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Disclaimer
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory,city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decisionor the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement. ISBN: 92-807-2647-1
Print on 04/01/2006
FOREWORD
With its unprecedented rate of industrial growth, Asia is the main contributor to a growing global energy demand. By consequence, the region is also bearing the brunt of resulting negative economic, social and environmental impacts such as increased air and water pollution, waste disposal, floods, and climate change. Governments across the region are formulating new policies to reduce the trend of increased energy consumption and the associated greenhouse gas emissions. They are introducing legislation to promote renewable energy use, and adopting measures to increase investments in energy efficient technologies. But despite these worthy efforts, it is imperative that industry take concrete action now to prepare for a likely future of higher energy prices and emissions restrictions. To help Asian industry improve energy efficiency, UNEP developed this Energy Efficiency Guide for Industry in Asia. The Guide includes a methodology to improve energy efficiency, case studies of more than 40 Asian companies in five industry sectors, technical information for different energy equipment, training materials, a contact and information database, and various other tools and information. The Guide is the primary output of the Greenhouse Gas Emission Reduction from Industry in Asia and the Pacific (GERIAP) project supporting Asian businesses to address climate change by becoming more energy efficient, and thereby reducing greenhouse gas emissions and costs. We encourage business leaders, policy makers, financiers and other stakeholders working with industry to use this Guide to take this effort forward.
ACKNOWLEDGEMENTS
This Guide was prepared as part of the project Greenhouse Gas Emission Reduction from Industry in Asia (GERIAP).
Special thanks to
The Swedish International Development Cooperation Agency (Sida) for the financial contribution that has made the development of this Guide possible. The GERIAP National Focal Points for implementing the project in nine Asian countries: Bangladesh Institute of Management Consultants Bangladesh (IMCB) China State Environmental Protection Administration (SEPA) India Indian National Cleaner Production Center (NCPC) Indonesia Ministry of Environment (MoE) and the Agency for the Assessment and Application of Technology (BPPT) Mongolia Ministry of Nature and Environment (MNE) Philippines Industrial Technology Development Institute (ITDI) Sri Lanka Small & Medium Enterprise Developers (SMED) Thailand Thailand Institute of Scientific and Technological Research (TISTR) Vietnam Viet Nam Cleaner Production Center (VNCPC). Companies that participated in the GERIAP project for testing the methodology and implementing case study options to improve energy efficiency (for list see appendix C). Niclas Svenningsen, Wei Zhao and Mark Radka from UNEP DTIE for strategic guidance to the GERIAP project. Wanapa Chanvirat and Patcharin Udompornwirat for their indispensable administrative support to keep the GERIAP project on track. The National Productivity Council, Swedish Environmental Research Institute (IVL), AF International, Spirax Sarco, Suradet Chakphet, Elmer Dante, Roopa Rakshit, Eric Roeder, Cecilia Bring Procope, Yanbai Shen, Shovna Upadyay, Arjan Veldhuis, and Brian Wood for their contributions to the development and launching of the Guide. Arvind Asthana, Youssef Ehab, Paul Goerick, Pernod Gupta, Dorjpurev Jargal, Pawan Kumar, Sankara Narayanan, Jens Kristian Nrgaard, Virendra Reddy, Fatima Reyes, S.B. Sadananda, Teresita Susilo, for assisting the National Focal Points with training and energy assessments of participating companies. And everyone else who helped to make this project a success.
Indonesia - the Agency for the Assessment and Application of Technology (BPPT)
BPPT is a Non-Department Government Agency, which reports to the President of Indonesia. Within BPPT there is the Assessment and Application of Environmental Technology Center, which has a vision to be a provider of environmental technology needed by the community in order to support a national sustainable development programme. To achieve this, the Center works on the assessment, application, coordination and preparation of national policies on technologies in the area of (1) environmental pollution control (2) environmental conservation and rehabilitation and (3) environmental design, simulation and standardization. The Center also provides monitoring and training services on environmental technologies to improve innovation, diffusion, dissemination, capacity building and transfer of technology. BPPT is responsible for the implementation of GERIAP in Indonesia. Contact: Dr. Ir. Tusy A. Adibroto, Msi, Director BPPT Agency for the Assessment and Application of Technology BPPT II Bld. 20nd Floor, JI.M.H. Thamrin No.8 Jakarta 10340, Indonesia Tel: +62 21 316 9762 Fax: +62 21 316 9760 E-mail: tusyaa@ceo.bppt.go.id www.bppt.go.id
Part 1
Company management
As a company director, top manager or middle manager, you are always looking for ways to improve your companys performance. Improved energy efficiency can help your company: Reduce energy and production costs Improve environmental performance and reduce greenhouse gas emissions Reduce exposure to rising energy prices and energy shortages Win new customers who consider environment as an important selection criteria The most useful information in this Guide for you is: A Company Energy Efficiency Methodology that explains in six steps how to become more energy efficient (see part 2) Case studies of more than 40 other companies that have already benefited from energy efficiency initiatives (see part 5)
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A Contact Database with useful contacts of people and organizations who can help you improveenergy efficiency, such as suppliers, consultants, research institutions, CP centers, associations and government agencies (see www.energyefficiencyasia.org) Where do you start? Organize a meeting between management and relevant staff to start an energy assessment of your company (see part 2, step 1 of the methodology) Start rewarding and recognizing staff for good ideas to improve energy efficiency Give this Guide to your production staff Add your contact details to the Contact Database (www.energyefficiencyasia.org)
Part 1
Production staff
You can be a boiler operator, maintenance staff, mechanical or electrical engineer. As production staff you can do a lot to help your company improve energy efficiency. This will also help you to: Get recognized by management and strengthen your job security! Develop skills that are wanted by your company but also desirable by other companies Improve occupational health and safety conditions at your workplace The most useful information in this Guide for you is: Technical information and training materials for energy equipment and your industry sector (see part 3 and 4) Case studies of energy options implemented by other companies for energy equipment you work with and for your industry sector (see part 5) Option checklists and worksheets for different energy equipment to help you identify options to improve your companys energy efficiency (see part 4) Where do you start? Find out how much energy is used in your work area Talk with your manager and co-workers about energy efficiency opportunities in your work area Carry out a systematic search for energy saving options in your work area
Government
Many national, provincial or local government agencies responsible for industry, environment, energy or the economy, have an interest in energy conservation. As a government agency, developing awareness and promoting energy efficiency in industry can: Improve the financial viability of your countrys industry sectors because they spend less money on energy Reduce your dependence on foreign energy supply (especially oil), and reduce the burden on your countrys GDP Reduce your countrys greenhouse gas emissions as part of addressing climate change
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The most useful information in this Guide for you is: An Energy Efficiency Survey with regional and national barriers to energy efficiency also recommending solutions that can be incorporated in government policies (see part 5) Energy efficiency case studies from various companies in the Asia and Pacific region (see part 5) An Information Database with information about the GERIAP project and other projects (see part 5) A Contact Database with contact details of organizations in your country who can help facilitate the implementation of government energy policies and projects Where do you start? Facilitate the dissemination of this Guide among industry and organizations influencing industry Develop policies that encourage energy efficiency in industry with the message that energy efficiency is good for business as well as the environment Align energy policies with economic policies and environmental policies Add your contact details to the Contact Database (www.energyefficiencyasia.org)
Part 1
Facilitators
Companies cannot improve energy efficiency on their own. Several types of organizations can act as facilitators to help companies, such as industry associations, research institutes, consultants, Cleaner Production Centers, universities, chambers of commerce and NGOs.
By helping companies to improve energy efficiency you can: Help industry reduce costs and exposure to rising energy prices Develop useful skills and experience within your organization and as an individual Contribute to an improved environment through reduced greenhouse gas emissions This Guide gives you all the information you need to help facilitate energy efficiency in industry. The most useful information for you is: A Company Energy Efficiency Methodology that explains in six steps how to become more energy efficient (see part 2) Training materials (textbook chapters and presentation slides) covering the methodology, energy equipment, monitoring equipment and different industry sectors (see part 5) Other tools such as case studies from more than 40 companies, guidance on how to finance options, and a Contact and Information Database (see part 5) Where do you start? Get to know the Guide and find out how to help industry improve energy efficiency Identify interested companies and organize a training course for industry using the training materials in the Guide Meet with company management to raise awareness about energy efficiency, get them interested in an energy assessment, and explain how you can assist them with this using the Company Energy Efficiency Methodology Get companies in touch with other organizations for areas where you are unable to help, such as financial institutions, suppliers, and chambers of commerce, using the Contact Database Add your contact details to the Contact Database (www.energyefficiencyasia.org)
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Part 1
Financial institutions
Companies often turn to financial institutions to help fund large projects, mostly commercial banks and sometimes Energy Service Companies (ESCOs) if these exist in the country. As a financial institution, by investing in companies to help improve energy efficiency you can:
Help improve the financial viability and credit-worthiness of the companies who will continue to be your clients in the future Get greater returns on investment as energy projects, such a cogeneration, are often very profitable Expand your financial product portfolio and therefore expand your client base Improve your public image as a financial institution that also takes steps to protect the environment The most useful information in this Guide for you is: An overview of tools for companies and investors regarding financing of energy efficiency and cleaner production projects (see part 5) Energy efficiency case studies from various companies in the Asia and Pacific region to see what type of projects exist, the investments required and returns (see part 5) A Contact Database with other financial institutions and other organizations (e.g. government agencies, suppliers) that finance energy projects (see part 5) Where do you start? Get to know the tools and case studies in the Guide to determine the potential of investing in energy efficiency projects Inform companies about existing financing packages Assist companies to make proposals for energy efficiency projects bankable Expand investment evaluation criteria to include energy and environmental considerations Develop new financial products that consider energy, greenhouse gas emissions and the environment in general Add your contact details to the Contact Database (www.energyefficiencyasia.org)
Customers
Customers of industrial companies can be other manufacturers (e.g. car manufacturers buying steel), wholesalers (e.g. a wholesaler buying paper to sell to retailers), retailers (e.g. a household store buying ceramic products to sell in its stores) or end users (e.g. construction companies buying cement). As a customer, by encouraging your suppliers to improve energy efficiency you can: Reduce purchase costs as energy cost savings can be incorporated in the price of the goods you buy Protect and improve your reputation through improved environmental management of your suppliers
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Part 1
The most useful information in this Guide for you is: A Company Energy Efficiency Methodology that can help your suppliers become more energy efficient (see part 2) Case studies for more than 40 other companies that have already benefited from energy efficiency initiatives (see part 5) A Contact Database with useful contacts of people and organizations who can help your suppliers improve energy efficiency, such as consultants, research institutions, CP centers, associations and government agencies (see part 5 and www.energyefficiencyasia.org) Where do you start? Bring the Guide to the attention of the management of your suppliers Include environmental and energy considerations into your purchasing policy Ask your suppliers what component of price of their goods is energy costs, and what they are doing to be more energy efficient
Suppliers
Companies have many suppliers who provide them with various goods and services such as raw materials, energy, equipments, packaging materials, maintenance services, and transport. The GERIAP project found that poor quality goods and services are often the cause of high energy costs. Examples include poor quality coal, cheap but inefficient boilers and poor management of air compressors by contractors. As a supplier, by helping your industrial customers to improve energy efficiency you: Are more likely to keep customers in the long term because you save them money Make it easier to promote yourself with new or potential customers Can ask higher prices for your products and services because your customers will earn the costs back through improved energy efficiency The most useful information in this Guide for you is: Technical information and training materials for energy equipment used by companies and for industry sectors (see part 3 and 4) Case studies for more than 40 companies, giving examples on how you can help your customers improve energy efficiency (see part 5) A Contact Database with contacts of companies and organizations who influence them (such as industry associations, consultants, research institutions, CP centers, and government agencies) who you can approach (see part 5 and www.energyefficiencyasia.org). Where do you start? Add your contact details to the Contact Database (www.energyefficiencyasia.org) Bring the Guide to the attention of your customers and within your own organization Meet with company management to raise awareness about energy efficiency, and explain how you can help them to improve energy efficiency through your products and services
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Introduction
The Company Energy Efficiency Methodology (Methodology) has been developed for Asian industrial companies to help them improve energy efficiency through Cleaner Production. Energy efficiency can help companies to: Reduce energy and production costs Improve environmental performance and reduce greenhouse gas emissions Reduce exposure to rising energy prices and energy shortages Win new customers who consider environment as an important selection criteria Improve productivity and product quality Improve reputation with customers, government and public Improve staff health, safety and morale Improve compliance with legislation and ISO 14001 targets This Methodology has been developed because it: Is tailored to energy-intensive industrial companies in developing Asian countries, which in many ways are different from companies in industrialized and Western countries Focuses on energy, which is less visible than waste, water and raw materials Explains not only what should be done in theory, but also how it is done in practice because all companies are different. A focus is therefore given on how to overcome barriers such as time limitations and lack of data, and on practical company examples This Methodology is based on: The Cleaner Production (CP) strategy: prevention of waste, systematic approach, integrated into business processes and aimed at continuous improvement Several existing CP and energy audit methodologies Real practice experience from energy assessments carried out as part of the GERIAP project in more than 40 Asian industrial companies
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Remember: the ultimate purpose is to keep improving energy efficiency, and this methodology can help companies do this. But the methodology should be applied flexibly and depending on the companys situation, because each company is different: country, sector, size, organizational structure, production processes, existing energy management systems, and so on.
Part 2
task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval
Step 2: Assessment
task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a seline task 2e: Quantify losses through a material and energy balance
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Step 1 should take about 3 6 days. Tasks under step 1 and the estimated time needed include:* Task 1a: Meeting with top management (1-2 hours) Task 1b: Form a Team and inform staff (0.5-1 day) Task 1c: Pre-assessment to collect general information (1-3 days) Task 1d: Select focus areas (0.5-1 day) Task 1e: Prepare assessment proposal for top management approval (2-3 days) *Note: the amount of time depends on, for example, the size of the plant, the number of people involved and the amount of information available. How you start depends on who you are. If you are: Top management of a company interested in improving energy efficiency, then you should identify which managers and staff members are needed to get a project started, and ask them to attend a first meeting with you. You can also ask an external facilitator to attend the meeting Middle management (e.g. Production Manager, Environment Manager) and not part of top management, then you should request top management for a meeting and invite other managers and staff who are needed to get a project started to attend. You can also ask an external facilitator to attend the meeting An external facilitator (e.g. consultant, CP Centre, research institute) with an interest in getting the company to improve its energy efficiency, then you should request top management for a meeting (or ask a company manager to organize a meeting for you). You can also ask for company managers who are needed to get a project started to attend the meeting
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How staff will be informed to ensure their assistance during the pre-assessment (see task 1b) Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they addressed the meeting with top management Worksheets (Worksheet 1, 2 and 3, See Appendix B)
A Team of 4 - 6 people should be formed. In practice, the Team is often formed at the meeting with top management. The Team normally includes (but can be expanded when the focus areas have been selected): Someone who knows the main energy uses and environmental impacts of the company, e.g. the Environment Manager or Energy Manager Someone who knows the production process, e.g. the Head of Production Someone with access to general company information and energy cost data, e.g. the companys Accountant or Finance Manager A communications or training person, especially if management have identified staff training as one of their objectives A top management representative who normally is not part of the Teams day-to-day work The company may decide to also include an external facilitator (consultant or service provider) in the Team for the pre-assessment and writing of the proposal, especially if he/she/they are needed for the assessment later. The Team holds a half-day first meeting to agree on each members roles (see Worksheet 4) how and when to carry out the pre-assessment (task 1c), select focus areas (task 1d), and write a proposal for management (task 1e). In addition, the Team should inform staff about the pre-assessment, for example through a letter by top management, regular staff meetings or notice boards. Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they addressed the Team formation and informing staff Worksheets (Worksheet 4, see Appendix B)
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production step (see Worksheet 6) Production data for the past 3 years, preferably for each month (see Worksheet 7) Energy and other resource consumption data and costs for the past 3 years, preferably for each month and for each production step or department (see Worksheet 7) An inventory of major equipment, such as boilers, air compressors, motors (see Worksheet 8) Overview of information collected for each process step / for each department (see Worksheet 9) Company greenhouse gas (GHG) emissions (see GHG Indicator) Note: the amount and quality of information available is most important for task 2d (quantifying inputs and outputs and costs for focus areas). If only limited information is available, then task 2d can only be carried out in less detail or more time is needed to measure and collect data. See Company examples for examples of companies that participated in the GERIAP project on how they did the pre-assessment. Information on the CD-ROM and website: Company examples (Appendix A) Worksheets (Worksheet 5, 6, 7, 8, 9, see Appendix B) GHG Indicator
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The assessment proposal should include (see Worksheet 11): Objectives (i.e. agreed in the meeting with management) Scope (i.e. focus areas) Outputs (i.e. an proposal for implementation of feasible options to improve energy efficiency) Approach (i.e. the steps 2, 3 and 4 of the Methodology how detailed each step and task should be depends on the company, because each company is different!) Team (i.e. who will take part in the assessment and the roles and responsibilities of each Team member) Time planning (i.e. how much time / man days is needed for each step and task, a timeframe with deadlines) Budget (i.e. how much money is needed for the assessment) The proposal is then sent or presented to top management for comments and approval. In case of an external facilitator, consultant or service provider a contract is signed for assistance with the energy assessment. Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they addressed the assessment proposal to top management Worksheets (Worksheet 11, see Appendix B)
Part 2
Step 2 - Assessment
The purpose of step 2 is to assess where energy is lost/wasted for the focus area(s). The output of step 2 is an overview of how much energy is lost and how much money this costs for the focus area(s). Then it becomes easier to identify options to improve energy efficiency in step 3! Tasks under step 2 and the estimated minimum time needed include:* Task 2a: Staff meeting and training (minimum 0.5 day for staff meeting only) Task 2b: Prepare focus area flow charts (minimum 2 hours per focus area) Task 2c: Walkthrough of focus areas (depending on the focus area, but minimum 0.5 day per focus area, excluding collection of detailed data for task 2d) Task 2d: Quantify inputs and outputs and costs to establish a baseline (time required depends on data available as determined during the pre-assessment, task 1c) Task 2e: Quantify losses through a material and energy balance (0.5 1 day per focus area provided that data were collected under task 2d) * Note: the selection of tasks, time needed and who does what should already be included in the energy assessment proposal to top management that was prepared under task 1e. Although task 2b, 2d and 2e are described as separate tasks, it is possible to combine these, which will avoid repetition and save the Team time!
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The Team has sufficient knowledge and experience to carry out the energy assessment An objective of the energy assessment is to increase staffs knowledge and experience so that they can continue with energy assessments in the future (as indicated by top management under task 1a) or only to find quick energy efficiency options The companys Team or external consultants carry out the energy assessment
See Worksheet 12 for suggested training. Note that this Guide includes training material for company staff!
Other possible activities include hanging up posters, starting a slogan campaign, explanation at section/ department meetings, and announcements through a letter from top management to staff or through a company newsletter. Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they addressed the staff meeting and training Worksheets (Worksheet 12, see Appendix B)
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The first walkthrough is done thoroughly. But in practice, the Team will visit the focus area several times to meet with production staff and gather more information on inputs and outputs (task 2d) and later to identify and investigate energy efficiency options (step 3 and step 4). Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they addressed the walkthrough of focus areas Worksheets (Worksheet 14, see Appendix B)
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Completing a full and detailed material and energy balance could take a long time, especially if there is little data on inputs and outputs at the company. It is also more difficult to determine energy losses because energy is not as tangible as raw materials and wastes. It is important to be practical and focus on quantifying at least the biggest and most expensive losses, because this will form the basis of identifying options for improvement. Information on the CD-ROM and website: Company examples (see Appendix A) for examples of companies that participated in the GERIAP project on how they prepared a useful material and energy balance Worksheets (Worksheet 13, see Appendix B)
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Information on the CD-ROM and website: Company examples (see Appendix A) Worksheets (Worksheet 15, see Appendix B) Fishbone Diagram
A brainstorm session with the Team and other staff from the focus areas is the best way to come up with possible options. Options can fall in the following categories: Good housekeeping Improved process management Production process / equipment modification New technology / equipment Input material substitution On-site reuse / recovery Production of useful by-product Product modification Click on Option categories on the website for an explanation and examples for each category. You can also use Worksheet 15 to write down possible options. There is no such thing as a bad idea so everyone should be encouraged to come up with as many possible options as possible! Sometimes hundreds of possible options are generated for one focus area alone. Another source of possible options are the notes from the walkthrough of focus areas under task 2c (Worksheet 14) and the notes from the discussion with top management about energy management in the company under task 1a (Worksheet 2). Information on the CD-ROM and website: Company examples (see Appendix A) for examples from companies that participated in the GERIAP project on how they identified possible options Worksheets (Worksheet 15, see Appendix B) Option categories
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The meeting with management under task 1a should also give you an indication of what screening criteria to apply! Worksheet 15 can be used to categorize options, and look under Company examples to see what other companies have done. Options that require further analysis will be investigated for their technical, financial and environmental feasibility as part of step 4. Options that can be implemented directly do not require a feasibility analysis, however, the technical, financial and environmental details will still need to be recorded.
Information on the CD-ROM and website: Company examples (see Appendix A) Worksheets (Worksheet 15, see Appendix B)
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Third, you need to think of possible barriers to implementing the option. For example, an option may have large savings and a short payback period, but investment capital is not available in the company. Lack of monitoring equipment may make monitoring of results difficult. Try to think of possible solutions too! Also consider comments from top management on the reasons for energy efficiency, the current energy management practices and other factors of influence on improving energy efficiency (see Worksheet 1, 2 and 3). More
Information on the CD-ROM and website: Company examples (see Appendix A) for more examples of other reasons and barriers Worksheets (Worksheet 16, see appendix B)
Part 2
4c. Prepare implementation and monitoring proposal for top management approval
Top managements support is again needed for the implementation and monitoring of feasible options in the short term. The Team should prepare a proposal for an Implementation and Monitoring Plan to top management (see Worksheet 18): An introduction Number of options identified, options investigated for feasibility, feasible options, options requiring further investigation, and unfeasible options Options recommended for implementation in the short term:
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Total estimated investment required, annual ongoing costs, annual savings and payback period - Total estimated environmental benefits (energy, GHG emissions and resources/wastes) - Most important other reasons for implementation - Most persistent and difficult barriers and proposed solutions - Table with list of options including technical, economical, environmental, reasons and barriers for each individual option Team (who will carry out the implementation and monitoring, including external facilitators/ consultants) Communication of results to top management and staff Appendices with - Worksheets 16 for options recommended for implementation in the short term - Worksheet 17 with details and ranking of all options investigated The proposal is then sent to top management for comments and approval. If an external facilitator, consultant or service provider is needed for the implementation and monitoring, a contract is signed. Information on the CD-ROM and website: Company examples (see Appendix A) for examples from companies that participated in the GERIAP project on how they prepared this proposal to top management Worksheets (Worksheet 18, see Appendix B)
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Without monitoring it will be very difficult to convince management that energy efficiency projects are beneficial to the company. You need to proof especially the financial benefits of implemented options to get their support for future projects.
It is also important to communicate (interim) results throughout this phase to management and staff to: Show management that energy efficiency is good for business and gain their support for future projects Reward staff for their efforts in improving energy efficiency and encourage them to come up with new options
Part 2
Information on the CD-ROM and website: Company examples (see Appendix A) for examples from companies that participated in the GERIAP project on how they implemented options and monitored results Worksheets (Worksheet 16, see Appendix B)
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The output of step 6 is continuation of implementing energy efficiency options and integration of energy management into company processes. Step 6 has only one task: Task 6a: Prepare a proposal to continue with energy efficiency for top management approval (2-3 days)
6a. Prepare a proposal to continue with energy efficiency for top management approval
The Team should now write a proposal based on what was agreed with top management at the evaluation meeting and seek top management approval. Write this proposal by making use of : Worksheet 11 - Assessment proposal (for the assessment of new selected focus areas and the feasibility analysis of the additional options selected for further investigation) Worksheet 18 - Implementation and monitoring proposal (for additional options selected for implementation and energy management improvement options) Therefore writing this proposal is in fact a combination of preparing and assessment proposal (task 1e) and an implementation and monitoring proposal (task 4c) as part of a new cycle. Energy management has been integrated into the Methodology, for example: The quality of the pre-assessment (task 1c) and assessment (step 2) depend largely on the quality of energy management systems Some of the identified options were aimed at improving energy management (task 3b) Many of the barriers for options are energy management barriers (task 4a) For this reason, continuous improvement can only be achieved by effective energy management and integration of energy management into other company processes and systems (see the Energy Management Matrix in Worksheet 3). For example, energy management should be integrated into the same management system for environment, health and safety, quality, and risks. With the experience the Team now has, they can focus even more on improving energy management in a second cycle of the Methodology. Information on the CD-ROM and website: Company examples (see Appendix A) for examples from companies that participated in the GERIAP project on how they work for a continuous improvement Worksheets (Worksheet 3, 11 and 18, see Appendix B)
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Industry Sectors
Part 3
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comparing the energy efficiency between each of them Energy efficiency opportunities (including option checklists) References
Industry Sectors
The arrows on the right are links to training materials, case studies, option checklists and contacts relevant to the cement sector. These arrows are described in Part 5.
Part 3
Sector description
This section briefly describes the cement sector and gives a short introduction to the main features of the sector.
Process flow
This section gives a process flow of the cement production process, describes each process step and the main inputs and outputs. The basic process of Cement production as shown in figure 1 involves: 1. Acquisition of raw materials 2. Preparation of the raw materials for pyroprocessing 3. Pyroprocessing of the raw materials to form Portland cement clinker, and, 4. Grinding the clinker to Portland Cement
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Industry Sectors
Mining: Limestone, the key raw material is mined in the quarries with compressed air drilling and subsequently blasting with explosives. The mined limestone is transported through dumpers or ropeways to the plant. Surface mining is gradually gaining ground because of its eco friendliness.
Part 3
Crushing: The limestone as mined is fed to a primary and secondary crusher, where the size is reduced to 25 mm. More recently, tertiary crushers are used to further reduce the inlet size to the mill. The crushed limestone is stored in the stockpile through stacker conveyors. The crushed limestone, bauxite and ferrite are stored in feed hoppers from where they are fed to the raw mill via weigh feeders in the required proportion.
Figure 3: Crushing Reference: http://www.cement.org
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Industry Sectors
High capacity utilization is very essential for achieving energy efficiency. This brings down the fixed energy loss component of the specific energy consumption. Survey of excellent energy efficient companies show that 80 percent of the companies attribute capacity utilization as one of the foremost reason for a major drop in specific energy consumption. At least 90 percent capacity utilization is to be ensured for achieving low specific energy consumption. Also achieving high capacity utilization is under the control of plant personnel. Hence the first and foremost step for an aspiring energy efficient unit should be on increasing capacity utilization and reduce the specific energy consumption. Opportunities for the other areas are included in the CD-ROM and website version of the Guide.
