10

2005 Achievement Report
International Project for Increasing

the Efficient Use of Energy
International Project for Improving Infrastructure
for the Efficient Use of Energy
(Programs for Promotion of Energy Conservation
in Major Industries in ASEAN Countries)
Report on the Results
March, 2006
The Energy Conservation Center, Japan

Preface
Recently, efforts to prevent global warming have been recognized as a challenge to be shared by
all humankind, while sustainable development of economy has been sought for. Mankind is
facing with the challenge of overcoming the two different conditions entirely conflicting each
other.
In order to get over these severe conditions, what are required are technical innovations such as
technologies to use energy efficiently with as little burden on the environment as possible and
the development of energy having little impact on the environment, etc.
In order to contribute to the balanced development of economy and environment in developing
countries, it is necessary to render support that is adoptable and appropriate to the respective
countries concerned based on the understanding of the actual condition of their energy use and
environmental measures and on the results of in-depth surveys on the progress in development
of infrastructure, living habits, etc.
Under these circumstances, we advanced to and worked on a new stage in this project as the
second year followed by 2004 that aimed to strengthen the infrastructure for implementing and
promoting energy audits and improvement plans, on the strength of the achievements of the
energy audits and energy audit skills transfer programs that we implemented in 10 ASEAN
counties regarding one selected industry per country during the past 4 years, 2000~2003.
For an effective tool to help achieve such an aim, we carried on to create the Technical
Directory and Database/Benchmarks/Guidelines by business category.
In the meanwhile, as the activities to strengthen the infrastructure for the mentioned
implementation and promotion, we conducted follow-up surveys on the factories that were
subject to energy audit in the past to check the progress in the practice of the recommended
improvement plans and also walk through energy audits in other factories to ensure the transfer
of energy audit skills. In 2005, the factories that received our follow-up survey and walk
through energy audit included that of the garment factories in Cambodia, the steel factories in
Philippines, a pulp & paper and a textile factory in Indonesia and a cement and beverage factory
in Brunei Darussalam. Furthermore, we held seminar and workshop in each country, inviting
people from the government agency or factories of different categories of industries in countries
other than the host country to make a report on their successful energy conservation cases so
that information could be shared in the ASEAN region and the foundation of promotion
activities could be provided. In the seminars and workshops, the concept and development
policy regarding the creation of the Technical Directory and particularly database by category of
industry were discussed, and a concrete example as a part was shown off.
We believe it is very meaningful that as the result of the activities for the second year in the
project, we could achieve the above objectives and create steadily the bases of the promotion of
energy conservation in the new stage.
We hope that this project will contribute to energy conservation in the industrial sector and
environmental protection in the respective ASEAN countries so that they can eventually achieve
environment-friendly and sustainable development in economy and also that this project will
serve as a bridge of technical exchange and friendship between Japan and the countries
concerned.
March, 2006
The Energy Conservation Center, Japan
Contents
Preface
Summary
Abbreviation List
I. Purpose and Background of the Project .....................................................................Ⅰ-1
II. Cambodia (Garment Industry)....................................................................................Ⅱ-1

1. Outline of Activities ...................................................................................................Ⅱ-1
2. Follow-up Survey of the Garment Factory of Company A ........................................Ⅱ-4
2.1 Outline of Factory of Company A.........................................................................Ⅱ-4
2.2 Outline of the Results of Previous Energy Audit on Garment Factory
Owned by Company A..........................................................................................Ⅱ-6
2.3 Follow-up Energy Audit........................................................................................Ⅱ-7
2.4 Results and Discussion of the Investigation ........................................................Ⅱ-8
3. Walk-through Energy Audit of the Garment Factory of Company B.......................Ⅱ-16
3.1 Visit of the Garment Factory of Company B ......................................................Ⅱ-16
3.2 Advice and Recommendations for EE&C Activities ..........................................Ⅱ-17
4. Follow-up Survey of the Garment Factory of M&V International
Manufacturing Ltd. .............................................................................................Ⅱ-18
4.1 Outline of Factory of Garment Factory of M&V International
Manufacturing Ltd. .............................................................................................Ⅱ-18
4.2 Outline of the Results of Previous Energy Audit on M&V3 Garment Factory
Garment (Knitting) Factory ................................................................................Ⅱ-20
4.3 Follow-up Energy Audit......................................................................................Ⅱ-20
4.4 Results and Discussion of the Investigation ......................................................Ⅱ-22
5. Seminar and Workshop.............................................................................................Ⅱ-26
5.1 Summary .............................................................................................................Ⅱ-26
5.2 Results of the Seminar Workshop .......................................................................Ⅱ-27
Ⅲ. Philippines (Steel Industry) ........................................................................................Ⅲ-1

1. Outline of the Activities .............................................................................................Ⅲ-1
2. Follow-up Survey of Rolling Mill Factory of Company C ........................................Ⅲ-4
2.1 Outline of the Rollimg Mill Factory of Company C.............................................Ⅲ-4
2.2 Outline of the Results of the Previous Energy Audit on Company C ...................Ⅲ-5
2.3 Follow-up Energy Audit........................................................................................Ⅲ-8
2.4 Results and Discussion of the Investigation........................................................Ⅲ-14
3. Energy Audit of Rolling Mill Factory of the Orimary Steel Corporation. ...............Ⅲ-17
3.1 Outline of Factory of Rolling Mill Factory of the Plymary Steel Co.. ...............Ⅲ-17
3.2 Suggested Energy Conservation Measures for the Rolling Mill Factory............Ⅲ-19
3.3 Follow-up Energy Audit......................................................................................Ⅲ-20
3.4 Results and Discussion of the Investigation........................................................Ⅲ-21
4. Seminar and Workshop.............................................................................................Ⅲ-29
4.1 Summary .............................................................................................................Ⅲ-29
i
4.2 Results of the Seminar Workshop .......................................................................Ⅲ-30
Ⅳ. Indonesia (Paper/pulp and Textile industry)...............................................................Ⅳ-1

1. Outline of the Activities .............................................................................................Ⅳ-1
2. Follow-up Survey of the Pulp and Paper Mill of PT KERTAS LECES.....................Ⅳ-3
2.1 Outline of Pulp and Paper Mill of PT KERTAS LECES ......................................Ⅳ-3
2.2 Summary of the Results of the Previous Energy Audit of
PT KERTAS LECES Pulp and Paper Mill............................................................Ⅳ-5
2.3 Follow-up Energy Audit......................................................................................Ⅳ-13
2.4 Technical Discussion and Recommendations .....................................................Ⅳ-19
3. Walk-through Energy Audit at the Patal Grati Spinning Mill of
Industri Sandang Nusantara...............................................................................................Ⅳ-31
3.1 Visit to the Patal Grati Spinning Mill..................................................................Ⅳ-31
3.2 Advice and Recommendations for EE&C Activities ..........................................Ⅳ-34
3.3 Recommendations for Improvement and Expected Effects................................Ⅳ-35
4. Seminar and Workshop.............................................................................................Ⅳ-40
4.1 Summary .............................................................................................................Ⅳ-40
4.2 Results of the Seminar Workshop .......................................................................Ⅳ-41
Ⅴ. Burnei (Cement Industry and Food Processing Industry) ..........................................Ⅴ-1

1. Outline of Activities ...................................................................................................Ⅴ-1
2. Follow-up Survey of the Cement Factory of Butra Heidelberg
Cement (BHC).....................................................................................................................Ⅴ-3
2.1 Outline of the Cement Factory of Butra Heidelberg Cement (BHC)....................Ⅴ-3
2.2 Outline of the Results of the Previous Energy Audit of BHC Cement Factory ....Ⅴ-4
2.3 Follow-up Energy Audit........................................................................................Ⅴ-6
2.4 Results and Discussion of the Investigation..........................................................Ⅴ-7
2.5 Status of Implementation by BHC ......................................................................Ⅴ-18
3. Walk-through Energy Audit of the Beverage Factory
of Kingston Beverage & Creamery Sdn. Bhd. ..................................................................Ⅴ-20
3.1 Outline pf the Beverage Factory of Kingston Beverage
& Creamery Sdn. Bhd.....................................................................................Ⅴ-20
3.2 On-site Walk-through Energy Audit....................................................................Ⅴ-21
3.3 Advice and Recommendations for EE&C Activities ..........................................Ⅴ-22
4. Seminar and Workshop.............................................................................................Ⅴ-31
4.1 Summary .............................................................................................................Ⅴ-31
4.2 Results of the Seminar and Workshop ................................................................Ⅴ-32
Ⅵ. Activities and Efforts as ASEAN ...............................................................................Ⅵ-1

1. Outline of Summary Workshop and Post Workshop Discussions ..............................Ⅵ-1
2. Summary Workshop related Major Industry ..............................................................Ⅵ-3
3. Post Workshop Discussions......................................................................................Ⅵ-12
Ⅶ. Reference Material .....................................................................................................Ⅷ-1

ECCJ activity schedules
ii
Questionnaires and answers of audited factories
Seminar-Workshop programs and presented materials at 4 countries
Materials for the Summary/Post Workshop
iii
Summary
ASEAN counties are continuing to achieve dramatic economic development and their energy
consumption is anticipated to increase rapidly from now on. It will become vital to use energy
more efficiently and to give sufficient consideration to prevention of global warming.
This project has entered its 6th year. ASEAN Center for Energy (ACE), our ASEAN counterpart
and people concerned of the respective ASEAN countries are engaged in more and more
enhanced and substantial energy conservation activities, thereby contributing to gradually
spread change in the consciousness of the people in ASEAN countries toward the reduction of
energy consumption, particularly with the increases in energy price resulting from the recent
soaring crude oil prices and the Kyoto Protocol put into force in the background.
The current year was positioned as the second year of the 2nd stage for making serious efforts to
put into practice and disseminate the results we have made to date by combining all the
achievements we made in the projects of the phase-1, past 4 years and making further
self-supporting efforts. In other words, the 2nd stage aims to establish the infrastructure for
implementing and promoting practical improvements centered on improvement plans discussed
and proposed in the respective countries in the past, based on the achievements and results of
energy audits conducted on factories of 10 different types of businesses in all ASEAN countries
over the past 4 years.
Specifically, the following activities were developed in 4 countries; Cambodia (garment
industry), Philippines (steel industry), Indonesia (pulp/paper and textile industries) and Brunei
Darussalam (cement and food processing industries).
• Follow-up survey on the factories that underwent an energy audit in the past and walk
through energy audits on newly chosen factories
Intended for understanding of the problems lying in carrying out, promoting improvement
plans and the development of improvement measures
• Creation of Technical Directory
Intended to introduce effective technologies usable in garment/steel/pulp & paper/cement
industries in ASEAN countries and also successful cases of the utilization of the respective
technologies for the purpose of information-sharing and enhancing the possibility of
implementation and dissemination of these technologies
• Development of databases/benchmarks/guidelines
Intended to establish a scheme for setting numerical targets to advance energy conservation
activities and providing guide lines to achieve such goals
As an immediate task, the development of databases in 4 categories of businesses;
Garment/steel/pulp & paper/cement, is essential.
In the above mentioned countries, surveys including energy audits and seminars/workshops
were conducted. In the survey conducted in each country, guidance was given to the local
people concerned on the site again while the progress in their acquisition of energy audit skills
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transferred from Japanese specialists in the past was confirmed so that technology transfer could
be further ensured. In addition, as it was found in the survey that some factories had not
practiced improvements as instructed, factors seemingly constituting impediments to the
implementation as well as solutions were discussed, which lead to create the clue for the
implementation and progress in the future.
In the seminar/workshop held in each country, in addition to the aforesaid discussions, people
from the governments and the factories including those of different categories of industry in
other ASEAN countries (including people of the factories undergoing energy audit in the past)
were invited to join with the people of the factories of the countries concerned to report on their
respective activities and the cases of practicing improvement plans. The seminar and workshop
held in each country had a large number of participants each, playing an important role in terms
of information sharing and dissemination.
On-site activities of the project of the current year were commenced with Inception Workshop
held in late June 2005 (Same as the one for both Building and Energy Management
Infrastructure Development Projects).
In the Inception Workshop, for the purpose of smooth launching of the project, the action plan
was explained and finalized, and preparations for the activities at site were confirmed among the
participants. Following that, surveys and workshops in 4 countries were smoothly completed by
December 2005, and topped off by Summary /Post Workshops conducted in late January 2006
(common with Building and Energy Management Infrastructure Development Projects).
In Summary Workshop/Post Workshop where delegates from ASEAN countries (Focal Points)
were present, reports on the activities and the results in the 4 countries, including those on the
ASEAN Benchmarking activities and the results, were made with the view to knowledge- and
information-sharing, and discussions regarding the creation of Technical Directory and the
development of database/benchmark/guideline for each country were held. Finally, the policy
for action plans for the project next year and in the future was discussed.
Specific details of activities of the major industry project for this year are as follows;
August 22-September 2, 2005 (Trip: August 21-September 3)

On-site activities in Cambodia and Philippines (Primary survey)
1. Follow-up survey on garment factories (Cambodia) and a steel factory (Philippines)

surveyed in the past, and a walk through energy audit of a newly selected factories of
garment/Cambodia and steel/Philippines
Surveys on the factories were conducted and reporting of the results and discussions were
made in each factory.
2. Seminar-workshop in each country

40-60 people participated in each country and were engaged in active information exchange
through vigorous discussions. The policy for creation of Technical Directory and the action
policy regarding the development of database/benchmark/guideline proposed by Japan were
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approved in principle from the participants. The seminar- workshop was concluded
successfully.
(1) Energy conservation policy and program (each country and Japan)
(2) Report on energy conservation cases by people concerned in major industries in each
host country and other ASEAN countries
(3) Discussions on the policy regarding the creation of Technical Directory
(4) Discussions on the action policy regarding the development of database in each host
country
December 5-17 2005 (Trip: December 3-19);

On-site activities in Indonesia and Brunei Darussalam (Secondary survey)
1. Follow-up surveys on a pulp/paper factory (Indonesia) and a cement factory (Brunei

Darussalam) surveyed in the past and a walk through energy audit of a newly selected
factories of textile/Indonesia and food processing/Brunei Darussalam
Surveys on the factories were conducted and reporting of the results and discussions were
made in each factory.
2. Seminar-workshop in each country

60-100 people participated in each country and were engaged in active information
exchange through vigorous discussions. The policy for creation of Technical Directory and
the action policy regarding the development of database/benchmark/guideline proposed by
Japan were approved in principle from the participants. The seminar- workshop was
concluded successfully.
(1) Energy conservation policy and program (each country and Japan)
(2) Report on energy conservation cases by people concerned in major industries in each
host country and other ASEAN countries
(3) Discussions on the policy regarding the creation of Technical Directory
(4) Discussions on the action policy regarding the development of database in each host
country
January 26-27, 2006 (Trip: January 25-29)

Summary Workshop /Post Workshop
Participated in “Summary Workshop and Post Workshop on Promotion of Energy Efficiency
and Conservation (PROMEEC) (Major Industry, Building and Energy management),
SOME-METT Work Program 2005-2006” (Venue: Bandung, Indonesia, same as the one for
building and energy management infrastructure development)
Although delegates from Myanmar, Singapore and Vietnam were absent, about 22 people
including delegates of ASEAN countries and members of ASEAN Center for Energy (ACE) and
Energy Conservation Center, Japan (ECCJ) participated and had comprehensive discussions on
the items given below. After reports of local activities at 4 countries by ECCJ and evaluation
and future improvement of local activities prepared by 4 countries we visited this time and on
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the policy regarding and the progress in the development of Database/Benchmark/Guideline in
each country were made, lively and active discussions were held.
Although we confirmed that it remained our future challenge to make more efforts to improve
mutual understanding of the specific ways of advancing these practical works, we could earn
high evaluations from ASEAN countries on the results of our activities for this year and also
gain agreement in principle on the policy for advancing the project in the years to come.
Opening address (Delegates of the countries surveyed and the organizations concerned)
Summary Workshop
Session 1: Major industries
- Activity report of this year/results and evaluations
- Evaluation and future improvement of local activities
- Country initiatives towards the preparation of TD and status / plan of Database
preparation
- Status of preparation for TD and Database for major industries in ASEAN
- Policy for approaches to be taken after next year.
Session 2: Buildings
Session 3: Energy management
Post Workshop
Session 1: Summary of discussions held in Summary Workshop for each project
Session 2: Basic implementation plan for years after next
In the current fiscal year, with an aim to support ASEAN countries in the establishment of a
firm foundation for developing continuous energy conservation activities, we improved the level
of our activities, requesting them to further make self-help efforts. As we could gain cooperation
in our activities from all the participating countries, we successfully made significant results. On
the other hand, we recognized the necessity to gain further understanding of our improved
activities and build a system in each country so that they could fully respond to us. Thus, our
future task was clarified. At the same time, we appreciate such identification of our future issue
as a step forward in our activities, because it looked emerging when our project made
substantial advance and results.
Finally, we hereby would like to thank all those at ACE along with the organizations and
companies concerned in each country for their all-out cooperation.
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Abbreviation list
EE&C Energy Efficiency and Conservation

TD Technical Directory
DB/BM/GL Database / Benchmark / Guideline
ACE ASEAN Center for Energy
METI Ministry of Economy, Trade and Industry
ECCJ The Energy Conservation Center, Japan
Cambodia
MIME Ministry of Industry, Mines and Energy, Cambodia
EE&S Office Energy Efficiency and Standard Office
EDC Electricite du Cambodge
DET Department of Energy Technique
Philippines
DOE Department of Energy
DOST Department of Science and Technology
RE Renewal Energy
MERALCO Manila Electric Company (Old Name: Manila Electric Railroad and Light
Company)
ECPH Training course of Energy Conservation for the Philippines held at June, 2005 in
Japan
FAS Factory Automation System
WESM Wholesale Electricity Spot Market
Indonesia
MEMR Ministry of Energy and Mineral Resources
DIP De-Inking Plant
BIO Biotechnology
PM Paper Machine
PLN Perusahaan Listric Negara PERSERO (Indonesia Electricity Corporation)
KONEBA PT Konservasi Energi Abadi (Persero)
Brunei Darussalam
DES Department of Electrical Services, Prime Minister’s Office
BHC Butra Heidelberg Cement
Malaysia
PTM Pusat Tenaga Malaysia（Malaysia Energy Center）
1
Ⅰ. Purpose and Background of the Project
This project generally aims to contribute to the promotion of energy conservation and
environmental protection in Southeast Asian countries by helping promote energy
conservation measures in the major industries in the countries concerned through providing
support for activities on the ASEAN with the view to promote and disseminate technologies
for the efficient use of energy in the major industrial fields.
This project was set up in 2000 with ASEAN Center for Energy as the core organization,
with the aim of reducing ever-increasing energy consumption in the industrial sectors in the
ASEAN region. ASEAN call this project PROMEEC (Major Industries). PROMEEC is an
abbreviation of “Promotion of Energy Efficiency and Conservation” and a cooperative
project with Ministry of Economy, Trade and Industry certified by the conference of
ministers of energy-related ministries of 10 ASEAN countries. We are providing support for
the promotion of energy conservation in the industrial sectors of ASEAN countries in the
aspects of technology and management through the activities of the project.
The project has the following objectives;

1. To deepen and strengthen the cooperative relation between ASEAN countries and Japan
in the energy field
2. To promote energy efficiency and energy conservation in the major industries in
ASEAN countries.
3. To promote transfer of energy-related technologies of Japan and the introduction of
good practice cases of energy conservation.
4. To raise the quality level of ASEAN countries through energy audits and OJT for energy
audit
5. To create Database/Benchmark/Guideline for energy audit in ASEAN countries.
The current year is positioned as a second year of the activities to be developed in the
second stage, with the understanding that this cooperative project are advanced in the 3
stages based on the discussions held to date with ASEAN countries including ACE.
Through the activities we developed in all ASEAN countries by March 2004 in the first
stage, we could build a foundation for developing energy conservation activities on an equal
footing with ASEAN countries.
1st stage: Transfer of technologies and experiences from Japan to ASEAN countries
(Completed in 2003)
2nd stage: Japan-ASEAN joint implementation of improvement plans in each country and
promotion in other countries
3rd stage: Promotion of energy conservation with independent efforts by ASEAN countries
Starting in last year, we began to create a basis for advancing implementation and
dissemination of energy conservation based on the prepared foundation. In short, our
I-1
activities are centered at follow-up surveys on the factories that underwent energy audit in
the past, the creation of Technical Directory and the development of Database/ Benchmark
/Guideline for each category of industry. In the current fiscal year, we developed such
activities mentioned above targeting the garment industry in Cambodia, the steel industry in
Philippines, the pulp & paper industry in Indonesia and the Cement Industry in Brunei
Darussalam.
In the respective countries, we conducted follow-up surveys on the factories that underwent
an energy audit in the past to grasp the progress and the issues lying in the implementation
of improvement plans and also OJT-based walk through energy audits of newly selected
factories jointly with local people involved. In addition, we held seminar- workshop in
which we invited instructors from a government agency or factories of several categories of
business in the host country and other countries to introduce successful cases of
implemented improvement plans and cases of cutting-edge energy conservation technology
to further raise the awareness of energy conservation among ASEAN countries. The concept
for promoting the creation of Technical Directory and Database/Benchmark/Guideline for
the use of each country and practical preparation activities were discussed and the future
direction was determined. These activities are intended to serve as the core work for
establishing the foundation for promoting energy conservation in the respective countries
subject to the survey and to establish networks to promote it to other countries.
In the end, we held Summary Workshop bringing together delegates of the respective
countries to share the results and achievements of the activities made in the respective
countries and to discuss the basic plan for future activities.
I-2
∐. Cambodia (Garment Industry)
1. Outline of the Activities
The follow-up energy audits of the companies that had performed energy audits in Phase I (Dec.
2002 and Feb. 2003) were conducted, and the Seminar-Workshop was held in Phnom Penh
(Cambodia), which involved the results of follow-up energy audits and the presentations on
practical examples for energy conservation in various industries.
This time, the energy audits were carried out in two garment factories as a follow-up and newly
walk through energy audit in one garment factory.
In the inception workshop held in June 2005, it was agreed that, starting this fiscal year, the
MIME should play a leading role in conducting follow-ups and reporting the results. However,
the ECCJ eventually had to have an initiative instead. Furthermore, the problems were that,
when we visited two garment factories, questionnaires, which had been sent to the MIME via
the ACE prior to the visit, had not reached two factories. Therefore, it took long time obtaining
and confirmation of the answers.
Here, we describe two garment companies as “Company A” and “Company B” according to
demand of these companies.
1.1 Implementation Period

Aug. 22 ~ Aug. 26, 2005
1.2 Site of Implementation
Follow-up energy audit: Garment factories of Company A and M & V International
Manufacturing Ltd. (in Phnom Penh)
Walk through energy audit of a new factory: Garment factory, Company B (in Phnom
Penh)
Seminar-Workshop: Phnom Penh Hotel (in Phnom Penh)
1.3 Schedule (Material No. D-101E)

Aug. 22 (Mon.): Follow-up energy audit of the garment factory, Company A
Aug. 23 (Tue.): Follow-up energy audit of the garment factory, Company A, and
walk through energy audit of a new garment factory, Company B
Aug. 24 (Wed.): Follow-up energy audit of the garment factory, M&V
International Manufacturing Ltd.
Aug. 25 (Thu.): Follow-up energy audit of the garment factory, M&V
International Manufacturing Ltd.
∐ -1
Aug. 26 (Fri.): Seminar-Workshop
1.4 Relevant Persons

ACE (ASEAN Center for Energy):
Mr. Christopher G. Zamora: Manager
Mr. Ivan Ismed: Project Officer
Cambodia: Ministry of Industry, Mines and Energy (MIME)
Mr. Lieng Vuthy, Deputy Director, Dep’t of Energy Technique (DET)
Mr. Heang Bora, Head of Energy Efficiency and Standard (EE&S) Office, DET
(Cambodia Focal Point)
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office
Mr. Nong Chhavyvann, EE&S Office, DET
Mr. Choun Teiea, EE&S Office, DET
Japan: International Engineering Department, ECCJ
Mr. Fumio Ogawa, Technical expert
Mr. Hisashi Amano, Technical expert
Mr. Hideyuki Tanaka, Technical expert
∐ -2
Situation of Cambodia
(1) General circumstances

- Area: 181,000 km2 (less than half of Japan)
- Population: 13.661 million (2005)
- Religion: Mainly Buddhism
- Government: Constitutional monarchy
- Economy: Key industries: Agriculture, forestry and fisheries (33.4% of GDP)
Industries (26.3% of GDP) (Data from the Ministry of
Planning, 2002)
GDP: US$4.5billion (2004)
GDP per capita: US$330 (2004)
Currency: Riel, 1US$ = approx. 4,000 riel (as of 2004)
Trade (2002):
Export: Garment products, meats, vegetables, natural rubber,
and rubber goods to the U.S., Germany, UK, Singapore
and Japan. (Exports: US$ 1.74 billion)
Import: Garment fabrics, machinery, vehicles, fuel from
Thailand, Singapore, Hong Kong and China.
(Imports: US$ 2.48 billion)
Energy/GDP: 35kWh/per capita
- General economic conditions: Decrease in foreign investments and proceeds of tourism
due to the Asian economic crisis, which slowed the economic growth rate temporarily.
After that, the country maintained steady growth rate ranging from over 5.5% to 7%
range. The third coalition government, which started in July 2004, has continuously
considered economic growth and industrial development to be the most important policy
goals. How to invite foreign direct investment may be a key to achieve the target in the
future.
(2) Current state of energy in Cambodia
In Cambodia, the hydro power in addition to the renewal energy is available; however all of
oil products are imported.
Electrification rate was 17%, electricity expense is US$0.15/kWh, gasoline price was
approximate 3,500Riel/L and diesel oil was approximate 2,800Riel/L at the time of follow
up energy audit in 2005.
∐ -3
2. Follow-up Survey of the Garment Factory of Company A
2.1 Outline of Garment Factory of Company A
(1) Company profile

Products: Casual wear（Main product：T-shirts）
Production: 1.17 million dozens (results of 2001),
1.69 million Dozens (the actual results of 2004)
Payroll: 4,393 persons (Nov. 30, 2002), approx. 5,000 (Aug. 2005)
Working shift: 7.5 hours in two-shift system
(6:15-14:15 (7.5 hours), 14:15-22:15 (7.5 hours)
(2) Manufacturing process and energy consumption of the garment factory

The following are the previous situation of the factory and the follow-up results:
1) Outline of operation
Company A manufactures casual products, mainly T-shirts, under the management of the
headquarters located in Malaysia. This company founded in 1992 and started operation in
1994, exporting all of the sewn products to the U.S, EU and Australia.
Energy sources are electricity and oil products. The company has purchased electricity
generated by a diesel electric generator of Independent Power Producer (IPP) installed in its
own factory and in 2001 began to purchase electricity from Cambodian government-owned
company (EDC) as well. The factory consumes electricity from IPP from 14:15 to 22:15,
while it uses electricity from the EDC in another time zone. Such a method has been still
adopted at the time of investigation. What were changed are the use of tap water and steam
drain for water supply to a boiler, and use of blended oil of “Diesel & heavy fuel oil”
instead of only Diesel oil.
Figure ∐-2-1 shows a flow chart of the manufacturing process and utilization of energy in a
typical garment factory. Company A has adopted a similar manufacturing process.
∐ -4
Original cloth
Paper matrix
First Putting on Second

Cutting Sewing buttons ＆ Ironing
inspection inspection
fasteners
Labels &
Lighting Packing
Compressed Steam
air
Shipping
Electricity Water Fuel oil
Figure ∐-2-1 Flow chart of the manufacturing process and

utilization of energy in a typical garment factory
2) Facilities
Boilers: No.1 boiler: Once-through boiler 783kg/h
No.2boiler: Once-through boiler 500kg/h (suspended)
No.3 boiler: Once-through boiler 300kg/h (suspended)
No.4 boiler: Once-through boiler 783kg/h (in operation)
Power receiving equipment: 22kV (Transformer: 22kV/400-230V, 1500kVA,
one transformer)
Air compressors: No. 1 compressor = 12.95m3/min×85.9kW, reservoir tank 1m3
No. 2 and No. 3 compressors were removed.
No.4 compressor (New) = 75kW plus a reservoir tank 0.3m3
Other facilities: Cutters, sewing machines, steam irons, lighting fixtures, air
conditioners, etc.
3) Energy consumption
Table ∐-2-1 shows the production and each type of energy consumption of 2001 and 2004.
∐ -5
Table ∐-2-1 Energy consumption (2001 and 2004)
Items 2001 2004 Improvement

(2004/2001)
Production Casual wear 1,170,000 2,110,000×0.8=1,688,000
(Dozens/y) (By subcontract: 20%) (1.443)
Energy Fuel for Diesel Oil: Diesel Oil: 30,000
consumption Boilers 198,000 Fuel Oil: 171,000
(L/y) (Total = 201,000) (1.015)
Electricity IPP: 1,676,000 IPP: 1,356,000
(kWh) EDC: 2,170,000 EDC: 3,549,000
(Total=3,846,000) (Total = 4,905,000) (1.275)
Primary energy Fuel 0.169L/Dozen 0.119L/Dozen 0.704
unit
Electricity 3.287kWh/Dozen 2.906kWh/Dozen 0.884
Improved Workers No. 4,400 5,000 (1.136)
skills
Output per 266 338 1.27
person Dozens/person/y Dozens/person/y
Energy Price Fuel Diesel oil Diesel oil (1.71)
US$0.35/L US$0.60/L
Electricity US$0.122/kWh US$0.15/kWh (1.23)
2.2 Outline of the Results of Previous Energy Audit on Garment Factory owned by Company A
The items suggested for improvement at the previous audit were as follows:
(1) Utilize recycled drain from ironing process for water supply to boiler or for heating.
The recycled drain from the ironing process had not been effectively utilized, but just
disposed. Effective utilization of the drain will contribute to saving about 7 kL/y of fuel
oil.
(2) Heat insulation of the bare piping lay between boilers, steam headers and the factory.
Binding a 60m bare 40A pipes with a 30mm thick heat insulator can save about 7.2 kL/y of
fuel oil.
(3) Energy conservation by introducing a device controlling the number of air compressors in
service
Of the three air compressors (75kW: 1 unit, 37 kW: 2 units), 75kW type has always been in
operation and repeating a cycle of loading and unloading. Therefore, we suggested an
introduction of a system to control On/Off operation of multiple air compressors through the
∐ -6
use of the pressure of a newly installed reservoir tank. It was estimated to reduce about
113MWh/y.
(4) Energy conservation by relocating lighting fixtures
The cutting and sewing rooms are provided with both ceiling and pendant fluorescent lights.
By lowering the position of those pendant lights, the number of fluorescent lights can be
reduced. Reduction of about 47MWh per year is possible.
2.3 Follow-up Energy Audit

The energy audit team visited the garment factory for two consecutive days to conduct a
follow-up energy audit of the improvement based on the previous guidance, and to examine
their new activities.
(1) Date of energy audit:

August 22 (Monday) 2005 at 9:00 a.m. - 16:00 a.m.
23 (Tuesday) 2005 at 9:00 a.m. - 12:00 a.m.
(2) Audit team members:

Cambodia: Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director (only paid our respects in the morning of
Aug. 22)
Mr. Heang Bora, Head of EEE&S Office, DET, MIME
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office, MIME
Mr. Nong Chhavyvann, EE&S Office, MIME
Mr. Choun Teiea, EE&S Office, MIME
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical
Experts
(3) Attendees from the factory:

Administration Manager (only paid their respects in the morning of Aug.
22)
Account & Payroll Manager, Counterpart for audit team
Maintenance Supervisor
(4) Outline of the follow-up investigation

When the energy audit team visited the factory of Company A, a questionnaire ECCJ had
∐ -7
sent to the MIME prior to the visit, had not reached the factory. Although the factory was
very cooperative to the investigation, the investigation efficiency was poor because they had
no time to prepare their answers to the questionnaire. The team conducted a walk through
energy audit of the factory in the morning, Aug. 22, and made question-and-answer in the
afternoon about production and energy consumption etc. The team agreed that some data
would be received next day because it took time. In the morning of Aug. 23, Audit team
visited there again to receive the answers, audited again the checkpoints on job site and
measured the temperature and illumination, etc.
Compared with the previous investigation of the factory (December 2002 and February
2003), the production process (receiving textile stuff, cutting, sewing, ironing, packing and
shipping) as well as operational methods were basically unchanged, but the production in
quantity over 40%, and partial improvements (renewal of air compressors, improved air
conditioning system, recycling of steam drain, etc.) have already been made. As a result,
primary fuel/electricity units significantly decreased, approximately 30% and 12% down,
respectively.
As for recycling of steam drain, they seem to have followed previous suggestion. Following
the suggestion about air compressors, they adopted a high-efficiency model. The steam
pipes have been partially insulated, but the lighting fixtures have been untouched.
Relevant technical explanations on this matter are shown in an attached document No.
D-116 “Follow up of Energy Audit EE&C Activities in Garment Industries, Cambodia”.
In addition, there were not any documents received from Company A.
2.4 Results and Discussion of the Investigation
(1) Production status and energy intensity (Material No. D-103E)

Table ∐-2-1 shows data, while Figure ∐-2-2, ∐-2-3 and ∐-2-4 indicate the comparison
between 2001 and 2004. Production greatly increased from three years before, while the
consumption of fuels and electricity moderately increased, as a result, the energy intensity
was dramatically improved. The Counter part (C/P) of Company A pointed out the
following reasons:
- Technical capabilities of employees were so improved that the production efficiency
increased, leading to a large growth in production. During the last three years, the
production per person increased by 127%.
- Renewal of sewing machines every four to five years contributes to energy conservation
and efficient production
- Investment for energy conservation began to have effect as mentioned later.
∐ -8
2,000
Productions
1,500
(k Dozens)
1,000
500
0
2001 2004
Year
Figure ∐-2-2 Change in production (Comparison between 2001 and 2004）
Heavy oil EDC

6,000
Fuel consumption
250 Diesel oil Power consumption IPP

5,000
200
4,000
150
(kL)
3,549
(MWh)
171 3,000 2,170

100 198 2,000
50 1,000 1,676
30 1,356
0 0 0
2001 2004 2001 2004
Year Year
Figure ∐-2-3 Change in fuel consumption and electricity consumption

(Comparison between 2001 and 2004)
0.200 4.000
(kWh/Dozen)
0.150 3.000
Electricity
(L/Dozen)
Fuel
0.100 2.000
Electricity
0.050 Fuel 1.000
0.000 0.000
2001 Year 2004
Figure ∐-2-4 Change in primary energy unit (Comparison between 2001 and 2004)
(2) Energy management

C/P of Company A, in charge of accounting, well understood the importance of energy
conservation. However, the personnel in the factory as a whole were generally less aware of
its importance and did not grasp data sufficiently. On the other hand, production per group
was shown on a white board. This suggests that a small group activity appeared to have
∐ -9
started.
The energy audit team highly evaluated C/P’s understanding of the importance of energy
conservation. It is expected him to set up a measurement system and develop persuasive
activities based on quantitative data.
The energy audit team obtained the results shown in Table ∐-2-2 through questions and
answers as well as on-site investigation to grasp each type of electricity consumption. In the
factory, the team checked specifications and the number of equipment, readout electric
power and consumption indicated by the electric switchboard, the control panel, etc., and
estimated the consumption by taking into account the information obtained from the Q&A
sessions. The estimation would be helpful for participants in the MIME and C/P of
Company A.
In the future, it is necessary to grasp the kaleidoscopic changes quantitatively.
Consequently, the point at issue will become clear, and they must be able to take measures,
more easily.
Table ∐-2-2 Electricity consumption by purpose

Equipment Estimation Power Ratio
Consumption
1 Sewing (1440 units)×(0.55kW)×0.5 = 396kW 396kW 49%
Machines Total No.: 360 pieces×4 factories
Operation Ratio = 50%
2 Lightings 1926 units×0.08W = 154kW 154kW 19%
Total No.: 321 pieces×6 factories
3 Air 64 pieces×1.5kW = 96kW 96kW 12%
Conditioners
4 Air 1 piece×75kW = 75kW 75kW 9%
Compressors One operating, one stand-by
5 Air Cooling Fan 40 pieces×0.75kW = 30kW 43kW 6%
System Pump 6 pieces×2.2kW = 13.2kW
6 Others 40kW (Office, Elevator, Boiler pumps, etc.) 40kW 5%
Total 804kW 100%
(On the other hand, the total power consumption by readings of meters
on panel was 840kW.)
(3) Air compressors
In addition to No.1 compressor (BroomWade, 75kW), Screw Compressor (HISCREW 75,
75kW) manufactured by Hitachi Ltd. was newly purchased and installed about three months
ago and both were operated alternatively. The latter reduces required power by varying the
number of revolution according to the change in loading. It operated steadily at the outlet
∐ - 10
pressure of about 0.5MPa at the time of energy audit. No. 1 and No. 2 compressors had
been removed. Figure ∐-2-5 shows the present configuration of air compressors.
No.1 Compressor
BROOM WADE,
Screw type 100Hp R.T New factory
85.9kW (Input) (75kW) 1.0m
No.4 Compressor (New) Old factory

