Creating Sustainable livelihoods and a positive environmental footprint

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Kelley Joseph
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positive environmental footprint ITC LIMITED, AGRI

1 18 TH NATIONAL AWARD FOR EXCELLENCE IN ENEGY MANAGEMENT 2017 Creating Sustainable livelihoods and a positive environmental footprint ITC LIMITED, AGRI BUSINESS DIVISION ILTD KGLT, MYSURU 30 th, 31 st Aug 2017 Hyderabad

3 ITC: Putting India First

4 Agri Business Division ITC's Agri Business Division is the country's second largest exporter of Agri-products. Grains Marine Products Processed Fruits Coffee Leaf Tobacco: Largest Buyer, Processor & Exporter of Leaf Tobaccos in India Serving customers over 50 countries & 70 destinations Strategic Locations Anaparti, Chirala & Mysore Spices: ITC Spices Business, is one of India's leading producers and exporters of Backward Integrated Food Safe Spices.

5 Karnataka Green Leaf Threshing Plant [ KGLT] KGLT is the only Green Leaf Threshing Unit in Karnataka Green Field Project commissioned 2011 Commercial Production 2012 Spread across: 79.6 Acres Green Cover: 28.7 Acres (36%) 5

6 Green Leaf Threshing- Unit Operations Tobacco processing is done for following value addition. Separation of Stem and lamina. Improve the Shelf life of the product from 2 Months to 3 Years. Segregate Non Tobacco Related Matter to ensure clean product. 6

Energy Conservation Projects Journey So Far (Cumulative) 2014-15

Saving 1308 GJ Technological interventions 88206 kwh Tobacco Dust

22811 kwh Optimization of Compressed Air 43920 kwh Improve Evap

99 9100 kwh Six-Sigma project on Energy Reduction in KGLT 74449 kwh

7 Energy Conservation Projects Journey So Far (Cumulative) Energy Saving 744 GJ Energy Saving 1091 GJ Energy Saving 1308 GJ Technological interventions kwh Tobacco Dust as Green Fuel in Boiler 441 kwh Right Sizing of Critical drives kwh Optimization of Compressed Air kwh Improve Evap Ratio in Boiler from 3.65 T/T to 3.83 T/T Improve power factor to kwh Six-Sigma project on Energy Reduction in KGLT kwh Other Energy Saving Initiatives kwh Other Energy Saving Initiatives kwh

Process improvement Initiatives Compressed Air Network optimization LED Lighting

8 Energy Conservation - Road map 27 % 13.8 % 18.8 % % % LED Lighting Phase 2 Conserve Energy by Process improvement Initiatives Compressed Air Network optimization LED Lighting Phase 1 Under Progress Continued effort to improve efficiencies 3.5 % Reference year

9 Specific Energy Consumption -Trend Net Thermal Energy Consumption (GJ /Day) (-1%) 474 (10%) 451 (14%) SEC is high in due to New Product Development trials to meet customer s requirement Variation in Leaf Characteristics- Inherent variability in Agri- Products

Specific Energy Consumption -Trend Net Electrical Energy Consumption( GJ / day) 119 113 (5%) 108 (9%) 102 (14%)

10 Specific Energy Consumption -Trend Net Electrical Energy Consumption( GJ / day) (5%) 108 (9%) 102 (14%) Continual improvement in Energy Efficiency forms a critical part of the performance matrix

11 Global Benchmark Electrical Energy SEC (kwh/tot) (Elec) Energy Efficiency built into the design and layout Contemporary Plant layout and process flow to reduce energy footprint by minimize losses Continual improvement in the organizational DNA We are the GLOBAL BENCHMARK Mexico Indonesia Pakistan Brazil AGLT CGLT KGLT

12 Global Benchmark Thermal Energy Thermal Energy (Steam) requirement dependent on Leaf Characteristics and varies across the growing region SSC (kg/tot) (Coal) Performance benchmarked against the factories processing similar leaf with similar characteristics 117 KGLT is the National Benchmark for Specific Energy- Thermal AGLT CGLT KGLT

Global Benchmark So, how do we fair against the national benchmark of Overall Energy Efficiency?? 3.6 3.