Part 3
References
1. 2. 3. National Productivity Council- Energy Audit reports in Cement Industries Reports from Lawrence Berkley Laboratory Web Sites: India Cements Ltd, Australian Cement Institute
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Energy Equipment
Part 4
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Each of these chapters follows the same structure as the thermal energy equipment chapters: What is the equipment Types of the equipment Assessment of the equipment Energy efficiency opportunities Option checklist Worksheets and other tools References An example of what information is included under each heading is given for the Boilers & thermic fluid heaters Part 4 on page 45.
Energy Equipment
Monitoring equipment
Monitoring equipment can be useful to measure the actual operating parameters of various energy equipment and compare them with the design parameters to determine if energy efficiency can be improved. Or monitoring equipment can be used to identify measure steam or compressed air leaks. Parameters that are often monitored during an energy assessment are: Basic electrical parameters in AC & DC systems: voltage (V), current (I), power factor, active power (kW), maximum demand (kVA), reactive power (kVAr), energy consumption (kWh), frequency (Hz), harmonics, etc. Other non-electrical parameters: temperature and heat flow, radiation, air and gas flow, liquid flow, revolutions per minute (RPM), air velocity, noise and vibration, dust concentration, total dissolved solids (TDS), pH, moisture content, relative humidity, flue gas analysis (CO2, O2, CO, SOx, NOx), combustion efficiency, etc. The CD-ROM and website of the Guide provide information for various monitoring equipment that are often used during energy assessments in industry: Electrical measuring instruments Combustion analyzers
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Thermometers Manometers Water flow meters Speed measurement Leak detectors Lux meters
There is one chapter for all monitoring equipments combined, and for each type of monitoring equipment the following information is given: What the monitoring equipment does Where the monitoring equipment is used How to operate the monitoring equipment Precautions and safety measures necessary for the monitoring equipment References An example of what information is included under each heading is given for a combustion analyzer on page 45..
Example of the energy equipment chapter: Boilers & thermic fluid heaters
To give an idea of what information you can find on the CD-ROM and website for each type of electrical and thermal energy equipment, an example is given in the chapter for boilers & thermic fluid heaters. When you click on the Boilers & thermic fluid heaters in the Energy Equipment part on the CD-ROM and website, you will see the screen below. The arrows on the right are links to training materials, case studies, contacts and links relevant to boilers and thermal fluid heaters. These arrows are described in Part 5.
Energy Equipment
45
Part 4
What is a boiler
This section briefly describes the Boiler and various auxiliaries in the Boiler Room. A boiler is an enclosed vessel that provides a means for combustion heat to be transferred into water until it becomes heated water or steam. The hot water or steam under pressure is then usable for transferring the heat to a process. Water is a useful and inexpensive medium for transferring heat to a process. When water is boiled into steam its volume increases about 1,600 times, producing a force that is almost as explosive as gunpowder. This causes the boiler to be an extremely dangerous piece of equipment that must be treated with utmost care. The boiler system comprises of: a feed water system, steam system and fuel system. The feed water system provides water to the boiler and regulates it automatically to meet the steam demand. Various valves provide access for maintenance and repair. The steam system collects and controls the steam produced in the boiler. Steam is directed through a piping system to the point of use. Throughout the system, steam pressure is regulated using valves and checked with steam pressure gauges. The fuel system includes all equipment used to provide fuel to generate the necessary heat. The equipment required in the fuel system depends on the type of fuel used in the system. The water supplied to the boiler that is converted into steam is called feed water. The two sources of feed water are: (1) Condensate or condensed steam returned from the processes and (2) Makeup water (treated raw water) which must come from outside the boiler room and plant processes. For higher boiler efficiencies, an economizer preheats the feed water using the waste heat in the flue gas.
STEAM TO PROCESS EXHAUST GAS VENT
Econo mizer
Energy Equipment
VENT
BOILER
BURNER
Part 4
BRINE
46
Types of boilers
This section describes the various types of boilers: fire tube boiler, water tube boiler, packaged boiler, fluidized bed combustion boiler, atmospheric fluidized bed combustion boiler, pressurized fluidized bed combustion boiler, circulating fluidized bed combustion boiler, stoker fired boiler, pulverized fuel boiler, waste heat boiler and thermic fluid heater. Fire Tube Boiler In a fire tube boiler, hot gases pass through the tubes and boiler feed water in the shell side is converted into steam. Fire tube boilers are generally used for relatively small steam capacities and low to medium steam pressures. As a guideline, fire tube boilers are competitive for steam rates up to 12,000 kg/hour and pressures up to 18 kg/cm2. Fire tube boilers are available for operation with oil, gas or solid fuels. For economic reasons, most fire tube boilers are of packaged construction (i.e. manufacturer erected) for all fuels.
Reference: http://www.bathtram.org/tfb/tT111.htm
Energy Equipment
Part 4
Assessment of boilers
This section describes the performance evaluation of boilers (through the direct & indirect method including examples for efficiency calculations), boiler blow-down and boiler water treatment. Performance Evaluation of a Boiler The performance parameters of a boiler, like efficiency and evaporation ratio, reduces with time due to poor combustion, heat transfer surface fouling and poor operation and maintenance. Even for a new boiler, reasons such as deteriorating fuel quality and water quality can result in poor boiler performance. A heat balance helps us to identify avoidable and unavoidable heat losses. Boiler efficiency tests help us to find out the deviation of boiler efficiency from the best efficiency and target problem area for corrective action.
47
Heat balance The combustion process in a boiler can be described in the form of an energy flow diagram. This shows graphically how the input energy from the fuel is transformed into the various useful energy flows and into heat and energy loss flows. The thickness of the arrows indicates the amount of energy contained in the respective flows.
A heat balance is an attempt to balance the total energy entering a boiler against that leaving the boiler in different forms. The following figure illustrates the different losses occurring for generating steam.
12.7 % 8.1 %
Heat loss due to dry flue gas Dry Flue Gas Loss Heat loss due to steam in flue gas Heat loss due to moisture in fuel Heat loss due to moisture in air Heat loss due to unburnts in residue Heat loss due to radiation & other unaccounted loss Heat in Steam
100.0 % Fuel
BOILER
Energy Equipment
The energy losses can be divided in unavoidable and avoidable losses. The goal of a cleaner production and/or energy assessment must be to reduce the avoidable losses, i.e. to improve energy efficiency. The following losses can be avoided or reduced: Stack gas losses: - Excess air (reduce to the necessary minimum which depends from burner technology, operation, operation (i.e. control) and maintenance) - Stack gas temperature (reduce by optimizing maintenance (cleaning), load; better burner and boiler technology) Losses by un-burnt fuel in stack and ash (optimize operation and maintenance; better technology of burner) Blow-down losses (treat fresh feed water, recycle condensate) Condensate losses (recover the largest possible amount of condensate) Convection and radiation losses (reduced by better insulation of the boiler) The rest of this section is included on the CD-ROM and website.
Part 4
48
Option checklist
This section includes the most common options for improving the energy efficiency of a boiler. Periodic tasks and checks outside of the boiler All access doors and plate work should be maintained air tight with effective gaskets. Flue systems should have all joints sealed effectively and be insulated where appropriate. Boiler shells and sections should be effectively insulated. Is existing insulation adequate? If insulation was applied to boilers, pipes and hot water cylinders several years ago, it is almost certainly too thin even if it appears in good condition. Remember, it was installed when fuel costs were much lower. Increased thickness may well be justified. At the end of the heating season, boilers should be sealed thoroughly, internal surfaces either ventilated naturally during the summer or very thoroughly sealed with tray of desiccant inserted. (Only applicable to boilers that will stand idle between heating seasons). A longer checklist of options for boilers is included on the CD-ROM and website.
Energy Equipment
Part 4
49
Units
Readings
C C
Kg/kg of dry air per cent KCal/kg per cent kg/kg of fuel kg/kg of fuel per cent
13 14
Energy Equipment
15 16
Part 4
17 18
Other worksheets and tools are included on the CD-ROM and website.
50
References
1. 2. 3. 4. 5. 6. Considine, Douglas M., Energy Technology Handbook, McGraw Hill Inc, New York, 1977. Jackson, J. James, Steam Boiler Operation, Prentice-Hall Inc., New Jersey, 1980. Pincus, Leo I., Practical Boiler Water Treatment, McGraw Hill Inc., New York, 1962. Shields, Carl D., Boilers, McGraw Hill Book Company, U.S, 1961. Elonka, Jackson M., and Alex Higgins, Steam Boiler Room Questions & Answers, Third Edition Gunn, David., and Robert Horton, Industrial Boilers, Longman Scientific & Technical, New York 7. India Energy Bus Project, Industrial Heat Generation and Distribution -NIFES Training Manual Issued For CEC 8. Technical Papers, Boiler Congress-2000 Seminar, 11 & 12 January 2000 9. Fluidised Bed Coal-Fired Boilers Department of Coal Publications, Government of India 10. Fluidised Combustion of Coal A National Coal Board Report, London 11. Steam Generation, Distribution and Utilisation by TERI, GTZ and EMC 12. Efficient Operation of Boilers by National Productivity Council www.eren.doe.gov www.oit.doe.gov/bestpractices www.pcra.org www.energy-efficiency.gov.uk www.actionenergy.org.uk www.cia.org.uk www.altenergy.com
Energy Equipment
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A hand bellow pump draws the flue gas sample into the solution inside the fyrite. A chemical reaction changes the liquid volume revealing the amount of gas. The percentage oxygen or carbon dioxide can be read from the scale.
Fyrite:
This instrument has in-built chemical cells which measure various gases such as CO2, CO, NOX, SOX etc.
Gas analyzer:
Energy Equipment
These instruments are used to determine the composition of the flue gases in the duct. The duct is the large piping arrangement of rectangular configuration and is used to flush out the combusted gases to the chimney. The value obtained of the different composition of the flue gases are by volume basis. Mostly these instruments measure the percentage carbon dioxide or oxygen and the temperature of the flue gas. During energy audit studies the composition of the flue gases is desirable to be known to assess the combustion conditions and also the in leakages of the atmospheric air into the system.
Part 4
52
References
http://www.energymanagertraining.com/energy_audit_instruments/new_energy_audit_equipment.htm
Energy Equipment
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Part 4
Part 5 Tools
Part 5: Tools
Part 5 offers training materials, option checklists, worksheets, a contact and information database and many more tools and resources to help companies improve energy efficiency. Here you can also download materials that have been translated into Bahasa Indonesia, Chinese, Sinhala, Thai and Vietnamese and the translated hard copy Guide in Bangla, Mongolian and Tamil. This hard copy Guide gives a summary of what is included on the CD-ROM and website When you go to the Tools part of the Guide the following screen will appear:
Training materials
Training of company management and production staff is important because this allows the company to identify and implement energy efficiency options by themselves. The training materials in this Guide can be used by external organizations to train facilitators or company staff, but it is also possible to go through the training materials on your own. Training materials in the Guide are described in the table below. As new training materials are developed in the future, these will be made available on the website version of the Guide (www.energyefficiencyasia. org).
Tools
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Part 5
Table: Training materials included in the Guide Topic Company Energy Efficiency Methodology Energy equipment Type of materials Contents and duration of presentation Textbook Presentation slides A six step methodology for companies to become more energy efficient Translated into 5Asian languages Yes
Textbook chapters (see Part 3 of Guide) Presentation slides and speaker notes
Textbook chapters (see Part 3 of Guide) Presentation slides and speaker notes
Electrical energy equipments: Electricity (1 hr) Electric motors (1.5 hrs) Fans and blowers (1.5 hrs) Pumps and pumping systems (1.5 hrs) Cooling towers (1.5 hrs) Air conditioning and refrigeration (1.5 hrs) Compressors and compressed air system (1.5 hrs) Thermal energy equipments: Fuels and combustion (1.5 hrs) Boilers and thermic fluid heaters (2.5 hrs) Steam distribution and utilization (2.5 hrs) Furnaces and refractories (2.5 hrs) Waste heat recovery (1 hr) Cogeneration (1 hr)
No
No
Textbook chapter Monitoring equipments (1.5 hrs) (see Part 3 of Guide Presentation slides and speaker notes Industry sectors Textbook chapters (see Part 4 of Guide) Presentation slides and speaker notes Presentation slides Cement (1 hr) Chemicals (fertilizer production only) (1 hr) Ceramics (tiles manufacturing only) (1 hr) Pulp and paper (1 hr) Iron and steel (secondary steel only) (1 hr)
No
No
Other
No
No
Presentation slides Financing Cleaner Production and energy and workshop efficiency options (4 hrs) exercises
No
Tools
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Part 5
An example of presentation slides is given for Boilers and Thermic Fluid Heaters.
Tools
59
Part 5
For each company, case study materials include a company case study summary and case study options. Appendix C gives a list of all case study options and the relevant country, industry sector, energy equipment and other keywords.
Tools
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Part 5
Information included in the Company Case Study Summary An example for a cement company is included in Appendix D Company description: general information about the company such as name company, location, year of establishment, ownership (family/state /private national/private multinational), number of staff, products, annual production or production capacity, reason for participating in GERIAP, and any other information of interest Process description: description of the main process steps at the company Methodology application: examples of how the Company Energy Efficiency Methodology was applied in practice at the company, due that the methodology steps had to be adjusted depending on the companys individual needs, noting that each company is different. See also part 3 and appendix A of the Guide. Options: The focus areas selected for the project (e.g. boiler house, kiln, fans) Total options (1) identified (2) implemented (3) still to be implemented (4) requiring further analysis (5) found unfeasible / not to be implemented For the options implemented, the total investment costs, annual savings, and payback period For the options implemented, the total energy reductions, greenhouse gas reductions, and other environmental benefits The total greenhouse gas reductions (in tons CO2) at the plant between the start of the project in 2003 and the end of the project in 2005. A table summarizing the results of each individual implemented option, including - Focus area and option title - Type of option: good housekeeping, improved process management, production process/ equipment modification, new technology / equipment, input materials substitution, production of useful byproduct, product modification (see Part 2, Company Energy Efficiency Methodology for definitions) - Financial results: investment costs, annual savings, and payback period - Environmental results: energy reductions, greenhouse gas reductions, and other environmental benefits - Comments (e.g. other benefits, barriers encountered) For more information: Contact details of the company and the countrys National Focal Point for the GERIAP project
Tools
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Part 5
Information included in the Case Study Options An example is included in Appendix E Title of option: Summary of the option: mentioning the company name, location and products produced, and describing in short what was observed, what option(s) were implemented, and the main results Keywords: country, industry sector, energy equipment, and other keywords Observations: an explanation of what was observed during the energy assessment (e.g. a high CO level in the exit flue gas of the boiler, which indicates incomplete combustion), and what caused this (e.g. too low air supply or too large lumps of coal) Options: a detailed description of the options to solve the problem and improve energy efficiency and drawings or photos to illustrate what was done Results: Financial results: investment costs, operating costs, annual savings, payback period Environmental results: energy reductions, greenhouse gas reductions, and other environmental benefits Other results: e.g. improved workers conditions, better product quality Charts, graphs or tables to illustrate the savings For more information: Contact details of the company and the countrys National Focal Point for the GERIAP project Note: for several simple and no/low cost options only a summary was written
Technical tools
Several technical tools can assist a company to carry out an energy assessment, identify and implement energy efficiency options and monitor results. The table below describes the technical tools included in the CD-ROM and website Guide. More technical tools may be added to the website in the future, so please frequently visit www.energyefficiencyasia.org.
Tools
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Part 5
Table: Technical tools included in the Energy Efficiency Guide for Industry in Asia Translated into 5 Technical tool Contents Format Asian languages
Worksheets Company Energy Efficiency Methodology: Worksheet 1. Reasons for energy efficiency Worksheet 2. Energy Management Matrix Worksheet 3. Factors of influence on improving energy efficiency Worksheet 4. Team members and roles Worksheet 5. General company details Worksheet 6. General production flow chart Worksheet 7. Production, energy and resource data Worksheet 8. Inventory of major equipment Worksheet 9. Information collected / available for each process step Worksheet 10. Criteria for selecting focus areas Worksheet 11. Energy Assessment Proposal to top management Worksheet 12. List of training courses Worksheet 13. Process flow chart for focus areas Worksheet 14. Walkthrough observations Worksheet 15. Causes, options and screening Worksheet 16. Options feasibility, implementation and monitoring Worksheet 17. Ranking of options Worksheet 18. Implementation proposal to top management Electrical energy equipments: Electric motors Fans and blowers Pumps and pumping systems Cooling towers Air conditioning and refrigeration Compressors and compressed air systems Thermal energy equipments: Fuels and combustion Boilers and thermic fluid heaters Steam distribution and utilization Furnaces and refractories Waste heat recovery Cogeneration Electrical energy equipments: Electric motors Fans and blowers Pumps and pumping systems Cooling towers Air conditioning and refrigeration Compressors and compressed air system Thermal energy equipments: Fuels and combustion Boilers and thermic fluid heaters Steam distribution & utilization Furnaces and refractories Waste heat recovery Cogeneration Word doc Yes
Word doc
No
Word doc
No
Option checklists
Yes
Yes
Tools
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Part 5
Industry sectors Cement Chemicals (fertilizer production only) Ceramics (tiles manufacturing only) Pulp and paper Iron and steel (secondary steel only) Calculation tables Table of density Specific heat Conductivity Steam table Psychometric chart Calorific value of different fuels
Yes
No
Technical terms
A list of technical terms and abbreviations used for electrical and thermal energy equipments
No
Databases Several databases are available to provide contacts, information, events, projects/programs and training courses.
Contact database
The website Guide includes a Contact Database especially for the nine GERIAP countries (although contacts from other countries are also included). When you go to the database, the screen below appears. You can search for contacts by: Country: the nine GERIAP countries but also other countries) Organization type: National Government; Province / Local government; Industry association / Chamber of commerce; Financial institution; Academic / Research; Consultant / service provider; International organization; NGO; Media; Supplier to industry; Other Industry sector: cement, chemicals, ceramics, iron & steel, pulp & paper, or other For example, if you are an Indonesian cement producer wanting to start an energy assessment, you can search the database for consultants / service providers in Indonesia who may be able to help you.
Tools
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Part 5
If you are not yet in the database, you can also add your information into the database so that others can locate you. When you click on Submit your organizations information you can fill in and submit the following form:
Information database
The website Guide includes an Information Database on energy efficiency and Cleaner Production. When you go to the database, you can search for information by: Search: you will need to type in relevant keywords such as the author, country, topic, industry sector, etc. Information type: All, Case studies, Course/Event, Policy/Legislation, Project/Programme, Publication Information format: documents, website, CD-ROM Country Most of the publications produced during the GERIAP project are included on this database (newsletters, surveys, training materials, company case studies), and the database has been supplemented with external information.
Tools
Part 5
65
For example, you may want to find out about other case studies outside the GERIAP project, or a training course on energy efficiency to attend. You can also add new information to the database by clicking on submit new information and providing the following details: Title Information type, with the following options: Case studies, Course/Event, Policy/Legislation, Project /Programme, Publication, Other Date: this can be the date a report was published or the dates of a training course Contact/Author (if applicable): e.g. the author of an industry survey report and contact details Organization: name of the organization who the information belongs to, e.g. the organization giving the training course or the ministry responsible for a certain energy policy Short description: describe in maximum 200 words the information content or give other details Attach: provide the link to the website where this information can be found, an email address of where the information can be ordered, or attach the document for uploading onto the Guide website
In 1999 UNEP started a four-year project aiming at increasing investments in cleaner production in developing countries. The project demonstrates how such investments can be stimulated by helping financial institutions understand the importance of cleaner production and helping cleaner production experts develop creditworthy investment proposals. The Web Site will offer you: Information: Providing and encouraging world wide exchange of information and knowledge on the challenges and opportunities, as well as on the main actors in financing cleaner production investments. Links: Forging alliances with financial institutions, organisations and research institutions promoting cleaner production investments. Investment Window: Featuring success stories and investment opportunities Training and Tools: Enhancing skills and knowledge with the support of top-level international expert partners
http://www.financingcp.org/
Tools
66 Part 5
GHG Indicator
The GHG Indicator is a tool that can be used to calculate greenhouse gas (GHG) emissions for a company and can be found at: www.uneptie.org/energy/act/ef/ghgin/. The The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organisations explains how the indicator works. The GHG Indicator itself is an excel-based programme and GHG emissions are calculated as shown in the figure below. Data are collected for fuel and energy (fuel consumption, electricity use, transport) and for process-related emissions in separate spreadsheets. These data are then multiplied by company specific or standard emission factors. The total GHG emissions for a company are calculated in a summary spreadsheet.
As part of the GERIAP project a simplified spreadsheet was developed to allow companies to quickly calculate their emissions. This can be download from www.energyefficiencyasia.org
Tools
Part 5
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The World Business Council for Sustainable Development (WBCSD) has developed updates and sector specific calculation tools under the GHG Protocol initiative. This is an internationally accepted GHG accounting and reporting standard consisting of standards, practical guidance and calculation tools for different industry sectors. Sectors relevant to GERIAP include iron & steel, chemicals (nitric acid, ammonia, adipic acid), cement, pulp & paper. The calculations tools are electronic Excel spreadsheets with accompanying step-by-step guidance. Found at: www.ghgprotocol.org/standard/tools.htm
Description
Part 4: Energy equipment Option checklists Checklists with common options to improve energy efficiency for: Electrical energy equipments (electric motors, fans and blowers, pumps and pumping systems, cooling towers, air conditioning and refrigeration, compressors and compressed air systems) Thermal energy equipments (boilers and thermic fluid heaters, steam distribution & utilization, furnaces and refractories, waste heat recovery, cogeneration) Part 5: Tools (note: translated tools are already mentioned in part 1 4) GERIAP project Description of the GERIAP project and the project partners Guide brochure Guide publication
Tools
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Part 5
Appendices
A. B. C. D. E. Company examples of the application of the Company Energy Efficiency Methodology Worksheets for the Company Energy Efficiency Methodology Overview of company case studies Example of company case study summary Example of case study option
COMPANY EXAMPLES
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COMPANY EXAMPLES
and Technology University gave 1.5-hour training sessions after work hours for six weeks to plant staff about papermaking techniques, equipments and technology development in China and around the world. Lesson learnt: Existing training programmes can be useful to deliver training on energy efficiency, rather than establishing a separate energy efficiency training programme Indocement (Cement, Indonesia) The company scored high on the Energy Management Matrix because it has many elements in place to ensure effective energy management, most notably: A strong push from majority shareholder Heidelberg Cement group to strive for excellence in environmental and energy performance An ISO 9001 certified quality management system and an ISO 14001 environmental management system, and plans for an ISO 17025 management system A sophisticated on-line, real-time information system is in place at the modern Plant #11and will be expanded to other plants. This system monitors and logs, among other things, the specific power and heat (thermal) consumption for clinker production, environmental emissions, such as dust, SOx and NOx Monitoring of the communitys attitude towards the plant: one of the companys Operating Success Parameters (OPS) is the Public Responses Environmental Index Lesson learnt: High scores on the Energy Management Matrix indicate that there is sufficient basis for a successful energy assessment at the plant and for continuous improvements after that PT Semen Padang (Cement, Indonesia) Throughout the GERIAP project, top management was available to meet with the Team, BPPT (the external facilitators for the project in Indonesia) and the international consultant during each visit. This demonstrated a strong interest in the project and energy efficiency in general and inspired and motivated the Team enormously. Lesson learnt: Top managements availability to meet with the Team on a regular basis is an important motivating factor Holcim Bulacan (Cement, Philippines) Because the company is working towards ISO 14001 certification of its environmental management system, top management wanted to be assured that the energy assessment as part of the GERIAP project fitted within this framework to avoid parallel environmental projects being carried out at the company. A meeting between top management and the external facilitator was organized to explain how Cleaner Production and energy efficiency fit in with an environmental management system as illustrated below:
72
COMPANY EXAMPLES
Dankotuwa (Ceramics, Sri Lanka) Management expected that most of the options with high energy and greenhouse gas reductions would involve high investments that the company could not come up with. For this reason top management expressed interest in looking into the potential for CDM (Clean Development Mechanism) projects, as part of the feasibility analysis of options, to provide the investment capital. However, the GERIAP project focuses on options that make business sense and these would not be eligible as a CDM project, although it was possible to check if any of the identified unfeasible options could in principle meet CDM criteria. Lesson learnt: It is important to be clear with top management from start of what they can expect out of the project Holcim Lanka Cement (Cement, Sri Lanka) During the first meeting between the external facilitator, the companys Environment Manager and top management (task 1a), the CFO of this company indicated that focus areas should be selected based on: Projects already under investigation by the companys Process Team to reduce GHG emissions Areas where Holcim Cement Ltd could use external input and expertise Areas where possible CP-EE options are likely to be low cost and/or with a short payback period,as the company had already committed significant funds to other GHG projects in the next years. Lesson learnt: This showed how important the first meeting with top management was, because now top managements priorities could be considered in selecting focus areas. This way top management quickly approved the proposal for the detailed energy assessment and remained supportive of the project until the end Medigloves Ltd (Chemicals, Thailand) Immediately at the start of the GERIAP project it was clear that top management of this company is truly committed to improving energy efficiency. Throughout the project the plants Team and external facilitators were given total support and trust by top management, and this inspired them enormously to do whatever they could to save the company energy, GHG emissions and money. This greatly contributed to the success of the project at Medigloves. Lesson learnt: Top managements commitment, support and trust are key ingredients for a successful assessment and implementation of options Siam White Cement Company Ltd, SWCC (Cement, Thailand) This company approached TISTR, the Thai facilitating organization, to participate in the GERIAP project rather than the other way around. This reflected top managements attitude towards environmental management: they want to grasp every opportunity to further improve their environmental performance. Lesson learnt: Even companies that are already advanced in environmental management can be open to participate in external projects because top management considers that there is always room for further improvement Several companies: This attached matrix compares the results for two companies: (a) a multinational company and (b) a family-owned company. The multinational company has many formal processes and systems in place (= high scores for policy/systems, organization, information systems and investment) but there appeared to be little ownership by the work floor staff (= low scores for training/awareness, which is mostly aimed at senior staff only, and motivation). The family-owned company has the opposite situation: informal processes and systems, but an incredibly high involvement and commitment from employees to help the company improve energy efficiency. Thanks to the Matrix scores, the Team knew it had to focus on involving work floor staff at the multinational company and on setting up formal committees, policies and systems at the family-owned company to make the project successful. Lesson learnt: The Energy Management Matrix is a useful tool to determine the strengths and weaknesses of company energy management
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COMPANY EXAMPLES
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MOTIVATION
Formal and informal channels of communication regularly exploited by energy /environmental manager and staff at all levels Comprehensive system sets targets, monitors materials and energy consumption and wastes and emissions, identifies faults, quantifies costs and savings and provides budget tracking Marketing the value of material and energy efficiency and the performance of energy / environmental management both within the organisation and outside it. Programme of staff training, awareness and regular publicity campaigns Positive discrimination in favour of energy / environmental saving schemes with detailed investment appraisal of all new build and plant improvement opportunities
LEVEL
ORGANIZATION
INFORMATION SYSTEMS
Energy / environmental management fully integrated into management structure. Clear delegation of responsibility for energy use.
