarriersanddrivingindustrytoimprovetheir energy performance.

To be effective, government-initiated energy efficiencypoliciesandprogramsmusthaveacombinationofdriv-ers, incentives and support mechanisms at their heart. These include policies that set the minimum bar foreffort amongst industry, like targets and performance standards; supporting and enabling policies such as

financial incentives; and tools and resources that helpindustry to create their own programs and measures to improve energy performance and learn from their peers. OnIIP’sonlinedatabase,wehaveclassifiedandorganizedexamples of these policy types into a “Policy Pyramid” to demonstratetheconnectionsbetweenvariouspolicies,measures and implementation tools.8

As part of this set of policies, governments must also include measures that incentivize companies to continu-ally identify energy efficiencyopportunities. Systematicenergymanagementhasbeenperhapsoneofthemosteffective approaches to capturing these potentials, and both companies and governmentsworldwide are nowmaking great strides in this work. It was the Danish and Irishgovernmentsthatwerethefirsttodrivetheimple-mentation of energy management programs (EnMPs) infirms.EnMPshavesincebeen implementedbymanyother governments at the national and state/provincial level,aswellasbybigcompaniessuchasDuPont,BASF,3M and Dow Chemical. 3M Canada achieved a 15.2 % energy performance improvement over two years becauseofitsEnMS.

8.SeeIIP’spolicydatabasefordetailedinformationonenergyefficiencypoliciesfromaroundtheworld:iipnetwork.org/databases/policy

Effort-defining Polices

Interventionsthatmotivateanddriveenergyefficiency,energy savings or GHG emissions reduction.

Supporting Measures

Carrot-and-stick policies that encourage action and addressoralleviatebarries.

Implementation Toolbox

Guidelines,tools,templatesect.thatsupporttheabovepolicies.

Figure 10.

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Energy Efficiency in Industries28

Is policy doing enough to overcome the climate challenge?

Even though many countries are working hard to increase industrial energyefficiency, there is still roomto do more. International efforts to improve industrial energyefficiencyhavefallenwellshortofthepotential25 % reduction identified by the International EnergyAgency. If it was realized, that potential would mean an 8 %reductioninglobalenergyuseanda10%reductioninglobalCO2 emissions.

Of course, capturing this energy efficiency potentialwithin the industrial sector is challenging. More could beachievedifcountriesweretomandatetheimplemen-tationof energy efficiencymeasures in large industrialfirms, asDenmarkhasdone for those companies thathavejoinedtheagreementsschemeandhaveidentifiedmeasureswithapaybackbelowfouryears.

In the future, alternate and complementary channels should also have an increasingly important role in deliv-eringenergyefficiency.These includethecontributionsof third parties, such as energy providers, multinational companies,multilateralandcommercialbanksandindus-try associations, many of which have already started initi-atinglarge-scaleenergymanagementprograms.Utilities,inparticular,playakeyroleindrivingenergyefficiencyin industry and other sectors. As we’ve seen in the case ofDenmark and in theUS, utilities canhelpdrive theuptake of international standards, such as ISO 50001. Thiscouldhaveevenmoresuccessiflargebuyersusedtheir knowhow to stimulate, or even demand, betterenergy performance from their suppliers.

About Julia Reinaud

Julia leads IIP’s policy activities and programs, managing the Paris team as well as overseeing technology and com-municationprojectsundertakenatthegloballevel.Juliawas previously an energy and climate policy analyst at the International Energy Agency, working on climate, trade and energy policy issues. She has a PhD (with distinction) in Economics and Industrial Organization and a Masters in Corporate Strategy and Industrial Organization from UniversityParisDauphine.(JuliaReinaudisnowSeniorAdvisor for the European Climate Foundation.)

We also see a significant opportunity to scale public-private collaboration across the world. Denmark hasproven that this model works, especially by engagingutilities, industry associations and energy service compa-nies to participate in the national effort.

It’sclearthatalothasbeenachievedinenergyefficiencypolicyaroundtheworldoverthepastdecade,butthenext ten years will perhaps be the most important.While government plays a vital role in driving industry to change, that transformation must also come from industry itself – whether in Denmark or elsewhere. And bydoingso,allpartiesstandtogain–whetherit’spre-serving the environment, strengthening the economy, or improvingthebottom-line.

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Energy Policy Toolkit 29

Annex BExample of Technical Approach

The“Onion”diagram illustratedbelowacts as tool toaddress all relevant areas of energy efficiency for anindustrial company.

