E4 Training Week: Trends in industrial energy use. 9 June 2015 Kira West

Transcription

1 E4 Training Week: Trends in industrial energy use 9 June 2015 Kira West

2 Industry in context

3 What is industry? IEA Energy Balance definition : Based on ISIC codes (UN system for classifying economic activities) Generally includes all manufacturing, mining (excluding fuels) & quarrying activities IEA industry analysis definition also includes: Energy use in blast furnaces and coke ovens (normally reported in transformation sector statistics) Energy use as petrochemical feedstock (normally reported in transformation sector statistics along with refining) Figures and numbers given in this presentation follow this definition

4 Example: Non-ferrous metals Group 242 and Class 2432 from UN s International Standard Industrial Classification (ISIC) of All Economic Activities, Rev.4 ISIC is intended to be a standard classification of productive activities. Its main purpose is to provide a set of activity categories that can be utilized for the collection and presentation of statistics according to such activities.

5 What is industry? Consistency in definitions and boundaries is important Iron and steel sector statistics are not comparable if one definition includes blast furnaces & coke ovens, and another does not Boundaries should be clearly defined and easily understood Which of the following activities are included in the IEA industry sector definition? Electricity generation Production of iron Petroleum refining Department stores Textile manufacturing Hotels & restaurants Extraction of bauxite for alumina production Coal mining Manufacturing of plastics

6 Nonmetallic minerals Nonferrous metals Iron & steel Chemicals & petrochemicals Pulp, paper & printing Cement Aluminium Crude steel Ammonia Paper and paperboard

7 What is included in industrial energy use? Process energy use Energy that is used directly in an industrial process i.e. Coal that is used in blast furnaces for iron ore smelting Utility energy use Fuel energy that is converted to electrical or thermal energy prior to use in the industrial process; or for auxiliary needs like space heating and lighting on-site i.e. Natural gas that is combusted to produce electricity to drive motors Important to distinguish these when assessing energy efficiency potential and in implementing policies and best practices However, this can be a challenge many data sources do not separate these two elements

8 Role of industry in the global energy system Industry accounted for 37% of total final energy use in 2012.

9 Role of industry in regional final energy use In 2012, which of these countries or regions had the highest share of industrial energy use? The lowest? Brazil 42% United States 23% China 55% EU28 31% Russian Federation India 46% 39% Indonesia South Africa 30% 38%

10 Role of industry in regional final energy use OECD Non-OECD

11 Role of industry in regional final energy use China India Brazil EU28 Indonesia South Africa Russian Federation United States

12 Role of industry in regional final energy use In 2012, which of these countries or regions had the highest absolute amount of industrial final energy use? Brazil 4.0 EJ United States 13.8 EJ China 43.2 EJ EU EJ Russian Federation India 9.2 EJ 8.6 EJ Indonesia South Africa 2.0 EJ 1.2 EJ

13 Evolution of total final energy consumption Globally, no major changes in share since 1990, though all sectors have continued to grow.

14 Evolution of regional industrial energy use OECD Non-OECD China EU28 United States OECD Non-OECD China EU28 United States

15 Industrial energy use, Decrease in OECD share (from 48% to 33%) due to absolute increase in energy use in non-oecd countries Significant growth in non-oecd, particularly in China

16 Industrial sub-sector energy use About 2/3 of industrial final energy consumption comes from 5 major energy-intensive sub-sectors.

17 Industrial energy use, Gain in share of 5 energy-intensive sub-sectors since 1990, from 57% to 67% globally

18 Energy-intensive industry Energy-intensive sub-sectors have gained prominence in most regions

19 Industrial final energy use Brazil Though energy use has almost doubled since 1990, the share of energy-intensive industry has declined slightly Natural resource based industries have seen the strongest growth

20 Industrial final energy use India Share of energy-intensive industry has remained relatively stable Strong growth in iron & steel and chemicals & petrochemicals subsectors However, nearly half of industrial energy use is reported under nonspecified

21 Industrial final energy use - China Largest growth in energy use between 2003 and 2012 Energy-intensive industry has grown from around 65% of industrial final energy use since 1990 Iron & steel energy use increased by more than 500%

22 Industrial final energy use - France Stable share of energy-intensive industry, but large absolute drop in industrial energy use in 2009 Diversified industrial sub-sectors

23 Sustainability options for industry

24 Sustainability options for industry Energy efficiency accounts for more than half of CO 2 emissions savings in the IEA s 2 degrees scenario

25 Sustainability options for industry Fuel and feedstock switching Can have energy independence/security benefits, as well as environmental ones Does not necessarily imply energy savings For example, switching to biomass could reduce dependence on imported fossil fuels, while reducing GHG emissions but generally reduces energy efficiency

26 Sustainability options for industry Recycling Often saves energy, materials, or emissions but the specific case should be analysed to determine the impact Dependent on availability of scrap material and collection systems and infrastructure

27 Sustainability options for industry Innovative processes Can make industrial production more sustainable by changing the entire process Often requires large up-front investments in RD&D Specific benefits depend on each new process

