energyEnergy Swiss Confederation

Federal Department of Economic Affairs FDEA

State Secretariat for Economic Affairs SECO

Results and impact in the Automotive

Sector

www.iee-sa.co.za

Industrial Energy Efficiency Project in South Africa

Overview

• IntroductiontotheIEEProject.............................2

• TheSouthAfricanautomotivesector:

Asnapshot.............................................................4

• TheIEEProject’sautomotive

sectorjourney........................................................ 8

Equipping industry for energy efficiency (IEE training)........................................12

Casestudy:Toyota–leadingtheway..................13

Energy efficiency boost with international standard certification (ISO 50001)..............................................................16

Casestudies: ISO 50001 certified companies:

• Tenneco...............................................................18

• JohnsonMattheySouthAfrica.......................... 20

Other sector energy efficiency case studies:

• FeltexAutomotive...............................................22

• ToyotaBoshokuSA..............................................28

Energy efficiency and small, medium and micro enterprises..........................................30

CasestudiesinSMEs:

• Techniplate..........................................................32

• PrecisionPress......................................................34

Contents

1

2

Toachievethis,theprojectemploysaholisticapproachbasedonanumberofkeyelements,orcomponents:

• Encouragingthecreationofanenabling policy environment;

• Supportingtheadoptionandpromotionofenergy management standards(ISO50001);

• Building local capacitytoimplementEnMSandESOinindustrialenterprises,throughspecialisedtrainingcoursesandextensivein-plantimplementationsupport;and

• Demonstrating the potential and impactofIEEonthebottomlineandsustainabilityofabusinessthroughcasestudies,demonstrationplantsandawareness-raising.

ServicestoindustryTheIEEProjectcurrentlysupportsSouthAfricanindustrythroughasubsidisedservicemodel.ParticipationintheProjectisatnocosttocompanies.

EnergyManagementSystem(EnMS)implementationTheIEEProjectassistscompaniesindevelopingandimplementinganEnMSinlinewiththeSANS/ISO50001EnergyManagementStandard,andsupportcompanies’effortstoachieveISO50001certification.

Implementationtakesplaceoveraperiodof9to12monthsandcaneitherbefacilitatedinternallybythecompanywiththesupportoftheIEEProject,orbyanIEEProjectEnMSexpert,withthecompanyagreeingtoserveasdemonstrationprojecttoshowcasethebenefitsofEnMS.

EnergySystemsOptimisation(ESO)implementationTheIEEProjectequipscompaniestosystematicallytargetselectedsystemswithintheirprocessingfacilitiesandinterrogatetheirperformanceandeffectiveness.Currentlysupportisavailablefortheoptimisationoffiveenergyintensivesystems,namelysteam,compressedair,fans,pumpsandelectricmotors.

OverviewTheIEEProjectwaslaunchedin2010andaimstocontributetothesustainable

transformationofindustrialenergyusagepracticesinSouthAfrica,therebyreducing

carbon-dioxideemissionsandpressureonenergyresources,whilstdemonstratingthe

impactofenergyefficiencypracticesintermsofmonetaryandenvironmentalbenefits.

Since2011,theIndustrialEnergyEfficiencyProject(IEEProject)inSouthAfricahasassistedindustrytosave over R 344 million inenergysavingsthroughtheimplementationofEnergy Management Systems (EnMS)andEnergy Systems Optimisation (ESO)in54 industryplants.

3

ExpertskillsdevelopmenttomaximiseenergyefficiencyToensurethedevelopmentofskillsneededtosustainenergyefficiencyinindustry,trainingcourseshavebeendevelopedtotrainprofessionalsinEnMSandESOinavarietyofindustrialsystems.

Trainingispresentedattwolevels:atechnicaladvancedlevelofferedinatwo-dayworkshopformat,andexpertleveltraining,whichiscompletedoveraperiodofmonthsandincludestheoreticalandin-planttraining,andanactualworkplaceimplementationcomponent.MoredetailsontheIEEprojecttrainingisprovidedonpage12.

PrivatesectorparticipationopportunitiesInadditiontotheservicesalreadymentioned,industrialenterprisescanparticipateandbenefitfromtheIEEProjectbybecominga:

HOSt OR canDIDatE plantByallowingexpertleveltrainingattheirplants,companiesareenabledtoidentifyenergysavingopportunities.InthecaseofESO,participatingcompaniesreceiveasystemsassessmentreport,compiledbyUNIDO/NCPC-SAexpertsatnocharge.Theyalsoqualifyfortheenrolmentoftwodelegatesintheadvancedtrainingprogrammeandoneintheexpert-levelprogrammeatnocharge.

DEMOnStRatIOn plantCompaniesthatchoosetoimplementsomeoralloftherecommendationsfromtheassessmentreporthavetheopportunitytovolunteerasademonstrationplant.TheIEEProjectwillpartnerwiththecompanytodevelopacasestudyontheimplementationprocessandtheenergysavingsresultingfromit.Thecasestudywillbeusedonnationalandinternationalcommunicationplatforms,increasingthevisibilityofthecompany.

component Optimisation vs. Systems OptimisationThetraditionalcomponentsapproach–analysingtheperformanceofvariouspartsor

componentsofasystemandaddressinghowtomaketheseworkbetter–typicallyresults

inanenergysavingofbetween2%and5%,whereasevidenceindicatesthatasystems

optimisationapproach–lookingathowanentiregroupofpartsofcomponentsfunctions

togetherandhowchangingonewillimpactonothersandthesystemasawhole–

achievessavingsof10%-50%.

Did you know?

4

TrendsGlobaltrendsshowthattheautomotiveindustryhasimproved.Annualproductionhasescalatedandprofitsforglobaloriginalequipmentmanufacturers(OEMs)areexpectedtoincrease(The South African Automotive Industry: An overview, B&M Analysts, August 2014).Whilesignsofrecoveryfromtheeconomiccrisisareencouraging,somechallengesstillexist.Theseincluderegulatorypressuresaroundemissionsandsafety,andincreasingcompetitionfromemergingmarkets.

SouthAfricantrendsshowthatannualsaleshaveescalatedsince2012.Importsanddomestically

producedvehiclescontinuedtorecoverin2013butsalesarefarbelowthosereportedfor2006.

Whileexportsremainthefocuswithproductionoutputincreasingfrom28%in2005toanestimatedvalueof54%in2013,newvehicleexportsinNovember2013showedadeclineof4.8%incomparisontothesameperiodin2012,duetoindustrystrikes.

Ingeneral,theSouthAfricanautomotiveindustryshowedmodestgrowthin2013andtheprojectedincreaseinexportsalesfor2014bodeswellforapositivecontributiontothecountry’seconomy.

a snapshotDevelopingcountries,increasinglyintegratedintotheglobalautomotivevalue

chainofglobalrole-players,notonlyhavetocopeandincorporatethedirectimpact

ofthemajorglobaltrendsontheiroperations,butalsohavetocompetewitheach

otherforsourcingandoutsourcingopportunities.

“Itiswithinthisfastchangingenvironmentthatmanydevelopingcountries,suchas

SouthAfrica,areseekingtocreateforthemselvesaroleasproducerofvehiclesand

automotivecomponents.TheSouthAfricaautomotiveindustrypossessesunique

qualitiesandanaturalabilitytoaddvaluetoglobalstrategiesofparentcompanies

andmultinationals.SouthAfrica’sattractivenessasaninvestmentdestinationofchoice

andproductionbaseforproductstobeexportedtoglobalmarketsisincreasing.

automotive Export Manual 2013

the South african automotive sector:

5

AutomotivesectorsignificantThepotentialofthesectortocontributepositivelytotheSouthAfricaneconomyhasbeenrecognisedbygovernmentinvariousforaandhasledtoanumberofinitiativessettostrengthenthesector.

ThefirstIndustrialPolicyActionPlan(IPAP)launchedin2007/2008,identifiedtheautomotiveproductionsectorasacriticalsegmentoftheeconomy.Contributingsome7%toSouthAfrica’sGDPandbeingresponsiblefornearly12%ofthecountry’smanufacturingexports,thesectoralsoholdsgreatpotentialforjobcreation.

AccordingtotheAutomotiveExportManual2013(producedbytheAutomotiveIndustryExportCouncil(AIEC)),some65000peopleareemployedinthecomponentmanufacturingindustry,28000aredirectlyemployedinautomotivemanufacturingand200000peopleinretailandaftermarketactivities.

Focusinginitialeffortsontheimplementationofsectoralplansforautomotivesandcomponents,IPAPundertookthedesignandimplementationofanindustrialupgradingprogramme,revisedindustrialfinancingmechanisms,reducedinputcoststhroughtheimplementationofacompetitionpolicy,andreviewedimportdutiesonintermediategoods.TheautomotiveindustryremainedakeyfocussectorinIPAP2(2010/11–2012/13),whichaddressedthescalingupofsector-specificinterventions.

EvenpriortoIPAPandsimilarinitiatives,thepotentialoftheindustryandtheneedforittoremaincompetitiveinordertosurvivegloballywererecognisedinapartnershipbetweenUNIDOandtheAutomotiveIndustryDevelopmentCentre(AIDC)intheearly2000s.

