Activity Report 2009

International Infrastructure Development Project for
Efficient Use of Energy
Human Resources Development Project forEnergy efficiency and conservation
Promotion of Energy Efficiency and Conservation Project for
Major Industries in ASEAN Countries

March 2010

The Energy Conservation Center, Japan

Preface
While the mitigation of global warming has become the challenge shared among
humans in recent years, humans are also pursuing sustainable development of theeconomy in each country. We currently face a difficult challenge in finding ways tomake these contradictory goals. Succeeding in such a difficult challenge, sometechnological innovations will be required in the efficient use of energy, ways to use
energy while keeping the environmental burden to a minimum, and development ofenvironmentally friendly energies. Understanding of the status of energy use andenvironmental conservation of developing countries is essential in promoting balanced
development of the economies and the environment of these countries. At the same time,
acceptable and proper assistance for the target countries based on sufficientinvestigation of the country-specific status of infrastructure development and lifestyles
are also required.
Under such circumstances, an energy audit of one industry in each country and thetransfer of auditing technologies were conducted in the targeting ten ASEAN countries
as Phase 1 of the project in fiscal years 2000 to 2003. As a continuation of the project,along with the energy audit, energy efficiency and conservation promotion
infrastructures were established to implement and promote improvement efforts as
Phase 2 in fiscal years 2004 to 2008.
At the end of Phase 2, the PROMEEC committee evaluated the project. As a result, they
made a commitment to work toward the utilization of transferred energy efficiency andconservation promotion infrastructures through the independent efforts of ASEAN
countries, as well as promulgation and infiltration of utilization within the ASEAN
countries in Phase 3. Based on these goals, the committee made a commitment to assistin spontaneous energy audits by ASEAN countries in fiscal 2009 and promote theimplementation and spread of improvement measures.
The energy audits implemented in new factories to ensure the spread of energy audit
technologies within the areas. In addition, follow-up investigations were conducted to
identify the implementation of the recommended improvement measures in factories
where energy audits were conducted in the past. Furthermore, they created the technicaldirectory (TD) and built in-house databases for each industry (IHDB) and benchmarks(BM).

In this fiscal year, energy audits were conducted in an automobile factory in Myanmar,an oil refinery in Brunei, and a medical supply factory in the Philippines. At the sametime, a seminar workshop was held in each country to which government and factory
officials were invited from different industries in the host countries. Some best practicesof energy efficiency and conservation were presented, and the information was shared to
the foundation of promotional activities. Ways to utilize the completed TD and IHDB inenergy efficiency and conservation activities in actual factories were discussed, andsome examples were presented in the seminar workshop.
We hope that this project will contribute to energy and environmental conservation in
the industries of ASEAN countries and that the countries will successfully realize
sustainable economic development in harmony with the environment. At the same time,
we hope this project will promote technological interaction and friendship between
Japan and the applicable countries.
March 2010
The Energy Conservation Center, Japan

Table of Contents
Preface
Table of Contents
Abbreviations
Overview

1

I.

I-1

Purpose and History of the Project

II.

MyanmarII-1

1. Activity Overview

II-1

2. OJT audit for MAF1

II-1

3. Visiting Guidance

II-12

4. Seminar workshop

II-17

III.

Brunei Darussalam

III-1

1. Activity Overview

III-1

2. OJT audit (BSP oil refinery)III-1

3. Visiting Guidance (the Butra Heidelberg Cement (BHC))

III-104. Seminar workshop

III-14

Attachment III

26

IV.

The Philippines

IV-1

1. Activity Overview

IV-1

2. OJT audit (Amherst Laboratories)

IV-1

3. Seminar workshop

IV-16

Attachment IV

IV-26

The following abbreviations are used in this document.
General
AHU
AVR
BMS
CDU
CFL
COP
CSR
DCS
DB/BM
DHCR
DO
EE&C
EEI
EM H/B
EMS
ESCO
FP
FRL
GDP
GMP
GTG
HACCP
HVAC
IDF
IHDB
ISO
JBIC
KPP
LED
OJT
PCB
PROMEECSEC

Air Handling Unit
Automatic Voltage Regulator
Building Management System
Crude Distillation Unit
Compact Fluorescent Lamp
Coefficient of Performance
Corporate Social Responsibility
Distributed Control System
Database / Benchmark
Direct Hot Charge Rolling
Dissolved Oxygen
Energy Efficiency and Conservation
Energy Efficiency Indicator
Energy Management Handbook
Energy Management System
Energy Service Company
Focal Point
Fluorescent Lamp
Gross Domestic Product
Good Manufacturing PracticeGas Turbine Generator
Hazard Analysis and Critical Control Point
Heating, Ventilation, and Air Conditioning
Induced Draft Fan
In-house Database
International Organization for Standardization
Japan Bank for International Cooperation
Key Process Parameter
Light Emitting DiodeOn-the-job Training
Printed Circuit Board
Promotion on Energy Efficiency and Conservation
Specific Energy Consumption

SCADA
SH
TD
TOD
TPM
VAP
VSD
ASEAN & UN
ACE
ADB
APAEC
ASEAN
EAS-ECTF
SOME-METI
UNEP
UNIDO
UNESCAP

Supervisory Control and Data Acquisition
Sensible Heat
Technical Directory
Total Oxygen Demand
Total Production Management
Voluntary Action Plan
Variable Speed Drive

ASEAN Centre for Energy
Asia Development BankASEAN Plan of Action for Energy Cooperation
Association of Southeast Asian Nations
East Asia Summit - Energy Cooperation Task ForceASEAN Senior Officials Meeting on Energy - METI
United Nations Environmental Program
United Nations Industrial Development Organization
United Nations Economic and Social Commission for Asia and thePacific

Japan
AOTS
ECCJ
METI

Association for Overseas Technical Scholarship
Energy Conservation Center, Japan
Ministry of Economy, Trade and Industry

Myanmar
MAF1

Myanmar Automobile Factory (1)Brunei Darussalam
BHC
BLNG
BSP
DES
ITB
PMO
UBD

Butra Heidelberg Cement
Brunei Liquefied Natural Gas
Brunei Shell Petroleum
Department of Electric Service
Institut Teknologi Brunei
Prime Minister’s Office
Universiti Brunei Darussalam

Philippines
DOE
MERALCOPCIERO
PNOC

Department of Energy
Manila Electric Railroad and Light
Philippines Council for Industry & Energy and Development
Philippines National Oil Corporation

Malaysia
PTM

Pusat Tenaga Malaysia

Indonesia
EMI

Energy Management Indonesia (PERSERO)

Overview
The economies of ASEAN countries are rapidly growing. The amount of energy
consumption is also expected to increase at a rapid pace in the future, and efficientenergy use and consideration toward mitigation of global warming will be increasingly
important. This project is in its tenth year. The activities of ACE, the counterpart to thisproject, and organizations involved in ASEAN countries have been improved andsolidified. With the background of the recent increase energy price due to the surge inoil prices and the Kyoto Protocol entering into force on February 16, 2005, awarenessreform toward reduction of energy consumption has been spreading in the target
countries.
This year was positioned as the first year of Phase 3 to integrate the outcomes ofactivities over the past nine years and to solidify the implementation and spread of thepast accomplishments through strengthened independent efforts. That is, this is the year
to establish infrastructures to promote energy efficiency and conservation to implement
and spread the findings of energy audits conducted in the factories of ten industries inall ASEAN countries over the past nine years. Specifically, the following activities wereconducted in three countries: Myanmar (auto industry), Brunei Darussalam (oil refineryindustry), and the Philippines (medical supply industry).
 Energy audits, follow-up investigations, and visiting guidance
Implement energy audits in factories that have not been diagnosed before, follow-up
investigations in factories that have been examined in energy audits in the past, andone-day visiting guidance in small factories.
 Hold seminar workshops
With the participation of factory officials in the target countries, including those fromdifferent industries, as well as factory and government officials from other ASEAN
countries, they presented the activities and examples of improvements each other andspread outcomes including best practices and knowhow to ASEAN countries.
 Production of technical directory (TD)Introduce technologies and best practices that might be effective in ten types ofindustries in ASEAN countries, share information, and increase possibilities toimplement and spread those technologies.
 Establishment of in-house databases (IHDB)Continuing from the last fiscal year, work toward the implementation and spread of1

IHDBs in actual factories in the steel industry and the ceramics industry. In addition,
develop IHDBs for the auto, oil refinery, and medical supply industries, test them in
actual factories, and examine their validity.
In investigations in individual countries, Japanese experts provided on-site guidance tolocal officials and worked to solidify technological transfers as they checked thelearning status of energy audit technologies that had been transferred in the past. In
factories that had not sufficiently implemented suggestions, the experts examined anddiscussed factors that had impeded implementations and provided clues for future
implementation and promulgation.
Many factory and government officials attended seminar workshops in each countries.
The seminar workshops played important roles in sharing and promulgating
information.
The following section describes details of this year’s activities in the major industry
project.
I. On-site activities in Myanmar at September 28, 2009 to October 6, 2009:
1. An energy audit was conducted in an automobile factory in Yangon. The local audit
team consisted of engineers from the Ministry of Industry (1), Ministry of Industry(2), and Ministry of Energy, as well as engineers from government-relatedorganizations. The leader of the team was an engineer from the Ministry of Industry(2). The audit was conducted based on the OJT method, and auditing technologies
were transferred to Myanmar engineers.
2. Fifty-two people attended the seminar workshop and engaged in an active exchange
of information through the following presentations and discussions. An exercise inboiler heat balance was conducted as a first attempt in this project, some assignments
were given to the participants, and some participants presented their answers and got
some instructions from experts.
(1) Presentations by the Myanmar and Japanese delegates about energy efficiency andconservation policies and programs(2) Presentations by the Myanmar officials and officials of other ASEAN countries
about some examples of energy efficiency and conservation efforts(3) Presentations by the on-site auditing team about the outcomes of the energy audits2(4) Exercise in boiler heat balance(5) Presentations by ACE and ECCJ about creating TD and IHDB establishment
activities
II. On-site operations in Brunei Darussalam at October 19, 2009 to October 27, 2009;
1. Energy audits were conducted in the oil refinery in Seria, Brunei Darussalam. The
on-site auditing team consisted of engineers from the Office of the Prime Minister,Electricity Service Department, Institut Teknologi Brunei, Brunei LNG, and Brunei
Shell Petroleum Company. The leader was an engineer from the Office of the Prime
Minister.
2. A follow-up audit was conducted in the cement factory where the OJT audit was
conducted in 2000. The follow-up team consisted of engineers from the Office of thePrime Minister and the Institut Teknologi Brunei.
3. Forty-one participants attended the seminar workshop, including engineers from the
Office of the Prime Minister, the Electricity Service Department and the Institut
Teknologi Brunei, as well as officials from oil refinery, LNG production, and cementcompanies. Officials from ASEAN countries gave presentations about best practices
and reported on the outcomes of audits of the oil refinery factories. The exercise inboiler heat balance was also conducted.
III. On-site operations in the Philippines at November 29, 2009 to December 6, 2009;
1. An energy audit was conducted in a medical supply factory in the southern part of thecity of Manila. The on-site auditing team consisted of engineers from the Ministry ofEnergy, medical supply companies, and the factory to be diagnosed. The audit was
conducted based on the OJT method, and auditing technologies were transferred toFilipino engineers.
2. Forty-five participants attended the seminar workshop. The seminar workshop was
successfully conducted with participants from the Ministry of Energy, medical supply
companies, energy technology service companies, and the hotel industry. Officials
from ASEAN countries gave a presentation on best practices and reported theoutcome of an audit of a medical supply company. An exercise in boiler heat balance
was also conducted.
In the end, officials from ACE, relevant organizations in different countries, and3

relevant companies agreed to provide full support for implementation of this project, we
would like to express our sincere appreciation for their support.

4

I.

Purpose and History of the Project

The purpose of this project is to contribute to energy efficiency and conservation, as
well as environmental protection in ASEAN countries, by assisting in the promotion of
measures for energy efficiency and conservation in major industries in the target
countries, which can be achieved by assisting in the activities of those countries topromulgate and promote the technologies for energy efficiency and conservation in
major industries.
Started in 2000 under the initiative of ASEAN Centre for Energy (ACE), this project
aims to reduce the amount of energy consumption in the growing industries of theASEAN regions. The ASEAN side calls this project PROMEEC (Major Industries).
PROMEEC stands for the Promotion of Energy Efficiency and Conservation, thecooperative project agreed on between the committee of energy-related ministers fromten countries and the Ministry of Economy, Trade and Industry of Japan. The projectprovides technological and administrative assistance to promote energy efficiency andconservation in the industries of the ASEAN countries through this project.
The purposes of this project are as follows.
1. Tighten the cooperative relationship between ASEAN countries and Japan in theenergy sector.
2. Promote energy efficiency and conservation in major industries in ASEAN countries.
3. Promote the transfer of Japanese technologies and the implementation of outstanding
efforts to improve energy efficiency in major industries in ASEAN countries.
4. Improve the technological levels of ASEAN countries through energy audits and its
OJT.
5. Establish the technical directory (TD), database (DB), and benchmark (BM) forenergy audits in ASEAN countries.
Based on past discussions with ASEAN countries, including ACE, this year’s support
project is positioned as the first-year activity of Phase 3 under the recognition that theentire project is implemented in the following three phases.
Phase 1: Transfer technologies and experience from Japan to ASEAN countries.
Phase 2: Implement improvement measures as a joint effort between Japan and ASEAN
countries and spread the measures to other countries.

I-1

Phase 3: Promote energy efficiency and conservation as the independent efforts of
ASEAN countries.
In Phase 1, energy audits in one industry in each of ten ASEAN countries and thetransfer of auditing technologies were conducted (completed in fiscal 2003). In Phase 2,
while conducting energy audits, the infrastructures for energy efficiency andconservation were built to implement and promulgate improvement measures(completed in fiscal 2008). In Phase 3, the project aims for utilization of the energy
efficiency and conservation infrastructures, including the transferred technologies
through the independent efforts of individual ASEAN countries, as well as the spreadand promulgation of them within ASEAN countries (started in fiscal 2009).
Based on the above history and purposes, independent energy audits of individual
ASEAN countries are to be supported, and implementation and promulgation of
improvement measures are to be promoted in fiscal 2009. Specifically, energy audits toensure regional promulgation of energy auditing technology were conducted in newfactories. Follow-up investigations on the implementation status of recommended
improvement measures were conducted in factories where energy audits had been
conducted in the past. Technical directories (TD) were created and in-house databases(IHDB) and benchmarks (BM) were also built. Energy audits were conducted in
automobile factory in Myanmar, oil refinery in Brunei Darussalam, and medical supply
factory in the Philippines. Along with the energy audits, a seminar workshop was held
to which government and factory officials were invited from different industries in thehost countries. The participants gave presentations on best practices of energy efficiency
and conservation efforts and shared information within the ASEAN region.

I-2

II. Myanmar
1. Activity Overview
In the International Infrastructure Development Project for Efficient Use of Energy,
which is the project contracted by METI, officials visited Myanmar from September 28
to October 6 to implement the Energy Efficiency and Conservation Promotion Projectfor Major Industries in ASEAN Countries. They implemented OJT audits at national
truck factories, visiting guidance at national LED lamp factories and private consumer
electronics factories, and seminar workshops to exchange information with the people
in industries in Myanmar and officials from ASEAN countries. Twenty-six engineersfrom the Ministry of Industry (1), Ministry of Industry (2), Ministry of Energy, Ministryof Science and Technology, Ministry of Agriculture and Irrigation, Myanmar
Engineering Society, consultants, ECCJ, and ACE participated in the OJT audits and thevisiting guidance. A seminar workshop was successfully held in Nay Pyi Taw, thecapital city of Myanmar, with 52 participants from the Vice Minister of Industry (2),Yangon Institute of Technology, and Mandalay Technological University, as well as twoparticipants from the Philippines and Malaysia.
Delegates: Mr. Taichiro Kawase, Mr. Kokichi Takeda, and Mr. Hidetaka Urakubo,
Technical Experts of Technology Cooperation Department, ECCJ
Activity schedule:
Sep. 28 to Oct. 1: OJT audit (Myanmar Automobile Factory (1) (herein after called
as MAF1))
Oct. 2: Visiting guidance (LED, Nibban Electronic)
Oct. 5: Seminar and workshop (at Nay Pyi Taw)
Oct. 6: Wrap-up meeting (Ministry of Industry (2))
2. OJT audit for MAF1
(1) Participants: 26 people
Ministry of Industry (2): Mr./U San Lynn (Director, Local Team Leader),Mr./U Thaw Da Pu (General Manager, MAF1 Factory Manager) and others
Ministry of Industry (1): Mr./U Wai Zin Oo (Assistant Manager) and others
Ministry of Energy: Ms./Daw Saw Mu (First Engineer) and others

