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How much energy is necessary to make 1 ton of building materials?

With the support of The Ministry of Economic Development, Trade and Agriculture of Ukraine, GIZ Project “Advisory Services for Energy Efficiency in Companies” conducted energy audits at the 7 Ukrainian non-metal construction material producing plants and identified the most appropriate energy efficiency measures for thе industry.

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How much energy is necessary to make 1 ton of building materials?

  1. 1. How much energy is necessary to make 1 ton of building materials? Lessons learned from 7 energy audits in Ukrainian non-metal construction materials plants
  2. 2. Published by: Advisory Services for Energy Efficiency in Companies Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) Registered offices: 16b Antonovycha St., 01004, Kyiv, Ukraine Т.: +380 44 594 07 60 https://www.giz.de/ukraine-ua Overall Project Management: Ricardo Külheim Concept and text: Stefan Landauer Data analysis: Pavlo Pertko - ENERGOMANAGEMENT PRO LLC With contribution by: Svitlana Chebotaryova, Alina Rekrutiak, Hanna Bodnar, Anatolii Cherniavskiy Design: Kateryna Yashyna Image credits: https://www.shutterstock.com/ GIZ is responsible for the content of this publication. © GIZ 2020 2 © GIZ Ukraine 2020, outline non-metal construction materials
  3. 3. 3 Contents What is this handout about? GIZ work in Ukraine What is the Advisory Services for Energy Efficiency in Companies project? Challenging economic environment and its impact on energy efficiency What sources of energy are used and in which quantity? Energy use in the non-metal construction materials plants What subsections of the production consume the most energy? How much money is spent on energy in non-metal construction materials plants? What are energy efficiency measures and where is the largest savings potential? Relevant energy efficiency measures What is the CO2eq reduction/investment ratio through the implementation of energy efficiency measures? Energy consumption, potential savings How much energy is used to produce 1 ton of building materials? Take away messages 04 05 06 09 10 12 14 15 16 22 26 27 28 30 © GIZ Ukraine 2020, outline non-metal construction materials
  4. 4. 4 What is this handout about? Dear reader, The non-metal building material-mak- ing industry is an important component in the economy of any country. It makes the resource base for the national building sector and has a material impact on growth rates in other econo- my sectors. The industry covers production of cement, bricks, other walling materials, also ceramic tiles, paving slabs, concrete and concrete frames, thermal insulation and roofing materials and so on. The production is not too capital-intensive and has good access to basic raw materials. This short outline provides insight into the energy consumption, energy costs, energy- saving potential, specific ener- gy-saving measures, and the green- house gas impact of the non-metal construction material-making industry in Ukraine. It reports the results of a series of energy audits carried out by the Deutsche Gesellschaft für Interna- tional Zusammenarbeit (GIZ) GmbH and demonstrates the impact of GIZ projects currently being implemented within the energy efficiency and climate sector in Ukraine. Therefore, the content of this short report will be of interest to CEOs, company owners, managers, and investors in the Ukrainian non-metal construction material-making industry. Relevant to all stakeholders, this outline is not targeted at energy efficiency experts only; hence, the use of technical jargon has been minimized, and complex tech- nical issues are simplified. © GIZ Ukraine 2020, outline non-metal construction materials
  5. 5. 5 The Deutsche Gesellschaft für Interna- tionale Zusammenarbeit (GIZ) GmbH is a German development agency. Active in 120 countries around the world, GIZ is a provider of international cooperation services for sustainable development and international education work and strives towards a more sustainable future. GIZ has over 50 years of experi- ence in a wide variety of areas, including economic development and employ- ment, energy and the environment, and peace and security. GIZ’s diverse exper- tise is in high demand around the globe and continues to collaborate with the German Government, European Union institutions, the United Nations, the private sector and governments of other countries. Besides that, GIZ collaborates with businesses, civic society actors and GIZ work in Ukraine research institutions, fostering interac- tion between development policy and other policy fields and areas of activity. The German Federal Ministry for Economic Cooperation and Develop- ment (BMZ) is GIZ’s main commissioning party. GIZ has been assisting Ukraine since 1993 in its transition to a democratic state based on the rule of law. Currently, 352 national and 53 international employees and 6 development workers are working in the office and on projects. Located in Kyiv, the country office opened in 2009. The Ukrainian-German cooperation currently focuses on good governance, energy efficiency and sustainable economic development. © GIZ Ukraine 2020, outline non-metal construction materials
