March 2, 2009

Indiana companies TAP into energy savings

The Energy Efficiency Program is offered by the Indiana Manufacturing Extension Partnership Center through Purdue's Technical Assistance Program. Haynes International Inc. in Kokomo, Ind., worked with the center to reduce its annual costs of $9.5 million in natural gas and $5 million in electricity. The company, which develops technologically advanced performance alloys for industries such as aerospace and chemical processing, also sought help to build a skilled trades work force.

"We’re looking for employees who can problem solve and troubleshoot, and go beyond just following instructions," said Jean Neel, Haynes vice president for corporate affairs. "Like all manufacturers today, we know that the kind of talent pool to keep our business growing strong requires a combination of safety awareness, environmental awareness, technical skills, problem solving and continued education."

Before Haynes began working on energy efficiency, TAP conducted an assessment. It identified ways to decrease utility bills, decrease production costs, and curb emissions throughout the facility. The plant's large furnaces were one area of focus. By addressing oxygen levels, gas consumption, quality demands, processes and leaks, TAP helped the company save $500,000 in gas usage in a few months.

"Given our enormous gas and electric bills, even a small percentage in savings translates into big dollars," Neel said.

These savings were typical of similar assessments conducted at other manufacturers in north- central Indiana. Ethan Rogers, Energy Efficiency program director, said $1.12 million in annual cost savings were identified through just eight company energy audits during the last quarter of 2008. The companies will save enough natural gas to heat 1,020 homes.

For Haynes, the energy assessment was just the start of an ongoing sustainability program. The company also assembled an internal team to be trained on energy efficiency. This team routinely reviews the company’s production processes, upgrades and capital improvements.

Haynes next plans to create an employee team that will focus on green training practices. Rogers said north-central Indiana's WIRED Green Workers Certification will take a work force approach to environmentally friendly manufacturing.

"Most ideas in clean manufacturing come from the production line, those who work daily on the plant floor," Rogers said. "Starting there, we know we can drive efficiency and environmentally clean practices throughout the plant."

Workers from Haynes and other companies who participate in the program will learn the basics of clean manufacturing, including carbon credits, water resource management, waste minimization, alternative energy sources and the impact of the manufacturing process on the environment.

For Haynes, these activities fit in with an established program of recycling and an attention to environmental engineering that also protects the company's bottom line.

"Working with TAP was an easy decision and a smart investment," Neel said.

The Energy Efficiency program is part of a three-year pilot initiative in north-central Indiana supported by a $15 million WIRED grant from the U.S. Department of Labor. The initiative is one of dozens across the country in which regional government, economic development and business leaders work together to develop work force improvement strategies that will have long-lasting economic impact on a region.

"For north-central Indiana, one of the key strategies is to develop 21st century talent," Rogers said. "To succeed, today's workers and their employers need many new skills compared to what was needed even just 10 years ago. Environmental training empowers workers to identify and implement waste reduction and make other improvements."

Writer: Marydell Forbes, (765) 496-7704, mforbes@purdue.edu

Sources: Ethan Rogers, (317) 275-6817, earogers@purdue.edu

Jean Neel, (765) 456-6489, jneel@haynesintl.com

Purdue News Service: (765) 494-2096; purduenews@purdue.edu

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