OVERVIEW OF STEEL; PAPER; FOOD AND GARMENT INDUSTRY – ENERGY SAVING POTENTIAL

1. OVERVIEW OF STEEL; PAPER; FOOD AND GARMENT INDUSTRY – ENERGY SAVING POTENTIAL • Nguyen, Thi Ngoc Tho, • Energy Efficiency and Conservation Center of Ho Chi Minh City • January 14, 2013

2. Table of Contents • Energy-using structure • Potential energy saving • Current status of technologies • Business opportunity • Case study

3. Energy-using Structure • Steel Sector consumed 4.67 billion kWh / year - 5.2% of total electricity consumption • Pulp and Paper sector consumed 251.3 million kWh, accounting for 0.29% of the total power consumption Source: Energy Institute Vietnam and Vietnamese economic and financial community – 2012-2010

4. Energy-using Structure in Garment Sector Source: ECC-HCMC

5. Energy-using Structure in Food Sector Electric Consumptions of Equipment Food Sector Source: ECC-HCMC

6. Energy-using Structure in Food Sector Energy using in food sector Source: ECC-HCMC

7. Energy-using Structure in Paper Sector Electric Consumptions of Equipment Paper Sector Source: ECC-HCMC

8. Energy-using Structure in Paper Sector Energy using in paper sector Source: ECC-HCMC

9. Energy-using Structure in Steel Sector Energy using in steel sector Source: ECC-HCMC

10. Potential Energy Saving by Sectors Source: Statistics data from Vietnam National Energy Efficiency Program, 2000

11. Current status of technologies in steel sector - Steelmaking technology: • 95% of steel production facilities are using electric arc furnace technology EAF. • The rest are medium frequency induction furnace IF and blowing oxygen furnace BOF. • Worldwide, the amount of steel produced by the EAF accounts for about 34%, the remaining comes from LD / BOF Source: Vietnam Steel Association, 2012

12. Current status of technologies in steel sector • - Steel rolling technologies are divided into 3 groups: • Group of modern plants, using modern technology and equipment from EU, accounting for about 20% to 25% of the total capacity. • Average group of plants, use of technology and equipment from countries such as China, Taiwan, accounting for about 55% to 65% of the total capacity. • Group of very small-scale plants, using domestic technologies, accounting for 15% to 20% of the total capacity. Source: Vietnam Steel Association, 2012

13. Current status of technologies in steel sector

14. Current status of technologies in steel sector GJ/ton Source: UNIDO – 7/2011 EEI standard from USA Best practice from USA

15. Current status of technologies in pulp and paper sector - The technological level: • 42.5% (based on pulp production) using cold alkaline technology, no chemical recovery; • 24.4% use technology to cook pulp by caustic technology, • the rest is using sulphate technology for pulp cooking with chemical recovery. - Quality of Vietnamese paper products is mainly to meet domestic demand. Source: Vietnam Paper Association 2012

16. Current status of technologies in pulp and paper sector

17. Current status of technologies in food and garment sector • Food Sector • Energy saving potential for food processing industry is up to 20% • EE motors and variable speed drive (VSD) are promising products. • The market size for EE lighting and EE equipment such as freezing machine, ice making machine, boiler…; insulation materials; inverter; heat pump; solar water heater are expected to be high. • Garment Sector • Energy saving potential for garment industry is up to 30% • Energy cost accounts for 10-15% of production cost whereas energy waste is up 20-32% due to old technologies and outdated energy management systems. • EE motors and variable speed drives are promising products as SMEs are willing to invest. • The sewing saver also has a lot of potential

18. Current status of technologies in food sector (beer processing) • These data for 1000 liters of beer • Source: CPEE project – Jan 2012

19. Business opportunity in steel sector The system to supply hot ingost from steelmaking process to roller process

20. Business opportunity in pulp and paper sector High efficiency boiler Automatic control the flow of pulp and steam High efficiency pulp processing

21. Business opportunity in food and garment sector Energy saving Energy saving 30% - 50% 10% -15% Ventilation Fans Fluorescent lamps Energy saving up to Energy saving 20-30% 10% - 40% Boiler System Inverter Source: Meet-Bis

22. Business opportunity in food and garment sector (cont.) Energy saving up to Energy saving up to 35% - 40% 60% - 90% electronic sewing machine Solar Water Heater Fuel saving fuel saving to 60% 15% - 20% Sew saver Heat pump Source: Meet-Bis

23. Business opportunity in food and garment sector (cont.) IQF (individually quick frozen) Freezer Refrigerator with screw compressor Energy saving up to Sewsaver 10 – 15% IQF Energy saving up to 5 – 10%