  6. 6. 6 Economics is the principal driver for industry and, subsequently, the largest incentive for increasing energy efficiency is to lower total operating costs. Fortunately, there are numerous opportunities for increasing efficiency in small- to medium-sized companies. Studies have shown that up to 35% of energy consumption within the entire Ukrainian industry could be reduced in the near term throughcost-effectiveefficiencymeasures. The Federal Ministry for Economic Cooperation and Development of Germany (BMZ) pledged its support for the Ministry for Development of Economy, Trade and Agriculture of Ukraine (MDETA) and has since imple- What is the Advisory Services for Energy Efficiency in Companies project? mented a range of measures to bolster means for improving energy efficiency. One of them is the project Advisory Services for Energy Efficiency in Companies that GIZ has been implementing since 2017, on behalf of the German Government. The project provides direct technical support to Ukrainian industries, which includes conducting energy audits and developing pilot projects, which are specifically tailored to the needs of local industries. The results of these energy audits enable Ukrainian industries to develop technically and economically sound energy efficiency investment measures. SinceOctober2018,ateamofnationaland international certified energy auditors has assessed the level of energy efficiency of 65 industries according to ISO standard 50002, Part 2. This audit phase was completed in July 2019, with a focus on industrial sectors such as bakeries, dairy production, and non-metallic building materials. As a result, 20 companies were selected to be audited for investment gradeaccordingtoISO50002type3,which was concluded in March 2020. were audited according to ISO standard 50002 65 industries © GIZ Ukraine 2020, outline non-metal construction materials
  7. 7. 7 The current outline is a by-product of these activities, taking advantage of assessing 7 non-metal construction material-manufacturing plants, iden- tifying their patterns in the energy use to determine promising energy-saving measures. The outline reveals typical consumption profiles as a first approx- imation, which contributes to a better understanding of energy efficiency in the Ukrainian industrial sectors. In turn, this provides greater comparabil- ity amongst sectors. Subsequently, this document has the potential to stimulate and encourage deci- sion-makers to put energy efficiency in practice. © GIZ Ukraine 2020, outline non-metal construction materials
  8. 8. 8 What is an energy audit according ISO 50002? What is an investment-grade audit? Owners or managers of industrial parks and factories are not always aware of the possibilities for energy efficiency improvements. Conducting an energy audit is the first step to investigate the opportunities for energy savings, priori- tizing projects, tracking progress, and making system adjustments after investments. ISO 50002 specifies the process require- ments for carrying out a comprehen- sive energy audit. It is applicable to all types of establishments and organiza- tions, and all forms of energy and energy use. This standard also specifies the principles of carrying out energy audits, requirements for the common processes during energy audits. An investment-grade audit is the most detailed energy audit. It analyzes the financial aspects of energy savings and the return on investment from potential changes or upgrades. A building opera- tor typically uses the investment-grade audit as a budgeting tool when planning facility upgrades. © GIZ Ukraine 2020, outline non-metal construction materials