Multinational
Energy / environmental committee used as main channel together with direct contact with major users Monitoring and targeting reports for individual premises based on submetering / monitoring, but savings not reported effectively to users
Formal energy / environmental policy and management system, action plan and regular review with commitment of senior management or part of corporate strategy.
Formal energy / environmental policy, but no formal management system, and with no active commitment from top management Contact with major users through ad-hoc committee chaired by senior departmental manager
Energy / environmental manager accountable to energy committee, chaired by a member of the management board
Same pay back criteria as for all other investments. Cursory appraisal of new build and plant improvement opportunities.
2
Monitoring and targeting reports based on supply meter /measurement data and invoices. Env. / energy staff have ad-hoc involvement in budget setting. Cost reporting based on invoice data. Engineer compiles reports for internal use within technical department
Family owned
Unadopted / informal energy / environmental policy set by energy / environmental manager or senior departmental manager
Energy / environmental manager in post, reporting to ad-hoc committee but line management and authority are unclear
Energy / environmental management the part-time responsibility of someone with only limited influence or authority
Informal contacts used Only low cost measures to promote energy taken efficiency and resource conservation No information system. No No awareness raising of No investment in increasing accounting for materials energy efficiency and environmental performance / and energy consumption resource conservation energy efficiency in premises and waste
No explicit policy
No energy / environmental manager or any formal delegation of responsibility for env / energy use.
COMPANY EXAMPLES
Other lessons learnt: Many Asian companies have a hierarchical management structure, and top management is not always open for change, especially if suggestions come from junior staff. Therefore ensure that a senior person with sufficient experience and credibility is present at the first meeting with top management to get them on board and listen to your ideas about an energy assessment To get top management commitment it is important to explain that the Methodology is easy to implement and will result in increased financial savings from energy reductions Be aware that different top managers may have different views about the importance and the potential of energy efficiency, and that this is often the result of lack of information they have received in the past Commitment from top management is not enough: commitment at all company levels is vital to the success of the project. Clear communication by top management to the rest of the company is the most effective way of achieving this In addition to a first meeting with top management, a half-day introductory seminar could also be organized for top management of several companies so that they can exchange ideas and experiences For demonstration projects it is helpful to conduct a simple viability assessment of companies intending to participate to avoid drop-outs along the way. This should assess top management support, likely changes in company ownership, structure and management, and the economic situation of the company. During the GERIAP project one company had to withdraw from the project due to bankruptcy and subsequent owner change Self-assessments mostly do not work in Asian companies because top management are worried about loosing face and will therefore give themselves higher scores than the real situation. For example, with the Energy Management Matrix it is therefore better for the external facilitator to ask questions about each energy topic and decide on a score based on top managements answers, rather than asking top management to indicate the scores
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COMPANY EXAMPLES
Partner. Because of the small size of the company, the Team consisted of only three members: the Managing Partner, the Production Manager and the Production Officer. No representatives from the shop floor were formally included in the Team, but there were the main source of information during the energy assessment and implementation and monitoring of options. Lesson learnt: Input from the shop floor is essential for an effective energy assessment, regardless of the structure of the Team ITC Ltd PSPD (Pulp & paper, India) The company has a dedicated Energy Manager and a number of small working groups that work on energy and resource conservation for different departments in the company. Their roles, responsibilities and authorities are clear and documented. However, the working groups operate on a stand alone basis and there is not much synergy between them. A Team was formed consisting of the Energy Manager and a few members from each working group to look at energy management at a company level. Lesson learnt: It is a good idea to form a Team with representatives from different existing work groups because that way the work of these groups is linked Coromandel Cements Ltd (Cement, India) At this company, the Team to carry out the energy assessment consisted of members from several committees that already existed and covered different areas of the company, including: Cost Audit Team: which is responsible for gathering and analyzing various data, budgeting, tracking actual performance, identification of issues, proposing solutions, and reporting to management? This includes energy consumption, costs and energy conservation Technical Services Team: which is responsible for analyzing production operations, identifying issues and proposes rectifying measures to improve productivity and reduce resource consumption, including energy. Maintenance Team: which is responsible for daily analysis of equipment vibration and condition monitoring and identifying and implementing measures to increase the efficiency and availability of machines? Task Force: which consists of senior managers and staff members from all departments, who are brought together to study a specific operational aspect (e.g. stores consumption) and submit a report with recommendations to management. A Team with seven persons was set up as a new Task Force to perform the energy assessment. Lesson learnt: Forming a Team based on already existing committees and groups in the company can make the Team more effective Active Carbon Ltd (Chemicals, India) The company does not have an Environmental or Energy Manager or committee nor have energy responsibilities been formally allocated to a staff member. Top management and middle management discuss energy issues at meetings but these meetings do not include workers from the shop floor. Therefore a totally new Team had to be formed: the Plant Manager as Team Leader, a foreman from the production process; a shop floor staff with electrical/instrumentation knowledge and a laboratory chemist. The Plant Manager was also given the formal responsibility for energy management from now on in addition to his existing duties. Lesson learnt: It is important to form a strong team with clear roles and responsibilities, even if the company lacks previous experience with energy management Pindo Deli PP (Pulp and paper, Indonesia) The Team comprised of members of the already existing Energy Saving Project Team under the Engineering Division, which is responsible for energy management and consists of 49 staff, including: A Team Leader who is responsible for communicating Environmental and Quality compliance issues to their respective departments Second-in-command production leaders of different departments on site Six staffs dedicated to maintaining the ISO14001 environmental management system
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Four staff dedicated to maintaining the ISO 9001 quality management system Lesson learnt: Building the Team on existing organizational structures will result in a more successful assessment PT Holcim Indonesia Tbk (Cement, Indonesia) A team was established at the beginning of the project, but due to reorganization at the plant this team was almost entirely replaced with new members. The same happened with the external facilitators, and therefore only one or two people knew about the options that had been identified and investigated for feasibility. It was quite a challenge for the new team to complete the implementation of options and monitoring the results without prior involvement in the assessment and this caused a delay in the completion of the project. Lesson learnt: It is preferable if at least some of the team members are involved from the beginning until the end of the methodology steps to avoid delays PT Semen Padang (Cement, Indonesia) Top management appointed the Production Director as the Team Leader. In addition to a Team for the energy assessment at company level, small teams were also formed for the four plants (named II, III, IV and V) separately. This structure made it easier to carry out the energy assessment at the different focus areas. Lesson learnt: It can be useful to create smaller teams, in order to effectively carry our energy assessments for different focus areas or departments Solid Cement Corporation (Cement, Philippines) The company has an existing energy and environmental group called the Six Sigma. However, the company also selected the process engineer (as Team Leader) and members from the electrical, maintenance and health and safety departments to join the Team because they could add specific knowledge and skills needed for the GERIAP Project. Lesson learnt: Even if the company has an existing environment or energy team, it is still useful to look if there are others with useful knowledge and skills who should join the Team for the energy assessment Steel Asia (Iron and steel, Philippines) The company is preparing for an Integrated Management System Certification and recently created an Energy Management Committee that oversees the energy costs and savings. This committee also became the Team for the GERIAP project so that efforts are integrated in the wider management system. Lesson learnt: By using an already existing team as the Team for the energy assessment it is easier to integrate energy management into wider business management systems later United Pulp and Paper Company, UPPC (Pulp and paper, Philippines) The company has a dedicated Environmental and Safety Engineer (ESE) and he was an obvious choice as Team Leader. Other selected Team members were already involved in the implementation of the energy efficiency programs of the company.
Lesson learnt: If the company already has an environment or energy manager it is easier to form a Team
Dankotuwa (Ceramics, Sri Lanka) The Team included a representative from the accounts department who also attended the five-day technical training programme. This enabled the accounts person to understand the methodology and the technical basics of energy efficiency, which helped him to assist the Team to collect the right cost data. Lesson learnt: By including an accounts person in the Team and giving him/her training on the basics of energy efficiency, he/she will find it easier to provide the Team with the right cost information during the energy assessment and monitoring of results for implemented options
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National Paper Company (Pulp and paper, Sri Lanka) The Team structure at this company was different than for most other companies. Instead of one team, the Mill Manager acted as Team Leader and appointed technical staff to take part in two separate teams for two focus areas (boiler and steam distribution). The external facilitators supervised the two teams and facilitated the application of the methodology. Lesson learnt: Rather than having one Team it is also possible to have a separate Team for each focus area supervised by the Team Leader and/or the external facilitators Asian Chemicals Ltd (Chemicals, Thailand) During the assessment there was a change over of the entire team except for the Production Manager who was the Team Leader. However, this did not cause any difficulties in completing the assessment because the company has good management and information systems and procedures as part of its certified environmental (ISO 14001), quality (ISO 9001) and safety (OHSAS 18001) management systems. Lesson learnt: If a company has good management systems then the assessment is less affected by a change over in Team members Medigloves Ltd (Chemicals, Thailand) The external facilitators for the GERIAP project in Thailand and the plants Team members worked together as a real Team. The external facilitators came to the plant with a fresh perspective and therefore were able to ask critical questions and come up with original suggestions to improve energy efficiency. The plants Team members were very open to suggestions made but because they knew the plant and production process inside out they were able to provide a reality check. The active interaction between the two groups provided the basis for the implementation of successful options. Lesson learnt: The best results are achieved when external facilitators and plant staff work together as a true Team, whereby each group provides their own unique input into the assessment Thai Kraft Paper Industry Co. Ltd. (Pulp and paper, Thailand) A new Team was formed for the GERIAP project, without building on existing committees or work groups. Several junior staff members were included in the Team and this was a success because they were very enthusiastic and motivated to learn about Cleaner Production and energy efficiency from the more senior Team members, external facilitators and the international consultant. Junior staff may be working at the company for many years to come, so they will be important for the continuation of energy efficiency in the future. Lesson learnt: Include some junior staff in the Team because although they do not have many years of experience, they are often keen to learn and contribute to improving energy efficiency and will be working at the company for many years to come, which is important for the continuation of energy efficiency in the long run Viet Tri Pulp and Paper (Pulp and paper, Vietnam) The Team was based on the Cleaner Production Team that was formed in 1999 as part of a previous CP project. Almost all members were familiar with the CP methodology before the GERIAP project, so it made it easy to apply the Company Energy Efficiency Methodology because that is based on the CP methodology also. Lesson learnt: Consider including staff in the Team who are already familiar with Cleaner Production Ha Bac Fertilizer (Chemicals, Vietnam) The companys team comprises 11 members from different sections lead by the Vice Director. Team meetings were held to assess available information, discuss areas of energy usage and select audit focus based on analysis of energy consumption data. For two selected focus areas (boiler house and steam distribution system) the Teams tasks were agreed: (1) analysis and review of present practices (2) development and evaluation of proposed options (3) implementation and monitoring of agreed options Lesson learnt : Team meetings are important to plan and carry out the energy assessment and implement and monitor options
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Company X (anonymous) One of the production staff was appointed as Environmental Manager at the start of the GERIAP project because there was no person on site responsible for coordinating energy and environmental management. This made the assessment easier because there now was a central person to coordinate the process. A disadvantage was that he was not given the authority to implement any energy efficiency options but had to seek permission from top management, who only met once a month at the Board of Directors meeting, which slowed down the process of implementing options later in the process. Lesson learnt: If no specific environmental or energy manager exists, top management can create this position when the Team is formed. However, it is important that this person is given a certain degree of authority to implement energy efficiency options to avoid unnecessary delays in the process Other lessons learnt: Inform all company staff about the importance of energy efficiency and the reduction of greenhouse gas emissions to the company, to obtain staff commitment At some companies the majority of staff was not informed about the GERIAP project and the benefits to the company. This increases the risk that staff are reluctant to cooperate with the energy assessment and to change their existing work practices The Team members should be introduced to the entire company work force to avoid that staff do not want to cooperate with the Team It is best to form a Team as early in the process as possible so that all Team members can take up their role right from the beginning, which will avoid delays later in the process The success of the energy assessment is strongly linked to the Team Leader. It helps if this person has sound technical knowledge and has the authority to make decisions. Often a top management representative or production manager met these criteria The Team Leader is the main contact person for going through the Methodology and his/her facilitating role covers amongst others communication, data collection, organizing meetings and implementing options The Team Leader must be someone who is readily available when needed. At some companies the Managing Director was the Team Leader but then was not actively involved in the energy assessment or available for input. This made it difficult for the Team and external facilitators to keep the project moving In case a member leaves the Team during the implementation of the Methodology, it is necessary to find a replacement as soon as possible who can carry out the same tasks Changes in top management can slow down the process since new top managers must be informed about the work already completed. Having a top management representative in the Team is useful so that he/she can inform new top managers An external facilitator can be useful for the continuation of the Methodology implementation in case there is a large turnover of Team members
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Jangxi Yadong Cement Corporation (Cement, China) The company initiated a Cleaner Production audit of the plant that lasted from September 2003 until April 2004 and overlapped with the GERIAP project. This audit generated 21 no/low cost projects and 10 medium/high cost options, and all options except one medium/high cost option were implemented. As a result the specific coal consumption was reduced by 1kg / ton clinker and the specific power consumption was reduced by 1kWh / ton cement. The GERIAP project piggy-backed on this project by using the plants CP team formed for this audit as the Team for the GERIAP project. Lesson learnt: During the pre-assessment find out what other projects are being carried out at the company to avoid duplicating work and to make maximum use of the strengths of other projects for the energy assessment
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Yuanping Municipal Chemical Industrial Co. Ltd (Chemicals, China) A review of 2001, 2002 and 2003 data of the consumption of resources (see table below) found that electricity and coal consumption have reduced significantly. But the specific consumption per kWh is still very high and therefore there is further scope for improvement. Lesson learnt: If energy consumption has reduced over the past years, then this does not necessarily mean that there is no further scope for improvement. To determine this the Team should also calculate specific consumption and where possible compare these with benchmark figures or equipment design parameters Vishakapatnam Steel Ltd (Iron and steel, India) This integrated steel plant has 22 departments and it would take too much time to carry out a preassessment to collect general information and prepare production flow charts for the entire plant. For this reason the focus area was selected first and a pre-assessment was only carried out for the focus area. Lesson learnt: For large plants it may be necessary to select a focus area before carrying out the preassessment Coromandel Cements Ltd (Cement, India) As part of the pre-assessment, a schematic overview of the information flow within the company was prepared to give the Team a better understanding of what information was collected, where and by whom, and to whom this information was reported. This overview was very helpful during the collection of baseline data during the detailed assessment (task 2d). The overview is given below. Lesson learnt: An overview of information collected and reporting within the company is helpful to prepare for the assessment (step 2), especially establishing a baseline (task 2d)
Daily review Management Review Meeting
held fortnightly or monthly
Schemes Reports for proposed projects Monthly report with results and forecast budget
by Management
Daily Summary Report: - Proposed actions - DPR - Stores data - Stoppage analysis - Electricity / power report Proposed actions Stoppage analysis Electricity Outputs
Daily Meetings
Section Meetings
by section operators
Daily readings
Puyat Vinyl (Chemicals, Philippines) Management supports the environment work but there is no formal environmental policy or environmental management system in place. However, management considers environment to be implicitly covered under its quality management system that is certified to the ISO 9001:2000 standard. Lesson learnt: Some companies may cover environment and energy management as part of their quality management system
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Holcim Bulacan (Cement, Philippines) Specific electricity consumption and heat rate data were readily available, but specific GHG emission data were more difficult to obtain. GHG emissions expressed as tons CO2/ton clinker were found to be wrong and it was only possible to determine correct figures for tons CO2/ton cement. In addition, reliable GHG emissions data were only available from November 2003 onwards, after the installation of the new continuous emission monitoring system (CEMS). Lesson learnt: Greenhouse gas emissions data are not as easy to obtain as energy data because GHG emissions are not as often measured or calculated by Asian companies Associated Motor Ways, AMW (Iron and steel, Sri Lanka) As part of the pre-assessment an overview of existing meetings was made with energy and environment discussed which can be used at a later stage to communicate about the energy assessment and the results. See table below. Lesson learnt: An overview of existing meetings can be useful to communicate to management and staff about the energy assessment (task 2a) and results (task 5b and 6a) Meeting name
Budget meeting
Attended by
GM, Departmental heads MR, GM, Departmental heads
Topics covered
All matters connected with monthly and annual budgets Relevant to ISO 9000
ISO 9000- 2000 steering Once in three committee meeting months Management review meeting Meeting with the employees Departmental meetings with the heads Sectional meeting on Projects Once in six months Weekly Daily Twice a week
GM, Departmental heads, ISO 9000 and other Supervisory staff Departmental heads, Employees General departmental work GM, All Departmental heads Factory Manager Project Engineer Sectional Heads Related to budget (production plan) Energy / CP related projects
CHICO (Iron and steel, Sri Lanka) Once the Team was formed, a meeting was held to plan the pre-assessment. It was decided to start with a walkthrough of the plant, in which the whole Team participated, to identify possible focus areas. After the walkthrough the Team met again to decide which focus areas to select for the detailed energy assessment. Lesson learnt: It is useful if all the team members participate in the walkthrough of the plant. This shortens the time to select focus areas afterwards Lanka Tiles Ltd (Ceramics, Sri Lanka) The company has an ISO 9001:2000 certified quality management system. During the pre-assessment it was found that the information flow developed as part of this system (see figure below) could also be useful for future communication and reporting of energy information.
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COMPANY EXAMPLES
Production QA & RD Manager Reports according to ISO 9001 Lab testing of incoming material finished products
Other lessons learnt: Remember to look critically at collected data, because just data has been collected, this does not mean that the data is correct! Technical data can often be obtained from Central Control Room of the plant General company information can often be obtained from the company website and communication materials such as flyers and brochures Be aware that data published externally for official purposes (tax, permits etc) may be different from the real data, such as production data To obtain basic data sometime has to be done several times (by phone, e-mail or visit) One of the Team members should be given the responsibility to coordinate the collection, processing and storage of information during the pre-assessment Because you are meeting with so many different staff members, it can be useful to use tape recorders to record conversations and write up meeting notes Make it clear at the start of the pre-assessment what information is needed and by when, so that it is more likely that you will get the information you need! A high level process flow chart can be supplemented with flow charts for individual process steps or units of operation Sometimes a walkthrough during the pre-assessment does not show the real practice, because staff will want to mask any inefficient practices and may therefore stage a different way of working. For this reason it is sometimes beneficial to walk through the plant unannounced This is one of the Methodologys tasks where worksheets can be very useful to complete the task is as little time as possible By forming two or three groups to cover different areas of the plant and/or collecting different types of information, the pre-assessment can be completed in much less time
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years. Because the plant is a large consumer (600,000 m3/month) and ground water costs 1.5 rmb/m3 compared to 3 rmb/m3 for municipal water, the company wishes to continue to use ground water but try and reduce water consumption at the same time. Water consumption was therefore an important selection criteria for focus areas, and cooling towers were selected as a focus area as they consume a lot of energy and water. Lesson learnt: Other resources than energy, such as water, can be important when selecting focus areas, especially when these are expensive, when there is a shortage or when it is a priority in Governments policies Vishakapatnam Steel Ltd (Iron and steel, India) The focus areas selected by the Team were based on the preference of top management to ensure their support for the energy assessment, and less on data analysis. Focus areas included the captive power plant and the chilled water plant. Lesson learnt: Top management preference is a very important factor in the selection of focus areas ITC Ltd PSPD (Pulp & paper, India) Since the company carries out regular monitoring and data collection, the company knew where the main energy problems and improvement areas existed. Therefore the selection of focus areas was relatively easy. However, based on the Teams further measurements and analysis of the data some additional focus areas were added. The focus areas selected were the soda recovery boiler, lime kiln, digesters, paper machine, and coal-fired fluidized bed boiler. Lesson learnt: A good monitoring- and data collection system helps to identify focus areas but it is still important to take additional measurements to find any less obvious focus areas Coromandel Cements Ltd (Cement, India) Top management played an important role in the selection of focus area at this company. After a walkthrough of the entire plant, the external facilitators and the Team met with top management. Top management has regular meetings with staff, top management held the same views as the Team about the choice of focus areas. Top management proposed to: Leave out some focus areas because they were already being addressed through other projects and/ or they would probably need large investments which the company does not have at this moment Carry out some monitoring to confirm that the proposed focus areas were selected based on the right information. Due to lack of monitoring equipment, a local equipment supplier was contacted for a demonstration of monitoring equipment by monitoring some parameters for the proposed focus areas. The focus areas selected were the coal mill circuit, and the kiln and preheaters section. Lesson learnt: Top management can play an important role in the selection of focus areas Indocement (Cement, Indonesia) This large company has almost twenty parallel cement production lines. Because of this, a production flow chart and data collection was only done for one of the production lines that would be used as a basis for this project, and not for the entire plant. Because of similarities between production lines, the work done at one production line could later be carried out for other production lines in very much the same way. Lesson learnt: For large companies with parallel production lines, it is more practical to focus on one line only and later to apply the same principles to the other Pindo Deli Pulp and paper (Pulp and paper, Indonesia) Compressed air supply was considered as a possible focus area but was not selected because this is contracted out to a third party and if an energy assessment is to be successful then cooperation from the contractor is essential. A possible barrier is that contractors earn more money if they can sell more compressed air, and therefore they should be given some monetary incentive to assist the company with reducing consumption.
