Managing Energy Costs Through Clean, Renewable Power · G *TMMK NUMMI Treasure Hunt Report 12/1/04...

MOVING FORWARD………Becoming a Green Power Leader:

Jim Cooke, AIA

National Facilities Operations Manager

Managing Energy Costs Through Clean, Renewable

Power

MOVING FORWARD…………..Managing Energy Costs Through Clean,

Renewable Power

Toyota’s Model for Energy Costs and Sustainability

•THE CONTEXT……..why we do what we do.

•THE ACCOMPLISHMENTS…..what we've done.

•THE TOOLS………….how we do it.

•GREEN POWER LEADERSHIP………case studies

•THE CHALLENGES…..where do we go from here.

MOVING FORWARD…………..THE CONTEXT…………….

Global Warming and Greenhouse Gases: there are believers and skeptics……..

• "Hogwash……………it's just science"• "Is it too late?"• "Can we afford not to take it seriously just in

case?• Can we do nothing?• If we look at the recent California legislation

(AB 1103) regarding GHG emissions, it may become a "business imperative".


MORE THAN JUST CARSToyota Motor Corporation Earth Charter (1992)§ Contribute towards a prosperous 21st century society§ Pursue environmental technologies§ Take action voluntarily§ Work in cooperation with society

“It is our actions today that determine the world of tomorrow. The result of those actions will directly affect the world that our children will inherit.”

"It is more than just good business for Toyota; it is the key tothe future of our industry and a necessity for a healthy future for people everywhere.”


Energy Use by Sector

Carbon Sources (Million Metric Tons)


Electric Energy Use by Facility Type

AIRF2%

HQ38%

PDC4%

ROB4%

ROB/PDC10%

TFSC3%

TLS10%

LEX3%

MDC1%

NAP*25%

* Includes CY 2001 Electric Energy Use for NAPCK

Business Operating Costs

Facilities 9%Technology 13%

People (Benefits), 24%

People (Salaries), 54%

Building Costs Over Time

Initial Cost - 10%Other Costs 5%

Building Operating Costs

85%

Toyota GHG Footprint

Travel and Commuting

12%Utility Useage18%

Parts Delivery Transportation

11%

Vehicle Delivery

Transportation59%

MOVING FORWARD…………..THE ACCOMPLISHMENTS…………….

• 4 LEED CERTIFIED PROJECTS - 3 Gold/1 Silver/5 more underway

• ZERO WASTE TO LANDFILL - at our California HQ Site

• PHOTOVOLTAICS - 536 kW system installed in 2004, 2.2MW installed in 2008 and other projects underconsideration

• WIND ENERGY - Renewable Energy Credits

• ENVIRONMENTAL FOOTPRINT - reduced 370,000 Tons CO2

• ENERGY COST SAVINGS - $13.8 million

• LIGHTING RETROFITS - HID to T-8/T-5 Fluorescent

• RAINWATER HARVESTNG, RECLAIMED WATER USE &

XERISCAPE LANDSCAPING - various locations


Energy Savings Impacts Overview•Invested $6.4 million in energy efficiency•Reduced energy consumption by 20.6%•$13.98 million in avoided energy costs

•2.94 million therms of natural gas•740,537,300 pounds of CO2

•369,500 pounds of SO2

•268,500 pounds of NOx

•2.8 MW renewable energy installations

MOVING FORWARD…………..THE TOOLS………………..

FIRM Program Process

MOVING FORWARD…………..THE TOOLS……………….