  9. 9. 9 Production and distribution volumes in the industry are substantially linked to new development and modernisation of existing housing. Given the building sector stagna- tion in 2018 and 2019, the data from the All-UkrainianAssociationofBuildingMaterial Manufacturers shows a certain decline in production of building material vs 2017. E. g., ceramic brick production dropped by 11% and of concrete, cement and related products,by7%in2018;however,drymortar production grew by 13% in 2018 and has continued with the trend ever since. Green construction and national programmes promoting energy efficiency measures in public and residential buildings remain important drivers of industry development andrequireproductionofenergyefficient Challenging economic environment and its impact on energy efficiency buildingmaterials. According to the State Statistics Service of Ukraine, there are around 9,000 companies in the sector. Physically depreciated and out-of-dateplantandequipmentatmostof themleadstohighlevelsofenergy-intensity of production. Big manufacturers have troubles with maintaining their production capacitiesatproperlevelsandcompensate fixedcostsofelectricityandheatconsump- tionattheirofficeandstoragepremises,still more with absent demand for their products. Innovativetechnologiesandenergyefficien- cy measures are necessary to make enter- prises more competitive. The brochure presents some specific measures aimed at reducingenergyintensityofproduction. © GIZ Ukraine 2020, outline non-metal construction materials
  10. 10. 10 Carbon dioxide (CO2 ) is a colorless gas formed during the combustion of any material containing carbon and important greenhouse gas. Carbon dioxide equivalent CO2 eq is a measure used to compare the emis- sions from various greenhouse gases based upon their global warming potential. For example, the global warming potential for methane over 100 years is 21. This means that emissions of one metric ton of methane equivalent to emis- sions of 21 metric tons of carbon dioxide. What sources of energy are used and in which quantity? The 7 assessed industries consumed between 2 and 65.1 GWh of energy in 2018. The inclusion of both large indus- tries and smaller non-metal construc- tion material manufacturers in the auditing process accounts for the strik- ing difference between the smallest and largest value. The majority of analysed enterprises consume from 50.1 to 65.1 GWh/year. There is a separate group of small consumers, the two enterprises taking 2 and 10 GWh/year respectively. The annual average has been calculated without taking into account the two latter enterprises and found to stand at 56.5 GWh/year (please refer to Fig. 1). © GIZ Ukraine 2020, outline non-metal construction materials
  11. 11. 11 Figure 1, Electricity, natural gas, and coal consumption by each production facility in GWh and emissions in thou- sands of tCO2 eq in 2018 Gigawatt hours, abbreviated as GWh, is a unit of energy repre- senting one billion (1 000 000 000) watt-hours and is equivalent to one million kilowatt-hours. Electricity GWh/year Coal GWh/year Natural gas GWh/year Emissions in thousands tCO2 eq/year Total consumption GWh/year As seen in figure one, each bar stands for an individual production site, revealing its specific annual consumption of electricity (blue), natural gas (red), and coal (yellow) in GWh in 2018. The total energy consumption (black) and carbon dioxide emission in thousands of tons of carbon dioxide is highlighted in green. 1 10.3 0.5 10.8 4.0 2 4.4 45.7 50.1 42.6 3 48.7 5.4 54.1 14.8 4 50.0 8.9 59.0 18.3 5 47.0 7.5 54.5 16.4 6 1.9 0.1 2.0 0.5 7 9.4 55.7 65.1 52.7 Average 31.9 24.6 56.5 21.3 What sources of energy are used and in which quantity? © GIZ Ukraine 2020, outline non-metal construction materials
  12. 12. 12 The next pie chart reveals the share of the main energy sources represented by electricity and natural gas. The chart does not include coal as this carrier was only used by one enterprise as a natural gas alternative in 2018. As Figure 2 shows, the non-metal construction materials industry is highly dependent on natural gas as the prima- ry energy carrier (56.7%) with electricity trailing well behind (43.3%). This is due to the considerable use of natural gas in production processes, e. g., for lining, Figure 2. Shares of electricity and natural gas in 2018 Energy use in the non-metal construction materials plants coking, or drying. Other natural gas consuming processes are steam gener- ation, heating, hot water supply for business needs, etc. Coal is used as a natural gas alternative and therefore has not been included in Fig. 2. Electricity consumption Natural gas consumption 43,3% 56,7% © GIZ Ukraine 2020, outline non-metal construction materials
