Energy Performance

An efficient energy management system depends on the effective monitoring of energy performance, by means of specific Energy Performance Indicators (EnPI).

This system allows CNH Industrial to measure the benefits and effectiveness of ongoing initiatives, plan improvement measures, and establish new and ever-more challenging targets. Energy performance and the achievement of the targets specified in the Action Plan continued to be monitored through the Energy Monitoring & Targeting (EMT) management system, in addition to the comparison of performance levels at the various plants. EMT was extended to 49 CNH Industrial plants, reaching and surpassing the stated target of covering 95% of energy consumption, thanks to the system’s full deployment across all Trucks and Commercial Vehicles plants. The target for EMT coverage in 2014 is to reach 100% of energy consumption, demonstrating CNH Industrial’s strong commitment to monitoring consumption.

energy consuptionIn order to meet the targets set in the 2009-2014 Energy Action Plan, in addition to the monitoring of energy performance, the dialogue and communication between plants was enhanced by adopting a shared IT platform in every segment to identify solutions to energy-related challenges. This led to the identification and implementation of 149 improvement programs, in both technical and management spheres, while increasing individuals’ awareness and level of engagement. The methodologies applied to monitor the savings generated by the various initiatives were mainly standardized according to the International Performance Measurement and Verification Protocol (IPMVP), volume 1 (January 2012).

During 2013, CNH Industrial implemented the following short to medium-term management and engineering initiatives aimed at reducing energy consumption:

  • solar thermal systems for domestic water heating from renewable energy sources 
  • high-efficiency lighting systems (T5 fluorescent or dimmable LED technology) for production facilities, offices and external areas, combined with dimmers and motion sensors (see box below)
  • high-efficiency engines, electric motor inverters and variable speed air compressors;
  • detection and repair of compressed air leaks, and implementation of CROV pneumatic transformer in the Powertrain segment (see also page 179)
  • intensification of machinery shutdown when idle (see also page 179) 
  • intelligent stand-by equipment on machining centers and transfer lines 
  • exhaust gas heat recovery systems or air compressors 
  • use of radiant panels to optimize heating efficiency in large buildings and management of space heating in workshops through the accurate analysis of energy consumption and temperature 
  • painting booth air recovery 
  • building insulation 
  • hardware and software innovations for metal component processing machines.

LIGHTING SYSTEM RENEWAL IN SASKATOON
During 2013, the lighting system of the plant in Saskatoon (Canada) was completely revamped, replacing the 955 mercury and metal halide lamps with next-generation LED ceiling lights, equipped with presence detectors. This led to a 36% reduction in power requirements (from 471.6 kW to 303 kW). Moreover, the presence sensors mean the estimated working time was reduced from 8,256 to 4,140 hours per year.
This improves efficiency, providing the desired illumination when and where it is needed and eliminating waste at the source, as per the principles of World Class Manufacturing. The lighting system is also an improvement from an environmental and occupational safety point of view (it is mercury-free), is more performant (better light quality), and easier and cheaper to maintain, with a useful life of 133 thousand hours as certified by the U.S. Department of Energy, compared to 10-20 thousand hours in the previous system. The result is an annual saving of 1,939,817 kWh, equivalent to about €180 thousand per year, and a reduction of 1,629 tons of CO2 emissions per year. The plant invested about €735 thousand in the system, but the incentives granted to the project by the electricity provider reduced expenditure to €392 thousand, with a payback period of just over two years.

Direct and indirect energy consumption, by source, and associated CO2 emissions continued to be reported throughout 2013. For each source a clear specification of renewable and non-renewable energy sources was indicated. CO2 emissions were calculated according to the standards set out in the GHG Protocol and incorporated in the Company guidelines, while the indirect emissions from energy production emission factors were quantified according to the standards published in November 2013 by the International Energy Agency.

At CNH Industrial, the only sources of greenhouse gas emissions, besides CO2 emissions from energy consumption, are associated with the use of HFC substances with global warming potential (GWP) present in air-conditioning, cooling, and manufacturing equipment. Potential emissions from these substances (CO2 eq) are negligible compared with emissions from energy production: with an incidence of less than 0.5%, these emissions fall outside the reporting scope *.

ENERGY CONSUMPTION

energy consumptionIn 2013, CNH Industrial reported a total energy consumption * of 8,209 TJ, a 4% increase over the previous year; however, this occurred in parallel with an average 11% increase in hours of production, evidence of the significant contribution made by the efficiency initiatives implemented.

