A tool for creating energy market scenarios for evaluation of investments in energy intensive industry

The energy intensive industry can be a major contributor to CO₂ emissions reduction, provided that appropriate investments are made. To assess profitability and net CO₂ emissions reduction potential of such investments, predictions about future energy market conditions are needed. Energy market scenarios can be used to reflect different possible future energy market conditions. This paper presents a tool for creating consistent energy market scenarios adapted for evaluation of energy related investments in energy intensive industrial processes. Required user inputs include fossil fuel prices and costs associated with policy instruments, and the outputs are energy market prices and CO₂ consequences of import/export of different energy streams (e.g. electric power and biomass fuel) from an industrial process site. The paper also presents four energy market scenarios for the medium-term future (i.e. around 2020) created using the tool.     

The relationship between energy and production: Evidence from Turkish manufacturing industry

This paper investigates the relationship between energy and production at the industry level in an emerging market, Turkey, in a multivariate framework. The electricity consumption and value added relation is examined in the Turkish manufacturing industry, while also accounting for labor and fixed investment. We find that labor, fixed investment, electricity consumption, and value added are related via three cointegrating vectors. The VEC results indicate uni-directional causality running from electricity consumption to value added. Generalized impulse response and variance decomposition analyses confirm these results. Thus, energy input appears to be closely related to production. Hence, energy saving technologies and increased energy efficiency may increase the growth in manufacturing value added.     

Utilization of secondary energy resources in chemical industry

The evaluation of chemical-technological processes is necessary from the point of view of raw-material use and energy efficiency. The development of new technological designs for energy utilization within the technological process is necessary. Often energy utilization requires modern equipment. A new profession must be created of industrial power engineering: power engineering for technological processes. This new profession should improve technological designs, not only for better energy utilization but also for construction of equipment for energy utilization. Often an increase in energy efficiency of technological processes requires higher investment cost, therefore economic evaluation is necessary. Several concrete examples (atmospheric crude oil distillation, new technological process NIVOL, new reesterification reactor, distillation column with tensile-metal-packing, hydrogen production by mazout gasification with oxygen and steam, propane-butane mixture production) demonstrate that chemical-technological research and machinery development of new chemical apparatus is a modern way to the utilization of secondary energy resources in the chemical industry.     

An econometric analysis of energy input–output in Turkish agriculture

This study analyzes energy use and investigates influences of energy inputs and energy forms on output levels in Turkish agriculture during the period 1975–2000. The output level was calculated in the form of annual grain equivalent at aggregate level for 104 agricultural commodities except livestock products. Output level was specified as a function of total physical, fertilizer and seed energy, and ordinary least squares was employed to estimate equation parameters. The results show that total energy input has increased from 19.6 GJ/ha in 1975 to 45.7 GJ/ha in 2000, whereas total output energy has risen from 27.1 GJ/ha to a level of 39.1 GJ/ha. Energy efficiency indicators, input–output ratio, energy productivity and net energy have declined over the examined period. Total physical and fertilizer energy, particularly nitrogen, significantly contributed to output level with elasticities of 0.24 and 0.14, respectively. The results also revealed that non-renewable, direct and indirect energy forms had a positive impact on output level. Moreover, Turkish agriculture has experienced a substantial increase in non-renewable energy use. This inefficient energy use pattern in the Turkish agriculture can create some environmental problems such as increase in global warming, CO₂ emissions, and non-sustainability. Thus, policy makers should undertake new policy tools to ensure sustainability and efficient energy use.     

An integrated DEA PCA numerical taxonomy approach for energy efficiency assessment and consumption optimization in energy intensive manufacturing sectors

This paper introduces an integrated approach based on data envelopment analysis (DEA), principal component analysis (PCA) and numerical taxonomy (NT) for total energy efficiency assessment and optimization in energy intensive manufacturing sectors. Total energy efficiency assessment and optimization of the proposed approach considers structural indicators in addition conventional consumption and manufacturing sector output indicators. The validity of the DEA model is verified and validated by PCA and NT through Spearman correlation experiment. Moreover, the proposed approach uses the measure-specific super-efficiency DEA model for sensitivity analysis to determine the critical energy carriers. Four energy intensive manufacturing sectors are discussed in this paper: iron and steel, pulp and paper, petroleum refining and cement manufacturing sectors. To show superiority and applicability, the proposed approach has been applied to refinery sub-sectors of some OECD (Organization for Economic Cooperation and Development) countries. This study has several unique features which are: (1) a total approach which considers structural indicators in addition to conventional energy efficiency indicators; (2) a verification and validation mechanism for DEA by PCA and NT and (3) utilization of DEA for total energy efficiency assessment and consumption optimization of energy intensive manufacturing sectors.     