  13. 13. 13 Energy use in the non-metal construction materials plants Figure 3. Energy consumption in 2018 shares among production processes, infrastructure, and losses Energy losses occur throughout the energy supply and distribution system. Energy is lost in power generation and steam systems, both off-site at the utility and on-site within the plant boundary, due to equipment inefficiency and mechanical and thermal limita- tions. Energy is lost in distribution and transmission systems carry- ing energy to the plant and within the plant boundaries. Losses also occur in energy conversion sys- tems (e.g. heat exchangers, pro- cess heaters, pumps, motors) where efficiencies are thermally or mechanically limited by materi- als of construction and equipment design. Chart three indicates how much energy is consumed by a typical non-metal construction materials producing plant for production, heat- ing, and hot water supply purposes. As it is seen, 84.1% of the energy is consumed by the production process- es with the heating and hot water supply systems using about 3.5% and the remaining 12.4% lost. Energy consumption for heating and hot water supply (HWS) Energy consumption in production processes Energy losses 3,5% 84,1% 12,4% © GIZ Ukraine 2020, outline non-metal construction materials
  14. 14. 38.1% 13.9% 14 Whatsubsectionsoftheproductionconsumethemostenergy? 0 On average, the process of mixing consumes 43.6% of electricity, cranes - 15.4%, furnaces and drying kilns - 13.9%, other consumers - 27.1%, as indicated in figure 4. Maximal and minimal values of electricity consump- tion are found as numeric values. It should be noted that some production equipment had to be included into the "other consumers" category as it was not possible to separate it due to the lack of technical metering systems. Electricity losses have been included here, too. Figure 5 shows the main consumer groups of natural gas used mostly for production purposes (furnaces, drying kilns, etc.), heating, and hot water supply. The group Other сonsumers Figure 4. What are the relevant users of electricity? Figure 5. What are the relevant users of natural gas (coal)? Total consumption of electricity/ natural gas and/or coal (average). Minimum values Maximum values 25% 50% 75% 100% 90% 66% 78% 34% 7% 3% 18% 15% 12% Furnaces and dryers Heating Others 0 20% 40% 60% 20,2% 10.6% 45.8% 20.9% 15.4% 11.5% 32.2% 27.1% 22.2% Furnaces and dryers Mixing Cranes Others mostly includes those that could not be specified, plus losses. The average consumption for furnaces and drying kilns accounts for 78%; heating and hot water supply take 7%; other consumers (losses included) consume 15%. Furnaces and drying kilns have been included in both charts because of some of them using electricity and others, natural gas. 43.6% © GIZ Ukraine 2020, outline non-metal construction materials
  15. 15. 15 Howmuchmoney isspent onenergyinnon-metalconstructionmaterialsplants? Energy costs depend upon the amount of energy consumed, whilst the prevailing energy price scale and fixed costs for the supply installation are subject to fluctuations over time. Typical purchasing prices on electricity and natural gas per consumed MWh for the years 2016 to 2019 are highlighted in table one. While for electricity the average price per MWh had increased from 2100 UAH Figure 6. Purchase costs for electricity and natural gas in 2018 in non-metal construction materials plants in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped in 2018 from 1220 UAH to 690 UAH in 2019. Figure 6. shows the total and the share between costs spent on electricity and natural gas by a typical plant in 2018. That year 28.5 million UAH (60,2% energy costs) were spent on electricity and 18.9 million UAH (39,8%) were used to pay for natural gas. Purchase price of electricity Purchase price of natural gas 60,2% (28.5 million UAH) 39,8% (8.9 million UAH) Table 1, Costs of energy from 2016 to 2019 in UAH/MWh * The price of natural gas has been reduced due to amendments by the Cabinet of Ministers of Ukraine # 2931 1.https://zakon.rada.gov.ua/law s/show/485-2019-%D0%BF. Electricity Year Natural gas 2100 2016 690 2180 2017 1030 2460 2018 1220 2460 2019 690* Coal 750 800 896 893 © GIZ Ukraine 2020, outline non-metal construction materials
  16. 16. 16 What are energy-efficiency measures and where is the largest savings potential? Energy Efficiency Measures (EEMs) are energy-using appliance, equip- ment, control system, or practice whose implementation results in reduced energy use while main- taining a comparable or higher level of service. EEMs decrease the amount of energy needed to pro- vide the same level of comfort or utility (e.g. a heating or cooling system that provides the same comfort with less fuel or electricity; a boiler of comparable size and features that uses less gas). To manage the diversity of potential EEMs, we classified them into the following subgroups of consumers: 2 Heat generation and distribution 3 Compressed air 4 Electrical devices 5 Ventilation and air-conditioning 6 Lighting 7 Production processes 1 Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  17. 