by Gary Mintchell | Jan 2, 2015 | Automation, Internet of Things, Manufacturing IT, News, Operations Management, Organizations, Standards, Technology
Last month, the Obama administration announced another smart manufacturing initiative through a “Notice of Intent to Issue FOA.” That is a “Funding Opportunity Announcement.” This follows another initiative in which the Smart Manufacturing Leadership Coalition was awarded funds to develop several test beds.
In government-speak:
DE-FOA-0001262: Notice of Intent to Issue FOA entitled “Clean Energy Manufacturing Innovation Institute on Smart Manufacturing: Advanced Sensors, Controls, Platforms, and Modeling for Manufacturing” (DE-FOA-0001263)
The purpose of this Notice of Intent is to provide potential applicants advance notice that the Advanced Manufacturing Office (AMO), on behalf of the DOE Office of Energy Efficiency and Renewable Energy (EERE), intends to issue a Funding Opportunity Announcement (FOA) entitled “Clean Energy Manufacturing Innovation Institute on Smart Manufacturing: Advanced Sensors, Controls, Platforms, and Modeling for Manufacturing” (DE-FOA-0001263).
This Notice is issued so that interested parties are aware of the EERE’s intention to issue this FOA in the near term. All of the information contained in this Notice is subject to change. EERE may issue a FOA as described herein, may issue a FOA that is significantly different than the FOA described herein, or DOE may not issue a FOA at all.
NO APPLICATIONS WILL BE ACCEPTED THROUGH THIS NOTICE. Please do not submit questions or respond to this Notice of Intent. Prospective applicants to the FOA should begin developing partnerships, formulating ideas, and gathering data in anticipation of the issuance of this FOA. It is anticipated that this FOA will be posted to EERE eXCHANGE early in the year 2015.
FOA Documents
This announcement was accompanied by a release from the White House tying funding to enhancing US manufacturing export capability. The announcement reads:
[On December 11, 2014], at a meeting of the President’s Export Council (PEC), President Obama announced nearly $400 million to help improve the competitiveness of American businesses and workers by spurring new manufacturing innovations and giving America workers additional opportunities to improve and expand their skill sets for middleclass jobs.
To help support new advancements in manufacturing, the President will announce more than $290 million in public-private investment for two new Manufacturing Innovation Hub Competitions. The announcement fulfills the President’s 2014 State of the Union pledge to launch four new institutes this year, for a total of eight institutes launched so far, and puts the Administration past the halfway mark on the President’s original goal of creating 15 manufacturing innovation institutes supported through executive action.
In addition, the President will announce $100 million to expand apprenticeships for American workers – a proven training strategy for workers to learn the skills that employers need for American businesses to grow and thrive in a competitive global environment. Apprenticeships are also a path to the middle class – 87 percent of apprentices are employed after completing their programs and the average starting wage for apprenticeship graduates is over $50,000.
During the meeting, President Obama will also highlight the continued need to reform and simplify our tax code and the importance of opening up new markets abroad for American-made goods and services through tough, fair new trade agreements.
The PEC, chaired by Jim McNerney, President and CEO of Boeing and vice-chaired by Ursula Burns, Chairman and CEO of the Xerox Corporation, is the principal national advisory committee for exporting. The Council advises the President on government policies and programs that affect U.S. trade performance; promotes export expansion; and provides a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor, and government sectors.
Last year, the United States exported $2.3 trillion dollars of goods and services, an all-time high, and today, exports support more than 11 million American jobs across 300,000 businesses. Manufacturing, in particular, is the engine behind our exports and innovation – contributing the majority of the nation’s exports and nearly three-quarters of its private-sector R&D. And American manufacturing is more competitive than it has been in decades, growing nearly twice as fast as the economy overall and adding 764,000 jobs since February 2010.
At the same time, businesses looking to move production to the United States consistently cite the skills of America’s workers, the most productive workforce in the world, as the reason for rooting jobs and investment here. These announcements build on that competitive strength by investing in manufacturing innovation and upgrading the skills of American workers through the proven model of apprenticeships.
Manufacturing Institutes
Manufacturing institutes serve as a regional hub, bridging the gap between applied research and product development by bringing together companies, universities and other academic and training institutions, and Federal agencies to co-invest in key technology areas that encourage investment and production in the U.S. This type of “teaching factory” provides a unique opportunity for education and training of students and workers at all levels, while providing the shared assets to help small manufacturers and other companies access the cutting-edge capabilities and equipment to design, test, and pilot new products and manufacturing processes.