Each layer of the diagram addresses specific issuesof a certain kind. Preferably the work-flow should be“inside-out”:

› The “energy service” is the core reason why energyisrequiredforaspecificareaorprocess.Forexample,an“energyservice”canbea“cleanroom” or a required “duration of a cleaning pro-cess (CIP/SIP)” in a pharmaceutical facility. The“energy service” can always be challenged.For example, in case it is necessary to maintain a very high air change rate in the “clean room” –canthereasonswhytheroomisnotcleanbeisolated, reduced or removed?

› The “process”-layer is the type of process selected to achieve the energy service. For example the most commonly used “process” to achieveacleanroomis“filtrationofairusingfil-ters with high air change rate”. Also the “process” selected to achieve a certain “energy service” canbechallenged.Forexample,“filtrationofair”and air circulation with a high level of air change (and thereby high energy consumption) can bereplacedbyventilationprincipleswith lowerairchangeratesorothermoreenergy-efficientsolu-tions while ensuring the air quality necessary for clean rooms.

› The “equipment”-layer deals with the type and efficiencyoftheequipmenttobeinstalledinordertofulfilthe“process”.Numerous aspects canbe optimized in large HVAC systems for cleanrooms. These include the degree of recirculation ofair,thetypeandefficiencyofheatrecovery,theefficiencyof fan installation (Specific FanPower,SFP), etc.

› The “control”-layer deals with the accuracy of control systems required to optimise plant oper-ation in order to minimise energy consumption when loads vary and the demands for the “energy service” change. Variable Speed Drive controlandselectionofbandwidthsfortemperatureandhumiditywillalsobeimportantareastoanalyse

Figure 11. he “Onion” diagram.

whendesigninganenergy-efficientcontrolstrat-egy for HVAC systems, for example. Often, KPIs mustbeestablishedtoensurethatcontrolstrate-gies are operating correctly.

› The “operation and maintenance”-layer must ensure that all utility systems and process equipment have a structured maintenance plan to ensure that the energy efficiency conformstothelevelestablishedatthedesignstage.For example, experience has shown that regular cleaning of heat exchangers is often not imple-mented in many sectors. The result is that energy efficiencyofcarefullydesignedutilitysystemsandheat recovery systems (all with low delta Ts) is significantlyimpairedovertime.

› The “good housekeeping” layer comprises a wide variety of focus areas to ensure that a facil-ityisoperatedforoptimumenergyefficiency.Although housekeeping procedures can comprise basic instructions such as switching off lightswhen leaving an empty room, areas like opera-tor training related to cleaning stations (CIP) and productionprocessesaremuchmoresignificantfactors for the energy-efficient operation of afacility.

Energyservice

Operation andmaintenance

Proces

Equipment

Control

Good housekeeping

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Energy Efficiency in Industries30

Anenergy-savinganalysisbasedonthe“onion”diagramcan often identify significant energy saving potentialsin a facility. Difficult issues will often be raised, whichmight make it necessary to involve various parts of the

An example of the use of the “Onion” diagram for an autoclavesystemisshowninFigure9below.Theauto-clave is designed for the sterilization of small “stents” to be inserted into the human body during surgery.Afterproductionthestentsareplacedinaplasticbagwithsterilewater, and thebag isplacedona tray inan autoclave for heating to 120C for 50 minutes. After removalfromtheautoclave,thebagsaremanuallyputinboxesandsenttohospitalsforuseduringsurgery.

To operate the system a large steam boiler stationdelivers heat to the autoclaves, and a compressed air systemmaintainsastablepressureintheautoclavestopreventthebagsfromexplodingwhenheatedto120°C(abovetheatmosphericboilingpointforwaterat100 °C).

An “Onion” analysis of this design reveals numerous and significant energy saving opportunities that canbe taken into consideration during the planning anddesign stages of a new autoclave system:

Energy service

The energy service (the core reason why energy is used) is obviously designed to“kill” bacteria on thestents, so that they remain sterile when unwrapped during surgery in a hospital. However, good design practice will also address the following issues:

› It does not appear logical that although they are sterilised in the production facility the stents are subsequently packed manually in a non-sterile environment. Therefore it should not benecessarytosterilisetheplasticbagsintheproductionprocesswhen,inreality,thebagsarere-sterilised during surgery?

› Furthermore, it does not appear logical that sterile water is used when filling the bagsbecauseinrealitythiswaterissterilized3timeswhen also taking the sterilisation in hospital into account.

organization. For instance, the Quality Department often hassignificant influenceonproductionparametersandproduct quality.

