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Urban sustainability and energy efficiency in industry

Regional Environmental Center for Central and Eastern Europe Đorđićeva 8a, 10000 Zagreb, Croatia Željka Medven , Project Manager E-mail: zeljka@rec-croatia.hr Tel: +385-1-4873-622 Fax: +385-1-4810-844. Urban sustainability and energy efficiency in industry. From global to local level.

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Urban sustainability and energy efficiency in industry

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  1. Regional Environmental Center for Central and Eastern EuropeĐorđićeva 8a, 10000 Zagreb, CroatiaŽeljka Medven, Project ManagerE-mail: zeljka@rec-croatia.hrTel: +385-1-4873-622Fax: +385-1-4810-844 Urban sustainability and energy efficiency in industry

  2. From global to local level • Urban sustainability and industry • Industry in Croatia • Energy efficiency in small and medium size enterprizes (SMEs) – Croatian case study

  3. Urban development • A path to a sustainable world? • Environmental threats, social and economic distress • - agglomerations • - wealth and income inequality • - consumption of natural resources and production of waste • - urban transportation system • - industrial development and its pollution • - inefficient energy consumption • Economic globalization lacks an effective model for sustainable local development.

  4. Key Factors in Urban Sustainability ENERGY USE AND CONSERVATION: • Oil problem • Patterns of transport energy use between cities and within cities • Energy conservation and efficiency in the built environment

  5. Where next? Situation • Over 50% of the world's population, i.e. 3 billion people, lives in urban centres (cities and megacities) • Around 80% of the European Union’s population lives in cities and towns Solutions to-date • Sustainable community initiatives - promote waste reduction, pollution prevention, forming of environmental industry economic development strategies Drawbacks • Incremental improvements • Separate interests of stakeholders • Solution • communities as living systems (industrial metabolism) • industrial ecology as the new approach

  6. Industrial Metabolism • "metabolism" of industry, commerce, municipal operations, and households • community consumes material and energy inputs, processes them into usable forms, and eliminates the wastes from the process • possible public and private cost-savings and opportunities for new business development Measures of sustainability: • The ratio of virgin to recycled materials • Ratio of actual/potential recycled materials • Ratio of renewable/fossil fuel sources • Materials productivity: • Energy productivity • Resource input per unit of end-user service

  7. Industrial ecology • An industrial ecology (IE) perspective provides tools for understanding the environmental impacts of a community's industry, commerce, infrastructure, and household behavior as a whole system. • addressing industry's needs in the transition to sustainable communities. • The goal is to support business competitiveness and job creation through strategies that also improve environmental protection and quality of life in all dimensions. The benefits to communities of this holistic foundation for change include: • Creation of common ground for all community stakeholders to plan effective change; • Increased efficiency of energy and material resource use; • Increased competitiveness for businesses; • Ability to target highest risks and opportunities for greatest improvement; • Decreased pollution and damage to the health of citizens and the environment; • Opening of new local business and job development opportunities; • Revitalization of existing industries; • Improvements in the efficiency and extension of the life of municipal infrastructure systems; and • Restoration of the viability of local ecosystems.

  8. Industrial ecosystem An industrial ecosystem is a community or network of companies and other organizations in a region who chose to interact by exchanging and making use of byproducts and/or energy in a way that provides one or more of the following benefits over traditional, non-linked operations: • Reduction in the use of virgin materials as resource inputs; • Reduction in pollution; • Increased energy efficiency leading to reduced energy use in the system as a whole; • Reduction in the volume of waste products requiring disposal (with the added benefit of preventing disposal-related pollution); and • Increase in the amount and types of process outputs that have market value.

  9. Industrial ecosystem– Kalundborg case study Kalundborg is a Denmark harbor town with buildings dating back to the 12th Century. What happened over last 20 years? • spontaneous but slow evolution of the "industrial symbiosis" • development of network of materials and energy  exchanges among companies (and with the community) Why it happened? to reduce costs by seeking income-producing uses for "waste" products Five core partners: • Asnaes Power Station • Statoil Refinery • Gyproc, a plasterboard factory • Novo Nordisk, an international biotechnological company • The City of Kalundborg, supplies district heating to the 20,000 residents, as well as water to the homes and industries

