Back to step 6 task 6a

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

• At the completion of the project the plant had not yet implemented the energy management recommendations made during the first meeting with top management. The plant can continue on an ad hoc basis to implement more energy efficiency options, but recognizes that without a certain level of energy management system it will be difficult to ensure continuous improvement.
  Lesson learnt: A certain minimum level of energy management system is necessary to ensure a company will continue to improve energy efficiency in the future.

Bengal Fine Ceramics Ltd (Ceramics, Bangladesh)

• The company’s main client is the Swedish multinational IKEA Trading Ltd, which requires that suppliers meet their environmental standards. Because of this, the company has a commercial incentive to continue to improve its environmental performance, including improved energy efficiency and reduced greenhouse gas emissions.
  Lesson learnt: Customers can have a major impact on whether a company will continue to improve energy efficiency.

TK Chemical Complex Ltd (Chemicals, Bangladesh)

• The Plant’s Team is interested to continue improving energy efficiency and have the support of management. At the end of a revisit to the plant to evaluate the results of implemented options, the international consultant and the external Bangladeshi facilitators recommended the following focus of a next energy assessment:
  • Identify and implement a large number of simple options at the water pumping, storage, treatment & distribution sections where significant potential exist
  • Carry out an energy assessment for technology related options in the cold rolling mills and galvanizing mills.
  Lesson learnt: By determining what the focus of a future energy assessment should be, the chance that the plant continues with energy efficiency is greater.

Urea Fertilizer Factory Ltd (Chemicals, Bangladesh)

• The barriers to energy efficiency that were identified at the start of the project have not changed. This Government owned fertilizer plant has very good technical staff, but has a complex management structure, bureaucratic processes and less economic incentive compared to a commercial plant. Therefore improvement in energy efficiency will very much depend on top management driving this, rather than by staff’s technical skills and motivation.

Anhui Linquan Chemical Industrial Co. Ltd (Chemicals, China)

• Energy efficiency is part of the day-to-day operations of the entire company under the environmental management system. An interesting example is new company regulations that have been established to encourage employees to take part in energy efficiency and Cleaner Production activities. For example, in 2004 top management passed the “10th memoir of company’s management meeting”. This memoir states that the employees in charge of raw material procurement will be rewarded if the raw materials purchased meet minimum quality requirements.
  Lesson learnt: Rewarding schemes for staff are a good mechanism to ensure that staff will continue to focus on improving resource and energy efficiency
  

Anhui Tian Du Paper Co. Ltd (Pulp and paper, China)

• The company has a quality and environmental management system certified to the ISO standards, which provides the framework for continued energy efficiency improvement. In China the Government plays an important role in the attention companies give to environmental issues including energy efficiency. This plant is applying for support from the National Development Planning Commission (NDPC) and State Environmental Protection Administration (SEPA) to continue with Cleaner Production and energy efficiency as part of the Governments “circular economy” policy.

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 (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 a ISO 9000 certified quality management system and a 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 a 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.
  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 & paper, India)

• The company has targeted 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 Team’s 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 CO 2 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 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 PP (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 Semen Cibinong (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 Semen Cibinong (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 management’s 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 environment-friendly. 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.
  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 making using of already 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 Holcim’s 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 plant’s production capacity by improving the overall equipment efficiency and optimize product’s 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 efficienc

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 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 Holcim’s plants worldwide (see Union Cement).
  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 the company has slowly but gradually begun to realize the importance and potential of energy efficiency. The company will continue with energy efficiency in CPEE in the following ways:
  • The company’s 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 Government’s 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 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)	Incentive Scheme	Percentage of electricity cost saving (as of 400 kWh/liquid ton)	Expected monthly cost saving (US $)
381 – 410 kWh	Incentive Scheme level 2	2.5 %	66,000
350 – 380 kWh	Incentive Scheme level 1	9 %	237,600

Yield Incentive Scheme:

Process Yield (%)	Incentive Scheme	Percentage of improvement yield cost saving (as of yield 90.7 0%)	Expected monthly cost saving (US $)
90.0 – 91.9	Incentive Scheme level 3	0.27 %	135,000
92.0 – 94.0	Incentive Scheme level 2	2.53 %	1,265,000
94.0 – 96.0	Incentive Scheme level 1	4.75 %	2,375,000

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-Steel’s 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 since the growth of manufacturersof cheap 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 is 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:
  • The external facilitator can play an important role in getting the company to commit to continue with energy efficiency .
  • The success of CP project has been found to be important for the company to engage itself to improve energy efficiency.

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

• The top management of this company has become more aware for 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 amongst 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 Team’s 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 management’s 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 into 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:
  • 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.
  • It is essential to integrate energy efficiency into all business processes in order to ensure that it becomes a natural part of day-to-day company management and not seen as “a 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 staff’s 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 company’s 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

Back to step 6 task 6a