II-1

Ministry of Science & Energy: Dr. Aye Thant (Assistant Director) and others
Ministry of Agriculture & Irrigation: Mr./U Myint Soe (Assistant Director) and others
Consultant: Mr./U Ohn Myint (Myanmar Engineering Society)
Mr./U Htun Naing Aung (Kaung Kyaw Say Co., Ltd.)
Mr./U Shane Kyi (Uni-tech Co., Ltd.)Two from ACE (Ms. Maureen Balamiento, Mr. Bernard Ginting)Three from ECCJ (Mr. Urakubo, Mr. Takeda, Mr. Kawase)(2) Factory overview
Factory manager Mr./U Thaw Da Pu explained the overview of the factory in thefirst.
Factory: Myanmar Automobile & Diesel Engine Industries (MADI), which is under
the jurisdiction of the Ministry of Industry (2), possesses three assembly
factories and three parts factories. MAF1 is one of the three assembly factories
and is located in a residential area in the Mayangon region, about 10 kilometers
north of Yangon. MAF1 adopted the facilities and technologies of Hino Motors
and started operations in 1962. The support of Hino Motors ended in 1970.
Since then, MAF1 has been manufacturing old-style cab-behind-engine trucks
with their own technologies. The factory is also manufacturing their own nuts
and bolts. Their local content is as high as 80%.
Manufactured goods: 6.5-ton trucks (manufactures about 300 trucks per year)
Market: 100% domestic sales
Manufacturing facilities: Press machines, flat spring manufacturing facility, nuts andbolt manufacturing facility, clutch manufacturing facility, assembly system
Energy consumption: fuel oil 28,200 gal/year, LPG 25,800 kg/year, electricity 1,025
MWh/year (unit 25 kyat) (Reference: 0.09 JPY/kyat as of Dec. 2008)
Employees: 650(3) Audit overview
1) Participants in the auditing teamTwenty-seven engineers from the Ministry of Industry (1), Ministry of Industry (2),Ministry of Energy, and government agencies joined the local team. The participants
mostly belonged to national companies in the truck and diesel, tire and rubber, fiber,
food, paper and pulp, or tool and electricity industries. Mr. San Lynn of the Ministry ofII-2

Industry (2) was assigned as the team leader.
2) Identification of problems through on-site inspection
An on-site investigation was conducted in walk-through method by the ECCJ experts
and the auditing team. Based on a request from the factory, the inspection focused on
the heat treatment furnaces, zinc plating system, pneumatic system, and power receiving
system. The inspection identified the following subjects. The identified subjects can also
be called indicators of chances to conserve energy.
(a) Heat treatment furnace
There are nine furnaces, all of which are batch feed incinerators. Since seven of them
are small and the operation rate is low, it is difficult to secure the profitability of energy
saving facilities. Possible low-cost measures include improvement in thermal insulation.
The inspection suggested that the old bricks that were currently used as insulation did
not have very high heat conductivity. If the measurement of surface temperature is high,profitability may be improved by replacing the bricks with ceramic fiber as insulator.
The remaining two are the heating furnace and the tempering furnace for flat springs.
They are large and frequently used; thus, the examination of the following energy
conservation measures may be necessary:
・The burners are turned on even during non-manufacturing periods, which means a lossof energy. The factory should either stop the burners or reduce the power of theburners. As a first step, they need to identify the ratio of time when the furnaces are
not used for manufacturing.
・Improve the insulation in the furnace walls: It is necessary to measure surface
temperatures in different spots on the furnace walls, because surface temperatures areoften high. Since the furnaces are used in batch operations with frequent cooling andheating cycles, the loss of accumulated heat from the furnaces is significant. Using
insulators with small heat capacity, for example ceramic fiber, may be effective asenergy saving measures.
・Radiation loss from the opening of a furnace: The opening of the entrance/exit is large
and requires installation of heat shield curtains. Heat resistant ceramic fiber iseffective as a material for the heat shield curtain.
・The furnace pressure tends to be positive pressure, and the inspectors observed a small
amount of hot air spewing from the furnace. Adjustment of the damper and therotation speed of the fan and consideration of strengthening the chimney draft are

II-3

necessary to keep the furnace pressure slightly negative. Appropriate measures toadjust the rotation speed include installation of a low-price inverter that can be
manually adjusted or increasing the number of poles in the motor.
・ The factory should consider installing an air pre-heater after measuring thetemperature of the exhaust gas, if the temperature of the exhaust gas is high. If theoxygen concentration is high, they need to adjust the burner.
・If the damper opening at the exit for the air fan and exhaust gas fan is kept small, thefactory should consider fine-adjusting the rotation speed of fan in order to reduce
damper loss.
(b) Zinc plating system
The zinc plating system consists of a small plating bath and a rectifier. Rooms to reduceenergy consumption include thorough cleaning of the polar surface of the plating bath tokeep the residue-based increase of electrical resistance to a minimum. Since the system
is small, however, it may be difficult to ensure economic profitability.
(c) Pneumatic system
Of the five systems (four reciprocating engines and one screw engine), the teaminspected three reciprocating engines and one screw engine. The five systems are
installed in each factory, and there is no pipe that connects them. Since the capacity ofthe pneumatic system is medium to small, installation of connecting pipes is not
economically efficient. The team identified a loose belt in one of the two reciprocating
engine systems in the parts manufacturing factory. The team measured the electric
current in the other engine and confirmed that the system was in unload status about
30% of the operation time.
At the screw engine system in the assembly factory, the team measured the electric
current for a few hours to check whether the unloading time could be shortened.
Inspection of the status at the user end discovered multiple leakages. There seemed to
be problems in management, such as failure to tighten the end valves. Employee
training for improvement in awareness is required. To quantitatively identify the amountof air leaks, the team stopped the pneumatic system after work of the day and observed
how the pressure in the receiver tank would drop (pressure drop test). As a result, theteam estimated that a considerable amount of air was leaking (about 50% in aprovisional calculation). It was possible that the pneumatic systems in other factories
share similar problems.

II-4

(d) Power receiving system
The team inspected four power receiving and transforming stations. All of them dropped
the voltage from 6,600 V to 400 V. Load factors and other aspects are currently being
examined. The power factor could not be measured. The capacitor for power factor
compensation was not installed in either of the transforming stations.
(e) Hydraulic system
Hydraulic systems and air pressure systems are used to move equipment in many partsof the factories. Although press machines are standing by when they are not pressing,
the hydraulic pumps are in operation during the times of standby and wasting energy.
Thus, the team inspected the hydraulic press and air pressure press in the press factory.
They confirmed that the hydraulic press spent most of the time in standby. The factoryneeds to implement measures, such as installation of electromagnetic valves, forexample.
(f) Lighting
The factory has been making considerable efforts to cut energy use, such as thinning
down the number of lamps in the office area, using the latest high-efficiency fluorescentlamps, and turning off lights during lunch breaks. Also, the factory buildings were
designed to take in daylight. The remaining measures to cut energy only include
installation of reflectors in fluorescent lights and using task-ambient lighting in the
Quality Inspection Division.
3) Measurements
The factory supplied a clamp-style power meter and infrared thermometer as measuring
instruments. The same type of instruments was also supplied from ACE. ECCJ supplieda contact-type thermometer. The team effectively used all instruments and obtained asubstantial amount of data. The team used a power meter to measure the load of motors
for two fans and the load factor of the motors of pneumatic systems. The team used thethermometer to measure the temperature of the furnace walls of the heating furnace.
Factory engineers operated power meters to ensure safety.
Measuring instruments highly required for future measurements include oxygen meters
for combustion gas analyses and hot wire anemometers or vane anemometers tomeasure the air capacity of fans. These are instruments necessary for combustion

II-5

management and evaluations of inverter control, which are frequently conducted asenergy saving measures.
4) Data analysis (simple) and report
Subjects identified in the factory audit discussed in the last section were presented. Then,data to examine measures to solve these problems were collected. Attachment II-1,“Recommendations for the Myanmar Automobile Factory (1)”, lists provisional
outcomes of the OJT audit. These are reported to the factory executives and the audit
team as a flash report on the final day of the audit. The flash report was also presented
at a seminar workshop in Nay Pyi Taw.
Participants actively exchanged questions and responses about this flash report. Main
discussion topics are listed below:
・Information of costs required to implement cost reduction measures
・Profit and loss associated with replacing a compressor with a blower
・Mechanism of the micro gas turbine
・Examination of energy conservation measures
・Effects of the batch furnace door (from the perspective of energy conservation andsafety)・Improvement in the bending procedure・Installation of a suction hood in a quenching bath・Profitability of renewing aged facilities
・Profitability of replacing the carburizing furnace from the current electric furnace fromthe gas burner furnace.
5) Data analysis (detailed)
The data collected in Myanmar were brought back to Japan for detailed analysis.
5-1) Examination of energy conservation measures in thermal aspects (see Attachment
II-3)
Eight furnaces are installed in this factory. OJT audits were conducted on the LS 5 andLS 7 furnaces with large combustion intensities. The operation status, outcomes of heatbalance examinations, and energy conservation measures are described below.

II-6

(a) LS 5 furnace(i) Operation status
This furnace is used to quench the springs. The furnace is a continuous feed incinerator
type, but there is no distinctive zoning, such as the pre-heating zone and cooling zone,
because the furnace is small. Workpieces are carried into the furnace on the conveyor
installed on the furnace bottom. Workpieces are manually placed on the conveyor. The
opening of the conveyor is an elongated space 1,900 mm wide and 40 mm high. A
dividing shutter is installed at the opening to completely separate the internal space ofthe furnace from the ambient air. However, the shutter is not closed while the furnace isin operation (when workpieces are fed into the furnace) even when workpieces are not
fed for a short period of time. This is probably because the shutter is manually operated,
and the operation is troublesome. The workpieces exiting the furnace go through hot
working for a short period of time and are then immediately cooled in the quenching oilbath.
(ii) Trial calculation of heat balance(Heat Input) : (MJ/hr)
Combustion of the burner

3,903(Total)3,903(Heat Output) : (MJ/hr)
Stack loss
Gas loss from flame leak
Radiation loss
Loss from wall surface
Heat output of workpiece(Total)2,953.6615.0 (15.8%)
48.6
93.2
192.6 (4.93%)
3,903(iii) Auditing findings
・The greatest problem with this furnace is that most measuring instruments around thefurnace are out of order. The most important ones, the in-furnace thermometer anddraft meter, which indicates the pressure inside the furnace, are both broken and do
not work. The furnace originally had a system that measured in-furnace temperatureand controlled the fuel supply rate to the burner. However, since automatic control,
which is based on measured temperatures, is out of order, the fuel is manually
supplied to the burner. Actually, skilled workers in the factory (apparently there are
two of them) visually check the color of the workpieces inside the furnace andmanually control the fuel supply. These two seem to be highly skilled, and reportedly,
there are no problems with the actual manufacturing with this method. (SeePhotograph 1) The team advised the factory to immediately repair the in-furnace
II-7thermometer and the draft meter.
・There is an opening at the entry/exit of workpieces, since it is a continuous-style heat
treat furnace. A rolling door is installed at the opening of the furnace. The rolling door
is left open while the furnace is in operation, however, because workpieces frequently
enter and exit during the operation, and the door must be manually opened and closed.
As shown in the heat balance above, the heat loss from this opening is considerablylarge; the loss is 15.8% in calculation. Improvement is urgently required, such as
improving the rolling door or installing a metal curtain.
・The amount of heat absorbed by workpieces, the indication of actual heat efficiency, is4.93%, which is extremely small; this is a serious problem for energy conservation.
Unlike a boiler, this is a small annealing furnace, and it is difficult to improve heatefficiency. Nonetheless, it is necessary to keep this value 20% or higher. Urgent
measures are necessary, including the reduction of flame leak loss and reduction ofambient air intake. Although no measurements were taken due to the lack of an
oxygen meter on the day of the inspection, based on the heat balance, it is likely thatthe combustion gas contains a considerable amount of oxygen (about 13%).
5-2) Examination of energy conservation measures in electrical aspects (see Attachment
II-4)(a) Air compressor
Air compressors are placed in individual shops in this factory. This inspection focusedon specific devices and investigated their unload rates and took on-site measurements of
air leaks.
(i) Air compressors for press and assembly shops (AC1)
The air leak test found that the air leak rates were high (50%). Thus, the first priority is
to improve air leaks.
・Repair areas of air leaks and strengthen routine inspections (air leak checks andfollow-up of the outcomes)
Strengthen management of negligence of users to close compressed air (employee
education and establishment of management system)(Rough calculation of energy to be saved from improving air leak)
Assume that the air leaks are improved by about 50% to 10%. (Forty percent

II-8reduction in the amount of air use)
As a result, the on-load rate becomes 55% (91% × 0.6) and the unload rate 45%.
ΔkW = (54 kW × 0.91 + 25 kW × 0.09) – (54 kW × 0.55 + 25 kW × 0.45)= 51.4 - 41.0 = 10.4 [kW]Energy conservation ratio = 10.4 / 51.4 × 100 = 20.2 [%]The unload time ratio decreases after improving the air leaks and requires measures toreduce unload loss.
・Reducing the capacity of air compressors etc.
(Rough calculation of energy conservation through the reduction of air compressor
capacities): Temporarily suppose that the margin of capacity is 10%.
Suppose that the on-load input of small-capacity air compressor is 36 [kW](54 kW ×
0.6 × 1.1), ratio 83[%](55 × 54/36), unload input 17[kW](25 kW × 36/54), and time
ratio 17[%].
ΔkW = (54 kW × 0.55 + 25 kW × 0.45) – (36 kW × 0.83 + 17 kW × 0.17)= 41.0 - 32.8 = 8.2 [kW]Energy conservation rate = 8.2 / 41.0 × 100 = 20 [%]Actual capacities of compressors vary slightly because they are selected from thestandard specifications of manufacturers.
(ii) Air compressors for machine tool/spring shops (AC2, AC3)
The measured unload rate is 29%. However, the unload rate may be worse after
improving air leaks depending on air leak tests that are similar to AC1. Thus, thepossible perspectives of energy conservation include the following.
・Identification of the amount of air leaks and measures to deal with air leaks
・Reduction of unload loss (examination points after implementing the measure (i))
Reduce air compressor capacities or employ a high-efficiency capacity controller(inverter device).
However, since two compressors, AC2 and AC3 may be in operation at the same time, itis necessary to take operation conditions into account to deal with maximum loads when
considering air compressor capacity reduction.
The current unload loss = 17 kW × 0.29 = 4.93 [kW]Ratio to the entire AC2 = 4.93 /(60 × 0.71 + 4.93) × 100 = 10.4 [%](iii) Air compressors for large automobile parts manufacturing plants (AC4)Partial load control function is absent in these compressors. The pressure of receivertank increases, and the safety valve is turned on during light loads. Start/stop control is

II-9manually conducted at the equipment side based on the communication from the userside. Thus, there is a risk of unload loss, but we cannot provide a quantitative evaluation
because we were unable to obtain data, such as unloading time. The perspectives for
future energy conservation are the same as the section (b) of AC2.
・Identification of the amount of air leaks and measures to deal with air leaks
・Identification of unloading time and consideration of using automatic unloading
control, as well as a reduction in air compressor capacity or using a high-efficiency
capacity controller if the unload ratio is high.
(b) Combustion air fan
Combustion air fans for the furnace in the leaf spring shop and temper furnaces were
investigated.
(i) Combustion air fan in furnace
Expected motor outputs based on measured data are mostly the same as the shaft power
when the fan operates at the rating. The fan is used mostly at the rated air capacity, but
the air capacity variability depending on different settings of the air-fuel ratio was notconfirmed. As a suggestion for conserving energy, can they reduce the air capacity to
use and pressure from the current furnace operation? When considering the employment
of inverters in the future, it might be difficult to establish a case for investment
efficiency if they need to customize or employ an air fuel ratio control system.
(ii) Combustion air fan in the temper furnace
The energy consumption of applicable fans is small, and great effects from energy
conservation cannot be expected. Nonetheless, the team conducted a trial calculation of
the amount of energy conservation when the rotation speed is reduced, which will be
used as reference information for the energy conservation calculation of the fans.
ΔkW = kWb’– La × (Nn/No)3／(η tc × η mb ) × η fa / η fb [kW]= 1.44/0.8 – 1.53 × (0.91)3／(0.95 × 0.8) = 1.80 - 1.51 = 0.29 [kW]Energy conservation ratio = 0.29 / 1.80 × 100 = 16 [%]When the fixed resistance (suppose that the required pressure in front of the burner is
600 mmAq) is high like the applicable fans, the effect of reducing the rotation speed issmall, and it is difficult to establish a case. Suggestions for energy conservation are thesame as section (a) (such as the air capacity to use and reducing pressure).
6) Status of energy management

II-10

The company was implementing top-down activities to improve awareness of energy
conservation among employees. Specifically, as measures to conserve energy fromlighting devices, they were diligently turning off lights during lunch breaks andemploying the latest high-efficiency fluorescent lamps, FRL. They were also thinking
about reducing the number of fluorescents lights throughout their facilities. We
suggested the following as future issues to work on in order to further improve theabove activities:
・Establish an energy management system.
Organize an energy conservation promotion committee, which requires strong support
from factory executives.
Appoint energy leaders for individual facilities.
Promote employment education, especially worker education.
Request some competent authorities to provide advice.
・Facility maintenanceFurther improve management with a special focus on devices, such as furnaces,
pneumatic systems, and hydraulic devices to elongate their service lives.
・Measurement and records
Conduct monitoring and recording of energy consumption data.
(4) Remarks
1) Honestly, we were surprised to find that the factory was still using the machines andequipment with great care that Japan had provided before 1970. Machines fromJapanese manufacturers, such as Hitachi, Komatsu, Mitsubishi, Toshiba, and Niigata,were still standing and in great shape in the factory. These technologies seemed only
able to manufacture 6.5-ton-level bonnet trucks back then; it was truly strange to see thetrucks still being manufactured in front of our eyes. People in the factory repeatedly told
us that Japanese machines lasted for a long time. We first thought they were just being
nice to us, but in the end, we actually felt that the people in Myanmar sincerely
respected Japanese technologies.
2) Mr. San Lynn, the industry coordinator for PROMEEC and officials of the Ministryof Industry (2) prepared for our visit well. Many engineers from industry-related
government agencies joined the local team. Although there were only power monitors
and infrared thermometers, they provided us with measuring instruments. The factory
was well prepared for our visit. For example, they prepared a PowerPoint presentation

II-11

to explain the factory overview and their energy efficiency and conservation activities.
Thanks to their efforts, we were able to shorten the time for interviews and otheractivities and spend a lot of time on the facility inspection and discussions.
3) Unfortunately, there was little progress in the factory’s status of energy efficiency andconservation. Especially, the concept of energy management has not been infiltrated,and maintenance was not sufficiently conducted. Many no-cost and low-cost energy
efficiency and conservation measures were pointed out in the walkthrough. We hopethat they will immediately put our suggestions into practice.
4) Many engineers from other industries participated in this OJT audit. We expect thatthey efficiently learned the meaning of energy management, the importance of
maintenance, and no-cost and low-cost energy efficiency and conservation measuresthrough actual examples. I hope that the outcomes of this OJT will spread to industries
besides the auto industry.
3. Visiting Guidance(1) Circumstances
The initial plan included a follow-up investigation in the fiber factory where the OJT
audit was conducted last year. At the request of the Myanmar side, however, we
suddenly decided to visit the national LED factory and the private consumer electronics
parts factory(2) Date, time, and participants
October 2, a.m.: LED Lamp Factory (state owned)
p.m.: Nibban Electric & Electronics (private)
26 participants (everyone who participated in the OJT audit)(3) LED Lamp Factory1) Factory overview
History: This is a state owned factory under the jurisdiction of the Ministry ofIndustry (2). It was a factory that manufactured tumbler switches before lastyear but transformed into a factory to manufacture LED lights for decorations
last year. Equipment and technologies were brought in from China.

