High energy prices and energy price volatility – coupled with the environmental impact of energy production and consumption – make energy use a critical issue for Dow. Implementing an aggressive energy efficiency and conservation effort is an important part of Dow's plan to address this critical issue.
Business and Site energy efficiency teams have been established throughout the Company to focus both up and down as well as across the product chain. As a result of focused business and site efforts, over 700 Six Sigma projects have been chartered in the past five years to address all aspects of energy production, use, efficiency, and cost reduction.
Below are a few of the many projects that made significant contributions in 2004:
2004 Energy Intensity Reduction Projects
- A new cogeneration power plant, located at the Plaquemine, Louisiana site began commercial operation in 2004. The plant was built and is owned and maintained by American Electric Power (AEP). The facility efficiently provides steam energy for Dow’s production processes and at the same time generates electricity to meet some of the plant’s electrical needs. The facility replaces older cogeneration facilities and improves the energy efficiency of site power and steam by over 15%.
- The Polystyrene business unit reduced energy intensity in 2004 compared to 2003 by 7.4% which resulted in over $1 million savings. These results were achieved by activities leveraged through their Production Engineers Network including: improving DOWTHERM* heaters efficiency, improving train conversion rate and optimizing mechanical refrigeration unit operation.
- The Stade, Germany site produces hydrogen as a by-product. Much of the hydrogen is burned at the on-site cogeneration power plant thereby reducing the amount of natural gas that is consumed. A Six Sigma project was implemented to improve the availability of the hydrogen compressor thereby allowing even less natural gas to be burned saving the site over $500,000 in natural gas costs.
- The Ethylene Dichloride/ Vinyl Chloride Monomer (EDC/VCM) Business unit initiated projects at Plaquemine, Louisiana and at Freeport, Texas, to improve the efficiency and reduce the fuel consumption of process furnaces. Furnace efficiency was achieved through increasing the conversion of EDC to VCM within the furnace, thereby reducing the fuel gas requirements necessary to produce VCM. They also initiated projects to reduce steam consumption at these locations by optimizing steam and distillation systems as well as increasing energy recovery from systems already in place. Overall energy savings from these projects exceeded $5.8 million in 2004.
- In Freeport, Texas, reactor flows to two thermal oxidizer units were optimized to reduce fuel gas to the units. Work was also done to ensure full utilization of steam-generated from these units. Almost $1.9 million in energy was saved.
- A comprehensive project was implemented at the Plaquemine site to reduce the cost of compressed air and improve efficiency and saved the site over $350,000 in 2004. The project included the installation of condensate traps to eliminate continuous venting of air, the optimization of compressor production, reducing the venting of compressor blow-off-valves, repairing leaks and removal of unneeded dryers. The savings came from not only less power to make the compressed but from the need to rent fewer compressors during times of compressor maintenance outages.
- An optimization project at the Seadrift PP-1 unit, utilizing team members from different functions throughout the company and with varying areas of expertise, resulted in a significant reduction in nitrogen and fuel gas usage. The project resulted in just under $1 million in annual savings.
- The Cubatao LDPE plant in Brazil reduced its steam and power consumption by 9% and 2% respectively. Improvement actions included distillation columns optimization, reduction of centrifugal pumps in operation and the use of heat of reaction instead of steam in reactor water tanks.
- At the Dow Central Germany, Boehlen site, steam production was decreased by improved pressure and flow control and improved steam load shedding on the steam distribution system. This project reduced fuel oil purchases by $2.3 million per year.