HITACHI, Japan
HISCREW75 100Hp R.T
Inverter control (75kW) 0.3m3
Figure ∐-2-5 Configuration of air compressors
The compressed air was sent to the sewing process (the four sewing sections: each section
had about 500 sewing machines, half of which were those which feed thread cut by the
compressed air. At the inlet of each sewing machine, there was a regulator controlling the
outlet pressure at the setting of about 0.4MPa. Although ECCJ experts had suggested
improvements previously, the audit team again placed an emphasis on the following
matters:
1) Decreasing the outlet pressure
The pressure of the regulator seemed higher than necessary, so we suggested that they
should perform a test to find whether or not decreasing the pressure of the regulator would
create a problem. If the regulator pressure is decreased, the outlet pressure of the air
compressor can be decreased. This will lead to energy conservation. For example, when
the outlet pressure is lowered from 0.5MPa to 0.45MPa, the electricity consumption will
be decreased about 6%.
2) Looped piping
If the ends of the branched piping are connected in a loop to decrease the loss of piping
pressure, the distribution of the pressure in the factory can be leveled out and piping
pressure loss can also been reduced.
3) Prevention of air leakage
Check air leakage and repair a leaking place. The team insisted that it was difficult to
decrease the amount of leakage to less than 5%, but possible to decrease it to 5% easily.
Decreasing the amount of leakage directly reflects electricity conservation. C/P of
Company A said that his superior had instructed him to consider the modification of the
piping of the compressor outlets
∐ - 11
(4) Lighting fixtures
1) Improvement of the illumination in the workplace
ECCJ suggested that the position of lighting fixtures should be lowered in the workplace
at the previous investigation but they have not done it yet this time. Operations using
sewing machines belong to detail work, so insufficient illumination negatively affects
operation efficiency and reduces yield. The measurement of illumination at a considerably
dark place indicates 400Lux, which was a little low from the viewpoint of the Japanese
Industrial Standards (JIS). Comparing with the standards, desirable illumination is about
800Lux.
The illumination is inversely proportional to the square of the distance. If the position of
pendant lamps is lowered by 500 mm as we suggested, the distance decreases from 1,800
mm to 1,300 mm, and the illumination becomes as follows:
(1800／1300)2×400LX＝1.917×400LX＝767LX
This value almost satisfies the abovementioned standard. This should be considered
continuously. In contrast, in the rooms where additional fluorescent lights were installed at
a lower position, the ceiling lights might be turned out. In addition, we thought it was
brighter than necessary near the windows, in the warehouses, and packaging and shipping
rooms. However, C/P of Company A explained such high illumination was necessary for
CCD-type surveillance TV cameras.
2) Installing refractors
By installing aluminum mirror refractors and specially coated refractors, actual
illumination can be improved. Figure ∐-2-6 shows the examples of improved reflectance.
In this case, a 1.5-times improved reflectance is obtained. Various types of refractors
attached to lighting fixtures are available and some of them are directly attached to
fluorescent lamps.
3) Adopting high-efficiency fluorescent lights at the time of replacement
For fluorescent lights, the use of the Hf (high-frequency lighting lamps) enables further
energy conservation. Through the use of high-frequency lamps, various illumination
adjustment functions can be added.
∐ - 12
White painting refractor Aluminum mirror refractor Improved mirror refractor

light
６０％７０％９５％
Figure ∐-2-6 Examples of improved reflectance of lighting
4) Maintenance management of lighting fixtures

With the increase in light-up time, the light beam (brightness) decreases. For fluorescent
lights, lighting for 5,000 hours decreases the illumination to 86% (80% after the
10,000-hour lighting). Furthermore, soiling causes a decrease in light beam. Light beam is
reported to decrease to 85% after one-year lighting under ordinary conditions. Fluorescent
lights decreases to 73% (= 0.86×0.85) in brightness after lighting for 5,000 hours in a year.
Therefore, you should clean fluorescent lights at least once a year and replace old lights
with new ones.
(5) Power of sewing machines

Many of sewing machines were made in Japan, and each consumption power was 550W.
C/P of Company A explained that they were replaced every 4 to 5 years and more effective
machines are introduced every time.
It was difficult to estimate the distribution as to how many percent of sewing machines
operate simultaneously, so we assumed that the distribution rate was 50% based on the
above calculation.
(6) Air conditioning facilities

Air conditioners in the shop floor were replaced with new ones adopting a new cold air
ventilation system about one and half years ago. The system works as follows: Exhaust fans
(40 units, 0.75kW each) are installed on the walls, and heat exchangers incorporating paper
corrugated plates (made in the U.S.) are installed on the air inlet side, or opposite side of the
wall to drip water from the upper side, so that its evaporation latent heat directly cools the
air. The dripped water is recycled through the return pipes and circulated again with water
pumps (6 units, 1.65kW each). We thought that this system was economical as a cooling
system for a large room, but the working place did not produce comfortable environment
∐ - 13
when considering the number of the workforce in the room.
On the other hand, there were air conditioners (64 units, 1.5kW each) in each room of the
office. We suggested that they should increase the preset temperature (20℃).
(7) Boilers and steam piping

No.4 boiler (1,725 Lb/h), whose installation had been reported in the previous report, was
operating.
They are adopting two-boiler system with No.4 and No.1 (manufactured by FULTON). The
recycle of drain, which was advised at the previous investigation, was already performed by
newly installing a drain tank about one and half a year before. The energy audit team found
that steam was rising around the descending drain pipes at the top portion of the tank and,
sometimes, water was overflowing and running down on the wall of the tank. On the other
hand, the valve for the piping to make up fresh water was manually shut. The temperature
on the wall of the tank was 80℃ or more at the top part and 60℃ or more at the lower part.
It was confirmed that the difference between these temperatures and the outside-air
temperature was big; therefore the device had effect. Under these circumstances, the team
advised as follows:
a. Prevent steam leakage by using a steam trap.

b. Automatically control supply of fresh water with level adjustment of the tank.
c. Insulate the whole boiler, the steam header, and the bare part of the piping.
d. Perform combustion control (Especially, the control of air ratio).
e. Consider heat recovery from exhaust gases.
(8) Management of the usage of electricity

The team explained confirmation of the installation of condensers for improving the power
factor of electricity and discussed for grasping power consumption.
In the electric distribution system in the garment factory of Company A, Watt-hour Meters
are installed in each principal workplace. The team recommended that they grasp the
electricity consumption using these meters. At the predetermined times, they get a reading
of an integrating wattmeter and calculate the day-to-day difference so that they can grasp
the electricity consumption in each department everyday. Based on these data, a load curve
(graph) per day is obtainable as shown in Figure ∐-2-7. Referring to Table ∐-2-2 as well, the
electricity amount to be reduced can be determined by analyzing the data. Especially, a
decrease in nighttime consumption and peak consumption of electricity is cost-effective.
Instantaneous power can be found by the rotation speed of the disk in the Watt-hour Meter.
∐ - 14
Through these measures, they will know how to challenge other issues for energy
conservation.
450
400
350
Power（ｋW）
300
250
200
150
100
50
0
0 2 4 6 8 10 12 14 16 18 20 22 24
Time （h）
Figure ∐-2-7 Load curve (graph) per day of electricity consumption
(9) Summary of energy conservation activities for the past three years through follow-up
investigation
For the four improvements for which ECCJ made suggestions at the previous investigation,
mentioned in 2.2, Table ∐-2-3 shows the survey results at this follow-up.
Table Ⅱ-2-3 Results of energy conservation activities performed on the items suggested for
improvement at the previous survey
Recommended Technology/Practice Implementation Status of Implementation

(1) Drain recovery from the Yes Installing of water tank for drain
ironing process recovery.
(2) Heat insulation for boilers, No Re-recommendation
steam header and bare piping
(3) Introduction of control for Yes Installation of new compressor
number of compressors in controlled by inverter.
operation
(4) Improvement in lighting, No - Much investment cost
changing the position of the - Recommended to fix reflectors
lighting fixtures
∐ - 15
3. Walk-through Energy Audit of the Garment Factory of Company B
At the meeting in the morning of Aug. 23, the counterpart of Company A made a sudden
request, saying “Your advice and recommendations are very helpful. A new factory of another
company that belongs to the same group has started operation. So, would you kindly pay a
short visit there and tell us any points to be improved?” We discussed it with the MIME and
accepted the request.
We stayed the factory for a little more than one hour. First, we toured the factory and then
explained the items to be improved for energy conservation.
3.1 Visit of the Garment Factory of Company B

(1) Outline of our visit
Company B is a sister company of Company A.
Location: Phnom Penh, Cambodia
Day of visit: Aug. 23 (Tuesday), 2005, 12:30-13:45
Visitors： MIME Mr. Heang Bora (FP of Cambodia)
June Textiles Mr. L.K. Shyan (Accounting & Payroll)
ECCJ Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki
Tanaka (Technical Experts)
Person in charge in Company B: Factory Manager
(2) Outline of the factory

The new factory of Company B located about a 30 minute drive from the factory of
Company A or about 4 km from Phnom Penh airport, is built in a considerably large area of
a vast industrial park. The factory built for the first term has already started operation about
three months earlier. The factory appeared to be designed aiming at high efficiency and high
productivity based on the experiences of Company A. Working environment was far more
excellent than in Company A.
As the first term, the factory started operation with half of its capacity. The number of
workers is presently 2,000 with two working shifts and will double to 8,000, and will
employ 10,000 in total including indirect department and other kinds of staff.
In Cambodia, there is another bigger factory owned by a company in Hong Kong. They said
that among a total of 200 garments manufacturing companies, this group is ranked within
the nation’s five largest groups.
1) Sewing process
In a huge building (about 50m×70m) with an appearance of the newest factory, it was a
grand sight that a large number of female workers were all working with sewing machines.
∐ - 16
The ceiling seemed to be about two stories high and for the air cooling system, “the air
cooling draft system by dripping water”, the same as that of Company A, was introduced.
Transparent vinyl sheets were hanging from the ceiling at intervals of ten meters, so the
airflow was limited within some meters above the floor of the working place. We felt the
airflow and found that it produced comfortable environment.
2) Ironing process
Like the factory of Company A, two pipes for supplying and returning steam were installed,
to which two flexible pipes with small diameter from each ironing machine were connected.
We could not find how drain recovery was performed, but the effective use of drain was not
conducted at present.
3) Air compressors
Also like the factory of Company A, Screw compressors manufactured by Hitachi Co., Ltd.
have been installed. The outlet pressure was set at about 0.67MPa, a little high value.
4) Boilers
Fuel oils were used (there were the tanks marked as Petronas, a petroleum company in
Malaysia). The heat insulator was attached only to the bodies of the boilers but heat
recovery drain has not been performed. Headers were arranged in the near the boilers, and
the drain from the lower part of the boiler was discharged to the nearby street via the steam
trap, and a cloud of steam was rising.
3. 2 Advice and Recommendations for EE&C Activities

(1) The working environment was very good because of the high ceiling and the air was
flowing etc. We felt that the air-cooling draft system worked well there.
(2) The fluorescent lights installed on the high ceiling of the warehouse were not appropriate in
terms of the characteristics of light distribution. We recommend replacement of them with
HID type ones.
(3) The air filters for intake of air compressors seemed to be frequently cleaned. We recommend
installation of intake duct to intake fresh air. The discharge pressure was a little high.
(4) Concerning boilers and steam piping etc., we made the same explanations as we made for in
Company A. Especially, we recommended early improvement in manual supply of water to
the tanks and effective use of drain.
∐ - 17
4．Follow-up Survey of the Garment Factory of M&V International Manufacturing Ltd.
4.1 Outline of the Garment Factory of M&V International Manufacturing Ltd.

(1) Company profile
Company name: M&V International Manufacturing Ltd. (Headquarters: Macao,
China.）
Factory name: M&V International Manufacturing Ltd.
M&V has four factories in Cambodia. This is the third factory (MV3).
Address: No. 1623 Chac Angre Kraum, Phnom Penh, Cambodia
Tel: (855) 23-425 041
Products: Knitwear (sweaters)
Production: 5.1 million (achieved in 2001), 8.3 million (achieved in 2004)
Employees: 3,000 (Nov. 2002), about 3,200 (Aug. 2005)
Working shift: 8 hours in one shift (7:00 - 11:00 and 12:30 - 16:30)
(2) Manufacturing process of the sewing (knitting) factory and energy consumption
The results of this follow-up visit are described compared with those at the previous
examination as follows:
1) Outline of operations
The factory (MV3) manufactures only sweaters under the management of the headquarters
located in Macao, China. The MV3 did not have detailed data as previous investigation
because the headquarters control the organizations for production and the factory only
manufactured under the order of the headquarters.
M&V International Manufacturing Ltd. was established in 1994 and the MV3 factory
started operation in 1997. The annual production increased from 5.1 million (2001) to 8.3
million (2004). The production is mainly winter clothes, so production decreases in the
winter. All of the manufactured products are exported to the U.S.A., EU, etc.
Energy sources are electricity and oil products, and self-generated electricity by a diesel
generator is mainly used. Electricity for nighttime lighting etc. is purchased from the EDC
(Electricite du Cambodge, a Cambodian government-owned company). For the boilers,
river water and heavy oil are used. The above-mentioned state hardly changed compared
with that of the previous investigation three years ago.
Figure∐-4-1 shows a flow chart of manufacturing process of the sewing (knitting) factory
and of energy used.
∐ - 18
Original cloth
(Knitting yarn)
Knitting Washing Second

Dying & Putting on Ironing inspection
& & Drying buttons ＆ & Repair
Washing Linking fasteners
Ironing
First Lighting
inspection
Steam Labels &
Packing
Shipping
Diesel oil
Electricity Water Fuel oil
Figure Ⅱ-4-1 Flow chat of manufacturing process of the sewing (knitting) factory
and of energy used
2) Facilities
Boilers: No. 1 boiler horizontal fire-tube boiler 4,200kg/h
No. 2 boiler once-through boiler 1,560kg/h
No. 3 boiler once-through boiler 783kg/h
No. 4 boiler horizontal fire-tube boiler 6,000kg/h
Generators: Of three generators, No. 2&3 Diesel generators were operating
720kVA/unit
Power receiving equipment: 380V (no transmitter)
The facilities of the sewing (knitting) factory consists of dyeing equipment, washing
machines, dryers, sewing machines, knitting machines, irons, lighting fixtures, air
conditioners, and water treatment facilities, etc.
Table ∐-4-1 shows each type of energy consumption in 2002.
∐ - 19
Table Ⅱ-4-1 Energy consumption (2001- 2004)
Year 2001 2003 2004
Production 5.10 (100) 6.50 (127) 8.30 (165)
million pieces/y, and (ratio)
Energy consumption
Heavy oil (for boilers) kL/y 928 1,044 1,152
Light oil (for generation) kL/y 480 536 592
Electricity (purchased power) MWh/y 214 unknown unknown
Primary energy unit
Heavy oil (for boilers) L/piece (ratio) 0.182 (100) 0.161 (89) 0.139 (76.3)
Light oil (for generation) L/piece (ratio) 0.094 (100) 0.082 (87) 0.071 (75.8)
Unit price of energy
Heavy oil (for boilers) US$0.25/L
Light oil (for generation) US$0.35/L US$0.60/L
Electricity (purchased power) US$0.152/kWh
4.2 Outline of the Results of the Previous Energy Audit on M&V3 Garment (Knitting) Factory
The items suggested for improvement at the previous energy audit were as follows:
(1) Heat recovery from exhaust gas of diesel engines

Install heat exchangers in the exhaust gas ducts of No. 2 and 3 diesel engines to generate
low-pressure steam (co-generation), which reduces the load on boilers, and fuels. This will
save about 28 kL/y of fuel oils.
(2) Enhanced heat insulation of bare parts of the steam piping

Installing a heat insulator to about 60m-long 25A bare pipes will save about 3.1kL/y of fuel
oils.
(3) Energy conservation by changing the installed position of lighting fixtures
In the cutting and sewing rooms, both fluorescent ceiling lights and pendant lights were
installed. We recommended that the ceiling lights be turned off because the turning off
hardly had effect on illumination. It was estimated to bring out a saving of 32MWh/y.

In order to conduct a follow-up to investigate whether the problems pointed out at the
previous audits had been improved or not, and what kind of new activities had been
promoted, we visited the sewing (knitting) factory for two days.
∐ - 20
We thought the M&W3 factory was not cooperative in the investigation, probably due to
busyness. A technical engineer who accompanied us spoke only Chinese, while a person in
charge of general affairs translated in English, Khmer and Chinese, but did not know much
about technical terms, so the efficiency in communication was bad.
This factory did not receive the questionnaire either that we had sent to the MINE via ACE
prior to the investigation, so we could not obtain sufficient data in spite of our request. We
were told that only the headquarters in China grasped the statistic data. Consequently, we
only confirmed the production and consumption of fuels in 2003 and 2004. Furthermore,
we were prohibited from entering more areas than at the previous investigation. We only
saw the generators, boilers and passed by the yard for packaging and ironing. We just
conducted a simple follow-up audit investigation for a short time.
(1) Date of the energy audit:

Aug. 24 (Wed.), 2005, at 9:15 a.m. - 10:30 a.m.
Aug. 25 (Thu.) 2005, at 9:00 a.m. - 12:00 a.m.

Cambodia: Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director
Mr. Heang Bora, Head of Energy Efficiency and Standard (EE&S) Office
Mr. Ly Chamroeun, Vice Chief Officer, EE&S Office
Mr. Nong Chhavyvann, EE&S Office
Mr. Choun TEIEA, EE&S Office
Mr. Christopher G. Zamora, Manager
Mr. Ivan Ismed, Project Officer
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts
(3) Attendees from the factory (M&V3):

Mr. Shu Jin Fa, Maintenance Manager
Ms. Wen Ying Fang, C.O.C

The main product of the factory is knitwear, mainly sweaters, in which there was no
difference both at the previous visits (Dec. 2002 and Feb. 2003) and this visit. At the
∐ - 21
previous visit, we obtained data of 2001 and, this time, data of 2003 and 2004. These data
showed that production steadily increased, which was the main cause of a large decrease in
the primary energy unit. They didn’t seem to invest exclusively for energy conservation.
The number of enrolled employees was 3,000 in 2001 and presently 3,200, which showed
no big difference.
4.4 Results and Discussion of the Investigation (Material No. D-104)

(1) Status of production and primary energy unit
Table II-4-1, Figure II-4-2 and II-4-3 show energy consumption of the factory. Fuels (heavy
oil) are used for boilers. Electricity consists of self-generated one by diesel generators with
light oil (the generation amount is proportional to the consumption of light oil for
self-generation) and received electricity (purchased one) from the EDC (Cambodian
government-owned company). During daytime, electricity necessary for production is
self-generated, and only electricity consumed for the safety purpose during nighttime (9:00
p.m. - 7:00 a.m.) is purchased from the EDC.
The primary energy unit of both fuels and electricity significantly decreased, about 24%,
and it is mainly due to drastic growth of production.
Heavy oil
10,000 1,500 Diesel oil
Productions
8,000
Fuel (KL)
(k pieces)
6,000 1,000
4,000 500
2,000
0 0
2001 2003 2004 2001 2003 2004
Year Year
Figure II-4-2 Change in production and consumption of fuels (2001-2004)
0.200 0.100
0.150 0.080
Heavy oil
Diesel oil
(L/piece)
(L/piece)
0.060
0.100
0.040
Diesel oil
0.050 Heavy oil 0.020
0.000 0.000
2001 2003 2004
Year
Figure II-4-3 Change in primary energy unit (2001-2004)
∐ - 22
(2) Management of energy
Due to an increase in production, the primary energy unit has been greatly improved as
mentioned above, but we had no impression that the factory’s system of energy
management was excellent. However, for electricity consumption, it seemed that the
instantaneous value of a control board meter was obtained several times a day as mentioned
below, but due to lack of explanation, it was unknown how they analyzed and used the
measurements. Relevant items are described below.
1) Seasonal change
The products are exported mainly to the U.S., etc.; accordingly demand varies with
seasons. The production changes proportionally. The peak production period is from April
through October and other period is off-peak production period. Since there is a big gap
between the peak and off-peak periods (the number of employees in clock hours varies
with the number of enrolled employees), therefore, it is impossible to grasp the data
throughout the year only by obtaining instantaneous values of electricity consumption.
2) Change in electricity consumption during a day
It was in the peak consumption period. For example, the time-series values of electricity
measured yesterday (Aug. 24) varied as follows (The production was 30,000pieces.):
07:00 - 11:00 630kW (full operation) self-generation
11:00 - 12:30 380kW (during lunch time) ditto
12:30 - 16:30 630kW (full operation) ditto
16:30 - 21:00 470kW (operation) ditto
21:00 - 07:00 ？ (Electricity consumed for the safety purpose,
purchased power)
Figure II-4-4 shows a daily load curve (graph) based on the values read by this wattmeter.
This graph will enable to grasp general tendency of electricity consumption.
∐ - 23
70 0
60 0
Power （ｋ W ）
50 0
40 0
30 0
20 0
10 0
0
0 2 4 6 8 10 12 14 16 18 20 22 24
Time （ h ）
Figure II-4-4 Daily load curve (graph) of electricity consumption
3) Fuel price
Compared with data in 2001, the price of fuels has increased. For the price of electricity,
the present price of light oil is US$0.6/L. If 1 liter of light oil could generate 4kWh of
electricity, it costs US$0.15 per 1kWh.
(3) Heat recovery from exhaust gases of diesel engines

This heat recovery was not performed in the factory. We talked about the importance of heat
recovery to them this time, too, but their understanding was insufficient, so we had no
productive discussion. We told them that that was a challenge to be reviewed later.
For diesel engines, heat recovery is possible from exhaust gases as well as engine coolants.
The amount of heat recovery is almost equal to that of output. Operation of two generators
produces about 600kW of electricity; consequently 600kWh (2,1600MJ) of heat output is
obtained. If the efficiency of a boiler is estimated to be 85%, it is equal to conservation of
95L/h (= 218kL/y).
(4) Boilers and steam piping

There were four boilers of A, B, C and D as mentioned in the previous report. The main
bodies were insulated. Almost all of the steam headers and pipes were already insulated.
Some valves and flanges were bare; therefore perfect insulation is desired.
“Recovery of drain” has been implemented previously, however whether they utilize it or
not is unknown.
The outlet pressure of steam was about 0.7MPa, and it may be necessary to determine
adequate pressure and temperature for the consumption side. A radiation thermometer read
∐ - 24
109℃ on the surface of the external wall of pipes for exhaust gases.
(5) Turning off the ceiling lights (general)

Lights were not turned off in the ironing rooms, etc. On the other hand, the illumination on
the desks in the packaging process was 380Lux. It was a little dark but not an extremely low
level. We had heard at the previous investigation that they were attempting to turn off lights
during an intermission, and unnecessary lights. This time, we investigated only part of the
factory during operational hours. Therefore, the actual state in other parts of the factory was
unknown.
(6) Summary of the results of the follow-up investigation of energy conservation in the past
three years
Table II-4-2 indicates the follow-up investigation results of the three items of 5.2 whose
improvement was suggested at the previous audits.
Table II-4-2 Results of energy conservation activities performed in order to resolve the items
suggested for improvement at the previous audits
Recommended Technology/Practice Implementation Status of Implementation

(1) Heat recovery from exhaust No Recommended again
gas of diesel engines
(2) Heat insulation for boilers, Yes Valves and flanges need to be
steam header and bare pipes insulated.
(3) Lighting off the ceiling (Yes) Maybe OK
lights in all shops
∐ - 25
5. Seminar and Workshop
5. 1 Summary
The seminar and workshop was held on Aug. 26 (Friday), 2005.
Dr. Sat Samy, Under Secretary of State of Cambodia delivered an opening address, while
Mr. Tun Lean, Director General, General Department of Energy, MIME (Ministry of
Industry, Mines and Energy) gave a closing address. Less than 60 serious people took part
in the seminar and workshop. The fruitful meeting ended successfully.
(1) Date and Time

Aug. 26 (Friday) 8:30 to 16:50.
(2) Venue
Phnom Penh Hotel, 1F Crystal Ball Room, Phnom Penh, Cambodia
(3) Reports presented on the Seminar and Workshop

A program attached separately shows the content of presentations. The participants of
Cambodia reported on the EE&C activities performed by the MINE. The participants from
ASEAN countries made four presentations. For questions and answers, in-house translators
of the MINE served between English and Khmer. (Material No. D-109)
(4) Participants (List was not circulated)

Cambodia：
Dr. Sat Samy, Under Secretary of State
Mr. Tun Lean, Director General, General Department of Energy, MIME
Mr. Chan Socheat, Director, Department of Energy Technique (DET), MIME
Mr. Lieng Vuthy, Deputy Director, DET, MIME
Mr. Heang Bora, Head of Energy Efficiency and Standard Office, DET, MIME
Ms. Chum Sopha, Head of Research Office, DET, MIME
Mr. Ly Chamroeun, Vice Chief Officer of Energy Efficiency and Standard, DET,
MIME
Mr. Nong Chhavyvann, Staff, DET, MIME
Mr. Choun Teiea, Staff, DET, MIME
Rank-and-file 58 participants of Cambodia including ones from the Garment Industry,

and teachers and students of colleges (as told by Mr. Vuthy): We asked them to send
∐ - 26
us a list of participants as an electronic file within one week, but have not received it
yet.
Mr. Christopher Zamora, Project Manager
Malaysia:
Mr. Nor Hisham Sabran, Technical Assistant, Energy Industry & Sustainable
Development, Division – MIEEP, Pusat Tenaga Malaysia (PTM)
Lao PDR:
Mr. Vanthong Khamloonvylayvong, Deputy Manager of Nam Ngum Hydropower
Plant, Electricite du Laos (EDL)
Indonesia:
Mr. Subagyo, Supervisor, Pencana dan Evaluasi Produksi, PT Kertas Leces (Persero)
Vietnam:
Mr. Le Tuan Phong, Official on Energy and Environment, Ministry of Industry,
Science and Technology Department
Messrs. Mr. Fumio Ogawa, Mr. Hisashi Amano and Hideyuki Tanaka,
Technical Experts
5. 2 Results of the Seminar and Workshop
(1) Opening ceremony (speeches)

1) ACE
Mr. C. Zamora read the address of Dr. Weerawat, Executive Director of the ACE. Dr.
Weerawat emphasized that energy conservation was becoming more important in terms of
that the price of crude oil recently reached an all-time high. Also, he talked about the
activities of the ACE under the PROMEEC project for major industries and building energy
control (including public recognition of an excellent case of energy conservation in a
building) and told that Cambodia was the first country that worked on energy conservation
especially in the major industries in the four countries in this fiscal year.
2) ECCJ
Mr. Tanaka, Technical expert, made a speech on behalf of the METI and ECCJ, Japan. He
explained the meaning of this project, outline, resent state and Japan’s cooperation and
contribution to ASEAN.
3) MIME
∐ - 27
Dr. Sat Samy, Under Secretary of State, gave a speech in Khmer. He emphasized reduction
of the rising cost of oil by means of energy conservation to achieve competitiveness, and
necessity of further energy conservation and measures against global warming, by gaining
and utilizing new knowledge through a seminar. (English version was distributed.)
This ceremony was covered and filmed by the TVK (Cambodian TV) and the Cambodia
Daily (an English newspaper). After that, photographs were taken.
(2) The energy conservation plan and report on the activities

1) Overview of EE&C Activities in Cambodia- Mr. Vuthy, MIME (Material No. D-113)
Materials were written in English but explained in Khmer. Barriers pointed out four items
including lack of consciousness and unclear policies. We understood economic difficulties
in Cambodia concerning power generation using expensive imported oil and urgent
necessity of international cooperation.
2) Case Study 1 - Glass Industry, Malaysia - Mr. Nor Sabran (Material No. D-114)
A staff member of the PTM made a presentation instead of a technical engineer of the glass
factory. We saw the pride and capabilities of the PTM.
3) Case Study 2 - Hydropower Plant, Lao PDR - Mr. Vanthong (Material No. D-130)
Some new data was added to the content presented last year. We were impressed by that the
data since 1972 was shown in a graph in the documents.
4) Case Study 3 - Pulp & Paper Industry, Indonesia - Mr. Subagyo (Material No. D-115)
Audience seemed to be interested in explanation of fuel conversion (from heavy oil to
natural gas, and further to coal). However, the price of fuels deeply depends on the
government’s policy (subsidies or tax). It is needed to pay attention to differences in
situation among countries.
5) Case Study 4 - Porcelain (Ceramics) Industry, Vietnam- Mr. Phong (Material No. D-125)
Updated data presented by the ECCJ last year: It was found that some of the items, which
were pointed out or recommended again at the follow-up of last year, have been
implemented.
(3) Results of the follow-up audits
1) Follow-up Energy Audit Findings at Garment Factories - Mr. Bora, Mr. Amano (Material
No. D-116)
We had previously agreed that the members of the host country would play a leading role in
conducting a follow-up and make a presentation at the workshop. However, for Cambodia,
it was difficult in terms of the willingness and capabilities of the MINE. Therefore, ECCJ
∐ - 28
prepared Materials for this theme and asked Mr. Bora of the MIME to make a presentation
of the first part (three sheets of slides) (He explained it in Khmer). Mr. Amano made a
presentation of the remaining.
For the presentation of the follow-up, Company A asked us “not to reveal the name and
details of the company.” So, concerning Company A and M&V, we were forced to make a
vague expression, such as “These things generally apply to garment factories in Cambodia.”
The audience (including many in the same trade) was greatly interested in this topic and we
thought the presentation sufficiently satisfied their interest.
2) Barriers and Measures to implement EE&C - Mr. Ogawa (Material No. D-117)
Using the last year’s documents, he explained the topic, based on garment industries in
Cambodia as well as quoting the presentations made by other persons on the day.
(4) Workshop
1) Technical Directory - Mr. Tanaka (Material No. D-118)
He explained the purpose of TD, its preparation and format, etc. and presented examples in
order to give better understanding. Mr. Ivan was newly employed, so Mr. Zamora told
“ACE will be in charge of this matter from now on.”
2) Database/Benchmark/Guideline for Industry - Mr. Ogawa (Material No. D-119)
He made a brief explanation on this topic because its priority was lower than TD and the
garment industry in Cambodia was not well developed yet.
(5) Q&A Session

At the ends of Session 1 and Session 2, a question-and-answer session was held. Many
questions were presented actively, but some of them were not appropriate for the workshop.
Followings are typical questions and answers:
Q: Which should cover a leading part, provider or user, in responsibility for promoting
energy conservation (EC)?
A: Both. In Cambodia, it is practical that the user side of energy makes efforts to reduce the
consumption of energy.
Q: What are the criteria when choosing the equipment for EC?
A: The technical directory (TD) will help you choose the equipment in the future, not
presently. It is because the TD is based on the users’ experiences, which is different from
a manufacturer’s catalogue.
(6) Closing speech
∐ - 29
The workshop ended after Mr. Tun Lean, Director General of General Department of
Energy, the MIME, delivered a closing speech in English. (The handout was provided to the
audience.)
∐ - 30
Ⅲ. Philippines (Steel Industry)
We have held seminar and workshop that included follow-up energy conservation audit of
Company C, with whom we have conducted Phase I (Feb 10-14, 2003), follow-up of Feb 2004 and
Feb 2005 JETRO-JEXSA energy audit of Primary Steel Co. and presentation of examples of energy
conservation efforts in various industries in the Metro Manila, Philippines.
Actually, we will describe one company name as “Company C” according to the agreement at
Phase I.
Department of Energy (DOE) of the Philippine Government was to mandated to take the initiative
in conducting follow-up energy audit and assessment reporting at Inception Workshop at
Philippines, June 2005, however, ECCJ had to have initiatives instead.