II-12

Products: LED lights for decoration
Sales target: 100% domestic consumption
Manufacturing capacity: 50,000 products/shift
Manufacturing process: Lead frame → Epoxy bond → Die bond → Wire bond →Phosphor → Mold → 1st cutting → 2nd cuttingMaterials: Epoxy covers, colors, circuit boards (imported from China)
Employees: 100 people
Assigned official: Mr. Myo Myint (former factory manager)
2) Main energy facilities
Transformer 300 kVA (6600 V to 230 V)
Diesel in-house power generator
Pneumatic system to drive manufacturing devices
Oven for soldering gold
Package air conditioner for lamp manufacturing room
Cooling tower for air conditioning in workroom (evaporative air conditioner)
Lighting equipment in workrooms and offices3) Outcomes of walkthrough and details of guidance・As the 300 kVA transformer indicates, this is a small factory. Organized energy
efficiency and conservation measures have not been started yet. We advised thefactory to appoint leaders and keep records of purchased power and fuel for in-house
generation.
・Many old-fashioned tubular fluorescent lamps were installed in workrooms andcorridors. Since there were lamps without reflectors and some were dirty, we
recommended installation of shiny metal reflectors, installation of pull-switches, andsequential replacement of the old lamps with high-efficiency fluorescent lamp FRLs.
Local lighting was already installed.
・The temperatures in the workrooms and corridors were 25 °C to 30 °C. The package
air conditioner was manually controlled. It seemed as if meticulous temperature andhumidity control was unnecessary for lamp manufacturing.
・The oven for soldering gold was separated in another room, which prevented heatcontamination from the workrooms. The exhaust pipe of the oven was not insulated,
and its surface temperature was 104 °C. We advised covering the pipe with simple
insulation.

II-13

・The in-house power generator was running during our visit. We were told that thegenerator was turned on once a day on average. We advised recording the liquid levelof the rectangular parallelepiped light oil tank to monitor changes in the amount offuel used.
・The air compressor is operated in on-off control. On-site inspection observed that thesystem was turned off for a long time, which means that the capacity of the aircompressor is too large. The factory needs to consider employing smaller systems,
such as baby compressors.
(4) Nibban Electric & Electronics (private)
1) Factory overview
Location: The factory was located in the Dagon Industry Complex in the rice paddy
area, which was 30 minutes by car to the east of Yangon. Mr. Aye Ko, theassistant manager of manufacturing, received us. He participated in the
AOTS training (YKC) about kaizen (“improvement” in Japanese) in 2008.
The founder of the factory was inspired by Japan’s kaizen activities andnamed the company Nibban, which means “second in line” in Japanese to
advocate his attitude toward running the company.
Products: TV antennas, antenna boosters, AVR, voltage regulators, rice cookers
Manufacturing devices: Antenna assembly system, PCB system, transformer coilwinding system, varnishing system, sliding system, metal plate cutting/punching system, powder coating system, machining center, injection
machine, etc.
Obtained certification: ISO 9001-2000
Employees: 200 people
Assigned official: Mr. Aye Ko (assistant manufacturing manager)
2) Main energy facilities
Paint baking oven (LPG burner)
Transformer (6600 V to 230 V)
Diesel in-house power generator (2 units)
Air compressor (4 units)
Cooling tower for cooling injection machine (2 units)
Package air conditioner for offices

II-14

Lighting devices for workrooms and offices3) Outcomes of walkthrough and details of guidance・As mentioned in the previous section, this factory has been working on kaizen
activities since 1997. There was a note on the wall of Mr. Aye Ko’s office that
described the 5S (five improvements) and 7W (seven wastes). The factory seemed tohave produced certain results, such as the diligent practice of turning off lights inunused rooms. The next step is to progress from activities by some employees toactivities by all employees.
・Energy consumption monitoring systems called PLC (power line carrier) are installedin this factory. Three energy monitors are installed and monitor energy consumption
while storing data in the computer. This is a quite advanced effort in a small factory.
・One large building in this factory has low partitions to divide the space, and different
work processes are located in the divided spaces. While the factory has no air
conditioning system, insulation that appeared to be blankets were placed wall to wallin the attic to block heat from the roof. Also, there are windows in the roof withtransparent glass to allow in natural daylight; they maintain the balance between theeffect to block heat and the use of daylight.
・ Combined lighting is used in the work processes: local lighting with tubular
fluorescent lamps and general lighting with halogen lights installed to cover the local
lighting. Since the reflectors for the fluorescent lights were dirty, we advised
replacing them with shiny metal reflectors.
・Paint baking system is a two-room batch system and maintains a combustion
temperature of 170 °C with an LPG burner. Waste heat is not collected. Since it is asmall system, profitability from a waste heat collector cannot be expected. Since there
is no stack for exhaust gas, we advised installing a stack for safety and environmental
perspectives.
・Energy efficiency and conservation measures to be considered generally include
insulation of the heating barrel, insulation of a resin dryer, reduction in the amount ofwater for cooling, and reduction in power while the hydraulic pump is standing by.
Since the molding press in this factory is small, it is probably difficult to improve
profitability from these measures. Possibilities include insulation of the heating barrel
and a reduction in the amount of cooling water.
・When considering insulation of the heating barrel, it is necessary to select a ceramic
insulation blanket with the lowest price possible.

II-15

There is also a possibility of maintaining profitability from reducing the amount ofcooling water. The following outcomes are found from measuring the surface
temperature of cooling water pipe using a contact thermometer:
Entrance of oil cooler 27.3 °C
Exit of oil cooler
27.9 °C
Entrance of cooling water
Impossible to take measurements
Exit of cooling water
26.4 to 27.0 °C
The temperature differences at the entry/exit of the oil cooler and at the entry/exit of
the cooling tower in the design are both 5 °C. Thus, the above data indicate thepossibility that the amount of cooling water in circulation is excessive. Then, as thefirst step, reduce the amount of cooling water in circulation and make sure that it does
not interfere with the operation of the injection machine. Then, as the second step, werecommend considering implementation of measures to reduce the pump power, suchas controlling the cooling water pump speed.
・Although the diesel in-house power generator is for emergency use, it is reportedly
turned on for four hours a day in the present situation. Effective energy efficiency andconservation measures for a diesel power generator include heat collection ofpotential heat from the exhaust gas and waste heat from the cylinder cooling water.
The temperature measured on the surface of the exhaust gas pipe was very high at
400 °C. A general practice is to collect the waste heat from both devices as hot water,
but this method is not applicable because hot water is not used in this factory. Anothermethod is the production of cool water using a waste heat absorption refrigerator, butsince the installation cost is expensive, it is probably difficult to employ this methodin this factory.
(5) Remarks
・Both of the two factories we visited this time are small, and profitability cannot beestablished because the effects of the many possible options to conserve energy aresmall.
・Of the possible measures, energy conservation through lighting equipment is easy to
implement and actually produced considerable effects in both factories. Nonetheless,the reduction in the number of lamps through the improvement of reflectors was yet
to be implemented; we expect the factories to improve the reflectors in the future.
・Although we didn’t have time to inspect in this visit, leaks of compressed air tend to beoverlooked; we request the factories to check leaks. The amount of compressed airleaks can be easily estimated by measuring how the pressure in the air receiver

II-16

decreases when the air compressor is turned off after a work of day. We definitely
encourage the factories to try this method.
4. Seminar workshop(1) Date, time, and location
October 5, 2009, 08:30–17:00
Chatrium Hotel, Nay Pyi Taw, Myanmar(2) Participants: 52 people
Ministry of Industry (2) : Total of 13 people
Mr. Kyaw Swa Khine, Deputy Minister
Mr. Myoe Aung, Director General, Directorate of Myanmar Industrial Planning
Mr. San Lynn, Director, Myanmar Industrial Construction Services,(Coordinator for PROMEEC industry)Engineers from national factories (tool and electric, truck and diesel, tire andrubber)
Ministry of Industry (1) : Five people
Mr. San Tai Myint, Deputy General Manager
Engineers from national factories (fiber, food, beer, sugar, paper, pulp)
Ministry of Energy : Nine people
Mr. Soe Aung, Director General, Energy Planning Department (focal point)
Ms. Wah Wah, Deputy Director and others
Ministry of Agriculture and Irrigation : Five people
Mr. San Thein, General Manager and others
Yangon Technological University : Three people
Mandalay Technological University : One person
Myanmar Engineering Society : Four people
Mr. Ohn Myint, Executive Committee Member (former focal point)
Mr. Myint Kyaw, Work（？）ing Committee Member and others
Suntac Technologies : Two people
Kaung Kyaw Say Co., Ltd. : Two people
AE Engineering Co., Ltd. : One person
ASEAN (speaker) : Two people
Mr. Zul Azri Bin Hamidon, Expert, PTM, Malaysia

II-17

Mr. Marlon Romulo Domingo, Senior Specialist, DOE, The Philippines
ASEAN Center for Energy (ACE) : Two people
Ms. Maureen Cruz Balamiento, IT Specialist
Mr. Bernard Ginting, Technical Officer
The Energy Conservation Center, Japan (ECCJ) : Three people
Mr. Taichiro Kawase, Technical Expert, International Engineering Department
Mr. Kokichi Takeda, Technical Expert, International Engineering Department
Mr. Hidetaka Urakubo, Technical Expert, International Engineering Department(3) Presentation overview
Session 1: Policy and Initiatives on EE&C in Major Industries
1) Updates of ASEAN Energy Efficiency (EE&C) Activities
Ms. Maureen Balamiento described the activity overview of ACE based on the following
topics.

・APAEC Program 2004-2009
・ASEAN-Japan Cooperation (SOME-METI, PROMEEC, and Multi-Country Training)
・ASEAN Best Practice Competition (energy conservation section)
・ASEAN + 3 Energy efficiency and conservation/Renewable Energy Forum・Other cooperation programs with EAS-ECTF, UNEP, ASEAN Foundation, ADB, andCDC.
Of these topics, she explained about the APAEC Program 2004–2009 in detail: thisprogram includes six program areas, and energy efficiency and conservation are
implemented in program area 4; the purpose is to strengthen the cooperation of theASEAN region through the capability establishment of energy efficiency andconservation organizations, the involvement of the private sector, and the expansion of
the market for energy saving devices; and this program intends to implement activities
in six categories in order to achieve its goals.
(Information sharing and networking, ASEAN energy standard and labeling,
participation of the private sector, capability building, training of ESCO companies, andenergy efficiency and conservation in the transport sector)
As main activities in the program area 4, she then introduced PROMEEC activities
based on circumstances of leading to Phase 1, Phase 2, and Phase 3, as well as outcomes

II-18

and future perspectives.
2) Overview of Plans & Programme on EE&C in Myanmar
Ms. Wah Wah of the Ministry of Energy explained the latest energy efficiency andconservation policies of Myanmar based on the following 3 categories:

・Focuses of energy policies
・Agencies assigned to the energy sector
・Energy efficiency and conservation measures
The focuses of Myanmar’s energy policy are on energy independence, utilization of new
and renewable energies, promotion of energy efficiency and conservation, andpromotion of alternative fuel for domestic use.
The following agencies are assigned to the energy sector:
・Oil and gas – Ministry of Energy (focal point of the energy sector)
・Electricity (hydropower) – Ministry of Energy (1)・Electricity (thermal and transmission) – Ministry of Energy (2)・Coal - Ministry of Mines
・Biomass - Ministry of Forestry, Ministry of Agriculture and Irrigation, and Ministry of
Science and technology
・Renewable energy - Ministry of Science and technology
・Nuclear energy - Ministry of Science and technology
・Past energy efficiency and conservation activities
・UNDP/ADB Project (1991, energy audit etc.)
・UNESCAP Seminar (three sessions, energy efficiency and conservation)
・PROMEEC Project (several times, training, audit, seminar)
3) Japan’s Energy Conservation Policy & Measures for Industrial Sector
Mr. Taichiro Kawase of the Energy Conservation Center, Japan explained Japan’s
energy efficiency and conservation policies and policies in the industry sector based on
the following five perspectives:・ Changes in the basic unit of energy in individual industries in Japan・ Legal measures and energy efficiency and conservation measures in the industry
sector of Japan・ Voluntary activities of private companies and organizations in the industry sector

II-19

・ Roles of the Energy Conservation Center and activity overview
Session 2: EE&C Best Practices in Industries
4) EE&C Practices of Steel/Cement Companies and Energy Labeling in the Philippines
Mr. Marlon Domingo of Department of Energy, the Philippines reported energy
conservation audits that Department of Energy is implementing and energy efficiency
and conservation measures implemented in steel factories and cement factories in thePhilippines.
The Philippines has five electric furnace manufacturers that manufacture billets.
Billets are processed into bar steels, wires, and other forms in a metal roller. Mainenergy facilities in a bar steel factory include walking bean furnace, waste heatrecuperator, tandem metal roller, pneumatic system, and cooling water system. The
following energy efficiency and conservation measures were implemented in thewalking beam furnace.

・ Replacement or alteration of waste heat recuperator
・ Reduction of energy use during non-production periods
・ Additional lining of ceramic fiber in furnace walls
・ Strengthened management of cooling water for furnaces (installation of a flow
meter)
・ Avoidance of simultaneous launching of AC motors
・ Use of transparent resin roofing for the roofs of factories and storages (to use
daylight)
The Philippines has 15 cement factories, including small factories that produce 0.1
million tons a year and large ones that produce 0.5 million tons a year. Many of the
manufacturing processes employ dry method, but semi-dry processes still remain insome processes. Major energy efficiency and conservation measures implemented so far
are as follows:・Renovation of a semi-dry kiln into dry kiln
・Improvement of capacity through additional installation of precalciners
・Improvement of capacity through the renovation of a clinker cooler・Install a high-efficiency fan into a clinker cooler・Installation of a five-step NSP kiln
・Employment of vertical roller mill

II-20

・Conversion from damper control of different types of fans into variable speed control
・Use of rice husk fuel・Installation of an online O 2 analyzer to monitor air leak from a calciner
・Improvement of a process control system
The employment of waste heat recovery and power generation using the waste gas fromthe clinker cooler or suspension pre-heater is being considered.
5) Energy Efficiency & Conservation in Food Factory in Malaysia
Mr. Zuri Hamidon of PTM Malaysia Energy Center reported the case of a food factorythat produces 22,500 cans of food a day. This factory pre-processes frozen seafood in
the process of thawing, simmering, and frying and then packs them in cans withseasoning manufactured in a separate line. The cans then go through the process of
extracting air from cans, seaming, sterilizing, labeling, and packaging. They are shipped
after this process. We conducted an energy audit and suggested the following:
・ The setup temperature of the freezer storage was determined with the expectation of
three to six months of storage, but the setup temperature was increased because theactual storage period is two weeks at the most.
・ The live steam produced in the retort sterilization facility was used as deaerated
steam in the deaerating boiler.
・ Install a deaerator and collect condensation and excessive steam.
・ Enclosures were installed throughout the entire simmering facility and reduced
steam loss.
・ The steam produced from the air extraction facility which used to release theexhaust is effectively used in the simmering facility and frying facility.
・ The simmering facility, frying facility, and steam pipes were insulated.
・ Simplified water treatment system was installed, and treated water was used forwashing, cooling cans, and cleaning.
・ After checking the required pressure at the demand side, the compressed air supply
pressure was lowered to 6 bar (g).
・ Since the power factor was low at 0.74, a power factor compensation capacitor was
installed.
6) Best Practices in the Japanese Automobile Industry (heat energy)
Mr. Hidetaka Urakubo of the Energy Conservation Center, Japan, reported two energy

II-21

efficiency and conservation examples in Japan’s automobile factories. The first case isabout furnaces for carburizing differential gears. Measures, including improvement in
the process of loading workpieces into trays and uniform supply of carburizing gas,
reduced the work treatment time and successfully achieved about a 15% energy
conservation effect. The truck factory in Myanmar where an OJT audit was conductedduring this visit also has a batch-style carburizing furnace. Thus, the factory probably
found this report quite helpful.
The second case is about management improvement in the steam traps. Although this is
not a case of an automobile factory, the report is perhaps useful because there are manyfactories with boilers in Myanmar.
7) Best Practices in Japan (electrical energy)
Mr. Kokichi Takeda of the Energy Conservation Center, Japan, reported the following
cases concerning energy efficiency and conservation measures of electric energy:
・ Measures involving conveyance systems, hydraulic system of carburizing furnaces,
and main shaft motors in engine factories.
・ Improvement in the operation of power receiving systems (such as lowering supply
voltage during non-manufacturing periods and reducing standby power during
weekends and holidays)
・ Employ inverter operation in the hydraulic pumps of carburizing systems.
・ Employ an inverter operation in the air supply fans and exhaust fans of air
conditioners of paint booths.
・ Employ an inverter-operated pneumatic system in the compressed air system andcontrol the number of units.
・ Energy efficiency and conservation measures for compressed air systems(accumulation of low-cost measures)
・ Energy efficiency and conservation measures for air conditioners (automatic controlof freezer operation, damper control etc.)
・ Energy efficiency and conservation measures for lighting devices (employment ofhigh-efficiency fluorescent lamps etc.)
These cases involve essential facilities and devices for automobile factories and areapplicable to automobile factories in Myanmar.

