Energy Efficient Japanese

Technologies and Best Practices

Overview of TERI-IGES project(s)

Rabhi Abdessalem Sep. 25th 2014

About IGES: Outline

Kansai Research Center Date: July 7th ,2010 2

• Name of the Institute The Institute for Global Environmental Strategies (IGES)

• Establishment March 31, 1998

• Location [Headquarters]: Hayama, Miura-gun, Kanagawa [Tokyo Office]: Chiyoda-ku, Tokyo, [Kitakyushu Office]: Kitakyushu-city, Fukuoka, [Kansai Research Centre]: Kobe, Hyogo, [Project Offices in Bangkok and Beijing]

IGES headquarters （Hayama, Kanagawa）

IGES-TERI main Objective

Research Application of low Carbon Technologies in India (ALCT)

ALCT Project: Research stakeholders

To promote the application of Japanese low carbon technologies at small and

medium sized enterprises (SMEs) in India.

Figure: Research components of ALCT project

1- Review of existing practices;

2- Study and analyze technologies

and relevant conditions of Japanese

side;

3- Study and analyze needs of

technologies and relevant conditions

of Indian side;

4- Select the appropriate Japanese

technologies to be applied in India;

5- Analysis and verification through

pilot projects implementation

6- Draw lessons learnt from the project

and provide suggestions and

recommendations.

Components

Overall objective

Duration: 4 years (May 2010 - March 2014)

Technology Japanese Companies

Total number of

investigated sites

Number of selected sites for

pilot projects

Location of pilot

projects

SME

Hard Technologies

Gas Heat Pump

Yanmar 11

2

Rajkot

-Delta Technocast -Jagdish Technocast

Electric heat pump

Mayekawa

13

2

Anand

-Amul

Chandigarh

-Milkfed

Best

Practices (Soft

technologies)

Compressed air system

Hitachi (IES) 13

4

3 in Pune;

1in Noida

-Sankalp -Transauto -Mass Flange -DIC

Induction furnace

Expert from Kobe Steel

8

2

Kolhapur

-Marvelous Metals -Caspro Metal

Summary of selected sites and pilot projects

Activities and Results

After Before

Application Preheating of boiler feed water & precooling of process chilled water

Dairy, food processing, pharmaceutical, commercial buildings, etc.

Two pilot projects: 1 in “Milkfed” (Chandigarh) and 1 in “Amul” (Anand)

Results #1 : Demonstration of Electric Heat Pump (EHP)

Benefits Reduction in fuel consumption of boiler and electricity consumption of chiller

Energy savings: 30%-40%

Results #1 : Demonstration of Electric Heat Pump (EHP)

Application Space cooling applications in industry and commercial buildings

Two pilot projects: 1 “Delta” and 1 “Jagdish”, both in Rajkot (Gujarat)

Results #2: Demonstration of Gas Heat Pump (GHP)

Before After

Benefits

Switch from electricity to natural gas (NG)

Energy savings: 35%-45%

Results #2: Demonstration of Gas Heat Pump (GHP)

Examples of measures which have been taken by SME

Installation of new receiver and new air compressors (not inverter type) Adjusting pressure setting

Reduce air leakage through installing foot switch Reconsider pipe size and design Start the use of efficient air gun

Results #3: Best practices regarding compressed air

Application Four pilot projects: Transauto, Sankalp, and Mass flange (Pune), and DIC (Noida)

Notes:

-SME have taken almost all the proposed measures in

PS reports, except the installation of inveter type air

compressor. Additional 10%-20% could be achived by

installing inverter type air compressor.

Benefits Energy Saving: 20% -30%

Trans Auto

Iceburg DIC India Kansal Sankalp BOMBAY

CENTURY RAYON

Primary energy saving

Percentage 17% 22% 15% 25% 17%

19%

17%

(KWh/year)

53,196 96,624 99,360 135,360

223,994

84,230

79,076

CO2 emission reduction (ton/year) 49.5 89 93 125 208

78

73

Approximate pay back

period

3 years,

3 months

4 years

3 years, 6 months

2 years, 6 months

3 years

3 years

3 years

Expected impact of installing inverter type air compressor

Application Foundry, sand casting units

Observations Process parameters like product yield and rejection ratio have

important influence on energy efficiency

Often data recorded is not linked to improvements in operation

Awareness on best practices among operators is not high

Major taken activities Onsite capacity building to SMEs, and Provide to them training

material (in local language) on how to implement 3S/5S activities;

Training of Trainers (ToT) through training TERI experts, in India and Japan, on best practices so they can trainer SME later on.

Impact Approximately, up to 20% have been achieved (based on TERI presentation)

Results #4: Best practices in electric induction furnace

Result 5#: Capacity building and awareness raising (level1)

Targeting SME at unit level:

Onsite capacity building for managers and workers during site visits (in total, more than 50 sites visited)

Result5#: Capacity building and awareness raising (level2)

Targeting SME at cluster/segment level

Several cluster workshops to introduce technology to business entropreneurs and business associations

(in total 10 conducted)

IGES –TERI Joint Workshop (Dec. 2011, Rajkot (India)

IGES –TERI Joint Workshop Jan. 2012, Chandigarh (India)

Result5#: Capacity building and awareness raising (Level3)

Targeting Indian experts:

Training workshops to Indian experts (In India and in Japan)

(in Total 3 (2 in India and 2 in Japan))

Result5#: Capacity building and awareness raising (Level4)

Targeting Policy makers:

Interaction with policy makers through meetings, symposiums, etc.