Aug 29 - Sep 2, 2005
1.2 Site of IMprementation

Follow-up survey: Rolling mills of Company C and Primary Steel Corp (Metro
Manila area)
Seminar and workshop: Makati City (Metro Manila)

Aug. 28 (Mon): Follow-up energy audit (Company C)
29 (Tue): Follow-up energy audit (Company C), DOE visitation
30 (Wed): Follow-up energy audit (Primary Steel Corp)
Sep. 1 (Thu): Follow-up energy audit (Primary Steel Corp), DOE visitation
2 (Fri): Seminar and workshop

Mr. Christopher G. Zamora: Manager
Philippine Government:
Department of Energy (DOE)
Ⅲ‐1
Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency Division
（The Focal Point in the Philippines）
Mr. Michel Estrada, Energy Efficiency Division
Department of Science and Technology (DOST)
Mr. Oscarlito Malvar, Science Research Specialist, Fuels and Energy Division
Ms. Rochell, Fuels and Energy Davison
Mr. Fumio Ogawa, Technical Expert
Mr. Hisashi Amano, Technical Experts
Mr. Hideyuki Tanaka, Technical Expert
Ⅲ‐2
Current Situations of Philippines
(1) General
- Area: 299,404km2 (80% of total area of Japan): Comprised of 7,109 islands
- Population: 81.5 million (2003 World Bank data)
- Religion: Roman Catholics 83%, Other Christian Sects 10%, Islamic 5%
- Constitution; Constitutional Republican Form of Government
- Economy: Major Industries: Agriculture and Fisheries (Approx. 37% of the entire work
force)
GDP per Capita: 1,050 US dollars (2003)
Economic Growth: 4.5% (2003)
Currency: Philippine Peso, approx. 2 yen (June 2005)
Trade (2003):
Export: Electronic, electric machinery and tools, transportation
equipment to US, Japan, and the Netherlands: Export value
35.75 billion US dollars.
Import: Communications and electric machinery and tools,
electronic parts, heavy electric equipment for generation,
etc. imported from Japan, US and Korea: Import value
37.45 billion US dollars
- Economic Condition: In gradual recovery since Asian currency crisis. Recorded GDP
growth rate of 4.5% in 2003: Government Objective of 4.2 - 5.2% was met. To
sustain growth, economic structural reform, elimination of budget deficit,
disposal of bad debts, and restoration of civil order are necessary to secure
public/international confidence in Philippine economy.
(2) Energy Situations
The self-supplied primary energy in Philippines was 56%, such as the renewable energy
(RE), geothermal energy, hydropower and natural gases. Import of oil and gas was 44%.
The energy consumption in industry sector was 26.5Mtoe/y, 31% of total (2003).
The electricity price, varying in region, was US$0.12/kWh in Metro Manila in 2005. The
prices of gasoline and light oil were US$0.57/L and US$0.52/L each.
Ⅲ‐3
2. Follow-up Survey of Rolling Mill Factory of Company C
2.1 Outline of the Rolling Mill Factory of Company C
(1) Company profile

Established in 1966, and the rolling mill began operation with annual steel rod production
capability of 30 thousand tons, and later increased production capability to 90 thousand tons in
the old plant, M-II. Planning for a new mill on the present site (adjoining to the M-II site) of
360-thousand ton capacity was put in place in 1994 and production operation began in 1996. It
is one of major steel bar production companies in Philippines and all of its products are
consumed domestically.
Presented below are conditions at the time of the Phase I energy audit including the status at
the time of the follow-up visit.
Name of the Company: Company C

Location: North of Metro Manila, about 1 hour by automobile
Products: Does not use electric furnace; only rolling of purchased raw material
Steel bars (Diameter: 10、12、16、20、25、28、32、36、40、50mm)
Employees: 450 (of whom technical personnel 56)
Operations: Three shifts, 8-hours each
(2) Facilities of the rolling mill and energy conservation

1) Operation
Because the mill uses all imported billets (raw material), exposing the production cost to the
overseas economic condition, the company is forced to make frequent adjustments in
procuring the raw material. At the time of the Phase I energy audit, the mill was in the midst
of stop-operation of 1 week and maintenance operation, due to a lack of raw material. At the
time of the present visitation (Aug. 2005), operation appeared to be sound, as the company
has procured a large supply of Russian billets.
In the Philippines, the layout of rolling mills generally is in so-called cross-country type;
however, the layout in this plant is in a simple straight line.
2) Facilities
Billet Yard: Out of door, 2 gantry cranes
Reheating Furnace:
Type: Walking beam, bunker oil burning with recuperator
Ⅲ‐4
Capacity: 65t/h max. 12mL billet
Burner: Two-row configuration
Rolling Mill: 18-stand tandem, horizontal/vertical type, linear array
Incidental Equipment: Continuous quenching equipment, cooling bed, and automatic binder,
etc.
Power Receiving Equip.: Transformers: 4 units
Air Compressors: 6 units
Cooling water supply and water treatment: 1 unit
Also emergency power source, illumination and air conditioning as devices for rolling mill
facilities were equipped.
Relationship between output of the rolling mill and energy consumption is presented in Table
Ⅲ-2-1.
Table Ⅲ-2-1 Rolling Mill Output and Energy Consumption
Year 2002 2003 2004

Output t/y 173,713 (100) 173,458 (100) 212,103 (122)
(Ratio to year 2002)
Energy Consumption
Heavy Oil (for furnace) kL/y 5,412.8 5,403.7 6,776.0
Electricity (rolling, etc) MWh/y 14,613 17,737 20,877
Energy Intensity and ratio to year 2002

Heavy Oil (for furnace) L/t 31.16 (100) 31.15 (100) 31.95 (102.5)
Electrical (for mill, etc) kWh/t 84.12 (100) 102.26 (121.6) 98.43 (117.0)
In addition, the Mill uses LPG and oxygen (billet cutting) and diesel oil for emergency
private electric generator.
2.2 Outline of the Results of the Previous Energy Audit on Company C
Recommendations for improvement in the last energy audit were as follows:
(1) Heat recovery in waste gas from the reheating furnace

For heat recovery in waste gas, a metal heating tube-type recuperator is used; in order to reduce
Ⅲ‐5
the unit consumption of fuel further, installation of regenerative burners was recommended.
Since the regenerator in the regenerative burner system is heated by the exhaust gas of high
temperature as opposed to the recuperator uses the furnace exhaust gas, which has lost some
heat in the preheating zone and ducts as the source of heat in heat exchange with the
combustion air, the former generates preheated air of higher temperature, raising the energy
conservation effect by 10 to 20%.
(2) Reduction of basic electric charge due to reduced electrical demand

This system sounds an alarm automatically when the actual maximum power (15-minute
demand value) is to be exceeding the target demand value, and restricts load on electrical
equipment of lower priority (e.g., air conditioning) in order to regulate the values within the
target demand value.
For instance, when power contract of 8,000kW are to be reduced by 500kW, assuming the
mean electric cost is around 5.5PHP/kWh, a cost-reduction of approximately US$26,630/y
based on the electric charge structure of this area will be feasible. Under this assumption, the
investment for system installation is recoverable in approximately 1 year.
(3) Power factor improvement through deployment of MERALCO Receiving Power Factor
Enhancement System.
The mean receiving power factor for 2002 was 94.25%. When raised to 100%, about
US$22,560/y in power factor discount can be realized. Investment required may be recovered
in approximately 4 and half years.
Though demand power reduction or power factor improvement does not directly result in
energy conservation in the user’s side, such measures are beneficial for energy conservation of
the supplier of the power.
(4) Air compressor number control in operation

Change air compressor operation will be shifted from individually controlled system to
quantitatively controlled operation. However, because actual operating condition
(on-load/un-load condition) could not be determined, estimation was not effected.
2.3 Follow-up energy audit
Visited the rolling mill factory of the Company C for 2 days of monitoring of implementation of
the Phase I recommendations and additional other miscellaneous activities.
Even though the first visiting day happened to be a State holiday and the mill scheduled to be
Ⅲ‐6
closed, however, the corporate management acceded to DOE request and received the survey
team. In spite of the holiday, all of the necessary personnel was present and cordially received
the surveyors.
(1) Date of energy audit: Mon, Aug 29, 2005 Company C Plant Visit (follow-up)
Tue Aug 30, 2005 Company C Plant Visit (follow-up)

Philippines
Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency
Division（Focal Point of the Philippines）
Mr. Michel Estrada, Energy Efficiency Division
Mr. Oscarlito Malvar, Science Research Specialist, FED
Ms. Rochell, Fuels and Energy Davison （FED)
ACE (ASEAN Center for Energy)
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka,
Technical Experts,

Senior Manager, Quality Assurance, Safety and Environment (Leader of
Energy Control Team)
Head of Electrical Maintenance and 2 Engineers
Head of Mechanical Maintenance and 2 Engineers
Engineer, Engineering Development
Three Engineers, Production
One Engineer, Energy Team Coordinator (Total 12 participants)

On the first day of visit on August 29, after confirming the purpose of the present visit and the
schedule with the receiving party, we have made rounds of the mill in order to see the present
status and to locate potential problems. In addition, we have discussed the questionnaire, which
Ⅲ‐7
has been mailed prior to the visit (Material No. D-105E). On the second day on August 30, we
have made rounds of the mill again and quantitatively monitored electrical equipment.
Subsequently, we have summarized our findings and presented them.
Because Energy Management Team was put in place only in May of this year, the results of
improvement effort implemented since the last visit have been somewhat ambiguous, but they
were good enough to expect future improvements. We believe that achievements such as we
noted were due to Senior Manager’s visit to Japan as one of members for “FY2005 Trainee
Invitational Program under International Energy Use Rationalization Measures for the
Philippines (ECPH)” held in June, 2005.
Technical details of the present summary may be found in the attached “Follow-up of Energy
Audit EE&C Activities in Steel Industry, Philippines”. (Material No. D-126 (1) & (2))
(1) Status of production and energy intensity

Figures Ⅲ-2-1, Ⅲ-2-2 and Ⅲ-2-3 are graphic representation of data in Table Ⅲ-2-1. The
growth of output of 2004 in comparison with that of 2002 was 22%. In terms of energy
intensity, the growth was close to none in fuel and electrical consumption increased by 21%
(2003) and 17% (2004).
These figures alone are not revealing all the reasons; they are as follows:
a. Energy intensity varies among products (steel bar size) due to difference in conditions of
production operation.
(Based on data on another rolling mill, it is reported that unit consumption of fuel
increases by 1.2 to 2.5L/t as the size of the steel bar decreases by one step.)
b. Time lost in changing over the product size is disadvantageous in production of many
articles.
In order to make proper assessment of energy intensity, it is necessary to analyze each plant and
product on a separate basis. This mill is accumulating the data on energy intensity of each
product, but lacked enough data to revise the above-described data.
During the round of August 29, the indicator for fuel unit consumption in the operation room
was showing the 27L/t level for continuous rolling operation of same size product (around 20
or 25mm).
During the last visit, the management stated that only the new mill was in operation at the time,
however, M-II (no visitation; about 300m away from the new mill) is operating during this visit.
The data for both mills are processed in this plant so that figures alone were not useful in the
assessment.
Ⅲ‐8
250,000
200,000
Steel bar (t)

150,000
100,000
50,000
0
2002 2003 2004
Year
Figure Ⅲ-2-1 Change in Output
Fuel
25,000 Electricity
Energy consumption
20,000
(KL, MWh)
15,000
10,000
5,000
0
2002 2003 2004
Year
Figure Ⅲ-2-2 Change in Fuel and Power Consumption
Energy intensity
40.0 120.0
100.0
30.0
Electricity
Heavy oil
80.0
(kWh/t)
(L/t)
20.0 60.0
Heavy oil 40.0
10.0 Electricity
20.0
0.0 0.0
2002 2003 2004
Year
Figure Ⅲ-2-3 Change in Energy Intensity
Ⅲ‐9
(2) Energy management activities
The Company has taken a step in May 2005 toward systematic activities in internal energy
conservation by organizing the Energy Management Team. The team membership consists of
representatives of departments and meets on a weekly basis. The team leader is Senior
Manager as mentioned above.
The Company intends to make full use of training Senior Manager received in Japan in June
2005. As a starting point, the Company has decided to focus on “minimization of downtime
energy consumption and in ‘awareness-raising’ of employees in general toward energy
conservation.
(3) Furnace air ratio control and heat recovery from exhaust gas
1) Installation of regenerative burner
No action has been taken on this matter. The Company explained that fuel conservation of
the existing recuperator is 30% and apparently is satisfied with its performance.
In actuality, the temperature of the exhaust gas at the recuperator intake port is 700℃ and
temperature of the furnace air supply is raised from 30℃ to 350℃. Some times it reaches
400℃ (however, under these conditions, fuel saving should be in the 20% level at the
maximum).
While regenerative burner is effective, and installation of regenerative burner system by
Japanese manufacturers is possible in newly constructed furnace, decision is a difficult one
because conversion is costly due to the equipment price and necessity for operational
shutdown during the period of conversion.
We do hope that Company C considers it important to keep the project on the agenda for the
future.
2) Internal air leak of the recuperator

While the air ratio is maintained at 1.1 in the upstream part of the recuperator, the
downstream oxygen level in the throat of the stack “is measured once a week; the oxygen
level is 5 - 7%” was the answer. When the intake air-oxygen ratio is 1.1, the oxygen level of
the exhaust gas should be approximately 2%. This is a separate issue, however it is quite
possible that some air meant for fuel combustion is leaking into the furnace.
We attempted to measure the oxygen content in the exhaust gas but due to a problem with the
sampling tube, the attempt was unsuccessful. As an alternative, we used the oxygen content
of the exhaust gas at the throat of the stack, the fuel oil component and the combustion air
ratio, and then estimated the amount of the air that may be leaking into the furnace. However,
Ⅲ‐10
since we have not determined the oxygen content at the air intake of the recuperator, we
disregarded air leakage at the billet charge and discharge ports, furnace body and ducts. The
result of the calculation indicated that, of the preheated air in the recuperator, leakage rate
into the exhaust gas was 17% when the oxygen content was 5% at the throat of the stack,
23% when the oxygen content was 6% and 28% when the oxygen content was 7%.
We expect the Energy Management Team to take this matter seriously and inspect the
recuperator and repair any deficiencies it might find.
3) Consideration of the necessity of exhaust fan on the stack

We have doubts as to the effectiveness of the existing fan on the stack. Citing examples of
fan-less furnaces, we suggested review of the relationship of drafting capability with the
height of the stack and controlling of suction force on the exhaust gas by the use of a damper.
We pointed out that it might be possible to remove the fan depending on the result.
(4) Demand control (maximal power control) at the power receiving station
Recommendation was not implemented; however, it is true that reactivation of M-II altered the
condition and the issue needs to be reconsidered.
The electric power charge is composed of the combination of basic charge and metered charge.
The basic charge is imposed on monthly maximum power consumption measured in terms of
15-minute demands. The time period of 15 minutes is too short to render control by means of
manned watch. Thus, deployment of automatic measurement system is appropriate and
functional integration into the factory automation system (FAS) is recommended.
While it is conceivable to utilize the demand meter system recommended in the 2003 Phase I
energy audit, functional integration into the FAS that is a control system for production
facilities may be superior, in consideration for future expansion of the control functions.
On the other hand, daily power consumption control is also important. It may be implemented
on the basis of various power indications in the power distribution system.
The simpler approach is to read off various cumulative power consumption indications at the
same time period on a daily basis, calculate the differences with the readings of the previous
day and summarize the results by Department. This method would generate clues for further
approaches to energy conservation. Data so obtained could also be used to generate the daily
load curve of power consumption.
In order to obtain more detailed equipment data for examining energy conservation, power
measurements would be required.
(5) Improvement of power factor
Ⅲ‐11
A condenser was already installed directly after installation of the transformer. Therefore, effect
generated by the power factor improvement on the loading side is limited to the improvement
in ohm-loss in the power distribution line.
The Company indicated that they would take care of larger motors. In this respect, we have
made some calculations based on measurements made on August 30.
Transmission loss, W(kW) is approximated by formulas presented below:
W = Voltage drop rate×apparent power = (∆V/V) × (P/cos φ)
where,
∆V = Voltage drop rate, V = line Voltage, P = load power, cosφ = power factor, P/cosφ =
apparent power
The results of the estimation are shown in Table Ⅲ-2-3.
Distribution loss due to pumps and compressors is below several percent of the load power.
Such values are within the allowable range and installing a condenser on the motor for the
purpose of improvement of power factor is not a wise policy.
Table Ⅲ-2-3 Load Measurements of Pumps and Compressors
Pump & For Plant For Cooling For For

Compressors Water Supply Water Quenching Compressors
Item (100hp) (75hp) Water (200hp)
(200hp)
Voltage (V) 453 447 433 437
Electric current (A) 99.7 69.2 183.6 219
Load Power (kW) 68.7 48.3 126.0 142.1
Power Factor cosφ 0.854 0.900 0.909 0.850
Transmitted Voltage V (V) 456 436 448 448
Load Side Voltage (V) 453 447 433 437
Voltage Drop ∆V (V) 3 9 15 11
∆V/V 0.66% 1.97% 3.25% 2.46%
Load Power / cosφ 80.4 53.7 138.6 167.2
Distribution Loss W (kW) 0.53 1.06 4.64 4.10
Distribution Loss/Load (%) 0.8% 2.2% 3.7% 2.9%
Ⅲ‐12
(6) Energy conservation measures for air compressors
1) Reduction of number of air compressors in operation
No air compressor consolidation system was provided.
Company C has appealed that it would like to start working on the compressor issue with
minor refitting (changeover of control valves, etc.) for rationalization of piping and work on
such matters as revolution frequency in the future.
Company C air compressor configuration includes four 200hp and two 100hp units.
Difference in deployment number came about as a result of reactivation of M-II. When M-II
was inactive, all air compressors were moved to M-I for concentration.
At this point, we have described an approach to determine the required capability and focal
points in controlling the number of units of air compressor in operation in the following
manner.
While the air compressor configuration is four 200hp and two 100hp units, however, we
assume that actual operating requirement may be met with two 200hp and one 100hp units.
Calculate the actual load rate requirement in routine operation in terms of load time T1 and
unload time T2 and apply them in the following formula for estimation:
Load ratio = T1/(T1+T2)
Compressor discharge rate = Load ratio × rated value
On the basis of the results of above calculations and rated output, assign main units for rated
operation and sub-units for load/unload operation. In operation control, customary approach
is to use a unit number control panel, but it is possible to accomplish the objective through
adjustment of discharge pressure control values of each unit. By narrowing the range of
controllable pressure of the sub-units in comparison with the main units, they can serve as
load/unload units, respectively.
2) Determination of leakage and control measures
To facilitate this operational mode, it is necessary to locate leaks and repair the exit side of
piping system. Company C side has told us that the company has “conducted piping
inspection based on the steps planned by the Energy Management Team approximately 2
weeks ago. Some 50 leaks were found”. In that case, it would be possible to lower the
pressure on the exit side provided leaks are repaired.
In any compressed air system, invent in a newly installed system, there is generally leakage
of 3 to 5%, exceed 10% as a function of aging and even reach 35%. Leaks principally
develop in connecting parts of piping (corrosion of the flange, deterioration and development
of gaps in the gasket, loosening of bolts, etc.), sealed area of devices (rubber or metal seal on
an elastic body), slackening or break of the hose and incomplete closing of the valves.
Ⅲ‐13
Quantitative determination of leakage may be accomplished through measurement of loading
factor in operation of the compressor system when the mill is not in operation.
3) Placement of compressors
The air pressurized by the compressor is delivered with pressure to the terminal equipment
through piping and is subjected to loss of pressure and flow (leaks) under delivery.
Thus, needlessly distant delivery with pressure is not always warranted. That is, it is possible
to have an instance in which it is more effective in terms of energy conservation to set up
multiple independent compression systems according to the load.
In addition, other miscellaneous measures such as looping of branching pipes, placement of
receiver tank in locally heavy loaded area, etc. is possible against loss of pressure. Timely
response is desirable.
4) Reduction of discharge pressure
The discharge pressure control of the compressor is set at a rather high level of 100 to 110psi
(0.7 – 0.77MPa). Company C side explained that this high level of compression is needed to
maintain the terminal equipment pressure in M-II Mill, 300m far from compressor room. A
close study may reveal that it would be necessary to reinstall the compressors for M-II in the
original location.
In decreasing the discharge pressure of the compressors and determining the optimal values,
it would be desirable to first ascertain the pressure requirement of each unit before
decreasing the pressure. For instance, discharge pressure reduction from 0.7MPa to 0.6MPa
would result in power saving of approximately 8%.
Low-pressure load: Pressure reduction by mean of reducing valve
High-pressure load: Consider pressure increase by means of boosters
For example, air blow pressure for the cleaner can be low (approximately 0.3MPa),
etc.
An abnormally high pressure of 0.85MPa was indicated on one of the receiver tanks. The
first step in data management is to conduct comparative examination immediately to do
calibration at abnormal meter readings.
5) Selecting the inverter unit (variable load-compatible type)
A throttle valve generally affects capacity control of the screw type compressor and such a
compressor consumes approximately 70% of rating under unloaded condition; partial load
property of the screw type compressor is not good. For this reason, as a sub-unit requiring
volume regulation, an inverter-controllable compressor is favorable. This topic must be on
the agenda in time of system renewal.
Figure Ⅲ-2-5 shows compressor characteristics and those under systematized operation.
Ⅲ‐14
Output control of compressor
Power consumpiton
100
80
100%
Throttle valve control
Power consumption
Power saving
60 70% screw
Inverter control INV-type
40
Desirable control
INV+台数制御
Number control in ope.
20 M-type
INV-type
0 100%
0 20 40 60 80 100
Load factor
Air consumption （％）
Figure Ⅲ-2-5 Operational Characteristics of Compressors
(7) Miscellaneous energy conservation measures

a. Installation of heat resistant canvas on furnace door
b. Installation of additional wattmeter: Will be installed within this year.
(8) Summary of energy conservation activities of the past 2 years as of the Follow-up visit
Concerning status of the four measures of improvement proposed in the Phase I visit for energy
audit and other miscellaneous items described in 2.2, results of the Follow-up visit are
presented in Table Ⅲ-2-3.
(9) Energy conservation measures noted at the time of the DOE visit
Energy conservation issues noted at the DOE offices are as follows:
1) English translation of Japan’s “5S” was on display on the office wall. It gave us the
impression that such Japanese approach/spirit is spreading.
2) Two bulbs of the set of 3 bulbs in the fluorescent light fixture were taken out and a large
stainless steel reflector was installed in stead.
Ⅲ‐15
Table Ⅲ-2-3 Energy Conservation Activities Concerning Improvement
Measures Suggested at the Time of the Phase I Visit for Energy Audit
Recommended Technology Adjudication Status of Implementation

(1) Heat recovery from the Yes By recuperator, the combustion air is
furnace exhaust gas preheated at 350℃, and fuel saving is
about 20%.
But no studying for regenerative burner
system.
(2) Demand control for the No Under studying the methods
electricity receiving/
transforming equipment
(3) Power factor improvement Yes Installed capacitor
(4) Control of the air No Under studying
compressors in service - Re-arranging of control valves
- Use of variable frequency drive
(5) Insulation of heat (Yes) Installed in September 2005.
resistant cloth canvass
for discharging and
charging door of furnace
(6) Installation of additional (Yes) Installed within 2005.
KWH meters
Ⅲ‐16
3. Energy Audit of Rolling Mill Factory of the Primary Steel Corporation
Rolling mill of the Primary Steel Corporation is a newcomer as a subject for the energy audit under
our PROMEEC Project. Nevertheless, the energy audit visit for energy conservation guidance has
been made in February 2004 and February 2005 under the JETRO-JEXSA Project “The FY2004
Support Project for Establishment of National Steel Industry Energy Conservation Audit Program
in the Philippines”, and as such it was a de facto follow-up visit, and after that, improvement has
been made somewhat. We were given the impression that the corporate management is enthusiastic
toward taking further action in improvement effort.
Mr. Go, Vice President and Plant Manager, has been a trainee member of the ECPH Program and
visited Japan in June 2005. His awareness of the necessity of energy conservation was clear and
was very helpful toward the visiting entourage.
3.l Outline of the Rolling Mill Factory of the Primary Steel Corporation
(1) Outline of the Corporation

Former Dependable Metal Co., through merger in 1998, leased land and facilities from
KUMECO (Kudos Metal Co.) and began to manufacture steel rods for concrete reinforcement,
rods, square rods and small angle irons.
The plant is one of medium scale in the Philippines and its annual production capacity is 240
thousand tons. The company has shown aggressiveness by adding 3 rolling stands to the rolling
facilities in order to increase efficiency in small steel rod rolling capability in 2004 and
replaced obsolete furnace heat recuperator.
Corporate Name: Primary Steel Corporation

Plant Address: No.3 MGM Industrial Compound, Bagdaguin, Valenzuela City, 1442,
Philippines Tel: 63-9-36-97-83
(Located in northwest of Metro Manila, about 1 hour by automobile)
Products: No electric furnace; rolling mill operation only (OEM rolling only),
Steel bars (mainly of 10, 12, and 16mm bars)
Employees: 200 (including 56 technologists)
Operations: Three 8-hour shifts
(2) The Rolling Mill and Energy Consumption

We described data on energy conservation activities involving information on JEXSA Program
of JETRO, in February 2004 and February 2005.
Ⅲ‐17
1) Outline of corporate operation
The current products consist of steel rods for concrete reinforcement and steel rods (10、12、
16mm in diameter), square rods and small angle irons (20mm maximum), and these products
are manufactured on the OEM-basis from other corporations of the steel industry. For this
reason, clients deliver the raw materials into the mill and receive the finished products on site.
Thus, manufacturing operation of this company is simpler than independent rolling mills to the
extent of the lack of row material procurement and product transportation.
In comparison with steel rods of larger size, small rods manufacturing is less efficient in rolling
efficiency and as a result higher in energy intensity. This corporation, consequently, is
aggressive in cost-reducing efforts such as energy conservation and in its effort to expand its
involvement in smaller steel products other mills tend to avoid.
2) Facilities
Billet Pool: Outdoors, 1 unit gantry crane
Rolling Furnace Pusher type bunker oil burning furnace
Capacity: 40t/h max. 6mL billet heating is possible
Burner configuration: Two-side in heating zone, axial type of burners
in the soaking area with exhaust heat recovery recuperator
Rolling Equip. 15-stand tandem, horizontal/vertical type
Line configuration except first two roughing stages in cross-country
configuration
Cooling bed, automatic binding unit and others
Power Receptor Transformers: 4 units (34.5kV)
Air Compressors: 2 units (180kW)
Cooling water distributor and wastewater processor unit: one complete set
Miscellaneous items in the rolling mill including emergency power source, lighting and
air conditioning and others
Relationship between output of the rolling mill and energy consumption is presented in
Table Ⅲ-3-1.
Ⅲ‐18
Table Ⅲ-3-1 Rolling Mill Output and Energy Consumption
Year 2002 2003 2004 2005 (1-7)

Output t/y 109,687 133,981 120,344 55,615
(Incr. over previous year) (100) (122) (110) (An. equiv.
87)
Energy Consumption
Bunker Oil (furnace) kL/y 4,489 4,889 4,026.0 1,855
Electrical (rolling, etc) MWh/y 11,623.5 15,470 13,975.5 6,541.5
Energy Intensity
Bunker Oil L/t 40.93 (100) 36.49 (89.2) 33.45 (81.7) 33.35 (81.5)
Electricity kWh/t 105.97 (100) 115.46 (109) 116.13 117.62 (111)
(Incr. over previous yr) (109.6)
Energy Price & Transition
Bunker Oil PHP/L 8.74 (100) 10.73 (123) 11.89 (136) 13.84 (158)
Electricity PHP/kWh 4.98 (100) 5.56 (112) 5.50 (110) 7.08 (142)
(Incr. over previous yr)
In addition, the Mill uses LPG and oxygen (for billet cutting) and diesel oil for emergency power
source equipment.
(1PHP = approximately 2 yen at Aug 2005)
3.2 Suggested Energy Conservation Measures for the Rolling Mill Factory
Recommended improvements up to 2004 comprised of the following items:
(1) Increasing heat-recovery from furnace exhaust gas

For heat recovery of exhaust gas, a recuperator of metal tube for combustible air heating is in
use; however, the temperature of pre-heated air remains below 250℃ (max. 297℃). The
conceivable cause of inefficiency may be low temperature of exhaust gas at the intake port of
the recuperator at 600℃ and that the pre-heated air is leaking inside of the recuperator.
The low temperature of the exhaust gas may be attributed to effective transfer of exhaust heat
to the billet within the preheating zone of the furnace, however heat is poring out of the billet
charging port of the furnace. Reducing this opening by half would conceivably reduce heavy
oil requirement by approximately 170kL/y. In addition, the furnace appears to be taking in air
Ⅲ‐19
at the billet discharging port; it requires considerable work to keep outside air from entering.
The furnace and ducts also require their heat-keeping capability to be raised. The combustible
air ratio of less than 1.0 means either the furnace is operating under the assumption of having to
compensate for considerable penetration of outside air or malfunction of the indicator.
Recuperator was replaced in July 2004, but penetration of the pre-heated air in the recuperator
was detected already in February 2005. Procedure in maintenance appears to require
strengthening, now and in future.
(2) Prevention of compressed air leaks

Personnel of the Primary Steel Corporation has tested the air leakage in about half of the
compressed air distribution piping and measured 12.1% of leakage loss. It means that the loss
is over 20% in the entire piping. For example, if this loss were reduced by 1%, the savings
would amount to approximately 80,000 PHP per year. Thus, we have recommended reducing
the current compression leak by over half with the objective of lowering to 5%.
(3) Implementation of demand control

The maximum electric power consumption in December 2004 was 4085kW and those of many
of the past months approached 4000kW. The mean monthly loading rate is low in the 50%
level.
We have therefore proposed that the Corporation install the demand meter. A concerted effort
of conservation by setting a maximum monthly level on the basis of monthly production
volume would achieve a considerable effect in reduction of the basic monthly power bill.
For example, an achievement of 1,500kW monthly reduction would result in the savings as
follows:
1,500kW×270.6PHP/kW×12month/y= 4,870,800PHP/y
3.3 Follow-up energy audit
We have made a 2-day visit of the Rolling Mill of the Corporation for the purpose of follow-up
energy audit of the status of implementation of recommendations made in the JEXSA visit and
monitoring of other activities.
Mr. Go, Vice President and the Plant Manager, has participated in the METI-ECCJ reception
training program (ECPH) of June 2005 as a trainee and was an avid believer in energy
conservation efforts. He stated that cost reduction achieved in 2004 exceeded 4 million pesos
(PHP, Philippines Peso). Also, he is planning to achieve even greater savings this year. He was
very cordial toward us, the visiting investigators.
Ⅲ‐20
(1) Date of the energy audit:
August 30, 2005 (Wed) Visitation of the rolling mill of Primary Steel Corp.
September 1 (Thu) Return visit of the rolling mill

Philippines
Mr. Marlon R.U. Domingo, Sr. Science Research Specialist, Energy Efficiency
Division（Focal Point in the Philippines）
Mr. Eric Navarrete, Energy Efficiency Division
Mr. Oscarlito Malvar, Science Research Specialist, Fuels and Energy Division
Ms. Rochell, Fuels and Energy Davison
ACE （ASEAN Center for Energy)
Messrs., Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Experts

Mr. Henry Go, Vice President – Operations (partially involved)
Mr. Ramon R. Mangibunong, Assistant Plant Manager
Mr. Noel, Electrical Engineer
(4) Summary of the follow-up survey

Initially confirmed the purpose and schedule of the present visit and made the round of the site
to grasp the present conditions and possible problems. Subsequently we have discussed the
Corporation responses to the items in the questionnaire previously delivered by DOE (Material
No. D-106). On the second day, we have conducted electrical measurements of the air
compressors and measurements of oxygen content and temperature of the exhaust gas of the
furnace. Finally we explained the measurement results, and summarized the energy audit.
The technical discussions concerning this paragraph are shown in the attached
document, ”Follow-up of Energy Audit EE&C Activities in Steel Industry, Philippines”
(Material No. D-126).
Ⅲ‐21
3.4 Survey results
(1) Status of production and energy intensity

Figures Ⅲ-3-1, Ⅲ-3-2 and Ⅲ-3-3 are graphic representation of data in Table Ⅲ-3-1. The
output is variable from 2002 through 2005. This variability reflects the mode corporate
operation of production on the basis of consignment.
1) Heavy oil
Furnace fuel is heavy oil (No.6 Fuel Oil or Bunker Oil). Fuel tank of 100kL was used to
receive the fuel delivered by tankers. As shown in Table Ⅲ-3-1, the fuel prices rose by
approximately 36% during 2002 through 2004 and approximately 56% in 2005.
Unit consumption of the fuel has been improving each year. This improvement is attributable
to objectified management by means of unit consumption values by product; a variety of
conservational improvement measures effected as described below.
2) Electrical power
The unit consumption of the electrical power has been on the decline, which, according to
corporate explanation, is principally attributable to the increase in the consignment in product
of smaller diameter and expansion of operation by additional installation of 3 rolling finishing
stands (to total of 15 tandem stands).
Heavy oil
160,000 20,000 Electricity
140,000
Energy consumption
120,000 15,000
Steel bar(t)
100,000
(KL,MWh)
80,000 10,000
60,000
40,000 5,000
20,000
0 0
2002 2003 2004 2002 2003 2004
Year Year
Figure Ⅲ-3-1 Changes in Production Figure Ⅲ-3-2 Consumption of Fuel and

Volume Electric Power
Ⅲ‐22
50 120
Heavy oil 40 115
Electricity
30
(kWh/t)
(L/t)
110
20
10 105
Heavy oil
0 Electricity 100
2002 2003 2004 2005(to July)
Year
Figure Ⅲ-3-3 Changes in Energy Intensity
(2) Energy control activity

In March 2005, “Energy Conservation Group” was organized in the following Departments.
i) Maintenance
ii) Production
iii) Materials (warehouse, etc.)
iv) Administration
The activities of these Groups are principally awareness rising of energy conservation, turning
off lights and air conditioners if not necessary and turning off equipment when the task is
completed and other such miscellaneous items.
In addition, the Corporation is planning a program to perform energy-use audit (principally on
use of fuels and electric power) on a semiannual basis.
(3) Recovering heat from furnace exhaust gas

The existing recuperator had damaged tubing and other defects and the exit port temperature
of air for the fuel at the time of 2003 visit was low at 220℃. The replacement with a
recuperator of same capacity in July 2004 raised the exit port air temperature to 245℃
(maximum temperature at 297℃). According to Primary Steel, “there is no more leaks after
replacement”; nevertheless, we took measurements of the exhaust gas temperature and oxygen
content at the intake and exit ports of the recuperator on September 1. The results are shown
on Table Ⅲ-3-2.
The combustion air ratio (m) indicator located in the furnace control room was reading 0.92.
This value is doubtful; it is displaying either a compensated value to offset the air leaks or the
Ⅲ‐23
meter is faulty. It is necessary that Primary Steel pursue the matter at a later date.
The exhaust stack was issuing a slightly smoky gas, however the oxygen content of the
exhaust gas taken at the intake port of the recuperator (furnace exit port) indicated the level
indicative of good combustion condition within the furnace.
Table Ⅲ-3-2 Exhaust Gas Temperature and Oxygen Content

at the Front-end and Rear-end of the Recuperator
Item Number of Intake Port Exit Port Difference

Sampling
Temperature First time 606 324 282
o
( C) Second time 586 321 265
Oxygen First time 2.3 5.3 + 3.0
Content (%) Second time 2.0 4.4 +2.4
Measurements were taken at the temperature measurement openings at the front-end and
rear-end of the recuperator. Since only 1 oxygen meter was available, we measured
temperature first followed by oxygen; thus, in all cases, oxygen and temperature were not
simultaneous measured.
Since the oxygen content level of the exhaust gas at the exit port was greater than that of the
intake port by 2.4 – 3%, it was conceivable that combustion air was leaking into the exhaust
gas inside the recuperator and, as a result, the temperature of the exhaust gas at the exit port
was lowered. From the measured oxygen content, the air ratio could be roughly estimated to
be resulted by air leak of approximately 17% to flow rate of exhaust gas. This level was
sufficient enough to be remedied from the standpoint of energy conservation. We have,
accordingly, advised the corporate side “to take advantage of next plant closing to inspect the
recuperator for air leaks.” In addition, we have demonstrated a method of calculating the
exhaust gas flow rate on the basis of the characteristics of the fuel and to obtain an estimate of
leaked air.
(4) Improvement of furnace doors

Improvements of the following items have been completed:
i) Fine adjustment of charging billets by installation of a winch at the billet charging port
ii) Installation of width-adjustable door on the billet discharging port
Ⅲ‐24
iii) Improvement of sequencer on the insertion pusher side.
iv) Improvement of sequencer on the billet-discharging door: The door occasionally
remained open too despite the improvement. The corporate side explained that the
cause was deformation of the billets and it was unavoidable.
(5) Temperature maintenance of the fuel heavy oil

With respect to fuel oil temperature, setting of 90℃ was raised to 110℃. In addition, we
strengthened insulation of piping and flexible tubing feeding the burners. With these measures,
the corporate staff felt that spraying improved and combustion looked smoother (fuel oil
temperature was slightly higher than the temperature set in usual operation).
(6) Demand control of power reception

This item was not implemented. The corporate side admitted that the problem was beyond the
level of staff capability in techniques and knowledge, and the cost was prohibitive.
The billing system for the electrical power consumption is composed of the combination of
basic and specific duty charges. The basic charge is imposed on monthly maximum power
consumption measured in terms of 15-minute demands. The time period of 15 minutes is too
short to render control by means of manned watch. Thus, deployment of automatic
measurement system is appropriate for monitoring and requires integration into the FAS
(Factory Automation System).
Daily power control is also important, however, this function may be implemented on the
basis of various power indications in the power distribution system. The simplest approach is
to read off various cumulative power consumption indications at the same time period on a
daily basis, calculate the differences with the readings of the previous day and summarize the
results by Department. This method would generate clues for further approaches to energy
conservation. Data so obtained could also be used to generate the daily load curve. In order to
obtain more detailed equipment data for energy conservation, power meters would be
required.
(7) Energy conservation measures for air compressors

1) Energy conservation measures of priority
- Reduction of leaks.
Currently, half of the system accounts for 12.1% of compression leaks. For the entire
system, the leak may exceed 20%. Thus, inspection and repairs are urgently required.
Institution of periodic inspection schedule is also advisable.
- Estimate the pressure requirement of compressed air and adjust the discharge pressure.
Ⅲ‐25
Pressure loss reduction in piping can be expected by looping of piping system and
eliminating leaks (reduction in flow rate). Installment of boosters where high pressure is
required must also be considered. In addition, consider whether there are other measures
to facilitate energy conservation.
2) Consideration of air compressor loading rate
There are 2 units of 250hp (186kW) air compressors installed and one of them is always in
operation (and the other in standby). Since it is constantly loaded and unloaded repeatedly, it
is conceivable that the compressor is a device of overcapacity.
i) Electrical measurements
In an effort to estimate the loading factor of the compressor, loading and unloading
time were measured and electrical measurements during periods for loading and
unloading were made. Each measurement was carried out twice and the mean values
were adopted for calculation. Table Ⅲ-3-3 presents the result of measurements.
The measurements were taken when the compressor No. 2 was in line during the
production of 10mm reinforcing bars. Discharge pressure conditions for pressure
control were set at Pmax = 0.57MPa and Pmin = 0.54MPa.
Table Ⅲ-3-3 Electrical Measurement Results

Item Loaded Unloaded
Time (s) 9.715 5.69
Time Rate (%) 63.1 36.9
Voltage (V) 433.5 421.5
Current (A) 337.5 232
Power (kW) 216.5 149.5
Power Factor (%) 87.2 86.1
ii) Estimation of loading factor

Compressor output
Pout = 186kW×0.631 = 117.6kW
Compressor input as power consumption
Pin = 216.5kW×0.631 + 149.5kW×0.369 = 191.8kW
Proportion of power consumption when in full (100%) operation of Pin
191.8kW/216.5kW = 0.886 (88.6%)
Proportion of power consumption when in unload of Pin
149.5kW/216.5kW = 0.691 (69.1%)
Ⅲ‐26
iii) Estimation of optimal rate
Efficiency of the compressor may be expressed as a ratio of its output and input in the
following manner:
η = 117.6kW/191.8kW = 0.613 (61.3%)
When the ratio of the nominal output (186kW) and the output of full load (216.5kW)
as η100, then it is
η100= 186kW/216.5kW = 0.859 (85.9%).
If the operational efficiency is 61%, installment of inverter type of air compressor is
difficult to establish as economically efficient. Thus, we have made a
recommendation to consider leak detection discussed above to determine the
measures to prevent diminution of air flow rate and pressure loss at the exit port and
to consider installation of the inverter-controlled air compressors at the time of future
occasion to replace the air compressors.
(8) Measures the Primary Steel Corporation has implemented

1) Installation of a compressor for use when the mill is shut down
In order to supply required compressed air during the period of mill shut down, the
Corporation has acquired a small, 75hp air compressor (previously used unit) so that the larger
compressors may be turned off (Aug 2005).
2) Temperature control of air conditioner for offices
Issued a directive to the employees to turn off the air conditioning when not in use (as a
matter of fact, we have noted that some of the thermostats have been set low).
(9) Miscellaneous
1) One of inappropriate practices we noted was that defective finished products were stacked at
various places on the premises. Such a practice is serious enough to offset all the steady
efforts for energy conservation the Corporation has been accumulating over these years. We
have thus attempted to convince the corporate staff that the following efforts would be
meaningful while improving the product yield significantly contributed toward conservation
of energy.
- Reducing down time
- Increasing productivity (reducing losses) - According to Mr. Ramon, the process yield
reached 95%, however, observation of the site gave us the impression it was actually
less. We feel that raising the product yield even by 1% is needed.
2) 5S of rolling operation electrical control room
When we looked at the electrical control room of the rolling mill, we were surprised by the
Ⅲ‐27
cleanliness of the room. Its cleanliness made us wonder that this was in a plant and gave the
impression that not a spec of dirt could be found in the room. Mr. Go told us that the staff
decided that they should have at least one thing that they could be proud of. We expect that
this movement would affect other units of the plant, and if it does, implementation of energy
conservation would become easier in this mill.
(10) Assessment of corporate energy conservation activities