Web-based Real-time Monitoring• 68 Sites / Buildings

• 132 Electric Meters

• 34 Natural Gas Meters

• 3 Water Meters


Totals - Energy 2001 2002 2003 2004 2005Total kwh 89,164,804 86,294,746 85,161,403 84,725,923 83,229,861 Total therms 2,322,643 2,045,691 2,050,003 2,045,957 1,864,187 Total mmbtuElect 304,243 294,450 290,583 289,097 283,992 Total mmbtuGas 232,209 204,520 204,951 204,547 186,374 Total squarefeet 5,908,025 5,910,820 6,008,359 6,109,854 6,166,762 Total Energy Cost 8,657,742$ 9,662,479$ 10,389,062$ 9,635,197$ 9,474,290$ Total btu/sqft 90,801 84,412 82,361 80,735 76,348

Total mmbtu 536,452 498,970 495,534 493,644 470,366 % of Elect in mmbtu's 57% 59% 59% 59% 60% % of Gas in mmbtu's 43% 41% 41% 41% 40%

% Reduction from baseline (gross) 7.0% 7.6% 8.0% 12.3%

Total btu/sqft 90,801 84,412 82,361 80,735 76,348

% Reduction from baseline (net) 7.0% 9.3% 11.1% 15.9%

Savings (from baseline) 2001 2002 2003 2004 2005Total mmbtu 536,452 498,970 495,534 493,644 470,366 Annual mmbtu Saved 37,482 40,918 42,808 66,086 Cummulative mmbtu Saved 37,482 78,399 121,207 187,293 Annual Energy Cost per sqft 1.47$ 1.63$ 1.73$ 1.58$ 1.54$

Cummulative Cost Avoided -$ 731,252$ 1,795,774$ 2,997,063$ 4,790,559$ Cummulative kWh Saved 2,870,058 6,873,459 11,312,340 17,247,283

Cummulative Therms Saved 276,952 549,593 826,279 1,284,735

Additional Comparisons 2001 2002 2003 2004 2005Total Vehicles Processed - - 407,457 1,823,289 1,584,083 Total Parts Processed - - 38,465,534 160,145,886 163,309,108

Btu's per Vehicles Processed - - 1,216,163 270,744 296,933 Btu's per Parts Processed - - 12,883 3,082 2,880

Fisc

al Y

ear

Fisc

al Y

ear

Fisc

al Y

ear

• Set Baseline

Period

• Metrics Defined

• Data Collection

• Reporting

• Analysis

Natural Resource Tracking Database


Site Name Current EUI Target EUI Targeted %

ReductionTarget Year

Capital Cost Measure Type

National Headquarters 199,532 187,172 6.2% FY07 $0 Kaizen ControlsTAC 172,525 169,777 1.6% FY07 $0 Kaizen ControlsCedar Rapids CSC 139,938 125,437 10.4% FY07 $0 Kaizen ControlsSouth Campus A 118,000 114,888 2.6% FY07 $0 Kaizen ControlsSouth Campus B 121,591 118,915 2.2% FY07 $0 Kaizen ControlsDenver ROB 84,304 80,522 4.5% FY07 $0 Kaizen ControlsCentral Atlantic Toyota Distributors 57,880 56,601 2.2% FY07 $0 Kaizen ControlsNAPCC Ontario 35,283 32,738 7.2% FY07 $0 Kaizen ControlsBoston ROB/PDC 50,193 45,341 9.7% FY07 $177,800 LightingChicago ROB/PDC 43,329 35,758 17.5% FY07 $250,000 LightingCincinnati ROB/PDC 40,216 36,887 8.3% FY07 $79,000 LightingNAPCK Kentucky 33,250 28,575 16.4% FY07 $275,000 LightingNew York ROB/PDC 69,426 60,747 12.5% FY07 ? LightingTLS Georgetown 228,754 199,782 12.7% FY07 $113,800 LightingAirFlite - Main Office 133,385 83,222 37.6% FY07-08 $0 Kaizen ControlsTLS Fremont 178,238 155,459 12.8% FY07-08 $181,500 LightingTLS Princeton 173,092 132,239 23.6% FY07-08 $280,200 LightingPortland PDC 53,214 50,805 4.5% FY08 $34,000 HVACSan Francisco ROB/PDC 49,512 47,000 5.1% FY08 $0 Kaizen ControlsAirFlite - Main Hanger 22,796 15,628 31.4% FY08 $18,000 LightingMDC Annex 11,171 6,241 44.1% FY08 $58,000 LightingMDC Main 34,915 21,218 39.2% FY08 $17,000 LightingTLS Georgetown 228,754 185,291 19.0% FY08 $100,000 LightingTLS Princeton 173,092 122,895 29.0% > FY08 LightingDining Center 264,947 260,000 5.0% > FY08 Upgrade BASLexus HQ 158,321 121,000 23.6% > FY08 Upgrade BASService Garage 24,099 22,982 4.6% > FY08 Upgrade BASPC North 159,608 114,538 28.2% > FY08 Upgrade BASPC South 146,347 101,829 30.4% > FY08 Upgrade BASLA PDC 49,106 44,176 10.0% ? Lighting

