APPROACH FOR IMPLEMENTATION OF ENERGY CONSERVATION ACT 2001 IN PULP & PAPER SECTOR

1. APPROACH FOR IMPLEMENTATION OF ENERGY CONSERVATION ACT 2001 IN PULP & PAPER SECTOR B. P. Thapliyal, A.K. Goel, Akhil Naithani Bureau of Energy Efficiency, New Delhi & Central Pulp & Paper Research Institute, Saharanpur

2. IMPORTANCE OF ENERGY CONSERVATION & E.C ACT 2001 • Energy efficiency & conservation measures can reduce peak and average demand. • One unit saved avoids 2.5 to 3 times of fresh capacity addition. • Investment in energy efficiency/energy conservation is highly cost effective. • Can be achieved for less than Rs.10 million/Mw • Also avoids investment in fuel, mining, transportation etc. • Considering the above factors and to provide a policy guidance,Government of India enacted the Energy Conservation Act,2001

3. Provisions of the Act • Energy intensive industries/ establishments have been identified and specified as designated consumers of energy. • Establish and prescribe energy consumption norms for designated consumers. A study was sponsored by BEE/GTZ to CPPRI for setting up Norms for Pulp & Paper Sector.

4. Pulp & Paper Industry as Designated Consumer • Any pulp and paper mill having annual energy consumption equal to or more than 30,000 metric tonne of oil equivalent (MTOE) per year. • The limit of annual energy consumption in terms of MTOE shall be reviewed every three years.

5. A high powered technical committee represented by senior officials/executives from ministry, institutions, pulp & paper mills and industry associations, has been constituted for evaluation of energy consumption norms.

6. Factors Affecting Energy Consumption • Diversified technology, • Variety of raw materials, • Fuel characteristics and • Production of different products.

7. Energy Sources and Energy Consumption in Pulp and Paper Industry

8. Export of power

9. Black Liquor & other Fuel, GJ/t outside Battery Limit Internal Fuel Recovery within Battery Limit Steam, GJ/t Paper Machine HSD / F.O., GJ/t Pulping Coal, GJ/t outside Battery Limit Utilities within Battery Limit Purchased Energy Recovery Electricity, kWh/t Paper Machine Refining Bleaching Digester Grid Power, GJ/t Raw material Energy Inputs Energy Consumption Energy Inputs and Consumption in Paper Industry Standards/Norms for Energy Inputs ? Standards/Norms for Energy Consumption ?

10. Energy Inputs and Consumption by Different Paper Mills Energy Inputs (Purchased + Internal Energy) Energy consumed in processes

11. CPPRI Study on Development of Norms

12. CPPRI Study on Development of Norms • Following activities have been completed • Categorization • Design of the data collection format • Design of the Annual reporting format. • Collection and compilation of data • Data analysis for setting up energy consumption norms.

13. Studies conducted during 2004-05 • First Draft norms were proposed in February 2005 based on best practices followed by mills considering 2002-03 as base year. • Calculation of the norms was suggested based on raw materials & products. • Industry raised concerns about the Norms being as very strict and proposed for individual norms.

14. Studies conducted during 2005-06 • industry specific norms were considered and mills were requested to submit data for 3 years. • Based on the analysis of data, two types of norms were proposed in 2006-07. • 1. The norms for the energy input in GJ/t. • 2. Steam & electricity consumption split into • a) Within Battery limit • b) Out side battery limit • The Norms were presented on 31 Jan.2006 at New Delhi

15. Studies conducted during 2006-07 Based on the recommendations of BEE following activities were taken up • CPPRI surveyed the mills and submitted a list to BEE of the mills covered under the ECAct as designated consumers, i.e, mills consuming 30,000 kL oil eq. or more as energy annually • CPPRI team visited the listed plants to discuss and finalize the self declared specific energy consumption for the financial year 2004-05 and 2005-06.

16. Contd.. • Based on the analysis of data, two types of norms were proposed. • The norms for the energy input in GJ/t. • Steam & electricity consumption • The mills were color coded on two scales w.r.t. • Specific energy consumption for products, • Energy inputs and consumption in processes/

17. Studies conducted during 2007-08 & future plans • Survey of Implementation of E.C.Act was conducted • List of Energy Managers appointed by Mills (Designated Consumers) were obtained and submitted to BEE/GTZ • Mills are being asked to submit the details of efforts made to reduce energy consumption during last 3 years and also the proposed plan of next 2 –3 years for energy saving proposals. (The details will be compiled and submitted to BEE after sufficient information is available) • Major groups of paper mills and products were identified.