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Lesson learnt: When selecting focus areas, consider if the cooperation of contractors or suppliers is needed for the assessment and if they are likely to cooperate PT Krakatau (Iron and steel, Indonesia) There were five potential focus areas and there were reasons supporting the selection of each of them. The Team held a facilitated discussion whereby first criteria were agreed, such as management preference, energy reduction potential and cost reduction potential. Then each focus area was assessed against these criteria before selecting focus areas. Lesson learnt: By first agreeing as a Team on the criteria to select focus areas and only then assess each focus area against the criteria it is possible to more objectively come to an agreement on what focus areas to select
Lanka Tiles Ltd (Ceramics, Sri Lanka) While focus areas are often mainly selected because of high energy consumption and costs, at this company the raw material preparation area, including jaw crushing and hammer milling, was selected as a focus area because of high losses of energy and raw materials, which made it immediately clear that a lot of improvement opportunities existed: The driving motors of the jaw crusher and hammer mills consume a considerable amount of energy Major raw materials for the process (Feldspar and Dolomite) are received as a mixture of a wide range of particle sizes and are crushed by the jaw crusher and hammer mill into small particles. The smaller particles in the received raw materials do no need to go through the jaw crusher and the very small particles not even through the hammer mill but could be added directly to the ball mill or standby raw material heap. Therefore energy is wasted and separating small particles from the raw materials would thus make sense Small particles act as a cushion for the larger particles, reducing the effectiveness of milling operation, the material throughput and ultimately increased the energy consumption per unit load of raw material. Separating small particles prior to crushing would therefore make sense Very large lumps of raw material also increase the jaw crusher power consumption (and reduce the throughput). Manual breaking of large lumps prior to feeding them into the crusher would reduce the jaw crusher energy consumption Raw material is lost at the standby raw material piles due to the carpeting effect (i.e. small sized materials spreading around the piles like a carpet which makes it difficult to collect them for processing) Lesson learnt: Focus areas are sometimes selected because it is immediately clear that there are significant losses and many options for improvement
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COMPANY EXAMPLES
G-Steel (Iron and steel, Thailand) The plants Team, the Thai facilitating organization TISTR, and both local and international consultants carried out the assessment at this plant. The following options were presented to the plant manager: Scrap preparation and utilization of chemical energy (i.e. during the melting process) options to reduce electricity consumption of the Arc Furnace Improve the deteriorated refractory and fine-tuning of the gas burners to reduce natural gas consumption of the tunnel furnace Investigation of non optimized utilization and a leak survey to reduce electricity consumption of the compressed air system Investigation of the excess energy utilization of cooling water system The feedback from the plant was that their priority is to produce hot rolled coils of steel to meet the target of 100,000 ton/month. In addition, despite monitoring equipment available on site, most data/information is inaccessible due to the lack of systematic information system and internal communications. Thus, all proposed options are undermined and tend to be ignored. Lesson learnt: It is very important for the team to ensure that all proposed options and sufficient details will be delivered to the top management Siam White Cement Company Ltd, SWCC (Cement, Thailand) Because this is such a large and complex company with several internal environmental and energy programmes in place, it was important to select focus areas that had not been covered yet and that were small enough to make it possible to go through all the Methodology steps within the projects timeframe. The focus areas selected were therefore the improvement of the companys power supply system and the reduction of electricity consumption of major equipment, e.g. Cement Mill, Raw Mill. Lesson learnt: For very large companies it is important to select focus areas that are manageable in size and complexity Other lessons learnt: It is a good idea to select focus areas during a facilitated brainstorm session, where one person uses a whiteboard to write down the main potential focus areas and the reasons for evaluating them A general understanding of the plant and process steps is necessary before selecting focus areas Choose the focus areas that not only have high energy inefficiencies but also have high potential for improvement Management preference is important when selecting focus areas, but dont forget to also consider suggestions from (technical) staff as they often have a better understanding of the real potential to improve energy efficiency Top managements selected focus area are sometimes based on their perceptions of where energy is lost, so it is important to confirm this with data collected during the pre-assessment Although focus areas should be selected before the energy assessment, in practice additional focus areas are sometimes added during the assessment when more data becomes available When involving a consultant, be aware that he/she may prefer the selection of focus areas where his/her experience lies, although these are not always the best focus areas to be selected from a companys point of view Most companies select focus based on where high energy cost savings are, rather than where high reductions of wastes and emissions are Consider the knowledge of the Team members in selecting the focus areas and this will make the assessment easier to complete and the identification of successful options more likely
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COMPANY EXAMPLES
Sai Son Cement (Cement, Vietnam) The company had very satisfying experiences with the ISO 9001 and ISO 14001 certification process. The ISO 14001 management system provided the basis for a proposal to systematically analyze the companys energy situation, uncover the hidden potential to improve energy efficiency, and screen possible options for feasibility analysis. Lesson learnt: An ISO 14001 environmental management system can provide the framework for planning and carrying out the energy assessment Ha Bac Fertilizer (Chemicals, Vietnam) Before the GERIAP project the company had carried out a restructuring of the energy system with the assistance of an external consultant. Because of having some experiences in the energy project the staff participating the restructuring project were invited to assist with this energy efficiency assessment. Lesson learnt: It is useful to check if the company has done any previous work on energy assessments. Using staff who were involved in previous projects at the company has as an advantage that they already have the trust of top management which makes it easier to obtain approval to carry out an energy assessment Hanoi Ceramic Ltd (Ceramics, Vietnam) The Vice Director, a team leader, and the Head of the Technical Department attended a one week technical training (step 2a, which in this case was carried out before most of step 1). This ensured that middle and top management were trained on energy efficiency and the Cleaner Production methodology. For these reasons, it was easier to obtain management commitment, establish a Team, and prepare and get approval for the proposal for the energy assessment. Lesson learnt:It is useful to also include top and middle management at the energy efficiency training in order to get support later on in the process. The Team leader should be a well technical knowledge person and have the right to make decisions Company X (anonymous) The pre-assessment showed that huge potential savings exist for this Government owned plant. Despite this knowledge, it took several months to get the energy assessment started at this plant because the
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COMPANY EXAMPLES
plant is Government owned and has a complicated management structure with many layers. Approval from site management was not sufficient and a lot of time had to be spent to get the approval from top management. Lesson learnt: when dealing with a Government owned plant or a plant that is part of a larger conglomerate a lot of time may be needed to get approval for an energy assessment because of the more layered and bureaucratic management structure Other lessons learnt: Instead of submitting the proposal on paper, presenting the proposal to top management can speed up the approval process. This would also be a good opportunity to answer any questions management might have and manage their expectations It is essential that top management agrees that the Team members can use their work time to carry out the energy assessment (and not spare time). Make sure that this is specifically mentioned in the proposal to top management, and that an estimate of time each Team member needs is included Make sure that the proposal is clear and detailed enough, because once approved by top management it will serve as a work plan for the Team during the assessment Although the proposal template (Worksheet 11) can be a useful starting point, also check if there exists a standard template within the company that would be better to use or has to be used (this can be more detailed or less detailed) The proposal should be written as soon as focus areas have been selected to keep the interest of the Team and top management In preparing the proposal it is useful to have a person from the Finance Department in the Team because top management will want to know how much it costs to carry out an energy assessment The participation of outside facilitators or experts can be useful in writing and obtaining approval of the assessment proposal Costs of the assessments and financial benefits from implemented options are top managements first priority, so this is an important component of the assessment proposal If the commitment from top management cannot be obtained for an energy assessment, then the Team could consider submitting a slimmed down proposal that requires the minimum resources an time
step 2 Assessment
Task 2a. Staff meeting and training
Bengal Fine Ceramics Ltd (Ceramics, Bangladesh) Bengal Fine Ceramics production of ceramic products is very labor-intensive with 650 staff working for the company in three shifts. Many of the energy losses are influenced by the people working in the plant (several staff were interviewed about the way they work and to identify where energy is lost) and for this reason staff were informed at the beginning about the upcoming energy assessment. Lesson learnt: In labor-intensive companies with many employees it is even more important to inform staff when an energy assessment is planned TK Chemical Complex Ltd (Chemicals, Bangladesh) Staff at this plant received training during several stages of the project: Three production staff attended a 1-week technical training on Cleaner Production, energy efficiency and the draft methodology that was to be tested at their plant An international consultant accompanied the external facilitators from Bangladesh during the energy assessment and many more staff were informally trained during the walkthrough of the plant, with data analysis and the brainstorm sessions to identify options Three production staff attended a three-day workshop organized for all participating Bangladeshi
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COMPANY EXAMPLES
plants to receive additional training on establishing a baseline and monitoring results of options An international consultant revisited the plant as a demonstration plant to further train the companys Team on the application of the methodology Staff gave the feedback that most of their knowledge about the production process and equipment was learnt on the job. They, therefore welcomed training from outsiders and showed that they were very eager to learn more on how to run the plant more efficiently. The training paid off: it was found that in addition to the nine options selected for feasibility analysis during the energy assessment, the plants Team independently identified and implemented many more options. Lesson learnt: Staff training not only helps staff to carry out the energy assessment the first time, but also increases the chance that they independently will continue to identify and implement energy efficiency options in the future Coromandel Cements Ltd (Cement, India) At the start of the assessment there was a big meeting between the management of the company, the external facilitators and more than 100 of the company staff. During the meeting it appeared that employees are extremely loyal to the management and the company, and over 90 percent of the staff have been with the company since 1986. The relationship with Union is extremely good, and the Union representatives present at this meeting emphasized that it was one big family and the management as parents to staff & their families. Lesson learnt: Informing many staff at the start of the energy assessment combined with loyalty and commitment from staff is important for the Team to carry out a successful energy assessment Pindo Deli Pulp and paper (Pulp and paper, Indonesia) Several meetings, reviews and communication channels were identified through which staff could be informed and trained about energy efficiency: Management discusses environmental and energy issues at their weekly meeting The Efficiency Department conducts monthly reviews of KPIs (key performance indicators) for each production unit, including for productions, energy and water Energy Intensity Reports and a quality ISO Newsletter is published and disseminated to staff Lesson learnt: Find out what meetings, reviews and reports exist for the company as these can be useful to inform and train staff about energy efficiency CHICO (Iron and steel, Sri Lanka) Staff at this plant received training during various stages of the project: Three technical staff attended a 5-day training programme delivered by SMED, who are the external facilitators for the GERIAP project in Sri Lanka A larger group of employees was selected, including three trainees, receiving thorough training on Cleaner Production and energy efficiency Many staff participated in the one-day walkthrough of the plant, which was also attended by an international consultant who described typical energy losses and efficiency opportunities for the various equipments and departments A three-day training programme was given to the Team on the draft Company Energy Efficiency Methodology A Roundtable with the other four Sri Lanka plants was held half-way during the implementation phase of options to exchange experiences and discuss successes and difficulties Lesson learnt: A variety of training to a large group of company staff will increase the ownership of energy efficiency by staff and therefore increase the chance of successful energy efficiency options Holcim Lanka Cement (Cement, Sri Lanka) The company sent one process engineer, one accounts person and one administration person to a five-day technical training programme, given by the external facilitating organization, to learn about energy efficiency (technical knowledge) and Cleaner Production (the methodology). Especially the non-technical staff members benefited from this training and were now better prepared to work with
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the technical staff on the energy assessment (e.g. the accounts person now knew what the production, energy/resource and cost data that she would need to give would be used for). Lesson learnt: It is useful to also include non-technical staff in the training programme so that they better understand how to assist the technical staff in the energy assessment Puyat Vinyl (Chemicals, Philippines) Before the energy assessment started, the external facilitators gave a one-day in-house training to the staff of this company on the Cleaner Production concept and methodology and how to apply this to improve energy efficiency. After the assessment (step 2), external facilitators met again with the Team to facilitate the identification of causes of energy and material losses and the identification of possible options. The Fish Bone Diagram was used successfully as a tool, and this was a useful learning process for the Team. (see diagram with example of a scalepit pump) Lesson learnt: An external facilitator can be useful at different steps in the methodology. He or she can provide training of staff as well as to assist the team in how to do the cause analysis and how to use the fish bone diagram
Man Lack of adequate training Poor maintenance Lack of SOP worn out impeller Inefficient pumps defective footvalve Inefficient motors
Machine not properly adjusted transformer tap setting high voltage deviation from rated High energy consumption in scale pit pumping
old standard type motors poor switching design Lack of Appropriate Tools Control Problem
Method
Material
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Lanka Tiles Ltd (Ceramics, Sri Lanka) Two technical staff and one accounts person attended a five-day technical training course at the beginning of the energy assessment. Although a consultant from India gave some training sessions in English, most training sessions were given in Sinhala, which made it easier for participants to understand the information. Lesson learnt: If staff are trained in their own language then they will learn more from the training course Lime Master Ltd (Cement, Thailand) A one-week technical training course was delivered by TISTR, the facilitating agency for the GERIAP project in Thailand. This company decided to send the Deputy Production Manager, the Chief of Production Process and the Chief of Quality Control to this course so that the entire production process was covered. This made it possible to easily extend the energy assessments to other focus areas after the methodology was applied once. In addition, top management is adopting the bottom-up energy and environmental management policy to the company production process. Lesson learnt: When the company selects which staff should follow training it is important not only to consider the selected focus areas, but also what areas may need to be covered in future assessments Other lessons learnt: All staff should be made aware that energy can be saved during their daily tasks. To make them aware of this, ask staff before or during the training to write down three suggestions for energy savings for their work areas. There can be presented and discussed at the training session This Guide includes several training materials that can be used for training sessions for company staff Staff training sessions should also include case study examples and a plant walkthrough to apply the learnt information into practice Some companies send staff to external training but they are not allowed to share certain company information and data with other students for confidentiality reasons. Therefore is it important for those who deliver the training to have fictive case study examples and exercises In-house capacities to carry out an energy assessment are sometimes overestimated and a consultant or external facilitator should be aware of this and be flexible in relying on the support from company staff Special management training should be offered to internal technical staff to increase their ability to convince top management to implement options and continue with improving energy efficiency Regular staff meetings are important to ensure that staffs interest in energy efficiency and their cooperation during the assessment stays high The presence of top management at (the start of) a meeting where the assessment is introduced to staff can help in getting staffs support for the assessment
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system, there appeared to be no flow meters, which made it impossible to quantify compressed air losses. Several leaks could be seen and heard, resulting in the Team recommending a detailed compressed air leak survey. Lesson learnt: The walkthrough of focus areas is an effective way to make observations on energy losses that are no readily visible in the reading of data Holcim Lanka Cement (Cement, Sri Lanka) One of the focus areas selected for this company was fans and motors. Because these are distributed throughout the plant, it was not applicable to prepare a process flow chart for this focus area. Instead of this an inventory of fans and motors at the plant and their characteristics (location, capacity, energy use etc) was made. Lesson learnt: The process flow chart is not always applicable to cover the main characteristics of a focus area Other lessons learnt: Gather as much information on the quantities of inputs and outputs as possible, but do not spend too much time on exact figures at this stage (this will be part of step 2d) Check if existing drawings of focus areas still reflect the current situation as process modifications may have been made If the filing / administrative system of the company is not good it may be difficult to obtain the drawings / flow diagrams for the focus areas. Sometimes it is therefore easier to make a flow diagram from scratch Additional information about process flow chart could be obtained from the secondary data (literature, etc. Sometimes companies developed their own production process and therefore flow charts for focus areas may be considered confidential and cannot be given to external facilitators. In this case try to obtain a high level flow chart that does not give the confidential details Flow charts for focus areas that are production processes should also pay attention to auxiliary activities and equipments such as boilers, air compressors, cooling towers It is very useful if the Team prepares the flow chart with the assistance of external facilitators or consultants to get a complete picture
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Bengal Fine Ceramics Ltd (Ceramics, Bangladesh) This plant was a demonstration plant as part of a Cleaner Production training programme of the five Bangladeshi plants participating in the GERIAP project. Staff from the fertilizer plant and the trainer identified ten additional options during the plant walkthrough based on the experiences from their own plant (see table below). This was possible despite ceramics manufacturing and fertilizer production being totally two different processes, because many of the equipments used and environmental problems are the same. Lesson learnt: It can be useful to have employees from other companies join in the plant walkthrough because they can identify energy efficiency opportunities based on what is done at their company Observations Dust from material handling operations Spillage during mixing Consequences Dusty work environment Manpower required to put the mix back into the process Unclean work environment Manpower and energy required to put the slurry back into the process Unclean work environment High energy consumption and costs Causes Lack of dust suppression system Improper material handling Options Install dust suppression system Improve material handling procedures Improve material handling procedures Provide external dry air for fans
Spillage during pumping of slurry into the moulds High energy consumption by operating fans for drying in castings Rejections of green ware (38-40%) due to the moulding defects
Money and materials wasted during grinding raw material, mixing and moulding Dusty work environment
The installed fans circulate the same humid air resulting in inefficient drying Delay in joining the different parts of the casting
Dust emission during cleaning with compressed air Fugitive emissions during glazing Heat loss during cooling cycle Rejected ware
Lack of enclosures
Review process and operating procedures to speed up the process Install enclosures
Loss of fuel Staff exposure to fugitive emissions Loss of heat and thus high energy costs Monetary loss
Air is not extracted during glazing process Absence of heat recovery Problems with material handling, moisture content in dried ware, and firing rate To generate electricity during power cuts
Install extraction and control system Install heat recovery system Review process and operating procedures to eliminate causes of rejects Not determined
DG sets
Noise pollution
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Medigloves Ltd (Chemicals, Thailand) Prior to the walkthrough of the plant, several non-technical workers were trained on how to recognize inefficient use of energy and materials. They joined the Team, the external Thai facilitators and an external consultant in the walkthrough of the plant and managed to point out several inefficiencies that staff working in the plant every day had got used to, such as dripping or left open water taps, leaking steam valves, and compressed air leaks. Lesson learnt: Non-technical staff who do not work in the plant on a daily basis are able to identify obvious losses of materials and energy because they look at the processes with fresh eyes, and therefore they should join the walkthrough of the focus areas Other lessons learnt: Keep an open mind during the walkthrough and try to think outside the box. Just because a process has been running in a certain way for years, it does not necessarily mean that it is the best way of doing it! Time can be saved by splitting the different tasks within the Team, especially if several focus areas are selected. For instance, of three focus areas are selected, split the Team into three groups to work on one focus area. After one or more days, meet up to discuss your findings and exchange ideas Ensure to use all necessary safety equipment during the walkthrough, such as protective clothing, boots, helmet, glasses and earplugs If the company doesnt have its own measuring equipment, try to solve this problem quickly because quantifying inputs and outputs will be much more difficult without measurements. Possible solutions are involving an external facilitator/consultant who has monitoring equipment, hiring monitoring equipment, or asking suppliers of the energy equipments that are included in the focus areas to come and take measurements for you For some locations in the plant it is not possible to take measurements using portable or installed monitoring instruments. An alternative source for information is the control room A walkthrough can be done by following the process pathway from start to finish, for example, check the compressed air piping system for leaks starting from the compressor Use labels or tags to mark findings on site during the walkthrough Make time to speak to the staff on the floor during the walkthrough as they best know the dayto-day functioning and routines of their working areas. To get their cooperation, explain that you want to help to improve (and not criticize!) their ways of working A walkthrough usually generates many observations, but it does not necessarily result in the identification of clear options It is very useful to talk to the operators because they often have information that can be useful in identifying low cost opportunities, such as changes in operating procedures or simple equipment modifications It is useful to prepare questions before the walkthrough which need to be asked to work floor staff Monitoring instruments are useful to quickly identify energy losses during the walkthrough, such as the infrared thermometer to determine heat loss
Task 2d. Quantify inputs and outputs and costs to establish a baseline
TK Chemical Complex Ltd (Chemicals, Bangladesh) Before data collection started, an overview of existing reports was made as given in the table below. It was found that energy cost and consumption data are taken from monthly invoices but that the plant itself does not monitor energy because energy is considered as a fixed cost and therefore not actively managed. As a result a breakdown by days or sections was absent. Daily and monthly reports are disseminated amongst management but not communicated to section heads or staff. Therefore section heads and staff members are not provided with the information to identify ways to improve energy
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efficiency and production. The team therefore had to spent several weeks to collect data for electricity, furnace oil, raw materials, steam, compressed air, waste, water and waste to be able to establish a baseline. Lessons learnt: Preparing an overview of existing monitoring and reporting of energy will help the Team estimate how much time is needed to collect data to establish a baseline. If few data are available then this task could take several weeks Report name Frequency Information included Daily Daily Paper production (gross tonnes) Production Running hours and down time Report Breakdown by reasons for down time, such as power failure, voltage fluctuation, and shortages of steam, raw materials and furnace oil Production & Monthly Consumption Report Paper production (net tonnes) Paper materials consumption (waste paper and pulp) Total running hours and down time Breakdown by reasons for down time Chemical consumption and stock position Stock in ream & weight Total stock Delivery Balance Stock Target Quantity of raw materials & value Quantity & value of chemicals Quantity and value of power & fuel Overhead expenses Prepared by Distributed to General Director Finance Manager, Project Directors Factory
Managing Director, Director (O&M), Director (Finance), Project Directors TKCCL, GM (Admin), Store Office
Monthly
Cost Sheet
Monthly
Accounts Department
Managing Director, Director (O&M), Director (Finance), Project Directors TKCCL Managing Director, Director (Finance), Project Directors, TKCCL
Urea Fertilizer Factory Ltd (Chemicals, Bangladesh) Management mentioned at the first meeting that inefficiencies are mostly happening due that the plant is old, and that new technologies rather than improvements to the existing processes were needed to improve the plants energy efficiency. An international consultant assisted the plants Team and external Bangladeshi facilitators with the collection of baseline data for the plant and compared these with specific resource and energy consumption data of other similar fertilizer plants. The results convinced management that improvements in resource and energy efficiency of at least 20 percent would be possible by improving the existing production process without purchasing new technologies. Lesson learnt: Quantifying inputs and outputs and costs can be important to convince management of the potential to improve energy efficiency, which in turn will help in getting their support to implement options at a later stage Anhui Linquan Chemical Industrial Co Ltd (Chemicals, China) There were two major losses observed for the water gas department: heat loss from blow gas and relaxed gas and CO loss in the pipe transport system. This made it possible to come up with an option
Energy Efficiency Guide for Industry in Asia
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to install a heat recovery system that would provide a solution for both losses: heat is reused and lost CO gas is captured and burnt. Lesson learnt: Because a material balance gives a clear indication of all major losses for one focus area, this makes it easier to find options that deal with all losses together instead of each loss separately Jangxi Yadong Cement Corporation (Cement, China) The Team could make use of the companys on-line monitoring system to collect baseline data. This system covers production, consumption and financial information but also management, process and other information. This allows the company to pro-actively manage production and operation cost at company and department level. The plant manager and each department has a terminal display unit that can be accesses by most production staff to continuously enter and read production parameters such as temperature, pressure, flow rate, materials and energy consumption, and wastes and emissions. This has as an advantage that any irregularities are immediately noticed and reported to the plant manager. Because the system stores the monitored data, daily and monthly reports can be produced automatically, which facilitates the communication between different departments and to top management. However, it was noted that some on-line measurements are not very accurate, for example, the flue gas analysis at the inlet chamber of the kiln, and the Team took additional measurements to get more accurate data. On-line measurements of coal consumption were found less accurate than the daily measurements by staff on the work floor so the Team used the latter data. Lesson learnt: A good information system will save the Team a lot of time to collect baseline data. However, it is important to check the quality of on-line measurements against real measurements to ensure that the data collected is accurate Shijiazhuang Iron and Steel Company Ltd (Iron and steel, China) The company decided to install a cogeneration system, but being expensive it is difficult to secure the required investment capital. As a solution, the company has planned its installation over a threeyear period so that the costs can be spread over three financial budgets. In addition, the company was interested in finding out about ESCOs (Energy Service Companies) in China, which could assist in lending the company part of the required capital in return of a percentage of the profits. Lesson learnt: When obtaining the financial capital for expensive options is a barrier it may be possible to spread the options implementation over a number of years. Another option is to seek assistance from ESCOs which have been established in several Asian countries to provide the investment costs for energy projects in return for a percentage of the savings for a number of years Yuanping Municipal Chemical Industrial Co. Ltd (Chemicals, China) The company has very few meters to measure resource consumption and therefore only data on production, raw material consumption and energy use were available from invoices from the accounting department. Two industry experts participated in the assessment of this plant used their knowledge and experience to get some estimates of inputs and outputs, which allowed the Team to establish a minimum baseline. Lesson learnt: In the absence of meters to quantify inputs and outputs for focus areas, industry experts can assist with providing estimates Siflon Drugs Ltd (Chemicals, India) Generally the company did not have much data for the various equipments used in the plant. In order to obtain baseline data for the equipments, monitoring instruments were used (provided to the external facilitator through the GERIAP project) to measure the most important parameters to establish a baseline. These instruments were also used to monitor the results after the implementation of options (task 5a). Lesson learnt: Monitoring instruments are required to measure the most important parameters, especially if no data is available. An external facilitators assistance could be used in case no monitoring instruments are available at the company
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ITC Ltd PSPD (Pulp & paper, India) Most of the crucial inputs and outputs and operational parameters are measured by the company. The data is compiled on a regular basis and is available on the companys intranet. Therefore the analysis of trends of resource consumption by equipment and comparison with standard figures was not much of a problem for the Team. Lesson learnt: Getting access to any electronic data available speeds up the data collection process for the Team Coromandel Cements Ltd (Cement, India) The company has a good but informal data collection system, and therefore it takes time to collect the data needed. The external facilitators gave 2 company members of the Team a list of the type of data needed during the technical training course (task 2a). Therefore when the assessment started, most of the baseline data was ready. Lesson learnt: Giving a list of required data and information to the company Team will save the external facilitators time when establishing a baseline during the assessment Active Carbon Ltd (Chemicals, India) This company has a quality management system that is certified to the ISO 19000-2000 standard. As a result, data for raw material use, products made, costs and quality were readily available. However, as the company is operating in a highly competitive market, many of the process parameters (e.g. temperature, pressure, time duration of the cycle, exact nature of chemical used etc.) are confidential and not publicly disclosed. To establish a baseline the median values were therefore taken for these process parameters, which still give enough information to make a material balance (task 2e) and identify losses (task 3a). Lesson learnt: A good quality management system helps in the work of collecting good quality data. If the data figures are confidential, median values can still give sufficient information for a material balance because of their high quality Indocement (Cement, Indonesia) Energy consumption is managed through the quality and environmental management systems, managed by a Management Representative. Each unit of the company has been given a minimum baseline performance and each month each units actual performance is evaluated against this baseline, with the purpose of identifying energy losses and areas for improvement. As a result it was relatively easy to obtain baseline data for energy and determine where losses occur. Lesson learnt: If a company already has a system to measure energy for different departments then it is relatively easy to establish an energy baseline and identify losses PT Krakatau (Iron and steel, Indonesia) The company has no online information systems, therefore it was difficult to obtain historical and current data. In addition, most plants and the company have hot processes and sometimes temperatures were too high to take temperature measurements using infrared sensors. For example, due to hot temperatures it was only possible to inspect billets visually and it was not possible to label inspected billets. Because of this, several inputs and outputs were calculated and/or estimated using the experience of the external facilitators and the plants Team members. The same applied to monitoring results of implemented options. Lesson learnt: If real measured data are not available it is sometimes necessary to rely on estimations and theoretical calculations Puyat Vinyl (Chemicals, Philippines) The external facilitators found it difficult to obtain sufficient information to establish a baseline because many visits to the plant were required to do this and the plant is located about 200 km outside Metro Manila where the external facilitators were based. Lesson learnt: External facilitators should consider distance to the plant in the planning of the energy assessment because it may not be possible to visit plants located far away often
