2005 Achievement Report

International Project for Increasing
the Efficient Use of Energy
International Project for Improving Infrastructure
for the Efficient Use of Energy(Programs for Promotion of Energy Conservationin Major Industries in ASEAN Countries)

Report on the Results

March, 2006

The Energy Conservation Center, Japan

Preface
Recently, efforts to prevent global warming have been recognized as a challenge to be shared by
all humankind, while sustainable development of economy has been sought for. Mankind isfacing with the challenge of overcoming the two different conditions entirely conflicting eachother.
In order to get over these severe conditions, what are required are technical innovations such astechnologies to use energy efficiently with as little burden on the environment as possible andthe development of energy having little impact on the environment, etc.
In order to contribute to the balanced development of economy and environment in developing
countries, it is necessary to render support that is adoptable and appropriate to the respective
countries concerned based on the understanding of the actual condition of their energy use andenvironmental measures and on the results of in-depth surveys on the progress in developmentof infrastructure, living habits, etc.
Under these circumstances, we advanced to and worked on a new stage in this project as thesecond year followed by 2004 that aimed to strengthen the infrastructure for implementing andpromoting energy audits and improvement plans, on the strength of the achievements of theenergy audits and energy audit skills transfer programs that we implemented in 10 ASEAN
counties regarding one selected industry per country during the past 4 years, 2000~2003.
For an effective tool to help achieve such an aim, we carried on to create the Technical
Directory and Database/Benchmarks/Guidelines by business category.
In the meanwhile, as the activities to strengthen the infrastructure for the mentioned
implementation and promotion, we conducted follow-up surveys on the factories that were
subject to energy audit in the past to check the progress in the practice of the recommended
improvement plans and also walk through energy audits in other factories to ensure the transfer
of energy audit skills. In 2005, the factories that received our follow-up survey and walkthrough energy audit included that of the garment factories in Cambodia, the steel factories in
Philippines, a pulp & paper and a textile factory in Indonesia and a cement and beverage factoryin Brunei Darussalam. Furthermore, we held seminar and workshop in each country, inviting
people from the government agency or factories of different categories of industries in countries
other than the host country to make a report on their successful energy conservation cases sothat information could be shared in the ASEAN region and the foundation of promotion
activities could be provided. In the seminars and workshops, the concept and development
policy regarding the creation of the Technical Directory and particularly database by category ofindustry were discussed, and a concrete example as a part was shown off.
We believe it is very meaningful that as the result of the activities for the second year in the
project, we could achieve the above objectives and create steadily the bases of the promotion ofenergy conservation in the new stage.
We hope that this project will contribute to energy conservation in the industrial sector andenvironmental protection in the respective ASEAN countries so that they can eventually achieveenvironment-friendly and sustainable development in economy and also that this project willserve as a bridge of technical exchange and friendship between Japan and the countries
concerned.
March, 2006
The Energy Conservation Center, Japan

Contents
Preface
Summary
Abbreviation List
I.

Purpose and Background of the Project .....................................................................Ⅰ-1

II.
1.
2.

Cambodia (Garment Industry)....................................................................................Ⅱ-1
Outline of Activities ...................................................................................................Ⅱ-1
Follow-up Survey of the Garment Factory of Company A ........................................Ⅱ-4
2.1 Outline of Factory of Company A.........................................................................Ⅱ-4
2.2 Outline of the Results of Previous Energy Audit on Garment Factory
Owned by Company A..........................................................................................Ⅱ-6
2.3 Follow-up Energy Audit........................................................................................Ⅱ-7
2.4 Results and Discussion of the Investigation ........................................................Ⅱ-8
3.
Walk-through Energy Audit of the Garment Factory of Company B.......................Ⅱ-16
3.1 Visit of the Garment Factory of Company B ......................................................Ⅱ-16
3.2 Advice and Recommendations for EE&C Activities ..........................................Ⅱ-17
Follow-up Survey of the Garment Factory of M&V International
4.
Manufacturing Ltd. .............................................................................................Ⅱ-18
4.1 Outline of Factory of Garment Factory of M&V International
Manufacturing Ltd. .............................................................................................Ⅱ-18
4.2 Outline of the Results of Previous Energy Audit on M&V3 Garment Factory
Garment (Knitting) Factory ................................................................................Ⅱ-20
4.3 Follow-up Energy Audit......................................................................................Ⅱ-20
4.4 Results and Discussion of the Investigation ......................................................Ⅱ-22
5.
Seminar and Workshop.............................................................................................Ⅱ-26
5.1 Summary .............................................................................................................Ⅱ-26
5.2 Results of the Seminar Workshop .......................................................................Ⅱ-27
Ⅲ.
1.
2.

Philippines (Steel Industry) ........................................................................................Ⅲ-1
Outline of the Activities .............................................................................................Ⅲ-1
Follow-up Survey of Rolling Mill Factory of Company C ........................................Ⅲ-4
2.1 Outline of the Rollimg Mill Factory of Company C.............................................Ⅲ-4
2.2 Outline of the Results of the Previous Energy Audit on Company C ...................Ⅲ-5
2.3 Follow-up Energy Audit........................................................................................Ⅲ-8
2.4 Results and Discussion of the Investigation........................................................Ⅲ-14
3.
Energy Audit of Rolling Mill Factory of the Orimary Steel Corporation. ...............Ⅲ-17
3.1 Outline of Factory of Rolling Mill Factory of the Plymary Steel Co.. ...............Ⅲ-17
3.2 Suggested Energy Conservation Measures for the Rolling Mill Factory............Ⅲ-19
3.3 Follow-up Energy Audit......................................................................................Ⅲ-20
3.4 Results and Discussion of the Investigation........................................................Ⅲ-21
4.
Seminar and Workshop.............................................................................................Ⅲ-29
4.1 Summary .............................................................................................................Ⅲ-29

i4.2 Results of the Seminar Workshop .......................................................................Ⅲ-30
Ⅳ.
1.
2.

Indonesia (Paper/pulp and Textile industry)...............................................................Ⅳ-1
Outline of the Activities .............................................................................................Ⅳ-1
Follow-up Survey of the Pulp and Paper Mill of PT KERTAS LECES.....................Ⅳ-3
2.1 Outline of Pulp and Paper Mill of PT KERTAS LECES ......................................Ⅳ-3
2.2 Summary of the Results of the Previous Energy Audit of
PT KERTAS LECES Pulp and Paper Mill............................................................Ⅳ-5
2.3 Follow-up Energy Audit......................................................................................Ⅳ-13
2.4 Technical Discussion and Recommendations .....................................................Ⅳ-19
Walk-through Energy Audit at the Patal Grati Spinning Mill of3.
Industri Sandang Nusantara...............................................................................................Ⅳ-31
3.1 Visit to the Patal Grati Spinning Mill..................................................................Ⅳ-31
3.2 Advice and Recommendations for EE&C Activities ..........................................Ⅳ-34
3.3 Recommendations for Improvement and Expected Effects................................Ⅳ-35
Seminar and Workshop.............................................................................................Ⅳ-40
4.
4.1 Summary .............................................................................................................Ⅳ-40
4.2 Results of the Seminar Workshop .......................................................................Ⅳ-41
Ⅴ. Burnei (Cement Industry and Food Processing Industry) ..........................................Ⅴ-1
1.
Outline of Activities ...................................................................................................Ⅴ-1
2.
Follow-up Survey of the Cement Factory of Butra Heidelberg
Cement (BHC).....................................................................................................................Ⅴ-3
2.1 Outline of the Cement Factory of Butra Heidelberg Cement (BHC)....................Ⅴ-3
2.2 Outline of the Results of the Previous Energy Audit of BHC Cement Factory ....Ⅴ-4
2.3 Follow-up Energy Audit........................................................................................Ⅴ-6
2.4 Results and Discussion of the Investigation..........................................................Ⅴ-7
2.5 Status of Implementation by BHC ......................................................................Ⅴ-18
3.
Walk-through Energy Audit of the Beverage Factoryof Kingston Beverage & Creamery Sdn. Bhd. ..................................................................Ⅴ-20
3.1 Outline pf the Beverage Factory of Kingston Beverage& Creamery Sdn. Bhd.....................................................................................Ⅴ-20
3.2 On-site Walk-through Energy Audit....................................................................Ⅴ-21
3.3 Advice and Recommendations for EE&C Activities ..........................................Ⅴ-22
Seminar and Workshop.............................................................................................Ⅴ-31
4.
4.1 Summary .............................................................................................................Ⅴ-31
4.2 Results of the Seminar and Workshop ................................................................Ⅴ-32
Ⅵ.
1.
2.
3.

Activities and Efforts as ASEAN ...............................................................................Ⅵ-1
Outline of Summary Workshop and Post Workshop Discussions ..............................Ⅵ-1
Summary Workshop related Major Industry ..............................................................Ⅵ-3
Post Workshop Discussions......................................................................................Ⅵ-12

Ⅶ.

Reference Material .....................................................................................................Ⅷ-1
ECCJ activity schedulesiiQuestionnaires and answers of audited factories
Seminar-Workshop programs and presented materials at 4 countries
Materials for the Summary/Post Workshopiii

Summary
ASEAN counties are continuing to achieve dramatic economic development and their energy
consumption is anticipated to increase rapidly from now on. It will become vital to use energy
more efficiently and to give sufficient consideration to prevention of global warming.
This project has entered its 6th year. ASEAN Center for Energy (ACE), our ASEAN counterpart
and people concerned of the respective ASEAN countries are engaged in more and moreenhanced and substantial energy conservation activities, thereby contributing to gradually
spread change in the consciousness of the people in ASEAN countries toward the reduction ofenergy consumption, particularly with the increases in energy price resulting from the recent
soaring crude oil prices and the Kyoto Protocol put into force in the background.
The current year was positioned as the second year of the 2nd stage for making serious efforts to
put into practice and disseminate the results we have made to date by combining all theachievements we made in the projects of the phase-1, past 4 years and making further
self-supporting efforts. In other words, the 2nd stage aims to establish the infrastructure for
implementing and promoting practical improvements centered on improvement plans discussed
and proposed in the respective countries in the past, based on the achievements and results ofenergy audits conducted on factories of 10 different types of businesses in all ASEAN countries
over the past 4 years.
Specifically, the following activities were developed in 4 countries; Cambodia (garment
industry), Philippines (steel industry), Indonesia (pulp/paper and textile industries) and Brunei
Darussalam (cement and food processing industries).
• Follow-up survey on the factories that underwent an energy audit in the past and walkthrough energy audits on newly chosen factories
Intended for understanding of the problems lying in carrying out, promoting improvement
plans and the development of improvement measures• Creation of Technical Directory
Intended to introduce effective technologies usable in garment/steel/pulp & paper/cement
industries in ASEAN countries and also successful cases of the utilization of the respective
technologies for the purpose of information-sharing and enhancing the possibility of
implementation and dissemination of these technologies• Development of databases/benchmarks/guidelines
Intended to establish a scheme for setting numerical targets to advance energy conservation
activities and providing guide lines to achieve such goals
As an immediate task, the development of databases in 4 categories of businesses;
Garment/steel/pulp & paper/cement, is essential.
In the above mentioned countries, surveys including energy audits and seminars/workshops
were conducted. In the survey conducted in each country, guidance was given to the local
people concerned on the site again while the progress in their acquisition of energy audit skills-1-transferred from Japanese specialists in the past was confirmed so that technology transfer could
be further ensured. In addition, as it was found in the survey that some factories had notpracticed improvements as instructed, factors seemingly constituting impediments to theimplementation as well as solutions were discussed, which lead to create the clue for the
implementation and progress in the future.
In the seminar/workshop held in each country, in addition to the aforesaid discussions, people
from the governments and the factories including those of different categories of industry inother ASEAN countries (including people of the factories undergoing energy audit in the past)
were invited to join with the people of the factories of the countries concerned to report on theirrespective activities and the cases of practicing improvement plans. The seminar and workshop
held in each country had a large number of participants each, playing an important role in termsof information sharing and dissemination.
On-site activities of the project of the current year were commenced with Inception Workshop
held in late June 2005 (Same as the one for both Building and Energy Management
Infrastructure Development Projects).
In the Inception Workshop, for the purpose of smooth launching of the project, the action plan
was explained and finalized, and preparations for the activities at site were confirmed among theparticipants. Following that, surveys and workshops in 4 countries were smoothly completed by
December 2005, and topped off by Summary /Post Workshops conducted in late January 2006
(common with Building and Energy Management Infrastructure Development Projects).
In Summary Workshop/Post Workshop where delegates from ASEAN countries (Focal Points)
were present, reports on the activities and the results in the 4 countries, including those on the
ASEAN Benchmarking activities and the results, were made with the view to knowledge- andinformation-sharing, and discussions regarding the creation of Technical Directory and thedevelopment of database/benchmark/guideline for each country were held. Finally, the policy
for action plans for the project next year and in the future was discussed.
Specific details of activities of the major industry project for this year are as follows;
August 22-September 2, 2005 (Trip: August 21-September 3)
On-site activities in Cambodia and Philippines (Primary survey)
1. Follow-up survey on garment factories (Cambodia) and a steel factory (Philippines)
surveyed in the past, and a walk through energy audit of a newly selected factories ofgarment/Cambodia and steel/Philippines
Surveys on the factories were conducted and reporting of the results and discussions weremade in each factory.
2. Seminar-workshop in each country
40-60 people participated in each country and were engaged in active information exchange
through vigorous discussions. The policy for creation of Technical Directory and the action
policy regarding the development of database/benchmark/guideline proposed by Japan were-2-

approved in principle from the participants. The seminar- workshop was concluded
successfully.
(1) Energy conservation policy and program (each country and Japan)(2) Report on energy conservation cases by people concerned in major industries in eachhost country and other ASEAN countries(3) Discussions on the policy regarding the creation of Technical Directory(4) Discussions on the action policy regarding the development of database in each hostcountry
December 5-17 2005 (Trip: December 3-19);
On-site activities in Indonesia and Brunei Darussalam (Secondary survey)
1. Follow-up surveys on a pulp/paper factory (Indonesia) and a cement factory (Brunei
Darussalam) surveyed in the past and a walk through energy audit of a newly selectedfactories of textile/Indonesia and food processing/Brunei Darussalam
Surveys on the factories were conducted and reporting of the results and discussions weremade in each factory.
2. Seminar-workshop in each country
60-100 people participated in each country and were engaged in active informationexchange through vigorous discussions. The policy for creation of Technical Directory andthe action policy regarding the development of database/benchmark/guideline proposed by
Japan were approved in principle from the participants. The seminar- workshop wasconcluded successfully.
(1) Energy conservation policy and program (each country and Japan)(2) Report on energy conservation cases by people concerned in major industries in eachhost country and other ASEAN countries(3) Discussions on the policy regarding the creation of Technical Directory(4) Discussions on the action policy regarding the development of database in each hostcountry
January 26-27, 2006 (Trip: January 25-29)
Summary Workshop /Post Workshop
Participated in “Summary Workshop and Post Workshop on Promotion of Energy Efficiency
and Conservation (PROMEEC) (Major Industry, Building and Energy management),
SOME-METT Work Program 2005-2006” (Venue: Bandung, Indonesia, same as the one forbuilding and energy management infrastructure development)
Although delegates from Myanmar, Singapore and Vietnam were absent, about 22 people
including delegates of ASEAN countries and members of ASEAN Center for Energy (ACE) and
Energy Conservation Center, Japan (ECCJ) participated and had comprehensive discussions on
the items given below. After reports of local activities at 4 countries by ECCJ and evaluationand future improvement of local activities prepared by 4 countries we visited this time and on-3-the policy regarding and the progress in the development of Database/Benchmark/Guideline ineach country were made, lively and active discussions were held.
Although we confirmed that it remained our future challenge to make more efforts to improvemutual understanding of the specific ways of advancing these practical works, we could earnhigh evaluations from ASEAN countries on the results of our activities for this year and also
gain agreement in principle on the policy for advancing the project in the years to come.
Opening address (Delegates of the countries surveyed and the organizations concerned)
Summary Workshop
Session 1: Major industries- Activity report of this year/results and evaluations- Evaluation and future improvement of local activities- Country initiatives towards the preparation of TD and status / plan of Database
preparation- Status of preparation for TD and Database for major industries in ASEAN- Policy for approaches to be taken after next year.
Session 2: Buildings
Session 3: Energy management
Post Workshop
Session 1: Summary of discussions held in Summary Workshop for each project
Session 2: Basic implementation plan for years after next
In the current fiscal year, with an aim to support ASEAN countries in the establishment of a
firm foundation for developing continuous energy conservation activities, we improved the levelof our activities, requesting them to further make self-help efforts. As we could gain cooperationin our activities from all the participating countries, we successfully made significant results. On
the other hand, we recognized the necessity to gain further understanding of our improved
activities and build a system in each country so that they could fully respond to us. Thus, ourfuture task was clarified. At the same time, we appreciate such identification of our future issue
as a step forward in our activities, because it looked emerging when our project madesubstantial advance and results.
Finally, we hereby would like to thank all those at ACE along with the organizations andcompanies concerned in each country for their all-out cooperation.

-4-

Abbreviation list

EE&C

Energy Efficiency and Conservation

TD

Technical Directory

DB/BM/GL

Database / Benchmark / Guideline

ACE

ASEAN Center for Energy

METI

Ministry of Economy, Trade and Industry

ECCJ

The Energy Conservation Center, Japan

Cambodia
MIME Ministry of Industry, Mines and Energy, Cambodia
EE&S Office

Energy Efficiency and Standard Office

EDC

Electricite du Cambodge

DET

Department of Energy Technique

Philippines
DOE

Department of Energy

DOST

Department of Science and Technology

RE

Renewal Energy

MERALCO

Manila Electric Company (Old Name: Manila Electric Railroad and Light
Company)

ECPH

Training course of Energy Conservation for the Philippines held at June, 2005 in
Japan

FAS

Factory Automation System

WESM

Wholesale Electricity Spot Market

Indonesia
MEMR

Ministry of Energy and Mineral Resources

DIP

De-Inking Plant

BIO

Biotechnology

PM

Paper Machine

PLN

Perusahaan Listric Negara PERSERO (Indonesia Electricity Corporation)

KONEBAPT Konservasi Energi Abadi (Persero)

Brunei Darussalam
DES

Department of Electrical Services, Prime Minister’s Office

BHC

Butra Heidelberg Cement

Malaysia
PTM

Pusat Tenaga Malaysia（Malaysia Energy Center）

1

Ⅰ. Purpose and Background of the ProjectThis project generally aims to contribute to the promotion of energy conservation andenvironmental protection in Southeast Asian countries by helping promote energy
conservation measures in the major industries in the countries concerned through providing
support for activities on the ASEAN with the view to promote and disseminate technologies
for the efficient use of energy in the major industrial fields.
This project was set up in 2000 with ASEAN Center for Energy as the core organization,with the aim of reducing ever-increasing energy consumption in the industrial sectors in the
ASEAN region. ASEAN call this project PROMEEC (Major Industries). PROMEEC is anabbreviation of “Promotion of Energy Efficiency and Conservation” and a cooperative
project with Ministry of Economy, Trade and Industry certified by the conference ofministers of energy-related ministries of 10 ASEAN countries. We are providing support forthe promotion of energy conservation in the industrial sectors of ASEAN countries in the
aspects of technology and management through the activities of the project.
The project has the following objectives;
1. To deepen and strengthen the cooperative relation between ASEAN countries and Japanin the energy field
2. To promote energy efficiency and energy conservation in the major industries in
ASEAN countries.
3. To promote transfer of energy-related technologies of Japan and the introduction ofgood practice cases of energy conservation.
4. To raise the quality level of ASEAN countries through energy audits and OJT for energy
audit
5. To create Database/Benchmark/Guideline for energy audit in ASEAN countries.
The current year is positioned as a second year of the activities to be developed in thesecond stage, with the understanding that this cooperative project are advanced in the 3stages based on the discussions held to date with ASEAN countries including ACE.
Through the activities we developed in all ASEAN countries by March 2004 in the firststage, we could build a foundation for developing energy conservation activities on an equal
footing with ASEAN countries.
1st stage: Transfer of technologies and experiences from Japan to ASEAN countries(Completed in 2003)
2nd stage: Japan-ASEAN joint implementation of improvement plans in each country andpromotion in other countries
3rd stage: Promotion of energy conservation with independent efforts by ASEAN countries
Starting in last year, we began to create a basis for advancing implementation anddissemination of energy conservation based on the prepared foundation. In short, ourI-1

activities are centered at follow-up surveys on the factories that underwent energy audit in
the past, the creation of Technical Directory and the development of Database/ Benchmark/Guideline for each category of industry. In the current fiscal year, we developed suchactivities mentioned above targeting the garment industry in Cambodia, the steel industry inPhilippines, the pulp & paper industry in Indonesia and the Cement Industry in Brunei
Darussalam.
In the respective countries, we conducted follow-up surveys on the factories that underwent
an energy audit in the past to grasp the progress and the issues lying in the implementationof improvement plans and also OJT-based walk through energy audits of newly selectedfactories jointly with local people involved. In addition, we held seminar- workshop in
which we invited instructors from a government agency or factories of several categories ofbusiness in the host country and other countries to introduce successful cases of
implemented improvement plans and cases of cutting-edge energy conservation technology
to further raise the awareness of energy conservation among ASEAN countries. The concept
for promoting the creation of Technical Directory and Database/Benchmark/Guideline forthe use of each country and practical preparation activities were discussed and the future
direction was determined. These activities are intended to serve as the core work forestablishing the foundation for promoting energy conservation in the respective countries
subject to the survey and to establish networks to promote it to other countries.
In the end, we held Summary Workshop bringing together delegates of the respective
countries to share the results and achievements of the activities made in the respective
countries and to discuss the basic plan for future activities.

I-2

∐. Cambodia (Garment Industry)
1. Outline of the Activities

The follow-up energy audits of the companies that had performed energy audits in Phase I (Dec.
2002 and Feb. 2003) were conducted, and the Seminar-Workshop was held in Phnom Penh
(Cambodia), which involved the results of follow-up energy audits and the presentations onpractical examples for energy conservation in various industries.
This time, the energy audits were carried out in two garment factories as a follow-up and newly
walk through energy audit in one garment factory.
In the inception workshop held in June 2005, it was agreed that, starting this fiscal year, theMIME should play a leading role in conducting follow-ups and reporting the results. However,the ECCJ eventually had to have an initiative instead. Furthermore, the problems were that,when we visited two garment factories, questionnaires, which had been sent to the MIME via
the ACE prior to the visit, had not reached two factories. Therefore, it took long time obtaining
and confirmation of the answers.
Here, we describe two garment companies as “Company A” and “Company B” according to
demand of these companies.

1.1 Implementation Period
Aug. 22 ~ Aug. 26, 2005
1.2 Site of Implementation
Follow-up energy audit: Garment factories of Company A and M & V International
Manufacturing Ltd. (in Phnom Penh)
Walk through energy audit of a new factory: Garment factory, Company B (in Phnom
Penh)
Seminar-Workshop: Phnom Penh Hotel (in Phnom Penh)

1.3 Schedule (Material No. D-101E)
Aug. 22 (Mon.): Follow-up energy audit of the garment factory, Company A
Aug. 23 (Tue.):

Follow-up energy audit of the garment factory, Company A, andwalk through energy audit of a new garment factory, Company B

Aug. 24 (Wed.): Follow-up energy audit of the garment factory, M&V
International Manufacturing Ltd.
Aug. 25 (Thu.):

Follow-up energy audit of the garment factory, M&V
International Manufacturing Ltd.

∐ -1

Aug. 26 (Fri.): Seminar-Workshop

1.4 Relevant Persons
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Mr. Ivan Ismed: Project Officer
Cambodia: Ministry of Industry, Mines and Energy (MIME)
Mr. Lieng Vuthy, Deputy Director, Dep’t of Energy Technique (DET)Mr. Heang Bora, Head of Energy Efficiency and Standard (EE&S) Office, DET(Cambodia Focal Point)
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office
Mr. Nong Chhavyvann, EE&S Office, DET
Mr. Choun Teiea, EE&S Office, DET
Japan: International Engineering Department, ECCJ
Mr. Fumio Ogawa, Technical expert
Mr. Hisashi Amano, Technical expert
Mr. Hideyuki Tanaka, Technical expert∐ -2Situation of Cambodia(1) General circumstances- Area: 181,000 km2 (less than half of Japan)- Population: 13.661 million (2005)- Religion: Mainly Buddhism- Government: Constitutional monarchy- Economy: Key industries:

Agriculture, forestry and fisheries (33.4% of GDP)
Industries (26.3% of GDP) (Data from the Ministry ofPlanning, 2002)

GDP:

US$4.5billion (2004)

GDP per capita:

US$330 (2004)

Currency:

Riel, 1US$ = approx. 4,000 riel (as of 2004)

Trade (2002):
Export:Garment products, meats, vegetables, natural rubber,and rubber goods to the U.S., Germany, UK, Singapore
and Japan. (Exports: US$ 1.74 billion)

Import:Garment fabrics, machinery, vehicles, fuel fromThailand, Singapore, Hong Kong and China.
(Imports: US$ 2.48 billion)

Energy/GDP:

35kWh/per capita- General economic conditions: Decrease in foreign investments and proceeds of tourism
due to the Asian economic crisis, which slowed the economic growth rate temporarily.
After that, the country maintained steady growth rate ranging from over 5.5% to 7%
range. The third coalition government, which started in July 2004, has continuously
considered economic growth and industrial development to be the most important policy
goals. How to invite foreign direct investment may be a key to achieve the target in the
future.
(2) Current state of energy in Cambodia
In Cambodia, the hydro power in addition to the renewal energy is available; however all ofoil products are imported.
Electrification rate was 17%, electricity expense is US$0.15/kWh, gasoline price wasapproximate 3,500Riel/L and diesel oil was approximate 2,800Riel/L at the time of follow
up energy audit in 2005.

∐ -3

2. Follow-up Survey of the Garment Factory of Company A
2.1 Outline of Garment Factory of Company A(1) Company profile
Products:

Casual wear（Main product：T-shirts）

Production:

1.17 million dozens (results of 2001),
1.69 million Dozens (the actual results of 2004)

Payroll:

4,393 persons (Nov. 30, 2002), approx. 5,000 (Aug. 2005)

Working shift:

7.5 hours in two-shift system(6:15-14:15 (7.5 hours), 14:15-22:15 (7.5 hours)(2) Manufacturing process and energy consumption of the garment factory
The following are the previous situation of the factory and the follow-up results:
1) Outline of operation
Company A manufactures casual products, mainly T-shirts, under the management of theheadquarters located in Malaysia. This company founded in 1992 and started operation in
1994, exporting all of the sewn products to the U.S, EU and Australia.
Energy sources are electricity and oil products. The company has purchased electricity
generated by a diesel electric generator of Independent Power Producer (IPP) installed in its
own factory and in 2001 began to purchase electricity from Cambodian government-owned
company (EDC) as well. The factory consumes electricity from IPP from 14:15 to 22:15,
while it uses electricity from the EDC in another time zone. Such a method has been still
adopted at the time of investigation. What were changed are the use of tap water and steam
drain for water supply to a boiler, and use of blended oil of “Diesel & heavy fuel oil”
instead of only Diesel oil.
Figure ∐-2-1 shows a flow chart of the manufacturing process and utilization of energy in a
typical garment factory. Company A has adopted a similar manufacturing process.

∐ -4

Original cloth
Paper matrix
Cutting

SewingPutting on
buttons ＆fasteners

First
inspection

Ironing

Secondinspection

Labels &PackingLighting
Compressed
air

Steam
Shipping

Water

Electricity

Fuel oilFigure ∐-2-1 Flow chart of the manufacturing process andutilization of energy in a typical garment factory2) Facilities
Boilers:

No.1 boiler: Once-through boiler

783kg/hNo.2boiler: Once-through boiler

500kg/h (suspended)

No.3 boiler: Once-through boiler

300kg/h (suspended)

No.4 boiler: Once-through boiler

783kg/h (in operation)

Power receiving equipment:

22kV (Transformer: 22kV/400-230V, 1500kVA,

one transformer)
Air compressors:

No. 1 compressor = 12.95m3/min×85.9kW, reservoir tank 1m3
No. 2 and No. 3 compressors were removed.
No.4 compressor (New) = 75kW plus a reservoir tank 0.3m3

Other facilities:

Cutters, sewing machines, steam irons, lighting fixtures, airconditioners, etc.

3) Energy consumption
Table ∐-2-1 shows the production and each type of energy consumption of 2001 and 2004.

∐ -5

Table ∐-2-1 Energy consumption (2001 and 2004)
Items
Production(Dozens/y)
Energyconsumption

Casual wear

Energy Price

Improvement(2004/2001)(1.015)

IPP: 1,676,000
EDC: 2,170,000(Total=3,846,000)
0.169L/Dozen
3.287kWh/Dozen

2.906kWh/Dozen

0.884

Workers No.

4,400

5,000

(1.136)

Output perpersonFuel

266
Dozens/person/yDiesel oil
US$0.35/L
US$0.122/kWh338
Dozens/person/yDiesel oil
US$0.60/L
US$0.15/kWh

1.27

Fuel forBoilers(L/y)
Electricity(kWh)Electricity

1,170,000

2004
2,110,000×0.8=1,688,000(By subcontract: 20%)
Diesel Oil: 30,000
Fuel Oil: 171,000(Total = 201,000)
IPP: 1,356,000
EDC: 3,549,000(Total = 4,905,000)
0.119L/Dozen

Primary energy Fuel
unit
Electricity
Improved
skills2001

Diesel Oil:
198,000(1.443)(1.275)0.704(1.71)(1.23)

2.2 Outline of the Results of Previous Energy Audit on Garment Factory owned by Company A
The items suggested for improvement at the previous audit were as follows:(1) Utilize recycled drain from ironing process for water supply to boiler or for heating.
The recycled drain from the ironing process had not been effectively utilized, but justdisposed. Effective utilization of the drain will contribute to saving about 7 kL/y of fueloil.

(2) Heat insulation of the bare piping lay between boilers, steam headers and the factory.
Binding a 60m bare 40A pipes with a 30mm thick heat insulator can save about 7.2 kL/y offuel oil.
(3) Energy conservation by introducing a device controlling the number of air compressors inservice
Of the three air compressors (75kW: 1 unit, 37 kW: 2 units), 75kW type has always been in
operation and repeating a cycle of loading and unloading. Therefore, we suggested an
introduction of a system to control On/Off operation of multiple air compressors through the∐ -6use of the pressure of a newly installed reservoir tank. It was estimated to reduce about
113MWh/y.
(4) Energy conservation by relocating lighting fixtures
The cutting and sewing rooms are provided with both ceiling and pendant fluorescent lights.
By lowering the position of those pendant lights, the number of fluorescent lights can be
reduced. Reduction of about 47MWh per year is possible.

2.3 Follow-up Energy Audit
The energy audit team visited the garment factory for two consecutive days to conduct afollow-up energy audit of the improvement based on the previous guidance, and to examine
their new activities.

(1) Date of energy audit:
August 22 (Monday) 2005 at 9:00 a.m. - 16:00 a.m.
23 (Tuesday) 2005 at 9:00 a.m. - 12:00 a.m.

(2) Audit team members:
Cambodia:

Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director (only paid our respects in the morning ofAug. 22)
Mr. Heang Bora, Head of EEE&S Office, DET, MIME
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office, MIME
Mr. Nong Chhavyvann, EE&S Office, MIME
Mr. Choun Teiea, EE&S Office, MIMEJapan:

International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, TechnicalExperts(3) Attendees from the factory:
Administration Manager (only paid their respects in the morning of Aug.
22)
Account & Payroll Manager, Counterpart for audit team
Maintenance Supervisor(4) Outline of the follow-up investigation
When the energy audit team visited the factory of Company A, a questionnaire ECCJ had∐ -7

sent to the MIME prior to the visit, had not reached the factory. Although the factory wasvery cooperative to the investigation, the investigation efficiency was poor because they hadno time to prepare their answers to the questionnaire. The team conducted a walk throughenergy audit of the factory in the morning, Aug. 22, and made question-and-answer in theafternoon about production and energy consumption etc. The team agreed that some data
would be received next day because it took time. In the morning of Aug. 23, Audit teamvisited there again to receive the answers, audited again the checkpoints on job site andmeasured the temperature and illumination, etc.
Compared with the previous investigation of the factory (December 2002 and February2003), the production process (receiving textile stuff, cutting, sewing, ironing, packing andshipping) as well as operational methods were basically unchanged, but the production inquantity over 40%, and partial improvements (renewal of air compressors, improved air
conditioning system, recycling of steam drain, etc.) have already been made. As a result,primary fuel/electricity units significantly decreased, approximately 30% and 12% down,
respectively.
As for recycling of steam drain, they seem to have followed previous suggestion. Following
the suggestion about air compressors, they adopted a high-efficiency model. The steam
pipes have been partially insulated, but the lighting fixtures have been untouched.
Relevant technical explanations on this matter are shown in an attached document No.
D-116 “Follow up of Energy Audit EE&C Activities in Garment Industries, Cambodia”.
In addition, there were not any documents received from Company A.

2.4 Results and Discussion of the Investigation(1) Production status and energy intensity (Material No. D-103E)
Table ∐-2-1 shows data, while Figure ∐-2-2, ∐-2-3 and ∐-2-4 indicate the comparison
between 2001 and 2004. Production greatly increased from three years before, while theconsumption of fuels and electricity moderately increased, as a result, the energy intensity
was dramatically improved. The Counter part (C/P) of Company A pointed out thefollowing reasons:- Technical capabilities of employees were so improved that the production efficiency
increased, leading to a large growth in production. During the last three years, theproduction per person increased by 127%.
- Renewal of sewing machines every four to five years contributes to energy conservationand efficient production- Investment for energy conservation began to have effect as mentioned later.

∐ -8

Productions(k Dozens)

2,000
1,500
1,000
500
0
2001

2004
Year

250
200
150
100
50
0

Heavy oil
Diesel oil

198

171

0
2001

30
Year

2004

Power consumption(MWh)Fuel consumption(kL)

Figure ∐-2-2 Change in production (Comparison between 2001 and 2004）

6,000
5,000
4,000
3,000
2,000
1,000
0

EDC
IPP

2,170

3,549

1,676

1,356

2001

Year

2004

Figure ∐-2-3 Change in fuel consumption and electricity consumption

0.200

4.000

0.150

3.000

0.100

2.000
Electricity
Fuel

0.050

1.000

0.000

Electricity(kWh/Dozen)

Fuel(L/Dozen)(Comparison between 2001 and 2004)

0.000
2001

Year

2004

Figure ∐-2-4 Change in primary energy unit (Comparison between 2001 and 2004)(2) Energy management
C/P of Company A, in charge of accounting, well understood the importance of energy
conservation. However, the personnel in the factory as a whole were generally less aware of
its importance and did not grasp data sufficiently. On the other hand, production per groupwas shown on a white board. This suggests that a small group activity appeared to have

∐ -9

started.
The energy audit team highly evaluated C/P’s understanding of the importance of energy
conservation. It is expected him to set up a measurement system and develop persuasive
activities based on quantitative data.
The energy audit team obtained the results shown in Table ∐-2-2 through questions andanswers as well as on-site investigation to grasp each type of electricity consumption. In thefactory, the team checked specifications and the number of equipment, readout electric
power and consumption indicated by the electric switchboard, the control panel, etc., andestimated the consumption by taking into account the information obtained from the Q&A
sessions. The estimation would be helpful for participants in the MIME and C/P of
Company A.
In the future, it is necessary to grasp the kaleidoscopic changes quantitatively.
Consequently, the point at issue will become clear, and they must be able to take measures,
more easily.
Table ∐-2-2 Electricity consumption by purpose
Equipment
1

Sewing
Machines

2

Lightings

3

Air
Conditioners
Air
Compressors
Air Cooling
SystemOthers4
5
6

Estimation(1440 units)×(0.55kW)×0.5 = 396kW
Total No.: 360 pieces×4 factories
Operation Ratio = 50%
1926 units×0.08W = 154kW
Total No.: 321 pieces×6 factories
64 pieces×1.5kW = 96kW
1 piece×75kW = 75kW
One operating, one stand-by
Fan 40 pieces×0.75kW = 30kW
Pump 6 pieces×2.2kW = 13.2kW
40kW (Office, Elevator, Boiler pumps, etc.)
Total

Power
Consumption
396kW

Ratio
49%

154kW

19%

96kW

12%

75kW

9%

43kW

6%

40kW
804kW

5%
100%

(On the other hand, the total power consumption by readings of meterson panel was 840kW.)(3) Air compressors
In addition to No.1 compressor (BroomWade, 75kW), Screw Compressor (HISCREW 75,
75kW) manufactured by Hitachi Ltd. was newly purchased and installed about three months
ago and both were operated alternatively. The latter reduces required power by varying thenumber of revolution according to the change in loading. It operated steadily at the outlet∐ - 10pressure of about 0.5MPa at the time of energy audit.

