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1、2_Title SlideTuesday,April 2,20243:30 5:30 pm ETSite-Level Industrial Decarbonization:Industrial GHG Emission Reduction AssessmentsAgendaWelcome and introductionsOverview of workshop and objectivesWorking group background and lessons learnedIdentifying emissions reduction measuresEvaluating and prio
2、ritizing emissions reduction measures:group activities and discussionsDeparting thoughtsIntroductions5 minutes to go around your tableNameOrganization/roleWhere you traveled fromHow many times have you been to Summit?What are you hoping to get out of this week?Workshop ObjectivesDiscuss lessons lear
3、ned from the BCC Working Group GHG Emission Reduction Audits and Assessments,and share best practicesShare recommendations on how a GHG Emission Reduction assessment should be conductedBasics of identifying emissions reduction measures within an industrial site,and how to identify,quantify,and prior
4、itize these measures.Walk-throughs on the challenges of identifying and implementing ERMsSmall-group breakouts focused on Milestone 3 of the Emission Reduction Planning FrameworkPlease share your insights and lessons learned from your decarbonization efforts in this workshop!Working Group Background
5、 and Lessons LearnedWorking Group Goals and OutcomesGoals1.Review the Emissions Reduction Planning framework and the importance of dedicated efforts to identify GHG emissions reduction measures2.Develop scope and a structure/curriculum for GHG Emission Reduction Assessment in-plant training,creating
6、 a“how to”resource for partners to conduct such an assessmentOver time likely to harmonize with and reference ASME standard EA-10,development underway3.Assemble a toolkit of resources to support partners in doing their own assessments,drawing from existing tools,and identifying any gaps where tools
7、may be neededResource DevelopmentHighlight Success StoriesPeer ExchangeOutcomes Working Group Focus on Identifying and Evaluating/Prioritizing MeasuresReview of Lessons LearnedSession 1Conducting enough energy and emission assessments involves leveraging resourcesUltimately to include non-energy emi
8、ssion sourcesSessions 2/3Facility-level v.Portfolio-level AssessmentsProcess heat as a major SEUSGEs vs SEUsFocus on systems-level improvementBarriers to quantifying SEUsEffective ERM identificationSessions 4/5 Concept of marginal cost of abatement Internal price of carbon IACs and LCAC tool Capital
9、 assessment planning for ERMs(longer payback vs internal cost of carbon)Building the case for ERMs and quantifying non-energy benefits Sessions 6/7Implementation challenges includestaff capacity,capital funding,modification ofpower infrastructure,and project approvals.Risks may include supply chain
10、issues and large-scale projects with higher upfront costs+extended downtimeInclude fugitive emissionsLook ahead to scenario planningTransitioning to full emissions reduction assessmentsEmissions Reduction Assessments:RecommendationsReview of the Industrial Framework for Emissions Reduction Planning(
11、ERP)Milestone 3:Assess MeasuresGHG Emissions Reduction Assessments:Focus assessments on large GHG emittersSome may involve traditional energy project optionsOthers may be more difficult to decarbonizeIdentify and evaluate potential measures(ERMs)based on impacts to energy use,operations,and producti
12、onInclude additional efficiency,safety,productivity,product quality,and waste reduction improvementsPrioritize ERMs based on reduction impacts,economic/financial analysis,and other factorsLimitations of Energy Assessments vs.Emissions Reduction AssessmentsScope CriteriaTraditional Energy Assessments
13、Emissions Reduction AssessmentEvaluation of fugitive and process ERMsNoYesPayback periods/ROIUnder 2-3 years for most ERMs,focusing on energy cost savingsMay allow 5 or more years for high impact ERMs,and may consider internal cost of carbon and/or indirect benefits of projectsAsset Lifetimes and Re
14、placement SchedulesMay be considered if known by plant staffConsiders equipment slated for replacement and impact of new fossil-fueled investments on lifetime basis(alignment with decarb pathway)Impact of renewables purchasing/electrificationMay consider electrification in terms of energy cost savin
15、gs,with current grid emissions factorsConsiders value of future emissions reduction as grid becomes greener,as well as energy costs savings over timeSequencing of ERMsNoConsiders how phasing of ERMs affects impacts(e.g.efficiency may limit need for renewables and/or free up capacity to electrify)Thi
16、s is what you want to be building towards!So,should you stop doing traditional energy assessments?No but you should be prepared to address their limitationsSome Common“Traditional”Energy Assessment FrameworksDOE In Plant TrainingsDOE Industrial Assessment Center(IACs)Third party/vendorsAir compresso
