Insights from Case. Energy Reduction. Energy Management Conference September 29, Copyright 2010 Rockwell Automation, Inc. All rights reserved.

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1 Lessons Learned and Insights from Case Studies in Industrial Energy Reduction 5 th Annual Northern Ohio Energy Management Conference September 29, 2010 Fred Discenzo, Dave Mayewski Copyright 2010 Rockwell Automation, Inc. All rights reserved. 1

2 Discussion Topics 1. An Era of Transition 2. Approach to Energy Reduction 3. Case Studies & Live Data Display 4. Observations & Common Themes 5. Factory of the Future 6. Opportunities & Conclusions Copyright 2010 Rockwell Automation, Inc. All rights reserved.

Perspective of Presentation: Global Supplier of

Leading global provider of industrial automation

$5.7 billion World Headquarters: Milwaukee,

About 20,000 Serving customers in 80+ countries

3 Perspective of Presentation: Global Supplier of Automation Products & Services to Diverse Markets Leading global provider of industrial automation control and information solutions Annual Sales: $5.7 billion World Headquarters: Milwaukee, Wisconsin, USA Trading Symbol: ROK Employees: About 20,000 Serving customers in 80+ countries Copyright 2010 Rockwell Automation, Inc. All rights reserved. 3

4 Consumer-Driven Industries Include Consumer Packaged Goods Automotive Food & Beverage Household & Personal Care Life Sciences Increase flexibility & responsiveness while reducing costs & improving quality. Bridgestone DaimlerChrysler Ford GM Goodyear Hyundai JCI Lear Magna Michelin Toyota Satisfy consumer demand, while reducing costs, minimizing ii ii waste & improving asset performance. Anheuser-Busch Coca-Cola Cola Kellogg Kraft/Nabisco M&M Mars Nestlé PepsiCo/Frito-Lay it SABMiller Meet regulatory challenges & improve quality, consistency, flexibility & time-to-market. 3M Beiersdorf Colgate-Palmolive DuPont Henkel Kimberly-Clark L Oréal Procter & Gamble Unilever Reduce costs while meeting the demands of ever-changing regulations. lti Abbott Laboratories Johnson & Johnson Merck Pfizer Sanofi Wyeth-Ayerst Copyright 2010 Rockwell Automation, Inc. All rights reserved. 4

5 Heavy, Resource-Driven Industries Include Water / Wastewater Mining / Metals / Cement Oil & Gas Semiconductor / Electronics Achieve low long-term cost & on-demand engineering expertise with scalable lbl solutions. A & E Firms Consultants Design Engineer Firms Design Institutes (Asia) Global Municipalities Privatizers (Europe) Pump OEMs System Integrators Execute real-time control & maintain critical process parameters to respond to customer demands. Alcoa BHP Billiton CEMEX Holcim Lafarge Rio Tinto US Gypsum Vulcan React to changing production conditions while maintaining operations at peak efficiency. BP Chevron ConocoPhillips ExxonMobil Shell Increase yields while reducing risk & total cost of ownership by using a single automation control & information infrastructure. Agilent Applied Materials ATS Automation Axcelis IDC / CH2M KLA-Tencor Novellus Praxair Seagate Copyright 2010 Rockwell Automation, Inc. All rights reserved. 5

6 Manufacturing Convergence Productivity Demands for Business Information are always changing Communication Globalization Information Innovation Decision makers need the information that originates on your plant floor Control Sustainability Power Copyright 2010 Rockwell Automation, Inc. All rights reserved. 6

An Era of Transition Energy Active management of energy

product Waste recycling Materials content tracking Carbon

compliance Sustainable production is an imperative for the

8 An Era of Transition Energy Active management of energy Smart Grid readiness Environment Sustainability scorecard by product Waste recycling Materials content tracking Carbon footprint Safety Worker, machine & product safety Standards compliance Sustainable production is an imperative for the future Copyright 2010 Rockwell Automation, Inc. All rights reserved.