No. 1 and No. 2 compressors had

been removed. Figure ∐-2-5 shows the present configuration of air compressors.

No.1 Compressor
BROOM WADE,
Screw type85.9kW (Input)

R.T
1.0m

100Hp
(75kW)

No.4 Compressor
HITACHI, JapanHISCREW75
Inverter control(New)

New factory

Old factory

100Hp(75kW)

R.T
0.3m3

Figure ∐-2-5 Configuration of air compressors
The compressed air was sent to the sewing process (the four sewing sections: each section
had about 500 sewing machines, half of which were those which feed thread cut by thecompressed air. At the inlet of each sewing machine, there was a regulator controlling theoutlet pressure at the setting of about 0.4MPa. Although ECCJ experts had suggested
improvements previously, the audit team again placed an emphasis on the following
matters:1) Decreasing the outlet pressure
The pressure of the regulator seemed higher than necessary, so we suggested that theyshould perform a test to find whether or not decreasing the pressure of the regulator would
create a problem. If the regulator pressure is decreased, the outlet pressure of the aircompressor can be decreased. This will lead to energy conservation. For example, when
the outlet pressure is lowered from 0.5MPa to 0.45MPa, the electricity consumption will
be decreased about 6%.
2) Looped piping
If the ends of the branched piping are connected in a loop to decrease the loss of pipingpressure, the distribution of the pressure in the factory can be leveled out and pipingpressure loss can also been reduced.
3) Prevention of air leakage
Check air leakage and repair a leaking place. The team insisted that it was difficult todecrease the amount of leakage to less than 5%, but possible to decrease it to 5% easily.
Decreasing the amount of leakage directly reflects electricity conservation. C/P of
Company A said that his superior had instructed him to consider the modification of thepiping of the compressor outlets∐ - 11

(4) Lighting fixtures
1) Improvement of the illumination in the workplace
ECCJ suggested that the position of lighting fixtures should be lowered in the workplaceat the previous investigation but they have not done it yet this time. Operations using
sewing machines belong to detail work, so insufficient illumination negatively affects
operation efficiency and reduces yield. The measurement of illumination at a considerably
dark place indicates 400Lux, which was a little low from the viewpoint of the JapaneseIndustrial Standards (JIS). Comparing with the standards, desirable illumination is about
800Lux.
The illumination is inversely proportional to the square of the distance. If the position ofpendant lamps is lowered by 500 mm as we suggested, the distance decreases from 1,800
mm to 1,300 mm, and the illumination becomes as follows:(1800／1300)2×400LX＝1.917×400LX＝767LX
This value almost satisfies the abovementioned standard. This should be considered
continuously. In contrast, in the rooms where additional fluorescent lights were installed ata lower position, the ceiling lights might be turned out. In addition, we thought it was
brighter than necessary near the windows, in the warehouses, and packaging and shipping
rooms. However, C/P of Company A explained such high illumination was necessary for
CCD-type surveillance TV cameras.
2) Installing refractors
By installing aluminum mirror refractors and specially coated refractors, actual
illumination can be improved. Figure ∐-2-6 shows the examples of improved reflectance.
In this case, a 1.5-times improved reflectance is obtained. Various types of refractors
attached to lighting fixtures are available and some of them are directly attached tofluorescent lamps.
3) Adopting high-efficiency fluorescent lights at the time of replacement
For fluorescent lights, the use of the Hf (high-frequency lighting lamps) enables further
energy conservation. Through the use of high-frequency lamps, various illumination
adjustment functions can be added.

∐ - 12

White painting refractor

６０％

Aluminum mirror refractor

Improved mirror refractor

light
７０％

９５％

Figure ∐-2-6 Examples of improved reflectance of lighting
4) Maintenance management of lighting fixtures
With the increase in light-up time, the light beam (brightness) decreases. For fluorescentlights, lighting for 5,000 hours decreases the illumination to 86% (80% after the
10,000-hour lighting). Furthermore, soiling causes a decrease in light beam. Light beam isreported to decrease to 85% after one-year lighting under ordinary conditions. Fluorescentlights decreases to 73% (= 0.86×0.85) in brightness after lighting for 5,000 hours in a year.
Therefore, you should clean fluorescent lights at least once a year and replace old lights
with new ones.

(5) Power of sewing machines
Many of sewing machines were made in Japan, and each consumption power was 550W.
C/P of Company A explained that they were replaced every 4 to 5 years and more effective
machines are introduced every time.
It was difficult to estimate the distribution as to how many percent of sewing machines
operate simultaneously, so we assumed that the distribution rate was 50% based on theabove calculation.

(6) Air conditioning facilities
Air conditioners in the shop floor were replaced with new ones adopting a new cold air
ventilation system about one and half years ago. The system works as follows: Exhaust fans
(40 units, 0.75kW each) are installed on the walls, and heat exchangers incorporating paper
corrugated plates (made in the U.S.) are installed on the air inlet side, or opposite side of thewall to drip water from the upper side, so that its evaporation latent heat directly cools theair. The dripped water is recycled through the return pipes and circulated again with water
pumps (6 units, 1.65kW each). We thought that this system was economical as a coolingsystem for a large room, but the working place did not produce comfortable environment∐ - 13

when considering the number of the workforce in the room.
On the other hand, there were air conditioners (64 units, 1.5kW each) in each room of theoffice. We suggested that they should increase the preset temperature (20℃).
(7) Boilers and steam piping
No.4 boiler (1,725 Lb/h), whose installation had been reported in the previous report, wasoperating.
They are adopting two-boiler system with No.4 and No.1 (manufactured by FULTON). The
recycle of drain, which was advised at the previous investigation, was already performed by
newly installing a drain tank about one and half a year before. The energy audit team foundthat steam was rising around the descending drain pipes at the top portion of the tank and,sometimes, water was overflowing and running down on the wall of the tank. On the other
hand, the valve for the piping to make up fresh water was manually shut. The temperatureon the wall of the tank was 80℃ or more at the top part and 60℃ or more at the lower part.
It was confirmed that the difference between these temperatures and the outside-air
temperature was big; therefore the device had effect. Under these circumstances, the teamadvised as follows:a. Prevent steam leakage by using a steam trap.
b. Automatically control supply of fresh water with level adjustment of the tank.
c. Insulate the whole boiler, the steam header, and the bare part of the piping.
d. Perform combustion control (Especially, the control of air ratio).
e. Consider heat recovery from exhaust gases.

(8) Management of the usage of electricity
The team explained confirmation of the installation of condensers for improving the power
factor of electricity and discussed for grasping power consumption.
In the electric distribution system in the garment factory of Company A, Watt-hour Meters
are installed in each principal workplace. The team recommended that they grasp theelectricity consumption using these meters. At the predetermined times, they get a readingof an integrating wattmeter and calculate the day-to-day difference so that they can grasp
the electricity consumption in each department everyday. Based on these data, a load curve(graph) per day is obtainable as shown in Figure ∐-2-7. Referring to Table ∐-2-2 as well, theelectricity amount to be reduced can be determined by analyzing the data. Especially, adecrease in nighttime consumption and peak consumption of electricity is cost-effective.
Instantaneous power can be found by the rotation speed of the disk in the Watt-hour Meter.

∐ - 14

Through these measures, they will know how to challenge other issues for energy

Power（ｋW）

conservation.

450
400
350
300
250
200
150
100
50
0
0

2

4

6

8

10 12 14
Time （h）

16

18

20

22

24

Figure ∐-2-7 Load curve (graph) per day of electricity consumption(9) Summary of energy conservation activities for the past three years through follow-up
investigation
For the four improvements for which ECCJ made suggestions at the previous investigation,
mentioned in 2.2, Table ∐-2-3 shows the survey results at this follow-up.
Table Ⅱ-2-3 Results of energy conservation activities performed on the items suggested for
improvement at the previous survey

Recommended Technology/Practice(1) Drain recovery from theironing process(2) Heat insulation for boilers,
steam header and bare piping(3) Introduction of control for
number of compressors inoperation(4) Improvement in lighting,changing the position of thelighting fixtures

Implementation Status of Implementation
Yes
No

Installing of water tank for drain
recovery.
Re-recommendation

Yes

Installation of newcontrolled by inverter.

No- Much investment cost
- Recommended to fix reflectors∐ - 15compressor

3. Walk-through Energy Audit of the Garment Factory of Company B
At the meeting in the morning of Aug. 23, the counterpart of Company A made a sudden
request, saying “Your advice and recommendations are very helpful. A new factory of anothercompany that belongs to the same group has started operation. So, would you kindly pay a
short visit there and tell us any points to be improved?” We discussed it with the MIME andaccepted the request.
We stayed the factory for a little more than one hour. First, we toured the factory and thenexplained the items to be improved for energy conservation.

3.1 Visit of the Garment Factory of Company B(1) Outline of our visit
Company B is a sister company of Company A.
Location:

Phnom Penh, Cambodia

Day of visit:

Aug. 23 (Tuesday), 2005, 12:30-13:45

Visitors：

MIME

Mr. Heang Bora (FP of Cambodia)

June Textiles

Mr. L.K. Shyan (Accounting & Payroll)

ECCJ

Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki
Tanaka (Technical Experts)

Person in charge in Company B: Factory Manager(2) Outline of the factory
The new factory of Company B located about a 30 minute drive from the factory ofCompany A or about 4 km from Phnom Penh airport, is built in a considerably large area ofa vast industrial park. The factory built for the first term has already started operation about
three months earlier. The factory appeared to be designed aiming at high efficiency and highproductivity based on the experiences of Company A. Working environment was far more
excellent than in Company A.
As the first term, the factory started operation with half of its capacity. The number ofworkers is presently 2,000 with two working shifts and will double to 8,000, and will
employ 10,000 in total including indirect department and other kinds of staff.
In Cambodia, there is another bigger factory owned by a company in Hong Kong. They said
that among a total of 200 garments manufacturing companies, this group is ranked within
the nation’s five largest groups.
1) Sewing process
In a huge building (about 50m×70m) with an appearance of the newest factory, it was a
grand sight that a large number of female workers were all working with sewing machines.

∐ - 16

The ceiling seemed to be about two stories high and for the air cooling system, “the air
cooling draft system by dripping water”, the same as that of Company A, was introduced.
Transparent vinyl sheets were hanging from the ceiling at intervals of ten meters, so the
airflow was limited within some meters above the floor of the working place. We felt the
airflow and found that it produced comfortable environment.
2) Ironing process
Like the factory of Company A, two pipes for supplying and returning steam were installed,
to which two flexible pipes with small diameter from each ironing machine were connected.
We could not find how drain recovery was performed, but the effective use of drain was notconducted at present.
3) Air compressors
Also like the factory of Company A, Screw compressors manufactured by Hitachi Co., Ltd.
have been installed. The outlet pressure was set at about 0.67MPa, a little high value.
4) Boilers
Fuel oils were used (there were the tanks marked as Petronas, a petroleum company in
Malaysia). The heat insulator was attached only to the bodies of the boilers but heatrecovery drain has not been performed. Headers were arranged in the near the boilers, andthe drain from the lower part of the boiler was discharged to the nearby street via the steam
trap, and a cloud of steam was rising.

3. 2 Advice and Recommendations for EE&C Activities(1) The working environment was very good because of the high ceiling and the air was
flowing etc. We felt that the air-cooling draft system worked well there.
(2) The fluorescent lights installed on the high ceiling of the warehouse were not appropriate interms of the characteristics of light distribution. We recommend replacement of them with
HID type ones.
(3) The air filters for intake of air compressors seemed to be frequently cleaned. We recommend
installation of intake duct to intake fresh air. The discharge pressure was a little high.
(4) Concerning boilers and steam piping etc., we made the same explanations as we made for in
Company A. Especially, we recommended early improvement in manual supply of water tothe tanks and effective use of drain.

∐ - 17

4．Follow-up Survey of the Garment Factory of M&V International Manufacturing Ltd.
4.1 Outline of the Garment Factory of M&V International Manufacturing Ltd.
(1) Company profile
Company name:M&V International Manufacturing Ltd. (Headquarters: Macao,
China.）

Factory name:M&V International Manufacturing Ltd.

M&V has four factories in Cambodia. This is the third factory (MV3).
Address:

No. 1623 Chac Angre Kraum, Phnom Penh, Cambodia
Tel: (855) 23-425 041

Products:

Knitwear (sweaters)

Production:

5.1 million (achieved in 2001), 8.3 million (achieved in 2004)

Employees:

3,000 (Nov. 2002), about 3,200 (Aug. 2005)

Working shift:

8 hours in one shift (7:00 - 11:00 and 12:30 - 16:30)(2) Manufacturing process of the sewing (knitting) factory and energy consumption
The results of this follow-up visit are described compared with those at the previous
examination as follows:

1) Outline of operations
The factory (MV3) manufactures only sweaters under the management of the headquarters
located in Macao, China. The MV3 did not have detailed data as previous investigation
because the headquarters control the organizations for production and the factory only
manufactured under the order of the headquarters.
M&V International Manufacturing Ltd. was established in 1994 and the MV3 factory
started operation in 1997. The annual production increased from 5.1 million (2001) to 8.3
million (2004). The production is mainly winter clothes, so production decreases in thewinter. All of the manufactured products are exported to the U.S.A., EU, etc.
Energy sources are electricity and oil products, and self-generated electricity by a diesel
generator is mainly used. Electricity for nighttime lighting etc. is purchased from the EDC(Electricite du Cambodge, a Cambodian government-owned company). For the boilers,
river water and heavy oil are used. The above-mentioned state hardly changed comparedwith that of the previous investigation three years ago.

Figure∐-4-1 shows a flow chart of manufacturing process of the sewing (knitting) factoryand of energy used.

∐ - 18

Original cloth(Knitting yarn)

Dying &
Washing

Knitting&
Linking

Washing& Drying

Putting on
buttons ＆fasteners

Secondinspection& Repair

Ironing

IroningFirst
inspection

Lighting
Labels &Packing

Steam

Shipping
Diesel oil
Electricity

Water

Fuel oilFigure Ⅱ-4-1 Flow chat of manufacturing process of the sewing (knitting) factoryand of energy used

2) Facilities
Boilers:

Generators:

No. 1 boiler

horizontal fire-tube boiler

4,200kg/h

No. 2 boiler

once-through boiler 1,560kg/h

No. 3 boiler

once-through boiler 783kg/h

No. 4 boiler

horizontal fire-tube boiler

6,000kg/h

Of three generators, No. 2&3 Diesel generators were operating
720kVA/unit

Power receiving equipment:

380V (no transmitter)

The facilities of the sewing (knitting) factory consists of dyeing equipment, washingmachines, dryers, sewing machines, knitting machines, irons, lighting fixtures, airconditioners, and water treatment facilities, etc.

3) Energy consumption
Table ∐-4-1 shows each type of energy consumption in 2002.

∐ - 19

Table Ⅱ-4-1 Energy consumption (2001- 2004)
Year

2001

Production

5.10

(100)

2003
6.50

(127)

2004
8.30

(165)

million pieces/y, and (ratio)
Energy consumption
kL/y

928

1,044

1,152

Light oil (for generation) kL/y

480

536

592

Electricity (purchased power) MWh/y214

unknown

unknown

Heavy oil (for boilers) L/piece (ratio)

0.182 (100)0.161 (89)0.139 (76.3)

Light oil (for generation) L/piece (ratio)

0.094 (100)0.082 (87)0.071 (75.8)

Heavy oil (for boilers)Primary energy unit

Unit price of energy
Heavy oil (for boilers)

US$0.25/L

Light oil (for generation)

US$0.35/L

Electricity (purchased power)

US$0.152/kWh

US$0.60/L

4.2 Outline of the Results of the Previous Energy Audit on M&V3 Garment (Knitting) Factory
The items suggested for improvement at the previous energy audit were as follows:(1) Heat recovery from exhaust gas of diesel engines
Install heat exchangers in the exhaust gas ducts of No. 2 and 3 diesel engines to generate
low-pressure steam (co-generation), which reduces the load on boilers, and fuels. This willsave about 28 kL/y of fuel oils.

(2) Enhanced heat insulation of bare parts of the steam piping
Installing a heat insulator to about 60m-long 25A bare pipes will save about 3.1kL/y of fueloils.
(3) Energy conservation by changing the installed position of lighting fixtures
In the cutting and sewing rooms, both fluorescent ceiling lights and pendant lights were
installed. We recommended that the ceiling lights be turned off because the turning off
hardly had effect on illumination. It was estimated to bring out a saving of 32MWh/y.

4.3 Follow-up Energy Audit
In order to conduct a follow-up to investigate whether the problems pointed out at theprevious audits had been improved or not, and what kind of new activities had beenpromoted, we visited the sewing (knitting) factory for two days.

∐ - 20We thought the M&W3 factory was not cooperative in the investigation, probably due tobusyness. A technical engineer who accompanied us spoke only Chinese, while a person in
charge of general affairs translated in English, Khmer and Chinese, but did not know muchabout technical terms, so the efficiency in communication was bad.
This factory did not receive the questionnaire either that we had sent to the MINE via ACE
prior to the investigation, so we could not obtain sufficient data in spite of our request. We
were told that only the headquarters in China grasped the statistic data. Consequently, weonly confirmed the production and consumption of fuels in 2003 and 2004. Furthermore,
we were prohibited from entering more areas than at the previous investigation. We only
saw the generators, boilers and passed by the yard for packaging and ironing. We justconducted a simple follow-up audit investigation for a short time.

(1) Date of the energy audit:
Aug. 24 (Wed.), 2005, at 9:15 a.m. - 10:30 a.m.
Aug. 25 (Thu.) 2005, at 9:00 a.m. - 12:00 a.m.

(2) Audit team members:
Cambodia: Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director
Mr. Heang Bora, Head of Energy Efficiency and Standard (EE&S) Office
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office
Mr. Nong Chhavyvann, EE&S Office
Mr. Choun TEIEA, EE&S Office
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora, Manager
Mr. Ivan Ismed, Project Officer
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts(3) Attendees from the factory (M&V3):
Mr. Shu Jin Fa, Maintenance Manager
Ms. Wen Ying Fang, C.O.C(4) Outline of the follow-up investigation
The main product of the factory is knitwear, mainly sweaters, in which there was nodifference both at the previous visits (Dec. 2002 and Feb. 2003) and this visit. At the∐ - 21

previous visit, we obtained data of 2001 and, this time, data of 2003 and 2004. These data
showed that production steadily increased, which was the main cause of a large decrease in
the primary energy unit. They didn’t seem to invest exclusively for energy conservation.
The number of enrolled employees was 3,000 in 2001 and presently 3,200, which showedno big difference.

4.4 Results and Discussion of the Investigation (Material No. D-104)(1) Status of production and primary energy unit
Table II-4-1, Figure II-4-2 and II-4-3 show energy consumption of the factory. Fuels (heavyoil) are used for boilers. Electricity consists of self-generated one by diesel generators withlight oil (the generation amount is proportional to the consumption of light oil for
self-generation) and received electricity (purchased one) from the EDC (Cambodian
government-owned company). During daytime, electricity necessary for production isself-generated, and only electricity consumed for the safety purpose during nighttime (9:00
p.m. - 7:00 a.m.) is purchased from the EDC.
The primary energy unit of both fuels and electricity significantly decreased, about 24%,

10,000
8,000
6,000
4,000
2,000
0

Heavy oil
Diesel oil

1,500
Fuel (KL)

Productions(k pieces)and it is mainly due to drastic growth of production.

1,000
500
0

2001

2003
Year

2001

2004

2003
Year

0.200

0.100

0.150

0.080
0.060

0.100

0.040

Diesel oil
Heavy oil

0.050

Diesel oil(L/piece)

Heavy oil
(L/piece)

Figure II-4-2 Change in production and consumption of fuels (2001-2004)

0.020

0.000

0.000
2001

2003
Year

2004

Figure II-4-3 Change in primary energy unit (2001-2004)∐ - 22

2004

(2) Management of energy
Due to an increase in production, the primary energy unit has been greatly improved as
mentioned above, but we had no impression that the factory’s system of energy
management was excellent. However, for electricity consumption, it seemed that the
instantaneous value of a control board meter was obtained several times a day as mentioned
below, but due to lack of explanation, it was unknown how they analyzed and used themeasurements. Relevant items are described below.
1) Seasonal change
The products are exported mainly to the U.S., etc.; accordingly demand varies withseasons. The production changes proportionally. The peak production period is from April
through October and other period is off-peak production period. Since there is a big gap
between the peak and off-peak periods (the number of employees in clock hours varies
with the number of enrolled employees), therefore, it is impossible to grasp the data
throughout the year only by obtaining instantaneous values of electricity consumption.
2) Change in electricity consumption during a day
It was in the peak consumption period. For example, the time-series values of electricity
measured yesterday (Aug. 24) varied as follows (The production was 30,000pieces.):
07:00 - 11:00

630kW (full operation)

self-generation

11:00 - 12:30

380kW (during lunch time)

12:30 - 16:30

630kW (full operation)

16:30 - 21:00

470kW (operation)

21:00 - 07:00

？

ditto

ditto
ditto

(Electricity consumed for the safety purpose,purchased power)

Figure II-4-4 shows a daily load curve (graph) based on the values read by this wattmeter.
This graph will enable to grasp general tendency of electricity consumption.

∐ - 23Power （ｋ W ）

70 0
60 0
50 0
40 0
30 0
20 0
10 0
0
0

2

4

6

8

10

12

14

16

18

20

22

24

Time （ h ）Figure II-4-4 Daily load curve (graph) of electricity consumption3) Fuel priceCompared with data in 2001, the price of fuels has increased. For the price of electricity,
the present price of light oil is US$0.6/L. If 1 liter of light oil could generate 4kWh ofelectricity, it costs US$0.15 per 1kWh.

(3) Heat recovery from exhaust gases of diesel engines
This heat recovery was not performed in the factory. We talked about the importance of heatrecovery to them this time, too, but their understanding was insufficient, so we had no
productive discussion. We told them that that was a challenge to be reviewed later.
For diesel engines, heat recovery is possible from exhaust gases as well as engine coolants.
The amount of heat recovery is almost equal to that of output. Operation of two generators
produces about 600kW of electricity; consequently 600kWh (2,1600MJ) of heat output isobtained. If the efficiency of a boiler is estimated to be 85%, it is equal to conservation of
95L/h (= 218kL/y).

(4) Boilers and steam piping
There were four boilers of A, B, C and D as mentioned in the previous report. The main
bodies were insulated. Almost all of the steam headers and pipes were already insulated.
Some valves and flanges were bare; therefore perfect insulation is desired.
“Recovery of drain” has been implemented previously, however whether they utilize it or
not is unknown.
The outlet pressure of steam was about 0.7MPa, and it may be necessary to determine
adequate pressure and temperature for the consumption side. A radiation thermometer read∐ - 24

109℃ on the surface of the external wall of pipes for exhaust gases.
(5) Turning off the ceiling lights (general)
Lights were not turned off in the ironing rooms, etc. On the other hand, the illumination on
the desks in the packaging process was 380Lux. It was a little dark but not an extremely low
level. We had heard at the previous investigation that they were attempting to turn off lights
during an intermission, and unnecessary lights. This time, we investigated only part of thefactory during operational hours. Therefore, the actual state in other parts of the factory was
unknown.

(6) Summary of the results of the follow-up investigation of energy conservation in the past
three years
Table II-4-2 indicates the follow-up investigation results of the three items of 5.2 whose
improvement was suggested at the previous audits.

Table II-4-2 Results of energy conservation activities performed in order to resolve the items
suggested for improvement at the previous audits

Recommended Technology/Practice(1) Heat recovery from exhaustgas of diesel engines(2) Heat insulation for boilers,
steam header and bare pipes(3) Lighting off the ceilinglights in all shops

Implementation Status of Implementation
No

Recommended again

Yes

Valves and flanges need to be
insulated.
Maybe OK(Yes)

∐ - 25

5. Seminar and Workshop

5. 1 Summary
The seminar and workshop was held on Aug. 26 (Friday), 2005.
Dr. Sat Samy, Under Secretary of State of Cambodia delivered an opening address, while
Mr. Tun Lean, Director General, General Department of Energy, MIME (Ministry ofIndustry, Mines and Energy) gave a closing address. Less than 60 serious people took partin the seminar and workshop. The fruitful meeting ended successfully.

(1) Date and Time
Aug. 26 (Friday)

8:30 to 16:50.

(2) Venue
Phnom Penh Hotel, 1F Crystal Ball Room, Phnom Penh, Cambodia(3) Reports presented on the Seminar and Workshop
A program attached separately shows the content of presentations. The participants of
Cambodia reported on the EE&C activities performed by the MINE. The participants fromASEAN countries made four presentations. For questions and answers, in-house translatorsof the MINE served between English and Khmer. (Material No. D-109)(4) Participants (List was not circulated)
Cambodia：
Dr. Sat Samy, Under Secretary of State
Mr. Tun Lean, Director General, General Department of Energy, MIME
Mr. Chan Socheat, Director, Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director, DET, MIME
Mr. Heang Bora, Head of Energy Efficiency and Standard Office, DET, MIME
Ms. Chum Sopha, Head of Research Office, DET, MIME
Mr. Ly Chamroeun, Vice Chief Officer of Energy Efficiency and Standard, DET,
MIME
Mr. Nong Chhavyvann, Staff, DET, MIME
Mr. Choun Teiea, Staff, DET, MIME

Rank-and-file 58 participants of Cambodia including ones from the Garment Industry,
and teachers and students of colleges (as told by Mr. Vuthy): We asked them to send

∐ - 26

us a list of participants as an electronic file within one week, but have not received ityet.
ACE (ASEAN Center for Energy):
Mr. Christopher Zamora, Project Manager
Mr. Ivan Ismed, Project Officer
Malaysia:
Mr. Nor Hisham Sabran, Technical Assistant, Energy Industry & Sustainable
Development, Division – MIEEP, Pusat Tenaga Malaysia (PTM)
Lao PDR:
Mr. Vanthong Khamloonvylayvong, Deputy Manager of Nam Ngum Hydropower
Plant, Electricite du Laos (EDL)
Indonesia:
Mr. Subagyo, Supervisor, Pencana dan Evaluasi Produksi, PT Kertas Leces (Persero)
Vietnam:
Mr. Le Tuan Phong, Official on Energy and Environment, Ministry of Industry,
Science and Technology Department
Japan: International Engineering Department, ECCJ
Messrs. Mr. Fumio Ogawa, Mr. Hisashi Amano and Hideyuki Tanaka,
Technical Experts

5. 2 Results of the Seminar and Workshop(1) Opening ceremony (speeches)
1) ACE
Mr. C. Zamora read the address of Dr. Weerawat, Executive Director of the ACE. Dr.
Weerawat emphasized that energy conservation was becoming more important in terms ofthat the price of crude oil recently reached an all-time high. Also, he talked about theactivities of the ACE under the PROMEEC project for major industries and building energy
control (including public recognition of an excellent case of energy conservation in abuilding) and told that Cambodia was the first country that worked on energy conservation
especially in the major industries in the four countries in this fiscal year.
2) ECCJ
Mr. Tanaka, Technical expert, made a speech on behalf of the METI and ECCJ, Japan. He
explained the meaning of this project, outline, resent state and Japan’s cooperation andcontribution to ASEAN.
3) MIME∐ - 27

Dr. Sat Samy, Under Secretary of State, gave a speech in Khmer. He emphasized reductionof the rising cost of oil by means of energy conservation to achieve competitiveness, andnecessity of further energy conservation and measures against global warming, by gaining
and utilizing new knowledge through a seminar. (English version was distributed.)
This ceremony was covered and filmed by the TVK (Cambodian TV) and the Cambodia
Daily (an English newspaper). After that, photographs were taken.

(2) The energy conservation plan and report on the activities
1) Overview of EE&C Activities in Cambodia- Mr. Vuthy, MIME (Material No. D-113)
Materials were written in English but explained in Khmer. Barriers pointed out four items
including lack of consciousness and unclear policies. We understood economic difficulties
in Cambodia concerning power generation using expensive imported oil and urgent
necessity of international cooperation.
2) Case Study 1 - Glass Industry, Malaysia - Mr. Nor Sabran (Material No. D-114)
A staff member of the PTM made a presentation instead of a technical engineer of the glass
factory. We saw the pride and capabilities of the PTM.
3) Case Study 2 - Hydropower Plant, Lao PDR - Mr. Vanthong (Material No. D-130)
Some new data was added to the content presented last year. We were impressed by that thedata since 1972 was shown in a graph in the documents.
4) Case Study 3 - Pulp & Paper Industry, Indonesia - Mr. Subagyo (Material No. D-115)
Audience seemed to be interested in explanation of fuel conversion (from heavy oil tonatural gas, and further to coal). However, the price of fuels deeply depends on thegovernment’s policy (subsidies or tax). It is needed to pay attention to differences insituation among countries.
5) Case Study 4 - Porcelain (Ceramics) Industry, Vietnam- Mr. Phong (Material No. D-125)
Updated data presented by the ECCJ last year: It was found that some of the items, whichwere pointed out or recommended again at the follow-up of last year, have been
implemented.

(3) Results of the follow-up audits

1) Follow-up Energy Audit Findings at Garment Factories - Mr. Bora, Mr. Amano (Material
No. D-116)
We had previously agreed that the members of the host country would play a leading role in
conducting a follow-up and make a presentation at the workshop. However, for Cambodia,
it was difficult in terms of the willingness and capabilities of the MINE. Therefore, ECCJ

∐ - 28

prepared Materials for this theme and asked Mr. Bora of the MIME to make a presentationof the first part (three sheets of slides) (He explained it in Khmer). Mr. Amano made apresentation of the remaining.
For the presentation of the follow-up, Company A asked us “not to reveal the name anddetails of the company.” So, concerning Company A and M&V, we were forced to make avague expression, such as “These things generally apply to garment factories in Cambodia.”
The audience (including many in the same trade) was greatly interested in this topic and wethought the presentation sufficiently satisfied their interest.
2) Barriers and Measures to implement EE&C - Mr. Ogawa (Material No. D-117)
Using the last year’s documents, he explained the topic, based on garment industries in
Cambodia as well as quoting the presentations made by other persons on the day.

(4) Workshop
1) Technical Directory - Mr. Tanaka (Material No. D-118)
He explained the purpose of TD, its preparation and format, etc. and presented examples inorder to give better understanding. Mr. Ivan was newly employed, so Mr. Zamora told
“ACE will be in charge of this matter from now on.”2) Database/Benchmark/Guideline for Industry - Mr. Ogawa (Material No. D-119)
He made a brief explanation on this topic because its priority was lower than TD and thegarment industry in Cambodia was not well developed yet.

(5) Q&A Session
At the ends of Session 1 and Session 2, a question-and-answer session was held. Many
questions were presented actively, but some of them were not appropriate for the workshop.
Followings are typical questions and answers:

Q: Which should cover a leading part, provider or user, in responsibility for promoting
energy conservation (EC)?
A: Both. In Cambodia, it is practical that the user side of energy makes efforts to reduce theconsumption of energy.
Q: What are the criteria when choosing the equipment for EC?
A: The technical directory (TD) will help you choose the equipment in the future, notpresently. It is because the TD is based on the users’ experiences, which is different froma manufacturer’s catalogue.

(6) Closing speech∐ - 29

The workshop ended after Mr. Tun Lean, Director General of General Department ofEnergy, the MIME, delivered a closing speech in English. (The handout was provided to theaudience.)∐ - 30

Ⅲ. Philippines (Steel Industry)
1. Outline of the Activities

We have held seminar and workshop that included follow-up energy conservation audit ofCompany C, with whom we have conducted Phase I (Feb 10-14, 2003), follow-up of Feb 2004 andFeb 2005 JETRO-JEXSA energy audit of Primary Steel Co. and presentation of examples of energy
conservation efforts in various industries in the Metro Manila, Philippines.
Actually, we will describe one company name as “Company C” according to the agreement at
Phase I.
Department of Energy (DOE) of the Philippine Government was to mandated to take the initiativein conducting follow-up energy audit and assessment reporting at Inception Workshop at
Philippines, June 2005, however, ECCJ had to have initiatives instead.
1.1 Implementation Period
Aug 29 - Sep 2, 2005

1.2 Site of IMprementation
Follow-up survey:

Rolling mills of Company C and Primary Steel Corp (Metro
Manila area)

Seminar and workshop:

Makati City (Metro Manila)

1.3 Schedule (Material No. D-101E)
Aug. 28 (Mon):

Sep.

Follow-up energy audit (Company C)

29 (Tue):

Follow-up energy audit (Company C), DOE visitation

30 (Wed):Follow-up energy audit (Primary Steel Corp)

1 (Thu):Follow-up energy audit (Primary Steel Corp), DOE visitation

2 (Fri):Seminar and workshop

1.4 Relevant Persons
ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Mr. Ivan Ismed: Project Officer
Philippine Government:
Department of Energy (DOE)

Ⅲ‐1

Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency Division（The Focal Point in the Philippines）
Mr. Michel Estrada, Energy Efficiency Division
Department of Science and Technology (DOST)Mr. Oscarlito Malvar, Science Research Specialist, Fuels and Energy Division
Ms. Rochell, Fuels and Energy Davison
Japan: International Engineering Department, ECCJ
Mr. Fumio Ogawa, Technical Expert
Mr. Hisashi Amano, Technical Experts
Mr. Hideyuki Tanaka, Technical Expert

Ⅲ‐2

Current Situations of Philippines(1) General- Area: 299,404km2 (80% of total area of Japan): Comprised of 7,109 islands- Population:

81.5 million (2003 World Bank data)- Religion:

Roman Catholics 83%, Other Christian Sects 10%, Islamic 5%- Constitution;

Constitutional Republican Form of Government- Economy:

Major Industries: Agriculture and Fisheries (Approx. 37% of the entire workforce)
GDP per Capita:

1,050 US dollars (2003)

Economic Growth:

4.5% (2003)

Currency:

Philippine Peso, approx. 2 yen (June 2005)

Trade (2003):
Export:Electronic, electric machinery and tools, transportationequipment to US, Japan, and the Netherlands: Export value
35.75 billion US dollars.

Import:Communications and electric machinery and tools,
electronic parts, heavy electric equipment for generation,etc. imported from Japan, US and Korea: Import value
37.45 billion US dollars- Economic Condition:

In gradual recovery since Asian currency crisis. Recorded GDP

growth rate of 4.5% in 2003: Government Objective of 4.2 - 5.2% was met. To
sustain growth, economic structural reform, elimination of budget deficit,
disposal of bad debts, and restoration of civil order are necessary to securepublic/international confidence in Philippine economy.
(2) Energy Situations
The self-supplied primary energy in Philippines was 56%, such as the renewable energy(RE), geothermal energy, hydropower and natural gases. Import of oil and gas was 44%.
The energy consumption in industry sector was 26.5Mtoe/y, 31% of total (2003).
The electricity price, varying in region, was US$0.12/kWh in Metro Manila in 2005. The
prices of gasoline and light oil were US$0.57/L and US$0.52/L each.

Ⅲ‐3

2.

Follow-up Survey of Rolling Mill Factory of Company C

2.1 Outline of the Rolling Mill Factory of Company C(1) Company profile
Established in 1966, and the rolling mill began operation with annual steel rod production
capability of 30 thousand tons, and later increased production capability to 90 thousand tons in
the old plant, M-II. Planning for a new mill on the present site (adjoining to the M-II site) of
360-thousand ton capacity was put in place in 1994 and production operation began in 1996. It
is one of major steel bar production companies in Philippines and all of its products are
consumed domestically.
Presented below are conditions at the time of the Phase I energy audit including the status at
the time of the follow-up visit.
Name of the Company: Company C
Location:

North of Metro Manila, about 1 hour by automobile

Products:

Does not use electric furnace; only rolling of purchased raw material
Steel bars (Diameter: 10、12、16、20、25、28、32、36、40、50mm)

Employees:

450 (of whom technical personnel 56)

Operations:Three shifts, 8-hours each(2) Facilities of the rolling mill and energy conservation
1) Operation
Because the mill uses all imported billets (raw material), exposing the production cost to theoverseas economic condition, the company is forced to make frequent adjustments inprocuring the raw material. At the time of the Phase I energy audit, the mill was in the midstof stop-operation of 1 week and maintenance operation, due to a lack of raw material. At thetime of the present visitation (Aug. 2005), operation appeared to be sound, as the company
has procured a large supply of Russian billets.
In the Philippines, the layout of rolling mills generally is in so-called cross-country type;however, the layout in this plant is in a simple straight line.