KnownastheTirisanoClusterProgramme,theUNIDO-AIDCpartnershipaimedtoraiseoperatingefficiencyatplantlevel.Focusareasincludedreducingwasteanddowntime,improvingworkersafetyandstrengtheningteamworkamongsupervisorsandshopfloorworkers.

OneoftheadditionalmodulesaddedtotheTirisanoClusterprogrammeconcernedcleanerproduction.CleanerproductiontrainingisprovidedbytheNationalCleanerProductionCentretohelpcompaniesidentifywaystosavecostsinenergyandwater,specifically.

TheSouthAfricangovernmenthasfurthercorroboratedtheimportanceofthesectorthroughanumberofpolicydocumentsandprogrammes,includingtheMotorIndustryDevelopmentProgramme.ThiswassucceededbytheAutomotiveProductionandDevelopmentProgrammein2013tofurtherstimulatelocalproductionto1.2millionvehiclesayearby2020aswellasincreasinglocalcontent.

IncreasingcompetitivenessGauteng,theEasternCapeandKwaZulu-Natalarehometothebulkofthecountry’svehiclemanufacturingactivitieswithactivitiestakingoffintheWesternCapeandNorthWestprovincesaswell.Thenumberofexportdestinationsforvehiclesandcomponentsisincreasing.AccordingtotheAIEC,thenumberofexportdestinationsforvaluesinexcessofR1millionhasincreasedfrom62in1995to130in2011andto152in2012.

Thegreeneconomyhasbeenasubjectofdiscussionforsomeyearsandalsofeaturedstronglyatthe2011SouthAfricanAutomotiveWeek,heldinEastLondon.Hereitwassaidthat“SouthAfricanautomotivemanufacturershavetoadjusttothegreeneconomyiftheyaretosurvive.”

WithroleplayerssuchasUNIDOandtheNCPC,throughtheIndustrialEnergyEfficiencyProject,andthecommitmentfromvehicleandcomponentmanufacturers,someinroads–withsignificantfinancialandothersavings–havealreadybeenmadeinsupportofagreeneconomy.

6

GDPcontribution

SouthAfrica’srankingin

globalvehicleproduction

CapitalexpenditurebyOEMsfrom1995to2012

RegisteredvehiclesatendofDecember2012

Registeredvehiclesin2012comprisedpassengercars

7% R48,6 billion

10,61 million

6,11 million

25th

(source: automotive Export Manual 2013)in numbers

the automotive industry

South African industry trends – vehicle production for domestic and export markets

Source: NAAMSA, 2013

Domesticallyproducedvehiclesfortheexportmarket

Exportsas%oftotaldomesticproduction

Domesticallyproducedvehiclesforthelocalmarket

700000

600000

500000

400000

300000

200000

100000

0

70%

60%

50%

40%

30%

20%

10%

0%

Uni

ts

perc

ent

00 01 02 03 04 05 06 07 08 09 10 11 12 13* 14* 15*

Year

7

Vehiclebuilders

Vehiclecomponentmanufacturers

newcardealerships

Specialistrepairers

Garagesandfuelstations(withmostalsoofferingservice

workshops)

167

292

1 374

1 898

4 600Partsdealers

2 907

South African industry trends – South African OEM industry profile for 2013

Cost competitiveness of South African component producers

Automotive component producers: Input costs

Sa thailand UK

2.40%

2.36%

2.16%

12.45%

3.27%

1.36%

1.83%

6.02%

2.88%

5.89%

3.70%

10.68%

Rental

Electricity

Water

Employment

25%

20%

15%

10%

5%

0%

% o

f Sa

les

19.37%

12.49%

23.16%

1,042.87

12%

929.14

0%

1,014.45

9%

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

R1,060

R1,040

R1,020

R1,000

R980

R960

R940

R920

R900

R880

R860Sa thailand UK

OutputPrice

Disadvantage

R1,014

9%R929

0%

R1,043

12%

Va

lue

perc

ent

ag

e

Circle size represents vehicle

sales volume (units)

100%

80%

60%

40%

20%

0%

-20%

Exp

ort

s (%

)

20,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

OEMproduction Vol

Export %Sales Vol

tSa151,23152.97%122,801

VWSa106,61048.85%110,779

BMW66,08782.01%27,671

FMcSa57,03260.49%64,350

nSa46,23531.64%59,557GMSa

39,4063.79%58,724

MBSa47,18976.77%28,453

production Volume (Units)

40,000

8

TheIndustrialEnergyEfficiency(IEE)Project’sjourneyintheautomotivesectorstarted

inlate2010whenNationalCleanerProductionCentrestaffandUNIDOengagedwith

automotivecompaniestoparticipateintheheavilysubsidisedIEEProject.

automotive journey the IEE project’s

Energy savings reported by participating companies in the automotive sector (as at March 2014)

company kWh Savings Rand Savings

tonnes cO2

*

Energy Systems

MercedesBenz 2800000 R1540000 2682 Compressedairsystem

ToyotaSA* 33300000 R18315000 31901 103projects

PrecisionPress 334000 R183700 320 Compressedairandidlemachines

TennecoEmissionControl

600000 R330000 575 Lighting

TennecoRideControl 2360000 R1298000 2261 Oven,knives,inductiongeyser,VSD

WillardBatteries 5600000 R3080000 5365 Curingtime,wetscrubbers,charges

Techniplate 840000 R462000 805 Timeswitchesandtempsensorstoplatingtanks

BMW 17700000 R9735000 16957 Paintshopovens,driers

Feltex 2600000 R1430000 2491 Coolingcomp,lights,idlemachines

JohnsonMatthey 9400000 R5170000 9005 Compressors,chillers,idlemachines,ovens

total 75 534 000 R 41 543 700 72 362

*Toyota SA has reported on updated savings (June 2014) in the article on page 13

AlfHartzenburg,nationalIEEProjectmanager,remembers,“Itwashardinthosedaysbecausecompaniesweresceptical,didnotknowanythingabouttheprojectandwerehard-pressedtodeliverontheirowninitiatives.”

ThefirstawarenesstrainingsessionsinDurban,CapeTownandPretoriatargetedseniormanagementasitwasclearfromthestartthatforenergyefficiencytobetakenseriouslyandaccruethepotentialbenefits,buy-infrommanagementwascritical.

ItstartsatthetopHartzenburgexplains,“Managementbuy-ininactioniscritical.Thistranslates,forexample,inensuringtheenergymanager’sjobdescriptionissufficientlytargetedtoimplementandmanageenergyplans.Thismustalsobeakeyperformanceindicator(KPI)thatdevotesatleast20hoursamonthtotheEnMS.EnergyKPIsareimportantforallmanagers.

“Managerscanalsodemonstratetheircommitmentbywalkingthetalkandbyengagingstaff.Switchingofflightsaftermeetingsisoneofthemostobviousthingstodoandwhileitmightnotresultinabigcostsaving,itdoeshaveabigimpactoneffectingbehaviouralchange.”

9

Hartzenburgadds,“TheEnMSallowsonetosystematicallychipawayatthetargets,monitorandkeeptrackofnewopportunitiesforenergysavingprojectsandperformanceofexistingprojects.”

Takingthelead“Toyotaembarkedonitsenergyefficiencyjourneyayearearlierandithadtonavigatemanydifficultdiscussionstoconvinceitsglobalparentcompanyaboutthemeritsofreviewingcurrentenergymanagementplans,”Hartzenburgexplains(readarticleonpage13).

“ArdenWessels,whowithhiscolleagueSheldonBodeattendedthefirsttrainingsessionsin2010,wasappointedasenergymanageratToyotain2009.Hestartedbymonitoringandloggingtheenergyelectricityconsumptionperunit,perregionandperassembly.Hedevelopedadatabasewhichhelpedtoidentifyopportunitiesforimprovementandthroughaproject-basedapproachstartedtotackleeachissue.

“Hisbattle–andwe’veseenthistoberelevanttoothercompaniesaswell–wasnotonlyontheshopfloorwithoperationsandplantmanagementbutalsowithotherdepartmentssuchasprocurement

andshopfront.Slowlytheireffortsstartedtoshowsavings.Ashiscredibilitygrew,hewasallowedtoestablishanenergyteamoffouryounggraduateengineerstodriveenergyconsumptiondown.

“ThiswasaburningplatforminToyotabecausethatspecificplantwasthemostinefficientplantintheworldfromanenergyperspective.TheToyotastoryisaverypositivesuccessstorybecausebycontinuingwiththeirinitialprojectsaswellasdevelopingandimplementinganEnMSthroughtheIEEProject,

potential Savings identified through energy audits in SMEs

Sector Rands/annum % (R/a) kWh/annum % kWh/a

Agro-processing 50394755 0.45 48106764 0.44

automotive 13 928 814 0.12 11 052 155 0.10

Chemicals,Plastics&Pharmaceuticals 13727194 0.12 14906851 0.14

MetalAllied&Engineering 21887111 0.20 27276480 0.25

Manufacturing 3877385 0.03 875581 0.01

Pulp&Paper 292799 0.00 139181 0.00

Clothing&Textile 3135224 0.03 1626031 0.01

Other 4354973 0.04 4847573 0.04

tOtal 111 598 255 108 830 617

the IEE project offers three main services to industry:• Energyaudits(mostlyforSMEs)toidentify

andadviseonpotentialsavingsinaplant

• EnMSandESOinterventionsupport–thisalsoincludessupportineffortstoattainSANS/ISO50001certification.