  10. Industrial ecosystem – case study... Energy Flows • The power station - coal-fired, 40 percent thermal efficiency. • Refinery flared off most of its gas by-product. Then, starting in the early '70s, a series of deals were struck: • The refinery agreed to provide excess gas to a plasteboard factory • Power station began to supply 3 new customers with stem • the city with its new district heating system (3,500 oil furnaces replaced) • biotechnology company • refinery • The power plant uses salt water, from the fjord (instead fresh lake water), for some of its cooling needs. The resulting by-product is hot salt water, a small portion of which is supplied to the fish farm's 57 ponds. • In 1992, the power plant began substituting fuels, using surplus refinery gas in place of some coal. This only became possible after refinery built a sulfur recovery unit to comply with regulations on sulfur emission; the gas was then clean enough to permit use at the power plant.

  11. Industrial ecosystem – case study... Materials Flows • In 1976 the biotechnology company started the pattern of materials flows, matching the evolving energy flows at Kalundborg. • Sludge from biotechnology processes and from the fish farm's water treatment plant is used as fertilizer on nearby farm. • A cement company uses the power plant's desulfurized fly ash. Power plant reacts the SO2 in its stack gas with calcium carbonate, thereby making calcium sulfate (gypsum), which it sells to plasterboard company, supplying 2/3 of the latter's needs. • The refinery's desulfurization operation produces pure liquid sulfur, which is trucked to sulfuric acid producer. • Surplus yeast from insulin production at biotechnology company goes to farmers as pig food.

  12. Industrial ecosystem – case study... Lessons from Kalundborg • contracts negotiated bilateraly • economically attractive for both companies • opportunities only within a company's core business • minimizing risks • independent evaluation of deals

  13. Industrial ecosystem – case study... Pre-conditions for development of a similar network of exchanges: • Industries different and yet fit each other. • Arrangements commercially sound and profitable. • Development voluntary, in close collaboration with regulatory agencies. • A short physical distance between the partners necessary for economy of transportation (with heat and some materials). • At Kalundborg, the managers at different plants all know each other.

  14. Industrial ecology - Municipal infrastructure • community's energy and materials flows – mostly local energy, water, solid and liquid waste, and transportation systems • industrial ecology approach - "soft infrastructure" (finance, education, training, tax incentives, and other public programs) to achieve much higher efficiencies An integrated strategy for extending the life of landfills would include: • Analysis of the major elements in the waste stream • Education and training in waste reduction • A business development strategy targeting companies recycling and reusing waste • Selection among options to get highest value out of reused materials and products; • Development of information systems and businesses supporting the exchange of waste materials and energy

  15. Industrial Ecology - Business Development Opportunities Entering new markets for existing goods and services • By-product trading – opportunities for reprocessing and information technologies and for service providers Marketing emerging technologies, materials, and processes Consulting and information system opportunities • services of management and environmental consulting companies, training firms, print and electronic publishers, information system providers, and educational institutions. Integrating technologies and methods into innovative new systems. • larger corporations, or joint ventures • an integrated home appliances Supply and distribution services to sustainable farming • greater need for education, training, consulting, telecommunications, and electronic equipment

  16. Energy efficiency? • Energy efficiency means using less energy to perform the same function.Energy efficiency should reduce both use of resources and damage to the environment due to energy generation and consumption. • Demand Site Management programs are aimed at reducing the energy used by specific end - use devices and systems, typically without affecting the services provided. E.g. these programs reduce overall electricity consumption by substituting technologically more advanced equipment to produce the same level of end-use services (eg, lighting, heating, motor drive) with less electricity. • Examples include energy saving appliances and lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives. • Energy audit is a systemized approach to measuring, recording, and evaluating the operating performance of a building or building system with the intention of improving the performance

  17. Energy efficiencyin Croatia • Socialist market - low level of the efficient use of energy • old technologies • lack of energy management • inadequate energy policy • Transitional approach • unorganised approach • the lack of up-to-date knowledge • missing information interchange • Emerging trends • energy laws • capacity building programs • new financing possibilities - Fund for environmental protection and energy efficieny

  18. Energy consumersby sectors

  19. Industry sector -networking Industry sector missing: • Scientific approach to energy efficiency • Global insight into economic and environmental aspects of the non-rational energy consumption • Relevant information on applicable savings • Knowledge on general and technological development Tipically: • Large enterprises have adequate knowledge • Smaller enterprises due to their size do not pay adequate attention to energy efficiency Networking: Network of industrial energy efficiency (MIEE)