13 Global Benchmark So, how do we fair against the national benchmark of Overall Energy Efficiency?? Overall SEC (GJ/ToT) ITC- KGLT is the most energy efficient unit in its line of business Alliance Deccan AGLT CGLT KGLT

Renewable Energy Footprint (%) Renewable Energy Footprint % 94.1 94.8 98.3 72.

3% of our Electricity requirement is met through Wind Energy The Captive Wind Farm

14 Renewable Energy Footprint (%) Renewable Energy Footprint % Captive Wind Turbines-Karnataka % of our Electricity requirement is met through Wind Energy The Captive Wind Farm generates three times the energy requirement. Surplus Energy is wheeled to other Units and Businesses

GHG Inventorizations Scope1 (CO2e MT) 10470 10230 7768 3973 Use of Tobacco Dust as fuel in Boiler Improvement of Evap Ratio in Boiler 0.27 Overall SEC (GJ/ToT) 0.26 0.

15 GHG Inventorizations Scope1 (CO2e MT) Use of Tobacco Dust as fuel in Boiler Improvement of Evap Ratio in Boiler 0.27 Overall SEC (GJ/ToT) Scope2 (CO2e MT) 98.3% of Wind Power Utilization Improved Grid Availability CGLT AGLT KGLT 439 Scope3 (CO2e MT) Lower Operation of DG Sets ITC-KGLT is the national benchmark across other Green Leaf Processing Units

GHG Inventorizations GHG Emissions Reductions: 12453 GHG

7% 10659 8101 Dedicated 66kV Line, so that Generation from DG

16 GHG Inventorizations GHG Emissions Reductions: GHG Emissions (CO2e MT) Wind Energy Utilization of upto 98.7% Dedicated 66kV Line, so that Generation from DG is reduced 4053 Use of Tobacco dust in Boiler Energy Audits 0.3 GHG Emissions (CO2e ToT) LED Lightings Energy Efficient Drives

Water Conservation Specific Water Consumption (KL/ToT) Water

77 Comprehensive Rain Water Harvesting system Treated water

Wetting 2014-15 2015-16 2016-17 Reuse of Back wash water of

reject water to plate wash in canteen for reduce of fresh

17 Water Conservation Specific Water Consumption (KL/ToT) Water Conservation Initiatives Comprehensive Rain Water Harvesting system Treated water for Gardening & Green Belt ETP treated water for Ash & Coal Wetting Reuse of Back wash water of Pressure sand filter and Activated Sand filter Re use of RO reject water to plate wash in canteen for reduce of fresh water usage. Reuse of ETP treated water to Ash wetting and coal wetting for reduce of fresh water usage.

Innovation @ ITC I4i Innovation to Implementation to Imitation to Integration Business Need Approach Implementation Organizational Benefits ITC organizes Organization level competition on Innovation

18 ITC I4i Innovation to Implementation to Imitation to Integration Business Need Approach Implementation Organizational Benefits ITC organizes Organization level competition on Innovation projects across all its branches & awards the best innovation projects based on above said criteria. Brief Statistical note on I4i competition: Our Unit actively participated in such event involving all employees and participated in Divisional level competition. No. of Teams formed: 4 No. of Ideas Generated: 36 No. of Ideas evaluated in first phase of evaluation: 10 No. of Ideas made for Divisional level participation: 02

19 Innovation Project - 1 (Tobacco Dust as Green Fuel in Boiler) Tobacco Dust as Green Fuel in Boiler Business Need Sustainability Cost Optimization Innovation Component Use of available Tobacco dust as Green Fuel in Boiler Project Outcome Investment Rs. 35 Lakhs Saving Rs. 7 Lakhs Organization Benefit Lower Operational Cost Wealth out of Waste

Innovation Project - 2 (Utilization of Flash Steam in Dryer) Steam line from boiler Steam Condensate line from LRD, TIPS & BUTTS conditioning cylinder Condensate line shell Tobacco in Scrap dryer