Regarding energy performance, measured as the Company’s total internal energy consumption divided by unit value (hours of production for Agricultural and Construction Equipment and Trucks and Commercial Vehicles, and units produced for Powertrain), CNH Industrial closed 2013 with highly satisfactory results thanks to the fall in energy consumption, attributable in part to the energy-saving measures carried out and to more efficient energy use and management.

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TOTAL ENERGY CONSUMPTION

CNH INDUSTRIAL WORLDWIDE (GJ)
Non-renewable  sources201320122011
Plants545963
Direct energy consumption                                                                                                                                                   
Natural gas3,662,7703,468,7323,623,116
Coal225.854195.905229.407
Diesel68.23765.24291.670
Liquefied petroleum gas (LPG)121.03985.08381.061
Other (HS and LS fuel oil)-7.13510.613
Total4,077,9003,822,0974,035,867
Indirect energy consumption                                                                                                                                                 
Electricity1,839,1241,932,4572,194,242
Thermal energy854.693860.121981.879
Other energy sources112.804104.991134.073
Total2,806,6212,897,5693,310,194
Total energy consumption from non-renewable sources6,884,5216,719,6667,346,061
Renewable sources201320122011
Plants545963
Direct energy consumption                                                                                                                                                   
Biomass36.39661.03263.979
Solar-thermal275100-
Total36.67161.13263.979
Indirect energy consumption                                                                                                                                                 
Electricity1,193,823985.694895.885
Thermal energy94.08773.54781.034
Total1,287,9101,059,241976.919
Total energy consumption from renewable sources1,324,5811,120,3731,040,898
Total energy consumption8,209,1027,840,0398,386,959

ENERGY CONSUMPTION BY ENERGY TYPE

CNH INDUSTRIAL WORLDWIDE (GJ)
 201320122011
Plants545963
Electricity13,056,5052,937,1933,109,919
Heat949,055933,7681,062,913
Coking coal89,24785,949114,281
Steam2---

(1) Electricity also includes compressed air.

(2) Steam is included in heat.

Annual global performance (in terms of energy consumption per unit of production) in the Agricultural and Construction Equipment segment fell by 22% compared with 2009 *, while for Trucks and Commercial Vehicles it fell by 41%. For Powertrain, energy consumption per production unit was down 27% compared with 2009 for the small cylinder engines and transmission division, and down 24% for the large cylinder engine division.

For the sake of consistency when describing CNH Industrial’s performance, notwithstanding the variety of Company product lines (vehicles, engines, components, etc.), KPIs were standardized: in 2013 the energy performance within the organization was 0.1505 GJ per hour of production, a drop of more than 5% over the previous year. CNH Industrial does not sell energy.

ENERGY CONSUMPTION PER PRODUCTION UNIT *

AGRICULTURAL AND CONSTRUCTION EQUIPMENT

GJ/hour of production

agricultural and construction equipment

TRUCKS AND COMMERCIAL VEHICLES

GJ/hour of production

trucks

POWERTRAIN (SMALL ENGINES AND TRANSMISSIONS)

GJ/unit produced

powertrain

OWERTRAIN (LARGE ENGINES)

GJ/unit produced

powertrain

ENERGY CONSUMPTION BY SOURCE

CNH INDUSTRIAL WORLDWIDE

ENERGY CONSUMPTION

TOTAL ENERGY CONSUMPTION FROM RENEWABLE SOURCES

CNH INDUSTRIAL WORLDWIDE (%)

TOTAL ENERGY CONSUMPTION FROM RENEWABLE SOURCES

CO2 EMISSIONS

CNH Industrial’s CO2 emissions were about 537 thousand tons, similar to last year, despite a slight increase in energy consumption. This value was due to the greater share of renewable energy in CNH Industrial’s energy mix.

DIRECT AND INDIRECT CO2 EMISSIONS (1)

CNH INDUSTRIAL WORLDWIDE (thousands of tons)
 2013201222011
Plants545963
Direct emissions (scope 1)226,748212,833229,360
Indirect emissions (scope 2)308,210318,288370,402
Direct emission from landfill gas1,9873.332n.a.
Total CO emissions2536,945534,453599,762

(1) CO2 is the only greenhouse gas significant to CNH Industrial’s processes (see also page 175).
CNH Industrial considers biogenic CO2 emissions to be those released by landfill gases combustion.
2009 was chosen as the base year for the 2010-2014 global planning, in line with the business plan. Direct CO2 emissions in 2009 were 199,545 tons.
Indirect CO2 emissions in 2009 were 346,158 tons.
There were no significant changes in emissions that triggered the recalculation of base year emissions.
The approach used to consolidate GHG emissions reporting is operational control.
For methodologies and emission factors used, see also page 213.

(2) The data for 2012 have been adjusted compared with those in 2012 Sustainability Report.

