Pump Systems Matter – part 2

Pump Systems Matter – part 2

feature energy efficiency Pump Systems Matter – part 2 Earlier this year, the USA’s Hydraulic Institute launched Pump Systems Matter™, a national edu...

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feature energy efficiency

Pump Systems Matter – part 2 Earlier this year, the USA’s Hydraulic Institute launched Pump Systems Matter™, a national educational initiative aimed at improving the energy efficiency of pumping systems. In the October issue of World Pumps, Robert Asdal (HI), Vestal Tutterow (ASE) and Aimee T. McKane (LBNL) explored the key factors that led to the pursuit of this initiative. In this second of two parts, they consider the process involved in setting up the initiative, its scope and the progress to date.

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Figure 1. Among the educational resources and tools established by the Pump Systems Matter initiative is a dedicated, resourceintense website.

nspired by industrial energy efficiency success stories from other industries in the USA, Hydraulic Institute (HI) staff and several champions from within HI member companies formed a Market Transformation Committee and set out to educate themselves on energyefficiency initiatives, including market transformation. This process included attendance at national and regional market transformation conferences and meetings, and discussions with organizations involved in market transformation, such as the American Council for an Energy-Efficient Economy (ACEEE) and the Alliance to Save Energy (ASE). The organizers were aware that rising energy costs and the savings opportunities associated with optimizing pumping systems would create a new service opportunity for the industry. End-user businesses could improve their operations, reliability and profitability while the supply chain

could create new business opportunities associated with optimizing pumping systems.

Starting and launching Pump Systems Matter

The HI Market Transformation Committee sought out staff from Lawrence Berkeley National Laboratory (LBNL) and ACEEE, and others (US Department of Energy, Office of Energy Efficiency and Renewable Energy, ASE, the Northeast Energy Efficiency Partnerships, the Northwest Energy

Efficiency Alliance, and the New York State Energy Research and Development Authority) for their expertise and experiences in industrial energy market transformation. LBNL and ACEEE were both key stakeholders in the formation of the Compressed Air Challenge (CAC), which successfully initiated a similar shift from a component-based to system services-based approach to US industrial compressed air markets. As with the CAC, it was understood that true market transformation would require Pump Systems Matter™ to address the needs of both pump system users and suppliers to achieve permanent change. Building consensus within the HI presented unique, but not insurmountable, challenges. The concept of market transformation was at first alien to many members. During several regularly scheduled meetings, HI staff organized plenary sessions on energy-efficiency and market transformation efforts related to motors, compressors and other industries. Over time, an increasing number of members began to see the prospects and discernable contours of a market transformation initiative within the pump industry. HI then commissioned ACEEE to provide the Market Transformation Committee and board with research, findings and programme guidance. ACEEE’s study evaluated the opportunities for market transformation, along with the successes and shortcomings of other industrial market transformation efforts. Based on the study’s findings, the HI board voted to pursue a market transformation initiative, which the staff and volunteer leadership team branded as Pump Systems Matter™. In preparation for seeking partners for this initiative,

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feature energy efficiency HI staff and committee leaders first secured leadership and financial support from 33 HI member organizations as Charter Sponsors as of March 2005, including all of the leading pump manufacturers in the USA1.

Vision and mission It was important to the Hydraulic Institute leadership team to build national consensus on the vision, mission and key objectives of the initiative. They invited representatives from key energy-efficiency organizations to help articulate and shape the messages that PSM will deliver. This Steering Group helped define a vision for the organization that was subsequently adopted by the charter sponsors: “Pump Systems MatterTM will assist North American pump users in gaining a more competitive business advantage through strategic, broadbased energy management and pump system performance optimization.” Specifically, PSM sponsors envisioned that through the combined efforts of the pump industry and the many other stakeholders, the following long-term benefits will occur: • All stakeholders will speak with a common voice, reaching end-users using new educational resources, tools and outreach efforts to encourage systems energy savings and change the procurement process for pumps and pumping systems to one based on total life cycle costs rather than initial costs; • Training programmes and tools, including a national certification programme and incentives, will be provided by sponsors, and eventually a programme for Certified Pump Systems Engineers; • Significant and lasting energy savings in process-oriented facilities, including chemical and petrochemical, pharmaceutical and food processing, pulp and paper, and water and wastewater, and other manufacturing industries, contributing to increased bottomline savings and profitability for these organizations using a pump systems approach;

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• National partnerships between the PSM sponsors will have resulted in a market that procures pumping systems based on total life cycle cost rather than initial cost; and • By 2015, users will understand the value of, and demand, pump systems optimization services; and suppliers will offer these services on a competitive basis. The Steering Group also articulated the following mission, adopted by the sponsors: “To provide end-users, engineering consultants and pump suppliers with tools and collaborative opportunities to integrate pump systems performance optimization and efficient energy management practices into normal business operations.” It was agreed that accomplishing the mission would require a wide variety of activities. These activities will seek to achieve the following goals, as initially identified by HI’s charter partners: • Changing the mindset of owner/ operators and contractors from a purchase decision based on lowest initial purchase cost to one based on total life cycle costs, creating significant bottom-line savings for end-users based on lower energy costs, maintenance costs and improved operations; • Creating demand among owner/ operators and contractors for valueadded services from the pump industry and expanding the capacity within the pump industry to meet this need; and • Developing and disseminating supporting materials, educational resources and tools, including a robust and resource-intense website, with associated outreach and communications efforts to realize these goals.

