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Headsup CIPEC Newsletter - In this issue

September 15, 2006 Vol. X, No. 18


Articles

Innovator Showcase:
Improving fire-tube heaters puts revenue in the pipeline for Petro-Canada

Moving natural gas through pipelines takes energy, as fire-tube immersion heaters are deployed to keep pipelines warm enough to move gas. For Petro-CanadaThis link opens a new window., the price can get as high as $50 million every year. As a result, the Industrial Energy Innovator company hopes to trim millions of dollars off its energy bill by focusing on the efficiency of these heaters.

Often, lower combustion and heater efficiency are linked to two principal issues: adequate design of the fire-tube for heat transfer and burner selection; and operation. High levels of excess air or high levels of combustibles, like carbon monoxide in combustion flue gases, are the result of poor burner or heater design and poor control of combustion air.

The overall thermal efficiency of many heaters ranges from 30 to 60 percent. Today's high energy prices and the increased focus on energy consumption have prompted a need to improve the design, manufacturing and operation of these heaters.

“The key to improving heater efficiency and reliability is to improve the training and understanding of the designers and operating personnel,” says Phil Croteau, an energy efficiency engineer at Petro-Canada. He also cites the importance of making simple improvements in burner selection and controls, along with implementing new guidelines in the design of the equipment and improving operational stewardship through more frequent performance testing.

Croteau led Petro-Canada's participation in an immersion heater efficiency study involving other industry partners and Petroleum Technology Alliance CanadaThis link opens a new window.. ENEFEN Energy Efficiency EngineeringThis link opens a new window. was commissioned to design the study and present a report, which was completed in December 2005.

The study identified straight-forward ideas, such as fire-tube and flame-cell cleaning. Selecting the burner and adjusting or adding a simple secondary air-control plate have the potential to increase heater efficiency by 5 to 10 percent. An additional increase of 5 to 10 percent efficiency can be realized by enhanced burner control and heat transfer methods. Staff training and education was also identified as a key component of improved efficiency.

These ideas, especially if they are combined, could have a big impact on the entire upstream oil and gas industry. The industry uses large amounts of energy to process raw gas and liquids. This energy is commonly referred to as “production energy intensity” (PEI). The PEI associated with immersion heaters is a shared concern for many upstream operating companies. Often, the energy used to fire these heaters comes from high-quality refined natural gas that could otherwise be sold.

“Petro-Canada has identified a significant number of lower-efficiency heaters, and we want them to approach that of a mid-efficiency furnace in the home, about 80 percent to 82 percent,” says Croteau. “It's the same idea as maintaining or upgrading your home furnace to keep costs down.”

With the study completed, the team at Petro-Canada will now implement the changes. Croteau believes that with minor upgrades and adjustments and some capital changes, a 10 to 60 percent improvement can be achieved in some areas.

“If we can get people to be stewards and monitor the combustion and operational efficiency as well as impact the design of new units, we are well on our way to a safer, more reliable operation and, ultimately, improved energy efficiency.”

Petro-Canada's work with immersion heaters reflects a corporate culture that supports energy efficiency. As an Industrial Energy Innovator, it is part of a select group of companies that are making energy efficiency a priority.

The Industrial Energy Innovators initiative is part of the Canadian Industry Program for Energy Conservation (CIPEC), a joint industry-government program sponsored by Natural Resources Canada's Office of Energy Efficiency. Petro-Canada is joined by more than 1000 companies and plants from a wide range of industrial sectors that have registered their commitment to energy-saving improvements with CIPEC.

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BC Hydro's Product Incentive Program a win-win for businesses

BC HydroThis link opens a new window.'s customers are saving money and energy with the new Power Smart Product Incentive ProgramThis link opens a new window. (PIP) for businesses.

By replacing old systems with more energy-efficient ones, businesses save money on energy costs, on buying the new equipment through the rebate program and on maintenance costs (e.g. since many energy-efficient products like lights have to be changed less often).

Both customers and BC Hydro are winning with this program, explains Christy Intihar, the Product Marketing Manager for PIP. “As demand for energy increases in B.C., we are looking to conservation to help meet future energy needs. Incentive-based programs like PIP are a cost-effective way to generate supply. By helping customers be more efficient, we can collectively lower the forecast of new supply that will be needed and help them save money in energy costs.”

The first step is to do an on-site assessment to determine where energy savings can be achieved. After the business follows the recommendations laid out in the assessment and purchases of the energy-saving products, it can apply for the BC Hydro financial incentive that it is now eligible for under PIP.

PIP provides incentives for a wide range of energy-efficient products, including light fixtures, refrigeration systems, controls, sensors, and heating, ventilating and air-conditioning systems. The value of the incentive depends on the extent of the switch to energy-efficient technologies. The more upgrades a business implements, the larger the incentive. BC Hydro provides an incentive estimation sheetThis link opens a new window. and an online calculatorThis link opens a new window. for businesses to estimate the potential savings.

