IMPACT EVALUATION OF AN ENERGY SAVINGS PLAN PROJECT AT THE LINDE DIVISION OF UNION CARBIDE CORPORATION

This impact evaluation of an energy conservation measure (ECM) that was recently installed at the Linde Division of Union Carbide Corporation (Linde) was conducted far the Bonneville Power Administration (Bonneville) as part of an evaluation of its Energy Savings Plan (ESP) 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 Linde as a result of the ESP 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 interviews, and submittal reviews (Linde's Completion Report and Abstract). The ECM itself consists of replacing the plant's nitrogen feed compressor with a larger unit, which allows the plant to meet its argon demand using less compressed air and which results in net energy savings. Energy savings resulting from this ECM were 4,376,500 kWh/yr for the first two years after installation, but, because of a change in Linde's market position, long-term savings are expected to be lower at 2,549,200 kWh/yr. Linde considers energy consumption and savings on a per ton basis to be proprietary, so they are not reported here. The ECM cost $361,4.96 to install, and Linde received payment of $161,426 from Bonneville for the acquisition of energy savings. This ECM would not have been implemented without the acquisition payment from Bonneville. The levelized cost of these energy savings to Bonneville will be 4.5 mills/kWh over the ECM's expected 15-year life, and the levelized cost to th.e region will be 5.9 mills/kWh