9 Why Energy Management? World energy demand is projected to expand by 45% from 2006 to 2030 This growth is not sustainable! Copyright 2010 Rockwell Automation, Inc. All rights reserved. Source: International Energy Agency

10 Volatile Energy Prices Manufacturers face real challenges in Energy allocation High levels of cost variability Supply volatility Energy is one of the most difficult costs to manage in manufacturing. Copyright 2010 Rockwell Automation, Inc. All rights reserved.

11 Supply Scarcity Water, gas, fuel oil and electricity scarcities will impact manufacturers operations, ability to deliver and profitability. Consider water Less than 1% of the world s water available for human use Consumption estimated to increase by 40% over next 20 years Resource scarcities will impact manufacturers ability to deliver. Copyright 2010 Rockwell Automation, Inc. All rights reserved.

12 Why me? Industry consumes nearly one-third of the global energy used annually. Source: Energy Information Administration The industrial sector is critical in meeting our global energy-saving and greenhouse gas reduction needs of the future Copyright 2010 Rockwell Automation, Inc. All rights reserved.

13 Who is Consuming It? Five industries account for 68% of all energy used in the industrial sector World Industrial Sector Energy Consumption by Major Energy-Intensive Industry Shares Other, 32% Nonferrous Metals, 3% Pulp and Paper, 6% Nonmetallic Minerals, 10% Chemicals, 29% Iron and Steel, 20% Source: International Energy Agency Copyright 2010 Rockwell Automation, Inc. All rights reserved.

14 Ohio Senate Bill 221 Signed into law May 1 st 2008 Creates EERS (Energy Efficiency Resource Standard) Mandates Investor owned utilities to reduce consumption 22% by 2025 Drive the renewable energy portfolio currently.3% 12.5% by 2025 Benefits Create renewable energy jobs Reduce energy costs Reduce the State s energy / operating costs Improve our quality of life Source: ACEE (American Council for an Energy-Efficient Economy Report Number E092 Copyright 2010 Rockwell Automation, Inc. All rights reserved. 14

15 Ohio Manufacturing - We make stuff here! and use over 1/3 the state s s total energy to do this! Source: Ohio Manufacturers Association, Ohio Manufacturing Counts, Copyright 2010 Rockwell Automation, Inc. All rights reserved. 15

18 Rockwell Automation Approach to Industrial Energy Optimization Pillars of Energy Management: 1. Facility Monitoring 2. Production (Plant Floor) Monitoring 3. Energy on the Production BOM 4. Modeling 5. Controlling 6. Responding 7. Scorecarding Defines the foundation to building a sustainability scorecard and transforming manufacturers into strategic managers of energy Copyright 2010 Rockwell Automation, Inc. All rights reserved. Copyright 2010 Rockwell Automation, Inc. All rights reserved. 18

Foundation: Facility Assessments and Efficiency Studies Mapped onto the Mfg Process Evaluate and target areas for improvement An ongoing program of

efficiency programs such as combined heat and power (CHP), intelligent motor control, machine improvements, and so forth Discover: Where you are likely to

19 Foundation: Facility Assessments and Efficiency Studies Mapped onto the Mfg Process Evaluate and target areas for improvement An ongoing program of assessments and efficiency improvements can be established and used to provide a strong foundation to each of the individual pillars Implementation of efficiency programs such as combined heat and power (CHP), intelligent motor control, machine improvements, and so forth Discover: Where you are likely to find quick returns What key metrics you should put in place How you can encourage ongoing improvements Copyright 2010 Rockwell Automation, Inc. All rights reserved. 19

Production Monitoring Understand energy consumption of the plant floor or production unit level Extend data collection and analysis practices down to

20 Production Monitoring Understand energy consumption of the plant floor or production unit level Extend data collection and analysis practices down to the plant floor, where plant managers can collect information about energy consumption as it relates to the machines, lines and production units involved in the manufacturing process. Discover: How much of your energy use is actually occurring on the plant floor or production unit level l versus the facility envelope Which pieces of equipment or production assets use the most energy, and when Copyright 2010 Rockwell Automation, Inc. All rights reserved. 20

