OBJECTIVES
GM's Global Energy Team (GET) is responsible for implementing the company's global energy strategy. This team drives strategies to reduce energy use and costs. The GET is composed of regional energy managers from GM North America (GMNA), GM Europe (GME), GM Latin America, Africa and the Middle East (GMLAAM), and GM Asia Pacific (GMAP). The team is coordinated by GMNA Worldwide Facilities Group, Energy and Utility Services, and meets on a quarterly basis.
Global Data
GM has been collecting global energy data since 1999. Collecting standardized energy data for over 150 facilities around the world poses significant challenges due to regional, technical, and cultural differences. To enhance the quality of these data and the efficiency of their collection, GM has implemented a new information system across all facilities.
Global Information System
In 2001, the WFG-Energy and Utility Services Group launched a new Internet-based approach for managing its worldwide utilities data in North America. The system has now been expanded to cover GM’s global operations. The system is used to receive, validate, and store data for utilities usage, such as natural gas, electricity, water, and steam. The system verifies utility billing accuracy against internal meter readings and is the key enabler for site utility and site environmental managers and engineers to monitor and manage global utility usage and cost through a variety of common tools and reports.
In addition to the two-layered accuracy that comes from using both bill and meter reading data, the system provides Internet-based utility trend charts and related information instantly to its network of GM global site managers around the world. In addition, standardized reporting allows information to be viewed for multiple sites and be easily understood, without the need to decipher information provided in different ways from different facilities. By storing utility invoices, the system provides accuracy and facilitates enhanced decision making related to utility use.
GM has deployed this system across its global facilities, and the Energy and Utility Services Group is actively training personnel at all facilities to learn how to effectively manage the system. Training sessions were conducted in Europe during 2006. A major benefit of the system is that there are multiple levels of checks and balances on all sources of data. This process provides a comprehensive picture of global utility use and has been instrumental in providing the necessary data to reveal cost savings over the cost of the initial investment.
Global Target
During 2001, a corporate target was established to reduce energy use by 10 percent globally by 2005 from a 2000 baseline; the Performance section below outlines the results of our efforts. In addition, a new corporate target to reduce energy use by 10 percent globally by 2010 from a 2005 baseline was established. GM also has global CO2 reduction targets which are discussed in the Greenhouse Gases section of this report.
Cost Council Initiatives
To further focus energy conservation efforts, GM introduced an integrated Cost Council Initiatives Program. This has been fully implemented in GMNA and is in the process of being implemented in GME and GM LAAM. The Program defines Best Practices in each region, drives implementation at facilities, and uses scorecards to monitor progress. The process is supported by top management and progress is reported monthly at the facility level and quarterly at the regional level. These initiatives have significantly accelerated global energy conservation efforts.
Plant-level Initiatives
An example of Cost Council Initiatives implemented at the plant level is in GM's paint shops. Because of their complexity, it has traditionally been considered too difficult to shut down paint operations for short periods, such as weekends. GM now has implemented weekend paint shop shutdowns at all facilities, saving eight to ten percent of the energy consumed. Further examples of Cost Council Initiatives include:
- Installing common energy management and control systems for lighting, heating, ventilation, and air conditioning;
- improving compressed air systems and reducing compressed air pressure;
- shutting down equipment during non-production times;
- involvement in voluntary energy programs that aim to improve energy efficiency (see below).
Plant-level Energy Sufficiency Plans
Energy Sufficiency Plans are also part of the Cost Council Initiatives and involve employees taking responsibility for energy conservation in their own work areas. These plans give detailed procedures for turning off equipment, lights, and other machinery, as well as identifying leaks, such as compressed air. The sufficiency plan lists the individual responsible and the expected savings. The plans are very successful in helping to save energy.
The Energy and Utility Services Group (EUSG) provides support for employee training, savings calculations, and performance monitoring. Monthly meetings between the EUSG and Plant Management to review performance and energy trends facilitate the success of energy efficiency initiatives. The Worldwide Facilities Group is making significant progress in establishing energy sufficiency plans for all GM operations.
Voluntary Energy Programs
GM believes that participation in voluntary measures with government agencies, such as the U.S Environmental Protection Agency (EPA), is an effective way to drive change and efficiency improvements. GM is involved in many voluntary energy programs aimed at reducing the environmental impact of energy use.
Although the two examples shown below focus on U.S. programs, the lessons learned are being implemented across our global operations. Click here for a full list of voluntary energy and greenhouse gas programs.
EPA Green Lights Program
GM continues to participate in the U.S. EPA Green Lights Program for the fifth year. During 2005, GM completed lighting assessments and implementing improvements at most GMNA assembly, stamping, and powertrain plants. The lighting efficiency plans generally involve installing more efficient fluorescent light fixtures, which provide similar light levels with significant energy savings, as well as removing unnecessary lighting and installing motion sensors where appropriate.
As a result of GM’s Green Lights initiative, 20 GM plants have now received EPA Green Lights Certification. An additional four plants have completed Green Lights upgrades with two more plants expected to be completed by the end of 2006. The lessons learned from the EPA Green Lights Program have been comprehended in GM’s Lighting Standards and are routinely implemented in new building construction and product programs. GM’s newest facility, the Lansing Delta Township plant, is equipped with energy-efficient lighting and controls resulting in less than 60 percent of the electric power usage allowed by Michigan’s energy code.
Similar programs have been implemented at three Mexican and six Canadian sites to achieve cost-effective lighting system improvements.
EPA Landfill Methane Outreach Program and EPA Green Power Partnership
GM participates in the U.S. EPA Landfill Methane Outreach Program, a voluntary program to expand the use of landfill gas for plant heating and electrical generation. In 2005, five GM facilities utilized methane gas from landfill sites as boiler fuel: the Toledo, Ohio powertrain plant; the Oklahoma City, Oklahoma; Orion, Michigan; Fort Wayne, Indiana; and Shreveport, Louisiana assembly plants. Annual savings at our plants burning landfill gas exceed $500,000 per location.
According to a 2003 study by the World Resources Institute and the Green Power Market Development Group, GM was the largest non-utility direct user of landfill gas in the U.S. By the end of 2005, GM’s direct utilization of landfill gas was 1.5 TBTUs.
In addition to burning methane in plant boilers, GM also is committed to purchasing two percent of the electrical load at our Service Parts Operations from environmentally responsible power sources through the EPA Green Power Partnership. In May 2003, greener power generated from landfill gas began flowing to Service Parts Operations locations in Flint and Grand Blanc, Michigan. GM buys approximately 13 million kWh of electricity each year from the Granger Energy landfill gas-to-electricity project.
As a result of the Methane Outreach Program and the Green Power Partnership, GM expects renewable energy to approach two percent of its North American total power needs.
Performance
In 2005, GM consumed 31,442* gigawatt-hours (GWh) of energy from various sources including electricity. This represents a 0.77 percent decrease over 2004 and a 14.8 percent decrease against 2000.
*2005 Data now includes GMDAT facilities (Bupyeong, Boryeong, Gunsan & Changwon), China facilities (Shanghai & Shenyang), and the GM South Africa (GMSA) Facilities. Previous data (2000-2004) did not include these facilities, with the exception of Shanghai, China. Energy Consumption for 2005 (excluding GMDAT, Shenyang China and GMSA) was 30,164 GWh, which corresponds to an 18.2 percent reduction.