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Steel Asia (Iron and steel, Philippines) The company has no water metering system or any means to measure the allocation of water used by different production processes. This makes it difficult to establish a water baseline from which to measure water savings after the implementation of water conservation options. Lesson learnt: It is not always possible to establish a baseline for resource and energy consumption Dankotuwa (Ceramics, Sri Lanka) Based on the results of the pre-assessment regarding information availability and potential scope for improvement, the assessment of the three focus areas was done in different level of detail. Flue gas measurements in kilns were done in detail. The electrical system power factor and harmonic levels were also studied in detailed. But the compressed air system was only briefly assessed. Lesson learnt: Not all focus areas need to be assessed in the same level of detail, depending on factors such as information availability and improvement potential National Paper Company (Pulp and paper, Sri Lanka) Company had a fair amount of baseline data. However, the meters of the boiler plant were malfunctioning and therefore monthly cost statements were used to obtain fuel and technical data. For water this was not a solution and the company did not have monitoring instruments to measure the water flow and subsequently calculate water consumption. Lesson learnt: Sometimes invoices and reports on production and costs can be used to obtain baseline data when meters are either absent or broken, although this is not a solution for all resources and waste streams Asian Chemicals Ltd (Chemicals, Thailand) Although the company has a good information system, there is only one electricity meter that measures the total electricity consumption of the plant, and therefore electricity consumption for the focus area could not be determined. Lesson learnt: It often happens that plants only have one meter that measures electricity consumption for the entire plant, which makes it difficult to find out electricity consumption for individual departments or equipments Hanoi Ceramic Ltd (Ceramics, Vietnam) Daily oil consumption data were not available separately for the kiln and vertical drier because one flow meter is used for the two equipments together. To find out the consumption for each equipment separately, the Team asked the Vice Director to stop operation of the kiln for one hour. The oil consumption during this hour was how much the vertical drier uses per hour. This amount was subtracted from the normal oil consumption per hour to obtain the oil consumption for the kiln. These two figures were then used as baseline data for the kiln and vertical drier. Lesson learnt: In certain cases, establishing the fuel consumption for a specific equipment can be made by a short-time shut down of the equipment Other lessons learnt: It is important to use actual or measured performance data for equipment and processes. What often happens is that equipment specifications are used, but as these are often different to the actual performance, this does not make it possible to identify real losses Actual performance data can often be obtained from the Central Control Room of the plant, monitoring records, measurement with monitoring instruments, and interviews with staff and operators If it not possible to obtain actual performance data, alternatives are secondary data from literature, calibration records, and time recordings The accuracy of data should be verified: how it was monitored, calculation methods, conversion factors, assumptions made, equipment calibrations, standard errors of meters, etc. If an energy assessment is carried out over a longer period, then a check and if necessary an update
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of data is important Establish a log of information collected, with the dates, monitoring methods etc. Costs of inputs and outputs should be collected where possible, because management is more interested in how much money can be saved instead of how much energy can be saved (e.g. a certain amount of fuel oil reduction will save more than the equivalent amount of coal reduction because fuel oil is more expensive than coal Financial data may be more available but more difficult to get because often this information is confidential and has to be obtained from the accounts or finance department Most companies that participated in the project do not have an electronic information system in place, and therefore it took more time for to get baseline data Even if baseline data is available, then the reliability should be checked with actual measurements and/or purchasing, production and sales records
Water Raw Material Electricity Fuel oil (1) Cogeneration (2) Increased Production
25% 2.4% 12% 9% 100% 20% Total without cogeneration Total with cogeneration
Yuanping Municipal Chemical Industrial Co Ltd (Chemicals, China) Heat losses for the boiler were observed and upon analysis the Team found that heat was lost in several ways as illustrated below. Although the individual losses could not be quantified, this information was useful to be able to identify causes of these losses and options to reduce the losses. Lesson learnt: Even if quantification of losses is not possible, the identification of the type of losses is already helpful for identifying causes and options at a later stage
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Boiler
Heat loss due to slag emission Q6 Heat loss due to heat dispersion Q5 Heat loss due to incomplete combustion of solid Q4 Heat loss due to incomplete combustion of gas Q3 Heat loss due to flue gas emission Q2
Thai Kraft paper Industry Co. Ltd (Pulp and paper, Thailand) Sludge from the companys wastewater treatment plant is one of the major wastes of this company, and it is an important one because it is expensive to get rid of this waste stream. When options were identified an obvious option was to use sludge as an alternative fuel at the plant. Lesson learnt: Identifying the major waste is also useful because sometimes a waste stream can be reused to improve energy efficiency, for example the reuse of waste paper sludge as alternative fuel Other lessons learnt: For batch production, consider one full batch to establish a material/energy balance. It is also important to include start up and cleaning operations It is not an easy task to develop the perfect material/energy balance. Do the best you can and you will discover that even a preliminary material balance can open up opportunities for energy savings! Establishing a material/energy balance is often easier for a small and closed focus area, such as a cooling tower or fan, rather than a large focus area, such as a compressed air system For chemical processes, the material and energy balance can be calculated from the chemical composition of input and outputs and information about the chemical reaction When it is not possible to establish a full material and energy balance due to the lack of data, try to do this for the most important inputs and outputs
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Lesson learnt: A brainstorm session with as many staff as possible will result in the identification of more causes of observed energy losses Yuanping Municipal Chemical Industrial Co. Ltd (Chemicals, China) This plant was visited by an energy expert and a Cleaner Production expert from the GERIAP project to train the plants Team and the Chinese external facilitators on carrying out an energy assessment. The different perspectives from the two areas of expertise came to light when it was observed that a lot of heat was lost through the exit gas of the synthesis furnace. The energy expert suggested that the waste heat in the exit gas could be reused to preheat the inlet air (combustion air) of the synthesis furnace. The Cleaner Production expert looked at this from a different angle and found out that the coal used for the furnace was of poor quality and that coal was fed into the furnace in sizes ranging from 80 200 mm. He suggested implementing strict quality control measures to regulate coke sizes to a maximum of 40 50mm, which would ensure more efficient and completing combustion and reduce the amount of waste heat in exit gas. Lesson learnt: Cleaner Production and energy experts often can provide useful input from different perspectives. It is therefore recommended to include people in the Team from both backgrounds to maximize the output of the assessment external facilitators The external facilitating organization in the Philippines, ITDI, held an internal training session for its staff to teach them about the importance of determining the causes of losses and how to do this using the Fish Bone Diagram. This greatly improved their ability to work with companies to identify losses and after that generate options to reduce these losses and improve energy efficiency at the plants they work with. Lesson learnt: It is useful for external facilitators to build their in-house capacity to effectively facilitate a case analysis. Other lessons learnt: The benefits of a cause analysis are often not understood and therefore the Team is likely to skip this task. An experiences (external) facilitator can be useful to facilitate the cause analysis, which will contribute tremendously to the identification of good options as part of task 3b To make most efficient use of the Teams time the cause analysis should focus first on the biggest losses identified as part of task 2e All identified causes should be recorded because it may only be possible to address a small number of causes in the short term and the root cause in the medium/long term A brainstorm session is useful, where participants keep asking why, why, why, until they have identified the root cause of energy and material losses Many company staff are certain that there is no scope for improvement in the production processes and equipments and are therefore less open to discuss inefficiencies Active involvement of Team members and other staff from the focus areas is important to identify the real cause of losses The external facilitators of the GERIAP project found the fishbone diagram very useful to find the root causes of material and energy losses
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Anhui Linquan Chemical Industrial Co. Ltd (Chemicals, China) Following the energy assessment and determination of causes of losses, a meeting was organized to brainstorm about possible energy efficiency options. In order to get a wide range of possible options two groups of people were invited: (1) the members of the plants Team who are familiar with the plants production processes and equipment and (2) Domestic and international industry and Cleaner Production experts who can bring in experiences from similar production processes and equipment at other plants. The group as a whole discussed the identified options to decide which options to select for feasibility analysis. Lesson learnt: Involving plant staff as well as external industry and Cleaner Production experts will improve the quality of possible options identified as each group will have a different input Jangxi Yadong Cement Corporation (Cement, China) Power generation using waste heat was a main area for energy savings and to identify options for this, the Team, assisted by Tianjin Cement Industry Design and Research Institute, used the experiences of some national pilot projects on power generation with low temperature waste heat in cement companies as a reference. Lesson learnt: It is worthwhile to find out about the experiences from other Cleaner Production and energy efficiency projects that have been carried out at other companies when identifying possible options Siflon Drugs Ltd (Chemicals, India) Normally, a brainstorming session is held to identify a long list of possible options based on trials and monitoring data collected during the assessment (step 2), and only then the list is screened to decide the options to investigate for technical, economical and environmental feasibility (task 3c). However, at this company the options were so obvious that no brainstorming session was held. One of the obvious options identified was the replacement of a wood fired boiler with a new and more efficiency oil fired boiler. The inefficient wood fired boiler was identified as the root cause (task 3a) to many of the losses of energy observed during the assessment. Therefore, its replacement would eliminate many of the losses found. Lesson learnt: It is important to adjust the process of identification of options to the real life situation. If an option is very obvious, it does not need a brainstorm session to identify it! PT Holcim Indonesia Tbk (Cement, Indonesia) In addition to options that would improve energy efficiency and reduce greenhouse gas emissions and costs directly, the Team also recommended the installation of flow meters. Measured data with the flow meter would allow the Team to identify losses and additional options to improve energy efficiency in the future. Lesson learnt: Remember that the lack of monitoring and measuring equipment can also be an option to recommend to management Asian Chemicals Ltd (Chemicals, Thailand) Top management is very supportive for staff to take their own initiative to improve energy efficiency and environmental performance. This greatly contributed to staff identifying a range of energy efficiency options without the need for much encouragement by the external facilitators, such as the installation of a new boiler and an insulated condensate tank for collecting condensate for reuse as pre-heated feed water. In addition, all the options proposed by the Team were approved by the management for implementation. Lesson learnt: Trust of the top management in staff contributes to staff taking ownership for the identification and implementation of energy efficiency options, which is beneficial to the company Siam White Cement Company Ltd, SWCC (Cement, Thailand) Several other cement companies participating in the project mentioned that they consider SWCC as a best-practice company in their sector. This became obvious when energy losses and options to further
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improve energy efficiency had to be identified, because opportunities were a lot less than for most other companies. To confirm this, an international industry expert was sent to the plant to evaluate the energy saving potential. This expert concluded that the plant is very modern, highly automated, well managed, and has already implemented most of the standard and low cost energy efficiency measures. For this reason, major improvements in energy efficiency could only be achieved through highly technical options that require large investments. As a result, the Team focused on relatively simple options, e.g. installation of capacity banks for improving the power factor, installation of high efficiency fan in Cement Mill, installation of V-Separator in Raw Mill and installation of inverters for controlling air flow instead of dampers, that would still save the company money although they would not significantly reduce the companys total energy costs and GHG emissions. Lesson learnt: For modern and well managed plants that already have exploited the obvious and low cost options to improve energy efficiency, major improvements can often only be achieved through technically complex and high cost options Thai Kraft Paper Industry Co. Ltd. (Pulp and paper, Thailand) The assessment was coordinated by the Energy Department of the company. Despite brainstorming discussions for identifying energy efficiency options with staff from different production departments, only a few options were identified. This is because options relevant to equipment/issues beyond the focus of the Energy Department are not brought into account, due to the lack of communication about the GERIAP project to the other departments. Lesson learnt: It is important for the facilitator to ensure that the top management of the company has informed the entire staff about the participation of the GERIAP project, otherwise such a participation could be undermined Other lessons learnt: People tend to think of the obvious options only. A good way to trigger everyone to think creatively is to reward each idea with a small reward (e.g. a candy, or a point and the person with the highest score wins a prize) during a brainstorm session Company staff should be actively involved in the identification of possible options because they are the ones who will need to implement the options later Company management should not place restrictions upfront on the type of options they are looking for because this will prevent the identification of a wide range of possible options Staff are sometimes worried that when consultants find ways to improve energy efficiency that management will punish them for not doing anything about the energy losses earlier. This is especially the case with simple good housekeeping options and in companies with a hierarchical management structure. External facilitators and consultants should therefore involve staff in the identification of energy losses and options so that staff get credit, not blame, for improvements On the other hand, some companies tend to take options suggested by external facilitators or experts more seriously than those offered by their own staff Generation of possible low cost options will create enthusiasm for further option generation. Consultants, suppliers and representatives from other plants can add value to the brain storm session because they are able to compare the situation with other companies To generate more technical options the Team may need input from external consultants, especially in small companies in developing countries that do not have access to information about the latest technologies A Cleaner Production specialist can assist the Team to think beyond the obvious options Consultants sometimes too focus on obvious and end of pipe options (e.g. recovering heat from a waste energy stream rather than looking for ways to stop the energy loss from happening) Knowledge and experience of the Team members and external facilitator play a vital role in identifying options
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It can be useful to involve a management representative in the screening of options or to ask top management to review the list of screened options before the feasibility analysis is started. This avoids that the Team spends time on investigating options that management would reject anyway Sometimes companies have a particular problem, such as permit requirements, that may be an important reason to select an option for feasibility analysis
NPV =
(1 + i )
j =1
Where, F = increased annual cash flows; I = total investment; i = annual interest rate (%), choosing 6%; j = year, equal to 1 -10; n = life of project (in years), choosing 10 years. NPV = 4.947 X 7.36 17 = 19.41 Because the NPV is positive, the project is profitable Lesson learnt: When an option requires high investment then the Net Present Value should be calculated in addition to the simple payback period to determine financial feasibility of the option Anhui Tian Du Paper Co. Ltd (Pulp and paper, China) Local and regional pollution is becoming a more important issue and the Chinese Governments policies to reduce pollution levels are strengthening with stricter controls. For this reason, the environmental feasibility analysis of options also included the calculation of reductions in SO2, NOx, CO and particulate matter (PM) emissions, in addition to greenhouse gas emissions (CO2). For example, the cogeneration plants implementation would result in the following emission reductions: Pollutant Reduced amount (tons) CO2 15,057 SO2 1.10 NOx 54.03 CO 2.25 PM10 59.44
Jangxi Yadong Cement Corporation (Cement, China) The evaluation of an option to generate power from waste heat required more than just an internal feasibility analysis. The proposal for the project had to be submitted to local authorities for examination and approval before implementation. The company also has to negotiate with local electric utilities on how to supply excess power from this project to the utilities network and how much money the company
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would receive per unit of electricity. The project has received Government approval and an agreement with the utilities companies was reached in 2004 and will be implemented by November 2005. Active Carbon Ltd (Chemicals, India) The company considered the temperature and quality of the steam used commercially sensitive information. For this reason median values were used to determine the economic feasibility of options. Since the median values were about +/- 5 percent from the real values this did not have much effect on the accuracy of the economic feasibility analysis, especially the payback period. Lesson learnt: High quality median values can be used to determine the economic feasibility of options in case the exact figures are confidential Pindo Deli Pulp and paper (Pulp and paper, Indonesia) Paper sludge is a serious problem for this company. The Team and external facilitators held a brainstorming session to evaluate what could be done with this waste stream and the advantages and disadvantages of each possible solution. The results are summarized in the table below: no Option Timeframe to implement
> 2 years
economic
Technical / practical
Environmental
Cost neutral Reduce energy cost Cement plant need ash Reduce land fill
Work with Up to 1 year cement plants for using sludge as kiln fuel.
Use as Landfill
Survey other company who have coal fired boiler within reach Build new > 2 years paper m/c that can recycle the sludge into low grade paper
US$ 5 on site costs US$ 5/ t transport US$/t to cement plant Now but need US$ 100/t new land in cost new land fill 2006 < few months US$ 5/t on site US$ 5/t transport
Pindo # 1 OK (being considered for the new boiler) Pindo # 2 no need for additional boiler 1800 t/month Depends on moisture content High moisture content, need pre drying before use. Pre drying options at cement plant or at Pindo # 2 (Identify & Study) Space Permit, monitoring Reputation Many small users Risk of continuity Could be interim solution or stand by Permit required Enough space at Pindo #1 and 2 Capacity 400 t/month 50 % sludge and 50 % fresh pulp. Can be used in combination with other option (not enough volume to get rid of all sludge).
Permanent solution
Income from low grade paper Reduced land fill and transport costs Cost neutral
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no Option
Timeframe to implement
economic
Technical / practical
Environmental
Identify Continuous opportunity on site to minimize sludge run off into effluent
Depend on option Pindo #2 is a modern plant (but probably so opportunity is bigger at high) Pindo #1 (old plant) benchmarking % sludge / ton production (3.7 % Pindo #2) Can be used in combination with other options Use as compost Already done US$ 10/t No longer have permit in mushroom (stopped since (discontinued) plantations Nov 03 by Can use for cassava Ministry of plantations (i.e. not in food Environment chain) but only in small for health scale & far away plantations reasons) Incinerate Off the shelf incinerators Up to 1 year Need study on/off site & Operation cost may be available. Need permit capture waste Need to dry sludge first heat (e.g. heat (what %) air head dryer or boiler water feed)
Composition of compost is importance (Lead, Pb, is present, and is a major health hazard) Need high combustion other wise emissions are too toxic
PT Semen Padang (Cement, Indonesia) A simple payback period of less then two years is the minimum criteria options had to meet to be accepted by management, so this was used as an important input for ranking feasible options. For example, an option to reduce coal consumption was not financially feasible because it had a payback period of ten years. However, options that were considered to be necessary from an environmental or safety perspective (e.g. to meet regulatory permit requirements) were ranked for implementation in the short term regardless of their payback period Lesson learnt: Any criteria given by management is essential input in the ranking of feasible options Solid Cement Corporation (Cement, Philippines) Sometimes it is difficult to determine the investment costs of more technical options. At this plant this was solved by obtaining: Costs for the purchase of the solenoid valve for the air chokes from the plants purchase department Costs for the high efficiency motors and Varieble Speed Drive (VSDs) from a local supplier of a leading brand of these types of motors. Lesson learnt: The team can contact the purchase department and as well as suppliers in determining the investment costs of some technical options Associated Motor Ways, AMW (Iron and steel, Sri Lanka) The location of and distance between the different departments affected the technical and financial feasibility of some of the options. One striking example is the large distance between the boiler and the burner. Lesson learnt: The layout of the departments can be an important factor in the feasibility analysis Siam White Cement Company Ltd, SWCC (Cement, Thailand) The most interesting option implemented at the company was a V-separator to separate crushed limestone
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of different sizes. What was interesting about this option is that the V-separator was designed, constructed and installed entirely by company staff. This made it possible to make a separator that entirely meets the company requirements, as compared to standard separators that are offered by external suppliers. Lesson learnt: Large companies often have in-house capacity to design equipment needed for new options, whereas smaller companies will more likely have to look for outside suppliers of new equipment Thai Kraft Paper Industry Co. Ltd. (Pulp and paper, Thailand) Energy data were mostly available. However, some other data was more difficult to obtain because the company does not have meters installed or monitoring equipment to measure resources, such as water and compressed air use. Nevertheless, the company claimed that they have their own annual improvement target areas, for which budget and plans have been approved by the top management, long before the companys participation to the GERIAP project. As a result, there is nothing much left for facilitator and consultant to convince the company. Lesson learnt: The problem of lack of monitoring equipment is less importomt compared to the companys willingness to improve their performance Sai Son Cement (Cement, Vietnam) Before the GERIAP project the company was considering installing a variable speed drive (VSD) to control the motor speed of the FD blower but was not certain if this would impact the operation of the vertical kiln. An international expert assisted with the technical feasibility analysis and enabled top management to make an informed decision to approve the option. Lesson learnt: Knowledge and experience of an external consultant can be useful in assessing the feasibility analysis of some technical options that require specific industry and equipment expertise Company X (anonymous) For this fertilizer company, one important aspect of the feasibility analysis was the potential impact on the product quality. In addition to this, top management gave priority to no-cost and low options. Lesson learnt: Effects on product quality and top management preferences are two important factors to consider in the feasibility analysis Other lessons learnt: Use Worksheet 16 for each option investigated because it serves as a checklist and guidance on what information should be collected Write down the calculations made as part of the economic and environmental feasibility analysis, including assumptions made. This makes it easier for someone, including top management, to check your figures It is easier to complete a feasibility analysis if representatives from different departments and backgrounds are involved, covering production, environment, energy, purchasing, finance/ accounting, maintenance, and others as necessary The Team should have direct access to a top management representative during the feasibility analysis, so that top management can give indications on whether to continue or not with investigating high cost and technically complex options based on preliminary results Technical, economic and environmental factors are of different important for different options Participation of the financial staff of the company is important for the financial feasibility because they know the evaluation process for large projects at the company and how financing should be incorporated in the companys overall budgeting process Potential future environmental impacts (such as climate change) and social impacts (such as upcoming safety regulations) should also be considered If options are financially not feasible but generate a lot of greenhouse gas emission reductions, consider what impact Clean Development Mechanism (CDM) funding could have Economic evaluation is the hardest part of the feasibility analysis if the finance department is not cooperative At many companies reliable data are not available which makes it difficult to make a convincing
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case to top management about the feasibility of options It is useful to exchange information with other companies that face similar issues relating to energy efficiency The experience of consultants is an important factor in successfully completing the feasibility analysis of options Information from suppliers can be helpful to investigate the feasibility of options. However, be mindful that suppliers want to sell their products / equipments so they may give too optimistic figures
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Other lessons learnt: Invite top management to take part of the meeting when you rank feasible options for implementation. Their input at the selection process will save you time in the step 4c and gives management a sense of ownership in the process If top management cannot attend a meeting to rank options, they could be consulted about the ranking criteria The economic aspect is for most companies the most important when selecting options for implementation: no/low costs, high savings, low payback period Government regulations (i.e. environmental, energy, safety, etc.) are also an important external factor that should be considered when ranking options Companies may invest if the option is needed to comply with government regulations or permit conditions Criteria to rank options will be different from company to company depending on numerous factors, e.g. availability of investment capital, management policies, projects already planned, etc. Options with large environmental benefits but with less favorable financial benefits were often ranked lower Most companies accept a two to three year payback period for options, provided that the investment costs are not too high
Task 4c. Prepare implementation and monitoring proposal for top management approval
ITC Ltd PSPD (Pulp & paper, India) Obtaining approval from top management was not a problem because the company has a clear procedure for the approval and implementation of options. The most important evaluation criteria are: Investment costs: Options that require an investment of less than US$ 10,000 are approved by the Vice President of the Mill. Projects above US$ 10,000 are reviewed and approved by the Divisional Management Committee at head quarters. In practice, energy efficiency projects of up to US$ 40,000 have been approved without many problems in recent years. Payback period: Options with a pay back period of more than three years have to undergo a more detailed financial evaluation before a decision on its implementation can be made. Impact on production process: If the implementation of options involves a production shut down or interruption, then their implementation is planned at the same time of regular maintenance activities, a planned shutdown or a plant overhaul. Lesson learnt: The process for getting top management approval will be more straightforward if the company has clear procedures for the approval and implementation of options Indocement (Cement, Indonesia) Options that require more than US$ 10,000 investment costs must be authorized by the Singapore office, which adds to the time needed before the implementation of options can start. Lesson learnt: Find out early in the process what the approval process is for options and investments in options to avoid delays in obtaining approval for the implementation and monitoring proposal PT Holcim Indonesia Tbk (Cement, Indonesia) Although top management approved all recommended options, several options were not implemented in that same year because there were several other projects planned that would improve the overall company performance and production output, which were given priority. Lesson learnt: If and when options are implemented also depends on other projects the company has planned Therefore the Team should find out about these when writing the proposal to the top management
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Lanka Tiles Ltd (Ceramics, Sri Lanka) Changes were made to the production line by adding a tile chamfering line. As a result the implementation plan for options had to be slightly adjusted. Lesson learnt: When preparing the implementation and monitoring proposal the Team should consider any recent or upcoming changes in the production process Medigloves Ltd (Chemicals, Thailand) This company is relatively small and manufacturing peaks are dependent on the orders of clients. While energy efficiency is a priority of the plant, the timing of implementation of new options needs to coincide with downtime in manufacturing. During the project a new type of glove was launched and a client placed a major order. This had to be taken into consideration for the planning of the implementation of options. Lesson learnt: Keep in mind that the customer is king! Sometimes the implementation of options will need to be planned around the launch of new products or major orders by clients Thai Kraft Paper Industry Co. Ltd. (Pulp & paper, Thailand) Although top management was interested in many identified options at first, but when approval for implementation was requested, a lot of options were rejected or suspended for consideration. The reasons given were (1) lack of financial incentive to invest in these options, (2) lack of staff resources to implement options because they were needed in production, and (3) lack of data to show the potential energy and financial savings. Lesson learnt: The Team can recommend options for implementation but in the end it is top management who decide whether options will be implemented or not Viet Tri Pulp and Paper (Pulp & paper, Vietnam) Subsidies for investments in (technical) options seemed to have a strong psychological effect on the company in addition to improving the financial feasibility of the options. Often the measures would have been profitable anyway, but the subsidy is perceived by management as a signal that the options are worth investing in, because an outsider is willing to invest in them. Lesson learnt: Subsidies can give a psychological push to management to approve the implementation of options because an outsider signals that the options are worth investing in Sai Son Cement (Cement, Vietnam) Although the company had experience with Cleaner Production it had less experience with energy assessments and was therefore skeptical about the potential of energy efficiency options, especially relating to electricity consumption. The external facilitators put a lot of effort in providing descriptions and illustrations of energy consumption by different production processes and equipments, and assisted with preparing detailed calculations of investments and savings for the proposed options. The plants Team now understood the technical background of energy use and options, which resulted in them feeling confident about recommending the options to top management. Top management was very satisfied with the report and approved the implementation of options without hesitation. Lesson learnt: It is important for external facilitators to make sure that the plants Team thoroughly understands the technical background of energy use and options, because only then they will take ownership of the options and feel confident to recommend them to top management and implement them Ha Bac Fertilizer (Chemicals, Vietnam) The implementation plan assumed that options would be mostly implemented using internal capacity. Several options could not be implemented immediately, because of the continuous production 24 hours a day, 7 days a week. The Team Leader set a time frame for implementation of options, which coincided with an annual maintenance plan. To prepare for a successful implementation, meetings were held between staff from the heat shop and company technicians to discuss the technical aspects of implementing the options.
