Solwatt® is a comprehensive programme designed by Solvay to implement an energy management system on large energy-intensive industrial sites.
The review phase follows two streams:
The technical stream, aiming at documenting in an action plan a minimum of 10% savings through a series of short payback incremental technical improvements.
The behavioural and management stream, aiming at fostering a lasting culture of energy management and savings on the site, with a detailed structure of KPIs and KAIs and a managerial action plan.
2. Energy savings is key for sustainability
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Source: EEA
Energy efficiency index
of European industry
Source: CEFIC
Greenhouse gas emissions
index of European chemicals
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3. Executive summary
• Solwatt is a comprehensive programme designed by Solvay to implement an energy
management system on large energy-intensive industrial sites.
• Solwatt complies with the EN16247-1&3 norm and most of the ISO50001:2011 norm.
• The review phase follows two streams:
- The technical stream, aiming at documenting in an action plan a minimum of 10% savings
through a series of short payback incremental improvements.
- The behavioural and management stream, aiming at fostering a lasting culture of energy
management and savings on the site, with a detailed structure of KPIs and KAIs.
• The implementation phase is run as follows:
- KPIs and KAIs are put in place by the site.
- Improvements requiring no capex (« quick wins ») are put in place by the site.
- Improvements requiring capex (« investments ») are put in place jointly with Solvay, who
provides the necessary capital through an operating lease. Savings are then shared between
the site and Solvay over a period of five years for each asset.
• The total programme takes five to eight years to be completed, and during that time
savings are typically shared 70% for the site and 30% for Solvay.
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5. Confidential
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sustainable chemistry
SOLVAY: Building a new
model of
9,940million net sales
29,400employees
117sites
56countries
15Major R&I
centers 2013 figures
25%
17%
Automotive
& aeronautics
11%
Energy
& environment
12%
Agro, feed
& food
10%
Building
&construction
6%
Electrical
& electronics
19%
Industrial
applications
Consumer goods
& healthcare
6. Solvay Energy Services: Best-in-class integrated
energy management
A breakthrough energy efficiency approach
Innovating solutions to finance energy efficiency projects
Transforming access to energy markets
Optimizing & developing energy production
Leverage unmatched track record in CO2 reduction
Developing renewable energies
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6
€ 800M
PURCHASE OF
ENERGY FOR THE
GROUP
1000MWe
OF COGENERATION
CAPACITY
14 M
CER/ERU
PRODUCTION
CAPACITY / YEAR
300
EMPLOYEES
13 COUNTRIES
7. Transforming access to energy markets
• Direct access to energy
markets
• Own dispatching unit
• Trading
• Demand management
team
• Dispatches 20% of French
gas industrial market
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8. Optimizing and developing energy
production on sites
• Solvay Energy Services manages about 1400 MW of
electricity production assets in Europe. We maximise the
flexibility and reactivity of electricity consumption and
production sites.
• 32 turbines in 6 countries : Argentina, Belgium, France,
Germany, Italy, Spain
• Design, construction,
maintenance and
operation of energy assets
• Internalizing outsource
assets
• Building new assets when
market/subsidies
opportunities
• Managing assets in a pool
to optimize their value
Enhancing natural hedge
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9. Innovating solutions to finance energy
efficiency projects
• Financing vehicle
developed with
and
• Small size projects (€ 5 to
50 m),
with payback period over 3
years
• Allowing quick
deployment
• Accelerating the energy
transition
First project at Solvay’s Rare Earth plant in La Rochelle (France)
(November 2013)
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10. Solwatt key figures*
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* at end 2014
70 industrial sites
reviewed
2 000 validated short and
medium term actions of which
40% already implemented
9 500 days spent
on industrial sites
3 200 days of
training
25 dedicated engineers, covering
all geographical areas
130 M€ of identified yearly
gains, of which 45 M€ (1/3)
without capex
The sum of all identified
Solwatt actions amounts
to a yearly reduction of
600 000 tonnes of CO2
The Solwatt team has
accumulated 210 years
of industrial experience
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12. 1
2
2 main
thrusts
Greenhouse gas emissions
Levers: energy efficiency, industrial
processes, clean technologies,
more renewables in energy
production and supply.