• TraininginEnMSandESOtocapacitateindustrytoimplementenergyefficiencyinthelongterms.

Inalloftheseareas,theautomotivesectorhasbeenanenthusiasticparticipant,makingtheresultsandimpactagoodnewsstory.

10

Ardenandhisteamtooktheplantfrombeingtheworsttobeingoneofthethreetopenergyefficientplantsintheworld!”

“Toyotashowedwhatcanbeachievedanditwasn’tverylongthatthenewsspreadandthegrapevineextendedintotheEasternCape.”

HartzenburgsaysthatWesselssoonhadhishandsfullwithenquiriesfromEasternCapecompaniesthatwantedtoknowmore.Asadirectresult,Tenneco(seepages17-19)cameonboard.

DialogueimprovedwithintheindustryandthroughtheIEEProject’sfacilitation,companiesengagedeachotherthatwouldnotnormallydoso.Theydiscoveredthatenergywasnotaconfidentialissuebutauniversallanguage.”

Tenneco’sjourneyagainillustratestheimportanceofmanagementbuy-in.“JustinBotha,TennecoMD,tookastronglead.Infact,hewantedtoimplementthethennon-existingEnMSinsixmonths–somethingthathasneverbeendonebefore!InthatsamemeetingTenneco’sexistingenvironmentalpolicywasamendedtoincludeenergy,signedoffthereandthenandworkstartedimmediately,”relatesHartzenburg,applaudingBotha’s‘can-do’attitude.

TennecowasalsothefirstcompanyontheIEEProjecttocallforsupporttotrainitsprocurementpeopleandmaintenanceengineers.FromthesavingsaccruedthroughitsEnMS,Tennecowasabletoprocureastate-of-the-artcompressor.

automotive journey the IEE project’s

(continued)

11

GrowinginterestVolkswagenenquiredabouttheIEEProjectearlyon.HartzenburgvisitedtheUitenhageplanttwiceandwasthenaskedtodoagapanalysisbetweenVolkswagen’sexisting

energyefficiencyprogrammeandtheIEEProject.DeficiencieswerepointedoutandinNovember2013about35representativesinmainlytheengineeringandenvironmentalsustainabilityareasofVolkswagenattendedatrainingsession.Anothertwoworkshopsfollowedandthis,togetherwithincreasedpressurefromGermanytobeISOcertifiedbyNovember2014,addedimpetustotheestablishmentandimplementationoftheEnMS.Hartzenburg’steamisnowhelpingVolkswagenprepareforcertification.

Daimler Benzhasalsoshownitscommitmentbysending

ateamoffourtoattendthetrainingin2012.ItsignedupasahostcompanyfortheIEEProject’scompressedairsystemtraining.“Wearehelpingthecompanytoprepareforcertification.TheurgencyissuchthatittwinnedwithaplantinGermanythathasalreadyreceiveditsISO50001certificationtospeeduptheprocess,”saysHartzenburg.

Thecompanyhasachievedasavingof2800000kWhandR1540000throughchangestoitscompressedairsystemalone.

Willard Batteries’energysavinginitiativesaredoingwellanditshighlydedicatedteam

is,alignedwiththelargerglobalgroup,pursuingatargettoreduceenergyby5%perannum.Internalcommunicationandawarenessraisingofitseffortshaveaddedtoitssuccessandincludeactivitiessuchasdailyenergyusagecostsfixedoneachofficedooraswellasremindersonbasicwaysto

cutdownelectricityusage.Energyawarenesstrainingisongoing.

CompletedactionsincludealteringthechargingprofilesofbatteriestoreduceAhinputintobatteries;automaticswitchoffofchillers,conveyorsandextractorsduringproductionstoppages;airleaksurveyandrepair;alightingupgradewhichsawalllightsonthepremisesreplacedwithlowenergylighting–thisinterventioneffectedarebatefromEskomanda393078kWhsavingperannum.

Ablutiongeyserelementswerereplacedbyheatpumps,forwhichthecompanyreceivedanEskomrebateof50%andasavingof59545kWhperannum.Changingtoagasstoveinthecanteeneffectedasavingof44912kWhperannum.

Curingtimeforplatemakingwasreducedwithsavingsamountingto1306800kWhandapaybackof2.5years.Bagfilterswerereplacedwithwetscrubber,effecting817344kWhsavingswithatwo-yearpaybackperiod;andsavingsbyreplacing10AchargersintheChargeRoomamountedto693505kWhwithapaybackof3.9years.

YunusMoolafromWillardBatteries’parentcompany,PowertechBatteries,says,“Ourworkisnotdoneyetandtheteamiscommittedtoreachingitsenergysavingtargets.Internalauditsareplannedforearly2015withISO50001certificationfollowingin2016.”

TheIEEProjectwillcontinuetoenablecompaniestoreapenergyefficiencyrewards.Energyefficiencyhasbeenproventosaveindustrialfirmsmoney,increasethereliabilityofoperations,improvesecurityofsupplyandofferattractivefinancialandeconomicreturns,whilepromotingjobcreationandreducingcarbondioxideemissions.

12

tRaInInG IS pRESEntED at tWO lEVElS:

• Atechnicaluser(advanced)levelofferedinatwo-dayworkshopformat,and

• Expertleveltraining,whichiscompletedoveraperiodofmonthsandincludestheoreticalandin-planttraining,andanactualworkplaceimplementationcomponent.

Selected expert level graduates recently qualified as trainers to take over from international UNIDO-appointed facilitators. During the last quarter of 2013, the first South African professionals also qualified to lead audit teams to certify companies as ISO 50001 compliant.

tRaInInG pROGRaMMES aRE pRESEntED In tHE FOllOWInG EnERGY SYStEMS:

• FanSystemsOptimisation(ESOFans)

• MotorSystemsOptimisation(ESOMotors)

• CompressedAirSystemsOptimisation(ESOCompAir)

• PumpSystemsOptimisation(ESOPumps)

• SteamSystemsOptimisation(ESOSteam)

Equipping industry for energy efficiency

Todate,theIEEProject

hastrained over 2,200individualsatadvancedlevelandaround

80 IEE experts

IEE Project (UNIDO) Training

Theavailabilityofspecialisedskillsiscriticaltothesustainabilityofenergyefficiency

initiativesinindustry.CourseshavethereforebeendevelopedbytheIEEProject,

undertheleadershipofUNIDO,totrainprofessionalsinEnMSandESOinavarietyof

industrialsystemsinuseinmanufacturing,miningandotherindustries.

Moredetailsofcoursecontent,thetrainingeventdatesandonlineregistrationareavailableon www.iee-sa.co.za

13

Inanationwheretheelectricitysupplyreservemarginislowandenergycostsrapidlyincreasing,itisnotonlygoodcorporatecitizenrytoreduceenergyconsumptionbutitalsomakesgoodbusiness-sense.

InItIal StEpSToyotaSouthAfricaunderstandsthisandin2008,ToyotaSA(Durban)identifiedenergysavingasoneofitspriorityfocusareas.Arepresentativefromeachofthe14ToyotaSAplantswascalledtobepartofaworkinggrouptaskedwithidentifyingareasforpossibleenergyconsumptionreduction.

Toyota’scompanypolicyistoconsiderallenergyinitiativesthatshowapaybackperiodoflessthantwoyears.Foraddedmomentumtoexistingprojects,ToyotaSAsignedupasahostplantfortheIndustrialEnergyEfficiency(IEE)ProjectinAugust2010.

(A host plant ‘hosts’ IEE Project expert level training at its plant, which automatically allows it two delegates at the expert training.)

AllrelevantToyotapersonnelenrolledfortheuser-level(2day)EnergyManagementSystems(EnMS)andEnergySystemsOptimisation(ESO)trainingprogrammeofferedbytheIEEProject,withtwocandidatessuccessfullycompletingthefirstexpert-levelEnMStrainingcourse(2010/11)andonegraduatingfromthePumpSystemsexpert-levelcoursein2012.

AnEnMSwasintroduced,alongwithanumberofESOandenergyefficiencyprojectsacrossvariousoperationalareas.InlinewiththeISO50001approach,ToyotaSAsetupaPlan-Do-Check-Act(seepage17)processtoensureeffectiveimplementationoftheEnMS,includingregularandaccuratemonitoring.Aspartoftheimplementation

Leading the way

DEDIcatED RESOURcESInApril2012thecompanysetupadedicatedEnergyManagementDepartmentconsistingofaseniormanagerandfourengineers,eachdedicatedtoaparticularclusterofplantswithinToyotaDurban.Thesecomprised:

• Paintandutilitiesplants;

• Vehicleandcomponentassemblyplants,andassemblypartswarehouses;

• Weldingplants;and

• Non-productionareas(administrativeareas).

