Energy Intensity inIndustrial Sub Sectors
1.

General concept on “Energy Intensity in Industrial Sub-sectors ”
and difficulties & limitation of statistics accuracy

2.

Practical approach for calculation of Energy Intensity using statistics

3.

“In-house Bench-mark Activity” using In-house Energy Intensity for a factory

4.

Example of “bench-mark activity” in a factory

June 19, 2007

Tsuzuru NUIBEThe Energy Conservation Center, Japan

What is the Energy Intensity in Industrial Sub-sectors ?
* “Energy Intensity in Industrial Sub-sectors ” may be an evaluation
indicator for EE&C achieving rate and one of the effective guide-lines of
EC policy for factories and buildings.
But, it is beleaguered with difficulties to get accurate energy intensity.

It needs precise and complete product statistics and energy
consumption statistics by individual sub-sectors (ex. textile, food,chemical, cement, steel-making, paper, -------- ).

Cooperation of industrial sector and enterprises is needed to get
accurate data.
Generally speaking, it is difficult to get energy intensity figures linked tocost information directly from enterprises.
Accuracy of statistic data is different among countries concerned, sowe should accept some intent of compromise.

On the other hand, “Energy Intensity ” can be very useful tool for energy
conservation activity in factories/enterprises.
In Japanese enterprises, “in-house Energy Intensity” (not “governmentstatistical Energy Intensity”) has been utilized through “In-house Benchmark Activity ” or “Target Management Activity ”.
“government-statistical Energy Intensity” ----- the Energy Intensities inIndustrial Sub-sectors, which are calculated by the government based on
the national statistics, are rather difficult to use in factories because ofsome defects, for example, accuracy lack, difference of producing process
and product quality etc.
Generally, the in-house Energy Intensity is used as the bench-mark or thetarget value for EE&C improvement activities. ( For example the figure of“best in the past ” or “result of the previous year ” etc. are often used forthe in-house Energy Intensity. )From the view point of EE&C essence, these activities are welcomed to be
standardized as soon as possible and implemented popularly.
Practical activity of EE&C in factories/buildings is the base of nationwide
EE&C.

< usable information for bench-mark >International comparison of energy intensity
at integrated iron and steel works

index (Japan=100)

It is supposed that some kinds of revision are added to be effective for comparison.

160
140
120
100
80
60
40
20
0150

Ja

110

105

100pa

Konr ia

EU

120

125

U.

RuS.

A.

130

ss

Cia

hi

Cna

(l arge)

hina

(all)

Source: the Japan Iron & Steel Federation (information from Korea Iron & Steel Associationand the China Iron and Steel association, unofficial information from many companies )International comparison of energy intensity in other sub-sectors<heat efficiency at thermal power station (o/p electricity per i/p fuel)source: COMPARISON OF POWER
EFFICIENCY ON GRID LEVEL 2004 (ECOFYS), General Aspects for Demand & Supply of Electricity in Japan 2002 (ANRE/METI) >Japan

Scandinavia

100

93

U.K.

FranceGermany

92

83

83

U.S.A.

China

8274

<electricity intensity of manufacturing sodium hydroxide by dissociation method
source: SRI Chemical
Economic Handbook, Soda Handbook.>
JapanTaiwanKorea
china
U.S.A.
W-EuropeE-Europe100100104108113120123<energy intensity of paper and cardboard manufacturing
source: Japan Paper Association, American
Forest & Paper Association, Forest Product Association of Canada, Confederation of European PaperIndustries>
Japan
U.S.A.
CanadaSwedenGermany
100

144

135

124

<energy intensity of manufacturing cement clinker
Japan

W-Europe

100

130

Korea

Japan

Europe100

China

U.S.A.

Russia

145

152

177

178

source: based on hearing information from some factories>

Asia

130

N. America
140<energy intensity of aluminum plate rolling
Japan

World

100

127

source: CLIMETE CHANGE Mar.2002 (Battelle) >M&S. America

131<energy intensity at copper refining factory

52

160

S. America210

source: International Aluminum Institute>Attention: these information are disclosed non-official
base by associations and institutes, not by governments.

Trial to calculate the energy intensity
We can calculate “total energy consumption ÷ total crude steel production”
from the following data source:monthly of iron & steel etc. statistics (METI), andenergy balance tables in Japan (METI, estimated by EDMC),
Note: This statistics includes integral steel makers and electric furnace steel makers.
<these data are provided by the EDMC Handbook, the Energy Data and Modeling Center/ the Institute of Energy Economics, Japan>

5.5/ ton-steel
GGigacal / calton-steel

Trend of Energy Consumption Intensity in Iron & Steel Sub-sector
54.5

4

3.5

303

01

99

97

95

93

91

8987

85

83

81

79

77

75

73

71

69

67

65

Year

But, this information (Energy Consumption Intensity ) is not suitable for directuse, because it contains many disputable subjects.
to explain the reason in the next page.