Site Specific Energy Reduction Targets


Air Compressors1%

Space Cooling12%

Space Heating4%

Battery Charging11%

Water Heating2%

Misc10%

Dining2%

• Assemble THunt Team

• Analyze Energy Use and Cost

• Investigate Where and When Energy is Used

• Estimate Potential Savings

• Report on Findings

• Implement Measures

Kaizen the Process

Treasure Hunts: Where and How is Electricity Used

Lighting

58%

9 10 11 12 1 2 3 4 5 6 Distribute Sheets to Participants

Tracking Add Kaizens to Database

of Kaizen Prioritize & Schedule T/H Kaizens

Activities Request Kaizen Status Update

For This Project

Completes Status & Return

NA will Follow Up to Past Treasure Hunt

NA will Schedule Treasure Hunts at other NAMC’s.

2004 2005

* TMMNA - FAC will do a 6 – 9 Months follow up of the Treasure Hunting results through the Kaizen Database and an on site review.

NUMMI Energy Treasure Hunt Report November, 2004NUMMI Energy Treasure Hunt Report November, 2004

Results

Focus Kaizens Identified in Each Shop: : Big Savings

-TMMNA-FAC Responsibility - NAMC Responsibility

Planned ImprovementsTo Treasure Hunt Process

Area Current Situation Kaizen

Savings* MMBTU/Unit

Implement Payback

NPP Paint

RTO Heat Recovery

1

Utilizes a NG fired Hot Water generator to heat water for paint process systems.

Install a condensing economizer on the RTO exhaust stacks to recover sensible & latent heat.

$ 533,917 0.0247 MMBTU/Veh

$ 900,000 1.69 yrs

2

Anti – Chip Booths

Reduce the size of Anti – Chip Booth and turn off 1 supply & exhaust fan.

$ 180,008 .0496 MMBTU/Veh

$ 25,000 0.14 yr

Truck Paint

Anti-Chip Booth

Heat Exchanger

3

Pre-Treatment system is the only user of steam in Paint shop.

Replace Hot Water bath Steam Heat Exchanger with direct fired immersion heaters.

$ 114,613 0.0416 MMBTU/Veh

$ 170,404 1.49 yrs

Stamping

Hydraulic Vane Pumps

4

Fixed displacement pump provides constant flow and pressure.

Install variable displacement pump that only delivers flow on demand.

$ 16,955

0.0097 MMBTU/Veh

$ 8,960 0.53 yr

Plastics

Power Wash

5

Plastics using the Power Wash for cleaning bumpers before painting.

Shut down the Power Wash system. Wipe bumpers manually.

$217,527 0.0179 MMBTU/Veh $ 140,000 0.0 yr

Body Weld

Weld Water Pumps

6

(4) Weld Water Pumps left on during Non- Production Weekends.

Reduce the Number of Passenger Weld Water Pumps on Weekends.