Capturing Energy on the Production BOM Patent-pending approach to energy optimization from Rockwell Automation includes the vision of including energy requirements in resource

Make proactive production decisions Better to manage energy as a strategic investment to generate greater return rather than just a cost of doing business or a surcharge Discover:

21 Capturing Energy on the Production BOM Patent-pending approach to energy optimization from Rockwell Automation includes the vision of including energy requirements in resource planning and scheduling decisions i in the same manner as the availability of raw materials or other inputs. Make proactive production decisions Better to manage energy as a strategic investment to generate greater return rather than just a cost of doing business or a surcharge Discover: How to plan your energy costs in advance How much energy each production load requires How you can capture energy usage at the unit level How to capture and manage energy usage at the product level Copyright 2010 Rockwell Automation, Inc. All rights reserved. 21

22 Energy Management Methodology Monitor Analyze Control / Optimize Utility Systems Electricity Steam Water Natural Gas Production Compressed air Chilled water HVAC Energy Costs Monthly Bills RSEnergyMetrix Time of Day Monthly Demand load By Area Process Studies Baseline - Peak Seasonal review Relative usage DOE benchmarks Focus Areas Identify savings opps. Behavior Savings through training Shifting usage to lower peak time Employee awareness Programming Small engineering projects Optimize existing control Align utilities to requirements Capital Requires > $25K investment Copyright 2010 Rockwell Automation, Inc. All rights reserved. 22

Aluminum Manufacturer reduced electrical demand charges by 1000 kwd / Mo.

23 Load Profiling Monitor / Analyze Load Profiling measures and records energy usage to: Determine load factor Identify peak demand period(s) Correlate consumption with facility activities It is used to chart energy consumption patterns Major Aluminum Manufacturer reduced electrical demand charges by 1000 kwd / Mo. Annual Savings of $144,000 per year in electrical energy Identified Wasted water usage of 30,000 gals of water per day Copyright 2010 Rockwell Automation, Inc. All rights reserved

24 Energy Management Optimize Example (Process) VFD installation 30 helped lower baseline consumption : :30 1:00 1:30 2:00 Baseline with VFD 2:30 Demand Management control system helped reduce peak consumption with Demand Mgmt Multi-stage improvement schemes Copyright 2010 Rockwell Automation, Inc. All rights reserved

Emergency Load Shedding - Optimize Emergency load shedding pays for itself in one or two outages Applies to sites with generation or multiple utility

costs associated with repair or replacement of damaged equipment Major Paper Mill reduced downtime from 18 hours to 6 hours by eliminating having to

Because of this, the mill saved $540,000 000 due to the Emergency Load Shed system allowing a faster restart of the plant.

25 Emergency Load Shedding - Optimize Emergency load shedding pays for itself in one or two outages Applies to sites with generation or multiple utility sources Protects generators from dangerous, damaging overloads Maintains critical loads during outages Optimizes sources and critical loads Reduces costs associated with repair or replacement of damaged equipment Major Paper Mill reduced downtime from 18 hours to 6 hours by eliminating having to come from a black start t condition. Because of this, the mill saved $540, due to the Emergency Load Shed system allowing a faster restart of the plant. The Tie-Line Control System functionality caused a demand shed of 28 MW. If the utility tie breaker remained closed the customer would have had a demand penalty of: 28 MW * $50k/MW The demand shed functionality saved the customer $1,400,000 Copyright 2010 Rockwell Automation, Inc. All rights reserved

26 Chiller Control - Marina Energy - Optimize Background information Marina Energy to use its Marina Thermal Facility (MTF), a 26,000-sq. ft. plant to provide the hot and chilled water needed to heat and cool the Borgata casino hotel in Atlantic City. The $54-million plant is capable of providing nearly 15,000 gallons of chilled water and 2,600 gallons of heated water per minute The Borgata features more than 2,000 guest rooms, 135,000 sq. ft. of gaming, restaurants, a 35,000-sq. ft. spa, lounges, bars, shopping and entertainment facilities and 70,000 sq. ft. of conference space. Goals and Objectives A single coordinated energy system for monitoring and control of utilities that also links third-party components for easy interoperability Provide the highest level of performance, flexibility and ease of use, at the lowest total cost of ownership Automated system to continuously provide environmental and mechanical data Web-based reporting to allow for rapid information sharing Copyright 2010 Rockwell Automation, Inc. All rights reserved.