Sustainable Portfolio Management
(SPM), at the heart of strategy
Tool for analyzing the product portfolio
and its alignment with the requirements
and opportunities of sustainable
development.
-40%
Reduction of
Group carbon
emissions
intensity by
2025
88%
of the portfolio
analysed in 2015
Group presentation 2016
25/02/2016
Doing business, being responsible
13. To reduce your current fuel bill…
at constant kms driven
Technological gaps vs.
incremental improvements
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You can buy a new, fuel-
efficient car
Reduce gas unit costs
Remodel your car
(change tires, improve
engine…)
Learn how to drive it better
With you current car, you can :
For industrial operations
Technological breakthroughs
• Membrane electrolysis
• Low temperature heat recovery
( ex. ANTARES project of PI) …
Sourcing
Equipment
Operations
Incremental improvements on:
• Switch fuel
• Renegotiate contract
• Switch supplier
• …
• Replace inefficient pieces of
equipment (motors, pumps…)
• Recover energy via heat
integration …
• Review operational parameters
• Tighten operations management
• Change mindsets
• …
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14. A four-step process
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2 to 4 weeks 2 to 4 weeks0 to 10 weeks
Steerco 1 Steerco 2Kick off
1 to 2 months
Screening of the
current situation
Idea
Generation
Off phase Idea validation Action plan Follow-up
Step 1 Step 2 Step 3 Step 4
Preparation
Screening of the
current situation
Mindset &
Behaviors
Off phase
Definition of
KPIs/KAIs
EMS set up Follow-up
Step 1 Step 2 Step 3 Step 4
Behaviour and Management Stream
Technical Stream
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Key activities:
Final products:
• Diagnostic: identify losses and improvement areas
• Idea generation and prioritization: run brainstorming sessions
• Idea evaluation: create individual measure cards
• Jointly build the new KPIs structure related to energy and propose their integration in the existing structure
• Master plan: define options to meet potential challenges of the current energy system of the plant
• Short term implementation actions plan (technical + energy management) with associated financial consequences
• KPIs-KAIs structures
15. Success relies on the involvement of the site
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1
2
Full support from site Management up to the highest level
3
4
Involvement of the BU (Industrial, Technical & Process Managers,…) for technical and
political support (including the allocation of CAPEX for the implementation of Solwatt action
plan)
Committed site teams
• Availability of site engineers to Solwatt during the project phase
• WCM / BPMI involved in the project for EnMS workstream
• Participation of operators and shift leaders (during workshops, to answer the
questionnaire, to work on indicators and implement KAIs and quick wins)
Good communication site-wide, before, during and after the project
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16. Objective: reduce energy bill by 10% or more
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1
Create transparency
by delivering an
objective diagnosis of
the situation to identify
energy losses to
focus on
2
Foster creativity of
stakeholders at all levels
of the plant and beyond
by involving them all in
brainstorming sessions
to generate many ideas
to save energy
3
Follow a structured
progressive evaluation
process to filter out ideas
based on feasibility and
payback and build an action
plan for the plant
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17. From idea to asset
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Ideas are generated through
brainstorming sessions. The most
promising are kept as opportunities
Opportunities are screened through
an opportunity matrix and those
retained are validated.
After detailed study, opportunities
become actions without capex or
actions with capex. Actions are
validated and sequenced in an
action plan.
Required capex is provided by
Solvay. Once carried out, an
investment becomes an asset.
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18. 1/3 of savings require no capex
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Split of Savings according to payback
M€/y (%)
(34%)
(30%)
no CAPEX
(36%)
PB <3y
PB <1y
Cumulated CAPEX
Cumulatedsavings
1/3
1/3
1/3
Of savings
with PB >1y
and <3y
Of savings
with PB<1y
Of savings
with
immediate
PB
Illustration: Typical cumulated savings
vs. cumulated CAPEX curve
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19. A transformation project
towards sustainable results
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Rethinking energy
indicators (KPIs)
and reporting tools
and processes
The project of the
site, for the site
and by the site
An action plan aiming at
creating a culture of energy
efficiency in the plant
The project relies on 3
aspects to transform the
way the plant’s
employees see,
consume, manage
energy.