Implementations of the diagnostic recommendations described in 3.2 as well as improvement
efforts conducted by the Corporation are shown in Table Ⅲ-3-4.
Table Ⅲ-3-4 Results of Corporate Energy Conservation Activity

Recommended Technology Adjudication Status of Implementation
(1) Heat recovery from the furnace exhaust gas, and reheating furnace issues
a. To raise the preheating Yes New recuperator was installed in 2004. Air
air temperature temp. is 245℃ from 220℃.
b. To maintain the recuperator Yes The worn out tubes end was closed.
minimizing air leakage Recuperator house-keeping is
scheduled every month.
c. To solves the furnace door Yes Lifting type cover was installed at charging
opening issue, and to maintain door. Discharging door opening time was
the efficient combustion reduced by 3 seconds. Fuel oil temperature
was raised to 110℃ from 90℃ to attain the
efficient combustion.
(2) Air compressor: Yes Air leakage is continuously monitored by
To minimize the air leakage mechanical maintenance.
(3) Demand control of electricity No Under feasibility study
receiving/transformer equipment
Ⅲ‐28
4.1 Summary
The seminar-workshop was held on September 2, 2005.
Mr. Matanog M. Mapandi, Assistant Secretary of DOE made the opening speech. The seminar
and workshop attended by 42 participants appeared to be meaningful to attendants and may be
considered to be a successful one.
(1) Date and time

September 2 (Friday), 2005 8:30: Start of registration, 17:00: Closed
(2) Venue
Second floor Yakal Room, Dusit Hotel Nikko, Makati City, Philippines

The contents discussed in the workshop are shown in the attached program (Material No.
D-110). Representatives of the Philippines presented an overview of the DOE’s energy
conservation efforts and the Wholesale Electricity Spot Market (WESM) as well as 2
industrial-sector reports. ASEAN participants presented 3 reports but those of Indonesia and
Vietnam were repeated presentation of those reported in a meeting in Cambodia.
(4) Participants (List was not circulated)

Philippines:
Hon. Matanog M. Mapandi, Assistant Secretary, Department of Energy (DOE)
Mr. Marlon Romulo U. Domingo, Sr. Science Research Specialist, DOE
Mr. Eric Naovarette, Science Research Specialist, DOE
Mr. Oscarlito C. Malvar, Science Research Specialist, Dep’t of Science & Technology
(DOST)
Ms. Rochelle Retamar, Science Research Specialist, DOST
Approximately 30 participants (number of attendance certificates issued, according to Mr.
Domingo) were representing the industrial sectors (including the steel industry) of the
Philippines. Presence of consultants was conspicuous among the participants (including
ESCO’s; some were former DOE staff members).
ASEAN Center for Energy (ACE):

Mr. Ivan Ismed, Assistant Project Coordinator
Ⅲ‐29
Malaysia:
Mr. Ghazali Talib, Energy Audit Engineer, Energy Industry & Sustainable Development
Division – MIEEIP, Pusat Tenaga Malaysia (PTM)
Indonesia:
Mr. Subagyo, Supervisor, Pencana dan Evaluasi Produksi, PT Kertas Leces (Persero)
Vietnam:
Mr. Van Long, Official on Energy and Environment, Ministry of Industry, Science and
Technology Department
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical Specialists
4.2 Results of the Seminar and Workshop
(1) Opening ceremony (speeches)

1) DOE of the Philippines
Mr. Mapandi, Assistant Secretary of DOE made the welcoming speech. He pointed out that
consumers and industries ought to be conscious of energy conservation and that we all
required to faster our skills in conservation including technology and structures. He stressed
that, to achieve success in energy conservation efforts, cooperation within each of the
industries was mandatory and mutual support within ASEAN nations was required. He cited
steel, food and chemical industries of the Philippines as examples in which such cooperation
was taking roots.
2) ECCJ
Mr. Tanaka, representing the Japan side (METI and ECCJ) discussed the intended objectives
of the Project, its development, current status as well as the intentions of the government of
Japan concerning cooperation and contribution toward the member nations of ASEAN.
3) Asian Center for Energy
Mr. Ismed read the message from Dr. Weerawat, Executive Director of Asian Center for
Energy (ACE). The message stated that, in view of the sky rocketing petroleum prices, energy
conservation was increasingly important in the current world. The message specifically
touched upon the Program of the Promotion of Energy Efficiency and Conservation
(PROMEEC).
(2) Session 1 Activities of EE&C
1) Energy Efficiency and Conservation Promotion Activities in Philippines
Ⅲ‐30
- Mr. Domingo (Material No. D-120)
His discussion included objectives, strategies, educational campaigns, energy management
advisory services, demand-side management, the “Don Emillio Abello EE Award” and other
topics. Especially interesting was the introduction of the new DOE motto, the “EC Way of
Life” (the DOE staff was wearing the tee shirts bearing the new motto at the time of site
visits).
2) Energy Efficiency and Conservation Activities of Industries in Japan
- Mr. Tanaka (Material No. D-121)
He described structural changes in energy consumption in Japan, historical review of
regulatory and administrative changes on energy conservation, efforts of Japan’s industries
toward energy conservation, Action Plan of Keidanren and many of the ECCJ activities. We
believe that these topics were helpful to participants as reference information.
(3) Session 2 Examples of EE&C activities toward the industrial sectors
1) Overview of Wholesale Electricity Spot Market - Mr. Fernandez (Material No. D-122)
He described the development of the Wholesale Electricity Spot Market (WESM) and what it
means to the South East Asia and proceeded to state that WESM is becoming the new trend in
the Region. The talk we felt was very interesting.
2) Energy Efficiency and Conservation Best Practices in Chemical Industry
- Mr. Veloso (Material No. D-123)
His talk centered on his successful effort to develop a method of producing cold water by
applying waste heat. Through his work with the RI Chemical Corporation he was successful in
applying Vapor Absorption method to produce cold water.
3) Energy Efficiency and Conservation Best Practices in Food Industry - Mr. Erestain
He spoke on examples of energy conservation through efficient lighting system and motors
but he spoke without any presentation materials, rendering understanding of his talk quite
difficult.
4) Energy Efficiency and Conservation Best Practices in Iron & Steel, and Food Industry,
Malaysia - Mr. Talib (Material No. D-124)
As a part of PTM (Pusat Tenaga Malaysia) activity, the government of Malaysia provides free
energy conservation audit. In connection with this service, the author has visited plants of a
variety of industries for energy audit and will summarize his experience herein. PTM has
acquired a variety of measuring equipment for the purpose of energy audit.
One of the steel industry cases, the Malayawata Corporation has an electric furnace and a
rolling mill in its organization and worked on many of the issues of the present workshop such
Ⅲ‐31
as those involving furnaces, compressed air, electrical power and cooling water, and the case
certainly would of interest to the participants of this workshop (many participants belonging to
the steel industry). In another example, in manufacturing addible oil (palm oil), the company
has shown us excellent results.
5) Energy Efficiency and Conservation Best Practices in Pulp & Paper, Indonesia
- Mr. Subagyo (Material No. D-115)
The talk was identical to one presented in Cambodia.
6) Energy Efficiency and Conservation in Ceramic Industry, Vietnam
- Mr. Long (Material No. D-125)
The talk was identical to one presented in Cambodia, but a different speaker presented it.
(4) Session 3 Results of the follow-up visits and the workshop
1) Follow-up Energy Audit Findings at Garment Factories

- Mr. Domingo & Mr. Amano (Material No. D-126)
Concerning this theme, materials were prepared by ECCJ. Of the materials presented, Mr.
Domingo of DOE has taken initiative in the initial portion of the presentation (covering 3
slides) contributing the objectives of the ASEAN PROMEEC and its activities. Mr. Amano
presented the remainder. His presentation centered on the technical aspects of electric power
and furnaces, which appeared to have amply answered the questions of many of the
participants.
2) Barriers and Measures to implement EE&C - Mr. Ogawa (Material No. D-117)
Using the data of the past year, he has skillfully described the current status while
emphasizing on its ramifications on the Philippines and answering many of the questions
posed by the workshop participants.
3) Technical Directory (TD) - Mr. Tanaka & Mr. Ismed (Material No. D-118)
They have explained the purpose, method of compilation, format and other details of technical
directory and illustrated their talk with many actual examples. Mr. Ismed presented the
exemplary cases.
4) Database/Benchmark/Guideline for Industry - Mr. Ogawa (Material No. D-119)
Because of shortage of time, a short discussion of this item was presented and summarized.
(5) Q&A Session

Some questions were posed during presentations but this Q&A session was held at the end of
the workshop. The participants asked many questions, but perhaps because of presence of some
experienced consultants; they gradually turned into criticisms against governments. Most
Ⅲ‐32
frequent voices pertained to the invalidation of the energy conservation bill submitted by DOE
of the Philippines due to the lack of action within the time limit after the legislation of specified
duration; they were urging the government (DOE and Department of Science and Technology)
of the Philippines requiring more efforts.
Also numerous was the suggestion that the security protection requirements of DB/BM/GL
were impracticable and that data collection and analysis themselves (in major industries) were
too cumbersome.
(6) Closing speech

Ms. Teresita M. Borra, Director, Energy Utilization Management Bureau, DOE was scheduled
to give the closing speech but was unable to attend. Mr. Domingo, in her stead, gave the closing
talk.
Ⅲ‐33
IV. Indonesia (Paper/Pulp and Textile Industries)
This survey includes a follow-up energy audit of PT KERTAS LECES, whose initial Phase 1
energy-conservation audit was carried out from January 22-25, 2001, and a new
energy-conservation audit recently carried out on a spinning mill. A workshop was also held in
Jakarta, at which case studies of energy-conservation activities in various industries were reported.
1.1 Implementation period

December 5 to December 9, 2005
1.2 Sites of Implementation

Follow-up investigation: PT KERTAS LECES, Paper Mill (Leces Village, Jawa
Timur District, about 120km southeast of Surabaya City)
New energy-conservation audit: INDUSTRI SANDANG NUSANTARA (UNIT PATAL
GRATI) Spinning Factory (Jawa Timur District, about
80km southeast of Surabaya City)
Seminar workshop: Jakarta City

December 2005, 5 (Monday): Follow-up energy audit (PT KERTAS LECES)
6 (Tuesday): Follow-up energy audit (PT KERTAS LECES)
7 (Wednesday): Follow-up energy audit (PT KERTAS LECES)
8 (Thursday): Walk through energy audit (PT Industri Sandang Nusantara,
Patal Grati Spinning Mill)
9 (Friday): Preparation of report; visited PT KERTAS LECES to
receive information materials.
12 (Monday): Seminar workshop at Jakarta

ACE:
Dr. Weerawat Chantanakome, General Director
Mr. Christopher G. Zamora, Project Manager
Indonesia:
Ms. Meryam Ayuni, Directorate General of Electricity and Energy Utilization, MEMR
(Focal Point of Indonesia)
Mr. Parlindungan Marpaung, Inspector of Electricity, MEMR
IV‐1
Japan:
International Engineering Department, ECCJ
The background situation in Indonesia
(1) General information about Indonesia

- Area: about 1,890,000km2 (about 5 times that of Japan)
- Population: about 215 million (according to the demographic survey of 2003)
- Religion: Islam 87%, Christianity 10%, Hinduism 2%
- System of government: Republic
- Economy: Major industries: mining industry (petroleum, LNG, aluminum, tin), agriculture
(rice, rubber, palm oil), industry (wood products, cement, fertilizer)
GDP per capita: $954 (2003)
Economic growth rate: 4.5% (2003)
Currency:rupiah, ¥1 = about 80RP (rupiah) (as of December 2005)
Trading (2003):
Exports: petroleum and gas (25%), transportation equipment and
parts (17%), textiles and clothing (12%), etc. are exported
to Japan (21%), U.S.A. (13%), Singapore (8%) (according
to Indonesian statistics). Total value of exports: $61.058
billion (according to IMF statistics).
Imports: general machinery and transportation equipment (26%),
fuel and lubricants (24%), chemical raw materials and
products (16%), etc. are imported from Japan (16%), China
(12%), and Singapore (11%) (according to Indonesian
statistics). Total value of imports: $32.61 billion (according
to IMF statistics)
- Economic situation: After the Asian Currency Crisis of July 1997, the Indonesian government
promoted structural economic reforms based on an agreement with the
IMF. The economy is now experiencing a recovery, supported by strong
private consumption and free from the supervision of the IMF at the end
of 2003. However, domestic and foreign investments have not yet
recovered to the levels experienced before the currency crisis and, since
his election, President Yudhoyono has given the expansion of foreign
investment top priority.
(2) Energy situation
Oil prices have risen 10 times in the past five years, and the present gasoline price is US$0.5/L.
The cost of electricity is US$0.05/kWh.
IV‐2
2. Follow-up Survey of the Pulp and Paper Mill of PT KERTAS LECES
2.1 Outline of the Pulp and Paper Mill of PT KERTAS LECES
(1) Outline of the company

The company was established in 1938 during the period of Dutch administration. The pulp and
paper operation was started on February 22, 1942, with the No. 1 paper machine. The company
was originally owned by a Dutch company, nationalized after independence in 1961, and
privatized in 1982. It now has five paper machines with a total production capacity of 570t/d.
Actual production is between 120 and 140 thousand tons per year.
The first energy-conservation audit (Phase 1) was carried out in January 2001. After this initial
investigation, the company vigorously promoted energy-conservation activities and achieved
great success, with the results being reported at every PROMEEC Seminar. While the company
was very cooperative in the present investigation it was, however, apparent that they were
experiencing business problems due to changes in the external economic environment. When we
visited, the plant was operating at less than half its capacity and several major facilities were
inoperative.
The situation during the first energy audit and the follow-up investigation were as follows:
Company name: PT Kertas Leces (Persero) Pulp and Paper Mill

Location of the plant: Jl. Raya Leces, Leces, Probolinggo 67202, Jawa Timur – Indonesia
Tel: 632-62-335-680993 Fax.: 632-62-335-680954
Products: Printing paper, industrial paper, tissue paper, news print paper,
bagasse pulp
Production: 120-140 thousand t/y
Number of employees: About 3,150 (three eight-hour shifts with three groups of workers)
(2) Facilities and energy consumption at the paper mill
1) Outline of the operation

Although the production level was high during the first energy-conservation audit (Phase 1),
the present production level is very low due to the slump in sales of the operation’s major
products such as newsprint (about 40% of total output).
2) Facilities
Boilers for power generation: 90t/h × 4.484MPa × 5 units. Fuel was changed from heavy
oil to natural gas in 2003, and economizers have recently
been installed.
Recovery boilers: 40t/h × 4.59MPa × 1 unit & 45t/h × 4.48MPa × 1 unit
Liquor content = 43%
Steam turbines: EBPT (back-pressure turbine) × 1 unit, output =19,400kW
IV‐3
CT (condensing turbine) × 1 unit, output =19,400kW
ECT (extraction c. t.) × 1 unit, output = 27,000kW
Paper machines
No. 1 machine: 2,700mm × 125m/min (for cardboard liners: 30t/d)
Steam consumption: 0.6MPa steam × 3.5t/t-paper
Electricity consumption: 876kWh/t-paper
No. 2 machine: 2,700mm × 325m/min (for industrial paper and writing
paper: 60t/d)
Steam consumption: 1.25/0.6MPa steam × 3t/t-paper
No. 3 machine: 6,000mm × 550m/min (for writing paper and printing
paper: 175t/d)
Steam consumption: 0.6MPa steam× 3t/t-paper
No. 4 machine: 2,400mm × 900m/min (for tissue paper: 30t/d)
Steam consumption: 3.3/1.25MPa steam × 3.5t/t-paper
Electricity consumption: 1,528kWh/t-paper
No. 5 machine: 7,000mm × 750m/min (for newsprint paper, writing paper
and printing paper: 275t/d)
Steam consumption: 0.6MPa steam × 1.8t/t-paper
Facilities for bagasse pulp
DIP (De-inking Plant: facility for de-inking)
Wastewater treatment plant
Water supply pump: 11 units
Air compressor: 6 units
3) Amounts of energy consumption and energy costs
The production volume, energy consumption, and energy price are shown in Table IV-2-1 and
Table IV-2-2.
IV‐4
Table IV-2-1 Production volume of paper and amounts of energy consumption
Items Year
2000 2005
Production & Used Energy Unit
Baggase pulp t 14,876 823
De-inked pulp t 42,865 0
Paper production t 135,717 114, 273
Energy source toe/y toe/y
Fuel oil kL/y 147,832 143,397 5,184 5,028
LPG kg/y 267,290 297 0 0
Natural Gas km3N/y 0 0 951,149 81,464
Electricity MWh/y 219,628 143,669
Table IV-2-2 Energy price (US$)
Energy Source Unit Price (2000) Price (2005)

Fuel oil* L 0.0428 0.3937*
3
Natural Gas m N - 0.1228
LPG kg 0.1479 -
Electricity** kWh 0.0216 0.0501
* Excl. Transport Cost
** Electricity only, average price, excludes steam cost to plant
*** LPG used at PM (Paper Machine) #3 for Infrared Dryer up to Nov. 2001 and then
changed to Natural Gas. Natural Gas was used at PM #3 and at the Power Plant, but
since 2003 PM #3 has no longer used Natural Gas.
2.2 Summary of the Results of the Previous Energy Audit of PT KERTAS LECES Pulp and Paper
Mill
The following issues were pointed out in the previous energy audit as being in need of
improvement. It was noted that the “5 S’s” were not being enforced sufficiently.
(1) Measures for energy conservation in the use of boilers and turbines for power generation
The percentage in-house power generation at LECES Mill in 2000 was about 99%. Since the
price of heavy oil was US$43.5 (¥5,000)/kL, which was very inexpensive, the cost of in-house
IV‐5
power generation was only $0.0052 (¥0.60)/kWh for extraction power generation and US$0.019
(¥2.17)/kWh for condensing power generation.
The cost of condensing power generation was about half that of purchased power (RP315,840 =
¥4.62/kWh for peak hours and RP263,200 = ¥3.85/kWh for night-time use). Therefore, any
further investment in electricity saving was not usually worthwhile. Furthermore, since the
condensing power generation had to be increased by about 0.45t/h in order to save 1t/h of steam,
although the simply calculated steam cost was about US$3.78 (¥435)/t, the actual effect of any
saving was thereby reduced to little more than half this amount: US$2.09 (¥240)/t. This fact
indicated that any effective investment in further energy conservation was practically
impossible.
1) Currently, large amounts of steam are leaking from steam traps, valves, piping, and heaters all
over the plant, and heat insulation and painted surfaces are not adequately maintained.
2) Reduction of wasteful operation of water supply pumps (BFP)
A total of four pumps (three BFPs for Stage III and a BFP for Stage IV) are currently in
operation. Although their design pressure is 6.85MPa (2.9m3/min), 6.MPa should be adequate.
Since the maximum load for pumps is 240m3/h or less, one or two pumps are sufficient in
operation (BFP: Boiler Feed Pump)
The actual loads on the pumps are 25, 25, 27, and 26 Amperes, respectively; making the total
load 889kW while the rated load is 36.5 Amps. If only one pump was operated, then 600kW
could be saved, and 390kW could be saved with two-pump operation. The conversion cost is
estimated at US$4,350 (¥500,000) for the 30m of 150A piping and two diversion valves
required.
3) Excessive blowdown water ― installation of drain filters
While the electrical conductivity of the supply water is only 0.788mS/m, the blowdown water
amounts to 15% of the average volume of supply water used for the four evaporators. The
heat contained in the superheated blowdown water corresponds to 4.67t/h of steam and all this
heat is currently wasted. Since the specified maximum electrical conductivity of circulating
water for boilers operating at a pressure of 5.0MPa is 80mS/m, (according to JIS B
8223-1977) the amount of blowdown can be reduced to about 1% (= 2.5t/h) for all four
evaporators, even if the electrical conductivity of the supply water is kept at the present value
of 0.788mS/m.
LECES Mill has an excellent water purification system that provides pure water with an
electrical conductivity of 0.5mS/m or less. However, the electrical conductivity of the
condensate can be up to 0.788mS/m. Installation of drain filters would prevent any resultant
damage to the boiler tubes.
Total cost for the installation of drain filters and changeover of piping: US$261,000 (about
¥30 million).
Although the average temperature of waste gas can be as high as 214.2℃, waste heat can be
recovered down to about 130℃ since the sulfur content of the heavy oil used at LECES Mill
is low as 2.5%. However, the price of heavy oil, about ¥5,000/kL, is already so low, as
described above, that it is effectively impossible to invest in further energy conservation.
IV‐6
By taking the measures described above, it is expected that the heat efficiency of this boiler
plant could be improved up to about 93%.
4) The temperature of the steam generated by the boilers is low.
It can be seen from the daily logs that the steam pressure is kept stable between 4.4 and
4.5MPa, but the two-day average values of steam temperature for No. 1 to No. 4 boilers are
425, 435, 445 and 405℃, respectively, showing fluctuation among the individual boilers. The
temperatures of No. 1 boiler and No. 4 boiler are particularly low. By raising the temperatures
of No. 1 and No. 4 boilers by 10℃ and 30℃, respectively, the amount of power generated
would be increased by 7kW/t and 2kW/t, respectively.
Steam condensate would also decrease by the following amounts:
No. 1 boiler 2kW/t × 54.6t/h/200kW/t = 0.55t/h

No. 4 boiler 7kW/t × 39.5t/h/200kW/t = 1.4t/h
This would result in about 2t/h in total. Therefore, a profit of about US$60,400/y (= 2t/h ×
8,000h/y/11.5t/kL × US$43.4 (¥5,000)/kL, or about ¥7 million/y) could be expected.
5) Extraction pressure of the turbines is too high.
In spite of the fact that a steam pressure of 0.25MPa or less is sufficient for the evaporators
and all the other facilities, except for PM2 (No. 2 paper machine), the Yankee dryer of PM4,
and the digesters for the bagasse pulp, the pressure at the LP steam header is set at 0.5MPa.
Since drain attack is not a concern because the extraction steam is sufficiently superheated,
the pressure could be decreased to 0.4MPa or less (although it would be necessary to check
with the manufacturers as to the blade strength, thrust bearings, etc. first). This would increase
the extraction power generation by 10kW/t × 50t/h = 500kW, decreasing the condensation
power generation by about 2.5t/h. A profit of US$75,480/y (= 2.5t/h × 8,000h/y/11.5t/kL ×
US$43.4/kL, or about ¥8.7 million/y) could be expected.
6) The exhaust temperature of the condensing turbines and extraction condensing turbines is too
high.
The values of 59-62℃ for the condensing turbines are too high and even those of 39-46℃
for the condensing extraction turbines are relatively high. The water used is cooled in cooling
towers but the temperature of the cooling water can still be up to about 33℃ because the
average ambient temperature is 30℃ and average ambient humidity can be as high as 65%.
As a result, exhaust temperatures can rise to about 42℃. On the other hand, the temperature
of the fresh water is about 27℃ throughout the year, which is comparatively low. Since about
700m3/h of fresh water is used, it would be desirable to heat the fresh water using part of the
output from the condenser tubes.
In addition to the increase in power generation, 10% or more can decrease the amount of
condensate because the efficiency of dewatering is improved by the rise in temperature of the
showering water used for the paper machines.
Since the fresh water has a high level of hardness and contains TDS, particularly SiO2, stains
on the tubes may cause a problem. It is necessary to carry out periodic flushing or to provide
automatic cleaning equipment.
IV‐7
(2) Problems and recommendations relating to evaporators and recovery boilers
1) The wastewater from the bagasse pulp contains large amounts of calcium silicate and calcium
oxalate derived from the large amounts of calcium silicate in the fresh water and bagasse, and
this causes a serious problem with tube staining. Taking this problem into consideration,
LECES Mill always alternates the use of No. 1 evaporator and No. 2 evaporator, while the
other is being cleaned in a five-vessel quadruple-utility operation. However, it is also
necessary to wash the other three evaporators. By raising the design value for the
concentration of rich black liquor from 37.8% to 45%, the amount of generated steam per unit
of solid content is increased and fuel costs are reduced. In addition, corrosion of the IDF and
other parts are reduced due to the decrease in the use of heavy oil with high sulfur (S) content.
The profit from this is expected to be US$20,000/y.
2) It is recommended that the supply vessel used be changed from #5 vessel to #4 vessel.
Since the temperature of the dilute black liquor supply can reach 85-90℃, the liquor should
be supplied to #4 vessel, whose design vaporization temperature is 70-75℃. This will save
energy because the steam vaporized in #4 vessel can then be used as heating steam in #5
vessel. The profit from this is estimated to be US$7,600/y.
3) The CO content can be as high as 5ppm, whereas the remaining O2 content in the exhaust gas
can be as high as 7.0%.
Since the maximum allowable CO concentration in the exhaust gas is 20ppm, this value does
not cause an environmental problem. However, it is still important to control the CO content
in the recovery boilers. Each recovery boiler has four injection burners for the black liquor,
but only three are used at present. Since this causes non-uniform combustion, decreasing the
size of each burner should use all four burners. Because a large amount of supplementary
heavy oil is used, the remaining O2 content will then be reduced to 2% or less, resulting in an
increase of generated steam by about 3%. The profit from this is estimated to be US$980/y.
4) It seems that considerable amounts of NaO, NaCO3, and NaSO4 are dispersed in the exhaust
gas from the cascade evaporators used for the condensation of black liquor (making use of the
heat of the exhaust gas from the recovery boiler). The recovery rate of NaOH could be
increased from 50% to 90% or more by installing a scrubber to collect NaO + NaCO3 and by
using CaO of better quality. The limestone being used at present is a yellow color, indicating
that its purity is low.
If 30% of this uncollected 50% NaOH is then successfully recovered (assuming that 80% of
the design value is collected), an annual profit of US$613,700(= ¥70million) could be
obtained through the increase in NaOH recovery.
Since the cost of steam is low, it is possible to install evaporators for drying the exhaust gas
from the scrubber, but it is better to utilize the heat of the exhaust gas from the heavy oil
boilers, whose temperature is 200℃ or higher (As described above) for the condensation
process, since this would not require the use of any additional energy.
Since the necessary construction cost is estimated at only about $435,000 (¥50million), this
renovation should also be made for reasons of environmental pollution control.
IV‐8
(3) Problems and recommendations relating to PM5
1) Promotion of the “7 S’s” (Seiri, Seiton, Seiso, Seiketsu, Shitsuke, Sho-shigen and
Sho-enerugi)
Pulp and scraps of paper are scattered all around the plant. The campaign should start with the
first “3 S’s”.
2) Since the surface temperature of the dryer groups is roughly equal and since there is no
difference in steam pressure between the dryer groups, the condensed steam draining from the
dryers is not always discharged satisfactorily. This results in accumulation of the condensed
steam in the dryer cylinders causing an increase in the load on the driving motors.
Consequently, only one doctor is used in the dryer and the others have been removed (and
even the one remaining doctor does not actually work because it is kept raised).
The load on the doctors need not be large if they are well maintained. Therefore, all the
doctors should be reconditioned and put back into use. If doctors are not used, then
perforation and tearing are caused in the calender because paper scraps and powder residues
cannot be removed. In addition, adhesive materials attached to the dryer surface cause
pinholes in the paper and can adhere to the paper. This may result in the paper tearing.
Therefore, all doctors should be reconditioned and restored.
3) In order to implement energy conservation, it is necessary to stop the process in order to inject
steam equally to all 20 dryers in the steam drainage system, providing a pressure difference of
0.04MPa or more between the dryer groups. If this is not done, the driving load rises making
it impossible to increase the speed. If such an improvement is carried out, the optimum speed
could be increased to 750-1000m/min. Speeding-up the process requires an increase in electric
power (proportional to the speed raised to the power of about 2/3) and, since the steam
consumption rate is also improved, this results in significant energy conservations. Increasing
the speed to 1,000m/min could increase the present maximum daily production of 240t/day to
500t/day. This would produce remarkable economic benefits. Speeding-up the process can
also be realized by preventing paper break.
4) When paper break occurs, the operation is often restarted without eliminating the causes of
paper break. Thus, the average resetting time can be as short as 12.0 min/reset, as shown
below, but another paper break may soon occur. On PM5, paper break sometimes occurs 7 to
10 times a day. During the 300 days of operation per year, paper break accounts for 1.3% of
the total operating time on PM1, 7.8% on PM3, and 4.0% on PM5. The effect of preventing
paper break is significant because the energy-conservation effects are doubled when the large
amounts of defective paper wasted before and after the paper break are also taken into
account.
In particular, PM3 is out of operation for more than three weeks (23.4 days) each year. The
“zebra patterns” caused by the presence of adhesive materials are often observed on the paper
rolls at the 3P outlet of the paper press. Such stains must be cleaned off whenever a paper
break occurs. Since the removal of adhesive materials from the DIP is not sufficient, the DIP
IV‐9
pulp must be cleaned thoroughly.
5) The maintenance of dryer hoods is inadequate. All the hoods on the 2FL are open and some of
those on the 1FL are also open. This not only wastes energy but also adversely affects the
paper drying process. Hoods must be maintained properly and kept closed.
6) Repair costs in 2000 were only US$1.200 million, which corresponds to 1.5% or less of total
sales. The standard value for such repair costs in Japan is between 3 and 3.5% of total sales.
Since the labor costs for repair work in Indonesia are even less than those in Japan, this value
are too low. Judging from the present status of the plant, the decent facilities will deteriorate if
spending on maintenance is not increased to about 2.5%. The low operating rates of the paper
machines shown in Table III-2-3 reflect inappropriate levels of maintenance. In Japan, the
normal operating rate for such machines is about 95%, and some paper machines achieve 98%
or more.
Table III-2-3 Operating rates of paper machines at LECES Mill and the number of personnel
employed for each paper machine in 2000 (four groups in three shifts)
Paper PM1 PM2 PM3 PM4 PM5

machine No.
Operating 89.77 75.19 78.62 84.90 80.09
rate (%)
Number of 70 83 105 79 98
personnel
Speeding-up the process, using the measures described above, would increase production by
125t/day × 340 days/y = about 43,000t/y.
(4) Problems and recommendations relating to DIP
1) Actual production capacity is about 200t/day, whereas the design capacity is 250t/day. The
major bottleneck is the lack of capacity for rough screening. Changing the shape of the slits in
the screen plate could solve this problem.
2) The pulper has surplus capacity and the number of revolutions can be increased by 6%. The
capacity of the present facilities would then be increased to about 300t/day. However, the
following measures, described in 3) and 4) below, must also be taken in order to achieve this.
3) The amount of froth in the flotator (sponge cake-like aggregates of ink, fillers and pulp
attached to bubbles formed by the air injected during the de-inking operation) is abnormally
large, resulting in an excessive amount of good-quality pulp spilling out.
The percentage of reject froth that includes a large volume of good-quality fibers can be as
high as 5.7%. This must be reduced.
Five flotators are being operated in parallel. However, half will reduce losses if four of them
are used as primary flotators and the remaining one is used as a secondary flotator, increasing
IV‐10
the pulp yield by 2.9%.
Prices of used paper in Indonesia are high because used paper is currently imported. In
particular, ONP (waste newsprint) costs about ¥24/kg, which is about twice that in Japan. As
of 2000, 42,865t/y of DIP was produced using 61,151t/y of used paper. If this yield could be
improved from 70.1% to 73.0%, the following benefits would result. Considering the fact that
the yield of ONP in Japan is 85% or higher, it seems to be possible for this mill to achieve a
yield of about 83% because the used paper at this mill is of good quality. This means that an
increase of yield by 12% (18% overall) could be achieved.
61,151t/y - 42,865t/y/0.73 = 2,432t/y
2,432t/y × US$205/t = US$498,600/y (= ¥57.3 million/y)
4) Johnson screens are used for the final treatment of rejects and round holes of 5-6φ are used for
all screens, except for the tertiary screening.
Since large particles of foreign material are not removed, they circulate until they are crushed
and then pass through the secondary screen.
It is strongly recommended that the screen be changed to a slit plate with 0.20-0.25mm² slits.
By raising the yield to 83%, significant profits would result (as described below) because the
price of used paper at LECES Mill can be as high as US$205/t.
In 2000, 61,151t of ONP was used to produce 42,865t of DIP. If the yield were raised to 83%,
significant benefits would result, as described above. Furthermore, the scale of the sludge
incineration facilities required would be reduced.
42,865t/y/0.83 = 51,645t/y
51,645t/y― 61,151t/y = ▲9,506t/y
9,506t/y × US$205/t = US$1,950,000/y = ¥224 million/y
Investment: a rough estimation is $2,000,000 (¥230 million), including the renovation of the
incineration furnace.
(5) Yield of bagasse is low.
1) The harvesting season for bagasse is about 6 months, during which it is stored outdoors.
LECES Mill says that such bagasse stored outdoors does not deteriorate since hypochlorite
solution is used to prevent bio-deterioration. Although HYPO solution is sprayed on to
prevent bio-deterioration, mildew is observed growing even on newly brought-in bagasse
because the HYPO solution is washed away by frequent rain. Silos should be installed to store
the bagasse.
2) The yield of bagasse is only 36.8%, in spite of its high price of US$83 (¥9,545)/BLT.
Although the yield of bleached bagasse depends on its place of origin, it is usually 42% or
higher. Assuming that the actual production of pulp was 14,258t/y in 2000, the benefits
obtained by reducing the deterioration of bagasse in order to increase its yield would be:
35,508t/y - 14,528t/y × 0.9/0.42 = 4,377t/y

4,377t/y × $83 = $363,000/y (= ¥41.8 million/y)
Estimated construction cost of 15,000t of silo capacity: $1,300,000 (= ¥150 million)
IV‐11
(6) Paper machines other than PM5
1) There are 4 single canvases of PM2 at present. It would be better to increase this number to
eight. Half without reducing the drying capacity would then decrease the driving load.
2) Both the #1P and #2P presses of PM2 have a small diameter. It would be better to change
these to the #3P type that has a larger diameter.
3) The doctor of the dryer for PM3 is not being used. Since this is one of the reasons for paper
break, it should be reconditioned and put back into use.
4) PM1 has only primary and secondary cleaners. A tertiary cleaner should be installed, as in the
other PMs.
5) Furthermore, it is recommended that a fourth and a fifth cleaners installed or that FRU be
installed for PM3 and PM4. This would not be very effective in terms of energy conservations
because the energy cost is low, but it would be very effective in terms of resource savings
because the costs of used paper and pulp are high. If the amount of raw materials saved by
PM3 and PM4 were 3t/day and 5t/day, respectively, and assuming that the average price of
pulp was ¥50/kg and ¥30/kg, annual savings in raw materials would be about US$435,000 (=
¥50 million) each, totaling US$870,000 (= ¥100 million) overall.
Estimated facility costs are US$174,000 (= ¥20 million) and US$261,000 (= ¥30 million),
totaling approximately $435,000 (= ¥50 million) overall.
IV‐12
We visited the PT KERTAS LECES Paper Mill for two and a half days to carry out a follow-up
energy audit on the implementation of previous advice given by the ECCJ team in January 2001
and to investigate the other operations of the mill. Although the Indonesian MEMR was
supposed to play a key role in the follow-up energy audit, ECCJ actually led the survey.
The purpose of the visit was explained and the schedule was discussed. Since many of the
facilities were not operating, No. 3 paper machine was selected as the object of investigation.
Since a detailed energy audit had been carried out on the paper-making process in the previous
visit, this investigation focused mainly on the utility facilities and the detailed advice was given.
(1) Date of energy audit: December 2005, 5 (Mon.) 16:20 - 17:20

6 (Tue.) 9:00 - 16:00
7 (Wed.) 9:00 - 16:00 and
9 (Fri.) 13:00 – 14:00
Indonesia
MEMR:
Ms. Maryam Ayuni, Department of Energy Efficiency
(Indonesian coordinator, participated only in parts 5 and 6)
Mr. Parlindungan Marpaung, Inspector, Dept. of Energy Efficiency
PLN:
Ms. Sutji Rahayu, Jakarta Office (participated only in parts 5 and 6)
(3) Attendees from PT KERTAS LECES

