Impact evaluation of an energy dollar sign avings plan project at Elf Atochem North America

This impact evaluation of an energy conservation measure (ECM) that was recently installed at Elf Atochem North America (Atochem) was conducted for the Bonneville Power Administration (Bonneville) as part of an evaluation of its Energy savings Plan (E$P) Program. The Program makes acquisition payments to firms that install energy conservation measures in their industrial processes. The objective of this impact evaluation was to assess how much electrical energy is being saved at Atochem as a result of the E$P and to determine how much the savings cost Bonneville and the region. The impact of the ECM was evaluated with a combination of engineering analysis, financial analysis, site visit and interview, review of previous program submittals and review of process evaluation results from 1989. The ECM itself consists of adding anode area to each of the sodium chlorate (chlorate) cells at Atochem's Tacoma facility. Increasing the anode area reduces the current density, which reduces cell resistance at the same current, thus reducing energy consumption at the same chlorate production rate. Energy savings resulting from this ECM are expected to average about 24,000,000 kWh/yr or about 1000 kWh/ton of chlorate produced. The net cost of the ECM was $1,410,400, and Atochem receivedmore » a payment of $212,500 from Bonneville for the acquisition of energy savings. The levelized cost of these energy savings to Bonneville will be 0.7 mills/kWh over the ECM's expected 15-year life, and the levelized cost to the region will be 5.7 mills/kWh. Bonneville's offer to pay Atochem $212,500 via the E$P Program was viewed by Atochem management as a big incentive that made a difference.« less