OTA Case Study: Philips Lightolier (Energy Conservation)

Energy conservation reduces natural gas and electricity use and saves money

Philips Lightolier has adopted several energy efficiency measures that have saved the company close to one million dollars annually. The facility, which manufactures lighting systems, reduced energy consumption for its own lighting needs and enhanced the efficiency of its air compression system by monitoring compressed air movement and upgrading factory lighting. Improving the compressed air system reduced electricity use by 531,951 kWh and saved approximately $66,000 in annual energy costs. In addition, Philips Lightolier replaced all of its lighting and fixtures with more energy efficient models. This project reduced electricity use by 570,000 kWh and saved close to $71,000 per year. In total, these energy efficiency measures have saved the company 1,101,951 kWh and $137,000 annually. Thanks to an incentive program through National Grid, Philips Lightolier reduced its out-of-pocket costs by nearly 70 percent for these energy efficiency projects from $237,921 to $76,511. Both of these projects had payback periods of less than nine months. Since OTA last worked with Philips Lightolier, the company implemented new projects to reduce natural gas and electricity use, including phasing out rooftop heaters and using heat generated from the new powder coating line for 50 percent of the factory’s comfort heat. This has reduced natural gas consumption by 42 percent and has saved $345,000 from 2007-2011. Additionally, Philips Lightolier has recently completed the installation of a 2.0 MW wind turbine. The turbine is expected to save the company $480,000 in annual energy costs.

Background

Philips Lightolier is a vertically integrated reflector factory headquartered in Fall River, MA. The Fall River plant is about 310,000 square feet on a 31 acre property, and enjoys annual sales of approximately $155 million. This plant employs approximately 425 individuals and has implemented toxics use reduction methods since the late 1980s. More recently, Philips Lightolier has enacted specific measures to improve energy efficiency and conserve water throughout its facilities.

Energy Conservation

T5 high bays

T5 high bays

powder coated reflectors

Powder-coated reflectors

Philips Lightolier has developed several new methods of reducing energy consumption in the Fall River plant. Some of the new strategies implemented include revamping its compressed air system and replacing factory lights with more energy efficient lighting. The company reduced natural gas consumption by 42 percent and saved $345,000 from 2007-2011, primarily by phasing out its rooftop heaters and implementing low temperature cleaners on its three cleaning lines. The company was able to eliminate these heaters by using the process heat generated by its new powder coating line to provide comfort heat for half the facility. Additionally, Philips Lightolier reduced electricity use by 40 percent via the lighting upgrades, compressor improvements, and the installation of variable frequency drives (VFDs).

“Implementing toxics use reduction and resource conservation has helped us to provide Green Products from Green Processes. We’ve made a lot of friends over the years at OTA and TURI and look forward to our continued relationship with them and many more successful projects in the coming years.”

— Ron Westgate Plant Engineer, Philips Lightolier

Compressed Air Improvement

Compressed air system

Compressed air system

Philips Lightolier installed several new measures to ensure that its compressed air system was operating as efficiently as possible. Before beginning the leak repairs at the facility, the company conducted pre-metering and leak surveys to establish baseline reports. Following the leak repair and baseline report, the company installed a permanent air management system that also came with a vertical receiver and dryer, to monitor any potential leaks. These projects cost a total of $14,200, and were entirely covered by National Grid rebates. The following table lists each project, the total cost and subsequent National Grid rebate, and reduced electricity use (in kWh) per year.

ProjectProject CostNational Grid RebateReduced kWh/YearAnnual Cost Savings
Leak repairs~$7,500$3,300381,951$47,389
3,000 gallon vertical receiver, 520 cfm cycling dryer (including shipping)~$36,300$16,543100,000$12,407
Post-installation monitoring, distribution improvements$5,000$2,25050,000$6,204
Total$63,000$36,293531,951$66,000
Vertical receiver

3,000 gallon vertical receiver

These improvements have reduced the company’s energy use by 531,951 kWh annually, which translates to $66,000 per year in financial savings. Most notably, the company has reduced its electricity use by nearly 400,000 kWh annually from repairing air leaks, saving approximately $47,000 in electricity use each year. Through incentives from National Grid, the company was able to minimize costs related to these energy efficiency projects. In total, the company paid $26,707 – a payback period of only 20 weeks.

Factory Relighting

As part of the factory relighting project, Philips Lightolier replaced 100w metal halide (MH) and T12s with high bay T5s and T8 task lights. The project took two phases to complete. The first phase included assembly and shipping of 242 T5 high bays, 16 T8 emergency fixtures, and 77 T8 task lights.

ProjectProject CostNational Grid RebateReduced kWh/YearAnnual Cost Savings
Phase 1: Assembly and shipping of 242 T5 high bays, 16 T8 emergency fixtures, and 77 T8 task lights$83,000$43,000323,000$40,233
Phase 2: Fabrication, buffing, anodizing, and purchase of 291 T5 high bays, 17 T8 emergency fixtures, 83 T8 task lights$95,772$85,968247,000$30,767
Total$178,772$128,968570,000$71,000
Process tanks

Typical process tanks in one of Philips Lightolier’s state-of-the-art automated anodizing lines

Wind turbine generator

Wind turbine generator

Philips Lightolier reduced energy use by 570,000 kWh, and saved $71,000, annually from this project. Through incentives from National Grid, the company was able to minimize its costs to $49,804 – a payback period of 36 weeks.

Results

The compressed air and relighting projects reduced electricity use by 1,101,951 kWh, and saved the company $137,000 per year. In addition, Philips Lightolier recently installed a 2.0 MW wind turbine. The company plans to sell million kWh back to the grid, which will offset two-thirds of the company’s annual 6 million kWh usage. This is estimated to save Philips Lightolier $480,000 annually. Philips Lightolier has recently consolidated operations to maximize key competencies. During this time, the Fall River facility has maintained its profitability, largely due to the cost savings achieved through toxics use reduction and resource conservation efforts.

Download

Philips Lightolier Energy Conservation Case Study

Published 2012

Help Us Improve Mass.gov  with your feedback

Please do not include personal or contact information.
Feedback