17、r/other vendorsState/utility-funded organizationsOthersIn-house staffTreasure huntsReplication of best practicesOther initiativesWorking group participants indicated that they plan on using all the above to identify enough ERMs to decarbonizeTips for Building on Traditional Energy Assessment Framewo
18、rksBefore:Do your homeworkCombine site-level assessments with assessment of portfolio-level policies and assumptionsKnow your organizations plans to buy renewable energy and/or develop onsite renewablesUnderstand expected lifetimes for major process equipment(existing and new!)and upcoming replaceme
19、ntsDetermine your organizations stance on the expected pace of grid-greeningDuring:Expand the scopeConsider measures beyond energy efficiency Assess sources of non-energy emissionsIf working with a third-party,ask what they can do to expand the scopeAfter:Assess results differentlyDont rule out long
20、er payback projects,especially high-impact ERMs with mediocre NPV/payback Put an internal price on emissions-what value does your organization place on achieving emissions reduction goals?Do not assess ERMs in a vacuum-incorporate results into scenarios that capture interrelated ERMsIdentifying Emis
21、sions Reduction MeasuresFacility-Level GHG Emissions Reduction AssessmentsHosted by the highest emitting facility or multiple sitesScope of assessment likely to include:Analysis of site-level emissions,energy use,and utility costsEvaluation of SGEsIdentifying priority scope 1 and 2 emitters,includin
22、g reduction measures for fugitive and process emissionsPotential for primary data collection to confirm emitters Identification of potential emissions reduction options,focusing on SGEs,following staging order of priority:1.Energy efficiency2.Potential for evaluation of electrification,low carbon fu
23、els,carbon captureSummary of recommended emissions reduction options,Structured around multi-day on-site evaluation such as In-Plant Training,using MEASUR toolBenefits Of Dedicated Emissions Reduction AssessmentsWorking group participants indicated the advantages of dedicated emissions reduction ass
24、essments:Recommendations that give a clear line of sight on GHG reductions,and include balancing options,costs,time,benefits,etc.Quantifies carbon reductions potential,and allows you to prioritize impactful carbon projectsConfidence that short-term energy-saving measures arent preventing your organi
25、zation from enacting longer-term,deep decarbonization measures.Ensures short-term actions are aligned with long-term commitments and assurance of a consistently staffed team.Evaluating and Prioritizing ERMsConsiderations for Evaluating Emissions Reduction MeasuresExisting approaches involve analyzin
26、g the costs,benefits and risks associated with each ERM,and preparation of capital requests for attractive ROI optionsSimple cost analysis may dissuade implementation of ERMs with strong decarbonization benefits,due to lack of strong investment return,and doesnt consider the value of emissions reduc
27、tionEventual evaluation of ERMs may evolve to be longer term and/or place value on carbon reduction(i.e.internal cost of carbon)Sequencing of ERMs may become complexBenefits related to emissions reduction may be affected by the implementation of other ERMsoTraditional energy efficiency projects ahea
28、d of longer term,higher cost,deeper decarbonization options such as renewable fuels or electrificationoRenewables purchasing impact on market-based emissions factors,for Scope 2 options such as electrificationoAsset replacements may be scheduled which may prevent ERMs from providing a full return on
29、 investment but may provide the opportunity for ERMs as upgrades.Group Exercises and DiscussionsoAs a group,you will work through a set of scenarios based on evaluating the results of hypothetical energy/emissions assessments.oYoull receive a set of recommendations identified during an assessment,pe
30、rform some basic analysis,and recommend projects for completion based on predetermined criteria.oYou will explore three different scenarios in total,each designed to demonstrate how different approaches to assessments can lead to different outcomesoBetween each scenario,your facilitator will lead a
31、short discussion about your results,your decisions,and your real-world experiences related to facility energy/emissions assessments.oWell get brief report-outs from a few groups in between each scenario.Your team has been presented with the results from a traditional energy assessment.Youve been ask
32、ed to recommend a list of which projects corporate should consider funding for implementation.1.Select leading ERMs for recommended funding based on a standard 3-year payback requirement.What did you recommend(or not)and why?2.Compare emissions reduction results to your stated goalHow close are you?