28 Sustainability options for industry Energy efficiency Important contributor to sustainability goals Wide range of options that often have benefits in other areas (not only energy) Energy efficiency should be considered in both process energy use and in on-site utilities

29 Sustainability options for industry Prioritising sustainability options: Policymakers should consider all options for sustainability Policies should be designed with a particular goal in mind Interactions between policies and between these different options should be considered Installation of waste heat recovery equipment to improve energy efficiency could preclude other sustainability options, such as CCS Subsidies for a particular fuel (i.e. biofuels) may incentivise fuelswitching but reduce the incentives for energy efficiency

30 Example: Preheating and precalcining in cement kilns Additional preheater and precalciner stages use air from the clinker cooler to heat raw materials before they enter the kiln, reducing heat requirements for calcination

31 Example: Electrical efficiency in aluminium smelters Decreasing anode-cathode distance (ACD) lowers the voltage drop, and improves the electrical efficiency of the cell

32 Case study Eresma Cogen unit (Spain) Distillery of whisky, anise and gin in Segovia, Spain In 2008, 13 MW co-generation unit replaced conventional boilers and grid-purchased electricity Sized to meet as much heat demand as possible given the limitations of the electricity grid

33 Case study Eresma Cogen unit (Spain) Electricity Heating Total Installed capacity 13 MW e 10 MW th 23 MW Annual average generation GWh 87.2 GWh (314 TJ) GWh Annual average efficiency 45.3% 34.8% 80% Co-generation meets 70% of steam demand and 100% of electricity demand Surplus electricity sold to the grid 280 TJ energy and 15.5 kt CO2 savings for the same heat & electricity delivered 2.47 million cost savings Benefits to the system as well as cost savings to Eresma need to account for the benefits for efficient on-site utilities

34 Energy Management Systems for industry ISO 50001, a certification for energy management systems (EnMS), is the most common methodology for implementing Energy Management Systems allow industrial sites to systematically identify opportunities for energy efficiency and energy savings Currently most prominent in OECD countries, but sites have been ISO certified in 70 countries around the world

35 Multiple benefits of energy efficiency IEA identified a number of common co-benefits of energy efficiency improvements, including: Macroeconomic Public budgets Health and well-being Industrial productivity Energy delivery A multiple benefits approach to energy efficiency policy recognises these benefits and enables a fuller understanding of EE potential

36 Industrial energy efficiency

37 What is industrial energy efficiency? Energy efficiency Something is more energy efficient if it delivers more services for the same energy input, or the same services for less of that energy input. This should not be confused with energy conservation, energy intensity, or energy savings

38 What is industrial energy efficiency? Energy conservation Using less energy by reducing activity levels i.e. avoided energy use by reducing output of a process Energy savings The amount of energy saved by taking a certain measure, compared to the baseline energy use Energy intensity The amount of energy consumed per activity or output for subsectors and end-uses. i.e. an industrial sub-sector becomes less energy intensive if it uses less energy per tonne of final product though the decrease in intensity could be due to efficiency improvements as well as other factors

39 What is industrial energy efficiency? Which of the following situations is an industrial energy efficiency improvement?? A steel producer uses less coal to produce the same quantity and quality of crude steel Demand for paper goods decreases, causing a decrease in energy use A cement manufacturer switches fuels in the kiln, and produces the same amount of cement using less fuel in terms of calorific value An aluminium smelter adjusts operating procedures to allow cells to produce aluminium using less electricity

40 Industrial energy intensity Energy intensity has decreased in many regions over the past decade Structural effects, in addition to efficiency, also play a major role

41 Barriers to industrial energy efficiency Distortion of markets by energy subsidies and energy pricing that does not consider the benefits of energy efficiency Lack of stable, long-term energy policy Lack of visibility on carbon markets/other climate strategies Insufficient investment in research, development & demonstration (RD&D) Lack of publicly available data on energy efficiency interventions in industry

42 Barriers to industrial energy efficiency Lack of understanding from CEOs and Finance Directors of the economic benefits of energy efficiency Lack of internal expertise to implement EnMS and added costs for research and auditing Lack of dedicated staff with responsibility for energy efficiency Perceived lack of upfront finance from Finance Directors and CEOs to implement energy efficiency measures as a result of business priorities

43 Next steps

44 Introductions How is the industrial sector structured in your country? Which are the major sub-sectors? Are they mainly energy intensive or non-energy intensive? Which are the major energy sources for industry? Which sub-sectors do you work with? Which initiatives are you aware of that touch on energy efficiency in industry? What do you hope to achieve during this training?

45 What comes next? Measuring industrial energy efficiency: Energy efficiency indicators for industry Setting goals: Target-setting for energy efficiency in industry Overcoming the barriers: Policy toolkit Taking a closer look: ISO & Energy Management Systems for industry Measuring and evaluating: Tracking progress in industrial energy efficiency

46 Conclusions Industry plays a major role in global energy use, particularly in emerging economies Energy-intensive industry makes up a large part of the industrial total, and can contribute significantly to energy efficiency goals Energy efficiency is an important sustainability option for industry, but many barriers exist Data and measurement are needed to accurately assess energy efficiency potential for industry

47 Thank you