2) Facilities
Billet Yard:

Out of door, 2 gantry cranes

Reheating Furnace:
Type:

Walking beam, bunker oil burning with recuperator
Ⅲ‐4

Capacity:

65t/h max. 12mL billet

Burner:

Two-row configuration

Rolling Mill:

18-stand tandem, horizontal/vertical type, linear array

Incidental Equipment: Continuous quenching equipment, cooling bed, and automatic binder,etc.
Power Receiving Equip.:

Transformers: 4 units

Air Compressors:

6 units

Cooling water supply and water treatment:

1 unitAlso emergency power source, illumination and air conditioning as devices for rolling millfacilities were equipped.
3) Energy consumption
Relationship between output of the rolling mill and energy consumption is presented in Table
Ⅲ-2-1.

Table Ⅲ-2-1 Rolling Mill Output and Energy Consumption

Year
Output

2002

2003

2004

t/y

173,713 (100)

173,458 (100)212,103 (122)

Heavy Oil (for furnace)kL/y5,412.8

5,403.7

6,776.0

Electricity (rolling, etc)

MWh/y14,613

17,737

20,877(Ratio to year 2002)
Energy Consumption

Energy Intensity and ratio to year 2002
Heavy Oil (for furnace)L/t

31.16 (100)31.15 (100)31.95 (102.5)

Electrical (for mill, etc)kWh/t84.12 (100)102.26 (121.6)

98.43 (117.0)

In addition, the Mill uses LPG and oxygen (billet cutting) and diesel oil for emergency
private electric generator.
2.2 Outline of the Results of the Previous Energy Audit on Company C

Recommendations for improvement in the last energy audit were as follows:(1) Heat recovery in waste gas from the reheating furnace
For heat recovery in waste gas, a metal heating tube-type recuperator is used; in order to reduce
Ⅲ‐5the unit consumption of fuel further, installation of regenerative burners was recommended.
Since the regenerator in the regenerative burner system is heated by the exhaust gas of hightemperature as opposed to the recuperator uses the furnace exhaust gas, which has lost someheat in the preheating zone and ducts as the source of heat in heat exchange with the
combustion air, the former generates preheated air of higher temperature, raising the energy
conservation effect by 10 to 20%.
(2) Reduction of basic electric charge due to reduced electrical demandThis system sounds an alarm automatically when the actual maximum power (15-minutedemand value) is to be exceeding the target demand value, and restricts load on electricalequipment of lower priority (e.g., air conditioning) in order to regulate the values within thetarget demand value.
For instance, when power contract of 8,000kW are to be reduced by 500kW, assuming themean electric cost is around 5.5PHP/kWh, a cost-reduction of approximately US$26,630/ybased on the electric charge structure of this area will be feasible. Under this assumption, theinvestment for system installation is recoverable in approximately 1 year.

(3) Power factor improvement through deployment of MERALCO Receiving Power Factor
Enhancement System.
The mean receiving power factor for 2002 was 94.25%. When raised to 100%, about
US$22,560/y in power factor discount can be realized. Investment required may be recovered
in approximately 4 and half years.
Though demand power reduction or power factor improvement does not directly result inenergy conservation in the user’s side, such measures are beneficial for energy conservation of
the supplier of the power.
(4) Air compressor number control in operation
Change air compressor operation will be shifted from individually controlled system toquantitatively

controlled

operation.

However,

becauseactualoperatingcondition(on-load/un-load condition) could not be determined, estimation was not effected.
2.3 Follow-up energy audit

Visited the rolling mill factory of the Company C for 2 days of monitoring of implementation of
the Phase I recommendations and additional other miscellaneous activities.
Even though the first visiting day happened to be a State holiday and the mill scheduled to beⅢ‐6

closed, however, the corporate management acceded to DOE request and received the survey
team. In spite of the holiday, all of the necessary personnel was present and cordially received
the surveyors.

(1) Date of energy audit:

Mon, Aug 29, 2005 Company C Plant Visit (follow-up)
Tue Aug 30, 2005 Company C Plant Visit (follow-up)(2) Audit team members:
Philippines
Department of Energy (DOE)
Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency
Division（Focal Point of the Philippines）
Mr. Michel Estrada, Energy Efficiency Division
Department of Science and Technology (DOST)Mr. Oscarlito Malvar, Science Research Specialist, FED
Ms. Rochell, Fuels and Energy Davison （FED)
ACE (ASEAN Center for Energy)
Mr. Christopher Zamora, Project Manager
Mr. Ivan Ismed, Project Officer
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka,
Technical Experts,(3) Attendees from the factory:
Senior Manager, Quality Assurance, Safety and Environment (Leader ofEnergy Control Team)
Head of Electrical Maintenance and 2 Engineers
Head of Mechanical Maintenance and 2 Engineers
Engineer, Engineering Development
Three Engineers, Production
One Engineer, Energy Team Coordinator(Total 12 participants)(4) Outline of the follow-up investigation
On the first day of visit on August 29, after confirming the purpose of the present visit and theschedule with the receiving party, we have made rounds of the mill in order to see the present
status and to locate potential problems. In addition, we have discussed the questionnaire, which
Ⅲ‐7

has been mailed prior to the visit (Material No. D-105E). On the second day on August 30, we
have made rounds of the mill again and quantitatively monitored electrical equipment.
Subsequently, we have summarized our findings and presented them.
Because Energy Management Team was put in place only in May of this year, the results ofimprovement effort implemented since the last visit have been somewhat ambiguous, but they
were good enough to expect future improvements. We believe that achievements such as we
noted were due to Senior Manager’s visit to Japan as one of members for “FY2005 Trainee
Invitational Program under International Energy Use Rationalization Measures for thePhilippines (ECPH)” held in June, 2005.
Technical details of the present summary may be found in the attached “Follow-up of Energy
Audit EE&C Activities in Steel Industry, Philippines”. (Material No. D-126 (1) & (2))

2.4 Results and Discussion of the Investigation(1) Status of production and energy intensity
Figures Ⅲ-2-1, Ⅲ-2-2 and Ⅲ-2-3 are graphic representation of data in Table Ⅲ-2-1. The
growth of output of 2004 in comparison with that of 2002 was 22%. In terms of energy
intensity, the growth was close to none in fuel and electrical consumption increased by 21%(2003) and 17% (2004).
These figures alone are not revealing all the reasons; they are as follows:a. Energy intensity varies among products (steel bar size) due to difference in conditions of
production operation.
(Based on data on another rolling mill, it is reported that unit consumption of fuelincreases by 1.2 to 2.5L/t as the size of the steel bar decreases by one step.)b. Time lost in changing over the product size is disadvantageous in production of many
articles.
In order to make proper assessment of energy intensity, it is necessary to analyze each plant andproduct on a separate basis. This mill is accumulating the data on energy intensity of eachproduct, but lacked enough data to revise the above-described data.
During the round of August 29, the indicator for fuel unit consumption in the operation room
was showing the 27L/t level for continuous rolling operation of same size product (around 20
or 25mm).
During the last visit, the management stated that only the new mill was in operation at the time,
however, M-II (no visitation; about 300m away from the new mill) is operating during this visit.
The data for both mills are processed in this plant so that figures alone were not useful in theassessment.
Ⅲ‐8

Steel bar (t)250,000
200,000
150,000
100,000
50,000
0
2002

2003
Year

2004

Figure Ⅲ-2-1 Change in Output

FuelElectricity

Energy consumption(KL, MWh)

25,00020,00015,00010,000
5,000
0
2002

2003

2004

Year

Figure Ⅲ-2-2 Change in Fuel and Power Consumption

Energy intensity
120.0
100.0
80.0
60.0
40.0
20.0
0.0

30.0
20.0

Electricity(kWh/t)Heavy oil
(L/t)

40.0

Heavy oilElectricity

10.0
0.0
2002

2003
Year

2004

Figure Ⅲ-2-3 Change in Energy Intensity

Ⅲ‐9(2) Energy management activities
The Company has taken a step in May 2005 toward systematic activities in internal energy
conservation by organizing the Energy Management Team. The team membership consists ofrepresentatives of departments and meets on a weekly basis. The team leader is Senior
Manager as mentioned above.
The Company intends to make full use of training Senior Manager received in Japan in June
2005. As a starting point, the Company has decided to focus on “minimization of downtime
energy consumption and in ‘awareness-raising’ of employees in general toward energy
conservation.
(3) Furnace air ratio control and heat recovery from exhaust gas
1) Installation of regenerative burner
No action has been taken on this matter. The Company explained that fuel conservation of
the existing recuperator is 30% and apparently is satisfied with its performance.
In actuality, the temperature of the exhaust gas at the recuperator intake port is 700℃ andtemperature of the furnace air supply is raised from 30℃ to 350℃. Some times it reaches
400℃ (however, under these conditions, fuel saving should be in the 20% level at the
maximum).
While regenerative burner is effective, and installation of regenerative burner system byJapanese manufacturers is possible in newly constructed furnace, decision is a difficult one
because conversion is costly due to the equipment price and necessity for operational
shutdown during the period of conversion.
We do hope that Company C considers it important to keep the project on the agenda for the
future.
2) Internal air leak of the recuperator
While the air ratio is maintained at 1.1 in the upstream part of the recuperator, thedownstream oxygen level in the throat of the stack “is measured once a week; the oxygen
level is 5 - 7%” was the answer. When the intake air-oxygen ratio is 1.1, the oxygen level ofthe exhaust gas should be approximately 2%. This is a separate issue, however it is quitepossible that some air meant for fuel combustion is leaking into the furnace.
We attempted to measure the oxygen content in the exhaust gas but due to a problem with thesampling tube, the attempt was unsuccessful. As an alternative, we used the oxygen content
of the exhaust gas at the throat of the stack, the fuel oil component and the combustion air
ratio, and then estimated the amount of the air that may be leaking into the furnace. However,Ⅲ‐10since we have not determined the oxygen content at the air intake of the recuperator, wedisregarded air leakage at the billet charge and discharge ports, furnace body and ducts. The
result of the calculation indicated that, of the preheated air in the recuperator, leakage rate
into the exhaust gas was 17% when the oxygen content was 5% at the throat of the stack,
23% when the oxygen content was 6% and 28% when the oxygen content was 7%.
We expect the Energy Management Team to take this matter seriously and inspect therecuperator and repair any deficiencies it might find.

3) Consideration of the necessity of exhaust fan on the stack
We have doubts as to the effectiveness of the existing fan on the stack. Citing examples of
fan-less furnaces, we suggested review of the relationship of drafting capability with theheight of the stack and controlling of suction force on the exhaust gas by the use of a damper.
We pointed out that it might be possible to remove the fan depending on the result.
(4) Demand control (maximal power control) at the power receiving station
Recommendation was not implemented; however, it is true that reactivation of M-II altered thecondition and the issue needs to be reconsidered.
The electric power charge is composed of the combination of basic charge and metered charge.
The basic charge is imposed on monthly maximum power consumption measured in terms of
15-minute demands. The time period of 15 minutes is too short to render control by means ofmanned watch. Thus, deployment of automatic measurement system is appropriate andfunctional integration into the factory automation system (FAS) is recommended.
While it is conceivable to utilize the demand meter system recommended in the 2003 Phase I
energy audit, functional integration into the FAS that is a control system for production
facilities may be superior, in consideration for future expansion of the control functions.
On the other hand, daily power consumption control is also important. It may be implemented
on the basis of various power indications in the power distribution system.
The simpler approach is to read off various cumulative power consumption indications at thesame time period on a daily basis, calculate the differences with the readings of the previous
day and summarize the results by Department. This method would generate clues for further
approaches to energy conservation. Data so obtained could also be used to generate the dailyload curve of power consumption.
In order to obtain more detailed equipment data for examining energy conservation, power
measurements would be required.
(5) Improvement of power factor
Ⅲ‐11

A condenser was already installed directly after installation of the transformer. Therefore, effectgenerated by the power factor improvement on the loading side is limited to the improvementin ohm-loss in the power distribution line.
The Company indicated that they would take care of larger motors. In this respect, we havemade some calculations based on measurements made on August 30.
Transmission loss, W(kW) is approximated by formulas presented below:
W = Voltage drop rate×apparent power = (∆V/V) × (P/cos φ)where,∆V = Voltage drop rate, V = line Voltage, P = load power, cosφ = power factor, P/cosφ =apparent power
The results of the estimation are shown in Table Ⅲ-2-3.
Distribution loss due to pumps and compressors is below several percent of the load power.
Such values are within the allowable range and installing a condenser on the motor for the
purpose of improvement of power factor is not a wise policy.

Table Ⅲ-2-3 Load Measurements of Pumps and Compressors

Pump &
Compressors
Item

For Plant

For Cooling

For

For

Water Supply

Water

QuenchingCompressors(100hp)(75hp)

Water (200hp)(200hp)Voltage

(V)

453

447

433

437

Electric current

(A)

99.7

69.2

183.6

219

Load Power

(kW)

68.7

48.3

126.0

142.1

Power Factor cosφ

0.854

0.900

0.909

0.850

Transmitted Voltage V (V)

456

436

448

448

Load Side Voltage

(V)

453

447

433

437

Voltage Drop ∆V

(V)

3

9

15

11

∆V/V

0.66%

1.97%

3.25%

2.46%

Load Power / cosφ

80.4

53.7

138.6

167.2

(kW)

0.53

1.06

4.64

4.10

Distribution Loss/Load (%)

0.8%

2.2%

3.7%

2.9%

Distribution Loss W

Ⅲ‐12

(6) Energy conservation measures for air compressors
1) Reduction of number of air compressors in operation
No air compressor consolidation system was provided.
Company C has appealed that it would like to start working on the compressor issue withminor refitting (changeover of control valves, etc.) for rationalization of piping and work onsuch matters as revolution frequency in the future.
Company C air compressor configuration includes four 200hp and two 100hp units.
Difference in deployment number came about as a result of reactivation of M-II. When M-II
was inactive, all air compressors were moved to M-I for concentration.
At this point, we have described an approach to determine the required capability and focal
points in controlling the number of units of air compressor in operation in the following
manner.
While the air compressor configuration is four 200hp and two 100hp units, however, we
assume that actual operating requirement may be met with two 200hp and one 100hp units.
Calculate the actual load rate requirement in routine operation in terms of load time T1 andunload time T2 and apply them in the following formula for estimation:
Load ratio = T1/(T1+T2)
Compressor discharge rate = Load ratio × rated value
On the basis of the results of above calculations and rated output, assign main units for rated
operation and sub-units for load/unload operation. In operation control, customary approachis to use a unit number control panel, but it is possible to accomplish the objective throughadjustment of discharge pressure control values of each unit. By narrowing the range ofcontrollable pressure of the sub-units in comparison with the main units, they can serve as
load/unload units, respectively.
2) Determination of leakage and control measures
To facilitate this operational mode, it is necessary to locate leaks and repair the exit side ofpiping system. Company C side has told us that the company has “conducted piping
inspection based on the steps planned by the Energy Management Team approximately 2
weeks ago. Some 50 leaks were found”. In that case, it would be possible to lower thepressure on the exit side provided leaks are repaired.
In any compressed air system, invent in a newly installed system, there is generally leakageof 3 to 5%, exceed 10% as a function of aging and even reach 35%. Leaks principallydevelop in connecting parts of piping (corrosion of the flange, deterioration and developmentof gaps in the gasket, loosening of bolts, etc.), sealed area of devices (rubber or metal seal onan elastic body), slackening or break of the hose and incomplete closing of the valves.
Ⅲ‐13

Quantitative determination of leakage may be accomplished through measurement of loading
factor in operation of the compressor system when the mill is not in operation.
3) Placement of compressors
The air pressurized by the compressor is delivered with pressure to the terminal equipment
through piping and is subjected to loss of pressure and flow (leaks) under delivery.
Thus, needlessly distant delivery with pressure is not always warranted. That is, it is possible
to have an instance in which it is more effective in terms of energy conservation to set up
multiple independent compression systems according to the load.
In addition, other miscellaneous measures such as looping of branching pipes, placement ofreceiver tank in locally heavy loaded area, etc. is possible against loss of pressure. Timely
response is desirable.
4) Reduction of discharge pressure
The discharge pressure control of the compressor is set at a rather high level of 100 to 110psi(0.7 – 0.77MPa). Company C side explained that this high level of compression is needed tomaintain the terminal equipment pressure in M-II Mill, 300m far from compressor room. A
close study may reveal that it would be necessary to reinstall the compressors for M-II in theoriginal location.
In decreasing the discharge pressure of the compressors and determining the optimal values,
it would be desirable to first ascertain the pressure requirement of each unit before
decreasing the pressure. For instance, discharge pressure reduction from 0.7MPa to 0.6MPa
would result in power saving of approximately 8%.
Low-pressure load:

Pressure reduction by mean of reducing valve

High-pressure load:

Consider pressure increase by means of boosters

For example, air blow pressure for the cleaner can be low (approximately 0.3MPa),etc.
An abnormally high pressure of 0.85MPa was indicated on one of the receiver tanks. The
first step in data management is to conduct comparative examination immediately to do
calibration at abnormal meter readings.
5) Selecting the inverter unit (variable load-compatible type)A throttle valve generally affects capacity control of the screw type compressor and such acompressor consumes approximately 70% of rating under unloaded condition; partial load
property of the screw type compressor is not good. For this reason, as a sub-unit requiring
volume regulation, an inverter-controllable compressor is favorable. This topic must be on
the agenda in time of system renewal.
Figure Ⅲ-2-5 shows compressor characteristics and those under systematized operation.

Ⅲ‐14

Power consumpiton

Output control of compressor
100

80

Throttle valve control

Power consumption
60

Inverter control
40

Desirable control

100%
70%

Power saving
screw

INV-type

INV+台数制御
Number control in ope.

20

INV-type

M-type
100%

0
0

20

40

60

80

100

Load factor

Air consumption （％）

Figure Ⅲ-2-5 Operational Characteristics of Compressors(7) Miscellaneous energy conservation measures
a. Installation of heat resistant canvas on furnace doorb. Installation of additional wattmeter: Will be installed within this year.
(8) Summary of energy conservation activities of the past 2 years as of the Follow-up visit
Concerning status of the four measures of improvement proposed in the Phase I visit for energy
audit and other miscellaneous items described in 2.2, results of the Follow-up visit arepresented in Table Ⅲ-2-3.
(9) Energy conservation measures noted at the time of the DOE visit
Energy conservation issues noted at the DOE offices are as follows:
1) English translation of Japan’s “5S” was on display on the office wall. It gave us theimpression that such Japanese approach/spirit is spreading.
2) Two bulbs of the set of 3 bulbs in the fluorescent light fixture were taken out and a large
stainless steel reflector was installed in stead.

Ⅲ‐15

Table Ⅲ-2-3 Energy Conservation Activities Concerning Improvement
Measures Suggested at the Time of the Phase I Visit for Energy Audit

Recommended Technology

Adjudication

Status of Implementation(1) Heat recovery from thefurnace exhaust gas

Yes

By recuperator, the combustion air ispreheated at 350℃, and fuel saving isabout 20%.
But no studying for regenerative burnersystem.

(2) Demand control for theelectricity receiving/transforming equipment

No

Under studying the methods(3) Power factor improvement

Yes

Installed capacitor(4) Control of the aircompressors in service

No

Under studying- Re-arranging of control valves- Use of variable frequency drive(5) Insulation of heat
resistant cloth canvassfor discharging andcharging door of furnace(Yes)

Installed in September 2005.

(6) Installation of additional
KWH meters(Yes)

Installed within 2005.

Ⅲ‐16

3. Energy Audit of Rolling Mill Factory of the Primary Steel Corporation
Rolling mill of the Primary Steel Corporation is a newcomer as a subject for the energy audit under
our PROMEEC Project. Nevertheless, the energy audit visit for energy conservation guidance has
been made in February 2004 and February 2005 under the JETRO-JEXSA Project “The FY2004
Support Project for Establishment of National Steel Industry Energy Conservation Audit Programin the Philippines”, and as such it was a de facto follow-up visit, and after that, improvement has
been made somewhat. We were given the impression that the corporate management is enthusiastic
toward taking further action in improvement effort.
Mr. Go, Vice President and Plant Manager, has been a trainee member of the ECPH Program andvisited Japan in June 2005. His awareness of the necessity of energy conservation was clear andwas very helpful toward the visiting entourage.

3.l Outline of the Rolling Mill Factory of the Primary Steel Corporation(1) Outline of the Corporation
Former Dependable Metal Co., through merger in 1998, leased land and facilities fromKUMECO (Kudos Metal Co.) and began to manufacture steel rods for concrete reinforcement,rods, square rods and small angle irons.
The plant is one of medium scale in the Philippines and its annual production capacity is 240
thousand tons. The company has shown aggressiveness by adding 3 rolling stands to the rolling
facilities in order to increase efficiency in small steel rod rolling capability in 2004 andreplaced obsolete furnace heat recuperator.

Corporate Name: Primary Steel Corporation
Plant Address:

No.3 MGM Industrial Compound, Bagdaguin, Valenzuela City, 1442,
Philippines

Tel: 63-9-36-97-83(Located in northwest of Metro Manila, about 1 hour by automobile)
Products:

No electric furnace; rolling mill operation only (OEM rolling only),
Steel bars (mainly of 10, 12, and 16mm bars)

Employees:

200 (including 56 technologists)

Operations:Three 8-hour shifts(2) The Rolling Mill and Energy Consumption
We described data on energy conservation activities involving information on JEXSA Programof JETRO, in February 2004 and February 2005.
Ⅲ‐17

1) Outline of corporate operation
The current products consist of steel rods for concrete reinforcement and steel rods (10、12、16mm in diameter), square rods and small angle irons (20mm maximum), and these products
are manufactured on the OEM-basis from other corporations of the steel industry. For thisreason, clients deliver the raw materials into the mill and receive the finished products on site.
Thus, manufacturing operation of this company is simpler than independent rolling mills to theextent of the lack of row material procurement and product transportation.
In comparison with steel rods of larger size, small rods manufacturing is less efficient in rolling
efficiency and as a result higher in energy intensity. This corporation, consequently, isaggressive in cost-reducing efforts such as energy conservation and in its effort to expand its
involvement in smaller steel products other mills tend to avoid.

2) Facilities
Billet Pool: Outdoors, 1 unit gantry crane
Rolling Furnace

Pusher type bunker oil burning furnace
Capacity: 40t/h max. 6mL billet heating is possible
Burner configuration: Two-side in heating zone, axial type of burners
in the soaking area with exhaust heat recovery recuperator

Rolling Equip.

15-stand tandem, horizontal/vertical typeLine configuration except first two roughing stages in cross-country
configuration
Cooling bed, automatic binding unit and others

Power Receptor

Transformers:

4 units (34.5kV)

Air Compressors:

2 units (180kW)

Cooling water distributor and wastewater processor unit: one complete set
Miscellaneous items in the rolling mill including emergency power source, lighting andair conditioning and others

3) Energy consumption
Relationship between output of the rolling mill and energy consumption is presented inTable Ⅲ-3-1.

Ⅲ‐18

Table Ⅲ-3-1 Rolling Mill Output and Energy Consumption

Year

2002

2003

2004

2005 (1-7)

t/y109,687

133,981

120,344

55,615(Incr. over previous year)

(100)

(122)

(110)

(An. equiv.

Output87)
Energy Consumption
Bunker Oil (furnace)kL/yElectrical (rolling, etc) MWh/y

4,489

4,889

4,026.0

1,855

11,623.5

15,47013,975.5

6,541.5

Energy Intensity
Bunker Oil

L/t

40.93 (100)36.49 (89.2)

33.45 (81.7)

33.35 (81.5)

Electricity

kWh/t

105.97 (100)115.46 (109)116.13117.62 (111)(109.6)(Incr. over previous yr)
Energy Price & Transition
Bunker Oil

PHP/L

8.74 (100)10.73 (123)

11.89 (136)13.84 (158)Electricity

PHP/kWh

4.98 (100)5.56 (112)5.50 (110)7.08 (142)(Incr. over previous yr)
In addition, the Mill uses LPG and oxygen (for billet cutting) and diesel oil for emergency powersource equipment.
(1PHP = approximately 2 yen at Aug 2005)

3.2 Suggested Energy Conservation Measures for the Rolling Mill Factory
Recommended improvements up to 2004 comprised of the following items:(1) Increasing heat-recovery from furnace exhaust gas
For heat recovery of exhaust gas, a recuperator of metal tube for combustible air heating is inuse; however, the temperature of pre-heated air remains below 250℃ (max. 297℃). The
conceivable cause of inefficiency may be low temperature of exhaust gas at the intake port of
the recuperator at 600℃ and that the pre-heated air is leaking inside of the recuperator.
The low temperature of the exhaust gas may be attributed to effective transfer of exhaust heatto the billet within the preheating zone of the furnace, however heat is poring out of the billet
charging port of the furnace. Reducing this opening by half would conceivably reduce heavy
oil requirement by approximately 170kL/y. In addition, the furnace appears to be taking in air
Ⅲ‐19

at the billet discharging port; it requires considerable work to keep outside air from entering.
The furnace and ducts also require their heat-keeping capability to be raised. The combustible
air ratio of less than 1.0 means either the furnace is operating under the assumption of having tocompensate for considerable penetration of outside air or malfunction of the indicator.
Recuperator was replaced in July 2004, but penetration of the pre-heated air in the recuperator
was detected already in February 2005. Procedure in maintenance appears to require
strengthening, now and in future.

(2) Prevention of compressed air leaks
Personnel of the Primary Steel Corporation has tested the air leakage in about half of thecompressed air distribution piping and measured 12.1% of leakage loss. It means that the loss
is over 20% in the entire piping. For example, if this loss were reduced by 1%, the savings
would amount to approximately 80,000 PHP per year. Thus, we have recommended reducing
the current compression leak by over half with the objective of lowering to 5%.
(3) Implementation of demand control
The maximum electric power consumption in December 2004 was 4085kW and those of manyof the past months approached 4000kW. The mean monthly loading rate is low in the 50%
level.
We have therefore proposed that the Corporation install the demand meter. A concerted effort
of conservation by setting a maximum monthly level on the basis of monthly production
volume would achieve a considerable effect in reduction of the basic monthly power bill.
For example, an achievement of 1,500kW monthly reduction would result in the savings asfollows:
1,500kW×270.6PHP/kW×12month/y= 4,870,800PHP/y
3.3 Follow-up energy audit

We have made a 2-day visit of the Rolling Mill of the Corporation for the purpose of follow-up
energy audit of the status of implementation of recommendations made in the JEXSA visit andmonitoring of other activities.
Mr. Go, Vice President and the Plant Manager, has participated in the METI-ECCJ reception
training program (ECPH) of June 2005 as a trainee and was an avid believer in energy
conservation efforts. He stated that cost reduction achieved in 2004 exceeded 4 million pesos(PHP, Philippines Peso). Also, he is planning to achieve even greater savings this year. He wasvery cordial toward us, the visiting investigators.
Ⅲ‐20

(1) Date of the energy audit:
August 30, 2005 (Wed) Visitation of the rolling mill of Primary Steel Corp.
September 1 (Thu) Return visit of the rolling mill

(2) Audit team members:
Philippines
Department of Energy (DOE)
Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency
Division（Focal Point in the Philippines）
Mr. Eric Navarrete, Energy Efficiency Division
Department of Science and Technology (DOST)Mr. Oscarlito Malvar, Science Research Specialist, Fuels and Energy Division
Ms. Rochell, Fuels and Energy Davison
ACE （ASEAN Center for Energy)
Mr. Ivan Ismed, Project Officer
Japan: International Engineering Department, ECCJ
Messrs., Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts(3) Attendees from the factory:
Mr. Henry Go, Vice President – Operations (partially involved)
Mr. Ramon R. Mangibunong, Assistant Plant Manager
Mr. Noel, Electrical Engineer(4) Summary of the follow-up survey
Initially confirmed the purpose and schedule of the present visit and made the round of the site
to grasp the present conditions and possible problems. Subsequently we have discussed the
Corporation responses to the items in the questionnaire previously delivered by DOE (Material
No. D-106). On the second day, we have conducted electrical measurements of the aircompressors and measurements of oxygen content and temperature of the exhaust gas of thefurnace. Finally we explained the measurement results, and summarized the energy audit.
The technical discussions concerning this paragraph are shown in the attacheddocument, ”Follow-up of Energy Audit EE&C Activities in Steel Industry, Philippines”(Material No. D-126).

Ⅲ‐21

3.4 Survey results(1) Status of production and energy intensity
Figures Ⅲ-3-1, Ⅲ-3-2 and Ⅲ-3-3 are graphic representation of data in Table Ⅲ-3-1. The
output is variable from 2002 through 2005. This variability reflects the mode corporate
operation of production on the basis of consignment.
1) Heavy oil
Furnace fuel is heavy oil (No.6 Fuel Oil or Bunker Oil). Fuel tank of 100kL was used toreceive the fuel delivered by tankers. As shown in Table Ⅲ-3-1, the fuel prices rose byapproximately 36% during 2002 through 2004 and approximately 56% in 2005.
Unit consumption of the fuel has been improving each year. This improvement is attributable
to objectified management by means of unit consumption values by product; a variety ofconservational improvement measures effected as described below.
2) Electrical power
The unit consumption of the electrical power has been on the decline, which, according tocorporate explanation, is principally attributable to the increase in the consignment in productof smaller diameter and expansion of operation by additional installation of 3 rolling finishing

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000

Heavy oilElectricity

20,000
Energy consumption(KL,MWh)

Steel bar(t)stands (to total of 15 tandem stands).

15,00010,000
5,000
0

2002

2003

2004

2002

Year

Figure Ⅲ-3-1 Changes in Production

2003
Year

Figure Ⅲ-3-2 Consumption of Fuel andVolumeElectric Power
Ⅲ‐22

2004

120

40

115

30

110

20

105
Heavy oil
100
Electricity
2004
2005(to July)

10
0
2002

2003

Electricity(kWh/t)Heavy oil
(L/t)

50

Year

Figure Ⅲ-3-3 Changes in Energy Intensity(2) Energy control activity
In March 2005, “Energy Conservation Group” was organized in the following Departments.
i) Maintenanceii) Productioniii) Materials (warehouse, etc.)iv) Administration
The activities of these Groups are principally awareness rising of energy conservation, turning
off lights and air conditioners if not necessary and turning off equipment when the task iscompleted and other such miscellaneous items.
In addition, the Corporation is planning a program to perform energy-use audit (principally on
use of fuels and electric power) on a semiannual basis.

(3) Recovering heat from furnace exhaust gas
The existing recuperator had damaged tubing and other defects and the exit port temperatureof air for the fuel at the time of 2003 visit was low at 220℃. The replacement with arecuperator of same capacity in July 2004 raised the exit port air temperature to 245℃
(maximum temperature at 297℃). According to Primary Steel, “there is no more leaks after
replacement”; nevertheless, we took measurements of the exhaust gas temperature and oxygen
content at the intake and exit ports of the recuperator on September 1. The results are shownon Table Ⅲ-3-2.
The combustion air ratio (m) indicator located in the furnace control room was reading 0.92.
This value is doubtful; it is displaying either a compensated value to offset the air leaks or the
Ⅲ‐23meter is faulty. It is necessary that Primary Steel pursue the matter at a later date.
The exhaust stack was issuing a slightly smoky gas, however the oxygen content of theexhaust gas taken at the intake port of the recuperator (furnace exit port) indicated the levelindicative of good combustion condition within the furnace.

Table Ⅲ-3-2 Exhaust Gas Temperature and Oxygen Content
at the Front-end and Rear-end of the Recuperator

Item

Number ofIntake Port

Exit Port

DifferenceFirst time

606

324

282

( C)

Second time

586

321

265

OxygenFirst time

2.3

5.3

+ 3.0

Content (%)

Second time

2.0

4.4

+2.4

Sampling
TemperatureoMeasurements were taken at the temperature measurement openings at the front-end andrear-end of the recuperator. Since only 1 oxygen meter was available, we measured
temperature first followed by oxygen; thus, in all cases, oxygen and temperature were notsimultaneous measured.

Since the oxygen content level of the exhaust gas at the exit port was greater than that of theintake port by 2.4 – 3%, it was conceivable that combustion air was leaking into the exhaustgas inside the recuperator and, as a result, the temperature of the exhaust gas at the exit port
was lowered. From the measured oxygen content, the air ratio could be roughly estimated tobe resulted by air leak of approximately 17% to flow rate of exhaust gas. This level was
sufficient enough to be remedied from the standpoint of energy conservation. We have,accordingly, advised the corporate side “to take advantage of next plant closing to inspect therecuperator for air leaks.” In addition, we have demonstrated a method of calculating theexhaust gas flow rate on the basis of the characteristics of the fuel and to obtain an estimate ofleaked air.
(4) Improvement of furnace doors
Improvements of the following items have been completed:i) Fine adjustment of charging billets by installation of a winch at the billet charging portii) Installation of width-adjustable door on the billet discharging port

Ⅲ‐24iii) Improvement of sequencer on the insertion pusher side.
iv) Improvement of sequencer on the billet-discharging door: The door occasionallyremained open too despite the improvement. The corporate side explained that thecause was deformation of the billets and it was unavoidable.

(5) Temperature maintenance of the fuel heavy oilWith respect to fuel oil temperature, setting of 90℃ was raised to 110℃. In addition, we
strengthened insulation of piping and flexible tubing feeding the burners. With these measures,the corporate staff felt that spraying improved and combustion looked smoother (fuel oil
temperature was slightly higher than the temperature set in usual operation).
(6) Demand control of power reception
This item was not implemented. The corporate side admitted that the problem was beyond thelevel of staff capability in techniques and knowledge, and the cost was prohibitive.
The billing system for the electrical power consumption is composed of the combination ofbasic and specific duty charges. The basic charge is imposed on monthly maximum power
consumption measured in terms of 15-minute demands. The time period of 15 minutes is too
short to render control by means of manned watch. Thus, deployment of automatic
measurement system is appropriate for monitoring and requires integration into the FAS(Factory Automation System).
Daily power control is also important, however, this function may be implemented on thebasis of various power indications in the power distribution system. The simplest approach isto read off various cumulative power consumption indications at the same time period on adaily basis, calculate the differences with the readings of the previous day and summarize theresults by Department. This method would generate clues for further approaches to energy
conservation. Data so obtained could also be used to generate the daily load curve. In order toobtain more detailed equipment data for energy conservation, power meters would be
required.

(7) Energy conservation measures for air compressors
1) Energy conservation measures of priority- Reduction of leaks.
Currently, half of the system accounts for 12.1% of compression leaks. For the entire
system, the leak may exceed 20%. Thus, inspection and repairs are urgently required.
Institution of periodic inspection schedule is also advisable.
- Estimate the pressure requirement of compressed air and adjust the discharge pressure.
Ⅲ‐25

Pressure loss reduction in piping can be expected by looping of piping system andeliminating leaks (reduction in flow rate). Installment of boosters where high pressure isrequired must also be considered. In addition, consider whether there are other measures
to facilitate energy conservation.
2) Consideration of air compressor loading rate
There are 2 units of 250hp (186kW) air compressors installed and one of them is always inoperation (and the other in standby). Since it is constantly loaded and unloaded repeatedly, it
is conceivable that the compressor is a device of overcapacity.
i) Electrical measurements
In an effort to estimate the loading factor of the compressor, loading and unloading
time were measured and electrical measurements during periods for loading andunloading were made. Each measurement was carried out twice and the mean values
were adopted for calculation. Table Ⅲ-3-3 presents the result of measurements.
The measurements were taken when the compressor No. 2 was in line during the
production of 10mm reinforcing bars. Discharge pressure conditions for pressure
control were set at Pmax = 0.57MPa and Pmin = 0.54MPa.

