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NCPC-SA: South Africa RECP: A VEHICLE FOR INDUSTRIAL EFFICIENCY
AND COMPETITIVENESS
NCPC-SA PRESENTATION TO:
Parliamentary Committee on Trade &
Industry
19 MARCH 2013
Presentation
Content
• National Context
• The DTI Green Industry Unit
• Salient Features of the Manufacturing Industry
• NCPC-SA Mandate & Core Focus Areas
• Resource Efficiency Programme & Outcomes
• Industrial Energy Efficiency Programme &
Outcomes
• Questions & Answers
1. The IPAP sets out government’s industrial policy
and implementation plans to create critical platforms
that are used as a basis for scaling up key strategic
sectors.
2. Issues of climate change have increasingly moved
‘Green Industries” to the centre of the global stage
in a wide range of multilateral and bilateral fora,
agreements, policy perspectives and programmes
and government is committed to introduce
economic instruments that would support Green
Initiatives.
NATIONAL CONTEXT
The Green Industries Chief Directorate’s main objective is
to promote the industrial development of a new South
African Green Industry Sector, and improve the resource
efficiency (RECP) of existing industries in South Africa
with a strong emphasis on building its productive capacity
in partnership with stakeholders and aligned with the New
Growth Path’s target of 300 000 additional direct jobs by
2020 to green the economy, with 80 000 in manufacturing
and the rest in construction, operations and maintenance
of new environmentally friendly infrastructure
The dti Green Industry
Unit Main Objective
Enablers for Green Economy
• Regulatory framework
• Market-based instruments
• Innovation, science and technology
• Greater localisation and manufacturing
• Investment, finance opportunities and financing
instruments including leveraging of funds
• Availability of skills
• Institutional capabilities and capacity
• Partnerships
The DTI’s Green
industries
Current Focus Areas
• Renewable Energy and Nuclear Energy
• Energy and Resource Efficiency and Cleaner Production
• Waste Management and Recycling
• Water and Waste Water Industries
• Industrial Climate Change Response Measures?
Cleaner production
and climate change
focus…
• NCPC
– Enhancing Competitiveness
– Undertaking an Impact assessment and Strategic Review to achieve a wider reach at lower cost and mitigate against Climate Change
• GHG mitigation analysis for industry
– A comprehensive approach to ensure we realise opportunities, improve competitiveness of existing industries, guide required structural change in a responsible manner and ensure that our energy intensive sectors do not collapse
RECP-MANUFACTURING
Declining Share of
Manufacturing Sector
Contribution to national GDP
0
10
20
30
40
50
60
70
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
% S
ha
re
Source: SARB
Tertiary sector
Secondary sector
(incl. Manufacturing)
Primary sector
(Agriculture & Mining)
• SA economy increasingly
dominated by services-related
sectors - in line with
international trends.
• Share of the manufacturing
sector - the 2nd largest sector
of the economy - decreased
sharply since the early 1990s in
light of globalisation, trade
liberalisation and an
increasingly challenging global
trading environment.
MANUFACTURING SECTOR
IN SOUTH AFRICA…
1. South Africa has a highly established, diversified manufacturing
base able to compete in the global economy;
2. Manufacturing sector provides a locus for stimulating other sectors-
services, and drives employment creation and economic
empowerment
3. In 2008, manufacturing contributed 16.2% of Annual GDP –second
largest contributor to SA economy. In 2011, manufacturing reduced
its contribution to GDP to 14.6%. (SA-the Good News via Buanews,
2012);
4. Dominant manufacturing sectors identified are agroprocessing,
automotive, chemicals, ICT, electronics, metals, textiles, clothing
Manufacturing
5. Value Add in a perpetual decline for the last 9 years
6. Negative Balance of Trade escalating
NCPC-SA MANDATE…
The dti’s industrial sustainability programme for
RECP to enhance manufacturing industry
competitiveness through the mechanism of:
• renewable energy, water, materials and energy
efficiency
• waste management
that potentially contribute to industrial
development, localisation, economic growth and
job creation .