II-228) Results of OJT Audit in Myanmar Automobile Factory (1)Mr. Thaw Oo of the Ministry of Industry (2) who participated in the local team reported
about the outcomes of the OJT audit conducted in the Myanmar Automobile Factory (1).
See Attachment II-2 for details. Major parts of the suggested measures include energy
efficiency and conservation measures for metal furnaces and compressed air systems.
There were also suggestions about the maintenance of old facilities and energy
management systems; they were all useful to engineers at the national factories who
attended this seminar.
Session 3: Workshop on Energy Management Tools
9) Heat balance of fired heater
Mr. Hidetaka Urakubo of the Energy Conservation Center, Japan, gave a lecture onheat balance. This lecture aimed to build fundamental knowledge for the full use ofenergy management tools. Industrial furnace used in many factories was selected as an
example to demonstrate heat balance. The time allowed for this lecture was short, andonly a lecture was given in this session, but we will make improvements so that acalculation exercise can be included in the future. Heat balance calculation homework
was assigned as a new attempt. While the submission of the homework was notmandatory, the procedure to submit answers to ECCJ and how the ECCJ experts would
correct and return them were presented.
10) Updating of TDs, IHDBs, EMHBs and Cyber Search
Mr. Bernard of the ASEAN Centre for Energy (ACE) explained the purposes,
production method, format, and entry example of the four types of ASEAN energy
management tools: the technical directory, in-house database, energy management
handbook, and cyber search system.
11) IHDB for automobile industry and textile industry
Mr. Taichiro Kawase of the Energy Conservation Center (ECCJ) , Japan, provided an
overview and instructions on how to fill out the entry format for the in-house database(IHDB) for automobile factories and fiber factories. The characteristic feature of IHDB

II-23

as an energy management assistance tool to be used in factories is that it includes
manufacturing data, energy data, and equipment data in addition to important
operational parameters and energy efficiency indices. These features supply reference
information to divisions within a factory for efficient energy operation. Based on theperspective of promulgating them to the ASEAN countries, we requested theparticipants to actively employ them in automobile factories, fiber factories, foodfactories, and cement factories in Myanmar. The following procedures were presented
for their employment:
a. Select participating factories in each industry (about two companies in one
industry)b. Produce an organization chart for the test employment of IHDB (clarification ofrole assignment)c. Determine data to be entered in the IHDB (be careful not to include too much data)d. Start data collection and accumulation (each participating factory is to individually
implement this procedure)e. Progress management of test employment (focal point is to implement thisprocedure)f. Follow-up (report at the next inception workshop)
g. Create a roadmap (create a mid- to long-term plan with ACE)
12) Myanmar primary energy resources, activities of EE&C and electrification of ruralvillage with RE
Mr. Myint Kyaw of the Myanmar Engineering Society (MES, under the jurisdiction of
the Department of Energy) gave a presentation on aspects, including the recent supply
and demand for primary energy in Myanmar, the development of renewable energy(RE), energy efficiency and conservation measures, and efforts to distribute electricity
to agricultural and village areas.
Primary energy supply/demand data [2008, KTOE]
SupplyCrude oil etc.
1,789
DemandNatural gas
1,721
Coal
558
Hydro
1,541
Biomass
9,280

II-24

14,889

The supply of RE in May 2009 (MW)
Equipment capacity HydroWind (25 units)
Solar (82 units)
Bio gasBiomass gasification (428 unit, rice husk etc.)

1,321
0.52
0.25
1.6
21.50

(4) Remarks
1) More than 50 participants attended this session. The participants included the viceminister of the Ministry of Industry (2), Ministry of Energy (focal point), Ministry of
Science and Technology (university professor), engineers from national factories under
the jurisdictions of the Ministry of Industry (1) and Ministry of Industry (2), andengineers from the Ministry of Agriculture and Irrigation and engineers from the
Myanmar Engineering Society.
2) Engineers and consultants from these ministries talked to us about various topics.
According to the presentation of the Ministry of Energy, Japan’s PROMEEC is the only
assistance from a foreign donor in the field of energy efficiency and conservation. We
viewed the expectations of the participants toward this project as opportunities to gain
information from foreign countries.
3) The staff efficiently operated this session including the preparation of the site,
distributing documents, and arranging lunch services. We would like to express our
gratitude toward Mr. San Lynn, the industry coordinator of PROMEEC and government
officials of Myanmar.
END

II-25

Myanmar Automobile Factory (1) OJT audit

Mr. Thaw Da Pu (factory manager) front, center
Mr. San Lynn (PROMEEC industry coordinator) front, the fourth from the left
Furnace in the spring factory

II-26

LED Visiting Guidance
Mr. San Lynn (front, fifth from the left)
Mr. Myo Myint (former president, front, third from the left)

Visiting Guidance at Nibban
Mr. San Lynn (eights from the left)
Mr. Aye Ko (assist. manager of manufacturing,
13th from the left)

II-27

Group photo of Seminar Workshop

Mr. Kyaw Swa Khine(Vice minister of
Ministry of Industry (2))

Mr. Soe Aung (focal point)
Mr. San Lynn (PROMEC industry coordinator)

Attachment II
1. Recommendations for the Myanmar Automobile Factory (1)2. Results of OJT audit presented by Mr. Thaw Oo
3. Examination of energy conservation and thermal aspects of efficiency measures
4. Examination of energy efficiency and conservation in the field of electricity

II-28

III. Brunei Darussalam
1. Activity Overview
In the International Infrastructure Development Project for Efficient Use of Energy,
which is the project contracted by METI, officials visited Brunei from October 19 to
October 27 to implement the Energy efficiency and conservation Promotion Project for
Major Industries in ASEAN Countries. They implemented OJT audits at an oil refinery,follow-up guidance at a cement factory, and seminar workshop to exchange information
with the people in industries in Brunei and officials of ASEAN countries. A total of 25
people participated in OJT audits, including delegates from the Prime Minister’s Office(PMO), Department of Electrical Services (DES), Institut Teknologi Brunei (ITB),
Brunei Shell Petroleum (BSP, factory where the audit was conducted), Brunei LNG(BLNG), and five engineers of ECCJ/ACE. A seminar workshop was held in the Kiulap
Plaza Hotel and successfully conducted with 41 participants, many of whom weregovernment officials. The delegates visited Universiti Brunei Darussalam (UBD) andInstitut Teknologi Brunei (ITB) in between local activities and exchanged information
about training on factory audit technologies.
Delegates: Mr. Taichiro Kawase, Mr. Kokichi Takeda, and Mr. Hidetaka Urakubo,
Technical Experts of Technology Cooperation Department, ECCJ
Activity schedule: Oct. 19 – Oct. 22 OJT audits (Brunei Shell Petroleum factory(abbreviation: BSP))
Oct. 24 seminar workshop (at Kiulap Plaza Hotel)
Oct. 26-27 Follow-up guidance (Butra Heidelberg Cement (abbreviation: BHC))
Oct. 27 Wrap-up meeting (at PMO)
2. OJT audit (BSP oil refinery)(1) Participants: 25 people
PMO, Energy Division: Mr. Ahmad Mohammad (Head of EE&C, focal point)
Mr. Lim Cheng Guan (Head of N&RE), Mr. Hakeem Basir, Ms. Dina, and others
PMO, Dept of Electric Service: Mr. Muhud Amir (electrical engineer), and others
Institut Teknologi Brunei: Mr. Kamarulzamaad (Assistant Estate Manager)
Mr. Hairol (mechanical engineer), Mr. Ahmad Syamaizar (mechanical engineer),-III-1

Mr. Lim Pang Jen
Brunei Shell Petroleum: Mr. Yahya Mohammad (Refinery Manager)
Brunei LNG: Engineer: Mr. Azian (business analyst), Mr. Hussin Elim (Operations
Manager), Ms. Nurul Hassanol (technologist), and others
ACE 2 officials (Ms. Maureen Balamiento, Mr. Ivan Ismed)
ECCJ 3 officials (Mr. Urakubo, Mr. Takeda, Mr. Kawase)(2) Factory overview
Establishment: This factory started its operation in 1983 as an oil refinery of theRoyal Dutch Shell Group.
Location: Located 80 km west of the capital city, Bandar Seri Begawan.
Crude oil: Oil is supplied from oil fields in two areas in the east and the west off thecoast of Brunei. Some oil is also produced on land in the Seria area.
Major facilities: Crude oil distillation unit (CDU)/12,000 BPSD, Naphtha reformer/5,000 BPSD
Technological support: Shell Headquarters (Shell Global Service)
Products: Gasoline, jet fuel, kerosene, diesel, heavy oil, Products other than heavy oil
are shipped for domestic consumption
Employees: 84, Shell LNG is in charge of driving(3) Audit overview
1) Participants of the auditing team
A total of 25 people participated in the audit from the Brunei side, including the Prime
Minister’s Office (PMO), Department of Electrical Services (DES), Institut Teknologi
Brunei(ITB), Brunei LNG (BLNG), Brunei Shell Petroleum (BSP, factory where theaudit was conducted), and five engineers from ECCJ/ACE. Mr. Hakeem Basir of PMO
was assigned as the Brunei team leader. Since the oil refining process is complicatedand advanced, the OJT audit was conducted in a style in which ECCJ experts conducted
the audit and explained the main points to the Brunei team when necessary.
2) Confirmation of the purpose of PROMEEC project
We confirmed that the purpose of this project is to nurture people who are involved in
auditing technologies of industrial facilities rather than a technological service that
addresses specific problems. We also confirmed that the target facilities of energy-III-2

efficiency and conservation audit are limited to utility systems and peripheral facilities
and equipment of manufacturing lines, for example heat recovery systems, dryers, andfreezers, whereas the core components of manufacturing processes are not included.
3) Requests of the factory to the auditing teamThe refinery manager requested guidance on three categories (improvement of oilprocessing capacity, securing reformer field, and efficiency improvement of oil refining
operation). All these categories are either production capacity improvement of thefactory or activities to reduce production costs. We explained that they were not relevant
to energy conservation or efficiency and gained the understanding of the factory side.
4) Procedure of the audit
・Interview with the factory side
About the overview of the facilities in the factory, status of energy efficiency andconservation activities, safety assurance during audit, preparation of measuring
instruments, etc.
・Confirmation of the responses in the previously sent survey sheet
・Introduction of energy efficiency and conservation activities in oil refineries in Japan・On-site inspection with engineers and discussion when necessary
・Primary report of auditing findings (to factory executives on the final day of the audit)
・Secondary report (Japanese language report is issued in March next year)
5) Problems identified in the on-site inspection
An on-site inspection as conducted in a walkthrough style under the initiatives of ECCJ
experts. The inspection first confirmed the process flow, collected historical data fromthe DCS (process controlling computer), and interviewed operators in the control room.
Then, they inspected individual facilities at actual worksites. The team only inspected
the periphery of the CDU furnace, since it was in the extremely busy period before theregular inspection, which started the following week. It was also impossible to obtain
the regular operation data on the reformer because the audit was on the same day as
catalyst regeneration. Thus, the inspection only included simple appearance inspectionsof furnace and hot oils.
(a) Maintenance of CDU furnaceThis is a 36-year-old cylindrical furnace. Visible deterioration of the facility was-III-3

beginning to appear. For example, the tube of the air pre-heater was perforated and air
was leaking; thus, the blank was used to separate the cool airside of the air pre-heater.
The tube will be replaced in this regular maintenance. Findings of the inspection that
focused on maintenance are as follows.
・There was damage to the wire that operates the damper from the ground. Thus, thedamper was left fully opened, and it was impossible to control the pressure (draft)inside the furnace. With this condition, the combustion chamber pressure was perhaps
considerably lower than the atmospheric pressure, and a large amount of air was
sucked in.
・In addition, the draft gauge was not functioning due to some problems, and the draft
was unreadable. Although it does not impede operation, the furnace continues towaste energy. Urgent repair is required. An emergency measure is to install ahand-made inclined manometer. We recommend the factory look into it.
・According to the DCS data, there was an abnormality in the temperature of waste gasthat flows in the air heater part (AH part). That is, while the temperature was 360 °C
in the upstream section of the AH part, the temperature was 326 °C in the downstream
section. Since the cool air is blocked in the AH part as mentioned above, it is certainthat the temperature difference did not originate in the AH part. Some kind of air leak
may be occurring in the AH part.
・Possible causes of air leaks include (1) damage to the joint between the AH part andbreeching part or between the AH part and convention part, (2) damage to the blankthat separates the AH part, and (3) damage to the joint at the cool air header and themain unit of the AH. The factory should immediately inspect these parts and repair
any damage. The energy conservation effect from blocking air leaks is about 2%.
・If an inspection identified the possible cause (1) as the cause of air leaks, it isnecessary to explore why the joints in the AH parts are damaged. The AH part of thisfurnace employs a so-called hot wall system, meaning that insulation is placed outsideof the furnace. Also, the upstream convection and downstream breeching part uses acold wall, meaning the insulation is placed inside the furnace. Therefore, the structureof this furnace is vulnerable to thermal stress from the difference in thermal expansion
at the joint parts. This is the most likely the cause of the damage.
・As a cause of the perforation in the tube, the factory should investigate the possibilityof sulfuric acid dew point corrosion, which is caused by the sulfur in the fuel. The
method to estimate the sulfuric acid dew point is attached. We encourage the factory
to refer to it. The method to estimate a dew point is provided in the correlation chart-III-4

of the amount of sulfur in fuel oil (percentage of the amount) and the dew point ofsulfuric acid. Thus, when gas is burned as fuel, the factory must be sure to convert itto the amount of sulfur in the fuel oil conversion.
・Based on the above examinations, if the perforation is found to be caused by sulfuric
acid corrosion, tubes will be perforated again even when replaced by a new one. In
such cases, the surface temperature of the tube needs to be increased above the dew
point of sulfuric acid. API ST 560 provides three examples of measures to deal withthis problem. See Attachment III-2 for details.
(b) Quality management of CDU intermediate products
Quality specifications are specifically designated to individual oil products. JIS
standards are used in Japan. In order to prevent the production of non-standard products,
oil refineries operate under stricter quality regulations than standards; in other words,
they operate more safely than designated standards. Moreover, when the operating
conditions become more strenuous to improve quality, energy consumption increases
and shortens the service life of the facilities. The energy consumption increases
exponentially rather than proportionally.
The key to energy efficiency and conservation in oil refineries is to avoid producing
products with excessively high quality. As a prerequisite, accurate identification of therelationship between operation conditions and quality is necessary. DCS has been
installed in BSP, and the past data are accumulated as DCS archives. Quality data tested
in a laboratory are also accumulated. We attempted to investigate the relationshipbetween the flash point of kerosene intermediate products and the consumption of
stripping steam at this point, but we were unable to do so. Thus, as shown in theattachment, we gave a lecture about increased energy use due to the pursuit ofexcessively high quality and a management method to avoid excessive quality. This
management method is applicable to many other quality specifications, such as octane
number, the first drop point in distillation, the final point of distillation, RVP vapor
pressure, and the cetane number.
(c) Energy efficiency and conservation audit of electric energy
Energy efficiency and conservation measures in oil refineries mainly target steam powersystems and process motors. They specifically target cases in which expectations in the-III-5

design and actual operation conditions differ. The largest motor in this oil refinery is therecycle gas compressor of the reformer. Since the audit happened to be conductedduring catalyst regeneration, we were unable to verify the conditions of normal
operation of this compressor. Although we might be able to check the conditions using
DCS data, we were unable to do so due to the time schedule.
Instead, we collected data on the combustion air fan for the CDU furnace that was inoperation and the data around the periphery of the SCOT crude oil transporting pump.
We collected data on the pressures and motor currents at the front and back of the fan
and pump and observed the pipe resistance (especially the aperture of the damper,
control valve and pressure loss at the filer). Findings of data analysis are described
below. See Attachment III-4 for details. The minute aspects that we noticed in thisfactory include the fact that the outdoor lights of the plant were turned on even during
daytime, and the lights in the pump motor switch room were turned on even when no
one was in the room. These lights should be turned off unless there is a safety reason toleave them on.
(c)-1 Combustion air fan for the CDU furnace
The fan we inspected in this visit is currently operating by narrowing the damper on thesuction side; thus, there is a room to explore ways to improve energy efficiency. Using
measurement data and assumptions, we calculated the amount of energy to beconserved.
Items to be inspected
and examined
Facility
specifications
Measurement of thecurrent condition
Energy conservation
perspective
Energy conservation
method (example)