)

IGES-TERI workshop

(Feb.2012 New Delhi- India)

India-Japan Energy Forum

(Sep.2013 New Delhi- India)

Summary of Major Achievements

Achievement1: A matchmaking processes with various stakeholders, including private sector, from India and Japan has been established; Most of them are ready to cooperate in the dissemination and follow up activities to be conducted in FY2014, and beyond

Achievement 2: Actual reduction in CO2 emission has been achieved;

Tech. EHP GHP CA IF

Sites Amul Verka Delta Jagdish Mass flange

Sankalp Caspro Marvellous

CO2 emission reduction

33%

40%

47%

43%

25%

30%

20%

20%

Achievement3: SAMEEEKSHA (Indian knowledge sharing platform) added IGES to its member list and has documented about the pilot projects repeatedly. check link: http://sameeeksha.org/index.php?option=com_projects&task=level&title=iges&id=40

Achievement4: The implemented pilot projects have been widely covered by Indian media, well evaluated by sponsors (A-), and had been disseminated at high level events such as India-Japan Energy forum, Delhi Sustainable Development Summit (DSDS); ISAP 2014, etc., which has attracted the interest of policy maker in India and Japan. MOEJ (from Japan) and Shakti Energy Sustainable Energy Foundation (from India) are supporting the follow up activities which are taking place in FY2014.

ALCT project Way forwards: Dissemination

EHP:

50 Dairy Plants in just two states (Punjab and Gujarat).

GHP:

120 investment casting industries

CA: ~1200 forging units.

IF: More than 4,500 foundries in India.

Example of opportunities of scaling up the studied technologies

Ministry of Environment Japan

(MOEJ)

The Energy and Resources

Institute

Shakti Sustainable Energy

Foundation

Japanese Companies (e.g.: Hitachi IES, Mayekawa,

Yanmar, Shinto, etc.)

Indian SME and Large industries

Institute For Global Environmental

Strategies

Technical support (dispatching experts) Provision of sites for investigations Facilitators

Financial support (modest) and

Assistance

Financial support

G2G

B2B

Collaboration

Research stakeholders

Example of Programs to be used for dissemination and scaling up

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Examples of

program from

Indian side

• Financial support through SIDBI

-Technology Upgradation Fund for textile (TUFS)

-Technology and Quality Upgradation Support to MSMS (TEQUP)

-Credit Linked Capital Subsidies Scheme (CLCSS)

-FPTUFS-scheme for food processing industries

• BEE can introduce these technologies to the designated consumers (DCs),

who are identified under PAT scheme, or by exempting these technologies

from import tax under the FEEED program.

• Energy Service Companies (ESCO)

Examples of

program

measures by

Japanese side

• JBIC : through their crediting J-MRV program.

• MOEJ: Joint Crediting Mechanism (JCM) (if signed)

• Japanese makers: Joint venture, Licencing, FDI

Others SAMEEEKSHA, LCS-RNet, LoCAR-Net, UNEP (CTCN), are important channels

through which these technologies could be deployed in India, whether through their

funding options or through their information and knowledge dissemination activities to a

wide range of stakeholders.

Example of programs to be used for dissemination and scaling up

• MOEJ/GEC: Joint Crediting Mechanism (JCM),

• JICA: Public Private Partnership (PPP),

• ADB-UNEP-GEF: Climate Technology Network and Finance

• UNIDO-GEF:

>E.g. of programs to be used for commercialization (deployment & diffusion)

>E.g. of programs to be used for FS/DS and pilot projects (demonstration)

Japan: JCM mechanism

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Japan Host Country

Benefits to Japan - Contribution to the

global GHG mitigation effort

- Market opportunities for Japanese firms

Benefits to host country - Advanced Japanese technology made

available at significantly lower cost - Reduced fossil fuel dependency

Finance + Technology

Carbon Credits

JCM Project

Carbon credits

Range of upfront financing for JCM

• Global Environment Centre (GEC)

Finances up to 50% of the initial investment cost.

• New Energy Development Organisation (NEDO)

Provides full initial finance, and installed facilities are purchased by project participants at later stage.

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• Japan Bank for International Cooperation (JBIC)

– Co-financing with Japanese private bank to JCM projects.

• Nippon Export and Investment Insurance (NEXI)

– Provision of trade insurance to JCM projects to cover risks (e.g. non-payment, shipping failure);

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India: Financial support through SIDBI, such as TUFS, TEQUP, etc (SMEs)

Note: Technologies should be included in list of technologies eligible of SIDBI finance

India: PAT Mechanism (Large industries)

Note: Only companies in the following sector are considered: Cement, Power, Aluminium, Textile, Pulp and paper, Fertilizer, Iron and steel, Chlor-Alkali

Way forwards: 2015 and beyound Creation and strengthening of cooperation among various stakeholders from India and

Japan to promote low carbon technology application in India, especially through

engaging private sector and funding institutions.

Thank you for you attention