NCPC-SA PROGRAMMES…
ALIGNMENT: KEY FOCUS AREAS
TO STRATEGIC OBJECTIVES…
STRATEGIC OBJECTIVES KEY FOCUS AREAS
• Effectively communicating the
benefits and advantages of
RECP/EE
• Awareness raising workshops
• Build RECP/IEE Capacity and
Capability in South Africa
• Train local experts
• Build Institutional Capacity
• Enhance RECP/IEE knowledge
• Develop Sustainable
Intrapreneurs/Entrepreneurs
• Enhance the competitiveness of
priority sectors identified through
IPAP
• Offer technical assistance
• Facilitate implementation
• Assist with investment
opportunities and linkages to
MCEP and other relevant incentive
programmes
ALIGNMENT: KEY FOCUS AREAS
TO STRATEGIC OBJECTIVES…
STRATEGIC OBJECTIVES
KEY FOCUS AREAS
• Contribute to the shaping of
relevant economic policies around
CSP/RECP and the Green
Economy
• Provide Policy advice
• Assist with the development of
appropriate policy tools and
economic instruments
• Accelerate the uptake of
RECP/IEE practices and increase
the penetration of RECP/IEE
services and offerings;
• Through demonstration projects,
showcase sustainable RECP
successes and outcomes
WHAT IS RESOURCE
EFFICIENCY(RECP)?
• Resource Efficiency can be defined as the efficiency with which
we use energy, water and materials throughout the economy
which is the value added per unit of resource input…
• In an economic sense and for the purposes of of the NCPC-SA
mandate, Resource Efficiency refers only to intermediate goods,
energy, water and materials which aim at improving input-output
relations of these resources in the production process, while
also mitigating environmental impacts caused by the process.
THE TRIPLE BOTTOM LINE…
RECP addresses the three sustainability dimensions individually and
synergistically:
– ECONOMIC: Production Efficiency: optimization of the productive use of
natural resources (materials, energy and water);
– ENVIRONMENTAL: Environmental management: minimization of
impacts on environment and nature through reduction of wastes and
emissions; and
– SOCIAL: Human Development: minimization of risks to people and
communities and support for their development.
Priority Sectors Aligned to
IPAP…
2002 TO 2006
1. Clothing and Textiles
2. Agro-processing
3. Chemicals
Sectors added in 2006
2006 TO 2013
4. Automotives
5. Pulp and Paper
6. Metals and engineering
7. Tourism and Hospitality
8. Built-Environment
9. Mining (IEE only)
Our approach to RECP assessments is
guided by the following key themes
THEMATIC FOCUS…
• Water
• Energy
• Materials
• Waste
WHAT TO LOOK FOR…
Identify all uses of water by
creating a water flow chart
Identify all energy types and
costs
Identify all materials including
hazards and create a material
flow chart
Identify all waste streams by
creating a waste stream flow
chart
OVERCOMING BARRIERS…?
Why RECP: What’s in it for the
Manufacturing Business??
Cost savings through reduced wastage of energy, water and
materials
Improved operating efficiency of the plant
Better product quality and consistency
Recovery of some wasted materials (Reuse)
Possibility to improve the working environment (health and safety)
Improvement of the enterprise’s image
Better compliance with environmental regulations
Cost savings on end-of-pipe waste treatment
New and improved market opportunities
WHAT ARE THE DESIRED
IMPACT AREAS?
• Competitive manufacturing industries
• Company Bottom line returns
• Resource Efficient and productive companies
contributing to low carbon economy
• Business Growth & Sustainability
• Market Access
• Job retention or job creation
How do We Know Real
Benefits Exist through RECP?