ArdenWessels,ToyotaSeniorManager:EnvironmentalEngineering&Compliance,attributesthesuccessoftheEnMSandESOinitiativesatToyotaSAto“thesupportofbothtopmanagementandthemanagersoftheplantsconcerned”.

caSE StUDY

AcasestudyforthisfirstyearoftheEnMSisavailableontheIEEprojectwebsite,

www.iee-sa.co.za

Early successes – toyota energy improvements 2010 – 2011

TotalNo.ofProjects 55

GrossMonetarySavings R4,847,000

EnergySavings GWh8.15

TotalInvestment R3,350,000

OverallPaybackPeriod(inyears)

1.09

GHGEmissionsReduction tonCO27,8043

ofanEnMS,energyauditswereconductedatall14ofitsplantstoidentifysignificantenergyusers.

Atotalof55projectswereimplemented,realisingsavingsof8.15GWh(R4.8million)inthefirstyear.

caSE StUDY

14

Hesaysthat,“Plantpersonnelinalltargetedareashavetobeengagedthroughouttheplanningandimplementationstagestoensurethenecessarysupportandtoovercometheperceptionthatenergyreductionstepswouldimpactnegativelyonsafety,qualityorproductioncycletimes.”

plan, DO, cHEck anD actToyotaisthelargestvehiclemanufacturerinSouthAfricaandafull

affiliateoftheToyotaMotorCorporation.“Globally,thecompanyisdrivenbyaggressiveenvironmentaltargetstoreduceenergyandwaterusage,vehicleemissionsandwaste,”Wesselssays.“Wearefullycommittedtocostreductioninitiativesthroughmoreefficientuseofenergyandwaterandconstantlycreateawarenesswithemployeesandsuppliersonthebenefitsofenergymanagement.Afterfouryearsofconsistentreturnsonenergymanagementefforts,wearepreparingforISO50001certificationtodrivesustainableimprovements.”

InfollowingtheISO-alignedEnMSPlan-Do-Check-Actprocess,Wesselsemphasisesthatseniormanagementcontinuestoplayaleadingrole.Infact,eachgeneralmanagerofeachplanthasenergyandwaterasakeyperformanceindicatorandsettargetshavetobemet.

Intheplanningphase,ToyotaestablisheditsEnergyPolicyandidentifiedandprioritisedsignificantenergyusers.Anenergybaselinewasestablished,energyperformanceindicatorsidentifiedandmeasuredinkgCO2pervehicle.Finally,energyobjectivesandactionplanswereputinplacetoreachtargets.

Inthefollowingphase,actionplanswereimplementedandtrainingandawarenessprogrammescarriedoutandcommunicatedacrossthecompany.Energyimprovementwasalsoconsideredinneworrenovatedfacilities.

Energyismonitored,measuredandanalysedweeklyandmonthly,andinthefinalphase(Act),topmanagementreviewstheEnMSandenergyperformanceonaquarterlybasis.

pROGRESS“Wehavecompleted103projectssinceApril2010andhaveidentified11moreforthisfinancialyear,endingMarch2015.Fiftyofthe103projectsrequirednoadditionalfinancialinvestment.”Wesselsadds.

Projectsvariedandhadbothfinancialandenergysavings.Threeprojectsarehighlightedbelow.

Oneofthe103projects,gassupplyconversion,hadmanyadditionalbenefits.Wesselsrecounts,“Weconvertedfromliquidpetroleumgastocompressednaturalgas.Apartfromfinancialsavings,wearealsoreapingsafetybenefits.Thetankcanbefilledwhilethedriverisonthevehicle,fillingtimeisquicker,andCO2emissionsarelower.”

Buttherealsuccessstory,Wesselssays,isthatToyotaSAhasshownayear-on-yeardecreaseinenergyconsumptionwhilealsoachievingayear-on-yearincreaseinbuildingvehicles.

Arden Wessels (left) receives the South African Energy Efficiency (SAEE) energy company of the year award in November 2013 at the annual SAAEC in Gauteng. SAEE bestowed this award in recognition of Toyota SA’s “ambitious environmental commitments and the aggressive approach taken to reduce energy usage, vehicle emissions and waste.”

(continued)Leading the way

15

Note: This kaizen (a term originally from Japan referring to ‘good change’ or continuous improvement) won a Toyota Global ECO award in 2013

project: Pumpoptimisation

process: CoolingWater

Objective: 3to2pumpsandmaintain 487m³/hflowrate

completed: 2010

project: CompressorOptimisation

process: Compressors

Objective: Setcompressorstorunonlywhen required–reacttodemand

completed: Phase1–2010 Phase2–2011,Phase3–2012, Phase4–2013

project: Chiller8OperatingPattern

process: PaintPlantWaterChiller

Objective: ProgramsmallerChiller8 torunonweekendsonly

completed: 2013

The true test of energy efficiency: Increasing annual volume while decreasing annual electricity consumption

cost R 38000

Energy saving kWh/y 322500

cost saving R/y 167700

payback months 3

cost R 0

Energy saving kWh/y 2442000

cost saving R/y 1693690

payback months 0

cost R 32500

Energy saving kWh/y 563100

cost saving R/y 444850

ROI months 1

pROJEct HIGHlIGHtS

Volume Increasing annually

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14plan

Electricity(kWh)Volume

Electricity consumption Decreasing annually

200000

150000

100000

50000

0

co

nsum

ptio

n (k

Wh)

Vo

lum

e (

Uni

ts)

200000000

150000000

100000000

50000000

0

16

ISO50001wasadoptedbytheSouthAfricanBureauofStandardsin2011asthenationalstandardforestablishing,implementing,maintainingandimprovinganenergymanagementsystem.TheIndustrialEnergyEfficiency(IEE)Projectissupportinganumberoflocalcompaniesinworkingtowardsjoiningtheapproximately1800companiesworldwidewhohaveattainedISO50001certificationataround3000sites,mostofwhichareinEurope.

TheIEEProject’sHemantGroverexplainsthesignificanceofbeingISO50001certified,“Inanutshell,ISOallowsanyorganisationtomanageenergyinasustainableway.Previously,companiesthatwantedtomanageenergydidsobyimplementingadhocinterventionswithlittlesustainedrewardsorimpact.TheNCPC-SAusesitforsustainabilityandcontinuity.”

AnycompanywantingtobeISOcertifiedmustbecompliantandmustpassarecertificationauditeverytwoorthreeyears.Thatimpliesthatrecordkeepingisveryimportantasrecordsshowwhatissustainable.

“Energyhasnowbeenelevatedtofeatureinthebusinesscultureinsteadofbeinganice-to-have,”Groveradds.“MorethanadecadeagoinSouthAfrica,energywascheap.Thatchangedwiththeenergycrisisandabigboominindustry.Consultants

international standard certification (ISO 50001)

Energy efficiency boost with

SanS / ISO 50001:• Enablesorganisationstoestablishsystems

andprocessesnecessaryto improve energy performance;

• Isapplicabletoallorganisations;and

• Does notprescribespecificperformancecriteriawithrespecttoenergy

ISO50001istheonlystandardthatimpactsdirectlyonthecompany’sbottomline,asitaimstoreduceoveralloperatingcostsbydrivingdownenergyspending.

ISO50001ensuresthatenergysavingsaresustainedovertime:toremaincertified,acompanymusthavesystemsinplacetoensurethattheenergyefficiencyissustainableinthelongterm.

startedtoadvocatewaystochangeenergyconsumptionbutwithoutapropermanagementsysteminplace,theseinitiativesaredifficulttosustain.Europethendevelopedanationalenergystandard,inwhichUNIDOplayedakeyrole,andthisledtotheestablishmentofISO50001.”

AccordingtotheInternationalOrganisationforStandardisation,ISO50001isbasedon

themanagementsystemmodelofcontinualimprovementalsousedforotherwell-

knownstandardssuchasISO9001orISO14001.“Thismakesiteasierfororganisations

tointegrateenergymanagementintotheiroveralleffortstoimprovequalityand

environmentalmanagement,”theorganisationsays.

17

GroveremphasisesthatthefirststepintheprocessforbecomingISOcertifiediscommitmenttoenergymanagementfromthetopleadershipoftheorganisation.Theorganisationidentifiesthescopeandtheboundaries(whatandwhere)oftheenergymanagementrequired,andsetsupateamtodrivetheprocess.Theteamconstitutestopmanagementrepresentativesaswellasrepresentativesfrombusinessunits.Theenergymanagertakesthelead.

“Collectively,theteamoverseesmanagementanddetailedplanning.Theyneedtoknowexactlyhowmuchenergyisbeingused(alsolookingback);what,ifanything,wasdonetoreduceconsumption;howsuccessfultheseinterventionswere;whatarethebigenergyusers;andthenbasedonthisinformation,objectives,targetsandactionplansarecompiled.Thisisfollowedbyimplementation,monitoringandevaluationandsupplyingleadershipwithfeedback.

Tenneco in Nelson Mandela Bay was in the news in May 2014 for becoming the first automotive supplier in South Africa to achieve an international certification for its energy management systems.

Based on the successes achieved in the Nelson Mandela Bay plant, the certification is now being rolled out to all production facilities worldwide (some 90).

The ISO 50001 certification was achieved for the implementation of the energy management systems at two of its plants – Tenneco Ride Performance, which manufactures original equipment and aftermarket shock absorbers, and Tenneco Clean Air, which manufactures catalytic converters and exhaust assemblies.