20 Innovation Project - 2 (Utilization of Flash Steam in Dryer) Steam line from boiler Steam Condensate line from LRD, TIPS & BUTTS conditioning cylinder Condensate line shell Tobacco in Scrap dryer Tobacco out Avg.50 C Condensate line Business Need High Operation Cost Innovation Component Use of Flash steam in Drying Operation Project Outcome Investment Rs Lakhs Saving Rs. 8 Lakhs Organization Benefit Lower Operational Cost Lesser CO2 emission to environment

21 Innovation Project - 3 (Tip Line Modification) Layout Modification: Business Need High Operating Cost [Energy Cost] Innovation Component Layout Optimization Project Outcome Investment Rs. 0.2 Lakhs Saving Rs Lakhs Organization Benefit Lesser Energy Cost Lower R&M Cost

Utilization of Waste for replacing of Conventional Energy First amongst Any other Tobacco Processing Industries Tobacco as fuel in Boiler Tobacco Dust as Green

22 Utilization of Waste for replacing of Conventional Energy First amongst Any other Tobacco Processing Industries Tobacco as fuel in Boiler Tobacco Dust as Green Fuel in Boiler Design- Co-firing System Proportionate ratio of mix Flue Gas No changes in Emissions CFE Approved by KSPCB Replication of Concept across other GLT s

Utilization of Waste for replacing of Conventional Energy Dust from Threshing plant Tobacco Dust as Green Fuel in Boiler Boiler Level Controller DRF

23 Utilization of Waste for replacing of Conventional Energy Dust from Threshing plant Tobacco Dust as Green Fuel in Boiler Boiler Level Controller DRF Unit DRF Unit Airlock 150 Kg/Hr Pneumatic Vibration pads Screw conveyor Surge Hopper Motorised Gate Dust Bagging and Truck Loading Under Bed Feeding

24 Utilization of Waste for replacing of Conventional Energy Tobacco Dust as Green Fuel in Boiler Impact of the Project: Tobacco Dust Impact UOM GCV of Coal Average of Dom:Imp Kcal Utilization of Green Fuel & Reduction in Scope-1 Emissions Coal saved due to usage of Tobacco Dust Tons Reduction in average coal consumption by 0.7 tons/day Thermal Energy saved due to utilization of Reduction in waste disposal by 2.5 tons/day Kcal/yr dust Net Savings of 4.3 Lakhs/annum Savings Lakhs

5/5/2014 Energy Monitoring Format 5/12/2014 5/19/2014 5/26/2014 6/2/2014 6/9/2014 6/16/2014 6/23/2014 6/30/2014 7/7/2014 7/14/2014 7/21/2014 KGLT Daily Energy Dashboard o A dashboard with details of

o Dashboard is mailed daily to all the stake holders Monthly Energy Dashboard o Divisional level dashboard data review on monthly basis o All GLTS energy performance will be compiled and reviewed for

25 5/5/2014 Energy Monitoring Format 5/12/2014 5/19/2014 5/26/2014 6/2/2014 6/9/2014 6/16/2014 6/23/2014 6/30/2014 7/7/2014 7/14/2014 7/21/2014 KGLT Daily Energy Dashboard o A dashboard with details of MCC wise consumption is analyzed daily o Also Specific Energy is monitored o Process & Utility units are monitored. o Dashboard is mailed daily to all the stake holders Monthly Energy Dashboard o Divisional level dashboard data review on monthly basis o All GLTS energy performance will be compiled and reviewed for both for processing & Non-Processing days Energy Conservation Water conservation Karnataka Wind Turbine KGLT Energy Processing Days Lac Units KGLT Energy Non Processing Days Lac Units KGLT Energy Additions Lac KWH Processing KGLT Energy Reduction Lac KWH other than En KGLT Water Consumption KL Actual Processin 0 - KGLT Water Consumption KL Actual Non Proce Karnataka Net Gen Actual Lac units Month Karnataka Machine Uptime Actual 80.0% 97.3% 99.4% 99.15% Karnataka Grid Uptime Actual 98.1% 77.3% 99.7% 99.97% Karnataka Banked Energy Lac units Cum Karnataka Other ITC Units Karnataka Third party sale Lac Units Month Karnataka Site Visits Plan Karnataka Site Visits Actual Karnataka Submission of Scheduling and forecastin No No Yes Yes Karnataka Wind Power Available days AGLT Karnataka Wind Power KGLT Lac units Month Karnataka Grid - IEX/APGPCL KGLT Lac Units month Karnataka DG KGLT Lac Units Month Quarterly Energy Dashboard Renewable energy consumption (generated by ITC) o Energy consumption & generation data is monitored on Quarterly basis atcorporate level o All energy consumption data is uploaded ina portal andanalyzed Electricity from wind Value Unit Comment 1st quarter MWh Less processing days 2nd quarter 275 MWh Plant was under shut down 3rd quarter 1659 MWh Processing Re-started 4th quarter 2196 MWh Full fledged Processing Annual Energy Review Mechanism o Full year energy performance will be presented to DMCmembers. o In the same forum, Target for next year will be presented.

