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Section 12L Roadshow Case Study September 2016 1

Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa [email protected] 082 789 8915 Pieter de Villiers [email protected]

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Page 1: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Section 12L

Roadshow

Case Study

September 20161

Page 2: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

• Who we are

• Project Case Study: Energy User 1

• What is important for you to know

• Questions

September 2016

Agenda

2

Page 3: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

September 2016

Cova Advisory and Associates

3

• We are an advisory consulting firm specialising in Government Grants and Incentives.

• We also advise on matters related to green finance, as well as carbon and energy policies and strategies.

• We are a SANAS Accredited Measurement and Verification Inspection Body (EEMV0007)

• Cova has secured over R1 billion in after tax grants and incentives for clients in the last three years.

Tumelo Chipfupa

Director: Energy Team

Pieter de Villiers

Senior Energy Manager

Page 4: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

September 2016

Case Study: Energy User 1

4

• Project: Increasing Manufacturing Capacity of

the Plant (expansion project)

• Two existing manufacturing lines

• The project includes the addition of a third

manufacturing line

• The new (third) manufacturing line includes

Installation of modern energy efficient equipment

Page 5: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

5

Utilities

Machine 1

Machine 2

Machine 3

Manufacturing Line 2

Manufacturing Line 1

New Manufacturing Line 3

• Main energy sources used:

• Natural Gas

• Electricity

• Largest energy source is natural gas

• The biggest energy consumers on the manufacturing lines is

machine 1 and 2.

• Machine 1 and 2 consume more than 75% of the total energy

consumption.

• Metering:

• Natural gas – hourly data available

• Machine 1 and 2

• Whole site

• Electricity consumption – half-hourly data available

• Machine 1 and 2

• Whole Site

• No separate metering on in rest of manufacturing lines

and other plant areas

Page 6: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

6

Utilities

Machine 1

Machine 2

• Measurement Boundary:

• The options for the measurement boundaries include:

• Whole Facility; or

• Retrofit Isolation

• A retrofit isolation approach with key parameter measurement

was chosen as measurement boundary option.

• Energy baseline models developed for each Machine separately

• Energy governing factors for Machine 1 and Machine 2 were

different

• Machines 1 and 2 account for over 75% of the overall site

energy consumption

• Robust baselines for Machine 1 and 2 is important

• Energy baseline model was developed for the remainder of the

site

Natural Gas

Electricity

Page 7: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

7

Machine 1Raw Materials Production Output

Natural Gas

Additional Electricity

Possible Energy Governing Factors

• Production

• Moisture content in raw materials

• Ambient temperature

• Machine age / Insulation

• Product changes

• Each Machine’s energy drivers are Machine specific

Ambient Temperature (°C)

Moisture Content

Page 8: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Machine 1

8

Machine 1: Multivariable Regression Analysis

Regression Statistics

R Square 0,92

Adjusted R Square 0,92

Standard Error 39,39

Observations 361

Significance F 2,36E-189

Coefficients P-Value

Intercept 976,54 2,76E-21

Mix of inputs -5,52 7,69E-73

Production 4,00 5,29E-75

Change in Product Type -17,51 0,002388

Machine Age -0,18 1,86E-08

Ambient Temperature -1,01 0,133

Humidity 0,01 0,922

Precipitation -0,33 0,40

Page 9: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Machine 2

9

Machine 2: Multivariable Regression Analysis

Regression Statistics Baseline

R Square 0,79

Adjusted R Square 0,78

Standard Error 40,48

Observations 357

Significance F 2,55E-111

Coefficients P-Value

Intercept 837,92 1,40E-22

Mix of Inputs -4,74 4,68E-16

Production 2,41 3,83E-22

Change in Product Type -4,85 0,30

Machine Age 0,08 0,02

Ambient Temperature -0,15 0,80

Humidity 0,09 0,51

Precipitation -0,79 0,04

Page 10: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

10

Machine 1 Model Fit

1 000

1 100

1 200

1 300

1 400

1 500

1 600

1 700

01-May-12 01-Jun-12 01-Jul-12 01-Aug-12 01-Sep-12 01-Oct-12 01-Nov-12 01-Dec-12 01-Jan-13 01-Feb-13 01-Mar-13 01-Apr-13

En

erg

y C

on

su

mp

tio

n

(GJ/d

ay)

Actual Energy Consumption (GJ/day) Calculated Energy Consumption (GJ/day)

1 200

1 300

1 400

1 500

1 600

1 700

1 800

01-May-12 01-Jun-12 01-Jul-12 01-Aug-12 01-Sep-12 01-Oct-12 01-Nov-12 01-Dec-12 01-Jan-13 01-Feb-13 01-Mar-13 01-Apr-13

En

erg

y C

on

su

mp

tio

n (

GJ/d

ay)

Actual Energy Consumption (GJ/day) Calculated Energy Consumption (GJ/day)

Machine 2 Model Fit

Page 11: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

11

Rest of the Site: Production was not a good energy driver for the remainder of the site

y = -0.1433x + 963.31R² = 0.0283

0

200

400

600

800

1 000

1 200

0 100 200 300 400 500 600 700

Site E

nerg

y C

onsum

ption (

exclu

din

g

Machin

es)

(GJ/d

ay)

Total Production (tonnes/day)

Electricity consumption for the remainder of

the site was assumed to be constant

Page 12: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

Case Study: Energy User 1

12

600

800

1 000

1 200

1 400

1 600

1 800

Ene

rgy C

onsum

ption

(G

J/d

ay)

Project Energy Consumption Average Baseline Energy Consumption

In order to determine the Energy Savings – Average Baseline of Machine 1 and Machine 2 is compared with the

new machine, Machine 3

Machine 3 Energy

Consumption

Average Machine 1 and Machine 2 Energy

Consumption

Page 13: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

September 2016

Case Study: Energy User 1

13

• Key challenges with the project:

• The energy savings expected was difficult to achieve, although the new equipment was more

energy efficient.

• The market demand for the product changed. When making a different product (due to the different

raw material mix), the new equipment did not operate as optimally.

• During the commissioning, the plant experienced problems. Under the conditions again, the new

equipment did not operate optimally.

Page 14: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

September 2016

What is important for you to know?

14

• The quality of energy data is very important for building an energy baseline equation and determining

energy savings.

• Direct or online metering is more accurate.

• The more energy metering for different sections of your facility or equipment, the better.

• The more granular the data, the better (i.e. daily is better than yearly).

• Annual calibration of metering equipment is a requirement for Section 12L.

Page 15: Section 12L Roadshow Case Study - sanedi.org.za€¦ · September 2016 Questions? 15 Tumelo Chipfupa tchipfupa@cova-advisory.co.za 082 789 8915 Pieter de Villiers pdevilliers@cova-advisory.co.za

September 2016

Questions?

15

Tumelo Chipfupa

[email protected]

082 789 8915

Pieter de Villiers

[email protected]

082 614 0642

www.cova-advisory.co.za

Contact Us