ENERGY MANAGEMENT AT COOPER TIRE

Transcription

1 OMA Energy Committee June 25, 2014 Anthony Smith, PE ENERGY MANAGEMENT AT COOPER TIRE 1

2 A Leader in the Tire Industry 5% 2012 Sales by Segment 35% North America 65% International 5% Sales by Product 20% 50% 20% Passenger Light Truck Commercial Truck Winter Specialty 11th largest global tire manufacturer and 4th largest in the U.S. * 2012 revenue of $4.2 billion 14% market share in the U.S. light vehicle replacement tire market Limited, but growing, O.E. presence Rapidly growing international segment 2012 unit sales 49.5 million tires * Source: Tire Business Market Data Book February 18,

3 House Brands 3

4 Private Label Brands 4

5 A Global Footprint 5

6 Corporate Environmental Goals World Class Steward of Resources and Maintaining Environmental Integrity Reducing waste generated and going to landfills Reducing water use Increasing % of scrap going to non-fuel use Reducing energy use Sustainability Report available at 6

7 Corporate Environmental Goals 7

8 Energy Goals Commitment by Cooper to Implement Energy Savings Initiatives Full-time Energy Manager in each North American Cooper Plant Capital Budget Funding for Projects that Meet Payback Requirements Payback threshold of 3 years or less required 2 years or less desirable Monthly Energy Conference Calls with North American Plants Projects Communicated and Shared with All Plants 8

9 Lighting Upgrades AEP CEI Program Demand Response PLC Management Steam Piping Insulation 9

10 Lighting Upgrades Previous Lighting Standard was 400W Metal Halide Fixtures Located Throughout Plant Efficient Fixture Technologies Evaluated Technology Selected Based on Project Payback and Total Ten Year Cost of Ownership LED Considered but Did Not Meet Payback Threshold of Three Years Induction Technology Offered Close to Three Year Payback AEP Utility Incentive Reduced Payback to Under Three Years for Induction 10

11 AEP CEI Program The Findlay Plant recently completed our first year in the AEP Continuous Energy Improvement (CEI) program The CEI program provides an opportunity to earn a utility rebate by implementing low cost/no cost improvements and behaviors to the plant to reduce electricity usage AEP will pay a rebate of $0.02 per KWH reduced per year for three years First year usage reduction of over 3,000,000 KWH per year for Cooper Tire 11

12 Employee Engagement 12

13 Benefits Received from AEP Programs Total KWH Savings per Year for Lighting and CEI: 11,542,182 KWH CO2 Emissions Reduced Annually: 7,959 Metric Tons Reduced Power Consumption the Equivalent of 962 Residential Homes Had the Project Payback Been Greater Than 3 Years, None of These Benefits Would Have Occurred 13

14 Strategies for minimizing the impact of capacity cost increases for electricity Costs for electric capacity have increased June 1 st from 2% to 10% of total electric bill Capacity cost is based on our Peak Load Contribution (PLC) during the five highest hours of demand on the electrical grid Cooper has renewed participation in demand response and is working to manage PLC in the Summer 14

15 Demand Response Get paid for being on stand-by to reduce electric demand when PJM calls an event Demand Response events are likely to occur during PLC hours which helps reduce PLC average Provide free "real-time" monitoring equipment for electrical demand 15

16 PLC Management 24 of 30 PLC hours during the last six years have occurred between 4 and 5 PM on the hottest days of summer Signed up for free alerts from CRES electrical supplier on forecasts for PLC days Educated production and maintenance to do PM's and shift planned downtime during late afternoon on large electrical use machines 16

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18 Steam Piping Insulation Upgrades Yearly walk of steam distribution system List of insulation compiled For 2014, approximately 800 linear feet of steam piping to be upgraded during July Shutdown Rebates are available from Columbia Gas to offset cost of the project! For 2014, estimated rebate of 50% of project cost from Columbia Gas 18

19 Questions?? Contact me at or LinkedIn 19