27 Chiller Control - Marina Energy - Optimize Technical benefits Improved operational response Information can be viewed and the entire system configured and adjusted from a single point of control Improved data collection Data collected from more than 300 points throughout the plant. A single program provides complete picture of plant operations in real time Financial benefits System had a one-year cost-savings payback Operational improvements, efficiencies and reduction of the total cost of ownership Total cost of project was more than $100,000 below estimate Integrated solution that resulted in a more efficient and lower cost implementation Copyright 2010 Rockwell Automation, Inc. All rights reserved

Food Plant Energy Assessment Example Unique opportunities exist for saving energy in food plants many energy- intensive processes

Conducted a rapid assessment high impact study over a 2-day period recommendation provided in an assessment report Areas of

Program supported by CIFT Center for Innovative Food Technology Energy saving opportunities include steam loss & lighting reduction

28 Food Plant Energy Assessment Example Unique opportunities exist for saving energy in food plants many energy- intensive processes Food industry identified by DOE as among the top energy consuming industries Reviewed historical energy data and process diagrams Conducted a rapid assessment high impact study over a 2-day period recommendation provided in an assessment report Areas of opportunity presented spanned lighting, steam, and operational / process changes Currently pursuing another food plant study Program supported by CIFT Center for Innovative Food Technology Energy saving opportunities include steam loss & lighting reduction Copyright 2010 Rockwell Automation, Inc. All rights reserved. Simulation studies can give insight into alternative process options & energy impact

Implement energy savings projects Energy Assessment Results 48 projects identified 14 projects

29 Driving Energy Savings at a Food Plant Annual Utility Spend Electricity $2.4M Natural Gas $2.7M Water $52K Energy Initiative Goals Develop measurement strategy Benchmark facilities Implement energy savings projects Energy Assessment Results 48 projects identified 14 projects less than 18 month payback $620K annual savings Copyright 2010 Rockwell Automation, Inc. All rights reserved. 29

30 Moisture Control Before & After Food Production Moisture Content Target Before Tests After Approximately 10-15% variation reduction, improved controllability. Enabled moving the target to an economically more favorable setting. Copyright 2010 Rockwell Automation, Inc. All rights reserved. 30

Rockwell Automation Milwaukee Energy Initiative Facility is 3,000,000 square feet Annual energy

3M Opportunity Significant baseline consumption Peak Demand component Implement a monitoring

Challenges Campus grew over 100 years Primary use evolved from manufacturing to office Difficulty

31 Rockwell Automation Milwaukee Energy Initiative Facility is 3,000,000 square feet Annual energy budget is $4.3M Opportunity Significant baseline consumption Peak Demand component Implement a monitoring strategy Department accountability Cost savings! Challenges Campus grew over 100 years Primary use evolved from manufacturing to office Difficulty aligning meters with functional areas Legacy networks in place Expected results 75 existing power monitors Dashboard view of energy usage Identify targets for cost saving investments Copyright 2010 Rockwell Automation, Inc. All rights reserved. 31

32 MKE Campus Energy Costs Utility Consumption Cost Average (Mo) Total Average (Mo) Total Unit Measure Steam $ 104, $ 1,144, $ $/mlbs Electric 4,593,990 45,939,904 $ 292, $ 2,924, $ 0.07 $/kwh Water 4, , $ 4, $ 53, $ 1.05 $/CCF Sewer 23, , $ 12, $ 145, $ 0.76 $/1000Gals TOTAL $ 4,268, Last year the site spent approximately $4.3 millions in energy including electric power, steam, and water. Based on calendar year for the period from Sept/07 to Jun/08 Monthly averages Natural Gas data was not available at the time. Electricity is 60 % of the MKE energy cost Copyright 2010 Rockwell Automation, Inc. All rights reserved. 32