24. Business opportunity in energy efficiency Energy managerment systemand ISO 50001 Waste water treatment

25. How to develop EE products in Vietnam • Introduce the hi-tech to Vietnam enterprise • Implement pilot projects • Build a financial mechanism for change new technology: ESCO, leasing financial, …. • Cooperate with a Vietnam’s agency for taking the technology transfer to reduce the investment cost

26. Case study in energy efficiency – Hoa phat group • Hoa Phat Group produce coke with capacity is 700,000 ton/year. • In Phase 1: Hoa phat already recovered waste heat for electric gerneration with capacity is 15 MW • in Phase 2: Hoa phat would like to recover the waste heat from coke making with flow is 166,000 Nm3/h and temperature is 950 -1100oC. Electric capacity of phase 2 is 22 MW

27. Case study in energy efficiency – Hoa phat group The chimney of coke making process and the pipe of recovery waste heat The boiler of electric gerneration system

28. Case study in energy efficiency – Hung Tri pulp and paper company • Hung Tri company produce pulp and paper with small scale – 40 ton carton/day • Install a pulp store to reduce energy cost at peak hours

29. Case study in energy efficiency – Hung Tri pulp and paper company • Install a equipment to neutralize the impurities Reduce 30% energy consumption

30. Case Study: energy saving at Hung Long Garment & Service JSC • Company Overview • Hung Long Garment & Services (Hung Long) was established in 2001 with 540 workers for the start. Over 10 years of operation and development, Hung Long now has over 2400 workers with 29 production lines in 10 factories. Its products are mainly exported to USA (70%), Europe (10%), Japan (5%), Korea (5%), and others (10%) • The company’s power consumption is very large, about 270,000 kWh/month , in which lighting systems consumes the most with more than 5400 kinds of bulbs • Energy Saving at Hung Long • Installed 500 power-saving devices for sewing machine system, saving 12.5% on energy cost • Installed condensate recovery pump in the boiler, saving 25% on fuel costs

31. Case Study: Energy saving at Hung Long Garment & Service JSC (Cont.) • Energy Saving at Hung Long (cont.) • Installed elevator system integrated inverter that helps to reduce energy costs by 15% for the elevator system • Invested in 2900 sets of T8 fluorescent lamps with electronic ballasts, saving 18% energy costs for lighting. • Replaced 900 sets of T10 to T5, saving 25% energy cost for lighting • Outputs from Applying Energy Efficiency • Total energy cost reduces 21%, from $180,000/year to $142,000/year • Electrical energy saving: 100 TOE/year • Fuel energy saving: 250 TOE/year

32. Case Study: Energy saving at Hung Long Garment & Service JSC (Cont.) • Energy Saving at Hung Long (cont.) • Installed elevator system integrated inverter that helps to reduce energy costs by 15% for the elevator system • Invested in 2900 sets of T8 fluorescent lamps with electronic ballasts, saving 18% energy costs for lighting. • Replaced 900 sets of T10 to T5, saving 25% energy cost for lighting • Outputs from Applying Energy Efficiency • Total energy cost reduces 21%, from $180,000/year to $142,000/year • From electrical energy saving: reduced 100 CO2e /year • From fuel energy saving: reduced 250 CO2e /year

33. Case Study: Energy saving at Investment Commerce Fisheries Corporation • Company Overview • Founded in 1999, Investment Commerce Fisheries Corporation (Incomfish) specializes in frozen seafood processing with a designed capacity of 15,000 MT a year. Its products are mainly exported to USA, Europe, and Japan • Equipment used in Incomfish • Three IQF lines with a combined capacity of 1,250 kg/hour • Two Contact Freezers with a total capacity of 1,500 kg/batch • Three Air-Blast Freezers with a capacity of 375 kg/bach/each • An Air Blasting Freezer with a capacity of 2,500 kg/batch • A Refrigeration system with a capacity of 3.7 Million kCal/hour • Two Boilers with a total capacity of 1,000 kg/hour • Two Power Generators with a total capacity of 2,500 KVA and other equipments

34. Case Study: Energy saving at Investment Commerce Fisheries Corporation (Cont.) • Energy Saving at Incomfish • Installed 2 inverters for two water cooling pumps => energy saving of 12,000 kWh/year (energy saving 27%). • Installed 2 inverters and 4 motor soft starters for 6 water pumps => energy saving of 13,500 kWh/year (energy saving 41%). • Installed 2 inverters for 4 condenser fans => energy saving of 89,100 kWh/year (energy saving 30%). • Installed solar water heater for the water supplied to the boiler => DO saving of 4%, pay back in 1.2 years. • Other energy saving solutions applied: used T8 Fluorescent lamps with electronic ballasts to replace Incandescent and Halogen lamps, better demand side management etc.