Table Ⅲ-3-3 Electrical Measurement Results
Item

LoadedUnloaded

Time

(s)

9.715

5.69

Time Rate

(%)

63.1

36.9

Voltage

(V)

433.5

421.5

Current

(A)

337.5

232

Power

(kW)

216.5

149.5

Power Factor (%)

87.2

86.1

ii) Estimation of loading factor
Compressor output
Pout = 186kW×0.631 = 117.6kW
Compressor input as power consumption
Pin = 216.5kW×0.631 + 149.5kW×0.369 = 191.8kW
Proportion of power consumption when in full (100%) operation of Pin
191.8kW/216.5kW = 0.886 (88.6%)
Proportion of power consumption when in unload of Pin
149.5kW/216.5kW = 0.691 (69.1%)

Ⅲ‐26

iii) Estimation of optimal rate
Efficiency of the compressor may be expressed as a ratio of its output and input in thefollowing manner:
η = 117.6kW/191.8kW = 0.613 (61.3%)
When the ratio of the nominal output (186kW) and the output of full load (216.5kW)
as η100, then it isη100= 186kW/216.5kW = 0.859 (85.9%).
If the operational efficiency is 61%, installment of inverter type of air compressor isdifficult to establish as economically efficient. Thus, we have made a
recommendation to consider leak detection discussed above to determine themeasures to prevent diminution of air flow rate and pressure loss at the exit port andto consider installation of the inverter-controlled air compressors at the time of futureoccasion to replace the air compressors.
(8) Measures the Primary Steel Corporation has implemented
1) Installation of a compressor for use when the mill is shut down
In order to supply required compressed air during the period of mill shut down, theCorporation has acquired a small, 75hp air compressor (previously used unit) so that the larger
compressors may be turned off (Aug 2005).
2) Temperature control of air conditioner for offices
Issued a directive to the employees to turn off the air conditioning when not in use (as amatter of fact, we have noted that some of the thermostats have been set low).
(9) Miscellaneous
1) One of inappropriate practices we noted was that defective finished products were stacked atvarious places on the premises. Such a practice is serious enough to offset all the steadyefforts for energy conservation the Corporation has been accumulating over these years. We
have thus attempted to convince the corporate staff that the following efforts would bemeaningful while improving the product yield significantly contributed toward conservationof energy.
- Reducing down time
- Increasing productivity (reducing losses) - According to Mr. Ramon, the process yieldreached 95%, however, observation of the site gave us the impression it was actually
less. We feel that raising the product yield even by 1% is needed.
2) 5S of rolling operation electrical control room
When we looked at the electrical control room of the rolling mill, we were surprised by the
Ⅲ‐27

cleanliness of the room. Its cleanliness made us wonder that this was in a plant and gave theimpression that not a spec of dirt could be found in the room. Mr. Go told us that the staff
decided that they should have at least one thing that they could be proud of. We expect that
this movement would affect other units of the plant, and if it does, implementation of energy
conservation would become easier in this mill.
(10) Assessment of corporate energy conservation activities
Implementations of the diagnostic recommendations described in 3.2 as well as improvement
efforts conducted by the Corporation are shown in Table Ⅲ-3-4.
Table Ⅲ-3-4 Results of Corporate Energy Conservation Activity
Recommended Technology

Adjudication

Status of Implementation(1) Heat recovery from the furnace exhaust gas, and reheating furnace issues
a. To raise the preheating
air temperatureb. To maintain the recuperator
minimizing air leakage

Yes
Yes

c. To solves the furnace door
opening issue, and to maintainthe efficient combustion

Yes(2) Air compressor:
To minimize the air leakage(3) Demand control of electricity
receiving/transformer equipment

Yes
No

Ⅲ‐28

New recuperator was installed in 2004. Air
temp. is 245℃ from 220℃.
The worn out tubes end was closed.
Recuperator house-keeping isscheduled every month.
Lifting type cover was installed at charging
door. Discharging door opening time was
reduced by 3 seconds. Fuel oil temperature
was raised to 110℃ from 90℃ to attain theefficient combustion.
Air leakage is continuously monitored bymechanical maintenance.
Under feasibility study4. Seminar and Workshop
4.1 Summary
The seminar-workshop was held on September 2, 2005.
Mr. Matanog M. Mapandi, Assistant Secretary of DOE made the opening speech. The seminar
and workshop attended by 42 participants appeared to be meaningful to attendants and may beconsidered to be a successful one.

(1) Date and time
September 2 (Friday), 2005

8:30: Start of registration, 17:00: Closed(2) Venue
Second floor Yakal Room, Dusit Hotel Nikko, Makati City, Philippines(3) Reports presented on the Seminar and Workshop
The contents discussed in the workshop are shown in the attached program (Material No.
D-110). Representatives of the Philippines presented an overview of the DOE’s energy
conservation efforts and the Wholesale Electricity Spot Market (WESM) as well as 2
industrial-sector reports. ASEAN participants presented 3 reports but those of Indonesia andVietnam were repeated presentation of those reported in a meeting in Cambodia.

(4) Participants (List was not circulated)
Philippines:
Hon. Matanog M. Mapandi, Assistant Secretary, Department of Energy (DOE)
Mr. Marlon Romulo U. Domingo, Sr. Science Research Specialist, DOE
Mr. Eric Naovarette, Science Research Specialist, DOE
Mr. Oscarlito C. Malvar, Science Research Specialist, Dep’t of Science & Technology(DOST)
Ms. Rochelle Retamar, Science Research Specialist, DOST
Approximately 30 participants (number of attendance certificates issued, according to Mr.
Domingo) were representing the industrial sectors (including the steel industry) of thePhilippines. Presence of consultants was conspicuous among the participants (including
ESCO’s; some were former DOE staff members).
ASEAN Center for Energy (ACE):
Mr. Ivan Ismed, Assistant Project Coordinator
Ⅲ‐29

Malaysia:
Mr. Ghazali Talib, Energy Audit Engineer, Energy Industry & Sustainable Development
Division – MIEEIP, Pusat Tenaga Malaysia (PTM)
Indonesia:
Mr. Subagyo, Supervisor, Pencana dan Evaluasi Produksi, PT Kertas Leces (Persero)
Vietnam:Mr. Van Long, Official on Energy and Environment, Ministry of Industry, Science andTechnology Department
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Specialists
4.2 Results of the Seminar and Workshop(1) Opening ceremony (speeches)
1) DOE of the Philippines
Mr. Mapandi, Assistant Secretary of DOE made the welcoming speech. He pointed out that
consumers and industries ought to be conscious of energy conservation and that we all
required to faster our skills in conservation including technology and structures. He stressed
that, to achieve success in energy conservation efforts, cooperation within each of theindustries was mandatory and mutual support within ASEAN nations was required. He citedsteel, food and chemical industries of the Philippines as examples in which such cooperation
was taking roots.
2) ECCJ
Mr. Tanaka, representing the Japan side (METI and ECCJ) discussed the intended objectivesof the Project, its development, current status as well as the intentions of the government ofJapan concerning cooperation and contribution toward the member nations of ASEAN.
3) Asian Center for Energy
Mr. Ismed read the message from Dr. Weerawat, Executive Director of Asian Center for
Energy (ACE). The message stated that, in view of the sky rocketing petroleum prices, energy
conservation was increasingly important in the current world. The message specificallytouched upon the Program of the Promotion of Energy Efficiency and Conservation(PROMEEC).

(2) Session 1 Activities of EE&C
1) Energy Efficiency and Conservation Promotion Activities in Philippines
Ⅲ‐30

- Mr. Domingo (Material No. D-120)
His discussion included objectives, strategies, educational campaigns, energy managementadvisory services, demand-side management, the “Don Emillio Abello EE Award” and othertopics. Especially interesting was the introduction of the new DOE motto, the “EC Way ofLife” (the DOE staff was wearing the tee shirts bearing the new motto at the time of site
visits).
2) Energy Efficiency and Conservation Activities of Industries in Japan- Mr. Tanaka (Material No. D-121)
He described structural changes in energy consumption in Japan, historical review ofregulatory and administrative changes on energy conservation, efforts of Japan’s industries
toward energy conservation, Action Plan of Keidanren and many of the ECCJ activities. We
believe that these topics were helpful to participants as reference information.

(3) Session 2 Examples of EE&C activities toward the industrial sectors
1) Overview of Wholesale Electricity Spot Market - Mr. Fernandez (Material No. D-122)
He described the development of the Wholesale Electricity Spot Market (WESM) and what itmeans to the South East Asia and proceeded to state that WESM is becoming the new trend in
the Region. The talk we felt was very interesting.
2) Energy Efficiency and Conservation Best Practices in Chemical Industry- Mr. Veloso (Material No. D-123)
His talk centered on his successful effort to develop a method of producing cold water byapplying waste heat. Through his work with the RI Chemical Corporation he was successful inapplying Vapor Absorption method to produce cold water.
3) Energy Efficiency and Conservation Best Practices in Food Industry - Mr. Erestain
He spoke on examples of energy conservation through efficient lighting system and motors
but he spoke without any presentation materials, rendering understanding of his talk quitedifficult.
4) Energy Efficiency and Conservation Best Practices in Iron & Steel, and Food Industry,
Malaysia - Mr. Talib (Material No. D-124)
As a part of PTM (Pusat Tenaga Malaysia) activity, the government of Malaysia provides freeenergy conservation audit. In connection with this service, the author has visited plants of avariety of industries for energy audit and will summarize his experience herein. PTM has
acquired a variety of measuring equipment for the purpose of energy audit.
One of the steel industry cases, the Malayawata Corporation has an electric furnace and arolling mill in its organization and worked on many of the issues of the present workshop suchⅢ‐31

as those involving furnaces, compressed air, electrical power and cooling water, and the casecertainly would of interest to the participants of this workshop (many participants belonging to
the steel industry). In another example, in manufacturing addible oil (palm oil), the company
has shown us excellent results.
5) Energy Efficiency and Conservation Best Practices in Pulp & Paper, Indonesia- Mr. Subagyo (Material No. D-115)
The talk was identical to one presented in Cambodia.
6) Energy Efficiency and Conservation in Ceramic Industry, Vietnam- Mr. Long (Material No. D-125)
The talk was identical to one presented in Cambodia, but a different speaker presented it.
(4) Session 3

Results of the follow-up visits and the workshop

1) Follow-up Energy Audit Findings at Garment Factories- Mr. Domingo & Mr. Amano (Material No. D-126)
Concerning this theme, materials were prepared by ECCJ. Of the materials presented, Mr.
Domingo of DOE has taken initiative in the initial portion of the presentation (covering 3
slides) contributing the objectives of the ASEAN PROMEEC and its activities. Mr. Amano
presented the remainder. His presentation centered on the technical aspects of electric power
and furnaces, which appeared to have amply answered the questions of many of theparticipants.
2) Barriers and Measures to implement EE&C - Mr. Ogawa (Material No. D-117)
Using the data of the past year, he has skillfully described the current status whileemphasizing on its ramifications on the Philippines and answering many of the questions
posed by the workshop participants.
3) Technical Directory (TD) - Mr. Tanaka & Mr. Ismed (Material No. D-118)
They have explained the purpose, method of compilation, format and other details of technicaldirectory and illustrated their talk with many actual examples. Mr. Ismed presented theexemplary cases.
4) Database/Benchmark/Guideline for Industry - Mr. Ogawa (Material No. D-119)
Because of shortage of time, a short discussion of this item was presented and summarized.

(5) Q&A Session
Some questions were posed during presentations but this Q&A session was held at the end of
the workshop. The participants asked many questions, but perhaps because of presence of someexperienced consultants; they gradually turned into criticisms against governments. Most
Ⅲ‐32

frequent voices pertained to the invalidation of the energy conservation bill submitted by DOEof the Philippines due to the lack of action within the time limit after the legislation of specified
duration; they were urging the government (DOE and Department of Science and Technology)of the Philippines requiring more efforts.
Also numerous was the suggestion that the security protection requirements of DB/BM/GL
were impracticable and that data collection and analysis themselves (in major industries) were
too cumbersome.

(6) Closing speech
Ms. Teresita M. Borra, Director, Energy Utilization Management Bureau, DOE was scheduled
to give the closing speech but was unable to attend. Mr. Domingo, in her stead, gave the closing
talk.

Ⅲ‐33

IV. Indonesia (Paper/Pulp and Textile Industries)
1. Outline of the Activities
This survey includes a follow-up energy audit of PT KERTAS LECES, whose initial Phase 1energy-conservation audit was carried out from January 22-25, 2001, and a newenergy-conservation audit recently carried out on a spinning mill. A workshop was also held inJakarta, at which case studies of energy-conservation activities in various industries were reported.
1.1 Implementation period
December 5 to December 9, 2005
1.2 Sites of Implementation
Follow-up investigation:

PT KERTAS LECES, Paper Mill (Leces Village, Jawa
Timur District, about 120km southeast of Surabaya City)

New energy-conservation audit:

INDUSTRI SANDANG NUSANTARA (UNIT PATALGRATI) Spinning Factory (Jawa Timur District, about
80km southeast of Surabaya City)

Seminar workshop:

Jakarta City

1.3 Schedule (Material No. D-102E)
December 2005, 5 (Monday):

Follow-up energy audit (PT KERTAS LECES)

6 (Tuesday):

Follow-up energy audit (PT KERTAS LECES)

7 (Wednesday):

Follow-up energy audit (PT KERTAS LECES)

8 (Thursday):

Walk through energy audit (PT Industri Sandang Nusantara,
Patal Grati Spinning Mill)

9 (Friday):Preparation of report; visited PT KERTAS LECES toreceive information materials.

12 (Monday):Seminar workshop at Jakarta

1.4 Relevant Persons
ACE:
Dr. Weerawat Chantanakome, General Director
Mr. Christopher G. Zamora, Project Manager
Mr. Ivan Ismed, Project Officer
Indonesia:
Ms. Meryam Ayuni, Directorate General of Electricity and Energy Utilization, MEMR
(Focal Point of Indonesia)
Mr. Parlindungan Marpaung, Inspector of Electricity, MEMR

IV‐1

Japan:International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts

The background situation in Indonesia(1) General information about Indonesia- Area: about 1,890,000km2 (about 5 times that of Japan)- Population:

about 215 million (according to the demographic survey of 2003)- Religion:

Islam 87%, Christianity 10%, Hinduism 2%- System of government:- Economy:

Republic

Major industries: mining industry (petroleum, LNG, aluminum, tin), agriculture(rice, rubber, palm oil), industry (wood products, cement, fertilizer)
GDP per capita:$954 (2003)

Economic growth rate: 4.5% (2003)
Currency:rupiah, ¥1 = about 80RP (rupiah) (as of December 2005)
Trading (2003):
Exports:

petroleum and gas (25%), transportation equipment andparts (17%), textiles and clothing (12%), etc. are exported
to Japan (21%), U.S.A. (13%), Singapore (8%) (according
to Indonesian statistics). Total value of exports: $61.058
billion (according to IMF statistics).

Imports:

general machinery and transportation equipment (26%),
fuel and lubricants (24%), chemical raw materials andproducts (16%), etc. are imported from Japan (16%), China(12%), and Singapore (11%) (according to Indonesianstatistics). Total value of imports: $32.61 billion (according
to IMF statistics)- Economic situation: After the Asian Currency Crisis of July 1997, the Indonesian government
promoted structural economic reforms based on an agreement with the
IMF. The economy is now experiencing a recovery, supported by strong
private consumption and free from the supervision of the IMF at the endof 2003. However, domestic and foreign investments have not yet
recovered to the levels experienced before the currency crisis and, since
his election, President Yudhoyono has given the expansion of foreign
investment top priority.
(2) Energy situation
Oil prices have risen 10 times in the past five years, and the present gasoline price is US$0.5/L.
The cost of electricity is US$0.05/kWh.

IV‐2

2. Follow-up Survey of the Pulp and Paper Mill of PT KERTAS LECES
2.1 Outline of the Pulp and Paper Mill of PT KERTAS LECES(1) Outline of the company
The company was established in 1938 during the period of Dutch administration. The pulp andpaper operation was started on February 22, 1942, with the No. 1 paper machine. The company
was originally owned by a Dutch company, nationalized after independence in 1961, andprivatized in 1982. It now has five paper machines with a total production capacity of 570t/d.
Actual production is between 120 and 140 thousand tons per year.
The first energy-conservation audit (Phase 1) was carried out in January 2001. After this initialinvestigation, the company vigorously promoted energy-conservation activities and achieved
great success, with the results being reported at every PROMEEC Seminar. While the company
was very cooperative in the present investigation it was, however, apparent that they wereexperiencing business problems due to changes in the external economic environment. When wevisited, the plant was operating at less than half its capacity and several major facilities were
inoperative.
The situation during the first energy audit and the follow-up investigation were as follows:
Company name:PT Kertas Leces (Persero) Pulp and Paper Mill

Location of the plant:

Jl. Raya Leces, Leces, Probolinggo 67202, Jawa Timur – Indonesia
Tel: 632-62-335-680993 Fax.: 632-62-335-680954

Products:

Printing paper, industrial paper, tissue paper, news print paper,bagasse pulp

Production:

120-140 thousand t/yNumber of employees: About 3,150 (three eight-hour shifts with three groups of workers)(2) Facilities and energy consumption at the paper mill1) Outline of the operation
Although the production level was high during the first energy-conservation audit (Phase 1),
the present production level is very low due to the slump in sales of the operation’s major
products such as newsprint (about 40% of total output).
2) Facilities
Boilers for power generation:

90t/h × 4.484MPa × 5 units. Fuel was changed from heavy
oil to natural gas in 2003, and economizers have recently
been installed.

Recovery boilers:

40t/h × 4.59MPa × 1 unit & 45t/h × 4.48MPa × 1 unit
Liquor content = 43%

Steam turbines:

EBPT (back-pressure turbine) × 1 unit, output =19,400kW

IV‐3CT (condensing turbine) × 1 unit, output =19,400kW
ECT (extraction c. t.) × 1 unit, output = 27,000kW
Paper machines
No. 1 machine:

2,700mm × 125m/min (for cardboard liners: 30t/d)
Steam consumption: 0.6MPa steam × 3.5t/t-paper
Electricity consumption: 876kWh/t-paper

No. 2 machine:

2,700mm × 325m/min (for industrial paper and writing
paper: 60t/d)
Steam consumption: 1.25/0.6MPa steam × 3t/t-paper
Electricity consumption: 695kWh/t-paper

No. 3 machine:

6,000mm × 550m/min (for writing paper and printing
paper: 175t/d)
Steam consumption: 0.6MPa steam× 3t/t-paper
Electricity consumption: 810kWh/t-paper

No. 4 machine:

2,400mm × 900m/min (for tissue paper: 30t/d)
Steam consumption: 3.3/1.25MPa steam × 3.5t/t-paper
Electricity consumption: 1,528kWh/t-paper

No. 5 machine:

7,000mm × 750m/min (for newsprint paper, writing paper
and printing paper: 275t/d)
Steam consumption: 0.6MPa steam × 1.8t/t-paper
Electricity consumption: 684kWh/t-paper

Facilities for bagasse pulp
DIP (De-inking Plant: facility for de-inking)Wastewater treatment plant
Water supply pump:

11 units

Air compressor:

6 units

3) Amounts of energy consumption and energy costs
The production volume, energy consumption, and energy price are shown in Table IV-2-1 andTable IV-2-2.

IV‐4

Table IV-2-1 Production volume of paper and amounts of energy consumption

Items

Year

Production & Used Energy

Unit

2000

2005

Baggase pulpt14,876823

De-inked pulpt42,8650Paper productiont

135,717

114, 273

Energy source

toe/y

toe/y

Fuel oilkL/y147,832

143,397

5,184

5,028

LPG

kg/y

267,290297

00Natural Gas

km3N/y00951,149

81,464

Electricity

MWh/y219,628

143,669

Table IV-2-2 Energy price (US$)
Energy Source

Unit

Price (2000)

Price (2005)

Fuel oil*L

0.04280.3937*Natural Gas

3

mN

-

0.1228LPG

kg

0.1479-

Electricity**kWh0.02160.0501*

Excl. Transport Cost** Electricity only, average price, excludes steam cost to plant*** LPG used at PM (Paper Machine) #3 for Infrared Dryer up to Nov. 2001 and thenchanged to Natural Gas. Natural Gas was used at PM #3 and at the Power Plant, butsince 2003 PM #3 has no longer used Natural Gas.
2.2 Summary of the Results of the Previous Energy Audit of PT KERTAS LECES Pulp and Paper
MillThe following issues were pointed out in the previous energy audit as being in need of
improvement. It was noted that the “5 S’s” were not being enforced sufficiently.
(1) Measures for energy conservation in the use of boilers and turbines for power generation
The percentage in-house power generation at LECES Mill in 2000 was about 99%. Since theprice of heavy oil was US$43.5 (¥5,000)/kL, which was very inexpensive, the cost of in-house
IV‐5power generation was only $0.0052 (¥0.60)/kWh for extraction power generation and US$0.019(¥2.17)/kWh for condensing power generation.
The cost of condensing power generation was about half that of purchased power (RP315,840 =¥4.62/kWh for peak hours and RP263,200 = ¥3.85/kWh for night-time use). Therefore, any
further investment in electricity saving was not usually worthwhile. Furthermore, since thecondensing power generation had to be increased by about 0.45t/h in order to save 1t/h of steam,although the simply calculated steam cost was about US$3.78 (¥435)/t, the actual effect of any
saving was thereby reduced to little more than half this amount: US$2.09 (¥240)/t. This factindicated that any effective investment in further energy conservation was practically
impossible.
1) Currently, large amounts of steam are leaking from steam traps, valves, piping, and heaters allover the plant, and heat insulation and painted surfaces are not adequately maintained.
2) Reduction of wasteful operation of water supply pumps (BFP)
A total of four pumps (three BFPs for Stage III and a BFP for Stage IV) are currently inoperation. Although their design pressure is 6.85MPa (2.9m3/min), 6.MPa should be adequate.
Since the maximum load for pumps is 240m3/h or less, one or two pumps are sufficient in
operation (BFP: Boiler Feed Pump)
The actual loads on the pumps are 25, 25, 27, and 26 Amperes, respectively; making the totalload 889kW while the rated load is 36.5 Amps. If only one pump was operated, then 600kW
could be saved, and 390kW could be saved with two-pump operation. The conversion cost is
estimated at US$4,350 (¥500,000) for the 30m of 150A piping and two diversion valvesrequired.
3) Excessive blowdown water ― installation of drain filters
While the electrical conductivity of the supply water is only 0.788mS/m, the blowdown wateramounts to 15% of the average volume of supply water used for the four evaporators. The
heat contained in the superheated blowdown water corresponds to 4.67t/h of steam and all thisheat is currently wasted. Since the specified maximum electrical conductivity of circulatingwater for boilers operating at a pressure of 5.0MPa is 80mS/m, (according to JIS B
8223-1977) the amount of blowdown can be reduced to about 1% (= 2.5t/h) for all four
evaporators, even if the electrical conductivity of the supply water is kept at the present valueof 0.788mS/m.
LECES Mill has an excellent water purification system that provides pure water with anelectrical conductivity of 0.5mS/m or less. However, the electrical conductivity of thecondensate can be up to 0.788mS/m. Installation of drain filters would prevent any resultant
damage to the boiler tubes.
Total cost for the installation of drain filters and changeover of piping: US$261,000 (about¥30 million).
Although the average temperature of waste gas can be as high as 214.2℃, waste heat can berecovered down to about 130℃ since the sulfur content of the heavy oil used at LECES Millis low as 2.5%. However, the price of heavy oil, about ¥5,000/kL, is already so low, as
described above, that it is effectively impossible to invest in further energy conservation.
IV‐6

By taking the measures described above, it is expected that the heat efficiency of this boiler
plant could be improved up to about 93%.
4) The temperature of the steam generated by the boilers is low.
It can be seen from the daily logs that the steam pressure is kept stable between 4.4 and
4.5MPa, but the two-day average values of steam temperature for No. 1 to No. 4 boilers are425, 435, 445 and 405℃, respectively, showing fluctuation among the individual boilers. The
temperatures of No. 1 boiler and No. 4 boiler are particularly low. By raising the temperaturesof No. 1 and No. 4 boilers by 10℃ and 30℃, respectively, the amount of power generated
would be increased by 7kW/t and 2kW/t, respectively.
Steam condensate would also decrease by the following amounts:
No. 1 boiler

2kW/t × 54.6t/h/200kW/t = 0.55t/h

No. 4 boiler
7kW/t × 39.5t/h/200kW/t = 1.4t/h
This would result in about 2t/h in total. Therefore, a profit of about US$60,400/y (= 2t/h ×8,000h/y/11.5t/kL × US$43.4 (¥5,000)/kL, or about ¥7 million/y) could be expected.
5) Extraction pressure of the turbines is too high.
In spite of the fact that a steam pressure of 0.25MPa or less is sufficient for the evaporators
and all the other facilities, except for PM2 (No. 2 paper machine), the Yankee dryer of PM4,
and the digesters for the bagasse pulp, the pressure at the LP steam header is set at 0.5MPa.
Since drain attack is not a concern because the extraction steam is sufficiently superheated,
the pressure could be decreased to 0.4MPa or less (although it would be necessary to checkwith the manufacturers as to the blade strength, thrust bearings, etc. first). This would increase
the extraction power generation by 10kW/t × 50t/h = 500kW, decreasing the condensation
power generation by about 2.5t/h. A profit of US$75,480/y (= 2.5t/h × 8,000h/y/11.5t/kL ×
US$43.4/kL, or about ¥8.7 million/y) could be expected.
6) The exhaust temperature of the condensing turbines and extraction condensing turbines is toohigh.
The values of 59-62℃ for the condensing turbines are too high and even those of 39-46℃
for the condensing extraction turbines are relatively high. The water used is cooled in cooling
towers but the temperature of the cooling water can still be up to about 33℃ because theaverage ambient temperature is 30℃ and average ambient humidity can be as high as 65%.
As a result, exhaust temperatures can rise to about 42℃. On the other hand, the temperatureof the fresh water is about 27℃ throughout the year, which is comparatively low. Since about
700m3/h of fresh water is used, it would be desirable to heat the fresh water using part of theoutput from the condenser tubes.
In addition to the increase in power generation, 10% or more can decrease the amount ofcondensate because the efficiency of dewatering is improved by the rise in temperature of theshowering water used for the paper machines.
Since the fresh water has a high level of hardness and contains TDS, particularly SiO2, stains
on the tubes may cause a problem. It is necessary to carry out periodic flushing or to provide
automatic cleaning equipment.

IV‐7(2) Problems and recommendations relating to evaporators and recovery boilers
1) The wastewater from the bagasse pulp contains large amounts of calcium silicate and calcium
oxalate derived from the large amounts of calcium silicate in the fresh water and bagasse, andthis causes a serious problem with tube staining. Taking this problem into consideration,
LECES Mill always alternates the use of No. 1 evaporator and No. 2 evaporator, while theother is being cleaned in a five-vessel quadruple-utility operation. However, it is also
necessary to wash the other three evaporators. By raising the design value for theconcentration of rich black liquor from 37.8% to 45%, the amount of generated steam per unitof solid content is increased and fuel costs are reduced. In addition, corrosion of the IDF andother parts are reduced due to the decrease in the use of heavy oil with high sulfur (S) content.
The profit from this is expected to be US$20,000/y.
2) It is recommended that the supply vessel used be changed from #5 vessel to #4 vessel.
Since the temperature of the dilute black liquor supply can reach 85-90℃, the liquor should
be supplied to #4 vessel, whose design vaporization temperature is 70-75℃. This will saveenergy because the steam vaporized in #4 vessel can then be used as heating steam in #5
vessel. The profit from this is estimated to be US$7,600/y.
3) The CO content can be as high as 5ppm, whereas the remaining O2 content in the exhaust gas
can be as high as 7.0%.
Since the maximum allowable CO concentration in the exhaust gas is 20ppm, this value does
not cause an environmental problem. However, it is still important to control the CO content
in the recovery boilers. Each recovery boiler has four injection burners for the black liquor,
but only three are used at present. Since this causes non-uniform combustion, decreasing thesize of each burner should use all four burners. Because a large amount of supplementary
heavy oil is used, the remaining O2 content will then be reduced to 2% or less, resulting in an
increase of generated steam by about 3%. The profit from this is estimated to be US$980/y.
4) It seems that considerable amounts of NaO, NaCO3, and NaSO4 are dispersed in the exhaustgas from the cascade evaporators used for the condensation of black liquor (making use of theheat of the exhaust gas from the recovery boiler). The recovery rate of NaOH could be
increased from 50% to 90% or more by installing a scrubber to collect NaO + NaCO3 and byusing CaO of better quality. The limestone being used at present is a yellow color, indicatingthat its purity is low.
If 30% of this uncollected 50% NaOH is then successfully recovered (assuming that 80% of
the design value is collected), an annual profit of US$613,700(= ¥70million) could beobtained through the increase in NaOH recovery.
Since the cost of steam is low, it is possible to install evaporators for drying the exhaust gas
from the scrubber, but it is better to utilize the heat of the exhaust gas from the heavy oil
boilers, whose temperature is 200℃ or higher (As described above) for the condensation
process, since this would not require the use of any additional energy.
Since the necessary construction cost is estimated at only about $435,000 (¥50million), thisrenovation should also be made for reasons of environmental pollution control.

IV‐8(3) Problems and recommendations relating to PM51) Promotion of the “7 S’s” (Seiri, Seiton, Seiso, Seiketsu, Shitsuke, Sho-shigen andSho-enerugi)
Pulp and scraps of paper are scattered all around the plant. The campaign should start with thefirst “3 S’s”.
2) Since the surface temperature of the dryer groups is roughly equal and since there is nodifference in steam pressure between the dryer groups, the condensed steam draining from thedryers is not always discharged satisfactorily. This results in accumulation of the condensed
steam in the dryer cylinders causing an increase in the load on the driving motors.
Consequently, only one doctor is used in the dryer and the others have been removed (andeven the one remaining doctor does not actually work because it is kept raised).
The load on the doctors need not be large if they are well maintained. Therefore, all the
doctors should be reconditioned and put back into use. If doctors are not used, thenperforation and tearing are caused in the calender because paper scraps and powder residues
cannot be removed. In addition, adhesive materials attached to the dryer surface cause
pinholes in the paper and can adhere to the paper. This may result in the paper tearing.
Therefore, all doctors should be reconditioned and restored.
3) In order to implement energy conservation, it is necessary to stop the process in order to inject
steam equally to all 20 dryers in the steam drainage system, providing a pressure difference of
0.04MPa or more between the dryer groups. If this is not done, the driving load rises making
it impossible to increase the speed. If such an improvement is carried out, the optimum speed
could be increased to 750-1000m/min. Speeding-up the process requires an increase in electric
power (proportional to the speed raised to the power of about 2/3) and, since the steam
consumption rate is also improved, this results in significant energy conservations. Increasing
the speed to 1,000m/min could increase the present maximum daily production of 240t/day to
500t/day. This would produce remarkable economic benefits. Speeding-up the process canalso be realized by preventing paper break.
4) When paper break occurs, the operation is often restarted without eliminating the causes of
paper break. Thus, the average resetting time can be as short as 12.0 min/reset, as shown
below, but another paper break may soon occur. On PM5, paper break sometimes occurs 7 to
10 times a day. During the 300 days of operation per year, paper break accounts for 1.3% of
the total operating time on PM1, 7.8% on PM3, and 4.0% on PM5. The effect of preventing
paper break is significant because the energy-conservation effects are doubled when the large
amounts of defective paper wasted before and after the paper break are also taken into
account.
In particular, PM3 is out of operation for more than three weeks (23.4 days) each year. The“zebra patterns” caused by the presence of adhesive materials are often observed on the paperrolls at the 3P outlet of the paper press. Such stains must be cleaned off whenever a paper
break occurs. Since the removal of adhesive materials from the DIP is not sufficient, the DIP

IV‐9pulp must be cleaned thoroughly.
5) The maintenance of dryer hoods is inadequate. All the hoods on the 2FL are open and some ofthose on the 1FL are also open. This not only wastes energy but also adversely affects thepaper drying process. Hoods must be maintained properly and kept closed.
6) Repair costs in 2000 were only US$1.200 million, which corresponds to 1.5% or less of total
sales. The standard value for such repair costs in Japan is between 3 and 3.5% of total sales.
Since the labor costs for repair work in Indonesia are even less than those in Japan, this value
are too low. Judging from the present status of the plant, the decent facilities will deteriorate if
spending on maintenance is not increased to about 2.5%. The low operating rates of the paper
machines shown in Table III-2-3 reflect inappropriate levels of maintenance. In Japan, thenormal operating rate for such machines is about 95%, and some paper machines achieve 98%
or more.

Table III-2-3 Operating rates of paper machines at LECES Mill and the number of personnel
employed for each paper machine in 2000 (four groups in three shifts)
Paper

PM1

PM2

PM3

PM4

PM5

89.77

75.19

78.62

84.90

80.09

70

83

105

79

98

machine No.
Operatingrate (%)
Numberofpersonnel
Speeding-up the process, using the measures described above, would increase production by
125t/day × 340 days/y = about 43,000t/y.
(4) Problems and recommendations relating to DIP
1) Actual production capacity is about 200t/day, whereas the design capacity is 250t/day. The
major bottleneck is the lack of capacity for rough screening. Changing the shape of the slits inthe screen plate could solve this problem.
2) The pulper has surplus capacity and the number of revolutions can be increased by 6%. The
capacity of the present facilities would then be increased to about 300t/day. However, thefollowing measures, described in 3) and 4) below, must also be taken in order to achieve this.
3) The amount of froth in the flotator (sponge cake-like aggregates of ink, fillers and pulp
attached to bubbles formed by the air injected during the de-inking operation) is abnormallylarge, resulting in an excessive amount of good-quality pulp spilling out.
The percentage of reject froth that includes a large volume of good-quality fibers can be as
high as 5.7%. This must be reduced.
Five flotators are being operated in parallel. However, half will reduce losses if four of them
are used as primary flotators and the remaining one is used as a secondary flotator, increasing
IV‐10the pulp yield by 2.9%.
Prices of used paper in Indonesia are high because used paper is currently imported. In
particular, ONP (waste newsprint) costs about ¥24/kg, which is about twice that in Japan. As
of 2000, 42,865t/y of DIP was produced using 61,151t/y of used paper. If this yield could be
improved from 70.1% to 73.0%, the following benefits would result. Considering the fact thatthe yield of ONP in Japan is 85% or higher, it seems to be possible for this mill to achieve ayield of about 83% because the used paper at this mill is of good quality. This means that anincrease of yield by 12% (18% overall) could be achieved.
61,151t/y - 42,865t/y/0.73 = 2,432t/y
2,432t/y × US$205/t = US$498,600/y (= ¥57.3 million/y)4) Johnson screens are used for the final treatment of rejects and round holes of 5-6φ are used forall screens, except for the tertiary screening.
Since large particles of foreign material are not removed, they circulate until they are crushed
and then pass through the secondary screen.
It is strongly recommended that the screen be changed to a slit plate with 0.20-0.25mm² slits.
By raising the yield to 83%, significant profits would result (as described below) because theprice of used paper at LECES Mill can be as high as US$205/t.
In 2000, 61,151t of ONP was used to produce 42,865t of DIP. If the yield were raised to 83%,
significant benefits would result, as described above. Furthermore, the scale of the sludge
incineration facilities required would be reduced.
42,865t/y/0.83 = 51,645t/y
51,645t/y― 61,151t/y = ▲9,506t/y
9,506t/y × US$205/t = US$1,950,000/y = ¥224 million/yInvestment: a rough estimation is $2,000,000 (¥230 million), including the renovation of theincineration furnace.
(5) Yield of bagasse is low.
1) The harvesting season for bagasse is about 6 months, during which it is stored outdoors.
LECES Mill says that such bagasse stored outdoors does not deteriorate since hypochlorite
solution is used to prevent bio-deterioration. Although HYPO solution is sprayed on toprevent bio-deterioration, mildew is observed growing even on newly brought-in bagassebecause the HYPO solution is washed away by frequent rain. Silos should be installed to store
the bagasse.
2) The yield of bagasse is only 36.8%, in spite of its high price of US$83 (¥9,545)/BLT.
Although the yield of bleached bagasse depends on its place of origin, it is usually 42% orhigher. Assuming that the actual production of pulp was 14,258t/y in 2000, the benefits
obtained by reducing the deterioration of bagasse in order to increase its yield would be:
35,508t/y - 14,528t/y × 0.9/0.42 = 4,377t/y
4,377t/y × $83 = $363,000/y (= ¥41.8 million/y)Estimated construction cost of 15,000t of silo capacity: $1,300,000 (= ¥150 million)
IV‐11(6) Paper machines other than PM51) There are 4 single canvases of PM2 at present. It would be better to increase this number toeight. Half without reducing the drying capacity would then decrease the driving load.
2) Both the #1P and #2P presses of PM2 have a small diameter. It would be better to changethese to the #3P type that has a larger diameter.
3) The doctor of the dryer for PM3 is not being used. Since this is one of the reasons for paper
break, it should be reconditioned and put back into use.
4) PM1 has only primary and secondary cleaners. A tertiary cleaner should be installed, as in theother PMs.
5) Furthermore, it is recommended that a fourth and a fifth cleaners installed or that FRU be
installed for PM3 and PM4. This would not be very effective in terms of energy conservations
because the energy cost is low, but it would be very effective in terms of resource savings
because the costs of used paper and pulp are high. If the amount of raw materials saved by
PM3 and PM4 were 3t/day and 5t/day, respectively, and assuming that the average price ofpulp was ¥50/kg and ¥30/kg, annual savings in raw materials would be about US$435,000 (=¥50 million) each, totaling US$870,000 (= ¥100 million) overall.
Estimated facility costs are US$174,000 (= ¥20 million) and US$261,000 (= ¥30 million),
totaling approximately $435,000 (= ¥50 million) overall.