26 Unit - Energy Management Organogram & % investment on Turnover % Investment BEE Certified: o Unit Turn over (16-17): ` Million Energy Manager 1 o investment : ` 20 Lakhs Energy Manager * - 3 (Applied) o % investment: 0.06%

27 Greening of Supply Chain Barn Efficiency Improvement Initiatives Various Initiatives towards Greening at Farm End (Incoming Raw Material Leaf Tobacco) Soil Conservation Improvements Solar Street Lights in selected Villages Water Harvesting Initiatives

28 Greening of Supply Chain

Energy Conservation Awareness & Training

week Competition in order to create awareness

Program Brief Statistical note about Energy

29 Energy Conservation Awareness & Training Program Unit organizes an structured Energy week Competition in order to create awareness on energy and its importance among all the employees. KGLT ENERGY WEEK - Campaign & Awareness Program Brief Statistical note about Energy Week competition: No. of Teams formed: 25 No. of Ideas Generated: 108 No. of Ideas evaluated in first phase of evaluation: 37 No. of Ideas awarded after final phase of evaluation: 04

30 Sustainability- Social Outreach Unit has successfully planted >1 Lakh Tree Saplings during the year Establishment & Awareness on Composting Awareness training program of importance of environment at surrounding schools Awareness sessions to leading schools across Mysore to promote Kitchen Garden

31 Awards & Accolades National Convention on Quality Concepts Excellence & Distinguished Awards OHSAS QMS EMS SA 8000 NABL IGBC GOLD rating Karnataka State Level Safety Award Large Scale Industry category. 2nd Best Project in CII's National Level Competition Best Paper Finalist at Engineering Lean Six Sigma Conference (Institute of Industrial Engineers (Florida, USA)). Prashamsa Suraksha Puraskara" Award by National Safety Council, Karnataka Chapter 3 rd Best Safe Boiler at State Level

32 Global Recognition Sustainable Tobacco Program (STP): Apex level certification for Global Tobacco Producers Governance STP Audit Score - GLTs 89% 91% 92% Facility People 62% Environment Alliance AGLT CGLT KGLT KGLT achieved 92% and is the highest scorer among all GLTs across the globe.

33 ITC-KGLT-MYSORE Most Energy Efficient Unit across the globe [ GJ/T] GHG Inventorization- National Benchmark across other Green Leaf Processing Units Renewable Energy Footprint at 98.3% [ Electrical Energy] Benchmarked performance on Specific Water Consumption

34 Our Motto Putting INDIA First

35 Saving of One Unit of Energy is equal to Generation of Two units of Energy Thank You

CII National Award on Excellence in Energy Management ITC SAHARANPUR. Excellence in Energy Management ITC Limited Saharanpur

CII National Award on Excellence in Energy Management ITC Limited Saharanpur ITC SAHARANPUR Excellence in Energy Management - 2017 ITC Limited Saharanpur Excellence in Energy Management - 2017 ITC: An