Step 3 - Identification of options

Task 3c: Screen options for feasibility analysis

Erel Cement Ltd (Cement, Mongolia)

• For each of the three focus areas (kiln section, compressor house, and cement mills) a number of possible high-level options were identified. But because data available was limited, the feasibility analysis stage included a number of monitoring tasks. These tasks were discussed among the team members and written down. For example, for the combustion process, the following tasks were identified:

  • Purchase portable combustion analyser
  • Purchase contact thermometer
  • Monitor O2 every shift
  • Trial reducing air supply (8%, 7%, 6%, 5%, 4%) and for each % monitor in exhaust before cyclone: O2, CO (CO max limit 80 ppm), Flue gas temperature, Black smoke (no black smoke condition allowed when reducing excess air!!)
  • Calculate coal and cost savings for minimum successful O2 level (estimated at 100-200 tonnes for each % O2 reduction)
  • Replace the chains and metal plates which are provided inside the kiln
  • Lesson learnt: It is not always possible to immediately identify options for energy / resource efficiency improvement during the first visits of a plant. In this case it is important to identify tasks to obtain the right information that can be used to identify options for improvement

National Paper Company (Pulp and paper, Sri Lanka)

• This government-owned company had a poor cash flow situation, and the Sri Lanka Government was not willing to invest additional capital in the plant. For this reason the company was not in a position to invest in high cost options and therefore selected only low cost options for further feasibility analysis and implementation, although it was clear that the company could have benefited a lot from some of the medium and high cost options. Since then the government has called for expressions of interest from private investors to revamp the company through the “Public Enterprises Reforms Committee” (PERC). The company is hopeful that when new private capital is invested in the plant there will be more opportunities to investigate and implement additional options in the near future.
  Lesson learnt: The cost factor is especially important when the company has a poor cash flow situation. In such a case, low cost options should be considered first and foremost. Higher cost options can be considered later if the company financial situation improves.

Hanoi Ceramic Ltd (Ceramics, Vietnam)

• This company plans to move to a new industrial zone in the near future. For this reason only low cost options were selected for feasibility analysis and implementation, despite some options that would bring great energy and cost savings such as a heat recovery project. Other options selected for immediate implementation related to improved operational control and awareness, because this would also benefit the plant in its new location. Other options will be investigated and implemented when the company has moved.
  Lesson learnt: In case the company plans a move its facility to another location, then only the low cost options are likely to be selected for implementation.

Viet Tri Pulp and Paper (Pulp and paper, Vietnam)

• The Team raised the idea to install a new Fluidized Bed Combustion boiler with a capacity of 15 TPH instead of 3 old coal boilers. However, this option to be considered at a later stage for financial reasons because the company had already purchased two new oil-fired boilers from Korea before the GERIAP project started.
  Lesson learnt:

  • The Team should also consider what action the company has already taken to try and improve energy efficiency for the focus areas, as this may impact the feasibility of newly identified options
  • The finance source is an important factor in selecting possible options

Other lessons learnt:

• Don’t start screening options until you have identified as many options as possible, to avoid that you will overlook any good options
• Remember to select simple options that are implemented directly, such as repairing steam leaks and heat recovery using heat exchangers. Implementation of low cost and easy options will result in quick savings and can therefore help finance a next round of more expensive options
• Company priorities and policies as indicated by top management should be considered in screening options for further investigations
• Most companies find business interest more important than environmental considerations in screening options
• Top management will almost always prefer the investigation (and implementation) of low cost options with high savings
• Tools such as the Pareto Diagram can help in prioritizing, giving weights and analyzing options
• It is important to agree on screening criteria before the Team starts with screening options
• Before screening is started it is important to find out the company’s financial criteria for implementing projects. If the cash flow situation of a company is bad then there is no point in selecting high cost options for further investigation
• One screening criteria can be whether investigation and implementation of the option is likely to interrupt the production process
• 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