33、What would be needed to achieve the goal?Scenario 1Seeing that your expected progress remains well off pace from your GHG goal,your CFO is exploring additional options for how to drive further progress.Your CFO would only like to institute one:Option 1$1M annual capital carveout for projects that ha
34、ve paybacks of up to 10 yearsOption 2 Institute an internal cost of carbon credit of$50/MTCO2e for all projects1.Review the list and provide a recommendation for which option to pursueWhy did you pick that option?How did it(or didnt it)change your recommended projects?2.Compare emissions reduction r
35、esults to your stated goalHow close are you?What would be needed to achieve the goal?Scenario 2You have now asked your energy assessment team to broaden the scope to include non-energy GHG emissions,to evaluate electrification and renewable options,and to consider upcoming asset replacements of some
36、 HVAC units and a paint oven.Youre also asking them to consider projected greening of the grid in emissions estimates.They provided a new set of measures for you:1.Review the list and provide a recommendation for which measures to prioritizeWhat did you recommend(or not)and why?2.Compare emissions r
37、eduction results to your stated goalHow close are you?What would be needed to achieve goal?Scenario 3Greening of the Grid Tool:NREL Cambium DatasetProvides levelized emissions factors,by region,with key inputs including start year,evaluation period,and scenarioEarliest start year is 2025,Mid-case sc
38、enario is the base caseCan be used to evaluate the impact of the greening of the grid over the life of equipment(e.g.,10-year period)For this workshop,we assume ERCOT(Texas)region,10-year evaluation period,2025 start year for current projects implemented,assumed 2027 start year for projects implemen
39、ted at end of life Specify the emission:CO2,CH4,N2O,or CO2-equivalent(CO2e,which combines all three per the GWP values selected below).Default is CO2.Specify the emission stage:Direct combustion,precombustion processes(fuel extraction,processing,and transport),or the combination of the two.Default i
40、s combustion.Enter the year that the intervention being studied would take effect.Start year must be between 2025 and 2050.Default is 2025.Enter the expected lifetime or analysis period of the intervention being studied.Default is 20.Enter 0 for a simple average over the timespan.Enter a positive va
41、lue for a damages-equivalent levelization that places greater weight on near-term years.Default is 0.03.Specify which scenario(i.e.,different potential futures)to draw from.See the Scenario Definitions tab for more information.Specify what global warming potential values to use.Default is 100-year f
42、rom the IPCCs AR6,and custom values can be entered on the GWP tab.Specify the location of the intervention.Most electrical consumption would be end-use,whereas large scale generators would typically be at the busbar.Default is end-use.Values beyond 2050 are estimated with the 2050 values.Analysts ar
43、e advised to use caution when selecting values that place significant weight on 2050(e.g.,greater than 50%136.9140.7279.6174.1280.2170.8258.5176.8151.048.6183.2295.1203.0299.6252.5214.9Long-run Marginal Emission Rates for ElectricityFrom the 2023 Cambium dataset Released February 2024Levelized Long-
44、run Marginal Emission Rates(Annual)Units:kg of CO2e per MWh at the point of end-useSPP South CAISOERCOTFRCCISONEMISO CentralMISO NorthMISO SouthNorthern Grid EastNorthern Grid SouthNorthern Grid WestNYISOPJM EastPJM WestSERTPSPP NorthCO2e Combustion 2025 10 0 Mid-case 100-year(AR6)End-use 0.00 Evalu
45、ation period(years)Start yearEmissionUser InputsEmission stageDiscount rate(real)LocationGlobal Warming PotentialsScenario2050 Fraction110.4117.5CAISOERCOT2027 Start YearGroup DiscussionSummary:Principles of Conducting a Facility-Level GHG Emissions Reduction AssessmentSelect sites based on an analy