Outcomes of inspection measurement and calculated amount ofenergy to be conserved
Specifications of the fan: Unknown, Motor: 11 kW
Electricity input: 6.23 kW (shaft power conversion 5.6 kW),aperture of the suction damper: 75%
Energy conservation from collecting the pressure loss at thesuction damper
Reduction of rotation speed using an inverter-III-6

Mainassumption orprecondition
Calculation outcomesCalculation
outcomeAmount ofelectricity
conservation

Fan shaft power curve: assume 30% of the rating during shut-off
operation and 80% during rated wind volume operation.
Resistance curve: Hypothesize that the curve goes through theorigin and intercepts with the performance curve during rated
wind volume operation.
(Required pressure in front of the burner and furnace pressure
are unknown. There is no performance curve, either. Since thepurpose is to show a calculation example, the fixed pressure isomitted in this calculation to keep it simple.)
Margin of rotation speed reduction in the current wind volume:
48% of the rated rotation speed.
Shaft power during reduced rotation speed: 0.97 kW (input
electricity conversion 1.62 kW)
4.6 kW (this is simply a reference value, since the fixed pressure
is not included in this calculation.)(c)-2 SCOT crude oil transporting pump
The verification of the present electric current indicated that the load factor of the motor
was low (22% to 47%), and the load factor for the power required for the pumpspecification was also low (51% to 69%). Identification of the cause of the low loadfactor will be left to the future investigations, and energy efficiency and conservation
measures are decided depending on the causes. Efficiency improvement from reducing
the capacity of the pump is calculated below.
Items to be inspected
and examined
Facility
specifications
Measurement of thecurrent condition
Energy conservation
method (cause –measure)Energy conservation
method (example)

Outcomes of inspection measurement and calculated amount ofenergy to be conserved
Pump: 3 units, the specifications of the pumps are described in
the context. Motor: 30 kW
Input electricity: 9.2, 7.8, 15.7 kW (shaft power conversion:
7.8, 6.6, 14.1 kW)(i) Increased pipe pressure loss from clogged pipe: Clean thepipe(ii) Lowered pump performance: Dissemble the pump for
inspection and maintenance or replace the pump(iii) Mistake in selecting pump specifications: Reduce thepump capacity(iv) Flow rate reduction control: Reduce pump rotation speed
Efficiency improvement by reducing the pump capacity-III-7

Calculation outcomesMain
assumption orprecondition
Estimate

Pump flow rate/shaft power property: Assume that 100 % flowrate operation is the calculation shaft power (100%), andhypothesize that the shaft power during shut-down operation isin the linear equation of 40% of it.
Improved pump efficiency: Pump #1 0.4→0.83, pump #2
0.22→0.83, and pump #3 0.55→0.83. The motor efficiency
also improves.
#1: 5.1, #2: 5.9, and #3: 5.6 kW (55, 76, and 36% decrease
from the current operation, respectively)

Amount ofelectricity
conservation
In addition, during the process of the examination, we identified that excessive values
were selected in the rated specifications (reasonable values are 15 or 22 kW) for thepump motors #1 and #2 and in the discharge pressure for the pump #3 were excessive.
6) Introduction of successful energy efficiency and conservation measures in Japanese
oil refineries

Many energy efficiency and conservation measures in oil refineries are reported every
year in the National Convention on Excellent Energy Conservation Efforts. Petrotech,
the monthly magazine published by the Japan Petroleum Institute also introduces manyefforts. We specifically provided energy efficiency and conservation measures involving
CDU and reformers that BSP has. See Attachment III-3 for details.
7) Preparation of measuring instruments
The factory provided a clamp style power meter as a measuring instrument. ECCJ also
provided a contact thermometer. We utilized all instruments and successfully obtained asubstantial amount of data. We used the thermometer to measure the wall temperature of
the furnace. The power meter is an important measuring instrument to measure motor
loads of fan pumps in factories of textiles and food. However, since the inspection wasin an oil refinery, we did not use the power meter in this inspection to eliminate any riskof accident. Highly recommended measuring instruments in ordinary factories include
power monitor, thermometer and oxygen meter to analyze combustion gas and the hot
wire anemometer or vane anemometer to measure the amount of air that goes through afan. That is because these are essential measuring instruments to analyze combustion
management and inverter control, which is frequently implemented in energy efficiency
and conservation efforts.

-III-8

8) Data analysis and brief report
We reported problems with clarified examination outcomes that we obtained so far fromthe factory audit as a flash report on the final day of the audit to factory executives andthe auditing team. We will bring the data back to Japan, which will be analyzed in detailand summarized in the final report (in Japanese) in March of next year. See Attachment
III-1 for details of the flash report. ECCJ experts presented the flash report in theseminar workshop.
9) Status of energy management
This oil refinery has implemented little energy management so to speak when we visited.
Estimating from the interview, the operators are running the factory from the
manufacturing perspectives rather than energy conservation perspectives. Thus, we
provided the following advice:
・Establish an energy management system
Organize an energy efficiency and conservation promotion committee, which
requires strong support from factory executives.
Appoint energy leaders to individual facilities.
Promote employment education, especially worker education. Request competentauthorities to provide advice.

・Facility maintenanceFurther improve management with special attention to prolong service lives ofdevices, such as furnace, pneumatic system, and hydraulic machines.
・Measurement and records
Conduct monitoring and recording of energy consumption data. Make themaximum use of DCS data for it.
(4) Remarks
1) Unfortunately, the factory has made little progress in the status of energy efficiency
and conservation. In particular, the concept of energy management is yet to be
promulgated. Oil refineries usually implement sufficient management, but we foundthere was still large room for improvement in this oil refinery. We pointed out many
no-cost or low-cost energy efficiency and conservation measures in this OJT audit. We
encourage the factory to immediately implement them.

-III-9

2) Although this oil refinery has accumulated much DCS data, they do not seem to be
utilizing the data for energy efficiency and conservation. We fully understand that thefactory only has 84 employees, and engineers are busy with manufacturing. People in
the factory seemed too busy to develop knowledge on energy efficiency andconservation. BSP is a member of the Shell Group and can receive technical services
from Shell headquarters. We recommended that they actively receive assistance from
Shell headquarters. The oil refinery manager was nodding to this advice.
3) Mr. Ahmad Mohamad of the PROMEEC focal point and the staff of Energy Division,
Prime Minister’s Office, did a great job preparing for our visit. Thanks to their efforts,
we were able to collect much data, although the factory was busy immediately before
the regular repair. Many engineers from the Energy Division, Prime Minister’s Office,and Institut Teknologi Brunei joined the local team. Although ECCJ experts took
initiatives in the audit, the participants were at least able to check the auditing
procedures that they had learned in the lecture. Also, we suppose that they efficiently
learned the meaning of energy management and no-cost or low-cost energy efficiency
and conservation measures as they looked at actual examples.

3. Visiting Guidance (the Butra Heidelberg Cement (BHC))(1) Circumstances
We conducted the OJT audit in 2000 and the first follow-up investigation in 2005 in
BHC. This is the second follow-up investigation.
(2) Date, time, and participants
October 26, at BHC
Sixteen participants (eleven from the Brunei side, including four from PMO, five from
ITB, and two from BHC)
(3) BHC
1) Overview
BHC is the 100% subsidiary company of Heidelberg in Germany, the largest cement
manufacturing company in the world. It started operation in 1996. It imports clinker and-III-10secondary materials, manufactures Portland cement in the crusher plant, and ship
products mainly to domestic customers. The manufacturing capacity is 500,000 tons ayear. However, actual manufacturing in recent years has been less than 200,000 tons a
year; the company has been experiencing a low operation rate since the export to
Malaysia stopped. The number of employees is fewer than 60 people, and two-thirds ofthem are Bruneian. The Technology Center of Heidelberg in Singapore provides
technological assistance to BHC. The factory is located adjacent to port facilities in the
Muara area, the east part of Bandar Seri Begawan.
2) Manufacturing process
Receive raw materials (Jetty) → belt conveyor → material silo (clinker, plaster) →weigh feeder → ball mill → classifier → product silo (cement) → shipping (bulk, large
sack, small sack)3) Hearing
・Mr. Thontowi Djauhari, the factory manager, explained the activities they had
implemented since the last follow-up investigation. We then conducted hearing aninterview regarding the responses from BHC on the survey sheet that we had sent
before our visit. The implementation status of the guidance that we provided before is
as follows:
・BHC added a dryer to the pneumatic facility and increased the aridity of compressed
air. As a result, the clogging of the filter cloth in the bag filter was reduced, which
drastically decreased the amount of compressed air used for hammering.
・In order to improve the crushing efficiency of the ball mill, BHC installed a cement
grinding aid loading machine. They are currently conducting tests to obtain optimal
amount to be added. At this point, they are feeling the effects of adding cement
grinding aid.
・Replacing the power receiving transformer with a smaller one improved the demand
factor from 64% to 84%. They asked us to teach them methods to evaluate the effects
of improvement.
・ BHC installed a power factor compensation capacitor in the power receiving
transformer, which improved the power factor from 0.88 to 0.95. They asked us toteach them methods to calculate the effects of energy conservation from power factor
compensation.
・BHC is currently using a van compressor (rotary vane type) to transport crushed-III-11cement to the product silo, but its energy efficiency is low (2.5 kWh/t-cement). They
wish to replace this system with a mechanical type (0.5-1.0 kWh/t-cement), but theysaid they cannot maintain profitability from this change. We recommended that they
ask the Embassy of Japan in Brunei if they can use JBIC or Japan’s other low-interest
financing systems.
・BHC has not utilized the operation data accumulated in DCS. They only have two
so-called engineers including the factory manager, and they are too busy to deal withthe data in DCS.
・They have not worked on repairing the leakage of compressed air. They asked us toteach them how to identify the amount of leakage.
4) Outcomes of walkthrough and details of guidance・Technological aspects of energy management were implemented under the initiativesof the factory manager who is also an engineer as described above; the management
was well done. Meanwhile, we found some improvements to be made in regards tothe participation of employees in energy efficiency and conservation activities. For
the time being, we recommended that they start with (1) obtaining the support of the
PMO and implementing education to promulgate energy conservation, (2) utilizing
DCS data, printing out basic unit and energy indices, and having employees monitor
them, and (3) posting campaign posters to eliminate wasteful energy use, such as
diligent practice to turn off lights.
・We found the possibility of energy conservation in the low-load fan as an energy
conservation measure which has not been identified in the past follow-ups. Candidate
machines include bag filter fans and dust collection fans. We collected the data on thedamper aperture, the rated current of the motor, and the actual current during
operation.
・Two cylindrical cooling towers are installed to supply cold water for machinery. We
measured the temperatures at the entrance/exit of cold water, as well as the dry-bulb
temperature and wet-bulb temperature of the ambient air. As a result, we found a
possibility that the amount of cool water circulation was larger than the amountrequired in the process.
・We provided simple explanations on methods to measure compressed air leakage,
methods to calculate energy conservation effects from power factor compensation,and methods to calculate the effect of energy conservation from reducing the size oftransformers.

-III-12(4) Remarks
・BHC is a small company with the operation rate of about 40%, and the number of
employees is only about 60 people. In this company, the factory manager, who is also
an engineer, was making great efforts and implementing many energy conservation
measures despite the small size of the factory.
・Measures that succeeded in Japan tend to be associated with long payback time anddifficult to implement in this factory due to the small size. Assistance, such as JBIC’s
low-interest financial assistance, are necessary for such factories.
・The measures implemented in BHC are worth registering in the technical directory(TD), the energy management tool. Examples of such measures include the reduced
size of the transformer and the installation of a compressed air dryer. We requested
ACE and focal point that they register them in TD.
・From the perspective of technological measures, the efforts of BHC can become amodel of energy efficiency and conservation activities for small-scale factories. We
see the possibility of applying for ASEAN Energy Awards. Nonetheless, it is desirable
to apply after strengthening the efforts in energy management aspects. Examples ofdesirable measures include participations of employees in energy conservation
activities and energy data monitoring.

-III-13

4. Seminar workshop(1) Date, time, and location
October 24, 2009 08:30-16:30
Kiulap Plaza Hotel, Bandar Seri Begawan, Brunei Darussalam(2) Participants: 41 people
Prime Minister’s Office :Mr. Ahmad Mohamad, Energy Division, Head of EE&C unit (Focal Point)
Mr. Lim Cheng Guan, Energy Division, Head of N&R Energy unit
Dept of Electric Power Service : Mr. Amir (electrical engineer) and others
Institut Teknologi Brunei : Mr. Kamarulzamaad(Assistant Estate Manager)
Mr. Hairol (mechanical engineer), Mr. Ahmad Syamaizar (mechanical engineer)
Brunei LNG : Mr. Azian (business analyst)
Brunei Shell Petroleum : Mr. Yahya Mohammad (Refinery Manager)
Mr. Hussin Elim (Operation Manager)
Ms. Nurul Hassanol (technologist) and others
Butra Heidelberg Cement, 2 people: Mr.
ASEAN (speaker): 2 people
Mr. Jun Ronaldo, DOE, The Philippines
Mr. Than Tun Aung, Deputy Director, Myanmar Engineering Society
ACE: 2 people
Ms. Maureen Balamiento, Mr. Ivan Ismed
ECCJ: 3 people
Mr. Urakubo, Mr. Takeda, Mr. Kawase(3) Presentation overview
Session 1: Policy and Initiatives on EE&C in Major Industries
1) Updates of ASEAN Energy Efficiency (EE&C) Activities
Mr. Ivan Ismed explained ACE’s activity overview based on the following contents.
・ APAEC Program 2004-2009
・ ASEAN-Japan cooperation (SOME-METI, PROMEEC, and multi-country training)-III-14

・ ASEAN Best Practice Competition (energy conservation division)
・ ASEAN + 3 Energy efficiency and conservation/Renewable Energy Forum・ Other cooperative programs with EAS-ECTF, UNEP, ASEAN Foundation, ADB,
and CDCOf these topics, he explained the APAEC Program 2004-2009 in detail: this program
includes six program areas, and energy efficiency and conservation are implemented inprogram area 4; the purpose is to strengthen the cooperation of the ASEAN region
through the capability establishment of energy efficiency and conservation
organizations, the involvement of the private sector, and the expansion of the market forenergy saving devices; and this program intends to implement activities in six categories
in order to achieve its goals.
(Information sharing and networking, ASEAN energy standard and labeling,
participation of the private sector, capability building, training of ESCO companies, andenergy efficiency and conservation in the transport sector)
As main activities in the program area 4, she then introduced PROMEEC activities
based on circumstances of leading to Phase 1, Phase 2, and Phase 3, as well as outcomes
and future perspectives.
2) EE&C Activities in Brunei Darussalam
Mr. Ahmad Mohamad of the PMO Energy Division explained the organizations
involved in energy efficiency and conservation in Brunei and recent energy efficiency
and conservation activities:
・ Division of Energy efficiency and conservation, Department of Energy, Ministry ofEnergy is in charge of energy efficiency and conservation.
・ Three E’s (Energy security, economic competitiveness, and environmental
protection) as the meaning of energy efficiency and conservation
・ Participation in ASEAN + 6, APEC
・ Establishment of EE&C committee (2007)
・ Improvement of activity and power generation efficiency in the industry sector andenergy management of street lights.
・ Activities in the consumer and commercial sector: time regulations of air
conditioners in the governmental buildings, employment of building energy
conservation standards, promotion of energy efficiency lighting, eco-labeling on
consumer electronics, and promotion of CFL.

