Energy
management is a hot topic these days, and that should come as no surprise. With
energy costs rising dramatically and environmental regulations tightening, the
pressure for industrial companies to reduce energy consumption is also
increasing. The cement industry is especially sensitive because it is one of the
major energy consumers in the
In many
cement plants, energy amounts to as much as 50 percent of variable costs. But California Portland
Cement Company is standing firm on reducing its energy costs and
lowering process emissions by implementing a corporate energy management
program. Among the many benefits so far, the program has saved the company a
total of $3 million.
For more than
a century, California Portland Cement has been supplying customers throughout
the western
"Effectively
managing energy is an important part of our day-to-day operations," says chief
executive officer Jim Repman. "As an EPA Energy Star partner, we place a high
value on the environmental and fiscal savings gained from superior energy
management."
This
corporate-wide philosophy is the foundation that guides the other important
elements described below.
At the
outset, California Portland Cement assigned an energy manager and formed an
energy management team consisting of plant and corporate personnel. The team
represents several different departments and functional areas, including
engineering, operations, maintenance, accounting, executive management and
procurement.
In addition,
the company enlisted assistance from the Energy Star program in developing a
plan and putting the team together. The formal plan outlined goals, methods and
specific energy savings target areas. Saving money was the motivating factor for
the plan, and the team realized that even a 5 percent improvement could result
in millions of dollars in energy savings each year. However, they also saw that
this effort could save significant amounts of process
emissions.
Now that the
program is under way, the corporate energy team meets every two months and
rotates to different facilities throughout the company. This helps them target
savings opportunities at the facilities and allows local plant employees to
participate. In addition, each major facility or division has its own local team
to ensure that initiatives are implemented.
California
Portland Cement also created a process energy team made up of process engineers
who conduct periodic energy assessments on specific plant areas throughout the
company. They take measurements, review operational data, calibrate instruments
and write reports describing opportunities. The process energy team also brings
in consultants and uses resources such as those available through the U.S.
Department of Energy's Industrial Technologies Program (ITP) to conduct
energy audits.
California
Portland Cement has found that support and cooperation throughout the company,
from plant employees to executive management, are essential to the effective
implementation of the energy program. One of the sustaining elements is the
commitment of its senior management. For example, the senior vice president of
operations and the vice president of engineering participate in all corporate
energy meetings. Through their participation, the energy program gains
credibility and reinforces the need to meet company efficiency
goals.
Because of
the corporate emphasis on energy management, it is a regular topic at quarterly
cost review meetings and frequently on the agenda at executive, staff and board
meetings. Corporate managers also understand the need to recognize employees for
their contributions to the program's success. To bolster buy-in among plant
employees, California Portland Cement has initiated a pilot bonus program at one
of its plants. Employees receive incentive bonuses tied to the plant's energy
performance. And throughout the company, employees are recognized at awards
luncheons and other events attended by the CEO.
Led by the
firm belief that "you can't manage what you don't measure," California Portland
Cement has put in place data-archiving systems to monitor energy performance at
the manufacturing plants. The process energy team measures power consumption and
fuel usage per unit of production at each phase of production; this data is
reviewed at corporate energy and quarterly cost review
meetings.
The company
compares performance among facilities and also benchmarks against comparable
plants in the industry. To do this, the process energy team uses software
analysis tools such as Energy Star's Energy Performance Indicator (EPI)
benchmarking software, ITP's MotorMaster+ and Process Heating Assessment and Survey Tool (PHAST)
from ITP's suite of BestPractices tools.
California
Portland Cement has implemented several initiatives designed to boost
performance in specific areas of its operation. The initiatives give the company
a systematic approach to managing energy use and encourage best practices. The
key initiatives include these:
As its energy
management program evolves, California Portland Cement is finding many ways to
uncover savings and then implement energy projects. For example, in 2006, the
Mojave,
To help make
projects more feasible, California Portland Cement also takes advantage of
utility rebates. In the past two years, the company has qualified for more than
$1.3 million dollars in rebates and has used these funds to implement energy
efficiency retrofits and process improvements such as installing a
state-of-the-art vertical grinding mill and a new, high-efficiency separator on
an existing ball grinding mill at the Mojave plant.
Having a
formal program allows California Portland Cement to focus on specific energy
opportunities and take advantage of the various resources available. In just
three years, energy management practices have been institutionalized and are now
part of standard operations.
As a result
of these efforts, California Portland Cement has already received several local,
state and national awards, including Energy Star's Partner of the Year Award in
2005 and 2006. The company is also reaping rewards in terms of savings; so far,
they amount to more than $3 million in energy costs savings and a significant
reduction in process emissions since the energy program was formed. Among the
best rewards, however, is the sense of pride among employees that they have
accomplished something that improves not only the bottom line but the
environment, as well.
Steve
Coppinger has been with California Portland Cement Company for 20 years and is
the company’s chief electrical engineer. He leads the corporate energy
management program and was instrumental in starting it in 2003. Steve is a
licensed professional engineer in the State of
This article appeared in the Summer 2006 issue of Energy Matters, a publication from the United States Department of Energy. For more information, visit www.eere.energy.gov.