To date, 602 businesses have taken advantage of BC Hydro's incentive program, saving 26.4 gigawatt hours a year. That's enough electricity to power 26 000 homes per year.

Besides all BC Hydro business customers, multi-unit residential buildings can also apply for projects in common areas of their properties. To qualify, participants must meet the minimum threshold of $100 in incentives (there is a calculation chart on the Web site), must not have purchased and/or installed products before receiving approval, can use only approved products in BC Hydro's e.CatalogThis link opens a new window. and must install the products within 120 days of approval.

Intihar says that this program is perfect for all businesses that want to conserve energy. “This allows any sized businesses to do their part. Energy saving doesn't have to be complicated. This is for any business that is interested in helping B.C. be more sustainable, while being more cost-effective for itself.”

The Product Incentive Program is on until March 31, 2007. For a complete list of products or to determine if your business is eligible, visit www.bchydro.com/incentivesThis link opens a new window. or call 1-866-522-4713.

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COGENCanada hits the road with new eco-industrial workshops

COGENCanadaThis link opens a new window., Canada's combined heat and power association, is hosting a three-day course on cogeneration-based eco-industrial networks this November.

Unlike single-purpose thermal power plants that reject as much as half of their fuel heat, cogeneration systems capture waste heat to generate thermal and electrical power in a single, integrated system.

“In a sense, they recycle heat or use waste heat,” explains Gordon Robb, President of COGENCanada. He adds that the heat can then be used for other purposes, such as paper drying, chemical or food processing, and heating and cooling.

Eco-industrial networking has become an important tool for all of the different partners involved in large and small industrial parks. In a nutshell, it helps businesses use resources more efficiently, saving operation, maintenance and labour costs.

“Networking provides economies of scale, especially in combination with cogeneration systems, where the outputs and waste from one process are used as inputs to other processes in the network,” says Robb. “Utilities then serve the entire network, and proponents of the new processes don't need to invest in new infrastructure.” He also notes that with the appropriate arrangements, cogeneration systems can often continue to operate during grid failures.

The November course will include presentations on gas and steam turbines, boilers and combined cycles, as well as large- and small-scale biomass cogeneration processes.

Integrated Gasification Combined Cycle (IGCC) systems are also on the agenda. These systems use coal, petroleum coke or refinery residue to produce process steam, electricity, pure sulphur and hydrogen. Some studies suggest that since emissions from IGCC plants are pure carbon dioxide (CO2), the CO2 could be sequestered for other uses.

The course includes a discussion of federal and provincial cogeneration incentives and policies for reducing greenhouse gas emissions. As well, the Ontario Power Authority, along with provincial government representatives, has also been invited to discuss the Ontario electricity plan.

The course will be held November 1–3, 2006, in London, Ontario. For more details on the course or to register, contact Gordon Robb, President, COGENCanada and Thermoshare, at 613-731-6783 or by e-mail.

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Canadian companies among top five of oil-and-gas sustainability list

Canadian-based Industrial Energy Innovator companies Suncor Energy Inc.This link opens a new window., Nexen Inc.This link opens a new window. and Petro-CanadaThis link opens a new window. are at the head of the class when it comes to sustainability.

According to the Canadian investment research firm Jantzi Research Inc.This link opens a new window., the three Innovators made it to the top five in a sustainability study that assessed 23 companies worldwide. The ranking was released as a part of the report Oil and Gas in a Bull Market: The Shifting Sands of Responsibility and is based on Jantzi's own environmental and social performance criteria. Specifically, the report analyses and ranks nine of the largest Canadian oil and gas companies alongside 14 of the largest international producers. It compares their performance on issues including community and society, health and safety, environment, and human rights.

The report also highlights how the 23 companies are dealing with risks and opportunities presented by climate change. It assesses their greenhouse gas (GHG) emissions record and GHG management systems. Jantzi attributes the poor showing on the part of U.S. companies to their late start in confronting climate change.

British-based BPThis link opens a new window. topped the list with a score of 6.8 out of 10. The three Innovators – Suncor, Nexen and Petro-Canada – took the next three spots, scoring 6.5, 6.3 and 6.1, respectively. Dutch-based ShellThis link opens a new window. rounded off the top five, with a score of 6.0. In contrast, no U.S. company was ranked among the top five. (BP and Shell's Canadian subsidiary companies are also registered with the Canadian Industry Program for Energy Conservation as Industrial Energy Innovators.)

According to Jantzi, BP set aggressive targets in the late 1990s (well before its competitors) to reduce GHG emissions to 10 percent below its 1990 level by 2010. It achieved this target within three years, almost a decade ahead of schedule. In contrast, the report states, “Many U.S. oil and gas companies are only in the beginning stages of acknowledging climate change as a corporate concern and business issue. Only six of the U.S. companies evaluated track or report their GHG emissions.”

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Technology Tip

Industrial plants can often reduce their electricity use and costs by about 5 to 15 percent or more by improving the efficiency of their motor-driven systems. For more information, go to www1.eere.energy.gov/industry/bestpractices/pdfs/39157.pdfThis link opens a new window..