It has been anticipated that energy management will gain increased interest amongst companies in a near future. Yet, even in energy-intensive companies, like process industries, energy management is seldom treated strategically. The purpose of this study is thus to investigate the necessary prerequisites for putting energy management on the strategic agenda in energy-intensive process industries. This is done by the means of a literature review and a case study, and the analysis is based on how energy management is treated from three perspectives; a strategic perspective, an energy system utilisation perspective, and an alternative revenue perspective. The case study shows, similar to other process industry companies, that the strategic importance of energy management, to a large extent, is neglected. The research also indicates necessary prerequisites, for each perspective, for highlighting the strategic importance of energy management for a typical company in the process industry sector.

In this paper we consider integrated planning of the supply chain at a multi-site pulp company. In addition to the traditional focus on pulp products, also energy aspects are considered, both in the form of raw material and as revenue generating products. The idea is that energy intense raw materials not only gives fibre to the pulp process but also generates an energy surplus that can be used in different ways to create additional value or revenues. The planning horizon is one year and monthly time periods are considered. Decisions included in the planning are; purchase and transportation of raw materials from harvest areas to pulp mills, production allocation by dividing the production among the pulp mills, energy mix by choosing the energy input at the pulp mills, and distribution of products from mills to customer. An MILP model for the entire supply chain is proposed. A number of different scenarios including real data from the case company are analyzed and evaluated. The aim of the study is thus to investigate the effects on profitability while taking energy issues into consideration.

The process industry in general is very energy-intensive, and therefore models focusing on energy can be very important in order to reach higher profitability. In this study, an optimization model of the supply chain in a pulp company, where energy is included with respect to its revenue generating capabilities, is used. Using real company data, and through an analysis of the model’s results, we show that higher profitability can be achieved when integrating energy into the planning process. Our findings show that when energy-intensive raw materials not only provide fibre to the pulp process but also generate an energy surplus, there is room for different planning approaches in order to maximize the total profit. This paper reveals promising changes that can be made for improving the current planning process. The scenarios considered involve market changes for energy demand and price, and also alternative production opportunities. A cross-analysis compares the scenarios in order to reveal additional relations that are important to consider. Depending on a price change of energy, the model prioritizes in its selection of pulp products to produce. From this we provide guidelines on where and when to increase or decrease pulp production. The model shows that the company can increase its total profit no matter which of the included energy parameters that increase in price. The paper contributes to previous research by enhancing the usefulness of this model for not only the case company as such, but also by illustrating and describing how the approach applied can be useful for other cases within the energy intensive industry.

How can a different planning of production and supply chain increase energy efficiency and effectiveness? This descriptive and rather exploratory case study investigates these possibilities by mapping the production system and its supporting energy system at a steel company’s production site. Several possibilities for improvement in the planning processes have been located and evaluated. Our findings resulted in identifying four different improvement areas: 1) planning slab furnaces, 2) utilizing embedded heat and shortening lead times, 3) broader frame when scheduling for decreasing waste at set-ups, and 4) demandresponse opportunities related to electricity price variations. The first improvement area: planning of the slab furnaces, shows the largest potential, both in terms of energy savings and reduced costs. The second and the third improvement areas are similar to each other in terms of potential energy savings, but if the lead-time also could be decreased in the second it would be more economically beneficial than the other. Additional possibilities are found in the fourth improvement area where electricity demand response actions by rescheduling the energy-intensive production into times of low electricity price might save electricity costs. To conclude, the company could reach both higher energy efficiency and profitability simultaneously, by utilizing the energy- and the production systems combined in a more efficient and effective way.

To save energy and reduce costs we suggest production planning to consider issues with clear and large impact on both usage and costs of energy. This paper investigates how the energy system interacts with the production processes early in the value chain at a steel company. A case study at one of the company’s production facilities reveals promising opportunities to achieve increased energy efficiency by considering an energy‐related approach in planning of the continuous slab furnaces and the hot rolling processes. Analysis shows that energy can be saved and costs reduced through an alternative planning approach without taking any noteworthy investment cost. Improved communication within the different parts of the organization plays also a significant part in actualizing the managerial opportunities located. Real company data provided from the case company SSAB is used and analyzed. This paper contributes with a model used for analytical calculations on how market conditions could motivate a company to select different planning approaches. This by choosing a primary and secondary slab furnace based on their energy characteristics. As such, when the opportunities are beneficial enough, the impact of energy issues on production and supply chain planning should not be neglected.