Starting with 3 sites in Canada, a Fortune 100 Automotive OEM was looking to invest in green technology to both meet their ambitious corporate carbon reduction goals, as well as continue to provide reliable manufacturing services. They needed support on which technologies to consider and to determine what solution would meet their goals.
CHALLENGE:
A Fortune 100 Automotive OEM was looking to invest in green technology to both meet their ambitious corporate carbon reduction goals, as well as continue to provide reliable manufacturing services. They needed support on which technologies to consider and to determine what solution would meet their goals.
They began with 3 sites in Canada, each with a unique gas & electric load and manufacturing footprint. All 3 sites were located on a clean and inexpensive electric grid. A complex incentive structure for renewable energy and an escalating carbon tax was also present.
SOLUTION:
Xendee modeled seven different renewable technologies on each site and chose the optimal technology size and mix. Each technology was modeled with its own incentive schemes (a mix of tax rebates & accelerated depreciation), and the overall project considered a year-over-year increase in carbon tax for 15 years. Xendee considered net metering, subject to the local constraints, i.e., limiting exports to no more than purchases.
RESULTS:
Xendee first considered the trade-off between cost and carbon, and provided a curve of solutions between a minimum cost and minimum carbon solution. Next, Xendee optimized the investment schedule needed for a minimal cost and a net zero solution at each site, allowing investments every 5 years. The results for these 3 sites are being reviewed internally to support a business case for scale-up across North America.
Xendee