Department of Energy-led Smart Manufacturing Innovation Institute
A third of the nation’s energy consumption goes into manufacturing. New smart manufacturing technologies – including advanced sensors and sophisticated process controls – can dramatically improve energy efficiency in manufacturing, saving manufacturers costs and conserving the nation’s energy.
The Department of Energy will lead a competition for a new public-private manufacturing innovation institute focused on smart manufacturing, including advanced sensors, control, platforms, and models for manufacturing. By combining manufacturing, digital, and energy efficiency expertise, technologies developed by the institute will give American manufacturers unprecedented, real-time control of energy use across factories and companies to increase productivity and save on energy costs.
For energy intensive industries – like chemical production, solar cell manufacturing, and steelmaking – these technologies can shave 10-20% off the cost of production. The new institute will receive a federal investment of $70 million that will be matched by at least $70 million in private investments and represents a critical step in the Administration’s effort to double U.S. energy efficiency by 2030.
by Gary Mintchell | Dec 17, 2014 | News
News from the US Federal Reserve. Manufacturing remains a positive for the US economy.
Report
Industrial production increased 1.3 percent in November after edging up in October; output is now reported to have risen at a faster pace over the period from June through October than previously published. In November, manufacturing output increased 1.1 percent, with widespread gains among industries. The rise in factory output was well above its average monthly pace of 0.3 percent over the previous five months and was its largest gain since February. In November, the output of utilities jumped 5.1 percent, as weather that was colder than usual for the month boosted demand for heating. The index for mining decreased 0.1 percent. At 106.7 percent of its 2007 average, total industrial production in November was 5.2 percent above its year-earlier level. Capacity utilization for the industrial sector increased 0.8 percentage point in November to 80.1 percent, a rate equal to its long-run (1972–2013) average.
Market Groups
In November, the indexes for all of the major market groups advanced. The gain of 2.5 percent in consumer goods was its largest since August 1998. The production of all major durable and nondurable categories of consumer goods rose, with the largest increases registered by consumer energy products and automotive products. The output of business equipment moved up 1.2 percent because of sizable gains for transit equipment and for industrial and other equipment. The index for business supplies rose 1.2 percent, its second strong increase in the past three months. The production of materials advanced 0.8 percent, with substantial gains in the indexes for all of its major categories.
Industry Groups
Manufacturing output rose 1.1 percent in November, and the rates of change for prior months are stronger than reported previously. Factory output is now estimated to have been above its late-2007 pre-recession peak in both October and November. In November, the indexes for both durables and nondurables increased more than 1 percent, and the output of every major industry group increased or remained unchanged. Among durable goods industries, the output of motor vehicles and parts jumped 5.1 percent as a result of an increase of 900,000 units at an annual rate in total motor vehicle assemblies. Miscellaneous manufacturing, wood products, and machinery each recorded gains exceeding 1 percent. Among nondurable goods industries, output advances of more than 2 percent were registered by petroleum and coal products and by apparel and leather. The indexes for food, beverage, and tobacco products and for plastics and rubber products both increased 1.4 percent.
The capacity utilization rate for manufacturing moved up 0.8 percentage point in November to 78.4 percent, a rate 0.3 percentage point below its long-run average. The operating rates for nondurable goods and durables goods increased, and the rate for other manufacturing (non-NAICS) remained unchanged. The utilization rate for mines fell 0.8 percentage point to 87.9 percent, while the rate for utilities increased 3.9 percentage points to 82.4 percent.
by Gary Mintchell | Dec 17, 2014 | Commentary, News, Operations Management
Steven Nadel, Executive Director of the ACEEE: The American Council for an Energy-Efficient Economy sent an update about the work of the recent Congress relative to energy efficiency from his blog. Below is his report.
Over the weekend the 113th Congress largely wrapped up its work. It looks like this Congress will pass just over 200 bills, the lowest number since World War II. However, before leaving home for the holidays, Congress took action on several bills that will affect energy efficiency:
- Congress appropriated money for the rest of the 2015 fiscal year for most federal departments. Included was $1.93 billion for the Department of Energy’s Office of Energy Efficiency and Renewable Energy, an increase of nearly $25 million from the previous year. The advanced manufacturing office and weatherization assistance programs received increases of 11% and 9%, respectively, while the buildings, vehicles, and federal energy management programs received small cuts.