17. 17 What are the potential annual energy savings? Figure 7. Respective energy saving areas in the sector The following figure shows potential annual energy savings in MWh arranged in different groups of consumers as an average of the 7 assessed industry plants. The most relevant consumer groups in regard to potential savingsareledbyalargemarginwith(663 MWH/year) of heat generation and distribu- tion, followed by electricity generation and supply(452),compressedair(315),production processes(312),ventilationandair-condition- ing (294), and electric devices (207). Lighting takesthelastplace(11). 663 315 207 294 11 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes 312 Electricity generation and supply 452 © GIZ Ukraine 2020, outline non-metal construction materials
  18. 18. 18 Whataretherelevantareasofcostsavingsthe non-metalconstructionmaterialsindustry? The next chart indicates potential yearly cost savings, achieved when implementing EEMs. Due to energy costs being directly related to energy consumption and places in which the most energy losses are sustained, the ranking is led by heat generation and Figure 8. What are the relevant areas of energy cost savings in the non-metal construction materials industry? 1002 256 308 466 54 382 581 distribution (1,002 thousand UAH/year) followed by electricity generation and supply (581), ventilation and air condi- tioning (466). Next are the production processes (382), electric devices (308), compressed air (256) and again lighting takes the last place (54). Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  19. 19. 19 What are the investment opportunities for implementing proposed energy saving measures? Figure 9. presents the potential investment opportunities for EEMs within the energy audit for each consumer subgroup. The consumer group comprising heat generation and distribution (1,195 UAH) leads by the figure of total required investments; it is followed by ventilation and air conditioning (420), electricity generation and supply (375), electric devices (364), production processes (316), compressed air (103) and lighting (24). Figure 9. What are the investment opportunities for implementing proposed energy saving measures? 1195 103 364 420 24 316 375 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  20. 20. Human-induced warming reached approximately 1°C (likely between 0.8°C and 1.2°C) above pre-indus- trial levels in 2017, increasing at 0.2°C (likely between 0.1°C and 0.3°C) per decade (high confi- dence).1 Global warming has brought about possibly irreversible alterations to Earth's geologi- cal, biological and ecological systems. These changes have led to the emergence of large- scale environmental hazards to human health, such as extreme weather, ozone deple- tion, increased danger of wild- land fires, loss of biodiversity, stresses to food-producing systems, and the global spread of infectious diseases. In addi- tion, climate changes are estimated to cause over 150,000 deaths annually.2 20 How can your industry contribute to mitigating climate change? The implementation of energy efficiency measures will strengthen your competitiveness as it reduces your operational costs. In the same breath, it addresses another, all over- laying and pressing challenge: Climate change. The rise in global average tem- perature is attributed to an increase in greenhouse gas emissions. There is a link between global temperatures, greenhouse gas concentrations – especially CO2 – and its emission due to the use of fossil energy sources in industries. 1. Global Warming of 1.5 ºC, IPCC, March 2020, https://www.ipcc.ch/sr15/ 2. Effects of global warming on humans, Wikipedia, March 2020, https://en.wikipedia.org/wiki/Effects_of_global_w arming_on_humans © GIZ Ukraine 2020, outline non-metal construction materials
  21. 21. 21 How can your industry contribute to mitigating climate change? Figure 10. Emission reductions of tCO2 eq/year, implementing energy saving-measures recommended in the energy audit report Figure 10 shows the potential tCO2 eq reduction if the proposed energy-saving measures were implemented in a typical non-metal construction material produc- ing plant. The most significant potentials 165 206 189 96 10 102 83 to reduce CO2 eq emission are realized through the implementation of EEMs in compressed air systems (206 tCO2 eq/- year), electric motors (189), boiler house and heat distribution (165), and produc- tion processes (102) followed by heating, ventilation and air conditioning (96), electricity generation and distribution (83), and lighting (10). Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes Electricity generation and supply © GIZ Ukraine 2020, outline non-metal construction materials