$43,313 0.0036 MMBTU/Veh $30,000

0.69 yr

PurposePurpose

ProcedureProcedure

Participants: From NUMMI 22, Other NAMC’s NA-PE-FAC 6, TMMK 6, TMMI 1, TMMC 2, NA-PE-Paint 1, Outside 4 When: November 14th – 16th, 2004How: Divided into 5 groups - Body Weld, Passenger Paint, Truck Paint, Stamping, and Plastics.

Verified Kaizen Database status in ( 5 ) Shops: B/W, Passenger Paint, Truck Paint, Stamping, and Plastics.Investigated Energy Use during Non-Prod. (weekend), Monday Start Up, Production, and Lunch.Estimated Energy Savings, Cost Savings, and Implementation Costs.Presented results to NUMMI Management.

Treasure Hunt ResultsTreasure Hunt Results

Total Potential Savings = $ 4,067,405 / yr Total Potential Savings = $ 4,067,405 /

yr

New Technologies and Best Practices Implemented at NUMMINew Technologies and Best Practices Implemented at NUMMI

Ø 1. Elimination of Power Wash process in Plastics under study – Recommended during Treasure Hunt. Ø 2. Building Lighting tied to Production Lines.Ø 3. TMMNA Treasure Hunt group installed new 28 Watt, Hy-Bay Fluorescent Lighting in Plastics as Demo.

Future Activities

• TMMNA will update NUMMI’s Kaizen Database for T - N. Passenger Paint, Truck Paint, W – Body Weld, P - Stamping and R - Plastics. ( Complete )

• Simple Kaizens such as Motion Sensors were implemented during Treasure Hunt. • Use “Fix-It” Tags to identify problems for maintenance. ( Air Leaks, Broken Lamps, etc.) • T/H participants attend shop turnover meetings and explain results plus its benefits.

*CAPTIN

Bodine, Troy

Stamping Plastics Body Weld Truck Paint Passenger Paint TotalPotential Savings $91,585 $386,737 $376,120 $1,356,781 $1,856,183 $4,067,405

% of Yearly Cost 14.78% 6.26% 6.16% 4.85% 4.42% 16%

Kaizens Found 8 13 27 27 43 118

NUMMI November 2004 Treasure Hunt Opportunities

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Stamping Plastics Body Weld Truck Paint Passenger Paint Total0

20

40

60

80

100

120

140

# of K

aizen

s

Potential Savings Kaizens Found

MGRORIG

*TMMK

NUMMI Treasure Hunt Report 12/1/04

USE USE aall of Toyota’s Energy Experienceand Investigative Skills.

To To IDENTIFYIDENTIFY Cost Saving Energy Ideas and

To INCREASE Team MemberAwareness and Enthusiasm forEnergy Reduction.

Projected

$91,585$386,737

$376,120

$1,356,781

$1,856,183

$4,067,405

5.20

4.0

4.834.91

0.3110.30.306

3.63.8

44.24.44.64.8

55.2

FY'03 FY'04 FY'05 FY'05

MM

BTU/

Veh

00.10.20.30.40.50.60.70.8

CO2

MTo

ns/V

eh

MMBTU/Veh Mton/Veh

5.00 Target

*NUMMI

TMMI ?

1.20

MMBTU

T/H

Kaizens

< % of Each Shop’s

Annual Energy Cost

MOVING FORWARD…………..Real-time Monitoring Systems:

Diagnosing Building System Performance

Systems shutdown following VAV audit

Building purge following new furniture installationSystems shutdown

following VAV audit


Selling the Value• Developed a Systematic

Approach to View all Efficiency Projects

• Holistic Look at all Aspects of a Project

• Each Project Stands on Its Own

• Comparative Decisions

on Competing Projects

Project Justification

MOVING FORWARD…………..THE TOOLS………………..Defining Financial Justification

Energy Project Evolution

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000

$ Savings

Cos

t

10 to 100% ROI Range

>100% ROI

<10% ROI


High Cost/Small Savings High Cost/Big Savings

Low Cost/Small Savings Low Cost/Big Savings

10% ROI

> 10% ROI

CO

ST

ENERGY SAVINGS (Value: quantitative)

