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dc.contributor.authorSmets, Michiel
dc.date.accessioned2021-04-27T19:02:02Z
dc.date.available2021-04-27T19:02:02Z
dc.date.issued2018
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6852
dc.description.abstractOver the last 20 years, energy management has gained importance in almost every company active in a competitive industry. This new focus is a result of the increasing commodity prices, changing regulation, influence of NGO's and public opinion. In addition, other departments (e.g. marketing, strategy, finance, …) have found their way into energy related topics as well. Today, this has made energy management complex as it requires a holistic approach. Cargill Herent is a malt production plant of the multinational company Cargill. Their energy demanding process requires both electricity and heat. Therefore, Cargill Herent has contractual agreements with energy suppliers and produces its own energy through CHP installations. Because energy has become such an important topic in business, Cargill has developed an energy strategy which is mainly focused on energy efficiency and cost reduction. However, to remain competitive in the future, management doubts whether energy efficiency should be the main focus. Therefore, a new approach towards energy strategy and management was researched based on the dynamic opportunity assessment. The dynamic opportunity assessment is a 5-step circular process which is used for strategy determination, execution and evaluation. First, an internal company and external market analysis on the energy level was conducted. This to obtain insights in the current energy management and how Cargill prepares itself for the future. The internal analysis contains a cost breakdown structure for the total energy supply chain based on quantitative data. The external analysis contains a qualitative description of the main trends in the energy market. Next, a SWOT analysis was performed to develop an energy strategy on the plant level: * Optimize the energy efficiency of production processes and energy related assets. *Evaluate existing practises, methodologies, suppliers,… related to energy on a regular basis. * Explore and evaluate upcoming trends within the energy market and leverage by strengths. *Dedicated team for energy management and follow up on the plant level is advised. In addition to strategy development, an integrated energy management tool which can be used for evaluating energy projects pre- and post-implementation was developed. This tool refers to supply chain management, risk management, innovation management and financial management as core sub-topics of energy management. Fitting with the developed strategy, different investment projects were evaluated. Three projects were selected for further investigation and a business case analysis: Automated steering of the CHP based on recommendations from the cost breakdown analysis. * An integrated approach for emission- free heating, heat buffering and heat transfer between the different production lines of the plant. * A new revenue stream by partnering with an aggregator for grid stabilization. These 3 projects were evaluated based on financial investment KPI's (ROI, payback, NPV, IRR) and the energy management framework provided. The following investment advice was given: * Implement the automated steering program for the CHP installation. In addition, all repairs and investments needed to reach the theoretical optimum should be further investigated. This to leverage the current energy assets. *Further investigation on the initial investment cost for the heating, buffering and heat transfer system should be performed in addition with a technical study and feasibility analysis. This should give a more trustworthy analysis of the costs and narrows down the range of financial KPI's. Re-evaluation of the business case should be performed regularly. * Start a trail period with an aggregator and assess the impact on the production, especially heat production. This project is suggested to leverage new opportunities in the energy market. The supplied framework resulted in a solid and structured analysis of the energy strategy and energy management for Cargill Herent. The results are new insights for the energy strategy in which energy efficiency is still very important, but more long-term solutions are offered and external opportunities are leveraged. In addition, this new approach focusses on constant re-evaluation of the energy management which is necessary in a fast-changing energy market.
dc.language.isoen
dc.titleDynamic opportunity assessment as integrated approach towards energy management
dc.source.numberofpages140
vlerick.knowledgedomainSpecial Industries : Energy
vlerick.supervisorMeeus, Leonardo
dc.identifier.vperid151626
vlerick.companynameCargill France SAS
vlerick.companysupervisorDe Samblanx, Steven
vlerick.programmeMGM Leuven - MIE
vlerick.typebusresprojectIn-Company Project


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