  20. Sectors and processes • Electricity consumption • Heat consumption • Water consumption etc. Industry: • construction materials • food processing • chemical industry • glass and non-metals • paper • iron and steal • non-ferrous metals • other

  21. 20000 18000 16000 14000 12000 10000 Croatia total Electricity, GWh 8000 Industry 6000 4000 2000 200000 0 180000 1990 1991 1992 160000 1993 1994 1995 1996 1997 140000 1998 1999 2000 2001 2002 120000 2003 100000 80000 60000 Heat TJ 40000 Croatia total 20000 Industry 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Energy consumption

  22. Industry - consumption Natural gas 90000 Coal and coke Fuel oil 80000 Steam and hot water 70000 Electricity 60000 TJ 50000 40000 30000 20000 10000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Energy consumption - industry In 2002:electricity: 2890 GWh (~23%)heat: 41000 TJ (~38%)

  23. Industry - electricity consumption in 2002. 800 700 600 500 GWh 400 300 200 100 0 Other Paper Chemical Iron & steel Food processing Nonferrous metals Construction materials Glass & non-metallic minerals

  24. Steam and hot water 14000,0 Natural gas 12000,0 Liquid fuel 10000,0 8000,0 TJ 6000,0 4000,0 2000,0 0,0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Chemical industry

  25. Chemical industry Characteristics: Heat consumption 4 times larger then electricity Considerable steam and hot water consumption Natural gas consumption increases Applicable measures: Heat: process rationalization, waste heat recovery, boiler improvement and other measures for heat Electricity: similar measures as in other industries, but it should be emphasised that the broader application of efficient motors and variable speed drives, at pumps and other devices Annual saving potentials: Annualy 200-300 TJ heat and 80-100 GWh electricity

  26. 18000 Steam and hot water 16000 Coal and coke 14000 12000 Natural gas 10000 TJ Liquid fuel 8000 6000 4000 2000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Construction materials

  27. Construction materials Characteristics: Electricity consumption has reached its pre-war levels heat consumption has gone above 30% of that level largest part of consumption caused by the cement works Applicable measures: waste heat utilization fuel switch improvement of machinery and technology application of more efficient motors etc. Annual saving potential: heat – about 800 TJ ; electricity - about 50-60 GWh

  28. Steam and hot water 10000 Coal and coke 9000 Natural gas 8000 Liquid fuel 7000 6000 TJ 5000 4000 3000 2000 1000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Food processing

  29. Food processing Characteristics: reached its pre-war energy consumption level relatively quick Electricity consumption – continuous increase from 1994 heat – heat and hot water up to 83% Sugar production – max heat consumer Meat industry – max electricity consumer Applicable measures: electricity: applying of efficient motors and el. consumers, improvement of technology processes, machinery and other heat, process rationalisation, use of waste heat, condensate and technology water re-use, and other measures Annual saving potential: 700-800 TJ heat, 50 GWh electricity

  30. heat carriers Priorities : water and other media consumption elektrolysis and other processes heating of premises reuse of condensate 1 – high industrial thermal processes heating sanitary hot water consumption efficiency lighting elektromotor facilities food processing 2 – medium heat for absorption chillers HVAC systems reuse of waste heat 3 - low INDUSTRY 1 1 3 3 1 3 1 1 1 1 1 PUBLIC 1 1 1 1 2 1 2 2 2 1 1 1 1 SECTOR SERVICE 1 1 1 1 1 2 3 1 1 2 1 SECTOR Measuresacc. consumers groups and priorities

  31. Efficiency of electricity consumption • Electromotor facilities – largest energy consumers in industry • Potential in energy efficiency motors (EEM) and variable speed drivers (VSD) • Combined application of EEM and VSD implies 10% economic savings, and more then 15% in energy savings

  32. Efficiency of heatconsumption • Similar share of high- and low-temperature consumption in industry • Low-temperature mainly in non-metal, chemistry, and food processing • Big potential in reuse of waste heat, and implementation of efficient technologies • High-temperature heat mainly in construction materials, paper, non-metal and chemical industry • Potential in BAT implementation, and increasing fuel efficiency • In steam consumption-usualy no recovery of condensate, or reuse of waste heat

  33. Cogeneration in industry • simultaneous production of electricity and heat • best locations are already available combustion facilities in industry • reconstruction needed for existing cogeneration plants • old boiler facilities should be modernized • potential in whole industry; specifically chemical, construction, meat procesing, pharmaceutical, wood procesing, textile, tobacco, paper, alcohol, beer, oil, etc.

