Energy Conservation In Industry

Energy Conservation In Industry

1. INTRODUCTION The industrial sector is a major energy consuming sector in India and uses about 50% of the total commercial energy in the country . The total industrial energy consumption, including non-energy uses grew from 54700 Ktoe in 1984-85 to 74940 Ktoe in 1994-95. In terms of percentage for the same period the percentage increase of GDP was 84.6% compared to a percentage increase of 63.9% in the energy consumed . Of the commercial sources of energy, coal and lignite contribute about 56%, oil and natural gas about 40%, hydroelectric power around 3% and nuclear power 1%. Over 42% of energy sales from utility sector in 1991-92 were to the industrial sector. In addition, the industry

produces 10% of total utility

generation through captive power plants, most of which is consumed in-hours. In general, Indian industry is highly energy intensive and energy efficiency is well below that of other industrialized countries (Table 1).

Country India U. K. U.S.A. Japan Sweden

Steel 9.50 6.07 6.06 4.18 5.02

Cement 2.00 1.30 95 1.20 1.40

Pulp and Paper 11.13 7.62 9.70 -7.56

Fertilizer 12.23 11.25 11.32 ---

Efforts to promote energy conservation by such industries could lead to substantial reduction in their cost of production, making them more competitive Govt. Poly. Washim

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Energy Conservation In Industry globally. The consumption of electricity per unit of product in these industry is much higher than in developed countries. Part of it reflects the outdated production processes still in existence. Most of the energy intensive plant are based on international technologies developed during the period when energy efficiency was considered a secondary criterion for plant design. Even in the fifth and sixth plans, hardly any capital schemes encouraging energy conservation were formulated. Concern, if any, in this direction has remained confined at the conceptual level within the consultancy organizations without making inroads into the industry in a major way.

2. ENERGY TRENDS IN THE INDIAN INDUSTRY

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Energy Conservation In Industry The section below discusses few of the major energy consuming industries of India with regard to their energy conservation effort and trends shown by the industries.

Table 2 : Absolute energy consumption of energy intensive industries Absolute energy

Scope of energy

Energy cost as

Industry

consumption

conservation in

Percentage of mfg

Fertilizer Sugar Cement Textile Aluminium Mini-steel Paper Chlor-alkali Glass & Ceramics Food processing

(million G Cal) 112 100 67 52.5 30.1 27 26 20 15 15

the sector (%) 10 20 + cogeneration 10 20-25 15-20 9 20 15 15 13

cost (%) 60 12 40 13 40 25 25 30-35 30 30

CEMENT: India is the 4th largest producer of cement in the world after China, Japan and USA. The cement industry is highly energy intensive with energy costs making up as much as 40% of the total cost of manufacturing . This has been one of the reasons for the high responsiveness of the industry to energy conservation. The

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Energy Conservation In Industry drop in specific energy consumption has been spectacular (Table3). New cement plants have their energy performance comparable to international best standards. The various studies conducted by the CII indicates a potential energy saving of 10% translating into Rs 3,000 million/year with an investment of approximately Rs 6,000 million to achieve the projected energy savings. Cement industry produces particulate emission that has a significant influence on the environment. The energy saving projects in the industry will also have a huge direct benefit on the environment.

Specific energy consumption. Specific electrical energy consumption (units/tone of cement) Specific energy consumption (kcal/kg of dinker)

1991-92

1993-94

122

114

930

880

PAPER INDUSTRY: The paper industry is highly energy intensive. The weighted average energy cost as a percentage of manufacturing cost has increased from 11.5% in 1971 -72 to 15% in 1979-80 and farther to ;4.5% ranks only next raw material cost. This is in sharp contrast to energy cost in advanced countries where energy cost forms energy 12-14% of the manufacturing cost. A study by DSIR (1990) points out that Govt. Poly. Washim

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Energy Conservation In Industry average steam consumption in tonnes of steam per tonne of paper is 6.5-8.5 in mills abroad whereas it is 11-14-in Indian mills. Similarly the electrical energy consumption per tonne of paper is 1500-1700 kwh in India compared to 1150-1250 abroad. The creation of many small mills has reduced the average size of the production l»it from.J3~s in 1970 to 9,500 tonnes in 1988. Larger mills, both agro and forest based, are comparatively more energy efficient mills compared to the smaller ones. Among the causes for higher energy consumption in paper industry are that most smaller mills do no: have chemical recovery systems and co-generation due to installation of low pressure boiler, lower labor productivity, old technologies, and shortage of conventional raw material leading to lower capacity utilization.

FERTILIZER: The paper industry is one of the largest consumers of hydrocarbon energy, it is estimated that manufacture, packing , transport and application of I kg of nitrogen fertilizer requires 2 kg of fossil fuel. The performance of fertilizer plants from the energy viewpoint has shown a steady improvement over the years as cam improvement over the years as can be judged from the specific energy consumption for ammonia production which has reduced from 14.8 Gcal/Mt in 1979-80 to 11.4 Gcal/Mt in 1992-93. The new (gas based) fertilizer plants in India ha. ye specific energy consumption comparable or even better than plants in the world (Table 4).

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Energy Conservation In Industry The energy consumption of naphtha and fuel oil based plants is also encouraging though the same cannot be said about coal based plants.

Table4. Energy consumption of gas based ammonia plants. Plant P.T. Pupak Kaltim III ASEAN Bontulu Fert. Quarter Fertilizer Co., U.A.E. USA (average all plants) India (average all plants)

Energy consumption (Gcal/Mt) 8.21 9.19 12.10 9.98 9.41

For further encouraging investment in energy consumption project it is recommended that appropriate provision be made in the retention pricing scheme (RPS). This scheme along with special fiscal incentives has encouraged improvement in energy efficiency over and above norms.