Project Approval Weighting System


Measurement & Verification

Validating Performance

• Developed M&V Plan Approach

• Adopted IPMVP Standard

• Created Formal Reporting Format

• Piloted M&V Protocol

• Implemented M&V for All Capital Projects

Green Power Leadership –Case Studies


•Renewable Energy Certificates

Solar Photovoltaics

Renewable Energy Certificates (RECs)

•Washington, DC office•Purchase began in 2005•396,000 kWh per year

• 100% of annual electricity use•LEED Silver project•Five-year contract

• Purchase exceeds LEED requirements by three years•RECs from a wind farm in Iowa

• Located close to another Toyota facility•Vendor was 3 Phases Energy (now 3Degrees Renewables)


•Aggregated Purchase in June 2008• Two new LEED Certified facilities

– Ft. Lauderdale, FL– Phoenix, AZ

• Additional purchases planned for Southern California

•Amount• 200 MWh/year for each facility• Equal to 100% electricity use

•Contract Length: Two years•Resources

• Year 1: Landfill Gas– From Monterey Regional Waste Management District

• Year 2: Woody Biomass– From Loyalton, CA plant

• Green-e certified

•Vendor: 3Degrees Renewables


Renewable Energy Certificates (RECs)

•Torrance, CA• Toyota Motor Sales, U.S.A., Headquarters

•Installed in 2003•LEED Silver building

• Largest LEED Silver project at the time

•Vendor: PowerLight (now SunPower)


Photovoltaics – Project 1

•System Size• 536 kW• Spread over five roofs

•Modules• Number: 3,300• Type: Siemens SP75

•Inverters• Number: 5• Type: Xantrex PV 100-208

•Mounting System• PowerLight’s “PowerGuard”

– Flat-mount, tongue-and-groove

•Production• ~650,000 kWh/year



•Purchase Type• Direct purchase• Total capital cost = $2.9 Million

•Incentives• CA State incentive: $1.45 Million• Federal incentives (30% tax credit, MACRS)

•Annual Savings• $100,600 in electricity bills• 571,350 lbs. CO2

•Operations and Maintenance• First five years included• Currently negotiating long-term O&M contract

•Production to date• 3,221 MWh


Photovoltaics – Project 1Financial Details

OutputPurchased and Produced Power

300

400

500

600

700

800

900

Aug-0

3

Nov-

03

Feb-0

4

May

-04

Aug-0

4

Nov-

04

Feb-0

5

May

-05

Aug-0

5

Nov-

05

Feb-0

6

May

-06

Aug-0

6

Nov-

06

Feb-0

7

May

-07

Aug-0

7

Nov-

07

Feb-0

8

May

-08

Month-Year

Mo

nth

ly E

lect

rici

ty P

urc

hase

(Meg

aw

att

-ho

urs

)

PV-Produced Energy

Purchased Energy




Toyota M otor Sales Installs Largest Single Rooftop Solar System in North Am erica

Toyota M otor Corporation, the m anufacturer of the w orld ’s top-selling hybrid autom obile, continues to take a strong stance on environm ental responsibility. During the past two decades, the com pany has im plem ented num erous in itiatives a im ed at encouraging custom ers and em ployees alike to be m indful of their environm ental im pacts. In 2008, Toyota Motor Sales, U.S.A . com pleted the largest sing le-rooftop solar installation in North America, located at the com pany ’s Ontario, California parts and d istribution center. W ith th is groundbreaking clean energy system , incorporating today ’s highest-efficiency solar photovolta ic (PV) panels from SunPower, Toyota expects to reduce its carbon em issions by approximately four m illion pounds each year.


