The PepsiCo Energy Management Program

Introduction

About PepsiCo…

• • • •

World leader in convenient snacks, foods and beverages + $60 billion revenues + 285,000 employees Fortune 50 company

About me… • • • • • •

Andy Lempera, PepsiCo Principal Engineer, PepsiCo America Beverages BS in Mechanical Engineering from Purdue University 1999 MS in Energy Engineering from UIC 2010 10 years as consulting mechanical engineer 3 years as resource conservation engineer at PepsiCo PE in Illinois, LEED AP

Introduction

Agenda 1. PepsiCo energy management program

2. Partnering with utilities

3. 2013 case studies

PepsiCo Energy Management Program

PepsiCo Energy Management Program

PepsiCo Energy Management Program

PepsiCo Energy Management Program •

Based on the ENERGY STAR model

•

PepsiCo has been an ENERGY STAR “Partner of the Year” every year since 2005

•

Awarded the ENERGY STAR Sustained Excellence Award every year since 2009 Why focus on this model? Because people and process drive sustained results

PepsiCo Energy Management Program 1.

2.

Make a commitment

By 2015, PepsiCo will reduce its intensity of… Total Energy (Fuel & Electricity)

Assess performance and set goals •

Water •

20%

20%

… with 2006 as a baseline year

3. • •

Create action plan & implement Plants, corporate engineers (ReCon team), vendors develop action plans to achieve annual goals RC audit teams (see Energy Star’s “Energy Treasure Hunt Guide”)

•

Plants track energy and water consumption by using a scorecard Annual productivity goals incorporated into Annual Operating Plan These goals are tied into senior leaders’ annual goals and compensation

PepsiCo Energy Management Program •

Communicate progress, goals internally and externally to suppliers to share the knowledge and continue the savings

ReCon Group, November 2013 RC Audit, Beloit, WI

December 2013 RC Audit

Energy Star Challenge Achiever

March 2011 ReCon Training and Expo for Suppliers, San Antonio, TX

November 2011 RC Audit

Energy Star Challenge Achiever

PepsiCo Energy Management Program 4. • •

5. • •

Evaluate progress Use the scorecard to evaluate planned vs. actual Reviewed by business units every 4 weeks

Recognize achievements External awards (Energy Star Challenge for Industry, Governor’s Award, etc.) Internal awards (include energy conservation into existing internal award structures)

2012 - Cedar Rapids

2012 - Columbia

2013 - Columbia 2012, 2013 - Bridgeview 2013 - Danville

2013 - Columbia

www.energystar.gov/challenge

PepsiCo Energy Management Program

6. • • • •

Reassess Since program inception in 1999, FLNA has cut energy intensity by 35% Since 2004, legacy beverages has cut energy intensity by 28% Since 2010, newly acquired carbonated soft drink has cut energy intensity by 16% End result: PepsiCo would have spent $50 million more on energy in 2013 in the U.S.

Partnering With Utilities

Partnering With Utilities

Partnering With Utilities 1. Energy Monitoring and Data Collection •

Work with utility to get daily data instead of monthly data from bills   

•

Fast response to problems Able to see changes in shift behavior, new equipment, etc. ComEd (Chicago area utility) provides data every 30 minutes (with a couple day delay to post data)

If utility does not offer daily data, www.automatedenergy.com

2. Rebates and Incentives • •

www.dsireusa.org Prescriptive    

•

Custom   

• •

VFDs ($/hp) HVAC ($/ton based on EER/IEER) Lighting ($/W) Boilers ($/bhp) ¢/kWh saved per year $/therm saved per year Usually max out at $ amount or 50% of project cost

Incentives/rebates often push a project over the minimum IRR required for capital Pre/post verification of energy usage by utility (free proof of savings for management!)

2013 Case Studies

2013 Case Studies

2013 Case Studies

2013 Case Studies

2013 Case Studies

QUESTIONS? Thank you! Andy Lempera [email protected]

The PepsiCo Energy Management Program

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