IV‐12

2.3 Follow-up Energy Audit
We visited the PT KERTAS LECES Paper Mill for two and a half days to carry out a follow-up
energy audit on the implementation of previous advice given by the ECCJ team in January 2001
and to investigate the other operations of the mill. Although the Indonesian MEMR was
supposed to play a key role in the follow-up energy audit, ECCJ actually led the survey.
The purpose of the visit was explained and the schedule was discussed. Since many of the
facilities were not operating, No. 3 paper machine was selected as the object of investigation.
Since a detailed energy audit had been carried out on the paper-making process in the previous
visit, this investigation focused mainly on the utility facilities and the detailed advice was given.
(1) Date of energy audit: December 2005,

5 (Mon.) 16:20 - 17:20
6 (Tue.) 9:00 - 16:00
7 (Wed.) 9:00 - 16:00 and
9 (Fri.) 13:00 – 14:00(2) Audit team members:
Indonesia
MEMR:
Ms. Maryam Ayuni, Department of Energy Efficiency(Indonesian coordinator, participated only in parts 5 and 6)
Mr. Parlindungan Marpaung, Inspector, Dept. of Energy Efficiency
PLN:
Ms. Sutji Rahayu, Jakarta Office (participated only in parts 5 and 6)
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts(3) Attendees from PT KERTAS LECES
Mr. Ir. Djoko Wiryono, Manager Litbang (Reporter at PROMEEC)
Mr. Ir. M. Nugroho Basuki, Manager Plant 1
Mr. Ir. Tri Prasetyono, Manager Plant 3
Mr. Ir. Didik Mudiarto, SI Plant 1B
Mr. Supriyadi, SI Plant 3B
Mr. Ir. Subagyo, SI PP Produksi (Reporter at PROMEEC)
Mr. Ir. M. Arifin, SI Penelitian
Mr. Gatot Subroto, SV Utilitas
Mr. Ir. Bondan As, SV KSP 3
Mr. Sutarmadji, SV Compressor
Mr. Imam Hadi, Listrik
Mr. Z. Abldin Iw, Konera 4(Ir. stands for bachelor)(4) Outline of the follow-up investigation
On December 5 (Mon), the purpose of the visit was explained and the overall schedule was
IV‐13discussed.
On December 6 (Tue), PT KERTAS LECES explained the changes in the external environment
and a walk through on-site audit was carried out for the bagasse storage yard, power generators,
boilers, No. 3 paper machine, and the wastewater treatment plant. The investigation team
toured the plant and made comments. Since many facilities were not in operation, No. 3 paper
machine was selected as the object of investigation. Since a detailed energy audit had been
carried out on the paper-making process in the previous visit, this investigation focused mainlyon the utility facilities and the detailed advice was given. Issues such as the prevention of paper
break were also discussed.
On December 7 (Wed), a tour of the plant was undertaken, measurements were carried out on
air compressors and pumps (in the water supply room), and the rest of the time was spent
writing a report. We visited the mill once again on the afternoon of December 9 (Fri) to collectadditional information and materials.
The information and materials we received from PT KERTAS LECES included:
The “Boiler Performance Curve”, “Boiler Blowdown Volume”, “Specification and operating
rate of Air Compressors”, “Electrical power chart of paper machines”, and “Table of downtimeof No. 3 paper machine caused by paper break (2001-2005)”.
(5) Results and discussion of the investigation
1) Recent changes in the situation
PT KERTAS has produced significant results by following the detailed advice for
improvements given in the previous energy audit in January 2001, and by implementing its
own improvements such as fuel conversion from heavy oil to natural gas. The results of these
improvements have been reported at every PROMEEC Seminar Workshop making PT
KERTAS an “honor student” among the participants in this project. However, our impression
was that the external economic environment was worsening, and that the company wasfighting not only to save energy but also to keep operating smoothly. When we visited theplant, it was operating at less than half capacity with many major facilities lying idle.
Therefore, the original plan to convert from gas fuel to coal was in jeopardy due to financial
restrictions.
While production in 2000 was about 135,700 tons, recent production has been reduced to alevel of 120,000 tons. Major changes in the operational situation are roughly as shown in thefollowing sections. Measures taken by PT KERTAS are also described. Questions and answers
are included in Material No. D-107.
a. Shortage of raw material (bagasse)
When we visited the plant, the depithing and pulpers were lying idle. bagasse is bought infrom sugar plants in Java, but shipments of bagasse have now decreased because, due to therecent increase in fuel prices, it is now used as fuel within the sugar plants. The following
two measures may be taken to address this problem.
- To ask PTPN (Plantation Enterprises) to increase the supply of bagasse by using coal as
IV‐14

a fuel instead. This measure is expected to secure 68,000 tons in 2006.
- To find alternative raw materials, including long fiber wood such as Kalimantan.
b. Sluggish sales of newsprint paper
Sales of newsprint paper are decreasing because newspaper companies increasingly
produce newsprint paper by themselves. Although PT KERTAS exports newsprint paper,production is decreasing. The operation of the DIP that treats used paper has therefore beensuspended. Consequently, No. 5 paper machine (PM5) has stopped producing newsprint
paper and is now producing printing paper instead.
c. Unstable supply of natural gas
PT KERTAS succeeded in reducing costs by converting from heavy oil to natural gas inJune 2003. However, the production volume of the natural gas field (owned by a PT
Pertamina-related company) is now decreasing and the pressure of the gas source supply isalso decreasing. For this reason, a quota system is now used for the natural gas supply,
which sometimes reduces daily production to 250-300 tons. To cope with this situation, theamount of in-house power generation that uses natural gas has been reduced and electricity
is now purchased instead. They seem to be waiting for the discovery of new gas fields.
d. Price rise of heavy oil
Although the consumption of heavy oil is not as large, the price of natural gas goes up so
too does the price of heavy oil. As a result, the cost of fuel, as a proportion of the total
production cost, has risen from 17% to 22-23%. This value is comparable to the level
before fuel conversion, which was 24%. Possible measures for remedying this are as
follows:- To improve energy efficiency.
- To convert the fuel supply yet again.
It was originally planned to convert from natural gas to coal in 2006, but this cannot now be
realized due to the lack of investment funds.
2) Situation at the time of the visit
The operating situation at the time of our visit was as follows, reflecting the changes inenvironmental conditions mentioned above:
Equipment(Main product)(Capacity)

Operating situation/

Reason forsuspension

PM 1

Cardboard liner

30t/D

In operation

PM 2

Printing paper

60t/D

In operation/industrial paper
PM 3

Printing paper

175t/DIn operation

PM 4

Tissue30t/D

Operation suspended

maintenance

PM 5

Newsprint paper,

275t/D

Operation suspended

production

printing paper

adjustment

Bagasse Pulp Plant, including the Depithing Plant,
Vacuum Evaporator, Recovery Boiler, Lime Kiln,
IV‐15

Re-causticizer & Chlor-Alkali Plant, DIP

Operation suspended

production
adjustment

Among the other facilities inspected, only three out of five power boilers were operating, andonly one out of three turbine generators. The wastewater treatment facilities were operating.
3) Energy prices and activities for reducing costs and consumption
Energy costs are as follows:
Natural gas:

US$4.36/MMBtu

Heavy oil:

US$9.60/MMBtu

Coal:

US$1.90/MMBtu (Base: 22,190kJ/kg, 1Btu = 1.055kJ)

Electricity:･Reactive Power Charge = 609 × {effective power (kW) - 0.62 × reactive power(kVAr)} RP/kWhThis is the same in Japan as the charge is zero when the power factor is 85%.
･Active Power Charge: normal time = 439RP/kWh@ Peak Load period (18:00-22:00) = 878RP/kWh
Total power consumption at PT KERTAS Mill is 17,400kW, of which 2,400kW(14%) is purchased from PLN and 15,000kW (86%) is supplied by in-house
generation. The proportion of in-house generation was 99% at the time ofdiagnosis in 2001.
Since PT KERTAS does not have an energy manager, a comprehensive, overall perspective
seems to be lacking.
4) Results of the follow-up diagnosis (in comparison with the previous results)
The items advised by Miyabe (technical expert of ECCJ) in the previous energy audit (January,2001) are described in 2.2. Referring to the activity report on energy conservation submitted
by PT KERTAS in the PROMEEC Seminar Workshop, the explanation presented by PT
KERTAS and the comments made by the investigation team are listed in Table IV-2-4(relating only to items that have not been implemented, however). Some items have not been
implemented because the level of operation is now much lower due to the environmental
changes mentioned above.

IV‐16

Table IV-2-4 Comments on the items which were identified by ECCJ previous audit
and have not been implemented
No.

Finding

PT’s Comment/Action

Follow-up result

F

Recovery Boiler
3 Change the FDF and IDF to the Has not been done yet: too Company policy on the payback
period of investment is 3 years
proper size, for both the quantity expensiveor less.
and the head
G Power Boiler
2

Should be connected to each Has not been done yet: the In the past, connecting thepump by a common header so characteristics of the pumps are pumps was tried and major

3

4

5

that you can stop the two BFPs not the same.

problems resulted.

and thereby save about 400kW of(The issue may still be worth

electricity.

studying further.)

Change the FDF and IDF to theproper size, for both the quantity
and the head.
Remaining O2 content is too high
(4 to 7%, as measured by ourteam) and should be reduced toless than 2%.

Has not been done yet: too Same as F-3 above
expensive

O2 monitor has been installed. PT is now controlling theExcess O2 in the stack can be remaining O2 content at 2-4%,
adjusted to 2% manually.
depending on load levels.
(Recommended that O2 be
reduced to 2-3%.)
Exhaust gas temperature is a little We have tried to add an
There is no space to add a heathigh at 170 to 180˚C.
exchanger on-site.
economizer. The flue gas
temperature has been decreased
to 160˚C.

H Turbine and Generator
3

Electrical

technician

has Since 2001 we have had to PF has now reached about

mistakenly made some kind of repair the old capacitor and 0.95 and should be OK.
error with the Power Factor (PF)install a new capacitor. The
power factor has now increased
from 0.71 to 0.74. The budget to
installnewcapacitors

isUS$100,000.
4

If the PF is rose from 70% to over
85%, then the pay back from theElectric Company will coversome of the cost.

New capacitors have been Confirmed
installed in the electrical describedcompany (PLN) line since2001 and no payments havebeen needed to the ElectricCompany for reactive power.

IV‐17

the

situationas5) Results and impressions gained from the on-site survey
The impression gained from the on-site survey is that employees are seriously committed toachieving a high level of operation. As described in the previous energy audit report (Phase 1),
the original motto of PT KERTAS, namely the “5 R’s” (corresponding to the Japanese “5S’s”
in Bahasa Indonesia), is posted everywhere throughout the plant and offices.
a. Paper machines
As for the paper break problem, we obtained specific data on this problem for No. 3 paper
machine. Although the occurrence and amount of resultant downtime fluctuates, thefrequency of occurrence is gradually decreasing compared with the data from 2000 (Table
IV-2-5). The speed of the paper machine (m/min) has not been changed.
Table IV-2-5 Occurrence of paper break on No. 3 paper machineYear

Number of

Downtime due to Proportion of downtime

paper breaks

paper breaks (min)2,292

33,691

6.4

2001

2,490

48,510

9.2

2002

2,579

34,310

6.5

2003

1,259

19,240

3.7

2004

2,258

40,245

7.7

2005

1,439

23,8434.9

2000 (Phase 1 data)(% of calendar days)(Up to December 5)
We explained our experiences with the paper break problem in Japan (and how theincidence of paper break was reduced by ensuring that the machinery was cleaned properly
whenever the operating rate dropped). They commented that they had the same experienceand that downtime had been reduced to as little as 4%.
b. Boilers for power generation
Three boilers are operated in order to supply the approximately 150t/h of steam required(50t/h each). We asked why they didn’t just operate two boilers at 75t/h each, and they
replied that they operated three boilers for safety reasons because the natural gas supply
was unstable. It was understood that this was a separate matter from that of energy
conservation.
c. Power generators and power receiving installations: only one of three generators is being
operated.
d. Air compressor plant
Although the plant is spread over a large area, a central air supply system is employed. The
plant has four centrifugal compressors and two screw type compressors, of which twocentrifugal compressors (CENTAC: 500hp, KOBELCO: 500hp) were operating. The

IV‐18

KOBELCO model was newly installed after scrapping one of the screw type compressors(commissioning had been carried out two weeks earlier, on November 23). In fact, fourcompressors (including two screw types) were on standby, showing that the utilized
capacity was very low.
All the operating air compressors are of large-scaled type, and use suction vanes forcapacity control so that the partial-load vs. power consumption characteristics is poor. Past
data on power consumption has been obtained and will be studied (described later).
The control range of the discharge pressure is between 0.65 and 0.7MPa, which is relatively
high. This range has probably been set after taking possible pressure drops in the piping
into consideration. However, the actual fluctuation in discharge pressure is very small andthe pressure is kept at around 0.66MPa. This may be because the compressors are of thecentrifugal type.
Compressed air is supplied through a receiver tank and dryer (adsorption type).
e. Water supply pumps
We investigated water supply pumps that were representative of the utility facilities,
overall.
The eleven water supply pumps have a large capacity of 200kW, and water is supplied toeach plant from three sites located outside the mill (two sites in Ronggojalu and one site in
Sumber Kramat). However, when we visited, the facilities at only one site were in use
because some plants were out of operation. On the day we visited, water was being supplied
from a water reservoir in Ronggojalu, about 1km from the mill, using only two out of thefive pumps installed on the line. This is another example of low capacity utilization.
The power factor has been improved to 95% by installing phase advance capacitors on thepump motors. Since a capacitor is installed on each pump, there is no adverse leading
power factor effect. The electricity is supplied at a high voltage (6kV), which istransformed to a low voltage (400V), using a transformer of 1,000kVA installed at the pumpsite, before the current reaches the motors.
This case is a typical example of the measures employed to reduce distribution loss. The
installation of phase advance capacitors was reported in the PROMEEC workshop held lastyear.
The preceding energy audit report described how the water is taken from wells. However,
the actual feed water is taken from water reservoirs, and PT KERTAS has an obligation to
the government to supply a certain amount of treated wastewater for agricultural use in theneighboring region.
2.4 Technical Discussion and Recommendations(1) Measures for partial-load operation
It is impossible to always keep the plant operating at its full capacity and the plant is often
forced to operate with a partial load. Figure IV-2-1 shows the relationship between production
volume and operating conditions schematically.

IV‐19

Production

Capacity of Facility
Large Production

Under partial loads
Moderate

High performance

Small Production
Average performance
Poor performance
Time

Figure IV-2-1 Decrease in production volume and partial-load operation
When production corresponds to the capacity of the plant, the equipment efficiency is high andthe energy intensity is also kept at a low level. However, when production decreases, waste andlow efficiency in every facility cause to raise the energy intensity. In such a case, the size of the
production facilities is usually adjusted to the actual production volume, but it is often difficult
to adjust utility facilities in this manner.
The following are countermeasures for partial operation taking PT KERTAS’ utility facilities as
an example.
1) Partial-load operation of the boiler systema. Boiler systems and the present operating situation
Three steam turbine systems are installed in the mill but only one of them is now in
operation. Figure IV-2-2 shows the layout of the operating system.

Boiler Aux. Facility Boiler Aux. Facility
Fan and
Fan and
Pumps
Pumps
90t/h
90t/h
#2 Boiler#1 Boiler
Steam 50t/h
50t/h

Boiler Aux. Facility
Fan andPumps
90t/h#3 Boiler
50t/h

150t/hTurbineＧ

Figure IV-2-2 Boiler system of PT KERTAS
Three steam boilers, capacity 90t/h per each, supply steam to a steam turbine with a ratingof 150t/h. The load factor of the boilers is 56% (= 50t/h/90t/h).
Since the specified capacity is 90t/h, two boilers could supply the amount of steam required.
IV‐20

If one boiler was shut down, the following benefits could be expected:･Improvement in efficiency due to the increase in the load factor of the boiler.
･Energy conservation coming from the shutdown of auxiliary equipment.
b. Improving the boiler efficiency
By reducing the number of operating boilers to two, the load factor rises to 83% (=75t/h/90t/h).
Figure IV-2-3 shows the partial-load characteristics of the boiler (based on data received
from PT KERTAS)

91
90
89
88
87
86
85
10

20

30

40

50

60

70

80

90

100

Load Factor (%)

Figure IV-2-3 Partial-load characteristics of the boiler(Based on data received from PT KERTAS)
The partial-load characteristics are excellent. This is probably because all necessary
measures for lower level combustion have already been taken and any further significant
saving of fuel cannot be expected. The graph shows that the expected improvement is only
0.4% (= 90.4% - 90.0%).
c. Effects of the shutdown of auxiliary equipment
The amount of auxiliary equipment operated can be reduced from three units to two units.
Table IV-2-6 shows the auxiliary equipment and its rated power consumption. Excluding
FOP (which currently uses a gas-fired boiler), the total power consumption of the auxiliary
equipment is 705kW. Taking the increase in load factors of fans and pumps into
consideration, it is assumed that the power consumption could be increased from 65% to
90% of the rated value. The values of estimated power consumption are shown in Table
IV-2-7.

IV‐21

Table IV-2-6 Auxiliary equipment for the boilers
Fan/Pump

(kW)

FOP

11

BFP

315

DEP

75

FDF

315

Table IV-2-7 Energy consumption of the auxiliary equipment
Items

Present

Improved

Number of Units in Operation

3

2

Load Factor of the Boiler (%)

56

83

Pumps and Fan Power Consumption Rate (%)

65*

90*

Power Consumption per Unit (kW)

458.3

634.5

Total power Consumption (kW)

1,375

1,269
(*: Estimated value)

From Table IV-2-7, the energy conservation is calculated as follows:
1,375kW - 1,269kW = 106kW, 106kW/1,375kW= 0.077 (= 7.7%)
2) Controlling the capacity of the air compressor
Four centrifugal (turbo type) compressors, one with a 500hp electric motor and two screw
type compressors, are installed and two or three turbo type compressors are in operation.
a. Air compressors (turbo type)
Generally, dynamic compressors such as the turbo type are used as large-capacity
compressors in situations where the screw and reciprocating types cannot be used. However,capacity control is difficult due to surging and the stonewall phenomenon (as shown in
Figure IV-2-4).
The turbo type is suitable for constant-power operation and is an effective way to constructa system that addresses the fluctuation of the load by combining with positive displacement
pumps such as the screw type and reciprocating type. That is, a screw type or reciprocatingtype pump is combined with a turbo type pump to offset the shortage of air so that the loadof the turbo type is used for the base load as much as possible. The screw type andreciprocating positive displacement types allow for load/unload control, and the shaft
power is significantly reduced under unload conditions.

IV‐22

Pressure (P)Surging point
Mechanical vibration
Stonewall point
Sharp decrease of pressure

SCAir- flow (Q)Narrow working region

Figure IV-2-4 Stone-wall point and surging of a turbo type compressor
Figure IV-2-5 shows operation patterns when a turbo type compressor is combined with ascrew type compressor.

Turbo type compressor: Base load operation
Screw type compressor: Load/unload operation depends on demand
Large volume air-demand

Turbo(Base load)
Low volume air-demand

Screw(Load)

Screw(Load/unload)

Turbo(Base load)
Minimum volume air-demand

Screw(Load/unload)

Screw(Stop)

Screw(Load/unload)

Screw(Stop)

Turbo(Stop)

Figure IV-2-5 Operation of a turbo type compressor combined with a screw type compressorb. Operating system
The number of turbo type compressors being operated is controlled either manually or
automatically. Two compressors are operated continuously at the base load and one
compressor is operated intermittently according to the required load. Figure IV-2-6 shows
the changes in power consumption over two specific months when three compressors wereoperated at the base load and two compressors were operated intermittently. A peculiar
characteristic of this graph is that very few data points are found in the zone between
15,000kWh/d and 20,000kWh/d. Since the load of an air compressor is normallycontinuously distributed, the distribution shown in Figure IV-2-6 is abnormal. It seems that
IV‐23

this phenomenon derives from the partial-load characteristics of this turbo type compressor.
Figure IV-2-7 shows partial-load characteristics of compressors that use various types ofcapacity control methods.

Power25,000
Consumption(kWh/d)20,000Vacant zone??

15,00010,000

May
May
July
Jul.

1

4

10 13 16 19 2
22 25 28 31

7

Day

2

Power Consumption in May and July on 2005
Figure IV-2-6 Power consumption of air compressor systems

100
Suction Vane Control
Around 70%

80
60

Load/Unload Control

Ideal Control

40
Inverter Control

20
0
0

20

40

60

80

100

Load Factor (%)
Figure IV-2-7 Characteristics of air compressors using various types of capacity control method
Suction vane control is used for the capacity control of turbo type air compressors. Whensuction vane control is used, as shown in the figure, power consumption is about 70% of
the full load, even if the load is zero. On the other hand, air compressors with inverter
control (screw type) that have been put on the market recently have almost ideal control
characteristics, while those with load/unload control fall in the intermediate range. FigureIV-2-8 shows the relationship between power consumption and capacity control in theoperation of two compressors with suction vane control when the number of operating unit
is controlled.
IV‐24

Power Consumption

2nd M/C

Vacantzone

1st M/CAir flow
Figure IV-2-8 Operating unit control by air compressors with suction vane control
At maximum load, two air compressors are used to supply the compressed air. As the loaddecreases, the first M/C is run at its maximum load and the second M/C is partially run
according to the required load. When the load decreases to about 50%, the second M/C isbrought to a halt, and only the first M/C is kept running. The y-axis in the figure aboveshows the power consumption in the operation.
As the load decreases, power consumption decreases in accordance with the partial-load
characteristic curve of the second M/C. Since the partial-load performance characteristics
are inferior to those at full load, the decrease in power consumption is slow and as much as
85% of the power consumption at the maximum load is still required even when the loaddecreases to almost 85% (= 50% + 1/2 × 70%). When the load drops below 50%, thesecond M/C stops so that only the first M/C continues to operate. In this case, as shown on
the graph, the power consumption then follows the characteristics curve of the first M/C.
In these circumstances, power consumption then drops abruptly in the neighborhood of
50% from 85% down to about 50%. This explains why the “vacant” region is found in theabove graph.
c. Countermeasures
Although the use of an inverter controller with superior partial-load characteristics isdesirable, in practice this is impossible because the maximum capacity of the existing
equipment (75kW) does not meet the required capacity of 500hp. However, using the screw
type compressor for load/unload control of the capacity control can reasonably solve theproblem.
FigureIV-2-9 shows control conditions after the partial load and characteristics are
improved.
A turbo type compressor can be used for constant load operation in conjunction with ascrew type compressor whose capacity is controlled by the load and unload control. Whenthe load is heavy, two compressors are operated. As the total load decreases, the output of
the screw type compressor decreases and power consumption also decreases in accordance
IV‐25with the decrease in output. When the load reaches 50% or less, the compressor of theconstant load air compressor is brought to a halt and only the air compressor whose
capacity is controlled is operated. With this arrangement, the large “gap” in power
consumption, as shown in Figure IV-2-6, does not occur.
The improvement achieved depends on the distribution of the load factor. Here, 50% istaken as the center of the distribution, and a normal distribution with 2σ ranging from 0 to
50% and 50 to 100% is assumed.
While the use of suction vane control increases power consumption by 38% relative to theideal control state, the calculation shows that the increase is 14% in the load/unload control,
which represents an energy conservation of about 25%. It is therefore recommended thatthe control of existing screw compressors be investigated and the operating unit control

Power Consumption

panel be used for capacity control.

Power Saving
Screw M/C

Turbo M/C
Screw M/C
Air flow

Figure IV-2-9 Operating unit control of screw type and turbo type compressors
3) Partial-load characteristics of motors and fansa. Motors
Measuring the power consumption and comparing it with the rated value obtain the loadfactor of an induction motor. This measurement is not always easy because both the voltage
and the current must be measured simultaneously. However, it is not difficult to judge
whether the motor is oversized or not by just measuring the current. Figure IV-2-10 shows
the characteristic curves for efficiency, power factor, and current (as a percentage of the
rated value) against the load factor of a squirrel-cage induction motor (400V).

IV‐26

Efficiency, P ower
factor, Current (% )

120
100
80

Efficiency
Power factor
Current

60
40
25

50

75
100
Load factor (% )

125

150

Figure IV-2-10 Characteristics of a squirrel-cage induction motor (400V)
It can be seen from the diagram showing the relationship between the current and the loadfactor (above) that the load factor is 50% when the current is 60% of the rating. The power
factor decreases from 88% to 77%, and the efficiency decreases from 92% to 90%. In a
motor operated at a higher voltage as well, the load factor is about 50% when the current is
60%.
Although the decrease in efficiency observed is several percent, at most, in a motor driven
at a high voltage its operation must be improved because the load factor of 50%
corresponds to about twice the actual demand.
That is, the criterion for judging whether the motor used is oversized or not is 60% of the
rated current.
b. Pumps and fansCompared with motors, the efficiency of pumps and fans depends more on the load factor(Figure IV-2-11).

Efficiency (% )

100.0
80.0
60.0
M otor
Pump
Fan

40.0
20.0
25

50

75

100

125

Load factor (% )Figure IV-2-11 Relationship between the load factor and the efficiency of pumps and fans
At a load factor of 50%, efficiency decreases by about 10% in both pumps and fans. In

IV‐27

addition, the rate of efficiency decreases drastically below 50%.
Table IV-2-8 shows the measured values of the current of #701B supplementary equipmentin the previous energy audit (January 2001).
Table IV-2-8 Measured current of the fans and pumps of #701B

Fan/Pump
1. FOP
2. BFP
3. DFP
4. FDF

Capacity
kW
11
315
75
315

Design Design
Volt.
Amp.
22.5
380
6,000
36.5
380
131
6,000
36.6

Actual Actual/
Design
Amp.
14.5
0.64
29.5
0.81
67.4
0.51
0.48
17.5

The measured values of current for DFP and FDF are less than 60% of the rated design
values. This indicates that the load factor is less than 50%. For example, the damper of the
FDF can be narrowed down to about 50%. In such a case, it is possible to make significant
savings in energy by adjusting the number of revolutions by changing either the pulley ratioor the gear ratio.
(2) Operation of the air compressor system
1) Flow control and air leakage control
The air compressor room is located at the center of the mill and, from there, compressed air isdelivered to each plant. While such an integrated system has an advantage in that the facilities
are utilized efficiently and the operation is centrally controlled, long pipelines are required and,as a result, air leakage, pressure loss, and imbalance between the supply and the demand are
apt to occur. Therefore, meticulous control is required.
Is it sure that little amount of air is used while the mill is closed. Flow control and periodic airleakage checks should therefore be implemented.
Even in newly installed pipelines, air leakage of 3-5% usually occurs. As time passes, theleakage may exceed 10% and sometimes reaches 35%. Air leakage mainly takes place atpiping junctions and around equipment seals.
Operating the compressor when the plant is out of operation, using the method shown in
Figure IV-2-12, can check the amount of leakage.
To check the air leakage, close all the ends of the piping completely and start the operation of
the air compressor. When the pressure has reached a specified value, stop the compressor. Thechanges in discharge pressure occurring after the start and finish of compressor operation are
shown in Figure IV-2-12. In the figure, P1 is the pressure used, which is usually set to aroundP1-P2 = 0.05 - 0.1MPa.
Approximate air leak rate, L, is calculated by the following equation: L = t1/(t1 + t2) ×100[%]

IV‐28

Setting pressure

0.7

Estimation of the Air leakage
L: Air leakage (%)

p1 = Specified pressure

Working pressure range
p1 – p2 = 0.05~0.1MPa

0.6

p2 = Specified pressure

t2

0.5

t2

L=

t1

Pressure descent

0.4

× 100 (%)

t1+t2

0.3

Pressure ascent
Smallleakage
leakage
Small
Large leakage
Time (min)Pressure Change in Air Compressor
Figure IV-2-12 Check for air leakage2) Dryer
Adsorption type dryers are installed. The adsorption type dryer can, by purging adjust, be used
for electronics production plants and suchlike where a very low dew point is required. In sucha dryer, valuable compressed air may be uselessly released by purging if the dew point is set
excessively low. It is recommended that the dew point control be reviewed, following thesesteps:- Confirmation of the required dew point.
- Adjustment of the purging volume (purging time)- Investigation of the possibility of using a heating type (or refrigeration type) dryer(either in a changeover or in parallel use).
(3) Examples of successful energy conservation in the distribution system (energy conservation in
the pump station and improvement of the power factor)
1) Reduction of distribution loss
Key points are as follows:
Distribution loss, W [W], is expressed by the following equation:
W = I2 × r
Where, I: current [A], and r: resistance of the distribution line [Ω].
To reduce the distribution loss, it is necessary to reduce the current (I) and the resistance of the
distribution line (r) in the above equation.
a. To reduce the current:- Supply electricity with a high voltage to the center of the load, and- Raise the power factor.
b. To reduce the resistance of the distribution line:- Make the length of the low voltage distribution line as short as possible.
IV‐29

PT KERTAS has constructed an ideal system for the water feed pump station, which satisfies
all these conditions. Actual measures taken are as follows:
2) Pump station
The water feed station is located at the water reservoir about 1km from the mill, and fivepumps are installed.
Figure IV-2-13 shows the equipment connections involved by means of a one-line diagram.
The following are measures taken to ensure the reduction of distribution loss:
a. Long distance feed with a high voltage (6kV)
For a certain amount of the electrical power supply, increasing the voltage, resulting in a
reduction in distribution loss, can decrease the current.
b. Installation of transformers as close as possible to the load
By transmitting power with a high voltage as close as possible to the load, it is possible toshorten the length of low voltage distribution line requiring a large current so that the loss
in the low voltage distribution line is reduced.
c. Installation of phase-advance capacitors
Phase-advance capacitors improve the power factors of motors so that the current that flows
through the distribution line is reduced. The installation of phase-advance capacitors has
reduced the current from 320A to 280A, resulting in a decrease in the loss caused by the
distribution line to 77% (= (280/320)2)).

High voltage line
6kV
Static Condenser

380V
Low voltage line

M

M
S.C

S.C
P

P
63kvar×5
63kvar×5200kW×5200kW×5

Figure IV-2-13 Connection diagram for the pump station

IV‐30

3. Walk-through Energy Audit at the Patal Grati Spinning Mill of Industri Sandang Nusantara
We visited a second new plant in the neighborhood, Unit Patal Grati Textile (Spinning) Mill, tomake a walk through energy audit.
Since the visit to the PT KERTAS Paper Mill was scheduled early in our trip, we asked MOE toarrange another visit to a new plant in the neighborhood. However, it was only three days before
the departure of the investigation team that the visit to the mill was confirmed. Although the visit
was arranged at short notice, the mill staff accepted the visit by the investigation team in a friendly
and cooperative manner.
Patal Grati Spinning Mill is very eager to save energy, having organized the EC Committee in 1996.
After hearing a description of their activities, we made a tour of the plant and then gave ourcomments. This mill is a spinning mill mainly used for polyester yarn manufacture. Cotton andrayon yarn manufacture is carried out in other factories belonging to the same company.
3.1 Visit to the Patal Grati Spinning Mill
(1) Outline of the visit
Name of the company: PT Industri Sandang Nusantara
Name of the mill: Unit Patal Grati
Time and date of visit: December 8 (Thu) 9:00-16:00
Location: Jl. Raya Grati KM.14 Grati, Pasuruan 67184, Jawa Timur, Indonesia(About 80km southeast of Surabaya)
Company staff: Mr. Naulila, General Manager
Mr. Ir. Mulyono, Manager Teknik
Six staff members of EC Committee (Team Konservasi Energi)**Although called a “Committee”, it is actually a department in the company
organization.
Investigation team members:
Indonesia, MEMR:
Mr. Parlindungan Marpaung, Inspector, Dept. of Energy Efficiency
Japan, International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano, and Hideyuki Tanaka, Technical Experts(2) Outline of the mill
Raw material: polyester yarn. (Although they have other factories that handle rayon and cotton
raw materials, the investigation team only surveyed the polyester mill.)
Product:

Polyester thread

Production capacity:

400t/month (medium size for an Indonesian spinning mill)Actual production:

Production has increased to about 360t/month, which isabout 90% of total capacity.

Number of employees:

536 (including operators working three shifts in fourgroups)IV‐31

Area of the mill:

26haType of operation:

Continuous operation, including nights, holidays andweekends.

Periodic maintenance and repair are carried out sequentially by suspending
operations once every three months, for four hours each time.
Energy used:

Electricity only (purchased from PLN)

(3) Production process
The production process consists of the following eight steps:
a. Blowing:

Raw material (yarn) is aspirated by air blowers and then transported
through a duct before being compacted on a roller-beater.

b. Carding:

Filaments with a diameter of about 2 cm are formed (then stored ina drum type vessel).

c. Drawing:

After carding, eight strands of filament are simultaneously on one
side of the machine, which are intertwined to form threads.

d. Speed:

The threads are further drawn and wound on longitudinal bobbins.

e. Ring Spinning:

Finished textile threads are formed in this step, using several hundred
bobbins connected to a single machine.

f. Cone Winding:

The final twist is given to the threads and the threads are woundaround cone type bobbins.

g. Packing (not investigated.)h. Storage (not investigated.)(4) Energy being consumed and energy-conservation activities
As described above, energy-conservation activities started in 1996 and successful results havebeen achieved. However, power costs still account for 47% of the total production costs.
Installed Capacity of power receiving system:

2,770kVA

Diesel Generator Capacity:

1,250kW×2units, 300kW×1unit

Mr. Mulyono (Technical Manager) is the energy manager (director of the EC Committee).
Although some managers and staff members from other departments are included as members,
the committee mainly consists of about 40 dedicated personnel with knowledge of technology
and electricity and who have been recruited from within the mill and trained especially for theirrole on the committee. The committee members are divided in half into the following two
groups:G1: In charge of process matters: patrolling the plant periodically to check processing
equipment and to promote efficiency.
G2: In charge of utility matters: In addition to the same responsibilities relating to utility
equipment, maintenance is within the scope of job.