Mr. Ir. Djoko Wiryono, Manager Litbang (Reporter at PROMEEC)
Mr. Ir. M. Nugroho Basuki, Manager Plant 1
Mr. Ir. Tri Prasetyono, Manager Plant 3
Mr. Ir. Didik Mudiarto, SI Plant 1B
Mr. Supriyadi, SI Plant 3B
Mr. Ir. Subagyo, SI PP Produksi (Reporter at PROMEEC)
Mr. Ir. M. Arifin, SI Penelitian
Mr. Gatot Subroto, SV Utilitas
Mr. Ir. Bondan As, SV KSP 3
Mr. Sutarmadji, SV Compressor
Mr. Imam Hadi, Listrik
Mr. Z. Abldin Iw, Konera 4 (Ir. stands for bachelor)
On December 5 (Mon), the purpose of the visit was explained and the overall schedule was
IV‐13
discussed.
On December 6 (Tue), PT KERTAS LECES explained the changes in the external environment
and a walk through on-site audit was carried out for the bagasse storage yard, power generators,
boilers, No. 3 paper machine, and the wastewater treatment plant. The investigation team
toured the plant and made comments. Since many facilities were not in operation, No. 3 paper
machine was selected as the object of investigation. Since a detailed energy audit had been
carried out on the paper-making process in the previous visit, this investigation focused mainly
on the utility facilities and the detailed advice was given. Issues such as the prevention of paper
break were also discussed.
On December 7 (Wed), a tour of the plant was undertaken, measurements were carried out on
air compressors and pumps (in the water supply room), and the rest of the time was spent
writing a report. We visited the mill once again on the afternoon of December 9 (Fri) to collect
additional information and materials.
The information and materials we received from PT KERTAS LECES included:
The “Boiler Performance Curve”, “Boiler Blowdown Volume”, “Specification and operating
rate of Air Compressors”, “Electrical power chart of paper machines”, and “Table of downtime
of No. 3 paper machine caused by paper break (2001-2005)”.
(5) Results and discussion of the investigation
1) Recent changes in the situation

PT KERTAS has produced significant results by following the detailed advice for
improvements given in the previous energy audit in January 2001, and by implementing its
own improvements such as fuel conversion from heavy oil to natural gas. The results of these
improvements have been reported at every PROMEEC Seminar Workshop making PT
KERTAS an “honor student” among the participants in this project. However, our impression
was that the external economic environment was worsening, and that the company was
fighting not only to save energy but also to keep operating smoothly. When we visited the
plant, it was operating at less than half capacity with many major facilities lying idle.
Therefore, the original plan to convert from gas fuel to coal was in jeopardy due to financial
restrictions.
While production in 2000 was about 135,700 tons, recent production has been reduced to a
level of 120,000 tons. Major changes in the operational situation are roughly as shown in the
following sections. Measures taken by PT KERTAS are also described. Questions and answers
are included in Material No. D-107.
a. Shortage of raw material (bagasse)

When we visited the plant, the depithing and pulpers were lying idle. bagasse is bought in
from sugar plants in Java, but shipments of bagasse have now decreased because, due to the
recent increase in fuel prices, it is now used as fuel within the sugar plants. The following
two measures may be taken to address this problem.
- To ask PTPN (Plantation Enterprises) to increase the supply of bagasse by using coal as
IV‐14
a fuel instead. This measure is expected to secure 68,000 tons in 2006.
- To find alternative raw materials, including long fiber wood such as Kalimantan.
b. Sluggish sales of newsprint paper
Sales of newsprint paper are decreasing because newspaper companies increasingly
produce newsprint paper by themselves. Although PT KERTAS exports newsprint paper,
production is decreasing. The operation of the DIP that treats used paper has therefore been
suspended. Consequently, No. 5 paper machine (PM5) has stopped producing newsprint
paper and is now producing printing paper instead.
c. Unstable supply of natural gas
PT KERTAS succeeded in reducing costs by converting from heavy oil to natural gas in
June 2003. However, the production volume of the natural gas field (owned by a PT
Pertamina-related company) is now decreasing and the pressure of the gas source supply is
also decreasing. For this reason, a quota system is now used for the natural gas supply,
which sometimes reduces daily production to 250-300 tons. To cope with this situation, the
amount of in-house power generation that uses natural gas has been reduced and electricity
is now purchased instead. They seem to be waiting for the discovery of new gas fields.
d. Price rise of heavy oil
Although the consumption of heavy oil is not as large, the price of natural gas goes up so
too does the price of heavy oil. As a result, the cost of fuel, as a proportion of the total
production cost, has risen from 17% to 22-23%. This value is comparable to the level
before fuel conversion, which was 24%. Possible measures for remedying this are as
follows:
- To improve energy efficiency.
- To convert the fuel supply yet again.
It was originally planned to convert from natural gas to coal in 2006, but this cannot now be
realized due to the lack of investment funds.
2) Situation at the time of the visit

The operating situation at the time of our visit was as follows, reflecting the changes in
environmental conditions mentioned above:
Equipment (Main product) (Capacity) Operating situation/ Reason for

suspension
PM 1 Cardboard liner 30t/D In operation
PM 2 Printing paper 60t/D In operation
/industrial paper
PM 3 Printing paper 175t/D In operation
PM 4 Tissue 30t/D Operation suspended maintenance
PM 5 Newsprint paper, 275t/D Operation suspended production
printing paper adjustment
Bagasse Pulp Plant, including the Depithing Plant,
Vacuum Evaporator, Recovery Boiler, Lime Kiln,
IV‐15
Re-causticizer & Chlor-Alkali Plant, DIP Operation suspended production
adjustment
Among the other facilities inspected, only three out of five power boilers were operating, and
only one out of three turbine generators. The wastewater treatment facilities were operating.
3) Energy prices and activities for reducing costs and consumption
Energy costs are as follows:
Natural gas: US$4.36/MMBtu
Heavy oil: US$9.60/MMBtu
Coal: US$1.90/MMBtu (Base: 22,190kJ/kg, 1Btu = 1.055kJ)
Electricity:
･Reactive Power Charge = 609 × {effective power (kW) - 0.62 × reactive power
(kVAr)} RP/kWh
This is the same in Japan as the charge is zero when the power factor is 85%.
･Active Power Charge: normal time = 439RP/kWh
@ Peak Load period (18:00-22:00) = 878RP/kWh
Total power consumption at PT KERTAS Mill is 17,400kW, of which 2,400kW
(14%) is purchased from PLN and 15,000kW (86%) is supplied by in-house
generation. The proportion of in-house generation was 99% at the time of
diagnosis in 2001.
Since PT KERTAS does not have an energy manager, a comprehensive, overall perspective
seems to be lacking.
4) Results of the follow-up diagnosis (in comparison with the previous results)
The items advised by Miyabe (technical expert of ECCJ) in the previous energy audit (January,
2001) are described in 2.2. Referring to the activity report on energy conservation submitted
by PT KERTAS in the PROMEEC Seminar Workshop, the explanation presented by PT
KERTAS and the comments made by the investigation team are listed in Table IV-2-4
(relating only to items that have not been implemented, however). Some items have not been
implemented because the level of operation is now much lower due to the environmental
changes mentioned above.
IV‐16
Table IV-2-4 Comments on the items which were identified by ECCJ previous audit
and have not been implemented
-
No. Finding PT’s Comment/Action Follow-up result
F Recovery Boiler
3 Change the FDF and IDF to the Has not been done yet: too Company policy on the payback
proper size, for both the quantity expensive period of investment is 3 years
and the head or less.
G Power Boiler
2 Should be connected to each Has not been done yet: the In the past, connecting the
pump by a common header so characteristics of the pumps are pumps was tried and major
that you can stop the two BFPs not the same. problems resulted.
and thereby save about 400kW of (The issue may still be worth
electricity. studying further.)
3 Change the FDF and IDF to the Has not been done yet: too Same as F-3 above
proper size, for both the quantity expensive
and the head.
4 Remaining O2 content is too high O2 monitor has been installed. PT is now controlling the
(4 to 7%, as measured by our Excess O2 in the stack can be remaining O2 content at 2-4%,
team) and should be reduced to adjusted to 2% manually. depending on load levels.
less than 2%. (Recommended that O2 be
reduced to 2-3%.)
5 Exhaust gas temperature is a little We have tried to add an There is no space to add a heat
high at 170 to 180˚C. economizer. The flue gas exchanger on-site.
temperature has been decreased
to 160˚C.
H Turbine and Generator
3 Electrical technician has Since 2001 we have had to PF has now reached about
mistakenly made some kind of repair the old capacitor and 0.95 and should be OK.
error with the Power Factor (PF) install a new capacitor. The
power factor has now increased
from 0.71 to 0.74. The budget to
install new capacitors is
US$100,000.
4 If the PF is rose from 70% to over New capacitors have been Confirmed the situation as
85%, then the pay back from the installed in the electrical described
Electric Company will cover company (PLN) line since
some of the cost. 2001 and no payments have
been needed to the Electric
Company for reactive power.
IV‐17
5) Results and impressions gained from the on-site survey
The impression gained from the on-site survey is that employees are seriously committed to
achieving a high level of operation. As described in the previous energy audit report (Phase 1),
the original motto of PT KERTAS, namely the “5 R’s” (corresponding to the Japanese “5S’s”
in Bahasa Indonesia), is posted everywhere throughout the plant and offices.
a. Paper machines
As for the paper break problem, we obtained specific data on this problem for No. 3 paper
machine. Although the occurrence and amount of resultant downtime fluctuates, the
frequency of occurrence is gradually decreasing compared with the data from 2000 (Table
IV-2-5). The speed of the paper machine (m/min) has not been changed.
Table IV-2-5 Occurrence of paper break on No. 3 paper machine
Year Number of Downtime due to Proportion of downtime

paper breaks paper breaks (min) (% of calendar days)
2000 (Phase 1 data) 2,292 33,691 6.4
2001 2,490 48,510 9.2

2002 2,579 34,310 6.5
2003 1,259 19,240 3.7
2004 2,258 40,245 7.7
2005 1,439 23,843 4.9
(Up to December 5)
We explained our experiences with the paper break problem in Japan (and how the
incidence of paper break was reduced by ensuring that the machinery was cleaned properly
whenever the operating rate dropped). They commented that they had the same experience
and that downtime had been reduced to as little as 4%.
b. Boilers for power generation
Three boilers are operated in order to supply the approximately 150t/h of steam required
(50t/h each). We asked why they didn’t just operate two boilers at 75t/h each, and they
replied that they operated three boilers for safety reasons because the natural gas supply
was unstable. It was understood that this was a separate matter from that of energy
conservation.
c. Power generators and power receiving installations: only one of three generators is being
operated.
d. Air compressor plant
Although the plant is spread over a large area, a central air supply system is employed. The
plant has four centrifugal compressors and two screw type compressors, of which two
centrifugal compressors (CENTAC: 500hp, KOBELCO: 500hp) were operating. The
IV‐18
KOBELCO model was newly installed after scrapping one of the screw type compressors
(commissioning had been carried out two weeks earlier, on November 23). In fact, four
compressors (including two screw types) were on standby, showing that the utilized
capacity was very low.
All the operating air compressors are of large-scaled type, and use suction vanes for
capacity control so that the partial-load vs. power consumption characteristics is poor. Past
data on power consumption has been obtained and will be studied (described later).
The control range of the discharge pressure is between 0.65 and 0.7MPa, which is relatively
high. This range has probably been set after taking possible pressure drops in the piping
into consideration. However, the actual fluctuation in discharge pressure is very small and
the pressure is kept at around 0.66MPa. This may be because the compressors are of the
centrifugal type.
Compressed air is supplied through a receiver tank and dryer (adsorption type).
e. Water supply pumps
We investigated water supply pumps that were representative of the utility facilities,
overall.
The eleven water supply pumps have a large capacity of 200kW, and water is supplied to
each plant from three sites located outside the mill (two sites in Ronggojalu and one site in
Sumber Kramat). However, when we visited, the facilities at only one site were in use
because some plants were out of operation. On the day we visited, water was being supplied
from a water reservoir in Ronggojalu, about 1km from the mill, using only two out of the
five pumps installed on the line. This is another example of low capacity utilization.
The power factor has been improved to 95% by installing phase advance capacitors on the
pump motors. Since a capacitor is installed on each pump, there is no adverse leading
power factor effect. The electricity is supplied at a high voltage (6kV), which is
transformed to a low voltage (400V), using a transformer of 1,000kVA installed at the pump
site, before the current reaches the motors.
This case is a typical example of the measures employed to reduce distribution loss. The
installation of phase advance capacitors was reported in the PROMEEC workshop held last
year.
The preceding energy audit report described how the water is taken from wells. However,
the actual feed water is taken from water reservoirs, and PT KERTAS has an obligation to
the government to supply a certain amount of treated wastewater for agricultural use in the
neighboring region.
2.4 Technical Discussion and Recommendations
(1) Measures for partial-load operation

It is impossible to always keep the plant operating at its full capacity and the plant is often
forced to operate with a partial load. Figure IV-2-1 shows the relationship between production
volume and operating conditions schematically.
IV‐19
Capacity of Facility
Production
Large Production Under partial loads
Moderate
High performance
Small Production
Average performance
Poor performance
Time
Figure IV-2-1 Decrease in production volume and partial-load operation
When production corresponds to the capacity of the plant, the equipment efficiency is high and
the energy intensity is also kept at a low level. However, when production decreases, waste and
low efficiency in every facility cause to raise the energy intensity. In such a case, the size of the
production facilities is usually adjusted to the actual production volume, but it is often difficult
to adjust utility facilities in this manner.
The following are countermeasures for partial operation taking PT KERTAS’ utility facilities as
an example.
1) Partial-load operation of the boiler system
a. Boiler systems and the present operating situation

Three steam turbine systems are installed in the mill but only one of them is now in
operation. Figure IV-2-2 shows the layout of the operating system.
Boiler Aux. Facility Boiler Aux. Facility Boiler Aux. Facility

Fan and Fan and Fan and
Pumps Pumps Pumps
90t/h 90t/h 90t/h
#1 Boiler #2 Boiler #3 Boiler
Steam 50t/h 50t/h 50t/h
150t/h
Turbine Ｇ
Figure IV-2-2 Boiler system of PT KERTAS
Three steam boilers, capacity 90t/h per each, supply steam to a steam turbine with a rating
of 150t/h. The load factor of the boilers is 56% (= 50t/h/90t/h).
Since the specified capacity is 90t/h, two boilers could supply the amount of steam required.
IV‐20
If one boiler was shut down, the following benefits could be expected:
･Improvement in efficiency due to the increase in the load factor of the boiler.
･Energy conservation coming from the shutdown of auxiliary equipment.
b. Improving the boiler efficiency
By reducing the number of operating boilers to two, the load factor rises to 83% (=
75t/h/90t/h).
Figure IV-2-3 shows the partial-load characteristics of the boiler (based on data received
from PT KERTAS)
91
90
89
88
87
86
85
10 20 30 40 50 60 70 80 90 100
Load Factor (%)
Figure IV-2-3 Partial-load characteristics of the boiler

(Based on data received from PT KERTAS)
The partial-load characteristics are excellent. This is probably because all necessary
measures for lower level combustion have already been taken and any further significant
saving of fuel cannot be expected. The graph shows that the expected improvement is only
0.4% (= 90.4% - 90.0%).
c. Effects of the shutdown of auxiliary equipment
The amount of auxiliary equipment operated can be reduced from three units to two units.
Table IV-2-6 shows the auxiliary equipment and its rated power consumption. Excluding
FOP (which currently uses a gas-fired boiler), the total power consumption of the auxiliary
equipment is 705kW. Taking the increase in load factors of fans and pumps into
consideration, it is assumed that the power consumption could be increased from 65% to
90% of the rated value. The values of estimated power consumption are shown in Table
IV-2-7.
IV‐21
Table IV-2-6 Auxiliary equipment for the boilers
Fan/Pump (kW)
FOP 11
BFP 315
DEP 75
FDF 315
Table IV-2-7 Energy consumption of the auxiliary equipment
Items Present Improved

Number of Units in Operation 3 2
Load Factor of the Boiler (%) 56 83
Pumps and Fan Power Consumption Rate (%) 65* 90*
Power Consumption per Unit (kW) 458.3 634.5
Total power Consumption (kW) 1,375 1,269
(*: Estimated value)
From Table IV-2-7, the energy conservation is calculated as follows:
1,375kW - 1,269kW = 106kW, 106kW/1,375kW= 0.077 (= 7.7%)
2) Controlling the capacity of the air compressor

Four centrifugal (turbo type) compressors, one with a 500hp electric motor and two screw
type compressors, are installed and two or three turbo type compressors are in operation.
a. Air compressors (turbo type)

Generally, dynamic compressors such as the turbo type are used as large-capacity
compressors in situations where the screw and reciprocating types cannot be used. However,
capacity control is difficult due to surging and the stonewall phenomenon (as shown in
Figure IV-2-4).
The turbo type is suitable for constant-power operation and is an effective way to construct
a system that addresses the fluctuation of the load by combining with positive displacement
pumps such as the screw type and reciprocating type. That is, a screw type or reciprocating
type pump is combined with a turbo type pump to offset the shortage of air so that the load
of the turbo type is used for the base load as much as possible. The screw type and
reciprocating positive displacement types allow for load/unload control, and the shaft
power is significantly reduced under unload conditions.
IV‐22
Surging point
Mechanical vibration
Pressure (P)
Stonewall point
Sharp decrease of pressure
S
C
Air- flow (Q)

Narrow working region
Figure IV-2-4 Stone-wall point and surging of a turbo type compressor
Figure IV-2-5 shows operation patterns when a turbo type compressor is combined with a
screw type compressor.
Turbo type compressor: Base load operation

Screw type compressor: Load/unload operation depends on demand
Large volume air-demand
Turbo Screw Screw

(Base load) (Load) (Load/unload)
Low volume air-demand
Turbo Screw Screw

(Base load) (Load/unload) (Stop)
Minimum volume air-demand
Turbo Screw Screw

(Stop) (Load/unload) (Stop)
Figure IV-2-5 Operation of a turbo type compressor combined with a screw type compressor
b. Operating system
The number of turbo type compressors being operated is controlled either manually or
automatically. Two compressors are operated continuously at the base load and one
compressor is operated intermittently according to the required load. Figure IV-2-6 shows
the changes in power consumption over two specific months when three compressors were
operated at the base load and two compressors were operated intermittently. A peculiar
characteristic of this graph is that very few data points are found in the zone between
15,000kWh/d and 20,000kWh/d. Since the load of an air compressor is normally
continuously distributed, the distribution shown in Figure IV-2-6 is abnormal. It seems that
IV‐23
this phenomenon derives from the partial-load characteristics of this turbo type compressor.
Figure IV-2-7 shows partial-load characteristics of compressors that use various types of
capacity control methods.
Power25,000
Consumption
(kWh/d)
20,000
Vacant zone??
15,000
May
May
July
Jul.
10,000
1 4 7 10 13 16 19 2
22 25 28 31
Day 2
Power Consumption in May and July on 2005

Figure IV-2-6 Power consumption of air compressor systems
100
Suction Vane Control
80 Around 70%
60
Load/Unload Control Ideal Control
40
Inverter Control
20
0
0 20 40 60 80 100
Load Factor (%)
Figure IV-2-7 Characteristics of air compressors using various types of capacity control method
Suction vane control is used for the capacity control of turbo type air compressors. When
suction vane control is used, as shown in the figure, power consumption is about 70% of
the full load, even if the load is zero. On the other hand, air compressors with inverter
control (screw type) that have been put on the market recently have almost ideal control
characteristics, while those with load/unload control fall in the intermediate range. Figure
IV-2-8 shows the relationship between power consumption and capacity control in the
operation of two compressors with suction vane control when the number of operating unit
is controlled.
IV‐24
Power Consumption
2nd M/C
Vacant
zone
1st M/C
Air flow
Figure IV-2-8 Operating unit control by air compressors with suction vane control
At maximum load, two air compressors are used to supply the compressed air. As the load
decreases, the first M/C is run at its maximum load and the second M/C is partially run
according to the required load. When the load decreases to about 50%, the second M/C is
brought to a halt, and only the first M/C is kept running. The y-axis in the figure above
shows the power consumption in the operation.
As the load decreases, power consumption decreases in accordance with the partial-load
characteristic curve of the second M/C. Since the partial-load performance characteristics
are inferior to those at full load, the decrease in power consumption is slow and as much as
85% of the power consumption at the maximum load is still required even when the load
decreases to almost 85% (= 50% + 1/2 × 70%). When the load drops below 50%, the
second M/C stops so that only the first M/C continues to operate. In this case, as shown on
the graph, the power consumption then follows the characteristics curve of the first M/C.
In these circumstances, power consumption then drops abruptly in the neighborhood of
50% from 85% down to about 50%. This explains why the “vacant” region is found in the
above graph.
c. Countermeasures
Although the use of an inverter controller with superior partial-load characteristics is
desirable, in practice this is impossible because the maximum capacity of the existing
equipment (75kW) does not meet the required capacity of 500hp. However, using the screw
type compressor for load/unload control of the capacity control can reasonably solve the
problem.
FigureIV-2-9 shows control conditions after the partial load and characteristics are
improved.
A turbo type compressor can be used for constant load operation in conjunction with a
screw type compressor whose capacity is controlled by the load and unload control. When
the load is heavy, two compressors are operated. As the total load decreases, the output of
the screw type compressor decreases and power consumption also decreases in accordance
IV‐25
with the decrease in output. When the load reaches 50% or less, the compressor of the
constant load air compressor is brought to a halt and only the air compressor whose
capacity is controlled is operated. With this arrangement, the large “gap” in power
consumption, as shown in Figure IV-2-6, does not occur.
The improvement achieved depends on the distribution of the load factor. Here, 50% is
taken as the center of the distribution, and a normal distribution with 2σ ranging from 0 to
50% and 50 to 100% is assumed.
While the use of suction vane control increases power consumption by 38% relative to the
ideal control state, the calculation shows that the increase is 14% in the load/unload control,
which represents an energy conservation of about 25%. It is therefore recommended that
the control of existing screw compressors be investigated and the operating unit control
panel be used for capacity control.
Power Saving
Power Consumption
Screw M/C
Turbo M/C
Screw M/C
Air flow
Figure IV-2-9 Operating unit control of screw type and turbo type compressors
3) Partial-load characteristics of motors and fans
a. Motors
Measuring the power consumption and comparing it with the rated value obtain the load
factor of an induction motor. This measurement is not always easy because both the voltage
and the current must be measured simultaneously. However, it is not difficult to judge
whether the motor is oversized or not by just measuring the current. Figure IV-2-10 shows
the characteristic curves for efficiency, power factor, and current (as a percentage of the
rated value) against the load factor of a squirrel-cage induction motor (400V).
IV‐26
120
factor, Current (% )
Efficiency, P ower
100
80
Efficiency
Power factor
60 Current
40
25 50 75 100 125 150
Load factor (% )
Figure IV-2-10 Characteristics of a squirrel-cage induction motor (400V)
It can be seen from the diagram showing the relationship between the current and the load
factor (above) that the load factor is 50% when the current is 60% of the rating. The power
factor decreases from 88% to 77%, and the efficiency decreases from 92% to 90%. In a
motor operated at a higher voltage as well, the load factor is about 50% when the current is
60%.
Although the decrease in efficiency observed is several percent, at most, in a motor driven
at a high voltage its operation must be improved because the load factor of 50%
corresponds to about twice the actual demand.
That is, the criterion for judging whether the motor used is oversized or not is 60% of the
rated current.
b. Pumps and fans
Compared with motors, the efficiency of pumps and fans depends more on the load factor
(Figure IV-2-11).
100.0
80.0
Efficiency (% )
60.0
M otor
40.0 Pump
Fan
20.0
25 50 75 100 125
Load factor (% )
Figure IV-2-11 Relationship between the load factor and the efficiency of pumps and fans
At a load factor of 50%, efficiency decreases by about 10% in both pumps and fans. In
IV‐27
addition, the rate of efficiency decreases drastically below 50%.
Table IV-2-8 shows the measured values of the current of #701B supplementary equipment
in the previous energy audit (January 2001).
Table IV-2-8 Measured current of the fans and pumps of #701B
Capacity Design Design Actual Actual/

Fan/Pump kW Volt. Amp. Amp. Design
1. FOP 11 380 22.5 14.5 0.64
2. BFP 315 6,000 36.5 29.5 0.81
3. DFP 75 380 131 67.4 0.51
4. FDF 315 6,000 36.6 17.5 0.48
The measured values of current for DFP and FDF are less than 60% of the rated design
values. This indicates that the load factor is less than 50%. For example, the damper of the
FDF can be narrowed down to about 50%. In such a case, it is possible to make significant
savings in energy by adjusting the number of revolutions by changing either the pulley ratio
or the gear ratio.
(2) Operation of the air compressor system
1) Flow control and air leakage control

The air compressor room is located at the center of the mill and, from there, compressed air is
delivered to each plant. While such an integrated system has an advantage in that the facilities
are utilized efficiently and the operation is centrally controlled, long pipelines are required and,
as a result, air leakage, pressure loss, and imbalance between the supply and the demand are
apt to occur. Therefore, meticulous control is required.
Is it sure that little amount of air is used while the mill is closed. Flow control and periodic air
leakage checks should therefore be implemented.
Even in newly installed pipelines, air leakage of 3-5% usually occurs. As time passes, the
leakage may exceed 10% and sometimes reaches 35%. Air leakage mainly takes place at
piping junctions and around equipment seals.
Operating the compressor when the plant is out of operation, using the method shown in
Figure IV-2-12, can check the amount of leakage.
To check the air leakage, close all the ends of the piping completely and start the operation of
the air compressor. When the pressure has reached a specified value, stop the compressor. The
changes in discharge pressure occurring after the start and finish of compressor operation are
shown in Figure IV-2-12. In the figure, P1 is the pressure used, which is usually set to around
P1-P2 = 0.05 - 0.1MPa.
Approximate air leak rate, L, is calculated by the following equation: L = t1/(t1 + t2) ×
100[%]
IV‐28
0.7 Setting pressure
p1 = Specified pressure
Working pressure range
Estimation of the Air leakage 0.6 p1 – p2 = 0.05~0.1MPa
t2 p2 = Specified pressure
L: Air leakage (%) 0.5
t2 Pressure descent
0.4
t1 Pressure ascent
L= × 100 (%)
t1+t2 0.3 Smallleakage
leakage
Small
Large leakage
Time (min)
Pressure Change in Air Compressor
Figure IV-2-12 Check for air leakage
2) Dryer
Adsorption type dryers are installed. The adsorption type dryer can, by purging adjust, be used
for electronics production plants and suchlike where a very low dew point is required. In such
a dryer, valuable compressed air may be uselessly released by purging if the dew point is set
excessively low. It is recommended that the dew point control be reviewed, following these
steps:
- Confirmation of the required dew point.
- Adjustment of the purging volume (purging time)
- Investigation of the possibility of using a heating type (or refrigeration type) dryer
(either in a changeover or in parallel use).
(3) Examples of successful energy conservation in the distribution system (energy conservation in
the pump station and improvement of the power factor)
1) Reduction of distribution loss

Key points are as follows:
Distribution loss, W [W], is expressed by the following equation:
W = I2 × r
Where, I: current [A], and r: resistance of the distribution line [Ω].
To reduce the distribution loss, it is necessary to reduce the current (I) and the resistance of the
distribution line (r) in the above equation.
a. To reduce the current:

- Supply electricity with a high voltage to the center of the load, and
- Raise the power factor.
b. To reduce the resistance of the distribution line:
- Make the length of the low voltage distribution line as short as possible.
IV‐29
PT KERTAS has constructed an ideal system for the water feed pump station, which satisfies
all these conditions. Actual measures taken are as follows:
2) Pump station
The water feed station is located at the water reservoir about 1km from the mill, and five
pumps are installed.
Figure IV-2-13 shows the equipment connections involved by means of a one-line diagram.
The following are measures taken to ensure the reduction of distribution loss:
a. Long distance feed with a high voltage (6kV)

For a certain amount of the electrical power supply, increasing the voltage, resulting in a
reduction in distribution loss, can decrease the current.
b. Installation of transformers as close as possible to the load

By transmitting power with a high voltage as close as possible to the load, it is possible to
shorten the length of low voltage distribution line requiring a large current so that the loss
in the low voltage distribution line is reduced.
c. Installation of phase-advance capacitors
Phase-advance capacitors improve the power factors of motors so that the current that flows
through the distribution line is reduced. The installation of phase-advance capacitors has
reduced the current from 320A to 280A, resulting in a decrease in the loss caused by the
distribution line to 77% (= (280/320)2)).
High voltage line

6kV
Static Condenser
380V
Low voltage line
M M
S.C S.C
P P
63kvar×5
63kvar×5
200kW×5
200kW×5
Figure IV-2-13 Connection diagram for the pump station
IV‐30
3. Walk-through Energy Audit at the Patal Grati Spinning Mill of Industri Sandang Nusantara
We visited a second new plant in the neighborhood, Unit Patal Grati Textile (Spinning) Mill, to
make a walk through energy audit.
Since the visit to the PT KERTAS Paper Mill was scheduled early in our trip, we asked MOE to
arrange another visit to a new plant in the neighborhood. However, it was only three days before
the departure of the investigation team that the visit to the mill was confirmed. Although the visit
was arranged at short notice, the mill staff accepted the visit by the investigation team in a friendly
and cooperative manner.
Patal Grati Spinning Mill is very eager to save energy, having organized the EC Committee in 1996.
After hearing a description of their activities, we made a tour of the plant and then gave our
comments. This mill is a spinning mill mainly used for polyester yarn manufacture. Cotton and
rayon yarn manufacture is carried out in other factories belonging to the same company.
3.1 Visit to the Patal Grati Spinning Mill
(1) Outline of the visit

Name of the company: PT Industri Sandang Nusantara
Name of the mill: Unit Patal Grati
Time and date of visit: December 8 (Thu) 9:00-16:00
Location: Jl. Raya Grati KM.14 Grati, Pasuruan 67184, Jawa Timur, Indonesia
(About 80km southeast of Surabaya)
Company staff: Mr. Naulila, General Manager
Mr. Ir. Mulyono, Manager Teknik
Six staff members of EC Committee (Team Konservasi Energi)*
*Although called a “Committee”, it is actually a department in the company
organization.
Investigation team members:
Indonesia, MEMR:
Mr. Parlindungan Marpaung, Inspector, Dept. of Energy Efficiency
Japan, International Engineering Department, ECCJ
Messrs. Fumio Ogawa, Hisashi Amano, and Hideyuki Tanaka, Technical Experts
(2) Outline of the mill

Raw material: polyester yarn. (Although they have other factories that handle rayon and cotton
raw materials, the investigation team only surveyed the polyester mill.)
Product: Polyester thread
Production capacity: 400t/month (medium size for an Indonesian spinning mill)
Actual production: Production has increased to about 360t/month, which is
about 90% of total capacity.
Number of employees: 536 (including operators working three shifts in four
groups)
IV‐31
Area of the mill: 26ha
Type of operation: Continuous operation, including nights, holidays and
weekends.
Periodic maintenance and repair are carried out sequentially by suspending
operations once every three months, for four hours each time.
Energy used: Electricity only (purchased from PLN)
(3) Production process

The production process consists of the following eight steps:
a. Blowing: Raw material (yarn) is aspirated by air blowers and then transported
through a duct before being compacted on a roller-beater.
b. Carding: Filaments with a diameter of about 2 cm are formed (then stored in
a drum type vessel).
c. Drawing: After carding, eight strands of filament are simultaneously on one
side of the machine, which are intertwined to form threads.
d. Speed: The threads are further drawn and wound on longitudinal bobbins.
e. Ring Spinning: Finished textile threads are formed in this step, using several hundred
bobbins connected to a single machine.
f. Cone Winding: The final twist is given to the threads and the threads are wound
around cone type bobbins.
g. Packing (not investigated.)
h. Storage (not investigated.)
(4) Energy being consumed and energy-conservation activities

As described above, energy-conservation activities started in 1996 and successful results have
been achieved. However, power costs still account for 47% of the total production costs.
Installed Capacity of power receiving system: 2,770kVA
Diesel Generator Capacity: 1,250kW×2units, 300kW×1unit
Mr. Mulyono (Technical Manager) is the energy manager (director of the EC Committee).
Although some managers and staff members from other departments are included as members,
the committee mainly consists of about 40 dedicated personnel with knowledge of technology
and electricity and who have been recruited from within the mill and trained especially for their
role on the committee. The committee members are divided in half into the following two
groups:
G1: In charge of process matters: patrolling the plant periodically to check processing
equipment and to promote efficiency.
G2: In charge of utility matters: In addition to the same responsibilities relating to utility
equipment, maintenance is within the scope of job.
IV‐32
The following improvements in unit cost have been achieved as a result:
1996: 950kWh/Bale-Product (1 Bale = 181kg)
2002: 850kWh/Bale
2005: 750kWh/Bale (Peak Load: 650kWh/Bale)
(5) On-site survey and impressions

First, the flow of the process from raw materials to products was surveyed, and then the utility
facilities (air conditioning, chillers, air compressors, power receiving system, generators, etc.)
were checked.
It was explained that the members of the EC Committee patrol every hour to check the
temperature and humidity and correct the environment if it is outside the specified range.
However, it was hot and humid when we visited.
General “housekeeping” of the plant seemed to be insufficient, and the Japanese “5 S’s” is
needed to implement more thoroughly.
1) Illumination
Attempts to save energy could be seen, such as the diligent reduction in the number of or
extinction of fluorescent ceiling lamps in use. Some of the regular bulbs are also being
replaced with fluorescent lamps.
2) Air conditioning
The control targets for temperature and humidity are from 30˚C to 33˚C and 65% respectively,
and wet and dry bulb thermometers are provided to monitor the workplace environment.
However, there are no actual facilities to control the humidity.
Since the workplace environment for spinning and winding must be carefully controlled, cold
water is provided by chillers, and two large-scale AHU units are installed.
Since it was the rainy season, the temperature was not too high and the two water-cooled
turbo chillers (800RT) were not operating. They are operated during the dry season. Using the
AHU, cold water for showering is prepared by exchanging heat with the cold water of the
chiller, and the cold water is then used to directly exchange heat with the air to provide cool
air for the building.
Although the system is basically a circulating system, it is possible to take in outdoor air or
exhaust indoor air according to the enthalpy relative to outdoor air. The temperature of the
incoming air on the day of our visit was 29.3˚C.
3) Air compressor
The main compressors used are four screw type compressors driven by 30kW motors. Three
compressors were running on the day of the visit and the discharge pressure was 0.72MPa at
the receiver tank. There was very little pressure fluctuation between the screw type
compressors.
Although the person in charge explained that the compressors were controlled by load-unload
control within the range of 0.65 to 0.8MPa, no load-unload action was observed while we
were on the site (about 20 minutes). The air is supplied to the load equipment through a dryer.
Hot air is directly released into the environment and the condition of the indoor atmosphere
IV‐33
was fairly good when we visited. There is both a compressor line and a blower line, and it
seems that the discharge pressure of the compressors can be reduced.
4) Power receiving system and the emergency generator
The electricity is received at 20kV and the system consists of two lines: one line that reduces
the voltage to 3.3kV using two main transformers (1,600kVA) and another line that directly
reduces the voltage to the low voltage used in the plant using a one-stage transformer.
Seven low-voltage transformers decrease the 3.3kV to 380V. This two-stage step down
appears to be redundant and may be a historical result. The main transformers are of an old
oil-immersion type equipped with a conservator and should be replaced shortly. It is also
necessary to reconsider the distribution system when doing this.
However, since the output voltage of the emergency generator is 3.3kV, some consideration
must be given to the type of linkage used.
Although all the feeders are equipped with ammeters, watt-hour meters are only provided for
the three systems used for receiving power. Energy meters are installed in all the workshops.
Mr. Mulyono explained that measurements were being made, but no measuring system was
seen for any of the utilities, including the power receiving system.
Patal Grati Mill submitted the following materials:

“Power Single-Line Diagram”, “Plant Layout” and “Specifications for major facilities”
3.2 Advice and Recommendations for EE&C Activities

At the end of the meeting, the investigation team gave the following advice and comments:
(1) Measures suggested (in order of priority) based on the analysis of the power consumption data.
Although it is appreciated that the members of the EC Committee are dedicated to the
patrolling and collection of data on equipment use, how the data are analyzed is also important.
For example, the data may be classified according to the processes and areas concerned, but
they should be further classified according to use (such as illumination, air conditioning,
compressed air, and pumps). The data should then be analyzed in order to set priorities based on
their importance and effectiveness for energy conservation.
(2) Key points for selecting appropriate operating conditions and facility capacities
In the on-site survey, it was found that some facilities are oversized for the capacity actually
required. It is necessary to adjust their size according to actual operating conditions. It is also
necessary to maintain high efficiency in accordance with the fluctuating load. One example of
an inappropriate specification is the air compressor outlet pressure of 0.8MPa. This value is too
high.
Mr. Mulyo said that 0.8MPa was required to prevent thread breakage in cone winding, but the
pressure gauges for compressor operation and the receiver tank actually indicated 0.7MPa.
(3) Keeping efficiency high by carrying out regular maintenance

Maintenance plays an important role in keeping EC efficiency high. For example, periodically
IV‐34
checking the leakage of compressed air pipelines and repairing when necessary is an effective
means of ensuring efficiency. Grati Plant explained that they check for leakages once a week.
(4) Investment in energy conservation is necessary in the future

It seems that Grati Mill has either not invested in energy conservation at all or has carried out
only a small investment in energy conservation which has now finished. Further investment is
required to promote EC in the future.
(5) Advice and comments from Mr. Parlin (MOE) are as follows:
1) Openings on the vacuum suction part of the roller-beater used in the blowing process should
be closed.
2) Suction air for the ventilation fan in the air compressor room should be taken directly from
outdoors (where the temperature is lower than that of indoor air).
3) Ventilation in the main transformer room should be improved in order to lower the ambient
temperature.
3.3 Recommendations for Improvements and Expected Effects

The following are recommendations for improvements proposed by ECCJ (in addition to the
advice and recommendations described above).
(1) Controlling the cold water temperature of the turbo chiller

Two 800RT turbo chillers are installed. Although detailed operating conditions are not known,
the general principles of energy conservation using cold water and cooling water are as follows:
The following conditions are required to increase the COP of refrigerator operation:
- Load factor (= capacity ratio) should be higher.
- Cooling water temperature should be lower.
- Cold water temperature should be as high as possible.
Power consumption is expressed by “total power = power of cooling water pump + power of
cooling tower + power of refrigerator”. All these components must be considered
comprehensively.
Generally speaking, in any turbo refrigerator controlled by speed, the total power consumption
drops when the cooling tower is not controlled. However, it is said that when controlled only by
the suction vane, the total power consumption still drops even when the cooling tower is
controlled. Optimum operation patterns therefore need to be set, in relation to the season, and
both alternatives compared.
1) Energy conservation by raising the temperature of the cold water

Figure IV-3-1 shows the relationship between the cooling water temperature, cold water
temperature, and power required for the motor (corresponding to power consumption).
The graph shows the required motor power when the cold water temperature and cooling
water temperature are changed (taking the base cold water temperature as 32℃ and base
IV‐35
cooling water temperature as 5℃). When the outlet temperature of the chiller is raised from
5℃ to 7℃ and then to 9℃, the power consumption (motor power) decreases to 96% and
then to 92% if the cooling water temperature is maintained at 32℃.
This means that raising the cooling water temperature when the load is light can reduce the
power consumption.
110
Motor Power (%)
100 Inlet Temp.