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Lesson learnt: It is useful to set the implementation plan to coincide with any scheduled maintenance plans at the plant to prepare the shop floor staff and technicians accordingly Several companies Top management of several companies were interested in technical and complicated options (such as the installation of a new boiler), instead of simple good housekeeping options (such as improving the efficiency of the existing boiler through simple measures). As a result, the identification of possible options (task 3b), screening of options (task 3c) and feasibility analysis (task 4a) often favored the technical and more complicated options. However, when management had to approve the implementation of options, many of these options were rejected because the investment costs and payback periods were considered to be too high. Lesson learnt: It is very important to agree on the financial criteria (investment costs, payback period) during the first meeting with the top management (task 1a). This way the Team avoids wasting a lot of time on options that look good but will not get implemented in the end Other lessons learnt: Present your implementation and monitoring plan to top management to save time getting their approval Think in advance about what questions top management might ask about the proposed options If financing is a barrier to implementing options, try to think of possible solutions and include these in your proposal. For example, find out if an ESCO (Energy/Environmental Service Company) is interested in assisting with financing the option Many companies do not properly investigate the possibility of obtaining external financing. This is especially the case for SMEs To obtain external financing for options in the implementation plan, companies must work out the feasibility analysis of options in sufficient detail The plan should also describe how to implement the option and how to monitor results. This is often left out of the plan, which increases the risk that options will not be implemented even if their implementation was approved The implementation plan should take into account the companys existing programs, such as maintenance and production schedules Take the companys financial year and budgeting cycle into account when planning implementation of options The implementation of options that are not affecting the production processes can be given priority in the time planning For options that impact the production process, the Team should reach a consensus with the production department about who will implement options and when, before finalizing the proposal Make time schedules for implementing options practical and realistic. A disadvantage of demonstration projects that are managed by external organizations is that the timetable for implementing options can be different than what suits a company best Top management often preferred to implement options during plant shut downs and maintenance so that staff time is used most efficiently Include how much money and staff numbers and time are needed for the implementation and monitoring of options. If this is approved as part of the monitoring and implementation plan then this will avoid delays in implementing and monitoring of options
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PT Holcim Indonesia Tbk (Cement, Indonesia) One of the main options identified was to conduct a compressed air leak survey and repair leaks. However, there was no leak detection equipment available at the plant and limited in-house knowledge on how to detect and quantify leaks in any other ways. The external facilitators made use of the anemometer provided through the GERIAP project to measure leaks and an external consultant trained company staff on how to identify leaks using the soapy method and quantify leaks using standard tables. Lesson learnt: Attention also needs to be given to how the option should be implemented Puyat Vinyl (Chemicals, Philippines) The external facilitator found out that some of the approved options were not implemented at this company. The reason appeared to be miscommunication: the boiler operator informed the external facilitator that the plant supervisor did not leave instructions on how to implement options at the boiler and to monitor results. Lesson learnt: It is essential that the how to implement options is correctly communicated down to the operator level. Otherwise, options may not be implemented as planned! Solid Cement Corporation (Cement, Philippines) Review, implementation and monitoring of some options were hampered by a restraining order from the Philippine Department of Trade and Industry (DTI) regarding the quality of one of the plants cement brands. This order was lifted after 30 days causing delays in the project. Lesson learnt: Sometimes there are outside factors that can cause delays in the implementation of options, which the company or external facilitator cannot do anything about Solid Cement Corporation (Cement, Philippines) The external facilitator had several monitoring equipments but lacked equipment for high temperature airflow measurements in order to determine fan and motor performance. For monitoring of some parameters it was necessary to purchase data loggers to allow continuous measurements (instead of only one off measurements) at the plant. Lesson learnt: A wide range of monitoring equipment and data loggers may be needed for measuring specific parameters and making continuous measurements Steel Asia (Iron and steel, Philippines) Implementation: The company modified some of the options recommended for better monitoring of operation such as use of steel curtain, which have longer life, and use of water metering system with more accurate results. Lesson learnt: If external facilitators are involved it is important that the company checks if any modifications of options are needed, as they know the plant better than anyone Monitoring: The energy savings and greenhouse gas emission reduction resulting from the insulation of the furnace was calculated based on measurement conducted on surface wall temperature, if these savings would have been calculated based on their production data, the actual consumption of bunker fuel wouold have increased due to a change in the billet feed. Lesson learnt: where possible, use actual measurements to monitor energy reductions to avoid the influence of changes in production output and changes in production processes on monitored results Holcim Bulacan (Cement, Philippines) During the monitoring phase different aspects were monitored: (1) results of the implemented option in the kiln (2) the evaluation of the feasibility of variable speed drives installation for the clinker cooler fans (3) general monitoring of energy parameters which resulted in the identification of new options. Lesson learnt: In practice, it is necessary to plan several monitoring sessions, because different options will go through the identification, evaluation and implementation stages at a different pace
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United Pulp and Paper Company, UPPC (Pulp and paper, Philippines) During the monitoring phase of the project, it was found that most of the recommended options had not been implemented. The reason was that the company decided to build a new cogeneration facility that would replace the existing boilers to which the recommended options applied. Lesson learnt: Sometimes a new large scale project will cover the focus areas, applicable or suggested earlier for older Plants Dankotuwa (Ceramics, Sri Lanka) To plan for the monitoring of results it was necessary to consider the different type of options as each needs a specific way of monitoring and amount of time and money. The different options were: Total elimination of sagers, by changing the tunnel kiln (gloss kiln) into a fast firing kiln Power factor improvement and harmonic suppression by installing an electro flow system Reduction of scrap clay return from pug rolls Lesson learnt: Different options require different ways of monitoring, and allocation of time and resources G-Steel (Iron and steel, Thailand) The company implemented several options, but for the external facilitators it was difficult to obtain the results from the Plants Team. A meeting with the CEO of the company was organized to explain the need to obtain results to be able to write case studies for implemented options. With the CEOs support, the Plants Team had the permission to spend time to monitor and report results. Lesson learnt: Top management support is important not only at the start but throughout the assessment Medigloves Ltd (Chemicals, Thailand) Several of the recommended options that required behavioral changes of staff would first be tested to see if the option would work in practice and achieve the desired results. Only if the tests were positive the change would be incorporated in operating procedures and instructions to make sure that the new practices would also continue when staff would rotate. By doing this it was ensured that new procedures would be successful and continue to be followed in the future. Lesson learnt: Testing options that require behavioral changes before including them in operating procedures ensures the procedure will be effective. Incorporating behavioral changes in procedures ensures that the change will also be adopted by new employees Viet Tri Pulp and Paper (Pulp and paper, Vietnam) Top management gave its staff full support by fully decentralizing the planning and realization of option implementation and monitoring. This gave the Team the necessary freedom to try new paths with the testing and implementation of options, which sometimes resulted in failed options but many times in successful options too. Lesson learnt: If management gives staff the freedom to try implementating different options, it is more likely to result in unexpected successes! Viet Tri Pulp and Paper (Pulp and paper, Vietnam) For some implemented options, mostly good housekeeping options, it was not possible to measure or calculate savings, although it is clear that these options contribute to reduced energy and material consumption. Specific consumption figures could help with finding out if after the implementation of such options there is still scope for further improvement, which will help value good housekeeping options. Lesson learnt: Specific consumption figures (i.e. per unit of product) could help determine if there is further scope for improvement, where it is not possible to determine the savings of individual options Several companies For several companies it was difficult to measure or calculate the reductions in energy, greenhouse gas emissions and costs for some of the options because no good baseline was established during the assessment (step 2d). This makes it more difficult to convince management to continue with energy
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efficiency projects because the Team cannot prove how much money was saved. A good baseline is therefore crucial for a continuous focus on energy efficiency! Lesson learnt: A good baseline data is critical in order to convince top management about the cost benefits of the implemented energy efficiency options Company X (anonymous) For the implemented options it was difficult to obtain quantitative results because the Environmental Manager depended on the input from different departments including the Operational, Maintenance and Purchasing, and especially the Electrical Department. Staff at these departments had other work priorities and therefore results for several options could not be obtained. Lesson learnt: Determine in advance whose assistance is needed to monitor results from implemented options and obtain their commitment to collect the required information when needed Other lessons learnt It was useful to start with options that were easy to implement, required low investment and had quick payback periods because it motivated the Team and company staff Make sure to use the same calibrated instruments for monitoring that were used for measuring the initial baseline, otherwise results before and after implementation are not comparable The difference between the baseline situation and the situation after implementation should be measured with proper measuring equipments so that top management can be informed about real savings rather than estimate savings The Team Leader should make sure that there is good communication and cooperation between the Team members, external facilitators and work floor staff during the option implementation and monitoring phase Sometimes it is hard for external facilitators to get data after implementing options because companies do not want to share these Some companies need help from external organizations with monitoring results due to lack of monitoring equipment a the company The quality and level of detail of the implementation and monitoring plan has a major influence on the implementation and monitoring activities A chart that shows how the implementation of options is progressing is useful to facilitate monitoring activities and to keep the Team on track Convincing top management of the long term benefits of energy efficiency will make it easier to obtain approval to purchase monitoring equipments It is preferable to establish a separate coordinator for monitoring the results of implemented options to make sure that this task gets completed It is not enough to provide companies with monitoring equipment only, there also has to be a culture that values equipment maintenance Staff rotations in the Team and on the work floor can seriously delay the implementation of options. Therefore it can be useful to appoint two people (instead of one) to coordinate the implementation of each option The more the implementation and monitoring of options depends on more people and departments, the higher the risk for delays External facilitators/experts play a crucial role in pushing for completion of implementation and monitoring Active involvement of staff in the planning and implementation of options is needed when options require behavioral changes As the Team implements more options and achieves positive results, the entire organization will become more enthusiastic, willing to rethink their operations and be more open to change
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Jangxi Yadong Cement Corporation (Cement, China) Top management commitment to environment and energy efficiency is high and energy is a fixed item on the agenda of weekly management meetings. An interesting aspect of energy management at the company is the consideration of environmental and energy performance for material and equipment procurement. For example, every batch of purchased coal must be tested and obtain approval from the Quality Control Unit before the Storage and Warehouse Unit accepts it. Another example is fans and motors, which must meet minimum energy efficiency standards with a two-years warranty and the Procurement Division must get approval from the Electricity and Instrument Unit before the procurement. Lesson learnt: The inclusion of energy efficiency criteria in procurement procedures is important to ensure continuous improvements in energy efficiency Shijiazhuang Iron and Steel Company Ltd (Iron and steel, China) The company will continue with Cleaner Production and energy efficiency amongst others through its energy management system, by establishing energy consumption indicators for each production department, and by giving rewards and punishments to staff for energy saving and energy wasting activities. It is interesting to note that the company has a Safety and Cleaner Production department, to show to staff that Cleaner Production is a priority for the company. Lesson learnt: By including the Cleaner Production and/or Energy Efficiency in the name of a department, staff will be more aware that the company considers this a priority Yuanping Municipal Chemical Industrial Co. Ltd (Chemicals, China) The company has an ISO 9000 certified quality management system and an ISO 14001 certified environmental management system and top management places importance on this because as an exporting company, clients often require ISO certified management systems. However, ISO certification does not always equal to good environmental performance. The company will therefore focus on improving its actual environmental performance rather than its procedures and systems, which are already in place. In addition, emphasis will be placed on linking environmental with health and safety performance because as a producer of oxalic acid, these two are closely related at this plant. Lesson learnt: In addition to striving to have ISO certified management systems companies must also pay attention to improving actual environmental performance to ensure that real improvements in energy and resource efficiency are realized Vishakapatnam Steel Ltd (Iron and steel, India) This company is very progressive with energy management and with the following activities (several of which already existed before GERIAP) will ensure that energy efficiency improvements will continue: A quality, environment and energy policy A target of a 1 percent reduction in specific energy consumption per year until 2010 Identification and implementation of 22 more options in 2004, without the assistance of the external facilitators. Creation of small teams in each department, with the role to identify and implement energy efficiency options, coordinated by a dedicated Energy Manager Lesson learnt: Continuous improvement is ensured if energy management covers several aspects, such as a policy, Energy Manager, targets and work groups Siflon Drugs Ltd (Chemicals, India) By conducting the energy efficiency assessment, the company realized the amount of benefits it could achieve by implementing energy efficiency options. The company is planning to continue with this methodology by adopting following steps: Include an energy strategy in their expansion programme and also conduct a new assessment after expanding the capacity of the plant Try to optimize the chemical process to increase the yield Explore the feasibility of implementing a cogeneration system for its steam and electricity demand.
Energy Efficiency Guide for Industry in Asia
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Lesson learnt: A successful first assessment is a good starting point for continuous adaptation of the energy efficiency methodology at the company ITC Ltd PSPD (Pulp and paper, India) The company has a target of one percent reduction in specific energy consumption per year and is also planning to install the necessary software for online analysis of data including: identification of fault, raise alarms if something is wrong, quantity costs and savings, provide trend analysis of resource consumption etc. This system is also designed to set annual targets for material and energy consumption in each of the departments. Lesson learnt: The installation of a software program can be a good way for the company to keep better track of its energy performance Coromandel Cements Ltd (Cement, India) The company has continued with energy efficiency and Cleaner Production after the first round of the Methodology and without the help of the external facilitators. After the first assessment together with the external facilitators, the Team had identified about 18 options. Since then the Team independently identified and implemented 26 new options! The Team also re-evaluated and implemented some of the options that were rejected by top management during the first round due to financial hurdles. The main reason that this happened was the very high motivation of staff and trust of top management in its staff, even though the company has only limited formal systems for energy management. Lesson learnt: Staff motivation and trust from the top management in staff are important factors in ensuring continuous improvement of energy efficiency Active Carbon Ltd (Chemicals, India) The company is quite enthusiastic about the results achieved and top management wants to sustain the Teams efforts. During 2004, the company initiated the following measures: Regular monitoring of various energy inputs to different sub-processes in the plant (DG House, Drier Section, Kiln Section, and plant lighting). Optimization of production to maximize the yield in the kiln, thus reducing the furnace oil consumption and raw feed into the kiln. The company is also planning to establish an environmental management system in accordance with the ISO 14001 standard and include greenhouse gas emission reduction targets at company level. The Methodology will be used to achieve the greenhouse gas and other environmental targets set under the environmental management system. Lesson learnt: The establishment of a certified environmental management system is a good recommendation for a more systematic approach to manage energy at the company Indocement (Cement, Indonesia) This company is at the forefront of reducing GHG emissions and because it is such a large plant in a developing country, it has been looking to participate in CDM (clean development mechanism) projects. Possible projects eligible for CDM have been identified and developed. The company is now in negotiation with the World Bank and several industrialized countries, who are potential buyers of emission reduction credits (ERUs), to agree on the CO2 baseline and reductions to be achieved through the proposed projects. Lesson learnt: The clean development mechanism (CDM) under the Kyoto Protocol for climate change can be an important driver for future GHG emission reductions through energy efficiency improvements for large companies in developing countries Indocement (Cement, Indonesia) To ensure that energy efficiency and GHG reductions are sustained after the GERIAP project, top management added two new parameters in the Management Control System in January 2005, which will appear in monthly reports to management: AFR (Alternative Fuel Ratio), which measures the percentage of alternative fuels (such as waste
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tyres) in each plant at the company Clinker to Cement Ratio, which measures the percentage of clinker in cement produced, with the aim to replace clinker with alternative additives as this will reduce the costs of producing cement and GHG emissions (as burning of limestone releases CO2) Lesson learnt: By including energy and GHG related parameters in monthly reports to top management, more pro-active management of energy and GHG emissions is possible Pindo Deli Pulp and paper (Pulp and paper, Indonesia) Top management takes energy efficiency seriously because it wants the company to remain competitive. To achieve this, they established a target to reduce the monthly energy cost from US$ 5.5 million to US$ 4 million per month, which is combined with a plan to identify and implement a range of energy saving measures. Lesson learnt: Setting targets for energy consumption and/or cost reduction gives clarity to management and staff where the company wants to go. This will allow staff to be more focused on improving energy efficiency and management on measuring progress against targets PT Krakatau (Iron and steel, Indonesia) The company considers energy efficiency as one of the components in its vision To Be A World-Class Steel Company. Lesson learnt: Energy efficiency often fits in with a broader company vision of achieving excellence PT Holcim Indonesia Tbk (Cement, Indonesia) The assessment focused on one production line only. Several options can be applied to other production lines, as they are very similar and do not require a lot of time because success was already proven for the first production line. Lessons learnt: Big and fast improvements can be made in large plants by repeating the options implemented in one production line at other production lines PT Holcim Indonesia Tbk (Cement, Indonesia) The company established targets for increasing profits by improving various aspects of the production process, including energy efficiency. All staff have been given a guidance book that explains the targets and the programme framework to achieve these. Lesson learnt: Energy efficiency improvements can also be incorporated in programmes that aim to improve the overall production output and profits, which will increase the chance that energy conservation is continued PT Semen Padang (Cement, Indonesia) The company did a lot of work in the past to improve energy efficiency, such as optimization of the kiln and cement mill in the Indarung II plant, replacing the airlift by a mechanical conveyor in the Indarung III plant, and upgrading the cement mill in the Indarung III plant. This indicates that top managements commitment to continued energy efficiency improvement is real. One concrete measure that has been taken since the GERIAP project is the formalization of the Team and specifying its roles and responsibilities: monitoring energy consumption per unit of project to identify ways to improve energy efficiency, meeting periodically to discuss technically problems at the four plants, and to take action to solve identified problem in relation to energy and environment. Lesson learnt: Past energy conservation projects are a good indicator to know if the company is serious about continuing with energy efficiency improvements in the future Puyat Vinyl (Chemicals, Philippines) Since the GERIAP project the company is developing its vision to be energy-efficient and environmentfriendly. Now that the company is familiar with the energy assessment capability of the external facilitators, top management continuously requests assistance from them, especially with measuring electrical parameters of some equipment and the use of alternative fuel for their boilers.
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Lesson learnt: External facilitators can also play a role in assisting companies to improve energy efficiency in the long term, for example by assisting with measurement Solid Cement Corporation (Cement, Philippines) Since the GERIAP project the company has moved on to other focus areas, lighting equipment and air compressors, to assess energy efficiency and find ways to improve it. Lesson learnt: One way of ensuring continuous improvement is to go through the methodology again but for different focus areas Steel Asia (Iron and steel, Philippines) The company will continue with energy efficiency using previously started initiatives: A Productivity Improvement Program aimed at saving fuel and reducing costs by plant staff who are given cash incentives for good ideas The Energy Management Committee, which will oversee the continuation of energy efficiency The Integrated Management System Certification, which will ensure that energy efficiency is fully integrated into the environmental management system Lesson learnt: It is not always necessary to start new initiatives to ensure continuous energy efficiency improvement Holcim Bulacan (Cement, Philippines) The company will continue with energy efficiency as part of its Manufacturing Performance Review (MPR) that is carried out across Holcims plants worldwide. The MPR aims to: Reduce variable costs such as thermal and electrical energy, optimize fuel mix and AFR usage, purchased materials, clinker substitution by mineral components and wear parts Reduce fixed costs consisting of maintenance materials, labor-own plus sub-contracted and third party services Review and prioritize investments for the next two years Maximize utilization of the plants production capacity by improving the overall equipment efficiency and optimize products clinker factor. Lesson learnt: Continuous energy efficiency improvement can be part of efforts to improve the overall performance of a plant United Pulp and Paper Company, UPPC (Pulp and paper, Philippines) The company established savings targets for water, steam, chemicals and other materials for all sections of the company. In order to meet these targets, several departments have initiated new energy and resource efficiency projects since the GERIAP project. Lesson learnt: Target setting by top management can be an effective incentive for departments to continue to look for energy efficiency opportunities Associated Motor Ways, AMW (Iron and steel, Sri Lanka) The company has taken several initiatives to ensure energy efficiency improvements will continue. Some important ones are: Appointment of a Project and Development Engineer to focus on energy management Increased communication to factory staff about energy efficiency options and assessments Participation of top management in meetings on Cleaner Production and energy efficiency organized by SMED and NCPC in Sri Lanka to show their true commitment Agreement to be a demonstration plant as part of a 10-day training programme on Cleaner Production and energy efficiency CHICO (Iron and steel, Sri Lanka) At this company the enthusiasm of the Team was remarkable and contributed a lot to achieve higher energy efficiency levels. However, due to the lack of a formal program to motivate staff to come up with new ideas, the overall process was slowed down. In addition, the lack of a government policy framework
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at national level on energy, the company does not receive external pressure from the government to improve energy efficiency. Lesson learnt: Motivation programs for staff as well as external pressure by government are two important factors for the company to continue to improve their energy efficiency Holcim Lanka Cement (Cement, Sri Lanka) At the start of the project Holcim Lanka was still developing its environmental management system, but this has since been certified to ISO 14001. This will assist in improving energy efficiency on a continuous basis. In addition, energy efficiency will continue as part of Manufacturing Performance Review (MPR) that is carried out across Holcims plants worldwide (see Holcim Bulacan). Lesson learnt: an environmental management system can assist in cementing energy efficiency in daily company business processes Lanka Tiles Ltd (Ceramics, Sri Lanka) The results from going through the methodology steps and from the implemented options, as part of the GERIAP project, convinced management to systematically look at improving energy efficiency in the future. Lesson learnt: Demonstration projects can lead to a commitment from top management to continue with Cleaner Production and energy efficiency National Paper Company (Pulp and paper, Sri Lanka) The company does not have an environmental or energy management system in place, which contributed to a relatively low awareness of energy efficiency and Cleaner Production at the start of the GERIAP project. It is interesting to note that through the GERIAP project, management and staff at the company has slowly but gradually begun to realize the importance and potential of energy efficiency. The company will continue with energy efficiency in the following ways: The companys departments have been given permission to continue implementing no and low cost options. In 2004 operators and factory supervisors attended a comprehensive in-house training course, which was given by a GERIAP consultant and the Sri Lanka external facilitators from SMED in Tamil, which is widely spoken in the area where the company is located. The course focused on the 6-step methodology to improve energy efficiency based on Cleaner Production. Participants were split into three groups and each group was given assignments on Cleaner Production and energy efficiency. Some assignments on CP/EE were given to three groups. When the consultant returned to the plant several months later, the workers union officer lead one of the groups and expressed his satisfaction of the training course and explained how it had resulted in the implementation of further options. In anticipation of private capital to be invested in the company through the Governments Public Enterprises Reforms Committee (PERC) initiative, which will make it easier to get the investment costs for some medium and high options, top management is investigating the possibility of switching to paddy husk as fuel for the boiler. Asian Chemicals Ltd (Chemicals, Thailand) Top management was satisfied with the results of implemented options, in particular reduction in energy costs, GHG emissions and most importantly an increase in production output because production processes were operating more efficiently. These successes meant that the company is motivated to keep improving energy efficiency as part of its environmental management system. Lesson learnt: If implementation of options is successful then a company is more motivated to continue with energy efficiency in the future G-Steel (Iron and steel, Thailand) The company implemented a staff motivation programme to increase the output and reduce electricity consumption in the electric arc furnace (EAF), as illustrated in the following table. The monthly costs
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savings are shared among employees, who either directly or indirectly contributed to the savings, as a one off payment, which will be included in employees monthly salary. As a result, electricity consumption has already reduced significantly. Lesson learnt: Staff motivation schemes with financial rewards are effective tools to ensure continuous energy efficiency improvements Electricity Incentive Scheme (based on 100,000 coil ton per month): electricity Consumption per Liquid Steel ton (kWh/ton liq) 381 410 kWh 350 380 kWh Yield Incentive Scheme: Process Yield (%) Incentive Scheme percentage of improvement yield cost saving (as of yield 90.7%) 0.27 % 2.53 % 4.75 % Expected monthly cost saving (US $) 135,000 1,265,000 2,375,000 Incentive Scheme percentage of electricity cost saving (as of 400 kWh/liquid ton) 2.5 % 9 % Expected monthly cost saving (US $) 66,000 237,600
To further reduce electricity consumption at the EAF, G-Steel cooperates with the Iron and Steel making Institute of Thailand (ISIT) to find technical solutions for materials and energy conservation. This cooperation could further reduce the electricity consumption of EAF by 15 to 20 kWhs per ton (liquid steel). In addition, G-Steels Energy Management System Committee has started a detailed electricity study for the entire plant with the aim to reduce the overall electricity consumption by 20 kWh/ coil ton. Medigloves Ltd (Chemicals, Thailand) The market for medical gloves is very competitive, especially with the growth of manufacturers of inexpensive gloves in China. Medigloves therefore has to do everything it can to remain competitive, which it tries in several ways such as improving product quality, developing new products, targeting new markets and reducing production costs so that the sales prices for gloves can stay low. Energy efficiency is one way of reducing production costs and for this reason the company will continue to investigate ways to improve energy efficiency. The staff at Medigloves know that their jobs depend on whether the company can maintain its position in the gloves market and therefore are motivated to help top management in every way they can. Lesson learnt: Energy efficiency is one way of reducing production costs and thereby can play an important role in ensuring the company remains competitive Viet Tri Pulp and Paper (Pulp and paper, Vietnam) The company has a lot of trust in the Vietnam Cleaner Production Centre (VNCPC) following excellent outcomes from a 1999 Cleaner Production project. Because of this the company is committed to continue with improving energy efficiency on its own. Lesson learnt 1: The external facilitator can play an important role in getting the company to commit to continue with energy efficiency
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Lesson learnt 2: The success of CP project has been found to be important for the company to further improve energy efficiency Viet Tri Pulp and Paper (Pulp and paper, Vietnam) The top management of this company has become more aware of the need to improve environmental performance and is more willing to market their efforts in energy efficiency to the outside world and improve their public image because of the growing public debate on energy and environmental issues. Lesson learnt: Public opinion and debate can have a positive influence on raising awareness of top management of companies about the need to continue to improve energy efficiency Sai Son Cement (Cement, Vietnam) The company has an ISO 14001 certified environmental management system that should ensure continuation with energy efficiency. The company has allocated energy responsibilities, but it is important that this comes together with an energy-minded company culture, top management support, increased communication about energy consumption, rewards for good suggestions by staff, and sufficient resources. Otherwise there is the risk that only superficial changes will be made without much real action and impact. During the project it was found that staff participated well, but that more involvement of relevant staff members is needed in the planning and implementation of energy efficiency measures when it concerns behavioral changes (e.g. energy management, good housekeeping) because only then internal resistance to energy efficiency is overcome. Lesson learnt: Formal changes to energy management must be accompanied with changes in company culture and involvement of staff on the work floor to ensure that they are really supporting improving energy efficiency. Top management support is crucial to achieve this Ha Bac Fertilizer (Chemicals, Vietnam) The company is now considering implementing an environmental management system and having it certified to the ISO 14001 standards. The Teams knowledge on how the company deals with issues, including energy issues, its work on energy efficiency options and efforts to inform management about new ideas to improve energy efficiency, were essential to top managements willingness to continue with this. Lesson learnt: Creativeness of staff in dealing with energy issues is important to convince management to continue with energy efficiency in the future Hanoi Ceramic Ltd (Ceramics, Vietnam) To sustain energy efficiency improvements, measures have been taken by top management and by the staff. Top management has issued new rules on material and energy uses. Middle management and production staff have taken their own initiative to identify additional energy efficiency options as a result of increased awareness of energy efficiency through the GERIAP project and the perception that top management is more committed. Lesson learnt: Measures at top management and staff level are both needed to ensure continuation of energy efficiency. Active involvement of top management and relevant staff members in planning and implementation options is important to improve energy efficiency Company X (anonymous) Although several options were implemented successfully at this company, top management decided not to continue with energy efficiency in the near future. The reason is that a new plant is being constructed, which puts a lot of pressure on the time and resources available. In other words, energy efficiency is not considered un-important, but the new plant is given a higher priority. This illustrates how important it is to integrate energy efficiency into all business processes. Lesson learnt 1: Sometimes big projects such as plant expansions can be a barrier for continued energy efficiency because these projects require a lot of staff time which means there is no room for allocating staff to other areas Lesson learnt 2: It is essential to integrate energy efficiency into all business processes in order to
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ensure that it becomes a natural part of day-to-day company management and not seenasa separate thing Other lessons learnt Try to write a proposal for new energy assessments as soon as possible so that momentum is not lost. Ensure to include the main points agreed at the evaluation meeting with top management (task 5b) In order to integrate energy into other company activities, highlight in the proposal how a second round of the energy efficiency methodology can be carried out as part of other assessments or audit such as environmental, quality, health & safety audits Continuation of energy assessment boosts the morale of workers and solidifies the support of top management to take energy efficiency seriously as part of day-to-day business practices Continuation of implementation and monitoring activities is crucial to facilitate future energy assessments Availability of funding mechanisms for future projects will enhance continuous improvement Top management of one company was so impressed by the successful outcomes of implemented options that they started a contest for staff to come up with the best energy and resource efficiency options, to ensure that more savings would be made in the future Staff reward schemes will encourage them to identify more options. An example is to allocate a percentage of the profit from implemented energy efficiency options to fund energy efficiency training programs to staff. This also makes sense for the company because investing in staffs capacity can bring even more savings in the future! Public recognition of and handing out certificates to departments and individuals who contribute to improved energy efficiency will increase motivation of staff to continue finding new ways to improve Behavioral changes that proved successful should be incorporated in the companys day-to-day work instructions and procedures to ensure continuation An established relationship with consultants was an important factor for some companies to continue with energy efficiency activities Inclusion of energy and resource efficiency in corporate plans and budgets is important to ensure continuous improvement Staff training and awareness programs on energy and resource efficiency should be provided on a regular basis to keep staff focused on improvements A dedicated person for coordinating continuous improvement is important, for example an Energy or Environmental Manager Monitoring and communicating of energy costs per unit of production process provides a strong incentive for the company to continue with energy efficiency activities
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Worksheet name Reasons for energy efficiency Energy Management Matrix Factors of influence on improving energy efficiency Team members and roles General company details General production flow chart Production, energy and resource data - annual - 12 months Inventory of major equipment Information available at the company Selection of focus areas Energy Assessment Proposal to top management List of training modules Process flow chart for focus areas Walkthrough observations Process flow chart for focus areas Process flow chart for focus areas Causes, options and screening Causes, options and screening Causes, options and screening Options analysis, implementation and monitoring Options analysis, implementation and monitoring Ranking of options Implementation and monitoring proposal to top management
Task 1a 1a 1a 1b 1c 1c 1c 1c 1c 1d 1e 2a 2b 2c 2d 2e 3a 3b 3c 4a 4b 4c 4c
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Possible reasons Reduce energy costs Reduce production costs Reduce energy consumption Reduce greenhouse gas emissions Reduce other emissions (e.g. SOx, Nox) Improve overall environmental performance Improve product quality Improve reputation / recognition Improve staff health and safety Improve compliance with regulations Improve compliance with corporate environmental targets Prepare for Kyoto Protocol / Clean Development Mechanism opportunities Improve staff pride / morale Improve relations with customers Improve energy management at a specific area of the company (e.g. furnace): - - - Other: Other: Other: Other:
Yes / No
Comments
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LEVEL
ORGANIZATION
Formal energy / environmental policy and management system, action plan and regular review with commitment of senior management or part of corporate strategy. Energy / environmental committee used as main channel together with direct contact with major users
Energy / environmental management fully integrated into management structure. Clear delegation of responsibility for energy use.