33 Facility Assessment Observations Electrical Some Transformers very lightly loaded Only 30% of Campus utilizing lighting automation No Demand Management or Load Shedding solutions installed Data Center electrical conduit unusually warm to the touch (possibly due to harmonics and/or capacity constrains) HVAC Many Air Handlers (AHU) still have 3-way valves in the cooling loop defeating the purpose of the Chilled Water (CHW) primary/secondary y loops Many 40 year old AHU s with original motors Original Honeywell electro-mechanic or pneumatic controls Data Center at max capacity on cooling loops utilizing city water at 250 gpm for addition capacity Chillers Inoperable secondary CHW loop differential pressure controls Primary chilled water supply gets mixed with the return making the chillers work harder. Free-cooling heat exchangers are not in service Steam Steam system is uncontrolled Compressed Air Compressed Air system leaking (Leakage is approx 70Kwh or $41k/yr) General Deferred capital investment (HVAC, steam traps, etc.) Lack of documentation of the original systems (Design data, equipment schedules, single line drawings, layout, etc..) Copyright 2010 Rockwell Automation, Inc. All rights reserved. 33

Trend Observations Total MKE Usage 4500 KW base load costs $1.

Statistical Observation Pareto of MKE Campus Energy Users 1) 8N23-SW = data center primary line 2) Chiller 2 = chilled water plant 3) 5N24-SE = data center alternate line 4) 4G28-1 = Factory North

35 Statistical Observation Pareto of MKE Campus Energy Users 1) 8N23-SW = data center primary line 2) Chiller 2 = chilled water plant 3) 5N24-SE = data center alternate line 4) 4G28-1 = Factory North Floors 2, 3, 4 5) 1P-SW = hot water pumps, chilled water pumps, water heaters & exhaust fans 38% of the Milwaukee Electricity is consumed by the Data Center and Chiller Plant Data = Jan 09 Copyright 2010 Rockwell Automation, Inc. All rights reserved. 35

Starting up before 10 AM will save $12,000/yr in Demand

36 Energy Management Optimize Example (Operational) Base = 400 kw (~$200k/yr) Peak = 900 kw On-peak time 10am to 10pm Starting up before 10 AM will save $12,000/yr in Demand Charges Copyright 2010 Rockwell Automation, Inc. All rights reserved. 36

37 Cost Saving and CO 2 Reduction Initiative Observation can reveal quick savings (aka Low Hanging Fruit) $44k per year in electrical savings and 427,000 Kg of CO 2 per year Shutdown of lightly loaded substation In process $25k Annual Savings, $8k in labor (Payback = 3.4 Months) 332,000 Kg of CO 2 Annual Reduction Reprogram automated lighting system to include holidays In process $7k Annual Savings, $1.8k in labor (Payback = 4 Months) 95,000 Kg of CO 2 Annual Reduction Less than half of the MKE lighting on an automated system Start up High Current Test Lab equipment before 10 AM - Implemented $12k Annual Savings, (Payback = 0 Months) Low Hanging Fruit requires someone to continually analyze the data Copyright 2010 Rockwell Automation, Inc. All rights reserved. 37

38 Energy Management Monitor Example Chiller electrical load unaffected by outside air temperature ---This is flag for evaluation should expect some variation Copyright 2010 Rockwell Automation, Inc. All rights reserved.