-III-15

・ Activities in the transport sector: smart driving, active use of public transportations,and promotion of bicycle use
・ Energy day activities, promulgations
Energy consumption in Brunei is 12% in the industry sector, 52% in the transport sector,
and 36% in the consumer and commercial sector. The ratio of the industry sector is large.
The focus of energy efficiency and conservation activities are on transport andconsumer sectors.
3) Japan’s Energy Conservation Policy & Measures for Industrial Sector
Mr. Taichiro Kawase of the Energy Conservation Center, Japan explained Japan’s
energy efficiency and conservation policies and policies in the industry sector based on
the following five perspectives:・ Changes in the basic unit of energy in individual industries in Japan・ Legal measures and energy efficiency and conservation measures in the industry
sector of Japan・ Spontaneous activities of private companies and organizations in the industry sector(using the oil manufacturing industry as an example)
・ Roles of the Energy Conservation Center and activity overview
・ Introduction of successful cases of PROMEEC industry activities in ASEAN
countries (uing the food industry as an example)
Session 2: EE&C Best Practices in Industries
4) Best Practices for EE&C of Cement and Oil Refining Industries in Myanmar
Mr. Than Tun Aung of Myanmar Engineering Society reported energy efficiency andconservation measures in Myanmar and the outcomes of the energy efficiency andconservation audit in the cement factory and oil refinery.
・Assigned organizations in the energy sector
Oil and gas: Ministry of Energy (PROMEEC focal point)
Electricity: Ministry of Energy (1) (hydropower), Ministry of Energy (2) (thermal andtransmission)
Coal: Ministry of Mines
Biomass: Ministry of Forestry, Ministry of Agriculture and Irrigation-III-16

・Past energy efficiency and conservation activities
UNDP/ADB Project (1991, energy audit, etc.)
UNESCAP Seminar (three sessions, energy efficiency and conservation)
PROMEEC Project (several sessions, audit, seminar)
・Energy efficiency and conservation audit at the cement factory and oil refinery
It was a report on the OJT audit conducted in the PROMEEC Industry Project in 2006.
We estimate that the energy efficiency and conservation measures suggested in the OJT
audit have not been implemented at this point.
5) Best Practices for EE&C of Cement Industry in the Philippines
Mr. Ronaldo Parreno of Department of Energy, the Philippines reported on the energy
efficiency and conservation activities in the Philippines.
・ There are 20 factories in the Philippines, and the manufacturing capacity is 100,000
to 500,000 tons a year. Semi-dry process is employed in some factories, but most ofthem use dry processes. Twelve factories are located in the Luzon area.
・ Major activities that the cement industry has worked on since the 1980s include thefuel conversion from heavy oil to coal and the rehabilitation of financial structuresand facilities.
・Rehabilitation of facilities
Conversion from direct to indirect firing system
Improvement of existing facility (dust recovery)
Rehabilitation of small capacity kilns to achieve rated output
Conversion of semi-dry process to dry process
Installation of pre-calciner to increase plant capacity
Rehabilitation of clinker cooler to increase kiln capacity
・Recently implemented major energy conversion and efficiency measures
Use of vertical roller mill at raw millInstallation of 5-stage new suspension pre-heater (NSP)
Replacement of DC motors by variable speed drive instead of damper control
Gas conditioning tower efficiency improvement
Use of high efficiency fans and motors at clinker cooler
Repair vacuum leaks at kiln hood door
Installation of online oxygen analyzer at calciner exhaust to improve leakmanagement
Rice husk facility to use as alternative fuel resource-III-17

・Energy efficiency and conservation measures that are currently being considered
Waste heat recovery from kiln exhaust gas and clinker cooler exhaust gas
Waste hot gas utilization for dryer
Install VSD motor and controller for Kiln exhaust gas fan
Install high efficiency separator at finishing mill
Replace pre-heater fan to high efficiency fan
6) Best Practices in Japanese Oil Refining Industry
Mr. Taichiro Kawase of the Energy Conservation Center, Japan, reported energy
efficiency and conservation measures in Japan’s oil refineries and two examples.
・ There are several factors that affect energy consumption in the operation of oil
refineries. He explained how these factors affect the operation:
Property of crude oil (light/heavy, high/low sulfur content, etc.)
Product components and required quality (the focus is on gasoline or middle
distillates, and high octane or low octane, etc.)
Facility components (hydro-skimming type, decomposition type, or lubricant
manufacturing, etc.)
Freedom of facility operation (a few large facilities or many small facilities)
Degree of completion in process technology and techniques (latest technologies orold technologies, and abundance in experience, etc.)
Aging of facility performance (deterioration in performance from corrosion andcontamination)
Environmental restrictions
・ Linear programming is employed as the optimal tool for oil refinery operation.
・ Complexity factor method is employed to evaluate energy efficiency of an oil
refinery.
・ Petroleum Industry in Japan is implementing spontaneous action plans on measures
to prevent global warming.
・ Energy conservation measures that have been employed in oil refineries in the past
were categorized and introduced as steps 1, 2, and 3.
・ Two examples of energy conservation measures.
Optimal operation of oil refinery steam power system through a predictive control
method-III-18

Implementation of energy conservation in oil refineries through small-group
activities based on Energy Conservation Act
7) Best Practices in Japan (electrical energy)
Mr. Kokichi Takeda of the Energy Conservation Center, Japan, reported the following
cases in regards to energy efficiency and conservation measures in electric energy:
・Reduction of peak electricity by improving off-site area operation
・Reduction of aeration blower power of activated sludge facilities
・Reduction of the number of pumps in pure water systems in boiler rooms
・Replacing boiler combustion air fan with high-efficiency fans・Reduction of electricity use by employing an infinitely variable capacity control
system in a large reciprocal pneumatic system in desulfurization facilities
8) Results of OJT Audit in Brunei Shell Refinery
Three experts of the Energy Conservation Center reported the outcomes of the OJT
audit conducted in Brunei Shell Petroleum refinery. Major parts of the suggested
measures involve CDU furnace, reformer furnace, and oil transport pump. See
Attachment III-1 for details. The team leader of Brunei was planned to present theoutcomes of the OJT audit in the original plan, but due to the complexity of the process,the presenter was switched to ECCJ experts.
Session 3: Workshop on Energy Management Tools
9) Heat balance of fired heater
Mr. Hidetaka Urakubo of the Energy Conservation Center, Japan, gave a lecture on heatbalance. This lecture aimed to build up fundamental knowledge to make the full use ofenergy management tools. Industrial furnace used in many factories was selected as an
example to demonstrate heat balance. The time allowed for this lecture was short, andonly a lecture was given in this session, but we will make improvements so that acalculation exercise can be included in the future. Heat balance calculation homework
was assigned as a new attempt. While the submission of the homework was notmandatory, the procedure to submit answers to ECCJ and how the ECCJ experts would
correct and return them were presented.

-III-1910) Updating of TDs, IHDBs, EMHBs and Cyber Search
Ms. Maureen Balamiento of ASEAN Centre for Energy (ACE) explained the purposes,
production method, format, and entry example of four types of ASEAN energy
management tools, Technical Directory, In-house Database, Energy Management
Handbook, and Cyber Search System.
11) IHDBs for cement industry and food industry
Mr. Taichiro Kawase of the Energy Conservation Center (ECCJ), Japan explained theoverview and issued instructions on how to fill out the entry format of in-house
database (IHDB) for cement factories and food factories. The characteristic feature of
the IHDB as an energy management assistance tool to be used in factories is that it
includes manufacturing data, energy data, and equipment data in addition to important
operation parameters and energy efficiency indices. These features supply reference
information to divisions within a factory for efficient energy operation. Based on theperspective of promulgating them to the ASEAN countries, we requested theparticipants to actively employ them in cement factories and food factories in Brunei.
Before shifting to full-scale employment of these tools, the following implementation
procedure is presented as a reference to identify problems in the trial employment of
IHDB:
a. Select participating factories in each industry (about two companies in one
industry)b. Produce an organization chart for the test employment of IHDB (clarification ofrole assignment)c. Determine data to be entered in IHDB (be careful not to include too a substantial
amount of data)d. Start data collection and accumulation (each participating factory is to individually
implement this procedure)e. Progress management of test employment (focal point is to implement thisprocedure)f. Follow-up (report in the next inception workshop)
g. Create a roadmap (create a mid- to long-term plan with ACE)

-III-2012) EE&C capacity building activities in Brunei Darussalam
Mr. Ahmad Mohamad of Energy Division, PMO, explained the activities of energy
conservation promulgation and human resources development that the Brunei
government is especially focused on in the recent days. In terms of promulgation, they
are implementing energy education curriculum and extracurricular activities, such as
essays, posters, and skits in elementary, middle, and high schools in cooperation with
the Ministry of Education. Meanwhile, universities are promoting establishment ofenergy clubs as opportunities for students to discuss topics on energy efficiency andconservation.
Concerning human resources development, they have been creating teaching materials
for energy management in partnership with ECCJ and already conducted workshops by
ECCJ experts. Planned teaching materials include ones for managers and ones forengineers. In addition, they held an energy conservation-auditing workshop forbuildings with the cooperation of ITB in this April. They reported that they recognize
the supply of technological knowhow is the future issues to deal with, and they areplanning to conduct training in Japan with the assistance of ECCJ.
(4) Remarks
1) The total of 41 people participated: 34 people from divisions of PMO, twouniversities, Brunei Shell Petroleum, Brunei LNG, BHC Cement, etc.; and sevenengineers from two ASEAN countries, ACE, and ECCJ. Considering the population ofBrunei, the number of participants indicates the strong awareness of the Brunei
government toward energy efficiency and conservation issues.
2) The transportation sector and consumer/commercial sector accounts for 88% of thetotal energy consumption in Brunei. It is natural that the activities of the Brunei
government are focused on buildings and automobiles.
3) Mr. Ahmad Mohamad emphasized that future challenge of human resources
development is the transfer of technological knowhow. The officials of the Brunei
government seem to have good understanding on slogan-like aspects. The problem isthat they are not confident with how they will implement them and succeed in energy
efficiency and conservation. The assistance of ECCJ should reflect this issue.

-III-21

4) Engineers and consultants of PMO talked to us about various topics. According to thepresentation of Mr. Ahmad Mohamad, Japan’s PROMEEC is the only assistance from aforeign donor in the field of energy efficiency and conservation. We felt the
expectations of the participants toward this project as opportunities to gain informationfrom foreign countries, as well as toward ECCJ.
5) The staff efficiently operated this session including the preparation of the site,
distributing documents, and arranging lunch services. We would like to express our
gratitude toward Mr. Ahmad Mohamad of Energy Division, PMO who acted as theindustry coordinator of PROMEEC and government officials of Brunei.
5. Wrap-up meeting(1) Date, time, and location
October 27, 2009, 09:30-12:30, Energy Division, Prime Minister’s Office(2) Participants:
Energy Division, PMO 7 officials
Mr. Alidi Mahmud, Head of Energy Division, PMO
Mr. Ahmad Mohamad, Head of EE&C Unit, Energy Division
Mr. Lim Chen Guan, Head of N&R Energy Unit, Energy Division
Additional 4 staff
ACE/ECCJ: Five officials(3) Discussions and major findings
1) Activity overview reports by BSP and BHC
Presenters reported activity overviews and energy efficiency and conservation
measures implemented in their factories. Mr. Alidi, the head of the Energy Division
asked a question about the possibility of technological assistance to the BSP factory. We
explained that the purpose of PROMEEC is to develop human resources rather thanproviding specific technological services. Mr. Alidi seemed to understand.
2) Timing to issue Quick Report
BSP factory requested that we issue the report quickly. BSP factory said they wish to-III-22utilize the report as a reference to request a budget. We explained the schedule that wewould submit the final report (in Japanese) to METI in March next year. We also
responded that we can provide a simple one- to two-page summary which includes thetitle of energy efficiency and conservation measures, technological details, and degreeof costs by the end of January next year.
3) Training on energy efficiency and conservation technologies
We are planning to add technological training to the curriculum of energy management
training that started this year. Thus, Mr. Alidi suggested that we cooperate with thetraining on auditing technology. We suggested him to consult with the ECCJInternational Cooperation Headquarters on this matter.
4) Promotion of the test implementation of IHDBThe ECCJ side requested that ACE and focal point cooperate with each other andpromote the test employment of IHDB. We specified that the target industries are
cement industry and food industry. We also requested them to report the progress of test
employments in the post-workshop next year.
5) Entry for ASEAN Energy Award in the industry sector
Since we found that BHC’s energy efficiency and conservation activities can be usefulin ASEAN countries, we discussed the possibility of entering their efforts in ASEAN
Energy Award. We notified that winning the award is possible provided that they
achieve employee participation in energy efficiency and conservation measures andconduct energy data monitoring.
END-III-23

OJT audit at Brunei Shell Petroleum

Mr. Ahmad Mohamad (focal point, front and third from the left)

General view of the crude oil topping plant-III-24

Follow-up inspection at Butra Heidelberg Cement

Mr. Thontowi Djauhari (factory manager, 11th from the left)
Mr. Ahmad Mohamad (focal point, 12th from the left)

Group photo at Seminar Workshop

Mr. Ahmad Mohamad (focal point)-III-25

Attachment III
1. Recommendations for Brunei Shell Petroleum
2. Examination of energy efficiency and conservation measures in thermal aspects
3. Examination of energy efficiency and conservation measures in electricity aspects

26

IV. The Philippines
1. Activity Overview
In the International Infrastructure Development Project for Efficient Use of Energy,
which is the project contracted by METI, officials visited the Philippines from October
28 to November 6 to implement the Energy efficiency and conservation Promotion
Project for Major Industries in ASEAN Countries. They implemented OJT audits at a
medical supply factory and seminar workshop to exchange information with the people
in industries in the Philippines and officials of ASEAN countries. Twenty-two people
participated in the OJT audit and visiting guidance, including four from Amherst
Laboratories where the OJT audit was conducted, eleven from the United Laboratories
Group, the cooperate parent of Amherst Laboratories, two from the Department ofEnergy (DOE), and five from ECCJ/ACE. A seminar workshop was successfully held in
the convention hall of the Ministry of Energy with the total of 45 participants, including
many government officials. Presentations on energy efficiency and conservation
examples in four factories including the electric furnace factory in Malaysia and thefiber industry in Indonesia were given in this seminar. We visited ENPAP, which isorganized by energy technology service providers between on-site activities andexchanged information on factory auditing technologies.
Delegates: Mr. Taichiro Kawase, Mr. Kokichi Takeda, and Mr. Hidetaka Urakubo,
Technical Experts of Technology Cooperation Department, ECCJ
Activity schedule:
October 29 – November 5 OJT audit (Amherst Laboratories)
November 6 seminar workshop (at the convention hall of Department of Energy)
2. OJT audit (Amherst Laboratories)(3) Participants: 22 people
Amherst Laboratories: Mr. Amado De Leon (engineering manager) and three
engineers
United Laboratories Group: Mr. Anthony Arciaga and ten engineers
Department of Energy (DOE): Mr. Marlon Domongo, Mr. Maximino Marquez
ACE: Mr. Zamora, Mr. Junianto

IV-1

ECCJ: Mr. Urakubo, Mr. Takeda, Mr. Kawase(2) Factory overview
Operation: Amherst Laboratories belongs in the United Laboratories Group. It is
located in the city of Laguna in the southern part of Manila and started solid
dosage manufacturing in the Building I in March 2007. Building II wascompleted in this November, which plans to manufacture liquid dosages. Thisis the first and only factory with EU GMP certification in the Philippines. It
has also obtained ISO 9000, ISO 14000, and Halal certificates. Building
management system (BMS) is employed in the factory buildings.
Crude oil and products: Ingredients are imported from foreign companies including
Takeda Pharmaceutical Company. Products are shipped for domestic
consumption and export (amount is unknown).
Manufacturing facility: Pelletizer machines (wet and dry types), fluidizing dryer,
tablet press, coating system, hot air dryer, primary packaging and secondary
packaging system, clean room (in compliance with GMP)
Utilities: Air conditioning system (HVAC), pneumatic plant, pure water production
system, boiler, and waste water treatment system
Energy consumption (2008): LSFO fuel 203 kL, electricity 7.4 x 106 kWh
Number of employees: 386 people(3) Auditing overview
1) Participants of the auditing teamTwenty-two people joined the team, including four from Amherst Laboratories, elevenfrom the group companies of United Laboratories, two from the Department of Energy(DOE), and five from ECCJ/ACE. Mr. De Leon, the technical manager of Amherst
Laboratories, was assigned the team leader in the Philippines. The participants wereseparated into three sub-groups and conducted data collection and analysis. Mr. Aaron
Cuaresma, the technical staff of Amherst Laboratories gave a presentation about OJT
outcomes in seminar workshop.
2) Confirmation of the purpose of PROMEEC project
We confirmed that the purpose of this project is to nurture people who are involved in
auditing technologies of industrial facilities rather than a technological service thatIV-2

addresses specific problems. We also confirmed that target facilities of energy efficiency
and conservation audit are limited to utility systems and peripheral facilities andequipment of manufacturing lines, for example heat recovery systems, dryers, andfreezers, whereas the core components of manufacturing processes are not included.
3) Requests of the factory to the auditing team
Mr. Limuel Razo, the vice president in charge of factories at United Laboratories
expressed the wish to increase energy efficiency and conservation knowledge and skillsof engineers and receive knowledge on cost reduction. Mr. De Leon, the technicalmanager also asked us to teach them the latest energy efficiency and conservation
technologies and provide specific suggestions to conserve energy of HVAC
4) Procedure of the audit
・Interview with the factory side
Mr. De Leon explained the overview of factory facilities and energy conservation andtheir efficiency activities using PPT.
・Confirmation of the responses in the previously sent survey sheet
The explanation of the factory officials using PPT was perfect, and we did not have to
confirm their responses on the survey sheet.
・Lectures on technological aspects necessary for audit
We gave a lecture on the overview of energy audits, energy conservation measures of
HVAC facilities (chiller, cooling tower), and examples of energy conservation in
medical supply factories.
・On-site inspection and discussion
The team leader was the technical manager of the factory, and he answered questions
during the inspection. We returned to the classroom and discussed as necessary.
・Primary report
The flash report of auditing findings was reported to the factory executives as the on
the final day of the audit.
・Secondary reportJapanese language report will be submitted to METI in March of next year (will be
uploaded on the ACE website in June)
5) Findings of the on-site inspection and energy efficiency and conservation possibilities(see Attachment IV-1)

IV-3

We started the inspection by explaining the purposes at individual facilities to ensurethat we provide engineering education that was requested by the factory manager. In theactual setting, it was impossible to explain to more than 20 participants in noisy areas.
Thus, we handed out data sheets that list data to be collected to all participants. Also, we
explained the meaning of the datasheet in the classroom prior to the on-site inspection.
Then, the audit was conducted in a style in which ECCJ experts inspected facilities
while participants filled in inspected points in the data sheet. This style succeeded
considerably in promulgating the purpose of on-site inspection.
This is a young factory that has been in operation for a little over two years, and theoperation rate is still low - about 60%. Organized energy efficiency and conservation
promotion activities were also yet to be implemented. Thus, in order to identify
opportunities to conserve energy, we conducted the on-site inspection based on thefollowing four classifications.
Category 1: Strengthen energy management system
Category 2: Re-tune operation conditions of facilities to suit the low operation rate
Category 3: Add energy saving equipment
Category 4: Optimize utility supply that integrates solid dosage factory and liquiddosage factory (outside the range of OJT)(a) Strengthen energy management system
According to the responses in the pre-survey sheet, despite the fact that the factory isimplementing a certain level of energy efficiency and conservation activities, it still hassome points to be improved: energy manager is not assigned; no energy reduction goalhas been set; and the factory has not received an energy audit from a third-party
consultant. Thus, we provided the following advice:・Appoint energy managers
Although the factory has established the energy efficiency and conservation
promotion committee, they have not started actual promotion activities because noenergy manager has been appointed. They need to appoint managers in individual
work areas to turn off lights, stop motors during non-manufacturing periods, clean
rooms, remove unnecessary heat sources, and establish a system to request repairs to
the facility division when necessary.