  22. 22. Relevant energy efficiency measures Every industrial non-metal construc- tion materials manufactory is unique and requires tailored approaches to improve its energy efficiency. Never- theless, the assessment of the 7 non-metal construction materials producing plants revealed clear patterns regarding promising improvements. The most relevant energy-saving measures in terms of investment opportunities, energy savings, costs savings, payback period, and savings of tCO2 eq are presented in Table 2. 22 © GIZ Ukraine 2020, outline non-metal construction materials
  23. 23. 23 Table 2 Сapital expenditures thousand UAH Savings thousand UAH Energy savings MWh average Simple payback period years Savings tCO2 eq* Thermal insulation of pipelines at boiler house 1.6 1.9 5.5 0.9 1.1 Decentralization of compressed air system 89 38 66 1.0 60 Heat recovery from compressors 143 46 443 2.7 120 Thermal insulation of buildings 277 107 69 3.6 14 Modernization of the lighting system 24 27 11 1.3 10 Thermal insulation of production equipment 265 306 333 1.3 75 Optimization of air recirculation in tunnel drying furnaces 1550 1387 477 1.0 126 Typical EEMs in in the non-metal construction materials industry * Emission factor per 1 MWh of electricity - 0.912 tCO2 eq; per 1 MWh of natural gas - 0.202 tCO2 eq; per 1 MWh of coal- 0.354 tCO2 eq. https://publications.jrc.ec.europa.eu/repository/bitstream/JRC90405/part%20ii%20ru%20new%20pubsy%20.pdf © GIZ Ukraine 2020, outline non-metal construction materials
  24. 24. Table 3. Energy efficiency measures developed in the framework of energy audits, stratified by cost payback period 24 As it is seen from Table 3, a considerable proportion of suggested EEMs has a repayment period of up to two years. of the energy savings can be reached by implementing energy-saving measures with a simple cost recovery period below 2 years 82.6% < 2 years 2 to 5 years > 5 years Number of EEMs Simple Payback period Energy Savings MWh/year Share of Energy savings Emission reduction tCO2 eq 4-5 1,705 82.6% 623 1 143 6.9% 30 0-1 217 10.5% 46 © GIZ Ukraine 2020, outline non-metal construction materials
  25. 25. In a typical non-metal building materi- als production, the implementation of three to four energy saving measures with investment costs of below 60,000 UAH each would contribute to 17.8% total potential energy savings identi- fied during the energy audit. One to three measures with investment cost from 60,000 UAH to 300,000 UAH each would bring a potential saving of 7.3% while two to three measures with investment cost in excess of 300,000 UAH each could save 74.9% ener- gy-saving potential. Table 4. Energy-saving measures developed in the context of cost-based energy audits 25 EEM with investment cost < 60,000 UAH EEM with investment cost from 60,000 – 300,000 UAH EEM with investment cost > 300,000 UAH Number of EEMs Energy Savings MWh/year Share Energy savings Emission reduction tCO2 eq EEM 3-4 367.3 17.8% 240.2 Electricity 0-1 69.4 3.4% 77.7 Natural Gas (Coal) 2-3 298.0 14.4% 162.5 1-2 151.8 7.3% 135.4 0-1 102.9 5.0% 93.8 0-1 48.9 2.4% 41.5 2-3 1546.4 74.9% 324.1 0-1 3.0 0.2% 2.7 1-2 1543.4 74.7% 321.4 © GIZ Ukraine 2020, outline non-metal construction materials EEM Electricity Natural Gas (Coal) EEM Electricity Natural Gas (Coal)
  26. 26. Or, in other words, what measures have the greatest impact and lead to the highest reduction of greenhouse gas emissions in relation to specific investment? Recovery of heat from compressors (840g CO2 eq/year per 1 UAH invested) is the most promising emission-reduc- ing measure; among other potential measures are: insulation of pipes at boiler plants (677), compressor equip- ment decentralization and lighting modernisation (439 each), thermal insulation of production equipment (282), optimisation of air recirculation in tunnel drying ovens (81) and thermal modernisation of premises (51). What is the CO2 eq reduction/investment ratio through the implementation of EEMs? 26 Figure 11. Reduction emission grams of CO2 eq/year and invested UAH Insulation of pipes at boiler house 677 Decentralization compressed air system 439 Heat recovery from compressors 840 Thermal modernization of building 51 Optimization of air recircula- tion in tunnel drying tunnel drying furnaces 81 Lighting modernization 439 Thermal insulation of produc- tion equipment 282 © GIZ Ukraine 2020, outline non-metal construction materials