- Energy efficiency tax incentives will be extended for another year. The tax extenders package includes provisions on energy-efficient commercial buildings, new homes, and various residential energy-efficiency retrofits (e.g. heating, cooling and water heating systems, insulation, and windows). These provisions all expired in Dec. 31, 2013 and the provision extends through Dec. 31, 2014, allowing these credits to be claimed in 2014. The Senate proposed updating some of the qualification levels, but the House decided to keep the current qualification levels. The Senate is expected to accept the House bill. Information about these credits can be found at energytaxincentives.org. The new Congress will have to decide whether to extend these again to cover 2015.
- The Energy Efficiency Improvement Act of 2014 came close but was not enacted. This bill was introduced by Representatives Welch (D-VT) and McKinley (R-WV) and passed the House of Representatives earlier this year. The Senate version was sponsored by Senators Jeanne Shaheen (D-NH) and Rob Portman (R-OH) and includes four provisions from their more comprehensive energy efficiency bill. The Senate sought unanimous consent to enact the bill but a few conservative senators objected and thus the bill will need to be reintroduced next year. The bill promotes energy efficiency in rental property, promotes commercial building energy-use benchmarking and disclosure, adjusts efficiency standards for “grid-connected” water heaters, and promotes energy efficiency in federal data centers. ACEEE led work on the benchmarking and disclosure provision and played a substantial role in several of the other provisions.
Overall, a disappointing two years for Congress. Hopefully, the 114th Congress that convenes in January can accomplish much more.
by Gary Mintchell | Dec 16, 2014 | Automation, News, Organizations, Technology
For the past several years, ABB has made sure that I remember my early electrical engineering teaching—the relative merits of direct current / alternating current, for example. It has been a leading proponent of advanced high voltage DC (HVDC) power systems considering it the superior transmission technology.
In this vein, ABB and Hitachi announced Dec. 16 an agreement to form a joint venture for HVDC system solutions in Japan. The new entity, to be based in Tokyo, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects bringing ABB’s latest technologies to the Japanese market where Hitachi will be the prime contractor.
Hitachi and ABB will take equity interests of 51 percent and 49 percent respectively. This is the first step of a strategic partnership between the two companies to contribute to the evolution of Japan’s power network. Hitachi and ABB will explore further strengthening of the relationship and address opportunities to widen the scope for future collaboration.
The joint venture is expected to commence operations in the coming months, subject to the necessary approvals and statutory procedures.
Quotes
“Since the first development in the 1970s, Hitachi has participated in every HVDC project in Japan and has continued to underpin the stabilization of the electricity grid. I am confident that the establishment of a new company combining the strengths of Hitachi and ABB will provide a framework for the timely provision of the new technologies required by the Japanese HVDC market. By enhancing and expanding the HVDC business through its partnership with ABB, which has a strong performance record in the global market, Hitachi will continue to contribute to the stabilization of Japan’s electric power grid.” said Hiroaki Nakanishi, Chairman & CEO of Hitachi, Ltd.
“ABB pioneered HVDC 60 years ago and has continually pushed the boundaries of this technology,” said Ulrich Spiesshofer, CEO of ABB. “Our presence across half the world’s installed base and our capability to develop and manufacture all major components of the HVDC value chain in-house have put us in a leading position in the industry. We are proud to enter into this partnership with Hitachi, with a solid reputation and extensive, 100 year experience in the Japanese market. Together we can build on our complementary strengths to play our part in the evolution of Japan’s power infrastructure.”
Technology
HVDC is a technology used for transmitting electricity between two grid systems. The supply side power is converted from alternating current (AC) to direct current (DC) before being transmitted, and is then converted back to AC in the receiving system for use. The system is ideal for long-distance transmission due to the technology’s ability to minimize electricity losses, and to its lower space requirements and construction costs. It is also well suited for interconnections between two different frequencies.
The global HVDC market has seen many projects using line commutated converter technology (LCC)*1 HVDC systems since the 1970s, while the development of voltage source converter (VSC)*2 systems has advanced as a new technology since around 2000. In recent years there has been a particular focus on using HVDC to connect renewable energy sources. This has seen an increase in VSC-HVDC transmission systems, which facilitate grid-stabilization. The technology is ideal for long-distance underground and underwater power links and interconnections, and is increasingly being deployed across a range of applications.
These include the integration of renewable energies from land-based and offshore wind farms, the mainland power supply to islands and offshore oil and gas platforms, city center in-feeds where space is a major constraint, and cross-border interconnections that often require subsea links. Its ability to comply with grid codes ensures robust network connections regardless of application.