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
70 000 000
2003 - 2009 2009 - 2010 2010 - 2011 2011 - 2012
Iden
tifi
ed S
avin
gs (
Ran
ds)
IDENTIFIED SAVINGS SUMMARY 2003 - 2012
Waste management
Material
Water
Energy
Assessments Completed = 107Sites Assesed = 107
Assessments Completed = 68Sites Assesed = 49
Assessments Completed = 98Sites Assesed = 61
Assessments Completed = 150Sites Assesed = 86Total sites Assessed: 303
Total Assessments: 423Total Savings: R 179 378 400
SUCCESSFUL RECP CASE
STUDY OUTCOMES… Example: 4 Small – Medium Chemical companies 5 Medium – Large Textiles, leather & footwear companies
Option DescriptionSaving
(Rand)
Investment
(Rand)
Simple
Payback (Yrs)
Environmental Benefit
(per year)
CO2e
(kg/yr)
Boiler Improvement
i. Steam leaks
ii. Pressure control
iii. Insulation
iv. Boiler feed air control
v. Condensate return
vi. Steam trap maintenance
324 200 126 500 1.0
46 900 kg Low Sulphur
Oil
3 kL/yr heavy fuel oil
750kL Water
158 700
Compressor Control
i. Air leak maintenance
ii. Vairable speed control
iii. Pressure control
iv. Flow control (Accumulator)
177 232 329 975 1.9 267 641kWh 156 982
Energy Management
i. Washbath covers (insulation)
ii. Washbath Insulation
37 295 n/a n/a31 116kWh
303kg LPG32 500
Lighting Retrofitting
i. Replacement of bulbs
ii. Retrofit of Electronic Control Gear
iii. Natural lighting
iv. Task lighting
479 937 753 511 1.6423 695 kWh
1.8kVA154 552
Option DescriptionSaving
(Rand)
Investment
(Rand)
Simple
Payback (Yrs)
Environmental Benefit
(per year)
CO2e
(kg/yr)
Logistics Management
i. Installation of speed governing systems in
vehicles
ii. Eco driving training
46 274 1 000 0.1 4 345L Fuel 11 421
Material Optimisation
i. Overspray reduction (LP/Hi Vol)
ii. Spray booth humidity control
iii. Operator training spraying technique
152 076 202 000 1.32 194L Paint
788L Thinnersn/a
Stenter Control
i. Reduceexhaust air in stenters
ii. Stenter burner cycling (1 x operational, 1 x
standby)
880 000 50 000 0.18250L HFO
30% red HFO
23000
n/a
Raw Materials Waste Management
i. Installation of Bobbin Nose Cone Yarn Guides 10 000 10 000 1.0
500 yarn bobbins
(approx 0.2% of yarn
usage)
n/a
Waste Management
i. Drum Reconditioner pre-delivery inspection
ii. Operator awareness training
22 200 n/a n/a
5% reduction in
hazardous waste
generated
n/a
Solid Waste Management
i. Waste sorting and recovery of useable
material
ii. Negotiation of waste removal price (incl.
recycleable material tariff)
36 000 1 000 <0.1 n/a
Water Management
i. Water efficient showerheads
ii. Tap leakages (i.e. push tap vs twist tap)
iii. Cooling water recovery (closed loop)
21 752 12 000 0.6375kL water
2 555kWh2 940
2 186 966 1 485 986 <1 yr 540 095
SUCCESSFUL RECP CASE STUDY
OUTCOMES…
INTERNSHIP PROGRAMME THAT
PROMOTES GREEN
PRODUCTIVITY...
Purpose of Sustainable Internship Programme:
Integrating talented graduates into the mainstream
economy that combine academic training with “real
world experience” and application through skills and
technology transfer with a specific focus on green
productivity
INTERNSHIP PROGRAMME
OUTCOMES & BENEFITS
Gaining Industry Experience
Employability through green skills opportunity
Resource Efficiency Implementation
Bottom line Savings through green
productivity improvement
Intern
Industrial Energy Efficiency Project Industrial Energy Efficiency
Improvement Project
Industrial Energy Efficiency Project
Project Achievements to date
Mar 2010- Mar 2013
March 2013
Gerswynn Mckuur
29
Industrial Energy Efficiency Project
Why this Project?
30
Project Scope and
Objective
Scope o 4 Year Project: April 2010 – End March 2014
o Target Sectors: Automotive, Agro-Processing, Chemicals and Liquid Fuels, Metals & Engineering and Mining.
Objective To increase energy efficiency in the target industrial sectors,
thereby alleviating the country’s acute power shortage while at the same time improving productivity, competitiveness and reducing CO2 emissions.