39 Energy use data on Tuesday, August 10, 2010 showing kitchen line current (red) & Center South line current (green) - Compare to real-time usage displayed now Copyright 2010 Rockwell Automation, Inc. All rights reserved. 39

40 Energy Savings Projects Typical Savings Projects Capital Cost Annual Savings Compressed dai Air $142, $128, Process (oven, cooker, etc) Optimization $330,000 $230,000 Tank Venting $20,000 $15,000 Ammonia Compressors $42,650 $28,500 Mixer VFDs $30,000 $22,000 Boiler Optimization $37,400 $46,000 Production Energy Save Mode $145,000 $104,000 HVAC Optimization i $200, $100, Demand Management PEM's Systems $400,000 $200,000 Plant Energy Mgmt Training $20,000 $40,000 Totals: $1,367,450 $913,700 Copyright 2010 Rockwell Automation, Inc. All rights reserved. 40

41 Goal: Cost Reduction Projects Carbon Footprint Reduction Waste Reduction Optimized Utilities Usage Energy Cost Savings Demand Cost Reduction Rate Optimization Quality & Yield Improvement Process Optimization Operations Energy Ownership Associate Energy as Ingredient Provide Tools and Training for Further Improvement Sustainable Production Is Good Business - The Next Lean Copyright 2010 Rockwell Automation, Inc. All rights reserved. 41

42 Sustainable Production Roadmap Destination End Goal Reduce Carbon Footprint Cost-effective emissions reductions Effective management programs Verifiable performance Implement Optimization Activities Communicate Results & Performance Evaluate Energy Footprint & Prioritize Assessments Actions Evaluate Footprint & Prioritize Actions Determine GHG Emissions Inventory Develop Energy Strategy Copyright 2010 Rockwell Automation, Inc. All rights reserved. 42

43 Demand Response in a Factory Demand-Response in a factory is complex compared to Residential/Commercial since stopping/starting processes can increase production costs May lead to faults/failures Some processes may be hard to restart May require reassigning production crew for machinery taken off-line May need intermediate buffer for material storage to continue production in other parts of the process Inherent difficulty discerning critical from non-critical assets Peak Time 0 Time 1 Time 2 Peak Peak Peak Time 0 Time 1 Time 2 Time 0 Time 1 Time 2 Time 0 Time 1 Time 2 Load shifting Load shedding Load limiting Requires domain knowledge, and tight integration into Factory Automation Control Systems Copyright 2010 Rockwell Automation, Inc. All rights reserved.

Reduced manpower Efficiently shed loads Improved power factor Reduced voltage sags Benefits Installed cost $300k

44 Challenge Success Story: Demand Response Steel Mill (manual DR) 90,000 MWh / month Electric bill = $2.7M / month Unreliable & obsolete Demand control algorithm very inefficient Solution replaced existing system Reduced manpower Efficiently shed loads Improved power factor Reduced voltage sags Benefits Installed cost $300k System payback < 5 mo Ongoing savings of $70k / mo from reduced demand levels Copyright 2010 Rockwell Automation, Inc. All rights reserved.

45 Manufacturing Plant as a Smart Node on the Smart Grid SMART GRID Automated widely distributed energy delivery network Characterized by a 2-way flow of electricity and information Capable of monitoring & responding to changes in everything from power plants to customer preferences to individual appliances SMART NODE Automated Energy Management System tightly integrated with Factory Automation Characterized by a 2-way flow of electricity and information Capable of managing energy demand d by simultaneously l optimizing economic and performance requirements Copyright 2010 Rockwell Automation, Inc. All rights reserved.

46 Factory of the Future: Manufacturing Sustainability Seamless Integration of Conservation Energy efficiency Demand response and Emissions control With production Manufacturing Transformed to optimize production, energy and emissions Copyright 2010 Rockwell Automation, Inc. All rights reserved.

The Manufacturing Transformation From Passive Management Outside perspective of energy use Take energy costs at face-value Allocate energy costs by square foot that is part of cost of doing business

of energy optimization Leverage price incentives for load management Understand demand for each line and machine Add energy to the bill of materials and manage it as a cost of goods sold Modify

47 The Manufacturing Transformation From Passive Management Outside perspective of energy use Take energy costs at face-value Allocate energy costs by square foot that is part of cost of doing business Schedule production solely around labor, desired output, t or maintenance schedules Make reactive changes to external events Pay unexpected taxes and penalties To Active Management Inside perspective of energy optimization Leverage price incentives for load management Understand demand for each line and machine Add energy to the bill of materials and manage it as a cost of goods sold Modify production schedules according to energy demands, d leveraging off-peak times Predict energy loads before reaching peak Modify production for maximum profitability For companies impacted by emissions: Emission i credits as a cost of doing business Emission i credits as a company asset Copyright 2010 Rockwell Automation, Inc. All rights reserved.