Scope of the PSM initiative The ultimate scope of activities for the Pump Systems MatterTM initiative will be determined by its sponsors. However, several short-term objectives were identified by HI and the charter sponsors in 2005, on which significant progress has already been made. Sponsors and HI

Figure 2. PSM emphasizes the long-term competitive advantages to be gained from a focus on pumping systems and energy efficiency.

staff agreed that these objectives should be accomplished within the first year of the formation of the initiative, and include: • Hiring a part-time marketing manager to organize the effort and evaluate other staffing needs, particularly with educational development and re-branding educational courses, tools, case studies and other needed resources; • Holding follow-up meeting with potential stakeholders concerning making an investment in the Pump Systems MatterTM initiative and defining the missing pieces of the framework of the initiative; • Developing significant visibility within 12 months of start by building on core sponsors’ strengths and offerings (such as existing training, tools, case studies, etc.); • Maximizing key public awareness opportunities through meetings, conferences, trade press, the launch of a new website (www. PumpSystemsMatter.org), etc; • Presenting a turnkey offering to new sponsors that includes customerfocused services (training, tools, etc.), a programme baseline and evaluation metrics for the purpose of attracting sponsorship support and funding; and • Hosting regional events, such as Energy Summits and training seminars, to showcase work done to date on pump systems optimization for both users and potential stakeholders. With initial financial commitments from the 33 HI member companies that became charter partners, HI had the foundation necessary to move forward. In October 2005, the HI Board adopted an authorizing resolution to create an independent not-for-profit association for which bylaws were subsequently drafted and adopted by the sponsors in

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feature energy efficiency February 2006. Pump Systems Matter was officially incorporated in April 2006. In crafting the bylaws for the initiative, the energy-efficiency steering committee and HI sponsors and staff agreed it was important to achieve balanced representation on the Board from a variety of stakeholders. The Board structure, in fact, provides for balanced representation among three groups: 1) North American pump and supplier OEMs (motors and drives, seals, couplings, bearings, housings, instrumentation and control systems and pump specific software) who are HI members; 2) energy-efficiency organizations and utilities; and 3) engineering consulting firms, end-users, other associations and government agencies. The initiative is currently in the process of seeking Board representation from leading organizations in each of these sectors.

Figure 3. The Pump System Improvement Modeling Tool (PSIM) allows users to ‘build’ models of pumping systems and to simulate a wide range of behaviour.

By mid-2006 the Pump Systems Matter organization met with success in attracting three significant energyefficiency organizations to become sponsors: the Northwest Energy Efficiency Alliance (NEEA), Wisconsin’s Focus on Energy and BC Hydro. Representatives of each organization agreed to join the PSM Board. In understanding the longterm prospects for market transformation in the pump industry it is instructive to understand the unique regionally focused motivations of such energy-efficiency organizations in joining PSM.

The Portland, Oregon-based NEEA is a non-profit corporation whose ultimate goal is to make energy-efficient products and services available at affordable rates in the Pacific Northwest. NEEA is supported by various electric utilities, public benefits administrators, state governments, public interest groups and energy-efficiency industry representatives. It was also the first nongovernmental organization (NGO) to sponsor Pump Systems MatterTM. “Sponsoring Pump Systems MatterTM fully complements our regional market transformation efforts in the food processing and pulp and paper industries,” explained Susan Hermenet, director of business services for NEEA. “Any large-scale market transformation effort requires collaboration to be successful. Through Pump Systems MatterTM, we’re able to work cooperatively with utilities, pump manufacturers and pump system users to change the way pumping systems are sold and purchased. Those efforts will ultimately make industry more competitive and, in turn, result in region-wide economic development.” The second NGO to join PSM was Wisconsin’s Focus on Energy, which encourages businesses and residents in the state to make informed energy decisions. Through partnerships with many different organizations across the state, and nationally, Focus on Energy helps Wisconsin lower its cost of living

while at the same time improving energy efficiency, the economy and environmental health. “A recent study completed for the Wisconsin Public Service Commission projected that the potential energy savings in pump systems was second only to lighting energy-saving opportunities,” said Focus on Energy’s industrial program director John Nicol. “As a key part of targeting pump systems, Wisconsin’s Focus on Energy programme became a sponsor of Pump Systems MatterTM to provide a strong platform for securing energy reduction for the state’s businesses.” The first utility to join PSM was BC Hydro whose fundamental goal is to provide high-value, reliable power to fuel the development of the Canadian province of British Columbia while remaining concerned about environmental effects. Through a world-class integrated hydroelectric system, BC Hydro has allowed residents of British Columbia to have one of the lowest electricity rates in the world. By valuing efficiency and productivity, the goals of BC Hydro are well aligned with the objectives of the Pump Systems Matter initiative. “BC Hydro looks forward to working with Pump Systems Matter,” said Parminder Sandhu, industrial market manager of BC Hydro’s Power Smart business unit, “to create educational resources and tools to train pump end users and engineering consultants on the most effective use of pumps to save energy and ensure that such systems operate more reliably and at their best efficiency point.” Pump Systems Matter leadership is continuing to work on attracting other sponsors to join, but the work of the initiative has begun in earnest. Among the longer-term objectives that were agreed upon during the organizational stage, some of the current and future (two to three year) plans include: • Developing case studies highlighting pump system optimization, energy savings and life cycle cost analyses; • Publishing trade journal articles, white papers and additional web content; • Creating simplified life cycle analysis software tools; • Authoring a textbook on pumping systems optimization;