Formal energy / environmental policy, but no formal management system, and with no active commitment from top management Contact with major users through ad-hoc committee chaired by senior departmental manager Informal contacts between engineer and a few users
Energy / environmental manager accountable to energy committee, chaired by a member of the management board
Unadopted / informal energy / environmental policy set by energy / environmental manager or senior departmental manager
Energy / environmental manager in post, reporting to ad-hoc committee but line management and authority are unclear
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Energy / environmental management the part-time responsibility of someone with only limited influence or authority
No explicit policy
No energy / environmental manager or any formal delegation of responsibility for env / energy use.
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Modified from BRESCU (Building Research Energy Conservation Support Unit) Energy Management Matrix, and the Energy Management Matrix developed by the Sustainable Energy Authority of Victoria, Australia, www.seav.vic.gov.au
Instructions:
The Energy Management Matrix (Matrix) can give an insight into the way a company manages its energy. The Matrix includes six energy management components: Policy & systems; Organization; Motivation, Information systems; Training & Awareness; Investment. For each component the company will be at level 0 (lowest), 1, 2, 3 or 4 (highest level). At the meeting with top management of a company, ask three questions for each component (see below). Based on their answers put a bullet in the right level, and draw a line between the bullets. This information can be used for Task 1b: forming a team (maybe the team can be based on an existing energy / environmental committee) Task 1c: pre-assessment (after filling out the matrix you should know who to get information from and what information is available) Task 1e: preparing assessment proposal for top management approval (the results of the Energy Management Matrix will have an influence on the approach, the team, time planning and budget) Task 3b: identifying options (options to improve energy management at the company fall under improved process management options) Questions to ask to top management: Policy & systems - Is there a formal energy / environmental policy? (ask for a copy) - Is there a formal energy / environmental management system (ask to see copy of manual, ISO 14001 certificate) - What role does top management play? Organization - Is there a person or department responsible for energy / environmental management? (ask for name, title and department, and if this person reports to management) - Is there an official committee that deals with energy / environmental issues? (ask name of committee, who is in it, if a management representative is in this committee, are meeting minutes prepared). - What role does top management play? Motivation - How are staff motivated to come up with new ideas for energy / environmental improvements? (ask what type of communication like meetings, newsletters, notice boards; who communicates with staff; which staff are covered) - Does the company give rewards or recognise staff for good ideas? (ask how) - What role does top management play? Information systems - What energy / environmental data are collected? (ask if this covers: energy, greenhouse gas emissions, materials, water, waste, other emissions; ask if it covers quantities, costs, savings) - How are data collected (from supplier invoices meters or measured by the company) and at what level (at plant level or for each department / production process also) and how often (daily, monthly, quarterly, annually)? - What information is reported to top management (how, by whom and how often, e.g. Monthly Management Report, ask for a copy!) and what does management do with this information (e.g. set targets, determine future energy consumption, give feedback to departments)?
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Training and awareness - Is there training for staff on energy / environmental management and conservation? (ask who is trained, what the training is about, who gives the training) - Is there awareness raising for staff on energy / environmental management and conservation? (ask how awareness is raised, what the awareness is about, for which staff, who does the awareness raising) - Is there marketing of the importance and results of energy and environmental management outside the organization? (ask to whom, how often, how this is done, does this include energy and greenhouse gas emissions) Investment - What is the process for evaluating and approving projects? (ask who needs to approve, are there any standard forms or procedures, how long this takes, if it needs to coincide with budgeting process) - What criteria are used for the evaluation of any projects (e.g. impact on safety, labour and product quality, investment costs, savings, payback period, ease of implementation etc)? Are energy and greenhouse gas emissions considered in all project evaluations? - What are the minimum criteria that a project (including an energy project) must meet? (ask maximum investment, maximum pay back period e.g. 2 years, so that you know if you can look at all options later, or maybe just as low cost options with a short payback period) - Have there been projects that were not implemented? (ask why!)
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- Yes - Somewhat - No
Important
Comments
Reasons why management wants to improve energy efficiency Where the company is now with energy management policies and systems organization motivation of staff training and awareness information systems investment in energy options (criteria and process) When the company thinks about a replacement investment, is energy efficiency a selection criterion Size of the plant (depending on which focus areas could cover the entire plant or a specific department, process or equipment) If there are any areas where the company has problems with energy (e.g. high costs, technical problems) Time that management wants to allocate to an energy assessment How much money management wants to spend on an energy assessment Any plant or equipment upgrades planned Any plant shutdown / maintenance planned Increased production planned (e.g. demand increase before holidays, launch of new product, major client order) Availability of energy monitoring equipment Have the company installed flow-meters to document and evaluate energy consumption in processes to improve the efficiency with which energy is used Changes in management expected Changes in staff expected who are important to an energy assessment Technical knowledge / expertise of production staff Resistance of production staff to change Language difficulties
See worksheet 1
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- Yes - Somewhat - No
Important
Comments
Existing projects or programmes (e.g. waste minimization programme, production improvement audits) Any departments and energy equipment for which energy audits have been carried out in the past Company ownership structure (family, government, private, multinational) that could influence decision making process and time needed Upcoming elections Seasonal influence (e.g. monsoon, winter) Holidays / festivities (e.g. Ramadan, Christmas) New legislation, permit requirements Other:
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This worksheet can be used to form a Team. Make sure that all responsibilities are covered by the Team. After the selection of focus areas (task 1d) additional team members can be added.
Team members
Name
Position / title
Team Leader Team Member Team Member Team Member Team Member Team Member
Name: Position: Organization name: Address: Country: Tel number: Fax number: E-mail address: Website: Tel number: Fax number: E-mail address: Website:
Year of establishment
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Number of employees
Number of contractors
Type of product(s)
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WORKSHEET 6: GENERAL PRODUCTION FLOW CHART Complete a simplified production flow chart for the companys process steps. Details about utilities (boilers, compressors, wastewater treatment plant etc.) are covered by worksheets 8. This worksheet can also be used to prepare a process flow chart for selected focus areas (task 2b).
Major inputs
Major output
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Products
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WORKSHEET 7: PRODUCTION, ENERGY AND RESOURCE DATA 7A: Yearly data These worksheets can be used to collect yearly data for three years and monthly data for each separate year.
Unit
Year 1
Production Specific Production Specific Production Specific or consumption Costs or consumption Costs or consumption Costs consumption (consumption / ($/year) consumption (consumption / ($/year) consumption (consumption / ($/year) (unit/year) production) (unit/year) production) (unit/year) production)
1. Production data
Product A
Product B
Product C...etc
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2. Energy data
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Fuel for transport - LPG Electricity purchased from grid Electricity exported
3. Water
Tap water
Ground water
Other water
4. Other resources
WORKSHEET 7: PRODUCTION ENERGY AND RESOURCE DATA 7B: Monthly data quantities produced and consumed
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Average
Year:
Unit
1. Production data
Product A
Product B
Product C etc
2. Energy data
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Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Average
Year:
Unit
Electricity exported
3. Water
Tap water
Ground water
Other water
4. Other resources
WORKSHEET 7: PRODUCTION AND RESOURCE DATA 7C: Monthly data costs of resources consumed
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Average
Year:
Unit
2. Energy data
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Electricity exported
3. Water
Tap water
Ground water
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Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Average
Year:
Unit
Other water
4. Other resources
This worksheet can be used to make an overview of the most important utilities at the company, depending on how detailed the pre-assessment is. For example, the Team can decide to only look at design and operating parameters if the utility is selected as a focus area.
Specifications Capacity Brand Type Specific design parameters
Utility
Number
Boilers
Air compressors
Furnaces / refractories
Pumps
Cooling towers
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Transformers
Electric motors
Fans / blowers
Other
Other
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Available (Yes/No) Y Y Y Y Y Y Y See worksheet 6 See worksheet 7 See worksheet 7 See worksheet 8 To be included in pre-assessment as a minimum Responsible person in the team to collect the data Comments See worksheet 5
This worksheet can be used to make an overview of what information is available at the plant. This worksheet indicates the minimum information that should be collected as part of the pre-assessment. The Team should decide what other information may be needed during the assessment (step 2) and add this information to the list below.
Information required
Organization chart
Production data for past 3 years (preferably broken down by month) Energy and resource consumption and cost data for past 3 years (preferably broken down by month) Inventory of major equipments (boiler, furnaces, compressors etc.) Other (e.g. List of monitoring equipment available at the plant Electrical systems lines diagram Permits)
Other: .
Other: .
The Team should identify what criteria to use to select focus areas that will undergo a detailed energy assessment (step 2). Criteria should be based on: The meeting with top management (task 1a, see worksheet 3 for possible criteria) The Team (e.g. expertise / knowledge of Team Members and/or of external facilitator / consultant, and availability of staff from possible focus area to join the team) The pre-assessment (task 1c, e.g. information available, high energy consumption or costs)
Then each focus area should be assessed against the criteria by giving a high (H), medium (M) or low (L) score against the criteria. Based on the scores given and the important of individual criteria, the Team can select one or more focus areas for a detailed energy assessment (step 2)
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This is a proposal to carry out an assessment at [name company/plant]. The objective of the assessment is to [describe main objective in one sentence] The following focus areas are suggested for the assessment [ list focus areas in one sentence but dont describe in detail] The output of the assessment is an Implementation and Monitoring Proposal that proposes which feasible options should be implemented within one year and how results will be monitored. The suggested approach for the assessment is [list steps] The assessment will be carried out by [ list Team members only nd mention who is the Team Leader] The assessment will start on [ date] and finish on [date]. In total [number] of staff man days are needed to carry out the assessment, plus [number] of consulting days. The total costs for the assessment is [amount] for [list type of costs, e.g. consultants, training]. We request top managements approval for this proposal.
3. Approach (1 pages)
Note: The approach includes steps 2, 3 and 4 of the Company Energy Efficiency Methodology. Describe for each task what the Team proposes to do (how detailed each step and task should be depends on the company, because each company is different!).
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Step 2 Assessment Task 2a: Staff meeting and training ( explain what you propose to do under this task) Task 2b: Prepare process focus area flow charts Task 2c: Walkthrough of focus areas Task 2d: Quantify inputs and outputs and costs to establish a baseline Task 2e: Quantify losses through a material and energy balance
Step 3 Identification of options Task 3a: Determine causes of losses Task 3b: Identify possible options Task 3c: Screen options for feasibility analysis Step 4 Feasibility analysis of options Task 4a: Technical, economic and environmental evaluation of options Task 4b: Rank feasible options for implementation Task 4c: Prepare implementation and monitoring proposal for top management approval
WORKSHEETS
Team members
Team Leader Team Member Team Member Team Member Team Member Team Member
Name
Position / title
Department
Responsibility
Time planning Note: Time planning (i.e. how much time/man days is needed for each step and task, a timeframe with deadlines
Step and tasks Step 2 Assessment Task 2a: Staff meeting and training Task 2b: Prepare process focus area flow charts Task 2c: Walkthrough of focus areas Task 2d: Quantify inputs and outputs and costs to establish a baseline Task 2e: Quantify losses through a material and energy Start date Completion date Total number of man days needed
balance
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Step 3 Identification of options Task 3a: Determine causes of losses Task 3b: Identify possible options Task 3c: Screen options for feasibility analysis Step 4 Feasibility analysis of options Task4a: Technical, economic and environmental evaluation of options Task 4b: Rank feasible options for implementation Task 4c: Prepare implementation and monitoring proposal for top management approval TOTAL
Budget Note: The budget should describe what money is needed for (e.g. consultant, training, monitoring equipment, etc.) and mention how much money is needed for each task. Step and tasks Step 2 Assessment Task 2a: Staff meeting and training Task 2b: Prepare process focus area flow charts Task 2c: Walkthrough of focus areas Task 2d: Quantify inputs and outputs and costs to establish a baseline Task 2e: Quantify losses through a material and energy balance Step 3 Identification of options Task 3a: Determine causes of losses Task 3b: Identify possible options Task 3c: Screen options for feasibility analysis Step 4 Feasibility analysis of options Task 4a: Technical, economic and environmental evaluation of options Task 4b: Rank feasible options for implementation Task 4c: Prepare implementation and monitoring proposal for top management approval TOTAL Description of costs Amount
Appendices
Note: Add any relevant worksheets (No 1-10) and other appendices that will support the proposal.
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Comments
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Output (task 2d) Name Quantity Costs Liquid Solid/gas Energy Losses - quantities (task 2e) Losses total costs (task 2e)
WORKSHEET 13: PROCESS FLOW CHART, (INPUTS/OUTPUTS AND MATERIAL AND ENERGY BALANCE) FOR FOCUS AREAS
Name
Quantity
Costs
Use worksheet 6 to prepare a process flow chart for the focus area (task 2b). But now also the utilities (boilers, fans, motors etc.) have to be added. (Note: it is not always possible to make a process flow chart, for example, if your focus area is fans and motors for the entire plant). Use this worksheet to write down the inputs and outputs for each step of the process (task 2d) and to identify the losses (task 2e). An example of a process flow chart for a boiler with inputs, outputs and losses as well as an empty template flow chart are included on the next pages.
water manual screening and crushing ID fan Standard parameters: ## Head developed ## blow down loss: ##
BFW pump Standard parameters: ## process parameter equipment ## (actual) steam separation Hot condensate (#) ## (actual) wet stream boiler Operating ## process step PROCESS STEP REFERENCE steam generation Standard ## pressure rating
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unburnt in ash: ##
electricity ##(actual)
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coal (lignite) water spray
ugitive emissions
ID fan Standard parameters: 200o C & 20kW Head developed 250 mmWC blow down loss: 1.4% 0.24 Mk/hr (actual) unburnt in ash: 4.85% 0.83 Mk/hr (actual)
BFW pump Standard parameters: 8 t/hr at 13 kg/cm2 process parameter equipmen 11.40 Mk/ht (actual) steam separation Hot condensate (3%) 0.09 Mk/hr (actual wet stream boiler Operating 10 kg/cm2 4 t/hr process step PROCESS STEP REFERENCE steam generation Standard 12 kg/cm2 pressure 6 t/hr rating
electricity 9 kW(actual)
Hidden loses: H2 & moisture: 2.5 Mk/hour (actual) 14.4% Radiation: 0.17 Mk/hr (actual) 1% Moisture in air: 0.03 Mk/hr (actual) 0.15%
WORKSHEET 14: WALKTHROUGH OBSERVATIONS Use this worksheet to write down observations made during the walkthrough of the focus area (task 2c). These can be used to identify options to improve energy and resource efficiency later (task 3a).
Section name Area/equipment Observation
WORKSHEETS
153
WORKSHEETS
Good housekeeping
Product modification
Implement directly
Further analysis
Consider later
154
Possible options (task 3b) Type of option (task 3b) Screening (task 3c)
This worksheet can be used to identify causes of observations and losses (task 3a), identify and categorize possible options (task 3b) and screen options (task 3c) to decide which ones will be investigated in more detail. One worksheet should be completed for each focus area separately.
Use one worksheet for each separate option, for options selected in task 3c (screening of options) for feasibility analysis.
OPTION NAME:
GENERAL INFORMATION
Number
Focus area
Focus sub-area
Observation(s)
Cause(s)
Option(s) description
FEASIBILITY ANALYSIS
RESULTS OF FEASIBILITY ANALYSIS (task 4a) RESULTS AFTER IMPLEMENTATION (task 5a)
Technical feasibility
WORKSHEETS
Space availability
Time required
Other:
Economic feasibility
One-off investment
Payback period
155
WORKSHEETS
156
Completion date Amount of time needed Comments
FEASIBILITY ANALYSIS
Environmental feasibility
Annual greenhouse gas emission reduction Annual other environmental reductions (e.g. water, raw materials, waste, dust) Other benefits or reasons
IMPLEMENTATION AND MONITORING PLAN (task 4c) to be completed only for options ranked 1 (and 2 if required)
Persons(s) responsible
1.
2.
3.
4.
When the feasibility analysis of options is completed, this worksheet can be used to summarize the results for each focus area (complete one worksheet for each focus area). This table can then be included in the Implementation and Monitoring Proposal for top management.
Feasibility Analysis (H = high, M = medium, L = low feasibility) Benefits Barriers (and solutions)
Technical
H / M / L Main results
1. 2. 3. 4.
WORKSHEETS
157
WORKSHEETS
2. 3.
4. 5. 6.
158
This table gives an overview of GERIAP company case studies that has been worked out as long or short options. Please note that several companies plan to implement additional options, but these have not been listed in this table.
Please see the Website version of this Guide (www.energyefficiencyasia.org) for any updates.
COMPANY Country
Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh
Other keywords
Leaks Rolling mill
Leak repair and insulation improvement of steam distribution system Keeping main pumps on rolling mills turned off when mills are offline Installation of capacitor bank to improve power factor
Steam distribution & utilization Pumps and pumping systems Electricity Waste heat recovery
Capacitor bank, power factor Water Blow down, total dissolved solids, TDS Condensate
Energy Efficiency Guide for Industry in Asia Iron & Steel Iron & Steel Iron & Steel Iron & Steel Pulp & Paper Pulp & Paper Pulp & Paper Ceramics Bangladesh Bangladesh Ceramics Ceramics Pumps and pumping systems Furnaces and refractories Furnaces and refractories, Waste heat recovery
Blowdown in boiler at high TDS levels only to reduce the number of blowdowns Increase of condensate recovery from boiler
Installation of a de-superheater at boiler to feed steam to the paper machine at lower temperatures
Boilers and thermic fluid heaters Boilers and thermic fluid heaters Boilers and thermic fluid heaters
Heat loss reduction from furnace by insulation, reduced operating burners, and maintained sager sizes Heat recovery from furnace exhaust for reuse in dryer
De-superheater, steam, paper machine, paper breakage Water, wastewater recovery Insulation, burners, sager Dryer, pipelines
159
160
Country
Bangladesh Bangladesh Chemicals Chemicals
TITLE OPTION
Insulation, steam traps repair and condensate recovery for boiler and steam system
Cooling water conservation through reduced water drainage, blow down and evaporation Repair of leaks in ammonia pipelines Bangladesh Bangladesh China Iron & Steel Iron & Steel Chemicals Electricity Chemicals
Bangladesh
Chemicals
Pumps and pumping systems Boilers and thermic fluid heaters Steam distribution and utilization Cooling towers
Nitrogen flow meters, leak survey and repair China China China
China
Furnaces and refractories Waste heat recovery Electricity Pumps and pumping systems Electricity Electricity Fans and blowers
Energy Efficiency Guide for Industry in Asia Iron & Steel Iron & Steel Iron & Steel Iron & Steel China China Cooling towers Pumps and pumping systems Waste heat recovery Pulp & Paper Pulp & Paper Cogeneration
Revised procedure to turn roof deck fan off in winter when it is not needed Repair of biocide dosing injection pump at cooling tower
COMPANY Country
China China China China China China China China Chemicals Cement Cement Digester Cooking process
Increase cooking capacity and efficiency by improving straw feed Pre-soaking of straw before feeding into digester
Replace several small boilers with one large boiler to improve energy efficiency Power generation from waste heat from clinker cooler and preheater New refractory bricks for kiln
Pulp & Paper Pulp & Paper Pulp & Paper Pulp & Paper Cement
Steam distribution & Leaks utilization Boilers and thermic fluid heaters Waste heat recovery Kiln, clinker cooler, preheater Furnaces and Kiln, refractory bricks refractories Coal Furnaces and refractories Coal
Use of coal ash powder instead of steel slag as clinker substitute in cement Revised procedure to screen coal feeding to ensure homogenous combustion Chemicals Chemicals Chemicals Chemicals
Replacement of glue sphere with screw cordonnier system in steam turbine condenser Heat recovery from blown gas and relaxed gas at water gas production Insulation and leak repair of steam pipelines
Yuanping Install steam turbine to existing boiler to generate electricity Chemical Industry from superheated steam Ltd
Recover flash steam from blow down to heat the boiler feed water
Steam distribution and Leaks, Insulation utilization Cogeneration Steam Boilers and thermic fluid heaters Waste heat recovery Flash steam, blow down Boiler and thermic fluid heaters
161
162
Country
China China China China Chemicals Chemicals Coal Chemicals recovery Chemicals Steam traps Chemicals Steam distribution and utilization Steam distribution and utilization Fuels and combustion
TITLE OPTION
Vishakapatnam Steel Plant Ltd India India Iron & Steel Iron & Steel
Weld impingement plates for each steam inlet point at the jacketed heater to avoid heat loss Install steam trap at air heating coils in the oxalic acid bagging line Convert air gas-making process into oxygen enrichment gasmaking process Improved recovery of lead sulphate and sodium sulphate (Glauber salt) in the plumbite treatment process and acidification process Rubber shots cleaning technology to improve vacuum in turbo generator condenser Electricity conservation at feed air compressors of air separation plant Fuels and combustion India India India India India India India India Compressors and compressed air Electricity Electric motors Electric motors Rolling mills Cone crushers Iron & Steel Iron & Steel Iron & Steel Cement Cement Cement Cement Cement
Energy Efficiency Guide for Industry in Asia Cooling towers, Fans and blowers Furnaces and refractories Furnaces and refractories Fans and blowers Fans and blowers Fans and blowers
Optimum utilization of field current in Rolling Mills to reduce electricity Reduction of number of running cone crushers at Raw Material Handling Plant Adjust fan blades in cooling tower at chilled water plant for winter and summer conditions Modification of the furnace grate bars and coal particle size
Coal mill, Hot air furnace Coal mill, Insulation Coal mill Coal mill Coal Mill / Fan Speed Reduction
Improved drying of coal through insulation and additional hot air duct from the coal mill furnace Reduction of speed of circulating air fan in the coal mill through replacement of AC motor with DC motor Increase of inlet duct diameter of circulating air fan to reduce flow velocity and pressure drop Reduction of velocity in coal mill outlet duct
COMPANY Country
India India India India India Chemicals Cement Cement Cement Chemicals Coal mill, Lifts Coal mill, False air Limestone crusher Capacitor banks, Insulation Rotary kiln
Increase of coal mill drying chamber lifter height and angle Prevention of false air entry across coal mill circuit Reduction of motor size in Limestone Primary Crusher Active Carbon Ltd Improved steam efficiency through insulation, capacitor banks and parallel mode steam connection Preheating of the combustion air in the rotary kiln with steam coils India India India India India India India India India Chemicals Chemicals Chemicals Pulp & Paper Pulp & Paper Pulp & Paper India Pulp & Paper Boilers and thermic fluid heaters Boilers and thermic fluid heaters Waste heat recovery, Steam distribution & utilization Fans and blowers Chemicals Chemicals Chemicals
Improvement of furnace oil storage and transportation through pipeline insulation and recirculation Replacement of incandescent lights with fluorescent lights
Fuels and combustion Fans and blowers Electric motors Steam generation and utilization Fuels and combustion, Furnaces and refractories Furnaces and refractories, Electricity Lighting
Incandescent lights, Fluorescent tube lights Furnaces and Raw material drying, refractories Moisture Boilers and thermic fluid Wood fired boiler heaters Cooling towers Solvent recovery, Acetone Coolers, Elevators, Press FBC boiler, Coal, Unburnt Flash steam, Blow down
Moisture removal from raw material using hot air before entry into kiln Replacement of wood fired boiler with high efficiency coal or oil fired boiler Increased solvent recovery through installation of additional cooling tower Technology upgrade: planetary cooler, bucket elevators, and crusher/roller press Reduction of unburnt coal and coal fines in boiler by installing fines separation mechanism and low speed crusher Flash steam recovery from boiler blow down and steam air heater condensate Increase of heat transfer area in the blow heat recovery system to improve heat recovery
Replacement of inefficient vacuum fans with more efficient and higher capacity vacuum fans at former machines
163
164
Country
Pulp & Paper Lighting
TITLE OPTION
Lighting improvements: fluorescent lights with electric chokes, India metal halide lamps, automatic timers, lighting transformers
Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Waste heat recovery Furnace and refractories
Electricity
Fluorescent lights, Metal halide lamps, Automatic timers, Lighting transformers Turbine, Natural gas Billets
PT. Krakatau Steel Generate power from excess high pressure natural gas through turbine expansion and electrical generator Recovering waste heat through billet transportation system modification Burner control system in ladle drying and preheating process
Ladle drying, Ladle preheating Losses, Leaks, steamtrap, repair, replaces Insulation, Steam traps Press, Paper machine, Paper dewatering / drying
Energy Efficiency Guide for Industry in Asia Electricity Indonesia Cement Fans and blowers
Steam loss reduction through pipe insulation, repairing steam trap leakages and steam trap management Replacement of 4P press with shoe press to increase paper dewatering Improved boiler burning efficiency, firing rates and exhaust gas metering Installation of CFB boiler and use of paper sludge as alternative fuel Water conservation in paper mills to reduce paper sludge
Change mode operation of tie bus to normally closed (NC) for sharing load of transformers and install capacitor bank to improve power factor Install variable speed drives (VSD) on 12 fans to reduce electricity use by motors
Iron & Steel Iron & Steel Iron & Steel Iron & Steel Pulp & Paper Pulp & Paper Pulp & Paper Pulp & Paper Pulp & Paper Pulp & Paper Cement
Boilers and thermic fluid heaters Boilers and thermic fluid Paper sludge, Alternative heaters fuel Paper sludge, Water, Cooling water Paper sludge, Compost Capacitor bank, Tie bus, Transformers Variable speed drives, VSD
COMPANY Country
Indonesia Indonesia Indonesia Indonesia Indonesia Cement Cement Cement Cement Cement Power house Vacuum leaks, False air Auto drain
Cooling tower improvement: revised fan procedure, regular cleaning, float valve repair False air leak survey and repair