100
96
92 of Cooling Water (℃ )
90
85 32℃
80 30℃
28℃
26℃
70
5 7 9 11
Outlet Temp. of Chiller (℃ )
Figure IV-3-1 Relationship between cold water temperature cooling water temperature,
and motor power (turbo refrigerator)
2) Energy conservation by changing the cooling water temperature

The performance of a cooling tower depends on the wet bulb temperature. Table IV-3-1 shows
meteorological data from the Surabaya region.
Table IV-3-1 Temperature and humidity in the Surabaya region
Items Max. Min. Ave.

Ambient Temperature (ºC) 32 29 30
Relative Humidity (%) 80 55 65
Wet Bulb Temperature (ºC) 29 21 25
The wet bulb temperature was calculated from ambient temperature and relative humidity.
The wet bulb temperature varies between 21ºC and 29ºC. Figure IV-3-2 shows the relationship
between the wet bulb temperature and cooling water temperature at the outlet. Since the
cooling tower is usually operated with ∆t = 5ºC, the minimum temperature of the cooling
water is 28ºC and the maximum temperature is 33ºC.
By lowering the cooling water temperature from 32ºC to 28ºC while the cold-water
temperature is kept at 9ºC, the refrigerating capacity increases by about 8% (= 1-85%/92 =
0.08) so that the motor power required decreases.
IV‐36
It depends on the method used to control the capacity of the refrigerator whether it is better to
save the energy of the cooling tower by fixing the cooling water temperature at 32ºC or to
save the energy of the refrigerator by lowering the cooling water temperature according to the
decrease in the wet bulb temperature. The cooling tower and refrigerator should both be taken
into consideration when choosing the optimum operation pattern to use in order to save power.
35
℃)
Temperature((ºC)
30
Temperature
25
20 ⊿ｔ＝5 ℃
Outlet
⊿ｔ＝4 ℃
Outlet
⊿ｔ＝3 ℃
15
8 10 12 14 16 18 20 22 24 26 28 30
Wet
WetBulb
BulbTemperature
Temperature (ºC)
Figure IV-3-2 Relationship between the wet bulb temperature and

cooling water temperature of the cooling tower
(2) Air compressor

Four screw type compressors with 30kW motor each are operated with the control of the
number in operation. Although there are some problems in the treatment of waste heat, no
significant problems have been identified in the arrangement of the facilities and the installation
environment. The following items should, however, be taken into consideration in order to
promote energy conservation:
1) Discharge pressure and power consumption

The control range of 0.65 – 0.8MPa for the discharge pressure is relatively high.
A decrease in the discharge pressure would be desirable, based on the required pressures for
equipment loading.
Possible measures are:
Low-pressure load: Reduction of pressure using a pressure reducing valve.
High-pressure load: Investigation of the possibility of increasing the pressure
using booster.
Air pressure for the cleaner can be reduced to about 0.3MPa.
2) Air pressure and air leakage
Compressed air from the compressors is supplied to all equipment through pipelines, resulting
IV‐37
in pressure loss caused by friction in the pipelines and flow loss due to leakage. The pressure
loss is adjusted considering the piping costs and the flow loss can be controlled, aiming at
zero leakage. Please refer to Item 2 for details of the leakage measurements and
countermeasures.
(3) Automation of collection and control of data

Let us now discuss energy conservation in the production line. Energy consumed can be divided
into effective energy that is utilized for the production process, and ineffective energy that is
wasted. Ineffective energy derives from defective products, waiting time loss, loss caused by
machine faults, and material loss. Figure IV-3-3 shows effective energy and energy loss in the
production line.
Machine
Machine
Material loss problems
Trouble
Ene rgy
loss
Effective
Energy
Ene rgy
los s
Defect
Waiting time
Figure IV-3-3 Effective energy and energy loss
Since there is little material loss in Patal Grati Mill because materials are not processed there,
other losses are discussed below.
1) Loss due to defective products

The energy that has been used to produce defective products represents the ineffective
consumption of energy. Consequently, activities for improving yield are also
energy-conservation activities. Among the factors that affect yield and quality, the following
are those related to environmental control of the workplace.
In Patal Grati Mill, the temperature and humidity in the plant are periodically checked and
controlled. However, there are concerns about the control system used and the speed of
response because the number of sampling points is limited and the data is collected manually.
Since temperature and humidity are important factors that affect quality and yield, a system is
required that can constantly monitor and maintain the environment. Particularly in workplaces
where products are produced on a continuous basis, it is necessary to assess the situation and
take immediate measures in an emergency. With this in mind, the next step that Patal Grati
Plant should take is to automate the data collection and control procedures.
Temperature and humidity sensors are easily obtained and there is plenty of watt-hour meters
IV‐38
available equipped with a data transmission function. It is recommended that a system be
constructed utilizing such functions.
2) Loss due to machine breakdowns and waiting time
The energy lost due to machine breakdowns and waiting time is ineffective energy that does
not contribute to production. Waiting time is a matter of production scheduling and the
occurrence of machine breakdowns is a matter of maintenance.
Patal Grati explained its system of preventive maintenance in which maintenance is
implemented periodically so that breakdowns are avoided. This system is recognized as being
very effective. It is suggested that this maintenance system could be improved further by
adding an automated system for the trend control of deterioration and abrasion of equipment.
IV‐39
4.1 Summary
A seminar Workshop was held on December 12, 2005 (Mon).
At the Seminar Workshop, the Honorable Mr. Soekanar of the Ministry of Energy and Mineral
Resources made the opening speech and Dr. Weerawat, Director General of the ASEAN Center
for Energy (ACE) gave the closing speech. There were about 60 active participants and the
Workshop was very successful and productive.
(1) Date and time

December 12, 2005 (Mon) 8:30: registration 17:30: closed
(2) Venue
Gran Mahakam Hotel, 2F (Ball Room), Jakarta, Indonesia

The program of the Seminar Workshop is described in Material No. D-111.
ACE reported on the EE&C activities of ASEAN, and ECCJ explained the guidance on energy
conservation matters in the industry. It seemed that private participants were disappointed that
the Indonesian government did not report anything at the seminar.
The Indonesian pulp and paper mill for which we made the follow-up energy audit submitted a
report and other ASEAN countries such as Lao PDR, Malaysia, Philippine and Thailand also
made presentations.
(4) Participants
Major participants were as follows:
Indonesia:
Mr. Soekanar, Secretary for Director General, MEMR, Directorate General of Electricity
and Energy Utilization (DJLPE or DGEEU)
Ms. Maryam Ayuni, DJLPE, MEMR
Mr. Ir. Parlindungan Marpaung, Inspektur Ketenagallistrikan, DJLPE, MEMR
Ms. Sutji Rahayu, Tariff Expert, Marketing Division, PNL
Mr. Djoko, Manager of R & D, PT Kertas Leces (Persero)
About 60 Indonesian delegates from government offices and various industries attended
the seminar. Although we asked to see the list of participants later, in an electronic form,
we have not received it yet.
ACE:
Dr. Weerawat Chantanakome, Director General
Mr. Junipard
Ms. Maureen
IV‐40
Ms. Tewi
Laos:
Mr. Vanthong Khamloonvylayvong, Deputy Manager of Nam Ngum Hydropower Plant,
Electricite du Laos (EDL)
Malaysia:
Mr. Pubalan, Energy Auditor, PTM
Philippines:
Mr. Marlon Domingo, DOE
Thailand:
Mr. Arthit Vechakij, Managing Director, Excellent Energy International Co., Ltd.
Messrs. Fumio Ogawa, Hisashi Amano and Hideyuki Tanaka, Technical experts
(1) Opening ceremony (congratulatory address and opening speech)
1) Speech by ACE
Dr. Weerawat, Executive Director of ACE, stated in his speech that, in recognition of the
recent high price of crude oil, energy conservation was now more important than ever. He also
explained that the basic plan for the period from 2004 to 2009 was decided at the ASEAN
Ministers Meeting held in Manila last July and he then introduced the activities of PROMEEC
and the outline of the program for the day.
2) ECCJ
Mr. Tanaka, representing Japan (METI and ECCJ), made a speech. He explained the
significance, history and recent developments of this project, and described Japan’s
cooperation with and contribution to ASEAN.
3) DJLPE
The Honorable Mr. Soekanar made a speech explaining the energy-conservation policies of
the Indonesian government and announced the opening of the meeting.
(2) Session 1: Policies and initiatives on EE&C
1) Overview of ASEAN Plans and Programs on EE&C (Dr. Weerawat, ACE) (Material No.
D-127)
The establishment of ASEAN in 1967 and its subsequent development was explained from the
viewpoint of geopolitics, and the history and the present role of ACE were outlined. Mention
was also made of “ASEAN+3” that had been held in Kuala Lumpur just before the seminar.
He then introduced the outlook for primary energy every 5 years until 2010, in ASEAN region
and predicted that the consumption of oil would decrease and that of natural gas would
increase. Furthermore, he remarked that the estimated amount of investment necessary for the
development of energy resources in each ASEAN countries adding that the amount of
IV‐41
Indonesia is enormously large. He also reported that basic principles are being negotiated with
the EU on the Energy Charter Secretariat. Six basic strategies for Multinational Cooperation
in the period between 2004 and 2009 were also explained.
2) Initiatives and Programs of ECCJ on EE&C in Industry in Japan (Mr. Tanaka, ECCJ)
(Material No. D-128)
Mr. Tanaka outlined the status of energy consumption in Japan, the history of energy
conservation, methods of energy conservation, designated factories, qualified persons for
energy management, ECCJ activities such as energy audit, education and training courses, and
presented successful cases of energy conservation and the award system.
(3) Session 2: Presentation of successful cases of EE&C in industry
1) Paper and pulp industry, Indonesia – Mr. Djoko

The attendees seemed to be interested in the explanation given about the conversion from
heavy oil to natural gas and then to coal. Fuel prices largely depend on governmental policies
(such as subsidies and taxes) so it is necessary to note the difference between countries. The
report was made based on Material No. D-115 together with Material No. D-129 “Recent
difficult situations”, as explained when the investigation team visited the mill.
2) Hydroelectric power generation, Laos – Mr. Vanthong (Material No. D-130)
This report was the same as that presented at the Cambodian PROMEEC Seminar Workshop.
Neatly arranged data since 1972 were reported in a series of graphs.
3) Glass and textile industries, Malaysia – Mr. Phubalan (Material No. D-131)
This report was about the glass industry (JG Containers) and the textile industry (AMDB).
What impressed us was that PTM is functioning as an Energy Auditor and that high quality
portable measuring instruments are being used.
4) Steel industry/cement industry, Philippines – Mr. Domingo (Material No. D-132)
The present situation of the Philippine steel industry and the activities of two companies (a
rolling mill company and a steel sheet coating company) who received Don Emilio Abello EE
Awards in 2005 were reported. This Award honors distinguished companies involved in EE
activities in the Philippine industry. In addition, some comments were made on the cement
industry, based on information Mr. Domingo had received from one of his friends.
5) Biomass, biomass cogeneration, and ESCO, Thailand – Mr. Arthit (Material No. D-133)
Mr. Arthit, the president of ESCO, talked about cogeneration, which is his favorite subject,
and about ESCO (rather than the scheduled topic concerning a caustic soda plant). He was
asked to fill in for Mr. Prasert (FP of Thailand) just before the Seminar. Although his
presentation was not related to successful cases, his story was highly instructive, including 10
KFS (Key Factors for Success). The attendees showed much interest and there were many
questions.
(4) Session 3: The Way Forward
1) Barriers and Measures for the implementation of EE&C – Mr. Ogawa (Material No. D-117)
IV‐42
This presentation was based on past data, with the Indonesian paper industry in mind and
referring to the reports submitted earlier that day.
2) Technical Directory – Mr. Amano and Mr. Ivan, ACE (Material No. D-138)
The purpose, method of preparation and format of TD were explained, and examples were
presented to help develop a better understanding. Mr. Ivan presented several actual examples
of TD sheets.
3) Database/Benchmark/Guidelines for Industry – Mr. Ogawa (Material No. D-119)
A plan to construct an ASEAN database by linking the databases of participating countries
was outlined.
(5) Q&A Session

Questions and answers were exchanged at the end of each session. There were as many as 20
brisk questions in total. The following are some of those questions and answers:
Q: How can Indonesian private companies ask ECCJ for an energy audit? (There were
several similar questions.)
A: ECCJ acts within the framework agreed upon between governments. For general issues,
it is recommended that you consult the government of your own country or ACE.
Q: Who funds the “Low Interest Loan” which is one of the incentives for EC in Thailand?
A: A gasoline tax of 0.04 baht/L is collected and this is used as an energy-conservation
fund. The government lends the money to private banks with interest set at 0.5%. The
banks then loan this money to those who implement EC, with interest set at 4%.
Many other questions, in addition to those described above, were also asked relating to
bio-diesel, risk management of ESCO, time of completion of TD, etc.
(6) Closing speech

After the comments made by the three VIPs (including Ms. Maryam, speaking on behalf of
Mr. Soekanar of Indonesia), Dr. Weerawat closed the meeting with a final speech.
IV‐43
V. Brunei (Cement Industry and Food Processing Industry)
This survey includes a follow-up energy audit of a cement company whose initial (Phase 1) energy
conservation audit was carried out in February 2001, and a new walk through energy audit
implemented for energy conservation at a beverage factory. A seminar workshop was also held in
Bandar Seri Begawan (BSB), Brunei, at which case study of energy conservation activities in
various industries were reported.
The follow-up energy audit and survey of the cement factory was only a walk through energy audit
and no measurements were carried out using instruments. Many people participated in the diagnosis
including FP representatives from the government. ECCJ played a key role in the energy audit and
the company presented the results of its energy conservation activities over the past five years.
There were many participants in the energy audit of the beverage factory as well and several people,
including the factory manager, also participated in the seminar workshop.

14 to 17 December 2005
1.2 Sites of implementation

Follow-up investigation: Cement factory: Butra Heidelberg Cement SDN BHD
New walk through energy audit: Beverage factory: Kingston Beverage & Creamery Sdn.
Bhd
Seminar workshop: Center Point Hotel, 6F (Purple Jade Room), BSB, Brunei
Darussalam
1.3 Schedule (Material No. D-102)

December 14 (Wed): Follow-up energy audit of the cement factory of Butra Heidelberg
15 (Thu): walk through energy audit of Kingston Beverage & Creamery
16 (Fri): Observation tour of oil fields in Seria (Western Brunei). (Observed the oil
fields from the car)
17 (Sat): Seminar workshop

ACE:
Dr. Weerawat Chantanakome, Executive Director
Brunei: Prime Minister’s Office, DES
Mr. Hj Umar bin Hj Mohd Tahir, Head of Energy Policy & Planning
V‐1
Mr. Haji Abd Shawal bin Yaman, Energy Division
Mr. Pg. Zamra (Pg. stands for Royal Family.)
Mr. Ismail bin Hj. Mohd. Daud, Head of Safety and Enforcement Unit
General situation in Brunei Darussalam
(1) General information on Brunei

- Area: 5,765km2
- Population: 350,000 (2003) (including foreign residents)
- Religion: Islam (national religion), Christianity, Buddhism, Taoism, etc.
- System of government: limited monarchy
- Economy: Major industry: petroleum and natural gas
Nominal GDP per capita: US$13,418 (provisional for 2003)
Currency: Brunei dollar (equal to the Singapore dollar, 1 Brunei dollar
is about ¥65, as of January 2005)
Trading (2003):
Exports: Petroleum and natural gas (about 90% of total exports) are
exported to Japan (41%), Korea (11%), and Thailand (9%).
Total export value is US$4.4 billion.
Imports: Machinery, transportation, industrial products, and
foodstuffs are imported from Singapore (20%), Malaysia
(20%), U.S.A. (12%), and Japan (10%).
Total value of imports is US$1.3 billion.
- Economic situation: Abundant petroleum and natural gas resources maintain a stable economy
and a high income level. However, Brunei aims to diversify its economy by
developing downstream industries related to petroleum and to reduce its
excessive dependency on energy resources.
In the past, Japan provided ODA mainly in the form of technical development,
but this assistance was terminated in January 1998 after Brunei became an
ODA graduate country in January 1996.
(2) Energy situation
Brunei is a producer of petroleum and natural gas, exporting significant amounts to Japan,
Korea and other countries. There is a monument in the oilfields of Western Brunei that
commemorates the production of one billion barrels of petroleum in 2000. The price of
gasoline at December 2005, was B$0.5/L (= US$0.32/L) and electricity price was
B$0.07/kWh (= US$0.045/kWh).
V‐2
2. Follow-up Survey of the Cement Factory of Butra Heidelberg Cement (BHC)
2.1 Outline of the Cement Factory of Butra Heidelberg Cement (BHC)
(1) Outline of the company

Name of the company: Butra Heidelberg Cement SDN BHD (a 50-50 joint venture with a
German cement company)
Name of factory: Butra Heidelberg Cement (BHC) Factory
Location: Lot 3, Serasa Industrial Area, Muara BT1728
Product: Ordinary Portland cement (shipped by tank trucks and packed in
paper bags)
Amount of production: 220,000-250,000 t/y
Number of employees: 110 (February 2001)
Working system: Three shifts, eight-hours per shift
(2) The cement production process and energy consumption

The following is a summary of what we learned from our two visits:
1) Outline of the operation

Butra Heidelberg Cement Factory (BHC) was established in 1993. It is about a 30-minute
drive from Bandar Seri Begawan, the capital of Brunei, and is the only cement factory in
Brunei that specializes in crushing cement. The company is a joint venture with a German
company and was originally called Butra Heidelberger Zement before it changed its name.
The production capacity is 500,000 tons per year but the present annual production is only
250,000 tons due to the stagnant economy. All the raw materials, cement clinker and gypsum,
are imported from East Asian countries such as Japan and Taiwan. The harbor has a water
depth of 9 meters and permits the berthing of 25,000-ton vessels. While two vessels usually
enter the harbor monthly, only about one vessel enters each month at present due to the low
level of production. The factory has a production line with a closed-circuit tube mill whose
capacity is 72 tons per hour and a high performance O-SEPA (Onoda type) separator.
Storage facilities include a clinker silo, storage of gypsum, and two cement silos, and
shipping facilities include packers and tanks for loading the materials onto trucks.
The factory has obtained ISO9002 certification in 1997, which proves its high level of
quality. Measures are taken for dust prevention, and dust collectors (of the 1-bag
filter/hopper type), dust prevention nets, and water sprinklers are provided.
2) Facilities
Clinker storage silo: 50,000t × 1unit
Gypsum storage: 6,000t × 1unit
Finishing mill:
Type of finishing mill: Closed-circuit type tube mill × 1unit
V‐3
Crushing capacity: 72t/h
Mill size: 4,200mm diameter × 10,500mm length
Mill motor capacity: 2,800kW
Separator: O-SEPA･N-1500 type × 3,000mm diameter
3
Mill bag filter: Dust collecting capacity 10,000m /h × 1unit
3
Mill bag filter fan: 110,000m /h × 700mmAq × 355kW × 1unit
Cement transport equipment: FK screw pump 80t/h × 55kW × 2units
Cement storage silo: Capacity 7,000t × 2units
Power receiving facility: Receiving voltage: 11kV, transformer: 7,500kVA
3) Amount of energy consumption
Electricity is the only energy source. Table V-2-1 summarizes the production, power
consumption, and unit consumption of electricity from 2000 to November 2005, based on
the data provided by BHC.
Table V-2-1 Energy consumption (2000 to 2005)
Improvement
Items 2000 2002 2004 2005 (2004/2000)
(1~11) [2005/2000]
Production Cement 232,174 231,697 247,733 213,240 (1.07)
(t/y) [1.0]
Energy Electricity (1.13)
consumption (MWh/y) 14,723.4 14,296.4 16,674.64 14,150.8 [1.05]
(Entire Plant)
Energy Electricity 63.42 61.70 67.31 66.36 (1.06)
Intensity (kWh/t) [1.05]
Energy Price Electricity 0.045 0.045 0.045 0.045 (1.0)
(US$/kWh) [1.0]
2.2 Outline of the Results of the Previous Energy Audit of BHC Cement Factory
The aim of the previous energy audit was to survey the cement crushing line. The results of
temperature and pressure measurements were close to specified values, which suggested fairly
good operating conditions. We recommended implementing the following items to further
improve energy efficiency under these operating conditions.
(1) Upgrading and maintenance of sensors and meters (for pressure, temperature, and electric
power)
The piping of pressure gauges had been left in a clogged condition, electrical meters were not
working, and all the sensors and meters were uncontrolled. Since it is very important that
meters and sensors function correctly and without error in order to ensure the normal and
V‐4
efficient operation of facilities, as well as to prevent accidents, daily checks of measured values
and periodic calibration of all instruments are required.
(2) Utilization of the exhaust from the dust collector as secondary air for the O-SEPA
Although ambient air is used as secondary air for the O-SEPA, the specification of the O-SEPA
permits the use of air containing dust. Dedicated dust collector (bag filter) is installed in front
of the mill to collect dust from the clinker hopper and the gypsum hopper. Since this dust
collector is located close to the O-SEPA, connecting the dust collector and the secondary air
duct of the O-SEPA with pipelines can use the exhaust from the dust collector. This reduces the
operation of the dust collector and saves power. Furthermore, maintenance of the dust collector
is no longer needed so that maintenance costs are also reduced. The annual saving in power
consumption (43.8MWh/y) and maintenance costs could total US$5,300.
(3) Changing the method of cement transport

A screw pump, which is a type of pneumatic conveying system, is used for the transport of
cement to the storage silo. Generally speaking, pneumatic conveying systems (such as airlifts
and screw pumps) consume about three times more energy to transport the same amount of
cement than mechanical conveying systems (such as a combination of air slides and bucket
elevators). Therefore, changing the screw pump to a mechanical conveying system should be
considered. Savings in power consumption (188MWh/y) would reduce the power cost by
US$8,600/y.
(4) Preparation of manuals and check sheets for periodic maintenance

To prevent the malfunction of facilities, periodic maintenance should be carried out. To do this,
manuals and check sheets that stipulate standards for the repair and replacement of facilities
must be prepared in order to facilitate preventive maintenance.
(5) Measures for preventing any recurrence of breakage in the clinker shoot and gas duct
The amount of wear on the gas ducts and clinker shoot is remarkable. Even though this damage
is repaired immediately, the repair work is always done in the same way so that the cycle of
wear-damage-repair is simply repeated. The actual causes of the damage should be identified in
order to prevent any recurrence of the problem.
(6) Dividing the air layer of the air slide

Since the long air layer of the air slide is not divided, any breakage of the canvas (even at a
single point) causes clogging of the raw material all over the air layer so that the operation is
stopped. Furthermore, once such an accident has occurred, considerable labor and time are
required to restore operations. The air layers should be divided so that any damage is limited,
thereby enabling the operation to continue.
V‐5
We visited BHC Cement Factory to carry out a follow-up energy audit on the progress made in
addressing the issues raised in the previous visit and to review new activities.
(1) Date of Energy Audit: December 14 (Wed), 2005, 9:00 – 16:30

Brunei: Prime Minister’s Office, Department of Electrical Services (DES)
Mr. Hj. Abd Shawal bin Yaman, Energy Division (Focal Point)
Mr. Ismail Bin Hj. Mohd Daud, Head of Unit, Safety and Environment
Mr. Junidi bin Hj. Jafar
Mr. Hj. Nor Amin bin Mohd Yassin
Mr. Hj. Shamshul Zamicse bin Hj. Sabtu
Mr. Ahmad bin Hj. Mohammad
Mr. Mohad. Tazim bin Akub
Mr. Hj. Aziz bin Hj. Ali
Ms. Dyg. Noor Dina Zhrina binti Hj. Yahya
Brunei: Professors of University of Brunei Darussalam (UBD)
Dr. A. Q. Malik (from Pakistan, specialist in materials)
Dr. M. Blundell (from Britain, specialist in electrical engineering)
Messrs. Hideyuki Tanaka, Fumio Ogawa and Hisashi Amano, Technical Experts
(3) Attendees from BHC:

Mr. Ardi Widjaja, General Manager
Mr. Achmad Hidayat, Maintenance Manager (attended the previous audit)
Several other people

The ECCJ team carried out an energy audit at this factory in February 2001, and the present
visit was for a follow-up energy audit. This was their second experience of energy audit for
BHC since the start of operations.
As shown in the list of participants, above, many people from DES participated in the
investigation, including a lady from Perth who was studying “renewable energy” in Australia,
and two professors from foreign countries who had been teaching at the University of Brunei
Darussalam for a long time. According to Mr. Yaman of Brunei FP, the reason for the high level
of DES participation was to train staff members of DES by OJT in the energy audit.
The investigation included BHC’s explanation of activities relating to energy conservation over
the past five years, confirmation of questions from BHC, walk through audit, and the
explanation and discussion of further improvements. When we visited the factory, operation
V‐6
was under a halt due to a failure at the mill and only the shipping facilities were operating.
Since we received the written replies to the questions that had been submitted to DES through
ACE (included in Material No. D-108) on the way to visit BHC, the investigation proceeded
smoothly. However, the report on Phase 1 had not been sent to BHC so it was necessary to
explain some of it to them.
We found that their business prospects were worsening because of low-cost cement imported
from China since July 2005. As a result, the company is facing a serious crisis with a low
operating ratio of only about 50%, making it difficult to invest in energy conservation.
The president of the German stock-holding company only visits the factory once every three
months, for several days at a time, and no technical assistance is provided. The factory manager,
Mr. Wdjaja, has had experience working at the Indonesian Cement Company, located about
30km south of Jakarta. He was doing his best to cope with the low operating ratio.
The government of Brunei announced that December marked the start of an energy
conservation campaign and the activities of PROMEEC appeared in newspapers in both
English and the Bruneian language.
We obtained the following materials from BHC:
“Brochure about BHC”, “Power consumption in 2005”, “Table showing the operating ratio of
the mill” and “Material for presentation at the seminar”
(1) Recent changes in the situation and operating conditions of the facilities
As described in Material No. D-135, demand from the Brunei domestic market recorded a
maximum value of about 770,000 tons in 1996 and has decreased since then due to the
economic stagnation in the region. Demand over the past five years has varied from 230,000 to
250,000t/y, which corresponds to about 50% of the maximum production capacity of
500,000t/y.
The quality of the cement produced by BHC is a little higher than that of regular cement due to
the higher content of clinker, but BHC is not competitive because their factory is not an
integrated operation provided with its own kiln, and neighboring countries charge import duties
of about 5%. Therefore, it is difficult for them to export their products. In addition, inexpensive
Chinese products (of uncertain quality), which are imported tax-free into Brunei, began to
invade their market in July 2005. About 20,000 tons of cement has been imported from China.
(2) Status of production and unit consumption of energy
Electricity is the only energy source used, and this is purchased from the government (DES).
The unit consumption of electricity in the mill is 50-56kWh/t-product. In 2005, the electricity
consumption was 55.4kWh/t in January and 57.9kWh/t in November, which was a little higher
than usual. These values are about 84% (on average) of the unit consumption of electrical
power for the whole factory. It was explained that consumption would only be 45kWh/t if the
plant had been operating at 100% of production capacity and that the inferior power
V‐7
consumption was due to the higher quality of the products produced and the increased loss
caused by the starting and stopping brought about by the low operating ratio.
(3) Walk through energy audit of the cement factory
During the plant tour, we inspected the mill and the drive unit in the crushing plant, the raw
material feeders for clinker and gypsum, the dust collectors, electric room, cement transport
devices, receiving equipment for clinker and gypsum, and the storage silo, cement silo, air
compressors and cement-bagging devices. The facilities were almost the same as those
described in the previous report. The finishing mill, which is a major user of electricity, was not
operating due to a problem that had occurred two days before. In the previous report, it was
pointed out that the mill motor (made in China) could not achieve the rated crushing capacity
due to the restriction placed on its use by the bearing overheating. The motor had therefore
been replaced with one made in the U.S.A. Although the new motor has only the same capacity
of 2,800kW, it can be used without problems because of its higher design temperature.
The only facilities operating at the time of the investigation were the cement-bagging machine
and the loading machine for tank trucks. Products were being shipped in bulk using tank trucks
and packed in bags. These are 50kg bags made of paper and printed with a mark indicating that
the product conforms to BS certification. The overall impression gained was that the
workplaces were disorganized.
The factory had received ISO9001 and ISO14001 certification since the previous energy audit.
The following comments are based on those issues discussed during and after the walk through
energy audit.
(4) Power receiving and distribution system.
Electricity is received at 11kV and reduced to a high voltage of 6.6kV by a 7,500kVA
transformer. Motors (2,800kW) for the mill and fans (355kW) for conveyors are operated with
this voltage. A phase advance capacitor of 1,200kvar is provided for the high voltage line.
However, since costs are not charged to the power factor in this country, the only advantage
gained is loss reduction at the main transformer.
It seems to be insecure that only one receiving transformer is installed. Since the factory only
operates at 50% of full capacity, and from the viewpoint of energy conservation, it would be
better to use two transformers of about 3,000kVA each.
Electricity at a low voltage of 380V is obtained from the 6.6kV supply using a 1000kVA
transformer. A phase advance capacitor is also provided for the low voltage line to reduce the
loss in the distribution system.
We commented on these matters as follows:
1) Problems relating to the present power receiving and distributing system

The data for 2005 show that 84% (= 11,956MWh/14,151MWh) of the total power
consumption is high voltage power for the mill. The operating ratio of the mill is only about
50% (47% by calculation) due to the reduced production level. Figure V-2-1 shows a
schematic diagram of the existing power receiving and distribution system.
V‐8
11kV
MOF
7,500kVA
6.6kV
1,000kVA
380V
Mill & related Other
facilities facilities
Figure V-2-1 General connection diagram for the power receiving and distributing system
The demand factor (= maximum power demand/facility capacity) of the receiving transformer
is 47% (= 3,500kVA/7,500kVA) when the mill is operating but only 4% (=
300kVA/7,500kVA) when the mill is idle. Therefore, the amount of electric power required
for the mill is assumed to be 3,200kW, and the amount of power and the power factor of the
other facilities are assumed to be 300kW and 100%, respectively.
2) Remedial plan
The following procedure is recommended to reduce the loss from the 7,500kVA transformer
in the low-demand period.
Use the 7,500kVA transformer only for the mill and parallel off when it is not operated. This
eliminates the loss from the 7,500kVA transformer during the low-demand period. Install a
750kVA transformer for the other facilities. The transformer can be connected to the 11kV
power source separately. Figure V-2-2 shows the connection diagram for the remedial plan.
11kV
MOF
CB
750kVA
7,500kVA
380V
6.6kV
Mill & related Other
facilities facilities
Figure V-2-2 Power receiving and distributing connection diagram for the remedial plan
3) Estimation of benefits
Assuming that the demand for mill-related power is 3,200kW, and it is operating 50% of the
time, while the other facilities use 300kW constantly throughout the day with a power factor
of 100%, then the benefits can be estimated as shown below. (The values shown in Table
V‐9
V-2-2 are used for the no-load loss and load loss of the transformers).
Table V-2-2 Loss characteristics of transformers used for receiving and transforming power
Transformer Capacity No-load Loss (kW) Load Loss (kW)

7,500kVA 14.5 60.6
1,000kVA 1.88 11.89
750kVA 1.44 9.52
The transformer loss per day is found by calculating the load loss and no-load loss, as
follows:
- Transformer loss in the present arrangement
7,500kVA transformer: 14.5kW × 24h/d + 60.6 kW × (3,500/7,500)2 × 12h/d
+ 60.6 kW × (300/7,500)2 × 12h/d = 507.5kWh/d
1,000kVA transformer: 1.88kW × 24h/d + 11.89kW × (300/1,000)2 × 24h/d =
70.7kWh/d
- Transformer loss in the improved arrangement
7,500kVA transformer: 14.5kW × 12h/d + 60.6 kW × (3,200/7,500)2 × 12h/d =
306.4kWh/d
750kVA transformer: 1.44kW × 24h/d + 9.52kW × (300/750)2 × 24h = 71.1kWh/d
Thus, the following energy conservation benefits are obtained:
(507.5+70.7)kWh/d - (306.4+71.1)kWh/d = 200.8kWh/d (= 73MWh/y).
Assuming that the power consumption in 2005 is 15,437MWh (=14,151MWh × 12/11), then
the improvement ratio is:
73MWh/15,437MWh = 0.0047 (= 0.47%).
In this plan, while the 7,500kVA transformer requires only a change of connection, the
750kVA transformer must be newly installed. Since the improvement ratio is not very high,
this plan should be implemented in the future on a suitable occasion unless low voltage power
receiving is possible.
(5) Air compressors
Two screw type compressors of 200hp (= 149kW) are currently installed. When we visited the
factory, one of them was still operating even though the factory was almost at a halt. It was
explained that discharge pressure was controlled between 105 and 90psi by capacity control
and that the pressure was about 103psi. Load/unload action was not observed. However, the
pressure was reduced to about 90psi when the regenerative cooler was operated in the
regenerative mode. (Note: 100psi = 0.689MPa)
A receiver tank is provided for each air compressor, next to the cooler, from which the air is
supplied throughout the plant. Although a pressure gauge was provided at each receiver tank, it
was hard to read the gauge because cement powder covered the surface of the gauge. One of
the facilities making use of the air was the packing equipment, and the pressure for this
V‐10
equipment was kept stable at 0.6MPa. However, it seemed that pressure control was insufficient
because a rubber tube of about 10mm diameter, probably used for cleaning, was attached
directly to the piping system.
We asked whether the regenerative cooler was really necessary for the cement factory. Their
reply was that it was necessary because problems had resulted when they had carried out
experiments at high dew points. They also said that the pressure could not be reduced. There
must be problems involving the capacity of the air compressors.
1) Discharge pressure and power consumption of the compressors

Compressed air supplied to the plant is dried first in adsorbent type dryers. On the day we
visited, one dryer was operating and another was on standby. The discharge pressure of
0.7MPa seems to be too high.
Table V-2-3 shows the effect on energy conservation resulting from a reduction in discharge
pressure from the present 0.7MPa standard.
Base pressure: 0.7MPaG

