COMPANY ENERGY EFFICIENCY METHODOLOGY

Company example

Step 5 – Implementation and monitoring of options

Task 5a: Implement options and monitor results

Steel Asia (Iron and steel, Philippines)

  • 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. Monitoring. The energy savings and greenhouse gas emission reduction for the insulation of the furnace was calculated based on measurement conducted on surface wall temperature. However based on their production data, actual consumption of bunker fuel increased due to change in the billet feed.

Abul Khair Steel Products Ltd (Iron and steel, Bangladesh)

  • As a separate option outside of the GERIAP project, the plant is commissioning a US $ 1 million acid (spent pickling) regeneration unit, which is in its final stage of civil structure completion and hardware has already been received. The plant was designed for 2.5 ton of HCL per hour considering the production and planned expansion 3 years back. However, the plant currently operates at less than 50 percent of installed capacity, and therefore the regeneration unit will also be underutilized. This means that the actual payback period of the unit will be significantly longer than estimated. The management can consider offering the excess capacity to regenerate acid from other companies to recover the investment costs faster.
    Lesson learnt: Changes in market demand have an influence on production output and therefore can significantly influence the actual payback period of implemented options.

Abul Khair Steel Products Ltd (Iron and steel, Bangladesh)

  • When the company was revisited after implementation of options, company management reported that due to a steep increase in steel prices and increased competition, the market demand is low and as a result the company is presently operating at less than 50 percent installed capacity. As a result, energy consumption and GHG emissions had reduced since the start of the project but specific consumption and GHG emissions had increased. In such a situation it is difficult to determine the impact of implemented options because the data are influenced by a reduced capacity utilization of the plant. Specific consumption and emission data (i.e. per unit of product) were used to compare the before and after situation.
    Lesson learnt: It is important to determine if there were major changes in production figures before and after the implementation of options, as this will significantly influence the changes in energy and GHG emissions. If this is the case, specific consumption and emission data (rather than absolute data) should be used.

TK Chemical Complex Ltd (Chemicals, Bangladesh)

  • The company lacked the necessary monitoring equipment to measure the parameters needed to calculate energy consumption and CO 2 emissions before and after implementation of options. The monitoring equipment provided to the external facilitator through the GERIAP project helped to measure these parameters, although this did not solve the need to take continuous measurements over a longer period of time.
    Lesson learnt: Monitoring equipments provided by an external facilitator helps in the short term to measure the parameters of implemented option but it is not a long-term solution.

Indocement (Cement, Indonesia)

  • In Plant No 6, which was the focus area for the assessment, a major cable burned and therefore the plant had to be stopped for several months, which also caused delays in the implementation of option. Additional options were identified and implemented for two new focus areas to compensate for this: natural gas consumption and electricity generation using excess pressure supply.
    Lesson learnt: Sometimes the implementation of options cannot go ahead for reasons that the Team cannot influence (such as a major overhaul or breakdown in the focus area). Depending on time availability and at what stage of the assessment and/or implementation. It is possible to select other focus areas for investigation or other options for implementation.

PT Krakatau (Iron and steel, Indonesia)

  • The implementation of options had to be carefully planned because it was very much influenced by the company’s schedule for the overhaul of plants.
    Lesson learnt: Consider a company’s maintenance and overhaul schedules when planning for the implementation of options.

PT Semen Cibinong (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 plant’s 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.

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.

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 Plant’s 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 CEO’s support, the Plant’s 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 successful too.
    Lesson learnt: If management gives staff the freedom to try the implementation of 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 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 by 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 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 implemented more options and achieved positive results, the entire organization became more enthusiastic, was willing to rethink their operations and became more open to change

Copyright© United Nations Environment Programme 2006