46、sis of site-level emissions,energy use,utility costs,and other relevant considerationsEvaluate site-level significant greenhouse gas emitters(SGEs)and review priority Scope 1 and 2 emitters,with potential for primary data collection to confirm emittersIdentification of potential emissions reduction
47、measure(ERM)options,focusing on SGEs.Additional considerations:Follow priority of energy efficiency with additional evaluation of electrification options,discussion of low carbon fuels or CCUS for future considerationConsider non-energy emissions(process,fugitive)Consideration of upcoming corporate
48、decisions including asset replacements,renewables purchasing,and capital set-asides or internal price of carbon which may benefit potential measuresConsider the broader context:the lifetime of assets,the greening of the gridAssess projects with a broader lensAccount for interactions with ERMs in oth
49、er pillarsConsider longer paybacks,the value of emissions reduction(internal carbon price)PillarBenefitsEnergy EfficiencyMost cost-effective option for near-term emissions reduction potentialEfficiency opportunities always existRenewable EnergyLeverage advancements in low-carbon electricity from bot
50、h grid and onsite clean generation sourcesLow Carbon Fuels,Feedstock and Energy SourcesReduce combustion related emissions from industrial processesCarbon Capture and SequestrationCapture generated CO2at the source and apply to value added products or store on long-term basisDeparting Thoughts?Summa
51、ry:Tips for Planning for Productive Assessments of Individual SitesEffective planning may involve an initial proposal with refinements as more information is collected and more critical thinkingSelecting the facilityRanking of energy use/spend,emissions,significant uses,or other factorsStrategic imp
52、ortance of facilityTime since last assessmentAvailability of key plant staff/support from plant leadershipOther factorsDetermining the scope of the assessmentEntire facilitySpecific end-uses(large motor drives,and significant year-round fuel use can be indicators)Implementation of energy management
53、systemCombination of aboveTiming and duration of eventUsually determined by the cost of event and availability of staff,one to five days is the typical rangeMay be influenced by production periods/outages or seasonal factorsTreasure hunts usually target a combination of downtime and uptimeDay 0 visi
54、ts are often effective in identifying opportunities ahead of trainingsIndications of SGEs important to indicate need for diagnostic toolsEquipment with dynamic loading(e.g.air compressors,machinery,etc.)may require data loggersEquipment with more static loading(process heating,constant speed motors,
55、etc.)may be initially evaluated with nameplate or other informationTradeoffs between more granular information and analysis time(more certainty vs more productivity)Homework ahead of the eventEnergy spend and consumption,electric and fuelGranular data on electric use,non-seasonal fuel usePreliminary
56、 indications of significant greenhouse gas emitters(SGEs),and availability of process-level dataRequest for diagnostic tools(if needed),and decisions on whether to install loggers ahead of the visitEvaluation of rate structure vs blended ratesSoftware tools identified,installed,and training of asses
57、sment teamElectrical infrastructure capacity analysis may impact electrification feasibility and require utility involvementPlans for facility and any upcoming equipment replacementsCapital request process length of payback period,information needed,etc.Your Feedback is Important to UsUse the 2024 Summit mobile app to:Find sessions by track Build your personal schedule Network with attendees Learn about speakers Provide feedback on the SummitDownload Whova from the App Store or Google Play and search for the event Better Buildings Summit