Industrial Energy Efficiency Project
Components of the Project
32
Industrial Energy
Efficiency
Effective Policy
Framework
Energy Management
Standards
Capacity Building
Demonstration and
Communication
Industrial Energy Efficiency Project Component 1- Policy Framework
Support an effective national policy framework for implementing and
monitoring industrial energy efficiency in South Africa
Achievement: National Energy Efficiency Strategy (NEES)
reviewed and gazetted.
• NEES Gazetted in November 2012
• Stakeholder Workshop to collect public comments on NEES held
on 24th Jan 2013
• 31 Jan 2013: Closing date for Public Comments on 2nd Review of
NEES
33
Effective Policy
Framework
Energy Management Standard
Industrial Energy Efficiency Project
Component 2- Standards Introduction and Promotion
Supportive standards and capacity in place (compatible with ISO energy management standard)
Achievements:
• SANS/ISO50001 adopted as national Energy Management Standard
• Qualification requirement developed to become SANS/ISO 50001 Lead Auditors
• SANS/ISO 50001 Lead Auditor Training Curriculum developed
• 9 SA delegates registered with SAATCA as SANS/ISO 50001 Lead Auditors
35
Energy Management
Standards
Capacity Building & Training
Industrial Energy Efficiency Project
Component 3 – EnMS and ESO Capacity Building
Programme
A cadre of qualified industrial energy management systems
(EnMS) and system optimisation(ESO) experts available as
technical resource to industry and the country.
Capacity Building
Capacitating
Outcomes
SANS/ISO 50001 published
July 2011.
Lead Auditor Workshop:
October 2012.
SANS 50010: Measurement
and Verification of Energy
Training Outcomes
86 National workshops
1 877 Delegates
31 Qualified Experts
19 National Trainers
Nine ISO 50001 Lead Auditors
Growth of skilled energy consultant base
Legacy of energy systems optimisation capacity in participating companies
Growing industrial sector and company awareness, engagement and dialogue
around energy challenges and solutions.
Industrial Energy Efficiency Project
Component 3 – EnMS and ESO
Capacity Building Programme
As a result of the participation in the Training Programme offered by the project, the 1st group of 7 South African based large industrial companies started EnMS and ESO implementation.
• Toyota (Prospecton)
• Gelvenor Textiles (Durban)
• PPC Lime Acres and De Hoek
• St Gobain (Gyproc, Cape Town)
• Arcelor Mittal (Saldanha Bay)
• SAB Miller (Krugersdorp)
39
Demonstration Plants
Industrial Energy Efficiency Project
Component 4- Auditing, Demonstration and Communication
Piloting/Demonstration Programme
EnMS Implementation Results over 2 years (2011-2012)
Company
Name
Savings
(kWh)
Savings
(ZAR)
tCO2
Emissions
Reduction
Capital
Investment
(ZAR)
Comments
ArcelorMittal 174 002 409 170 300 000 166 519 tbc Mostly No/low cost investment
projects.
Toyota-SA 13 845 056 9 630 962 11 904 4 913 612 Represents 73 energy saving
projects
Gelvenor Textile 1 993 340 1 096 336 1 908 0 Only 3 no cost projects declared.
Saint-Gobain 1 835 832 1 009 706 1 757 0 No cost behaviour changes
excluding on-going water gauge
project.