  27. 27. Energy consumption, potential savings The figure above shows the proportions among energy consumption and the potential savings if the proposed ener- gy-saving measures were implemented. Theenterprisesofthenon-metalbuilding material industry consume from 2 to 65.1 27 Typical consumption, GWh/year Saving through implementation of suggested measures, GWh/year Potential savings, GWh/year Figure 12. What are typical consumptions, potential savings, and savings through the implementation of suggested measures? 1 2 3 4 5 6 7 Average GWh/year. The average consumption stands at 56.5 GWh/year. The average consumption rate has been calculated without regard to enterprises consuming less than 50.1 GWh/year. The total energy saving potential averaging to 13.5 GWh/- 10.8 3.2 3.8 50.1 1.3 12.5 54.1 3.1 13.5 59.0 3.1 14.7 54.5 1.7 13.6 2.0 0.44 0.5 65.1 0.1 13.0 56.5 1.82 13.5 © GIZ Ukraine 2020, outline non-metal construction materials year has been marked in yellow, while energy-savings attainable with imple- mentation of the measures suggested in energy audit reports (1.82 GWh/year average) have been coded in red.
  28. 28. Examples of EnPIs are energy consumption per time, energy con- sumption per unit of production, and multi-variable models. The values presented in Fig. 13 should be construed as a rough reference not directly comparable due to the different product range, product mix and production processes in the industry. Still, they can serve as stimulus for corporate managers to develop their own specific set of EnPIs. How much energy is used to produce 1 ton of building materials? 28 To answer the question, we will need a definition from DSTU ISO 50001:2018, namely, the one of energy performance. According to the ISO 50001 standard, “energy performance is the measur- able result related to energy efficien- cy, energy use, and energy consump- tion.” The energy management sys- tem performance can be measured using Key Performance Indicators (EnPIs). “Energy performance indica- tor is a quantitative value or measure of energy performance, as defined by theorganization.”Itisimportanttoset appropriate EnPIs for monitoring and measuring the energy performance because they show how well the system is functioning. © GIZ Ukraine 2020, outline non-metal construction materials
  29. 29. How much energy is used to produce 1 ton of building materials? The next chart indicates the energy consumption per construction materials produced. Figure 13. Energy consumption in kWh per 1 ton of non-metal constuction materials produced (2018). 29 In 2018, the specific energy consumption of the seven assessed plants ranged from 44 to 467 kWh/ton with an average of 235 kWh/ton. 100 200 300 400 500 84 44 300 178 467 223 350 235 1 2 3 4 5 6 7 0 © GIZ Ukraine 2020, outline non-metal construction materials
  30. 30. Take away messages 30 - The total annual energy consump- tion of the 7 assessed non-metal construction material producing plants in 2018 ranged from 2.0 to 65.1 GWh/year with the average value of 56.5 GWh/year. The non-metal const- ruction material industry highly depends on natural gas as energy source, with 56.7% of energy coming from gas as opposed to 43.3%comingfromelectric- ity. The main electricity consumers are: process of mixing (43.6%); furnac- es and drying kilns (13.9%); cranes (15.4%); other equipment (27.1%). The other consumers mostly include those that could not be specified, plus elec- tricity losses. - While for electricity the average price per MWh increased from 2100 UAH in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped from 1220 UAH in 2018 to 690 UAH in 2019. A typical non-metal construc- tion material producing plant spent in 2018 28.5 million UAH Potential annual cost savings with suggested EEMs based on energy auditresultsare: heatgenerationand Consumer groups promising in terms of energy saving include: heat generation and distribution (663 MWh/year) followed by elec- tricity generation and supply (452), compressed air (315), pro- duction processes (312), ventila- tion, and air conditioning (294), and electric drives (28). Lighting ranks the last (11). - 84.1% of the energy consumption can be asso- ciated with the production processes. The heating systems and hot water supply take about 3.5% and the remaining 12.4% are counted as losses. The principal consumers of natural gas and coal are: furnaces and drying kilns (78%); heating and hot water supply (7%); other consum- ers, incl. losses (15%). 43.3% 56.7% 84.1% 12.4% 3.5% 78% 7% 15% 60.2 39.8 % 29.4 20 14 13 9 14 0.5 % © GIZ Ukraine 2020, outline non-metal construction materials (60.2% of the energy costs) on electricity, and 18.9 million UAH (39.8%) on natural gas. Cost of coal has not been included as it was only used by one enterprise as a natural gas alternative.