8 bar steam

Sterilisation of products at 100 % humidity and 120° Cfor 50 min.

Trays with productsin bags with sterile water

6 compressors of each 150 kW delivering 8.5 bar compressed air

Compressed airreciever at 8.5 bar

10° C water

Figure 12. Autoclave for sterilisation of healthcare products

CASE

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Energy Policy Toolkit 31

Process

The product developers and the clients in this exam-ple have chosen a process in which the stents are sterilized by thermal treatment in a bag filled withsterile water. Nonetheless, alternative processes can beconsidered:

› Forexample,itmightbepossibletouseotherandpossiblymoreenergy-efficientsterilisationmethods such as chemical sterilisation, micro-waves,X-rays, vacuumpacked tubes, etc.Thisis a “delicate” question to raise during a design process,butneverthelesscrucialwhenevaluat-ingtheefficiencyoftheoverallprocessfromanenergy point of view.

Equipment

Oncethedecisionhasbeenmadetousethermalster-ilisation as the preferred process, alternative methods couldbeevaluated.Alternativemethodscouldbe:

› Hot water or warm air system. Hot water sterilisation is widely used in the food industry; however, mostly at temperatures below 100°C, which means that systems do not have to bepressurized.Theadvantageof ahotwatersolution is that the heat from sterilisation can be recovered relatively easily.This allows theheat supplied for one batch to be recoveredandused for thenextbatch, therebykeepingthermal energy consumption at an absoluteminimum.This is not possible with a steam-based system,whichmeans that energy con-sumptionwillbeatleast50%higher.

Control

Thecontroloftheprocessaimstoensurethatallbagsreach their target temperature of 120 °C for a period of 3 minutes or more. Digital tags are placed on each traysotemperaturescanbeloggedandproductscanbe traced after production. Nonetheless, importantprocessparameterscanbeconsidered:

› The sterilisation time of 50 minutes is very high when compared to the required 3 minutes. For that reason it is realistic to ask whether theprocessdesignandcontrolsystemcanbeimproved. Actually, a pressurized hot water sys-temasproposedabovewouldensureabetterheat transfer. This would allow for a shorter process time.

› The compressed air pressure of 8½ bars issignificantlyhigherthantheboilingpressure intheplasticbagsofapproximately2.1bars.Thisresultsinveryhighpowerconsumptionbythecompressed air plant. Power consumption bythecompressedair systemcanbereducedbymore than 70 % if the system is designed to operate at a pressure closer to what is needed bytheprocess.Anotherbenefitisthatamuchsmaller compressor station could be installed,therebyreducingtheinvestmentcosts.

Operation and Maintenance

The main questions related to operation and mainte-nance of the system is how leaks of air and heat can beavoidedandhowtheidleloadofcompressorsandboilerscanbekeptataminimum.

› It is essential that the system is delivered with ready-to-use maintenance instructions to cover areas such as leak detection etc. Enquiries shouldalsobemadetoseewhethermonitor-ing systems (e.g. air meters, steam meters, etc.) canbeused toprovide informationaboutkeyaspects of the process.

Good Housekeeping

Recommendations regarding “good housekeeping” are usuallymoregeneric.However,sincetheseofteninflu-ence operator behaviour, they can have a significantimpactonenergyefficiency.

› In the autoclave system, several aspects relat-ing to operator behaviour can be questioned,including: how are autoclaves managed (filling,venting, cleaning), etc.?

Manyofthequestionsabovemightbecomplicatedortime-consuming to answer – and answers might neces-sitate involvement of different parts of the organization (for example the Quality Assurance department, pro-cess specialists, manufactures, costumers).

But it is the experience that the “onion” diagram is a strong and systematic methodology covering all rel-evant aspects of the energy saving potentials; even in complicated processes and utility systems.

Its methodology is also highly recommended when designing new industrial facilities. Numerous demon-strationprojectshavebeen implemented in this areain Denmark.

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Energy Efficiency in Industries32

Annex CISO50001 Fundamentals

The ISO50001-standard has been adopted worldwideand is thoroughly described in standards in each indi-vidual country. Infigure13,theoverallactivitiescoveredbyeachphaseof thecyclic“plan-do-check-act”-energyefficiencyworkinanorganizationareoutlined.

The standard describes which procedures and workprinciples to follow. They are not precise in terms of how to carry out, for instance, an energy review; or how to establishtherightenergyperformanceindicators(EnPIs)to monitor energy consumption.