In Japan, nine HVDC projects were carried out up to 2006, all of them using the LCC type. Now, with the increasing introduction of renewable energy and innovation in electric power systems, demand for VSC-HVDC systems is expected to increase for applications such as wide-area power transmission grids and connection of offshore wind farms.
Hitachi has participated in every HVDC project in Japan so far. In the Japanese market, which demands a high level of reliability, Hitachi has contributed through technology development and project management to the creation of HVDC systems that maintain high operation rates*3 ranking amongst the best in the world.
ABB pioneered HVDC technology, putting into operation the world’s first commercial link in Sweden in 1954, and was the first to introduce VSC technology (HVDC Light) in the 1990s. The company also holds many other world records in this technology. Over the years ABB has been awarded around 100 HVDC projects representing a total installed capacity of more than 120,000 MW, accounting for about half of the global installed base. ABB’s HVDC Light solution leads the way in VSC technology; the company has delivered 14 of the 15 VSC links that have been commissioned worldwide.
The new joint venture will combine Hitachi’s sales network, project management expertise, quality assurance processes and delivery performance record, with ABB’s state-of-the-art HVDC technologies, and contribute to innovation in electric power systems in Japan.
1. LCC-HVDC*1: A HVDC system with AC/DC converter using power semiconductor devices that requires the passing current to be zero when off (a thyristor). This was the principal method used from the 1970s onward, and there are many examples in operation. The system configuration is simple, and the technology mature; however, its installation entails a large number of restrictions as regards the power grid, necessitating grid stabilization measures in some cases such as reactive power compensation.
2 VSC-HVDC*2: A HVDC system with AC/DC converter using power semiconductor devices that can be switched on and off at any time (IGBTs, etc.). There are fewer power grid restrictions for its installation, compared to LCC type, and it has considerable benefits for grid stabilization, for example with respect to supplying reactive power. Since it does not require any grid stabilization measures, it achieves a simpler overall configuration than LCC-HVDC systems.
3 Reported in “A Survey of the Reliability of HVDC Systems” by the International Council on Large Electric Systems (CIGRÉ), and other sources.
by Gary Mintchell | Dec 4, 2014 | Automation, Manufacturing IT, Networking, News, Operations Management
This announcement came to me yesterday afternoon. ABB is joining the Industrial Internet Consortium.
This announcement is interesting in a couple of ways. First, it reminds us that ABB is a large company that plays in the discrete (factory automation) space, as well as, power and process automation. Second, it is the first I’ve seen that ties the Industrial Internet Consortium to Germany’s Industrie 4.0.
Following is the press release:
ABB has for years advanced the Industrial Internet via the company’s control systems, communication technology and industrial sensors. These help customers use data to optimize operations on offshore platforms, in mining and robotics, aboard marine vessels and in the chemical and paper industries.
ABB will join the IIC starting in 2015 to foster collaboration among technology companies as they seek to establish global standards for the Industrial Internet. ABB will work with others to ensure that end users reap the benefits it promises: improved efficiency, reduced costs and higher revenue.
“This gives us more opportunities to influence what is happening in the development of the Industrial Internet,” said Claes Rytoft, ABB Chief Technology Officer. “The Industrial Internet holds incredible promise to transform manufacturing, energy and resource industries.”
The Industrial Internet reflects the accelerating application of sensors, software and improved communication technology, allowing engineers to leverage enormous volumes of data from industrial systems to boost efficiency.
The Industrial Internet is at the core of Industry 4.0, Germany’s initiative for increased computerization of manufacturing. ABB has actively contributed to the creation of the Industry 4.0 vision and is actively working towards implementation of this ambitious undertaking.
“The Industrial Internet is transformational – it changes the way we work,” said Dr. Richard Soley, Executive Director of the Industrial Internet Consortium. “The Industrial Internet presents new opportunities for cost savings, energy savings and other efficiencies.”
ABB centrally monitors thousands of industrial robots and for decades and has helped utilities collect data crucial for a deeper understanding of how to make their electricity grids safer and more reliable. And ABB has thousands of software developers dedicated to improving the functionality of the Industrial Internet, leading to leaner operations and faster response times.
Today, evolving communication technology and lower sensor costs, combined with higher performance of computers, offer new opportunities to collect, evaluate and integrate even more information from industrial facilities to boost efficiency, fine-tune maintenance and trim energy costs.
“The Industrial Internet makes it possible to collect and integrate much more information than we ever have before,” Rytoft said. “The question is, what will that lead to going forward? It’s still a bit early to say, but there are many exciting opportunities.”