Total 191 676 637 182 037 004
182 088 5 413 612
Demonstration and
Communication
Industrial Energy Efficiency Project
Component 4- Auditing, Demonstration and
Communication Piloting/Demonstration Programme
23 Medium-Large companies participating in current EnMS implementation
programme
42
Province Company Annualized kWh Saving Payback (Yrs) Period
Eastern Cape XXXXX Foods 2 628 708 1.5 2012/2013
Eastern Cape Automotive Supplier 301 564 0.9 - 2.9 2012/2013
Eastern Cape Automotive Supplier 912 970 0 - 1.2 2012/2013
Eastern Cape XXXXXX Batteries 2 817 649 2.0 - 3.9 2013
Gauteng Automotive Manufacturer 500 000 3.7 2012/2013
Gauteng Automotive Supplier 438 409 0 - 0.2 2012/2013
Gauteng XXXXX Glass Company 1 936 287 0 2013
Western Cape Wine/Distillery Company 70 000 0 2013
Western Cape XXXXX Plastics /Packaging 666 667 1 2013
Western Cape Paper and Pulp 1 456 998 0 2013
Total Energy Saving
Achieved 12 408 252 kWh
SME Energy
Savings Identified
Automotive 35%
Clothing & Textile 6% Agro-processing
18%
Metal Allieds & Engineering
14%
Chemicals, Plastics & Pharmaceuticals
14%
Manufacturing 10%
Printing 1%
Mining 1%
Other
DESIRED OUTCOMES AND IMPACT
OF RECP & IEE PROGRAMMES…
DESIRED OUTCOMES…
Outcomes
Outcomes
Outcomes
• Adopt RECP/IEE
• Understand benefits of RECP/IEE
• Stimulate Green Skills Need
• Competence in RECP
• Adopt a systems approach
• Cost Savings
• Reduce Carbon Emissions
• Resource Optimisation
• Clean Technology Uptake
Aw
are
ne
ss
Ra
isin
g
Cap
acit
y B
uil
din
g
IPA
IMPACT (LONG TERM OUTCOMES)…
Impact
Impact
Impact
• Increase National Efforts in RECP
• Collaborative Initiatives
• Expansion of NCPC-SA Offering
• RECP Clusters
• Recognition of Green Occupations
• Strengthen Expert Database
• Behaviour Changes towards sustainable development
• Creation of Green Jobs
• Enhance Value Addition
• Business Sustainability
• Industrial Competitiveness
• Promote industrial competitiveness & diversification
• Job retention
Aw
are
ne
ss
Ra
isin
g
Cap
acit
y B
uil
din
g
IPA
Energy Management Business Case
48 48
Technical Savings Potential (%)
Sector and Product OECD Countries Developing Countries
Petroleum refineries 10-15 70
Chemical and petrochemical
Steam cracking (excluding feedstock) 20-25 25-30
Ammonia 11 25
Iron and Steel 10 30
Cement 20 25
Pulp and Paper 25 20
Textiles 10 20
Food and beverage 25 40
Other sectors 10-15 25-30
Source: UNIDO 2008 and 2011
Energy Savings
Potential
Relative % of
Turnover
Textile Energy Use
Spinning 34%
Weaving 23%
Wet Processing 38%
Other 5%
Typical Energy Balance in Textiles
Energy Saving
Opportunities
• Motor system optimisation
• Steam system optimisation
• Compressed air system optimisation
• Lighting retrofit
• Removal of water from textile through vacuum impregnation and
vacuum roll extraction
• Efficient drying and settling technologies eg. RF, sieve drum driers
and thermo pack, etc…
• Reduce dye liqour ratios
• Desizing, Scouring and Bleaching process modifications
• Supercritical dyeing techniques
• Ultrasonic assisted wet processing
• Foam technology
• Etc….
Conclusions
• The days of cheap energy are over!
• The textile industry is a significant but low energy efficient sector.
• Energy systems optimisation offers no/low cost energy saving
opportunities beyond which the implementation of best available
technologies can serve to further drive down energy demand.
• Energy consumption patterns vary for different types of units and
different types of products so an important step towards energy
savings is to establish machine-wise and unit-wise energy
consumption indicators (EnPI’s) to enable the evaluation of potential
energy consumption to inform buying decisions.
• Industry data collection remains a challenging task and
benchmarking EnPI’s will serve to attain confluence in product cost
and pricing structures.
National Cleaner Production Centre of South Africa
Pretoria: +27 12 841 3772 * Cape Town: +27 21 658 2776 * Durban: +27 31 242 2365
Email: [email protected]
Websites: www.ncpc.co.za www.iee-sa.co.za
Thank You
National Cleaner Production Centre of South Africa
Pretoria: +27 12 841 3772 * Cape Town: +27 21 658 2776 * Durban: +27 31 242 2365
Email: [email protected]
Websites: www.ncpc.co.za www.iee-sa.co.za
ANY QUESTIONS???