The ISO 50001-aligned Energy Management System process is based on the concept of plan, do, check, and act.

ManagementReview Policy

ManagementResponsibility

Managementparticipation Yes

Implementation&Operation

Day to day operations

Checking

Planning

caSE StUDY

18

Overall plant efficiency improvements

tEnnEcO RIDE pERFORMancE (ptY) ltD anD tEnnEcO clEan aIR (ptY) ltD

tHE ISSUE anD MaIn FInDInGSTennecoAutomotiveisaninternationalautomotivesupplierwithmorethan90productionfacilitiesworldwide.TwoofthesearelocatedclosetotheautomotivehubinNelsonMandelaBay.

Tenneco–RidePerformance(Pty)LtdproducesshockabsorbersandTenneco–CleanAir(Pty)Ltdproducescatalyticconvertersandexhaustassembliesforboththelocalandinternationalmarkets.Tennecohasacombinedtotalof780employeeswhoallcontributetotheenergyconsumption.Annualproductionofeachplantisaround2.2millionunitsperannum.

TennecoSouthAfricabecameawareoftheIEEprojectatatwo-dayEnergyManagementSystems(EnMS)trainingsession.Followingadecisiontojoin

thefullEnMSexpertcourse,TennecowasselectedasthehostcompanytoshowcasetheimplementationofISO50001withsupportfromtheIEEproject.

EnERGY cOnSERVatIOn OppORtUnItIES IDEntIFIEDTennecohassetitssightsonISO50001fromthedayitwasreleased.ProgresstowardsISO50001wasagreatlearningexperiencesincenootherorganisationhasimplementedthestandardbefore.

TheEnMStrainingallowedtheTennecoteamtodevelopanenergymanagementsystemalignedwithTenneco’sneeds.Thiswasachallengingtask,aswhileassistancewasavailabletoimplementanenergymanagementsystem,adaptingtheEnMStoISO50001provedmoredifficult.

19

IMplEMEntED SaVInGS MEaSURESThefollowingtableshowsenergysavinginterventionsimplementedwithcommensuratecostsandsavings.

cOnclUSIOnFutureworkwillincludepowerfactorcorrection(PFC)asthiswasleftuntillaterintheprogrammetoreducetherequiredsizeandcostoftherequiredPFCequipment.Paintshopmodificationswillonlybemadetocoincidewiththenewpaintshopdesignthatisplannedfor2015.

Intervention (all project groups have been combined)

capital costZaR

SavingsZaR

paybackYrs

Energy saving

CompressedairsystemsCompressedairoptimisation

R1023265.30 R425595 2.4 766305kWh

LightinginitiativesFactory,Offices,Sensors,DaylightHarvesting

R1076695.40 R780131.49 1.38 926064kWh

Paintshopburnersubmersiontube R35000 R16284 2.14 15366kWh

Automaticmetering.Electricity,LPG,Shieldinggasweight

R149011 – – Betterenergymanagement

NewChromePlantingoven R750000 R634508 1.18 829444kWh

PowerFactorcorrectionatTenneco–EmissionControl.TobedoneatTenneco–RideControl

R69079 R142776 0.48 127kVA

Procedures–Shutdown,SEUtraining – – – Betterenergymanagement

tOtal R 3 103 050.70 R 1 999 294.49 2 537 179 kWh

ThecompanybelievestheimplementationoftheEnMSwouldhavebeeneasiertounderstandiftheISO50001standardwasconsideredfromthestart.Toensuresustainabilityofthesystem,allnewequipmentwillcomplywiththeinternalenergyefficiencyregulations.TennecohasfoundthatthecompanyculturehasbenefitedfromtheIEEprojectinthatmoreteammembersareawareofandactivelyengagedinenergysavingsinitiatives.

Highlights of operational/ESO interventions

kEY FInDInGS: Thetwoplantscompletedmorethan15projectsofvaryingsizesoverthreeyears.R3 100 000 was investedwithapaybackperiodof1.55years.Monetarysavings amounted to R2 million,energy savingsamountedto2 540 000 kWh,andGHG emissionwerereduced by 2 428.08 tonnes of cO2.

caSE StUDY

20

Automotive component suppliersJOHnSOn MattHEY SOUtH aFRIca

BackGROUnDJohnsonMatthey,aBritishcompanyestablishedin1817,isaglobalmanufacturerofautomotivecomponents,specificallyautocatalysts.TheSouthAfricanoperationbeganin1953andsince1992JohnsonMattheySouthAfrica(JMSA)hasbeenmanufacturingcatalystsatitsGermiston(Gauteng)plant,supplyingseverallocal“canners”whofitthecatalystintothecatalyticconvertersystemforexporttothemotorvehicleassemblers.

Inresponsetotheincreaseinenergycosts,JMSAGermistonsignedupwiththeIEEProjectin2012asacandidateplantfortheimplementationofanISO50001-basedenergymanagementsystem.TheplantholdsmanagementsystemcertificationforISO9001/TS16949,ISO14001andOHSAS18001andadoptedtheISO50001approachasanintegrationandextension.

IMplEMEntatIOn OF an EnERGY ManaGEMEnt SYStEM AnIEEProjectenergyconsultantfacilitatedasystemsreviewandconductedanISO50001initialaudit.TheexpertthenassistedJMSAtodevelopandimplementanenergymanagementsystem(EnMS)andenergyefficiencymeasuresweresystematicallyimplementedinbothproductionandutilities.

Existingstructures,suchaspolicies,proceduresandsustainabilityreporting,wereexpandedtoincludeenergyspecificrequirements.

Anenergyteamwasappointed,underthechairmanshipoftheEngineering(Energy)Managerwhichmetweeklytoidentify,co-ordinateandimplementenergyperformanceimprovements.TwomembersoftheenergyteamattendedtheIEEProject’sadvancedEnMStrainingandfurthertrainingisplannedforadditionalenergyteammembersandenergymanagementsystemauditors.

HIGHlIGHtS OF IntERVEntIOnSFourmainprojectswereidentifiedaspotentiallylargeenergysavers.Threeofthese,namelytheaircompressors,chillersandmixingvessels,couldbeimplementedimmediatelywithnominalornoinvestmentrequired.

Thefourthprojectwastheoptimisationoftheovens,whichwasimplementedasphasetwo,duringtheDecembershut-downperiod.

ThesefourprojectsresultedinapproximatelyR4.5millionoftheR7.7millioninsavings.Thebalancewasrealisedthroughbehaviourchangesandaprocessofcontinuousimprovement(Kaizenprojects).Asummaryoftheinterventionsandsavingsrealisedisoutlinedinthetableopposite.

key findings

Totalnumberofprojects

FourlargeandvarioussmallKaizenprojects

Monetarysavings

Totalsavings R7,728,569

Fourmainprojects R4,540,098

Balance R3,188,470

Energysavings

Totalsavings 9,425,084 kWh

Largeprojects 5,469,998kWh

Balance 3,888,379kWh

Totalinvestmentmade R620,000

Paybacktimeperiod 1 month

GHGemissionreduction 9,020 tonnes of cO2

21

SUMMaRY OF all IntERVEntIOnS

cHallEnGES anD lESSOnS lEaRnED

• Behavioural changes –variouscommunicationandsuggestioncampaignswererunandtheenergyawarenessincreased.Itiscriticaltoensurethatenergyinfluencersunderstandtheenergyimpactsoftheirworkandactions.

• Measurement/metering –itisimportanttohavesufficientmetering,andtoensuresubmetersonsignificantenergyuserstoallowforaccuratemeasurementandbetterinformfutureimplementation.

• Selection of correct energy team members –selectingthecorrectindividualsandrepresentationofalltherelevantsectionsoftheplantiscriticaltodriveandEnMS.Itisadvisabletobewillingtomakechangeswherenecessaryandtoensuresignificantinvolvementbyproductionpersonnel.

• knowledge and awareness –thisprocessshowedthecriticalnatureofbecomingawareofthepotentialforenergysavingsandhowtorealisethemeffectively.

• attitude is of paramount importance.

System Intervention capital cost ZaR

Energy saving Savings ZaR (average of R0.82/kWh)

Compressors Reducewaste–repairedleaks,increasedawarenessandoptimalusageoftheequipment

Zero 1,072,163kWh R879,174

ChillersR20,000 933,973kWh R765,858

Productionmixingvessels

Identifiedareasofwaste–vesselsleftrunningwhenproductionlineswerestopped.Introducedalockoutsystem.

Zero 2,180,862kWh R1,788,307

OvenOptimisation

•Shutdown3De-humidifierunitsbyre-routingtheair

•Re-circulationratioincreasedto~50%-60%

•Allfancowlingswerecooledandinsulationwasreplaced

R600,000

1,283,000kWhyearonyeardespitea9.73%

increaseinrunningtime

R1,065,000

Otherprojectsandfactors

Behaviourchangese.g.switchingequipmentoffwhennotinuse)

Focusonproductionefficiencies

Kaizenprojects

Zero 3,888,379kWh 3,188,470

The Johnson Matthey energy team outside the Germiston plant following the handover of their ISO 50001 certificate by a UNIDO and SABS delegation in April 2014

caSE StUDY

22

BackGROUnDFeltexAutomotiveTrimLtdisaleadingsupplierofawiderangeofqualityautomotiveacousticandtrimcomponents,includingcarpets,variouscompartmentinsulators,parcelshelvesandwheelarchinsulators.OneoftheirplantsislocatedinJacobs,DurbanSouth,KwaZuluNatal.