Regular cleaning of cooling tower to remove algae and repair or replace fill float valve Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Mongolia Cement Cement Cement Cement Cement Cement Chemicals Cement Cement
Cooling towers, Fans and blowers Furnaces and refractories Compressors and compressed air system compressors and compressed air system Cooling towers
compressed Air, Packinghouse Power House Cleaning, Algae, Fill Float valve Leaks Kiln, Refractory lining, Fire bricks Kiln, False air, Vacuum leaks Leaks Kiln, False air, Vacuum leaks Kiln, Cement mill Jet pulse controls Dampers, Fan pulley
Kiln refractory lining with better quality chrome-free fire bricks to reduce number of kiln shut downs False air leak survey and repair, and installation of mechanical seal on kiln PT. Semen Padang Compressed air leak survey, leaks repair and staff campaign
Compressors and compressed air system Furnaces and refractories Furnaces and refractories Compressors and compressed air system Furnaces and refractories Compressors and compressed air system Compressors and compressed air system Fans and blowers Waste heat recovery Steam distribution and utilization
Da-Mon Trade
Installation of interconnection between the compressors of kiln and cement mill to maximize compressor loads and efficiency Increase time intervals and/or replace time-based with pressure differential jet pulse controls in compressed air system Increase fan pulley diameter to reduce fan speed instead of using dampers Circulate drained water from agent tank for reuse in agent and fermentation tanks
Distillery
165
Distillery
166
Country
Mongolia Dust Cooling water Cement Furnaces and refractories
TITLE OPTION
Erel Cement
Reduce the number of kiln shutdowns and efficiency improvement Improved sealing of dust control system Reuse of cooling water Rehabilitation and/or replacement of existing boilers Mongolia Mongolia Mongolia Boilers and thermic fluid heaters Boilers and thermic Heating fluind heaters Cement Cement Cement
Steel Asia Manufacturing Corporation Ltd Philippines Philippines Philippines Philippines Philippines Philippines
Reduce melting cycle through improved management of reasons for delays Installation of heat resistant cloth canvass on charge and discharge door of furnace to reduce heat loss
Energy Efficiency Guide for Industry in Asia Iron & Steel Iron & Steel Iron & Steel Iron & Steel Pulp & Paper Pulp & Paper Philippines Pulp & Paper
Installation of ceramic fiber insulation inside the furnace wall at recuperative zone side Change of transformer tap settings of electric panel at scale pit pumps Replacement of inefficient and oversized motor at the cooling tower with a downsized standard or high efficiency motor Measurement of water holding tank volume and/or installation of water meters to monitor water consumption Improvement of insulation of the boiler shell/wall
Installation of variable speed drive (VSD) for deaerator pump, heavy fuel oil pump and mill water pump
Furnaces and refractories Pumps and pumping system Cooling towers Electric motors Pumps and pumping systems Boilers and thermic fluid heaters Pump and pumping systems Electric motors Lighting
COMPANY Country
Philippines Philippines Philippines Philippines Philippines Philippines Cement Cement Cement Cement Cement Cement
Solid Cement Corporation Ltd Furnaces and refractories Electric motors Fans and blowers Electric motors Finish Mill
Kiln, Air choke, Solenoid valve, Dust emissions Kiln, Clinker cooler
Replacement of inefficient and oversized motors at the Finish Mills with downsized standard or high efficiency motors Change of transformer tap setting of electric panels at kiln and preheater Repair vacuum leaks at the kiln hood door to avoid heat loss Electric motors Furnace and refractories Furnaces and refractories Pumps and pumping system Electric motors Electricity
Transformers, Kiln, Preheater Kiln, False air, Vacuum leaks Raw Mill, Variable speed drives, VSD Crusher, Capacitor bank
Installation of variable speed drives (VSD) for motors of reducer high pressure pump and reducer low pressure pump at Raw Mill Improvement of power factor at Crusher through reduction of medium voltage and load-based regulation of capacitor operation Use of high efficiency fans and motors for clinker cooler fans Philippines Philippines Philippines Philippines Cement Cement Cement Cement
Energy Efficiency Guide for Industry in Asia Fans and blowers Electric motors Philippines Cement Electric motors, Fans and blowers Philippines Chemicals Cooling towers
Clinker cooler Oxygen, Calciner, Preheater Raw Mill, Nozzles Crushers, Raw Mill, Feed load Dampers, Slip ring motor drive
Installation of on-line oxygen analyzer at calciner exhausts of preheater to improve leaks management Nozzle angle modification and armour ring adjustment to increase raw material flow at Raw Mill Screening of raw material feed size and management of load to increase the performance of jaw and hammer crushers at Raw Mill Damper removal for fans with full open damper and installation of slip power recovery system for fans with slip ring motor drive Improvement of cooling tower efficiency through cleaning of tower fins and chemical treatment of cooling water
167
168
Country
Chemicals Chemicals
TITLE OPTION
Steam leak survey, leak repair and replacement of worn out Philippines gaskets Increase percentage of biofuel (coconut methyl ester) in diesel- Philippines biofuel blend for boiler Philippines Sri Lanka Iron & Steel Iron & Steel Pulp & Paper Electricity Fuels and combustion Chemicals
Steam distribution and Leaks, Gaskets utilization Fuels and combustion Alternative fuels, Biofuel Boilers and thermal fluid heaters Lighting Fluorescent lamps Production delays
Chico Ltd
Replacement of 40W fluorescent lamps with 36W or 32W fluorescent lamps Reduce production delays through improvement of fuel oil quality and installation of high tension transformer for power supply Replacement of oil burner nozzles and recuperator tubes at furnace to reduce heat loss Sri Lanka Sri Lanka
Burner nozzles, Recuperator, Heat loss Paddy husk, Alternative fuel Leaks
National Paper Company Sri Lanka Sri Lanka Pulp & Paper Cement
Energy Efficiency Guide for Industry in Asia Sri Lanka Cement Sri Lanka Ceramics Sri Lanka Ceramics
Replacement of electrostatic precipitator (ESP) fan for dust extraction with bag filters
Fuels and combustion Furnaces and refractories Fuels and combustion, Boilers and thermic fluid heaters Compressors and compressed air system Fans and blowers
Dust emissions, electrostatic precipitator, ESP, Bag filters Kiln, Alternative fuels
Replacement of diesel-fired kiln that uses saggers with gasfired fast firing kiln
Installation of Electro Flow System to improve power factor and minimize harmonics
Fuels and combustion, Furnaces and refractories Furnaces and refractories Fuels and combustion Electricity
COMPANY Country
Ceramics
Separation of large raw material particles and installation of Sri Lanka additional jaw crusher for large particles to increase crusher throughput Use of waste heat from kiln for chamfered tile drying Sri Lanka Improved steam system efficiency through boiler maintenance, Sri Lanka leaks repair and pipeline insulation Ceramics Chemicals
Replacement of inefficient compressor with two screw type compressor Insulation of steam pipelines and tyre moulds of vulcanization /curing process in Rubber Products Division Thailand Thailand Thailand Thailand Thailand Thailand Chemicals Chemicals Chemicals Chemicals Chemicals Chemicals
Chemicals
Waste heat recovery Boilers and thermic fluid heaters Steam distribution and utilization Compressors and compressed air system Steam distribution and utilization Compressors and compressed air system Electricity
Medigloves Ltd
Rubber, Screw type compressor Rubber, Tyres, Vulcanization process, Curing process Intake air, Leaks Water recovery, water conservation Water recovery, Water conservation Condensate recovery
Compressed air leak repair and reduction of intake air temperature Recovery and reuse of drainage from wash and chlorination process Recovery and reuse of water and chemicals from dipping processes Recovery of steam condensate and reuse as alternative source of hot water Steam leak survey and leak repair
Installation of insulated storage tank for collecting steam condensate water for reuse as boiler preheated feed water
Steam distribution and utilization Steam distribution and Leaks utilization Boilers and thermic fluid Condensate recovery, heaters, Preheated feed water Steam distribution and utilization Boilers and thermic fluid heaters
169
170
Country
Thailand Thailand Thailand Chemicals Cement Cement Furnaces and refractories Chemicals Leaks Temperature sensor Chemicals Leaks Chemicals Steam traps
TITLE OPTION
Replace or repair pipe and filter connections to avoid compressed air leakage
Steam distribution and utilization Steam distribution and utilization Compressors and compressed air system
Install temperature sensor to switch the fan in cooling tower on Thailand 0 when water temperature exceeds 28 C Installation of magnetic timers to turn off conveyors during Thailand no-load periods Installation of bag filters to recover lime powder from storage Thailand silos and reduce dust emissions Thailand Thailand Thailand Cement Cement Electric motors, Fans and blowers Cement Cement Cement Thailand Thailand Cement Pulp & Paper Electricity Cement
Conveyors, Magnetic timers Bag filters, Lime powder, Dust emissions, Product recovery Water recovery Product recovery, Raw material recovery Tube mill
Recovery and reuse of washing water at vibrating screen through installation of concrete ponds and gutters Recover low quality raw materials and rejected limestone products to sell as construction materials Installation of a separator using air stream and gravity for separating materials
Installation of high efficiency fan at Cement Mill Department Airflow controls by installing inverters
Reduction of pressure drop across the cyclone system Waste heat reuse from flash tank to reduce the moisture content in the bark and sludge before it is used as boiler fuel
Fans and blowers Electricity, Fans and Blowers Fans and blowers Waste heat recovery Flash tank Boilers and thermic fluid heaters
COMPANY Country
Thailand Thailand Thailand Thailand Furnaces and refractories Steam traps Steam distribution and utilization Steam distribution and utilization Electricity Burner Superheated steam
Repair or replace desuperheating station valves to reduce the amount of steam condensate discharged Repair or replacement of leaking steam traps
G-Steel Ltd
Installation of a new, more effective and energy efficient Approach Flow Screen Repositioning of EAF burner to increase a consistent injection and consumption of oxygen via oxygen lance.
Pulp & Paper Pulp & Paper Pulp & Paper Iron & Steel
Viet Tri Paper Company Ltd Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam
Overall yield improvement at the Continuous Casting Machine Thailand (CCM) process area Installation of economizers on boilers Vietnam
Furnaces and Yield improvement refractories Boilers and thermic fluid Economizers, Flue gas heaters, Waste heat recovery Fuels and combustion Coal handling Boilers and thermic fluid Coal, FBC boiler heaters Steam distribution and Steam traps, Leaks utilization Waste heat recovery Kiln, Vertical dryer
Energy Efficiency Guide for Industry in Asia Pulp & Paper Pulp & Paper Pulp & Paper Ceramics Ceramics Ceramics Ceramics Chemicals Waste heat recovery Electricity
Install a fluidized bed combustion (FBC) external furnace for the coal fired boilers Repair leaks and maintain steam traps
Granules, Press/Former Kiln, spray dryer Ball Mill Boilers and thermic fluid Air heater, Coal, Flue gas heaters
Use of waste hot air from the rapid and final cooling in the vertical drier Increase awareness and knowledge of operating staff regarding recovery of spilled granules on the floor Use of wasted hot flue gas from kiln as part replacement heat for spray dryer Use larger number of smaller and lower density grinding balls in Ball Mill to reduce grinding time Reduction of flue gas temperature of air heater of pulverized coal-fired boiler
171
172
Country
Vietnam Vietnam Vietnam Vietnam Vietnam Cement Furnaces and refractories Cement Cement Chemicals Coal Mill Kiln, Variable speed drive, VSD Kiln, Forced draft fan, Combustion air Vertical kiln, Insulation, Burning zone Chemicals Leaks, Insulation
TITLE OPTION
Installation of variable speed drive (VSD) to control speed of the existing forced draft (FD) blower Recovery of heat from hot exit clinker and reuse to preheat combustion air supplied by forced draft fan Insulation of the kiln burning zone area
Steam distribution and utilization Boilers and thermic fluid heaters Electric motors, Fans and blowers Waste heat recovery
COMPANY DESCRIPTION
Coromandel Cements Ltd. (CCL) is a small capacity cement plant located at Krishna District in the Southern State of Andhra Pradesh, India. It produces around 460 TPD of Ordinary Portland Cement (OPC). Due to huge demand in the local market, the company is working in over drive and the present production of 460 TPD in about 200 percent of the installed capacity. The company was established in 1987 and has 400 employees working for it. 50 percent of the employees are contract workers, working in three shifts for about 330 days in a year. The company gets the basic raw material i.e. limestone from quarries which it owns and are located close to the plant. The annual turnover of the company is about US$ 6 million. The company plans to increase the plants capacity and efficiency in two phases. The first phase modifications are underway and include the installation of a Gas Conditioning Tower and an Electrostatic Precipitator, which will result in reduced power consumption. In the second phase, modification of Precalcinator, Grate Cooler (replacing the existing Planetary Cooler), Cyclones and Cement mills would increase the plant capacity to 900 TPD. The company is aware that the energy cost in cement production is to the tune of 60 percent. And thus, there are continuous efforts from the management towards energy conservation. In addition, the company also conducts energy audits by various agencies on a regular basis. As part of the initiatives, the management joined the GERIAP project to enhance collaborations, links with international institutions to finance/subsidize part of the project to be implemented under the GERIAP project.
PROCESS DESCRIPTION
The main product of CCL is Ordinary Portland Cement. The basic process of cement production involves: mining, preparation of raw meal, formation of clinker, and grinding into cement. The brief description of production process is given below: Mining: Limestone, the key raw material is mined in the quarries with compressed air drilling and subsequently blasting with explosives. The mined limestone is transported through dumpers to the plant. Crushing & Raw Meal Preparation: The mined limestone is fed to a crusher for size reduction and is stored in the stockpile. The crushed limestone, bauxite and ferrite are stored in feed hoppers from where they are fed to the raw mill in the required proportion. The crushed limestone along with other ingredients is sent to the raw mill. The ground raw meal is stored in the silos. Coal Milling: The raw coal from stockyard is crushed in a hammer crusher and fed to the coal mill. Coal mills provide dried pulverized coal to kiln and precalciner. The coal particles are collected in the bag filter through a grit separator. Hot air generated in a coal-fired furnace is used in the drying of coal in the mill. Pyro Processing: The raw meal is fed through the four-stage preheater to the rotary kiln. Pulverized coal is fired from the bottom of the kiln, where as the raw meal preheated through a series of preheaters and cyclones is fed from the top. The output clinker goes to the planetary cooler where the clinker gets cooled and transported to clinker stack yard. Clinker Cooler: The hot clinker is cooled in a planetary cooler consisting of 10 circular ducts. Air is supplied from ambient through these circular ducts and gets heated on contact with hot clinker. This heated air forms the secondary air for combustion. Cement Grinding: The cooled clinker from the clinker storage yard is fed to cement ball mill along with gypsum. The cement thus produced is collected in the bag filter and taken to cement silos
173
METHODOLOGY APPLICATIONS
The draft Company Energy Efficiency Methodology was used as a basis for the plant assessment to identify and implement options to reduce energy and other materials and wastes. Some of the interesting experiences are: Task 1b: Establish a team and inform staff At this company, the Team to carry out the energy assessment consisted of member from several committees that already existed and covered different areas of the company, including: Cost Audit Team: which is responsible for gathering and analyzing various data, budgeting, tracking actual performance, identification of issues, proposing solutions, and reporting to management? This includes energy consumption, costs and energy conservation Technical Services Team: which is responsible for analyzing production operations, identifying issues and proposes rectifying measures to improve productivity and reduce resource consumption, including energy. Maintenance Team: which is responsible for daily analysis of equipment vibration and condition monitoring and identifying and implementing measures to increase the efficiency and availability of machines? Task Force: which consists of senior managers and staff members from all departments, who are brought together to study a specific operational aspect (e.g. stores consumption) and submit a report with recommendations to management. A Team with seven persons was set up as a new Task Force to perform the energy assessment. Lesson learnt: Forming a team based on already existing committees and groups in the company can make the team more effective.
As part of the pre-assessment, a schematic overview of the information flow within the company was prepared to give the Team a better understanding of what information was collected, where and by whom, and to whom this information was reported. This overview was very helpful during the collection of baseline data during the detailed assessment (task 2d). The overview is given below. Lesson learnt: An overview of information collected and reporting within the company is helpful to prepare for the assessment (step 2), especially establishing a baseline (task 2d).
by Management
Daily Summary Report: - Proposed actions - DPR - Stores data - Stoppage analysis - Electricity / power report Proposed actions Stoppage analysis Electricity Outputs
Daily review
Daily Meetings
Section Meetings
by section operators
Daily readings
174
Task 1d: Select focus area Top management played an important role in the selection of focus area at this company. After a walkthrough of the entire plant, the external facilitators and the team met with top management. Top management has regular meetings with staff, top management held the same views as the team about the choice of focus areas. Top management proposed to: Leave out some focus areas because they were already being addressed through other projects and/or they would probably need large investments which the company does not have at this moment. Carry out some monitoring to confirm that the proposed focus areas were selected based on the right information. Due to lack of monitoring equipment, a local equipment supplier was contacted for a demonstration of monitoring equipment by monitoring some parameters for the proposed focus areas. The focus areas selected were the coal mill circuit, and the kiln and preheaters section. Lesson learnt: Top management can play an important role in the selection of focus areas. At the start of the assessment there was a big meeting between the management of the company, the external facilitators and more than 100 of the company staff. During the meeting it appeared that employees are extremely loyal to the management and the company, and over 90 percent of the staff have been with the company since 1986. The relationship with Union is extremely good, and the Union representatives present at this meeting emphasized that was one big family and the management as parents to staff & their families. Lesson learnt: Informing many staff at the start of the energy assessment combined with loyalty and commitment from staff is important for the Team to carry out a successful energy assessment. The company has a good but informal data collection system, and therefore it takes time to collect the data needed. The external facilitators gave two company members of the Team a list of the type of data needed during the technical training course (task 2a). Therefore when the assessment started, most of the baseline data was ready. Lesson learnt: Giving a list of required data and information to the company Team will save the external facilitators time when establishing a baseline during the assessment.
Task 2d: Quantify inputs and outputs and costs to establish a baseline
The company has continued with energy efficiency and Cleaner Production after the first round of the Methodology and without the help of the external facilitators. After the first assessment together with the external facilitators, the Team had identified about 18 options. Since then the Team independently identified and implemented 26 new options! The Team also re-evaluated and implemented some of the options that were rejected by top management during the first round due to financial hurdles. The main reason that this happened was the very high motivation of staff and trust of top management in its staff, even though the company has only limited formal systems for energy management. Lesson learnt: Staff motivation and trust from top management in staff are important factors in ensuring continuous improvement of energy efficiency.
175
OPTIONS
The options were identified from two focus areas and in two phases. In total, 44 options were identified.
The two focus areas selected were (1) the coal mill circuit and (2) the kiln and preheaters In the year 2003, the company identified 18 options, of which eight have been implemented, one In the year 2004, the company by themselves, without any assistance from external consultants
is under implementation, eight are yet to be implemented and one is rejected. identified and implemented 26 options. The options implemented in 2003 resulted in savings of US$ 10,037 against an investment of US$ 3,579. The simple payback period works out to be about four months. Implementation of these options resulted in savings of 97 tons of coal, and 93,113 kWh of electricity. This led to reduction in GHG of 226 tons CO2/year. The options implemented in 2004 resulted in savings of US$ 223,831 against an investment of US$ 103,818 with a simple payback of about eight months. This also resulted in reduction of 2262 tons CO2 /year and resource savings of about 1.5 tons coal/year and 2532187 kWh of electricity. In total, an investment of US$ 107,397 led to savings of US$ 233,868 with a simple payback of six months. Also 98.5 tons of coal and 2625300 kWh of electricity was saved resulting in reduction of 2438 tons CO2/year. This reduction accounts for about 3.24 percent of the total Green house gas (GHG) emissions from the company. section.
Some of the major options implemented by the company are illustrated in the table below: Table: OPTIONS IMPLEMENTED BY THE COMPANY
FOCUS AREA / OPTION Coal mill circuit/ Resizing of Ground level hopper mesh to 100 mm in place of existing 200 mm sq. (larger sized lump to be manually broken) Coal mill circuit/ Modification of the furnace grate bars and coal particle size (see case study) CP TECHNIQUE FINANCIAL FEASIBILITY Investment: US$ 200 Annual cost savings: US$954 Payback period: 3 months ENVIRONMENTAL BENEFITS Annual GHG emission reductions: 11 T COMMENTS
The dust in the environment is likely to increase, because of manual breaking of large size lumps Relative ease of operator in less frequent handling and firing of coal in the furnace
Investment: Nil Annual cost savings: US$ 2,326 Payback period: Immediate
Annual coal savings: 50 T Annual GHG emission reductions: 77 T Less un-burnt in ash would make the ash useable for other purposes
176
FOCUS AREA / OPTION Coal mill circuit/ Increase of coal mill drying chamber lifter height and angle (see case study)
CP TECHNIQUE
FINANCIAL FEASIBILITY Investment: Nil Annual cost savings: US$ 1,726 Payback period: Immediate Investment: US$ 65 Annual cost savings: US$ 9,167 Payback period: Immediate Investment: US$ 171 Annual cost savings: US$ 1,183 Payback period: 1 months
ENVIRONMENTAL BENEFITS Annual GHG emissions reductions: 17. 8 Annual electricity savings: 20003 kWh Annual GHG emissions reductions: 103 Annual electricity savings: 115320 kWh Annual GHG emissions reductions: 13 Annual electricity savings: 14880 kWh Annual GHG emissions reductions: 10 Annual electricity savings: 11160 kWh
COMMENTS
tons CO2
Kiln & preheaters/ Kiln feed pump speed reduction from 835 to 660 RPM
tons CO2
Kiln & preheaters/ Increase of inlet duct diameter of circulating air fan to reduce flow velocity and pressure drop (see case study) Coal mill circuit/ Introducing Variable Frequency Drive in the Coal Mill
tons CO2
New Technology/ Investment: Equipment US$ 6,64 Annual cost savings: US$ 887 Payback period: 9 months Production Process/ Equipment Modification Investment: US$ 12,670 Annual cost savings: US$ 43,604 Payback period: 4 months
tons CO2
Annual GHG emissions reductions: 942 Annual electricity savings: 417000 kWh Annual coal savings: 375 T Annual GHG emissions reductions: 248 Annual electricity savings: 277700 kWh
tons CO2
Coal mill circuit/ Stationary Grill arrangement at the limestone stock yard
Investment: US$ 20,100 Annual cost savings: US$ 22,080 Payback period: 6 months
tons CO2
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FOCUS AREA / OPTION Kiln & preheaters/ Preheater fan impeller modification
CP TECHNIQUE
FINANCIAL FEASIBILITY Investment: US$ 964 Annual cost savings: US$ 5,914 Payback period: 2 months Investment: US$ 500 Annual cost savings: US$ 11,040 Payback period:1 month
ENVIRONMENTAL BENEFITS Annual GHG emissions reductions: 66 Annual electricity savings: 74400 kWh Annual GHG emissions reductions: 124 Annual electricity savings: 138880 kWh
COMMENTS
tons CO2
Coal mill circuit/ Installation of VFD for Raw Mill feed table
tons CO2
Coal mill circuit/ Reduction of speed of circulating air fan in the coal mill through replacement of AC motor with DC motor Coal mill circuit/ Improved drying of coal through insulation and additional hot air duct from the coal mill furnace (see case study) Coal mill circuit/ Prevention of false air entry across coal mill circuit (see case study)
New Technology/ Investment: Annual GHG Equipment US$ 1,622 emissions Annual cost reductions: 17 savings: US$ tons CO2 605 Annual electricity Payback savings: 18600 period:13 kWh months Production Process/ Equipment Modification Investment: Nil Annual cost savings: US$ 1,860 Payback period: Immediate Investment: Nil Annual cost savings: US$ 668 Payback period: Immediate Investment: Nil Annual cost savings: US$ 2,761 Payback period: Immediate Annual GHG emissions reductions: 61 Annual coal savings: 47 T
tons CO2
Good Housekeeping
Annual GHG emissions reductions: 6.9 Annual electricity savings: 7740 kWh Annual GHG emissions reductions: 29 Annual electricity savings: 32000 kWh
tons CO2
Coal mill circuit/ Reduction of velocity in coal mill outlet duct (see case study)
tons CO2
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FOCUS AREA / OPTION Coal mill circuit/ Reduction of motor size in Limestone Primary Crusher (see case study)
CP TECHNIQUE
FINANCIAL FEASIBILITY Investment: US$ 2,326 Annual cost savings: US$ 2,354 Payback period: 12 months
ENVIRONMENTAL BENEFITS Annual GHG emissions reductions: 24 Annual electricity savings: 27280 kWh
COMMENTS
tons CO2
Mr. S. Chandra Mohan, Chairman Mr. Ramesh Chandra, Managing Director Coromandel Cements Ltd., Ramapuram Village Mellachervu (mandal), Nalgonda Dt. Tel : +91 86 8323 4730 Fax: +91 40 2331 1413
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KEY WORDS
India, Cement, Furnaces & refractories, Coal mill, Hot air furnace
OBSERVATIONS
Coal is burnt in a furnace to provide hot air to the coal mill to dry coal prior to grinding (the drier, the coal, the more efficient, the grinding process). Three observations were made: A large amount of unburnt / semi-burnt coal particles in the ash pit at the bottom of the furnace A large amount of coal particles dropping through the grate bars into the ash pit The temperature of the hot air sent to the coal mill was measured to be 200 0C which is relatively low Upon investigation this had two causes: Large coal lumps were fed into the furnace, resulting in high amounts of access air because the coal could not be burnt effectively and therefore insufficiently hot air was sent to the coal mill The distance between the grate bars was large: 50 mm, resulting in coal particles falling through the grate into the ash pit below before the coal was burnt completely
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Three options were implemented: The coal size fed into the furnace was reduced The space between the grate bars in the furnace was reduced to 25 mm (see picture below) Operators were trained in proper coal feeding and combustion practices
OPTIONS
RESULTS Through the implementation of the three options, the overall combustion efficiency was improved resulting in an increase of the furnace outlet temperature (i.e. the temperature of the outgoing flue gases) from an average of 200 0C to 240 0C. This resulted in improved drying of coal in the coal mill (or less coal was needed in the furnace to achieve the same drying result). The financial, environmental and other results are as follows:
Financial results Investment Annual cost savings Payback period Environmental results Annual coal savings - Clinker production - Thermal energy reduction : none : US$ 2,326 (50 tons coal /year * US$ 46.52/t coal) : immediate
: 50 tons, which was calculated as follows: : 450 TPD : 1.5 kCal/kg of clinker (Based on coal drop test before and after option) - Daily energy savings : 675,000 kCal/day(450TPD *1.5 kCal/kg clinker) - Equivalent daily coal savings : 0.15 tons/day (675,000 kCal/day/4500 kCal/kg) - Annual coal savings : 50 tons (0.15 tons/day * 330 days) Annual GHG emission reduction : 77 tons CO2 (50 tons/day * 1.53 t CO2/t coal) [1]
Other benefits
Better operating conditions at the furnace locale Better reliability of coal mill output Better heat release in the kiln due to moisture reduction in coal.
[1] General emission factor for coal, sourced from UNEP GHG calculator: www.uneptie.org/energy/tools/ghgin/
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Mr. S. Chandra Mohan, Chairman Mr. Ramesh Chandra, Managing Director Coromandel Cements Ltd., Ramapuram Village. Mellachervu (mandal), Nalgonda Dt. Tel : +91 86 8323 4730 Fax: +91 40 2331 1413
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