Management of natural gas resources and search for alternative renewable energy resources: A case study of Pakistan

Energy usage in Pakistan has increased rapidly in past few years due to increase in economic growth. Inadequate and inconsistent supply of energy has created pressure on the industrial and commercial sectors of Pakistan and has also affected environment. Demand has already exceeded supply and load shedding has become common phenomenon. Due to excessive consumption of energy resources it would become difficult to meet future energy demands. This necessitates proper management of existing and exploration of new energy resources. Energy resource management is highly dependent on the supply and demand pattern. This paper highlights the future demands, production and supply of energy produced from natural gas based on economic and environmental constraints in Pakistan with special emphasis on management of natural gas. An attempt has been made by proposing a suitable course of action to meet the rising gas demand. A mechanism has been proposed to evaluate Pakistan's future gas demand through quantitative analysis of base, worst and best/chosen option. CO₂ emission for all cases has also been evaluated. The potential, constraints and possible solutions to develop alternative renewable energy resources in the country have also been discussed. This work will be fruitful for the decision makers responsible for energy planning of the country. This work is not only helpful for Pakistan but is equally important to other developing countries to manage their energy resources.     

服务创新四维度模型在制造业中的应用

鉴于服务和服务创新在当今市场竞争中的重要性,对服务创新四维度模型应用于制造业的可行性、必要性进行了分析,并结合制造业的特性对该模型进行了修正,使其能应用于制造业企业,提高企业的竞争力。     

Current situation of energy consumption and measures taken for energy saving in the iron and steel industry in China

A survey of the key issues associated with the development in the Chinese iron and steel industry and current situations of energy consumption are described in this paper. The apparent production of crude steel in China expanded to 418.78 million tonnes in 2006, which was about 34% share of the world steel production. The iron and steel industry in China is still one of the major high energy consumption and high pollution industries, which accounts for the consumption of about 15.2% of the national total energy, and generation of 14% of the national total wastewater and waste gas and 6% of the total solid waste materials. The average energy consumption per unit of steel is about 20% higher than that of other advanced countries due to its low energy utilization efficiency. However, the energy efficiency of the iron and steel industry in China has made significant improvement in the past few years and significant energy savings will be achieved in the future by optimizing end-use energy utilization. Finally, some measures for the industry in terms of the economic policy of China's 11th five-year plan are also presented.     

A comparative study of energy consumption and efficiency of Japanese and Chinese manufacturing industry

The industrial sector consumes about 50% of the world׳s delivered energy and thus has a large impact on the world׳s energy production and consumption. Japan is one of the leading countries in industrial efficiency while China is the world׳s largest industrial energy consumer. This study analyzes the energy consumption and efficiency of the Japanese and Chinese manufacturing industry. Analysis shows that the energy intensity of both Japanese and Chinese manufacturing industry has decreased significantly. Decomposition analysis shows that the efficiency effect played an important role in reducing energy intensity; improvement of the energy efficiency of both Japanese and Chinese manufacturing industry showed a trend of exponential decay. Structural effect significantly reduced the energy intensity of the Japanese manufacturing industry while having a relatively small influence on the energy intensity of the Chinese manufacturing industry. Our analysis also shows a strong association of industrial energy efficiency improvement with energy policies, highlighting that energy efficiency policies can play an important role in the reduction of industrial energy intensity. The results of this study also underscore the important, yet very challenging, task of achieving structural change to further improve efficiency.     

Retrospective and prospective decomposition analysis of Chinese manufacturing energy use and policy implications

AimsThe industrial sector dominates the China's total energy consumption, accounting for about 70% of energy use in 2010. Hence, this study aims to investigate the development path of China's industrial sector which will greatly affect future energy demand and dynamics of not only China, but the entire world.ScopeThis study analyzes energy use and the economic structure of the Chinese manufacturing sector. The retrospective (1995–2010) and prospective (2010–2020) decomposition analyses are conducted for manufacturing sectors in order to show how different factors (production growth, structural change, and energy intensity change) influenced industrial energy use trends in China over the last 15 years and how they will do so up to 2020.ConclusionsThe forward looking (prospective) decomposition analyses are conducted for three different scenarios. The scenario analysis indicates that if China wants to realize structural change in the manufacturing sector by shifting from energy-intensive and polluting industries to less energy-intensive industries, the value added average annual growth rates (AAGRs) to 2015 and 2020 should be more in line with those shown in scenario 3. The assumed value added AAGRs for scenario 3 are relatively realistic and are informed by possible growth that is foreseen for each subsector.     