Difficulties of “Energy Bench mark”<continued>

It is very difficult to use the statistical figures straightly for “Energy Bench mark”.
for example in iron and steel sub-sector (see the previous page),•Mixture of product species (ex. : conventional steel, special steel)•Variation in the share of product species (between years)•Change of product quality (consumer’s demand for higher quality )• Change of product value (change of monetary value)• Difference of producing system (integral steel making, electric furnace process) , etc.
So, the previous page’s information
Trend of Energy Consumption Intensity in Iron & Steel Sub-sector(total energy consumption / total crude steel production)< Giga cal / ton-steel >should not be utilized directly, because it contains many disputablesubjects above mentioned.
what is counter measure?

Following page’s statistics is useful to observe the energy intensity
trend of Japan by sub-sectors, because it is revised by IIP.

(IIP : “Indices of Industrial Production” This index
expresses overall productive activity. It is shown in % asbase-year 100%. It is based on the sum of production
weight-averaged by share of industrial production items
and revised by deflator/change of monetary value.) .

＜Manufacturing Sector＞
Trend of Energy Consumption Intensity per IIP by Sub-Sector< IIP : Indices of Industrial Production >Foods
Metals & Machinery
Cement & Ceramic
Iron & SteelPaper & Pulp
ChemicalManufacturing Industries (total)(FY’73=100)

120

Index

110
100
90
80
70
60
50'0 2'0 1'0 0'9 9'9 8'9 6'9 7'9 5'9 4'9 3'9 2'9 0'9 1'8 9'8 8'8 7'8 6'8 4'8 5'8 3'8 2'8 1'8 0'7 8'7 9'7 7'7 6'7 5'7 4'7 340
Fiscal Year
ECCJ

(Source: EDCM Handbook of Energy & Economic Statistics in Japan 2004)

In-house Bench-mark Activity in a factory
Bench-mark activity is one of improvement methodologies
and it is carried out for various improvement activities.
We call “Bench-mark” as “Target management” in Japan.

Bench-mark activity (target management activity) forenergy conservation
It is very effective because it is practically carried out
on the sight where energy is consumed.
(So, “Bench-mark Activity” have been promoted combined with
P-D-C-A circuit activity, sho-shudan activity, TQM activity etc..)-------------------------------------------------------------------------------< to establish a target value for improvement : >• Target Value is decided based on Bench-mark
T.V. = B.M.
T.V. = B.M.+ α
T.V. = B.M.- αororCandidates for Energy Bench-mark(energy intensity / energy unit consumption) :* actual value in own factory
best result in the past, result of the previous year, etc.
* actual value ? <outside own factory> --- non official informationin the competitive company, in the country, in the world, etc.

* theoretically calculated value* facility design value (nominal capacity value)* etc.

We usually use the actual value in own factory.

1st stage:

Improving activity for operation of Heat treatment furnace (line A)

Result of fact-finding: air/fuel ratio = 1.6, fuel gas intensity (unit consumption) = 0.34 Nm3/piece•<improving action> to change air/fuel ratio: 1.6(before) to 1.3(after),target value of fuel gas intensity (average): 0.31 (Nm3/piece)• <result of activity> fuel gas intensity (unit consumption): 0.34(before) to 0.30(after) (Nm3/piece)< Correlation graph, stratified >Fuel gas unit consumption< Histogram (Classification / stratification) >histogram of gas unit consumption
Comparison of gas unit consumption
7

0.45

g u s u n it c o n s u m p t io n N m 3 / p ic e

Av. 0.30 (after)

6

Fuel gas unit consumption

Av. 0.34 (before)

54(before improvement)◆ Air ratio = 1.6(N=20)

0.4

n0.35

3210.30.25

4~00 .4.4 7

0~00 .4.4 3

6~00 .3.3 92~00 .3.3 58~00 .2.3 1

4~00 .2.2 7

0~00 .2.2 3

6~0 .10 .1

90

gas unit consumption (Nm3/piece)(after improvement)■ Air ratio = 1.3(N=16)

0.2
45

50

55

60

65

70

pieces/day

They decided the energy bench-mark (fuel gas intensity) of line A as 0.30 (Nm3/piece) .

75

2nd stage:

Application of the activity results at line A for line B

They can utilize the bench-mark achieved in line A for various purposes.
for example,< in their own Heat treatment factory >the energy bench-mark (of fuel gas intensity) of this factory is 0.30 (Nm3/piece).
for operation standard (included in the energy management standard of the factory),

standard value (of fuel gas intensity) of the factory is 0.32 (Nm3/piece)Ex.
2* this standard value is usable for cost management annual-planning (P-D-C-A circuit) of the factory.

