Implementing
Energy Efficiency Initiatives
in Industries
16th March 2006

Pusat Tenaga Malaysia (PTM) Agent for public & private energy sectors
 Guardian/repository of national energydatabase “Think-tank” on energy throughconsultancy services
 Promoter of national energy efficiency &renewable energy programmes Lead manager & coordinator in energy

research, development and demonstration
projects.

Malaysia E nergy Centre

Why Energy Efficiency (EE)
Energy Per Capita in ASEAN

Why Energy Efficiency (EE)
Number of companies audited = 48
Estimated Capital Expenditure RM 108 million

700

400
300200100

If 100%
implemented

RM million

500

Status quo6000
Source: Malaysian Energy Efficiency Improvement Project (MIEEIP)MIEEIP-8 industrial sectorsCommunity

INDUSTRIAL ENERGY EFFICIENCY
SectorWood

RubberFood-Tyres-Gloves-CocoaSauce-Food Oil

Pulp &Paper

Glass

Iron &
Steel

Ceramic

CementClusters-Plyboard,-Chipboard-Medium
Density
Fibreboard-Paper box-Specialty-Paper board-Sheet-Newsprint-Container-Billets-Tiles &-Bars & Rods Bricks-Iron Casting -Sanitaryware-Clay Pipes-Integratedplant

MIEEIP highlights

MIEEIP aims to reduce the barriers and encourage
implementation of EE improvements in the 8energy intensive manufacturing sectors; cement,ceramic, iron&steel, food, glass, wood, pulp&paperand rubber.
Audited >60 companies
8 Demonstration Projects have been identified
i. Fuel Replacement using Wood Waste (ESCO-EPC)
ii. Boiler Heat Recovery - Food
iii.Gob image analyzer / forming machine - Glass
iv.Tunnel Kiln Upgrading – Ceramic

10% reduction in:
EnergyConsumption

Establish e-Benchmarking facility for industry

EnergyIntensity
GHG emissions

JG Containers (Glass Containers Products)
Electricity/FuelSavings(%)

Payback

7.0 million

334 yrModification of one
annealing lehr

50,00042

1 yr

Water recycling

18,000

25

1 yr

No

Energy Savings
Measure1

Rebuilding furnacewith control
systems

2

3

Investment(RM)

Investment RM 7.5 million
Annual savings 60 000 GJ/YrCargill Kuantan(Palm Products, Olein and Palm Fatty Acids)
PROPOSED BY PTM
No cost
Proposed savings
Steam trap maintenance
79,861 GJ/yr @ RM 3,227 k/yr
Steam leak maintenance
Annual energy savingsCompressed air pipe leakages
Low Cost
24,000 GJ/yr @ RM 1.9 mill /yr
Insulation maintenanceHigh Cost
Boiler fuel switching
New scheme for condensate recovery system
IN-HOUSE IDEAS
Process heat recovery
Steam trap maintenance
Process control
Boiler condensate recovery

ASEAN-ECCJ Energy Conservation Project

EE&C Best
Practices inIndustries
PT Kertas Leces,
Pulp/Paper Factory
Indonesia

The Energy Conservation Center, JapanINDONESIAPT Kertas Leces Pulp and Paper Industry
Top management’s awareness on EE&C is excellent!
1. Trigger for energy conservation
1) Energy cost is 24% of production cost! (17% (2004)

2) Decreased in fuel subsidy since 2001

2. Cost reduction strategy on fuel cost23% (2005))

Recent pending problem

1) Fuel switching from oil to gas for short term (2003)
2) Fuel switching from gas to coal for long term (2006~)

3. Energy Efficiency &Conservation activities
1) Boiler: Increasing boiler performance by re-tubing, boiler operation from 4 to 3,additional economizers, lowering of steam pressure, etc.
2) Turbine: Increasing turbine performance by clean up of tubes and overhaul3) Electricity: Repair the old capacitors, Installation of new capacitors
4) Replacement of new air compressor
5) Maintenance of utility devices and instrument, preventive & predictive mainte.
6) Reinforcement of production management
ECCJ

PT KERTAS LECES of INDONESIA
Fuel Price Increase

US$/MMBTU

FUEL PRICE
1098
7
654
3 2.672 1.32
1 1.0702001

9.66

2.96
2.2
1.4

2002

4.36

3.67
3.2

4.18
3.3

1.6

1.7

1.9

2003

2004

2005

YEAR

Oil
ECCJ

US$0.37/L
2.3 times of 2004

GasCoalPT Kertas Leces of Indonesia
Results of Follow-up Energy Audit
Year2000

2004

2005

Improvement(2005/2001)

14,87642,863
135,717

2,682
2,870
152,482823
114,273

0.84

Items
Production

Energyconsumption

EnergyIntensity
EnergyPrice (US$)

Bagasse Pulp
DIP pulp
Paper(t/y)
Fuel Oil for
Boilers (kL/y)
LPG (kg/y)

147,832

1,019

5,184

267,29000

N-Gas (kNm3/y)

0122,478

95,149Fuel total (toe/y)143,693

105,851

86,492

0.60

Electricity (MWh/y)219,628

190,936

143,669

0.65

Fuel (toe/t-paper)

1.059

0.694

0.757

0.71

Elect. (kWh/t-paper)

1,618

1,252

1,257

0.78

0.0428/L
0.1479/kg

0.1776/L

0.3937/L

9.2

Fuel Oil
LPG
N-Gas
Electricity

0.0216/kWh

0.1179/Nm3 0.1228/Nm3
0.0478/kWh 0.0501/kWh

2.3

Recent situation (Main problems): Shortage of bagasse,
ECCJ

Newspaper market, Gas Supply and Increasing fuel price!