The status of energy conservation in Taiwan's cement industry

The cement industry represents one of the most energy intensive sectors in Taiwan. Energy audits are the direct tools which are employed to help reduce energy consumption. The objectives of energy audits are to establish energy audit systems, provide on-site energy audit service and reduce production cost. This study summarized the energy savings implemented in Taiwan's cement industry; the data were obtained from the on-line Energy Declaration System in 2010. The total implemented energy savings amounted to 68,512 kilo liter of crude oil equivalent (KLOE). The energy audit group audited seven Taiwanese cement plants in 2011 and revealed an energy saving potential of 2571.6 MWh of electricity and 1002.8 KLOE of thermal energy. The total potential energy saving was 1708.5 KL of crude oil equivalent (KLOE), equivalent to a 4560 t reduction in CO₂ emissions, representing the annual CO₂ absorption capacity of a 122 ha forest plantation.     

Assessment of utilization of wind energy resources in Nigeria

The study critically reviews the prospects and challenges of utilizing wind energy resources for power generation in Nigeria. The various initiatives by governments and researchers were surveyed and the nation is found to sit in the midst of enormous potential for wind harvest for power generation. The far northern states, the mountainous regions and different places of the central and south-eastern states were identified as good areas for wind harvest together with the offshore areas spanning from Lagos through Ondo, Ogun, Cross-Rivers to Rivers states along the Atlantic Ocean in the south–south. Despite this great potential and huge prospect, the country is found to still suffer from serious energy crises due to her over dependence on hydropower which also is susceptible to seasonal variation in the amount of water levels at dams. There is yet to be committed wind energy project for power generation on-going in the country. Several challenges bedeviling the development and utilization of wind energy resources were identified and suggestions highlighted to help pull the nation out of this lingering energy crisis.     

Assessing of energy policies based on Turkish agriculture:: current status and some implications

In this study, the current energy status of Turkey and the effects of national energy policies on Turkish agricultural support policies are discussed for both current and future requirements. Turkey is an energy-importing country producing 30 mtoe (million tons of oil equivalent) energy but consuming 80 mtoe. The energy import ratio of Turkey is 65–70% and the majority of this import is based on petroleum and natural gas. Furthermore, while world energy demand increases by 1.8% annually, Turkey’s energy demand increases by about 8%. Although energy consumption in agriculture is much lower than the other sectors in Turkey, energy use as both input and output of agricultural sector is a very important issue due to its large agricultural potential and rural area. Total agricultural land area is 27.8 million hectares and about 66.5% of this area is devoted for cereal production. On the other hand, Turkey has over 4 million agricultural farm holdings of which 70–75% is engaged in cereal production. Machinery expenses, mainly diesel, constitute 30–50% of total variable expenses in cereal production costs. It is observed that energy policies pursued in agriculture have been directly affected by diesel prices in Turkey. Therefore, support policy tools for using diesel and electricity in agriculture are being pursued by the Turkish government.     

Reviewing optimisation criteria for energy systems analyses of renewable energy integration

The utilisation of fluctuating renewable energy sources is increasing world-wide; however, so is the concern about how to integrate these resources into the energy systems. The design of optimal energy resource mixes in climate change mitigation actions is a challenge faced in many places. This optimisation may be implemented according to economic objectives or with a focus on techno-operational aims and within these two main groupings, several different criteria may potentially be applied to the design process.In this article, a series of optimisation criteria are reviewed and subsequently applied to an energy system model of Western Denmark in an analysis of how to use heat pumps for the integration of wind power.The analyses demonstrate that the fact whether the system in question is modelled as operated in island mode or not has a large impact on the definition of the optimal wind power level. If energy savings and CO₂ emission reductions beyond the system boundary are not included in the analysis, then it is either not feasible to expand wind power to a high degree or it is conversely more feasible to install relocation technologies that can utilise any excess production. The analyses also demonstrate that different optimisation criteria render different optimal designs.     

Assessment of energy efficiency performance measures in industry and their application for policy

Energy efficiency improvement is a basic yet significant way of addressing both energy security and environment concerns. There are various measures of industrial energy efficiency performance, with different purposes and applications. This paper explores different ways to measure energy efficiency performance (MEEP): absolute energy consumption, energy intensity, diffusion of specific energy-saving technology and thermal efficiency. It discusses their advantages and disadvantages, and roles within policy frameworks. Policy makers should consider the suitability of MEEP based on criteria such as reliability, feasibility and verifiability. The limitations of both energy intensity and necessity of broader all-inclusive indicators and technology diffusion indicators are also discussed. A case study on Japan's iron and steel industry illustrates the critical role of proper boundary definitions for a meaningful assessment of energy efficiency in industry. Depending on the boundaries set for the analysis, the energy consumption per ton of crude steel ranges from 16 to 21 GJ. This paper stresses the importance of a proper understanding of various methods to assess energy efficiency, and the linkage with policy objectives and frameworks. Possible next steps for improvement of MEEP, such as database development, were also discussed.     