  34. Energy eficiencyin small and medium size enterprizesTraining ProgramDonor: Ministry of Environment and Territory, Italythrough Italian Trust Fund (ITF), January2004

  35. Background • General: continuous increase in energy consumption in Croatia, paralel to the obligation of reducing the greenhouse gas emissions according to Kyoto protocol • Specific: REC projects related to industry showed low priority for implementing energy efficiency measures • PROHES (Program od Development and Organization of Croatian Energy Sector) • MIEE (The Netwok of Industrial Energy Efficiency) • Expert study in energy efficiency (FER – Faculty of Electrical Engineering and Computing, Norwegian Partners, EIHP – Energy Institute Hrvoje Pozar)

  36. Project Objectives • Building capacity of SMEs for planning and implementation of energy efficiency measures through interactive training activities • Presentation of technical, economical and financial feasibility of energy efficiency measures through identified case studies in SMEs • Promotion of energy efficiency and dissemination of project results in Croatia and abroad

  37. Framework • REC - project manager • Italian Partner: International Solar Energy Society (ISES)/Pisa University • Local Partners (Croatian Chamber of Commerce, Energy Institute Hrvoje Pozar, Faculty of Electrical Engineering and Computing) • Beneficiaries: SMEs (up to 250 employees) • Industry sectors: chemical, construction, food processing, pharmaceutical, wood procesing, metal and plastic • Project duration: 1,5 year (January 2004-May 2005)

  38. Activities • Short fact-finding mission in SMEs re. energy management • Promotional half-day seminar • Interactive training (2 workshops+2 site-visits to companies); development of case studies • Review of financing possibilities for EE measures in Croatia • Presentation of project results

  39. Outcomes • Review of current energy management practices in SMEs • Case studies developed in 8 companies • Pilot testing for training methodology • Increased capacity of local trainers for future educational activites • Increased capacity of SME employees for planning and implementation of energy efficiency measures

  40. Energy efficiency measures • Human resources and implementation of energy mgmt. system • Knowledge on current energy consumption and benchmarking • Employees education (new technologies, , maintenance, new legislation, environmental fees) • Improvement of maintenance system • Replacement of old and insufficient technologies, fuel replacement

  41. ...technical solutions ELECTRICITY AND HEAT • improving heating system • improving lighting • improving compressed air system • peak-load mgmt. ALTERNATIVE ENERGY • renewable energy resources • fuel replacement (especially in wood processing) WATER • development of modern water mgmt. system

  42. Case study - Wood industryCroatia • Basic data: • Joint venture for wood processing and construction materials. • Main product – massive parquet • 115 employees. • private (100% small shareholders). • 1998 energy audit performed • hard copy – data for electric energy and water acc. on a monthly basis, and compared with the previous period • motivation for EE measures

  43. Case study - Wood industryCroatia • Basic data – already implemented measures: • Time delay in various processing lines for peak load decrease. • Heat from 1980 from waste wood • Part of the steaming process is indirect • Implemented frequency controllers in new drying chambers • In 2004. unproductive electric energy costs ~1.700 €, problem solved after three months • More then 3.000.000 EUR invested through subsidized loans

  44. Case study - Wood industryCroatia Ratio of energy supply

  45. 8% 10% water fuel oil electricity 82% Case study - Wood industryCroatia Energy costs are higher then net profit!!!

  46. Wood industry

  47. Wood industry Total costs of energy supply 200.000 EUR (including water and wastewater) Saving potential EUR 1. compressed air system 2.500 2. lighting 2.300 3. peak load management 2.300 4. water management system 1.800 5. reconstruction of steaming unit 19.800 Total 28.700 Potential for 15% economic savings!

  48. Measures and benefits • integral mgmt. of resources (energy, water, raw materials!) – cleaner production! • reducing energy consumption up to 30% • best saving measures return investment in 1-2 years • less emissions, pollution and environmental fees • better market position • compliance with existing/future legislation

  49. Implementing partners Networking ensures project success: • business sector – SMEs, Croatian Chamber of Commerce • consulting companies • academic and scientific institutions • financing organisations (HEP ESCO, Environmental and Energy Efficiency Fund)

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