IV-4

・Monitor and record energy consumption data
Implement the following in order to monitor and record data: make maximum use of
the data stored in DCS (such as clarifying the relationship between operation data andenergy consumption), install an ammeter or a power meter in energy consuming
facilities (such as pneumatic system), and purchase portable measuring instruments
for energy management (such as a DO meter for activated sludge systems andstethoscope for steam trap management).
・Utilization of building management system (BMS)This factory is manufacturing products inside a large building with strictly controlled
air conditioning. Thus, the factory employs building management system (BMS) for
air conditioning management. The information inside the building, such as thetemperature and humidity,, as well as the data of service utility systems is inputted in
BMS. However, the data is not utilized for energy management. Thus, we instructed
them that they should output the energy consumption data as a report so that relevant
divisions can share the information for better energy management.
・Pursuit of energy efficient operation using IHDBAn important aspect of energy management is the constant operation of
manufacturing facilities and service utilities under optimal conditions; thus, it isimportant to specify energy efficiency indicators to individual facilities and regularly
manage them. Thus, we advised that the factory should regularly collect key processparameters that can be used as energy efficiency indices, store then as a database,discover signs of increased energy consumption, and be prepared to repair whennecessary. Such databases are used inside factories and called in-house database(IHDB). In general, the contents of IHDB vary in individual factories, but there aresome common aspects in service utilities.
・Roadmap to promote energy efficiency and conservation
Receive assistance from third-party consultants, generally explore possible energy
conservation measures, and categorize individual implementation plans of energy
conservation measures into short-term, medium-term, and long-term plans. The
Energy Conservation Act of Japan demands designated energy management factories
to create and submit mid- to long-term plans of energy efficiency and conservation
measures. This stipulation aims to prevent businesses from only trying energy
conservation measures with short payback time and overlooking greater energy

IV-5

conservation opportunities. That is, the stipulation is grounded on the awareness of
the importance of implementing energy conservation measures under mid- tolong-term perspectives. We advised the factory to create a mid- to long-term plan.
・Improve skills of engineers
In the process of discussing with engineers who participated in the OJT audit, we felt
the importance of improving their knowledge and skills. For example, some engineers
did not understand the mechanism of freezers and why freezers require energy. Theseare essential knowledge to promote energy efficiency and conservation activities.
Thus, we advised that the factory utilize third-party technological services, such asenergy service providers and consultants to strengthen engineer education on process
principles of facilities and auditing technologies.
・Improve workers’ awareness toward energy efficiency and conservation
Worker education is also necessary. The goal of worker education is to develop
awareness toward energy efficiency and conservation. Efforts, such as turning off
lights during lunch breaks require cooperation of workers. Quickly detecting signs ofincreased energy consumption, such as mechanical malfunctions is also an importantenergy conservation activity. One of the requirements for small group activities tosucceed is an awareness of energy efficiency and conservation.
・Facility maintenance
Based on the perspective of energy efficiency and conservation, major maintenancetargets include defective steam traps, damaged insulation, leakage of compressed air,and malfunction in meters. These are often left without being repaired, since they do
not affect operations of the factory. The factory needs to create inspection lists andconduct regular inspection and maintenance.
(b) Energy efficiency and conservation in thermal facilities (see Attachment IV-4)
・Inspection of cooling tower performance
Of the factors that affect the energy efficiency of air conditioning system, which
accounts for 60% of the energy consumption of this company, the largest factor is thetemperature of cooling water. The yardstick to examine the performance of a cooling
tower is the temperature (⊿t) between the temperature at the exit and difference ofthe temperature at the entrance and exit. The temperature at the exit was below 31 °C,

IV-6and ⊿t was 3 °C to 4 °C, which indicates no trouble in the performance of thecooling tower. The exit temperature was regulated with automatic on/off control of
the number of IDF fans. The system was set up so that it is turned on when thetemperature gets 31 °C or higher and turned off when it gets below 27 °C. Possibleenergy conservation include that setting the off-temperature at 29 °C instead of thecurrent 27 °C so that the on-time becomes shorter which consequently reduces theenergy use of IDF fans. This is especially effective because the wet bulb temperature
gets lower at night along with the exit temperature. Changing the off-temperature
setting is effective. When implementing this, be sure to examine the daily variation of
the wet-bulb temperature in Manila. Then, gradually increase the off-temperaturefrom 27 °C and check to see if there is any trouble before moving on to the next step.
・Maximization of Steam Condensate Recovery
We found that the drain discharged from the steam trap was released into the gutter
without being collected in the boiler room and the steam pipes in Level 2. The
discharges should be collected in a boiler feed water tank (the deaerator in thisfactory). If the trap is far from the tank, the cost of installing collection pipes
increases and makes it unprofitable. In such cases, it is necessary to make adjustments,
such as grouping several traps.
・Steam trap management
We found malfunctions of the steam traps in the boiler room and Level 2 steam pipes.
They increase the lead on the boiler and increases fuel consumption. Defective traps
must be dissembled for repair or replaced with a new one. We recommend free-floatstyle traps that are not likely to cause steam leak when replacing traps. Regularinspection is important for early detection of defective traps, and the factory shouldhave a trap inspection list ready for the inspection. Also, the factory should purchase astethoscope for trap audits to find defective traps. Stethoscopes can be purchased fromtrap suppliers.
・Insulation of bare part of steam piping and fittings
We found steam pipes and warm water pipes without insulation in the boiler room andLevel 2. We also found bare parts in cool water pipes in the Level 2. These parts
trigger increased boiler load and air conditioning load, which consequently cause
wasteful use of fuel and electricity. The factory should immediately insulate them.
Meanwhile, the factory has been operating only for two years at this point, andIV-7

insulation is not deteriorated yet; however, they will began to deteriorate andinsulation performance will decrease as the years in operation become longer. The
factory needs to repair them in early stages of deterioration.
・Optimum boiler operation
It is important for boiler operation to keep the exhaust gas temperature low and keep
the oxygen concentration in exhaust gas at optimal value. The exhaust gas
temperature was 170 °C and the oxygen concentration in exhaust gas more than 6 %at the time of the OJT audit. Estimating from the fuel consumption, the boiler load is
about 25%, which is extremely low. Given that, 170 °C and 6% are values with nosignificant problems. Under low load situation like this, lowering the combustion air
volume impedes good air-fuel mixture, which adversely increases imperfectcombustion. It is necessary to adjust air volume in order keep red flame without
producing black smokes. The ratio of fuel and combustion air is controlled with alinkage mechanism in this boiler. If low load operation persists, the factory needs toadjust the air-fuel ratio in the presence of the boiler supplier. In regards to the exhaustgas temperature, they need to be careful not to cause condensation corrosion from
sulfur in the fuel oil. The fuel oil used in this factory is a mixture of heavy oil andlight oil, and the sulfur content is 0.9%. The acid dew point is about 150 °C, and theexhaust temperature during operation is nearly 170 °C. The factory should inspect
tube corrosion during regular maintenance to prevent economizer tubes from locallyreaching below the acid dew point.
・Minimization of heat generation in air conditioned spaces
Heat sources inside an air-conditioned room must be kept to the minimum because
they increase the load on air conditioners. Heat sources include equipment that uses
steam, ones that use motors, lighting devices, forklifts, workers, and the outdoor air
that enters with door movements. We inspected equipment that use steam in thisinspection. The fluidized bed dryer was coincidentally not in operation on the day ofinspection, and we were unable to check if the surface temperature was high. There
was one steam heating kettle, and its steam pipes were not insulated. The jacket
surface of the kettle was not insulated, either. Since it is a small kettle with small
surface area, we suppose that its impact on the air conditioning load is small. The
factory should consider providing insulation if they add more kettles in the future.
・Heat recovery of streams around pure water PHE

IV-8

Pure water for manufacturing is indirectly sterilized by a steam using a heatexchanger. The sterilized and heated pure water is then cooled by cooling water andsent to a pure water tank. The heat is absorbed by the cooling water in this process,but there is a possibility of recovering this heat for preheating boiler water or raw
water for a warm water generator. Although we were unable to explore this point due
to the time restriction in this OJT, but this matter should be explored in the future.
(c) Energy efficiency and conservation in electric facilities (see Attachment IV-5)
・Condenser coolant pump
A total of four condenser coolant pumps (18.5 kW) are placed for one chiller system(4 types).
The motor load factor of this pump (two pumps were operating during measurement)is 68% to 70%, and the load factor on shaft power when the pump is operating at
specified rating is 71% to 73%. Hypothesizing a flow rate/shaft power curve andconvert the above into a flow rate, the actual operating condition is estimated to beabout 59% to 61% of the rated flow rate. Based on the comparison between the rating
specification and specification required in the end, we recommend theimplementation of energy efficiency and conservation measures by reducing
excessive specifications, such as impeller cutback. We estimate that the amount ofenergy to be saved through impeller cutback is approximately 5 kW.
・Inspection of chilled water and condenser pumps
Chilled water is circulating in the sequence of chiller evaporator, secondary pump,processing, (chilled air tank), primary pump, and chiller evaporator. The chilled watertank is not placed in this system, which makes it a closed system. The primary pumps(four units) are operated with the constant speed motor, and secondary pumps (seven
units) with variable speed motor with inverters. The frequency of the secondary pump
motor was 10-11 Hz in the maintenance inspection, which practically means norotation. The suction pressure and discharge pressure of the secondary pumps arealmost the same, about 6 bar. This means that the entire flow resistance of the chilledwater circulation is lower than designed, and the circulation can be made only withthe primary pumps. Flow resistance changes in proportion to the square of flow rate.
It is probably caused because the amount of chilled water circulation is smaller thandesigned because of the current low rate operation. Thus, we recommend that thefactory stop either primary or secondary pumps. Since the rated headings are 22.8 m

IV-9for the primary pumps and 27.4 m for the secondary pumps, stop the primary pumps
and operate only with secondary pumps. In this case, it is necessary to install bypass
pipes to the primary pumps. We estimate that the amount of electricity to be savedwith the operation with the secondary pumps will be about 8 kW.
・Reduction of compressed air pressure
The compressed air is used to move actuators, blow surfaces, transport powder, andmove micronizer in this factory. The average exhaust pressure is 8.2 bar. Seven bar or
lower is sufficient for equipment other than the micronizer. Meanwhile, themicronizer is only used once in three months for about 1.5 days. Thus, it means thatenergy is wasted for the majority of the time. Thus, possible measures include (1)install a small pneumatic system exclusively for the micronizer, (2) operate at 7 bar or
lower during normal operation and increase the discharge pressure setup to 9.2 bar
when using the micronizer, or (3) install a (new) booster exclusively for the
micronizer. When employing the method (2), it is necessary to check with thepneumatic system supplier whether it is possible to change settings. The electricity
conservation ratio when the discharge pressure is lowered from 8.2 bar to 6.2 bar isestimated to be about 14.4%.
・Optimum control of air compressors
Three screw type pneumatic systems are installed in this factory; two are constantly inoperation, and the other one is standing by. We measured the load time of the runningpneumatic systems and found that one spent 61% of the time in unload and the otherone 22% of the time. Also, the load setup pressures and unload setup pressures were
almost the same for the two systems. Possible measures to reduce the unload time
include (1) replace one of the pneumatic system with a small pneumatic system or (2)replace it with inverter-operated one. The case (2) requires a significant investment,
and it is difficult to pay out.
・VSD of aeration blower of activated sludge unit
Three aeration blowers are installed with the activated sludge unit in this factory andsupplying air for aeration. They are all operated with constant speed motors. The
operation rate of the factory is currently low, and the BOD load is probably lower
than the designed value. We found large bubbles in the visual observation during
aeration, which indicate the possibility of over-aeration. The factory should measure
dissolved oxygen value using a portable dissolved oxygen meter (DO meter), and if it

IV-10

is within the control limits (usually 2-4 ppm), reduce the amount of aeration to reduce
the energy consumption of the blower. Three methods to reduce the amount of
aeration include (1) reduce the exit valve, (2) change the pulley diameter, and (3) use
a motor with a variable speed inverter. in the motor. Although the method (3) is has
the largest energy conservation effects, the most viable one is to change the pulley
diameter. DO should be measured and controlled every day; thus, we recommend
purchasing a portable DO meter (about $ 2,000 USD).
・VSD of miscellaneous rotating machinery
The flow rates in pumps, fans, and blowers driven by constant speed motors arecontrolled by opening and closing discharge valves. Discharge valves are closed
during low flow operation to generate pressure loss and control the flow rate. Energy
is lost in proportion to the pressure loss. Then, a variable speed motor is used tominimize the pressure loss at the discharge valve. That is, energy is conserved during
low flow operation usually by slowing the motor speed and fully opening thedischarge valve. The most frequently used variable speed motor is ones with inverters.
The yardsticks to determine whether to use an inverter are (1) when the opening of adischarge valve is less than 50% to 60%, and (2) when the load shows large or
frequent fluctuations. The load fluctuation is usually large in air conditioning systems,
and factories with lower nighttime load usually install inverters in chilled water
pumps, cool water pumps, and AHU/dust collection fans as a common practice. The
factory should select an inverter with the lowest price possible when installing one.
Manually, rather than automatically controlled inverters without expensive protective
circuit will suffice unless malfunction will have great impact on a factory’s operation.
This factory should consider installing inverters for the following machinery.
Chilled water pump (water circulating in the cooling tower)
Cold water pump (cold water circulation)
Dust collection fan
Water pump (excluding when the pump is on ON/OFF control)
・Cooling tower fan
The cooling tower fan (18.5 kW x 4) is automatically turned on and off by the feedwater temperature control, which also selects the number of units to turn on to runenergy efficient operation. The motor load factor during the measurement is 66% to76%. The cooling tower fan is already running in energy efficient operation with thefeed water temperature control, and we have no particular recommendation for further

IV-11

energy conservation. However, a possibility to further reduce energy consumption in
the operation is to add the capacity control feature to deal with partial loads by using
an inverter with one fan in combination with the current control on the number of
equipment to turn on.
6) Introduction of successful energy efficiency and conservation measures in medical
supply factories in Japan
Many energy efficiency and conservation measures in medical supply factories arereported in National Convention on Excellent Energy Conservation Efforts every year.
The representative examples listed below are described in the PPT document. See
Attachment IV-3 for details.
・Clean room A/C system in Abbott Japan, Katsuyama Plant
・Cooling water system in Ajinomoto, Kyusyu Plant
・Water supply pumps in Eisai, Tsukuba Laboratory
・Utility facilities in Japan Chemical Research, Kobe Plant
・Lighting fixture in Santen Pharmaceuticals, Noto Plant
・Utility facilities in Otsuka Pharmaceuticals, Tokushima Plant
・Ice-thermal storage system in Eisai, Tsukuba Plant
・A/C system in Pfeizer, Nagoya Plant
・ Multi-effect evaporative water distillation unit in Otsuka Pharmaceuticals
Tokushima Plant
・Flue gas desulfurization unit in Taiho Pharmaceutical Tokushima Plant
・Spray dried crystallizer in Fuji Pharmaceutical Toyama Plant
7) Preparation of measuring instruments
DOE provided a clamp-on power meter as a measuring instrument. ECCJ also provided
a contact thermometer. We utilized all instruments and successfully obtained asubstantial amount of data. We used the thermometer to take temperatures around theboiler and the cooling tower. The power meter is an important measuring instrument tomeasure motor currents of pumps, fans, and compressors. We asked the factory officials
to handle the power monitor as a precaution to prevent possible accidents.
In common factories, highly recommended instruments required for measurement
include oxygen meter to analyze combustion gas and hot wire anemometer or vane

IV-12

anemometer to measure air volume of fans in addition to power meters andthermometers. These are essential measuring instruments in the evaluation of
combustion management and inverter control that is frequently practiced as energy
efficiency and conservation measures.
8) Data analysis and brief report
We reported issues to be examined and problems found in the OJT audit as a flash
report on the final day of the audit to the factory executives. Mr. Nestor Felicio, the vicepresident in charge of planning, and Mr. Limuel Razo, the vice president in charge offactories, attended from the parent company, United Laboratories, Inc. Mr. Aaron
Cuaresma, the member of the local team, presented this flash report in the seminarworkshop. See Attachment IV-4 for the details of this report. We will bring the databack to Japan, which will be analyzed in detail and summarized in the final report (inJapanese) in March next year. The participants engaged in active discussion on thisreport.
Main questions and answers are described below:
Q. (UniLab) We want to submit a budget request and would like to know how to
calculate the cost of installing inverters.
A. (ECCJ) The purpose of this project is to build capacity of auditing technologies
rather than technological services. This project explained locations of energy saving
potentials. Participants should consult with energy service providers (ESP) for detailed
information to calculate specific suggestions and other services. Naturally, you need to
pay for such services.
C. (DOE) The purpose of PROMEEC is to increase awareness and to develop themarket of EE&C technologies. We would like you to utilize ESP’s technologicalservices.
Q. (UniLab) What is the load factor of a pneumatic system that we should target?
A. (ECCJ) First, I would like to explain how to determine a facility capacity at a designphase. In general, a facility capacity is determined by adding two types of safety to thecapacity required for normal operation. One of the safety factors is 10% to compensate
for insufficient capacity that originates in the lack of design precision, and the other one
is 10% to compensate for increased capacity due to market fluctuations. Thus, thecapacity of a facility is 20% larger than required for normal operation.
Next, I will describe how to effectively utilize already installed facilities. The efficiency

IV-13

of a facility is maximized when operating at rated capacity, which means 100% loadfactor. Meanwhile, normal operation uses 80% of the facility capacity, which means thatthe facility is operating with 80% load factor. Thus, the facility is forced to operate withlower efficiency than when operating with 100% capacity. Since the reduction ofefficiency is not very significant when the load factor is 80%, there is no special need toincrease it. However, the power required in rotating machines, such as pumps and fans
is proportional to the cubes of load factor; thus, if an inverter is used, the required
power is decreased to 51.2% (= 0.8^3) when operating with 80% load factor. Thus,
inverters are often included in a design phase. The answer to the question is that there isno target load factor for already installed facilities (a type of cryptic dialogue).
Q. (UniLab) Please teach us the mechanism of a temperature regulating steam trap.
A. (ECCJ) Explained the mechanism by comparing temperature regulating type and free
floating type.
Q. (UniLab) What is the boiler blow down?
A. (ECCJ) Explained the relationship between water quality and blow down,intermission blow and continuous blow, the effects of conductance meter, TOD standard
values, etc.
Q. (UniLab) Why didn’t you employ a suction chiller?
A. (UniLab) We used a mechanical chiller because a suction chiller could not satisfy therequired temperature of chilled water.
Q. (UniLab) Please explain the energy efficiency and conservation effect of fueladditive.
A. (DOE) Many types of fuel additives are on the market, but we have not confirmed
their effects.
(4) Remarks
1) This is the largest and latest factory in the Philippines, and only two years havepassed since the start of operations. Naturally, the factory strictly followed the GMP for
medical supply manufacturing standards. However, few latest energy saving
technologies have been reflected in the design of factory facilities. In fact, the factory
was collecting heat of some exhaust air and installed inverters in the AHU blower, butthese are not sufficient. Building a new factory was a great opportunity to install energy
saving technologies; unfortunately, they missed the opportunity. We heard that acontractor in Manila was in charge of the construction, but we feel that the engineeringin the field of medical supply might be underdeveloped.

