Joe Almaguer

1
Managing Energy Efficiency Improvement The Dow
Chemical Co.

• Joe Almaguer
• 16 Nov., 2005

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About Dow
A 108 year old company committed to Sustainable
Development

• Leader in Chemicals, Plastics and Ag Products
• Annual sales of 40 billion
• Serve customers in 175 countries
• 43,000 employees
• Among Largest Industrial Energy Consumers
• Recently, 50 of costs are from energy
  feedstocks

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Dows Energy Use By Business
Annual Energy Consumption Globally 600Milllion
MMBtus/Yr
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Dows Energy Use By Site
US Consumption is 340 Million MMBtus/Yr
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Energy Efficiency Improvement at Dow

• 1994 Dow made a 10 yr commitment to reduce Energy
  Intensity by 20
• Results
• Dow Global
• By 2004 Energy Intensity reduction had exceeded
  21
• Cumulative Energy Savings 800 Million MMBtus
• Direct GHG ( CO2 equi), reduced by 28 percent or
  13.3 Million M T
• In 2004 vs 2003, EI was reduced by 32 Million
  MMBTU/Yr ( 5)
• Dow USA 2004
• Energy Intensity (btus/lb Product) was reduced
  by 7
• An Energy Savings of 24 Million MMBTU/Yr
• Direct GHG reduction of 1 million metric tons/yr
  in CO2 Eq units

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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
7
Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
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Enhanced Public Reporting
The Dow Public Report
www.dowpublicreport.com
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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
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Driving Energy Conservation
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The Businesses/Tech Centers

• 26 Tech Centers Each have Energy Focal Points
  leading the business effort
• Focus Active engagement through the Tech Center
  energy focal points, plants and business
  networks.
• Engagement Creative communication activities to
  engage teams.
• Results Projects identified and implemented
• Strategies For long term gains

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Site Wide Energy Initiative Leaders

• Site Wide Energy Initiative Leaders and teams
  in-place at the 13 largest consuming sites
• Represents almost 90 of our total energy
  consumption

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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
14
Energy Reporting Checklist

• Timely/comprehensive consumption monitoring
• Easy / automatic data entry
• Classify data for breakdown
• Provide graphics / tables
• Data available to all users/management

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Example Fuel Gas Cost and Consumption
Cost (/ lb)
Yr 2001
Fuel Gas
Yr 2002
1H 2003
Best-in-class
0.00
Site
Sitte
Site
Site
Site
Site
Site
Site
Sitte
Sitte
Usage (BTU/lb)
Fuel Gas Consumption
(all forms)
(Btu / lbProduced)
Yr 2001
Yr 2002
1Q 02
2Q 02
3Q 02
4Q 02
1Q 03
2Q 03
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Example Energy Intensity Pivot Table
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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
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Energy Efficiency Mindset

• Push Communications
• Newsline
• Around Dow
• Energy Efficiency Bulletin
• Dow World News
• Webcast Energy Efficiency Training
• Pull Communications
• Energy Efficiency Conservation websites
• - Corporate, Sites, Businesses
• Electrical Energy Challenge
• WRAP Waste Reduction Always Pays

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Energy Efficiency Conservation website
Energy Efficiency Mindset
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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
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Six Sigma Project Methodology

• Data-based process improvement
• 3.4 defects per million opportunities
• Measure-Analyze-Improve-Control
• Small projects and large systems
• Web based leveraging results across co.

260 MM Cumulative Savings
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New Cogeneration Facilities
Taft / Texas City / Seadrift (Under UCC Model)

• Eleven New Cogeneration facilities since 1994
• 2004 savings an equivalent of 32.6 Trillion
  Btu/year.
• 75 of Dows electricity from cogeneration

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Managing Energy Efficiency Improvements
Corporate Commitment
Organizational Structure
Energy Reporting
Employee Communications
Energy Efficiency Conservation
Six Sigma Methodology
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10-Year Energy Intensity Goal Set in 1994
Actual 21 through 2004
Savings Based on Dow weighted average natural gas
price each year
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Thank you
Please turn off your lights and monitor when you
leave