SUGAR: India is one of the largest producers of sugar with the industry expected to grow at the rate of )% p.a. It is also one of the most regulated industries in India. The total absolute primary energy consumption in the industry is around 100 million Goals. The energy consumption is high because of the presence of a large number of small inefficient mills, non-incorporation of energy saving devices and inadequate implementation of energy conservation measures.

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Energy Conservation In Industry The sugar Industry holds a great potential for cogeneration due to the surplus bagasse produced. This potential which has been identified at 3500 Mw can improve the financial state of the mills and the power situation in the country.

TEXTILE: The India;, textile industry for 20% of the world production and contributes 25-30% of the total value of exports from India. The condition of the plants is quite diverse. In some plants there is a total lack of systematic energy management while in some progressive mills efforts in tuning and systematic energy management at the plant level has significantly contributed to overall profitability of the mill. There is a great potential for using solar thermal energy in this sector because of the requirement of large quantities of low grade heat. The energy saving potential using solar energy is 5 to 30%.

ALUMINIUM : The aluminium industry is highly concentrated, with five players accounting for the entire production capacity. Energy consumption varies from plant to plants as their smelters are based on different design parameters. NALCO has adopted the latest energy efficient systems au-Ml has the lowest specific heat consumption of 13,500 kwh per tonne of aluminium production whereas for the remaining plants it is in the range of 15,000 to 18,100 kwh per tonne of Al. Govt. Poly. Washim

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Energy Conservation In Industry Aluminium production is highly energy intensive and provides a great scope for energy conservation. A coordinated approach would enable an energy saving of 15 -20%.

3. ENERGY POLICY IN INDIA The energy conservation policy is determined in a manner similar to energy policy. The Ministry of power has been designated as the nodal agency for energy conservation and consequently much of the policy formulation is initiated in the Ministry of Power. However, policy formulae ion have also been initiated in the Ministry of industry and Ministry of Petroleum. They are generally discussed with

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Energy Conservation In Industry the Ministry of Finance, and in Inter-Ministerial Committees before being sent to the cabinet for approval. Major Government initiatives towards energy conservation are : a) Depreciation allowance at 100% in the first year on certain energy saving devices and systems. b) Certain energy-efficient equipment are exempt from the payment of excise and / or custom duty, and reduced custom duty is applicable on specified equipment/devices used in the industry. c) Soft loans from financial institutions for technology upgradation and introduction of energy conservation measure. d) Subsidies for consultancy y and training in the areas of energy management and conservation; e) Strengthening of Energy Management Centre (EMC) for coordinating information dissemination, and strengthening of National Productivity Council (NPC), TIFAC and other organization.

4. ROLE PLAYED BY TERI Tata Energy Research Institute (TERI) is an autonomous, non-forprofit, research institute established in 1974.

In the initial period the institute

concentrated on documentation and information dissemination activities. Towards the end of 1982, research activities were initiated in the fields of energy, and

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Energy Conservation In Industry expanded soon to cover the environment, biotechnology, forestry and a whole mage of sustainable development issues. TERI is working in close association with the Indian industry for enveloping solutions to the challenges posed by the growing demand of energy on one hand and the growing demand of fuel coupled with increasing prices on the other. It is involved in disseminating knowledge and developing expertise in the energy conservation among industry personnel through the major activities a) Energy audits,

b)

Technology

promotion/demonstration,

c)

Training/information

dissemination. Energy audits : Energy audits can be considered as the first step towards understanding as to how energy is being used in a given facility. It indicates the ways in which different forms of energy are being used and quantifies energy use according to discrete functions. Energy audit does not provide the final answer to the problem but only identifies, where the potential for improvement lies and therefore where the efforts of the management should be concentrated upon. Technology promotion/demonstration : This involves demonstration projects (presently small scale and refrigeration sectors) and macro-level studies on energy efficient technologies and process. TERI aims at finding solutions to the energy and the environment problems of the SSI through technology upgradation and human and institutional development in some small scale energy intensive sectors. Four small scale sectors are presently being covered foundry, glass, brick and sericulture. Besides

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Energy Conservation In Industry demonstration projects awareness programs and training of the entrepreneurs and operators will also be carried out simultaneously to familiarize them with the new technologies. Appropriate mechanism (to support the preparation, financing and implementation of replicable projects) will be worked out with an effort try and make this program sustainable beyond the project intervention. Training/ information dissemination : Many investors and most of the consumers have insufficient information on the rapidly evolving technologies that are available. Furthermore, they are uncertain regarding the energy saving and cost-efficient designs. By organizing training programs and workshops TERI is disseminating knowledge gained through energy audits sex. demonstration projects to industry personnel.

5. CONCLUSION In general, it can be seen- that there is considerable scope for the improvement of energy efficiently in the energy intensive industries. Efforts to promote energy conservation by such industries could lead to substantial reduction in their cost of production, making them competitive globally. As 1 keh saved at the user end could mean a relief of 2-4 kwh of generation capacity depending upon the

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Energy Conservation In Industry plant load factor, transmission and distribution losses, and end use efficiency, energy conservation offers the least cost option for bridging the ever widening gap between demand and supply of energy. In order to motivate entrepreneurs to take up energy efficiency drive seriously, many state governments have made energy audit mandatory for units above a certain size (generally related to connected load). But the fact remains that the real motivation will come when the entrepreneurs start realizing the actual benefits of energy use and use it as a tool to increase profits and productivity, rather than view it as a statutory requirement.

REFERENCES 1) Maynard’s Industrial Engineering Handbook – Willium K. Hodson. 2) Energy Stimulation in Building Design – Jaclar Ke. 3) Renewable Energy from the ocean – William H. Avery Chih Wu 4) Renewable Energy – N. K. Bansal

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Energy Conservation In Industry

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