< at Line A >the bench-mark (fuel gas intensity) is0.30 (Nm3/piece)< at Line B >Ex.1

the bench-mark (fuel gas intensity) is0.30 (Nm3/piece)Ex.
3for advanced E-C activity,
the target value is 0.28

for starting E-C activity,
the target value is 0.40
( because operation rate of line B is lower thanthat of line A by 20% )Thank you

The Energy Conservation Center, Japan

Role of ECCJ
ECCJ is the core organization responsible for promotion of energy conservation. Its activities
were authorized by the Diet when the Energy Conservation Law was enacted.

for Execution of “Energy conservation Law”
Enterprises* Self-help efforts
Energy management(TQM, Kaizen sho-shudan)
R&D and Investment

SupportSupportivemeasures* Regulation & Support

Periodicalreport,
future plan

Service offering* Information(technology, law/regulation)* Training* Dissemination

Information
SupportSupervise
Information
offering

ECCJ* The bridge over both sides for implementing energy
conservation measures
ECCJ

Government(METI)

Order
Supervise

Information
Dissemination

Regulation forappliances etc.
Supportive
measuresCivil
sectorMain Activities of ECCJ
Industrial
sector① Dissemination (conference for successful cases of E-C
activities, excellent energy conserving equipment, etc.)② Technological development and spillover③ Energy conservation audits services for factories④ Education & training on energy conservation⑤ State examination for energy managers (assigned by the Gov.)

Consumer &Transportation
sector① Energy conservation audits services for buildings② Ranking catalogue for energy efficient appliances( dissemination of Top Runner Program )③ Promotion of Energy labeling system④ International Energy Star Program implementation⑤ Energy efficiency product retailer assessment system⑥ Dissemination of Energy conservation indicator “E-Co Navigator”⑦ Energy efficiency education at elementary and middle schools⑧ ESCO research and development

Cross sector① Energy conservation campaign & exhibition (ENEX)② Commendation (grand energy conservation prize)③ Information & data base, Publicity and publishing④ Survey and monitoring⑤ International cooperation & CommunicationsECCJMETI-ECCJ Collaboration Framework to enforce
Energy Conservation Policy and the Law in Japan
METI

METI

Agency for Natural
Resources & Energy
Secretariat

Resources & Fuel
Dept.

Power & Gas
Dept.

New Energy &EnergyConservation
Dept.

Policy PlanningSection

International
Cooperation
OfficeECCJ

Regional Bureaus of Economy, Trade andIndustry

International
EnergyEnvironment
CenterEnergyConservation
SectionRegional Bureaus
Hokkaido, Tohoku, Kanto, Chubu, Kinki,Chugoku, Shikoku, Kyushu, Okinawa( 9 regions)

New Energy
SectionCollaboration<collaboration>

ECCJ Branches
Hokkaido, Tohoku, Tokai-Hokuriku,Kinki, Chugoku, Shikoku, Kyushu ( 7regions)

Energy Environment

Technology
Dept.

PublicRelations
Dept.

Administration Dept.
Energy Management
Examination & Training
CenterECCJECCJMETI and the Related Organizations in Japanfor International Cooperation on the Energy Conservation
METI(Ministry ofEconomic, Tradingand Industry)

MOFA(Ministry ofForeign Affairs)
Agency for Natural
Resources & Energy
Secretariat

Trade andEconomic
Cooperation
BureauResources &Fuel Dept.

InternationalAffairs Section
New Energy &Energy
Conservation
Dept.

Power & Gas
Dept.

JICA
(JapanInternational
Cooperation
AgencyEnergyManagement
Examination &Training Center

ECCJ

PolicySectionTechnical
Cooperation
Division

EnergyConservation
SectionInternational
EnergyEnvironment
CenterEnergyEnvironment
Technology
Dept.

Incorporated
Government Agency
Regional Bureaus

ECCJ Branches
Hokkaido,Tohoku, TokaiHokuriku, Kinki,
Chugoku,Shikoku, Kyushu( 7 regions)

New Energy
SectionPublicRelations
Dept.

Administration
Dept.

ECCJ

JETRO
(Japan External
TradeOrganization)

Hokkaido, Tohoku,Kanto, Chubu, Kinki,Chugoku, Shikoku,Kyushu, Okinawa( 9 regions)

NEDO(New Energy
and Industrial
Technology
Development
Organization)
AOTS(TheAssociationfor Overseas
TechnicalScholarship)