The Big Picture : Smart, Safe and Sustainable Manufacturing Manufacturing has been undergoing a transformation of convergence in information and automation technologies that has enabled higher

48 The Big Picture : Smart, Safe and Sustainable Manufacturing Manufacturing has been undergoing a transformation of convergence in information and automation technologies that has enabled higher degrees of supply chain integration Manufacturing is undergoing another major transformation Energy and Emissions are beginning to be viewed as cost of goods sold and tracked across supply chains that span the globe as well as across the entire lifecycle of a product Can be assessed in real time using low cost transducers, communications and targeted modeling and analytic tools Permits manufacturers to understand, predict and intelligently manage the variable costs associated with energy Dynamic response to continually changing conditions of raw materials, processes and energy permits optimizing the process, the plant, and the enterprise leading to a sustainable organization Copyright 2010 Rockwell Automation, Inc. All rights reserved. Sustainable Enterprise Sustainable plant Scheduling for Energy/Emissions Optimized production. Plant Energy management Energy per facility Energy per line Energy sensing at Machine level Leverages existing Factory Automation Controls and Information with Developments in the Grid of the Furture

49 Industrial Strategy for Competitiveness P Percent of GD Federal R&D Funding Engineering/Physical Science Source: American Physical Society of Public Affairs National Press Club, Sep 9, 2009 Mr. Keith Nosbusch Chairman & CEO of Rockwell Automation Ensure legislative priorities are in line with those of manufacturers and general public Double federal R&D funding for manufacturing innovation Establish a $2 billion public-private partnership program to research and develop a manufacturing "greenprint" for smart, safe and sustainable manufacturing Expand the federal R&D tax credits to include investments in advanced technologies that automate and modernize factories Provide federal assistance for public-private partnerships to create demonstration projects that foster manufacturing innovation Offset the 17% cost disadvantage that U.S. manufacturers face Copyright 2010 Rockwell Automation, Inc. All rights reserved.

50 Concluding Summary Remarks We are in an era of transition - fundamental changes are occurring (technology, resource availability & cost, social, political, standards) that are changing the way energy and environmental resources are viewed and managed strategic opportunities exist Many organizations are realizing far reaching benefits from energy reduction and energy management techniques Opportunities exist to leverage outside funding, collaborator interest, and market preference for energy-astute companies Concerns for energy and the environment are now integral to business planning discussions & operations management The solution needs to be integral to the process and the culture! The leaders of tomorrow will embrace these issues as part of how the enterprise is designed, managed, and reported Copyright 2010 Rockwell Automation, Inc. All rights reserved. Copyright 2010 Rockwell Automation Inc All rights reserved

51 Lessons Learned and Insights from Case Studies in Industrial Energy Reduction Questions? For further information contact: Fred M. Discenzo, Ph.D. / Fmdiscenzo@ra.rockwell.com rockwell com / David Mayewski, Dmayewski@ra.rockwell.com / Copyright 2010 Rockwell Automation, Inc. All rights reserved. 51

52 Additional Information Recent AB Journal articles: Give Costs the Cold Shoulder Energy Strategy Makes a Difference Why do Utilities Care about Energy Efficiency? Raise the Bar for Energy Savings What the Mandatory GHG Reporting Rule Means to Manufacturers Other reports: Industrial Energy Efficiency Whitepaper - SUST-WP002 IMC for HVAC System Efficiency Whitepaper FANM-WP001A Energy Mgmt. Accelerator for Monitoring & Analysis IASIMP- QS016A Rockwell Automation Corporate Responsibility Report Copyright 2010 Rockwell Automation, Inc. All rights reserved. 52

Rockwell Automation ODVA Annual Meeting

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