Application of absorption heat transformers for energy conservation in the oleochemical industry

A comprehensive energy mapping of an oleochemical plant, for production of technical fatty acids and refined glycerol, was performed. Saturated water vapour is currently produced at 100°C from four flash vessels used to depressurize condensate streams emerging from different processing units in the plant. This vapour has a heat content of 314 kW and is currently condensed in a dump condenser and discharged. Incorporating an absorption heat transformer system would enable the recovery of almost half of this energy and a temperature lift of 34°C can be achieved. The heat transformer system delivers steam at 3 bar which can be fully reused in the plant. An economic analysis resulted in a pay-off period of less than 18 months based on a steam cost of 14.25 $/GJ, an installed equipment cost of 535 $/kW, an annual operation time of 7200 h, and a heat transformer efficiency of 0.45. However, the pay-off period depends on the estimated steam cost and heat transformer efficiency, and also on how much of the existing equipment can be utilized as components in the heat transformer. Installing the heat transformer would require minimum changes in the existing plant.     

Sustainability estimation of energy system options that use gas and renewable resources for domestic hot water production

Two possible substitutions for fossil fuel used in heat production are biomass and solar energy. This paper presents an evaluation of various energy sources for hot water production in a heating plant. The heating plant was situated in one of the largest municipalities in the city of Belgrade, Serbia. It produces and delivers domestic hot water and energy for heating to approximately 17,000 households. It is possible to use of using renewable energy instead of fossil fuel for producing the thermal energy for the supply of domestic hot water. Hence, in this paper, an evaluation of the sustainability of different energy options for obtaining thermal energy was considered: 1) from gas combustion; 2) from gas combustion and solar collection 3) from biomass combustion 4) from gas and biomass combustion, and 5) from gas and biomass combustion and solar collection. To compare the different energy systems, the method of multi-criteria analysis was utilised. This method integrates various multi-dimensional criteria and provides an efficient method of estimating the sustainability of complex systems. The obtained results were compared by the General Index of Sustainability which is a measure of the complexity of a system. A basic set of energy indicators that relate to different aspects of sustainable development was defined. In this way, the results in the assessment of sustainability of energy options do not depend on the various analysts in decision making.     

Estimates of the potential for energy conservation in the Chinese steel industry

The study evaluates the energy saving potential of the Chinese steel industry by studying its potential future energy efficiency gap. In order to predict the future energy efficiency gap, a multivariate regression model combined with risk analysis is developed to estimate future energy intensity of China's steel industry. It is found that R&D intensity, energy saving investment, labor productivity and industry concentration are all important variables that affect energy intensity. We assess the possible measures as to how China's steel industry can narrow the energy efficiency gap with Japan by means of scenario analysis. Using Japan's current energy efficiency level as baseline, the energy saving potential of China's steel industry is more than 200 million ton coal equivalent in 2008, and it would fall to zero in 2020. However, if greater efforts were made to conserve energy, it would be possible to narrow down the energy efficiency gap between China and Japan by around 2015. Finally, using the results of the scenario analysis, future policy priorities for energy conservation in China's steel industry are assessed in this paper.     

Barriers to and driving forces for energy efficiency in the non-energy intensive manufacturing industry in Sweden

The manufacturing industry is facing tougher competition which increases the demand to implement cost-effective energy efficiency measures. However, studies have indicated that obvious cost-efficient measures are not always undertaken. This is explained by the existence of barriers to energy efficiency. The aim of this study is to investigate the existence and importance of different barriers to the implementation of energy efficiency measures in the Swedish non-energy intensive manufacturing industry. Results from this study highlight a number of factors that inhibit the degree of implementation, such as the cost and risk associated with production disruptions, lack of time and other priorities, lack of sub-metering in larger organizations, etc. The study also finds a number of drivers, such as the existence of people with real ambition and a long-term energy strategy at site level.     

CO2 emissions of Turkish manufacturing industry: A decomposition analysis

In this study, CO₂ emissions of Turkish manufacturing industry are calculated by using the fuel consumption data at ISIC revision 2, four digit level. Study covers 57 industries, for the 1995–2001 period. Log Mean Divisia Index (LMDI) method is used to decompose the changes in the CO₂ emissions of manufacturing industry into five components; changes in activity, activity structure, sectoral energy intensity, sectoral energy mix and emission factors. Mainly, it is found that changes in total industrial activity and energy intensity are the primary factors determining the changes in CO₂ emissions during the study period. It is also indicated that among the fuels used, coal is the main determining factor and among the sectors, 3710 (iron and steel basic industries) is the dirtiest sector dominating the industrial CO₂ emissions in the Turkish manufacturing industry.