This ensures the
continuous efforts of
the plant to implement
actions and strive for
energy efficiency in their
daily job
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20. A KPI/KAI structure ensures sustainability of
excellence in energy management
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Distance to
excellence
Distance to
excellence
Site
manager
Unit
manager
(JS)
Production
Manager
(JF)
Shift
leader
Operator
Monthly Weekly Daily Shift Continuous
1
2
KAI tracking3
KAI tracking4
KAI5
Site
manager
cockpit
T
Time
Min.
Target
Max.
•3•2•1•3•2•1•3•2•1•3•2•1
Target
good
Target
bad
•3•2•1•3•2•1•3•2•1
Weeks
Target
•9•8•7•6•5•4•3•2•1
Target
bad
•3•2•1
Target
good
•3•2•1•3•2•1•3•2•1•3•2•1•3•2•1•3•2•1
21. KAIs are put in the hands of operators
KAIfor O2 excess and boiler
utilisation rate
function of soda ash load
Illustration: KAI implementation during SOLWATT Torrelavega
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23. If you lease a car…
instead of buying it
Energy Performance Contracts
for faster savings
You can get a better car
faster !
A fixed fee for having the car
available
A variable fee depending on
miles driven
Fuel costs will have no
impact on leasing costs
You will pay :
For industrial operations
Actions requiring capex can be implemented
faster, with immediate savings.
Typical 5-year profit sharing scheme is 70% for
the plant and 30%for Solvay.
Fixed fees
Profit
sharing
Maintenan-
ce and
operations
Costs are split between:
• Paid over 5 years
• Depends on total capex
• Asset is amortized and transferred
after 5 years.
• Paid over 5 years
• Depends on calculated
savings.
• Operation and maintenance is
delegated to plant
• Fee is paid to plant for the service
• Exceptional repair is cost of owner.
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24. Solution
▪ Preheat the condensate at the inlet of CC
with the heat of the liquid at the outlet of CC
(96°C).
▪ Installation of a new heat exchanger.
Impact
Investment: 100 k€ (+200 k€ for DT)
Cost of steam: €15,00/tonne
Steam saving: 2,74 tonne/hour
Yearly savings: 360 k€
Payback: 0,8 year
Current state
▪ Liquid at the outlet of CC is cooled down
with cooling water from 96°C to 35°C.
▪ Condensate at the inlet of CC is warmed up
in the CC from 60°C to 96°C. To ensure a
correct energy
balance a 2-step
flash tank is
required
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Heat exchanger example
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25. Electrical motors example
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Solution
▪ Replace 20 motors
▪ Install 5 new motors with VSD
▪ Install 5 VSDs on existing motors
▪ Replace 4 pumps with smaller models
Impact
Investment: 560 k€
Cost of electricity: P = €58,00/MWh
Savings: (Er - Em) x Tm x P
Er is previous hourly consumption
Em is new hourly consumption
Tm is hours per year
Yearly savings: 919 k€
Payback: 0,6 year
Current state
▪ Overall number of motors > 200 - including
Pumps, fans, mill and conveyor belt drives
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26. The profit sharing principle in an energy
performance contract
• Capex is provided by Solvay.
• Implementation is jointly
managed by the site and
Solvay.
• Profit-sharing is based on
calculated savings and paid
quarterly.
• Asset operation and
maintenance is delegated to
the site against a fee.
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-1 000
-500
0
500
1 000
1 500
0 1 2 3 4 5 6 7 8 9 10
Client
SES
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10
Client
SES
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28. Solwatt won the first price in the category “managerial innovation”
at the Global Solvay Innovation Awards last Oct 18 2013
SOLVAY ENERGY SERVICES
25 rue de Clichy – 75009 Paris – France
www.solvay.com
Pascal Guerin
Business Development Director
Tel + 33 426 190 125
Mob +33 642 076 512
pascal.guerin@solvay.com
Laurent Daoud
Senior Expert
Technology & Energy Efficiency
Tel + 33 1 5356 6188
Mob + 33 6 3019 5796
laurent.daoud@solvay.com
Your contacts
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