IV‐32

The following improvements in unit cost have been achieved as a result:1996: 950kWh/Bale-Product (1 Bale = 181kg)
2002: 850kWh/Bale
2005: 750kWh/Bale (Peak Load: 650kWh/Bale)(5) On-site survey and impressions
First, the flow of the process from raw materials to products was surveyed, and then the utility
facilities (air conditioning, chillers, air compressors, power receiving system, generators, etc.)
were checked.
It was explained that the members of the EC Committee patrol every hour to check thetemperature and humidity and correct the environment if it is outside the specified range.
However, it was hot and humid when we visited.
General “housekeeping” of the plant seemed to be insufficient, and the Japanese “5 S’s” isneeded to implement more thoroughly.
1) Illumination
Attempts to save energy could be seen, such as the diligent reduction in the number of or
extinction of fluorescent ceiling lamps in use. Some of the regular bulbs are also being
replaced with fluorescent lamps.
2) Air conditioning
The control targets for temperature and humidity are from 30˚C to 33˚C and 65% respectively,
and wet and dry bulb thermometers are provided to monitor the workplace environment.
However, there are no actual facilities to control the humidity.
Since the workplace environment for spinning and winding must be carefully controlled, cold
water is provided by chillers, and two large-scale AHU units are installed.
Since it was the rainy season, the temperature was not too high and the two water-cooled
turbo chillers (800RT) were not operating. They are operated during the dry season. Using theAHU, cold water for showering is prepared by exchanging heat with the cold water of thechiller, and the cold water is then used to directly exchange heat with the air to provide cool
air for the building.
Although the system is basically a circulating system, it is possible to take in outdoor air or
exhaust indoor air according to the enthalpy relative to outdoor air. The temperature of theincoming air on the day of our visit was 29.3˚C.
3) Air compressor
The main compressors used are four screw type compressors driven by 30kW motors. Threecompressors were running on the day of the visit and the discharge pressure was 0.72MPa at
the receiver tank. There was very little pressure fluctuation between the screw typecompressors.
Although the person in charge explained that the compressors were controlled by load-unload
control within the range of 0.65 to 0.8MPa, no load-unload action was observed while wewere on the site (about 20 minutes). The air is supplied to the load equipment through a dryer.
Hot air is directly released into the environment and the condition of the indoor atmosphereIV‐33was fairly good when we visited. There is both a compressor line and a blower line, and it
seems that the discharge pressure of the compressors can be reduced.
4) Power receiving system and the emergency generator
The electricity is received at 20kV and the system consists of two lines: one line that reduces
the voltage to 3.3kV using two main transformers (1,600kVA) and another line that directlyreduces the voltage to the low voltage used in the plant using a one-stage transformer.
Seven low-voltage transformers decrease the 3.3kV to 380V. This two-stage step down
appears to be redundant and may be a historical result. The main transformers are of an old
oil-immersion type equipped with a conservator and should be replaced shortly. It is also
necessary to reconsider the distribution system when doing this.
However, since the output voltage of the emergency generator is 3.3kV, some considerationmust be given to the type of linkage used.
Although all the feeders are equipped with ammeters, watt-hour meters are only provided forthe three systems used for receiving power. Energy meters are installed in all the workshops.
Mr. Mulyono explained that measurements were being made, but no measuring system wasseen for any of the utilities, including the power receiving system.
Patal Grati Mill submitted the following materials:“Power Single-Line Diagram”, “Plant Layout” and “Specifications for major facilities”
3.2 Advice and Recommendations for EE&C Activities
At the end of the meeting, the investigation team gave the following advice and comments:(1) Measures suggested (in order of priority) based on the analysis of the power consumption data.
Although it is appreciated that the members of the EC Committee are dedicated to thepatrolling and collection of data on equipment use, how the data are analyzed is also important.
For example, the data may be classified according to the processes and areas concerned, butthey should be further classified according to use (such as illumination, air conditioning,
compressed air, and pumps). The data should then be analyzed in order to set priorities based on
their importance and effectiveness for energy conservation.
(2) Key points for selecting appropriate operating conditions and facility capacities
In the on-site survey, it was found that some facilities are oversized for the capacity actuallyrequired. It is necessary to adjust their size according to actual operating conditions. It is also
necessary to maintain high efficiency in accordance with the fluctuating load. One example ofan inappropriate specification is the air compressor outlet pressure of 0.8MPa. This value is too
high.
Mr. Mulyo said that 0.8MPa was required to prevent thread breakage in cone winding, but thepressure gauges for compressor operation and the receiver tank actually indicated 0.7MPa.
(3) Keeping efficiency high by carrying out regular maintenance
Maintenance plays an important role in keeping EC efficiency high. For example, periodically
IV‐34

checking the leakage of compressed air pipelines and repairing when necessary is an effectivemeans of ensuring efficiency. Grati Plant explained that they check for leakages once a week.
(4) Investment in energy conservation is necessary in the future
It seems that Grati Mill has either not invested in energy conservation at all or has carried out
only a small investment in energy conservation which has now finished. Further investment isrequired to promote EC in the future.
(5) Advice and comments from Mr. Parlin (MOE) are as follows:
1) Openings on the vacuum suction part of the roller-beater used in the blowing process should
be closed.
2) Suction air for the ventilation fan in the air compressor room should be taken directly fromoutdoors (where the temperature is lower than that of indoor air).
3) Ventilation in the main transformer room should be improved in order to lower the ambient
temperature.
3.3 Recommendations for Improvements and Expected Effects
The following are recommendations for improvements proposed by ECCJ (in addition to theadvice and recommendations described above).
(1) Controlling the cold water temperature of the turbo chiller
Two 800RT turbo chillers are installed. Although detailed operating conditions are not known,
the general principles of energy conservation using cold water and cooling water are as follows:
The following conditions are required to increase the COP of refrigerator operation:- Load factor (= capacity ratio) should be higher.
- Cooling water temperature should be lower.
- Cold water temperature should be as high as possible.
Power consumption is expressed by “total power = power of cooling water pump + power ofcooling tower + power of refrigerator”. All these components must be considered
comprehensively.
Generally speaking, in any turbo refrigerator controlled by speed, the total power consumption
drops when the cooling tower is not controlled. However, it is said that when controlled only by
the suction vane, the total power consumption still drops even when the cooling tower iscontrolled. Optimum operation patterns therefore need to be set, in relation to the season, andboth alternatives compared.
1) Energy conservation by raising the temperature of the cold water
Figure IV-3-1 shows the relationship between the cooling water temperature, cold watertemperature, and power required for the motor (corresponding to power consumption).
The graph shows the required motor power when the cold water temperature and coolingwater temperature are changed (taking the base cold water temperature as 32℃ and baseIV‐35

cooling water temperature as 5℃). When the outlet temperature of the chiller is raised from
5℃ to 7℃ and then to 9℃, the power consumption (motor power) decreases to 96% andthen to 92% if the cooling water temperature is maintained at 32℃.
This means that raising the cooling water temperature when the load is light can reduce thepower consumption.

Motor Power (%)

110
100

100

96

Inlet Temp.
of Cooling Water (℃ )

92

90
32℃
30℃
28℃
26℃

85
80
70

5

7
9
Outlet Temp. of Chiller (℃ )11Figure IV-3-1 Relationship between cold water temperature cooling water temperature,and motor power (turbo refrigerator)
2) Energy conservation by changing the cooling water temperature
The performance of a cooling tower depends on the wet bulb temperature. Table IV-3-1 shows
meteorological data from the Surabaya region.
Table IV-3-1 Temperature and humidity in the Surabaya region
Items

Max.

Min.

Ave.

Ambient Temperature (ºC)

32

29

30

Relative Humidity (%)

80

55

65

Wet Bulb Temperature (ºC)

29

21

25

The wet bulb temperature was calculated from ambient temperature and relative humidity.
The wet bulb temperature varies between 21ºC and 29ºC. Figure IV-3-2 shows the relationshipbetween the wet bulb temperature and cooling water temperature at the outlet. Since thecooling tower is usually operated with ∆t = 5ºC, the minimum temperature of the coolingwater is 28ºC and the maximum temperature is 33ºC.
By lowering the cooling water temperature from 32ºC to 28ºC while the cold-watertemperature is kept at 9ºC, the refrigerating capacity increases by about 8% (= 1-85%/92 =0.08) so that the motor power required decreases.

IV‐36

It depends on the method used to control the capacity of the refrigerator whether it is better tosave the energy of the cooling tower by fixing the cooling water temperature at 32ºC or tosave the energy of the refrigerator by lowering the cooling water temperature according to thedecrease in the wet bulb temperature. The cooling tower and refrigerator should both be taken
into consideration when choosing the optimum operation pattern to use in order to save power.

OutletTemperature((ºC)℃)
OutletTemperature

35
30
25
⊿ｔ＝5 ℃⊿ｔ＝4 ℃⊿ｔ＝3 ℃

20
15

8 10 12 14 16 18 20 22 24 26 28 30

Wet
Bulb
Wet
BulbTemperature
Temperature (ºC)

Figure IV-3-2 Relationship between the wet bulb temperature andcooling water temperature of the cooling tower(2) Air compressor
Four screw type compressors with 30kW motor each are operated with the control of thenumber in operation. Although there are some problems in the treatment of waste heat, nosignificant problems have been identified in the arrangement of the facilities and the installation
environment. The following items should, however, be taken into consideration in order topromote energy conservation:1) Discharge pressure and power consumption
The control range of 0.65 – 0.8MPa for the discharge pressure is relatively high.
A decrease in the discharge pressure would be desirable, based on the required pressures forequipment loading.
Possible measures are:Low-pressure load:

Reduction of pressure using a pressure reducing valve.

High-pressure load:

Investigation of the possibility of increasing the pressureusing booster.

Air pressure for the cleaner can be reduced to about 0.3MPa.
2) Air pressure and air leakage
Compressed air from the compressors is supplied to all equipment through pipelines, resulting
IV‐37

in pressure loss caused by friction in the pipelines and flow loss due to leakage. The pressure
loss is adjusted considering the piping costs and the flow loss can be controlled, aiming atzero leakage. Please refer to Item 2 for details of the leakage measurements andcountermeasures.
(3) Automation of collection and control of data
Let us now discuss energy conservation in the production line. Energy consumed can be divided
into effective energy that is utilized for the production process, and ineffective energy that iswasted. Ineffective energy derives from defective products, waiting time loss, loss caused bymachine faults, and material loss. Figure IV-3-3 shows effective energy and energy loss in the
production line.

MachineMachineproblems
TroubleMaterial loss

Ene rgyloss
Effective
EnergyEne rgylos s
DefectWaiting time

Figure IV-3-3

Effective energy and energy loss

Since there is little material loss in Patal Grati Mill because materials are not processed there,
other losses are discussed below.
1) Loss due to defective products
The energy that has been used to produce defective products represents the ineffective
consumptionofenergy.

Consequently,

activitiesfor

improving

yield

are

also

energy-conservation activities. Among the factors that affect yield and quality, the following
are those related to environmental control of the workplace.
In Patal Grati Mill, the temperature and humidity in the plant are periodically checked andcontrolled. However, there are concerns about the control system used and the speed of
response because the number of sampling points is limited and the data is collected manually.
Since temperature and humidity are important factors that affect quality and yield, a system isrequired that can constantly monitor and maintain the environment. Particularly in workplaces
where products are produced on a continuous basis, it is necessary to assess the situation andtake immediate measures in an emergency. With this in mind, the next step that Patal Grati
Plant should take is to automate the data collection and control procedures.
Temperature and humidity sensors are easily obtained and there is plenty of watt-hour metersIV‐38

available equipped with a data transmission function. It is recommended that a system beconstructed utilizing such functions.
2) Loss due to machine breakdowns and waiting time
The energy lost due to machine breakdowns and waiting time is ineffective energy that does
not contribute to production. Waiting time is a matter of production scheduling and theoccurrence of machine breakdowns is a matter of maintenance.
Patal Grati explained its system of preventive maintenance in which maintenance isimplemented periodically so that breakdowns are avoided. This system is recognized as being
very effective. It is suggested that this maintenance system could be improved further byadding an automated system for the trend control of deterioration and abrasion of equipment.

IV‐39

4. Seminar and Workshop
4.1 Summary
A seminar Workshop was held on December 12, 2005 (Mon).
At the Seminar Workshop, the Honorable Mr. Soekanar of the Ministry of Energy and Mineral
Resources made the opening speech and Dr. Weerawat, Director General of the ASEAN Center
for Energy (ACE) gave the closing speech. There were about 60 active participants and theWorkshop was very successful and productive.
(1) Date and time
December 12, 2005 (Mon) 8:30: registration 17:30: closed(2) Venue
Gran Mahakam Hotel, 2F (Ball Room), Jakarta, Indonesia(3) Reports presented on the Seminar and Workshop
The program of the Seminar Workshop is described in Material No. D-111.
ACE reported on the EE&C activities of ASEAN, and ECCJ explained the guidance on energy
conservation matters in the industry. It seemed that private participants were disappointed that
the Indonesian government did not report anything at the seminar.
The Indonesian pulp and paper mill for which we made the follow-up energy audit submitted areport and other ASEAN countries such as Lao PDR, Malaysia, Philippine and Thailand also
made presentations.
(4) Participants
Major participants were as follows:Indonesia:
Mr. Soekanar, Secretary for Director General, MEMR, Directorate General of Electricity
and Energy Utilization (DJLPE or DGEEU)
Ms. Maryam Ayuni, DJLPE, MEMR
Mr. Ir. Parlindungan Marpaung, Inspektur Ketenagallistrikan, DJLPE, MEMR
Ms. Sutji Rahayu, Tariff Expert, Marketing Division, PNL
Mr. Djoko, Manager of R & D, PT Kertas Leces (Persero)
About 60 Indonesian delegates from government offices and various industries attended
the seminar. Although we asked to see the list of participants later, in an electronic form,
we have not received it yet.
ACE:
Dr. Weerawat Chantanakome, Director General
Mr. Christopher Zamora, Project Manager
Mr. Ivan Ismed, Project Officer
Mr. Junipard
Ms. Maureen
IV‐40

Ms. Tewi
Laos:
Mr. Vanthong Khamloonvylayvong, Deputy Manager of Nam Ngum Hydropower Plant,
Electricite du Laos (EDL)
Malaysia:
Mr. Pubalan, Energy Auditor, PTM
Philippines:
Mr. Marlon Domingo, DOE
Thailand:Mr. Arthit Vechakij, Managing Director, Excellent Energy International Co., Ltd.
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical experts
4.2 Results of the Seminar and Workshop(1) Opening ceremony (congratulatory address and opening speech)1) Speech by ACE
Dr. Weerawat, Executive Director of ACE, stated in his speech that, in recognition of therecent high price of crude oil, energy conservation was now more important than ever. He also
explained that the basic plan for the period from 2004 to 2009 was decided at the ASEAN
Ministers Meeting held in Manila last July and he then introduced the activities of PROMEEC
and the outline of the program for the day.
2) ECCJ
Mr. Tanaka, representing Japan (METI and ECCJ), made a speech. He explained thesignificance, history and recent developments of this project, and described Japan’s
cooperation with and contribution to ASEAN.
3) DJLPE
The Honorable Mr. Soekanar made a speech explaining the energy-conservation policies of
the Indonesian government and announced the opening of the meeting.
(2) Session 1: Policies and initiatives on EE&C
1) Overview of ASEAN Plans and Programs on EE&C (Dr. Weerawat, ACE) (Material No.
D-127)The establishment of ASEAN in 1967 and its subsequent development was explained from theviewpoint of geopolitics, and the history and the present role of ACE were outlined. Mention
was also made of “ASEAN+3” that had been held in Kuala Lumpur just before the seminar.
He then introduced the outlook for primary energy every 5 years until 2010, in ASEAN region
and predicted that the consumption of oil would decrease and that of natural gas would
increase. Furthermore, he remarked that the estimated amount of investment necessary for thedevelopment of energy resources in each ASEAN countries adding that the amount ofIV‐41

Indonesia is enormously large. He also reported that basic principles are being negotiated with
the EU on the Energy Charter Secretariat. Six basic strategies for Multinational Cooperationin the period between 2004 and 2009 were also explained.
2) Initiatives and Programs of ECCJ on EE&C in Industry in Japan (Mr. Tanaka, ECCJ)(Material No. D-128)
Mr. Tanaka outlined the status of energy consumption in Japan, the history of energy
conservation, methods of energy conservation, designated factories, qualified persons forenergy management, ECCJ activities such as energy audit, education and training courses, andpresented successful cases of energy conservation and the award system.
(3) Session 2: Presentation of successful cases of EE&C in industry
1) Paper and pulp industry, Indonesia – Mr. Djoko
The attendees seemed to be interested in the explanation given about the conversion fromheavy oil to natural gas and then to coal. Fuel prices largely depend on governmental policies(such as subsidies and taxes) so it is necessary to note the difference between countries. The
report was made based on Material No. D-115 together with Material No. D-129 “Recent
difficult situations”, as explained when the investigation team visited the mill.
2) Hydroelectric power generation, Laos – Mr. Vanthong (Material No. D-130)
This report was the same as that presented at the Cambodian PROMEEC Seminar Workshop.
Neatly arranged data since 1972 were reported in a series of graphs.
3) Glass and textile industries, Malaysia – Mr. Phubalan (Material No. D-131)
This report was about the glass industry (JG Containers) and the textile industry (AMDB).
What impressed us was that PTM is functioning as an Energy Auditor and that high quality
portable measuring instruments are being used.
4) Steel industry/cement industry, Philippines – Mr. Domingo (Material No. D-132)
The present situation of the Philippine steel industry and the activities of two companies (arolling mill company and a steel sheet coating company) who received Don Emilio Abello EEAwards in 2005 were reported. This Award honors distinguished companies involved in EE
activities in the Philippine industry. In addition, some comments were made on the cement
industry, based on information Mr. Domingo had received from one of his friends.
5) Biomass, biomass cogeneration, and ESCO, Thailand – Mr. Arthit (Material No. D-133)
Mr. Arthit, the president of ESCO, talked about cogeneration, which is his favorite subject,
and about ESCO (rather than the scheduled topic concerning a caustic soda plant). He was
asked to fill in for Mr. Prasert (FP of Thailand) just before the Seminar. Although his
presentation was not related to successful cases, his story was highly instructive, including 10
KFS (Key Factors for Success). The attendees showed much interest and there were manyquestions.
(4) Session 3: The Way Forward
1) Barriers and Measures for the implementation of EE&C – Mr. Ogawa (Material No. D-117)
IV‐42

This presentation was based on past data, with the Indonesian paper industry in mind andreferring to the reports submitted earlier that day.
2) Technical Directory – Mr. Amano and Mr. Ivan, ACE (Material No. D-138)
The purpose, method of preparation and format of TD were explained, and examples were
presented to help develop a better understanding. Mr. Ivan presented several actual examplesof TD sheets.
3) Database/Benchmark/Guidelines for Industry – Mr. Ogawa (Material No. D-119)
A plan to construct an ASEAN database by linking the databases of participating countries
was outlined.
(5) Q&A Session
Questions and answers were exchanged at the end of each session. There were as many as 20
brisk questions in total. The following are some of those questions and answers:
Q: How can Indonesian private companies ask ECCJ for an energy audit? (There wereseveral similar questions.)
A: ECCJ acts within the framework agreed upon between governments. For general issues,
it is recommended that you consult the government of your own country or ACE.
Q: Who funds the “Low Interest Loan” which is one of the incentives for EC in Thailand?
A: A gasoline tax of 0.04 baht/L is collected and this is used as an energy-conservation
fund. The government lends the money to private banks with interest set at 0.5%. The
banks then loan this money to those who implement EC, with interest set at 4%.
Many other questions, in addition to those described above, were also asked relating tobio-diesel, risk management of ESCO, time of completion of TD, etc.
(6) Closing speech
After the comments made by the three VIPs (including Ms. Maryam, speaking on behalf of
Mr. Soekanar of Indonesia), Dr. Weerawat closed the meeting with a final speech.

IV‐43

V. Brunei (Cement Industry and Food Processing Industry)
1. Outline of the Activities
This survey includes a follow-up energy audit of a cement company whose initial (Phase 1) energy
conservation audit was carried out in February 2001, and a new walk through energy audit
implemented for energy conservation at a beverage factory. A seminar workshop was also held in
Bandar Seri Begawan (BSB), Brunei, at which case study of energy conservation activities invarious industries were reported.
The follow-up energy audit and survey of the cement factory was only a walk through energy audit
and no measurements were carried out using instruments. Many people participated in the diagnosis
including FP representatives from the government. ECCJ played a key role in the energy audit andthe company presented the results of its energy conservation activities over the past five years.
There were many participants in the energy audit of the beverage factory as well and several people,
including the factory manager, also participated in the seminar workshop.
1.1 Implementation Period
14 to 17 December 2005
1.2 Sites of implementation
Follow-up investigation:

Cement factory: Butra Heidelberg Cement SDN BHD

New walk through energy audit:

Beverage factory: Kingston Beverage & Creamery Sdn.
Bhd

Seminar workshop:

Center Point Hotel, 6F (Purple Jade Room), BSB, Brunei
Darussalam

1.3 Schedule (Material No. D-102)
December 14 (Wed): Follow-up energy audit of the cement factory of Butra Heidelberg
15 (Thu): walk through energy audit of Kingston Beverage & Creamery
16 (Fri): Observation tour of oil fields in Seria (Western Brunei). (Observed the oilfields from the car)
17 (Sat): Seminar workshop
1.4 Relevant Persons
ACE:
Dr. Weerawat Chantanakome, Executive Director
Mr. Ivan Ismed: Project Officer
Brunei: Prime Minister’s Office, DES
Mr. Hj Umar bin Hj Mohd Tahir, Head of Energy Policy & Planning
V‐1

Mr. Haji Abd Shawal bin Yaman, Energy Division
Mr. Pg. Zamra(Pg. stands for Royal Family.)Mr. Ismail bin Hj. Mohd. Daud, Head of Safety and Enforcement Unit
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts

General situation in Brunei Darussalam(1) General information on Brunei- Area:5,765km2- Population:

350,000 (2003) (including foreign residents)- Religion:

Islam (national religion), Christianity, Buddhism, Taoism, etc.

- System of government: limited monarchy- Economy:

Major industry:

petroleum and natural gas

Nominal GDP per capita:
Currency:

US$13,418 (provisional for 2003)

Brunei dollar (equal to the Singapore dollar, 1 Brunei dollar
is about ¥65, as of January 2005)

Trading (2003):
Exports:

Petroleum and natural gas (about 90% of total exports) areexported to Japan (41%), Korea (11%), and Thailand (9%).
Total export value is US$4.4 billion.

Imports:

Machinery,transportation,industrial

products,

andfoodstuffs are imported from Singapore (20%), Malaysia(20%), U.S.A. (12%), and Japan (10%).
Total value of imports is US$1.3 billion.
- Economic situation: Abundant petroleum and natural gas resources maintain a stable economy
and a high income level. However, Brunei aims to diversify its economy bydeveloping downstream industries related to petroleum and to reduce its
excessive dependency on energy resources.
In the past, Japan provided ODA mainly in the form of technical development,
but this assistance was terminated in January 1998 after Brunei became an
ODA graduate country in January 1996.
(2) Energy situation
Brunei is a producer of petroleum and natural gas, exporting significant amounts to Japan,
Korea and other countries. There is a monument in the oilfields of Western Brunei thatcommemorates the production of one billion barrels of petroleum in 2000. The price ofgasoline at December 2005, was B$0.5/L (= US$0.32/L) and electricity price was
B$0.07/kWh (= US$0.045/kWh).

V‐2

2. Follow-up Survey of the Cement Factory of Butra Heidelberg Cement (BHC)
2.1 Outline of the Cement Factory of Butra Heidelberg Cement (BHC)(1) Outline of the company
Name of the company: Butra Heidelberg Cement SDN BHD (a 50-50 joint venture with aGerman cement company)
Name of factory:

Butra Heidelberg Cement (BHC) Factory

Location:

Lot 3, Serasa Industrial Area, Muara BT1728

Product:

Ordinary Portland cement (shipped by tank trucks and packed in
paper bags)

Amount of production: 220,000-250,000 t/y
Number of employees: 110 (February 2001)
Working system:

Three shifts, eight-hours per shift(2) The cement production process and energy consumption
The following is a summary of what we learned from our two visits:
1) Outline of the operation
Butra Heidelberg Cement Factory (BHC) was established in 1993. It is about a 30-minutedrive from Bandar Seri Begawan, the capital of Brunei, and is the only cement factory inBrunei that specializes in crushing cement. The company is a joint venture with a German
company and was originally called Butra Heidelberger Zement before it changed its name.
The production capacity is 500,000 tons per year but the present annual production is only
250,000 tons due to the stagnant economy. All the raw materials, cement clinker and gypsum,
are imported from East Asian countries such as Japan and Taiwan. The harbor has a water
depth of 9 meters and permits the berthing of 25,000-ton vessels. While two vessels usuallyenter the harbor monthly, only about one vessel enters each month at present due to the lowlevel of production. The factory has a production line with a closed-circuit tube mill whose
capacity is 72 tons per hour and a high performance O-SEPA (Onoda type) separator.
Storage facilities include a clinker silo, storage of gypsum, and two cement silos, andshipping facilities include packers and tanks for loading the materials onto trucks.
The factory has obtained ISO9002 certification in 1997, which proves its high level ofquality. Measures are taken for dust prevention, and dust collectors (of the 1-bag
filter/hopper type), dust prevention nets, and water sprinklers are provided.
2) Facilities
Clinker storage silo:

50,000t × 1unit

Gypsum storage:

6,000t × 1unit

Finishing mill:Type of finishing mill:

Closed-circuit type tube mill × 1unit
V‐3Crushing capacity:

72t/hMill size:

4,200mm diameter × 10,500mm length

Mill motor capacity:

2,800kW

Separator:

O-SEPA･N-1500 type × 3,000mm diameter

Mill bag filter:

Dust collecting capacity 10,000m /h × 1unit

3

3Mill bag filter fan:
110,000m /h × 700mmAq × 355kW × 1unit
Cement transport equipment:
FK screw pump 80t/h × 55kW × 2units
Cement storage silo:

Capacity 7,000t × 2units

Power receiving facility:

Receiving voltage: 11kV, transformer: 7,500kVA3) Amount of energy consumption
Electricity is the only energy source. Table V-2-1 summarizes the production, power
consumption, and unit consumption of electricity from 2000 to November 2005, based on
the data provided by BHC.
Table V-2-1 Energy consumption (2000 to 2005)

Items
Production
Energyconsumption(Entire Plant)
EnergyIntensity
Energy Price

Cement(t/y)
Electricity(MWh/y)Electricity(kWh/t)Electricity(US$/kWh)

2000

2002

2004

232,174

231,697

247,733

2005(1~11)
213,240

14,723.4

14,296.4

16,674.64

14,150.8

63.42

61.70

67.31

66.36

0.045

0.045

0.045

0.045

Improvement(2004/2000)[2005/2000](1.07)[1.0](1.13)[1.05](1.06)[1.05](1.0)[1.0]

2.2 Outline of the Results of the Previous Energy Audit of BHC Cement Factory
The aim of the previous energy audit was to survey the cement crushing line. The results oftemperature and pressure measurements were close to specified values, which suggested fairly
good operating conditions. We recommended implementing the following items to further
improve energy efficiency under these operating conditions.
(1) Upgrading and maintenance of sensors and meters (for pressure, temperature, and electric
power)The piping of pressure gauges had been left in a clogged condition, electrical meters were notworking, and all the sensors and meters were uncontrolled. Since it is very important thatmeters and sensors function correctly and without error in order to ensure the normal andV‐4efficient operation of facilities, as well as to prevent accidents, daily checks of measured values
and periodic calibration of all instruments are required.
(2) Utilization of the exhaust from the dust collector as secondary air for the O-SEPA
Although ambient air is used as secondary air for the O-SEPA, the specification of the O-SEPA
permits the use of air containing dust. Dedicated dust collector (bag filter) is installed in frontof the mill to collect dust from the clinker hopper and the gypsum hopper. Since this dust
collector is located close to the O-SEPA, connecting the dust collector and the secondary airduct of the O-SEPA with pipelines can use the exhaust from the dust collector. This reduces theoperation of the dust collector and saves power. Furthermore, maintenance of the dust collector
is no longer needed so that maintenance costs are also reduced. The annual saving in power
consumption (43.8MWh/y) and maintenance costs could total US$5,300.
(3) Changing the method of cement transport
A screw pump, which is a type of pneumatic conveying system, is used for the transport ofcement to the storage silo. Generally speaking, pneumatic conveying systems (such as airlifts
and screw pumps) consume about three times more energy to transport the same amount of
cement than mechanical conveying systems (such as a combination of air slides and bucket
elevators). Therefore, changing the screw pump to a mechanical conveying system should beconsidered. Savings in power consumption (188MWh/y) would reduce the power cost by
US$8,600/y.
(4) Preparation of manuals and check sheets for periodic maintenance
To prevent the malfunction of facilities, periodic maintenance should be carried out. To do this,manuals and check sheets that stipulate standards for the repair and replacement of facilities
must be prepared in order to facilitate preventive maintenance.
(5) Measures for preventing any recurrence of breakage in the clinker shoot and gas duct
The amount of wear on the gas ducts and clinker shoot is remarkable. Even though this damageis repaired immediately, the repair work is always done in the same way so that the cycle ofwear-damage-repair is simply repeated. The actual causes of the damage should be identified inorder to prevent any recurrence of the problem.
(6) Dividing the air layer of the air slide
Since the long air layer of the air slide is not divided, any breakage of the canvas (even at asingle point) causes clogging of the raw material all over the air layer so that the operation is
stopped. Furthermore, once such an accident has occurred, considerable labor and time are
required to restore operations. The air layers should be divided so that any damage is limited,
thereby enabling the operation to continue.

V‐5

2.3 Follow-up Energy Audit
We visited BHC Cement Factory to carry out a follow-up energy audit on the progress made in
addressing the issues raised in the previous visit and to review new activities.
(1) Date of Energy Audit: December 14 (Wed), 2005, 9:00 – 16:30(2) Audit team members:
Brunei: Prime Minister’s Office, Department of Electrical Services (DES)Mr. Hj. Abd Shawal bin Yaman, Energy Division (Focal Point)
Mr. Ismail Bin Hj. Mohd Daud, Head of Unit, Safety and Environment
Mr. Junidi bin Hj. Jafar
Mr. Hj. Nor Amin bin Mohd Yassin
Mr. Hj. Shamshul Zamicse bin Hj. Sabtu
Mr. Ahmad bin Hj. Mohammad
Mr. Mohad. Tazim bin Akub
Mr. Hj. Aziz bin Hj. Ali
Ms. Dyg. Noor Dina Zhrina binti Hj. Yahya
Brunei: Professors of University of Brunei Darussalam (UBD)
Dr. A. Q. Malik (from Pakistan, specialist in materials)
Dr. M. Blundell (from Britain, specialist in electrical engineering)
Japan: International Engineering Department, ECCJ
Messrs. Hideyuki Tanaka, Fumio Ogawa and Hisashi Amano, Technical Experts(3) Attendees from BHC:
Mr. Ardi Widjaja, General Manager
Mr. Achmad Hidayat, Maintenance Manager (attended the previous audit)
Several other people(4) Outline of the follow-up investigation
The ECCJ team carried out an energy audit at this factory in February 2001, and the present
visit was for a follow-up energy audit. This was their second experience of energy audit for
BHC since the start of operations.
As shown in the list of participants, above, many people from DES participated in theinvestigation, including a lady from Perth who was studying “renewable energy” in Australia,
and two professors from foreign countries who had been teaching at the University of Brunei
Darussalam for a long time. According to Mr. Yaman of Brunei FP, the reason for the high levelof DES participation was to train staff members of DES by OJT in the energy audit.
The investigation included BHC’s explanation of activities relating to energy conservation overthe past five years, confirmation of questions from BHC, walk through audit, and the
explanation and discussion of further improvements. When we visited the factory, operation
V‐6was under a halt due to a failure at the mill and only the shipping facilities were operating.
Since we received the written replies to the questions that had been submitted to DES throughACE (included in Material No. D-108) on the way to visit BHC, the investigation proceededsmoothly. However, the report on Phase 1 had not been sent to BHC so it was necessary to
explain some of it to them.
We found that their business prospects were worsening because of low-cost cement imported
from China since July 2005. As a result, the company is facing a serious crisis with a low
operating ratio of only about 50%, making it difficult to invest in energy conservation.
The president of the German stock-holding company only visits the factory once every threemonths, for several days at a time, and no technical assistance is provided. The factory manager,
Mr. Wdjaja, has had experience working at the Indonesian Cement Company, located about
30km south of Jakarta. He was doing his best to cope with the low operating ratio.
The government of Brunei announced that December marked the start of an energy
conservation campaign and the activities of PROMEEC appeared in newspapers in both
English and the Bruneian language.
We obtained the following materials from BHC:
“Brochure about BHC”, “Power consumption in 2005”, “Table showing the operating ratio of
the mill” and “Material for presentation at the seminar”
2.4 Results and Discussion of the Investigation(1) Recent changes in the situation and operating conditions of the facilities
As described in Material No. D-135, demand from the Brunei domestic market recorded amaximum value of about 770,000 tons in 1996 and has decreased since then due to theeconomic stagnation in the region. Demand over the past five years has varied from 230,000 to
250,000t/y, which corresponds to about 50% of the maximum production capacity of
500,000t/y.
The quality of the cement produced by BHC is a little higher than that of regular cement due tothe higher content of clinker, but BHC is not competitive because their factory is not an
integrated operation provided with its own kiln, and neighboring countries charge import duties
of about 5%. Therefore, it is difficult for them to export their products. In addition, inexpensive
Chinese products (of uncertain quality), which are imported tax-free into Brunei, began toinvade their market in July 2005. About 20,000 tons of cement has been imported from China.
(2) Status of production and unit consumption of energy
Electricity is the only energy source used, and this is purchased from the government (DES).
The unit consumption of electricity in the mill is 50-56kWh/t-product. In 2005, the electricity
consumption was 55.4kWh/t in January and 57.9kWh/t in November, which was a little higher
than usual. These values are about 84% (on average) of the unit consumption of electrical
power for the whole factory. It was explained that consumption would only be 45kWh/t if theplant had been operating at 100% of production capacity and that the inferior power
V‐7consumption was due to the higher quality of the products produced and the increased loss
caused by the starting and stopping brought about by the low operating ratio.
(3) Walk through energy audit of the cement factory
During the plant tour, we inspected the mill and the drive unit in the crushing plant, the raw
material feeders for clinker and gypsum, the dust collectors, electric room, cement transport
devices, receiving equipment for clinker and gypsum, and the storage silo, cement silo, aircompressors and cement-bagging devices. The facilities were almost the same as thosedescribed in the previous report. The finishing mill, which is a major user of electricity, was notoperating due to a problem that had occurred two days before. In the previous report, it waspointed out that the mill motor (made in China) could not achieve the rated crushing capacity
due to the restriction placed on its use by the bearing overheating. The motor had therefore
been replaced with one made in the U.S.A. Although the new motor has only the same capacityof 2,800kW, it can be used without problems because of its higher design temperature.
The only facilities operating at the time of the investigation were the cement-bagging machine
and the loading machine for tank trucks. Products were being shipped in bulk using tank trucks
and packed in bags. These are 50kg bags made of paper and printed with a mark indicating thatthe product conforms to BS certification. The overall impression gained was that theworkplaces were disorganized.
The factory had received ISO9001 and ISO14001 certification since the previous energy audit.
The following comments are based on those issues discussed during and after the walk throughenergy audit.
(4) Power receiving and distribution system.
Electricity is received at 11kV and reduced to a high voltage of 6.6kV by a 7,500kVA
transformer. Motors (2,800kW) for the mill and fans (355kW) for conveyors are operated withthis voltage. A phase advance capacitor of 1,200kvar is provided for the high voltage line.
However, since costs are not charged to the power factor in this country, the only advantage
gained is loss reduction at the main transformer.
It seems to be insecure that only one receiving transformer is installed. Since the factory only
operates at 50% of full capacity, and from the viewpoint of energy conservation, it would bebetter to use two transformers of about 3,000kVA each.
Electricity at a low voltage of 380V is obtained from the 6.6kV supply using a 1000kVA
transformer. A phase advance capacitor is also provided for the low voltage line to reduce theloss in the distribution system.
We commented on these matters as follows:
1) Problems relating to the present power receiving and distributing system
The data for 2005 show that 84% (= 11,956MWh/14,151MWh) of the total power
consumption is high voltage power for the mill. The operating ratio of the mill is only about
50% (47% by calculation) due to the reduced production level. Figure V-2-1 shows aschematic diagram of the existing power receiving and distribution system.
V‐8

11kV
MOF
7,500kVA
6.6kVMill & related
facilities

1,000kVA
380V
Other
facilities

Figure V-2-1 General connection diagram for the power receiving and distributing system
The demand factor (= maximum power demand/facility capacity) of the receiving transformer
is 47% (= 3,500kVA/7,500kVA) when the mill is operating but only 4% (=300kVA/7,500kVA) when the mill is idle. Therefore, the amount of electric power required
for the mill is assumed to be 3,200kW, and the amount of power and the power factor of theother facilities are assumed to be 300kW and 100%, respectively.
2) Remedial plan
The following procedure is recommended to reduce the loss from the 7,500kVA transformer
in the low-demand period.
Use the 7,500kVA transformer only for the mill and parallel off when it is not operated. Thiseliminates the loss from the 7,500kVA transformer during the low-demand period. Install a
750kVA transformer for the other facilities. The transformer can be connected to the 11kV
power source separately. Figure V-2-2 shows the connection diagram for the remedial plan.
11kV

MOF

CB
750kVA
7,500kVA
6.6kVMill & related
facilities

380V
Other
facilities

Figure V-2-2 Power receiving and distributing connection diagram for the remedial plan3) Estimation of benefits
Assuming that the demand for mill-related power is 3,200kW, and it is operating 50% of thetime, while the other facilities use 300kW constantly throughout the day with a power factorof 100%, then the benefits can be estimated as shown below. (The values shown in Table
V‐9

V-2-2 are used for the no-load loss and load loss of the transformers).
Table V-2-2 Loss characteristics of transformers used for receiving and transforming power
Transformer Capacity

No-load Loss (kW)Load Loss (kW)7,500kVA

14.5

60.6

1,000kVA

1.88

11.89

750kVA

1.44

9.52

The transformer loss per day is found by calculating the load loss and no-load loss, as
follows:- Transformer loss in the present arrangement
7,500kVA transformer: 14.5kW × 24h/d + 60.6 kW × (3,500/7,500)2 × 12h/d+ 60.6 kW × (300/7,500)2 × 12h/d = 507.5kWh/d
1,000kVA transformer: 1.88kW × 24h/d + 11.89kW × (300/1,000)2 × 24h/d =70.7kWh/d- Transformer loss in the improved arrangement
7,500kVA transformer: 14.5kW × 12h/d + 60.6 kW × (3,200/7,500)2 × 12h/d =306.4kWh/d
750kVA transformer: 1.44kW × 24h/d + 9.52kW × (300/750)2 × 24h = 71.1kWh/dThus, the following energy conservation benefits are obtained:(507.5+70.7)kWh/d - (306.4+71.1)kWh/d = 200.8kWh/d (= 73MWh/y).
Assuming that the power consumption in 2005 is 15,437MWh (=14,151MWh × 12/11), thenthe improvement ratio is:
73MWh/15,437MWh = 0.0047 (= 0.47%).
In this plan, while the 7,500kVA transformer requires only a change of connection, the750kVA transformer must be newly installed. Since the improvement ratio is not very high,this plan should be implemented in the future on a suitable occasion unless low voltage powerreceiving is possible.
(5) Air compressors
Two screw type compressors of 200hp (= 149kW) are currently installed. When we visited thefactory, one of them was still operating even though the factory was almost at a halt. It was
explained that discharge pressure was controlled between 105 and 90psi by capacity control
and that the pressure was about 103psi. Load/unload action was not observed. However, thepressure was reduced to about 90psi when the regenerative cooler was operated in theregenerative mode. (Note: 100psi = 0.689MPa)
A receiver tank is provided for each air compressor, next to the cooler, from which the air is
supplied throughout the plant. Although a pressure gauge was provided at each receiver tank, it
was hard to read the gauge because cement powder covered the surface of the gauge. One of
the facilities making use of the air was the packing equipment, and the pressure for thisV‐10equipment was kept stable at 0.6MPa. However, it seemed that pressure control was insufficientbecause a rubber tube of about 10mm diameter, probably used for cleaning, was attacheddirectly to the piping system.
We asked whether the regenerative cooler was really necessary for the cement factory. Their
reply was that it was necessary because problems had resulted when they had carried out
experiments at high dew points. They also said that the pressure could not be reduced. There
must be problems involving the capacity of the air compressors.
1) Discharge pressure and power consumption of the compressors
Compressed air supplied to the plant is dried first in adsorbent type dryers. On the day wevisited, one dryer was operating and another was on standby. The discharge pressure of
0.7MPa seems to be too high.
Table V-2-3 shows the effect on energy conservation resulting from a reduction in discharge

Power consumption ratio to basepressure from the present 0.7MPa standard.

