Energy Saving Potentials in

Pulp & Paper Sectorin Nepal

Sector Highlight There are seven Pulp & Paper Industries & majority of

handmade paper units Non- wood based – agri-residue and waste paper are used CME 2006/07 – NSIC 2101 –46 units – employ 2,0354 persons

– Value of output NPR 2.945 B, with input value NPR 1.376 B and VA of NPR 1.569 B

Energy cost 9.86% of output & 18.52% of VA

S. No. Fuel Quantity Value in NPR1 Fire woood MT 816.9 1,576,0002 Charcoal MT 9 83,0003 Diesel lit 495,116 22,912,0004 Petrol lit 6,539 449,0005 Kerosene lit 22,363 1,106,0006 LPG MT 2,950 213,0007 Others 55,985,0008 Electricity kWh 35,594,032 208,308,000

Total 290,632,000

Observations

Electrical as well as thermal energy from rice husk in boiler

Capacitor banks used to improve power factor more than 0.9

Combustion efficiency is not checked for boilers

Steam leakages observed

Insulation not satisfactory

Frequent non-scheduled power cuts result in production loss

High cost of Generated electrical energy

Production & Turnover

S. No. ParticularFiscal Year

2009/10Fiscal Year

2010/11

1 Production Capacity in MT 68,400 68,400

2 Production in MT 32,012 32,810

3Annual Turnover in Million NPR

1,431 1,697

4 Production Share to the Sector 83.33%

Energy and fuel, CO2 & DG

S. No.

Particular Total Quantity Quantity per MT

1 Electrical Energy in MWh 30,759,083 937.49 a. Purchased Electricity 26,027,648 793.28a. DG sets 4,731,435 144.21

2 Thermal Energy in MJ 506,393,723 15,434.00 a. Rice Husk 506,393,723 15,434

3 CO2 generation in kg 46,517,079 1,417.78 a. Purchased Electricity 36,634 1.12a. DG sets 2,636,134 80.35a. Rice Husk 43,844,311 1,336.31

4 Total DG set capacity in KVA 5,100 -a. Diesel consumption liter 983,632 29.98

5 Energy Cost NPR 336,486,308 10,255.60

Energy cost is around 19.83% of the turnover

Saving Potentials

Specific energy consumption is lower – non-wood agro-residue and waste paper as raw materials

saving potentials from ESPS audits,

= 2.49% of electrical + 22.52% of thermal energy

The electrical saving potential will be

= 0.0249*30,759,083 kWh

= 765,901 kWh = 765.901 MWh;

The thermal energy saving potential will be

= 0.2252* 506393723 MJ

= 114,039,866 MJ = 114,040 GJ

Areas of Potential Savings

Improvement of combustion efficiency in

the boiler

Steam distribution system including

leakage control and insulation improvement

Electrical load management