IV-14

2) The energy efficiency and conservation management was also very underdeveloped.
Although they have organized an energy efficiency and conservation committee, it isquestionable how much they are actually conducting. Many engineers did not evenknow what kind of energy efficiency and conservation technologies were available.
Although it was a new factory, the maintenance was not well implemented; we foundsigns of damages to the insulations and defective traps. We felt that the factory had
many things to do including the improvement of the skills of engineers, energy
conservation awareness among workers, data monitoring and recording, and theimprovement of maintenance.
3) The main factory has installed a BMS based on DCS. The fundamental energy dataand important operation data are collected online. The factory needs to utilize the datain their energy management from now on. IHDB is an effective tool to do so. We expect
the factory to use IHDB.
4) A liquid dosage factory will be completed next to the current solid dosage factory in
November. The new liquid dosage factory will have a different system that iscompletely separated from the solid dosage factory. Having separate systems is
associated with the advantage that troubles in one factory will not affect the other, butalso the disadvantage that the service cost will be high. The future issue to be examinedis that the factory should minimize the service cost of the entire factory by categorizing
the effects on factory operation and share functions between the two factories whenpossible. Targets include boilers, steam system, compressed air systems, wastewater
treatment systems, and water supply systems should be included.

IV-15

3. Seminar workshop(1) Date, time, and location
November 6, 2009 08:30-16:30
Conference hall in Ministry of Energy(2) Participants: 45 people
Dept of Energy (DOE) 9 people
Mr. Roy Kyamko, Senior Undersecretary
Ms. Evelyn Reyes, OIC-Director
Mr. Artemio Habitan, OIC-chief, EE&C division

Group of United Laboratories, Inc. Nine people
Mr. Amado De Leon, Engineering Manager of Amherst Labs
Mr. Anthony Arciaga, AVP-engineering service
Pharmaceutical Industry (ex. United Labs Group) Eight people
Philippines Council for Industry & Energy and Development (PCIERO) Two people
Energy Service Providers Six people
Hotel Industry Two people
ASEAN (speaker) Two people
Mr. Zul Azri Hamidon, PTM, Malaysia
Mr. Gannet Pontjowinoto, President director of PT EMI, Indonesia
ACE 2 people
Ms. Christopher Zamora, Mr. Junianto M
ECCJ 3 people
Mr. Urakubo, Mr. Takeda, Mr. Kawase(3) Presentation overview
Session 1: Policy and Initiatives on EE&C in Major Industries
1) Updates of ASEAN Energy Efficiency (EE&C) Activities
Mr. Christopher Zamora explained about the activity overview of ACE based on thefollowing aspects.
・APAEC Program 2004-2009 and 2010-2015

IV-16

・17 EAEF EE&C Project
・ASEAN-Japan Cooperation (SOME-METI, PROMEEC and multi-country training)
・ASEAN Best Practice Competition (energy conservation section)
・ASEAN＋3 Energy efficiency and conservation/Renewable Energy Forum・AEMAS (ASEAN Energy Manager Accreditation System)
・Other cooperative program with EAS-ECTF, UNEP, ASEAN foundation, ADB, andCDC
Of these topics, Mr. Zamora explained in detail about the APAEC Program 2004-2009.
This program includes six program areas, and energy efficiency and conservation are
implemented in program area 4; the purpose is to strengthen the cooperation of theASEAN region through the capability establishment of energy efficiency andconservation organizations, the involvement of the private sector, and the expansion of
the market for energy saving devices; and this program intends to implement activities
in six categories in order to achieve its goals.
(Information sharing and networking, ASEAN energy standard and labeling,
participation of the private sector, capability building, training of ESCO companies, andenergy efficiency and conservation in the transport sector) As main activities in the
program area 4, he then introduced PROMEEC activities based on circumstances ofleading to Phase 1, Phase 2, and Phase 3, as well as outcomes and future perspectives.
The efforts involving the commercial use of nuclear power will be added to the APAECProgram 2010-2015, which is currently being developed.
2) EE&C Promotion Activities in the Philippines
Mr. Artemio Habitan of the Energy efficiency and conservation Division, DOE,
explained the organizations involved in energy efficiency and conservation in thePhilippines and recent energy efficiency and conservation activities;
・ The main themes of the activity are to improve energy independence, promoteenergy efficiency and conservation, and develop alternative and renewable energies.
・ Energy demand: Transport 34.6%, residential 28.5%, industry 25.4%, commercial
10.1%, and agriculture 1.4%
・ Division of Energy efficiency and conservation, Department of Energy, Ministry ofEnergy is in charge of energy efficiency and conservation.
・ NEECP (National EE&C Program) Select 2004 official logo (ec way of life)
Seven sub-programs (promulgation campaign, consumer electronics S&L, energy

IV-17

efficiency run, government EM project (GEMP), energy management service/audit,
award, voluntary action plan (VAP))・ PEEP Project (Philippine Energy Efficiency Project)
Goal: Reduce electricity cost by cutting the peak energy
Fund: US $ 46.5 mil. (ADB loan US $ 31.0 mil, ADB grant US $ 1.5 mil, Gov’t US$ 14.0 mil)Four sub-projects: Lighting, building and industry super ESCO, promulgation ofenergy efficiency and conservation in domestic aspects, assistance for energy
efficiency and conservation
・ Outcome: Reduction of the peak energy 450 MW・ ・CFL supply plan
1st lot (5 mil CFLs, Manila area), 2nd lot (4 mil CFLs, Luzon area), 3rd lot (4 mil
CFLs, Visayas area and Mindanao area)
・Project with other countries
ASEAN-PROMEEC, ASEAN BP building, ASEAN EM Award Industry and Building3) Japan’s Energy Conservation Policy & Measures for Industrial Sector
Mr. Taichiro Kawase of the Energy Conservation Center, Japan explained Japan’s
energy efficiency and conservation policies, policies in the industry sector and the roleof the Energy Conservation Center based on the following five perspectives:

・Changes in the basic unit of energy in individual industries in Japan・Legal measures and energy efficiency and conservation measures in the industry sectorof Japan・Voluntary activities of private companies and organizations in the industry sector(using the medical supply industry as an example)
・Roles of the Energy Conservation Center and activity overview
・Introduction of successful examples of PROMEEC industry projects in other ASEAN
countries (using the food industry as an example)
Session 2: EE&C Best Practices in Industries
4) EE&C Best Practices in Malaysia
Malaysia: Mr. Zul Azri Hamidon of Energy Conservation Center (PTM) presented cases

IV-18

of electric furnaces that produce billets and steel bars.
・The operation started in 1961, billet 423 kt per year, steel bar 291 kt per year, energy
cost RM 65 million, number of employees 1,060 people, operated for 24 hours a day.
・Manufacturing process: Accept scraps → DC arc furnace → ladle furnace →continuous casting machine → reheating furnace → rolling machine → laying →finished product (steel bar)・Measures to prevent compressed air leaks from the No. 1 rolling machine: Conduct air
leak test and estimate the amount of air leak, identify areas of air leak (air flow when
the air is not used, pipes and joints, leave a shut-off valve open, mishandling of air
guns)
・Replaced the aged piston pneumatic system with a screw pneumatic system anddownsized the two-unit 75 kW operation into one-unit operation.
・Prevention of air infiltration in the reheating furnace: Found air infiltrations from theoutput door and handling door. Lowered the bottom line of the output door 200 mm.
Repaired the inclination of the handling door.
・Installed a VSD in the quenching pump of No. 2 rolling machine: Switched fromdischarge valve control to inverter control. Installed VSDs in two 160 kW pumps andone 225 kW pump.
・Installed VSDs in the cooling blower of No. 2 rolling machine: Switched fromconstant speed motor to inverter controlled motor. Installed VSDs in two 37 kW
blowers and one 75 kW blower.
・Improvement of power factor: Installed a capacitor bank and improved the power
factor from 0.7 to 0.9.
5) EE&C Best Practices in Indonesia
Indonesia: Mr. Gannet Pontjowinoto of PT EMI (PERSERO) explained four cases.
・A case of the integrated fiber factory in Jawa Barat
Manufacturing capacity: Spinning: 350 tons per month
Weaving: 1.35 million yarns per monthDyeing & finishing: 1.2 million yards per month
Printing: 600,000 yards per month

IV-19

・Electric furnace factory in Jawa Timur
Manufacturing process: Scrap/Sponge → EAF → LRF →C CM → (Billet) → BRF→Roughing→Intermediate→Finishing→Wire rod

・Gas treatment plant in Sumatera Selatan
Main facilities: Amine desulfurization unit, stabilizer, propane chiller, GTG power
generator

IV-20

・Cement factory in Sumatera Barat
Eight improvement suggestions were made in Greenhouse Gas Emission Reduction atIndustries in Asia Pacific program (GERIAP), five of which received follow-up
evaluations in Cleaner Production Energy Efficiency Program (PBEE).

IV-21

6) Best Practices in Japan (pharmaceutical factory)
Mr. Hidetaka Urakubo of the Energy Conservation Center, Japan, reported two cases
from medical supply factories in Japan.
・Energy efficiency and conservation activities involving steam trap management
Implemented management activities including simple measurement of the amount ofdrain from traps, performance comparison of four trap manufacturers, decision on
optimal traps, and labeling distinguishing marks on steam traps.
・energy efficiency and conservation in the chiller for the clean room air conditioning
Utilization of free cooling (gain energy conservation effects by taking advantage ofthe property that the cooling water becomes as cold as the chilled water temperature
in winter and stopping the chiller operation), clean-up of the heat exchange tubes ofthe suction chiller (restore heat exchanging efficiency and reduce LPG combustion),and clean-up the heat exchange tubes of the turbo chiller (restore heat exchanging
efficiency and reduce the compressor energy)7) Best Practices in Japan (electrical energy, pharmaceutical factory)
Mr. Kokichi Takeda of the Energy Conservation Center, Japan, reported the following
topics in regards to energy efficiency and conservation in electric energy:
・Energy efficiency and conservation through the accumulation of low-cost measuresthat conform to ISO 14001
・Reevaluation of factory energy management when transferring manufacturing tooverseas
・Use of VSD in water pump (inverter control)・Reduction of unload time by switching to a small compressor
・Energy conservation in the clean room air conditioning system (heat recovery fromexhaust air, modification of temperature and humidity management values duringnon-manufacturing period, and the reduction of flow rate in lamina-flow facilities in a
packing chamber during non-manufacturing period)・Energy efficiency and conservation in spray dryer freezing system (introduction of
inverter control in brine pump and cooling water pump, control the number ofrefrigeration compressor to operate)
・Energy efficiency and conservation in the lighting in a packaging room (use ofhigh-efficiency lighting and lighting control and division of lighting areas)

IV-228) Results of OJT Energy Audit in Pharmaceutical Factory (Attachment IV-2)
Mr. Aeron Cuaresma, the technical staff of Amherst Laboratories reported the outcomeof an OJT audit conducted in this factory. Major points of the suggested measures
include the performance evaluation of the cooling tower, energy conservation operationin the chilled water pump, condensate recovery, improvement of steam trap
management, insulation of pipes without insulation, minimization of heat sources in air
conditioned spaces, reduction of the pressure to send compressed air, and energy
conservation of the aeration air blower of the activated sludge system.
Session 3: Workshop on Energy Management Tools
9) Heat Balance Practice of Fired Heater (Attachment IV-3)
Mr. Hidetaka Urakubo of the Energy Conservation Center, Japan gave a lecture about
heat balance.
This lecture aimed to build up fundamental knowledge to make the full use of energy
management tools. Industrial furnace used in many factories was selected as an example
to demonstrate heat balance. The time allowed for this lecture was short, and only alecture was given in this session, but we will make improvements so that calculation
exercise can be included in the future. Heat balance calculation homework was assigned
as a new attempt. While the submission of the homework was not mandatory, theprocedure to submit answers to ECCJ and how the ECCJ experts would correct andreturn them were presented.
10) Updating of TDs, IHDBs, EMHBs and Cyber Search
Mr. Junianto M of ASEAN Centre for Energy (ACE) explained purposes, production
method, format, and entry example of four types of ASEAN energy management tools:
the technical directory, in-house database, energy management handbook, and cybersearch system.
11) IHDBs for cement industry and food industry
Mr. Taichiro Kawase of the Energy Conservation Center (ECCJ), Japan explained theoverview and provided instructions on how to fill out the entry format of in-house
database (IHDB) for cement factories and food factories. The characteristic feature of

IV-23

IHDB as an energy management assistance tool to be used in factories is that it includes
manufacturing data, energy data, and equipment data in addition to important operation
parameters and energy efficiency indices. These features supply reference information
to divisions within a factory for efficient energy operation. Based on the perspective of
promulgating them to the ASEAN countries, we requested the participants to actively
employ them in cement factories and food factories in Brunei. The following
implementation procedures were presented before moving on to a full-scale
employment of IHDB in order to identify problems associated with its test employment:
a. Select participating factories in each industry (about two companies in one
industry)b. Produce an organization chart for the test employment of IHDB (clarification ofrole assignment)c. Determine data to be entered in IHDB (be careful not to include too a substantial
amount of data)d. Start data collection and accumulation (each participating factory is to individually
implement this procedure)e. Progress management of test employment (focal point is to implement thisprocedure)f. Follow-up (report in the next inception workshop)
g. Create a roadmap (create a mid- to long-term plan with ACE)
(4) Remarks
1) Forty-five people attended from the Ministry of Energy, energy technology service
providers, the United Laboratories Group, as well as other medical supply businesses
and the hotel industry, which indicated great interest toward energy audit. Unfortunately,
we had a small number of participants from industries other than the medical supply
industry and universities. We wanted the local officials to encourage participation atleast from the officials of the cement industry and steel industry, which were introducedin the seminar workshop.
2) The presentation of the cases in Malaysia and Indonesia involved low cost measuresthat were extremely practical. The contents should be promulgated among ASEAN
countries. We would like to request the cooperation of relevant countries and actions of
ACE so that the efforts will be registered in the technical directory.

IV-243) The staff efficiently operated this session including the preparation of the site,
distributing documents, and arranging lunch services. We would like to express our
gratitude toward Ministry of Energy, the industry coordinator of PROMEEC andgovernment officials of the Philippines.
END

IV-25

Attachment IV
1. Outcomes of OJT audit (flash report)
2. Results of OJT Energy Audit in Pharmaceutical Factory
3. Heat Balance Practice of Fired Heater
4. Examination of energy efficiency and conservation measures in thermal aspects
5. Examination of energy efficiency and conservation in electric aspects

IV-26

Amherst Laboratories OJT audit

Mr. Nestor L. Felicio (VP in charge

Mr. Limuel Razo (VP in charge ofof planning)

factories)

OJT audit data analysis

IV-27

Group photo at Seminar Workshop

Mr. Roy Kyamko (Senior Undersecretary of DOE)
Ms. Evelyn Reyes (OIC-director of DOE)

IV-28

Those who wish to publish the contents of this reportmustobtainthepermission

of

the

Technical

Cooperation Department, International Cooperation
Division of the Energy Conservation Center, Japan,
prior to the publication.
Tel +81-3-5543-3018
Fax +81-3-5543-3022

IV-29