Base pressure: 0.7MPaG
1.1
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3

18%

0.4

0.5

0.6

0.7

0.8

Discharge pressure (MPa)Figure V-2-3 Relationship between discharge pressure and power consumption
Reducing the discharge pressure from 0.7MPa to 0.6MPa saves about 10% of power andabout 18% by reducing it to 0.5MPa. After studying the pressure needed for each load
facility, it is therefore recommended that the discharge pressure be reduced.
Possible measures for reducing the pressure are:Low-pressure load: Reducing the pressure using pressure-reducing valves
High-pressure load: Increasing the pressure using a booster
The air blow pressure for cleaning can be reduced to about 0.3MPa.
2) Pressure and air leakage
The compressed air generated by the air compressors is supplied to all facilities throughpipelines, during which some pressure and flow volume are lost, as shown in Figure V-2-4.

V‐11

Compressor

Terminal system

Pipe line

Pi
Qi

Loss

Po
Qo

ΔP
ΔQ

Pi
ΔP

Pressure lossPo
Leakage loss
Air power
at terminal system
ΔQ
0

Qo

Qi

Figure V-2-4 Pressure loss and air leakage
In the figure, ∆P is the loss generated by friction, the curvature of the pipe, and expansion andreduction of the pipe, while ∆Q is the leakage from the pipeline. The former problem is set
based on the balance with the piping cost and the latter can be controlled, aiming at zeroleakage.
3) Flow control and air leakage control
The factory air compressor system is centralized. While such a system has advantages inensuring the effective utilization of facilities and centralized control, air leakage and pressure
loss due to the long pipelines and an imbalance between supply and demand are apt to occur.
Therefore, careful control is required for effective operation.
Since little air is consumed when the plant is not in operation, this is an opportunity to install
flow meters to control the airflow and implement periodic air leakage checks.
Generally speaking, leakage of 3 to 5% occurs even in newly installed pipelines and increases
over time, up to 10% or even 35%. Air leakage occurs mainly at the following points:･Piping joints: due to the corrosion of flanges, creation of gaps between flanges, andthe loosening of bolts,･Seals: elastic seals (rubber), and metal seals.
The amount of leakage can be checked by operating the compressors when the plant is not in
operation, as shown in Figure V-2-5.
After completely closing the ends of all pipelines, operate the compressor until the pressure
reaches the specified value. Then stop the compressor. The discharge pressure will change asshown in Figure V-2-5, where P1 is the working pressure. Usually, P1-P2 is set at 0.05 to
0.1MPa.

V‐12

Setting pressure

0.7

Estimation of the Air leakage
L: Air leakage (%)

p1 = Specified pressure

Working pressure range
p1 – p2 = 0.05~0.1MPa

0.6

p2 = Specified pressure

t2

0.5

t2

t1

L=

Pressure descent

0.4

× 100 (%)

t1+t2

0.3

Pressure ascent
Smallleakage
leakage
Small
Large leakage
Time (min)Pressure Change in Air Compressor
Figure Ⅴ-2-5 Air leakage check4) Dryer
Adsorbent type dryers (heatless dryers) have been installed. Adsorbent type dryers can, by
adjusting the amount of purge, be used in electronics plants producing electronic parts and thelike, where very low dew points are required.
Table V-2-3 shows the relationship between purge and dew point. A dew point of -19ºC can beobtained with 15% purge.
Table V-2-3 Purge ratio and dew point in heatless dryers
Dryer

Purge

ADP

PDP

Ratio (%)

(ºC)

(ºC)

Chiller Type

0%

-17

10

Heatless Type

15%

-40

-19

Measuring & Control

25%

-70

-55

Electronic parts

Usage

ADP: Atmospheric Dew Point, PDP: Pressure Dew Point
The dew point of the BHC factory is -8ºC, with saturated water content of 2.531g/m3.
Figure V-2-6 shows the relationship between dew point and saturated water content.

V‐13

3

Water at dew point (g/m )

100
10
1
0.1

-50

-30

-10

10

30

50

0.01
Dew point (℃ )Figure V-2-6 Saturated water content and dew point
In this cement factory, there is no process in which the temperature of the compressed air
pipelines drops below 0ºC. Excessive dew point setting results in the wasteful release of
precious compressed air by purging. Therefore, it is recommended that a review of dew point
control be undertaken, comprising the following steps:① Confirmation of required dew points,② Adjustment of purging volume (purging time)③ Studying the possibility of using heat type dryers (chiller type), (either in changeoveror in parallel use)
5) Reduction of purging volume
Figure V-2-7 is a schematic diagram showing a drying system in which the dew point isreduced using a chiller type dryer for the first stage, followed by an adsorbent type dryer.

To M/C
200hp

Compressor

RT
Dryer
(Chiller type)

Heatless dryer

RT

Factory

Compressor yard
Figure V-2-7 System in which a chiller type dryer is used in the first stage
In this system, since regeneration is carried out using dry compressed air, less time isrequired and the purging volume of the absorber is reduced. Assuming that the present
purge is 15%, the reduction in purge volume is estimated as follows.
According to the manufacturer’s catalog, the discharge volume of an air compressor ofV‐14

200hp (= 149kW) is 28.5m3/min. Thus, the amount of air used for purging is:
28.5m3/min × 60min/h × 0.15 = 256.5m3/h
Converting to electricity, this value corresponds to 15% of the supplied power. Assumingthat the motor efficiency is 90%, the following value is obtained:
149kW/0.9 × 0.15 = 24.8kW
Assuming that the temperature of the output air from the compressor is 42℃ and the air is100% saturated with water, the amount of water contained in it is 56.5g/m3. When the dew
point of the outlet air (PDP) of the chiller type dryer is 10℃, the amount of watercontained in it is 9.39g/m3.
Since the water content of the purging air has dropped from 56.5g/m3 to 9.39g/m3, theefficiency of purging has been improved. The amount of reduction in the purging of theadsorbent dryer due to the installation of a preliminary dryer is proportional to the watercontent at the inlet. Therefore, the ratio of the reduction in purging volume is:
1 - 9.39g/m3/56.5g/m3 = 0.83.
Thus, the amount of reduction in power saving is:
24.84kW × 0.834 = 20.7kW.
Subtracting the power consumption of the preliminary dryer (about 6.5kW) from 20.7kW
results in energy saving of 14.2kW. The ratio of this amount to the total power
consumption is 14.2kW/(149kW/0.9) = 0.0858.
This indicates that the total efficiency is improved by adding a preliminary dryer to theadsorbent type dryer.
(6) Central control room and data control
The FAS data control system has been installed, which monitors all major data collected in thefactory using two CRTs. This system is made in China. Although many data printouts areproduced, the data do not seem to be utilized systematically.
The data are manually recorded on daily log sheets on an hour-to-hour basis instead of being
automatically recorded directly from the CRT display. These data are then manually enteredinto a computer in order to prepare charts for analysis. Since there are 10 personnel in theutility section for maintenance, etc., there seems to be enough labor to carry out all thismanually. They therefore have no plan to computerize the data collection/calculation process.
Some old-fashioned operating systems are incompatible with other versions and this system
may be one of them, making it difficult to add a data logging function. Since data collection isthe basis of energy conservation activities, however, it is recommended that a computerizedcentral data monitoring system be introduced as soon as possible.
(7) Partial load characteristics of motors and fans
1) Motors
While the load factor of an induction motor can be obtained by measuring its power
consumption and comparing this with the rated value, the measurement of electric power is
not always easy because the voltage and current must both be measured simultaneously.
However, it can be easily judged whether the motor is oversized or not just by measuring theV‐15

current. Figure V-2-8 shows the performance characteristics of a squirrel-cage induction
motor (driven at 400V). These characteristics include the efficiency, power factor, and current(as a percentage of the rated value) plotted against the load factor.
The relationship between the current and the load factor indicates that the load factor is 50%
when the current is 60% of the rated value. It can also be seen that the power factor decreases
from 88% to 77% and that efficiency decreases from 92% to 90%. In motors that are driven ata high voltage, the load factor also decreases to about 50% when the current is 60%.
Although the decrease in efficiency is only several percent at most, even in high voltage
motors, the load factor of 50% means that each motor has double the capacity needed and so
the overall system is in need of improvement.
Therefore, a rough guide to judge whether the motor is oversized or not can be obtained from

Efficiency, P ower
factor, Current (% )60% of the rated value.

120
100
80

Efficiency
Power factor
Current

60
40
25

50

75
100
Load factor (% )

125

150

Figure V-2-8 Characteristics of squirrel-cage induction motor (driven at 400V)
2) Pumps and fansFigure V-2-9 shows the relationship between the load factor and the efficiency of a pump anda fan. It can be seen from the figure that the efficiencies of pumps and fans are both more
dependent on load factor than those of motors.
Efficiencies decrease by 10% at a load factor of 50% in both pumps and fans. The efficiency
then decreases drastically at even lower load factors.
Table V-2-3 uses the current of a motor measured in the Phase 1 energy audit (February 2001)
as an example. The current ratio of the separator is extremely low. Although it is necessary toconfirm these measurements, if these values are correct then the capacities of the motors andfans in use need to be checked.
The use of bag filter fans must also be reviewed. When the opening of the damper isnarrowed to 65%, air flow is reduced. Energy conservation may be implemented by adjusting
the number of revolutions by changing the pulley ratio.

V‐16Efficiency (% )

100.0
80.0
60.0
M otor
Pump
Fan

40.0
20.0
25

50

75

100

125

Load factor (% )Figure V-2-9 Relationship between load factor and efficiency of a pump and a fan
Table V-2-3 Current measurements of motors

MotorMill motor
Separator
Bag filter fan

Capacity Design
DesignActualActual/kW
Volt
Design
Amp
Amp
6,000
0.88
2800
300
263
0.23
90
380
152
35
6,000
0.68
400
43
29

Figure V-2-10 shows the ratio of shaft power of the motor for the damper control androtational speed control.

120
DamperShaft power (%)

100
80
Suction damper

60
40

Ideal curve
Speed control

20
0
0

20

40

60

80

Air Flow (%)
Figure V-2-10 Damper control and rotational speed control

V‐17

100

When the airflow is reduced to 80%, energy conservation of 40% is realized by adjusting therotational speed. Since the amount of energy conservation is approximately in proportion to
the capacity of the motor, the energy conservation is 400kW × 0.40 = 160kW. Assuming theoperating ratio is 50%, annual savings will be:
160kW × 24h/d × 365d/year × 0.5 = 700,800kWh/y.
This value corresponds to 4.5% of the estimated total power consumption of 15,437MWh/y ofthe factory.
2.5 Status of Implementation by BHC(1) Status of Implementation of previous advice
As described in the attached written reply to the questions submitted, there are many items thathave not yet been implemented. This is probably because the factory is too busy with
day-to-day activities to address the other critical conditions affecting the company, as describedearlier, and because the EC investments cannot be easily recouped at the present low operating
ratio.
1) Updating, maintenance and control of sensors and meters･･･implemented.
The company has obtained BS, ISO9001, and ISO14001 certification, and it was explainedthat these items have been implemented as a matter of course.
2) Utilization of the dust collecting gas as secondary air for O-SEPA･･･not yet implemented.
This item has not been implemented in case this results in deterioration in product quality.
3) Changing the method of cement transport･･･not yet implemented.
The company agrees with the basic idea, but the investment cannot be recouped at the present
low operating ratio.
4) Preparation of manuals and check sheets for periodic maintenance･･･implemented.
The SOP (Standard Operating Procedures), mentioned below, includes all the items relating tofactory operations, including the preparation of manuals and check sheets.
5) Prevention of any further breakage of the clinker shoot and gas duct･･･not implemented.
BHC did not understand the previous advice given on this topic (the previous report written in
English had not been delivered to BHC) so ECCJ explained it again. Mr. Widjaja replied
positively saying, “The idea is interesting, but there are some other possible methods such aschanging the materials used to castable refractory or stainless steel, so further studies will be
carried out first”.
6) Division of the air layer of the air slide･･･not yet implemented.
The situation here was as described above for the preceding item, and ECCJ explained theprocess again.
The basic idea here is to continue the operation for the time being, even if about 50% of thecanvas is broken, and not stop the operation for repairs under the present low operating ratioof only about 50%.
V‐18

(2) BHC’s original improvements
As described in the explanatory material (attached PPT Material) and the written reply to thequestions, the following items have either been implemented or planned:
1) Improvement of the power factor by introducing a Reactivated Capacitor Bank ･ ･ ･
implemented.
2) Use of a Grinding Aid (an aqueous solution of chemicals that functions as an antiadhesive
agent. This solution prevents the pulverized powder from adhering to the milling balls) ･･･
at the planning stage.
3) Introduction and establishment of SOP･･･implemented.
4) Reducing the clinker receiving time from 7 days to 4 days･･･implemented.
This contributes not only to a reduction in the power consumption of the receiving operation but
also to the prevention of demurrage payments.
5) Timers added to the lighting equipment to save the outdoor illumination during daytime･･･
implemented.
6) Since two of the three pier hoppers were not provided with bag filters, these were added toboth hoppers.･･･implemented.
(This item is not for energy conservation but for environmental improvement.)
In addition, changing the present mill to a more energy-efficient type is under consideration.
However, profitability is doubtful under the present operating conditions.

V‐19

3. Walk-through Energy Audit of the Beverage Factory of Kingston Beverage & Creamery Sdn.
Bhd.
DES selected a factory that produces beverages and ice cream, owned by Kingston Beverage &Creamery Sdn. Bhd., as the second factory for energy audit. This factory is located in anindustrial complex close to the center of the capital. This was the first experience by the factoryof an energy audit and the management responded in a very friendly and cooperative manner.
In Brunei, there are not many factories that consume large amounts of energy, and more energy isconsumed by other facilities such as night golf courses owned by hotels and resort facilities.
3.1 Outline of the Beverage Factory of Kingston Beverage & Creamery Sdn. Bhd.
(1) Outline of the visit
Company name:Kingston Beverage & Creamery Sdn. Bhd.

Time and date of visit:

December 15, 2005, (Thu) 10:20 - 17:00

Location:

Plot 73 & Lot 3,4,5 & 6, Beribi Industrial Complex, Jalan Gadong,
Gadong BE1118

Participants from the company: Mr. Valentine Hon, general Manager
Mr. Albert K. G. Lim, Plant Manager
Surveyors:
Brunei: DES
Mr. Hj. Abd Shawal bin Yaman, Energy Division (Focal Point)
Mr. Ismail Bin Hj. Mohd Daud, Head of Unit, Safety and Environment
Mr. Hj. Shamshul Zamicse bin Hj. Sabtu
Mr. Mohad. Tazim bin Akub
Mr. Hj. Aziz bin Hj. Ali
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts(2) Outline of the factory
The company was established in 1976, and the factory we visited was built in the industrial
complex in 1994. Beverages (mainly “Pepsi Cola”) and ice-cream are produced by 150
employees.
Beverages are canned or bottled, and 1,000 cartons of each are produced and delivered monthly.
In the busy season, after the month of Ramadan, the factory is operated 24 hours a day with athree-shift system, but for the rest of the year the factory is only operated for half a day. (Acarton contains 50 to 60 cans of about 250cc or 12 plastic bottles of 1.5L.)(3) Production process and facilities
There are four production lines. Two lines are for blending and bottling “Pepsi Cola”, one line
V‐20

is for ice-cream production, and one line is for molding plastic bottles. Most parts of these lines
are automated by electrically operated devices. Part of the cartoning operation is the only
process carried out manually.
Energy consuming facilities (except in the beverage bottling process) are as follows:
Boiler:Diesel oil-fired smoke tube boiler: 150PSI (= 1.05MPa) ×
5t/h × 1unit

Air compressors:- General purpose centrifugal compressors: 22hp × 4units- Reciprocating type compressors for ice-cream production
1.3MPa: 20hp× 1unit and 30hp× 1unit

Ammonium compressors:

100hp × 1unit

Refrigerators:

5hp and 7.5hp, one each

Water supply pumps

Many pumps

Emergency diesel generator: 380kVA × 1 (Just enough capacity for the operation of theice-cream process when there is a power outage. It is kept
outdoors on a wheeled rack.)
Power receiving facilities:

The receiving voltage of 11kVA is transformed to 400V by
a 1,000kVA transformer.
A watt-hour meter (owned by the government) is provided.

(4) Consumption
Electricity and diesel oil are used as energy sources. Diesel oil is used for the boilers andtransport equipment such as trucks and forklifts. A receiver tank of 40 to 50m3 is installed in
the factory.
3.2 On-site Walk-through Energy Audit(1) After listening to the outline of the factory, we surveyed the production lines for beverages andice-cream, related utility facilities, and the plastic bottle molding machines.
As might be expected of a food manufacturer, special care is taken for hygiene in the
production lines, and quality inspection is carried out frequently. Facilities related to utilities
are separated in a different building from those used for food, and include city water receiving
and storage facilities, boilers, diesel fuel receiving and storage facilities, refrigerator
compressors, and air compressors.
Among the machines present, the 100hp ammonium compressor for the ice-cream production
process uses the most energy, followed by the plastic bottle molding machine, consisting of a
50hp motor and a 2-stage molding machine. Since the voltage drop caused by reactive power
was our main concern, we asked about the phase advance capacitor. However, they replied thatthey did not have a phase advance capacitor. They are not interested in reactive power because
they don’t have a rate system for reactive power.
There seems to be a considerable amount of reactive current loss, including the outdoor
V‐21electricity distribution lines. Since capacitors are relatively inexpensive, it may be an effective
strategy for the government to promote improvement of the power factor at a national level.
Among the various power loads, compressors are the most numerous, comprising a wide rangeof types and discharge pressures. Since all the compressors are of a reciprocating type, partial
loads do not cause a serious problem, but energy conservation may be possible by reducing thedischarge pressure.
(2) Energy conservation activities
After the plant tour, several energy conservation issues were discussed at a meeting in theconference room. During the course of the discussion, it was found that the factory did notpossess fundamental data on energy consumption. The amounts and costs of electrical power
are known only from the monthly bills sent by DES. In the same way, the amounts of diesel oil
received are managed as a lump sum, but it is not known how much is used for boilers andtransportation equipment. This shows that energy conservation activities are not really
performed at all. One reason for this may be that energy costs are low in Brunei. However, we
urged them to start energy conservation immediately, and explained how to promote energy
conservation activities.
The first step in saving energy is to collect data on energy consumption. Since the main energy
source is electricity, we explained how to collect data on electricity consumption using awatt-hour meter, which can be carried out rather easily. We also explained how to collectapproximate data on power consumption in production lines and utilities using the clamp-typeammeters that they already possess. Furthermore, we explained the concept of unit
consumption of energy and advised them to calculate the energy consumption per sales volume
for the time being, if it is difficult to collect data on the energy consumption per production
volume, and to then look at the trends.
Materials we obtained from Kingston include: “Brochure about Kingston”, “Flow Chart for the
Beverage Production Process”, “Flow Chart for Ice-Cream Processing”, and “List ofParticipants in the Seminar Workshop (hard copy)”.
3.3 Advice and Recommendations for EE&C Activities(1) Understanding the energy consumption status
The first step in any energy conservation activities is to understand the status of energy
consumption.
Data on the amounts of electrical power, fuel, and water resources used must be made available
on a daily and monthly basis. The types of data required depend on the purpose of the energy
conservation activities. They may include detailed measurements collected using instruments or
specific data on individual facilities.
1) Ascertaining data on electric power consumption
V‐22

a. Monthly use
Monthly use can be determined from the electrical bills, but this involves a time delay.
Daily consumption data are required in order to assess day-to-day activities. Daily
consumption is easily measured using a watt-hour meter, but it is also possible to calculate
the power consumption by reading the supply meter of the electric power company if a
dedicated watt-hour meter is not available.
A simple method is to read the watt-hour meter at a specific time every day then compare
this with the values obtained on previous days. Table V-3-1 shows an example of arecord-keeping form.
Table V-3-1 Daily report for receiving power
Receiving power daily reportday
1(Fri)
2(Sat)
3(Sun)
4(Mon)

Transformer #1
Voltage
Current P. Factor Acc. power Power
kWh
kWh
V
A
%
①
＝②−①
②
＝③−②
③
＝④−③
④
＝⑤−④

Apr. 2005
VoltageTransformer #２
Current P. Factor Acc. power Power
kWh
kWh
V
A
%
①
＝②−①
②
＝③−②
③
＝④−③
④
＝⑤−④

b. Daily load chart
A daily load chart is prepared to help determine hourly electric power consumption on adaily basis.
This chart can be obtained using the same principle described above. Read the watt-hourmeter every hour, calculate the difference from the previous hour, and then draw a dailyload chart by plotting the differences. When the receiving board is provided with avoltmeter, ammeter, and power-factor meter, electrical power can be calculated using themeasurements from these instruments.
The following method is another way to determine electrical power consumption based on
the rotational speed of the circular plate in the watt-hour meter. This method does not
require any other measuring instruments. Figure V-3-1 shows a photograph of a supply
meter and a drawing of the rotating circular plate.
① Obtaining the value of Wh/r
The circular, rotating plate with a black mark is actually a dial plate that indicates
integral power consumption, and the specifications of the meter are displayed nearby.
The specification “21.6Wh/r” shown (surrounded with a red circle in the above
photograph), means that 21.6Wh of electricity are required for one rotation of thecircular plate.
The supply meter at Kingston reads “1.5r/kWh”. In this case, use the inverse of thisvalue (i.e. 1/1.5r/kWh = 667Wh/r).
V‐23

② Measuring the rotational speed of the circular plate
To measure the rotational speed of the circular plate, utilize the black mark on the edgeof the plate. The speed can be measured in many ways, but one simple method is tomeasure the time required for 10 rotations.
The rotational speed of the circular plate thus obtained is then designated as S
[revolutions/min].

Circular Plate

Direction of the rotation
Mark

Figure V-3-1 Supply meter and circular plate③ Calculation of the electric power
Rotational speed [revolutions/min] is then converted into revolutions per hour by 60 ×
S [revolutions/h]. The electric power is obtained by multiplying this value by the Wh/r
value using the following equation:
60 × S [revolution/h] × electric power for a revolution (Wh/r value)④ An example of measurement
In the case of the Kingston site, the value of Wh/r is known to be 667Wh/r (calculated
from the reading displayed of “1.5r/kWh”).
When the rotational speed is S = 20 [revolutions/min], the electric power P is obtained
as follows:
P = 60 × 20 [revolutions/min] × 667Wh/r = 800kW
The purpose of the above explanation is to introduce a method for measuring the power
used when other instruments are not available. The use of a watt-hour meter provided witha recording function enables an even more complete daily load chart to be compiled.
By drawing a graph noting the power consumption every hour, a daily load chart can beobtained, as shown in Figure V-3-2.
V‐24

c. Electric power consumption by use
To get a better understanding of detailed power consumption by classifying the loads, it isconvenient to divide the received power by the number of trunk lines at the electricity
receiving board. Measure the current of each trunk line using a clamp ammeter and assume
that the power factor is about 0.8. Then divide up the total received power in proportion to
the calculated currents. This calculation includes some error due to the estimation of thepower factor, but this will only deviate by 10% at most, which does not matter for the
purpose of this calculation.
However, this measurement gives only those values for a given moment in time, and awatt-hour meter must be used to compare the proportion of power consumption used overperiods of days or months. It is therefore recommended that a watt-hour meter be installed

P電力（ｋW）
ower（ｋW）

to implement comprehensive electric power control.

450
400
350
300
250
200
150
100
50
0

Pe ak

Ave r age

Nigh t po we r

0

2

4

6

8

10 12 14
Time（o'clock）
時 (hour)
刻（時）
Time

16

18

20

22

24

Figure V-3-2 Daily load chart2) Getting a better understanding of fuel consumption
It is recommended that a flow meter be installed in the fuel pipeline for boiler fuel. Since thediesel fuel for the boilers is transported through a pipeline, a flow meter should be installedin this pipeline. It is also necessary to install a flow meter to monitor the steam supply.
(2) Analysis of data and exploitation of themes for energy conservation
Try to comprehend the pattern of energy consumption by analyzing the fluctuations in use andthe correlations between the data, in order to identify both potential problems andcountermeasures.
1) Analysis of the daily load chart
The daily load chart is analyzed in order to decide how best to reduce power consumption.
Reducing power consumption during the night and reducing peak power can be especially
V‐25

effective.
Compare the chart with the operation pattern of the factory to check whether there is waste
power consumption during recess time or at night, when factory operations halt. Since power
consumption during the night and on holidays is fixed, any reduction in power consumption
is very effective because the loss is constantly integrated over time.
Changing the operation schedule can sometimes disperse peak power. Peak power is directly
related to the electricity tariff. The same measures described for reducing power
consumption during off-peak operation should be taken when the electricity rate is high.
2) Unit consumption
Unit consumption is defined as the index expressed “by dividing the energy used for
production by the production volume”. Unit consumption can therefore be calculated asfollows:
Unit consumption = amount of energy used/production volume
Unit consumption is a useful index for evaluating the achievements of energy conservation
activities, and can be used for many different purposes such as comparison with othercompanies and setting targets for energy conservation (for example, a 1% REDUCTION IN
UNIT CONSUMPTION).
Since the unit consumption expresses the degree of energy conservation on a macroscopic
level, the ratio of energy consumption to the production volume for each process can also be
used to assess the degree of energy conservation at each stage of the process.
3) Converting fixed energy to variable energy
By plotting energy consumption against production volume on a graph, as shown in Figure

Energy Consumption

Energy Consumption

V-3-3, energy consumption can be divided into fixed elements and variable elements.

fixed

Productionchanging

fixed

Production

Figure V-3-3 Fixed elements and variable elements of energy consumption
In a production system where the fixed elements dominate, unit consumption drasticallyincreases as the production decreases. One of the targets of energy conservation is therefore
to convert fixed elements into variable elements. Facilities that operate regardless of
production must be converted so that they operate in conjunction with production. Generally
V‐26

speaking, facilities for utilities are apt to contribute more to fixed elements.
(3) Implementation of improvements
Once targets for energy conservation are set, specific measures to achieve these targets can be
implemented.
The procedure for this should follow the PDCA (Plan-Do-Check-Action) cycle, as illustrated in
Figure V-3-4.
What is important here is to numerically assess each achievement in the “Check” stage.
Numerical expression enables the sharing of the achievements resulting in vitalization of theactivities. This is the reason why numerical measurements are important in all energy
conservation activities.
When the set target is achieved, the results are standardized as a work standard to ensure
further improvement.

Plan: To find the loss and waste of energy consumption
and find countermeasures to minimize them.
Do: Carry out the countermeasures

EnergyAaudit
Energyud

Check: Evaluate the result
Action: Reform the process

Improving
through PDCA
cycle
Makingimprovements
using thePDCA cycle
Figure V-3-4 The PDCA cycle(4) Major object facilities
1) Motors, fans, and pumps
The capacities of fans and pumps are apt to be in excess of what is actually required. In thecase of a pump, for example, various allowances can be made, such as 10% for the deviationfrom actual conditions, 50% for leakage in the pipeline, and 10 – 15% for pump capacity.
After adding up all these allowances, the load factor in the actual operation may only be
70% or thereabouts, in many cases.
Figure V-3-5 shows the relationship between the load factor and efficiency for a motor, fan,
V‐27and pump.

Efficiency (% )

100.0
80.0
60.0
M otor
Fan
Pump

40.0
20.0
25

50

75

100

125

Load factor (% )Figure V-3-5 Relationship between load factor and efficiency for a motor, fan, and pump
When the load factor is only 50%, efficiency decreases by 10% both in the pump and the fan.
When the load factor decreases even further, efficiency decreases drastically. Since a loadfactor, 50% means that a motor capacity is more than twice as necessary used. This situationmust be improved.
The easiest way to identify a facility with excessive capacity is to measure the current of thedriving motor. If the current is less than 60% of the rated value, it is possible that the loadfactor of the pump or fan is 50% or less.
A simple method to improve the load factor is to adjust the capacity by reducing therotational speed by changing either the pulley ratio or the gear ratio.
2) Air compressors
a. Reduction of discharge pressure
Since the number of operating compressors is controlled using a main compressor and an
auxiliary, reciprocating compressor, partial load must be dealt with appropriately. To
confirm this, it is recommended that the current be measured both when loaded andunloaded to check whether the capacity is adjusted properly. The control is appropriate if
the current decreases to about 30% when unloaded.
In displacement compressors such as a reciprocating or screw type, decreasing thedischarge pressure can reduce the shaft output of the motor.
Figure V-3-6 shows the energy conservation effect when the discharge pressure is reduced,
taking the reference pressure as 0.7MPa. (Same Figure V-2-3)
When the discharge pressure is reduced from 0.7MPa to 0.6MPa, the results in powersaving is 10% and about 18% when the pressure is reduced to 0.5MPa. Therefore, reducing
the discharge pressure to the value actually required by the load facility should save theenergy.
V‐28

Power consumption ratio to baseBase pressure: 0.7MPaG
1.1
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3

18%

0.4

0.5

0.6

0.7

0.8

Discharge pressure (MPa)Figure V-3-6 Relationship between discharge pressure and power consumption

b. Dew point control and leakage control
Since there are many low-temperature workshops in the Kingston factory, compressed air
must be dried properly before use. Water condenses at temperatures lower than the dew
point, causing the lowering of partial pressure of the compressed air and leakages due tothe corrosion of the pipelines.
It is said that even in newly installed pipelines 3 to 5% of the air leaks out, and that leaks
will exceed 10% with age, eventually reaching 35% or more. Major sites of leakage are:･Joints of piping: corrosion of flanges, creation of gaps between flanges, loosening ofbolts,･Seals: elastic seals (rubber), and metal seals.
In the case of reciprocating compressors, since the pressure is not constant, air leakage
must be checked by operating the compressors when the operations of the factory havebeen suspended. Air leakage is expressed by the load/unload ratio (Figure V-3-7).
Air leakage is estimated as follows:
L = t1/(t1+t2) × 100[%].

ロード
Load
０．５MPaLoad f actor=

T1
T1+ t2

アンロード
Unload
０．６MPa
T1

V‐29

T2

Figure V-3-7 Air leakage checkc. Boiler and steam system
For liquid fuels, the air ratio m (= amount of combustion air/amount of theoretical
combustion air) should be controlled at about 1.2.
To effectively utilize the heat contained in exhaust gas, the combustion air should be
preheated by the exhaust gas. The supply pressure of the steam should also be reduced inaccordance with the pressure actually required.
High-temperature boiler drums, pipelines and valves should be insulated; steam leakage
from the pipelines should be prevented; and the drain should be recovered for recycling
and heat exchange.
In tropical regions, insulation is apt to be neglected because the ambient temperature ishigh, but it should be noted that even a high ambient temperature is still more than 100℃
lower than that of the steam.
(4) Installation of a watt-hour meter provided with a recording function
Although Kingston has a clam-type ammeter, to implement energy conservation on specificitems of equipment, a better measuring instrument is required as a tool for the energy manager.
For this reason, it is recommended that watt-hour meters provided with a recording function
should be installed.
Watt-hour meters are available that enable data analysis by inputting data directly to a personal
computer. These instruments are provided with various functions such as harmonicmeasurement and distortion factor measurement. For example, the watt-hour meter shown in
Figure V-3-8 is available in Japan at a price of about ¥400,000.