•Ontario, CA• North American Parts Center California

•Installation Happening in 2008• Construction began April 2008• Final commissioning scheduled for early October 2008

•Vendor is SunPower•Largest Single-Roof Corporate System in North America



Technical Details•System Size

• 2.3 MW• 241,400 ft2• Size of over four football fields

•Modules• Number: 10,494• Type: SunPower 215W & 217W

•Inverters• Number: 8• Type: Xantrex 250 kW

•Mounting System• SunPower T10 Mounting System

(ballasted and attached)•Production

• Over 3,400,000 kWh/year• Over 58% of facility’s electricity use



•Purchase Type• Power Purchase Agreement (PPA)

– 20-year contract• Third-Party financing with GE Financial

•Incentives• Self-Generation Incentive Program (SGIP)

– $2.50/W = $2.49 Million• California Solar Initiative (CSI)

– $0.34/kWh for five years = $2.96 Million• Federal incentives (30% tax credit, MACRS)

•Annual Savings• $360,000 in electricity bills• 2,400,000 lbs. CO2

•Operations and Maintenance• Included in PPA Contract


Photovoltaics – Project 2Financial Details

OutputDaily Total Building Usage and PV Production

0

5,000

10,000

15,000

20,000

25,000

30,000

8/2

2/2

008

8/2

4/2

008

8/2

6/2

008

8/2

8/2

008

8/3

0/2

008

9/1

/2008

9/3

/2008

9/5

/2008

9/7

/2008

9/9

/2008

9/1

1/2

008

9/1

3/2

008

9/1

5/2

008

9/1

7/2

008

9/1

9/2

008

9/2

1/2

008

Date

En

erg

y (

kil

ow

att

-ho

urs

)

PV Production

Building Usage



PV Systems Comparison (Over 40 Years)

PowerTilt mount(10% tilt)

(7.6% more output)

PowerGuard roofing tile(flat)

Mounting System

CO2 Offset

Power Production(% of Facility Use)

Modules(Efficiency)

Size

49,725 tons10,135 tons

123,540 MWh(58%)

25,180 MWh(9%)

SunPower SPR-220(16.4 watts/ft2)

PowerLight PL-SP-75(10.1 watts/ft2)

2,282 kW536 kW

Ontario, CASouth Campus


Hedge Forecast•PPA price is at parity to utility electricity price for year one.•Toyota’s forecast used the historical rate of electricity costs increase of 0.4% per year.

$33,600

$16,100

$9,100

$0

Savings to Toyota (Year 2)

$1,958,121

$815,600

$436,500

$0

Savings to Toyota(Over 10 Years)

10%

5%

3%

0.4%

Utility Price of ElectricityEscalation Rate



Future Efforts•Technologies Under Consideration– Solar photovoltaics– Solar thermal air heating– Solar hot water– Small wind– Large wind– Geothermal– Fuel cells– Hopefully many more….

MOVING FORWARD………THE CHALLENGES…..

Small Wind

Solar Thermal Wall

Options for Securing Energy Supplies

Fuel CellsWind

PV

PV

PV

Power Purchase AgreementsSolar ThermalFortune 500 Best Energy Practices

MOVING FORWARD……….THE CHALLENGES……………..

Sustainability - The Business Case for Going "Green"

• Operating Costs - Energy-Star buildings utility bills are 40% lower than average office building costs

• Employee Health and Productivity - translating into bottom-line savings for employees - nationally $20-160 billion/year

• Strategic value-add - impact on image, community standing and corporate citizenship - enhancing the "Brand"

• Business Imperative - recent California legislation regarding GHG emissions. Other cities and States have passed and are considering passing similar legislation.

Questions/Contact Information

•Jim Cooke, AIA•National Facilities Operations Manager•Toyota Motor Sales, U.S.A., Inc.•(615) 519-2359•[email protected]

MOVING FORWARD………

Managing Energy Costs Through Clean, Renewable Power · G *TMMK NUMMI Treasure Hunt Report 12/1/04...

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Transcript of Managing Energy Costs Through Clean, Renewable Power · G *TMMK NUMMI Treasure Hunt Report 12/1/04...