According to Danish experiences, a standard like ISO50001willnotbeenoughtosecurequalityofenergyefficiencyworkinalargeenergy-intensiveindustry.Thestandard should therefore be supplemented by guide-lines and requirements for which actions to take.

In the Danish voluntary agreement scheme, the Danish Energy Agency set as a key-requirement to implement workingprinciplesfromISO50001,butnexttothat,the

agreement scheme sets additional requirements for how to carry out various tasks; for example:

› Energyusageshouldbepresentedinbreakdownsofacertainlevelofdetail(byend-use).

› Energy saving projects are to be identified by savingpotentialandpaybackperiods.

› All energy saving investment projects with pay-backlessthan4yearsmustbeimplemented.

› Complex energy saving analysis must be nomi-nated as “special investigations” and carefully planned.

› Newinvestmentsshouldbeplanned followingaguidelineon“EnergyEfficientDesign”.

The accredited companies verifying the agreements in eachindividualcaseevaluatebothISO50001proceduresandprogressofthespecificrequirementslistedabove.

Responsibility of top management Energy policyManagement representative Energy reviewObjectives and action plans

Implementatuin and realizationCommunication Training AwarenessOperational Control

Management reviewNew strategic goalsOptimization

Monitoring Analysis Corrective Action Preventive Action Internal audit

ACT PLAN

CHECK DO

Figure13.Thecyclic“plan-do-check-act”-energyefficiencyworkinanorganization.

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Energy Policy Toolkit 33

Energy Management “light”

Itmustbeemphasizedthatenergymanagementaccord-ing to ISO50001 sets quite comprehensive requirements for procedures and evaluation forms. Therefore such an approach isnotsuitable forallorganizations.Especiallycompanies in the SME segment have relatively few com-petences in such areas and should apply more simple approaches.

In view of this, the Danish Energy Agency together with Danish Standards has prepared an energy management “light”guideforSMEs,wherebasicprinciplesandactivi-tiesaredescribed(inDanish).Inadditiontothisoverallguide, more general and shorter guides, addressing SME in specific sectors, e.g. the hospital sector have beendeveloped.

› In that respect, the energy management “light” systemisnotacertifiedscheme,butrecommendsan organization to address the cornerstones of an efficientenergymanagementsystem,i.e.:

› Todefineatargetfortheenergysavingeffort.

› To organize the right team for the effort.

› To map energy consumption.

› Toelaborateanactionplan.

› To establish relevant EnPIs to monitor energyconsumption.

› To let management evaluate progress regularly.

› Toestablishsimpleannualprocedurestofollow.

Besides SMEs, the energy management “light” principles hasbeenadoptedbymanyenergyusers inwidelydif-ferentsectors.Theseincludemunicipalitybuildings,largeofficesandhospitals,amongothers.

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Energy Efficiency in Industries34

Annex DDanish companies and organisations within energy efficiency

EnergyefficiencyhasbeenontheagendainDenmarkthelast fourdecades.Thestrongfocusonusingenergymoreefficientlyhasalsofosteredmanyhighlyskilledcompaniesandorganisationswithinthesector.StateofGreenwhichisyour online entry point for all relevant information on green solutions in Denmark and around the world, have gathered alistofthesecompaniesororganisationsworkingwithinenergyefficiency.Inthelinkafterthenameyoucanexploresolutions,learnaboutproductsandconnectwithcompaniesandorganisations.

ABB(http://stateofgreen.com/en/profiles/abb)

AKJINVENTIONS(http://stateofgreen.com/en/profiles/akj-inventions)

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DANISHTECHNOLOGICALINSTITUTE(http://state-ofgreen.com/en/profiles/danish-technological-institute)

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Energy Policy Toolkit 35

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TheDanishEnergyAgencyisresponsibleforhandlingallnational and international agreements and tasks linked to the production, supply and consumption of energy in Denmark. The Agency also deals with efforts to reduce emissions of greenhouse gases, and oversees the legal andpoliticalframeworksforreliable,affordableandcleansupply of energy in Denmark.

The Danish EnergyAgency’s Global Cooperation col-laborates with China to combine sustainable futureenergy supplies with economic growth. The initiative is based on four decades of Danish experience withrenewableenergyandenergyefficiency,transformingtheenergysectorstodeployincreasinglymorelow-carbontechnologies.

The agency is part of the Danish Ministry of Energy, UtilitiesandClimate.

Read more at: www.ens.dk/en/policy/Global-cooperation

Secondversion,published2015/ISBN978-87-93180-07-9

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