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feature energy efficiency • Developing a technically oriented training curriculum for facilities engineering personnel; • Establishing a multi-level certification programme for pump system analysis, operation, optimization, design and troubleshooting; • Developing a training curriculum for procurement personnel focused on transforming buying channels to encourage the use of life cycle cost methodology. Additionally, mid- and long-term communications and outreach efforts could include: • Creating a centralized internet resource for information and sponsor links, using the domain name of www.PumpSystemsMatter.org; • Incorporating PSM speakers, courses, workshops, tutorials and publicity into national or regional conferences and trade shows; • Creating regional training sessions and pump systems “summits” focused on systems optimization; and • Providing training via the internet, using HI’s existing www. PumpLearning.org training portal, in collaboration with qualified instructors.

Next steps The Pump Systems Matter organization is in the process of defining a robust educational programme, with multiple offerings, for which funding is currently being sought from sponsor organizations and other sources. A significant new educational tool, Pump Systems Improvement Modeling (PSIM), was adopted by the organization for webbased training and will be offered before the end of 2006. The longer-term opportunities to create a certification programme are being considered in the design of the content of future educational offerings. Working in collaboration with the HI, members of Pump Systems Matter are working on a new book on pumping systems, and they have attracted the interest and participation of a variety of subject matter experts. The new guidebook, along with other HI resources, such as standards, guidelines and E-learning programmes, is planned to support the development

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of new educational programmes. Outreach activities continue in earnest, with a number of members engaged in making presentations on behalf of the organization at market-specific trade show events and meetings. Content on the www.PumpSystemsMatter.org website continues to be added, with the vision of creating a centralized resource to support the market transformation process. The current PSM co-chairs and staff are working to attract other potential sponsors to complete the establishment of the Pump Systems Matter board of directors, a balanced representative body of 21–23 members drawn from a variety of stakeholders.

need to be developed. An expanded body of knowledge will include a wide range of awareness-building and educational materials, including case studies, software tools, training curricula and a certification programme for pump systems engineers. The education and outreach is intended to result in owner/operators embracing the concepts of life cycle costing, energy management as a standard business practice, and pump system performance optimization. The PSM brand will incorporate relevant existing resources of the stakeholders while creating new tools and resources tailored to achieving the goals and objectives of the initiative.

Summary

With these groups coming together in 2005 with aligned interests, and the launch of Pump Systems Matter in 2006, the following tenyear vision stands the best chance of being realized: “By 2015 pump users would understand the value of, and demand, pump system optimization services and the supply chain would understand the value of offering these services on a competitive basis”. ■

As the first industry-led market transformation effort in North America, Pump Systems Matter (PSM) was created by the Hydraulic Institute and 33 of its members who have signed on as PSM charter sponsors. PSM is now reaching out to other potential stakeholders and partners to build and strengthen the initiative and associated educational programmes, tools and outreach effort. HI has received guidance from leading NGOs, energy-efficiency organizations and federal agencies, which, working together, have developed a shared vision, mission and goals. Significant opportunities exist to transform the market for energyefficient pumping by focusing on the system, rather than components, and by working with both buyers and sellers. Substantial energy savings will result, as well as significant opportunities to improve the competitiveness of end-users that embrace broad-based energy management and pump system optimization approaches. A significant lack of understanding currently exists regarding the proper application and operation of pumps. This leads to excessive operating costs – including energy. It is clear to the PSM organizers that new educational resources and tools

CONTACT

Robert K. Asdal Executive director Hydraulic Institute, Inc and Pump Systems Matter, Inc 9 Sylvan Way Parsippany, NJ 07054, USA. Tel: +1-973-267-9700 ext. 13 Fax: +1-973-267-9055 www.Pumps.org www.PumpLearning.org www.PumpSystemsMatter.org

Reference [1] Hydraulic Institute, Thirty-Three Pump & Supplier Companies to Lead Pump Systems Matter™, Hydraulic Institute Press Release, Parsippany, NJ, USA, 15 March 2005.

A white paper ‘Making Pump Systems Matter’ by V. Tutterow, R. Asdal and A. McKane, presented by R. Asdal and V. Tutterow at the ACEEE Summer Study on Industrial Energy Efficiency in July 2005, formed the basis of this two-part article, which has been updated by R. Asdal with PSM progress to date.

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