Kyoto Protocol:

CDM Projects Development
Proposed CDM Projects by Sectors (as at Dec.'05)

3%3%

3%6%6%6%

3%
3%

58%
9%

Biomass Waste/Biogas
Mini Hydro
Energy Efficiency
Transportation

Landfill
Manufacturing Industries
Composting

Solid Waste
Animal Waste
SolarCDM Projects: National Approval Process
Glossary of Terms

ProjectDeveloperPINDNAPIN : Project Idea Note(NRE)DNA : Designated National
Authority

Compliance

NRE : Ministry of Natural
Resource & Environment

SectorSecretariat

Initial Checkof National
Criteria
Non-compliance

Recommendations
TechnicalAssessment

NCCDM: National Committee on
CDM

TechnicalCommittee

Shortcomings
Opinion andRecommendation

NCCDM
Approval

Revised

ReviewanddecisionDNA

Rejected
Conditional
Approval

2 WEEKS

2 WEEKS

3 WEEKS

3 WEEKSEnergy Management Teams
PAN-CENTURY
Edible Oils Sdn Bhd
Vice President Mr PRGoyalEnergy management
team members at
MALAYAWATA Steel
Energy Management Team at
JAYAKUIK supported by key topmanagement

Energy Management team of
SILVERSTONE BerhadWhy Energy Management?
“People talk about picking lowlow-hanging fruits,--picking--picking a dollar on the floor here and there,
We picked up thousands off the ground.
It’s embarrassing that we didn’t do it earlier”
Judith Bayer, United Technologies Corp.

Energy Management Cycle
1. Top Management
Commitment
2. Energy Management
System and Policy

8. Monitoring andControl

7. Implementation ofEnergy Saving
Measures and ProjectsEMC

6. Conducting Energy
Audit (EA)

3. Training andAwareness Programme

4. Establishment ofEnergy Management Team(EMT)

5. Energy Use
Benchmarking

Energy Management Culture

Establish
Standards

Implement
plans

Reviewagainstobjectives

Measureprogress

Establish
Standards

Implement
plans

Reviewagainstobjectives

Measureprogress

Establish
Standards

Implement plans

Reviewagainstobjectives

Measureprogress

A Continuous
Improvement
By
Challenging
New Targets

EE facilities -Benchmarking

Energy Use Index (EUI) GJ/t

40.00
35.00

Where?

 Where are you now?
 How good are you?

Why?

 Why are you at thisposition Vs others?
 How good can you be?

What?

 What can be improved?
 How do you get better?

35.84
Benchmark

29.50
23.95

30.00

18.39

25.00
20.00

12.06

15.00
10.00
5.00
0.00
Campany A Campany B

AverageCampany C Campany D

Resources for energy audits
Measuring
Instruments
Auditors
Inhouse Energy auditors
Or external consultants

Permanent and portable

Energy records-consumption-utilisation process map

Budget and time
Analysis Tools
Computers & Software

Energy Saving Measures (Category)Measures

No costLow cost

Examples• Excess air improvement• Increasing boiler water TDS level• Boiler pressure setting reduction• Proper steam leak maintenance• Proper steam trap maintenance• Proper insulation maintenance• Increase boiler combustion air• Boiler stoppage loss reduction• Boiler burner replacement

Emphasis

Preliminary energy audit
Implementation by factory

Preliminary audit
Detailed audit
Implementation by factory
Detailed audit, preliminary audit

High cost• Fuel switching• Installation of boiler economizer• Improvement of condensate recoverysystem

Implementation by ESCOS
Incentives from government
helpfulInstruments (Boiler system audit)
Flue gas analyser

Insulation

Energy Records

Monthly invoices for purchase of energy
Log-books with daily, weekly or monthly records

Co-operation with in-house staff is indispensable
for auditing and even more important during implementation

Budget and Time
Walkthrough audit: 4 to 6 weeks
Cost of services: Quotation baseThe MiEEIP Website

International & local
Case studies on EE technologies

Checklist for EA
Sample content EA reportThank You

Pusat Tenaga Malaysia
Level 8, SAPURA@MINES
No. 7, Jalan Tasik
The Mines Resort City
43300 Seri KembanganSelangor
Website: www.ptm.org.my
E-mail: info@ptm.org.my