Heatisusedinvariousstageswithinthemanufacturingprocess,includingheatingandformingoffibresheetsunderpressure,andpre-heatingofmaterialsusedinfloorcarpetmanufacturebeforelayeringandpressingviabanksofheatingelements.Pressmouldingsarewatercooledviaacentralisedchillersystem,andfumesproducedintheprocessareextractedviahoodandextractorfansystems.Certainproductsaretrimmedusinghighpressurewater-jetcuttingunits.Compressedairissuppliedviaacentralisedcompressor,andlightingisprovidedbyfluorescenttubes.

FeltexDurbanunderwentanenergyauditinFebruary2012aspartoftheNationalCleanerProductionCentreofSouthAfrica(NCPC-SA)’sResourceEfficiencyandCleanerProductionProgramme.ThepurposeofthiswastohelpFeltextocharacteriseenergyusage,determineSignificantEnergyUsers(SEU’s),andtoidentifyopportunitiesforenergyconsumptionreductionwithintheplant.Theauditidentifiedtheneedtoaddressenergymanagementsystemswithintheplant,andarecommendationwasmadetostrengthentheenergymanagementcapabilitiesoftheplant.

ThispromptedFeltextoadoptanEnergyManagementSystem(EnMS)throughtheIndustrialEnergyEfficiency(IEE)Project,asimplementedbytheNCPC-SAinconjunctionwithUNIDO.Feltex’scompanyengineerattendedtheIEEExpertLeveltrainingfromNovember2012andsuccessfullycompleteditinNovember2013.ThispromptedthedevelopmentofanenergypolicyintheearlystagesoftheEnMSprogramme.

TheendorsementofandcommitmenttotheprogrammebyFeltex’stopmanagementwasakeycontributortosuccess.

IMplEMEntatIOn OF an EnERGY ManaGEMEnt SYStEM Anenergypolicywasdraftedandadopted,andanenergyteamwasestablished.Eachmemberoftheteamwasassignedspecificresponsibilitiesandgivenclearmandatesregardingutilityefficiencyandenergymanagement.Adecisionwastakentoimplementmandatorytargetedtrainingforallenergyend-users.Tothisendaneedsanalysisandskillsassessmentweredonetodeterminethecontentofthetraining,andcontentspecifictodifferentfunctionswasdeveloped.

IMplEMEntatIOn cHallEnGESThedeterminationofakeydriverastheprimaryinfluenceonthelevelofenergyusageandagainstwhichperformancecouldbemeasured,provedchallengingasthedevelopmentofarealistic

Vehicle Component Supplier FEltEX aUtOMOtIVE tRIM – DURBan

key findings / savings table

ImplementationPeriod 2013to2014

Numberofprojects 6

EnergysavingsinKWh 1,070,000kWhperannum

Paybackperiodinyears <12months

GHGEmissionReduction(tonCO2e) 1,024tonnesCO2

23

baselinewasdifficult.Amorerigorousmeterreadingprocedure,combinedwithaspecificweeklyproductionmonitoringinitiative,meant

SUMMaRY OF IntERVEntIOnS

thattherelationshipbetweenproductionandenergyusagecouldbemodelledusingregressionanalysistechniques.

System Intervention Energy saving per year

Tacamouldingsectionpresses Thermalinsulationofthepresshousingstominimiseunnecessaryheatwastagetoatmosphere

140,000kWh

Autolinepressandchillersystems(twoprojects)

Insulationoftheheatingplatetominimiseunnecessaryheatlosstoatmosphere

Insulationofsuction-sidepipeworkontheAutolinechillersystem

18,500kWh

Lightingretrofit Replacementofdatedfittingswithmodernequivalents;moreappropriateswitchingarrangements;makingoptimaluseofdaylight.

732,000kWh

Compressedairprogramme Optimisingcompressedairusagethroughemployeeawareness;reductionofconsumptionatpointofuse;optimisationofsystemincludingleakagereduction;replacementofcompressors.

44,100kWh

Unusedequipment Switchingoffunusedequipment 135,400kWh

lESSOnS lEaRnED

• leadership supportatalllevelsoftheprogrammeisaprerequisite.

• composition of energy team shouldinvolvepeoplefromawiderangeofbackgroundsandskill-sets.

• analysis of key data(productionandenergydata)isvitalintheidentificationofopportunities.

• Many opportunitiesexistforenergysavingwithlittleornoimplementationcost.

• linking of data isvitaltolinkthebusinesscasetokeybusinessdriversandtohighlightanyadditionalbenefitsthatthecompanymayderivethroughtheuptakeofenergymanagementbestpractice.

caSE StUDY

24

BackGROUnDFeltexAutomotive,headquarteredinDurban,consistsofsevenbusinessunitsthatsupplyproductsdirectlyandindirectlytoSouthAfricanOriginalEquipmentManufacturers(OEMs).

TheFeltexAutomotiveTrimplant,locatedinRosslynPretoria,isaleadingsupplieroftextile-basedautomotiveacousticandtrimcomponents.Itproducestechnicalfeltsinneedledandairlayconstructionsandnon-wovencarpets(bothstructuredandconventional)inabroadrangeofweights,widthsandspecifications,formouldableapplications.Fromitsfactoriesdirecttocustomers,FeltexTrimsuppliesmainfloorcarpets,passengercompartmentinsulation,trunkpackages,enginecompartmentinsulation,parcelshelvesandexteriorwheelarchliners.

Mostoftheprocessesrequirethefollowingactivities:

• Heatingofmaterial.Theheatingismainlysuppliedbyelectricity.

• Mostoftheequipmentrequirescompressedairforoperation.Althoughtwocompressorsareinstalled,onecompressorisoff-lineduetovariousimprovementstothereticulationandrequirementsforcompressedair.Compressedairiscurrentlysuppliedthroughone75kWcompressor.

tHE ISSUE anD MaIn FInDInGSInordertotransformoperationalprocesses,reduceenergyconsumptionandcosts,andensurelong-termenvironmentalsustainability,FeltexTrimjoinedtheIEEProjectin2012andtheFeltexTrimRosslynmaintenancemanagersignedupforEnMSexpertleveltraining.

Vehicle Component Supplier FEltEX aUtOMOtIVE tRIM – ROSSlYn

kEY FInDInGS:(2012-13)Nocapitalinvestmentandjustanin-housecostestimatedatR30000inlessthanoneyearrealisedanannual saving of R 287 451.Energy savings of 309 087 kWhwithaconcomitantGHGreductionof295796tonnesCO2.

(2013-14)AfteraninvestmentofR197600,asaving of R 99 519withapaybackof1.98yearshasbeenrealised.A215 611 kWhand213 tonnes cO2 reduction per yearwereachievedaswellasadditional energy conservation opportunities identified.

25

In2012,twomainprojectswereidentifiedasESOinterventions:

• platten Heater:Theprocessofshapingcarpetsunderheatrequiresbothheatandpressure.Itwasfoundthatequipmentwasnotoptimallyutilised,withroughly50%oftheheatingsurfaceoutofcontactwiththeproduct.Mouldswerere-casttogetclosertothe100%target.Asaconsequence,productionwasalmostdoubledwithoutapplyingadditionalheat.Theresultingspatialtargetachievementalsohalvedproductiontime,reducingelectricityconsumptionby50%.

• Electricity to heat products: wasteheatwasreroutedtopre-heatproductsbeforereachingtheoven,therebyreducingthe75°Coventimefrom90to45seconds.Acanopywasconstructedtocapturethelostairwhendoorswereopenedanduseitforpre-heatingproducts.Thisinterventionhalvedoventimeandconsequentlyelectricityconsumptionbyabout45%.

Inaddition,thefollowingstepsweretakenin2012/13:

• Staffenergyawarenessinterventions:erectingpostersdisplayingdryingovenenergyconsumption.

• Equipmentandsoftwarewasinstalledtomonitordryingtunnelenergyconsumption.

• Permanenttrackswereinstalledinthedryingovenstoensurenotrolleymovementallowinghotairtoescape.Theinstallationalsoresultedinareductionofdryingtime,from24hourstoaround19hours.

• Flapswerealsoinstalledtorestrictairflowthroughthepansoffruitbeingdried,avoidingthelossofhotairinunutilisedareas.

• Staffbehaviouralchanges:toensurethatthedryingtunnelswerebeingoptimised,staffwastrainedtoaddthemaximumamountsofpanspersession,reducingkWhusageperpanandoptimisingproduction.

EnERGY cOnSERVatIOn OppORtUnItIES IDEntIFIED 2012-14

caSE StUDY

26

• Thetotalamountofenergyconsumedbytheovenswasreducedbyabout20%.

• Automatingthefourcoldstoredoorsandretrofittingremotecontrolstoforkliftsensuredlesswastefultemperaturelossduetodoorsleftopenindiscriminatelyduringpackingoverproducefortransporttoend-user.