Figure V-3-8 Watt-hour meter provided with a recording function

V‐30

4. Seminar and Workshop
4.1 Summary
A seminar workshop was held on December 17 (Sat), 2005.
The seminar workshop started with the opening address of Mr. Pg. Zamra (DES) of Brunei who
took the chair. The seminar was well attended with more than 100 people, including participantsfrom Brunei DES and three presenters from ASEAN countries. There were many relevant
questions and answers and the seminar workshop was very successful.
(1) Time and date
December 17 (Sat), 2005, 8:30: Start of registration, 17:30: Closed(2) Venue
The Centrepoint Hotel, 6F (Purple Jade Room), BSB, Brunei Darussalam(3) Reports presented on the Seminar and Workshop
The program of the presentation is shown in Material No. D-112.
In Session 1, a general overview of energy in ASEAN, an energy overview in Brunei, and an
overview of EE&C activities in Japanese industry were presented. In Session 2, successful
cases of energy conservation activities in ASEAN countries — Brunei, Indonesia, Vietnam, andMalaysia — were reported. ECCJ presented reports on behalf of the Philippines and Laos,
whose representatives could not attend the seminar due to the inconvenient schedule. In
Session 3, TD and DB/BM/GL were discussed.
Since Mr. Christopher Zamora of ACE was absent from the seminar, Mr. Pg. Zamra of DES
took the chair. In the 5-minute question and answer session held after each presentation, theparticipants asked many relevant questions and productive discussions took place. Media
representatives were also present at the seminar, including Media Permata (the local paper) and
Borneo Bulletin (an English paper). The seminar proceedings were also televised in theevening.
(4) Participants
Brunei: DES
Mr. Hj Umar bin Hj Mohd Tahir, Head of Energy Policy & Planning
Mr. Haji Abd Shawal bin Yaman, Energy Division
Mr. Pg. Zamra(Pg. stands for Royal Family)

Mr. Ismail bin Hj. Mohd. Daud, Head of Unit, safety and Enforcement
Many other people
ACE:
Dr. Weerawat Chantanakome, Executive Director
Mr. Ivan Ismed, Project Officer
V‐31

Indonesia:
Mr. Subagyo, PT Kertas Leces
Vietnam:Mr. Tran Minh Khoa, Institute of Technology
Malaysia:
Mr. Ibrahim Hishamdin, Pusat Tenega Malaysia (PTM)
Japan: International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts
More than 100 participants from Brunei attended the seminar, including DES members. Manyof them represented governmental organizations, but people from the state-controlled
petroleum company, Brunei Shell, and the two factories we visited were also among theattendees. We asked to see an electronic file listing the participants, but we have not received
this yet.
4.2 Results of the Seminar and Workshop(1) Opening ceremony
1) ACEThe speech given by Dr. Weerawat, Executive Director of ACE, was almost the same as thatdelivered in Indonesia. However, he added that he was impressed by the lush beauty ofBrunei, which he was now visiting for the first time, and that energy was one of the mostimportant topics of the recent East Asian summit meeting held in Kuala Lumpur. He further
stated that his successor in ACE would be selected from Vietnam and that it would be
Brunei’s turn to fill the position if Vietnam was to decline.
2) ECCJ
Mr. Tanaka represented Japan (METI and ECCJ). He stated the significance, history, andrecent background of this project and outlined the Japanese cooperation and contribution to
ASEAN.
3) DESThe Honorable Hj. Umar bin Hj. Mohd Tahir greeted all those present. He outlined theenergy conservation policies of the government of Brunei, introduced recent activities suchas the PROMEEC (industry) audit, and then declared the seminar open. He attended theworkshop for the whole day, listening carefully to the discussions and, at the end of theseminar, handed a diploma to the participants and shook their hands. He also participated in
the question and answer session.
(2) Session 1: Policies and initiatives on EE&C

V‐32

1) Overview of ASEAN Plans and Programs on EE&C (Dr. Weerawat, ACE)
The same material used in Indonesia was presented again, although emphasis was placed on
the portion most relevant to Brunei. (Material No. D-127, the same as that used inIndonesia).
2) Energy Overview in Brunei Darussalam (Mr. Yaman, DES) (Material No. D-134)
Production of petroleum and natural gas, power generation facilities, the use of energy byindustry, changes in the demand and supply of energy in the past, policies on energy use(petroleum and electric power), and policies on energy conservation in Brunei were all
explained.
3) Initiatives and Programs of ECCJ on EE&C in Industry in Japan (Mr. Tanaka, ECCJ)(Material No. D-128)
Immediately before the presentation, the chairman, Mr. Zamra, stated that although he had
understood the significance and aims of energy conservation, how should energy
conservation actually be implemented? Technical Expert Tanaka replied that it would be
helpful to refer to Japanese cases, and he then started his presentation. As a result, theattendees listened to Mr. Tanaka’s explanation very carefully. He described such topics as
harmonization of the “3 E’s”, methods of energy conservation, designated factories,
qualified energy managers, and the national convention of energy conservation.
(3) Session 2: Reports on successful cases of EE&C in industry
1) Cement industry, Brunei – Mr. Widjaja (Material No. D-135)
The factory manager, Mr. Widjaja of Butra Heidelberg Cement (which the energy
conservation follow-up investigation team had visited), reported on energy conservation
activities. He explained key points clearly. Taking the opportunity, he also requested that the
government restrict the import of cement for the time being.
2) Pulp and paper industry, Indonesia – Mr. Subagyo (Material No. D-129)
PT Kertas Leces (which the investigation team visited in Indonesia) presented the same
report made in Indonesia.
3) Ceramics and chinaware industry, Vietnam - Mr. Khoa (Material No. D-136)
Mr. Khoa acted as a last-minute replacement for Mr. Phon. His report was on the energy
conservation activities of HAPOCO, which the investigation team visited in 2004, andanother company (Mailam Ceramic).
4) Glass industry and textile industry, Malaysia – Mr. Hishamdin (Material No. D-131)
PTM presented the same report made in Indonesia.
5) Steel industry (Philippines) and hydroelectric power generation (Laos) (part of Material No.
D-130 and No. D-137)
Mr. Tanaka and Mr. Ogawa of ECCJ reported in place of the scheduled presenter. Because
the presenter from the Philippines could not attend due to a flight cancellation, twoTechnical Experts from ECCJ reported in place of the scheduled presenter. Since neither ofV‐33

these industries actually exists in Brunei, only the general principles were reported, andTanaka gave a lecture relating to methods for promoting energy conservation in general.
(4) Session 3: The Way Forward
1) Barriers and Measures to implement EE&C –Mr. Ogawa
He used Material No. D-117 and referred to the presentations from Session 2.
2) Technical Directory – Mr. Amano (Material No. D-138)
As in the Workshop held in Indonesia, Amano explained the purpose of TD sheets, how to
prepare them, and the format to be used, showing actual examples. In addition, Mr. Ivan
explained actual examples of TD sheet use. Furthermore, Dr. Weerawat urged people from
Brunei to prepare TD sheets for themselves.
3) Database/Benchmark/Guideline for Industry - Mr. Ogawa
He based his presentation on Material No. D-119, as used in Indonesia.
In the middle of the presentation, an engineer from Brunei Shell asked many questions.
“What is the advantage of developing this database? Are there any political motives? Isn’t itbetter to collect data on the whole energy chain from the start of supply through to final
consumption? Isn’t it difficult to compare different countries because subsidy conditions aredifferent?” While Ogawa was replying, Mr. Yaman said, “As I recall, an APEC database isbeing developed separately, and it is difficult to coordinate different countries with different
conditions. For example, it is sometimes difficult even to standardize the energy units beingused”. These, and other such matters, were then discussed.
There was also a supplemental question concerning the development of the database being
undertaken and the agreement among the governments of ASEAN countries. Eventuallytime ran out, however, and Mr. Weerawat wound up the discussion with the comment, “Thismatter cannot be brought forward if even a single country is against it. We must haveexhaustive discussions to gain a consensus among all members.”(5) Questions and answers
As described above, a Q&A session was held and there were many relevant questions. The
following are some examples:
Q: Is there any incentive for a factory to have an energy audit carried out?
A: You pay less energy bills. That’s it. (Mr. Yaman)
Q: What are the penalties for violation of the energy conservation laws in Japan?
A: Fines are charged. However, Japanese companies abide by the laws because they value
their reputation.
(6) Closing address
The seminar was closed by the closing address of Dr. Weerawat and Mr. Tanaka.

V‐34

VI. Activities and Efforts as ASEAN
1. Outline of Summary Workshop and Post-Workshop Discussions
Summary workshop and post-workshop discussions on three project areas shared by allparticipating ASEAN countries -- promotion of energy conservation in major industries andbuildings, and the development of a common basis for energy management -- were held in
Bandung, Indonesia. These workshops were attended by the representatives of the seven ASEAN
countries and the representatives of the ASEAN Center for Energy (ACE) and the Energy
Conservation Center, Japan (ECCJ), in order to assess the results and achievements of eachproject carried out this year and to confirm the activities to be carried out in coming years. In thesummary workshop, the year’s activities for each of the three project areas -- promotion of energy
conservation in major industries and buildings, and the development of a common basis forenergy management -- were reported by Japanese representatives. All participants then discussed
the assessment of the achievements and problems to be resolved.
1.1 Period of Summary Workshop and Post-Workshop Discussions
26 (Thu) – 27 (Fri.) January 2006
1.2 Location of Summary Workshop and Post-Workshop Discussions
Grand Preanger Hotel (Bandung), JL Asia Africa 81 P.O. Box 1220, Bandung, West Java,
Indonesia
1.3 Participants in the Summary Workshop and Post-Workshop Discussions
Focal Points (FPs) from 10 ASEAN countries were supposed to attend the seminar. However,thirteen people from seven ASEAN countries, five from ACE, and four from ECCJ, totaling 22
people, actually attended. The names of the participants are listed below. Delegates from
Myanmar, Singapore, and Vietnam were absent because the holidays of the Lunar New Year had
already started.
Indonesia (7 persons)Ms. Maryam Ayuni:

Head of Energy Conservation Div., MEMR

Ms. Endang Lestali:

Coordinator, Energy Conservation and Environmental Research
Program, Center for R & D on Energy and Electricity Technology,
MEMR

Ms. Devi Laksmi:

Staff of Energy Conservation Div., MEMR

Dr. Nugroho Sulami:

Department of Engineering Physics, Institute Technology
Bandung

Ms. Sutji Rahayu:

Tariff Expert, Marketing Div., Indonesia Electricity Corporation(PT PLN (Persero)), Observer

Dr. Ir. Widodo W. Purwanto: Head of Clean Energy & Products Research Group, Universitas
Indonesia, as an observer
VI - 1

Mr. Pramdi B. Pradja

PT KONEBA, Observer

Brunei Darussalam (1 person)
Mr. Haji Abd Shawal bin Yaman: Head of Energy Div., DES
Cambodia (1 person)
Mr. Lieng Vuthy:

Deputy Director, Dept. of Energy Technique, MIME

Lao PDR (1 person)
Mr. Khamso Kouphskham: Deputy Chief of EMD, Ministry of Industry and Handcrafts, Dept.
of Electricity, Elect. Manage. Div. (EMD)
Malaysia (1 person)
Mr. Ahmad Zairin Ismail:

Deputy Director, Energy Industry & Sustainable Development
Div., PTM

Philippines (1 person)
Mr. Marlon R. Domingo:

Senior Science Research Specialist, Energy Efficiency Div.,
Energy Utilization Management Bureau, DOE

Thailand (1 person)
Dr. Prasert Sinsukprasart:

Department of Alternative Energy Development and Efficiency(DEDE)

ACE (5 persons)Dr. Weerawat Chantanakome:

Executive Director

Mr. Christopher Zamora:

Administration and Finance Manger

Ms. Maureen C. Balamiento:

Database and IT Specialist

Mr. Ivan Ismed:

Project Officer

Mr. Junianto M.:

IT Staff

ECCJ (4 persons)
Mr. Tsuzuru Nuibe:

Senior General Manager

Mr. Kazuhiko Yoshida:

General Manager

Mr. Yoshitaka Ushio:

General Manager

Mr. Hideyuki Tanaka:

Technical Expert

VI - 2

2. Summary Workshop related Major Industries
For the outline of the achievements of the project, related to major industries, Dr. Prasert took thechair of the meeting, which proceeded according to the workshop agenda (Material No. D-201).
2.1 Activities for Major Industries in Four Countries in FY2005.
In the Phase 1 activities, energy conservation audit were carried out for 10 ASEAN countries by
ACE-ECCJ. In the second year (Phase 2) activities, follow-up energy conservation audit werecarried out on major industries in the four countries described below. Furthermore, in the courseof Phase 2 activities, some factories were newly surveyed in order to check on the disseminationof the energy audit and guidance provided in Phase 1. In addition, a seminar workshop was heldin each country. In the summary workshop, an outline of the activities in all these four countries
was presented. (Material No. D-202E)
Countries visited in the second year (Phase 2) activities and periods of activities.
Cambodia

22 to 26 August, 2005

Philippines

29 August to 2 September 2005

Indonesia

5 to 12 December, 2005

Brunei Darussalam

14 to 17 December, 2005

Table VI-2-1 shows an overview of the activities in each country.
Table VI-2-1 Overview of Phase 2 Activities in 2005
Country
Time

Items

Brunei

Cambodia

Indonesia

Philippines

Dec. 13〜17

Aug. 22〜26

DEC. 5〜12

Aug. 29〜Sep.2

3 Garment
Factories

Pulp/Paper andTextile Factories

2 Rolling Mill
Factories

ACE

Philippines - DOE

ECCJ

ECCJ

Cement & Food

1. Follow-up / Energy Audit Processing Factories
2. Seminar-Workshop
1) EE&C Policy
Cement(Brunei)2) EE&C Activities

Ceramics(Vietnam)Chemical (Caustic Soda)
Garment(Thailand)(Cambodia)

Food(Singapore)

Iron/Steel(Philippines)

Brunei - MOE
ACE

Cambodia-MIME

ECCJBrunei - BHC
Vietnam - MOI

Vietnam - MOI

Vietnam - MOI

Philippines R.I. Chemicals Co.

F-up: MIME/ECCJ(ECCJ)

Philippines - DOE

Malaysia - PTM
Philippines- URC
F-up: DOE/ECCJ
Malaysia - PTM

Oil Refinery (Myanmar)
Power(Lao PDR)

Pulp/Paper(Indonesia)(ECCJ)
Indonesia -Textile(Malaysia)

Malaysia -PTM

Other Industries
3) Way Forward

PT Kertas Leces

Glass-Malaysia

Lao PDR-MIH
Indonesia -Lao PDR-MIH
Indonesia -PT Kertas Leces

Power - DOE
Indonesia -PT Kertas Leces

PT Kertas Leces

Malaysia -PTM
Glass-Malaysia Glass - Malaysia
Co-Gene & ESCO
- Thailand

1)1)What
arethetheBarriers& Measures
for theof EE of&C
[ECCJ]What
are
Barriers& Measures
onImplementation
the Implementation
EE&C[ECCJ]Developmentof Technical
Directory,
DB/BM/GL
for Industry[ECCJ & ACE]
2)2)Developmentof Technical
Directory,
DB/BM/GL
for Industry[ECCJ & ACE]

VI - 3

In the seminar workshop, the host country reported policies on energy conservation and theenergy conservation activities carried out by the industry. Presenters from three or four ASEAN
countries, listed above, attended the meeting in order to report on the status of activities forenergy conservation in the major industries of their own country. When the presenters from othercountries/industries could not attend the seminar in person, ECCJ representatives took theirplace.
There were many reports presented by various countries other than the host country, describing
ceramics in Vietnam; hydroelectric power generation in Laos; the pulp and paper industry inIndonesia; glass, textiles, food, iron and steel in Malaysia; iron and steel in the Philippines; andcogeneration and ESCO in Thailand.
The following overview concerns the activities carried out in these four countries. (Refer toitems II to IV for details of the activities of each country.)(1) Activities in Brunei
During the four days of activities, a follow-up energy audit of a cement factory and a walkthrough energy audit of a food-processing factory were conducted. On the last day, a seminarworkshop was held. More than 100 people participated in the seminar workshop, which was a
proof of the profound interest in energy conservation in Brunei. Among the ASEAN countries
present, Vietnam reported on activities in the ceramics industry, Indonesia reported on those in
the pulp and paper industry, and Malaysia reported on those in the glass and textile industries.
The question and answer session held after each report was very lively. The cement factory
prepared a written reply to the questionnaire submitted by ECCJ and presented an activity reporton energy conservation, demonstrating a high level of factory management. The factory manager
attended the seminar workshop and reported on all these activities.
(2) Activities in Cambodia
During a weeklong visit, follow-up energy audits were carried out on two garment factories. In
addition, a sister company of one of these factories, which had just started operation, also
requested a walk through energy audit and Cambodian FP and ECCJ personnel visited thisfactory. A seminar workshop was held on the last day.
The two factories for which follow-up energy audit were carried out were very serious about thepromotion of energy conservation. ECCJ had to report the results of each follow-up energy audit,
and it seemed that these energy audits were well received by the industry staff.
Among the ASEAN countries participating, successful cases of energy conservation presented
included the ceramics industry in Vietnam, hydroelectric power generation in Laos, the pulp andpaper industry in Indonesia, and the glass industry in Malaysia. The selection of these industries
was made by the Cambodian MIME, which provided suitable information for the preparation of
the reports.
(3) Activities in Indonesia
A follow-up energy audit was carried out on a pulp and paper factory located in East Java.
Taking travel to and from Jakarta into consideration, a six-day visit was scheduled. Another walkVI - 4through energy audit was also carried out in the same region and a seminar workshop was heldon the sixth day.
The staffs of the pulp and paper factory were very serious about energy conservation, and all theitems for improvement recommended in Phase 1 had been implemented, wherever possible.
They have reported on energy conservation activities at every PROMEEC seminar workshop,
having a significant influence on the industrial world of the ASEAN countries.
Among the ASEAN countries, successful cases of energy conservation were reported by Laos,regarding hydroelectric power generation; by Malaysia, regarding the glass and textile industries;
by the Philippines, regarding the iron and steel industry; and by Thailand, regarding
cogeneration and the ESCO industry.
(4) Activities in the Philippines
In the Philippines, a follow-up energy audit was carried out on a steel rolling mill and a walkthrough energy audit was carried out on another rolling mill. A seminar workshop was held on
the fifth day.
The rolling mill for the follow-up energy audit was very serious about energy conservation andkeeping costs down and had organized an energy conservation team. Such activities began rather
recently after one of their managers participated in a training seminar on energy conservation in
Japan. ECCJ had to report the results of the follow-up energy audit.
Successful cases of energy conservation activities in ASEAN countries were reported by
Malaysia on the food and steel industries; by Vietnam on the ceramics industry; and by
Indonesia on the pulp and paper industry.
2.2 Status of Energy Conservation Activities in ASEAN Countries(1) Follow-up energy audit of factories
Table VI-2-2 shows a summary of the results of activities at the factories for which an energy
conservation audit was carried out in Phase 1. The results are for the factories and majorindustries in each of the four countries we visited this time and those we carried out follow-up
energy audits on in 2004. (Additional information obtained afterwards is included in the latter).
The results achieved (relating to the recommendations and advice given) are classified as either“finished,” “under study,” or “not implemented”.
With regard to the follow-up energy audits of 2005, the sum of “finished” and “studied”, (whichmeans that at least some measures have been taken) is about 90% of the total. The remaining
10% is “under study” or “not implemented” and it is expected that some kind of measures will betaken in the near future.
Combining the results for 2004, it can be seen that 83.3% of all activities have been implemented,
which surpasses the 64.5% figure for 2004. This indicates that all activities are being
energetically carried out. This table also shows that energy conservation activities are especiallycommon in the Indonesian pulp and paper factory studied. The results at the Vietnamese
ceramics factory were achieved after the follow-up energy audit in 2004, which shows that the
VI - 5

achievements there are due to the concerted efforts of the whole factory.

Table VI-2-2 Summary of EE&C Activities (Follow-up Energy Audit)

Country

2005

Brunei

Cambodia

Indonesia

2004 + Presentation

Philippines
VietnamLao PDR
Malaysia
MyanmarItems Numbers
and Ratio
Item Numbers
and Ratio(%) (%)

Company Name
(Industry)

Recommended
by ECCJ

Butra Heidelberg Cement(Cement Industry)6

M&V International Mfg(Garment Industry)3

June
TextileCompany
A Co. Ltd.
(Garment Industry)

3

PT KERTAS LECES(Pulp/Paper Industry)
Company
Steel Asia C
Mfg. Corp.
(Iron/Steel Industry)Hai Duong Porcelain Co.
(Ceramics Industry)34

Num Ngum Hydropower
Plant (Power Industry)Arab-Malaysia D. B.
(Textile Industry)
Mann Thanbayakan(Oil Refinery)
Total(2004)
2004 only

4

4
11

9
4
78
62

Finishedor Studied
5
83%

Under
Study
0
0%

2
67%

0
0%
0
0%

2
67%
28
34
100%
2
50%
2
10
91%
4
100%
4
44%
2
50%
65 (83.3%)
40 (64.5%)

Not
ImpNonlmented
activity

0
0%
1
25%

1
17%
1
33%
1
33%
6

0
0%
1
25%

1
9%
0
0
0%
0%
0
5
0%
56%
2
0
50%
0%
8 (10.3%) 5 (6.4%)
7 (11.3%) 15 (24.2%)00%9(2) Energy conservation activities at the newly visited factories
Four new factories were visited in 2005, one in each of the four countries. Details are as
described above in the introductory paragraph supplied for each country. Three of the four
factories had just started energy management. The other factory had previous experience ofenergy audit and the factory manager had taken a training course on energy management inJapan. Therefore, the level of energy conservation activities at this factory was comparable tothat of the factories that had participated in Phase 1 of the PROMEEC program.
Due to the recent steep rise in energy prices, all the factories were eager to take some measuresfor energy conservation, and this probably contributed to the welcome extended to theinvestigation team. It is hoped that the information obtained from the on-site energy audit andguidance will be utilized for the promotion of further energy conservation.
(3) Participants in the energy audit of factories and the seminar workshop
In the PROMEEC activities of 2005, government officials from member countries and managers
and engineers of private companies were supposed to play a proactive role in the follow-up
investigation and energy audit of new factories, with the assistance of ECCJ experts, on an OJTbasis. As a matter of fact, nothing happened unless ECCJ experts took the initiative themselves.
OJT training had the intended result of increasing the number of participants in the energy audit
of factories in 2005 from an average of 1.6 to an average of 4.2, as shown in Table VI-2-3.
On the other hand, the number of attendees at the seminar workshop decreased from 71.5 to 56.5,
VI - 6

which may have been caused by budget restrictions.

Table VI-2-3 Number of participants in the diagnoses and seminars in various countries
Item
Energy audit

Year
2004

2005

7

9

of

11

38

of

1.6

4.2

4

4

of

286

226

of

71.5

56.5

Number of factories
Total

numberparticipants
Averagenumberparticipants/factory
Seminar workshop

Number of seminars
Total

numberparticipants
Averagenumberparticipants/seminar(4) Outline of successful cases of energy conservation reported in the seminars
Representatives from six countries reported on 14 successful cases of energy conservation. Some
examples are shown in Table VI-2-4. Activities in hydroelectric power generation reported by
Laos and those in the glass industry and textile industry reported by Malaysia are omitted here
because they are not significantly different from those reported last year. Indonesia reported onenergy conservation activities in the pulp and paper industry, but these are also omitted because
they appear elsewhere in the description of activities in Indonesia.
(5) Summary of energy conservation activities in ASEAN countries in 2005
The activities carried out in 2005 gave a strong impression that energy conservation is being
actively promoted in ASEAN countries. In particular, it seems that the recent steep rise inenergy prices has caused energy-poor countries to increase their efforts to promote energy
conservation in order to keep costs down.
To promote energy conservation activities, recognition of their importance and clear leadershipby top management is required to trigger activity in each individual factory. Once it isunderstood that energy conservation leads to profits for the company and that it will eventually
benefit the society as a whole, energy conservation activities will be stimulated even more. It
cannot be denied that barriers exist to the promotion of energy conservation in ASEAN
countries, but we believe that such barriers will be overcome through the PROMEEC programsand through various kinds of training seminars for further energy conservation.

VI - 7

Table VI-2-4 Successful cases of energy conservation reported by ASEAN countries
Country

Industry
Food Industry(Edible Oil Refinery)

Malaysia

Iron/Steel Industry
Capacity:
EAF: 700kt/y,Mill: 550kt/yPhilippines

Vietnam

EE&C Activities
1. Installation of economizers on LP boilers
2. Waste heat recovery from hot water boilers
3. Process oil cooling by cold feed water
4. Condensate collection system
Total fuel saving = 116,703GJ/y (=Approx. 2,920kL/y)
1. 2-stage recuperator (Recovery of flue gas temp.)
2. Air compressor change, from piston type toscrew type: Power saving = 45%
3. VSD for rolling mill cooling water pump process
Power saving = 25% compared to throttle valve
Power saving = 1.7%, Fuel saving = 13.7%
Total cost reduction = 3%

Chemical Industry
RI Chemical Corp.

Change the 200RT refrigeration system from a vapor
compression type to a vapor absorption type, wherever
there is waste heat and a need for chilled water.
Effect on productivity: +3.6%

Iron/Steel Industry(By DOE)

Introduction of outline of Philippines’ steel industry
and “2005 Don Emilio Abello EE Awards”[Rolling Mill Co. saved 580kL/y of fuel oil by heat recovery
from the furnace, etc. and Steel sheet coating Co. saved
107kL/y of oil]Porcelain Industry(By MOI)

Significant percentage improvement after 2004 follow up
Similar presentation at last Summary-Workshop

Brick Industry(By MOI)

Energy audit at brick factory: Fuel saving = 3%.
Power saving = 13% by insulation strengthening, etc.

Energy Audits at 12
industrial factories(By Institute ofEnergy)Main measures identified by audit:
VSD, boiler improvements, condensate collection
system, maintenance method, compressed air
systems, etc. Saving: Fuel = 0~38%. Power = 5~40%(6) Barriers to Energy Conservation in Industry and Possible Countermeasures
We felt that this year’s on-site survey highlighted the same barriers that existed last year. For
example, lack of policies, shortage of personnel resources, low technical levels, a shortage offinance, and a lack of information were frequent topics of discussion. The attitude of top
management is yet another barrier to the promotion of energy conservation. It may be true thatcompanies with favorable business prospects make profits without promoting energy conservation,
but the situation will change as energy prices continue to rise.
2.3 Outline of the Reports Presented by the Four Host Countries at Summary Post Workshop
This year’s four host countries submitted reports on EE&C activities.
(1) Report of Brunei (Material No. D-203)
Since Brunei is a producer of petroleum and natural gas, energy prices are low in this country,
whereas facilities for energy conservation are costly. Therefore, people are not always
interested in energy conservation and it is difficult to promote energy conservation without
reasonable incentives. It is therefore necessary to promote EE&C education of the generalpublic, to prepare policies and action plans, and to discuss how best to implement them.
VI - 8

(2) Report of Cambodia (Material No. D-204)
To overcome the low electricity diffusion rate of 17% and high electricity prices, it is planned
to triple the power supply over the next decade. The report presented was mainly concernedwith PROMEEC activities in the garment industry. Further dissemination of energy
conservation in this country still seems to be necessary.
Activities planned in the future are: cooperation with Thailand regarding renewable energy andenergy conservation; participation in further PROMEEC activities; and the promotion of CEEP
(Cambodian Energy Efficiency Project) as a local initiative.
(3) Report of Indonesia (Material No. D-205)
It was reported that six walk through energy audits and 15 detailed energy audits had been
carried out for more than six types of industry. (This number includes the energy audits carriedout in the present PROMEEC program.)
It was also reported that MEMR was developing an energy conservation database (DB) and an
energy efficiency model (EEM), whose menu includes company profiles, facilities and power
consumption, fuel consumption, energy consuming facilities, and energy conservation
activities.
(4) Report of the Philippines (Material No. D-206)
The energy conservation audit for the iron and steel industry carried out as part of PROMEEC
and the results of the seminar held in the Philippines were presented. The PROMEEC activities
are helpful for establishing information networks among private companies, and TD and DB
are useful for the EE&C of private companies. However, there are many barriers still to be
overcome.
The Philippines has an award system for the Industry and Building sector and, in the Industry
category, 23 companies received these awards in 2004 and 15 companies received awards in2005.
Although energy conservation has not yet been legislated, the relevant regulations and rules
were explained.
2.4 PROMEEC Activity Plan for FY2006 (Material No. D-207)
METI-ASEAN PROMEEC will be continued in 2006 with the ACE, ECCJ and FPs (Focal
Points) of each country carrying out the same key roles as they did in 2005. As shown in FigureVI-2-1, on-site surveys in 2006 are scheduled for August and November, visiting two countries
each month. This will include Singapore and Thailand, two countries that have not yet been
involved in any energy audit. Two more countries that are actively promoting energy conservation
activities and can host the survey are invited to apply. The selection will be decided at the
inception workshop in 2006.
When implementing the on-site survey, those ASEAN countries involved in energy audits are
obliged to select the factories to be audited, establish an energy audit team consisting of five or
more members sharing the necessary roles, implement preliminary education, and prepare a
VI - 9

written reply to the questionnaire. A week’s visit is scheduled for each country and a maximum of
two factories are selected for the follow-up energy audit and new energy audit. A seminarworkshop is then held where the energy audit team presents the results. Also at the seminar, thehost country reports on its energy conservation activities and member countries designated by thehost country report on their activities. In the workshop, the preparation of Technical Directories(TD), and the formulation and status of Databases (DB), Benchmarks (BM), and Guidelines (GL)are also discussed.
A final workshop is then held after summarizing all activities carried out in 2006.

(1)

(2)

(3)

(4)

(5)

(6)

Year
Activities
Month
Preparation of Detailed
Implementation Plan &Preparation for 1st Site Activity
1st Site Activity (Follow-up
Survey & Workshop (2Countries))
Analyses of 1st Site Activity
Results / Preparation for 2nd
Site Activity
2nd Site Activity (Follow-up
Survey & Workshop (2Countries))
Analyses of 2nd Site Activity
Results / Preparation for 3rd
Site Activity
3rd Site Activity (S & PWorkshop, TD disemmination &DB/BM/GL formulation)

4

5

6

7

2006
8

9

10

11

12

1

2007
2

3

Two
Countries

Two
Countries(7) Report Writing

Figure VI-2-1 Implementation Schedule, PROMEEC (Industry) for 2006 - 2007
2.5 Discussion(1) Energy conservation energy audit, aiming at OJT1) There were no objections to the request from ECCJ that an energy audit team consisting ofabout five members should be established and that sufficient preparation must be undertaken.
There was an opinion expressed that the required capabilities of the members must be clearly
defined. It is doubtful whether competent personnel can always be found.
Several ASEAN countries, including Brunei, Cambodia, Indonesia, Laos, and the Philippines
requested that the ECCJ expert team give a detailed lecture for about several hours on themethods and techniques used by the energy audit team. It was pointed out that independent
energy audit is possible for some industries but not always possible for others. ECCJ and ACE
commented that those countries that are conducting an independent energy audit can make useof the energy audit team. The request for a field exercise to be held for all team members prior
to any actual energy audit will be considered as required.
2) There was also recognition (from Thailand and Indonesia) that the ECCJ experts are expected
VI - 10

to give supervision and guidance in energy audit to local engineers.
ECCJ and ACE concluded that energy audit is a key component of energy conservation andthat actual experience is important in developing energy audit techniques; that it is important
to continue the energy audit activities, aiming at OJT, and differences in the level of training
must be taken into consideration; and that ECCJ staff should propose the methods to be used.
(2) Importance of successful cases of energy conservation
1) It is important to highlight successful cases of energy conservation in the seminar in order tohelp motivate the participants. This is also an effective way to promote energy conservationand to introduce the follow-up activities planned for those factories where energy audit has
already been conducted. Key points and methods of energy conservation are instrumental inbringing about improvements for all the industry. (Malaysia, Laos and Brunei)2) Successful cases serve as useful reference points for others. Governments should therefore
assist in the preparation of reports so that more cases are collected. They are also helpful for
legislation. (Indonesia)
In Indonesia, it is a requirement that a report be submitted within six months of the energy
audit, and some successful cases have been reported. However, it is often very difficult to havethe business world understand the meaning and objectives of the energy audit and so thenumber of successful examples reported is still very small. From this year on, the Indonesian
government will attempt to have the business world understand the objectives of the reporting
process by communicating the intentions of the government through the association. At
present, pilot factories have been designated in four to six industrial fields in East Java topromote energy conservation projects.
3) Problems related to the location of the factory to be diagnosed (Laos)
One energy audit was carried out in a town that took one whole day just to get to. An effective
audit can be conducted even in a far away location. It depends on the situation (ACE, ECCJ).

VI - 11

3. Post-Workshop Discussions
3.1 TD (Technical Directory)
ACE introduced a technical directory (for the Industry and Building sector) which has been
compiled from data provided by Japan but and does not include successful cases, along with a
database (for the Building sector). Although the system is being formed, the contents must be
enriched from now through the cooperation with the personnel of ACE.
3.2 DB/BM/GL (Databases/Benchmarks/Guidelines)(1) Clarification of the objectives and scope of the project
A common recognition is that there is a difficult problem about establishing
Databases/Benchmarks/Guidelines due to the problem of confidentiality. The purpose of thisproject is to systematically construct an “In-house Database/Benchmark/Guideline System”
utilizing the results from the energy audit activities so that energy management can be smoothly
implemented by each factory and building. Therefore, it must be emphasized that the objective
is to design a standard database that can be used by all factories and buildings, and not toconstruct a statistical system merely as a tool for formulating policies (such as the ASEAN
labeling of buildings). ACE added that although it takes time to establish, they expect tocomplete a system (including the industrial sector) to be completed next year, and that they willthen discuss the matter further.
(2) Discussion on the establishment of a Database/Benchmark/Guideline system
1) It is important to recognize what databases (such as energy consumption, process, or facility)
are to be constructed and what their objectives are. The data currently available on the internet
are often meaningless. Detailed data are required. (Thailand)
2) Feasible in-house Data Management and in-house Benchmarking systems are important.
An in-house database is a collection of all the data required on site. Such databases are
actually used to implement energy conservation (ECCJ). Statistical databases are quite
different.
An in-house database is also a useful tool for policy making if it is used as a kind of model.
(Brunei)3) A Malaysian glass factory has succeeded in energy conservation by setting a benchmark at therequest of the government. Energy conservation cannot be promoted based only on in-housedata. It is important to obtain information on successful external cases. (ECCJ)
4) There are in-house benchmarking and external benchmarking systems, but it is inevitable thatprivate companies will refuse to provide some information in order to maintain confidentiality.
Therefore, it is recommended that each industrial association arrange some kind of agreed
system among its member companies by which information can be exchanged. Malaysia has
adopted such systems in four different industrial sectors. It is also possible to use the results ofthe energy conservation audit as the database. Information from three to four factories would
VI - 12be adequate. (Malaysia)
5) Data from the energy audit are not sufficient to establish an entire database. It is impossible toestablish a system that can be used at the factory level for all industrial sectors. Even theamount of data provided by 20 or so companies is insufficient. (Thailand)
It is definitely better to have more data but, as shown in Japan, even a small amount data canbe effective. (ECCJ)
6) The discussion has been very instructive for ACE, and ACE will make use of it in their future
work. ACE intends to collect further information with the cooperation of the CCI (Chamber ofCommerce & Industry) of member countries. (ACE)ASEAN countries agreed to accept the proposal of ACE.
Indonesia will cooperate in establishing databases in three industrial sectors.
The compilation of the database is certainly an important activity but it will be difficult todecide who can access it. The problem of confidentiality arises if the database is made open to
the public. (Laos)
It is difficult to construct a common system for all the ASEAN members. It must be
constructed on a country-by-country basis. (Thailand)
In conclusion, it was agreed that the objective of the basic policy should be to utilize the results
since 2000 for the establishment of specific databases so that all members can use the data. It wasalso decided that the original approach we have adopted, to date, should be maintained in the
future.
The year’s achievements and the results presented in the above discussions were muchappreciated by all who participated. In the post-workshop session, the philosophy, basic approachand plans for the next year were unanimously agreed upon, and the basic plan proposed by Japan
was adopted unanimously with the consent of all the Focal Point representatives from the member
countries and ACE.

VI - 13

Ⅶ.

Reference Material

The materials used at site activities in 4 countries and summary & post workshop regarding to
the major industries are listed here.
These materials are as follows;- Site activity schedules- Answers to questionnaires at energy audit- Seminar/Workshop programs- Presentation materials at site visits from ASEAN countries, ACE and Japan- Presentation materials at S-P workshop from ASEAN countries and JapanThe Participant Lists are omitted because ECCJ could receive this from only one country. The
material numbers are shown as “Document No. D-100”, etc.
1.

Materials for the energy audits and Seminar-Workshop in each country

1.1

Activity Schedules of ECCJ Technical Experts

D-101E
D-102E
1.2

Answers to questionnaires at follow up and walk through energy audit

D-103E
D-104
D-105E
D-106
D-107
D-108
1.3

Answers from Company A, Cambodia
Answers from M&V International Manufacturing Ltd., Cambodia
Answers from Company C, Philippines
Answers from Primary Steel Corporation, Philippines
Answers from PT. Kertas Leces (Persero), Indonesia
Answers from Butra Heidelberg Cement BDN BHD, Brunei Darussalam

Seminar-Workshop Programs in 4 countries

D-109
D-110
D-111
D-112
1.4

Schedule of 1st Site Activity
Schedule of 2nd Site Activity

Seminar-Workshop Program in Cambodia
Seminar-Workshop Program in Philippines
Seminar-Workshop Program in Indonesia
Seminar-Workshop Program in Brunei Darussalam

Presentation materials at Cambodia

D-113
D-114
D-115
D-116

Overview of EE&C Activities in Cambodia
Case Study, Glass Industry in Malaysia
Case Study, Pulp and Paper Industry in Indonesia
Follow Up of Energy Audit Findings at Garment Factories, Cambodia

Ⅶ-1

D-117
D-118
D-119
1.5

Presentation materials at Philippines

D-120
D-121
D-122
D-123
D-124
D-125
D-126

1.6

Overview of EE&C Programs of ASEAN, ACE
Initiatives and Programs of ECCJ on EE&C in Industry in Japan
Case Study of Pulp and Paper, Indonesia
Case Study of Hydropower, Lao PDR
Case Study of Glass/Textile Industry, Malaysia
Case Study of Steel and Cement, Philippines
Case Study of Co-generation and ESCO, Thailand

Presentation materials at Brunei Darussalam

D-134
D-135
D-136
D-137
D-138
2.

EE&C Promotion Activities in the Philippines
EE&C Activities in Industries in Japan
Overview of Wholesale Electricity Spot Market, Philippines
EE&C Best Practices in Chemical Industry, Philippines
EE&C Best Practices in Iron & Steel, and Food Industry, Malaysia
EE&C Best Practices in Ceramic Industry, Vietnam
Findings of Follow Up Energy Audit at Iron and Steel Industry in the Philippines,
Introduction (1) and Follow Up (2)Presentation materials at Indonesia

D-127
D-128
D-129
D-130
D-131
D-132
D-133
1.7

What are the Barriers and Measures on the Implementation in Industry?
The Development of Technical Directory (1) and Sample (2)The Development of Database/Benchmark/Guideline for Industry

Energy Overview in Brunei Darussalam
Case Study of Cement Industry, Brunei Darussalam
Case Study of Ceramics/Porcelain and Brick Industry, Vietnam
Case Study of Steel and Energy Audit, ECCJ for Philippines
The Development of Technical Directory, ECCJ

Materials for the Summary/Post Workshop (Major Industries)
D-201
D-202E
D-203
D-204
D-205
D-206
D-207

Summary Workshop Agenda (Industry Only)
Summary of Local Activities, ECCJ
Evaluation and Future Improvement of Local Activities, Brunei Darussalam
Evaluation and Future Improvement of Local Activities, Cambodia
Evaluation and Future Improvement of Local Activities, Indonesia
Evaluation and Future Improvement of Local Activities, Philippines
Proposed Plan for 2006-2007, ECCJ

Ⅶ-

2

Any individual or organization who makes part or all of this reportpublic must obtain prior permission from International Engineering
Department of Energy Conservation Center Japan.
Phone81-3-5543-3018

Fax

81-3-5543-3022