  31. 31. 31 82.6% of energy savings can be reached by implementing energy-saving measures with a payback period of less than 2 years. In 2018, the specific energy consumption of production process- es at the seven assessed plants ranged from 44 to 467 kWh/ton with an average of 235 kWh/ton. In a typical non-metal building materials production, the implemen- tation of three to four energy saving measures with investment costs of below 60,000 UAH each would contribute to 17.8% total potential energy savings identified during the energy audit. One to three measures with investment cost from 60,000 UAH to 300,000 UAH each would bring a potential saving of 7.3% while two to three measures with investment cost in excess of 300,000 UAH each could save 74.9% energy-saving potential. Energyefficiencymeasurespromis- ing as per their repayment period include:thermalinsulationofpipelinesat boiler plants (costs recovered in 0.9 years), compressor equipment decen- tralization, and optimization of air recir- culationintunneldryingfurnaces(1). 82.6% According to the total amount of investments, EEMs are distributed asfollows:heat generation and distri- bution (1,195 UAH), heating, ventilation and air conditioning (420), electricity generation and distribution (375), elec- tric motors (364), production process- es (316), compressed air systems (103) and lighting (24). 33 19 15 13 10 8 2 % 43 15 13 13 11 4 1 % 24 22 19 12 10 11 1 % 74.9 17.8 7.3 % © GIZ Ukraine 2020, outline non-metal construction materials distribution (1,002 thousand UAH/year) followed by electricity generation and supply (581), and ventilation, and ventila- tion and air-conditioning (466). Next are the production processes (382), electric motors (308), compressed air systems (256)withlightingbeingonthelastplace again(54). Significant potentials to reduce tCO2eq emissioncan beachieved through the implementation of energy efficiency measures in the compressed air systems (206 tCO2eq/year), electric motors (189), boiler houses and heat distribution (165) and production processes (102) followed by heating, ventilation and air conditioning (96), electricity generation and distribution (83) and lighting (10).
  32. 32. A small selection of energy-saving actions 1 Turn-off campaigns for conveyors (optimization of conveyor operation). 2 Optimized operation procedures for main equipment (e.g., furnaces, drying kilns, mills, mixers, cranes). 3 Compressed air management practices. 4 More efficient air compressors including variable speed drive units. 5 Surveying of compressed air systems to identify and eliminate leaks. 6 Heat recovery from production equipment. 7 High-efficiency lighting applications – the installation of T5 fluorescent high-frequency (or LED) systems in production areas. 8 Occupancy control of lights in lower use areas such as offices, meeting rooms, stores, and plant rooms. 9 Energy performance monitoring and targeting programs. 10 Improved insulation of the main production equipment (like furnaces and drying kilns). 11 Reducing the amount of air entering dispatch areas – by improving seals and air curtains. 12 Space heating control improvements – office wet systems temperature compensation and boiler optimization; process area convector heater advanced controls for convection heaters in the production areas. 13 Using frequency-controlled actuators (FCAs). 14 Improved insulation of heat distribution lines. 15 Energy-saving and energy efficiency awareness-raising campaigns for the staff and other stakeholders.

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