During2013/14,thefollowingopportunitieswereidentified:Therequirementforcompressedairthroughouttheplantoverweekendswasassessed.Itwasfoundthatatthefoamingplantcompressedairwasneededtocirculatethefoaminthestoragetank.A2.2kWcompressorsupplyingairat3Barwasinstalled.Thismadetheoperationofthemain75kWcompressorat6Baroverweekendsredundant.

Carpetsareheatedbeforetheyarepressedintherequiredshape.Thetraditionalwayofheatingthecarpetswastouse36resistiveheaterelementsratedat2kWeach.Theseheaterstakealongtimetoheatupandconsequentlyarenotswitchedoffbetweencarpets.Theywerereplacedwith48infraredheatersratedat1.5kWwhichheatupinstantaneously.Controllersoftheprocesswerereprogrammedsothattheheatersonlyswitchonwhenthereisacarpetinthemachine.Thetimerequiredintheovenalsoreducedfrom80secondsto45seconds.

Heatedairisusedtopre-heatcarpetsbeforetheyaregluedandpressed.Airisheatedthrough36elementsratedat1kWeach.Previously,thecarpetswereconveyedintotheovenonagridconveyorandthehotairby-passedthecarpetandfollowedthepathofleastresistance.Consequentlythecarpetstooklongertopre-heattotherequiredtemperature.Bufferplateswereinstalledtocontrolairflowsothatheatisefficientlyappliedwhereitisrequired;onthecarpet.Theresultisthatcarpetsarenowpre-heatedwithin45secondscomparedto90seconds.

Inasectionoftheplant,thecorrugatedroofplateswerereplacedwithtranslucentroofplatestomakeuseofnaturallightinsteadofartificiallightduringtheday-shift.Thisresultingin50highbaylampsratedat125Wbeingswitchedoffbetween18:00and6:00wheretheywerepreviouslyoperational24-hours.

lESSOnS lEaRnEDFeltexTrimRosslyndemonstratedthatsubstantialenergysavingscouldbeachievedwithoutmajorcapitalinvestmentorretrofitting.Byjustchallengingthestatusquoofoperationsandpro-activeactiontowardsoptimaloperation,asubstantialimpactwasachievedonbothproductionthroughputandelectricityconsumption.

Vehicle Component Supplier FEltEX aUtOMOtIVE tRIM – ROSSlYn

(continued)

27

HIGHlIGHtS OF ESO IntERVEntIOnS

System Intervention Investment ZaR

Savings ZaR

payback period

Energy saving (kWh)

GHG Emission

Reduction (kg cO2/

year)

PlattenHeater

Optimalusageofheatedareasintheequipment

15,000

287,451 <1yr 309,087 295,796

HeatingOvenWasteheatrecoverytopreheatproducts

15,000

Compressor

Installationofsmallaircompressortosupplyweekendload

10000 36700 0.27yrs 101192 100000

HeatercoilsReplaceresistiveheatercoilswithinfraredlamps

57600 33770 1.7yrs 61401 60000

Bufferplates

Bufferplatesatline2manufacturedin-housetomatchcarpetsizes

0 19356 0 35193 34800

Lighting Useofnaturallight 130000 9693 13 17625 17000

caSE StUDY

28

BackGROUnDToyotaBoshokuSA(Pty)Ltd(TBSA)isasubsidiaryofToyotaBoshoku,basedinJapan.TBSAisbasedinUmbogintwini,KwaZuluNatal,SouthAfricaandmanufacturesdoorpanelsandcarseatsforToyotaSouthAfricaMotors.Thefacilityishousedinonelargebuilding.

TBSAisanISO14001accreditedcompanyandthereforehastoshowcontinuedimprovementwithregardtoenvironmentalchallengesasrequiredbytheplantandassetoutintheToyotaBoshokuGlobalObjectivesandTargets.TBSAalsostrivestoachievethenationalenvironmentaltargetsaswellasrequirementsoftheircustomer(ToyotaSouthAfricaMotors).

OVERVIEW OF IMplEMEntatIOn TBSA’sSectionManager–GeneralAffairsattendedaDurbanAutomotiveClusterworkshop,whichintroducedtheprogrammetoToyotaBoshoku.

AnIEEProjectassessmentwasconductedattheplant.Theinterventionsdealtprimarilywiththereplacementofexistinglightingtechnologieswithnew,energyefficienttechnologiesasrecommendedintheassessmentreport.

Automotive Industry Parts ManufacturertOYOta BOSHOkU Sa (ptY) ltD

HIGHlIGHtS OF ESO IntERVEntIOnS Atotalof874oldtechnologylampswithconventionalballastswerereplacedwithenergyefficientlampswithelectronicballasts,resultinginanaveragemonthlyenergyconsumptionsavingof15,86kWh.Timerswereinstalledtoswitchoffselectedinternallightfittingsduringdaylighthours.Replacementsweremadeasfollows:

• ReplacementoflinearlampT8lightfittingswithlinearlampT5fittings;

• ReplacementofHIDfloodlightfittingswithCFLlightfittings;and

• ReplacementofHalogenlampswithLEDlamps.

Existing technology Quantity new technology

Energy saving (kwh)

GHG Emission Reduction

(kg cO2/year)

DoublelampT8fluorescentlightfittings

846 Replacedwithnewdoublelamp28Wfluorescentlightfittings

153,408 151,873

50WHalogendownlightlamps 5 Replacedwithnew5WLEDlamps

819 811

400WHIDfloodlightfittings 21 Replacedwithnew105WCFLfloodlightfittings

34780 34,432

250WHIDStreetlightfittings 2 Replacedwithnew105WCFLstreetlightfittings

1638 1,622

The above was in addition to the replacement of and control of the HID Highbay lighting which was completed before the energy assessment.

kEY FInDInGS:Oneprojectwas

undertaken,resultinginasaving of

190,645 kWh andR 165,203 per yearfor

aninvestment of R 451,840(payback

periodof1.85years).Areduction in

GHG emissions of 188,738 kg cO2

wasachieved.

29

IMplEMEntatIOn cHallEnGESLabourstrikesandholidayshutdownsprolongedtheimplementationoftheprogramme.Furtherdelayswerecausedbyproblemswiththesupplyofproductsneededtocompletetheproject.

lESSOnS lEaRnED

• Energysavingsarepossiblewithoutmajorcapitalinvestment.

• TheToyotaBoshokuGroupalreadyhadpoliciesinplacetoimproveandreduceenvironmentalimpact.TheIEEProjectfittedwellintotheexistingculture.

• ToyotaBoshokuwasimpressedwiththeconductandefficiencyofIEEProjectstaffandconsultants.

30

WiththesupportoftheAIDC,theIEEProjectwasabletoengageSMEsintheautomotiveandrelatedsectorsandoffertechnicalreportsandrecommendationsonenergyefficiencyinterventions.

However,theIEEProjectiskeenlyawareoftherealchallengesfacedbySMEswishingtoimplementEnMSorevenESOinterventions,despiterisingenergycosts.

“ItisoftendifficultforSMEstoseethelong-termvalueofimplementinganenergymanagementsystem.Byitsverynature,anSME’sownermightalsobethemarketerandfulfilotherresponsibilities,makingitdifficulttotakemoretimefromabusyscheduletofocusonenergymatters.

“Theruleofthumbforappointingadedicatedenergymanageriswhenthecompany’senergycostsreachorexceedR100millionperyear,”explainstheIEEProject’sAlfHartzenburg.

But energy savings are possible, even for SMEs with limited internal capacity.

BentelerAutomotiveinUitenhage,EasternCape,tookupthechallengeandisstillpartoftheIEEProjectwithleadershipnotonlyappreciatingtheneedtoimproveenergyefficiencybutalsotakingastrongleadinensuringthecompanyremainscommitted.

TheTechniplateandPrecisionPresscasestudiesonthefollowingpagesoutlinetheeffortsoftwoSMEsintheautomotiveandrelatedsectors.

“Manycompaniesaresurprisedtohearthattheydonothavetospendmoneytosaveenergy.Itisnotnecessarytoinvestintechnologyupgradestoeffectenergysavings.Infact,somecompaniesusethemoneytheysavethroughtheirenergymanagementsystemtofundtechnologyupgrades,”saysHartzenburg.

The IEE Project and small, medium and micro enterprises

OneoftheservicesofferedbytheIEEProjectisfreeenergyauditsforsmalland

mediumenterprises(SMEs).

Intheautomotivesector,thisprocesswasassistedgreatlybythestrategicpartnership

betweentheNationalCleanerProductionCentreofSouthAfrica(NCPC-SA)and

theAutomotiveIndustryDevelopmentCentre(AIDC).

Percentage of assessments within each sector

23%

15%

13%

10%

5%4%

29%1%

Agro-processing

Automotive

Chemicals,Plastics&Pharmaceuticals

MetalAlliedsandEngineering

Manufacturing

PaperandPulp

Clothing&Textile

Other

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IEE pROJEct – SME EnERGY EFFIcIEncY aUDItSSince2011,theIEEProjecthasconducted227energyaudits.51ofthese(23%)wereintheautomotivesector.

Throughtheseaudits,potentialenergysavingsof108GWhwereidentified,valuedatsomeR101.5million.