CO2 emissions

renewable sourcesThe improvement in CO2 performance * per production unit with respect to 2009 was, for each segment: 32% for Agricultural and Construction Equipment; 51% for Trucks and Commercial Vehicles; 47% for the Powertrain small cylinder engines and transmissions; and 40% for large cylinder engines. In 2013, the KPI standardized across the Company was 0.0098 tons per hour of production, a drop of 9% over the previous year.

Such significant results were mainly due to a reduction in energy consumption per unit value, but also to a greater use of renewable energy sources, which reached 16.1% of the total energy consumed by CNH Industrial in 2013, exceeding the 14% target set for 2013. The reduction in emissions due to the increased use of renewable energy was equivalent to 87 thousand tons of CO2.

 

CO2 EMISSIONS PER PRODUCTION UNIT 2009 was chosen as the base year for the 2010-2014 global planning, in line with the business plan. The indicator includes Scope 1 and Scope 2 emissions.">*

AGRICULTURAL AND CONSTRUCTION EQUIPMENT

tons of CO2/hour of production

AGRICULTURAL AND CONSTRUCTION EQUIPMENT

TRUCKS AND COMMERCIAL VEHICLES

tons of CO2/hour of production

TRUCKS AND COMMERCIAL VEHICLES

OWERTRAIN (SMALL ENGINES AND TRANSMISSIONS)

tons of CO2/unit produced

powertrain

POWERTRAIN (LARGE ENGINES)

tons of CO2/unit produced

powertrain

ENVIRONMENTAL MANAGEMENT OF TOUCH-UP SPRAY BOOTH AT SUZZARA 
One of the noteworthy projects for 2013 involved the paint department at the plant in Suzzara (Italy), which aimed at reducing the operation times of the Air Handling Unit (AHU) of the touch-up spray booth, limiting operation to the periods of use (eight hours per day), taking account of the time required to power on and off. Through this environmentally friendly approach, the AHU is powered to maximum capacity by the operator, and for a predefined period. At the end of this period, the AHU is brought to below maximum capacity, unless a new request is made by the operator. To ensure the correct use of the system and of the specially designed control panel, a training course was provided for both the touch-up booth operators and painting department maintenance personnel.  The project led to savings of over €60 thousand, due to the reduction in energy consumption (50%) for air treatment and lighting. The payback time is estimated at one year.

       

PARTICIPATION IN EMISSION TRADING PROGRAMS 

The energy used at CNH Industrial plants comes primarily from third-party power generation plants or directly from the national electricity grid. The plant in Vysoke Myto (Czech Republic) is the only one subject to the European system of emission trading (EU-ETS). 2013 marked the start of the third phase of the ETS, which sets a single emission cap for the whole of the European Union, a limit that will decrease linearly over time, even after the end of the third trading period (2013-2020). The energy generated in 2013 by the plant was approx.

90 thousand GJ, putting the plant in debt with regards to its CO2 emission allowance for that year, acquiring the necessary credits.

The only CNH Industrial site subject to the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme, i.e., the emission trading system present in the United Kingdom, is the plant in Basildon, one of the most energy-consuming in Europe. For the second year running, the site renewed its participation in the reporting and evaluation system (CRC - Performance League Table) in 2013, acquiring the necessary credits to offset its CO2 allowances.

SUCCESSFUL ENERGY RECOVERY AT TURIN ENGINE PLANT
Of particular interest is the CROV pneumatic transformer project at the Engine plant in Turin (Italy). The technology, now patented worldwide, is based on the principle of reducing lamination, responsible for the energy consumption of a fluid. The compressed air is in fact produced by the compressors and stored at a pressure of 8-12 bar, while operating pressure is 4-6 bar. This causes pressure jumps within the pneumatic network, where the excess energy is dissipated in the form of heat, due to the phenomenon of lamination. The CROV pneumatic transformer uses this excess energy to draw air from outside, recompressing and reusing it. This enables significant savings on the energy required by air compressors. 
Monitoring activities showed energy savings of 89%, equivalent to 422 GJ/year. The investment of about €24 thousand led to economic benefits worth €15 thousand, with a payback period of a little over a year and a half. Following the first phase in 2013, a second one will be developed in 2014 to apply this technology to the second of two loops of the assembly line.

GRI-G4
DMA; EN6; DMA; EN3; EN15, EN16; EN3; EN5; EN16; EN18
Sustainability Plan

Our commitments on page Our Commitment to Sustainability

Glossary
CO2 eq, DMA, GHG Protocol, GWP, HFCs, Indirect emission, Emission trading, KPI, Direct emissions, Inver ter, LED, WCM