Power consumption ratio to base
1.1
1
0.9 18%
0.8
0.7
0.6
0.5
0.4
0.3 0.4 0.5 0.6 0.7 0.8
Discharge pressure (MPa)
Figure V-2-3 Relationship between discharge pressure and power consumption
Reducing the discharge pressure from 0.7MPa to 0.6MPa saves about 10% of power and
about 18% by reducing it to 0.5MPa. After studying the pressure needed for each load
facility, it is therefore recommended that the discharge pressure be reduced.
Possible measures for reducing the pressure are:
Low-pressure load: Reducing the pressure using pressure-reducing valves
High-pressure load: Increasing the pressure using a booster
The air blow pressure for cleaning can be reduced to about 0.3MPa.
2) Pressure and air leakage
The compressed air generated by the air compressors is supplied to all facilities through
pipelines, during which some pressure and flow volume are lost, as shown in Figure V-2-4.
V‐11
Compressor Terminal system
Pipe line
Pi Po
Loss ΔP
Qi Qo
ΔQ
Pi
ΔP Pressure loss
Po
Air power Leakage loss
at terminal system
ΔQ
0 Qo Qi
Figure V-2-4 Pressure loss and air leakage
In the figure, ∆P is the loss generated by friction, the curvature of the pipe, and expansion and
reduction of the pipe, while ∆Q is the leakage from the pipeline. The former problem is set
based on the balance with the piping cost and the latter can be controlled, aiming at zero
leakage.
3) Flow control and air leakage control
The factory air compressor system is centralized. While such a system has advantages in
ensuring the effective utilization of facilities and centralized control, air leakage and pressure
loss due to the long pipelines and an imbalance between supply and demand are apt to occur.
Therefore, careful control is required for effective operation.
Since little air is consumed when the plant is not in operation, this is an opportunity to install
flow meters to control the airflow and implement periodic air leakage checks.
Generally speaking, leakage of 3 to 5% occurs even in newly installed pipelines and increases
over time, up to 10% or even 35%. Air leakage occurs mainly at the following points:
･Piping joints: due to the corrosion of flanges, creation of gaps between flanges, and
the loosening of bolts,
･Seals: elastic seals (rubber), and metal seals.
The amount of leakage can be checked by operating the compressors when the plant is not in
operation, as shown in Figure V-2-5.
After completely closing the ends of all pipelines, operate the compressor until the pressure
reaches the specified value. Then stop the compressor. The discharge pressure will change as
shown in Figure V-2-5, where P1 is the working pressure. Usually, P1-P2 is set at 0.05 to
0.1MPa.
V‐12
0.7 Setting pressure
p1 = Specified pressure
Working pressure range
Estimation of the Air leakage 0.6 p1 – p2 = 0.05~0.1MPa
t2 p2 = Specified pressure
L: Air leakage (%) 0.5
t2 Pressure descent
0.4
t1 Pressure ascent
L= × 100 (%)
t1+t2 0.3 Smallleakage
leakage
Small
Large leakage
Time (min)
Pressure Change in Air Compressor
Figure Ⅴ-2-5 Air leakage check
4) Dryer
Adsorbent type dryers (heatless dryers) have been installed. Adsorbent type dryers can, by
adjusting the amount of purge, be used in electronics plants producing electronic parts and the
like, where very low dew points are required.
Table V-2-3 shows the relationship between purge and dew point. A dew point of -19ºC can be
obtained with 15% purge.
Table V-2-3 Purge ratio and dew point in heatless dryers
Dryer Purge ADP PDP Usage

Ratio (%) (ºC) (ºC)
Chiller Type 0% -17 10
Heatless Type 15% -40 -19 Measuring & Control
25% -70 -55 Electronic parts

ADP: Atmospheric Dew Point, PDP: Pressure Dew Point
The dew point of the BHC factory is -8ºC, with saturated water content of 2.531g/m3.
Figure V-2-6 shows the relationship between dew point and saturated water content.
V‐13
Water at dew point (g/m )
100
3
10
1
-50 -30 -10 10 30 50
0.1
0.01
Dew point (℃ )
Figure V-2-6 Saturated water content and dew point
In this cement factory, there is no process in which the temperature of the compressed air
pipelines drops below 0ºC. Excessive dew point setting results in the wasteful release of
precious compressed air by purging. Therefore, it is recommended that a review of dew point
control be undertaken, comprising the following steps:
① Confirmation of required dew points,
② Adjustment of purging volume (purging time)
③ Studying the possibility of using heat type dryers (chiller type), (either in changeover
or in parallel use)
5) Reduction of purging volume

Figure V-2-7 is a schematic diagram showing a drying system in which the dew point is
reduced using a chiller type dryer for the first stage, followed by an adsorbent type dryer.
To M/C
200hp
RT RT
Compressor Dryer
(Chiller type) Heatless dryer
Factory
Compressor yard
Figure V-2-7 System in which a chiller type dryer is used in the first stage
In this system, since regeneration is carried out using dry compressed air, less time is
required and the purging volume of the absorber is reduced. Assuming that the present
purge is 15%, the reduction in purge volume is estimated as follows.
According to the manufacturer’s catalog, the discharge volume of an air compressor of
V‐14
200hp (= 149kW) is 28.5m3/min. Thus, the amount of air used for purging is:
28.5m3/min × 60min/h × 0.15 = 256.5m3/h
Converting to electricity, this value corresponds to 15% of the supplied power. Assuming
that the motor efficiency is 90%, the following value is obtained:
149kW/0.9 × 0.15 = 24.8kW
Assuming that the temperature of the output air from the compressor is 42℃ and the air is
100% saturated with water, the amount of water contained in it is 56.5g/m3. When the dew
point of the outlet air (PDP) of the chiller type dryer is 10℃, the amount of water
contained in it is 9.39g/m3.
Since the water content of the purging air has dropped from 56.5g/m3 to 9.39g/m3, the
efficiency of purging has been improved. The amount of reduction in the purging of the
adsorbent dryer due to the installation of a preliminary dryer is proportional to the water
content at the inlet. Therefore, the ratio of the reduction in purging volume is:
1 - 9.39g/m3/56.5g/m3 = 0.83.
Thus, the amount of reduction in power saving is:
24.84kW × 0.834 = 20.7kW.
Subtracting the power consumption of the preliminary dryer (about 6.5kW) from 20.7kW
results in energy saving of 14.2kW. The ratio of this amount to the total power
consumption is 14.2kW/(149kW/0.9) = 0.0858.
This indicates that the total efficiency is improved by adding a preliminary dryer to the
adsorbent type dryer.
(6) Central control room and data control
The FAS data control system has been installed, which monitors all major data collected in the
factory using two CRTs. This system is made in China. Although many data printouts are
produced, the data do not seem to be utilized systematically.
The data are manually recorded on daily log sheets on an hour-to-hour basis instead of being
automatically recorded directly from the CRT display. These data are then manually entered
into a computer in order to prepare charts for analysis. Since there are 10 personnel in the
utility section for maintenance, etc., there seems to be enough labor to carry out all this
manually. They therefore have no plan to computerize the data collection/calculation process.
Some old-fashioned operating systems are incompatible with other versions and this system
may be one of them, making it difficult to add a data logging function. Since data collection is
the basis of energy conservation activities, however, it is recommended that a computerized
central data monitoring system be introduced as soon as possible.
(7) Partial load characteristics of motors and fans
1) Motors
While the load factor of an induction motor can be obtained by measuring its power
consumption and comparing this with the rated value, the measurement of electric power is
not always easy because the voltage and current must both be measured simultaneously.
However, it can be easily judged whether the motor is oversized or not just by measuring the
V‐15
current. Figure V-2-8 shows the performance characteristics of a squirrel-cage induction
motor (driven at 400V). These characteristics include the efficiency, power factor, and current
(as a percentage of the rated value) plotted against the load factor.
The relationship between the current and the load factor indicates that the load factor is 50%
when the current is 60% of the rated value. It can also be seen that the power factor decreases
from 88% to 77% and that efficiency decreases from 92% to 90%. In motors that are driven at
a high voltage, the load factor also decreases to about 50% when the current is 60%.
Although the decrease in efficiency is only several percent at most, even in high voltage
motors, the load factor of 50% means that each motor has double the capacity needed and so
the overall system is in need of improvement.
Therefore, a rough guide to judge whether the motor is oversized or not can be obtained from
60% of the rated value.
120
factor, Current (% )
Efficiency, P ower
100
80
Efficiency
Power factor
60 Current
40
25 50 75 100 125 150
Load factor (% )
Figure V-2-8 Characteristics of squirrel-cage induction motor (driven at 400V)
2) Pumps and fans

Figure V-2-9 shows the relationship between the load factor and the efficiency of a pump and
a fan. It can be seen from the figure that the efficiencies of pumps and fans are both more
dependent on load factor than those of motors.
Efficiencies decrease by 10% at a load factor of 50% in both pumps and fans. The efficiency
then decreases drastically at even lower load factors.
Table V-2-3 uses the current of a motor measured in the Phase 1 energy audit (February 2001)
as an example. The current ratio of the separator is extremely low. Although it is necessary to
confirm these measurements, if these values are correct then the capacities of the motors and
fans in use need to be checked.
The use of bag filter fans must also be reviewed. When the opening of the damper is
narrowed to 65%, air flow is reduced. Energy conservation may be implemented by adjusting
the number of revolutions by changing the pulley ratio.
V‐16
100.0
80.0
Efficiency (% )
60.0
M otor
40.0 Pump
Fan
20.0
25 50 75 100 125
Load factor (% )
Figure V-2-9 Relationship between load factor and efficiency of a pump and a fan
Table V-2-3 Current measurements of motors
Capacity Design Design Actual Actual/

Motor kW Volt Amp Amp Design
Mill motor 2800 6,000 300 263 0.88
Separator 90 380 152 35 0.23
Bag filter fan 400 6,000 43 29 0.68
Figure V-2-10 shows the ratio of shaft power of the motor for the damper control and
rotational speed control.
120
Damper
100
Shaft power (%)
80
Suction damper
60
40 Ideal curve
Speed control
20
0
0 20 40 60 80 100
Air Flow (%)

Figure V-2-10 Damper control and rotational speed control
V‐17
When the airflow is reduced to 80%, energy conservation of 40% is realized by adjusting the
rotational speed. Since the amount of energy conservation is approximately in proportion to
the capacity of the motor, the energy conservation is 400kW × 0.40 = 160kW. Assuming the
operating ratio is 50%, annual savings will be:
160kW × 24h/d × 365d/year × 0.5 = 700,800kWh/y.
This value corresponds to 4.5% of the estimated total power consumption of 15,437MWh/y of
the factory.
2.5 Status of Implementation by BHC
(1) Status of Implementation of previous advice

As described in the attached written reply to the questions submitted, there are many items that
have not yet been implemented. This is probably because the factory is too busy with
day-to-day activities to address the other critical conditions affecting the company, as described
earlier, and because the EC investments cannot be easily recouped at the present low operating
ratio.
1) Updating, maintenance and control of sensors and meters･･･implemented.

The company has obtained BS, ISO9001, and ISO14001 certification, and it was explained
that these items have been implemented as a matter of course.
2) Utilization of the dust collecting gas as secondary air for O-SEPA･･･not yet implemented.
This item has not been implemented in case this results in deterioration in product quality.
3) Changing the method of cement transport･･･not yet implemented.
The company agrees with the basic idea, but the investment cannot be recouped at the present
low operating ratio.
4) Preparation of manuals and check sheets for periodic maintenance･･･implemented.
The SOP (Standard Operating Procedures), mentioned below, includes all the items relating to
factory operations, including the preparation of manuals and check sheets.
5) Prevention of any further breakage of the clinker shoot and gas duct･･･not implemented.
BHC did not understand the previous advice given on this topic (the previous report written in
English had not been delivered to BHC) so ECCJ explained it again. Mr. Widjaja replied
positively saying, “The idea is interesting, but there are some other possible methods such as
changing the materials used to castable refractory or stainless steel, so further studies will be
carried out first”.
6) Division of the air layer of the air slide･･･not yet implemented.
The situation here was as described above for the preceding item, and ECCJ explained the
process again.
The basic idea here is to continue the operation for the time being, even if about 50% of the
canvas is broken, and not stop the operation for repairs under the present low operating ratio
of only about 50%.
V‐18
(2) BHC’s original improvements
As described in the explanatory material (attached PPT Material) and the written reply to the
questions, the following items have either been implemented or planned:
1) Improvement of the power factor by introducing a Reactivated Capacitor Bank ･･･
implemented.
2) Use of a Grinding Aid (an aqueous solution of chemicals that functions as an antiadhesive
agent. This solution prevents the pulverized powder from adhering to the milling balls) ･･･
at the planning stage.
3) Introduction and establishment of SOP･･･implemented.
4) Reducing the clinker receiving time from 7 days to 4 days･･･implemented.
This contributes not only to a reduction in the power consumption of the receiving operation but
also to the prevention of demurrage payments.
5) Timers added to the lighting equipment to save the outdoor illumination during daytime･･･
implemented.
6) Since two of the three pier hoppers were not provided with bag filters, these were added to
both hoppers.･･･implemented.
(This item is not for energy conservation but for environmental improvement.)
In addition, changing the present mill to a more energy-efficient type is under consideration.
However, profitability is doubtful under the present operating conditions.
V‐19
3. Walk-through Energy Audit of the Beverage Factory of Kingston Beverage & Creamery Sdn.
Bhd.
DES selected a factory that produces beverages and ice cream, owned by Kingston Beverage &
Creamery Sdn. Bhd., as the second factory for energy audit. This factory is located in an
industrial complex close to the center of the capital. This was the first experience by the factory
of an energy audit and the management responded in a very friendly and cooperative manner.
In Brunei, there are not many factories that consume large amounts of energy, and more energy is
consumed by other facilities such as night golf courses owned by hotels and resort facilities.
3.1 Outline of the Beverage Factory of Kingston Beverage & Creamery Sdn. Bhd.
(1) Outline of the visit

Company name: Kingston Beverage & Creamery Sdn. Bhd.
Time and date of visit: December 15, 2005, (Thu) 10:20 - 17:00
Location: Plot 73 & Lot 3,4,5 & 6, Beribi Industrial Complex, Jalan Gadong,
Gadong BE1118
Participants from the company: Mr. Valentine Hon, general Manager
Mr. Albert K. G. Lim, Plant Manager
Surveyors:
Brunei: DES
Mr. Hj. Abd Shawal bin Yaman, Energy Division (Focal Point)
Mr. Ismail Bin Hj. Mohd Daud, Head of Unit, Safety and Environment
Mr. Hj. Shamshul Zamicse bin Hj. Sabtu
Mr. Mohad. Tazim bin Akub
Mr. Hj. Aziz bin Hj. Ali
(2) Outline of the factory

The company was established in 1976, and the factory we visited was built in the industrial
complex in 1994. Beverages (mainly “Pepsi Cola”) and ice-cream are produced by 150
employees.
Beverages are canned or bottled, and 1,000 cartons of each are produced and delivered monthly.
In the busy season, after the month of Ramadan, the factory is operated 24 hours a day with a
three-shift system, but for the rest of the year the factory is only operated for half a day. (A
carton contains 50 to 60 cans of about 250cc or 12 plastic bottles of 1.5L.)
(3) Production process and facilities

There are four production lines. Two lines are for blending and bottling “Pepsi Cola”, one line
V‐20
is for ice-cream production, and one line is for molding plastic bottles. Most parts of these lines
are automated by electrically operated devices. Part of the cartoning operation is the only
process carried out manually.
Energy consuming facilities (except in the beverage bottling process) are as follows:
Boiler: Diesel oil-fired smoke tube boiler: 150PSI (= 1.05MPa) ×
5t/h × 1unit
Air compressors: - General purpose centrifugal compressors: 22hp × 4units
- Reciprocating type compressors for ice-cream production
1.3MPa: 20hp× 1unit and 30hp× 1unit
Ammonium compressors: 100hp × 1unit
Refrigerators: 5hp and 7.5hp, one each
Water supply pumps Many pumps
Emergency diesel generator: 380kVA × 1 (Just enough capacity for the operation of the
ice-cream process when there is a power outage. It is kept
outdoors on a wheeled rack.)
Power receiving facilities: The receiving voltage of 11kVA is transformed to 400V by
a 1,000kVA transformer.
A watt-hour meter (owned by the government) is provided.
(4) Consumption
Electricity and diesel oil are used as energy sources. Diesel oil is used for the boilers and
transport equipment such as trucks and forklifts. A receiver tank of 40 to 50m3 is installed in
the factory.
3.2 On-site Walk-through Energy Audit
(1) After listening to the outline of the factory, we surveyed the production lines for beverages and
ice-cream, related utility facilities, and the plastic bottle molding machines.
As might be expected of a food manufacturer, special care is taken for hygiene in the
production lines, and quality inspection is carried out frequently. Facilities related to utilities
are separated in a different building from those used for food, and include city water receiving
and storage facilities, boilers, diesel fuel receiving and storage facilities, refrigerator
compressors, and air compressors.
Among the machines present, the 100hp ammonium compressor for the ice-cream production
process uses the most energy, followed by the plastic bottle molding machine, consisting of a
50hp motor and a 2-stage molding machine. Since the voltage drop caused by reactive power
was our main concern, we asked about the phase advance capacitor. However, they replied that
they did not have a phase advance capacitor. They are not interested in reactive power because
they don’t have a rate system for reactive power.
There seems to be a considerable amount of reactive current loss, including the outdoor
V‐21
electricity distribution lines. Since capacitors are relatively inexpensive, it may be an effective
strategy for the government to promote improvement of the power factor at a national level.
Among the various power loads, compressors are the most numerous, comprising a wide range
of types and discharge pressures. Since all the compressors are of a reciprocating type, partial
loads do not cause a serious problem, but energy conservation may be possible by reducing the
discharge pressure.
(2) Energy conservation activities

After the plant tour, several energy conservation issues were discussed at a meeting in the
conference room. During the course of the discussion, it was found that the factory did not
possess fundamental data on energy consumption. The amounts and costs of electrical power
are known only from the monthly bills sent by DES. In the same way, the amounts of diesel oil
received are managed as a lump sum, but it is not known how much is used for boilers and
transportation equipment. This shows that energy conservation activities are not really
performed at all. One reason for this may be that energy costs are low in Brunei. However, we
urged them to start energy conservation immediately, and explained how to promote energy
conservation activities.
The first step in saving energy is to collect data on energy consumption. Since the main energy
source is electricity, we explained how to collect data on electricity consumption using a
watt-hour meter, which can be carried out rather easily. We also explained how to collect
approximate data on power consumption in production lines and utilities using the clamp-type
ammeters that they already possess. Furthermore, we explained the concept of unit
consumption of energy and advised them to calculate the energy consumption per sales volume
for the time being, if it is difficult to collect data on the energy consumption per production
volume, and to then look at the trends.
Materials we obtained from Kingston include: “Brochure about Kingston”, “Flow Chart for the
Beverage Production Process”, “Flow Chart for Ice-Cream Processing”, and “List of
Participants in the Seminar Workshop (hard copy)”.
3.3 Advice and Recommendations for EE&C Activities
(1) Understanding the energy consumption status

The first step in any energy conservation activities is to understand the status of energy
consumption.
Data on the amounts of electrical power, fuel, and water resources used must be made available
on a daily and monthly basis. The types of data required depend on the purpose of the energy
conservation activities. They may include detailed measurements collected using instruments or
specific data on individual facilities.
1) Ascertaining data on electric power consumption
V‐22
a. Monthly use
Monthly use can be determined from the electrical bills, but this involves a time delay.
Daily consumption data are required in order to assess day-to-day activities. Daily
consumption is easily measured using a watt-hour meter, but it is also possible to calculate
the power consumption by reading the supply meter of the electric power company if a
dedicated watt-hour meter is not available.
A simple method is to read the watt-hour meter at a specific time every day then compare
this with the values obtained on previous days. Table V-3-1 shows an example of a
record-keeping form.
Table V-3-1 Daily report for receiving power
Receiving power daily report Apr. 2005

Transformer #1 Transformer #２
Voltage Current P. Factor Acc. power Power Voltage Current P. Factor Acc. power Power
day V A % kWh kWh V A % kWh kWh
1(Fri) ① ＝②−① ① ＝②−①
2(Sat) ② ＝③−② ② ＝③−②
3(Sun) ③ ＝④−③ ③ ＝④−③
4(Mon) ④ ＝⑤−④ ④ ＝⑤−④
b. Daily load chart

A daily load chart is prepared to help determine hourly electric power consumption on a
daily basis.
This chart can be obtained using the same principle described above. Read the watt-hour
meter every hour, calculate the difference from the previous hour, and then draw a daily
load chart by plotting the differences. When the receiving board is provided with a
voltmeter, ammeter, and power-factor meter, electrical power can be calculated using the
measurements from these instruments.
The following method is another way to determine electrical power consumption based on
the rotational speed of the circular plate in the watt-hour meter. This method does not
require any other measuring instruments. Figure V-3-1 shows a photograph of a supply
meter and a drawing of the rotating circular plate.
① Obtaining the value of Wh/r

The circular, rotating plate with a black mark is actually a dial plate that indicates
integral power consumption, and the specifications of the meter are displayed nearby.
The specification “21.6Wh/r” shown (surrounded with a red circle in the above
photograph), means that 21.6Wh of electricity are required for one rotation of the
circular plate.
The supply meter at Kingston reads “1.5r/kWh”. In this case, use the inverse of this
value (i.e. 1/1.5r/kWh = 667Wh/r).
V‐23
② Measuring the rotational speed of the circular plate
To measure the rotational speed of the circular plate, utilize the black mark on the edge
of the plate. The speed can be measured in many ways, but one simple method is to
measure the time required for 10 rotations.
The rotational speed of the circular plate thus obtained is then designated as S
[revolutions/min].
Circular Plate
Direction of the rotation
Mark
Figure V-3-1 Supply meter and circular plate
③ Calculation of the electric power

Rotational speed [revolutions/min] is then converted into revolutions per hour by 60 ×
S [revolutions/h]. The electric power is obtained by multiplying this value by the Wh/r
value using the following equation:
60 × S [revolution/h] × electric power for a revolution (Wh/r value)
④ An example of measurement
In the case of the Kingston site, the value of Wh/r is known to be 667Wh/r (calculated
from the reading displayed of “1.5r/kWh”).
When the rotational speed is S = 20 [revolutions/min], the electric power P is obtained
as follows:
P = 60 × 20 [revolutions/min] × 667Wh/r = 800kW
The purpose of the above explanation is to introduce a method for measuring the power
used when other instruments are not available. The use of a watt-hour meter provided with
a recording function enables an even more complete daily load chart to be compiled.
By drawing a graph noting the power consumption every hour, a daily load chart can be
obtained, as shown in Figure V-3-2.
V‐24
c. Electric power consumption by use
To get a better understanding of detailed power consumption by classifying the loads, it is
convenient to divide the received power by the number of trunk lines at the electricity
receiving board. Measure the current of each trunk line using a clamp ammeter and assume
that the power factor is about 0.8. Then divide up the total received power in proportion to
the calculated currents. This calculation includes some error due to the estimation of the
power factor, but this will only deviate by 10% at most, which does not matter for the
purpose of this calculation.
However, this measurement gives only those values for a given moment in time, and a
watt-hour meter must be used to compare the proportion of power consumption used over
periods of days or months. It is therefore recommended that a watt-hour meter be installed
to implement comprehensive electric power control.
450
Pe ak
400
350
ower（ｋW）
300
P電力（ｋW）
250
200 Ave r age
150
100
50 Nigh t po we r
0
0 2 4 6 8 10 12 14 16 18 20 22 24
Time (hour)
Time（o'clock）
時刻（時）
Figure V-3-2 Daily load chart
2) Getting a better understanding of fuel consumption

It is recommended that a flow meter be installed in the fuel pipeline for boiler fuel. Since the
diesel fuel for the boilers is transported through a pipeline, a flow meter should be installed
in this pipeline. It is also necessary to install a flow meter to monitor the steam supply.
(2) Analysis of data and exploitation of themes for energy conservation

Try to comprehend the pattern of energy consumption by analyzing the fluctuations in use and
the correlations between the data, in order to identify both potential problems and
countermeasures.
1) Analysis of the daily load chart

The daily load chart is analyzed in order to decide how best to reduce power consumption.
Reducing power consumption during the night and reducing peak power can be especially
V‐25
effective.
Compare the chart with the operation pattern of the factory to check whether there is waste
power consumption during recess time or at night, when factory operations halt. Since power
consumption during the night and on holidays is fixed, any reduction in power consumption
is very effective because the loss is constantly integrated over time.
Changing the operation schedule can sometimes disperse peak power. Peak power is directly
related to the electricity tariff. The same measures described for reducing power
consumption during off-peak operation should be taken when the electricity rate is high.
2) Unit consumption
Unit consumption is defined as the index expressed “by dividing the energy used for
production by the production volume”. Unit consumption can therefore be calculated as
follows:
Unit consumption = amount of energy used/production volume
Unit consumption is a useful index for evaluating the achievements of energy conservation
activities, and can be used for many different purposes such as comparison with other
companies and setting targets for energy conservation (for example, a 1% REDUCTION IN
UNIT CONSUMPTION).
Since the unit consumption expresses the degree of energy conservation on a macroscopic
level, the ratio of energy consumption to the production volume for each process can also be
used to assess the degree of energy conservation at each stage of the process.
3) Converting fixed energy to variable energy
By plotting energy consumption against production volume on a graph, as shown in Figure
V-3-3, energy consumption can be divided into fixed elements and variable elements.
Energy Consumption
Energy Consumption
fixed
changing
fixed
Production Production
Figure V-3-3 Fixed elements and variable elements of energy consumption
In a production system where the fixed elements dominate, unit consumption drastically
increases as the production decreases. One of the targets of energy conservation is therefore
to convert fixed elements into variable elements. Facilities that operate regardless of
production must be converted so that they operate in conjunction with production. Generally
V‐26
speaking, facilities for utilities are apt to contribute more to fixed elements.
(3) Implementation of improvements

Once targets for energy conservation are set, specific measures to achieve these targets can be
implemented.
The procedure for this should follow the PDCA (Plan-Do-Check-Action) cycle, as illustrated in
Figure V-3-4.
What is important here is to numerically assess each achievement in the “Check” stage.
Numerical expression enables the sharing of the achievements resulting in vitalization of the
activities. This is the reason why numerical measurements are important in all energy
conservation activities.
When the set target is achieved, the results are standardized as a work standard to ensure
further improvement.
Plan: To find the loss and waste of energy consumption

and find countermeasures to minimize them.
Do: Carry out the countermeasures

Energy
EnergyAaudit
ud
Check: Evaluate the result
Action: Reform the process
Making improvements
Improving using the
through PDCA PDCA cycle
cycle
Figure V-3-4 The PDCA cycle
(4) Major object facilities
1) Motors, fans, and pumps

The capacities of fans and pumps are apt to be in excess of what is actually required. In the
case of a pump, for example, various allowances can be made, such as 10% for the deviation
from actual conditions, 50% for leakage in the pipeline, and 10 – 15% for pump capacity.
After adding up all these allowances, the load factor in the actual operation may only be
70% or thereabouts, in many cases.
Figure V-3-5 shows the relationship between the load factor and efficiency for a motor, fan,
V‐27
and pump.
100.0
80.0
Efficiency (% ) 60.0
M otor
40.0 Fan
Pump
20.0
25 50 75 100 125
Load factor (% )
Figure V-3-5 Relationship between load factor and efficiency for a motor, fan, and pump
When the load factor is only 50%, efficiency decreases by 10% both in the pump and the fan.
When the load factor decreases even further, efficiency decreases drastically. Since a load
factor, 50% means that a motor capacity is more than twice as necessary used. This situation
must be improved.
The easiest way to identify a facility with excessive capacity is to measure the current of the
driving motor. If the current is less than 60% of the rated value, it is possible that the load
factor of the pump or fan is 50% or less.
A simple method to improve the load factor is to adjust the capacity by reducing the
rotational speed by changing either the pulley ratio or the gear ratio.
2) Air compressors
a. Reduction of discharge pressure
Since the number of operating compressors is controlled using a main compressor and an
auxiliary, reciprocating compressor, partial load must be dealt with appropriately. To
confirm this, it is recommended that the current be measured both when loaded and
unloaded to check whether the capacity is adjusted properly. The control is appropriate if
the current decreases to about 30% when unloaded.
In displacement compressors such as a reciprocating or screw type, decreasing the
discharge pressure can reduce the shaft output of the motor.
Figure V-3-6 shows the energy conservation effect when the discharge pressure is reduced,
taking the reference pressure as 0.7MPa. (Same Figure V-2-3)
When the discharge pressure is reduced from 0.7MPa to 0.6MPa, the results in power
saving is 10% and about 18% when the pressure is reduced to 0.5MPa. Therefore, reducing
the discharge pressure to the value actually required by the load facility should save the
energy.
V‐28
Base pressure: 0.7MPaG
Power consumption ratio to base

1.1
1
0.9 18%
0.8
0.7
0.6
0.5
0.4
0.3 0.4 0.5 0.6 0.7 0.8
Discharge pressure (MPa)
Figure V-3-6 Relationship between discharge pressure and power consumption
b. Dew point control and leakage control

Since there are many low-temperature workshops in the Kingston factory, compressed air
must be dried properly before use. Water condenses at temperatures lower than the dew
point, causing the lowering of partial pressure of the compressed air and leakages due to
the corrosion of the pipelines.
It is said that even in newly installed pipelines 3 to 5% of the air leaks out, and that leaks
will exceed 10% with age, eventually reaching 35% or more. Major sites of leakage are:
･Joints of piping: corrosion of flanges, creation of gaps between flanges, loosening of
bolts,
･Seals: elastic seals (rubber), and metal seals.
In the case of reciprocating compressors, since the pressure is not constant, air leakage
must be checked by operating the compressors when the operations of the factory have
been suspended. Air leakage is expressed by the load/unload ratio (Figure V-3-7).
Air leakage is estimated as follows:
L = t1/(t1+t2) × 100[%].
ロード
Load
０．５MPa
T1 アンロード
Unload
Load f actor=
T1+ t2
０．６MPa
T1 T2
V‐29
Figure V-3-7 Air leakage check
c. Boiler and steam system

For liquid fuels, the air ratio m (= amount of combustion air/amount of theoretical
combustion air) should be controlled at about 1.2.
To effectively utilize the heat contained in exhaust gas, the combustion air should be
preheated by the exhaust gas. The supply pressure of the steam should also be reduced in
accordance with the pressure actually required.
High-temperature boiler drums, pipelines and valves should be insulated; steam leakage
from the pipelines should be prevented; and the drain should be recovered for recycling
and heat exchange.
In tropical regions, insulation is apt to be neglected because the ambient temperature is
high, but it should be noted that even a high ambient temperature is still more than 100℃
lower than that of the steam.
(4) Installation of a watt-hour meter provided with a recording function

Although Kingston has a clam-type ammeter, to implement energy conservation on specific
items of equipment, a better measuring instrument is required as a tool for the energy manager.
For this reason, it is recommended that watt-hour meters provided with a recording function
should be installed.
Watt-hour meters are available that enable data analysis by inputting data directly to a personal
computer. These instruments are provided with various functions such as harmonic
measurement and distortion factor measurement. For example, the watt-hour meter shown in
Figure V-3-8 is available in Japan at a price of about ¥400,000.
Figure V-3-8 Watt-hour meter provided with a recording function
V‐30
4.1 Summary
A seminar workshop was held on December 17 (Sat), 2005.
The seminar workshop started with the opening address of Mr. Pg. Zamra (DES) of Brunei who
took the chair. The seminar was well attended with more than 100 people, including participants
from Brunei DES and three presenters from ASEAN countries. There were many relevant
questions and answers and the seminar workshop was very successful.
(1) Time and date

December 17 (Sat), 2005, 8:30: Start of registration, 17:30: Closed
(2) Venue
The Centrepoint Hotel, 6F (Purple Jade Room), BSB, Brunei Darussalam

The program of the presentation is shown in Material No. D-112.
In Session 1, a general overview of energy in ASEAN, an energy overview in Brunei, and an
overview of EE&C activities in Japanese industry were presented. In Session 2, successful
cases of energy conservation activities in ASEAN countries — Brunei, Indonesia, Vietnam, and
Malaysia — were reported. ECCJ presented reports on behalf of the Philippines and Laos,
whose representatives could not attend the seminar due to the inconvenient schedule. In
Session 3, TD and DB/BM/GL were discussed.
Since Mr. Christopher Zamora of ACE was absent from the seminar, Mr. Pg. Zamra of DES
took the chair. In the 5-minute question and answer session held after each presentation, the
participants asked many relevant questions and productive discussions took place. Media
representatives were also present at the seminar, including Media Permata (the local paper) and
Borneo Bulletin (an English paper). The seminar proceedings were also televised in the
evening.
(4) Participants
Brunei: DES
Mr. Hj Umar bin Hj Mohd Tahir, Head of Energy Policy & Planning
Mr. Haji Abd Shawal bin Yaman, Energy Division
Mr. Pg. Zamra (Pg. stands for Royal Family)
Mr. Ismail bin Hj. Mohd. Daud, Head of Unit, safety and Enforcement
Many other people
ACE:
Dr. Weerawat Chantanakome, Executive Director
V‐31
Indonesia:
Mr. Subagyo, PT Kertas Leces
Vietnam:
Mr. Tran Minh Khoa, Institute of Technology
Malaysia:
Mr. Ibrahim Hishamdin, Pusat Tenega Malaysia (PTM)
More than 100 participants from Brunei attended the seminar, including DES members. Many
of them represented governmental organizations, but people from the state-controlled
petroleum company, Brunei Shell, and the two factories we visited were also among the
attendees. We asked to see an electronic file listing the participants, but we have not received
this yet.
(1) Opening ceremony
1) ACE
The speech given by Dr. Weerawat, Executive Director of ACE, was almost the same as that
delivered in Indonesia. However, he added that he was impressed by the lush beauty of
Brunei, which he was now visiting for the first time, and that energy was one of the most
important topics of the recent East Asian summit meeting held in Kuala Lumpur. He further
stated that his successor in ACE would be selected from Vietnam and that it would be
Brunei’s turn to fill the position if Vietnam was to decline.
2) ECCJ
Mr. Tanaka represented Japan (METI and ECCJ). He stated the significance, history, and
recent background of this project and outlined the Japanese cooperation and contribution to
ASEAN.
3) DES
The Honorable Hj. Umar bin Hj. Mohd Tahir greeted all those present. He outlined the
energy conservation policies of the government of Brunei, introduced recent activities such
as the PROMEEC (industry) audit, and then declared the seminar open. He attended the
workshop for the whole day, listening carefully to the discussions and, at the end of the
seminar, handed a diploma to the participants and shook their hands. He also participated in
the question and answer session.
(2) Session 1: Policies and initiatives on EE&C
V‐32
1) Overview of ASEAN Plans and Programs on EE&C (Dr. Weerawat, ACE)
The same material used in Indonesia was presented again, although emphasis was placed on
the portion most relevant to Brunei. (Material No. D-127, the same as that used in
Indonesia).
2) Energy Overview in Brunei Darussalam (Mr. Yaman, DES) (Material No. D-134)
Production of petroleum and natural gas, power generation facilities, the use of energy by
industry, changes in the demand and supply of energy in the past, policies on energy use
(petroleum and electric power), and policies on energy conservation in Brunei were all
explained.
3) Initiatives and Programs of ECCJ on EE&C in Industry in Japan (Mr. Tanaka, ECCJ)
(Material No. D-128)
Immediately before the presentation, the chairman, Mr. Zamra, stated that although he had
understood the significance and aims of energy conservation, how should energy
conservation actually be implemented? Technical Expert Tanaka replied that it would be
helpful to refer to Japanese cases, and he then started his presentation. As a result, the
attendees listened to Mr. Tanaka’s explanation very carefully. He described such topics as
harmonization of the “3 E’s”, methods of energy conservation, designated factories,
qualified energy managers, and the national convention of energy conservation.
(3) Session 2: Reports on successful cases of EE&C in industry
1) Cement industry, Brunei – Mr. Widjaja (Material No. D-135)

The factory manager, Mr. Widjaja of Butra Heidelberg Cement (which the energy
conservation follow-up investigation team had visited), reported on energy conservation
activities. He explained key points clearly. Taking the opportunity, he also requested that the
government restrict the import of cement for the time being.
2) Pulp and paper industry, Indonesia – Mr. Subagyo (Material No. D-129)
PT Kertas Leces (which the investigation team visited in Indonesia) presented the same
report made in Indonesia.
3) Ceramics and chinaware industry, Vietnam - Mr. Khoa (Material No. D-136)
Mr. Khoa acted as a last-minute replacement for Mr. Phon. His report was on the energy
conservation activities of HAPOCO, which the investigation team visited in 2004, and
another company (Mailam Ceramic).
4) Glass industry and textile industry, Malaysia – Mr. Hishamdin (Material No. D-131)
PTM presented the same report made in Indonesia.
5) Steel industry (Philippines) and hydroelectric power generation (Laos) (part of Material No.
D-130 and No. D-137)
Mr. Tanaka and Mr. Ogawa of ECCJ reported in place of the scheduled presenter. Because
the presenter from the Philippines could not attend due to a flight cancellation, two
Technical Experts from ECCJ reported in place of the scheduled presenter. Since neither of
V‐33
these industries actually exists in Brunei, only the general principles were reported, and
Tanaka gave a lecture relating to methods for promoting energy conservation in general.
(4) Session 3: The Way Forward
1) Barriers and Measures to implement EE&C –Mr. Ogawa

