2013-02-11 - ABB’s industrial energy efficiency solutions are delivering huge and sustainable energy savings to industry.
By ABB Communications
ABB has designed a new approach to improving energy efﬁciency in industry, helping customers to use electrical power effectively and to increase industrial productivity in a sustainable way.
Using this approach ABB has identiﬁed energy savings of 5 to 20 percent across a wide range of industries and utilities including compressed air and gases, refrigeration and HVAC, cooling water systems, life sciences, iron and steel, minerals and mining, pulp and paper, power generation, food and beverage and industrial chemicals.
ABB has structured the approach to overcome the barriers that prevent companies from implementing energy efficiency measures and harnessing the huge benefits that these measures can deliver.
What are these barriers and how does ABB help companies to overcome them?
Overcoming risk aversion
ABB assumes the performance risk for the solutions it implements and guarantees the economic outcome of energy projects to assure the customer of a measureable improvement in EBITDA (earnings before interest, taxes, depreciation and amortization).
Bundling multiple small projects into one big project
Energy savings are rarely concentrated in a few projects, measures or locations, but are spread across many discrete interventions. ABB bundles these multiple projects and interventions into one big major project, thereby simplifying the screening and project execution processes.
Plugging the capability gap
It is rare to find companies that have the ability to execute their own energy efficiency projects. ABB possesses this expertise and has the teams, methodologies, tools and software to execute these projects in a live and complex plant environment.
Finding the finance
If funding is not available ABB will finance energy saving projects. Financing is typically over five years and through a shared saving model, thereby overcoming the customer’s shortage of capital for this type of project.
Measurement and verification
ABB possesses world leading measurement technologies and a sophisticated energy management system that record and report energy and production data in real time – providing incontrovertible data on which to base performance-related remuneration.
ABB’s program is one of partnership in the delivery of real energy savings for customers.
ABB’s approach is one of partnership with the customer. The approach is flexible and aims to implement a manageable number of projects that will deliver significant energy savings.
ABB first conducts an initial site appraisal to produce a portfolio of energy saving opportunities. The appraisal typically leads to the identification of 5 to 20 percent savings in total energy consumption. After a site performance contract is signed, ABB implements those improvements that the customer has agreed to.
Where ABB’s approach differs from most is that following implementation, ABB remains involved during the service period, when the savings are delivered. The shared savings contract model ensures that long term goals are aligned; ABB and the customer are equally interested in the delivery of real energy savings over the long term.
One example of many at which ABB’s approach has led to huge energy savings is an ArcelorMittal steel mill in France, where ABB has identified annual energy savings of $13.5 million. The measures identified include:
- 53 individual energy saving opportunities identified
- Estimated electrical savings $3.4 - $5.8 million a year
- Gas savings of up to $8.1 million a year
- 3 zero capital investment opportunities agreed with energy savings of $162,000 a year and a payback period of less than 1 year
- 4 project specifications developed with energy savings of $2.6 million a year, and with an average payback time of 1 year
Click here to learn more about ABB’s approach to saving energy in industry.
Click here to learn how ABB delivered substantial energy savings for an ArcelorMittal plant in Europe.
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