Percentage of potential energy savings identified in each sector

potential savings identified through energy audits in SMEs

Sector Rands/annum % (R/a) kWh/annum % kWh/a

Agro-processing 50394755 45% 48106764 44%

automotive 13 928 814 12.4% 11 052 155 10%

Chemicals,Plastics&Pharmaceuticals 13727194 12% 14906851 14%

MetalAllied&Engineering 21887111 19.6% 27276480 25%

Manufacturing 3877385 3% 875581 1%

Pulp&Paper 292799 – 139181 –

Clothing&Textile(CTFL) 3135224 3% 1626031 1%

Other 4354973 4% 4847573 4%

tOtal 111 598 255 108 830 617

Ofthese,10%oftheenergysavingsidentified(11GWh)wereinautomotivesectorSMEs,withover12%ofthemonetaryvalueoftheenergysavingsbeingwithinthissector. (The discrepancy is due to the different energy sources used and the relative cost of these energy sources.)

Agro-processing

MetalAlliedsandEngineering

Chemicals,PlasticsandPharmaceuticals

Automotive

Other

ClothingandTextile

Manufacturing

44%

25%

14%

10%

4%2%1%

caSE StUDY

32

tHE ISSUE anD MaIn FInDInGSTechniplateElectroplatersislocatedinSilvertonPretoriaandoffersarangeofplatingproductsandservices,includingelectro-polishing,embossing,etchingandcolouring.Inthedeliveryoftheseservices,thecompanymakesuseofplatingtankswhichoperateatextremelyhightemperatures,resultinginhighenergy(specificallyelectricity)consumption.

Consumptionstatisticsshowedthatthetotalamountofenergyusedbythesitewasequalto2,186,708kWhperannum,atacostofR735202.

EnERGY cOnSERVatIOn OppORtUnItIES IDEntIFIEDAnIEEProjectenergyauditidentifiedthatTechniplate’splatingtanks’temperaturewasbeingmanuallycontrolled,therebyresultinginhighdegreeoftemperaturevariations,excessivetemperaturesandexcessenergyuse.

Recommendation:Plating Tanks Auto Temperature Control (ECO1)

IMplEMEntED SaVInGS MEaSURES

MeasurementanddataanalysisDatameasurementsclearlyshowedthatwhenautotemperaturecontrolison,energyconsumptionwassignificantlylowerthanwhenautotemperature

controlisdeactivated.Thedifferenceintheaverage(mean)energyconsumptionis1.9kWh.

Boththemeanandthemedianoftemperaturearehigherwhenthereisnoautocontrol.Thedifferenceofthemeansshowsthatwithoutautocontrolthetanksarerunning4.7 ° c hotter.Temperaturevariabilityasindicatedbythestandarddeviationis6.5morewithoutautocontrol.Thishighvariabilitymighthavequalityconsequencesontheproduct.

Plating Tank Temperature ControltEcHnIplatE

parameter Energy consumption temperature control

auto control

Manual control

auto Manual

Mean 5.3kWh 7.2kWh 50.4°C 55.1°C

Median 5.2kWh 7.0kWh 50.5°C 56.2°C

Min 4.2kWh 5kWh 49.8°C 49.6°C

Max 7.2kWh 9.4kWh 51°C 57.2°C

Range 3kWh 4.4kWh 1.2°C 7.6°C

StDeviation

0.76 1.88 0.44 2.85

Summary Statistics of the Measurement Data

The temperature controller

used for this case study.

Both this item and the

energy meter also used in

the case study cost R 1100.

kEY FInDInGS:AfteraninvestmentofR46,200,asaving of R 172,751 (23.5% saving)withapaybackof4monthshasbeenrealised.Energy savings of 421 344 kWh (19.3%saving)achieved.

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DEtERMInatIOn OF SaVInGS anD paYBack pERIODBelowisthecalculationoftheenergycostsavingsandpaybackperiod.

PaybackPeriod:• Totalcostofinstallationfor42tanks=R46,200• Paybackperiod(46,200/17,251)=4 months

Thetemperatureprofileoftheplatingtanksisalsofarmorestablewithautocontrolthanwithoutit.Whenoperatingonautocontrol,thevarianceisaslowas1.2°Cwhilewithoutautocontrolthetemperaturehasawiderangeof7.6°C.

Theplatingtankenergyconsumptionprofileforbothautoandmanualcontrolalsoshowsthatwithout

Energy and cost Saving

CostperkWh R0.41perkWh

Noofplatingtanks 42

Totalenergyusedperyear 2186708kWh

Costofenergyconsumedperyear R735202

Energysaving(determinedfromdifferenceofmeansfromtable4) 1.9kWh

Workinghoursperyear(24x4+14)x48 5280hrs

Totalenergytobesavedperyear(5280hrsx1.9kWhx42tanks) 421 344 kWh

Percentageofenergysaved 19.3%

Costofenergysavedperyear(421344kWhx0.41) R 172 751

Percentageofcostssaved 23.5%

cOnclUSIOnThissimpleenergy-savingmeasureresultedinasavingof19.3%ofenergyand23.5%oftheenergycostsofthisSME.Inaddition,theinvestmentwaspaidbackintherelativelyshorttimeframeofonlyfourmonths.

Anotherbenefitofthemeasuresisbetterprocesscontrol,whichmayresultinbetterproducts.

autotemperaturecontrolenergyconsumptionishigher.

Atemperaturecontrollerandanenergymeter(shownleft)wereinstalledateachplatingtankatacostofR1,100each–atotalcostofR42,600.

caSE StUDY

34

tHE ISSUE anD MaIn FInDInGSprecision press isamedium-sizedmetalpressingautomotivepartsmanufacturerwhichmanufacturesawiderangeofautomotivepartsandcomponents.Ithas163employeesandisbasedinCapeTown.

Duetothenatureofthemachinesandprocessesusedtomanufacturetheparts,technologicalsolutionswereveryexpensive,andfocushadtobeplacedonsystemsandprocedurestoreducetheelectricityusageandbringthemaximumdemandenergyusagedown.

EnERGY cOnSERVatIOn OppORtUnItIES IDEntIFIED Aprogrammeofenergyefficiency(andotherresourceefficiencyconsiderations)wasinitiatedinorderto:

1. Createsustainableenergyefficiencyawarenessamongstallemployees.

2. Reducethecompany’selectricitybillby20%.

BasedontheresultsofaSWOTanalysisandanIEEProjectassessment,opportunitiesforinterventionwereidentifiedasfollows:

Energy systems optimisation in an SMEpREcISIOn pRESS

Objective Description Implementation timeframe

Subproject 2:Switchingoff–hydro-boils,lights&motors(presses)whennotinuse

1months

Subproject 3:Compressedair–leaktagging,awareness&sustainablesystem

1months

IMplEMEntED SaVInGS MEaSURES

capital cost ZaR

Savings per annum

ZaR

payback Months

Environmental benefit per

annum

Switching-offelectricalequipment 793.20 37,699 0.25 55,000kWh

RepairingCompressedairleaks 0 28,566 - 62100kWh

total 793.20 R66,265 0.14 117 100 kWh

kEY FInDInGS:Byrepairingcompressedairleaks,atnocosttothecompany,androllingoutanawarenesscampaignatacostofonlyR793,energy savings of 117 100 kWHwithavalueofR 66,265 p/year wererealised.Theoverallpaybackperiodwas0.14months.

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Energy systems optimisation in an SME

SWItcH-OFF caMpaIGn Duringweekendsabaseloadwasmeasuredofaround30kW.Thiswasduetolightsandelectricalmachinerybeingleftonduringnon-productionhours.Automatictimerswereinstalledonthehydro-boilstoswitchthemoff.Foritemsthatcouldnotbeautomatedduetoflexibleoperatinghours,employeessuchasteamleadersandsupervisorsweregiventheresponsibilityofensuringmanualswitch-off.Awarenessposterswereplacednearoronallswitchesandmachines.Theswitchingoffprojecthasreducedtheelectricityusagebyanestimated55,000kWh,whichamountstoacostsavingofR37,699.

cOMpRESSED aIR Airleaksfrequentlyoccurduetheheavyvibrationofthemachineryduringtheproductionprocess.Inthissub-project,allairleaksweretaggedandapolicysetuptoensurethatairleaksarefixedeverymonth.Compressedairwasalsobeingusedtoblowfinishedpartsfromthemachineintothefinishedgoodsbins.Thiswasdoneforconvenienceandtheoperatorswereunawareofthehighcostsinvolvedincompressedairusage.Alternativemechanicalsolutionswereimplementedandtheoperators’awarenessestablished.Thishasproducedasavingof62100kWh,whichamountstoacostsavingofR28566.

cOnclUSIOn Asuccessfulandsustainableenergyefficiencycampaignrequiresallemployeestobeinvolvedandawareofthecostimplicationsonoperationalexpenses.ThelevelofcommitmentandsupportfromthemanagementatPrecisionPressmadethetaskeasier.PrecisionPresshasimproveditsenergyawarenessanditcanbeseeneverywhereinthefactory.ThisaddsvaluetotheclientandimprovesthecompetitivenessofPrecisionPress.

The inappropriate use of compressed air as it was used to blow parts out of the press. This cost the company an estimated R5000.00 annually

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