He used Material No. D-117 and referred to the presentations from Session 2.
2) Technical Directory – Mr. Amano (Material No. D-138)
As in the Workshop held in Indonesia, Amano explained the purpose of TD sheets, how to
prepare them, and the format to be used, showing actual examples. In addition, Mr. Ivan
explained actual examples of TD sheet use. Furthermore, Dr. Weerawat urged people from
Brunei to prepare TD sheets for themselves.
3) Database/Benchmark/Guideline for Industry - Mr. Ogawa
He based his presentation on Material No. D-119, as used in Indonesia.
In the middle of the presentation, an engineer from Brunei Shell asked many questions.
“What is the advantage of developing this database? Are there any political motives? Isn’t it
better to collect data on the whole energy chain from the start of supply through to final
consumption? Isn’t it difficult to compare different countries because subsidy conditions are
different?” While Ogawa was replying, Mr. Yaman said, “As I recall, an APEC database is
being developed separately, and it is difficult to coordinate different countries with different
conditions. For example, it is sometimes difficult even to standardize the energy units being
used”. These, and other such matters, were then discussed.
There was also a supplemental question concerning the development of the database being
undertaken and the agreement among the governments of ASEAN countries. Eventually
time ran out, however, and Mr. Weerawat wound up the discussion with the comment, “This
matter cannot be brought forward if even a single country is against it. We must have
exhaustive discussions to gain a consensus among all members.”
(5) Questions and answers

As described above, a Q&A session was held and there were many relevant questions. The
following are some examples:
Q: Is there any incentive for a factory to have an energy audit carried out?
A: You pay less energy bills. That’s it. (Mr. Yaman)
Q: What are the penalties for violation of the energy conservation laws in Japan?
A: Fines are charged. However, Japanese companies abide by the laws because they value
their reputation.
(6) Closing address

The seminar was closed by the closing address of Dr. Weerawat and Mr. Tanaka.
V‐34
VI. Activities and Efforts as ASEAN
1. Outline of Summary Workshop and Post-Workshop Discussions
Summary workshop and post-workshop discussions on three project areas shared by all
participating ASEAN countries -- promotion of energy conservation in major industries and
buildings, and the development of a common basis for energy management -- were held in
Bandung, Indonesia. These workshops were attended by the representatives of the seven ASEAN
countries and the representatives of the ASEAN Center for Energy (ACE) and the Energy
Conservation Center, Japan (ECCJ), in order to assess the results and achievements of each
project carried out this year and to confirm the activities to be carried out in coming years. In the
summary workshop, the year’s activities for each of the three project areas -- promotion of energy
conservation in major industries and buildings, and the development of a common basis for
energy management -- were reported by Japanese representatives. All participants then discussed
the assessment of the achievements and problems to be resolved.
1.1 Period of Summary Workshop and Post-Workshop Discussions

26 (Thu) – 27 (Fri.) January 2006
1.2 Location of Summary Workshop and Post-Workshop Discussions

Grand Preanger Hotel (Bandung), JL Asia Africa 81 P.O. Box 1220, Bandung, West Java,
Indonesia
1.3 Participants in the Summary Workshop and Post-Workshop Discussions

Focal Points (FPs) from 10 ASEAN countries were supposed to attend the seminar. However,
thirteen people from seven ASEAN countries, five from ACE, and four from ECCJ, totaling 22
people, actually attended. The names of the participants are listed below. Delegates from
Myanmar, Singapore, and Vietnam were absent because the holidays of the Lunar New Year had
already started.
Indonesia (7 persons)
Ms. Maryam Ayuni: Head of Energy Conservation Div., MEMR
Ms. Endang Lestali: Coordinator, Energy Conservation and Environmental Research
Program, Center for R & D on Energy and Electricity Technology,
MEMR
Ms. Devi Laksmi: Staff of Energy Conservation Div., MEMR
Dr. Nugroho Sulami: Department of Engineering Physics, Institute Technology
Bandung
Ms. Sutji Rahayu: Tariff Expert, Marketing Div., Indonesia Electricity Corporation
(PT PLN (Persero)), Observer
Dr. Ir. Widodo W. Purwanto: Head of Clean Energy & Products Research Group, Universitas
Indonesia, as an observer
VI - 1
Mr. Pramdi B. Pradja PT KONEBA, Observer
Brunei Darussalam (1 person)
Mr. Haji Abd Shawal bin Yaman: Head of Energy Div., DES
Cambodia (1 person)
Mr. Lieng Vuthy: Deputy Director, Dept. of Energy Technique, MIME
Lao PDR (1 person)
Mr. Khamso Kouphskham: Deputy Chief of EMD, Ministry of Industry and Handcrafts, Dept.
of Electricity, Elect. Manage. Div. (EMD)
Malaysia (1 person)
Mr. Ahmad Zairin Ismail: Deputy Director, Energy Industry & Sustainable Development
Div., PTM
Philippines (1 person)
Mr. Marlon R. Domingo: Senior Science Research Specialist, Energy Efficiency Div.,
Energy Utilization Management Bureau, DOE
Thailand (1 person)
Dr. Prasert Sinsukprasart: Department of Alternative Energy Development and Efficiency
(DEDE)
ACE (5 persons)
Dr. Weerawat Chantanakome: Executive Director
Mr. Christopher Zamora: Administration and Finance Manger
Ms. Maureen C. Balamiento: Database and IT Specialist
Mr. Junianto M.: IT Staff
ECCJ (4 persons)
Mr. Tsuzuru Nuibe: Senior General Manager
Mr. Kazuhiko Yoshida: General Manager
Mr. Yoshitaka Ushio: General Manager
Mr. Hideyuki Tanaka: Technical Expert
VI - 2
2. Summary Workshop related Major Industries
For the outline of the achievements of the project, related to major industries, Dr. Prasert took the
chair of the meeting, which proceeded according to the workshop agenda (Material No. D-201).
2.1 Activities for Major Industries in Four Countries in FY2005.

In the Phase 1 activities, energy conservation audit were carried out for 10 ASEAN countries by
ACE-ECCJ. In the second year (Phase 2) activities, follow-up energy conservation audit were
carried out on major industries in the four countries described below. Furthermore, in the course
of Phase 2 activities, some factories were newly surveyed in order to check on the dissemination
of the energy audit and guidance provided in Phase 1. In addition, a seminar workshop was held
in each country. In the summary workshop, an outline of the activities in all these four countries
was presented. (Material No. D-202E)
Countries visited in the second year (Phase 2) activities and periods of activities.
Cambodia 22 to 26 August, 2005
Philippines 29 August to 2 September 2005
Indonesia 5 to 12 December, 2005
Brunei Darussalam 14 to 17 December, 2005
Table VI-2-1 shows an overview of the activities in each country.
Table VI-2-1 Overview of Phase 2 Activities in 2005
Country
Brunei Cambodia Indonesia Philippines
Items Time Dec. 13∼17 Aug. 22∼26 DEC. 5∼12 Aug. 29∼Sep.2
Cement & Food Pulp/Paper and 2 Rolling Mill
1. Follow-up / Energy Audit Processing Factories 3Factories
Garment
Textile Factories Factories
2. Seminar-Workshop Brunei - MOE Cambodia-MIME ACE Philippines - DOE
1) EE&C Policy ACE ECCJ ECCJ ECCJ
Cement (Brunei) Brunei - BHC
Ceramics (Vietnam) Vietnam - MOI Vietnam - MOI Vietnam - MOI
Chemical (Caustic Soda) Philippines -
(Thailand) R.I. Chemicals Co.
2) EE&C Activities
Garment (Cambodia) F-up: MIME/ECCJ

Food (Singapore) Malaysia - PTM
Philippines- URC
F-up: DOE/ECCJ
Iron/Steel (Philippines) (ECCJ) Philippines - DOE
Malaysia - PTM
Oil Refinery (Myanmar)
Power (Lao PDR) (ECCJ) Lao PDR-MIH Lao PDR-MIH Power - DOE
Pulp/Paper (Indonesia) Indonesia - Indonesia - Indonesia - Indonesia -
PT Kertas Leces PT Kertas Leces PT Kertas Leces PT Kertas Leces
Textile (Malaysia) Malaysia -PTM Malaysia -PTM
Glass-Malaysia Glass-Malaysia Glass - Malaysia
Other Industries Co-Gene & ESCO
- Thailand
1)1)What
Whatare thethe
are Barriers & Measures
Barriers for the
& Measures onImplementation of EE of
the Implementation &C [ECCJ]
EE&C [ECCJ]
3) Way Forward 2)2)Development
Development of Technical Directory,
of Technical DB/BM/GL
Directory, for Industry
DB/BM/GL [ECCJ & ACE]
for Industry [ECCJ & ACE]
VI - 3
In the seminar workshop, the host country reported policies on energy conservation and the
energy conservation activities carried out by the industry. Presenters from three or four ASEAN
countries, listed above, attended the meeting in order to report on the status of activities for
energy conservation in the major industries of their own country. When the presenters from other
countries/industries could not attend the seminar in person, ECCJ representatives took their
place.
There were many reports presented by various countries other than the host country, describing
ceramics in Vietnam; hydroelectric power generation in Laos; the pulp and paper industry in
Indonesia; glass, textiles, food, iron and steel in Malaysia; iron and steel in the Philippines; and
cogeneration and ESCO in Thailand.
The following overview concerns the activities carried out in these four countries. (Refer to
items II to IV for details of the activities of each country.)
(1) Activities in Brunei

During the four days of activities, a follow-up energy audit of a cement factory and a walk
through energy audit of a food-processing factory were conducted. On the last day, a seminar
workshop was held. More than 100 people participated in the seminar workshop, which was a
proof of the profound interest in energy conservation in Brunei. Among the ASEAN countries
present, Vietnam reported on activities in the ceramics industry, Indonesia reported on those in
the pulp and paper industry, and Malaysia reported on those in the glass and textile industries.
The question and answer session held after each report was very lively. The cement factory
prepared a written reply to the questionnaire submitted by ECCJ and presented an activity report
on energy conservation, demonstrating a high level of factory management. The factory manager
attended the seminar workshop and reported on all these activities.
(2) Activities in Cambodia

During a weeklong visit, follow-up energy audits were carried out on two garment factories. In
addition, a sister company of one of these factories, which had just started operation, also
requested a walk through energy audit and Cambodian FP and ECCJ personnel visited this
factory. A seminar workshop was held on the last day.
The two factories for which follow-up energy audit were carried out were very serious about the
promotion of energy conservation. ECCJ had to report the results of each follow-up energy audit,
and it seemed that these energy audits were well received by the industry staff.
Among the ASEAN countries participating, successful cases of energy conservation presented
included the ceramics industry in Vietnam, hydroelectric power generation in Laos, the pulp and
paper industry in Indonesia, and the glass industry in Malaysia. The selection of these industries
was made by the Cambodian MIME, which provided suitable information for the preparation of
the reports.
(3) Activities in Indonesia

A follow-up energy audit was carried out on a pulp and paper factory located in East Java.
Taking travel to and from Jakarta into consideration, a six-day visit was scheduled. Another walk
VI - 4
through energy audit was also carried out in the same region and a seminar workshop was held
on the sixth day.
The staffs of the pulp and paper factory were very serious about energy conservation, and all the
items for improvement recommended in Phase 1 had been implemented, wherever possible.
They have reported on energy conservation activities at every PROMEEC seminar workshop,
having a significant influence on the industrial world of the ASEAN countries.
Among the ASEAN countries, successful cases of energy conservation were reported by Laos,
regarding hydroelectric power generation; by Malaysia, regarding the glass and textile industries;
by the Philippines, regarding the iron and steel industry; and by Thailand, regarding
cogeneration and the ESCO industry.
(4) Activities in the Philippines

In the Philippines, a follow-up energy audit was carried out on a steel rolling mill and a walk
through energy audit was carried out on another rolling mill. A seminar workshop was held on
the fifth day.
The rolling mill for the follow-up energy audit was very serious about energy conservation and
keeping costs down and had organized an energy conservation team. Such activities began rather
recently after one of their managers participated in a training seminar on energy conservation in
Japan. ECCJ had to report the results of the follow-up energy audit.
Successful cases of energy conservation activities in ASEAN countries were reported by
Malaysia on the food and steel industries; by Vietnam on the ceramics industry; and by
Indonesia on the pulp and paper industry.
2.2 Status of Energy Conservation Activities in ASEAN Countries
(1) Follow-up energy audit of factories

Table VI-2-2 shows a summary of the results of activities at the factories for which an energy
conservation audit was carried out in Phase 1. The results are for the factories and major
industries in each of the four countries we visited this time and those we carried out follow-up
energy audits on in 2004. (Additional information obtained afterwards is included in the latter).
The results achieved (relating to the recommendations and advice given) are classified as either
“finished,” “under study,” or “not implemented”.
With regard to the follow-up energy audits of 2005, the sum of “finished” and “studied”, (which
means that at least some measures have been taken) is about 90% of the total. The remaining
10% is “under study” or “not implemented” and it is expected that some kind of measures will be
taken in the near future.
Combining the results for 2004, it can be seen that 83.3% of all activities have been implemented,
which surpasses the 64.5% figure for 2004. This indicates that all activities are being
energetically carried out. This table also shows that energy conservation activities are especially
common in the Indonesian pulp and paper factory studied. The results at the Vietnamese
ceramics factory were achieved after the follow-up energy audit in 2004, which shows that the
VI - 5
achievements there are due to the concerted efforts of the whole factory.
Table VI-2-2 Summary of EE&C Activities (Follow-up Energy Audit)
Items Numbers
Item Numbers and Ratio
and Ratio (%) (%)
Country Company Name Not Imp-
Recommended Finished Under Non-
(Industry) lmented
by ECCJ or Studied Study activity
Brunei Butra Heidelberg Cement 5 0 1
6 17%
(Cement Industry) 83% 0%
M&V International Mfg 2 0 1
3 33%
(Garment Industry) 67% 0%
Cambodia
2005
Company
June A Co. Ltd.
Textile 2 0 1
(Garment Industry) 3 67% 0% 33%
Indonesia PT KERTAS LECES 34 28 34 0 6 0
(Pulp/Paper Industry) 100% 0% 0%
Philippines Company
Steel Asia C
Mfg. Corp. 2 1 1
4
(Iron/Steel Industry) 50% 25% 25%
2004 + Presentation
Vietnam Hai Duong Porcelain Co. 11 2 10 0 9 1

(Ceramics Industry) 91% 0% 9%
Num Ngum Hydropower 4 0 0
Lao PDR 4
Plant (Power Industry) 100% 0% 0%
Arab-Malaysia D. B. 4 5 0
Malaysia 9
(Textile Industry) 44% 56% 0%
Mann Thanbayakan 2 2 0
Myanmar 4
(Oil Refinery) 50% 50% 0%
Total 78 65 (83.3%) 8 (10.3%) 5 (6.4%)
(2004)
2004 only 62 40 (64.5%) 7 (11.3%) 15 (24.2%)
(2) Energy conservation activities at the newly visited factories

Four new factories were visited in 2005, one in each of the four countries. Details are as
described above in the introductory paragraph supplied for each country. Three of the four
factories had just started energy management. The other factory had previous experience of
energy audit and the factory manager had taken a training course on energy management in
Japan. Therefore, the level of energy conservation activities at this factory was comparable to
that of the factories that had participated in Phase 1 of the PROMEEC program.
Due to the recent steep rise in energy prices, all the factories were eager to take some measures
for energy conservation, and this probably contributed to the welcome extended to the
investigation team. It is hoped that the information obtained from the on-site energy audit and
guidance will be utilized for the promotion of further energy conservation.
(3) Participants in the energy audit of factories and the seminar workshop
In the PROMEEC activities of 2005, government officials from member countries and managers
and engineers of private companies were supposed to play a proactive role in the follow-up
investigation and energy audit of new factories, with the assistance of ECCJ experts, on an OJT
basis. As a matter of fact, nothing happened unless ECCJ experts took the initiative themselves.
OJT training had the intended result of increasing the number of participants in the energy audit
of factories in 2005 from an average of 1.6 to an average of 4.2, as shown in Table VI-2-3.
On the other hand, the number of attendees at the seminar workshop decreased from 71.5 to 56.5,
VI - 6
which may have been caused by budget restrictions.
Table VI-2-3 Number of participants in the diagnoses and seminars in various countries
Item Year
2004 2005
Energy audit Number of factories 7 9
Total number of 11 38
participants
Average number of 1.6 4.2
participants/factory
Seminar workshop Number of seminars 4 4
Total number of 286 226
participants
Average number of 71.5 56.5
participants/seminar
(4) Outline of successful cases of energy conservation reported in the seminars

Representatives from six countries reported on 14 successful cases of energy conservation. Some
examples are shown in Table VI-2-4. Activities in hydroelectric power generation reported by
Laos and those in the glass industry and textile industry reported by Malaysia are omitted here
because they are not significantly different from those reported last year. Indonesia reported on
energy conservation activities in the pulp and paper industry, but these are also omitted because
they appear elsewhere in the description of activities in Indonesia.
(5) Summary of energy conservation activities in ASEAN countries in 2005

The activities carried out in 2005 gave a strong impression that energy conservation is being
actively promoted in ASEAN countries. In particular, it seems that the recent steep rise in
energy prices has caused energy-poor countries to increase their efforts to promote energy
conservation in order to keep costs down.
To promote energy conservation activities, recognition of their importance and clear leadership
by top management is required to trigger activity in each individual factory. Once it is
understood that energy conservation leads to profits for the company and that it will eventually
benefit the society as a whole, energy conservation activities will be stimulated even more. It
cannot be denied that barriers exist to the promotion of energy conservation in ASEAN
countries, but we believe that such barriers will be overcome through the PROMEEC programs
and through various kinds of training seminars for further energy conservation.
VI - 7
Table VI-2-4 Successful cases of energy conservation reported by ASEAN countries
Country Industry EE&C Activities

Food Industry 1. Installation of economizers on LP boilers
2. Waste heat recovery from hot water boilers
(Edible Oil Refinery) 3. Process oil cooling by cold feed water
4. Condensate collection system
Total fuel saving = 116,703GJ/y (=Approx. 2,920kL/y)
Malaysia
Iron/Steel Industry 1. 2-stage recuperator (Recovery of flue gas temp.)
2. Air compressor change, from piston type to
Capacity: screw type: Power saving = 45%
EAF: 700kt/y, 3. VSD for rolling mill cooling water pump process
Mill: 550kt/y Power saving = 25% compared to throttle valve
Power saving = 1.7%, Fuel saving = 13.7%
Total cost reduction = 3%
Chemical Industry Change the 200RT refrigeration system from a vapor
RI Chemical Corp. compression type to a vapor absorption type, wherever
there is waste heat and a need for chilled water.
Effect on productivity: +3.6%
Philippines
Iron/Steel Industry Introduction of outline of Philippines’ steel industry
(By DOE) and “2005 Don Emilio Abello EE Awards”
[Rolling Mill Co. saved 580kL/y of fuel oil by heat recovery
from the furnace, etc. and Steel sheet coating Co. saved
107kL/y of oil]
Porcelain Industry Significant percentage improvement after 2004 follow up
(By MOI) Similar presentation at last Summary-Workshop
Brick Industry Energy audit at brick factory: Fuel saving = 3%.
Vietnam (By MOI) Power saving = 13% by insulation strengthening, etc.
Energy Audits at 12 Main measures identified by audit:
industrial factories VSD, boiler improvements, condensate collection
(By Institute of system, maintenance method, compressed air
Energy) systems, etc. Saving: Fuel = 0~38%. Power = 5~40%
(6) Barriers to Energy Conservation in Industry and Possible Countermeasures

We felt that this year’s on-site survey highlighted the same barriers that existed last year. For
example, lack of policies, shortage of personnel resources, low technical levels, a shortage of
finance, and a lack of information were frequent topics of discussion. The attitude of top
management is yet another barrier to the promotion of energy conservation. It may be true that
companies with favorable business prospects make profits without promoting energy conservation,
but the situation will change as energy prices continue to rise.
2.3 Outline of the Reports Presented by the Four Host Countries at Summary Post Workshop
This year’s four host countries submitted reports on EE&C activities.
(1) Report of Brunei (Material No. D-203)

Since Brunei is a producer of petroleum and natural gas, energy prices are low in this country,
whereas facilities for energy conservation are costly. Therefore, people are not always
interested in energy conservation and it is difficult to promote energy conservation without
reasonable incentives. It is therefore necessary to promote EE&C education of the general
public, to prepare policies and action plans, and to discuss how best to implement them.
VI - 8
(2) Report of Cambodia (Material No. D-204)
To overcome the low electricity diffusion rate of 17% and high electricity prices, it is planned
to triple the power supply over the next decade. The report presented was mainly concerned
with PROMEEC activities in the garment industry. Further dissemination of energy
conservation in this country still seems to be necessary.
Activities planned in the future are: cooperation with Thailand regarding renewable energy and
energy conservation; participation in further PROMEEC activities; and the promotion of CEEP
(Cambodian Energy Efficiency Project) as a local initiative.
(3) Report of Indonesia (Material No. D-205)

It was reported that six walk through energy audits and 15 detailed energy audits had been
carried out for more than six types of industry. (This number includes the energy audits carried
out in the present PROMEEC program.)
It was also reported that MEMR was developing an energy conservation database (DB) and an
energy efficiency model (EEM), whose menu includes company profiles, facilities and power
consumption, fuel consumption, energy consuming facilities, and energy conservation
activities.
(4) Report of the Philippines (Material No. D-206)

The energy conservation audit for the iron and steel industry carried out as part of PROMEEC
and the results of the seminar held in the Philippines were presented. The PROMEEC activities
are helpful for establishing information networks among private companies, and TD and DB
are useful for the EE&C of private companies. However, there are many barriers still to be
overcome.
The Philippines has an award system for the Industry and Building sector and, in the Industry
category, 23 companies received these awards in 2004 and 15 companies received awards in
2005.
Although energy conservation has not yet been legislated, the relevant regulations and rules
were explained.
2.4 PROMEEC Activity Plan for FY2006 (Material No. D-207)

METI-ASEAN PROMEEC will be continued in 2006 with the ACE, ECCJ and FPs (Focal
Points) of each country carrying out the same key roles as they did in 2005. As shown in Figure
VI-2-1, on-site surveys in 2006 are scheduled for August and November, visiting two countries
each month. This will include Singapore and Thailand, two countries that have not yet been
involved in any energy audit. Two more countries that are actively promoting energy conservation
activities and can host the survey are invited to apply. The selection will be decided at the
inception workshop in 2006.
When implementing the on-site survey, those ASEAN countries involved in energy audits are
obliged to select the factories to be audited, establish an energy audit team consisting of five or
more members sharing the necessary roles, implement preliminary education, and prepare a
VI - 9
written reply to the questionnaire. A week’s visit is scheduled for each country and a maximum of
two factories are selected for the follow-up energy audit and new energy audit. A seminar
workshop is then held where the energy audit team presents the results. Also at the seminar, the
host country reports on its energy conservation activities and member countries designated by the
host country report on their activities. In the workshop, the preparation of Technical Directories
(TD), and the formulation and status of Databases (DB), Benchmarks (BM), and Guidelines (GL)
are also discussed.
A final workshop is then held after summarizing all activities carried out in 2006.
Year 2006 2007

Activities Month 4 5 6 7 8 9 10 11 12 1 2 3
Preparation of Detailed
(1) Implementation Plan &
Preparation for 1st Site Activity Two
1st Site Activity (Follow-up Countries
(2) Survey & Workshop (2
Countries))
Analyses of 1st Site Activity
(3) Results / Preparation for 2nd
Site Activity Two
2nd Site Activity (Follow-up Countries
(4) Survey & Workshop (2
Countries))
Analyses of 2nd Site Activity
(5) Results / Preparation for 3rd
Site Activity
3rd Site Activity (S & P-
(6) Workshop, TD disemmination &
DB/BM/GL formulation)
(7) Report Writing
Figure VI-2-1 Implementation Schedule, PROMEEC (Industry) for 2006 - 2007
2.5 Discussion
(1) Energy conservation energy audit, aiming at OJT
1) There were no objections to the request from ECCJ that an energy audit team consisting of
about five members should be established and that sufficient preparation must be undertaken.
There was an opinion expressed that the required capabilities of the members must be clearly
defined. It is doubtful whether competent personnel can always be found.
Several ASEAN countries, including Brunei, Cambodia, Indonesia, Laos, and the Philippines
requested that the ECCJ expert team give a detailed lecture for about several hours on the
methods and techniques used by the energy audit team. It was pointed out that independent
energy audit is possible for some industries but not always possible for others. ECCJ and ACE
commented that those countries that are conducting an independent energy audit can make use
of the energy audit team. The request for a field exercise to be held for all team members prior
to any actual energy audit will be considered as required.
2) There was also recognition (from Thailand and Indonesia) that the ECCJ experts are expected
VI - 10
to give supervision and guidance in energy audit to local engineers.
ECCJ and ACE concluded that energy audit is a key component of energy conservation and
that actual experience is important in developing energy audit techniques; that it is important
to continue the energy audit activities, aiming at OJT, and differences in the level of training
must be taken into consideration; and that ECCJ staff should propose the methods to be used.
(2) Importance of successful cases of energy conservation
1) It is important to highlight successful cases of energy conservation in the seminar in order to

help motivate the participants. This is also an effective way to promote energy conservation
and to introduce the follow-up activities planned for those factories where energy audit has
already been conducted. Key points and methods of energy conservation are instrumental in
bringing about improvements for all the industry. (Malaysia, Laos and Brunei)
2) Successful cases serve as useful reference points for others. Governments should therefore
assist in the preparation of reports so that more cases are collected. They are also helpful for
legislation. (Indonesia)
In Indonesia, it is a requirement that a report be submitted within six months of the energy
audit, and some successful cases have been reported. However, it is often very difficult to have
the business world understand the meaning and objectives of the energy audit and so the
number of successful examples reported is still very small. From this year on, the Indonesian
government will attempt to have the business world understand the objectives of the reporting
process by communicating the intentions of the government through the association. At
present, pilot factories have been designated in four to six industrial fields in East Java to
promote energy conservation projects.
3) Problems related to the location of the factory to be diagnosed (Laos)
One energy audit was carried out in a town that took one whole day just to get to. An effective
audit can be conducted even in a far away location. It depends on the situation (ACE, ECCJ).
VI - 11
3. Post-Workshop Discussions
3.1 TD (Technical Directory)

ACE introduced a technical directory (for the Industry and Building sector) which has been
compiled from data provided by Japan but and does not include successful cases, along with a
database (for the Building sector). Although the system is being formed, the contents must be
enriched from now through the cooperation with the personnel of ACE.
3.2 DB/BM/GL (Databases/Benchmarks/Guidelines)
(1) Clarification of the objectives and scope of the project

A common recognition is that there is a difficult problem about establishing
Databases/Benchmarks/Guidelines due to the problem of confidentiality. The purpose of this
project is to systematically construct an “In-house Database/Benchmark/Guideline System”
utilizing the results from the energy audit activities so that energy management can be smoothly
implemented by each factory and building. Therefore, it must be emphasized that the objective
is to design a standard database that can be used by all factories and buildings, and not to
construct a statistical system merely as a tool for formulating policies (such as the ASEAN
labeling of buildings). ACE added that although it takes time to establish, they expect to
complete a system (including the industrial sector) to be completed next year, and that they will
then discuss the matter further.
(2) Discussion on the establishment of a Database/Benchmark/Guideline system
1) It is important to recognize what databases (such as energy consumption, process, or facility)

are to be constructed and what their objectives are. The data currently available on the internet
are often meaningless. Detailed data are required. (Thailand)
2) Feasible in-house Data Management and in-house Benchmarking systems are important.
An in-house database is a collection of all the data required on site. Such databases are
actually used to implement energy conservation (ECCJ). Statistical databases are quite
different.
An in-house database is also a useful tool for policy making if it is used as a kind of model.
(Brunei)
3) A Malaysian glass factory has succeeded in energy conservation by setting a benchmark at the
request of the government. Energy conservation cannot be promoted based only on in-house
data. It is important to obtain information on successful external cases. (ECCJ)
4) There are in-house benchmarking and external benchmarking systems, but it is inevitable that
private companies will refuse to provide some information in order to maintain confidentiality.
Therefore, it is recommended that each industrial association arrange some kind of agreed
system among its member companies by which information can be exchanged. Malaysia has
adopted such systems in four different industrial sectors. It is also possible to use the results of
the energy conservation audit as the database. Information from three to four factories would
VI - 12
be adequate. (Malaysia)
5) Data from the energy audit are not sufficient to establish an entire database. It is impossible to
establish a system that can be used at the factory level for all industrial sectors. Even the
amount of data provided by 20 or so companies is insufficient. (Thailand)
It is definitely better to have more data but, as shown in Japan, even a small amount data can
be effective. (ECCJ)
6) The discussion has been very instructive for ACE, and ACE will make use of it in their future
work. ACE intends to collect further information with the cooperation of the CCI (Chamber of
Commerce & Industry) of member countries. (ACE)
ASEAN countries agreed to accept the proposal of ACE.
Indonesia will cooperate in establishing databases in three industrial sectors.
The compilation of the database is certainly an important activity but it will be difficult to
decide who can access it. The problem of confidentiality arises if the database is made open to
the public. (Laos)
It is difficult to construct a common system for all the ASEAN members. It must be
constructed on a country-by-country basis. (Thailand)
In conclusion, it was agreed that the objective of the basic policy should be to utilize the results
since 2000 for the establishment of specific databases so that all members can use the data. It was
also decided that the original approach we have adopted, to date, should be maintained in the
future.
The year’s achievements and the results presented in the above discussions were much
appreciated by all who participated. In the post-workshop session, the philosophy, basic approach
and plans for the next year were unanimously agreed upon, and the basic plan proposed by Japan
was adopted unanimously with the consent of all the Focal Point representatives from the member
countries and ACE.
VI - 13
Ⅶ. Reference Material
The materials used at site activities in 4 countries and summary & post workshop regarding to
the major industries are listed here.
These materials are as follows;
- Site activity schedules
- Answers to questionnaires at energy audit
- Seminar/Workshop programs
- Presentation materials at site visits from ASEAN countries, ACE and Japan
- Presentation materials at S-P workshop from ASEAN countries and Japan
The Participant Lists are omitted because ECCJ could receive this from only one country. The
material numbers are shown as “Document No. D-100”, etc.
1. Materials for the energy audits and Seminar-Workshop in each country
1.1 Activity Schedules of ECCJ Technical Experts
D-101E Schedule of 1st Site Activity

D-102E Schedule of 2nd Site Activity
1.2 Answers to questionnaires at follow up and walk through energy audit
D-103E Answers from Company A, Cambodia

D-104 Answers from M&V International Manufacturing Ltd., Cambodia
D-105E Answers from Company C, Philippines
D-106 Answers from Primary Steel Corporation, Philippines
D-107 Answers from PT. Kertas Leces (Persero), Indonesia
D-108 Answers from Butra Heidelberg Cement BDN BHD, Brunei Darussalam
1.3 Seminar-Workshop Programs in 4 countries
D-109 Seminar-Workshop Program in Cambodia

D-110 Seminar-Workshop Program in Philippines
D-111 Seminar-Workshop Program in Indonesia
D-112 Seminar-Workshop Program in Brunei Darussalam
1.4 Presentation materials at Cambodia
D-113 Overview of EE&C Activities in Cambodia

D-114 Case Study, Glass Industry in Malaysia
D-115 Case Study, Pulp and Paper Industry in Indonesia
D-116 Follow Up of Energy Audit Findings at Garment Factories, Cambodia
Ⅶ- 1
D-117 What are the Barriers and Measures on the Implementation in Industry?
D-118 The Development of Technical Directory (1) and Sample (2)
D-119 The Development of Database/Benchmark/Guideline for Industry
1.5 Presentation materials at Philippines
D-120 EE&C Promotion Activities in the Philippines

D-121 EE&C Activities in Industries in Japan
D-122 Overview of Wholesale Electricity Spot Market, Philippines
D-123 EE&C Best Practices in Chemical Industry, Philippines
D-124 EE&C Best Practices in Iron & Steel, and Food Industry, Malaysia
D-125 EE&C Best Practices in Ceramic Industry, Vietnam
D-126 Findings of Follow Up Energy Audit at Iron and Steel Industry in the Philippines,
Introduction (1) and Follow Up (2)
1.6 Presentation materials at Indonesia
D-127 Overview of EE&C Programs of ASEAN, ACE

D-128 Initiatives and Programs of ECCJ on EE&C in Industry in Japan
D-129 Case Study of Pulp and Paper, Indonesia
D-130 Case Study of Hydropower, Lao PDR
D-131 Case Study of Glass/Textile Industry, Malaysia
D-132 Case Study of Steel and Cement, Philippines
D-133 Case Study of Co-generation and ESCO, Thailand
1.7 Presentation materials at Brunei Darussalam
D-134 Energy Overview in Brunei Darussalam

D-135 Case Study of Cement Industry, Brunei Darussalam
D-136 Case Study of Ceramics/Porcelain and Brick Industry, Vietnam
D-137 Case Study of Steel and Energy Audit, ECCJ for Philippines
D-138 The Development of Technical Directory, ECCJ
2. Materials for the Summary/Post Workshop (Major Industries)
D-201 Summary Workshop Agenda (Industry Only)

D-202E Summary of Local Activities, ECCJ
D-203 Evaluation and Future Improvement of Local Activities, Brunei Darussalam
D-204 Evaluation and Future Improvement of Local Activities, Cambodia
D-205 Evaluation and Future Improvement of Local Activities, Indonesia
D-206 Evaluation and Future Improvement of Local Activities, Philippines
D-207 Proposed Plan for 2006-2007, ECCJ
Ⅶ- 2
Any individual or organization who makes part or all of this report
public must obtain prior permission from International Engineering
Department of Energy Conservation Center Japan.
Phone 81-3-5543-3018
Fax 81-3-5543-3022

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2005 Achievement Report

International Project for Increasing

Report on the Results

The Energy Conservation Center, Japan

I. Purpose and Background of the Project .....................................................................Ⅰ-1

II. Cambodia (Garment Industry)....................................................................................Ⅱ-1

Ⅲ. Philippines (Steel Industry) ........................................................................................Ⅲ-1

Ⅳ. Indonesia (Paper/pulp and Textile industry)...............................................................Ⅳ-1

Ⅴ. Burnei (Cement Industry and Food Processing Industry) ..........................................Ⅴ-1

Ⅵ. Activities and Efforts as ASEAN ...............................................................................Ⅵ-1

Ⅶ. Reference Material .....................................................................................................Ⅷ-1

August 22-September 2, 2005 (Trip: August 21-September 3)

1. Follow-up survey on garment factories (Cambodia) and a steel factory (Philippines)

2. Seminar-workshop in each country

December 5-17 2005 (Trip: December 3-19);

1. Follow-up surveys on a pulp/paper factory (Indonesia) and a cement factory (Brunei

2. Seminar-workshop in each country

January 26-27, 2006 (Trip: January 25-29)

EE&C Energy Efficiency and Conservation

The project has the following objectives;

1. Outline of the Activities

1.1 Implementation Period

1.3 Schedule (Material No. D-101E)

1.4 Relevant Persons

(1) General circumstances

(1) Company profile

(2) Manufacturing process and energy consumption of the garment factory

First Putting on Second

Electricity Water Fuel oil

Figure ∐-2-1 Flow chart of the manufacturing process and

Items 2001 2004 Improvement

2.3 Follow-up Energy Audit

(1) Date of energy audit:

(2) Audit team members:

(3) Attendees from the factory:

(4) Outline of the follow-up investigation

2.4 Results and Discussion of the Investigation

(1) Production status and energy intensity (Material No. D-103E)

Figure ∐-2-2 Change in production (Comparison between 2001 and 2004）

Heavy oil EDC

250 Diesel oil Power consumption IPP

171 3,000 2,170

Figure ∐-2-3 Change in fuel consumption and electricity consumption

(2) Energy management

Table ∐-2-2 Electricity consumption by purpose

No.4 Compressor (New) Old factory

Figure ∐-2-5 Configuration of air compressors

Figure ∐-2-6 Examples of improved reflectance of lighting

4) Maintenance management of lighting fixtures

(5) Power of sewing machines

(6) Air conditioning facilities

(7) Boilers and steam piping

a. Prevent steam leakage by using a steam trap.

(8) Management of the usage of electricity

Figure ∐-2-7 Load curve (graph) per day of electricity consumption

Recommended Technology/Practice Implementation Status of Implementation

3.1 Visit of the Garment Factory of Company B

(2) Outline of the factory

3. 2 Advice and Recommendations for EE&C Activities

4.1 Outline of the Garment Factory of M&V International Manufacturing Ltd.