18. Contd.. • The energy consumption data for 2004-05 and 2005-06 was colleted and weighted average of these two years was taken as the baseline for the mills to reduce energy consumption. • Energy efficiency of the pulp and paper mills was divided into 4 energy bands ranging from most energy efficient to least energy efficient. • The most energy efficient mills (1st Group) and average mills (2nd & 3rd Group) were compared with the international levels. The average mills are where most opportunities for improvement exist, and are identified. • Mills will be given voluntary reduction targets based on the performance of the mill among its category of mills.

19. Recycled fiber and Market Pulp based mills producing Agricultural residue based mills producing Market Pulp based mills producing Wood/Bamboo based mills producing Writing & Printing varieties with & without Deinking Bleached varieties with & without recovery system. Bleached / unbleached varieties Writing & Printing varieties with & without Deinking Newsprint Specialty Paper (Tissue, glassine, Parchment / Tracing, Cigarette, Communication, Décor, Packaging specialty & others) Newsprint with & without deinking Rayon grade pulp Unbleached varieties with & without recovery system Unbleached Kraft Specialty (Tissue etc.) Board Specialty Paper Broad Categorizationof Pulp & Paper mills

20. List of Mills falling under the E.C.Act-2001 Wood Based Mills Agro Based Mills RCF Based Mills Market Pulp Based Mills

21. Energy Consumption Baseline for Pulp & Paper Industry

22. Norms / baseline data are proposed for the mills based on the consumption level of energy as weighted average of year 2004-05 and 05-06. Mills will be given voluntary reduction targets by BEE based on the performance of the mill among its category of mills and mills will be required to voluntarily reduce energy consumption to pre decided level.

23. Two types of norms are proposed for Wood, Agro. RCF and Market Pulp based mills • 1. The norms for the energy input in GJ/t. • 2. Norms for Steam & electricity consumption split into • a) Within Battery limit • b) Out side battery limit • c) Total Consumption

24. Energy Consumption band width of paper industry 9 mills 3 mills 3 mills 4 mills Group 1 Group 2 Group 3 Group 4

25. Wood based mills - Categorization • Writing Printing Grade paper mills. - 8 mills • WPP and Packaging grade paper mills – 4 mills • Mills using wood, non wood and RCF producing WPP, packaging paper & newsprint – 5 mills • Newsprint mill – 1 mill • Rayon grade mill – 2 mills

26. Wood Based Group 1 - Writing Printing Paper Mills

27. 3 mills 3 mills GJ/ t paper 2 mills Group 1 Group 2 Group 3 Energy Consumption band width of Group 1 (Writing Printing Paper Grade Mills) Energy Consumption (GJ/t paper) pattern of WPP Mills

28. Energy Consumption band width of Group 1 (Writing Printing Paper Grade Mills) Group 1 Group 2 Group 3 Group 4 Sp. Steam and Sp. Power Consumption of WPP Mills

29. Wood Based Group-2 : WPP & Packaging Paper Mills

30. Wood Based Group-2 : WPP & Packaging Paper Mills Sp. Energy Consumption (GJ/t paper) pattern of WPP & Packaging Mills

31. Wood Based Group-2 : WPP & Packaging Paper Mills Sp. Steam and Sp. Power Consumption pattern of WPP & Packaging Mills

32. Wood Based Group-3 : WPP with mixed raw materials

33. Wood Based Group-3 : WPP with mixed raw materials Sp. Energy Consumption (GJ/t paper) pattern of WPP & Newsprint with mixed raw materials

34. Wood Based Group-3 : WPP with mixed raw materials Sp. Steam and Power Consumption pattern of WPP & Newsprint with mixed raw materials

35. Wood Based Group-4 : Newsprint Mill

36. Wood Based Group-5 : Rayon Grade Mills

37. Agro Based Mills

38. Agro Based Mills Sp. Steam and Power Consumption pattern of Agro based Mills

39. Recycled Fiber Based Mills

40. Market Pulp Based Mills

41. Conclusions • Mills should initiate voluntary actions under the provisions of the Energy Conservation Act to • achieve the energy efficiency targets, • cost effective production and for • reduction of CO2 emission from the industry